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HomeMy WebLinkAboutResolution - 2006-R0323 - Contract - Wachovia Insurance Services Inc. - Insurance Broker And Consulting - 06_26_2006Resolution No. 2006—R03 June 26, 2006 Item No. 5.17 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Contract for property casualty insurance broker and consulting services, by and between the City of Lubbock and Wachovia Insurance Services, Inc., and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 26th day of June , 2006. DAVID A. M LLER, MAYOR ATTEST: Reb&ca Garza, City Secretary APPROVED AS TO CONTE Scott Snider, Executive Director APPROVED AS TO FORM: Vandiver,-A-Ti-ney o cip/res/W achovialnsRes July 12, 2006 Client Service Agreement Resolution No. 2006—RO323 P&C Edition 02 17 06 I This Client Service Agreement ("Agreement") is executed by Wachovia Insurance Services, Inc. ("Wachovia"), and City of Lubbock ("Client") to record their following agreement: 1. Purpose. The purpose of this Agreement is to establish an arrangement pursuant to which Client will compensate Wachovia in connection with its rendering of services, as described in the attached Exhibit A. `u 2 Compensation for Services. As compensation for the services rendered by Wachovia pursuant to this agreement, Client shall pay Wachovia a fee of $75,000 annually, guaranteed for up to three terms, for services described in Exhibit A to be paid in full on inception. The fees being paid by Client are not part of the premium charged by the insurance company (ies) and these fees will be charged only if the Client consents in writing. It is understood that Wachovia Insurance Services, Inc. will not receive commissions / compensation from the insurance carriers for the policies that it places for Client as described in Exhibit B. It is understood that if Wachovia Insurance Services cannot place a policy described in Exhibit B on a non -commissions or fee basis, or if Wachovia Insurance Services is offered any other form of remuneration for placement of a policy, Wachovia Insurance Services will disclose the amount of commission, fee or remuneration to the City of Lubbock. The fee paid to Wachovia shall not include any surplus lines, sales, use, excise or other taxes or related fees. All related fees and taxes except those based on the income of Wachovia are the responsibility of the Client and shall be separately billed. The fee paid to Wachovia shall not include fees charged by a wholesaler, intermediary or other parties used by Wachovia in the placement and service of coverage or programs for Client. All fees charged to Wachovia by a wholesaler, intermediary, or other party are the responsibility of the Client and shall be separately billed. In the event there is a significant change in the Client's operations (e.g., acquisition or merger), which affects the nature or scope of its insurance program, Wachovia and the Client both agree to renegotiate Wachovia's compensation in good faith as appropriate. 3. Term. This Agreement is for a term beginning on July 24, 2oo6 and ending on July 24, 2007 with an option to renew for two additional one year periods. The Agreement may be extended by mutual agreement of both parties or terminated by either party by providing sixty days written notice. In the event this agreement is terminated before the expiration of its term, other than as a result of a breach by Wachovia, we will be deemed to have earned a minimum of 6o% of the annual compensation for that year.. The unearned portion of the fees received by Wachovia, based upon Exhibit A, shall be returned to the Client. The Client shall pay i00% of the fee upon inception of this Agreement. 4. Exclusive Understanding. This Agreement records the final, complete, and exclusive understanding between the parties with respect to Wachovia's rendition of services to Client and supersedes any prior or contemporaneous agreement, representation, or understanding, oral or written, by either of them, regarding that matter. 5. Choice of Law and Forum Selection. The validity, construction, enforcement, and interpretation of this Agreement are governed by the laws of the State of Texas, excluding the laws of that state relating to the resolution of conflicts with laws of other jurisdictions. WACHOVIAINSURANCE SERVICES I Client Service Agreement P&c edition 02 17 06 s Wachov' Insurance Services, Inc. 00 By: Name: Robert S. Bookhammer III Title: Vice President CITY OF LUBBOCK David A. Mill , Mayor ATTEST: Re Reca Garza, City Secretary APPROVED AS TO CONTEN lM Scott Snider, Executive Director 0 APPROVED AS TO FORM: John Kni g Assistant City Attorney f WACHOVIAINS13PANCE SERVICES Client Service Agreement P&C Edition 02 17 06 Exhibit A As outlined in the RFP #o6-034-MA and RFP Response (not including the Executive Summary) WACHOVIA.INSURANCE SERVICES if Client Service Agreement W Edition 02 17 06 E;3 Exhibit B Insurance Lines Approved for Placement under this Agreement. Any insurance policy that is not listed below and has been purchased through Wachovia Insurance Services, Inc. is not covered by this agreement. Policy / Lines Property Property — John T Montford Dam Boiler & Machinery Inland Marine Inland Marine — Radio Towers (Not currently purchased/future consideration) Crime General Liability TULIP (Not currently purchased/future consideration) Environmental Liability (Not currently purchased/future consideration) Directors & Officers Liability (Not currently purchased/future consideration) Excess Liability Law Enforcement Public Entity Management Employment Practices Automobile Liability Airport Owners Liability Non -Owned Aircraft Liability Pipeline Liability Notary Bonds Public Official Bonds Workers Compensation (Not currently purchased/future consideration) Ll" E WACHOVIAINST_TPANCE SERVICES RFP #06-034-MA, Property/Casualty Insurance Broker/Consultant SUBMIT TO: CITY OF LUBBOCKPurchasing CITY OF LUBBOCK, TEXAS & Contract Management ift 1625 131h Street, Rm 204 Lubbock, Tx 79401-3830 AN EQUAL REQUEST FOR CONTACT PERSON: OPPORTUNITY PROPOSAL Marta Alvarez EMPLOYER #06-034-MA TEL: 806.775.2167 FAX: 806.775.2164 http://purchasing.ci.lubbock.tx.us TITLE: SUBMITTAL DEADLINE: Property/Casualty Insurance Broker/Consultant May 9, 2006, 2:00 CST PRE PROPOSAL DATE, TIME AND LOCATION: Any proposals received after the time and date listed above, regardless May 1, 2006 @ 10.00 AM, Conference Room 204 of the mode of delivery, shall be returned unopened RESPONDENT NAME: IF RETURNING AS A "NO RESPONSE", PLEASE STATE REASON. MAILING ADDRESS: CITY — STATE — ZIP: THE CITY OF LUBBOCK RESERVES THE RIGHT TO ACCEPT OR REJECT ANY AND ALL PROPOSALS IN WHOLE OR IN PART AND WAIVE ANY INFORMALITY IN THE COMPETITIVE PROPOSAL PROCESS. FURTHER, TELEPHONE NO: THE CITY RESERVES THE RIGHT TO ENTER INTO ANY CONTRACT DEEMED TO BE IN THE BEST INTEREST OF THE CITY. IT IS THE INTENT AND PURPOSE OF THE CITY OF LUBBOCK THAT THIS FAX NO: REQUEST PERMITS COMPETITIVE PROPOSALS. IT IS THE OFFEROR'S RESPONSIBILITY TO ADVISE THE CITY OF LUBBOCK PURCHASING E-MAIL: MANAGER IF ANY LANGUAGE, REQUIREMENTS, ETC., OR ANY COMBINATIONS THEREOF, INADVERTENTLY RESTRICTS OR LIMITS FEDERAL TAX ID NO. OR SOCIAL SECURITY NO. THE REQUIREMENTS STATED IN THIS RFP TO A SINGLE SOURCE. SUCH NOTIFICATION MUST BE SUBMITTED IN WRITING AND MUST BE RECEIVED BY THE PURCHASING MANAGER NO LATER THAN FIVE (5) BUSINESS DAYS PRIOR TO THE ABOVE SUBMITTAL DEADLINE. THE OFFEROR HEREBY ACKNOWLEDGES RECEIPT OF AND AGREES ITS BID IS BASED ON ANY ADDENDA POSTED ON RFPDEPOT.COM The City of Lubbock Charter states that no officer or employee of the City can benefit from any contract, job, work or service for the municipality or be interested in the sale to the City of any supplies, equipment, material or articles purchased. Will any officer or employee of the City, or member of their immediate family, benefit from the award of this proposal to the above firm?_ YES— NO IN COMPLIANCE WITH THIS SOLICITATION, THE UNDERSIGNED OFFEROR HAVING EXAMINED THE REQUEST FOR PROPOSAL, AND BEING FAMILIAR WITH THE CONDITIONS TO BE MET, HEREBY SUBMITS THE FOLLOWING. AN INDIVIDUAL AUTHORIZED TO BIND THE COMPANY MUST SIGN THE FOLLOWING SECTION. FAILURE TO EXECUTE THIS PORTION MAY RESULT IN PROPOSAL REJECTION. By my signature I certify that this offer is made without prior understanding, agreement, or connection with any corporation, firm, business entity, or person submitting an offer for the same materials, supplies, equipment, or service(s), and is in all respects fair and without collusion or fraud. I further agree that if the offer is accepted, the offeror will convey, sell, assign, or transfer to the City of Lubbock all right, title, and interest in and to all causes of action it may now or hereafter acquire under the Anti-trust laws of the United States and the State of Texas for price fixing relating to the particular commodity(s) or service (s) purchased or acquired by the City of Lubbock. At the City's discretion, such assignment shall be made and become effective at the time the City tenders final payment to the vendor. Authorized Signature Printrrype Name 06-034-MARFPSVC.doc Title Date THIS FORM MUST BE COMPLETED AND RETURNED WITH YOUR RESPONSE. 1 RFP #06-034-MA, Property/Casualty Insurance Bmker/Consultant g Property/Casualty Insurance Broker/Consultant CITY OF LUBBOCK, TEXAS r r RFP #06-034-MA The City of Lubbock appreciates your time and effort in preparing your proposal. All offerors should familiarize themselves with the following INSTRUCTIONS TO OFFERORS and GENERAL REQUIREMENTS: I. INSTRUCTIONS TO OFFERORS PROPOSAL DELIVERY, TIME & DATE 1.1 The City of Lubbock will receive written and sealed competitive proposals for Property/Casualty Insurance Broker/Consultant until 2:00 p.m. CST, May 9, 2006, if date/time stamped on or before 2:00 p.m. at the office listed below. Any proposal received after the date and hour specified will be rejected and returned unopened to the offeror. Each proposal and supporting documentation must be in a sealed envelope or container plainly labeled in the lower left-hand corner: "RFP #06-034-MA, Property/Casualty Insurance Broker/Consultant" and the closing date and time. Offerors must also include their company name an'd address on the outside of the envelope or container. Proposals must be addressed to: Marta Alvarez, Interim Purchasing Manager City of Lubbock 1625 13th Street, Room 204' Lubbock, Texas 7§461 F] 1 1.2 Offerors are responsible for making certain proposals and proposed contracts are delivered to the Purchasing Department. Mailing of a proposal does not ensure that the proposal will be delivered on time or delivered at all. If offeror does not hand deliver proposal, we suggest that he/she use some sort of delivery service that provides a receipt. The City of Lubbock assumes no responsibility for errant F delivery of proposals, including those relegated to a courier agent who fails to deliver in accordance with the time and receiving point specified. 1.3 Proposals will be accepted in person, by United States Mail, by United Parcel Service, or by private courier service. No proposals will be accepted by oral communication, telephone, electronic mail, telegraphic transmission, or telefacsimile transmission. THE CITY WILL NOT ACCEPT FAX PROPOSALS. 1.4 Proposals may be withdrawn prior to the above scheduled time set for closing. Alteration made before RFP closing must be initiated by offeror guaranteeing authenticity. x, 1.5 The City of Lubbock reserves the right to postpone the date and time for accepting proposals through an addendum. 2 PRE -PROPOSAL MEETING 2.1 For the purpose of familiarizing offerors with the requirements, answering questions, and issuing addenda as needed for the clarification of the Request for Proposal (RFP) documents, apre-proposal meeting will be held at 10:00 AM, May 1. 2006 in Conference Room 204, Lubbock, Texas. All persons attending the conference will be asked to identify themselves and the prospective offeror they represent. 2.2 It is the offeror's responsibility to attend the pre -proposal meeting though the meeting is not mandatory. The City will not be responsible for providing information discussed at the pre -proposal meeting to offerors who do not attend the pre -proposal meeting. 2.3 The City of Lubbock does not discriminate against person with disabilities. City of Lubbock pre - proposal meetings are available to all persons regardless of disability. If you would like information made available in a more accessible format or if you desire assistance, please contact the City of Lubbock ADA Coordinator, 1625 13th Street, (806)775-2018 at least forty-eight (48) hours in advance of the conference. 06-034-MARFPSVC.d0c 2 r F�! RFP #06-034-MA, Property/Cesuafty Insurance Broker/Consuhant 3 CLARIFICATION OF REQUIREMENTS 3.1 It is the intent and purpose of the City of Lubbock that this request permits competitive proposals. It is the offeror's responsibility to advise the City of Lubbock Purchasing Manager if any language, requirements, etc., or any combinations thereof, inadvertently restricts or limits the requirements stated in this RFP to a single source. Such notification must be submitted in writing and must be received by the City of Lubbock Purchasing Office no later than five (5) business days prior to the proposal closing date. Fi A review of such notifications will be made. 3.2 AT,t REQUESTS FOR ADD] IC�1 ALINF01t1 ATI"0OR CLARIFICATION CONCERNING T$IS REQUEST FOR PltOpt?AL (RF)) MiJST B) SUBIGIEITTI';D IN WRITING NO LATER Fjj THAN fl,_- (sJ BUS1(1�I SSDAXS PRiO$ TO THE,PROI'OSAf, C OS><NG' DATE AND ADDRESSED TO: Marta Alvarez, Interim Purchasing Manager City of Lubbock 1625 13" Street Lubbock, Texas 79401 Fax: (806) 775-2164 Email: MAlvarez@mail.ci.lubbock.tx.us RFPDepot: http://www.RFPdepot.com ADDENDA & MODIFICATIONS 4.1 Any changes, additions, or clarifications to the RFP are made by ADDENDA information available over the Internet at bU://www.RFPdgpot.com. We strongly suggest that you check for any addenda a minimum of forty- 1ghi hours in advance of the response deadline. BUSINESSES WITHOUT INTERNET ACCESS may use computers available at most public libraries. 4.2 Any offeror in doubt as to the true meaning of any part of the RFP or other documents may request an interpretation thereof from the Purchasing Department. At the request of the offeror, or in the event the Purchasing Department deems the interpretation to be substantive, the interpretation will be made by written addenda issued by the Purchasing Department. Such addenda issued by the Purchasing Department will be available over the Internet at http://www.RFPdepot.com and will become part of the proposal package having the same binding effect as provisions of the original RFP. No verbal explanations or interpretations will be binding. In order to have a request for interpretation considered, the request must be submitted in writing and must be received by the City of Lubbock Purchasing Department no later than five (5) days prior to the proposal closing date. 4.3 All addenda, amendments, and interpretations of this solicitation shall be in writing. Any amendment or interpretation that is not in writing shall not legally bind the City of Lubbock. Only information supplied by the City in writing or in this RFP should be used in preparing proposal responses. All contacts that an offeror may have had before or after receipt of this RFP with any individuals, employees, or representatives of the City and any information that may have been read in any news media or seen or heard in any communication facility regarding this RFP should be disregarded in preparing responses. 4.4 The City does not assume responsibility for the receipt of any addendum sent to offerors. 5 EXAMINATION OF DOCUMENTS AND REQUIREMENTS L 5.1 Each offeror shall carefully examine all RFP documents and thoroughly familiarize itself with all requirements prior to submitting a proposal to ensure that the proposal meets the intent of this RFP. 5.2 Before submitting a proposal, each offeror shall be responsible for making all investigations and examinations that are necessary to ascertain conditions and requirements affecting the requirements of this RFP. Failure to make such investigations and examinations shall not relieve the offeror from obligation to comply, in every detail, with all provisions and requirements of the Request for Proposal. 6 PROPOSAL COPIES 6.1 OFFEROR'S MUST SUBMIT THE ORIGINAL AND THREE COPIES OF THE SEALED f PROPOSAL TO THE PURCHASING DEPARTMENT PRIOR TO RESPONSE DUE DATE/TIME. 06-034-MARFPSVC.doc 3 RFP #06-034-MA, Property/Casualty Insurance Broker/Consultant FAILURE TO SUBMIT THE ADDITIONAL COPIES MAY RESULT IN THE PROPOSAL BEING DECLARED UNRESPONSIVE. The original must be clearly marked "ORIGINAL" and the copies must be clearly marked "COPY". 6.2 All proposals, responses, inquiries, or correspondence relating to or in reference to this RFP, and all electronic media, reports, charts, and other documentation submitted by offerors shall become the property of the City of Lubbock when received. PROPOSAL PREPARATION COSTS 7.1 Issuance of this RFP does not commit the City of Lubbock, in any way, to pay any costs incurred in the preparation and submission of a proposal. 7.2 The issuance of this RFP does not obligate the City of Lubbock to enter into contract for any services or equipment. 7.3 All costs related to the preparation and submission of a proposal shall be paid by the proposer. 8 TRADE SECRETS, CONFIDENTIAL INFORMATION AND THE TEXAS PUBLIC INFORMATION ACT 8.1 If you consider any portion of your proposal to be privileged or confidential by statute or judicial decision, including trade secrets and commercial or financial information, clearly identify those portions. 8.2 Proposals will be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for inspection. 8.3 The City of Lubbock will honor your notations of trade secrets and confidential information and decline to release such information initially, but'please note that the final determination of whether a particular portion of your proposal is in fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552.305 of the Government Code. In the event that it is determined by opinion or order of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged and confidential under Section 552.110 of the Government Code and Section 252.049 of the Local Government Code, then such information will be made available to the requester. 8.4 Marking your entire proposal CONFIDENTIAL/PROPRIETARY is not in conformance with the Texas Open Records Act. 9 DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS 9.1 The City of Lubbock hereby notifies all offerors that in regard to any contract entered into pursuant to this RFP, Disadvantaged Business Enterprises (DBE's) will be afforded equal opportunities to submit proposals and will not be discriminated against on the grounds of race, color, sex, disability, or national origin in consideration of an award. 9.2 A DBE is defined as a small business concern which is at least 51% owned and controlled by one or E" more socially and economically disadvantaged individuals, or in the case of any publicly owned business, at least 51% of the stock of which is owned by one ore more socially and economically disadvantaged individuals. Socially and economically disadvantaged include Women, Black Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, and Asian -Indian Americans. u 10 DELETED �j 11 CONFLICT OF INTEREST Y'f 11.1 The Offeror shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official or agent of the City of Lubbock. 