HomeMy WebLinkAboutC2018-440 - 9/18/2018 - Approved Iii
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o SERVICE AGREEMENT NO. 1269
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ARBITRAGE COMPLIANCE SERVICES
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1852
THIS Arbitrage Compliance Services Agreement ("Agreement") is entered into by
and between the City of Corpus Christi, a Texas home-rule municipal corporation
("City") and Arbitrage Compliance Specialists, Inc. ("Contractor"), effective upon
execution by the City Manager or the City Manager's designee ("City Manager").
WHEREAS, Contractor has bid to provide arbitrage compliance services in
response to Request for Bid/Proposal No. 1269 ("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 arbitrage compliance 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 36 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 two additional 12-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
$46,500.00, 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:
2018-440
9/18/18
M2018-167 /PPagel of 7
5/17
Arbitrage Compliance Specialists
‘ .
SCANNED
Name: Judy Ann Villalon
Department: Finance
Phone: (361) 826-3651
Email: JudyAV@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.
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. Inspection and Acceptance. Any Services that are provided but not accepted by
the City 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.
8. Warranty.
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(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.
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.
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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: Judy Ann Villalon
Title: City Treasurer
Address: 1201 Leopard Street 4th Floor, Corpus Christi, TX 78401
Phone: (361) 826-3651
Fax: (361) 826-4371
IF TO CONTRACTOR:
Arbitrage Compliance Specialists, Inc.
Attn: Doug Pahnke, CPA
Title: President
Address: 5975 S. Quebec St. #205, Centennial, CO 801 1 1
Phone: (303) 867-7538
Fax: (800) 756-6505
17. CONTRACTOR SHALL FULLY INDEMNIFY, HOLD HARMLESS AND DEFEND
THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND
AGENTS ("INDEMNITEES') FROM AND AGAINST ANY AND ALL LIABILITY,
LOSS, CLAIMS, DEMANDS, SUITS, AND CAUSES OF ACTION OF
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, PROPERTY LOSS, OR DAMAGE, OR ANY OTHER KIND
OF INJURY, LOSS, OR DAMAGE, INCLUDING ALL EXPENSES OF
LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES,
WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION
WITH A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. CONTRACTOR MUST, AT ITS OWN EXPENSE,
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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.
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.
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;
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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.
(SIGNATURE PAGE FOLLOWS)
Service Agreement Standard Form Page 6 of 7
Approved as to Legal Form 12/15/17
CONTRACTOR
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Title: S,,/,',,. ifir
Date: 8/21/!8
CITY OF CORPUS CHRISTI
Signature: 64.„,. nv\, r Du
Printed Name: (.1.4 f-t9�
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Date: Q• 2-1.• 18
ATTEST: ;
REP • A HUERTA
Attached and Incorporated by Reference: C1 SECRETARY
Attachment A: Scope of Work
Attachment B: Bid/Pricing Schedule
Attachment C: Insurance and Bond Requirements
Attachment D: Warranty Requirements �_
J IL.01-ui KILO►
Incorporated by Reference Only: q
Exhibit l: RFB/RFP No. 1269 !T COUNCIL I e 18
Exhibit 2: Contractor's Bid/Proposal Response
SFCRF.Tnc
Service Agreement Standard Form Page 7 of 7
Approved as to Legal Form 12/15/17
ATTACHMENT A: SCOPE OF WORK
1. General Requirements
The Contractor shall provide Arbitrage Services as required to ensure compliance with
Section 148 of the Tax Code and Treasury regulations as amended, and assist the City in
the event of an Internal Revenue Service (IRS) inquiry or audit related to arbitrage issues.
The City is required to calculate interest earned on invested tax-exempt bond proceeds
fund balances to determine the arbitrage rebate amount due to the Internal Revenue
Service. The purpose of this scope is to establish parameters within which the Contractor
is to provide Arbitrage Rebate Compliance Services related to reviewing the City's tax-
exempt debt service funds, debts service reserve funds, capital projects funds, and other
funds, into which tax-exempt proceeds may have been deposited.
