HomeMy WebLinkAboutC2022-117 - 6/28/2022 - Approved DocuSign Envelope ID:3E998193-BCF9-40D0-B710-C5EBDB6DB8F8
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SUPPLY AGREEMENT NO. 4253
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Sodium Permanganate Solution
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1852
THIS Sodium Permanaganate Solution Supply Agreement ("Agreement") is entered
into by and between the City of Corpus Christi, a Texas home-rule municipal
corporation ("City") and Carus Corporation ("Contractor"), effective upon execution
by the City Manager or the City Manager's designee ("City Manager").
WHEREAS, Contractor has agreed to provide Sodium Permanganate Solution in
accordance with the terms of this Agreement, which is necessary to preserve or
protect the public health or safety of the City's residents.
NOW, THEREFORE, City and Contractor agree as follows:
1. Scope. Contractor will provide Sodium Permanganate Solution in accordance
with the attached Scope of Work, as shown in Attachment A, the content of which
is incorporated by reference into this Agreement as if fully set out here in its
entirety. "Goods," "products", and "supplies", as used in this Agreement, refer to
and have the same meaning.
2. Term. The Term of this Agreement is one year beginning on July 1, 2022. The parties
may mutually extend the term of this Agreement for up to zero additional zero-
year periods ("Option Period(s)"), provided, the parties do so in writing prior to the
expiration of the original term or the then-current Option Period.
3. Compensation and Payment. This Agreement is for an amount not to exceed
$2,600,000.00, subject to approved extensions and changes. Payment will be
made for goods delivered and accepted by the City within 30 days of
acceptance, subject to receipt of an acceptable invoice. Any amount not
expended during the initial term or any option period may, at the City's discretion,
be allocated for use in the next Option Period.
All pricing must be in accordance with the attached Pricing Schedule, as shown
in Attachment B, the content of which is incorporated by reference into this
Agreement as if fully set out here in its entirety. Price per pound may be re-
negotiated each calendar quarter, expiring on the last day of March, June,
September, and December. Any adjustment in price must be agreed to by both
parties in writing (by countersigned letter) prior to the end of the calendar quarter.
Price adjustments may be made in accordance with the Producer Price Index
325180-A (not seasonally adjusted) published by the U.S. Bureau of Labor Statistics
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using an average of the three calendar months immediately preceding the
month of the adjusted pricing request. Price adjustments will be based on the
percentage by which the average of the three calendar months in the pricing
index either increases or decreases from the month immediately preceding those
three calendar months. For example, if the average of the three calendar months
is 309 and the pricing for the month immediately preceding those calendar
months is 300, then the percentage of increase would be 3% (9/300 = 0.03) and
the then agreed upon price could be increased by 3%. Price changes must be
requested by the party seeking to adjust the price in writing at least 30 days prior
to the effective date of the change in price. Price increases require
documentation of the amount Contractor is charged for the product. Price
increases that are not in accordance with the pricing index referenced in this
provision must be proportional to the increase in cost to Contractor. Thus, if the
price Contractor pays to the manufacturer increases by 3% during the calendar
quarter, then the price charged to the City may also increase by 3%.Any quarterly
increases in the agreed upon price per pound may not exceed 10% of the then
agreed upon price. In no event will the total annual compensation exceed the
maximum amount provided in this provision without a properly executed
amendment as allowed by Section 13 below.
Invoices must be mailed to the following address with a copy provided to the
Contract Administrator:
City of Corpus Christi
Attn: Accounts Payable
P.O. Box 9277
Corpus Christi, Texas 78469-9277
4. Contract Administrator. The Contract Administrator designated by the City is
responsible for approval of all phases of performance and operations under this
Agreement, including deductions for non-performance and authorizations for
payment. The City's Contract Administrator for this Agreement is as follows:
Diana Zertuche-Garza
Utilities Department
Phone: (361) 826-1687
DianaZ@cctexas.com
5. Insurance; Bonds.
(A) Before performance can begin under this Agreement, the Contractor must
deliver a certificate of insurance ("COI"), as proof of the required insurance
coverages, to the City's Risk Manager and the Contract Administrator.
