HomeMy WebLinkAboutC2009-410 - 10/13/2009 - Approvede
Form II
Investment Agreement
THIS INVESTMENT AGREEMENT (together with any amendments and supplements, referred to as this
"Agreement") is made and entered into by and among each of those local governments initially executing this
Agreement and any other local government that becomes a party hereto (collectively, the "Participants").
WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended (the
"Act"), permits any "local government" to contract with one or more other "local governments" and with agencies
of the state to perform "governmental functions and services," including investing public funds through "public
funds investment pools" (as such phrases are defined in the Act);
WHEREAS, the Public Funds Investment Act, Texas Government Code, Chapter 2256 (the "Investment
Act"), also authorizes local governments, state agencies, and nonprofit corporations acting on behalf of such
entities to invest public funds through investment pools;
WHEREAS, the Act permits the contracting parties to any agreement to create an administrative agency to
supervise the performance of such agreement and to employ personnel and engage in other administrative
activities and provide other administrative services necessary to execute the terms of such agreement;
WHEREAS, each of the Participants is a local government under the Act and/or the Investment Act;
WHEREAS, the Participants' desire to establish and maintain a public funds investment pool as their agency
and instrumentality pursuant to the Act for the purpose of pooling their local funds for joint investment in
accordance with the Act and the terms hereof;
WHEREAS, each of the Participants has duly taken all official action necessary and appropriate to become a
party to this Agreement, including the adoption of a resolution;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained
herein, the Participants mutually agree as follows:
ARTICLE I
Definitions and Rules of Construction
Section 1.01. Definitions. Except as otherwise provided in this Agreement, the capitalized terms used herein
shall have the following meanings unless the context otherwise requires:
Account-any account established by a Participant and representing an undivided beneficial interest of such
Participant in a Fund established as a part of the Pool.
Act-the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as may be amended from
time to time.
Additional Party Agreement-a document that, when attached to a copy of this Agreement and executed by
an Authorized Representative of a Local Government, constitutes a valid and binding counterpart of this
Agreement by which such Local Government becomes a Participant, substantially in the form attached hereto as
an Appendix.
2009-410
Res. 028342 21
10/13/09
Lone Star Investment Pool
Administrator-First Public, LLC, a Texas limited liability company, or any other person, firm, or
organization approved by the Board and under contract with the Pool to provide administrative assistance in
connection with the management and operation of the Pool.
Advisor-the registered investment advisor or advisors selected by or at the direction of the Board to provide
advice regarding investment of Pool assets pursuant to this Agreement and subject to applicable law.
Agency-(1) a department, board, bureau, commission, court, office, authority, council, or instrument; (2) a
university, college, or any service or part of a state institution of higher education; (3) any statewide job or
employment training program for disadvantaged youth that is substantially financed by federal funds and that has
been created by executive order no later than December 30, 1986; and (4) any nonprofit corporation acting on
behalf of any of those entities.
Authorized Investments-those investments that are authorized from time to time to be purchased, sold, and
invested in under the Investment Act.
Authorized Representative-an individual authorized to execute documents and take other necessary
actions, pursuant to this Agreement, on behalf of a Local Government or other person, firm, or organization, as
evidenced by a duly adopted resolution or bylaw of the governing body of such Local Government or other
person, firm, or organization, a certified copy of which is on file with the Administrator. In the case of a Local
Government that is a combination of political subdivisions under the Act, the Authorized Representatives of any
administrative agency appointed by such combination of political subdivisions shall be deemed to be Authorized
Representatives for such Local Government.
Board-the governing body of the Pool, known as its Board of Trustees.
Bylaws-the bylaws of the Pool, as the same may be amended from time to time, subject to the requirements
of this Agreement.
Custodian-the person selected by or at the direction of the Board to have custody of all money,
investments, and other assets of the Pool pursuant to this Agreement and subject to applicable law.
Endorser-any person, firm, or organization recognized by the Board as an endorser or sponsor of the Pool.
Fund-the Liquidity Fund, Liquidity Plus Fund, or Liquidity Corporate Fund or any additional Fund
established by the Board as part of the Pool.
Information Statement-the information statement or any other document distributed to Participants and
potential Participants to provide them with a description of the management and operation of the Pool, as the
same may be amended from time to time, subject to the requirements of this Agreement.
Investment Act-the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, as may be
amended from time to time.
Investment Consultant to the Pool-the person or firm selected by or at the direction of the Board to
provide advice regarding (1) the selection of the Advisor and the Custodian, (2) the terms of the Statement of
Investment Policy, and (3) the performance of the Pool.
Investment Officer-one or more officers or employees of the Pool designated as investment officers by the
Board of Trustees.
Local Government-a school district; county; municipality; special district; junior college district; a district
or authority created under section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution; a
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fresh water supply district; a hospital district; any other legally constituted political subdivision, authority, public
corporation, body politic, or instrument of the State; a combination of two or more of these entities (including a
combination of political subdivisions by means of an interlocal agreement governed by the Act); any nonprofit
corporation acting on behalf of these entities; or any other entity that may be included in the definition of "local
government" in the Act.
Participants-the Local Governments and Agencies that are the initial parties to this Agreement and the
Local Governments and Agencies that subsequently become parties to this Agreement.
Pool-the public funds investment pool created pursuant to this Agreement and known as the "Lone Star
Investment Pool."
Sponsor-the Texas Association of School Boards, a Texas nonprofit association, acting by and through its
duly appointed and acting agents and directors.
State-the State of Texas.
Statement of Investment Policy-the written Statement of Investment Policy adopted and approved by the
Board governing investment and management of Pool assets, as the same may be amended from time to time,
subject to the requirements of this Agreement.
Section 1.02. General Rules of Construction.
(a) Whenever in this Agreement the context requires (1) a reference to the singular number shall include the
plural and vice versa and (2) a word denoting gender shall be construed to include the masculine, feminine,
and neuter.
(b) The titles given to any article or section of this Agreement are for convenience only and are not intended
to modify the article or section.
ARTICLE it
Creation of Pool; Purpose and Objective
Section 2.01. Creation of the Pool as an Agency.
(a) The initial Participants hereby create and establish, and all subsequent Participants hereby agree to and
accept the creation of, a public funds investment pool as their agency and instrumentality pursuant to the Act,
known as the "Lone Star Investment Pool" (the "Pool").
(b) The Pool shall hold legal title to and manage all money, investments, and other assets transferred to or
acquired by the Pool pursuant to the Act and this Agreement.
(c) As an agency and instrumentality of the Participants, the Pool shall have the authority, through its Board,
to employ personnel, engage in other administrative activities, and provide other administrative services
necessary to accomplish the purpose of this Agreement.
Section 2.02. Purpose and Objective.
(a) The purpose of the Pool is to provide Local Governments with an investment vehicle for local funds. The
general objective of the Pool shall be to provide Participants with the highest possible rate of return for such
funds, while maintaining safety of principal. Various Funds established as part of the Pool provide
Participants with varying rates of return and liquidity options.