06-034-MARFPSVC.doc 4 L RFP 906-034-MA, Property/Casualty Insurance Broker/Consultant ' 11.2 By signing their proposal, the offeror certifies and represents to the City the offeror has not offered, conferred or agreed to confer any pecuniary benefit or other thing of value for the receipt of special treatment, advantage, information, recipient's decision, opinion, recommendation, vote or any other exercise of discretion concerning this RFP. 12 ANTI -LOBBYING PROVISION 12.1 DURING THE PERIOD BETWEEN PROPOSAL SUBMISSION DATE AND THE CONTRACT AWARD, PROPOSERS, INCLUDING THEIR AGENTS AND REPRESENTATIVES, SHALL NOT DIRECTLY DISCUSS OR PROMOTE THEIR PROPOSAL WITH ANY MEMBER OF THE LUBBOCK CITY COUNCIL OR CITY STAFF EXCEPT IN THE COURSE OF CITY -SPONSORED INQUIRIES, BRIEFINGS, INTERVIEWS, OR PRESENTATIONS, UNLESS REQUESTED BY THE CITY. (? 12.2 This provision is not meant to preclude offerors from discussing other matters with City Council i members or City staff. This policy is intended to create a level playing field for all potential offerors, assure that contract decisions are made in public, and to protect the integrity of the RFP process. Violation of this provision may result in rejection of the offeror's proposal. 13 AUTHORIZATION TO BIND SUBMITTER OF PROPOSAL Proposals must show vendor name and address of offeror. The original proposal must be manually signed by an officer of the company having the authority to bind the submitter to its provisions. Person signing proposal must show title or AUTHORITY TO BIND THEIR FIRM IN A CONTRACT. Failure to manually sign proposal will disqualify it. hl 14 ABOUT THIS DOCUMENT This document is a Request for Proposal. It differs from an Invitation to Bid in that the City of Lubbock is seeking a solution, as described in the following General Requirements section, not a bid/quotation meeting firm specifications for the lowest price. As such, the lowest price proposed will not guarantee an award recommendation. Sealed proposals will be evaluated based upon criteria formulated around the most important features of a product or service, of which quality, testing, references, availability or capability, may be overriding factors, and price may not be determinative in the issuance of a contract or award. The proposal evaluation criteria should be viewed as standards that measure how well an offeror's approach meets the desired requirements and needs of the City of Lubbock. Those criteria that will be used and considered in evaluation for award are set forth in this document. The City will thoroughly review all proposals received. The City will also utilize its best judgment when determining whether to schedule a pre -proposal conference (before proposals are accepted), or meetings with offerors (after receipt of all proposals). A Purchase Order/Contract will be awarded to a qualified offeror submitting the best proposal. The City reserves the right to select, and subsequently recommend for an award, the proposed service which best meets its required needs, quality levels, and budget constraints. 15 EVALUATION PROCESS 15.1 All proposals will be evaluated by an evaluation committee and may include senior management representatives, a financial officer, and/or an independent consultant. 15.2 Respondents to this RFP may be required to submit additional information that the City may deem necessary to further evaluate the offeror's qualifications. 15.3 The committee will evaluate and numerically score each proposal in accordance with the evaluation criteria included in the Request for Proposal. 15.4 The committee will arrive at a short list of the top respondents and these short-listed respondents may be scheduled for a structured oral presentation and interview. Such presentations will be at no cost to the City of Lubbock. At the end of the oral presentation and interview, the evaluation of the short-listed respondents will be completed. The oral interview may be recorded and/or videotaped. 16 SELECTION 16.1 Selection shall be based on the responsible offeror whose proposal is determined to be the most advantageous to the City of Lubbock considering the relative importance of evaluation factors included in this RFP. Orr034-MARFPSMdoc 5 ri RFP 06.034-MA, Property/Casualty Insurance Broker/Consultant ,: 16.2 NO INDIVIDUAL OF ANY USING DEPARTMENT HAS THE AUTHORITY TO LEGALLY AND/OR FINANCIALLY COMMIT THE CITY TO ANY CONTRACT, AGREEMENT OR PURCHASE ORDER FOR GOODS OR SERVICES, UNLESS SPECIFICALLY SANCTIONED BY P��Jj THE REQUIREMENTS OF THIS REQUEST FOR PROPOSAL. 17 EQUAL EMPLOYMENT OPPORTUNITY Offeror agrees that it will not discriminate in hiring, promotion, treatment, or other terms and conditions of employment based on race, sex, national origin, age, disability, or in any way violative of Title VII of 1964 Civil Rights Act and amendments, except as permitted by said laws. t 18 NONAPPROPRIATION All funds for payment by the City under this contract are subject to the availability of an annual appropriation for this purpose by the City. In the event of non -appropriation of funds by the City Council of the City of Lubbock for the goods or services provided under the contract, the City will terminate the contract, without termination ` charge or other liability, on the last day of the then -current fiscal year or when the appropriation made for the then -current year for the goods or services covered by this contract is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this contract, cancellation shall be accepted by the Seller on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this contract beyond the date of termination. M 19 PROTEST 19.1 All protests regarding the RFP process must be submitted in writing to the City Purchasing Manager within five (5) business days following the opening of proposals. This includes all protests relating to advertising of notices, deadlines, proposal opening, and all other related procedures under the Local Government Code, as well as any protest relating to alleged improprieties with the RFP process. This limitation does not include protests relating to staff recommendations as to award of contract. Protests relating to staff recommendations may be directed to the City Manager. All staff recommendations will be made available for public review prior to consideration by the City Council as allowed by law. 19.2FAILURE TO PROTEST WITHIN THE TIME ALLOTTED SHALL CONSTITUTE A WAIVER OF ANY PROTEST. The City of Lubbock is aware of the time and effort you expend in preparing and submitting proposals to the City. Please let us know of any requirement causing you difficulty in responding to our Request for Proposal. We want to facilitate your participation so that all IJ responsible firms can compete for the City's business. Awards should be made approximately two to six weeks after the opening date. If you have any questions, please contact the City of Lubbock Purchasing Manager at (806) 775-2165. 06-034-MARFPSVC.doe (.1 RFP #06-034-MA, Property/Casualty Insurance Broker/Consultant piSUSPENSION AND DEBARMENT CERTIFICATION FiFederal Law (A-102 Common Rule and OMB Circular A-110) prohibits non -Federal entities from contracting with or making sub -awards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. Covered transactions include procurement contracts for goods or services equal to or in excess of $25,000 and all non -procurement transactions F", (e.g., sub -awards to sub -recipients). � Contractors receiving individual awards of $25,006 or more and all sub -recipients must certify that their organization and its principals are not suspended or debarred by a Federal agency. Before an award of $25,000 or more can be made to your firm, you must certify that your organization Ell and its principals are not suspended or debarred by a Federal agency. I, the undersigned agent for the firm named below, certify that neither this firm nor its principals are suspended or debarred by a Federal agency. COMPANY NAME: Signature of Company Official: Date Signed: Printed name of company official signing above: 06-034-MARFPSVC.doc 7 RFP #06-034-MA, Property/Casually Insurance Broker/Consultant F" A. INTRODUCTION/BACKGROUND The City of Lubbock, Texas, (hereafter referred to as "City") is requesting proposals from qualified providers of professional insurance broker/consultant services to assist in the management of the City's various insured and self -funded programs. Such services would include, but not be limited to the review, analysis, recommendation, and placement of all insured and self -funded programs in the areas of Property, Liability, Auto, Workers' Compensation, Boiler & Machinery, as well as processing policy change endorsements, policy review and audit and monitoring claims. The population of Lubbock, Texas, is approximately 210,000, with 1800 FT employees and 150 PT and seasonal employees. The City conducts municipal functions including electric production and distribution, water treatment and distribution, wastewater collection, solid waste collection, fire and police protection, emergency dispatch, storm water planning, street construction and repair, codes and zoning, parks and recreation, civic center and auditorium/coliseum and other cultural arts services. The City is committed to a strong, proactive safety, loss prevention and claim administration program directed by a Risk Management Coordinator and three Loss Prevention Specialists. The Risk Management Coordinator directs the City's insurance, self-insurance and loss prevention programs. The Risk Management Coordinator reports directly to the Managing Director of Human Resources. The City is currently self -insured for liability coverage including police, auto and general liability with a $500,000 self -insured retention (SIR), is fully insured for airport liability and is a member of a municipal pool with a guaranteed cost program for Workers' Compensation. Excluding health and life, the City's current insurance policy budget is approximately $ 3.5 million. A list of our current coverage is included with this RFP. Additionally, the City has a.current balance in the self-insurance fund of $2,332,854.00; with existing cash asset balance of $8,487,825.00. B. PROPOSAL RULES l . Evaluation of proposals will consider the following: Broker Experience (30%) - The breadth of knowledge of municipal and/or large commercial accounts. Service (30%) - The ability to provide coverage and/or services in an expeditious and professional fashion as verified by previous or current clients and the availability of qualified personnel within the offeror's organization such as professional staff and service personnel. Financial Capacity (10%) - The capacity to provide coverage and services in the future with minimum risk to the client. Such measurements as Best and/or submitted certified financial statements may be used to measure this criteria. Price (30%) - The cost of the service requested and proposed. The City of Lubbock reserves the right to reject any or all proposals, reject any particular item on a proposal, and to waive immaterial formalities. The contract, or only a portion thereof, may be awarded to the responsible proposer whose proposal is most advantageous to the City, price and other factors considered. 2. Property/Casualty Insurance Broker/Consultant Ouotation. If the proposal is contingent upon the entity providing additional information, inspections, completed applications, or is subject to any other conditions, such requirements must be stated clearly in the proposal. 3. Duration of Proposal. We request all proposals remain valid without material change for at least 60 days after the due date noted in "l ." above. 06-034-MARFPSVC.doc RFP AS-034-MA, Property/casualty insurance Broker/Consuhant 4. Non -Compliance with Signed Proposal. It is understood and agreed, in the event the broker/consultant cannot meet the terms and conditions agreed to in a signed proposal �.3 accepted by the entity, then the entity shall at its sole option have the right to cancel the contract on a pro-rata basis. 5. Contract Term. The contract period shall commence on or about July 24, 2003 and shall continue for a term of one year. After completion of the initial Contract term, the Contract may be renewed annually for two additional years. 6. Oral Presentation. The City may require proposers to give oral presentations in support of their proposals or to exhibit or otherwise demonstrate the information contained therein. Any and all expenses involved in making any presentation(s) will be at the expense of the proposer. 7. Negotiations. The City may award a contract on the basis of initial offers received, without discussions. Therefore, each initial offer should contain the proposer's best terms from a cost or price and technical standpoint. 8. Rules, Regulations and Licensing Reguirement. The proposer shall comply with all laws, ordinances and regulations applicable to the services contemplated herein, including those applicable to conflict of interest and collusion. Proposers are presumed to be familiar with all Federal, State and local laws, ordinances, codes and regulations that may in any way affect the services offered. Should the Proposer not be fully licensed and certified by the State of Texas, its proposal shall be rejected. Review of Proposals. Each proposal will be reviewed to determine if the proposal is responsive to the submission requirements outlined in the RFP. A responsive proposal is one which follows the requirements of the RFP, includes all required documentation, is submitted in the format outlined in the RFP, is of timely submission,, and has the appropriate signatures as required on each document. Failure to comply with these requirements may deem your proposal non -responsive. The City reserves the right to use more than one Broker in the placement of coverage. SCOPE OF SERVICES 1.INTENT It is the intent of the City to obtain proposals for professional property/casualty insurance broker/consultant services to assist in the management of the City's various insured and self -funded programs. Such services would include, but not be limited to the review, analysis, recommendation, and placement of all insured and self -funded programs in the areas of Property, Auto, General Liability, Police Liability, Airport Liability, Workers' Compensation, Boiler & Machinery, as well as processing policy change endorsements, policy review and audit. The City may determine that it is in its best interest to have the broker/consultant prepare Requests for Proposals for its insurance needs. It is also the City's intent that the successful broker shall put all lines of insurance in place, as listed on Attachment #1, to begin coverage on October 1, 2006, or at its renewal after that date. All insurance policies obtained through the successful broker must be net of commission. L Services in advising and coordinating with the City's Managing Director of Human Resources/Risk Management Coordinator would include, but are not limited to the following: 06-034-MARFPSVC.doe 0 RFP #06-034-MA, Property/Casuaky Insurance Broker/Consultant 1. 2. 3. 4. MEETINGS a) Bi-monthly meetings to discuss and review: analysis of coverage, loss control, benefit design, exposure changes, claims, and general administrative matters with Human Resources/Risk Management staff. b) Annual property loss control meetings with Human Resources/Risk Management staff. 5. COORDINATE a) Facilitate insurance company interface and coordination in the following areas: • Renewal information format and market presentation • Marketing of existing coverage • Possible preparation of requests for proposals • Negotiate insurance contracts to assure best possible pricing. b) Any special projects requested by clients. c) Develop coverage options on coverage not currently purchased by the City for City's review. d) Analyze City's exposure to loss and review adequacies of coverage contained in existing policies and make appropriate risk recommendations. e) Assist the City in reviewing all insurance policies, contracts, leases, and bonds as necessary. 0 Provide service for day-to-day contact and advise on insurance matters. g) Prepare certificate of insurance forms as requested. h) Other services as normally and customarily required of a municipal property/casualty broker/consultant. PROPOSAL FORMAT Instructions to proposers: Proposals must contain each of the below enumerated documents, each fully completed, signed, and notarized as required. Proposals submitted which do not include the following items may be deemed non -responsive and may not be considered for contract award. Ull 06-034-MARFPSVC.doe 10 A. FORMAT AND CONTENTS OF PROPOSAL RFP #06-034-MA, Property/Casually Insurance BrokerlConsuRani 1. Page Title The title page shall indicate "PROPERTY/CASUALTY INSURANCE BROKER AND CONSULTING SERVICES RFP" and show the name and address of the brokerage firm as well as the contact person for the firm, phone number, fax number and E-mail address. 2. Table of Contents The table of contents should outline in sequential order the major areas of the proposal, and all pages of the proposal, including the enclosures. The proposal must be clearly and consecutively numbered and correspond to the table of contents. 3. Technical Proposal The technical proposal is a narrative that addresses the scope of work, the proposed approach to the work, the schedule of the work, and any other information called for by the RFP which the proposer deems relevant, including the following: a) Describe the insurance the proposer currently maintains to protect itself, and its clients for errors and omissions, general liability, professional liability, and performance under contract, including name of insurers, limit of coverage, claims basis, and deductible, list any claims outstanding against proposer and proposer's insurance within the last five (5) years, including current status of each claim. b) Describe the proposer's access to the insurance market including excess and stop -loss lines for coverage listed in Attachment #1. c) Describe the proposer's insurance marketing expertise with respect to the Coverage listed in Attachment # 1. d) Describe the proposer's plan to provide and maintain the City's insurance program in a computer management information system. Provide examples of management information reports provided to clients with similar programs, including cumulative project year premium and loss record (for claims over SIR), claims status (for claims over SIR), loss frequency, severity forecasts, observations on relevant changes in the insurance market, views on loss exposures facing the program, discussion of risk control activities, and summaries of insurance coverage in place. The City has a third parry administration program (TPA) for its self -insured liability claims. Describe, in detail, any necessary requirements involving the TPA. e) Describe exposure identification and evaluation assistance for each exposure listed in Attachment # 1, to be provided by the proposer as a basic service. f) Describe the loss prevention, loss control, and other technical services for each exposure listed in, Attachment #1. g) Provide information regarding any limitations on the amount of time to be used for consulting services during a year, i.e., 10 days per year, 2 days per month, etc. Advise of any items listed in Attachment #l, which are not included in the annual cost for 06-034-MARFPSVC.doc 11 RFP #06-034-MA, Property/Casually Insurance BrokedConsultant property/casualty insurance broker/consultant services and for which an additional charge will be made and list the additional cost per item. h) Describe any type of report for the City's self-insurance program you propose to submit, the information that will be included in the report, and how the report can best be utilized by the city to insure a sound self-insurance program with levels of retention to assure coverage for losses. Advise if the cost for such reports is included in the annual costs for broker/consultant services or if the reports will be at an additional cost and if so, how much. Lj 4. Qualifications Describe in detail the qualifications of your company personnel specifically assigned, and supply a list of current clients for references with names of individuals who can be contacted by the City for discussion of your services to that client. In addition, please include the names of at least three clients with whom you have done business in the past, but who are no longer your clients. A demonstrated track record with a variety of governmental clients will be advantageous to the proposer. This area's proposal format should follow these basic guidelines. a) For each numbered (and/or lettered) item in the Scope of Services section, please provide a statement regarding the firm's ability to accomplish the indicated tasks. Describe the qualifications of the firm and the personnel to whom the task would be assigned. If the service can be provided, but with qualifications, state those qualifications specifically. b) References with names, addresses, and telephone numbers. c) Ability to provide a detailed breakdown of cost of services by year. d) Any additional remarks/comments the company wishes to make to elaborate their proposal and qualifications. 