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HomeMy WebLinkAboutExhibit1PROFESSIONAL SERVICES AGREEMENT This Agreement is entered into this day of , 2008 (but effective as of January 1, 2008) by and between the City of Miami, a municipal corporation of the State of Florida ("City") and Brown and Brown of Florida, Inc., a Florida corporation ("Provider"). RECITAL A. The City has issued a Request for Letters of Interest ("RFLI") for the provision of insurance brokerage services ("Services") and Provider's proposal ("Proposal"), in response thereto, has been selected as the most qualified proposal for the provision of the Services. The RFLI and the Proposal are sometimes referred to herein, collectively, as the Solicitation Documents, and are by this reference incorporated into and made a part of this Agreement. B. The Commission of the City of Miami, by Resolution No. , adopted on , approved the selection of Provider and authorized the City Manager to negotiate an agreement with an initial period of one (1) year with the option to extend the agreement for four (4) additional one (I) year periods; and C The Commission of the City of Miami, by Resolution No. , adopted on authorized the City Manager to execute this Agreement under the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, Provider and the City agree as follows: TERMS 1. RECITALS: The recitals are true and correct and are hereby incorporated into and made a part of this Agreement. o,14 07)4617 2. TERM: The term of this Agreement shall be for one (1) year, commencing on the effective date hereof. 3. OPTION TO EXTEND: The City shall have the option to extend the term hereof for four (4) additional one (1) year periods, subject to availability and appropriation of funds. City Commission approval shall not be required 4. SCOPE OF SERVICE: A. Provider agrees to provide the Services as specifically described, and under the special terms and conditions set forth in Attachment "A" hereto by this reference is incorporated into and made a part of this Agreement. B. Provider represents and warrants to the City that: (i) it possesses all qualifications, licenses and expertise required under the Solicitation Documents for the performance of the Services; (ii) it is not delinquent in the payment of any sums due the City, including payment of permit fees, occupational licenses, etc., nor in the performance of any obligations to the City; (iii) all personnel assigned to perform the Services are and shall be, at all times during the term hereof, fully qualified and trained to perform the tasks assigned to each; and (iv) the Services will be performed in the manner described in Attachment "A". 5. COMPENSATION: A. The amount of compensation payable by the City to Provider shall be based on the rates and schedules described in Attachment "B" hereto, which by this reference is incorporated into this Agreement; provided, however, that in no event shall the amount of compensation exceed $106,250.00 per year. The annual fee shall be inclusive of all fees and costs payable by the City to Provider for Services. B. Unless otherwise specifically provided in Attachment "B", payment shall be made within forty-five (45) days after receipt of Provider's invoice, which shall be accompanied by CoM:Brown & Brown Professinal Service Agreement 2 sufficient supporting documentation and contain sufficient detail, to allow a proper audit of expenditures, should City require one to be performed. 6. OWNERSHIP OF DOCUMENTS: Provider understands and agrees that any information, document, report or any other material whatsoever which is given by the City to Provider or which is otherwise obtained or prepared by Provider pursuant to or under the terms of this Agreement is and shall at all times remain the property of the City. Provider agrees not to use any such information, document, report or material for any other purpose whatsoever without the written consent of City, which may be withheld or conditioned by the City in its sole discretion. During this Agreement and for at least ten (10) subsequent years, Provider shall provide City access to al] files and records maintained on City's behalf. 7. AUDIT AND INSPECTION RIGHTS: A. The City may, at reasonable times, and for a period of up to three (3) years following the date of final payment by the City to Provider under this Agreement, audit, or cause to be audited, those books and records of Provider which are related to Provider's performance under this Agreement. Provider agrees to maintain all such books and records at its principal place of business for a period of three (3) years after final payment is made under this Agreement. B. The City may, at reasonable times during the term hereof, inspect Provider's facilities and perform such tests, as the City deems reasonably necessary, to determine whether the goods or Services required to be provided by Provider under this Agreement conform to the terms hereof and/or the terms of the Solicitation Documents, if applicable. Provider shall make available to the City all reasonable facilities and assistance to facilitate the performance of tests or inspections by City representatives. All tests and inspections shall be subject to, and made in accordance with, the provisions of Section 18-100 of the Code of the City of Miami, Florida, as same may be amended or supplemented, from time to time. CoM:Brown & Brown Professinal Service Agreement 3 8. AWARD OF AGREEMENT: Provider represents and warrants to the City that it has not employed or retained any person or company employed by the City to solicit or secure this Agreement and that it has not offered to pay, paid, or agreed to pay any person any fee, commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection with, the award of this Agreement. 