(b) To accomplish the Pool's objective, each Participant agrees that the money transferred to a Fund will be
commingled with money transferred to such Fund by other participants for the purpose of making authorized
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investments, subject to the terms of this Agreement and the requirements of the Statement of Investment
Policy and applicable law, thereby taking advantage of investment opportunities and cost benefits available to
larger investors.
ARTICLE III
Pool Administration
Section 3.01. The Board and the Bylaws.
(a) The business and affairs of the Pool shall be managed by the Board as governing body of the Pool. The
Board is hereby authorized and directed to adopt and maintain Bylaws; to provide for the governance and
administration of the Pool to the extent not otherwise provided by this Agreement; provided, however, that no
provision of such Bylaws may be adopted if such provision would adversely affect the legal status of the
Pool, including the Pool's status as a public funds investment pool pursuant to the Investment Act.
(b) The Bylaws shall set forth, among other things, the procedures governing the selection of and action taken
by Board members, provided that each voting member of the Board shall be required to be an employee or
elected official of a Participant. The Participants shall be subject to the terms of the Bylaws.
Section 3.02. Powers and Duties of the Board.
(a) Subject to applicable law and the terms of this Agreement, the Board shall have full and complete power
to take all actions, do all things, and execute all instruments as it deems necessary or desirable to carry out,
promote, or advance the investment objective, interests, and purposes of the Pool to the same extent as if the
Board was the sole and absolute owner of the Pool.
(b) The Board shall adopt and maintain a Statement of Investment Policy, consistent with the general
objective of the Pool, which shall provide more detailed guidelines for investment and management of Pool
assets. The Board shall, subject to the terms of this Agreement, have the authority to amend any term or
provision of the Statement of Investment Policy, provided that notice is sent to each Participant at least 60
days prior to the effective date of any change that, in the Board's opinion, will have a material effect on the
Participant's investment in the Pool.
(c) The Board shall designate one or more Investment Officers for the Pool who shall be responsible for the
investment of Pool assets, provided that no person who is an officer or employee of a regional planning
commission, council of governments, or similar regional planning agency created pursuant to Chapter 391 of
the Local Government Code of the State shall be eligible to serve as an Investment Officer.
(d) The Board shall prepare, or direct the preparation of, an Information Statement that describes how the
Pool will operate in accordance with the terms of this Agreement and the Statement of Investment Policy.
Subject to the terms of this Agreement and the Statement of Investment Policy, the Information Statement
may be amended or supplemented, provided that notice is sent to each Participant at least 60 days prior to the
effective date of any change described in such amendment or supplement that, in the Board's opinion, will
have a material effect on the Participant's investment in the Pool.
(e) The Board shall, subject to the limitations established in the Statement of Investment Policy, have full and
complete power and authority to appoint, or direct the appointment of, the following: a Custodian, one or
more Advisors, an Investment Consultant, lawyers, accountants, and any other service providers deemed
necessary or helpful in the operation of the Pool.
(f) The Board shall have full and complete power to use, or direct the use of, Pool assets for the following
purposes: (1) incur and pay any expenses that, in its opinion, are necessary or incidental to or proper for
carrying out any of the purposes of this Agreement; (2) reimburse others for the payment thereof; (3) pay
appropriate compensation or fees to persons with whom the Pool has contracted or transacted business,
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provided, however, the aggregate amount of the foregoing fees and expenses shall be subject to and governed
by any restrictions thereon established by the Board; and (4) charge a Participant's Account for any special
fees or expenses related specifically to transactions in such Account.
(g) The Board shall cause financial statements to be prepared and maintained for the Pool and for such
statements to be audited annually by an independent certified public accounting firm.
(h) By agreement, the Board may appoint the Administrator to perform administrative services for the Pool,
provided that the Board shall continue to oversee the operation and management of the Pool and shall have
the authority to direct the Administrator to take or not take specific action on behalf of the Pool.
(i) The enumeration of any specific power or authority herein shall not be construed as limiting the general
power and authority of the Board over the Pool.
Section 3.03. Liability.
(a) Neither the Board, the Sponsor, the Investment Officers, the Administrator, any Endorser, nor any
officers, trustees, employees, or board members of any of the foregoing shall be held liable for any action or
omission to act on behalf of the Pool or the Participants unless caused by willful misconduct.
(b) The Pool shall indemnify and hold harmless (either directly or through insurance) any person referred to
in subsection (a) of this Section, to the extent permitted by law, for any and all litigation, claims, or other
proceedings, including but not limited to reasonable attorney fees, costs, judgments, settlement payments, and
penalties arising out of the management and operation of the Pool, unless the litigation, claim, or other
proceeding resulted from the willful misconduct of such person.
ARTICLE IV
Participation in the Pool
Section 4.01. Investment Agreement. For a Local Government or Agency to become a Participant and
transfer money into the Pool, each of the following conditions must be satisfied:
(a) The Local Government or Agency must adopt a resolution (1) authorizing such entity to become a
Participant and approving this Agreement, (2) establishing the Pool as an agency and instrumentality of the
Participant, (3) designating the Board as the governing body of the Pool, (4) approving the investment
policies of the Pool (as amended from time to time by the Board) and directing that any conflicting local
investment policies shall not apply to Pool investments of the Participant, (5) designating Authorized
Representatives of the Participant, and (6) designating the Investment Officers appointed from time to time by
the Board as the Participant's investment officers who shall be responsible for investing the share of Pool
assets representing local funds of the Participant; and
(b) The Local Government or Agency must become a party to this Agreement by executing an Additional
Party Agreement and delivering the same to the Pool with a certified copy of the Resolution referred to in
subsection (a) of this Section, an application in form and substance satisfactory to the Board, and such other
information as may be required by the Board.
Section 4.02. Participant Accounts.
(a) While available local funds of Participants may be commingled for purposes of common investment and
operational efficiency, one or more separate Accounts for each Participant in the Pool will be established and
maintained by the Pool in accordance with the Participant's application to join the Pool.
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(b) Each Participant shall own an undivided beneficial interest in a Fund's assets, which shall consist of the
proportional amount that each Account of such Participant bears to the total amount of all Participants'
Accounts in such Fund.
(c) Unique identifying information shall be assigned to each Account. The Participant hereby agrees that such
identifying information shall be required to implement any deposit to or withdrawal from the Participant's
Account. The confidentiality of such identifying information shall be maintained by the Pool.
Section 4.03. Information Statement.
(a) The Information Statement shall, among other things, describe in detail the procedures required to effect
deposits to and withdrawals from the Pool.
(b) Each Participant agrees to and accepts all of the provisions of the Information Statement, as in effect on
the date it enters into this Agreement and as the same may be amended from time to time.
Section 4.04. Reports. The Pool shall submit a written report at least once per month to each Participant.
Such report will indicate the following: (1) the balance in each Account of a Participant as of the date of such
report, (2) yield information, and (3) all Account activity since the previous report.
ARTICLE V
Pool Assets
Section 5.01. Pool Investments. Pool assets shall be invested and reinvested by the Pool only in Authorized
Investments in accordance with the Statement of Investment Policy. Each Fund established as a part of the
Pool will comply with investment objectives and policies set forth in the Statement of Investment Policy.
Section 5.02. Custody. All money, investments, and assets of the Pool shall be held in the possession of the
Custodian.
