HomeMy WebLinkAboutC2005-079 - 3/8/2005 - ApprovedCONTRACT TO PROVIDE EXCESS GENERAL LIABILITY, PUBLIC OFFICIALS /
EMPLOYMENT LIABILITY, EMPLOYEE BENEFITS LIABILITY AND LAW
ENFORCEMENT LIABILITY INSURANCE TO THE CITY OF CORPUS CHRISTI
This contract to provide excess general liability, public officials / employment liability, employee
benefits liability and law enforcement liability insurance to the City of Corpus Christi (the
"Contract") is made by the City of Corpus Christi (the "City"), a Texas home rule city and Mc Griff,
Seibels and Williams of Texas, Inc. (hereafter, "Contractor"). For the consideration specified in this
Contract, the City and Contractor agree:
Contractor shall provide the required coverage for the City. The coverage limit is $3 Million !
$6Million aggregate with a retention level of $500,000 SIR. The City's Risk Manager is designated
as the Contract Administrator responsible for all phases of performance, including authorizations for
payment. All notices or communications regarding this Agreement must be directed to the Contract
Administrator.
A. PERFORMANCE REQUIREMENTS
Contractor will supply and prepare checks and drafts for claims. Contractor will be
responsible for the generation and mailing of the Forms 1099 to vendors and service
providers as required by the Internal Revenue Code. Contractor will forward a magnetic tape
to the IRS of the Forms 1099 as required by applicable law.
No subcontractors or other service providers will be hired without specific written approval
of the City. To the extent subcontractors are utilized, the City will be billed for
reimbursement at actual invoice cost. The Contractor shall add no fees, charges or premiums
in any amount to the actual cost to the Contractor for the subcontractor's services.
Contractor will name one (1) individual as coordinator to resolve all problems that may arise
during the length of this Contract.
Clakn files are the property o1' the City and not the property of the Contractor or any of the
Contractor's employees or subcontractors. In addition, Contractor shall assure confidentiality
of medical information contained within the files and will satisfy the consta'aints of the
Health Insurance Portability and Accountability Act of 1996, as amended ("HIPAA").
Notwithstanding the previous sentence, the City in no way agrees that HIPAA will apply
with respect to any workers' compensation plan of the City or to any workers' compensation
claim to the extent that HIPAA would otherwise be inapplicable.
Contractor will provide adequate internal control procedures to protect the City from any
type of financial loss. Contractor shall be responsible for refunding to the City overpayments
resulting from errors or duplicate payments of any kind.
2005-079
03/08/05
M2005-084
McGriff, Seibels and Williams
6. At the request of the City, Contractor shall allow the City to audit all or any files maintained
by the Contractor.
In coordination with City staff, Contractor will develop and oversee a detailed transition plan
and bear the cost of transition.
B. OTHER REQUIREMENTS
1. Lawsuits
If initial demand is within the retention limit, the City controls claims handling as well as
defense counsel. Contractor is not authorized to receive service of process on behalf of the City
in any court proceeding whatsoever.
2. Experts
The hiring of experts requires the written approval of the City's Risk Manager, or designee.
3. Annuity Services
Structured settlements will be used by the City for certain identified cases. Examples would include
employee fatality cases where the employee has minor dependents. At the City's request, Contractor
will solicit quotations fi.om annuity providers and provide same to the Risk Manager for selection
and approval. The City will neither be billed by the Contractor nor be required to pay Contractor
separately for these annuity procurement services.
4. Reporting on Cases in Litigation
Contractor shall prepare a full-captioned report on all files in litigation. Copies of such reports shall
be sent to the City's Risk Manager and coordinated with City appointed legal counsel.
5. Claims handling provisions
Claims for State National are handled through Meadowbrook Insurance Group. If initial demand is
within the retention limit, the City controls claims handling as well as defense counsel. If initial
demand is over the retention on limit, the claims should be reported to the Contractor and Conlxactor
will coordinate with Meadowbrook. They will want to approve counsel. If the claim status changes,
Conn'actor will coordinate claims handling.
Claim Reporting thresholds
A. Monetary Threshold
Any claim that will result in an "incurred loss" that is 50% of the involved self-insured
retention. Incurred loss means the probable ultimate paid loss plus allocated loss expenses
that can be attributed towards meeting the self-insured retention.
