HomeMy WebLinkAboutPR 16647: CONTRACT WITH RWL GROUP FOR RISK MANAGEMENT CONSULTING SERVICES CITY OF PORT ARTHUR
SAFETY & RISK MANAGEMENT
MEMORANDUM
TO: Stephen B. Fitzgibbons, City Manager
FROM: Lisa Cotten, Safety & Risk Management Coordinator
DATE: August 24, 2011
SUBJECT: Resolution Approving the Renewal of RWL Group Risk Management Service
Contract
COMMENT
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 16647 authorizing the renewal of the City's
contract with RWL Group for Risk Management Consulting Services at the not -to- exceed cost of
$18,000 for the 2011 -2012 Fiscal Year, with the option to extend the contract at the current rates
with no changes by up to three years (Exhibits "A" and "B" attached).
This represents essentially a rollover of the existing contract with RWL Group. Three years ago,
the hourly rate increased from $175 per hour to $200 per hour, which represented the first hourly
rate increase in approximately twenty five years.
It should be noted that the City expended only $6,604.00 to date on services from RWL Group
during the 2010 -2011 Fiscal Year.
BACKGROUND:
Mr. Lazarus' first risk management services contract with the City dates back to 1983. Since that
time Mr. Lazarus and his staff have consistently provided all departments of the City with quality
risk management services. Some of the services provided by Mr. Lazarus and his staff include
assisting with claims /lawsuits wherein coverage is in dispute, preparing bid specifications for the
City's insurance lines, reviewing bids received and subsequently recommending the carrier to
provide insurance coverage, assisting with difficult worker's compensation claims, responding to
insurance questions from all City departments, etc. (Exhibit "C" attached).
Three years ago, RWL Group requested a raise in the hourly rate from $175 per hour to $200 per
hour. This was the first increase in the hourly rate in approximately twenty five years. City staff
reviewed and concurred with this reasonable request.
BUDGETARY /FISCAL EFFECT:
The proposed funding is as follows:
General Liability Insurance Fund 612- 1702 - 581.52 -00 $18,000
There was $18,000 appropriated in the 2011 -2012 Fiscal Budget for Risk Management Services.
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
Stephen B. Fitzgibbons, City Manager
August 24, 2011
Page 2 of 2
STAFFING /EMPLOYEE EFFECT:
No effect on staffing levels.
SUMMARY:
I recommend approval of Proposed Resolution No. 16647 authorizing the renewal of the City's
contract with RWL Group for Risk Management Consulting Services at the not -to- exceed cost of
$18,000 for the 2011 -2012 Fiscal Year, with the option to extend the contract at the current rates
with no changes by up to three years (Exhibits "A '' and "B" attached).
This represents essentially a rollover of the existing contract with RWL Group. Three years ago,
the hourly rate increased from $175 per hour to $200 per hour, which represented the first hourly
rate increase in approximately twenty five years.
It should be noted that the City expended only $6,604.00 to date on services from RWL Group
during the 2010 -2011 Fiscal Year.
Attachments
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
P.R. No. 16647
8/24/11 LJC
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH RWL GROUP FOR RISK MANAGEMENT CONSULTING
SERVICES AT THE NOT TO EXCEED COST OF $18,000
FOR THE 2011 -2012 FISCAL YEAR
FUNDING BY: General Liability Insurance Fund
612- 1702- 581.52 -00
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the City Manager of the City of Port Arthur, Texas is hereby authorized to
enter into a contract for risk management consulting services with RWL Group for the
2011 -2012 fiscal year, with the option to extend the contract at the current rates with no
changes by up to three years, in accordance with the attached contract describing
services made part hereof as Exhibit "A "; and,
THAT said contract is an exact duplicate of a City Standard Form Contract except
for the changes described in the Certificate of Standard Form Contract, a copy of which is
attached hereto as Exhibit "B" and is hereby incorporated by reference, and said changes
are hereby approved; and,
THAT the City Manager is hereby authorized to expend funds from the General
Liability Insurance Fund for said contract not to exceed the amount of Eighteen Thousand
and no /100 Dollars ($ 18,000); and,
THAT said agreement is contingent on the availability of funds in the 2011 -2012
fiscal year budget, to be approved by the City Council; and,
THAT a copy of the caption of this Resolution be spread upon the Minutes of the
City Council.