Section 5.03. Fund Valuation and Allocation to Participants. Total assets of each Fund, including
investment earnings thereon, will be valued and allocated to Participants' Accounts in such Fund on a pro rata
allocation basis as further described in the Information Statement.
ARTICLE VI
Miscellaneous
Section 6.01. Severability.
(a) If any provision of this Agreement shall be held or deemed to be illegal, inoperative, or unenforceable, the
same shall not affect any other provisions contained herein or render the same invalid, inoperative, or
unenforceable to any extent whatsoever.
(b) Any participation in this Agreement or transfer of assets to the Pool that is not qualified for any reason
shall not terminate this Agreement or the participation of other Participants or otherwise adversely affect the
Pool.
Section 6.02. Limitation of Rights. This Agreement does not create any right, title, or interest for any person
other than the Participants and any person who has a contract to provide services to the Pool, and nothing in
or to be implied from this Agreement is intended or shall be construed to give any other person any legal or
equitable right, remedy, or claim under this Agreement.
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Section 6.03. Execution of Counterparts. This Agreement may be executed in several separate counterparts,
including by Additional Party Agreement, each of which shall be an original and all of which shall constitute
one and the same instrument.
Section 6.04. Applicable Law. This Agreement shall be governed by and construed in accordance with the
laws of the State.
Section 6.05. Termination.
(a) A Participant may terminate itself as a party to this Agreement, with or without cause, by providing
written notice to the Pool at least 60 days prior to such termination.
(b) Upon the vote of a majority of its full membership, the Board may order the termination of this Agreement
by directing that all outstanding operating expenses of the Pool be paid and remaining assets of the Pool be
distributed to Participants in accordance with their pro rata interests.
Section 6.06. Term. This Agreement shall have an initial term beginning with the effective date set forth
below and ending September 1, 1992, and shall be automatically renewed for one year on such date and each
anniversary of such date, except with respect to any Local Government that may have terminated itself as a
Participant or as otherwise directed by the Board.
Section 6.07. Fiscal Year. The fiscal year for the Pool shall be set forth in the Bylaws.
Section 6.08. Notices. Any notices or other information required or permitted to be given hereunder shall be
sent
(a) to the Pool as set forth in the Information Statement and
(b) to a Participant as set forth in its application to become a Participant or as otherwise provided by written
notice to the Administrator.
Section 6.09. Entire Agreement: Amendments. This Agreement represents the entire agreement and
understanding of the Participants. This Agreement may be amended with the approval of a maj ority of the full
membership of the Board, provided that notice of any such amendment is sent to all Participants at least 60
days prior to the effective date thereof.
IN WITNESS WHEREOF the initial parties hereto have caused this Agreement to be executed as of the dates
set forth below, to become effective of the latest such date.
Houston Independent School District
Bv: /s/Leonard Sturm 7/11/91
Deputy Superintendent of Finance
Humble Independent School District
Bv: /s/ Michael Novack 7/9/91
Lewisville Independent School District
Bv: /s/ Tom J. Zimmerer 7/8/91
Assistant Superintendent of Business
San Antonio Independent School District
Bv: /s/ Victor Rodriguez 7/22/91
Business Manager Superintendent
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APPENDIX TO INVESTMENT AGREEMENT
Additional Party Agreement
The Government Entity of the State of Texas named below, acting by and through the undersigned
Authorized Representative, hereby agrees to become a party to that certain Investment Agreement to which this
page is attached, and thereby become a Participant in the Lone Star Investment Pool, subject to all of the terms
and provisions of such Agreement. The undersigned hereby represents that it is a Government Entity within the
meaning of the Information Statement relating to the Lone Star Investment Pool and thereby deemed to be
included in the term "Local Government" as used in such Agreement.
r
Executed this ! ~ day of ~ ~ G'
Name Government Entity
By: w
Si re of Authorized Representative
~ . ~~ar
Printed ame and Title
~ ' ~~g3 ~ AUTNOR12E4
8Y COUNCIL,. ~ Q 4~
SECRETARY ~.
AST: ~-.~-
ARMAt~t00 CHAPA
CiTf SECRETAR"
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Form III
Lone Star Application
A. General Information
nn ~ 1r
Name of Applicant 1..~~~ ~ ~.DI ~~ ~~ (~~l _
Mailing Address ~ ~~ ~a~''L~L, County~,,~ NU ~~1,~~J
City Y ~ ~ Yl~ ZIP ~ O ~ ~J ~ Contact Person 1 a y~(.L "~e~ ICS r~i
Telephone Number ~J ~ (~ ~ Zl~' 3(.P Jr) Fax Number ~(o ~ ' ~~ a' 13a
B. Account and Bank-Related Information
1. Account Information
Authority is hereby given to First Public, LLC, as Pool Administrator, to open an account to be named (e.g., General
Fund, Debt Service Fund, etc.): ~OPVCc~Ir1L ~U~„
2. Local Depository Information (For your protection, each Pool Account may access only one local depository
account.):
Bank Name Frcfrk- QI'tt1 ~ ~ City 5,,,~Ch{rI~
Bank Telephone Number ?J~~' ~~~" ~ ~ ~~ Bank Fax Number J~.Q ~ `~`t4-" ~ ~/~G~S
Bank ABA Number (9 digits) ~ ~ y. ~~~b q~ Bank Account Number ~Q~ ~L~ `~ R~
3. Corresponding Bank (if applicable):
Bank Name
Bank ABA Number (9 digits) Bank Account Number
4. Deposit/Withdrawal Information and Authorization
Applicant hereby authorizes the Lone Star Investment Pool and its Administrator and Custodian to honor any Pool deposit
or withdrawal request believed to be authentic. Money will be transferred only upon telephone, Web, IVR, written, or
personal notice from an Authorized Representative of the Applicant. Upon such notification, debit or credit entries to the
local depository account indicated above will be initiated, and the local depository named above is hereby authorized to
further debit or credit the same to such account, as appropriate. Transfer shall be made by Automated Clearing House
(ACH) Transfer unless otherwise directed by the Applicant.
C. Application Signature
It is hereby certified that the Applicant has received a copy of the Information Statement relating to the Lone Star
Investment Pool and has read, understands, and agrees to be bound by the terms thereof and the documents described
therein. The information, certifications, and authorizations set forth in this application form are true and correct and shall
remain in full force and effect until First Public, LLC, or its successor, receives written notification of a change.
Application is hereby made and executed this ~~ day of riC~~',r , ~.
Name of Authorized Representative t ~~
Signature of Authorized Representative
Name of Authorized Representative ~ ~ u s r.a ~ c~ S ,Fs ~ ~ u E Z
Signature of Authorized Representative ~ - - - ~- - ~ ~--~ c~.~+-.
Photocopy this form for additional accounts.
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Form IV
Vendor Payment Authorization
All transactions are transmitted by ACH. Prior to submitting this form, please verify with your vendor's bank that it can
accept payment by ACH.