9. PUBLIC RECORDS: Provider understands that the public shall have access, at all reasonable times, to all documents and information pertaining to City contracts, subject to the provisions of Chapter 119, Florida Statutes, and agrees to allow access by the City and the public to all documents subject to disclosure under applicable law. Provider's failure or refusal to comply with the provisions of this section shall result in the immediate cancellation of this Agreement by the City. 10. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS: Provider understands that agreements between private entities and local governments are subject to certain laws and regulations, including laws pertaining to public records, conflict of interest, record keeping, etc. City and Provider agree to comply with and observe all applicable laws, codes and ordinances as they may be amended from time to time. 11. INDEMNIFICATION: Provider shall indemnify, defend and hold harmless the City and its officials, employees and agents (collectively referred to as "Indemnitees") and each of them from and against all loss, costs, penalties, fines, damages, claims, expenses (including attorney's fees) or liabilities (collectively referred to as "Liabilities") by reason of any injury to or death of any person or damage to or destruction or loss of any property arising out of, resulting from, or in connection with (i) the performance or non-performance of the Services contemplated by this Agreement which is or is alleged to be directly or indirectly caused, in whole or in part, by any act, omission, default or negligence (whether active or passive) of Provider or its employees, agents or subcontractors (collectively referred to as "Provider"), CoM:Brown & Brown Professinal Service Agreement 4 regardless of whether it is, or is alleged to be, caused in whole or part (whether joint, concurrent or contributing) by any act, omission, default or negligence (whether active or passive) of the Indemnitees, or any of them or (ii) the failure of the Provider to comply with any of the paragraphs herein or the failure of the Provider to conform to statutes, ordinances, or other regulations or requirements of any governmental authority, federal or state, in connection with the performance of this Agreement. Provider expressly agrees to indemnify and hold harmless the Indemnitees, or any of them, from and against all liabilities which may be asserted by an employee or former employee of Provider, or any of its subcontractors, as provided above, for which the Provider's liability to such employee or former employee would otherwise be limited to payments under state Workers' Compensation or similar laws. 12. DEFAULT: If Provider fails to comply with any term or condition of this Agreement, or fails to perform any of its obligations hereunder, then Provider shall be in default. Upon the occurrence of a default hereunder the City, in addition to all remedies available to it by law, may immediately, upon written notice to Provider, terminate this Agreement whereupon all payments, advances, or other compensation paid by the City to Provider while Provider was in default shall be immediately returned to the City. Provider understands and agrees that termination of this Agreement under this section shall not release Provider from any obligation accruing prior to the effective date of termination. Should Provider be unable or unwilling to commence to perform the Services within the time provided or contemplated herein, then, in addition to the foregoing, Provider shall be liable to the City for all expenses incurred by the City in preparation and negotiation of this Agreement, as well as all costs and expenses incurred by the City in the re - procurement of the Services, including consequential and incidental damages. 13. RESOLUTION OF CONTRACT DISPUTES: Provider understands and agrees that all disputes between Provider and the City based upon an alleged violation of the terms of this Agreement by the City shall be submitted to the City Manager for his/her resolution, prior to CoM:Brown & Brown Professinal Service Agreement 5 Provider being entitled to seek judicial relief in connection therewith. In the event that the amount of compensation hereunder exceeds $50,000.00, the City Manager's decision shall be approved or disapproved by the City Commission. Provider shall not be entitled to seek judicial relief unless: (i) it has first received City Manager's written decision, approved by the City Commission if the amount of compensation hereunder exceeds $50,000.00, or (ii) a period of sixty (60) days has expired, after submitting to the City Manager a detailed statement of the dispute, accompanied by all supporting documentation (ninety (90) days if City Manager's decision is subject to City Commission approval); or (iii) City has waived compliance with the procedure set forth in this section by written instruments, signed by the City Manager. 