2004-071ORDINANCE NO. ~0~¢-0 ~7/
AN ORDINANCE ACCEPTING COMPET1TWE BIDS AND AWARDING A PUBLIC WORKS
CONTRACT FOR AN ANNUAL PRICE AGREEMENT FOR CHIP SEALING OF CITY
STREETS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND
PROVIDING AN EFFECTIVE DATE (BID 3143-ANNUAL PRICE AGREEMENT FOR CHIP
SEALING AWARDED TO JOE SULLIVAN, INC. IN THE ANNUAL ESTIMATED AMOUNT
OF $310,000).
WHEREAS, the City has solicited, received and tabulated competitive bids for the
construction of public works or improvements in accordance with the procedures of State law and
City ordinances; and
WHEREAS, the City Manager or a designated employee has received and recommended that
the herein described bids are the lowest responsible bids for the construction of the public works or
improvements described in the bid invitation, bid proposals and plans and specifications therein;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the following competitive bids for the construction of public works or
improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on
file in the Office of the City's Purchasing Agent filed accorcFmg to the bid number assigned hereto,
are hereby accepted and approved as being the lowest responsible bids:
BID
NUMBER CONTRACTOR AMOUNT
3143 Jim Sullivan, Inc. $2.054/sq.yd.
SECTION 2. That the acceptance and approval of the above competitive bids shall not
constitute a contract between the City and the person submitting the bid for construction of such
public works or improvements herein accepted and approved, until such person shall comply with all
requirements specified in the Notice to Bidders including the timely execution ora written contract
and furnishing of performance and payment bonds, and insurance certificate after notification of the
award of the bid.
SECTION 3. That the City Manager is hereby authorized to execute all necessary written
contracts for the performance of the construction of the public works or improvements in accordance
with the bids accepted and approved herein, provided that such contracts are made in accordance
with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms,
conditions, plans and specifications, standards, quantities and specified sums contained therein.
SECTION 4. That upon acceptance and approval of the above competitive bids and the
execution of contracts for the public works and improvements as authorized herein, the City Council
hereby authorizes the expenditure of funds in the manner and in the amount as specified in such
approved bids and authorized contracts executed pursuant thereto.
SECTION 5. That this ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~-'-'~/~ dayof ~b~d~ ~/"~
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
3-ORD-Bid 3143
CONTRACT AGREEMENT
STATE OF TEXAS §
COUNTY OF DENTON §
THIS AGREEMENT, made andentered into this 23
day of March
A.D., 2004, by and between
of the County of Dentnn
Mike Cnnduff, City. Mnnager
hereinafter termed "OWNER," and
PO Rox 368
City. nf Dentnn
and State of Texas, acting through
thereunto duly authorized so to do,
The Rllllivan. Inn
of the City of Melitta , County of' Collin
and State of Texas
· hereinafter termed "CONTRACTOR."
WlTNESSETH: That for and in consideration of the payments and agreements
hereinafter mentioned, to be made and performed by OWNER, and under the conditions
expressed in the bonds attached hereto, CONTRACTOR hereby agrees with OWNER to
commence and complete performance of the work specified below:
Rid '~IA'~ Anmml Price Agreement gar Chip .qealing
in the amount of $2.054 per Ra?are Yard fnr an annum eetimated amnllnt nf $CllO,OO(} and
all extra work in connection therewith, under the terms as stated in the General Conditions of
the agreement; and at his (or their) own proper cost and expense to furnish all materials,
supplies, machinery, equipment, tools, superintendence, labor, insurance, and other
accessories and services necessary to complete the work specified above, in accordance with
the conditions and prices stated in the Proposal attached hereto, and in accordance with all the
General Conditions of the Agreement, the Special Conditions, the Notice to Bidders
(Advertisement for Bids), Instructions to Bidders, and the Performance and Payment Bonds, all
attached hereto, and in
CA- 1
accordance with the plans, which includes all maps, plats, blueprints, and other drawings and
printed or written explanatory matter thereof, and the Specifications therefore, as prepared by:
~ity nf Dentnn ~tnFf'
all of which are made a part hereof and collectively evidence and constitute the entire contract.
Independent Status
It is mutually understood aud agreed by and between City and Contractor that
Contractor is an independent contractor and shall not be deemed to be or considered an
employee of the City of Denton, Texas, for the purposes of income tax, withholding, social
security taxes, vacation or sick leave benefits, worker's compensation, or any other City
employee benefit. City shall not have supervision and control of Contractor or any employee
of Contractor, and it is expressly understood that Contractor shall perform the services
hereunder according to the attached specifications at the general direction of the City Manager
of the City of Denton, Texas, or his designee under this agreement.