5. Price Proposal and Contract Fee The price proposal and contract fee is a presentation of the proposer's total offering price including the cost for providing each component of the required goods or services. (]Please be reminded, and address the fact, that all insurance policies obtained through the broker are net of commission.) Proposers should indicate the dollar amount that will be attributed to each line of coverage and each sub -contractor, if any. Proposers may use formats of their choice. 06.034-MARFPSVC.doo 12 tit t W t �' -�C,,{sf Link `�ch uid of I�rtst� �j PALMER & CAY .......... ..-__ ........._...... . G�iuAtl,ArJ rVAN overage Company Policy No. Premium Policy Dates Limit Comments Primary Property Lexington Insurance 8754443 $ 313,740 10/1/05-06 $ 20,000,000 Per Occurrence $250,000 AOP Deductible Except Company $ 20,000,000 Flood per occurrence/annual aggregate $50,000 AOP Deductible for 6 $ 10.000,000 Flood per occurrence/annual aggregate - Specified Locations Zones A or V 5% of affected value each location $ 20,000,000 Earthquake per occurrencelannual w/min $1,000,000 SFHA Flood aggregate 5% of affected value each location $ 41,421,590 Per Occurrence Mobile Equipment/Veh, w/min $250,000 Named Storm $ 10,000,000 Per Occurrence Demolitionllncr COC Flood $ 2,500.000 Per Occurrence Automatic Acquisition 5% of affected value each location $ 2,500,000 Per Occurrence Property in Course of wlmin $250,000 Any Other Flood Construction Policy Includes Terrorism $ 2,500,000 Per Occurrence Unnamed Locations $ 2,500,000 Per Occurrence Business Inc/Extra Exp $ 1,000,000 Per Occurrence Valuable Papers $ 1,000,000 Per Occurrence Accounts Receivable $ 100,000 Per Occurrence Transit $ 100,000 Per OcclAnnual Agg Pollutant Clean-up Property - 2nd Layer Westchester Surplus Lines D35893374003 $ 3B,234 10/1105-06 $ 20,000,000 Per Occurrence Excess of $20,000,000 Insurance Company Excluding Flood & Earthquake 50% 50% Participation ($1OMM) Policy Includes Terrorism Property - 2nd LayeF—ommonwea nsurance US5874 $ 37.398 10/1105-06 $ 2 000,000 er ccurrence Excess of $20,000,000 Company Excluding Flood & Earthquake 50% 50% Participation ($1 OMM) Policy Includes Terrorism Property - Excess RSUI Indemnity Company NHD343214 $ 99,583 10/1105-06 $ 260,000,000 Per Occurrence Excess of $40,000,000 Excluding Flood & Earthquake Policy Includes Terrorism Inland Marine Great American Insurance IMP669696701 $ 10,198 1011105-06 Company Texas Commercial Fine Arts $ 2,082,901 Property Owned -Scheduled Locations $2,500 Per Occurrence Deductible $ 500,000 Art Work Owned -Scheduled Locations $ 400.000 Property of Others -Scheduled Locations $ 100,000 Covered Property on Loan or Exhibition $ 100,000 All Other Locations $ 100,000 Covered Property While in Transit Policy includes Terrorism Special. Floater $ 416,830 Sound Equipment -Scheduled Location $1,000 Per Occurrence Deductible $ 50,000 All Other Locations $ 50.000 Transit Crime National Un* n Fire Ins. 4940082 $ 8,604 10/1105-06 $ 1,500,000 Cov. Form O - Public Emp Dishonesty $25,000 Deductible Co. of PA $ 1,500,000 Cov. Form B - Forgery or Alteration $ 1,500,000 Cov. Form F.- Computer Fraud Bob Bookhammer: (214) 365-4703 This schedule of insurance is intended for reference only and neither affirmatively or 4/24/2006 Anne Street: (214) 365-4738 negatively amends, extends or afters the coverage afforded by any policy described herein. Refer to the actual policies for coverages and exclusions. City of Lubbock Schedule of Insurance PALMER & CM 2i+wG4had /M! overage ompany Policy No. Premium Policy Dates Limit Comments Excess Liability St. Paul Insurance GP06301452 $ 359,212 1011105-06 Company General Liability $ 3,000,000 General Aggregate $500,000 SIR including loss $ 3,000,000 Products/Completed Operations Agg & expense per event $ 1,000,000 Personal Injury & Advertising $ 1,000,000 Each Event $ 100,000 Premise Damage Limit Policy Includes Terrorism None Medical Payments (per person) Except Employment Practices None Failure to Supply Limit None Sewer Back -Up Limit (from negligence) Employee Benefits $ 3,000,000 Total Limit $500,000 SIR including loss (Claims Made) $ 1,000,000 Each Wrongful Act Limit & exense each wrongful act No Retro Date Applies Law Enforcement $ 1,000,000 Total Limit $500,000 SIR including per loss $ 1,000,000 Each Wrongful Act Limit & expense each wrongful act Public Entity Mgmt $ 1,000,000 Total Limit $500,000 SIR including loss Claims Made) $ 1.000,000 Each Wrongful Act Limit & expense each wrongful act Retro: 09/10/1999 Employment Practices $ 1,000,000 Total Limit $500,000 SIR including loss (Claims Made) $ 1,000,000 Each Claim & expense each wrongful act Retro: 09/10/1999 Auto Liability $ 1,000,000 Auto Liability $500,000 SIR including loss $ 1,000,000 Uninsured/Underinsured Motorist & expense per accident UmbrelWExcess $ 9,000,000 General Aggregate Limit $10,000 Deductible $ 9,000,000 Products & Completed Ops. Agg. Limit $ 9,000,000 Personal Injury Limit A separate $9,000,000 limit $ 9,000,000 Advertising Injury Limit applies to Public Entity Mgmt. $ 9,000,000 Each Event Limit & Employee Benefits (Claims Made) $ 9,000,000 Law Enforcement Liability - Each Act I I +u+ uvo-uo I rirsr uonar lrer araruie �cero ueouctiore This schedule of insurance is intended for reference only and neither affirmatively or negatively amends, extends or alters the coverage afforded by any policy described herein. Refer to the actual policies for coverages and exclusions. Bob Bookhammer: (214) 365-4703 2 4/24/2006 Anne Street: (214) 365-4738 773 City of Lubbock Schedule of Insurance PALMER & CAY overage Company Policy No. Premium Policy Dates Limit Comments Airport Owners Are Property & Casualty AAPN0098148002 $ 35,715 10/1/05-06 $ 50,000,000 Per Occurrence Zero Deductible Liability Insurance Company $ 50,000,000 Products-Compieted Operations Annual Aggregate $ 50,000,000 Personal & Advertising Injury Annual Aggregate $ 50,000,000 Malpractice Annual Aggregate Excluded Extended Coverage -War, Hijacking & Other Perlis Annual Aggregate $ 100,000 Fire Damage - Any One Fire $ 5,OD0 Medical Expense Limit - Any One Person $ 50,000,000 Hangarkeepers not "n fight" Per Occurrence $ 50,000,000 Hangarkeepers not "in flight" Per Aircraft Excluded Non -Owned Aircraft Liability Non -Owned Westchester Fire ACCN0098145AO02 $ 10,750 10/1/05-06 $ 50,000,000 Per Occurrence Liability Coverages Include: ircraH Liability Insurance Company D. Single Limit BI incl. Passengers and Property Damage No aircraft physical damage coverage provided Boiler & Machinery Zurich American BM508785801 $ 483,450 1011105-06 $ 50,000,000 Equipment Breakdown Deductibles: Insurance Company $ 2,500,000 Business interruption (Non -utilities) $26,000 except: $ 100,000 Extra Expense, Utility Intrption, Spoilage $100,000 Utilities $ 100,000 Ammonia Contamination, Water Damage $250,000 All Steam Turb.(but Cook $ 100,000 Hazardous Material, Conseq. Ding. #2 - $350,000) $ 100,000 Ordinance or Law, Data or Media $500,000 Massengale Gas Turb., $ 250,000 Expediting Expense $2 per KVA, Min $50,000 All $ 1,000,000 Errors & Omissions Transformers $ 2,500,D00 Newly Acquired Premises Pipeline Liability Federal Insurance Com- 35830588DAL $ 5,150 1011/05-06 $ 2,000,000 General Aggregate Limit pany $ 1,000,000 Products/Comps. Operations Aggregate $2,600 Deductible BI & PO Per $ 1,000,000 Advertising/Personal Injury Limit Occurrence $ 1,000,000 Each occurrence Limit $ 100,000 Fire Damage Limit $ 10,000 Medical Expense Limit i nws scneawe or insurance is i ntenaeo Tor reverence omy ana neaner amrmauveh or negatively amends, extends or afters the coverage afforded by any policy described herein. Refer to the actual policies for coverages and exclusions. _ Bob Bookhammer: (214) 365-4703 3 4/24/2006 Anne Street: (214) 365-4738 LIST OF MUNICIPAL OFFICIALS FOR CONFLICT OF INTEREST DISCLOSURE (required by Local Government Code Section 176) NAME POSITION Marc McDougal Mayor Linda DeLeon Council member, District 1 Floyd Price Council member, District 2 Gary Boren Council member, District 3 Phyllis Jones Council member, District 4 Tom Martin Council member, District 5 Jim Gilbreath Council member, District 6 Lee Ann Dumbauld City Manager City Sec Form, 1212005 CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire is being filed in accordance with chapter 176 of the Local OFFICE USE ONLY Government Code by a person doing business with the governmental entity. pate Received By law this questionnaire must be filed with the records administrator of the local government not later than the 7th business day after the date the person becomes aware of facts that require the statement to be filed, See Section 176,006, Local Government Code. A person commits an offense if the person violates Section 176.006, Local Government Code. An offense under this section is a Class C misdemeanor. Name of person doing business with local governmental entity. 2 ❑ Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than September 1 of the year for which an activity described in Section 176.006(a), Local Government Code, is pending and not later than the 7th business day after the date the originally filed questionnaire becomes incomplete or inaccurate.) 3 Name each employee or contractor of the local governmental entity who makes recommendations to a local government officer of the governmental entity with respect to expenditures of money AND describe the affiliation or business relationship. 4 Name each local government officer who appoints or employs local government officers of the governmental entity for which this questionnaire is filed AND describe the affiliation or business relationship. _q_ FORM CIQ CONFLICT OF INTEREST QUESTIONNAIRE Page 2 For vendor or other person doing business with local governmental entity Name of local government officer with whom fifer has affiliation or business relationship. (Complete this section only if the answer to A, B, or C is YES. This section, item 5 including subparts A, B, C & D, must be completed for each officer with whom the filer has affiliation or other relationship. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income from the filer of the questionnaire? ❑ Yes ❑ No B. Is the filer of the questionnaire receiving or likely to receive taxable income from or at the direction of the local government officer named in this section AND the taxable income is not from the local governmental entity? ❑ Yes ❑ No C. Is the filer of this questionnaire affiliated with a corporation or other business entitt that the local government officer serves as an officer or director, or holds an ownership of 10 percent or more? ❑ Yes L No D. Describe each affiliation or business relationship. Signature of person doing business with the governmental entity Date N m F Conflict of Interest Disclosure A form disclosing potential conflicts of interest involving counties, cities, and other local government entities may be required to be filed after January 1, 2006, by vendors or potential vendors to local government entities. The new requirements are set forth in a new Chapter 176 of the Texas Local Government Code added by H.B. No. 914 of the last Texas Legislature. Companies and individuals who contract, or seek to contract, with the City of Lubbock and its agents (including employees involved in the business with the entity) may be required to file with the City Secretary's Office at 1625 13`h Street, Room 206, Lubbock, Texas 79401 a Conflict of Interest Questionnaire that describes affiliations or business relationships with City of Lubbock officers, or certain family members or other businesses of the City of Lubbock officer, with which such persons do business, or any gifts in an amount of $250 or more to any City of Lubbock officer or certain family members. The new requirements are in addition to any other disclosures required by law. The dates for filing disclosure statements begin on January 1, 2006. A violation of the �^ filing requirements is a Class C misdemeanor. The Conflict of Interest Questionnaire (Form CIQ) may be downloaded from http://www.ethics.state.tx.us/whatsnew/conflict forms.htm. no 0 j Page 1 Effective: June 18, 2005 Vernon's Texas Statutes and Codes Annotated Currentness Local Government Code (Refs & Annos) Title 5. Matters Affecting Public Officers and Employees (Refs & Annos) Subtitle C. Matters Affecting Public Officers and Employees of More Than One Type of Local Government 'M Chapter 175. Right of Certain Municipal and County Employees to Purchase Continued Health Coverage at Retirement (Refs & Annos) -► Chapter 176. Disclosure of Certain Relationships with Local Government Officers; Providing Public Access to Certain Information 176.001. Definitions In this chapter: (1) "Commission" means the Texas Ethics Commission. (2) "Family member" means a person related to another person within the first degree by consanguinity or affinity, as described by Subchapter B, Chapter 573, Government Code. (3) "Local governmental entity" means a county, municipality, school district, junior college district, or other political subdivision of this state or a local government corporation, board, commission, district, or authority to which a member is appointed by the commissioners court of a county, the mayor of a municipality, or the governing body of a municipality. The term does not include an association, corporation, or organization of governmental entities organized to provide to its members education, assistance, products, or services or to represent its members before the legislative, administrative, or judicial branches of the state or federal government. (4) "Local government officer" means: (A) a member of the governing body of a local governmental entity; or (B) a director, superintendent, administrator, president, or other person designated as the executive officer of the local governmental entity. (5) "Records administrator" means the director, county clerk, municipal secretary, � superintendent, or other person responsible for maintaining the records of the local y� governmental entity. Effective: June 18, 2005 0 2005 Thomson/West. No Claim to Orig. U.S. Govt. Works. Page 2 k.` 176.002. Applicability to Certain Vendors and Other Persons (a) This chapter applies to a person who: (1) contracts or seeks to contract for the sale or purchase of property, goods, or services with a 3 local governmental entity; or (2) is an agent of a person described by Subdivision (1) in the person's business with a local F�,Ji governmental entity. F1 (b) A person is not subject to the disclosure requirements of this chapter if the person is: (1) a state, a political subdivision of a state, the federal government, or a foreign government; or (2) an employee of an entity described by Subdivision (1), acting in the employee's official capacity. Effective: June 18, 2005 176.003. Conflicts Disclosure Statement Required Ey (a) A local government officer shall file a conflicts disclosure statement with respect to a person 4 described by Section 176.002(a) if: s (1) the person has contracted with the local governmental entity or the local governmental entity is considering doing business with the person; and (2) the person: (A) has an employment or other business relationship with the local government officer or a family member of the officer that results in the officer or family member receiving taxable income; or 1 (B) has given to the local government officer or a family member of the officer one or more gifts, other than gifts of food, lodging, transportation, or entertainment accepted as a guest, that have an aggregate value of more than $250 in the 12-month period preceding the date the officer becomes aware that: (i) a contract described by Subdivision (1) has been executed; or L4,-"I'll" (ii) the local governmental entity is considering doing business with the person. (b) A local government officer shall file the conflicts disclosure statement with the records D 2005 Thomson/West. No Claim to Orig. U.S. Govt. Works. Page 3 administrator of the local governmental entity not later than 5 p.m. on the seventh business day after the date on which the officer becomes aware of the facts that require the filing of the statement under Subsection (a). (c) A local government officer commits an offense if the officer knowingly violates this section. An offense under this subsection is a Class C misdemeanor. (d) It is a defense to prosecution under Subsection (c) that the person filed the required conflicts disclosure statement not later than the seventh business day after the date the person received notice of the violation. Effective: June 18, 2005 § 176.004. Contents of Disclosure Statement The commission shall adopt the conflicts disclosure statement for local government officers. The conflicts disclosure statement must include: (1) a requirement that each local government officer disclose: (A) an employment or other business relationship described by Section 176.003(a), including the nature and extent of the relationship; and (B) gifts received by the local government officer and any family member of the officer from a person described by Section 176.002(a) during the 12-month period described by Section 176.003(a)(2)(B) if the aggregate value of the gifts from that person exceed $250; (2) an acknowledgment from the local government officer that: (A) the disclosure applies to each family member of the officer; and (B) the statement covers the 12-month period described by Section 176.003(a)(2)(B); and (3) the signature of the local government officer acknowledging that the statement is made under oath under penalty of perjury. Effective: June 18, 2005 176.005. Application to Certain Employees (a) The local governmental entity may extend the requirements of Sections 176.003 and 176.004 to all or a group of the employees of the local governmental entity. (b) A local governmental entity may reprimand, suspend, or terminate the employment of an © 2005 Thomson/West. No Claim to Orig. U.S. Govt. Works. Page 4 Fill employee who fails to comply