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Additionally, the COI must state that the City will be given at least 30 days'
advance written notice of cancellation, material change in coverage, or intent
not to renew any of the policies. The City must be named as an additional insured.
The City Attorney must be given copies of all insurance policies within 10 days of
the City Manager's written request. Insurance requirements are as stated in
Attachment C, the content of which is incorporated by reference into this
Agreement as if fully set out here in its entirety.
(B) In the event that a payment bond, a performance bond, or both, are
required of the Contractor to be provided to the City under this Agreement before
performance can commence, the terms, conditions,and amounts required in the
bonds and appropriate surety information are as included in the RFB/RFP or as
may be added to Attachment C, and such content is incorporated here in this
Agreement by reference as if each bond's terms, conditions, and amounts were
fully set out here in its entirety.
6. Purchase Release Order. For multiple-release purchases of products to be
provided by the Contractor over a period of time, the City will exercise its right to
specify time, place and quantity of products to be delivered in the following
manner: any City department or division may send to Contractor a purchase
release order signed by an authorized agent of the department or division. The
purchase release order must refer to this Agreement, and products will remain with
the Contractor until such time as the products are delivered and accepted by
the City.
7. Inspection and Acceptance. City may inspect all products supplied before
acceptance. Any products that are delivered but not accepted by the City must
be corrected or replaced immediately at no charge to the City. If immediate
correction or replacement at no charge cannot be made by the Contractor, a
replacement product may be bought by the City on the open market and any
costs incurred, including additional costs over the item's bid price, must be paid
by the Contractor within 30 days of receipt of City's invoice.
8. Warranty.
(A) The Contractor warrants that all products supplied under this Agreement
are new, quality items that are free from defects, fit for their intended purpose,
and of good material and workmanship. The Contractor warrants that it has clear
title to the products and that the products are free of liens or encumbrances.
(B) In addition, the products purchased under this Agreement shall be
warranted by the Contractor or, if indicated in Attachment D by the
manufacturer, for the period stated in Attachment D. Attachment D is attached
to this Agreement and is incorporated by reference into this Agreement as if fully
set out here in its entirety.
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9. Quality/Quantity Adjustments. Any quantities indicated on Attachment B are
estimates only and do not obligate the City to order or accept more than the
City's actual requirements nor do the estimates restrict the City from ordering less
than its actual needs during the term of the Agreement and including any Option
Period. Substitutions and deviations from the City's product requirements or
specifications are prohibited without the prior written approval of the Contract
Administrator.
10. Non-Appropriation. The continuation of this Agreement after the close of any
fiscal year of the City,which fiscal year ends on September 30th annually, is subject
to appropriations and budget approval specifically covering this Agreement as
an expenditure in said budget, and it is within the sole discretion of the City's City
Council to determine whether or not to fund this Agreement. The City does not
represent that this budget item will be adopted, as said determination is within the
City Council's sole discretion when adopting each budget.
11. Independent Contractor. Contractor will perform the work required by this
Agreement as an independent contractor and will furnish such products in its own
manner and method, and under no circumstances or conditions will any agent,
servant or employee of the Contractor be considered an employee of the City.
12. Subcontractors. In providing the products, Contractor will not enter into
subcontracts or utilize the services of subcontractors.
13. Amendments. This Agreement may be amended or modified only in writing
executed by authorized representatives of both parties.
14. Waiver. No waiver by either party of any breach of any term or condition of this
Agreement waives any subsequent breach of the same.
15. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA
taxes, unemployment taxes and all other applicable taxes. Upon request, the City
Manager shall be provided proof of payment of these taxes within 15 days of such
request.
16. Notice. Any notice required under this Agreement must be given by fax, hand
delivery, or certified mail, postage prepaid, and is deemed received on the day
faxed or hand-delivered or on the third day after postmark if sent by certified mail.