Indemnification
Contractor shall and does hereby agree to indemnify and hold harmless the City of
Denton from any and all damages, loss, or liability of any kind whatsoever, by reason of injury
to property or third persons occasioned by any error, omission or negligent act of Contractor,
its officers, agents, employees, invitees, and other persons for whom it is legally liable, .with
regard to the performance of this Agreement, and Contractor will, at its cost and expense,
defend and protect the City of Denton against any and all such claims and demands.
Choice of Law and Venue
This agreement shall be governed by the law of the State of Texas and venue for its
construction and enforcement shall lie in the courts of Denton County, Texas.
The CONTRACTOR hereby agrees to commence work on or after the date established
for the start of work as set forth in written notice to commence work and complete all work
within the time stated in the Proposal, subject to such extensions of time as are provided by the
General and Special Conditions.
The OWNER agrees to pay the CONTRACTOR in current funds the price or prices
shown in the Proposal, which forms a part of this contract, such payments to be subject to the
General and Special Conditions of the Contract.
CA ~ 2
IN WITNESS WHEREOF, the parties of these presents have executed this agreement
in the year and day first above written.
~ity nf 13~ntnn
(SEAL)
CONTRACTOR
APPROVED AS TO FORM:
CITY ATTORNEY
MAILING ADDRESS
~'72- 5~Z- '7
PHONE NUMBER
FAX NUMBF~
PRINTED NAME
(SEAL)
CA - 3
BOND #22717804
PERFORMANCE BOND
STATE OF TEXAS
COUNTY OF DENTON §
KNOW ALL MEN BY THESE PRESENTS: That
whose address is
hereinafter called Principal, and Western Surety Compan~ ,
a corporation organized and existing under the laws of the State of, Texas ., and
fully authorized to transact business in the State of Texas, as Surety, are held and firrniy bound
unto the City of Denton, a municipal corporation organized and existing under the laws of the
State of Texas, hereinafte.~rfcalled Ow.p~gr, in the penal sum of Three 14undred Ten Th0!!~ancl
and 0/1 O0 DOLLARS~ '~ 10.aOO ~) plus ten percent of the stated penal sum as an additional
stun of money representing additional court expenses, attorneys' fees, and liquidated damages
arising out of or connected with the below identified Contract, in lawful money of the United
States, to be paid in Denton County, Texas, for the payment of which sum well and truly to be
made, we hereby bind ourselves, our heirs, executors, administrators, successors, and assigns,
jointly and severally, firmly by these presents. This Bond shall automatically be increased by
the amount of any Change Order or Supplemental Agreement which increases the Contract
price, but in no event shall a Change Order or Supplemental Agreement which reduces the
Contract price decrease the penal sum of this Bond.
THE OBLIGATION TO PAY SAME is conditioned as follows: Whereas, the
Principal entered into a certain Contract, identified by Ordinance Number ¢nr)a-n71 ,
with the City of Denton, the Owner, dated the ~rd day of 1Mart~h
A.D. 2t~n4 , a copy of which is hereto attached and made a part hereof, for
Itid ':I14':1 Annlml Prine Agreement fnr Chip .qenllng
NOW, THEREFORE, if the Principal shall well, truly and faithfully perform and fulfill
all of the undertakings, covenants, terms, conditions and agreements of said Contract in
accordance with the Plans, Specifications and Contract Documents during the original term
thereof and any extension thereof which may be granted by the Owner, with or without notice
to the Surety, and during the life of any guaranty or warranty required under this Contract, and
shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions
and agreements of any and all duly authorized modifications of said Contract that may
hereafter be made, notice of which modifications to the Surety being hereby waived; and, if the
Principal shall repair and/or replace all defects due to faulty materials and workmanship that
appear within a period of one (1) year from the date of final completion and final acceptance of
the Work by the Owner; and, if the Principal shall fully indemnify and save harmless the
Owner from all costs and damages which Owner may suffer by reason of failure to so perform
herein and shall fully reimburse and repay Owner all outlay and expense which the Owner may
incur in making good any default or deficiency, then this obligation shall be void; otherwise, it
shall remain in full force and effect.
PB - 1
PROVIDED FURTHER, that if any legal action be filed upon this Bond, exclusive
venue shall lie in Denton County, State of Texas.