2. Scope of Work-The Contractor Shall:
1 . Perform all required calculations including a calculation of arbitrage yield, arbitrage
liability and yield restriction requirements not less than annually for each issue of
outstanding obligations of the City.
2. Create and maintain records necessary to determine arbitrage liability. If any, on
outstanding obligations of the City.
3. Review reports of investment and expenditure of bond proceeds as necessary to
ensure compliance with the IRS.
4. Assist the City in preparing or causing to be prepared any schedules, reports, or
records necessary to perform or support a calculation of arbitrage liability.
5. Provide the City a report of the calculations (including supporting documentation)
of arbitrage liability within 90 days after the end of the fiscal year (fiscal year end
September 30).
6. Prepare transmittals and forms necessary to report and pay arbitrage liability on
time.
7. Assist the City in providing information and guidance to the City's client agencies as
may be necessary from time to time to improve record-keeping and monitoring
required for compliance with the IRS.
Page 1 of 2
8. Provide advice and recommendation to the City concerning unique or
extraordinary compliance issues that may arise from time to time.
9. Review opportunities and recommend options to minimize existing liabilities or
increase retainable earnings.
10. Provide updates to staff regarding changes to IRS regulations regarding arbitrage
rebate.
11. Analyze and prepare post issuance financial calculations (arbitrage) to ensure
compliance with IRS regulations.
3. IRS Inquire or Audit Assistance
The Contractor shall assist and represent the City as necessary in the event of an IRS
inquiry or audit. This work will be compensated on a loaded hourly rate basis. The loaded
rate includes all compensation for these services. No additional costs will be allowed.
Page 2 of 2
s:C4‘4
CITY OF CORPUS CHRISTI
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Revised Pricing Form 07/12/2018
�•.' I PURCHASING DIVISION
�rizmr
� RFP No. 1269 Arbitrage Compliance Services
DATE: 7/16/18
Arbitrage Compliance Specialists, Inc.
PROPOSER AUTHORW4/
ATURE
1. Refer to "Instructions to Proposers" and Contract Terms and Conditions before completing proposal. D
2. Provide your best price for each item. -1
3. In submitting this proposal, Proposer certifies that: D
a. the prices in this proposal have been arrived at independently, without consultation, communication, or agreement with any other Proposer or (')
competitor, tor the purpose of restricting competition with regard to prices; _
b. Proposers is an Equipal Opportunity Employer;and the Disclosure of Interst information on file with City's purchaisng office, pursuant to the Code
1710 of Ordinances,is current and true. Z
CD c. Proposer has incorporated any changes issue through Addenda to the REP in this pricing. -I
o - COSTCOST p0
N DELIVERY MATURITY COST COST COST YEAR 4 YEAR 5Ca
ITEM DATE SIZE ISSUE DESCRIPTION DATE UNIT YEAR 1 YEAR 2 YEAR 3 Extension Extension —
Option 1 Option 2 D
1 13,445,000 North Padre Island Development Corp, 9/15/2022 _
2008 EA
3/14/2008 $350 $350 $350 $350 $350 73
2 4/2/2009 96,490 000 Utility Sys Rev Imp Bonds, 2009 7/15/2039 EA $450 $450 $450 $450 $450 0
3 8/20/2009 8 460 000 Comb Tax&Lmtd Pledge COs,2009 3/1/2019 EA $450 $450 S450 $450 $450 Z