with a requirement adopted under this section. (c) An employee of a local governmental entity commits an offense if the employee knowingly Fil violates requirements imposed under this section. An offense under this subsection is a Class C misdemeanor. (d) It is a defense to prosecution under Subsection (c) that the person filed the required conflicts disclosure statement not later than the seventh business day after the date the person received notice of the violation. Effective: June 18, 2005 § 176.006. Disclosure Requirements for Vendors and Other Persons; Questionnaire (a) A person described by Section 176.002(a) shall file a completed conflict of interest questionnaire with the appropriate records administrator not later than the seventh business day after the date that the person: (1) begins contract discussions or negotiations with the local governmental entity; or (2) submits to the local governmental entity an application, response to a request for proposals or bids, correspondence, or another writing related to a potential agreement with the local governmental entity. (b) The commission shall adopt a conflict of interest questionnaire for use under this section that requires disclosure of a person's affiliations or business relationships that might cause a conflict of interest with a local governmental entity. (c) The questionnaire adopted under Subsection (b) must require, for the local governmental entity with respect to which the questionnaire is filed, that the person filing the questionnaire: (1) describe each affiliation or business relationship the person has with each local government officer of the local governmental entity; (2) identify each affiliation or business relationship described by Subdivision (1) with respect to which the local government officer receives, or is likely to receive, taxable income from the person filing the questionnaire; (3) identify each affiliation or business relationship described by Subdivision (1) with respect to which the person filing the questionnaire receives, or is likely to receive, taxable income that: (A) is received from, or at the direction of, a local government officer of the local governmental entity; and r C 2005 Thomson/West. No Claim to Orig. U.S. Govt. Works. Page 5 F-31 (B) is not received from the local governmental entity; (4) describe each affiliation or business relationship with a corporation or other business entity R with respect to which.a local government officer of the local governmental entity: Pi (A) serves as an officer or director; or (B) holds an ownership interest of 10 percent or more; '-' (5) describe each affiliation or business relationship with an employee or contractor of the local governmental entity who makes recommendations to a local government officer of the local governmental entity with respect to the expenditure of money; (6) describe each affiliation or business relationship with a person who: (A) is a local government officer; and (B) appoints or employs a local government officer of the local governmental entity that is the subject of the questionnaire; and E-111 (7) describe any other affiliation or business relationship that might cause a conflict of interest. (d) A person described by Subsection (a) shall file an updated completed questionnaire with the s appropriate records administrator not later than: (1) September 1 of each year in which an activity described by Subsection (a) is pending; and (2) the seventh business day after the date of an event that would make a statement in the questionnaire incomplete or inaccurate. (e) A person is not required to file an updated completed questionnaire under Subsection (d)(1) in a year if the person has filed a questionnaire under Subsection (c) or (d)(2) on or after June 1, but before September 1, of that year. (f) A person commits an offense if the person violates this section. An offense under this subsection is a Class C misdemeanor. (g) It is a defense to prosecution under Subsection (f) that the person filed the required questionnaire not later than the seventh business day after the date the person received notice of the violation. Effective: June 18, 2005 176.007. List of Government Officers 0 2005 Thomson West. No Claim to Orig. U.S. Govt. Works. k :. Page 6 3 The records administrator for a local governmental entity shall maintain a list of local government officers of the entity and shall make that list available to the public and any person who may be required to file a questionnaire under Section 176.006. Effective: June 18, 2005 176.008. Electronic Filing L The requirements of this chapter, including signature requirements, may be satisfied by electronic filing in a form approved by the commission. Effective: June 18, 2005 0 4 176.009. Posting on Internet (a) A local governmental entity shall provide access to the statements and questionnaires filed under this chapter on the Internet website maintained by the local governmental entity. (b) This subsection applies only to a county with a population of 800,000 or more or a municipality with a population of 500,000 or more. A county or municipality shall provide, on the Internet website maintained by the county or municipality, access to each report of political contributions and expenditures filed under Chapter 254, Election Code, by a member of the `` commissioners court of the county or the governing body of the municipality in relation to that office as soon as practicable after the officer files the report. Effective: June 18, 2005 § 176.010. Requirements Cumulative a The requirements of this chapter are in addition to any other disclosure required by law. Current through the end of the 2005 2nd Called Session of the 79th Legislature END OF DOCUMENT © 2005 Thomson/West. No Claim to Orig. U.S. Govt. Works. bob.bookhammer@wachovia com 04/23/2006 09:15 AM Anne, Please print and save. Hil ----- Original Message ----- From: RFP Depot [notices@rfpdepot.com] Sent: 04/22/2006 02:48 AM To: Bob.Bookhammer2@wachovia.com Subject: Addendum(s) to Bid 06-034-MA Bob Bookhammer, To Anne_Street_[Palmer_&_Cay_A438950] cc bcc Subject Fw: Addendum(s) to Bid 06-034-MA City of Lubbock, TX has issued an addendum for Bid #06-034-MA - Property/Casualty Insurance Broker/Consultant. Please make sure you review all of the changes listed below. Changes made on Apr 21, 2006 3:23:36 PM CDT Nevi bochtait?eltks� f 4 f � � ; ' $.0 EDULE 05 06 kl5 zEt X;Tv2 .�, c�a.:c`?�'i' o- ,�-.,:_ a:° ,Z�`z,.:.<. ,. .z�:. ,��, >..53:`�.v`X,'�. ,_, ..»^n ., &"=,a.. • 2, .f .., ..3:r. .. Z,? ., '.. 3 .: ; � _ Ct�rlir`'{�ts� � ��,*� � ' � '� �� � � � `�, ��,;, � (Ii>?orm�Elnn was: added}� ,f3esCrtpt�5r1�8►d _ � �, g Click on the link below or enter the link information into your web browser address bar to view the bid. http://www.rfpdepot.com/DPX?ac=view&auc=89372 If you have any questions on this bid please contact the soliciting agency. For questions on using the system to respond to the bid please contact customer support at vendorsupportCcDrfpdepot. com or 1-801-765-9245. RFP Depot www.rfpdepot.com Copyright 0 1999-2005 - RFP Depot, LLC. All rights reserved. P Pi #4 %. , = .- -ir:;. ThT,,s Va! 4L Page I of 2 as 4wyk s A$# Ste 1004 0" 44 A"3401 04-434-44A ORMOWK-0 -*a c" or UROOM mm*vn TM ardw To *cCWT 00t ftmi &M Am *AL W N P4%1 AM lWAM my lAOvftv6wry pi "a wo ~tft RPRM &"**V" ?"c maw to wti PFVO &wr c to 14 f" rms W" IV cm. T�Os io & PAP= CKY oWbawitie^ WOr 1* bo 4*d *a MF* Owswce vW opa sfto tbd AOOF. it 08*ft. vaprww" on" M44" we be 4,Wd as A# 44 &M. 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MSLOr Y Page I of 1 Question and Answers for Bid #06-034-MA - Property/ Casualty Insurance Broker/ Consultant F,� It,:, L d XnmWO-*A4 *W "a qW4 7* viiemqm Av'*qOft *No "01 eno V- *6 Ve Cam 40 W not *$.)I mcon Aft&&4 PS 4W O*Wpft* wk-.K,,j *41PL vd4# - ,wo,10 mm hw. d*P. pobm 40096ft ~W411 te '*of m *www * vo Uftlowft OL O-r-� AW I t. X0 ) 0 ;4 AOWJW cp w. . TWWF AmWWW' 4�:qx of ~ WA Md SON http://www.rfpdepot.com/DPX?ac=aucqlist&auc=89372&mdid=211496&printable=Y 4/24/2006 No Text RFP #06-034-MA, Property/Casualty Insurance Broker/Consultant SUBMIT TO: CITY OF LUBBOCK CITY OF LUBBOCK TEXAS Purchasing �. Contract Management ift � m 1625 13d' Street, R204 Lubbock, Tx 79401-3830 AN EQUAL REQUEST FOR CONTACT PERSON: OPPORTUNITY PROPOSAL Marta Alvarez EMPLOYER #06-034-MA TEL: 806.775.2167 FAX: 806.775.2164 http://purchasing.ei.Iubbock.tx.us TITLE: SUBMITTAL DEADLINE: Property/Casualty Insurance Broker/Consultant May 9, 2006, 2:00 CST PRE PROPOSAL DATE, TIME AND LOCATION: Any proposals received offer the unw and date listed above, regardless May 1, 2006 10:00 AM, Conference Room 204 ojrhe mode of&Uvery, shaU be returned unopened. RESPONDENT NAME: Wachovia Insurance Services Inc. IF RETURNING AS A "NO RESPONSE", PLEASE STATE REASON. MAILING ADDRESS: 5956 Sherry Ln, Suite 2000 CITY —STATE —ZIP: THE CITY OF LUBBOCK RESERVES THE RIGHT TO ACCEPT OR REJECT Dallas TX 75225 ANY AND ALL PROPOSALS IN WHOLE OR IN PART AND WAIVE ANY INFORMALITY IN THE COMPETITIVE PROPOSAL PROCESS. FURTHER, TELEPHONE NO: 214-365-9150 THE CITY RESERVES THE RIGHT TO ENTER INTO ANY CONTRACT DEEMED TO BE IN THE BEST INTEREST OF THE CITY. IT IS THE INTENT AND PURPOSE OF THE CITY OF LUBBOCK THAT THIS FAX NO: 214-365-9141 REQUEST PERMITS COMPETITIVE PROPOSALS. IT IS THE OFFEROR'S RESPONSIBILITY TO ADVISE THE CITY OF LUBBOCK PURCHASING E-1L: Bob. Bookhammer@wachovia. com MANAGER IF ANY LANGUAGE, REQUIREMENTS, ETC., OR ANY COMBINATIONS THEREOF, INADVERTENTLY RESTRICTS OR LIMITS FEDERAL TAX ID NO. OR SOCIAL SECURITY NO. 56-1882208 THE REQUIREMENTS STATED IN THIS RFP TO A SINGLE SOURCE. SUCH NOTIFICATION MUST BE SUBMITTED IN WRITING AND MUST BE RECEIVED BY THE PURCHASING MANAGER NO LATER THAN FIVE (5). BUSINESS DAYS PRIOR TO THE ABOVE SUBMITTAL DEADLINE. THE OFFEROR HEREBY ACKNOWLEDGES RECEIPT OF AND AGREES ITS BID IS BASED ON ANY ADDENDA POSTED ON RFPDEPOT.COM The City of Lubbock Charter states that no officer or employee of the City can benefit from any contract, job, work or service for the municipality or be 1 interested in the sale to the City of any supplies, equipment, material or articles purchased. Will any officer or employee of the City, or member of their immediate family, benefit from the award of this proposal to the above firm?_ YES -ENO IN COMPLIANCE WITH THIS SOLICITATION, THE UNDERSIGNED OFFEROR HAVING EXAMINED THE REQUEST FOR PROPOSAL, AND BEING FAMILIAR WITH THE CONDITIONS TO BE MET, HEREBY SUBMITS THE FOLLOWING. AN INDIVIDUAL AUTHORIZED TO BIND THE COMPANY MUST SIGN THE FOLLOWING SECTION. FAILURE TO EXECUTE THIS PORTION MAY RESULT IN PROPOSAL REJECTION. By my signature I certify that this offer is made without prior understanding, agreement, or connection with any corporation, firm, business entity, or person submitting an offer for the same materials, supplies, equipment, or service(s), and is in all respects fair and without collusion or fraud. I further agree that if the offer is accepted, the offeror will convey, sell, assign, or transfer to the City of Lubbock all right, tide, and interest in and to all causes of action it may now or hereafter acquire under the Anti-trust laws of the United States and the State of Texas for price fixing relating to the particular commodity(s) or service (s) purchased or acquired by the City of Lubbock At the City's discretion, such assignment shall be made and become effective at the time the tenders nal payment to the vendor. Senior Client Executive Authorized Signature Title Robert S. Bookhammer, III 5/3/06 Printrrype Name Date THIS FORM MUST BE COMPLETED AND RETURNED WITH YOUR RESPONSE. 06-034-MAR FPSV C.doc RFP #06-034-MA, Property/Casualty insurance Broker/ConsuNant SUSPENSION AND DEBARMENT CERTIFICATION Federal Law (A-102 Common Rule and OMB Circular A-110) prohibits non -Federal entities from contracting with or making sub -awards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. Covered transactions include procurement contracts for goods or services equal to or in excess of $25,000 and all non -procurement transactions Ed;(e.g., sub -awards to sub -recipients). Contractors receiving individual awards of $25,000 or more and all sub -recipients must certify that their organization and its principals are not suspended or debarred by a Federal agency. Before an award of $25,000 or more can be made to your firm, you must certify that your organization and its principals are not suspended or debarred by a Federal agency. I, the undersigned agent for the firm named below, certify that neither this firm nor its principals are suspended or debarred by a Federal agency. COMPANY NAME: Wachovia Insurance Services Inc. Signature of Company Official: Date Signed: 5/3/06 Printed name of company official signing above: 06-034-MARFPSVC.doc 7 Robert S. Bookhammer, III �µrEw ITB # 06-34-MA, Addendum #1 CITY OF LUBBOCK INSURANCE REQUIREMENT AFFIDAVIT To Be Completed by Bidder And Attached to Bid Submittal t, the undersigned Bidder, certify that the insurance requirements contained in this bid document have been reviewed by `ne with the below identified Insurance Agent/Broker. If I am awarded this contract by the City of Lubbock, I will be able to, within ten (10) days after being notified of such award by the City of Lubbock, furnish a valid insurance certificate to E--.he City meeting all of the requirements defined in this bid/proposal. - Robert S. Bookhammer, III C n actor (Signature) . Contractor (Print) PCONTPLACTOR'S NAME: Wachovia Insurance Services Inc. (Print or Type) 5956 Sherry Lane, Suite 2000 CONTRACTOR'S ADDRESS.. y Dallas, TX 75225 ,,ie of Agent/Broker: Address of Agent/Broker: City/State/Zip: Wachovia Insurance Services Inc. 5956 Sherry Lane, Suite 2000 Dallas, TX 75225 Agent/Broker Telephone Number: ( 214 ) 365 I-91500 Date: 5/3/06 ? NOTE TO CONTRACTOR If the time requirement specified above is not met, the City has the right to reject this bid/proposal and award the contract to another contractor. If you have any questions concerning these requirements, please contact the Purchasing Manager for the City of Lubbock at (806) 775-2165. ITB#06-034-MAAd1 4 Uq P I I C I & N MQTZ�, 10a CERTIF ICATE NUMBER pt->,o 125351 THIS THIS CERTIFICATE 13 ISSUED AS A MATTER OF INFORMATION 8NLY AND CONFERS NO RIGHTS THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER PRODUCER jFor contact Information see page 2, do not send correspondence to this address) I Br J, -SSO LIMITED T, THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. Crescent L on, EC3N 2LY COMPANIES AFFORDING COVERAGE COMPANY A: Lloyd's of London L" INSURED (For contact Information see page 2, do not send correspondence to this address) Wachovia Insurance Services Aachovia Corporation '201 South College Street NC 1132 Charlotte, NC 28244-1132 United States 7TO CERTIFY THAT THE POLICIES OF 1NSURAAICE LISTED HEREIN HAVE BEEN ISSUED TQ THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY HIS IS RRM E INSURANCE AFFORDED QUI BY THE POLICES LISTED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MMIDDIM DATE (MMIDDN-0 GENERAL LIABILITY GENERAL AGGREGATE COMMERCIAL GENERAL LIABILITY PRODUCTS - COMPtOP AGG CLAIMS MADE F7 OCCUR PERSONAL & ADV INJURY EACH OCCURRENCE FIRE DAMAGE (Any one fire) MED EXP (Any one person) AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT ANY AUTO ALLOWED AUTOS BODILY INJURY (Per person) SCHEDULED AUTOS BODILY INJURY HIRED AUTOS (Per accident) NON -OWNED AUTOS PROPERTY DAMAGE EXCESS LIABILITY EACH OCCURRENCE UMBRELLA FORM AGGREGATE OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND EMPLOYERS' LIABILITY WC,,8,TATArT0RY ETHER h' EL EACH ACCIDENT THE PROPRIETOR/ PARTNERSIEXECUT,VE INOL EL DISEASE -POLICY LIMIT OFFICERS ARE: EXCL EL DISEASE -EACH EMPLOYEE� OTHER A Errors and Omissions B0595FD0494202005 6/1/2005 6/1/2006 $20,000,000 (Professional Liability) DESCRIPTION OF OPERATIONSILOCATIONSfVEHICLESISPECIAL ITEMS Please refer to page 2 for additional information. SPIRTTIFICAT OWEWs City of Lubbock 1625 13th Street, Room 204 SHOULD ANY OF THE POLICIES DESCRIBED HEREIN Sr. CANCELLED BEFORE THE E)anpA'nO% DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LABILITY OF ANY KIND UPON Lubbock, TX 79401-3830 THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE. BESSO LIMITED BY: Paul Helier Page 1 of 2 30 LIMITED Crescent London. EC3N 2LY Wachovia Insurance Services Wachovia Corporation 1 01 South College Street, NC 1132 Charlotte, NC 28244-1132 'United States ,Wachovia contract name/number: RFP$06-034-14A f CONTACT INFORMATION Direct any questions, requests, revisions, etc. regarding this certificate to Kimberly Englett, Phone: 214/365-4754, Email: Kimberiy.Englett@wachovia.com. Any correspondence sent to the insured's or producer's address will not receive a reply. Lam; City of Lubbock 1625 13th Street, Room 204 Lubbock, TX 79401-3830 �f CERTIFICATE NUMBER 125351 Page 2 of 2 CERTIFICATENUMBER PRODUCER (For eontad Informaton we page 2, do not send correspondence to thk sddrass) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED 1N THE POLICY. THIS Marsh USA Inc. CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE JVorlh Tryon Str@@t, SUlte 3200 POLICIES DESCRIBED HEREIN. ,9otte, NC 28202 COMPANIES AFFORDING COVERAGE CA NON-RESIDENT #0822889 COMPANY A: Ace American Insurance Company INSURED (For contact Information see page Z do not sand correspondence to this address) COMPANY B: Indemnity Insurance Company of North America Wachovie Insurance Services Wachovia Corporation COMPANY C: Lloyd's of London 201 South College Street, NC 1132 CharlDtte, NC 28244-1132 United States COMPANY D. Self -Insured THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIRMENTS, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES LISTED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MWDDlYY) DATE (MM001YY) p GENERAL LIABILITY Self -Insured 3/1/2006 3/1/2007 GENERAL AGGREGATE $5,000,000 X COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG $5,000,000 CLAIMS MADE FT OCCUR PERSONAL & ADV INJURY $5,000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $5,000,000 X General Aggregate ADDiles_ FIRE DAMAGE (Anyone fire) $5,000,000 Per Location MED EXP (Any one person} AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT ANY AUTO ALLOWED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE A EXCESS LIABILITY XOO G23571766 3/1/2006 3/1/2007 EACH OCCURRENCE $5,000,000 X UMBRELLA FORM AGGREGATE $5,000,000 OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND IM�ATWORY OTHM a EMPLOYERS' LIABILITY THE PROPRIETOR/ EL EACH ACCIDENT PARTNERSEXECUTIVE I t INCL EL DISEASE -POLICY LIMIT OFFICERS ARE: I r--� HI EXCL EL DISEASE -EACH EMPLOYE EI DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SP Please refer to page 2 for additional information. CE TIFICATEAOLDEW-11 City of Lubbock 1625 13th Street, Room 204 Lubbock, TX 79401-3830 SHOULD ANY OF THE POLICIES DESCRIBED HEREIN SE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAR SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY HIND UPON THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE. MARSH USA INC, rf����n BY: GaryVal X 7 k. Al Page 1 of 2 CERTIFICATE NUMBER 125352 sh USA Inc. North Tryon Street, Suite 3200 Gnerlotte, NC 28202 CA NON-RESIDENT #OB22889 Wachovia Insurance Services Wachovia Corporation 201 South College Street, NC 1132 Charlotte, NC 28244-1132 United States contract name/number: RFP#06-034-MA GENERAL LIABILITY COVERAGE CONTACT INFORMATION Direct any questions, requests, revisions, etc. regarding this certificate to Kimberly.Englett, Phone: 214/365-4754, Email: Kimberly.Englett@wachovia.com. Any correspondence sent to the insured's or producer's address will not receive a reply. !,Ti I City of Lubbock 1625 13th Street, Room 204 s Lubbock, TX 79401-3830 3 Page 2 of 2 AC-0-W. CERTIFICATE OF LIABILITY INSURANCE W-mo wArmo 12/29/2005 PROODCYR (8001 SBQ-7428 mx (512)472-1563 THL9 C—MFICATE IB ISSM AS A MATTER CFI RNATION NO RIGHM UPON THE C IIAT *....