B. Injury Threshold
Any act, error, event incident or occurrence applicable to this insurance that results in a: 1. Fatality;
2. Spinal Cord lnjury( paraplegia and quadripleg/a);
3. Brain damage;
4. Third or second degree burns over 50% of the body;
5. Amputation;
6. Impairment of vision or hearing of 50% or more;
7. Nerve damage causing paralysis or loss of sensation in a limb;
8. Massive internal injuries affecting body organ(s);
9. Significant shattering or non-union of a limb and
10. Worker's Compensation claim involving permanent total disability.
DATA COLLECTION AND PREPARATION OF REPORTS
The City shall require the Contractor to provide a computer generated loss mn analysis
report for each month covering all activity including newly reported, open and newly closed
claims for the period. This report will be customized to meet City needs and will provide as a
minimum the following information by claim type by c/aim year:
1. Monthly, year-to-date, and yearly listings of open claims.
2. Monthly, year-to-date, and yearly listings of all open and closed claims.
2. Report listing:
1) claims where the status has changed during the period being reported;
2) the total number of claims where the stares has been changed to closed or active.
Such totals should be listed for the month reported and for the year-to-date;
3) current list of ail c/aims in litigation.
4) a list of checks voided during the month,
The Con,actor agrees that the City shall not be required to pay for the preparation of any of the
3
reports described above. Rather, compensation for preparing the reports shall be included in the
prices charged to perform services under the Contract,
E. INSURANCE REQUIREMENTS
Contractor agrees to Indenmily, Hold Harmless, and Defend the City of Corpus Christi, and its officers,
employees, and agents (lndemnitees) from and against any and all liability, loss, claims, demands, suits,
and causes of action of any nature on account of death, personal injuries, property loss or damage, or any
other kind of damage, including all expenses of litigation, court costs, attorneys' fees, and expert wimess
fees which arise or are claimed to arise out of or in connection with this contract or the performance of
this contract, regardless of whether the injuries, death, or damages are caused, or are claimed to be caused
by the concurrent or contributing negligence of lndemnitees, but not by the sole negligence of
Indemnitees unmixed with the fault of any other person or group.
Prior to the corrar~ncement of any work under this proposal, Conu'actor shall furnish an original
completed Certificate(s) of Insurance to the City which shall be completed by an agent authorized to bind
the named underwriter(s) and their company to the coverage, lirmts, and termination provisions shown
thereon, and which shall furnish and contain all required information referenced or indicated thereon.
The original certificate(s) must have the agent's original signature, including the signer's company
affiliation, title and phone number, and be mailed directly from the agent to the City. The City shall have
no duty to pay or perform under this proposal until such certificate shall have been delivered to the City,
and no officer or employee, other than the City's Risk Manager, shall have authority to waive this
requirement.
The City reserves the right to review the insurance requirements of this section during the effective period
of the proposal and any extension or renewal hereof and to modify insurance coverage and their limits
when deemed necessary and prudent by the Risk Manager based upon changes in statutory law, court
decisions, or circumstances surrounding this proposal, but in no instance will the City allow modification
whereupon the City may incur increased risk.
A Contractor's financial integrity is of interest to the City, therefore, subject to Contractor's right to
maintain reasonable deductibles in such amounts as are approved by the Risk Manager, Contractor shall
obtain and maintain in full force and effect for the duration of this proposal, 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 rated A- or beuer by A.M. Best Company and/or
otherwise acceptable to the City, in the following types and amounts:
TYPE
AMOUNT
1. Workers' Compensation Statutory
Employers' Liability 500,000/$500,000/$500,000
2. Commercial General Liabdity Insurance
a. Premises operations
Combined Single Limit for
Bodily Injury and Property
4
b. Independent Contractors
c. Products/completed operations
d. Personal Injury
e. Contractual Liabthty
Professional Liability
Damage of $1,000,000 per
occurrence or its equivalent
$1,000,000 per claim to pay on behalf of
the insured all sums which insured shall
become legally obligated to pay as
damages by reason of arty act,
malpractice, error or omission in
professional services; if written on a
"Claims Made" forr~ must provide for
an extended reporting period of twenty-
four (24) months after the date of
PROPOSAL termination.