P.R. No. 16647
8/24/11 LJC
Page 2 of 2
READ, ADOPTED, AND APPROVED this day of , A.D., 2011, at
a _Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES: Mayor , Councilmembers
NOES: .
Deloris "Bobbie" Prince, Mayor
ATTEST:
City Secretary
APPROVED A• 0 ORM:
/ I / f
City Attor Mgr - dip
P IROVED FO VAILABILITY OF FUNDS:
L ---- 1 <-1'
E3irector of Finance
APPROVED FOR ADMINISTRATION:
City Manager
THE STATE OF TEXAS Exhibit "A"
COUNTY OF JEFFERSON
CONTRACT
FOR PROFESSIONAL RISK MANAGEMENT SERVICES
THIS AGREEMENT, entered into as of this 1 day of October , AD,
2011, by and between the City of Port Arthur, Port Arthur, Texas, (hereinafter
called the "CITY" or "OWNER ") acting herein by its Mayor, duly authorized by
Resolution of the City Council, the City of Port Arthur and RWL GROUP
(hereinafter called the "CONSULTANT ") acting herein by Robert W. Lazarus its
President (Name and Office or Position) hereunto duly authorized:
WITNESSETH THAT:
WHEREAS, the CITY desires to engage the CONSULTANT to (1) render
certain technical and professional services hereafter described in "Scope of
Services" or (2) perform certain work hereafter described in "Scope of Services ":
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Employment of CONSULTANT
The CITY hereby agrees to engage the CONSULTANT and the
CONSULTANT hereby agrees to perform the "Scope of Services" hereinafter set
forth.
2. Scope of Services
Consulting services shall be provided as follows:
A. BASIC SERVICES
I. Monitoring: CONSULTANT will review all of the renewal
property and casualty insurance coverage for compliance with
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CITY's specifications and will provide a written description of
any discrepancies.
II. Risk Management Administration: CONSULTANT will provide
technical assistance to the CITY for the purpose of developing,
implementing and monitoring an appropriate risk management
administrative plan. Services to include:
a. Communication of underwriting claims, loss control,
financial, statistical, insurance, exposure, and other
information to appropriate internal and external persons
and organizations.
b. Assist CITY in preparing administrative controls and
monitoring of claims, loss control, insurance purchasing,
subrogation, contractual risk transfer, purchases of self -
insurance and related services from external providers,
(Le. claims, loss control, statistical, etc.)
c. Assist CITY in formulating record keeping practices that
impact upon such things as claims, losses, premiums,
expenses, coverage, certificates of insurance, and loss
control activities, etc.
d. Assist CITY in developing forms and formats to be
considered for information storage and management.
e. Assist CITY in developing and advising on important
administrative functions pertaining to internal cost
allocation, budgeting, self- insurance decisions, self -
insurance funding and accounting, agent selection,
insurance purchasing, utilization of external services
provided by carriers and agents, as well as other related
services purchased from external sources, plus
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effectiveness of using internal resources in conjunction
with risk management programs needs, etc.
f. Assist in developing organizational policies and
procedures, plus staff and resource considerations
relative to establishing a more effective and formal
climate for managing the risk management function. This
element will include specific recommendations with
respect to the requisite management disciplines to be
utilized by the CITY in conjunction with the administration
of its risk programs.
g. The CONSULTANT also agrees, at request of CITY, to
making office visits and prepare reports pertaining to
these visits to accomplish tasks identified in (a) through
(f).
III. Preparation of Insurance Specifications and Evaluations of Bid
Proposals. CONSULTANT agrees to rebid any insurance
coverage deemed necessary by CITY Management; provided,
however, that the parties intend that specifications be written
only once for any line of insurance; in the event that it is
necessary to rebid a particular line, the parties shall agree in
writing to an additional fee, which shall not exceed $200 per
hour, to the extent that the CONSULTANT's time exceeds the
maximum allowance provided in the contract for preparation of
bid specifications. In connection with the evaluation of bid
proposals, CONSULTANT agrees to provide a recommendation
for City Council consideration.