•.s.,..e Agency, Inc. ONLY AND CONFERS � HOLDER. THIS CERTIFICATE CCU NOT AMEND, E)�7kaVDc OR P.O. Box 684497 ALTSR THE COVERA A ORDFL 9Y THE POUOMS SELDW. 1215 8= Jacinto Y200 1 _ mm ea„fcwd Agemcy, lac. Po J3ax 64780 THE POL=29 OF INSURANCE LIST® BELOW HAVE MN 185s1ED TO THE MSURED N ima ABOVE FORmie POI.IDY PERIQO INOCATEO. NoiVNTHSTAMWRQ ANY REOUR RENT, TERM OR CONMW OF ANY CONTRACTOR OTHER COCUNENT WITH RG9PEC.T TC WHICN TH19 OEf:tiFIGATB MAY 8E (at9UED OR MAY PERTAIN, THERNSURkMATE C£ AFIM"SORO0 aYMOOMIMVAYHT�iAVE6�FS oWcUCC9YWD HHIRM I EC GIIaJCTO ALL THE TERYM6, EXCMONS ARD =WITIONa OF SUCH POLICIES, WRR ABMW DC rasoFtNSOR"Ot PaiICYNuum SGVOW LIM Cg"StAL UASYJTY OW48tCIALO_g1I��� UjAELTIY MOO M6 N ICJ OCCUR Ss u cc i P r lJfr A aI PRRWhtlAOVtWURYURY s MWMAMMMUll s awt AWRGGXTrLwAPmhmFUR: Pa . D a s AVTORODILLUAMVW AW AUTO ALLOW WAUTOg SPiMLOAXOG Hotm Avr" NOK4NJ WAVraS ; misL"r ddwo _ VWLYHJURY {FAR cwrvap j 9004Y INJURY FW } . PAOPWffVONI e?-VOW AAOE s GARACC LIAWJN AIIY ADTD A(UODNLY.EAACC r 071fCRTRAF AVfOONLYI AGO 4 r H 91CR "PULAUAEAITY OCCUR ❑ CLAM Mwa ®U.T®LE xFammom S".Zmo 8LHD6R 12i81/2DDn^ 12/31/2DDE CURRENGr i 9,ODO,On A2W A s 3,000,00 s r uon� zyw LANIWY uND ANYPROm`ImnwlPARTNSArm=Lr Na 1DsCLwlLloIDn@T OFFCEFdoom Ln on. specu%Lpsama IL MRAMw Ni r DL9EAs8- A M eL a-w s A OTHER p A 0 TOallf1Aty aTXA9A 12M/20CS L2/31/2001t unia..m tea. $3,000,00 Agom-"t* $3,000. 00 Pt�.tta aa. c1aLAi 25 ODt DtisCRtPT1DN eF DreRAlwnvtoaAnapErwatcel®r�caurlona ADnen ar eRnopseDa+nrraaAlPRovlslwa sVIO8NC8 of COVEPAGE INsR?5 }olm or ANTS 7ANCEL.LATTON SHOULD SNr OF T!ffi AYOIIE ORi'Is. AD PGUCU DB SAWALLED !i!FOW TMr. 51"M%C lI OAT[ THE THE RSWW WMW ML WDMLVOR TO NAIL varsvDsrlel HanceTn TIa Ci'RPIDATa NgLoeJ1 MAII®TO TNY LEFT, OUT FAILURE TD CD SD VML INFOSE IC CMA&T40 DR ILIKM DP ANY OM OPON THE lWDUMN tTJ AMW OR RVlREBENTATrvri. tUTN MMM FAPAriiHTATVE Wd SudestSAC VMP MVlg.pas,FWas, Ina pa=."" i CACORC CORPORATION 9t PA7e t a IMPORTANT If the cartificale holder Is an ADDITIONAL INSURED, Us polloy(les) must be andomed. A slaiennant an this carWicats, don not coder rights to 1ha mAllimsts holder In lieu of surer endommen4s). if SUORDGATION 13 WANED, subject to the leans mid conditions of the pollay, certain policlas may require or endorsement A otalmant an this carlIfIcats does not con* rights to the cardlicate holder In lieu of such andmVemant(s). DISCLAIMER The Cer(Reale of Irsurms an the mm= sIda of 1his fonts don rot constitute a contract hatwean the 11w Ing Inswar(a), authorbmd mpmwftgva or prod—, and the certificate holder, nor does It effir"milvely or ropOvally emend, extend or apex the coverage afforded by the pollblesnated thereon. ACORD 25 (MIMV) M478tvmw AMD pw wx .1m CERTIFICATE OF LIABILITY INSURANCE TRDOUCER (806) 792-5564 - - - FAX (806) 792-9344 THIS CERTIFICATE IS ISSUED AS I Sanford Insurance Agency ONLY AND CONFERS NO RIGHTS 6303 Indiana Ave. ALTER THIS COVVERRAAGE AAFFOnOM RDDE P.O. Box 64790 Lubbock, TX 79413 INSURERS AFFORDING COVERAGE ""m THE SANFORD AGENCY INC INSIAmA: Chit LLoyds DBA: SANFORD INSURANCE AGENCY INSU RER& — PO BOX 64790 INSLIM C: LUBBOCK, TX 79464 INEURERR -- NAIC # THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FORTHE POLICY PERIOD INDICATED. NOTVWTHSTANDIN ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECTTO WHICHITHIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE WSURANCEAFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGQREGATE LIMITS SHOWN MAY HAVE BEEN RFDUGEO BY PAID CLIMB. TYPE tM INSURANCE POUCYNUMBER wnwaw PWl=N Umn Ad� GENEERALL11MUrT Xj COMMERCIAL GIMMAL L1ASS.TTY CLAW MADE M OCCUR CLP 7973639 12/31/2005 32/31/2006 EAG4o=mENCE S 1,000.000 tAts een, i 300.000 A 1 FJN (Arty vlM pmvn} I 5 000 PERSONAL S ADV INIURY i 1,000,00 aE1ERM.AGGREMATE S 2,000,00 MITI AGGREGATE pL�IyMIT. APPLES PER POLICY lECpT MLCC PRODUCTS-COMPMPAGG i 2,000,000 AUTOM011" L1A01LRY ANY AUTO ALL OWN=AUTOS SCHEOL4EDAUT06 HEfIMAUTOS MON-OWNED AUTOS COMBINED, O SINGLE LIMIT I i SOOMYMURY (Pvpuwo -- i BODILY INJURY (Pknwdwdl i lPROPERTY DAMAGE s GARAGE!UASD.RY ANY AUTO AUTO ONLY• EA ACC102L i OTTER THAN EA ACC Am ONLY: AIX3 i S ' DIC6StVUMSRg , s LIASS,TIY OCCUR CLAIMS MADE DEDUCTIBLE RE'lFXTION S EACH OCCURRENCE i AGGREGATE 3 i i i WCRRSRS COMPETRSATKM AND EMPLOYtlIW' LIABILITY ANY PROPRIETfORMARTNEREXECUTNE OPFlCEtlMEM9ERD(CLUDEDi Iy�Estetltie umlw BPa�lA1. PROVISIONS below I NrKAT%OTii- ML E.LEACHACCIOENT S E.L.OMEASE-FAEMPLOY - i Fa. DISEASE -POLICY LIMIT S OTHER DEscRr ION OF OPERATIONS t LOCATIONS! VMOLE31 EXCLIIIIONSADDED SY MORSEMori SPECI L PROVISIONS 10ERTIFICATE HOLDER fk I EVIDENCE OF COVERAGE i ACORD 25 (2001108j SHOIAD ANY OFTTiHAISOM CElCRIEED POLICIES EE CANCM.UM EEFORETHE EKAMTION CATETHEREOP,TIEtsaUNG IINXI OR WILMMYCRTO MAP. , 0 GAYS Rwrm NORCETo THE rBtnw.ATE HOLDER NAMW TO THE Len, OUT FAIW RE TO MAIL SEM NOTICE SHALL IMPOSE NO OBLIGAMN OR LIASU Y ®ACORD CORPORATION 198 IMPORTANT if the certificate holder is an ADDITIONAL INSURED, the policypes) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in Ileu of such endorsamant(s). If SUBROGATION iS WANED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this cerificate does not confer dghts to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the Issuing insurer(s), authorized representative or producer, and the certificate holder, nor does It affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 26 (2001108) wow INSi:7RANCE SERVICES Scope of Services Intent I: It is the intent of Wachovia Insurance Services (Wachovia) and Sanford Insurance Company to act on the behalf of the CITY OF LUBBOCK as a professional property/casualty insurance Ell, brokerage services firm to assist the CITY OF LUBBOCK in the management of its various insured and self -funded programs. Such services would include, but not be limited to, the review, analysis, recommendation, and placement of all insured and self -funded programs. Areas of coverage would include Property, Auto, General Liability, Police Liability, Airport Liability, Workers' Compensation, and Boiler & Machinery. Wachovia and Sanford Insurance Company will handle the processing of all policy change endorsements, policy reviews, and audits. Wachovia and Sanford Insurance Company would also at the CITY OF LUBBOCK'S request prepare Requests for Proposals for the various insurance placements and Third Party Administrators. All lines of coverage will begin on October 1, 2oo6 or at its renewal date thereafter. All insurance policies that Wachovia and Sanford Insurance Company place on the CITY OF LUBBOCK'S behalf will be net of commission to Wachovia and Sanford Insurance Company. FJServices in advising and coordinating with the CITY'S Managing Director of Human Resources/Risk Management Coordinator would include the following: E 1. Meetings a. Bi-monthly meetings to discuss and review: analysis of coverage, loss control, benefit design, exposure changes, claims, and general administrative matters with Human Resources/Risk Management staff as required. b. Annual property loss control meetings with Human Resources/Risk Management staff. Uri 2. Consult and Coordinate a. Facilitate insurance company interface and coordination in the following areas: Renewal information format and market presentation Marketing of existing coverage • Possible preparation of request for proposals + Negotiate insurance contracts to assure best possible pricing b. Consult on selected special projects as requested by the CITY OF LUBBOCK. c. Explore coverage options on coverages not currently purchased by the CITY OF -, LUBBOCK for the CITY'S review. (subject to additional compensation as agreed by City and Broker.) d. Analyze the CITY OF LUBBOCK'S exposure to loss and review adequacies of coverage contained in existing policies and make appropriate risk recommendations. e. Assist the CITY OF LUBBOCK in reviewing all insurance policies, contracts, leases, and bonds as necessary. f. Provide service .for day-to-day contact and advise on insurance matters as needed. g. Prepare certificate of insurance forms as requested h. Provide services as normally and customarily required of a municipal property/casualty insurance broker. i. Assist the CITY OF LUBBOCK with their evaluation and selection of a Risk Management Insurance System (including Certificate Management) j. Perform exposure surveys with various City departments as identified by Human Resource/Risk Management department. I June 2oo6 CITY OF LUBBOCK awards Wachovia Insurance Services Insurance Services and Sanford Insurance Agency as their Broker of Record CC July, to August 1, CITY OF LUBBOCK, Wachovia Insurance Services and Sanford 2oo6 comElete reS Insurance A& fications ap2. 'M IN' '�ncy _�ired August, 2oo6 Wachovia Insurance Services and Sanford Insurance Agency conduct marketing function and schedule meetings with Underwriters to meet with CITY OF LUBBOCK as required. meetin&) ,(Bi-monthly September 1, Wachovia Insurance Services and Sanford Insurance Agency 2oo6 present quotes to the CITY OF LUBBOCK September 8, Final proposal sent to CITY OF LUBBOCK 2oo6 4 07 IN W M September 19, Wachovia Insurance Services and Sanford Insurance Agency bind 2oo6 coverages for CITY OF LUBBOCK W-0-1c, x October 1, 2oo6 CITY OF LUBBOCK olicies incept. VIM ,I"; November, 2oo6 Policies checked and delivered to the CITY OF LUBBOCK January, 2007 W WINE; I FebrU, 2007 Bi-month! meeti n& 77 M -1 -M 11 BM I , 5 June,2007 Bi-monthly meeting, Begin renewal process. Fill wACHovrA 7lvsysA'iv+cE SrxvarcES "� Technical Proposal Additional Information F] (a) Describe the insurance the proposer currently maintains to protect itself, and its clients for errors and omissions, general liability, professional liability, and performance under contract, including the name of the insurers, limit of coverage, claims basis, and deductible, list any claims outstanding against proposer and proposer's insurance within the last five (.5) years, including current status of each claim. Wachovia Insurance Services purchases Errors & Omissions and Umbrella coverage from Lloyds of London, and is self -insured for General Liability. Sanford Insurance Agency purchases Errors & Omissions from Westport Insurance Corporation, General Liability from CMI Lloyds, and Umbrella coverage from Penn National Mutual Casualty. All carriers are "A" rated by the 2oo6 A.M. Best Rating Guide. Certificates of Insurance for these coverages are included in our RFP response. Wachovia Insurance Services and Sanford Insurance Agency are not able to disclose claims filed against our Errors & Omissions insurance policy due to confidentiality requirements set forth by Errors & Omissions insurance carriers. (b) Describe the proposer's access to the insurance market including excess and stop -loss lines for coverage listed in Attachment #1. Wachovia Insurance Services and Sanford Insurance Agency enjoy senior level relationships with those markets and wholesalers that specialize in Public Entity business. Our firms place in excess of $2,600,000,000 into the marketplace on an annual basis. Wachovia is the 9'' largest insurance broker in the United States. We are the Brokers of Record for numerous Public Entities throughout the United States who value our consultative approach and the broad array of available risk management services. Our success is directly attributable to our strategic relationships that result in our ability to deliver the best possible risk management programs available in today's marketplace. The following is an exhibit of the markets we represent and would access on behalf of the City of Lubbock: Fj I Isanfor _ I City of Lubbock Markets WACMOVTA IN CE SERVICES Airport Commercial General Liability Global Aerospace AIG Aviation Lloyd's of London Signal Insurance Co. Westchester Fire Insurance Co. (ACE USA Aerospace) USAIG Phoenix Insurance Managers / Old Republic Insurance Company Boiler & Machinery CNA Insurance Group Zurich North America Chubb Insurance Group Travelers Insurance Group Hartford Steam Boiler &Inspection Company (AIG) Excess Liability (CGL, POT, EPL, LEL, AL) Illinois Union / SIRPRO St. Paul Travelers Insurance Group Princeton Excess & Surplus. / RPS AIG Specialty Excess American International Group (AIG) Munich American Risk Partners / American Alternative Insurance Company American International Group (AIG) Genesis Underwriting Management Company (GUMC) Professional Governmental Underwriters/United National Professional Underwriters/Zurich Trident Insurance Services International Placement Services/Clarendon US Risk Inland Marine Great American Insurance Group Fireman' Fund Insurance Group Travelers Insurance Group Airport Public Officials & Employers Liability American International Group Zurich Specialty St. Paul Insurance Group Texas Municipal League (TML) Professional Governmental Underwriters / United National Commercial Crime Hartford Insurance Group American International Group (AIG) Chubb Insurance Group Zurich North America Great American Insurance Group UST/AST Pollution Liability Seneca Insurance Company Zurich North America American International Group (AIG) Chubb Insurance Group XL Insurance Group Public Officials Bonds St. Paul Insurance Group Hartford Insurance Group CNA/Western Surety L11 r-n Zurich North America Chubb Insurance Group Property Resurgens/Landmark American LMG Property Group St. Paul Travelers Insurance Group Hartford/ITT Crum & Forster/Fairfax Insurance Group Chubb Insurance Group Allianz Insurance Company Firemans' Fund Insurance Group Great American Insurance Group Lloyd's of London CNA Commonwealth Insurance Company Industrial Risk Insurers Axis Arch Specialty Westchester Excess Workers' Compensation American International Group Safety National Casualty Ei Employers Reinsurance Corporation Genesis Underwriting Management Co. Midwest Employers Casualty Corp. Clarendon National Ins. Co. Q Harbor Specialties Insurance Company CNA/Wexford Underwriting Mangers Gulf/CMI Olympia { Discover Property Casualty Ins. Co. Texas Municipal League (TML) Safeco Insurance Group Zurich North America Property American Empire Surplus Lines Lexington Insurance Company Discover Property & Casualty First State - Pacific First State - Hartford IRI Affiliated FM RLI Bermuda Insurers: Allied World Assurance Co. Ltd. Axis Specialty Ins. Ltd. Endurance Specialty Ins. Ltd. XL Insurance Ltd. Ace Bermuda Insurance Ltd. Glencoe Insurance Ltd. Third Party Administrators Crawford & Company GAB Robins Gallagher Bassett FOS Group Barron Risk Management Permian Claims Service F.A. Richard Cambridge Littleton Insurance Group ATTENTA Cunningham Lindsey o� w�cxO0 V1A I1vSETRANUR SERVICES (c). Describe the proposer's insurance marketing expertise with respect to FA the coverage listed in Attachment #1. The proposed Wachovia Insurance Services and Sanford Insurance Company's account service team has in excess of eighty years experience with marketing and servicing Public Entity business. Senior level carrier relationships and contacts were initiated and nurtured during this period. Risk identification, analysis, evaluation, program selection, implementation and result monitoring skills were established and developed. Wachovia Insurance Services and Sanford Insurance Company's executives continually receive market intelligence which gives them a thorough understanding of how to effectively interface with the insurance carriers. The CITY OF LUBBOCK needs a broker of record that is current on market conditions, has influential carrier contacts, and broad access to the public entity marketplace. Wachovia Insurance Services and Sanford Insurance Company bring the El leadership, guidance and experience required to get the job done from the inception of the contract. As your current Broker of Record, we saved the City of Lubbock approximately $87,000 annually in transactional costs as compared to placing through a broker on a commission basis. We negotiated favorable terms for property coverage on the John T. Montford Dam, and provided quotations for new and more unusual coverages such as property coverage for the Katrina victims' apartments, and Tenant Users Liability (TULIP). Our philosophy of long-term mutually profitable relationships is a client's best approach to dealing with the Cost of Risk. We encourage our clients to play an active role in the marketing process by being available to meet with markets as appropriate. We initially qualify possible markets as the quality of services offer, financial strength, pricing and responsiveness. Then we move forward with those markets that meet our client's qualifications and recommend a meeting with Underwriters. Robert S. Bookhammer III, ARM-P, your Senior Client Executive, has developed, negotiated, placed and serviced sophisticated All Lines Basket Aggregate programs (CGL, AL, POL, EBL, EPL, LEL), Excess Workers Compensation programs, Third Party Administrators, Large Sophisticated Property placements (CITY OF LUBBOCK is a current client) and Loss Control programs. He also coordinates Claims and Loss Control Oversight Services for his various Public Entity clients. 0 �nfrdl WACHO I& RNWMANCE ACES (d). Describe the proposer's plan to provide and maintain the City's insurance program in a computer management information system. Provide examples of management information reports provided to clients with similar programs, including cumulative project year premium and loss record (for claims over SIR), claims status (for claims over SIR), loss frequency, severity forecasts, observations on relevant changes in the insurance market, views on loss exposures facing the program, discussion of risk control activities, and summaries of insurance coverage in place. The City has a third party administration program (TPA) for its self -insured liability claims. Describe, in detail, any necessary requirements involving the TPA. Wachovia Insurance Services and Sanford Insurance Company will provide a specialized electronic computer program that details each of the insurance policies purchased by the City of Lubbock. This database will also roll up the fixed cost of each policy as requested by the City. Examples of management information reports provided to our clients would be as follows: • Specific & Aggregate Excess Reinsurance Recovery Reports • Specific Excess Claims Report that details specifics of any claim with an incurred amount excess or an agreed reporting threshold • Paid versus Incurred Loss Fund Status Reports • Quarterly Loss Analysis - Perform review of actual estimated losses to expected estimated losses by line of coverage • Statistical Loss Forecasting - Compute annual loss projectors by coverage line • Retention Analysis - Loss review by stratified layer to determine optimal loss retention by policy period. • Reserve Analysis - Determine outstanding losses for each policy period using appropriate testing techniques. Loss Triangulation techniques are utilized. • State of the Marketplace Reports on a continuous basis • Schedule of Insurance for all policies The required data for the above reports must be provided to Wachovia Insurance Services by the City. Examples of Insurance Programs designed and implemented for our clientele are as follows: All Lines Basket Aggregate Programs (CGL, AL, LEL, POL, EPL, Crime and Property), Excess Casualty Programs (CGL, Ls �a n For 0J • 7. Airport Public Officials: Contract Review, Financial Review, Historical Loss Report Analysis, Review of Human Resource Manuals & Training Program and Ordinance Review. 