The City shall be entitled, upon request and without expense, to receive copies of the policies and all
endorsements thereto as they apply to the lira/ts required by the City, and may make a reasonable request
for deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions
(except where policy provisions are established by law or regulation binding upon either of the parties
hereto or the underwriter of any such policies). Upon such request by the City, the Conf,-actor shall
exercise reasonable efforts to accomplish such changes in policy coverage, and shall pay the cost thereof.
Contractor agrees that w~th respect to the above required insurance, all insurance proposals and
Certificate(s) of Insurance wtll contain the following required provisions:
Name the City and its elected officials, officers, directors, employees, agents, volunteers
and representatives as additional iusureds (as the interests of each insured may appear),
as to all applicable coverages respects operations and activities of, or on behalf of, the
named insured performed under proposal with the City, with the exception of
professional liability and workers' compensation policies;
The Contractor's insurance shall be deemed primary with respect to any insurance or self
insurance carried by the City for liability arising out of operations under the proposal
with the City; and
· Workers' compensation and employers' liability policy will provide a waiver of
subrogation in favor of the City.
Con,actor shall notify the City in the event of any notice of cancellation, non-renewal or
material change in coverage and shall give such notices not less than thirty (30) days
prior to the change, or ten (10) days notice for cancellation due to non-payment of
premiums, which notice must be accompanied by a replacement Certificate of Insurance.
All notices shall be given to the City at the following address:
5
City of Corpus Christi
Arm: Risk Manager
P. O. Box 9277
Corpus Christi, TX 78469-9277
If Contractor fails to maintain the aforementioned insurance, or fails to secure and maintain the
aforementioned endorsements, the City may obtain such insurance, and deduct and retain the amount of
the premiums for such insurance from any sums due under the agreement; however, procuring of said
insurance by the City is an alternative to other remedies the City may have, and is not the exclusive
remedy for failure of Contractor to maintain said insurance or secure such endorsement. In addition to
any other remedies the City may have upon Contractor to stop work hereunder, and/or withhold any
payment(s) which become due, to Contractor hereunder until Contractor demonstrates compliance with
the requirements hereof.
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 properly resulting from Contractor's or its
subcontractors' performance of the work covered under this agreement.
F. CONTRACTOR'S CHARGES FOR SERVICES
The Contractor's charges for services during each year of tttis Contract are specified in the attached
Excess Liability Insurance Premium Pr/cing Summary. The City agrees to pay such charges promptly
after receipt of an invoice from Contractor.
G. OTHER PROVISIONS
1. Notices or correspondence to the parties under this Contract shall be sent to:
If to the City:
Risk Manager
City of Corpus Christi
City Hall, 5th Floor
P.O. Box 9277
Corpus Christi, Texas 78469-9277
(361) 880-3680
b. If to the Contractor:
Johnny Fontenot, Account Director
McGriff, Seibels & Williams of Texas,Inc.
5949 Sherry Lane, Suite 1300
Dallas, TX 75225
(469) 232-1200
All notices under this Contract shall be sent via certified mail, return receipt
6
requested.
2. A copy of the Contractor's completed Disclosure of Interests Form, submitted with
Contractor's proposal, is attached as Exhibit 2.
H, CONTRACT TERM AND STARTING DATE
This Contract shall be for a term of three (3) years beginning on March 1, 2005 and continuing
through March 1, 2008 with one (1) optional one-year extension. Notwithstanding the Contract
starting date of March 1, 2005 (the "Starting Date"), the Contractor agrees to begin providing
insurance coverage effective March 1, 20(15.
I. TERMINATION OF CONTRACT
The City may terminate this Contract immediately for cause upon written notice to the Contractor.
The City may terminate this Contract, with or without cause, upon ninety (90) days prior written
notice to the Contractor. The Contractor may terminate this Contract, with or without cause, upon
one hundred twenty (120) days prior written notice to the City.
J. MODIFICATION OF THE CONTRACT
This Cona'act may be modified only in writing. Such a document must be signed by authorized
representatives of the City and Contractor. Such a document may be signed in multiple original
counterparts. Each such counterpart shall be considered an original.