Notice must be sent as follows:
IF TO CITY:
City of Corpus Christi
Attn: Diana Zertuche-Garza
Contract/Funds Administrator
Address: 2726 Holly Road, Corpus Christi, Texas 78415
Phone: (361) 826-1687
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Fax: (361) 826-4495
IF TO CONTRACTOR:
Carus Corporation
Attn: Chryss Crockett
Title: CFO
Address: 315 Fifth Street, Peru, Illinois 61354
Phone: 1-800-435-6856 ext.6503
Fax: 1-815-224-6697
17. CONTRACTOR SHALL FULLY INDEMNIFY, HOLD HARMLESS AND DEFEND
THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND
AGENTS ("INDEMNITEES") FROM AND AGAINST ANY AND ALL LIABILITY,
LOSS, CLAIMS, DEMANDS, SUITS, AND CAUSES OF ACTION OF
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, PROPERTY LOSS, OR DAMAGE, OR ANY OTHER KIND
OF INJURY, LOSS, OR DAMAGE, INCLUDING ALL EXPENSES OF
LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES,
WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION
WITH A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. CONTRACTOR MUST, AT ITS OWN EXPENSE,
INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT
OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH
COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL
CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF
ANY KIND ARISING OR RESULTING FROM ANY SAID LIABILITY, DAMAGE,
LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION
OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE
THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT.
18. Termination.
(A) The City may terminate this Agreement for Contractor's failure to comply with
any of the terms of this Agreement. The City must give the Contractor written
notice of the breach and set out a reasonable opportunity to cure. If the
Contractor has not cured within the cure period, the City may terminate this
Agreement immediately thereafter.
(B) Alternatively, the City may terminate this Agreement for convenience upon
30 days advance written notice to the Contractor. The City may also terminate
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this Agreement upon 24 hours written notice to the Contractor for failure to pay or
provide proof of payment of taxes as set out in this Agreement.
19. Owner's Manual and Preventative Maintenance. Contractor agrees to provide a
copy of the owner's manual and/or preventative maintenance guidelines or
instructions if available for any equipment purchased by the City pursuant to this
Agreement. Contractor must provide such documentation upon delivery of such
equipment and prior to receipt of the final payment by the City.
20. Limitation of Liability. The City's maximum liability under this Agreement is limited
to the total amount of compensation listed in Section 3 of this Agreement. In no
event shall the City be liable for incidental, consequential or special damages.
21. Assignment. No assignment of this Agreement by the Contractor, or of any right
or interest contained herein, is effective unless the City Manager first gives written
consent to such assignment. The performance of this Agreement by the
Contractor is of the essence of this Agreement, and the City Manager's right to
withhold consent to such assignment is within the sole discretion of the City
Manager on any ground whatsoever.
22. Severability. Each provision of this Agreement is considered to be severable and,
if, for any reason, any provision or part of this Agreement is determined to be
invalid and contrary to applicable law, such invalidity shall not impair the
operation of nor affect those portions of this Agreement that are valid, but this
Agreement shall be construed and enforced in all respects as if the invalid or
unenforceable provision or part had been omitted.
23. Order of Precedence. In the event of any conflicts or inconsistencies between this
Agreement, its attachments, and exhibits, such conflicts and inconsistencies will
be resolved by reference to the documents in the following order of priority:
A. this Agreement (excluding attachments and exhibits); then
B. its attachments.
24. Certificate of Interested Parties. Contractor agrees to comply with Texas
Government Code Section 2252.908, as it may be amended, and to complete
Form 1295 "Certificate of Interested Parties" as part of this Agreement if required
by said statute.
25. Governing Law. Contractor agrees to comply with all federal,Texas, and City laws
in the performance of this Agreement. The applicable law for any legal disputes
arising out of this Agreement is the law of the State of Texas, and such form and
venue for such disputes is the appropriate district, county, or justice court in and
for Nueces County, Texas.