IV. Compensation: Consultant's compensation for Basic Services
shall be as set forth in Paragraph 5.
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B. ADDITIONAL SERVICES
Description of Work: All work performed by CONSULTANT at
request of OWNER which is either described in this paragraph
or not included in the Basic Services defined above, shall
constitute Additional Services. These shall include:
a. Any work undertaken as an expert witness or in
connection with litigation or other controversies, such as
preparation of data and reports, waiting to testify,
testifying in court or by deposition, and consulting with
OWNER or attorneys.
b. Preparation of any special reports not included in Basic
Services, appliications for permits or grants, and
appearances before regulatory agencies.
c. Any revision of previously approved reports, data or
specifications.
d. All travel and subsistence to points other than
CONSULTANT's or OWNER's offices at OWNER's
request.
e. Making copies of final reports and other documents
provided under Basic Services in excess of five sets.
f. Providing any other service not otherwise included in this
Agreement or not customarily furnished in accordance
with the generally accepted consulting practice.
II. Compensation: Consultant's compensation for Additional
Services shall be as set forth in Paragraph 5.
3. Time of Performance
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CONSULTANT will proceed immediately upon execution of this Contract
with performance of the services called for under the Basic Services.
CONSULTANT services shall be for a period of one (1) year, whereupon this
Contract shall terminate one (1) year from execution thereof.
4. Information and Services to be Furnished CONSULTANT
It is agreed that the CITY will furnish, without charge, for the use of the
CONSULTANT, information, data, reports, records, and maps as are existing,
available, and necessary for the carrying out of the work of the CONSULTANT as
outlined under "Scope of Services." The CITY and its agencies will cooperate with
the CONSULTANT in every way possible to facilitate the performance of the work
described in this Contract.
5. Compensation and Method of Payment
CITY will pay CONSULTANT for work performed and services rendered as
follows:
A. BASIC SERVICES
Monitoring: CONSULTANT shall be paid the sum of $2,000 for
performance of said services as outlined in Paragraph 2A -I.
II. For any visit to CITY in connection with items listed in
Paragraphs 2A -I 2A -II, or 2A -III, CONSULTANT will be paid flat
rate of $1,850 per visit, at request of OWNER, in lieu of $200
per hour rate. Said flat rate includes travel and related expens-
es, and each visit contemplates 10 hours of consulting time.
III. Reports and retainer work performed under Paragraph 2A -II will
be paid at the rate of $200 per hour.
IV. CONSULTANT shall bill CITY at the rate of $200 per hour for
services rendered under Paragraph 2A -III; however, service
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fees in connection with specifications and bidding shall not
exceed $5,500.00, except in connection with authorized travel
per Provision 5A -II.
B. ADDITIONAL SERVICES
I. CONSULTANT shall bill CITY at the rate of $200 per hour for
services rendered under Paragraph B - Additional Services.
IT IS AGREED THAT TOTAL FEES FOR SERVICES UNDER
THIS CONTRACT, SHALL NOT EXCEED THE SUM OF
EIGHTEEN THOUSAND AND 00/100 ($18,000.00) DOLLARS,
nor shall the CONSULTANT be obligated to render services
after his combined travel time, office time, and expenses
amount to $18,000.00. Notwithstanding any other provisions in
the within Contract, the CITY does not guarantee the CONSUL-
TANT $18,000.00 unless he, in fact, accrues same in accor-
dance with the terms of the within Contract. This amount
contemplates the following: (a) under (2A -1) $2,000 for
monitoring services, (b) under (2A -II) and (B) a maximum of 60
hours consulting time, and (c) under (2A -III) a maximum of
$5,500 for all work in connection with bid specifications
preparation and evaluation, exclusive of travel time and
expenses. (However, this is not to be construed as guarantee-
ing CONSULTANT 60 hours consulting time.) Fee arrange-
ments and consulting time may be changed if mutually agreed
to in writing.
C. PAYMENTS
CONSULTANT will invoice OWNER every other month.