4 4/8/2010 8,000 000 Utility Sys Rev Imp Bonds,2010 7/15/2029 EA $450 $450 $450 $450 , $450 0
13,685,000 General Imp Bonds,2010 3/1/2030 N
5 7/22/2010 3,000,000 Comb Tax&Lmtd Pledge Rev COs,2010 3/1/2030 EA $450 $450 $450 $450 S450 (7
6 8/17/2010 5,500,000 Comb Tax Lmtd Pledge Rev COs,Tax 3/1/2030 EA $450 $450 $450 $450 $450 =
7 8/17/2010 14,375,000 Utility Sys Rev Imp Bonds, 2010A 7/15/2019 EA $4S0 $450 $450 $450 $450 _ rn
8 8/17/2010 60,625,000 Utility Sys Rev Imp Bonds,Tax 2010 BAB 7/15/2040 EA $450 $450 $450 $450 $450 C
9 2/7/2012 44,695,000 General Imp Bonds,2012 3/1/2026 EA $450 $450 $450 $450 $450 r
rn
10 2/23/2012 7,390,000 Public Property Fin Contract Oblgtns,2012 3/1/2024 EA $350 $350 $350 $350 $350
11 5/17/2012 r 52,500,000 Utility Sys Rev Imp Bonds,2012 7/15/2042 EA $450 $450 $450 $450 $450
12 7/31/2012 8,340,000 General Imp Ref Bonds,Arpt Ref,2012A 3/1/2023 EA $450 $450 $450 $450 $450
13 7/31/2012 9,880,000 General Imp Ref Bonds,Arpt Ref,2012B 3/1/2030 EA $450 $450 $450 $450 $450
14 8/2/2012 29,075,000 CC Bus&Job Dev Corp, Seawall Proj, 3/1/2026 EA $350 , $350 $350 $350 $350
15 9/27/2012 5,990,000 Comb Tax&Surplus Arpt Rev COs,2012 3/1/2037 EA $450 $450 $450 $450 $450
16 12/27/2012 155,660,000 Utility Sys JL Rev&Ref Bonds,2012 7/15/2042 EA $450 $450 $450 $450 $450
69,085,000 Utility Sys JL Rev Imp Bonds,2012 7/15/2042
Page 1 of 2
COST COST
DELIVERYMATURITY COST COST COST YEAR 4 YEAR 5
ITEM DATE SIZE ISSUE DESCRIPTION DATE UNIT YEAR 1 YEAR 2 YEAR 3 Extension Extension
Option 1 Option 2
17 12/27/2012 29,855,000 General Imp Ref Bonds,2012C 3/1/2023 EA $450 $450 S450 $450 $450
18 12/27/2012 107,660,000 General Imp Ref Bonds,Tax 2012 3/1/2038 EA N/A N/A N/A N/A N/A -
19 7/31/2013 82,025,000 General Imp Bonds,2013 3/1/2033 EA $450 $450 $450 $450 $450
20 12/19/2013 97,930,000 Utility Sys Junior Lien Rev Imp Bonds, 7/15/2031 EA $45Q $450 $450 $450 $450 ,
21 2/6/2014 30,555,000 CCBJDC Arena Project Ref,2014 9/1/2025 EA $350 $350 $350 $350 $350
22 5/8/2014 8,000,000 Tax Nate,2014 3/1/2021 EA $350 $350 $350 $350 $350
23 5/16/2014 9,000,000 PPFCO, 2014 3/1/2026 EA $350 $350 $350 $350 $350
24 1/15/2015 2,600,000 Marina System Rev Bonds,Taxable 2015 9/30/2030 EA N/A N/A N/A N/A N/A
25 4/23/2015 93,600,000 Utility Sys JL Rev Imp Bonds,2015A 9/30/2045 EA $450 $450 $450 $450 $450
26 07/22/15 101,385,000 Utility Sys JL Rev Imp Bonds,2015C 7/15/2044 EA $450 $450 S450 $450 $450
46,990,000 Utility Sys JL Rev Ref Bonds,2015D 7/15/2026
27 8/27/2015 90,520,000 General Imp Bonds,2015 3/1/2035 EA $450 $450 S450 $450 $450
28 9/17/2015 62,785,000 Nueces River Authority,2015 7/15/2027 EA $350 $350 $350 $350 $350
29 10/20/2015 10,020,000 Comb Tax&Lmtd Pledge Rev COs,Tax 3/1/2035 EA N/A N/A N/A N/A N/A
30 10/20/2015 61,015,000 General Imp Ref Bonds,2015 3/1/2029 EA $450 $450 $450 $450 $450
CD 31 1/14/2016 2,000.000 Comb Tax&Lmtd Pledge Rev COs. 2016 3/1/2035 EA $450 $450 $450 $450 $450
N
o 16,430.000 Comb Tax&Lmtd Pledge Rev COs. 3/1/2036
N 32 8/11/2016 EA 16 130 000 General Imp Ref Bonds. 2016A 3/1/2029 $450 $450 $450 $450 $450
33 8/25/2016 80 415 000 Utility Sys JL Rev Ref Bonds. 2016 7/15/2039 EA $450 $450 $450 $450 $450
34 12/16/2016 7.365 000 General Imp Ref Bonds, 2016A 9/1/2026 EA $450 , $450 $450 $450 $450
35 5/2/2017 51 215.000 Utility Sys JL Rev Ref Bonds. 2017 7/15/2045 EA $450 $450 S450 $450 $450
36 7/17/2017 27.670,000 Utility Sys JL Rev Ref Bonds, 2017A 9/30/2020 EA $450 $450 $450 , $450 $450