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26. Public Information Act Requirements. This paragraph applies only to agreements
that have a stated expenditure of at least $1,000,000 or that result in the
expenditure of at least $1,000,000 by the City. The requirements of Subchapter J,
Chapter 552, Government Code, may apply to this contract and the Contractor
agrees that the contract can be terminated if the Contractor knowingly or
intentionally fails to comply with a requirement of that subchapter.
27. Entire Agreement. This Agreement constitutes the entire agreement between the
parties concerning the subject matter of this Agreement and supersedes all prior
negotiations, arrangements, agreements and understandings, either oral or
written, between the parties.
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CONTRACTOR
ocuSigned by:
Signature: ss (nd'df
ED.
f
Printed Name: M. chryss Crockett
Title: CFO, SVP
Date: 6/2/2022
DY,,QFdqORPUS CHRISTI
Res. 032797
Authorized By
Josh Chronley
Assistant Director of Finance - ProcurementCouncil 6-28-2022
6/29/2022
Date: DS
Dg� AS TO LEGAL FORM: /
7/11/2022
FQ4QQEh „aoe...
Assistant City Attorney Date on�dby:
Attached and Incorporated b Reference:
P Y
Attachment A: Scope of Work Rebecca Huerta
Attachment B: Bid/Pricing Schedule City Secretary
Attachment C: Insurance and Bond Requirements
Attachment D: Warranty Requirements
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Attachment A - Scope of Work
4.1 General Requirements
The Supplier shall provide Sodium Permanganate Solution as outlined in this
Scope of Work to be used at the City of Corpus Christi Water and
Wastewater Treatment Plants. This chemical is used for algae control in
water and must conform to all the requirements of this specification.
4.2 Scope of work
The Supplier shall provide with every delivery a chemical analysis for each
chemical shipment, and the chemical analysis must include the
percentage of assay, specific gravity and pH.
MATERIAL REQUIREMENTS:
The Sodium Permanganate Solution delivered under this agreement
will meet the following specifications:
Item Weight
Assay 39.5 - 41.0% as NaMn04
pH 5.0 - 8.0
Specific gravity 1 .36 - 1.39
Certified by the National Sanitation Foundation (NSF) to ANSI/NSF
Standard 60 for drinking water treatment chemicals-health effects.
The product should meet the AWWA Standard B603-03; EN: 15482-2007.
4.3 Delivery and Weighing Requirements
1. The Supplier will be responsible for unloading the chemical. The Supplier
shall provide any special equipment necessary for unloading, up to and
including, hoses, connections, compressors, etc.
2. The Supplier must provide an affidavit of compliance to the City of
Corpus Christi stating that at the time of delivery the chemical furnished
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under the release order complies with all applicable requirements of this
specification.
3. City of Corpus Christi Plant Supervisors, or their designee, may take a
sample of any chemical shipment for testing prior to unloading of the
chemical. In addition, approximately every three (3) months during the
supply agreement, the City will take a random sample of the chemical
upon delivery. This sample will be sent to an independent laboratory
chosen by the City, and tested for all items outlined in the product
specifications.
4. The Plant Supervisor may reject any chemical shipments that contain a
concentration of any component outside the allowable concentration
range as specified in the product specifications.
5. Deliveries of Sodium Permanganate solution must be by drivers
thoroughly trained and familiar with the related hazards, safety
measures, and spill cleanup procedures for sodium permanganate
solution. All spills and leakage, regardless of size must be properly and
immediately cleaned up by Supplier's personnel. The Supplier shall be
required to respond to any and all such emergencies within eight (8)
hours of being notified.
6. The Supplier shall allow two (2) hours "unloading time" for each
chemical shipment, starting from the time the load enters the plant site
to the time the unloading of the chemical shipment is completed.