A. Vendor Information
Name of Vendor ~' ~"
Vendor
Vendor's Fax Number
Vendor's Bank Name
Vendor's Bank ABA Number (nine digits)
Vendor's Bank Account Number
B. Government Entity Authorization
Authority is hereby given to First Public, LLC, as Lone Star Investment Pool Administrator, to transfer money from the
Applicant's Liquidity, Liquidity Plus, or Liquidity Corporate Fund account to the vendor listed in Section A, for further
credit to the Applicant's Vendor Account Number also listed in Section A.
Applicant:
Two signatures are required to set up a withdrawal to an account at a bank other than your depository bank.
Name of Authorized Representative
Signature of Authorized Representative
Name of Authorized Representative
Signature of Authorized Representative
Photocopy this form for additional vendors.
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Form V
First Public Account Application
A. Primary Applicant Informat~io(~n (-
Name of Applicant C(~ (~ 1,,,[~{~~~~irl~"CL -
Mailing Address ~ l~1~~
Physical Address SGLI'Yi~,
Representative(s) to Act on Behalf of the Applicant (Name and Title)
City CC. State Zip~~
City State Zip
Telephone Number ~Q ~- 82.0' ~j X05 ~ Fax Number ~p ~- (J~a_ ~ o~ (~
Employer Tax ID Number (EIN) ~ ~ - ~ D t /V V/
Are you associated with a member of a stock exchange, a municipal securities dealer, or other securities broker or dealer?
If yes, please describe:
B. Investment Objective and Suitability Disclosures
The investment objective for this account is focused on safety of principal and liquidity, and investments are restricted to
those investment vehicles authorized under Chapter 2256 of the Public Funds Investment Act, Texas Government Code.
Please describe any additional limitations or restrictions regarding this investment account.
~~ n~
C. Signature
In consideration of your accepting this account, we hereby acknowledge that we understand and agree to the terms set
forth in the Customer Agreement (including the pre-dispute arbitration agreement found at the end of the Customer
Agreement), a copy of which we have received, read, and understand.
Printed Name of Investment Officer:
J
Signature of Investment Officer: Date ~~ f6-oZgD9
(Please provide a copy of your Investment Policy.)
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Instructions
Please sign the First Public New Account Application and return it to First Public at the following address, along with a copy
of your Investment Policy.
First Public
12007 Research Blvd.
Austin, Texas 78759
Before mailing the application, please tear off and retain the attached First Public Customer Agreement so that you will have
a copy for your records.
To open a Lone Star Investment Pool account, you will need to carefully read the Lone Star Information Statement, adopt the
Lone Star Investment Pool Resolution, execute an Investment Agreement, and complete the Lone Star Enrollment
Application, all of which are included in the Information Statement and Enrollment Book.
If you have questions about this application or opening a First Public account, contact First Public at 800-558-8875 or send
an a-mail to customer.service(a~firstpublic.com.
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Customer Agreement
In consideration of First Public, LLC, (hereinafter referred to as "you" and "First Public") opening one or more securities accounts on
behalf of the Applicant (hereinafter referred to as "we," "us," and "our"), we represent and agree as follows:
Authorized Signatory and Associations: The signatory is the authorized representative of the Applicant and, except as otherwise
disclosed to you, we are not associated with any national securities exchange or member firm of any exchange or the NASD, and we will
promptly notify you if we become so associated.
Appointments: We appoint First Public as our agent for the purpose of carrying out our directions with respect to the purchase and sale of
securities. To carry out First Public's duties, First Public is authorized to place and withdraw orders and take such other steps as are
reasonable to carry out our directions.
Membership: We understand that First Public is a member of the Securities Investor Protection Corporation.
Authorization and Accuracy of Reports:
(a) You are authorized to act on oral instructions concerning our account and you aze not liable for acting on any false oral instructions if
the instructions reasonably appeared to you to be genuine. We authorize you to electronically record any and all conversations
between us.
(b) We will notify you of any error in a confirmation of order within two days of when it is mailed to us. We will notify you of any error
in a statement within 10 days of when it is mailed to us. If we do not give you written notification of an error in the time specified
above, then we accept the confirmation or statement as correct and we will not later claim that the confirmation or statement is
incorrect or that the transactions shown were unauthorized. We understand that all mail will be sent to the address shown on our
Account Application and we will be responsible for receiving mail at that address, unless we give you written notice of a change in
address.
Choice of Law: This Agreement and all transactions made in or for our account shall be governed by the laws of the State of Texas.
Liability: We understand that First Public may, in its sole discretion, prohibit or restrict trading of securities in any of our accounts. We
agree that First Public shall not be liable for any action or failure to act on behalf of our account unless caused by First Public's willful
misconduct.
Settlement: We agree to make available or agree to deliver to First Public sufficient funds to cover the amount due on purchases of
investments by settlement date.
Waiver and Modification: We understand that your failure to exercise any right granted by this Agreement or to insist on my strict
compliance with any obligation under this Agreement will not be considered a waiver of that right or obligation. We also understand if you
furnish me with notice on one occasion, you are not obligated to provide me with notice in the future. I understand that no provision of this
Agreement can be waived or modified unless it is done in writing and signed by First Public's Managing Director, Corporate Counsel, or
Chief Compliance Officer.
Applicable Regulations:
(a) We understand and agree that every transaction in our account is subject to the rules or customs in effect at the time of the transaction
that, by the terms of the rule or custom, apply to the transaction. These rules or customs include state and federal laws; rules and
regulations established by state or federal agencies (including, without limitation, the Securities and Exchange Commission); the
Constitution; rules, customs, and usages of the applicable exchanges, associations, markets, or clearinghouses; or customs and usages
of individuals transacting business on the applicable exchanges, mazkets, or cleazinghouses.
(b) If this Agreement is incompatible with any rule or custom, or if a rule or custom is changed, this Agreement will be automatically
modified to conform to the rule or custom. The modification of this Agreement shall not affect any of its other provisions.
Severability: If any provision of this Agreement is deemed to be unenforceable for any reason, this will not affect the validity and
enforceability of any other provision of this Agreement.
Rule 14b-1(c) of the SEC: We understand you will disclose our name and address to the Lone Star Investment Pool (the "Pool") so that we
can receive information directly from the Pool. If we do not consent to such disclosure, we will notify you in writing.
Accuracy of Market Data: We understand that market data, including security price quotations, are obtained from an independent pricing
service believed to be reliable. We understand and agree that First Public cannot guarantee the accuracy of such data and will not be liable
for any consequential, incidental, special, or indirect damages (including lost profits, trading losses, and damages) that result from reliance
upon independent pricing services.
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Privacy Notice: First Public is providing this information as required by Regulation S-P adopted by the Securities and Exchange Commission
First Public does not collect personal information from individuals, consumers, or customers since its scope of business is limited to accounts
of government entities. First Public protects confidential account information of government entities and has security measures in place to
protect the loss, misuse, and alteration of information under our control.
Important Information about Procedures for Opening a New Account: To help the government fight the funding of terrorism and
money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each
person who opens an account.
When we open an account, First Public will ask for our name, address, taxpayer identification number, and other information that will
allow it to identify us. First Public also may ask to see our organizational documents or other identifying documents.
Termination of Account: You have the right to terminate any of our accounts (including multiple owner accounts) at any time by notice to
us.