AND PROVIDED FURTHER, that the said Surety, for value received, hereby
stipulates and agrees that no change, extension of time, alteration or addition to the terms of
the Contract, or to the Work to be performed thereunder, or to the Plans, Specifications,
Drawings, etc., accompanying the same, shall in anywise affect its obligation on this Bond,
and it does hereby waive notice of any such change, extension of tune, alteration or addition to
the terms of the Contract, or to the Work to be performed thereunder, or to the Plans,
Specifications, Drawings, etc.
This Bond is given pursuant to the provisions of Chapter 2253 of the Texas
Government Code, as amended, and any other applicable statutes of the State of Texas.
The undersigned and designated agent is hereby designated by the Surety herein as the
Resident Agent in Denton County to whom any requisite notices may be delivered and on
whom service of process may be had in matters arising out of such suretyship, as provided by
Article 7.19-1 of the Insurance Code, Vernon's Annotated Civil Statutes of the State of Texas.
IN WITNESS WHEREOF, this instrument is executed in 4 copies each one of
which shall be deemed an original, this the 23RDday of MARClt ', 2004~~'
ATTEST:
SECRETARY
PRINCIPAL
Joe Sulli Inc.
SURETY
Western Sur~a~y Company
ATTORNEY-IN-FACT
Davie Mac Costin
The Resident Agent of the Surety in Denton County, Texas for delivery of notice and service
of the process is:
NAME: Ramey and K±ngi Insurance Assoc±ates, Inc.
STREET ADDRESS: 510 N. 1-35 East, Denton, TX 76205-5867
If Resident Agent is not a
(NOTE: Date of Performance Bond must be date of Contract.
corporation, give a person's name.)
PB - 2
Westin Su = y Compan
POWBR OF A'I~ORNEY - CBR'I'IFIED COi~Z
~No. 22717804
~w ~ ~n ~ T~ ~ ~t ~ 8~
n
~-Lq,~a~ ~aVle Mac uOS~l~
Joe Sullivan, Inc~
City of Dento~
$310,000.00~
~lew ~ Wes~u ~uM~ ~p~ w~h ~=lwa ~ ~ ~ and
~raM n~ a( ~ ~ ~ the ~t, ~, ~ ~ ~, ~.
~ ~ro u th ~ ~ D~To m~ a~. ~ ~a~ ~ V~ ~t, ~, any ~nt ~e~, ~ ~e
~ ~p~. ~ ~M Mai b ~t ~ ~ t~ ~y ~ a~ ~. ~ un~kl.~., ~r& ~ ~ ~ othr.
~fip~na ~ ~ra~ ~ ~ ~ ~ ~ ~r and ~ ~m~ ~
2~%u~m~,~nh~e~ ~h~,~ut ~,u~s~h~ mi~t 9f~ ,:.June. 23 _.
In Wbm ~ W~ ~ ~~ b p~nm ~ ~ ~ ~ iM E~u~ V~ ~n~ ~phun T.
Pa ~' ~IM~o~ - ~3r~ ~ ~arcn
On~ 23rd~ March ~hthu~ 2004
tbs unde~_-~i ot~er of Western 8urat~ Compmny, a 8~k ~ ~ t~ 8~M ~u~ D~M, do h~ ~ ~t th
a~d Po~ ~ ~ ~ ~ ~ ~ and e~ a~ ~ ~. ~ ~, ~t ~ 7 ~a byhwa of t~ ~mpa~
~h in ~e Po~r ~A~ is ~w in ~.
~n~ ~ I ~ ~ m~ ~ ~ ~ ~Wa~ S~ ~p~ ~ 23rd ~oF
/ESTER~ SURETY COM~NY
BOND #22717804
PAYMENT BOND
STATE OF TEXAS
COUNTY OF DENTON §
KNOW ALL MEN BY THESE PRESENTS: That Ic~e ,qnlliva.~ ,
whose address is po Rox ~6gi MeliRns T~ 7qdqzt
hereinaRer called Principal, and Western Surety Comvanv '~~' ,
a corporation organized and existing under the laws of the State of Texas , and fully
authorized to transact business in the State of Texas, as Surety, are held and fmmly bound unto
the City of Denton, a municipal corporation organized and existing under the laws of the State
of Texas, hereinafter called Owner, and unto all persons, firms, and corporations who may
furnish materials for, or perform labor upon, the building or improvements hereinafter referred
to, in the penal sum of Thr~e l-hmdred T~n Thnn~nnd and
DOLLARS ($ sqln.noo~ ) in lawful money of the United
States, to be paid in Denton, County, Texas, for the payment of which sum well and truly to
be made, we hereby bind ourselves, our heirs, executors, administrators, successors, and
assigns, jointly and severally, firmly by these presents. This Bond shall automatically be
increased by the amount of any Change Order or Supplemental Agreement which increases the
Contract price, but in no event shall a Change Order or Supplemental Agreement which
reduces the Contract price decrease the penal sum of this Bond·
THE OBLIGATION TO PAY SAME is conditioned as follows: Whereas, the
Principal entered into a certain Contract, identified by Ordinance Number ?.0044~71
with the City of Denton, the Owner, dated the ?.qrd day of March A.D.
