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SERVICE AGREEMENT NO. 1764
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ACTUARIAL SERVICES FOR RISK MANAGEMENT
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THIS Actuarial Services Agreement ("Agreement") is entered into by and between
the City of Corpus Christi, a Texas home-rule municipal corporation ("City") and AMI
Risk Consultants, Inc. ("Contractor"), effective upon execution by the City Manager or
the City Manager's designee ("City Manager").
WHEREAS, Contractor has bid to provide Actuarial Services in response to Request
for Bid/Proposal No. 1764 ("RFB/RFP"), which RFB/RFP includes the required scope of
work and all specifications and which RFB/RFP and the Contractor's bid or proposal
response, as applicable, are incorporated by reference in this Agreement as Exhibits 1
and 2, respectively, as if each were fully set out here in its entirety.
NOW, THEREFORE, City and Contractor agree as follows:
1. Scope. Contractor will provide Actuarial Services ("Services") in accordance with
the attached Scope of Work, as shown in Attachment A, the content of which is
incorporated by reference into this Agreement as if fully set out here in its entirety,
and in accordance with Exhibit 2.
2. Term. This Agreement is for sixty months, with performance commencing upon
the date of issuance of a notice to proceed from the Contract Administrator or
Purchasing Division. The parties may mutually extend the term of this Agreement
for up to zero additional zero-month periods ("Option Period(s)"), provided, the
parties do so in writing and prior to the expiration of the original term or the then-
current Option Period. The City's extension authorization must be executed by
the City Manager or designee.
3. Compensation and Payment. The total value of this Agreement is not to exceed
$60,000.00, subject to approved extensions and changes. Payment will be made
for Services completed and accepted by the City within 30 days of acceptance,
subject to receipt of an acceptable invoice. All pricing must be in accordance
with the attached Bid/Pricing Schedule, as shown in Attachment B, the content
of which is incorporated by reference into this Agreement as if fully set out here in
its entirety.
4. Contract Administrator. The Contract Administrator designated by the City is
responsible for approval of all phases of performance and operations under this
Agreement, including deductions for non-performance and authorizations for
payment. The City's Contract Administrator for this Agreement is as follows:
2018-438
9/18/18
M2018-178 I Page 1 of 7
AMI Risk Consultants Inc.
SCANNED
Name: Gilbert Sanchez
Department: Risk Management
Phone:361 .826.3937
Email: Gilberts2@cctexas.com
5. Insurance; Bonds.
(A) Before performance can begin under this Agreement, the Contractor must
deliver a certificate of insurance ("COI"), as proof of the required insurance
coverages, to the City's Risk Manager and the Contract Administrator.
Additionally, the COI must state that the City will be given at least 30 days'
advance written notice of cancellation, material change in coverage, or intent
not to renew any of the policies. The City must be named as an additional insured
for all coverage except for Professional Liability. The City Attorney must be given
copies of all insurance policies within 10 days of the City Manager's written
request. Insurance requirements are as stated in Attachment C, the content of
which is incorporated by reference into this Agreement as if fully set out here in its
entirety.
(B) In the event a payment bond, a performance bond, or both, are required of
the Contractor to be provided to the City under this Agreement before
performance can commence, the terms, conditions, and amounts required in the
bonds and appropriate surety information are as included in the RFB/RFP or as
may be added to Attachment C, and such content is incorporated here in this
Agreement by reference as if each bond's terms, conditions, and amounts were
fully set out here in its entirety.
6. Purchase Release Order. For multiple-release purchases of Services to be
provided by the Contractor over a period of time, the City will exercise its right to
specify time, place and quantity of Services to be delivered in the following
manner: any City department or division may send to Contractor a purchase
release order signed by an authorized agent of the department or division. The
purchase release order must refer to this Agreement, and Services will not be
rendered until the Contractor receives the signed purchase release order.
7. Standard of Care. Contractor will perform Services in accordance with the
standard of care used by similarly situated contractors performing similar services.
Any Services that do not meet this standard of care must be corrected or re-
worked immediately at no charge to the City. If immediate correction or re-
working at no charge cannot be made by the Contractor, a replacement service
may be procured by the City on the open market and any costs incurred,
including additional costs over the item's bid/proposal price, must be paid by the
Contractor within 30 days of receipt of City's invoice.