8. Boiler & Machinery Physical Inspection, Exposure Checklist & Survey, Review of Preventative Maintenance Program, Business Income Analysis, Contingency Plan Review, and Historical Loss Report Analysis. . (f). Describe the loss prevention, loss control, and other technical services for each exposure listed in Attachment #1. Please find the attached presentations of the Risk Control Services and Claims Consulting and Advocacy Services that are available through Wachovia Insurance Services and Sanford Insurance Company. (g). Provide information regarding any limitations on the amount of time to be used for consulting services during a year, i.e., io days per year, 2 days per month, etc. Advise of any items listed in Attachment #1, which are not included in the annual cost for property/casualty insurance broker/consultant services and for which an additional charge will be made and list the additional cost per item. Wachovia Insurance Services and Sanford Insurance Company are prepared to personally meet with designated City risk management officials on a bi-monthly basis as required by the City. Robert S. Bookhammer III, ARM-P will conduct these bi-monthly meetings. John Sileo, our Risk Control National Practice Leader, will perform 2 days of physical property loss inspection per year. Mr. Sileo will also perform Up to 2 days of loss control identification and evaluation for those City divisions as identified by the City including LP&L, Civil Works, Public Works & Information Technology (Municipal Court and LPL internet activities). George Dibbs, Statistical Analyst, will perform up to 25 'z hours of technical & statistical services as outlined in our RFP response. The above services and time commitments are included in our proposed fee structure. The above time commitments are negotiable as requested by the City. We would adjust our fee accordingly. Wachovia Insurance Services and Sanford Insurance Company's Claims f Consulting & Management Oversight is included in our proposed fee structure. 1 f or d� \ /lizi=1 Describe any type of report for the City's self-insurance program you propose to submit, the information that will be included in the report, and how the report can be best utilized by the city to insure a sound self-insurance program with levels of retention to assure coverage for losses. Advise if the cost for such reports is included in the annual costs for broker/consultant services or if the reports will be at additional cost t and if so, how much? W/achovia Insurance Services and Sanford Insurance Company will provide an Expected Loss Forecast report for General Liability, Automobile Liability and Workers Compensation that will be very helpful to the City when considering how to handle the funding for these insurance coverages. We will also provide a Retention Analysis Report that will be useful when selecting the optimal retentions for various lines of coverage. The cost for the reports will be included in the annual cost for broker services. I CM EM CO = �= m = 9 RJ F INSMI CE SFAMCE's I. Claims Consulting and Advocacy Services Overview � The Wachovia Insurance Services Claims Management Practice employs some of F the industry's most respected claim professionals and is a component of our Risk Management Consulting Division. Team members have extensive claims experience in all lines of insurance and are capable of responding to virtually every claim situation. Each Wachovia Insurance Services office has a dedicated senior claims consultant and in turn, every client has access to all of the claims specialists operating throughout our firm. Mark LaChey, Senior Claims Consultant, is based in our Dallas office and serves as the claims consultant for the City of Lubbock. Mr. LaChey has almost 3o years of multi -line claims experience, with specialization in workers' compensation, auto and general liability, executive protection, directors & officers liability, employment practices liability, and litigation management. 0 Marc coordinates and participates in semi-annual casualty claim reviews with Hammerman & Gainer, the City's Third Party Administrator, and City risk management officials. As a result of our participation in the Claim Review process, we identified a potential driver safety issue that involved the City's refuse vehicles. We recognized a frequency trend that involved similar accident demographics that could .have lead to a severe occurrence. We arranged and coordinated several training sessions with City refuse drivers to help educate them to understand the consequences of their actions and how to operate the vehicles in a safer manner. The result of this training is the frequency has been reduced and the drivers are operating the vehicles in a more responsible manner. Marc also engaged the services of Tom Mulroy, National Claims Practice Leader, to provide senior level assistance with the settlement of a large property claim to the City's benefit. L A. Claims Advocacy Services Most commercial claims are reported by the insured directly to the insurance carrier or claims service provider to expedite the claims reporting and handling process. Wachovia Insurance Services facilitated the reporting of claims by Hammerman & Gainer to St. Paul Travelers (SPT), the City's excess liability insurance carrier by analyzing and effectively communicating the respective roles and responsibilities of both parties. The significance of this action is we have streamlined the severe claims reporting process to SPT which reduces the chance that a claim will go unreported and thus not covered due to lateness or non- compliance with the claims reporting provisions contained in the policy. While our role in routine claims is more oversight in nature, when coverage issues arise or when there are questions about loss adjustment, we also fill the role of claims advocate for our clients. Based upon our constant internal discussions of City of Lubbock's claims management needs and our experience with similar clients, we suggest the following as our continued approach to providing claims advocacy services to City of Lubbock: ■ Continue to participate in semi-annual Claim/File Reviews ■ Identify trends that could lead to adverse loss experience and increased financial expenses to the City. ■ Recommend effective and efficient risk management solutions to reduce or eliminate adverse exposures. ■ Refer potential problem claims to Tom Mulroy, Wachovia Insurance Services National Claims Consulting Practice Leader, for expert review and commentary. !s5��! n or � _I B. Claims Consulting Services rn Wachovia Insurance Services claim consultants will provide assistance in the claim adjusting process as an ongoing, active member of City of Lubbock's risk management team. We will provide functional guidance on questions relating to the processing and equitable disposition of losses. When requested, we can attend and participate in ADR/mediation sessions. Our services to City of Lubbock will be customized to your specific needs and objectives. With the respect to the RFP, we anticipate continuing to provide the following claims consulting services to City of Lubbock: ■ Provide input on the adjustment of City of Lubbock claims as directed by the City's Risk Management Department ■ Review all claims reserved above $25,000 ■ As part of City of Lubbock's Special Claim Handling instructions, Wachovia Insurance Services will require the claims service provider to create a Reserve Estimate Advisory Report for all lines of coverage on claims reserved above <. $25,000. The claims adjuster is to immediately notify City of Lubbock Risk Management and Wachovia Insurance Services of claims reserved above Y$25,000. The advisory letter will outline the factors affecting the reserve amount facts of the accident nature and extent of injuries as well as pertinent investigation details. The advisory is to be sent within 15 days of the reserve being posted. Wachovia Insurance Services claim consultants will review the ,' advisory and discuss the issues with City of Lubbock's risk management team. FJ! FjJ L11 wrrA INS R"CE SERVICES ■ Wachovia Insurance Services will schedule, attend and participate in all semi- annual claim/file reviews. Our claims consultants will critique such areas as: - Compliance with Special Claim Handling Procedures. - Quality of Claims Investigation - Level of Supervision - Evaluate Reserves and Seek Decreases Where Warranted - Subrogation Efforts - Vendor Management - Litigation Management Plans for Future Handling If any deficiencies are identified during the review, we will expect an action plan from the claim service provider to correct the deficiencies. ■ Aid in the design of a Claim Management Information System (Loss Run Formatting). When Risk Managers identify their primary concerns, their need for accurate and timely information is consistently at the top of the list. Wachovia Insurance Services has long recognized that developing measurements that create and sustain senior management's interest in cost control efforts is the single greatest contribution a risk manager can make to the organization. Wachovia Insurance Services will aid City of Lubbock in evaluating a Claims Management Information System that fits the City's specific long-term goals. ■ Aid in the selection of a Workers Compensation Health Care Network. Our claim consultants will assist the City in evaluating the available Health Care Networks (HCN)to determine if their footprint and provider network is a good fit for the City. We will aid City of Lubbock in the evaluation process by awl a utilizing our knowledge and experience in this field as we are constantly evaluating RCN's and their provider networks. Hid +� t�Ac�€ovrA INSUP-4INCA: SERVICES Risk Control Services Overview Wachovia Insurance Services is committed to providing quality risk management loss control services. We know the City of Lubbock has put much effort and energy into loss control practice and desires the best effort and resources to maintain and enhance your success in reducing your exposure to risk. Wachovia's objectives will be to help: ❖ Reduce the potential for loss by providing advice and innovative solutions •:• Develop a cost-effective approach to loss control ❖ Address both present and future exposures ❖ Provide resources in the form of services that add value to the risk management decision process By understanding the nuances of your operation, we blend our activity with your existing needs. We will complement and enhance the good relationships that exist with your current, future and past carriers, and we are pleased to work with all of them. Integrated Risk Consulting Wachovia practices integrated risk consulting with claims and brokerage activities. This assures a uniform approach to increase effectiveness, reduce redundancies, and enhance cost efficiencies. L r, Wachovia's consulting philosophy is that our pre -loss and post -loss consultants work seamlessly with our clients and each other to produce a positive impact on the total cost of risk. Many times entities do not see the benefit of attacking the problem from a team prospective. We believe this provides our clients with the benefit of finding cost-effective solutions that achieve the highest return on investment. We believe the best way to achieve the results is through positive enforceable measurements that are fair but bring unwavering consequences to undesired behaviors. We will work with you to develop these measurements recognizing the need to bring value and not inhibit your business strategies. Account Management John Sileo, National Practice Leader, Risk Consulting Services is based in our Dallas office and serves as the single point Risk Control contact for the coordination of all risk control services. Mr. Sileo has worked with other such clients as Xerox, GTE, Becton Dickinson, ALLTEL, Nokia, The Freeman Companies, Dave & Busters, City of Plano, Leander ISD, and Corning, providing the day-to-day loss control services for them over a 28 year career. With his last employer, he was certified in emergency planning and business continuity planning. He also has available the entire breadth and depth of resources available from our Risk Control Consulting staff, as well as other Wachovia resources. Our expertise has shown that the better we understand your culture, the greater the impact we can have on providing world -class service. We will strive to: I uvsLzt�vc� scams ➢ Understand what is important to you ➢ Identify concerns you may have ➢ Learn about your needs ➢ Develop action plans ➢ Understand how the City functions ➢ Develop and implement a measurable service plan ➢ Assist in the development and monitoring of carrier loss control service ➢ Review and prioritize carrier recommendations ➢ Suggest alternative solutions to carrier recommendations ➢ Ensure consistent and uniform service. Experience HPR John also serviced major risk management clients in many industries from learning institutions such as Princeton, Yale, Columbia and New York Universities to municipalities to the telecommunication/high tech industry, assisting them in transit loss control, hazard identification, strategic risk assessment, and risk reduction methods. John is a graduate of the University of New Haven, with a Bachelors of Science Lv` degree in Fire Protection. John was a principal member of the National Fire Protection Association, izA Committee on Halogenated Fire Extinguishing Agent Systems, and a principal member of NFPA 76 TeIecommuriications n f o r dj-. Fdcommittee. In addition, he is an alternate member of the NFPA 750 committee, UA Water Mist. Besides being a member of the National Fire Protection Association, John belongs to local chapters of the Society of Fire Protection Engineers. He is also a member of the American Society of Safety Engineers and belongs to the National Cargo Security Council in Washington, DC. 01". Review of Services 0 In the past three years of service to the City as Broker of Record, risk control services have been provided by both Wachovia Insurance Services personnel and the risk control departments of the casualty and property insurers. Wachovia's loss control personnel did an initial risk control survey in 2003, and a risk control meeting in 2004. In 2005 we provided ongoing support and developed and implemented an Allocation Model. Wachovia successfully negotiated with St. Paul Travelers Public Sector Services (SPTPSS) to provide training sessions in Lubbock, and coordinated these sessions. Following the initial Risk Assessment for City of Lubbock in 2002 and Lubbock Power & Light in 2003, SPTPSS provided the following: A. Risk Management Fundamentals — San Antonio in 2003, Austin in 2005 t& Hot Pursuit Driving in 2004 46 Playground and Swimming Pool Evaluation in 2005 4 Hummer Test Track Evaluation in 2005 Ls��, n, f 0 r 4 Driver Training for Solid Waste drivers in 2005 4 Law Enforcement Civil Liability Seminar in March 2oo6. Wachovia was able to negotiate favorable terms for Boiler & Machinery coverage with Zurich Insurance Company following CNA's decision to non - renew their program in 2004. Zurich provided jurisdictional inspections to municipal locations owned by the City (Health Dept., Courthouse, Omni Theatre, Municipal Square, and Lubbock Business Center.) They assisted the City in getting overdue inspections completed and issued the state -required "Texas Operating Certificates" for boilers at each location. Zurich also provided jurisdictional inspections at three Power Generating Facilities (Brandon, Messengale, and Cooke). They were able to arrange inspections during scheduled outages. Zurich was contracted to oversee and approve all repairs and alterations made at these locations, including approval of the repair procedures, and review of the quality control program. Lexington Insurance Company, the primary property carrier, has also made risk control visits and provided recommendations to reduce exposure to property hazards. They pointed out areas where flammable materials needed to be properly stored, and recommended solutions. They identified sprinkler and fire suppression equipment that was overdue for inspection and servicing, and also recommended the installation of fire protection systems at the Water Plant. They advised on pro -active planning such as keeping spare parts on hand for the sprinkler systems — recommendations that have since been implemented. As a result of the teamwork of your Wachovia risk control professionals, City of Lubbock's risk management professionals, and the carriers' loss control specialists, the City's exposures to loss continue to be reduced. L PAI I 0 w.A��€avrA. INSUPANCE SERVICES Qualifications G p n (a). For each numbered (and/or lettered) item in the Scope of Services section, please provide a statement regarding the firm's ability to accomplish the indicated tasks. Describe the qualifications of the firm and the personnel to whom the task would be assigned. If the service can be provided, but with qualifications, state those qualifications specifically. 1. (a) Bob Bookhammer, ARM-P (b) John Sileo a. (a) Bob Bookhammer, ARM-P, Anne Street, CPCU, AU, Ray Loehr, CPCU, AIM, and selected practice group leaders from Wachovia Insurance Services' placement team (b) Bob Bookhammer, ARM-P, Anne Street, CPCU, AU & selected practice group leaders from Wachovia Insurance Services' risk management practice (c) Bob Bookhammer, ARM-P; Anne Street, CPCU, AU; & selected practice group leaders from Wachovia Insurance Services' risk management practice (d) Bob Bookhammer, ARM-P & selected practice group leaders from Wachovia Insurance Services' risk management practice (e) Bob Bookhammer, ARM-P & Anne Street, CPCU, AU (f) Bob Bookhammer, ARM-P & Anne Street, CPCU, AU (g) Anne Street, CPCU, AU & Kim Englett, ACSR (h) Bob Bookhammer, ARM-P, Anne Street, CPCU, AU; Kim Englett, ACSR;, and other selected Wachovia Insurance Services' practice group associates as required (i) Bob Bookhammer, ARM-P; Marc LaChey, AIC, AIM, ARM; & Teresa Cazares, ARM. (j) Bob Bookhammer, ARM-P & Anne Street, CPCU, AU Resumes for the professionals indicated above along with other associates within Wachovia Insurance Services that we feel will be beneficial to the CITY OF LUBBOCK are included in this response to the RFP. wAC�ovr,� INSURANCE SMIT CES (b). References with names, addresses, and telephone numbers. Please see the following pages for Wachovia Insurance Services references (c). Ability to provide a detailed breakdown of cost of services by year. Wachovia Insurance Services has the ability to provide a detailed breakdown of cost of services by year. (d). Any additional remarks/comments the company wishes to make to elaborate their proposal and qualifications. We are including for your reference the Wachovia Insurance Services Corporate Fact Sheet. 