OWNER agrees to promptly pay CONSULTANT at his office in
Richardson, Texas, the full amount of each such invoice upon
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receipt. A charge of 1% per month will be added to the unpaid
balance of invoices within 30 days after date of invoice.
6. Records
CONSULTANT shall keep accurate records, including time sheets and travel
vouchers, of all time and expenses allocated to performance of Contract work.
Such records shall be kept in the offices of the CONSULTANT for a period of not
Tess than five (5) years and shall be made available to the CITY for inspection and
copying upon reasonable request.
7. Ownership of Documents
All documents, reports, and specifications are property of OWNER.
CONSULTANT may retain reproducible copies of same. The CONSULTANT shall,
at his own expense, purchase, maintain and keep in force insurance that will
protect against injury and /or damages which may arise out of or result from
operations under this contract, whether the operations be by himself or by any
subcontractor or by anyone directly or indirectly employed by any of them, or by
anyone for whose acts any of them may be liable, of the following types and limits
[no insurance policy or certificate of insurance required below shall contain any
aggregate policy year limit unless a specific dollar amount (or specific formula for
determining a specific dollar amount) aggregate policy year limit is expressly
provided in the specification below which covers the particular insurance policy or
certificate of insurance.]
A. Standard Worker's Compensation Insurance (with Waiver of
Subrogation in favor of the City of Port Arthur, its officers, agents, and
employees.)
B. Commercial General Liability occurrence type insurance ( "XCU" and
products /completed operations coverage must be included, and the
City of Port Arthur, its officers, agents and employees must be named
as an additional Insured):
I. Bodily injury $500,000 single limit per occurrence or $500,000
each person /$500,000 per occurrence.
II. Property Damage $100,000 per occurrence.
III. Minimum aggregate policy year limit $1,000,000.
C. Commercial Automobile Liability Insurance (including owned, non -
owned and hired vehicles coverage.)
I. Minimum combined single limit of $500,000 per occurrence, for
bodily injury and property damage.
II. If individual limits are provided, minimum limits are $300,000
per person, $500,000 per occurrence for bodily injury and
$100,000 per occurrence for property damage.
D. Contractual Liability Insurance covering the indemnity provision of this
contract in the same amount and coverage as provided for
Commercial General Liability Policy, specifically referring to this
Contract by date, job number and location.
E. CONSULTANT also agrees to maintain Professional Liability
Insurance coverage of $100,000 minimum per occurrence/ policy year
aggregate limit to cover claims against CONSULTANT for damages
arising in the course of, or as a result of, work performed under this
Contract. Coverage shall continue for a minimum of two (2) years
after the CONSULTANT's assignment under this Contract is
completed. Additional Professional Liability required is not
required
8. CONSULTANT shall cause CONSULTANT's insurance company or
insurance agent to fill in all information required (including names of insurance
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agencies, CONSULTANT and insurance companies, and policy numbers, effective
dates and expiration dates) and to date and sign and do all other things necessary
to complete and make into a valid certificate of insurance the CERTIFICATE OF
INSURANCE Form attached to and made a part of this Contract, and pertaining to
the above listed Items A, B, C, D, and E; and before commencing any of the work
and within the time otherwise specified, CONSULTANT shall file said completed
Form with the Owner. None of the provisions in said Form shall be altered or
modified in any respect except as herein expressly authorized. Said
CERTIFICATE OF INSURANCE Form contains a provision that coverages
afforded under the policies will not be altered, modified or cancelled unless at least
fifteen (15) days prior written notice has been given to the Owner. CONSULTANT
shall also file with the Owner valid CERTIFICATE OF INSURANCE on like form
covering all Subcontractors. Said completed CERTIFICATE OF INSURANCE
Form(s) shall in any event be filed with Owner not more than ten (10) days after
execution of this Contract.
Deductible on policy for Professional Liability shall not exceed $5,000 unless
specifically approved by the Owner.
9. Professional Liability
CONSULTANT shall be responsible for the use and employment of
reasonable skill and care befitting the profession in the specifications and date
provided by CONSULTANT for the project covered by this Contract. Approval by
CITY shall not constitute nor be deemed a release or waiver of the responsibility
and liability of CONSULTANT for the accuracy and competency of such
specifications and data.