Service Agreement Standard Form Page 2 of 7
8. Warranty.
(A) The Contractor warrants that all products supplied under this Agreement
are new, quality items that are free from defects, fit for their intended purpose,
and of good material and workmanship. The Contractor warrants that it has clear
title to the products and that the products are free of liens or encumbrances.
(B) In addition, the products purchased under this Agreement shall be
warranted by the Contractor or, if indicated in Attachment D by the
manufacturer, for the period stated in Attachment D. Attachment D is attached
to this Agreement and is incorporated by reference into this Agreement as if fully
set out here in its entirety.
9. Quality/Quantity Adjustments. Any Service quantities indicated on the Bid/Pricing
Schedule are estimates only and do not obligate the City to order or accept more
than the City's actual requirements nor do the estimates restrict the City from
ordering less than its actual needs during the term of the Agreement and including
any Option Period. Substitutions and deviations from the City's product
requirements or specifications are prohibited without the prior written approval of
the Contract Administrator.
10. Non-Appropriation. The continuation of this Agreement after the close of any
fiscal year of the City,which fiscal year ends on September 30th annually, is subject
to appropriations and budget approval specifically covering this Agreement as
an expenditure in said budget, and it is within the sole discretion of the City's City
Council to determine whether or not to fund this Agreement. The City does not
represent that this budget item will be adopted, as said determination is within the
City Council's sole discretion when adopting each budget.
11. Independent Contractor. Contractor will perform the work required by this
Agreement as an independent contractor and will furnish such Services in its own
manner and method, and under no circumstances or conditions will any agent,
servant or employee of the Contractor be considered an employee of the City.
12. Subcontractors. Contractor may use subcontractors in connection with the work
performed under this Agreement. When using subcontractors, however, the
Contractor must obtain prior written approval from the Contract Administrator if
the subcontractors were not named at the time of bid or proposal, as applicable.
In using subcontractors, the Contractor is responsible for all their acts and
omissions to the same extent as if the subcontractor and its employees were
employees of the Contractor. All requirements set forth as part of this Agreement,
including the necessity of providing a COI in advance to the City, are applicable
to all subcontractors and their employees to the same extent as if the Contractor
and its employees had performed the work.
Service Agreement Standard Form Page 3 of 7
13. Amendments. This Agreement may be amended or modified only by written
change order signed by both parties. Change orders may be used to modify
quantities as deemed necessary by the City.
14. Waiver. No waiver by either party of any breach of any term or condition of this
Agreement waives any subsequent breach of the same.
15. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA
taxes, unemployment taxes and all other related taxes. Upon request, the City
Manager shall be provided proof of payment of these taxes within 15 days of such
request.
16. Notice. Any notice required under this Agreement must be given by fax, hand
delivery, or certified mail, postage prepaid, and is deemed received on the day
faxed or hand-delivered or on the third day after postmark if sent by certified mail.
Notice must be sent as follows:
IF TO CITY:
City of Corpus Christi
Attn: Gilbert Sanchez
Title: Risk and Safety Manager
Address: 1201 Leopard St, 5th Floor, Corpus Christi, Texas 78401
Phone:361.826.3937
Fax:
IF TO CONTRACTOR:
AMI Risk Consultants, Inc.
Attn: Aguedo M. Ingco
Title: President
Address: 1336 SW 146th Ct., Miami, Florida 33184
Phone: 305.273.1589
Fax: 702.359.0926
17. CONTRACTOR SHALL FULLY INDEMNIFY, HOLD HARMLESS AND DEFEND
THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND
AGENTS ("INDEMNITEES') FROM AND AGAINST ANY AND ALL LIABILITY,
LOSS, CLAIMS, DEMANDS, SUITS, AND CAUSES OF ACTION OF
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, PROPERTY LOSS, OR DAMAGE, OR ANY OTHER KIND
OF INJURY, LOSS, OR DAMAGE, INCLUDING ALL EXPENSES OF
LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES,
WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION
WITH A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
Service Agreement Standard Form Page 4 of 7
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. CONTRACTOR MUST, AT ITS OWN EXPENSE,
INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT
OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH
COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL
CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF
ANY KIND ARISING OR RESULTING FROM ANY SAID LIABILITY, DAMAGE,
LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION
OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE
THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT.