Unloading of the chemical is complete when unloading apparatus is
disconnected from storage facilities and secured, and a designated
City of Corpus Christi representative has signed all delivery tickets for
each respective load. Any unloading time in excess of two (2) hours
which is directly attributable to the City will be paid for at the unit price
bid for "Unloading Delays," rounded and prorated to the nearest
quarter hour. This amount shall be included with the invoice for payment
for that particular load of chemical.
7. Shipment(s) will be delivered in approximately 36,000 Ib. lots. Each
chemical shipment must be weighed on a state certified truck scale
located within the city limits of Corpus Christi before delivery to and after
unloading at the water treatment plants.
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8. The Supplier shall be responsible for mailing a legible copy of each
chemical shipment weight "ticket" to the respective City of Corpus
Christi Water Supervisor within 5 business days of delivery of the
chemical. Payments to the Supplier will not be processed unless this
requirement is met.
9. Deliveries shall be made between 8:00 a.m. and 5:00 p.m., Monday
through Sunday, excluding holidays, unless specific arrangements are
made otherwise.
10.Orders will be placed by telephone or email. The Supplier will deliver the
amount of Sodium Permanganate solution ordered within twenty-four
(24) hours of order placement. No minimum or maximum purchase of
Sodium Permanganate Solution is guaranteed by the City within the
duration of the contract.
4.4 Deliveries will be made to the following location:
O.N. Stevens Water Treatment Plant, 13101 Leopard St., Corpus Christi, TX
78410
4.5 Other Requirements
1. All materials supplied must comply with all requirements and standards
of the Occupational Safety and Health Act (OSHA). All appropriate
markings shall be in place before delivery. Items not meeting OSHA
specifications will be refused.
2. The Supplier shall base its billing and quantity for each chemical
shipment on "local" certified weight tickets for the delivery of Sodium
Permanganate Solution.
3. The Supplier must submit the chemical analysis, weight ticket, and bill of
lading with each invoice.
4. Prior to initial use of the Sodium Permanganate solution, and annually
thereafter, the Supplier shall conduct a minimum of two (2) training
seminars for the City's operating personnel on the application and
control of the Sodium Permanganate solution, and shall include the
following:
a. Basic chemical properties of the Sodium Permanganate solution
b. Safety training
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c. Equipment operation/set up
d. Safety Data Sheet
4.6 Supplier Quality Control and Superintendence
The Supplier shall establish and maintain a complete Quality Control Program
that is acceptable to the Contract Administrator to assure that the requirements
of the Contract are provided as specified. The Supplier will also provide
supervision of the work to insure it complies with the contract requirements.
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Attachment B:
Pricing Schedule
Item Location Description Unit 12-month Unit Price
Quantity
40%Sodium
ON Stevens Water Permanganate
1 Plant Solution Lbs. 672,000 $1.92
*Pricing may be adjusted in accordance with Section 3 of the Agreement.
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Attachment C - Insurance Requirements
SUPPLIER'S LIABILITY INSURANCE
1. Contractor must not commence work under this agreement until all
insurance required herein has been obtained and approved by the City's
Risk Manager or designee. Contractor must not allow any subcontractor to
commence work until all similar insurance required of the subcontractor has
been so obtained.
2. Contractor must furnish to the Risk Manager and Assistant Director, Office
of Strategic Management, two (2) copies of Certificates of Insurance with
applicable policy endorsements showing the following minimum coverage
by an insurance company(s) acceptable to the Risk Manager or designee.
The City must be listed as an additional insured for the General Liability and
Auto Liability policies, and a waiver of subrogation is required on all
applicable policies. Endorsements must be provided with Certificate of
Insurance. Project name and/or number must be listed in Description Box
of Certificate of Insurance.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-day advance written notice of Bodily Injury and Property Damage
cancellation, non-renewal, material Per occurrence - aggregate
change or termination required on all
certificates and policies.