14. CITY'S TERMINATION RIGHTS: A. The City shall have the right to terminate this Agreement, in its sole discretion, at any time, by giving written notice to Provider at least five (5) business days prior to the effective date of such termination. In such event, the City shall pay to Provider compensation for Services rendered prior to the effective date of termination. In no event shall the City be liable to Provider for any additional compensation, other than that provided herein, or for any consequential or incidental damages. B. The City shall have the right to terminate this Agreement, without notice to Provider, upon the occurrence of an event of default hereunder. In such event, the City shall not be obligated to pay any amounts to Provider and Provider shall reimburse to the City all amounts received while Provider was in default under this Agreement.. 15. INSURANCE: Provider shall, at all times during the term hereof, maintain such insurance coverage as stated in Attachment D, which is incorporated by reference and made a part of this Agreement. All such insurance, including renewals, shall be subject to the approval of the City for adequacy of protection and evidence of such coverage shall be furnished to the City on Certificates of Insurance indicating such insurance to be in force and effect and CoM:Brown & Brown Professinal Service Agreement 6 providing that it will not be canceled during the performance of the Services under this contract without thirty (30) calendar days prior written notice to the City. Completed Certificates of Insurance shall be filed with the City prior to the performance of Services hereunder, provided, however, that Provider shall at any time upon request file duplicate copies of the policies of such insurance with the City. If, in the judgment of the City, prevailing conditions warrant the provision by Provider of additional liability insurance coverage or coverage which is different in kind, the City reserves the right to require the provision by Provider of an amount of coverage different from the amounts or kind previously required and shall afford written notice of such change in requirements thirty (30) days prior to the date on which the requirements shall take effect. Should the Provider fail or refuse to satisfy the requirement of changed coverage within thirty (30) days following the City's written notice, this Contract shall be considered terminated on the date that the required change in policy coverage would otherwise take effect. 16. NONDISCRIMINATION: Provider represents and warrants to the City that Provider does not and will not engage in discriminatory practices and that there shall be no discrimination in connection with Provider's performance under this Agreement on account of race, color, sex, religion, age, handicap, marital status or national origin. Provider further covenants that no otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, age, handicap, marital status or national origin, be excluded from participation in, be denied Services, or be subject to discrimination under any provision of this Agreement. 17. MINORITY AND WOMEN BUSINESS AFFAIRS AND PROCUREMENT PROGRAM: The City has established a Minority and Women Business Affairs and Procurement Program (the "M/WBE Program") designed to increase the volume of City procurement and contracts with Blacks, Hispanic and Women -owned business. The M/WBE Program is found in Ordinance No. 10062, a copy of which has been delivered to, and receipt of CoM:Brown & Brown Professinal Service Agreement 7 which is hereby acknowledged by, Provider. Provider understands and agrees that the City shall have the right to terminate and cancel this Agreement, without notice or penalty to the City, and to eliminate Provider from consideration and participation in future City contracts if Provider, in the preparation and/or submission of the Proposal, submitted false of misleading information as to its status as Black, Hispanic and/or Women owned business and/or the quality and/or type of minority or women owned business participation. 18. ASSIGNMENT: This Agreement shall not be assigned by Provider, in whole or in part, without the prior written consent of the City's, which may be withheld or conditioned, in the City's sole discretion. 