a copy of which is hereto attached and made a part hereof, for Rid qldq Annual Prla~
Agre~ern~nt for Chip Sealing~
NOW, THEREFORE, if the Principal shall well, truly and faithfully perform its duties
and make prompt payment to all persons, firms, subcontractors, corporations and claimants
supplying labor and/or material in the prosecution of the Work provided for in said Contract
and any and all duly authorized modifications of said Contract that may hereafter be made,
notice of which modifications to the Surety being hereby expressly waived, then this obligation
shall be void; otherwise it shall remain in full force and effect.
PROVIDED FURTHER, that if any legal action be filed on this Bond, exclusive venue
shall lie in Denton County, Texas.
AND PROVIDED FURTHER, that the said Surety, for value received, hereby
stipulates and agrees that no change, extension of time, alteration or addition to the terms of
the Contract, or to the Work to be performed thereunder, or to the Plans, Specifications,
Drawings, etc., accompanying the same, shall in anywise affect its obligation on this Bond,
and it does hereby waive notice of any such change, extension of time, alteration or addition to
the terms of the Contract, or to the Work to be performed thereunder, or to the Plans,
Specifications, Drawings, etc.
PB - 3
This Bond is given pursuant to the provisions of Chapter 2253 of the Texas
Government Code, as amended, and any other applicable statutes of the State of Texas.
The undersigned and designated agent is hereby designated by the Surety herein as the
Resident Agent in Denton County to whom any requisite notices may be delivered and on
whom service of process may be had in matters arising out of such suretyship,as provided by
Article 7.19-1 of the Insurance Code, Vemon's Annotated Civil Statutes of the State of Texas.
1N WITNESS WHEREOF, this instrument is executed in 4
which shall be deemed an original, this the 23RD day of MARCH
__ copies, each on..e~of
ATTEST:
SECRETARY
PRINCIPAL
Joe Sullivan, Inc.
ATTEST:
SURETY
Western Su~ Comp. gny ~
ATTb'"~E~-~N-FA~
Davie Mac Costin
The Resident Agent of the Surety in Denton County, Texas for delivery of notice and service
oftheprocessis:
NAME: Rame¥ and Kin~ Insurance Associates. I~C,
STREET ADDRESS: 510 N. 1-35 East, Denton, TX 76205-5867
(NOTE: Date of Payment Bond must be date of Contract. If Resident Agent is not a
corporation, give a person's name.)
PB - 4
VVes'0ern Surety Company
POWER OF ATTORN]gY . (~RTIIr~D COPY
./ B0nd No, 22717804
~ ~ ~n ~ ~ P~ ~t ~ 8~~ ~n du~ ~,~ and ~ un~r
~-~,,~fi~ba~ ~av~e mac ~osu~n~
~a ~ue and lawf~ul at:toa'nn ~(a)- J,G.(mct~ 'w{tTa ~ ~r
Joe Sullivan, Inc.~
~pah , to~
Obi; City of Den
~t $310,000.00~
~]tw ~Wenm~ ~u~ ~p~ w~h ~-i~- ~
~ n~ of ~ ~ ~ the ~t,
~er ~re ~ t~ ~ ~ D~ra m~ a~. ~ ~n% ~ V~ ~n~ ~, any ~nt ~e~, or ~e
2~u~ ~ ~n~ nh~ a~ ~ ~m, ~ut ~, unle~ ~ ~ m~t of June 23
In Witnens Wha~ Weeteru 8u~t~ ComMu~ceuaad these p~p~ ~ i~ ~ iW~u~ V~ ~n~ ~phen T.
0n~ 23rd ~ March .,~ 2004 . ~ ~, ~ ~ publ~, ~ t~
~ ~ C~ and ~ ~ ~nt ~ ~ ~ ~ ~ ~ d~ Me
My~ ~~,2~
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 may be 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 the project. 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 ~,.