18. Termination.
(A) The City Manager may terminate this Agreement for Contractor's failure to
perform the work specified in this Agreement or to keep any required insurance
policies in force during the entire term of this Agreement. The Contract
Administrator must give the Contractor written notice of the breach and set out a
reasonable opportunity to cure. If the Contractor has not cured within the cure
period, the City Manager may terminate this Agreement immediately thereafter.
(B) Alternatively, the City Manager may terminate this Agreement for
convenience upon 30 days advance written notice to the Contractor. The City
Manager may also terminate this Agreement upon 24 hours written notice to the
Contractor for failure to pay or provide proof of payment of taxes as set out in this
Agreement.
(C) In the event of termination, the City shall compensate the Contractor for all
services actually rendered up to and including the effective date of the
termination.
19. Assignment. No assignment of this Agreement by the Contractor, or of any right
or interest contained herein, is effective unless the City Manager first gives written
consent to such assignment. The performance of this Agreement by the
Contractor is of the essence of this Agreement, and the City Manager's right to
withhold consent to such assignment is within the sole discretion of the City
Manager on any ground whatsoever.
20. Severability. Each provision of this Agreement is considered to be severable and,
if, for any reason, any provision or part of this Agreement is determined to be
invalid and contrary to applicable law, such invalidity shall not impair the
operation of nor affect those portions of this Agreement that are valid, but this
Agreement shall be construed and enforced in all respects as if the invalid or
unenforceable provision or part had been omitted.
Service Agreement Standard Form Page 5 of 7
21. Order of Precedence. In the event of any conflicts or inconsistencies between this
Agreement, its attachments, and exhibits, such conflicts and inconsistencies will
be resolved by reference to the documents in the following order of priority:
A. this Agreement (excluding attachments and exhibits);
B. its attachments;
C. the bid solicitation document including any addenda (Exhibit 1); then,
D. the Contractor's bid response (Exhibit 2).
22. Certificate of Interested Parties. Contractor agrees to comply with Texas
Government Code Section 2252.908, as it may be amended, and to complete
Form 1295 "Certificate of Interested Parties" as part of this Agreement.
23. Verification Regarding Israel. In accordance with Chapter 2270, Texas
Government Code, the City may not enter into a contract with a company for
goods or services unless the contract contains a written verification from the
company that it: (1) does not boycott Israel; and (2) will not boycott Israel during
the term of the contract. The signatory executing this Agreement on behalf of the
Contractor verifies that the company does not boycott Israel and will not boycott
Israel during the term of this Agreement.
24. Governing Law.This Agreement is subject to all federal, State, and local laws, rules,
and regulations. The applicable law for any legal disputes arising out of this
Agreement is the law of the State of Texas, and such form and venue for such
disputes is the appropriate district, county, or justice court in and for Nueces
County, Texas.
25. Entire Agreement. This Agreement constitutes the entire agreement between the
parties concerning the subject matter of this Agreement and supersedes all prior
negotiations, arrangements, agreements and understandings, either oral or
written, between the parties.
26. Limitation of Liability. The total liability of any Party to this Agreement is limited and
shall not include any liquidated, penalty, incidental or consequential damages of
any kind.
