HomeMy WebLinkAboutC2009-186 - 5/12/2009 - ApprovedSERVICE AGREEMENT
No.: SA09-065
THIS EXCESS LIABILITY INSURANCE CONTRACT (this "Agreement") is entered
into by and between McGriff, Seibels & Williams, Inc. (the "Contractor") and the City of Corpus
Christi, a Texas home-rule municipal corporation (the "City") effective for all purposes upon
execution by the City Manager.
WHEREAS Contractor has proposed to provide EXCESS LIABILITY INSURANCE in
response to Request for Proposal No. BI-0126-09, which is incorporated by reference and
attached hereto as Exhibit A;
WHEREAS the City has determined Contractor to be the most advantageous Proposer;
NOW, THEREFORE, Contractor and City enter into this Agreement and agree as follows:
1. Services. Contractor will provide the EXCESS LIABILITY INSURANCE in
accordance with Request for Proposal No. BI-0126-09, which is incorporated by reference and
attached hereto as Exhibit A. Contractor shall provide the required coverage for the City. The
coverage limit is $5,000,000 per occurrence / $10,000,000 annual aggregate with a retention level
of $500,000 SIR and a $350,000 SII2 for Excess Workers' Compensation -Employers Liability
insurance. 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.
2. Fee for Services. The City agrees to pay the Contractor $375,200 for the first yeaz.
The premium for each of the second and third years shall be determined by applying the same
rate used to calculate the premium for the first year and shall be applied to the City's total payroll
for each subsequent policy period.
3. Term. This Agreement is for three years, commencing on the date signed by the last
signatory hereto. The term includes an option to extend for up to two additional twelve-month
periods subject to the approval of the Contractor and the City Manager or his designee ("City
Manager".)
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. All of Contractor's
notices or communications regarding this Agreement must be directed to the Contract
Administrator, who is the Risk Manager.
5. Independent Contractor. Contractor will perform the services hereunder as an
independent contractor and will furnish such services in its own manner and method, and under
no circumstances or conditions may any agent, servant, or employee of Contractor be considered
as an employee of the City.
2009-186
M2009-121 activities can begin under this Agreement, Contractor's insurance
05/12/09 ertificate of Insurance, as proof of the required insurance coverages
McGriff, Seibels & Williams
to the Contract Administrator. Additionally, the Certificate must state that the Contract
Administrator will be given at least 30 days notice of cancellation, material change in the
coverages, or intent not to renew any of the policies by certified mail. The City must be named
as an Additional Insured. The City Attorney must be given copies of all insurance policies
within 15 days of the City Manager's written request. Insurance requirements are incorporated
herein in Request for Proposal No. BI-0126-09 which is incorporated herein as Exhibit A, and
may be revised annually by the City Manager upon 30 days written notice to Contractor.
7. Assignment. No assignment of this Agreement or any right or interest therein by
Contractor is effective unless the City first gives its written consent to such assignment. The
performance of this Agreement by Contractor is of the essence of this Agreement and the City's
right to withhold consent to such assignment is within the sole discretion of the City on any
ground whatsoever.
8. Fiscal Year. All parties recognize that the continuation of any contract after the close
of any fiscal year of the City, which fiscal year ends on July 31 annually, is subject to
appropriations and budget approval providing for such contract item as an expenditure in that
budget. The City does not represent that the budget item will be actually adopted, that
determination is within the sole discretion of the City Council at the time of adoption of each
budget.
9. Waiver. No waiver of any breach of any term or condition of this Agreement or
Contractor's bid offer to Request for Proposal No. BI-0126-09 waives any subsequent breach
of the same.
10. Compliance with Laws. This Agreement is subject to all Federal laws and laws of
the State of Texas. All duties of the parties will be performed in the City of Corpus Christi,
Texas. The applicable law for any legal disputes arising out of this Agreement is the law of
Texas and the venue for such disputes is the appropriate district, county, or justice court in and
for Nueces County, Texas.
