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HomeMy WebLinkAbout2011-228ORDINANCE NO. 2011-228 AN ORDINANCE ACCEPTING SEALED PROPOSALS AND AWARDING AN "AGREEMENT FOR COLLECTION SERVICES [PART D: MUNICIPAL COURT FINES]" BY AND BETWEEN THE CITY OF DENTON, TEXAS AND LINEBARGER, GOGGAN, BLAIR, AND SAMPSON, LLP, A CORPORATION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE (RFP 4633—AGREEMENT FOR COLLECTION SERVICES AWARDED TO LINEBARGER, GOGGAN, BLAIR, AND SAMPSON, LLP A CORPORATION IN AN AMOUNT WHICH IS CONTINGENT UPON ITS MONETARY RECOVERIES FROM PERSONS, IN ACCORDANCE WITH THE PERCENTAGES EXPRESSED IN ITS PRICE PROPOSAL WHICH IS ON FILE WITH THE CITY OF DENTON PURCHASING DEPARTMENT). WHEREAS, Article 103.0031 of the Code of Criminal Procedure provides that the governing body of a municipality may enter into a contract with an attorney or private vendor for collection services and may also authorize the addition of collection fees in the amount of 30% on each debt or account receivable such as fines, fees, restitution and other debts and costs, not including forfeited bonds, that are more than 60 days past due and that have been referred to the private vendor or attorney; and WHEREAS, by Ordinance No. 2001-295, approved by the City Council on August 21, 2001, the City Council authorized the additional 30% collection fee allowed by Article 103.0031 of the Code of Criminal Procedure on each debt or account receivable such as fines, fees, restitution, and other debts or costs, not including forfeited bonds, that are more than sixty days past due and that have been referred to a private vendor or attorney; and WHEREAS, the City Manager's staff has determined from an evaluation of responses to the City's Request for Proposal (RFP) for Municipal Court Collection Services that Linebarger, Goggan, Blair & Sampson, LLP, is the best qualified firm; and WHEREAS, the City Council hereby finds and concludes that Linebarger, Goggan, Blair & Sampson, LLP, is appropriately qualified under the provisions of the law to be retained as a municipal court collection agency for the City; and WHEREAS, the Code of Criminal Procedure provides for payment of the 30% additional collection fee for the foregoing services and the City Council deems it in the public interest to enter into a Contract For The Collection of Municipal Court Fines with Linebarger, Goggan, Blair & Sampson, LLP, for municipal court collection services; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations in the preamble are true and correct, and are incorporated herewith as part of this Ordinance. SECTION 2. The City Manager is hereby authorized to execute a Contract For The Collection Of Municipal Court Fines with Linebarger, Goggan, Blair & Sampson, LLP„ relating to municipal court collection services as set forth above and authorized by Article 103.0031 of the Code of Criminal Procedure, in substantially the form of the Contract attached hereto and incorporated herein by reference. SECTION 3. The award of this Agreement is on the basis of the demonstrated competence and qualifications of Linebarger, Goggan, Blair & Sampson, LLP, and the ability of Linebarger, Goggan, Blair & Sampson, LLP, to perform the services needed by the City for a fair and reasonable price in accordance with the fees authorized by the Code of Criminal Procedure. SECTION 4 This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: day of , 2011. Page 2 of 2 CONTRACT FOR THE COLLECTION OF MUNICIPAL COURT FINES THE STATE OF TEXAS § COUNTY OF DENTON § THIS CONTRACT is made and entered into by and between the City of Denton, 215 E. McKinney, Denton, Texas 76201 ("CITY'), acting herein by and through its governing body, and Linebarger, Goggan, Blair & Sampson, LLP ("FIRM"), a Limited Liability Partnership authorized to do business in Texas. 1. EMPLOYMENT OF FIRM A. CITY agrees to employ and does hereby employ FIRM, to provide specific collection services provided herein and enforce the collection of delinquent court fees and fines that are subj ect to this Contract, pursuant to the terms and conditions described herein. This Contract hereby creates a relationship with FIRM as an independent contractor, and FIRM hereby agrees to seek collection of all delinquent warrants on cases filed in the CITY's Municipal Court, as well as any other debts, accounts receivable and other debts owing to the City (delinquent Municipal Court records) which may be collected under Section 103.0031 of the Texas Code of Criminal Procedure as requested by the City. B. FIRM shall provide collection services for any Municipal Court collection services authorized by the Section 103.0031 of the Texas Code of Criminal Procedure as may be requested by the City Manager or his designee. Such services shall include but not be limited to recommendations and advice to CITY. C. FIRM shall perform all these services set forth in the City of Denton RFP No. 4633 Request for Sealed Proposals for Collection Services and FIRM's proposal in response to RFP No. 4633 dated April 26, 2011, which are on file in the office of the City of Denton Purchasing Agent and made a part of this Contract for all purposes provided; however, in the event of any conflict between the terms of this Contract and Exhibits A and B, the terms of this Contract shall prevail. D. FIRM hereby agrees to perform the services herein with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. 