(SIGNATURE PAGE FOLLOWS)
Service Agreement Standard Form Page 6 of 7
CONTRACTOR
Signature:
Printed Name: Aguedo M. Ingco
Title: President
Date: August 24, 2018
CITY OF CORPUS
CHRISTI 1'
Signature: m. Q BCk.t
Printed Name: Iu FIAACE 1K-
Title: &rzzLatabatik_fricia S
Date: Q .21. 1
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Attached and Incorporated by Reference: 11"Fer R rrCCA HUERTA
Attachment A: Scope of Work C SECRETARY
Attachment B: Bid/Pricing Schedule
Attachment C: Insurance and Bond Requirements
Attachment D: Warranty Requirements
Incorporated by Reference Only:
Exhibit 1: RFB/RFP No. 1764
Exhibit 2: Contractor's Bid/Proposal Response
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Service Agreement Standard Form Page 7 of 7
Attachment A - Scope of Work
1.1 Scope of Work
A. Contractor shall clearly and precisely identify data to be provided by City under
the terms of this Agreement. The City shall provide liability data and the third-
party administrator shall provide Workers' Compensation data as requested by
the actuary. Upon successful receipt of all such required data, Contractor shall
perform the following services:
1 . Project the financial position as of September 30, 2019, September 30, 2020,
September 30, 2021, September 30, 2022, and September 30, 2023. The
financial position is a comparison of estimated unpaid losses with funds
earmarked to meet the self-insurance activity. The projection of the financial
position shall consider: current funding, budgeted revenue to fiscal year-end,
anticipated interest income, budgeted expenses paid to fiscal year-end and
projected losses paid to fiscal year-end.
2. Contractor will recommend an overall funding level for fiscal years 2019-2020
through 2023-2024, calculated separately by fiscal year. The recommended
funding reflects projected future losses, anticipated investment income, the
financial position of the City's self-insurance activity and a reasonable
provision for contingencies. If the self-insurance activity within either fund
shows a positive fund balance, Contractor will outline a prudent plan to
release the equity. If the self-insurance activity within either fund shows a
deficit, Contractor will outline a long-term strategy to reduce the shortfall.
3. Contractor will discuss any observations that Contractor may have, including
a review of claim frequency and claim severity patterns for the past five fiscal
years. Significant differences from previous actuarial studies that Contractor
had conducted, if any, will be identified and explained. Should there be a
projected shortfall based on actuarial analysis, actuary will determine trend
and provide report which identifies solutions.
4. Contractor will provide a statement affirming the conclusions in the actuarial
study are consistent with the GASB Statement No. 10.
5. Contractor will provide two studies annually based on data valued as of
March 31 and September 30 of each year.
6. A benchmark comparison of the City's Workers' Compensation experience
with that of other Texas public entities.
7. Conference with the City twice a year to be specified by the City. The first
conference shall be to review the draft of the actuarial report and the
second conference shall be when the final report is completed. A formal
presentation for various financial departments at the City to explain findings
associated with the study shall be provided at the discretion of the City.
8. In performing services for the City under this Agreement, the Contractor is not
acting as a fiduciary for the City and does not have a fiduciary or other
enhanced duty to the City.
B. Reporting.
The Contractor shall perform services required herein and conduct a
comprehensive annual actuarial analysis of the City's self-insured Workers'
Compensation and Liability programs. The actuarial analysis shall commence
during the month of November, with final completion by mid-February. Its
conclusions and recommendations in a draft report within 30 calendar days
after (1) authorization of the City to commence, unless an extension is granted
in writing by the City, and (2) upon acknowledged receipt by the Contractor of
complete and satisfactory statistical data. The draft report shall be consistent
with GASB statement No. 10. The conclusions and recommendations shall be
clear, concise, and easily understood by non-actuaries. The report shall include
charts, graphs and other documentation sufficient to support all conclusions
and recommendations. The Contractor shall be available for discussion or
presentations regarding the draft report's conclusions and recommendations
after submission of the draft report at the City's convenience. Based on any
new facts ascertained, the Contractor shall revise the draft report and issue a
final written report no later than 21 days after authorization by the City to
commence, unless an extension is granted in writing by the City.
Attachment B - Schedule of Pricing
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:;1i. �'� CITY OF CORPUS CHRISTI
b4+-1114 Pricing Form
PURCHASING DIVISION
issz
RFP No. 1764
Actuarial Services for Risk Management
PAGE 1 OF 1
DATE: July 31,2018
AMI Risk Consultants,Inc.
PROPOSER AUTHORIZ SIGNATURE
1. Refer to "Instructions to Proposers" and Contract Terms and Conditions before
completing proposal.