19. NOTICES: All notices or other communications required under this Agreement shall be in writing and shall be given by hand -delivery or by registered or certified U.S. Mail, return receipt requested, addressed to the other party at the address indicated herein or to such other address as a party may designate by notice given as herein provided. Notice shall be deemed given on the day on which personally delivered; or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. If to Provider: Steve Farmer Brown and Brown of Florida, Inc. 220 South Ridgewood Avenue Daytona Beach, FL 32114 If to City: Pedro G. Hernandez, City Manager City of Miami 3500 Pan American Drive Miami, Florida 33133 With copies to: Jorge L. Fernandez, City Attorney City of Miami 444 S.W. 2nd Avenue, Suite 945 Miami, Florida 33130 LeeAnn R. Brehm, Director of Risk Management City of Miami 444 S.W. 2nd Avenue, Ninth Floor Miami, Florida 33130 CoM:Brown & Brown Professinal Service Agreement 8 20. MISCELLANEOUS PROVISIONS: A. This Agreement shall be construed and enforced according to the laws of the State of Florida. B. Title and paragraph headings are for convenient reference and are not a part of this Agreement. C. No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. D. Should any provision, paragraph, sentence, word or phrase contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the State of Florida or the City of Miami, such provision, paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable, then same shall be deemed severable, and in either event, the remaining terms and provisions of this Agreement shall remain unmodified and in full force and effect or limitation of its use. E. This Agreement constitutes the sole and entire agreement between the parties hereto. No modification or amendment hereto shall be valid unless in writing and executed by properly authorized representatives of the parties hereto. 21. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representatives, successors, or assigns. 22. INDEPENDENT CONTRACTOR: Provider has been procured and is being engaged to provide Services to the City as an independent contractor, and not as an agent or CoM:Brown & Brown Professinal Service Agreement 9 employee of the City. Accordingly, Provider shall not attain, nor be entitled to, any rights or benefits under the Civil Service or Pension Ordinances of the City, nor any rights generally afforded classified or unclassified employees. Provider further understands that Florida Workers' Compensation benefits available to employees of the City are not available to Provider, and agrees to provide workers' compensation insurance for any employee or agent of Provider rendering Services to the City under this Agreement. 23. CONTINGENCY CLAUSE: Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and the Agreement is subject to amendment or termination due to lack of funds, reduction of funds and/or change in regulations, upon thirty (30) days notice. 24. REAFIRMATION OF REPRESENTATIONS: Provider hereby reaffirms all of the representations contained in the Solicitation Documents. 25. ENTIRE AGREEMENT: This instrument and its attachments constitute the sole and only agreement of the parties relating to the subject matter hereof and correctly set forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. 27. PERSONNEL: Provider agrees to assign the personnel specified in Attachment C, which is incorporated by reference and made a part to this Agreement, to perform the Services listed in Attachment A of this Agreement. It is understood that the involvement of a consultant in the City's risk management and insurance program in no way lessens or changes Provider's duties and responsibilities. INTENTIONALLY LEFT BLANK CoM:Brown & Brown Professinal Service Agreement 10 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their respective officials thereunto duly authorized, this the day and year above written. "Provider" ATTEST: Brown and Brown of Florida, Inc, a Florida corporation Print Name: Title: Corporate Secretary By: Print Name: Title: President "City" CITY OF MIAMI, a municipal ATTEST: corporation By: Priscilla A. Thompson, City Clerk Pedro G. Hernandez, City Manager APPROVED AS TO FORM AND APPROVED AS TO INSURANCE CORRECTNESS: REQUIREMENTS: Jorge L. Fernandez LeeAnn R. Brehm, SPHR City Attorney Risk M-anagemen- Drr-eeto — CoM:Brown & Brown Professinal Service Agreement 11 ATTACHMENT A — SCOPE OF SERVICES I. PURPOSE This is an Agreement for specified Services whereby the City retains Provider and Provider accepts the City's retainer, to perform insurance brokerage services as more fully set forth below. II. PROVIDER'S DUTIES 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, casualty and liability coverage, as well as processing policy change endorsements, policy review and audits, and monitoring claims. Services would also be required to manage insurances currently held by the City, and for insurances being sought by the City during the term of the Agreement. Attachment E, which is incorporated by reference and made a part hereof, depicts the insurance coverages to be handled within the Agreement for insurance brokerage services. In addition to the insurance coverages specified in Attachment E, Provider shall provide to the City the following Services: 1. Act as City's insurance broker regarding the negotiation of coverage terms and premiums, and the placement of coverage with insurers. 2. Review the insurance policies for compliance with the insurers' proposals and City's specifications and obtain revisions when needed in a timely manner. 