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 Demon, its Officials, Agents,
Employees and volunteers.
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.
· All policies shall be endorsed to READ:
"SAID POLICY SI-L4LL NOT BE CANCELLED, NONRENEWED OR
MATERIALLY CHANGE WITHOUT 30 DAYS ADVANCED WRITTEN
NOTICE BEING GIVEN TO THE OWNER (CITY) EXCEPT WHEN THE
POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM IN
WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED".
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 insm'ance is not reinstated, City may, at its sole option,
terminate this agreement effective on the date of the lapse.
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:
IX] A. General Liability Insurance:
General Liability insurance with combined single limits of not less than
$1 ,nno,noo 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.
[x] Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with Combined
Single Limits (CSL) of not less than $qoo.nna 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.
Satisfaction of thc above requirement shall be in the form of a policy endorsement for:
· any auto, or
· all owned, hired and non-owned autos.
[ X] 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
efficials, agents, employees and volunteers for any work performed for the City by the Named
Insured. For building or construction projects, 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. L'units of not less than
each occurrence are required.
Professional Liability Insurance
Professional liability insurance with limits not less than per claim with respect to
negligent acts, errors or omissions in connection with professional services is required under
this Agreement.
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.
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.
ATTACHMENT 1
[]
Worker's Compensation Coverage for Building or Construction Projects for
Governmental Entities
A. Definitions:
Certificate of coverage ("certificate")-A copy of a certificate of insurance, a
certificate of authority to self-insure issued by the commission, or a coverage
agreement (TWCC-81, TWCC~82, TWCC-83, or TWCC-84), showing statutory
workers' compensation insurance coverage for the person's or entity's employees
providing services on a project, for the duration of the project.
Duration of the project - includes the time f~om the beginning of the work on the
project until the contractor's/person's work on the project has been completed and
accepted by the governmental entity.
Persons providing services on the project ("subcontractor" in §406.096) - includes
all persons or entities performing all or part of the services the contractor has
undertaken to perform on the project, regardless of whether that person contracted
directly with the contractor and regardless of whether that person has employees.
This includes, without limitation, independent contractors, subcontractors, leasing
companies, motor carriers, owner-operators, employees of any such entity, or
employees of any entity which furnishes persons to provide services on the project.
"Services" include, without limitation, providing, hauling, or delivering
equipment or materials, or providing labor, transportation, or other service related
to a project. "Services" does not include activities unrelated to the project, such as
food/beverage vendors, office supply deliveries, and delivery of portable toilets.
The contractor shall provide coverage, based on proper reporting of classification
codes and payroll amounts and filing of any overage agreements, which meets the
statutory requirements of Texas Labor Code, Section 401.011(44) for all
employees of the Contractor providing services on the project, for the duration of
the project.
C. The Contractor must provide a certificate of coverage to the governmental entity
prior to being awarded the contract.
If the coverage period shown on the contractor's current certificate of coverage
ends during the duration of the project, the contractor must, prior to the end of the
coverage period, file a new certificate of coverage with the governmental entity
showing that coverage has been extended.
go
Fo
The contractor shall obtain from each person providing services on a project, and
provide to the governmental entity:
(1)
a certificate of coverage, prior to that person beginning work on the project,
so the governmental entity will have on file certificates of coverage showing
coverage for all persons providing services on the project; and
(2)
no later than seven days after receipt by the contractor, a new certificate of
coverage showing extension of coverage, if the coverage period shown on the
current certificate of coverage ends during the duration of the project.
The contractor shall retain all required certificates of coverage for the duration of
the project and for one year thereafter.
The contractor shall notify the governmental entity in writing by certified mail or
personal delivery, within 10 days after the contractor knew or should have known,
of any change that materially affects the provision of coverage of any person
providing services on the project.
The contractor shall post on each project site a notice, in the text, form and manner
prescribed by the Texas Workers' Compensation Commission, informing all
persons providing services on the project that they are required to be covered, and
stating how a person may verify coverage and report lack of coverage.