Transactions Accepted through Electronic Funds Transfer: First Public will accept the electronic transfer of funds to our account
following an initial notice from the originator of such transfer that such funds will be transferred and at any subsequent time by the
originator of such funds. First Public will honor requests from the original transferor of such funds to adjust entries made in connection
with electronic fund transfers or to transfer funds from the account in order to correct errors. Such requests will be honored by First Public
without making any independent investigation of the underlying facts, and First Public disclaims all liability for actions taken in honoring
such requests whether or not the original transferor was correct in making such request. Under no other circumstances will First Public
honor requests from third parties to electronically transfer funds from our account.
Arbitration Disclosures:
All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as
provided by the rules of the arbitration forum in which a claim is filed.
Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very
limited.
The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than
in court proceedings.
The Arbitrators do not have to exp-ain the reason(s) for their award.
The panel of Arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for
arbitration may be brought in court.
The rules of the arbitration forum in which a claim is filed, and any amendments thereto, shall be incorporated into this agreement.
Arbitration and Dispute Resolution:
(a) We agree that any dispute or controversy, either arising in the future or in existence now, between us and First Public (including
First Public's officers, directors, employees or agents) will be resolved by arbitration conducted before the Financial Industry
Regulatory Authority (FINRA) and in accordance with its rules then in force.
(b) A court of competent jurisdiction may enter judgment based on the award rendered by the Arbitrators.
(c) Nothing in this Agreement shall be deemed to limit or waive the application of any relevant state or federal statute of
limitation, repose, or other time bar. Any claim made by either party to this Agreement that is time barred for any reason
shall not be eligible for arbitration.
The parties to this Agreement shall not bring putative or certified class-action to arbitration, nor seek to enforce any pre-dispute
arbitration agreement against any person who has initiated in a court a putative class action or who is a member of a putative class
who has not opted out of the class with respect to any claims encompassed by the putative class action until:
(i) the class certification is denied,
(ii) the class is decertified, or
(iii) the customer is excluded from the class by the court.
Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to
the extent stated herein.
34
PROF03AL ACCEPTANCE FORM
AVIATION
Directions: This form and the Interlocal Agreatxnt must be coatpteted, signed and restarted. If tune is of the essence,
you may wish to ttae an express trail service or a fttt~tmik copier. Tn the event you submit these documents by
facs6aile, the originals must still be setts by regular omit. Place indleate with j X ]the coverages that you are
~ag-
1tiETtlittN Tt1:
Zetrrts Afatleag7re Jw~t~tra~ illsx Posl
. uaDapaetararu
P.Q Baur l~l19!
daraGr, Taata 78911.9194
P/boar. 512111-~3iDorl-8IP•537-6633
AAX: 572.69121N
COVERAGE L1fMiTS DEDUCTIBLE CONTRI$UTION EFFECTIVE ANNIVERSARY
DATE DATE
j t~AirportPrerniass Liability s S dD0~0 s lO~OOD S as~.5~ /!- 4~-O~ //- ~
[ ~
OperatioasLiab;lityo s s ODa oav s la~,,,®Oo s ~~~~~ !_~9 ~l-f
j~~g~' ~~ s Wi`t' //- ~-0 9 ii - y
Any om aircraft S aZ 5, 060 4~ o
Per oxtareace' S a s_ OOH G_,, a00 S~ fi~i G
[ I Non-Owned Airaaft Lrebility" S S S -
L. ~ Gt/at~ _'~` ~' 2S'O a acv ~ ~.~i`o ~' ~~ ~o~ ~l-~-~
TOTAL S 3 ! " 3~
o Limit mast cgvei Airport 1'runites Liability Built.
IYtethod of Payment: ] I Qr+~~!' N! AnxaRl{p (3% DI~OYJN13
T, the undersigned, as as attthtuized representative of
do hereby accept onbehalfof the
atbdiviaioa the pacttons of the ve.
Sigttatttre of Authorizcd OtTciai: '~~ ~-- ~ SP ~ i ~ ~
Title: "t ~r ~v ~h.a~-ti
Date:
e rater ~~'~ °~r
men Mn:tAtxom n r.a~ ~toa.-
Tbls Ford! P$ y vn't6eab~Rrnra CoYOa
TEXAS bIUAtICIPAL LEAGiJB INTF.RtsOVERNiidENTAL R[SK POOL
[237
aar~aroe
Incorporated by Reference:
Exlu'bit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exhtbit C: Email with subject: Corpus Christi -Bid Analysis Answers dated 10/08!2009 9:28 A.M. from
Dneidwi 'ro.org to paulp()a.cctexas.com and attachment there to dated October 8, 2009
containing written responses to questions regarding bid submitted.
Exhibit D: E-mail with subject: Re: Fwd: Fw: Corpus Christi -Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwiedzCa~unliro.ore to Evel cctexas. m.
Signature of Authorized TMLIRP Official:
Title: II/si
Date: /~f ~~ -~
VICTOR O.
SGHINNERER
.u-- ~~ Se COMPANY, INC.
September 8, 2009
' EXCESS AVIATION PROPOSAL
S50M Ezcess of S2SM Primary
Named Insured: City of Corpus Christi
Address: P.O. Box 9277
Corpus Christi, TX 78469-9277
Policy Period: November 4, 2009 -November 4, 2010
Both days at 12:0 la.m local time at the address of the Narced Insured.
Carrier: Illinois Union Insurance Company
(A+ S&P, A+ XV Best)
Interest: The Imured's legal liability, to which this policy applies, arising out of the Insured's
Airport operations at the following airport location(s):
Airport Location: Corpus Christi International Airport, Corpus Christi, TX (CRP)
Sum Immured: To pay the DIFFERENCE BETWEEN the primary limits of the underlying
Coverage Document (I'ML), bring:
$25,000,000 each occurrence%ffense in respect of Bodily Injury, Personal and Advertising Injury and
Property Damage combined, subject to the following limitations:
Products-Completed Operations Annual Aggregate Limit .............................$25,000,000
Personal Injury and Advertising Injury Annual Aggregate limit ........................ $25,000,000
Malpractice Annual Aggregate Limit .......................................... .. $25,000,000
Bxtended Coverage -War, Hi jacking and Other Perils Annual Aggregate Limit ............ . Not Insured
Fire Damage Limit Any One Fire ............................................... . $50,000
Medical Expense Limit Any One Person .......................................... Not Insured
Haogarkeepers not "in flight" Limit Any One occurrence ................... . ......... $25,000,000
FIangarlccepers not "ia flight" Limit Any One AircraR ............................... .$25,000,000
Non-Owned Aircraft Liability ................................................... Not Insured
AND the Total Limit(s) under this Insurance and Coverage Document of the PHmary Insurer combined,
befog:
$75,000,000 each occurrence/offense in respect of Bodily Injury, Personal and Advertising Injury and
Property Damage combined, subject to the following limitations:
Products-Completed Operations Annual Aggregate Linrit .............................$75,000,000
Personal Injury and Advertising Injury Annual Aggregate limit ........................ $25,000,000
Malpractice Armual Aggregate Limit ............................................. $25,000,000
Extended Coverage -War, Hi-jacking and Other Perils Anneal Aggregate Limit............ Not Insured
Fire Damage Limit Any Orte Fire ................................................ $50,000
Medical Expense Limit Any One Person .......................................... Not Insured
Hangarkeepers not "in flight" Limit Any One occurrence ............................. $75,000,000
Hangarkeepers not "in flight" Limit Aay One Aircraft ................................$75,000,000
Non-Owned Aircraft Liability ................................................... Not insured
500 Dallas, Suite 2830• Houston, TX 77002 • Phone 713-759-2010 • Fax 713-651-9901
VICTOR O.
l3CHINNERER
.... .. ._ & COMPANY, lNC.