2. Provide your best price for each item.
3. In submitting this proposal, Proposer certifies that:
a. the prices in this proposal have been arrived at independently, without
consultation, communication, or agreement with any other Proposer or
competitor, for the purpose of restricting competition with regard to prices;
b. Proposer is an Equal Opportunity Employer; and the Disclosure of Interest
information on file with City's purchasing office, pursuant to the Code of
Ordinances, is current and true.
c. Proposer has incorporated any changes issue through Addenda to the RFP in this
pricing.
TOTAL PRICE
ITEM DESCRIPTION QTY UNIT
1.0 Actuarial Services Year 1 1 Lump sum $12,000
2.0 Actuarial Services Year 2 1 Lump sum $12,000
3.0 Actuarial Services Year 3 1 Lump sum $12,000
4.0 Actuarial Services Year 4 1 Lump sum $12,000
5.0 Actuarial Services Year 5 1 Lump sum $12,000
Attachment C - Insurance Requirements
Insurance Requirements
I. CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this contract until all
insurance required has been obtained and such insurance has been
approved by the City. Contractor must not allow any subcontractor,
to commence work until all similar insurance required of any
subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager and Purchasing
Director one (1 ) copy of Certificates of Insurance with applicable
policy endorsements showing the following minimum coverage by an
insurance company(s) acceptable to the City's Risk Manager. Project
name and/or number must be listed in Description Box of Certificate
of Insurance.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-day advance written
notice of cancellation,
non-renewal, material
change or termination
required on all certificates
and policies.
PROFESSIONAL LIABILITY $1,000,000.00 each claim
$1,000,000.00 Each Policy Year
Aggregate
C. In the event of accidents of any kind related to this contract,
Contractor must furnish the Risk Manager with copies of all reports of
any accidents within 10 days of the accident.
II. ADDITIONAL REQUIREMENTS
A. Contractor shall obtain and maintain in full force and effect for the
duration of this Contract, and any extension hereof, at Contractor's
sole expense, insurance coverage written on an occurrence basis by
companies authorized and admitted to do business in the State of
Texas and with an A.M. Best's rating of no less than A- VII.
B. Contractor shall be required to submit renewal certificate of insurance
throughout the term of this contract and any extensions within 10 days
of the policy expiration dates. All notices under this Exhibit shall be
given to City at the following address:
City of Corpus Christi
Attn: Risk Manager
P.O. Box 9277
Corpus Christi, TX 78469-9277
C. Contractor agrees that, with respect to the above required insurance,
all insurance policies are to contain or be endorsed to contain the
following required provisions:
• Provide for an endorsement that the "other insurance" clause shall not
apply to the City of Corpus Christi where the City is an additional
insured shown on the policy;
• Professional liability policiy will provide a waiver of subrogation in favor
of the City; and
• Provide thirty (30) calendar days advance written notice directly to
City of any, cancellation, non-renewal, material change or
termination in coverage and not less than ten (10) calendar days
advance written notice for nonpayment of premium.
E. Within five (5) calendar days of a cancellation, non-renewal, material
change or termination of coverage, Contractor shall provide a
replacement Certificate of Insurance and applicable endorsements
to City. City shall have the option to suspend Contractor's
performance should there be a lapse in coverage at any time during
this contract. Failure to provide and to maintain the required insurance
shall constitute a material breach of this contract.
F. In addition to any other remedies the City may have upon
Contractor's failure to provide and maintain any insurance or policy
endorsements to the extent and within the time herein required, the
City shall have the right to order Contractor to stop work hereunder,
and/or withhold any payment(s) which become due to Contractor
hereunder until Contractor demonstrates compliance with the
requirements hereof.
G. Nothing herein contained shall be construed as limiting in any way the
extent to which Contractor may be held responsible for payments of
damages to persons or property resulting from Contractor's or its
subcontractor's performance of the work covered under this contract.
H. It is agreed that Contractor's insurance shall be deemed primary and
non-contributory with respect to any insurance or self insurance
carried by the City of Corpus Christi for liability arising out of operations
under this contract.
It is understood and agreed that the insurance required is in addition
to and separate from any other obligation contained in this contract.
2018 Insurance Requirements
Purchasing
Actuarial Services for Risk Management
06/20/2018 sw Risk Management
Attachment D - Warranty
No warranty is required under this agreement therefore Service Agreement Section 8 is
hereby null and void.