3. Check the accuracy of each binder, certificate, endorsement, premium audit or adjustment or other document received from City's insurers and obtain revisions when needed in a timely manner. 4. Promptly submit originals of the insurance policies and endorsements to City. 5. Prepare certificates of insurance as requested by City. 6.--P-repare a schedule of City's insurance_po.ltcies including_the_name of the insurer, policy number, term, limits, summary of coverages provided, deductibles/retentions and the estimated annual premium. 7. Keep City informed of changing conditions in the insurance marketplace. 8. Monitor the financial strength of the insurers providing City's coverages' and inform City of adverse developments. Provider to provide City with information available from authorities evaluating or monitoring insurance companies. CoM:Brown & Brown Professinal Service Agreement 12 9. Develop and execute an insurance coverage marketing strategy. However, Provider will not approach any insurance company on behalf of the City without the express written consent of the City. 10. Assist City in developing and maintaining the underwriting information necessary to market the insurance coverages. 11. Provide loss control assistance, including risk evaluation by Provider's loss control specialists for no less than 4 hours each month. 12. Monitor the loss control assistance provided by City's insurers, evaluate the recommendations submitted by the insurers and negotiate amendments, if appropriate. 13. Provide detailed loss data both directly from the insurer and from Provider's own database on a monthly basis with an annual recap of all losses. 14. Analyze City's loss data to determine trends in causes, types of injuries and sites of incidents. A report, including graphics, is to be provided on a quarterly basis. 15. Provide reserves estimates and basis of their computation in a form which is satisfactory to City's auditors for year end audit purposes for workers' compensation and general liability where the City is self -insured. 16. Monitor the claims services provided by City's insurers and assist City in adjusting and settling claims including the preparation of proofs of loss on a timely basis. 17. Develop and monitor procedures to assist City in submitting timely reports of values. 18. Attend meetings with City's personnel as may reasonably be requested by City. 19. Review contracts as requested by City, comment on the insurance hold/harmless indemnification, subrogation and other risk transfer provisions therein, and obtain revisions to City's insurance policies as required. 20. Furnish continuing advice and counsel to City as appropriate, including but not limited to, alternate methods for meeting the City's requirements for its insurance programs. 21. Provide any other Services as normally and customarily required of an insurance broker for a public entity. III. REPORT No later than ninety days prior to the expiration of the term of this Agreement, Provider shall submit a written report to City detailing Provider's activities conducted for the City during the current term. The report shall include a statement of the approximate time spent by each brokerage employee on City's account during the current term, a discussion CoM:Brown 8 Brown Professinal Service Agreement 13 of any known problems and recommendations for solutions to those problems. The report shall also include a proposal for services for a subsequent term, an insurance coverage marketing strategy and a listing of objectives to be accomplished. If however, this Agreement is not renewed, Provider shall provide City with a summary of outstanding items, including endorsements not yet received by Provider which have been ordered from the insurance company and Provider shall submit all original policies and any additional documentation necessary for the City to transfer the City 's insurance programs to another insurance broker. CoM:Brown & Brown Professinal Service Agreement 14 ATTACHMENT B - COMPENSATION As full compensation to Provider for the Services rendered hereunder, City shall pay Provider an annual fee of $106.250, of which one-fourth, $26.563, shall be remitted to Provider on a quarterly basis. In the event that the City exercises its option to extend this Agreement as provided in Section 3 of this Agreement, the annual fee for the optional year(s) shall be $106,250. It is the intent of both parties to this Agreement that the annual fee is the sole remuneration to the Provider relating to the Services described in Attachment A. Provider is to disclose any remuneration received from insurers, wholesalers, intermediaries, affiliated companies and subsidiary companies regarding the insurance coverages specified in Attachment E, or any additional coverage subsequently bound on behalf of the City by Provider during the terms and extended term of this Agreement, and all such remuneration will be credited against the annual fee. Charges for any additional Services not covered in this Agreement will be negotiated in advance and may require approval by the City Manager and/or City Commission. CoM:Brown & Brown Professinal Service Agreement 15