7773 L7--j WAOHOVTA INSURANCE SERVICES City of Lubbock Service Team Ray Loehr, CPCU, AIM Senior Property Consultant A Lisa Ouellette, CPCU Aviation Specialist John Sileo Risk Control Consultant Leisa Hutcheson, AIC Risk Management Coordinator I Robert S. Bookharnmer 111, ARM-P Senior Client Executive Douglas Sanford Co -Partner Sanford Insurance Agency I Anne Street, CPCU, AU Commercial Account Executive I -- [ — Kim — Englett, ACSR Commercial Account Associate Marc LaChey, AIC, AIM, ARM Senior Claims Consultant Teresa Cazares, ARM Risk Consulting Administrator George Dibbs Statistical Analyst "Solutions -Based Talent" wncxavrl. T7vwmA.m,,-m Rvmwons ROBERT S. BOOKHAMMER III, ARM-P Senior Client Executive National Public Entity Group Commercial Insurance Practice Group Dallas, Texas Education: Bachelor of Science in Business Administration Major: Risk Management University of Florida — 1981 Summary of Experience: Bob joined Wachovia Insurance Services in 1997. He is a Senior Client Executive in the Wachovia Insurance Services Commercial Insurance Practice Group and focuses on the Public Entity sector. This group focuses on clients whose cost of risk exceeds a minimum threshold of $500,000. These organizations tend to recognize and value the consultative approach and services provided by the Wachovia Insurance Services Commercial Insurance Division. Prior to joining Wachovia, Bob was a Senior Vice President with a large Dallas insurance brokerage who specialized in risk management accounts and alternative risk transfer products. He provided statistical, technical and claims oversight services for a multi -tenant captive and several other key commercial clients. Specific areas of technical specialization include loss development projections, sophisticated property placements, specific & aggregate reinsurance placements, alternative risk transfer program design and placement, reinsurance recovery, loss control oversight, claims management oversight, cost allocation services and client service plan development. Professional Achievements: Licensed Risk Manager — State of Texas Associate in Risk Management (ARM) Risk Management for Public Entities (RMPE 352) Pj 0 5'e1i"!E'o1'�d AfW*V4new+f9w Sanford Insurance Agency 6303 Indiana Avenue P.O. Box 64790 Lubbock, TX 79464-4790 Phone[ 806-792-5564 Fax 806-792-9344 Ernaih sanfordd@sanins.com w DOUGLAS SANFORD, CiC Co -Chief Executive Officer EDUCATION: Vanderbilt University Nashville, TN Graduated in 1970 BA Degree In Sociology SUMMARY OF EXPERIENCE: Douglas Is the Co -Chief Executive Officer of Sanford Insurance Agency and a principal (owner). He has been a full-time employee of Sanford since June 1970. Douglas has been the lead agent or co -agent on accounts such as the City of Lubbock, Covenant Health System, Glass Control, inc, Texas Tech University, Brandon & Clark and other complex accounts. Douglas has been published in Rough Notes and Texas Insurance Journal magazines and was a speaker at the National Association of independent Insurers National Underwriting on "The Return to Traditional Underwriting". Douglas is the Past President of the Independent Insurance Agents of Texas and Is past Texas National Director of the Independent Insurance Agents and Brokers of America. Douglas has been a member of the Texas Tech Continuing Education Staff, teaching insurance principles for Executive Directors of Non - Profit Organizations. Working with Senator Duncan, Douglas successfully petitioned for a change In the Charitable immunity Act of Texas to allow the benefits of the act to reach. more organizations. Douglas testified before Congressional Committees in the process. PROFESSIONAL ACHIEVEMENTS: Certified Insurance Councilor Ucensed Risk Manager —State of Texas w AGDRD, CERTIFICATE OF LIABILITY INSURANCE 12/1'9° PRODUCEIL {9D0}HBO-1428 FAX {512}472-1563 ONILYCANDICATE IS ISSUED AS� 014PERS NO RIGHTS �UPONRNFORMA THE ION IIAT Insurance Agency, Lac. HOLDER THIS CERTIFICATE DOES NOT AMEND, MMENO OR P.O. Sax 684487 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW 1115 San Jacinto #100 p„-4-4n TX 70768 INSURERS AFFORDING COVERAGE NAIC0 IrLwREO •W85 ort Ins. Co oration The San:Eard Agency, Tma. vsuRER RZ Po 1ja0c 64790 DOURER C: Ba Lubback TX '7 94 64 INSURER E: rn�ieva P_F3 • THE POLICIES OF INSURANCE, LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAFAEO ABOVE FOR THE POLICY PERIOD INWCATEM NaWITHSTANOING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTTFtCATE 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, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED 8Y PAID CLAIMS. �RSR AZM IJBA .OYFE OPINanuumE POLICY NUMBER CY �PP�°n DATEi1W ►p DATE4KMO710N UIdITS CENFAALOAMUTY OLCCURPERCC C EAOEACH PARRSEs resR tct nj E • DMA- ICIAL GENERAL UABILt1Y CLAIMS MADE ❑ ODCUR MED W ape PeMqnl.� Asb L INtuAY S ENEM ACD GATE, S OEN'LAGGREGAT'E LRGTAPPLIES PER P11001Mn• COMPIOP AGE 5 POLICY j LOC AUTOMOBILE UAaamY ANY AUTO CONBWE091NMetd$T IEt•I1 = BDOLYWURY tPer RNT" S ALLOWNFDAUTO: ArZMOULED AUTOS BODILY INJURY tPa x9aa1K1 a HIRGO AUTOS, N0ILmAa4EU AUTOS PROPERTY DAK&Or IPxaaddm0 s GARAGE LOAsaurt "TO ONLY •EA.%=m NT = OTHERTHAH D0 i ANY AUTO : AUTO ONLY: ABC QCESBILINBRQIA LIABILITY RRucp S OCCUR MAND I{AOE AGGREGATE S 6 11 Ds=TIWE RETEMIOU % WOMUMCOMPENSAIMNAN0 cRr S °ETi' E14PLOYOT UAMLI TY ANY PROPRJETDROPARTNERAOCECUTNI EL EA ADCJOE S E.L. DISEASE- 6A EMPLOYEE s DFFiCERA4EMBER WMLUOEDT JIyea,aeeedbe UrAW SP OV*I0Nrt-%- - FL.DSEA&T-PO LaN• - — L A OTHER S L 0 Liability Hn m 12/31/2005 12/31/2006 limit .ads elsi $3, 000,00 Agvicegace $3, 000, 00 • DedaetibLe aa, c1Aim 25 , 00 OESCIBPTIOII OP OPERATOIIBADGaTIOftSNBNICIF9IEXCLUS10H8 a00EG BT EIIDORSiONENTAPEpkL PROVL�ONB � . S'VTIDENCE OF COVERAGE :ANGELLATION SHOULD ANY OF TNG ABOVE DESCTBS® POLICIES BE CANCELLED BEFORE THE EXPIRATION DATI THRRIDF. THE IBRUNB INBWRER WRL ENDSWOR TO MAR. O DAYB WRnM NOTICE TO THE CERTIFICATE HOLDER NWW TO THE LEFT, BUT FAILURE TO OO 50 SHALL IMPOSE NO OBUGATION OR U&WLJTY OF ANY WHO UPON THE RMURER, ITS AGEIRB OR REPRESENTATIVES, AVTHDR¢® RH'RESEi David Sudas/SAC ACORD 2S (2001/0B) M-SWAIGIrAsed AMS VW WMI'vw Saeelua. ale. mmp;Taw -4ff---f"'— C ACORD CORPORAL ON 19; Pape 1, Y Y P IMPORTANT If the c_rtificata holder is an ADDITIONAL INSURED, the paUcy(es) must be endwrad. A statement an this certificate does not confer rights to the cardficate holder in lleu of such endersement(s). If SUBROGATION IS WAIVED, subject to the terms and condlllans of the policy, certain poileles may require an endotsament A statement on this certificate does not confer rights to the certificate holder In lieu of such andorsemedt(s). DISCLAIMER t . The Certificate of Insurance on the reverse aide of this form does not conafhute a contract between the Issuing Insurer(&), authorized representative or producer, and the certificate holder, nor does It af6mratively or negatively emend, extand or alter the coverage afforded by the policies listed thereon. I is i i r i ACORD 25 f2001JOB) f INS02513wer,o6 AMS papatd2 . R, I Ell, "Solutions -Based Talent" NOP wAcxovrl. TVWTRAN('.F. CR1W Wr,RR Anne A Street, CPCU, AU Commercial Account Executive Commercial Insurance Practice Group Dallas, Texas Chartered Property & Casualty Underwriter (CPCU) Associate in Commercial Underwriting (AU) Bachelor of Science, University of Illinois Anne joined Wachovia Insurance Services in 2003. She is a Commercial Account Executive in the Wachovia Commercial Insurance Practice Group and focuses on the Public Entity sector. Prior to joining Wachovia, Anne worked for a large commercial insurance company located in Dallas. She was a senior underwriter with a book of business that included a number of public entity clients as well as diverse other clients. With over 20 years in the insurance business, Anne brings knowledge and experience to her clients. She recently completed the Risk Management for Public Entities course, and continues her studies as part of her desire to increase her expertise. Customer service is her number one priority. "Solutions -Based Talent" Kimberly A. Englett, ACSR Technical Assistant Dallas, Texas Commercial Account Associate Commercial Insurance Practice Group Commercial Market Division Wachovia Insurance Services Dallas, Texas 0 WACHOVTA INSURANCE SERVICES Kim joined Wachovia Insurance Services in 2005. She is an Account Associate in the Wachovia Commercial Insurance Practice Group and works with Large Market & Public Entity Accounts. These clients recognize the strategic need for a consultative approach to risk management that the Wachovia Commercial Insurance Division provides. Prior to joining Wachovia, Kim worked for an insurance firm located in the Dallas area, where she managed middle market commercial accounts. Her focus was in commercial property, general liability, automobile, worker's compensation, umbrella, directors and officers liability, as well as specialty programs & office management. Kim's number one priority has always been customer service. Her responsibilities include managing day to day activities of accounts, including billing, certificates of insurance, endorsement processing and research. She also provides assistance in the preparation of submissions and proposals. Kim has over twenty-three years experience working in the insurance industry. Kim has earned her Accredited Customer Service Representative (ACSR) designation and also has her General Insurance License. "Solutions -Based Talent" w T7�Tf.TTRAN(:Tu fiT73i2VTC':F.fi RAY LOEHR, CPCU, AIM Senior Property Consultant Dallas, Texas Education: Bachelor of Liberal Arts Major: Economics Minor: Marketing University of Northern Iowa -Graduated with Honors Summary of Experience: Ray joined Wachovia Insurance Services in 2005. He is a Senior Property Consultant and member of the Wachovia National Property Practice. His focus is large property account broking and client service, encompassing domestic and global accounts. Prior to joining Wachovia, Ray's focus was large property broking for domestic, global and reverse -flow accounts while working in the national brokerage ranks. His expertise includes coverage analysis, placement structure, and exposure identification. His career began in reinsurance, included both facultative and automatic treaty products. Where practical, he works directly with reinsurers and reinsurance brokers to improve the quality and capacity of large placements. He often is involved in quota -shared and layered structures. Professional Achievements: Chartered Property & Casualty Underwriter (CPCU) designation Associate in Management (AIM) Certified Insurance Counselor (CIC) V CL SERVICES Aviation Resource Group Team Qualifications Wachovia Insurance Service's Aviation practice is committed to providing unparalleled levels of experience, service, and advice for our aviation clients. The following is an overview of our aviation colleagues: Bryan W. Schafer, CPCU — National Aviation Practice Leader (313)-202-3914 Bryan is Aviation Practice Leader and has overall responsibility for Wachovia Insurance Service's aviation practice. Prior to joining Wachovia Insurance Services, Bryan was the Regional Aviation Manager for Marsh's Midwest Region. Prior to that, he spent nearly fifteen years with Associated Aviation Underwriters, working as an underwriter in their New York, Atlanta, and Detroit branch offices. Bryan specializes in all areas of aviation insurance, including corporate industrial aid aircraft, commercial aircraft, ground services, aviation products liability and accident response planning. Bryan has a Bachelor's of Science Degree in Aeronautical Science from Embry -Riddle Aeronautical University in Daytona Beach, Florida and is also a commercially licensed, multi -engine and instrument rated pilot, and Advanced and Instrument Ground Instructor. He is also a member of the Aviation Insurance Association, the Experimental aircraft Association and the CPCU Society. Detroit Aviation Resource Group 94 Shawn M. Gratsch - Aviation Specialist (313)-202-3928 Shawn is an Aviation Specialist. She has account responsibility for aviation clients throughout the Midwest. Shawn has been in the insurance industry for 22 years, 20 of which have been dedicated to the aviation insurance industry. She began her insurance career with Marsh USA Inc. she was responsible for handling several Fortune 500 corporate aviation accounts throughout the Midwest. She also spent five years with a major competitor where in addition to Aviation Insurance she also focused on International and Property Insurance. Shawn is currently serving as the Education Officer of the Detroit Chapter of Women In Aviation and is also a member of the Aviation Insurance Association. Lisa M. Ouellette, CPCU - Aviation Specialist (313)-202-3924 Lisa is an Aviation Specialist and has account responsibility for aviation clients throughout the Midwest. She has been in the aviation insurance industry for 10 years. Prior to joining Wachovia Insurance Services, Lisa was an underwriter for Associated Aviation Underwriters and then an aviation specialist for Marsh. One of the areas that Lisa specializes in is aviation accident response planning. Lisa has a Bachelor of Science Degree in Aerotechnology from Bowling Green State University in Bowling Green, LOhio and is a licensed commercial pilot with multi -engine and instrument ratings. She is also a Certified Flight Instructor. f 1A !� 71�T$7Ji2ANCIL SERVIVt.S I SERVICES Atlanta Aviation Resource Group Barry S. Wolf - Aviation Specialist (404) 231-9595 Barry is an Aviation Specialist and has spent the past 10 years as an Insurance Broker responsible for new business production, marketing and servicing of aviation accounts. He has been involved with various accounts including airlines (both existing and new entrant airlines), corporate fleets, repair and overhaul facilities, parts resellers and flight training facilities. With over 20 years of extensive experience within the aviation industry, specifically 10 years as an in-house Risk Manager for a large aircraft leasing company, a FAA 145 Repair M1 Station and a FAA 121 passenger and cargo airline. Mr. Wolf is a graduate of the University of Florida with a major in Business Management and Finance. Mr. Wolf joined Wachovia Insurance Services of Florida, Inc. in 2001 as a Vice President - Aviation specializing in the development and administration of insurance and risk management programs for the aviation industry. James A. Harris, III "Tripp" - Aviation Specialist (404)-504-3063 Tripp is an Aviation Specialist. He has been in the insurance industry for 14 years, 11 years of which have been dedicated to the aviation insurance industry. He has spent a year working in the London Aviation Insurance marketplace, and the other 10 years with Marsh USA, where he was responsible for handling several Fortune 500 corporate aviation accounts throughout the Southeast. He also specialized and developed the aviation insurance and risk management programs across all aviation product lines for many other accounts with aviation exposures. Tripp is responsible for new business production, marketing and servicing of aviation accounts. Tripp has a Bachelor of Science Degree in Business Aviation from Auburn University. He also has his Private Pilot's License, and he served in the Alabama and Georgia Air National Guard as an Aircraft Armament Systems Specialist on the F-16 and F-15 aircraft. Richmond Aviation Resource Group wo Marshall L. Norton — Aviation Specialist (804)-267-3100 Mr. Norton is an Aviation Specialist and has over 30 years experience in insurance brokerage having worked for BB&T Insurance Services and prior to that 19 years with Johnson & Higgins in New York and Richmond. Marshall has specialized in marine and aviation insurance for his entire career. He was also manager of the [ Marine and Aviation Department of Johnson and Higgins in Richmond and served on National Aviation Practice Committee. r.i Mr. Norton holds a Bachelor of Arts, English and Art History from Lake Forest College, in Lake Forest, Illinois. A 0 WACHovrA INSURANCE SERVICES "Solutions -Based Talent" WAcgovr�, SMRVXCES JOHN A. SILEO Technical Practice Leader Risk Control Consulting Group Dallas, Texas Member of National Fire Protection Association (NFPA) — was Principal member of 12A Halon Principal member of NFPA 76 Telecommunications Alternate member of NFPA 750 Water Mist Professional Member — American Society of Safety Engineers OSHA General Industry Outreach Trainer National Cargo Security Council Bachelor of Science in Fire Protection —1977 - University of New Haven Associate in Electrical Engineering —1975 - Norwalk Technical College John joined Wachovia Insurance Services in 2003. He is a vice president in the risk control consulting group. John provides clients with assistance on ways to develop cost saving alternative business solutions. His knowledge includes transit loss control, hazard identification, business continuity planning, emergency response planning ,strategic risk assessment, behavioral safety security, workplace violence and risk reduction methods. Prior to joining Wachovia, John was the Risk Consulting Practice Leader for the Dallas -South operation of a large commercial broker. With responsibilities for the consulting operation covering Northern Texas, Arkansas and Oklahoma. He worked with major risk management and middle market clients in many areas that include: safety, fire protection, Highly Protected Risk (HPR), and security consulting, contingency planning etc. Specific industry experience includes high tech technology, telecommunications, trade show/convention, retail, healthcare, entertainment industry (casino operations) pulp and paper, and manufacturing risk. John has worked on many international accounts which has taken him to Europe, Canada, Medico, Brazil and Dominican Republic. During the years, he has acquired excellent knowledge of the insurance industry risk control methods. "Solutions -Based Talent" 0 WACHOTIA INS171ZANCE SEIRVICES MARC D. LACHEY Vice President Senior Claim Consultant Dallas, Texas Associate in Management Associate in Claims Associate in Risk Management Bachelor of Business Administration Maj or: Accounting Baylor University Mr. LaChey joined Wachoiva in 2003 as a Claims Consultant. He is responsible for assisting clients in managing losses and expenses arising from claims and contributing to the client's total cost of risk. Prior to joining Wachovia, Mr. LaChey was an Account Executive with Kemper Insurance. In that position, he was responsible for the installation and delivery of claim, data, loss control and medical management services to Kemper clients. Some of those clients included Angelica Corp., Graybar Electric, Quiktrip Corp., LDI, Ltd., ACE Cash Express, Netversant Solutions, Foodbrand America, EZ Corp. and Dave & Buster's. From 1995 to 1998, Mr. LaChey served as a Claim Consultant with Johnson & Higgins, later J&H Marsh. Between 1987 and 1995, Marc was a Liability Team Manager with Kemper Insurance. He began his insurance career as a personal lines adjuster with Texas Farm Bureau Insurance Companies in 1977. "Solutions -Based Talent" WACHOVTA INSXnRIkNCE SERVICES Teresa Cazares Risk Consulting Administrator Dallas, Texas Masters of Business Administration -Pursuing Concentration: Finance Southern Methodist University Bachelor of Business Administration Major: Organizational Behavior and Human Resource Management University of North Texas Texas Adjusters' All Lines License Professional Human Resource Associate in Risk Management Associations: National Hispanics with Masters of Business Administration-DFW Chapter Women in Business — SMU Chapter Ms. Cazares joined Wachovia in October of 2003. Prior to joining Wachovia, Ms. Cazares was employed with Marsh USA hic. in the Risk Consulting Practice. She was outsourced to a client's Risk Management Department as the Claim Coordinator for one of the largest motion picture exhibitors. She also proactively assisted assigned consultants with claim handling and notifications related to Employment Practice Liability, Workers' Compensation and General Liability. "Solutions -Based Talent" WACHOVI& INSi I"NCE SERVICES GEORGE DIBBS Casualty Technical Consultant Dallas, Texas Bachelor of Arts, Economics Queens College, City University of New York New York, New York