11. Subcontractors. Contractor may use subcontractors in connection with the work
performed under this Agreement. When using subcontractors, however, Contractor must obtain
prior written approval from the Contract Administrator. In using subcontractors, Contractor is
responsible for all their acts and omissions to the same extent as if the subcontractor and its
employees were employees of Contractor. All requirements set forth as part of this Agreement
are applicable to all subcontractors and their employees to the same extent as if the Contractor
and its employees had performed the services.
12. Amendments. This Agreement may be amended only by written agreement
signed by duly authorized representatives of the parties hereto.
13. Termination. The City Manager may terminate this Agreement for Contractor's
failure to perform the services specified in Request for Proposal No. BI-0126-09. Failure to
keep all insurance policies in force for the entire term of this Agreement is grounds for
termination. The Contract Administrator must give Contractor 5 work-days 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 Manager may terminate this Agreement immediately thereafter.
Alternatively, City may terminate this Agreement, with or without cause, upon 20 days
written notice to Contractor. However, City may terminate this Agreement on 24-hours written
notice to Contractor for failure to pay or provide proof of payment of taxes as set out herein.
14. Taxes. Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes,
unemployment taxes, and all other related taxes according to Circular E Employer's Tax Guide,
publication 15, as it may be amended. Contractor must provide proof of payment of these taxes
within 30 days after City Manager's written request therefore. Failure to pay or provide proof of
payment is grounds for the City Manager to immediately terminate this Agreement.
15. Drug Policy. Contractor must adopt a Drug Free Workplace and drug testing
policy that substantially conforms to the City's policy. The City has azero-tolerance drug policy.
16. Violence Policy. Contractor must adopt a Violence in the Workplace and related
hiring policy that substantially conforms to the City's policy. The City has azero-tolerance
violence policy.
17. Notice. Notice may 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
deposit, if sent certified mail. Notice shall be sent as follows:
IF TO CITY:
City of Corpus Christi
Attention: Risk Manager, 2nd Floor
P.O. Box 9277
Corpus Christi, Texas 78469-9277
Fax No.: 361-882-7320
IF TO CONTRACTOR:
Contractor Name: McGriff Seibels & Williams Inc.
Contact Person: Johnn Fontenot
Address: 5080 S ectrum Drive Suite 900-A
City, State, Zi Addison TX 75001
Fax No.: 469-232-2101
18. Month-to-Month Extension. If the City has not completed the bidding
process and awarded a new EXCESS LIABILITY INSURANCE contract upon the expiration
of this Agreement, then Contractor must continue to provide services under this Agreement, at its
current fee, on a month-to-month basis until a new contract is awarded by Council. This
Agreement automatically expires on the effective date of a new contract; the Contract
Administrator will provide written notice of the effective date of the new contract to Contractor.
19. Indemnification. CONTRACTOR AGREES TO 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 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 WITNESS 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
INDEMNITEES, BUT NOT BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH
THE FAULT OF ANY OTHER PERSON OR GROUP. CONTRACTOR MUST, AT ITS OWN
EXPENSE, INI~ESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT
OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL
SATISFACTORY TO INDEMNITEES AND PAY ALL CHARGES OF ATTORNEY AND ALL
OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY OF SAID LIABILITY,
DAMAGE, LOSS, CLAIMS, DEMANDS OR ACTIONS.
20. Severability. Each provision of the Agreement shall be considered to be
severable and, if, for any reason, any such provision or any part thereof, is determined to be
invalid and contrary to any existing or future applicable law, such invalidity shall not impair the
operation of or 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 thereof
had been omitted.
SIGNED this 4th day of May , 20 09 .
Contractor: McGriff, Seibels & Williams, Inc.
I
Si afar
e: Johnnv Fontenot
Title: Senior Vice-President
CITY
Michael Bart- era
Assistant Director of Financial Services
APPROVED THIS ~ ~ DAY OF ~ , 20 b 5
MARY K. FISHER, CITY ATTORNEY
By: pL.,c~vl ~
Assistant City Attorney
Incorporated by Reference:
Exhibit A: Request for Proposal No. BI-0126-09
Exhibit B: Proposer's proposal
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