2. PROVISION OF INFORMATION CITY agrees to furnish all necessary warrants and other Municipal Court collection information to FIRM as indicated in the Exhibit A. Fines and fees that are subject to this Contract are those that are more than sixty (60) days 1 — RFP #4633-CONTRACT past due as of the effective date hereof and those that become more than sixty (60) days past due during the term hereof. As used in this section, "more than 60 days past due" has that meaning assigned by Subsection (f) of Art. 103.0031, Texas Code of Criminal Procedure [as amended by Senate Bill 782, 78th Legislature (2003), effective June 18, 2003]. The meaning assigned to the phrase "more than 60 days past due" shall, for the term and purposes of this Contract, survive any future amendments to, or repeal of, Article 103.0031, Texas Code of Criminal Procedure, or any parts thereof. The CITY agrees to provide to the FIRM data regarding any fines and fees that are subj ect to this Contract. The data shall be provided by electronic medium in a file format specified by the FIRM. The CITY and the FIRM may from time -to -time agree in writing to modify this format. The CITY shall provide the data to the FIRM not less frequently than monthly. 3. INVESTIGATION AND ASSISTANCE FIRM agrees to conduct investigations as to the address of all delinquent cases provided by CITY. FIRM shall bring to the attention of the appropriate official of CITY any errors, discrepancies, or inaccuracies in the information provided on the delinquent Municipal Court fine records detected by FIRM. FIRM further agrees to provide CITY with any advice or assistance in connection with updating the Municipal Court records. CITY shall make available to FIRM information which CITY may have with regard to the name, identity, and location of necessary parties in connection with each delinquent account upon request by FIRM. 4. PROCEDURES FOR COLLECTION Upon initial receipt of the delinquent Municipal Court records by FIRM in computer readable form, FIRM agrees to initiate procedures for the collection of the full amount due from each delinquent person. Within a reasonable time frame but not more than sixty (60) days from F]RM's receipt of the delinquent Municipal Court records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent person, requesting said person to remit the full amount due and owing to CITY. 5. REVIEW AND AUTHORIZATION Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence procedures in anticipation of substantial collection action for aggressive pursuit of collection. 6. COLLECTION SERVICES FIRM agrees (i) to provide CITY collections advice and written opinions regarding collection matters upon request (ii) to accept only payments in full from the defendant. In the event the FIRM receives anything other than payment in full from the defendant/debtor, the FIRM shall immediately notify the CITY's Municipal Court for direction. In all demand letters and all communications with 2 — RFP #4633-CONTRACT delinquent persons, FIRM shall inform and instruct the person to remit the payment to FIRM. If remittance is received by CITY, it will be transmitted in its entirety to FIRM and received for processing within three business days. Checks made payable to CITY shall be endorsed by CITY to FIRM. Following the Contract award, ADDITIONAL services of the same general category that could have been encompassed in the award of this contract, and that are not already on the contract, may be added. A formal written request may be sent to successful Firm to provide a proposal on the additional services and shall submit proposals to the City of Denton as instructed. All prices are subject to negotiation with a Best and Final Offer (`BAFO"). The City of Denton may accept or reject any or all pricing proposals, and may issue a separate RFP for the additional services after rejecting some or all of the proposals. The services covered under this provision shall conform to the statement of work, specifications, and requirements as outlined in the request. Contract changes shall be made in accordance with Local Government Code 252.048. 7. MANAGEMENT REPORTS FIRM agrees to make delinquent collection management reports to CITY monthly and quarterly, in a format containing information as requested by CITY's Executive Director of Finance and Municipal Court Administrator. Management reports may include, without limitation: 1. Number of phone or other delinquent person contacts within first 180-day period; 2. First demand letters mailed; 3. Number and value of bankruptcies filed; 4. Copies of proof of claims filed in bankruptcy court; 5. Number and value of delinquent accounts not collected as a percentage of total delinquent accounts provided by CITY for collection. 6. Any other information which is indicated under "Exhibit A or B" or as may be required under the Contract. Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the delinquent person cannot be found, the enforcement of a judgment cannot be accomplished, or further attempts at collection would be futile and FIRM's recommendation relative to the proper disposition of the case. In such cases, the CITY shall advise FIRM as to the appropriate disposition of the account. 