Conditions: Policy Jacket AP200 (09-07)
TML AP XS 9/6/2007 VS3
TML AP XS 9/6/2007 V3
Service of Suit Endorsemertt XS-1U96e (02/06)
Texas -Important Information 9003-TX (11-99)
TR-19604c (01/08) - Policylmlder Disclosure Notice -
Terrorism (Attached -SIGNATURE 12E0UIR1
Surplus Lines Notice -Texas Required Notice (Attached)
US Clasai8eation Conditions: Surphs Lines
ANNUAL PRE1vIIUM $36,671.00
SURPLUS LINES TAX (4.85%) $ 1,778.54
STAMPING FEE (.06%) $ .22.00
TOTAL: $38,471.54
^ AddItional Coverage for TRIA (Terrorism Risk I!~snrance Act of 2002):
ANNUAL PREMIUM $3,667.00
SURPLUS LINES TAX (4.85%) $ 177.85
STAMPING FEE (.06%) $ 2.24
TOTAL: $3,847.05
^ Additlonal Coverage for War: (based on aggregate limit snd not per occurrence)
ANNUAL P1tEMIUM $3,667.00
SURPLUS LINES TAX (4.85%) $ 177.85
STAMPING FEE (.06%) $ 2.20
TOTAL: $3,847.05
(~ Addltlonal Coverage for TRIA and War:
ANNUAL PREMIUM $4,584.00
SURPLUS LINES TAX (4.85%) $ 222.32
STAMPING FEE (.06%) $ 2.75
TOTAL: $4,809.87
Should you elect this coverage, please complete below and return this proposal no later
man October 31, 2(109. You may fax back to (713) 651-9901 to Attn: Tonga McPherson
Acceptance of this proposal does not constitute binding of overa e. Covera a is bound upon written
confirmation from Victor O. Schinnerer & Co., Inc. ,
Accepted by: .~~
Date: b 1g 6
500 Dallas, Suite 2830• Houston, TX 77002 • Phone 713-759-2010 • Fax 713-651-9901
Incorporated by Reference:
Exhibit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exlvbit C: Email with subject: Corpus Christi -Bid Analysis Answers dated 10/08/2009 9:28 .A.M. from
DneidwiedzCa~tmlirp.ore to pauip~?cctexas.com and attachment there to dated October 8, 2009
containing written responses to questions regarding bid submitted.
Exhibit D: E-mail with subjecK: Re: Fwd: Fw: Corpus Christi -Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwiedz(a~tmlirp.ore to Evel n cctex om.
Signature of Authorized TMLIRP Official:
Title: lGt Ivc..
Date: /p-/ -
a POLICYHOLDER DISCLOSURE
NOTICE OF TERRORISM INSURANCE COVERAGE
ace user
You are notified that under the Terrorimt Risk Insurance Act, as amended, that you have a right to purchase insurance
coverage for loses resulting from acts of terrorism, as defined in Section 102(1) of the Act: The term "act of terrorism"
means any act that is certified by the Secretary of the Treastuy--in concurrence with the Secretary of State, and the
Attorney General of the United States-to be an act of terrorism; to be a violent actor an act that is dangerous to human
life, property, or infigstrrtcture; to have resulted in damage within the United States, or outside the United States in the
case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an
individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the
policy or affect the conduct of the United States Government by coercion.
YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING
FROM CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE
UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR
POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN
EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITE) STATES GOVERNMENT
GENERALLY REIMBURSES 85•/. OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY
ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE
PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES
FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER TAE ACT.
YOU SHOULD ALSO KNOW THAT THE TERRORISM RLSK INSURANCE ACT, AS AMENDED, CONTAINS A
SI00 BILLION CAP THAT LIMITS U.S GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY
FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES
IN ANY ONE CALENDAR YEAR EXCEEDS 5100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL
INSURERS EXCEED S100 B[LLION, YOUR COVERAGE MAY BE REDUCED.
Acceptance or Rejection of Terrorism Insurance Coverage
~ I hereby elect to purchase terrorism coverage for a prospective premium of 53,667
hereby decline to purchase terrorism coverage for certified acts of terrorism. I understand
tal,I wilt-ttpve no coverage for losses resulting from certified acts of terrorism
ILLINOIS UNION INSURANCE COMPANY
Print Name ` Policy Number
_ ~ J Q ~ Insured City of Corpus Christi
Date
® 2007 National Association of Insurance Commissioners
TR-19604c (01/08)
Incorporated by Reference:
Exhibit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exhibit C: Email with subject: Corpus Christi -Bid Analysis Answers dated 10/08!2009 9:28 A.M. from
DneidwiedzCa)trnlirp.org to Daulpf?a.cctexas.com and attachment there to dated October 8, 2009
comaining written responses to questions regarding bid submitted.
Exhibit D: E-mail with subject: Re: Fwd: Fw: Corpus Christi -Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwied a tmlup.org to Evel n cctex com.
Signature of Authorized TMLIRP Official: ~
Title:
Date: ~ 6 a DD ~j
Property Proposal Acceptance Form
Member: Corpus Christi
Member ID: 8795 T'~
:~ ~.
Directions: This form must be completed, signed and returned. The Interlowl Agreement must also be completed and returned if you
are not a current Liability or Property Fund participant. ff time is of the essence, you may wish to use an express mail service or
facsimile copier. In the event you submit these documents by facsimile, the originals must still be returned.
Indicate with [ X ]the coverages and method of payment that you are atxx:pting. Forward all dowmertts to:
.. Texas Municipal League Intergovernmental Risk Poo!
Underwriting Department
P.O. Box 149194
Austin, Texas 787149194
Phone: 1-800-537-6655 or FAX: 512-491-2404
COVERAGE DEDUCTIBLE CONTRIBUTION EFFECTIVE ANNIVERSARY
DATE DATE
[Mobile Equipment
Total Value S ~~'[i"0
[y}~Actual Cash Value OR
[ ] Replacement Value
[~ublic Employee Dishonesty
limit ;[f,~l~i7C1 ~. ~lfa~}
[ ; ] Per Employee OR
[y]~Per Occurrence
[,Theft, Disappearance and Destruction
Limit ~ Q~.(,~11 ~~_(1t70
[ Ij/Forgery or Alteration
Limit ~Q $1D. wy
[~omputpr Fraud
Limit (,i OA4jB~1 S ~D,ODO
I~~ ~"~ s a5`®
a evo
s ~'/.7th` ~ -~`~--
[d]~Fafthful Performance
[~ Excess Coverage (as proposed)
sat 9f~ - Jl _c~
si393 11~ ~l_~ -
Method of Payment: [ ] 4uarterly [ C~Annually (3% DISCOUNT)
I, the undersigned, as an authorized representative, do hereby accept
on behalf of the above named political cated above.