Consults as technical analyst and resource for designing, evaluating, and implementing large risk casualty programs. Large risk casualty underwriting for three major insurance carriers constitutes the last 15 years of his 25 years of insurance experience. Large risk casualty program consulting includes design and negotiation of pricing, retention levels, loss aggregates, paid -loss program parameters, security levels, coverages and limits. Also, program contract/agreement analysis and negotiations are an important part of the process. Finally, analysis, pricing and coordination of loss control and claims handling services (on either a bundled or unbundled basis) completes the typical casualty risk management program. Experience includes the following industries: heavy contracting (commercial buildings, street and road contracting, etc.), oil field services, refining, healthcare, manufacturing, distribution, lodging and retail. George has been consulting for Palmer & Cay since November of 2003. F WACHovIrA INSUP.ANCE SEIV ICES CURRENT CLIENT REFERENCES Reference No. 1 Entity Name: City of Lubbock Location: P.O. Box 2000, Lubbock, TX 79457 Contact Person and Title: Ms. Leisa Hutcheson, Risk Management Coordinator Telephone No: 806-775-2277 Reference No. 2 Entity Name: Brazos River Authority Location: 460o Cobbs Drive, Waco, TX 76710 Contact Person and Title: Mr. Lupe Diaz, Administrative Services Manager Telephone No: 254-776-1441 Reference No. 3 Entity Name: City of Odessa Location: P.O. Box 4398, Odessa, TX 79760 Contact Person and Title: Mr. Darrell Wells, Director of Risk Management Telephone No: 432-335-4691 Reference No. 4 Entity Name: Ector County Location: logo E. 8`h Street, Ste. 520, Odessa, TX 79761 Contact Person and Title: Mr. David Austin, County Auditor Telephone No: 432-498-4099 Reference No. 5 Entity Name: Location: Contact Person and Title: Telephone No: Reference No. 6 Entity Name: Location: Contact Person and Title: Telephone No: L Dallas County Hospital District dba Parkland Hospital 5201 Harry Hines Blvd, Dallas, Texas 75235 Mr. Steve Roth, Associate General Counsel 214-590-4575 Katy Independent School District 6301 South Stadium Lane, Katy, TX 77492 Mr. Mike Robinson 281-396 Page i of 2 '0.9. �. L 1R . =-- �TA{CHOYiA IivS� rCE SERVIECES Reference No. 7 Entity Name: Leander Independent School District Location: 204 W. South Street, Leander, TX 78641 Contact Person and Title: Ms. Darla Humes, Risk Manager Telephone No: 512-434-5255 p Reference No. 8 ! Entity Name: Lewisville Independent School District Location: i800 Timbercreek Road, Lewisville, TX 75028 Contact Person and Title: Mr. Sam Russell Telephone No: 972-539-1551 a Reference No. 9 Entity Name: Plano ISD Location: 63oi Chapel Hill Blvd, Plano, TX 75093 Contact Person and Title: Ms. Cindy Loud, Risk Management Telephone No: 469-752-4755 �y4 L U'111' Page 2 of 2 L� W, %C%wVTA TwSxUtAMCM SERVICES PRIOR CLIENT REFERENCES Reference No. 1 Entity Name: Location: Contact Person and Title: Telephone No: Reference NO. 2 Entity Name: Location: Contact Person and Title: Telephone No: Reference NO. 3 Entity Name: Location: Contact Person and Title: Telephone No: City of Fort Worth i000 Throckmorton St., Fort Worth, TX 76102 Ms. Sue Haupt, Risk Manager 817-292-7761 Dallas County Schools 612 North Zang Blvd, Dallas, TX 75208 Mr. Ray Lanoux, Risk Manager 214-944-4545 City of Hurst 1505 Precinct Line Road, Hurst, TX 76054 Mr. Stephen Cole 817-788-7018 Legal Name: Established: Ownership: Revenue: Employees: Affiliated Entities: Locations: Industry Rank: Services: Corporate Office: Wachovia Insurance Services, Inc. 1994 Public (NYSE: WB) Wholly -owned subsidiary of Wachovia Corporation, the fourth largest bank holding company (based on assets) in the United States $400 million 1,800+ Barry Evans Joseph & Snipes Besso Limited 46 offices in 20 states and the District of Columbia 911' largest U.S. insurance broker (Business Insurance 7/05) Property & Casualty Insurance Brokerage Employee Benefits Consulting Executive Benefits Life Insurance Risk Management 227 West Trade Street, 151h Floor Charlotte, NC 28202 (704) 335-4541 Fax (704) 335-1011 www.wachoviainsurance.com CORPORATE OFFICE r�UQ i 227 West Trade Street, 15th Floor Charlotte, NC 282o2 (704) 335 - 4541 zoo Brookstone Centre Parkway Columbus, GA 31904 3348 Peachtree Road N.E., Suite 1400 (7o6) 576 - 6990 I Atlanta, GA 30326 (404) 231 - 9595 250 West Street, Suite zoo Columbus, OH 43215 44o1 Northside Parkway, Suite 4o0 (614) 458 -9600 Atlanta, CA 30327 FFF (77o) 850 - 0050 5956 Sherry Lane, Suite z000 1753 Pinnacle Drive Dallas, TX 75225 McLean, VA 22102 300 East Lombard Street, Suite 930 (214) 365 - 9150 703 - 76o - 6006 Baltimore, MD 21202 l (41o) 837 - 7800 300 River Place, Suite 2900 111 East Kilbourn Avenue, Suite 2600 Detroit, MI 48207 Milwaukee, WI 53202 50 Milk Street, 16th Floor (313) 259 - 2900 (414) 270 - 1861 WIS Select Call Center L1 Roston, MA 02109 r) 573 - 5700 775 Prairie Center Drive, Suite 450 666 Third Avenue, 17th Floor 7001 Chatham Center Drive, Suite 400 Eden Prairie, MN 55344 New York, NY 10017 Savannah, GA 31405 i76 Croghan Spur Road, Suite 300 (952) 983 - 5820 (212) 490 - 3883 (912) 447 - 7700 Charleston, SC 29407 (843) 573 - z6O0 499 Thornall Street, 9th Floor 1 Commercial Place, Suite 1350 16ogo Swingley Ridge Road, Suite 400 Edison, NJ o8818 Norfolk, VA 23510 St. Louis, MO 63017 610o Fairview Road, Suite 1400 (732) 632 - 9300 (757) 627 - 8241 (636) 519 - 6400 Charlotte, NC 28210 (704) 553 - 0419 4620 Grandover Parkway, Suite 110 Boo North Magnolia Avenue, Suite 1o6 1500 Mahan Drive, Suite i i i Greensboro, NC 27407 Orlando, FL 32803 Tallahassee, FL 323o8 6400 Fairview Road (336) 852 - 3005 (407) 650 - 9440 (850) 877 - 8181 Charlotte, NC 28210 (704) 366 - 8834 15 South Main St. 69oo College Blvd., Suite 300 4600 West Cypress Street, Suite zoo Greenville, SC 296oi Overland Park, KS 66211 Tampa, FL 33607 y 86 2 8z 6 1 0 00 81 z8 1 6 x zz7 West Trade Street, Suite 1550 ( 4) 55 - 5 (9 3) 345' S ( 3) 7 - 93 Charlotte, NC 28202 (704) 333 - 8461 10333 Richmond Ave., Suite 1150 i000 South Pine Island Road, Suite 225 14o1 H Street NW, Suite 750 Houston, TX 77042 Plantation, FL 33324 Washington, DC 20005 Ell 123 North Wacker Drive, 6th Floor (713) 86o - 4700 (954) 475 - 3600 (202) 783 - 5810 Chicago, IL 6o6o6 (312) 612 - 5400 76 South Laura Street, Suite i4co 2o1 King of Prussia Road, Suite 110 65 Willowbrook Boulevard Jacksonville, FL 32202 Radnor, PA 19o87 Wayne, NJ 07470 E4555 Lake Forest Drive (904) 633 - 9400 (610) 225 - z000 (973) 890 - 1818 650 Westlake Center Cincinnati, OH 45242 413 Northshore Drive SW 8540 Colonnade Center Drive, Suite r 11 1555 Palm Beach Lakes Blvd., Suite 1200 (513) 588 - 2800 Knoxville, TN 37919 Raleigh, NC 27615 West Palm Beach, FL 33401 (865) 588 - 7200 (919) 334 - 2700 (561) 688 - 7200 L166o West end St., Suite 700 Cleveland, OH 44113 36o East Vine Street 9020 Stony Point Parkway, Suite zoo 600 West Cuthbert Boulevard (216) 687 - 1200 Lexington, KY 40507 Richmond, VA 23235 Westmont, NJ o81o8 (859) 254 - 8023 (804) 267 - 3100 (856) 833 - 2400 1426 Main Street, 17th Floor Columbia, SC 29201 220 West Main Street, Suite 2000 25 Bull Street too North Main Street '3) 765-3510 Louisville, KY 40202 Savannah, GA 31401 Winston-Salem, NC 27101 (502) 562 - 9000 (912) 234 - 6621 (336) 732-2472 Solutions -Based Talent In today's rapidly changing environment, a conventional view is not the solution - you need strategic thinking, focused resources and a new perspective. RISK DISCIPLINES Casualty and Alternative Risk. Our dynamic, forward -thinking professionals focus on the most efficient risk financing options available. Our goal is optimization of the full range potential solutions available from both the insurance and reinsurance markets which are then tailored to your business needs. Continuing support for loss forecasting including accrual analysis are major advantages of our services. Property. Collectively, our property group has over 200 years of expertise in Fortune 500/Global Property solutions. We specialize in design, build, and service capabilities for domestic & global property, captive reinsurance as well as claims & engineering coordination. Industry specializations include Healthcare, Telecom, Utilities, Real Estate, Financial Institutions, Manufacturing, Retail, Chemical, & Agribusiness. Aviation. Our knowledgeable and innovative team, which consists of pilots, former aviation insurance underwriters, and other aviation risk management professionals provide clients with world -class brokerage and consulting services in the highly specialized area of aviation risk management. Executive Liability. Our practice, which is composed with many of the brightest in the industry, provides cutting edge expertise on coverage, pricing, and legislative activity providing the best possible protection for your officers & directors. Risk Consulting. Our highly experienced professionals focus on a comprehensive range of loss control and safety measures that can significantly impact the cost of injury, business interruption, litigation and insurance costs. We help you minimise your future cost of risk by providing customized solutions that support management of the variable costs using pre & post loss strategies. HUMAN CAPITAL DISCIPLINES Compensation. Customize Total Rewards strategy and design, from Executive and Deferred Compensation to Performance Management plans to meet client specific business objectives. Executive Benefits & Funding. Specialize in the design, implementation and servicing of plans to attract, retain and motivate senior executives. To maximize security to participants and mini*+,i�e the long-term cost to the company, we model cash flow, evaluate funding options and assess the accounting statement impact. Health & Welfare. Design, implement and oversee the financing and administration of group life, disability and health programs; as well as conduct compliance audits and PTO studies. In this difficult health care environment, Palmer & Cap is well positioned to assist employers in truly understanding health plan costs and developing "next generation" strategies to make an impact. To this end, we have combined two specialty skill sets — a sophisticated health plan data analysis tool with expertise from our Clinical Strategies group. Human Resources & Outsourcing Solutions. Design and implement fully integrated human resource programs. Specializing in strategic planning, M&A, reorganization, reengineering, employee life cycle management programs, cultural and process diagnostics, and human resources audits. Customized communications to deliver optimal return on benefits and human resource initiatives. In addition, we offer end -to -end human resource solutions by allowing clients to outsource discrete HR functions, resulting in lower overhead costs, better resource allocation, leveraged technology and access to a broad scope of expertise. Retirement. Actuarial, administrative, and benefit communication services for defined benefit pension and defined contribution plans [401(k), 403(b), 4571, postretirement medical and supplemental executive retirement plans. Voluntary Benefits. Independent consulting expertise to customize a turnkey solution that packages the benefit plans and carriers that best meet the needs of your associates and their families. We serve as a single -source solution providing our clients communications, enrollment and administrative services to tie together and deliver a client, not carrier driven, program. m WACHOVrA. INSU'RA:N�CE SERVICES Price Proposal and Contract Fee The price proposal and contract fee is a presentation of the proposer's total offering price including the cost for providing each component of the required goods or services. (Please be reminded, and address the fact, that all insurance policies obtained through the broker are net of commission.) Proposers should indicate the dollar amount that will be attributable to each line of coverage and each sub- contractor, if any. Wachovia Insurance Services, Inc. and Sanford Insurance Agency propose the following fee compensation structure for the CITY'S consideration and adoption: Proposed Good or Service Annual Fee Compensation Risk Management Consulting, Account s65,000 Management and Marketing Services as further defined and outlined in our RFP response, Quarterly Loss Review & Analysis, Statistical Loss Forecasting, Retention Analysis and Reserve Analysis. Risk Control Services (including Annual $15,000 Property Loss Control Meeting), Semi -Annual Claims/File Reviews, Claim Advocacy services as required by the City. TOTAL ANNUAL PROPOSED FEE $80,000 All insurance policies procured through Wachovia Insurance Services and Sanford Insurance Agency will be net of commission to Wachovia Insurance Services and Sanford Insurance Agency as required by the CITY. Wachovia Insurance Services and Sanford Insurance Agency will endeavor to place all policies directly with the selected insurance carriers. Certain coverages carried by the CITY will require the use of wholesalers who have contracts with specialized markets that only deal with wholesalers. Wachovia Insurance Services and Sanford Insurance Agency will request any wholesaler to negotiate their compensation fairly with our firm and the CITY. It is to the benefit of the CITY that Wachovia Insurance Services and Sanford Insurance Agency access all identified insurance carriers who specialize- in public entity coverages. Wachovia Insurance Services, Inc. and Sanford Insurance Agency respectfully request the option to renegotiate our client service fee if an unforeseen event causes an unexpected increase in our expenses incurred in carrying out our agreed client service contract to the CITY. Client Service Agreement P.&c FBaion 02 17 06 Fil This Client Service Agreement ("Agreement") is executed by Wachovia Insurance Services, Inc. ("Wachovia"), and City of Lubbock ("Client") to record their following agreement: 1. Purpose. The purpose of this Agreerr]ent is to establish an arrangement pursuant to which Client will compensate Wachovia in connection with its rendering of services, as described in the attached Exhibit A. 2. CgMVMn ation for Services. As compensation for the services rendered by Wachovia pursuant to this agreement, Client shall pay Wachovia a fee of s80,00o annually for services described in Exhibit A to be paid in full on inception. The fees being paid by Client are not part of the premium charged by the insurance company (ies) and these fees will be charged only if the Client consents in writing. It is understood that Wachovia Insurance Services, Inc. will not receive commissions / compensation from the insurance carriers for the policies that it places for Client as described in Exhibit B. In the event insurance coverage described in Exhibit B cannot be written on a no -commission basis or commissions are received by Wachovia, such commissions will be disclosed to you prior to placement for your approval. The fee paid to Wachovia shall not include any surplus lines, sales, use, excise or other taxes or related fees. All related fees and taxes except those based on the income of Wachovia are the responsibility of the Client and shall be separately billed. The fee paid to Wachovia shall not include fees charged by a wholesaler, intermediary or other parties used by Wachovia in the placement and service of coverage or programs for Client. All fees charged to Wachovia by a wholesaler, intermediary, or other party are the responsibility of the Client and shall be separately billed. In the event there is a significant change in the Client's operations (e.g., acquisition or merger), which affects the nature or scope of its insurance program, Wachovia and the Client both agree to renegotiate Wachovia's compensation in good faith as appropriate. 3. Term. This Agreement is for a term beginning on July 24, 2006 and ending on July 24, 2007. The Agreement may be extended by mutual agreement of both parties or terminated by either party by providing sixty days written notice. In the event this agreement is terminated before the expiration of its term, other than as a result of a breach by Wachovia, we will be deemed to have earned our annual compensation for that year in accordance with the following schedule: i00% upon inception. The unearned portion of the fees received by Wachovia shall be returned to the Client. Any unpaid portion of the earned fee shall be due and payable on termination of this Agreement. 4. Exclusive Understanding. This Agreement records the final, complete, and exclusive understanding between the parties with respect to Wachovia's rendition of services to Client and supersedes any prior or contemporaneous agreement, representation, or understanding, oral or written, by either of them, regarding that matter. S. Choice of Law and Forum Selection. The validity, construction, enforcement, and interpretation of this Agreement are governed by the laws of the State of Texas, excluding the laws of that state relating to the resolution of conflicts with laws of other jurisdictions. WACHOVIAINSTURANCE SERVICES Client Service Agreement P&C Edition 02 17 06 Wachovia Insurance Services, Inc. City of Lubbock By: By: Name: Name: Title: Title: Date: Date: WACHOVIAINSURANCE SERVICES it, Client Service Agreement P&c &d@ion 02 17 06 . Exhibit A i. Meetings a. Bi-monthly meetings to discuss and review: analysis of coverage, loss control, benefit design, exposure changes, claims, and general administrative matters with Human Resources/Risk Management staff as required. b. Annual property loss control meetings with Human Resources/Risk Management staff. 2. Consult and Coordinate a. Facilitate insurance company interface and coordination in the following areas: ♦ Renewal information format and market presentation ♦ Marketing of existing coverage ♦ Possible preparation of request for proposals ♦ Negotiate insurance contracts to assure best possible pricing b. Consult on selected special projects as requested by the CITY OF LUBBOCK. c. Explore coverage options on coverages not currently purchased by the CITY OF LUBBOCK for the CITY'S review. (subject to additional compensation as agreed by City and Broker.) d. Analyze the CITY OF LUBBOCK'S exposure to loss and review adequacies of coverage contained in existing policies and make appropriate risk recommendations. e. Assist the CITY OF LUBBOCK in reviewing all insurance policies, contracts, leases, and bonds as necessary. f. Provide service for day-to-day contact and advise on insurance matters as needed. g. Prepare certificate of insurance forms as requested h. Provide services as- normally and customarily required of a municipal property/casualty insurance broker. i. Assist the CITY OF LUBBOCK with their evaluation and selection of a Risk Management Insurance System (including Certificate Management) j. Perform exposure surveys with various City departments as identified by Human Resource/Risk Management department. WACHOVIAINST7RANCE SERvzCES Client Service Agreement P&C Edition 02 17 06 Exhibit B Insurance Lines Approved for Placement under this Agreement. Any insurance policy that is not listed below and has been purchased through Wachovia Insurance Services, Inc. is not covered by this agreement. Policy_/ Lines Property Property - John T Montford Dam Boiler & Machinery Inland Marine Crime General Liability Excess Liability Law Enforcement Public Entity Management Employment Practices Automobile Liability Airport Owners Liability Non -Owned Aircraft Liability Pipeline Liability Notary Bonds Public Official Bonds WACHOVIAINST DANCE SERVICES