8. COMPENSATION A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees that FIRM may collect a collection fee of thirty percent (3 0%) of the total amount of all delinquent amounts, as authorized by Section 103.0031(b) of the Code of Criminal Procedure. All delinquent collections received on behalf of the CITY shall become the property of CITY at the time payment of the delinquent fines or other amounts received by FIRM. All compensation shall become the property of 3 — RFP #4633-CONTRACT the FIRM at the time payment of the delinquent fines or other amounts are received by the FIRM. Said collection fee shall be withheld by FIRM when payment is made to CITY of delinquent fines or other amounts owed. FIRM shall not be entitled to the aforesaid thirty percent (30 %) unless and until FIRM has taken some action in connection with recovering delinquent amounts. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitle FIRM to the fee aforesaid. In no event shall FIRM be entitled to any fee unless and until CITY actually receives the delinquent fines, other amounts or court costs from FIRM. In no event shall FIRM be entitled to any fee unless said fee is collected by FIRM during the term of this Contract or fee is collected by CITY on account(s) upon which FIRM is actively pursuing at the time of judgment. In no event shall FIRM be entitled to any fee in cases where payment is involuntary as in an arrest or where a cash, surety or personal bond is posted by the defendant, defendant's surety, bondsman or attorney. The CITY reserves the right to withdraw a case disposed by acquittal, dismissal, or where fines and costs are discharged through credit for time served in jail, the performance of community service or the case is administratively closed. FIRM shall pay said fines, other amounts or court costs to CITY by daily ACH method and automated daily upload to the Court's software system. B. The compensation set forth in this Section of this Contract shall be the total compensation due to FIRM from CITY for all services provided pursuant to this Contract and in no event shall FIRM seek any additional compensation from CITY. CITY shall not be responsible to pay for any services which are unsatisfactory or that the CITY has not approved. C. The FIRM shall bear all costs associated with its collection efforts, including, but not limited to, personnel salaries, document reproduction and mailing costs, mileage charges, costs of postal or other delivery service, software compatibility with City's system including automated payment processing, and charges for telephone and internet service. Any additional costs incurred pursuant to Section 6. Collection Services, above, shall be handled in accordance with that section. 9. CONFLICTS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the CITY, engage in any conflict of interest and to fully comply with any applicable codes of professional conduct or ethics laws for the duration of this Contract. CITY acknowledges and consents to the representation by the FIRM of other governmental entities that may be seeking the payment of fines and fees or other claims from the same person(s) as the CITY. 10. TERM The term of this Contract shall be for two years beginning on November 16, 2011 and ending on _November 15, 2013_ unless sooner terminated in accordance with Section 26 of this Contract. FIRM may renew this Contract for three (3) additional one-year period upon giving CITY a notice in writing of its intent to renew not later than sixty (60) days before the expiration of the initial term. FIRM shall have an additional six months to assist the CITY in reducing to judgment any cases filed prior to the termination date, and shall have a right to compensation of fees earned on any of these 4 — RFP #4633-CONTRACT matters FIRM has exclusively handled during this six month period. CITY shall have the right to sooner terminate this Contract pursuant to the terms of Section 26 Termination of Agreement" of this Contract. 11. SETTLEMENTS No settlements or compromises of fines or other collectable amounts shall be effected where prohibited by law and where authorized by law, only upon approval by CITY. 12. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses: CITY City of Denton, Texas ATTN: Purchasing Agent Purchasing Department 901-B Texas Street Denton, TX 76209 Linebarger, Goggan, Blair, & Sampson, LLP Attention: Director of Client Services P.O. Box 17428 Austin, TX 78760-7428 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. 13. VENUE The terms, obligations and requirements of this Contract shall be construed in accordance with the laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton County, Texas. Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting in Denton County, Texas. 14. ACCEPTANCE OF EMPLOYMENT In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY and undertakes the performance of this Contract as above stated. 15. DIRECTIVES All directives between FIRM and CITY shall be confirmed in writing. 16. COVENANT NOT TO SUE 5 — RFP #4633-CONTRACT FIRM further agrees not to bring any cause of action against CITY relative to this Contract. Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00 and the filing of such cause of action shall be considered a material breach of this Contract. 17. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY. 18. INDEMNITY AGREEMENT The FIRM shall indemnify and save and hold harmless, and defend, at its own expense, the CITY and its officers, agents, servants, and employees from and against any and all liability, suits, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, of whatever kind or character, whether real or asserted, resulting from the negligent acts or omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract. Nothing in this Contract shall be construed to create a liability to any person who is not a party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental immunity, which defenses are hereby expressly reserved. 19. INSURANCE During the performance of the services under this Contract, FIRM shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rated Carriers of at least an A- or above: The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM. In such event, the FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. 20. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other party to the disagreement without the other's approval. Such arbitration shall comply 6 — RFP #4633-CONTRACT with and be governed by the provisions of the Texas General Arbitration Act. 21. ENTIRE AGREEMENT This Contract, consisting of 11 pages, Exhibit A and B, and the previously submitted letter agreement, Exhibit C, which are on file in the office of the City's Purchasing Agent, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. The parties understand and agree that any previous agreements or contracts between the parties are null and void and this Contract is the sole and exclusive contract or agreement between the parties. 22. COMPLIANCE WITH LAWS The FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. 23. DISCRIMINATION PROHIBITED In performing the services required hereunder, the FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 24. PERSONNEL AND EQUIPMENT A. The FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. FIRM shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract. B. All services required hereunder will be performed by the FIRM or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. The FIRM may from time -to -time obtain co -counsel or subcontract some of the services provided for herein to other law firms or entities. In such cases, the FIRM will retain supervisory control and responsibility for any services provided by such co -counsel or subcontractors and shall be responsible to pay any compensation due to any such co -counsel or subcontractor. D. The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, in a timely manner, all the services required under the terms of this Contract. E. The CITY recognizes and acknowledges that the FIRM owns all right, title and interest in certain proprietary software that the FIRM may utilize in conjunction with performing the services 7 — RFP #4633-CONTRACT provided in this Contract. The CITY agrees and hereby grants to the FIRM the right to use and incorporate any information provided by the CITY ("CITY Information") to update the databases in this proprietary software, and, notwithstanding that CITY Information has been or shall be used to update the databases in this proprietary software, further stipulates and agrees that the CITY shall have no rights or ownership whatsoever in and to the software or the data contained therein, except that the CITY shall be entitled to obtain a copy of such data that directly relates to the CITY's accounts at any time. F. The FIRM agrees that it will not share or disclose any specific confidential CITY Information with any other company, individual, organization or agency, without the prior written consent of the CITY, except as may be required by law or where such information is otherwise publicly available. It is agreed that the FIRM shall have the right to use CITY Information for internal analysis, improving the proprietary software and database, and generating aggregate data and statistics that may inherently contain CITY Information. These aggregate statistics are owned solely by the FIRM and will generally be used internally, but may be shared with the FIRM's affiliates, partners or other third parties for purposes of improving the FIRM's software and services. 25. ASSIGNABILITY The rights and responsibilities of CITY under this Contract may not be assigned or transferred (whether by assignment, novation, or otherwise) by the City Council to another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is a specialized collection services contract and CITY is contracting for the unique services of FIRM. FIRM's rights and responsibilities under this Contract may not be assigned or transferred (whether by assignment, novation, or otherwise) by FIRM to another firm or collection agency without written approval of the assignment by the City Council. 26. TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30) days advance written notice to the other party. The City further shall have as a matter of right, the option to cancel this Contract upon giving the FIRM thirty (30) days advance written notice. B . This Contract maybe terminated or cancelled in whole or in part in the event of either party substantially failing to fulfill its obligations under this Contract. No such termination or cancellation will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance, and not less than 30 calendar days to cure the failure, and (2) an opportunity for consultation with the terminating party prior to termination. C. If the agreement is terminated prior to the Term provisions in Section 10, herein, FIRM shall be entitled to continue to collect any items and to pursue collection of any claims that were referred to and placed with the FIRM by the CITY prior to the termination date for an additional ninety (90) days following termination. Should the CITY subsequently contract with a new consultant for the continuation of services, FIRM shall cooperate in providing information. The FIRM shall turn over all 8 — RFP #4633-CONTRACT documents prepared or furnished by FIRM pursuant to this Contract to the CITY on or before ninety (90) days after termination, but may maintain copies of such documents for its use. Documents to be provided to the CITY shall not include those documents and information referred to in Section 24(E)- (F). 27. EXCLUSIVE CONTRACT AND MODIFICATION This Contract and the Exhibits constitute the sole, exclusive and entire contract between the parties and replaces any previous contracts between the parties which are null and void. No waiver or modification of this Contract or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as herein set forth. This Contract may only be modified with express written consent of both CITY and FIRM. 28. INDEPENDENT CONTRACTOR FIRM shall provide collection services provided herein to CITY as an independent contractor, not as an employee of the CITY. FIRM shall not have or claim any right arising from employee status. 29. MISCELLANEOUS A. The following exhibits, which are on file in the office of the City's Purchasing Agent, are made a part of this Contract: Exhibit "A" — RFP #4633 — Utilities, Ambulance, Code Enforcement Liens, Municipal Court Fines, and Miscellaneous Receivables Collection Services; Exhibit "B" — FIRM's proposal in response to RFP #4633; and Exhibit "C" — previously submitted letter agreement wherein FIRM agrees to reimburse CITY for collection module costs for CITY's software system. B. FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall have access during normal working hours to all necessary FIRM facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. CITY shall give FIRM reasonable advance notice of intended audits. C. For the purpose of this Contract, the key persons who will perform most of this work hereunder shall be Glenn Lewis, Corey Fickes, and Judy Leonard. However, nothing herein shall limit FIRM from using other qualified and competent members of its firm to perform the services required herein. D. FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, 9 — RFP #4633-CONTRACT in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY. E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent to the collection services provided herein, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the FIRM to enter in or upon public and private property as required for the FIRM to perform services under this Contract. 30. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract. 31. CAPTIONS The captions appearing at the first of each numbered section are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract. This Contract is executed on behalf of CITY by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf of FIRM. WITNESS the signature of all parties hereto in triplicate originals this the day of i 2011, Denton County, Texas. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: CITY OF DENTON, TEXAS GEORGE C. CAM ELL CITY MANAGERS M % �( 10 — RFP #4633-CONTRACT ANITA BURGESS, CITY ATTORNEY BY: LINEBARGER, GOGGAN, BLAIR, & SAMPSON, LLP BY: k a� '�� GLENN LEWIS CAPITAL PARTNER 11 - RFP #4633-CONTRACT CITY OF DENTON INSURANCE REQUIREMENTS FOR CONTRACTORS Bidder's attention is directed to the insurance requirements below. It is highly recommended that bidders confer with their respective insurance carriers or brokers to determine in advance of Bid submission the availability of insurance certificates and endorsements as prescribed and provided herein. If an apparent low bidder fails to comply strictly with the insurance requirements, that bidder maybe disqualified from award of the contract. Upon bid award, all insurance requirements shall become contractual obligations, which the successful bidder shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurance coverage as indicated hereinafter. As soon as practicable after notification of bid award, Contractor shall file with the Purchasing Department satisfactory certificates of insurance, containing the bid number and title of theproject. Contractor may, upon written request to the Purchasing Department, ask for clarification of any insurance requirements at any time; however, Contractors are strongly advised to make such requests prior to bid opening, since the insurance requirements may not be modified or waived after bid opening unless a written exception has been submitted with the bid. Contractor shall not commence any work or deliver any material until he or she receives notification that the contract has been accepted, approved, and signed by the City of Denton. All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted: • Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A. Any deductibles or self -insured retentions shall be declared in the bid proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self -insured retentions with respect to the City, its officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. • Liability policies shall be endorsed to provide the following: • Name as additional insured the City of Denton, its Officials, Agents, Employees and volunteers. 