The contractor shall contractually require each person with whom it contracts to
provide services on a project, to:
(1)
provide coverage, based on proper reporting of classification codes and
payroll mounts and filing of any coverage agreements, which meets the
statutory requirements of Texas Labor Code, Section 401.011(44) for all of
its employees providing services on the project, for the duration of the
project;
(2)
provide to the contractor, prior to that person beginning work on the project,
a certificate of coverage showing that coverage is being provided for all
employees of the person providing services on the project, for the duration of
the project;
(3)
provide the contractor, prior to the end of the coverage period, a new
certificate of coverage showing extension of coverage, if the coverage period
shown on the current certificate of coverage ends during the duration of the
project;
(4) obtain from each other person with whom it contracts, and provide to the
contractor:
(a) a certificate of coverage, prior to the other person beginning work on
the project; and
Co)
a new certificate of coverage showing extension of coverage, prior to
the end of the coverage period, if the coverage period shown on the
current certificate of coverage ends during the duration of the project;
(5) retain all required certificates of coverage on file for the duration of the
project and for one year thereafter;
(6)
notify the governmental entity in writing by certified mail or personal
delivery, within 10 days after the person knew or should have known, of any
change that materially affects the provision of coverage of any person
providing services on the project; and
(7)
contractually require each person with whom it contracts, to perform as
required by paragraphs (1) - (7), with the certificates of coverage to be
provided to the person for whom they are providing services.
By signing this contract or providing or causing to be provided a certificate of
coverage, the contractor is representing to the governmental entity that all
employees of the contractor who will provide services on the project will be
covered by workers' compensation coverage for the duration of the project, that the
coverage will be based on proper reporting of classification codes and payroll
amounts, and that all coverage agreements will be filed with the appropriate
insurance carrier or, in the case of a self-insured, with the commission's Division
of Self-Insurance Regulation. Providing false or misleading information may
subject the contractor to administrative penalties, criminal penalties, civil penalties,
or other civil actions.
The contractor's failure to comply with any of these provisions is a breach of
contract by the contractor which entitles the governmental entity to declare the
contract void if the contractor does not remedy the breach within ten days after
receipt of notice of breach from the governmental entity.
04/30/2884 88:88 9725626388 ... JOE SULLIVAN INC
CERTIFICATE OF LIABILITy INSURANCE
PROOU¢~R (903)450-4001 FAX
$ Znsu~ance
Box 8~97
Greenville, 'TX. 75404-8397
Kele~gh G.een
~NSUR~O ~oe SUl]ivan, Inc./
P. O. BOX 368
Melissa, TX 75454
PAGE 82
04/14/2004
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY ANO CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER, THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW,
4SURER,R AFFORDING COVERAGE
INSU~R~ B~tuminous Casualty Corp
~Nav.e.e. Ohlo Casualty Xnsurance CO.
INSV~C 8'itumino~s Xns#rante Com~an'jes "--
IN~URER O:
NAIC E
_C_OVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO TH~ INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING,
RNY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CEKTIFICATE MAY BE ISSUED OR
MAy PERTA/N, THE INSURANCE AFFORDED BY THE P~LICIE$ O~$CRIBED HEREIN I~; SUSJECT TO ALL THE TERMS, EXCUJ$1ON$ AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN ~AY HAVE BEEN REDUCED BY PAiD CLAIMS.
Oe~KA~[I~e~U~/ CLP317968~ 0!/01/Z004 O1/01/Z00S' SAC"OCCVR~eNC[ ~ l,O00,O~
OAMR~ TO REN~O $ 100,000
A ~ PER'HAL & ADV iNJURY ~ l, 000,000
GEN'L AGGR~GAT5 LtM~ AP~TE5 PER: ~R~D~CT$ - COMPIOP AGG S Z ~ 000 m 00~
A ~
~CES~MO.~C~ClAelLI~ E100553156b13 01/01/2004 OX~OX~ZOOS ~aCH~CU~Ce___ .~. Z~OJO..OOC
-~ ~ccu~ ~ ~,~s M~O~ ~oo~ ~ Z,000, OOC
B s
the ~., ,ts o¢~c,a],, Agents, E~oyee* ,nd~lu.teees are n~d~,t,--.l Insured o.
~11 ~licles excluding the Norker's ~ensation ~lic~The lnsured's insurance is priory to any other
lSUeance available to the additional insured with eespect to clalms covered under the ~llcy and this
insurance applies sepeeatley to each inSUe~ against whqm clalm is ~de or suit {s brought,~ /
inclusion of ~ee than one insured shall not operate to ~ncrease the insurer's limit of liability.
C~!~TIFICATE HOLDER
CITY OF DENTON/
901 B. Texas St.
Denton, TX 76201
ACOR02$ (20o1/o8) FAX: cg?z) S6Z-6~oo
~ANCELLATION
Richard Duiker-l/GREEN
QACORD COI~PORATION 1988