Signature of Authorized
Official:
Title:
Date:
t r`'~'G.r.C~..~C. J~1~'~i C~~'
OFFICE USE ONLY
The Signed lnterlocal Agreement Contribution: Member ID#
Must Accompany This Form verified by:
(Exception: Current Liability/Property Fund partidpanfs ore not required to (l New (l Re-awardlnB { )Adding Coverage
submit a new Interlotal Agreement.)
Incorporated by Reference:
Exhibit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exhibit C: Email with subject: Corpus Clnisti -Bid Analysis Answers dated 10/08/2009 9:28 A.M. from
Dneidwiedz(altmlirp.org to Qaulp~a.cctexas.com and attachment there to dated October 8, 2009
containing written responses to questions regarding bid submitted.
Exhibit D: E-mail with subject: Re: Fwd: Fw: Corpus C)uisti -Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwiedz a tmlfr~ ore to Evelyn a.cctexas m. /~
Signature of Authorized TIvII.1RP Official: C '
Title: F
Date: /0 ;005
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Exlu'bit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exhibit C: Email with subject: Corpus Christi - Bid Analysis Answers dated 10/08/2009 9:28 A.M. from
Dneidwiedz(a~tmliro.ore to paulp~aZcctexas.com and attachment there to dated October 8, 2009
containing written responses to questions regarding bid submitted.
Exhibit D: E-mail with subject:. Re: Fwd: Fw: Corpus Christi - Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwiedzCa~tmlirp.org to Evelvn cctex om.
Signature of Authorized TMLIRP Official:
Title: /'
Date• / Ly o?d~~
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-~ ~~
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Exhibit A: Request for Proposal BI-0196-09
Exhibit B: Proposer's Proposal
Exhibit C: Email with subject: Corpus Christi -Bid Analysis Answers dated 10/08/2009 9:28 A:M. from
Dneidwiedz(a~tmlir~o_rg to p~ulg[alcctexas.com and attachment thereto dated October 8, 2009
containing written responses to questions regarding bid submitted.
Exlu'bit D: E-mail with subject: Re: Fwd: Fw: Corpus Christi -Bid Analysis Answers dated 10/15/2009 4:59 P.M.
from DNiedzwiedznu.tmliro.ore to Evel cctexas om.
Signature of Authorized TMLIRP Official:
Title:
Date: /0
(10 9 aul fierce - o us hristi- i Anal is savers _ ~ a e 1
From: <DNiedzwiedz~tmlirp.org>
To: <paulp~cctexas.com>
CC: <GYbarra~tmlirp.org>
Date: 10/8/2009 9:28 AM
Subject: Corpus Christi-Bid Analysis Answers
Attachments: CC-Bid Anaysis Answers.pdf
Mr. Pierce,
Please see attachment...
Thanks!
Dinora B. Niedzwiedz, CIC
TML-IRP Underwriter
phone (800) 537-6655, ext. 444
fax (512)491-2404
PAGE 1 OF 3
EXHIBIT C
October 8, 2009
Mr. Pierce,
Here are the written responses to your questions regarding the bid we submitted:
1) In terms of premiums, the same formula wiN be applied for years 2 end 3 es was ca~ulated in
the bid for year 1. The rates applied within that formula may clrange, as rates are reviewed and
set by the Poops board annually. We arrtidpate favorable rates for years 2 and 3 as recent
history h~ indicated rate decreases for most Nrres of coverage.
2) Regarding Clarification Q, we will provide a defense to the City until tl~at claim is rro longer
appNcable.
Q. ' AlNpad Dfshbnast, FraudulMrr, a knMy tYto-rglW Acts
Claims inwhring assgatiorra of d-shoneaq; 6sudtJa# ads. and wvong6d ads corranitted
intergionelly wtih knowledge ~ may be det~nded by the Pod rxdi a i or other
final action estebtisires that such ads were cornmiled with actual dishoneet or frauohrlent
purpose or irrant. ff the ads or omissions listed above are included with other alregetions of
negligence on the partcfihe^hrandrsr, the i!oahwi:coirfinueda-dM6r+d tM It~rnber 1br ilwss acts
which are nd AOwid to be dishonest, fraudulent crermal or malicious.
The Pod also provides -eim6ursament for pirninal defense expenses once a Covered Party has
been exonerated from aA d-arges, or once drargea are wdhdrawn air dismissed without admission
of guilt The krnif for }his reimbursement is 110,000 percriminal proceeding.
3) Clarification S under the Airport Liability refers to liability assumed by co et for alleged
"bodily injury" or "property damage'. This clarification indicates that the Pool will not .be
responsible for Punitive and Exemplary Damages that you choose to assume in an executed
contract
S. PuMtTveamd t3remiphrYDartr~
Punttiwe and exemplary damages a-e cwered when awarded in connection with a covered claim with the
exception ofpunihve and exemplary damages assumed by corrhad.
4) Clarificatan R states:
R. Hooted vs. h+snred (lYHow anpfoyee ddms)
Coverage is provided for insured vs. irwured" (covered party vs. c~e-ed party) claims except when both
covered parties are. assettir-g ohrarrs againeta~ee earrfJwr. C.oversge is alfiwded in all cases to the Alerrdrer
eMlly, aa.weM as to ceveredpwrties Jana M~emberasserti-rg:dairra against covered Aadies ~anofher
6fernber. Caverags does nil extend fo ailuaiiorrs imotvin8 boddl' irijrrry to an employee, ~ Wbrlrers'
Compermation is the sole remedy for employees of poCrficaf subdivisions acting in the scope and course ad'
theirdutiea.
Coverage for employee vs. empbyee would be covered under Auto Liability except for bodily
injury which would Pali under Workers' Compensation coverage.
5) Aub C~asbvplielAuto Physical Damage coverages:
• Vehicles covered by Auto Physical Damage are Covered for both comprehensive and
collision losses. These vehicles are subject 1A spar-vehicle deductible unless several
vehicles are affected and a maximum occurrence deductible is appNed.
• Vehicles covered by Auto Catastrophe are covered only for comprehensive bases when
2 ar more vehicles are involved and are subject to a per occurrence deduclible.
PAGE 2 OF 3
EXHIBIT C
• Vehicles covered by both Auto Physical Damage and Auto Catastrophe would be subject
to the per-vehicle deductible or the Auto Catastrophe deductible, whichever is lower:
fi) The City's bid requested "Credit and debit card forgery at a limit of $25,000, subject to a $250
deductible". The Pool's Forgery or Alteration coverage would mover credit and/or debit card
forgery that results in a financial loss to the City. This coverage would be excess over any
coverage provided by the credit/debR card or banking institution.
7) The Pool's Public Employee Dishonesty coverage provides recovery for the loss of money,
securities and other property resulting from ifie dishonesty ~ employees, elected or appointed
otf'raels, and volunteers. To avoid duplicate coverage, it does not provide coverage for bases
caused by arty employee a official that is required by law ie purchase a Public Offic'rai Bond.