12 — RFP #4633-INSURANCE REQ. • That such insurance is primary to any other insurance available to the additional insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability. • Cancellation: City requires 30 day written notice should any of the policies described on the certificate be cancelled or materially changed before the expiration date. • Should any of the required insurance be provided under a claims -made form, Contractor shall maintain such coverage continuously throughout the term of this contract and, without lapse, for a period of three years beyond the contract expiration, such that occurrences arising during the contract term which give rise to claims made after expiration of the contract shall be covered. Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the Contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance. • Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. 13 — RFP #4633-INSURANCE REQ. SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [X] A. General Liability Insurance: General Liability insurance with combined single limits of not less than $1,000,000.00 shall be provided and maintained by the Contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG 0001 current edition) is used: • Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage. Coverage B shall include personal injury. • Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least: • Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCU) exposures. Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. [ ] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than $300,000.00 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract. 14 — RFP #4633 Satisfaction of the above requirement shall be in the form of a policy endorsement for: • any auto, or all owned, hired and non -owned autos. [ ] Workers Compensation Insurance Contractor shall purchase and maintain Worker's Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction proj ects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 110.110 of the Texas Worker's Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or Contractor's operations under this contract. Coverage shall be on an "occurrence" basis, and the policy shall be issued by the same insurance company that carries the Contractor's liability insurance. Policy limits will be at least combined bodily injury and property damage per occurrence with a _ aggregate. [ ] Fire Damage Legal Liability Insurance Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. [ ] Professional Liability Insurance Professional liability insurance with limits not less than $1,000,000 annual aggregate with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. 15 — RFP #4633 [ ] Builders' Risk Insurance Builders' Risk Insurance, on an All -Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ ] Commercial Crime Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside the premises, burglary of the premises, and employee fidelity. The employee fidelity portion of this coverage should be written on a "blanket" basis to cover all employees, including new hires. This type insurance should be required if the contractor has access to City funds. Limits of not less than each occurrence are required. [ ] Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. 16 — RFP #4633 OP ID: CW .4COR15" CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDD/YYYY) 11/07/11 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER 281-556-9999 PIA-Pathfinder/LL&D Ins Grpp 2g1-556-9609 1160 Dairy Ashford, Suite 220 Houston, TX 77079 Tom Clark CONTACT NAME: PHONE 281�56-9999 FAX No; 281-556-9609 AIc No Ext E-MAIL ADDRESS: PRODUCER LINEB-1 CUSTOMER ID #: INSURER(S) AFFORDING COVERAGE NAIC # INSURED LinebargerGoggan Blair & INSURER A: Continental Casualty Co 20443 Sampson, LLP PO Box 17428 INSURER B : Austin, TX 78760 INSURER C INSURER D : INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR " TYPE OF INSURANCE POLICY NUMBER MM/DD/YYW MWDD� LIMITS GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS -MADE OCCUR EACH OCCURRENCE $ —REMISES Ea occurrence) $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO LOC PRODUCTS - COMP/OP AGG $ $ AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULEDAUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Ea accident) $ BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ $ UMBRELLA LIAB EXCESS LIAB HOCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECLITIVE YIN OFFICERIMEMBER EXCLUDED? (Mandatory In NH) If yes, descdbe under DESCRIPTION OF OPERATIONS below N / A I WC STATU- OER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYE $ E.L. DISEASE - POLICY LIMIT $ A Professional Liab 425137620 05/01/11 05/01112 Per Claim 3,000,00 Aggregate 6,000,00 DESCRIPTION OF OPERATIONS / LOCATIONS f VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space Is required) RE: Municipal Court Collection Services Subject to policy terms, conditions, exclusions. CERTIFICATE HOLDER COUNTYD City of Denton Attn: Purchasing Agent Purchasing Department 901-B Texas Street Denton, TX 76209 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE �o�WK ©1988-2009 ACORD CORPORATION. All rights reserved. ACORD 25 (2009/09) The ACORD name and logo are registered marks of ACORD