AGREED TO BY:
McGriff, Seibeis and Williams of Texas, lnc
Name)/Johtlny Fontenot,
Title:Vice President, McGriff, Seibels & Williams
McGriff, Seibels & Williams of Texas, Inc.
5949 Sherry Lane, Suite 1300
Dallas, TX 75225
Date:
City of Corpus Christi
BYam or~~eK.N
N oe
Title: City Manager, CRv of Comus Christi
City of Corpus Christi
1201 Leopard
Corpus Christi, TX 78401
Date: ~] {~ t~ 5
A I-I'ISST:
City Secretary
7
Approved as to form this the ~'~ day of ,/d///~*-/(
MARK K.FISCHF_..R, C~F.Y ATI'ORNEY
Assistant ~ty AttO~rn y
John Burke
8
EXCESS LIABILITY INSURANCE PREMIUM PRICING SUMMARY
SIR $500,000 Limit $3 Million each accident or Occurrence
$6 Million Policy Aggregate Limit
Premium: $187,000 Flat Annual Rate with rate guaranteed for 3 years
Optional coverage enhancements which can be provided for an additSonal premium:
Coveraee Name Premh,m Charee
None
9
CITY OF COI~US CHRISTI
DISCLOSURE OF INTERESTS
City of Carpus Christi Ordinance 17 ! ! 2 as amended, requires all persons or Proposers seelang to do b~iness with the City to
provide the following informaUon. Every question must be answered.
ffthe quesuon is not applicable, answer with "N/A" See reverse side for ck~lirations.
PROPOSER NAME: McGriff, Seibels & Williams of Texas, Inc.
ADDRESS: 5949 Sherry Lane, St 1300 CITY Dallas
ZIP 75181
PROPOSER is: 1, Corporation (X) 2. Partnership ( ) SoleO',vner ( )
4.. As~.mation ( ) 5. Other ( )
DISCLOSURE QUESTIONS
If additional space is nec~sary, please use the reverse side of this page or attach a separate sheet.
1. Shale the names of each "employee" of the City of Corpus Christi having an "owners}tip interest" constituting 3% or more of
the ownership in the above named "Proposer."
Job Title and City Department (if known)
2. State the names of each "official" of the City of Corpus Chnst. i having an "ov, raersh~p interest" consfi~ting 3 % or more of the
ownership in the above named "Proposer."
N/A
3. State the names of each "board member" of the City of Corpus Chngi hav/ng an "ownership interest" cons~mting 3% or more
of the ownership in the above named "Proposer."
N/A
Board, Cormmssion, or Committee
4. S tale the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked on any matter relamd
to the subject of [his con~act and has an "ownership interest" constituting 3% or more of the ownership m the above named
"Pro~ser."
N/A
Consultant
10
CERTIFICATE
I certify that all information provided is true and correct as of the date of this statement, that I
have not knowingly withheld disclosure of any information requested; and that supplemental statements
will be promptly submitted to the City of Corpus Christi, Texas as changes occur.
Certifying
Pe~on: Johnny Fontenot
Signature of (/"~ '(? ~7
Certifying Person: '~ 4
Title:
Senior Vice P:esident
Date: 1-20-2005
DEFINITIONS
a. "Boa.rd member." A member of any board, commission, or committee appointed by the City Council
of the City of Corpus Christi, Texas.
b. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full or part-time
basis, but not as an independent contractor.
c. "Proposer." Any entity operated for economic gain, whether professional, industrial or
commercial, and whether established to produce or deal with a product or service, including but not
limited to, entities operated in the form of sole proprietorship, as a self-employed person, parmership,
corporation, joint stock company, joint venture, receivership or trust, entities which for purposes of
taxation are treated as non-profit organizations.
d. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant
City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus
Christi, Texas.
e. "Ownership interest." Legal or equitable interest, whether actually or constructively held. In a
Proposer, including when such interest is held through an agent, trust, estate, or holding entity.
"Constructively held" refers to holdings or control established through voting t~usts, proxies, or special
terms of venture or partnership agreements."
f. "Consultant." Any person or Proposer, such as engineers and architects, hired by the City of
Corpus Christi for the purpose of professional consultation and recommendation.
11