Publc Official Bards are available for various public officials and employees who are required to
be bonded by statute, city charter, ordinance, resolution or other official action on the part of the
governing body of a untt of local government If a Public Offiraal Bond is required, the Pooi can
assist with brokering the bond through a private company.
I hope this response has successfully answered your questions regarding the bid submitted by
the Pool. If you need anything else, please let me know.
Thanks!
Dinora B. Niedzwiedz, CIC
TML-IRP Underwriter
phone (800}537-6655, ext. 444
fax (512) 491-2404
PAGE 3 OF 3
~IW I~acyVa) r'3au~ rrottz - ryes. rwV. ryy. vin Elua yn~wu-oit~ nnarya~a n~wwcw ~a~ ~
EXHIBIT D
From: <DNiedzwiedz~tmlirp:onJ>
To: "Evelyn Page" <Evelyn~cctexas.com>
CC: <carolyn~rwlgroup.com>, "Donna James" <DonnaJ~cctexas.com>, °Paul Pierce...
Date: 1 0/1 5/2009 4:59 PM
S~ject: Re: Fwd: FW: Corpus Christi-Bid Analysis Answers
Attschrnerr[s: CGBid Analysis Answers.pdf
In response to the questions posed by RWL:
Item #5-Auto Cat Physical Damage: Dinora addresses the fact that the
aggregate applies to a particular claim but does not clarity whether or
not there is an annual aggregate, and H so, what it is.
Under Auto Cat Coverage, there is no aggregate, only a per occurrence
limit.
Item #6-credit Card Coverage: Dinora has stated thaf credit cards are
covered, but we feel the waythe coverages reads, credit cards may not be
included. Consequently, please ask TML if they would be willing to
include a endorsement specifically clarifying that credit cards are
covered.
The Pool will provide a Manuscript Endorsement that spec'rfically states
that credit card forgery is covered and is subject to the $250 deductible
as requested by the City. This endorsement will be issued with the final
Crime Coverages declaration pages.
Item #7-Public Employee Dishonesty Coverage: Any employee that is
required bylaw to be bonded, should have an individual bond as required
by law. Please request that TML include coverage in excess of those
individual bonds.
I checked with our Underwriting Manager and our coverage wil! not apply
excess of the City's Public Officlal Bonds as the City should be able to
elect sufficient limits from their bond broker. If you would like me to
find out what limits are available for Public Official Bonds through the
broker we typically use, Victor O. Schinnerer, I am happy to do so.
Thanks!
Dinora B. Niedzwiedz, CIC
TML-IRP Underwriter.
phone (800) 537-6655, ext. 444
fax (512) 491-2404
"Evelyn Page" <Evelyn~cctexas.com>
10/14/200911:05 AM
To
<DNiedzwiedz~tm lirp.org>
cc
"Donna James" <DonnaJ~cctexas.com>, °Paul Pierce" <PaulP~cctexas.com>,
<carolyn ~ rvvigroup.com>
Subject
Fwd: FW: Corpus Christi-Bid Analysis Answers
PAGE 1 OF 4
EXHIBIT D
Dinora
As discussed, attached is the email from RWL Group requesting
additional clar'rfigtions. Please provide at your earliest
opportunity.
Thanks
Evelyn
Evelyn Page
Risk Management Specialist
Human Resources -Risk Management
(361)82&3611-phone
(361)826-4555--fax
evelyn~cctexas.com -Email
HR Department Mission -PEOPLE HELPING PEOPLE SUCCEED
We value Integrity, Professionalism, Quality Customer Service, Safety,
Teamwork and Wellness
City of Corpus Christi -Risk Management
P. 0. Box 9277
Corpus Christi, TX 78469
This email transmission is intended only for the use of the individual
or entity named above and may contain legally privileged or other
confidential information. If the recipient of this transmission is not
the intended recipient, you are hereby not'rfied that any dissemination,
distribution ,copying or other use of this communication is
unauthorized and your receipt of such communication is unintended. If
you have received this communication in error, please notify me by
telephone at (361) 826.3611 and destroy the communication.
----- Message from °Carolyn Miller" <carolyn~rwlgroup.com> on Wed, 14 Oct
200910:3520 -0500 -----
To:
"Donna James" <donnaj~cctexas.com>
cc:
"Evelyn Page" <evelyn~cctexas.com>
Subject:
FW: Corpus Christi-Bid Analysis Answers
Donna:
Bob and I had the opportunity to visit regarding the attached answers from
TML, and we still have some questions/comments.
Item #5-Auto Cat Physical Damage: Dinora addresses the fact that the
aggregate applies to a particular claim but does not clarify whether or
not there is an annual aggregate, and 'rf so, what ft is.
ttem #&--Credit Card Coverage: Dinora has stated that cxedit cards are
covered, but we feel the way the coverages reads, credit cards may not be
included. Consequently, please ask TML 'rf they would be willing to
Include a endorsement specifically clariTying that credit cards are
covered.
Item #7-Public Employee Dishonesty Coverage: Any employee that is
required by law to be bonded, should have an individual bond as required
by law. Please request that TML include coverage in excess of those
individual bonds.
I look forward to receiving Dinora's response to these requests for
PAGE 2 OF 4
~10 16 aul Pierce - Rei Fwd: FW: Co us Christi-Bid Ana is Answers Pa 3
EXHIBIT D
clar'rfication.
Carolyn Miller
From: Donna James [mailto:DonnaJ®cctexas.com]
Sent: Wednesday, October 14, 2009 8:27 AM
To: Bonnie Sindelar
Cc: Evelyn Page
Subject: Fwd: Corpus Christi-Bid Analysis Answers
Bob, here are the clarifications received from TML, please review/respond
and share with Carolyn.
Donna James-Spruce, Manager
Safety 8 Risk Management Division
City of Corpus Christi
(361)826-3739
donna] ~ cctexas.com
City of Corpus Christi Mission: Provide Exceptional Service
To Enhance The Quality of
Life
Human Resources Department Mission: PEOPLE HELPING PEOPLE SUCCEED
We value Integrity, Professionalism, Quality Customer Service, Safety
Teamwork, & Wellness
If you are not the intended recipient, be aware that any disclosure,
copying, printing, distribution, or use of the contents of this
transmission is prohibited. If you have received this transmission in
error, please notify us by telephone at (361)826-3689 immediately upon
receipt. Thank you.
»> Paul Pierce 1 0/1 3/2009 2:44:04 PM »>
Best regards,
Paul Pierce
Procurement Manager
City of Corpus Christi
P.O. Box 9277 Zip 78469
1201 Leopard Street
Corpus Christi, Texas 78401
Main: 361-826-3160
Direct: 361-826-3164
Fax: 361-826-4374
Website: http://www.cctexas.oom/?fuseaction=main.view&page=220
»> <DNiedzwiedz~tmlirp.org> 10/8/2009 9:27 AM »>
Mr. Pierce,
Please see attachment...
Thanks!
Dinora B. Niedzwiedz, CIC
TML-IRP Underwriter
PAGE 3 OF 4
~•
EXHIBIT D
phone (800) 537-6655, ext. 444
fax (512) 491-2404
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