Commercial General Liability including: $1,000,000 Per Occurrence
1 . Commercial Broad Form $2,000,000 Aggregate
2. Premises - Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Independent Contractors
6. Personal Injury- Advertising Injury
BUSINESS AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit
1. Owned
2. Hired & Non-owned
3. Rented & Leased
WORKERS' COMPENSATION Statutory and complies with Part II of
(All States Endorsement if Company is not This Exhibit
domiciled in Texas)
Employer's Liability $500,000 /$500,000 / $500,000
Pollution Liability $1,000,000 Per Incident Limit
(Including Cleanup and remediation $1,000,000 Aggregate
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3. In the event of accidents of any kind related to this project, Consultant must
furnish the Risk Manager with copies of all reports of such accidents within 10
days of the accident.
Additional Requirements -
1. Applicable for paid employees, Contractor must obtain workers'
compensation coverage through a licensed insurance company. The
coverage must be written on a policy and endorsements approved by the
Texas Department of Insurance. The workers' compensation coverage
provided must be in an amount sufficient to assure that all workers'
compensation obligations incurred by the Contractor will be promptly met.
An All States endorsement shall be required if consultant is not domiciled in
the State of Texas.
2. Contractor shall obtain and maintain in full force and effect for the duration
of this Contract, and any extension hereof, at Contractor's sole expense,
insurance coverage written on an occurrence basis, by companies
authorized and admitted to do business in the State of Texas and with an
A.M. Best's rating of no less than A- VII.
3. Contractor shall be required to submit replacement Certificate of
Insurance to City at the address provided below within 10 days of any
change made by the Contractor or as requested by the City. Contractor
shall pay any costs incurred resulting from said changes. All notices under
this Article shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Management
P.O. Box 9277
Corpus Christi, TX 78469-9277
4. Contractor agrees that with respect to the above required insurance, all
insurance policies are to contain or be endorsed to contain the following
required provisions:
■ List the City and its officers, officials, employees, and volunteers, as
additional insureds by endorsement with regard to operations,
completed operations and activities of or on behalf of the named
insured performed under contract with the City, with the exception of
the workers' compensation policy.
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■ Provide for an endorsement that the "other insurance" clause shall not
apply to the City of Corpus Christi where the City is an additional insured
shown on the policy;
■ Workers' compensation and employers' liability policies will provide a
waiver of subrogation in favor of the City; and
■ Provide 30 calendar days advance written notice directly to City of any
cancellation, non-renewal, material change or termination in coverage
and not less than ten calendar days advance written notice for
nonpayment of premium.
5. Within five calendar days of a cancellation, non-renewal, material change
or termination of coverage, Contractor shall provide a replacement
Certificate of Insurance and applicable endorsements to City. City shall
have the option to suspend Contractor's performance should there be a
lapse in coverage at any time during this contract. Failure to provide and
to maintain the required insurance shall constitute a material breach of this
contract.
6. In addition to any other remedies the City may have upon Contractor's
failure to provide and maintain any insurance or policy endorsements to
the extent and within the time herein required, the City shall have the right
to order Contractor to stop work hereunder, and/or withhold any
payment(s) which become due to Consultant hereunder until Contractor
demonstrates compliance with the requirements hereof.
7. Nothing herein contained shall be construed as limiting in any way the
extent to which Contractor may be held responsible for payments of
damages to persons or property resulting from Contractor's or its
subcontractor's performance of the work covered under this contract.
8. It is agreed that Contractor's insurance shall be deemed primary and non-
contributory with respect to any insurance or self-insurance carried by the
City of Corpus Christi for liability arising out of operations under this contract.
9. It is understood and agreed that the insurance required is in addition to and
separate from any other obligation contained in this agreement.
2017 Insurance Requirements
Utilities
Supply and Deliver Sodium Permanganate
06/28/2017 sw Risk Management
DocuSign Envelope ID:3E998193-BCF9-40D0-B710-C5EBDB6DB8F8
DocuSign Envelope ID:41AE68Ai-UF18-4//2-6(jZ/-UbU6UEUZAU3b
Attachment D -Warranty Requirements
No warranty requirements for this supply agreement; Section 8.
Warranty is null for this supply agreement.