37 11/21/2017 2.750,000 Utility Sys JL Rev Imp bonds, Series 2017 7/15/2025 EA $450 ` $450 $450 $450 $450
38 4/15/2017 2,500.000 Taxable CO's Landfill, 2017 9130/2027 EA N/A N/A N/A N/A _ N/A
39 3/1/2018 34,835,000 UtI Sub Ln Rev Refdg TWBD,2018 7/15/2029 EA $450 $450 $450 $450 $450
16,355,000 General Improvement Bonds,2018 3/1/2038
40 5/23/2018 14,315,000 Tax&Lmtd Pldg CO-Street,2018A 3/1/2038 EA $450 $450 $450 $450 $450
7,490,000 Tax&Lmtd Pldg CO-Landfill,2018B 3/1/2038
Total Per Year $15,500* $15,500" $15,500* $15,500' $15,500*
Extended Loaded ded Loaded Extended
Description UOM Loaded Rate Price Rate ce Rate Price
Years 1 -3 Years 1-3 Extension Extension Extension Extension
Option 1 Option 1 Option 2 Option 2
Loaded Hourly Rate for
41 Assistance with IRS Related 10 HR/Per Year 0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Issues(As Needed Per Year)
*Note: In the event that ACS determines no gross proceeds exist for any bond issue,the annual fee for such bonds will be S0.00 and ACS will provide
written confirmation no gross proceeds are present.The fees proposed above represent at not-to-exceed budget for each fiscal year.
Page 2 of 2
ATTACHMENT C: INSURANCE AND BOND 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
the subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager and Contract Administrator one 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.
Construction contracts including excavation at three feet or more requires Pollution
Liability Coverage. In addition, Construction contracts of more than five million dollars
require Umbrella Liability Insurance.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-day advance written notice of Bodily Injury and Property Damage
cancellation, non-renewal, material Per occurrence - aggregate
change or termination required on all
certificates and policies.
ERRORS & OMMISSIONS $1,000,000 Per Occurrence
$2,000,000 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 certificates 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
Page 1 of 2
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;
• Provide 30 calendar days advance written notice directly to City of any, cancellation,
non-renewal, material change or termination in coverage and not less than ten
calendar days advance written notice for nonpayment of premium.
D. Within five calendar days of a cancellation, non-renewal, material change or
termination of coverage, Contractor shall provide a replacement Certificate of
Insurance and applicable endorsements to City. City shall have the option to suspend
Contractor's performance should there be a lapse in coverage at any time during this
contract. Failure to provide and to maintain the required insurance shall constitute a
material breach of this contract.
E. 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.
F. 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.
G. 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.
H. It is understood and agreed that the insurance required is in addition to and separate
from any other obligation contained in this contract.
2017 Insurance Requirements
Financial Services
Arbitrage Services
08/14/2017 cg Risk Management
Section 5.(B) Bonds are not required for this service.
Page 2 of 2
ATTACHMENT D: WARRANTY
Section 8. Warranty of this service agreement is null; warranty is not required.
Page 1 of 1