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10. Indemnification
CONSULTANT shall comply with the requirements of all applicable laws,
rules and regulations in connection with the services of CONSULTANT and shall
exonerate, indemnify and hold harmless the CITY, its officers, agents and all
employees from any and all liability, loss or damage arising out of noncompliance
with such laws, rules and regulations, without limitation. CONSULTANT shall
assume full responsibility for payments of Federal, State and Local taxes or
contributions imposed or required under the Social Security, Workers'
Compensation, and Income Tax Laws with respect to CONSULTANT's employees.
Further, CONSULTANT shall exonerate, indemnify and hold harmless the CITY,
its officers, agents and all employees in connection with any of the work performed
or to be performed under this Contract by CONSULTANT or as a result of
CONSULTANT's failure to use and employ reasonable skill and care befitting the
profession in accordance with Paragraph 9 hereof. Further, CONSULTANT shall
exonerate, indemnify and hold harmless the CITY, its officers, agents, and all
employees from any and all liability, loss, damages, expenses or claims for
infringement of any copyright or patent arising out of the use of any plans, designs,
drawings, or specifications furnished by CONSULTANT in the performance of this
Contract.
11. Address of Notices and Communications
OWNER:
City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77641
CONSULTANT:
RWL Group
300 N. Coit Road
Suite 810
Richardson, Texas 75080
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All notices and communications under this Contract shall be mailed or
delivered to OWNER and CONSULTANT at the above addresses.
12. Captions
Each paragraph of this Contract has been supplied with a caption to serve
only as a guide to the contents. The caption does not control the meaning of any
paragraph or in any way determine its interpretation or application.
13. Successors and Assignments
The OWNER and the CONSULTANT each binds himself and his
successors, executors, administrators, and assigns to the other party of this
Contract and to the successors, executors, administrators and assigns of such
other party, in respect to all covenants of this Contract. Except as above, neither
the OWNER nor the CONSULTANT shall assign, sublet or transfer his interest in
this Contract without the written consent of the other. Nothing herein shall be
construed as creating any personal liability on the part of any officer or agent of any
public body which may be a party hereto.
14. Termination of Contract for Cause
If, through any cause, the CONSULTANT shall fail to fulfill in timely and
proper manner his obligations under this Contract, or if the CONSULTANT shall
violate any of the covenants, agreements, or stipulations of this Contract, the City
shall thereupon have the right to terminate this Contract by giving written notice to
the CONSULTANT of such termination and specifying the effective date thereof, at
least five (5) days before the effective date of such termination. In such event, all
finished or unfinished documents, data and reports prepared by the CONSULTANT
under this Contract shall, at the option of the CITY, become its property and the
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CONSULTANT shall be entitled to receive just and equitable compensation for any
work satisfactorily completed hereunder.
Notwithstanding the above, the CONSULTANT shall not be relieved of
liability to the CITY for damages sustained by the CITY by virtue of any breach of
the Contract by the CONSULTANT and the City may withhold any payments to the
CONSULTANT for the purpose of set -off until such time as the exact amount of
damages due the CITY from the CONSULTANT is determined.
15. Termination for Convenience of the City
The CITY may terminate this Contract at any time by giving at least thirty
(30) days notice in writing to the CONSULTANT. If the Contract is terminated by
the CITY as provided herein, the CONSULTANT will be paid for the time provided
and expenses incurred up to the termination date. If this Contract is terminated
due to the fault of the CONSULTANT, Paragraph 14 hereof relative to termination
shall apply.
16. Changes
The CITY may, from time to time, request changes in the scope of the
services of the CONSULTANT to be performed hereunder. Such changes,
including any increase or decrease in the amount of the CONSULTANT's
compensation, which are mutually agreed upon by and between the CITY and
CONSULTANT, shall be incorporated in written amendments to this Contract.
17. Personnel
A. The CONSULTANT represents that he has, or will secure at his own
expense, all personnel required, in performing the services under this
Contract. Such personnel shall not be employees of or have any
contractual relationship with the CITY.
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B. All of the services required hereunder shall be performed by the
CONSULTANT or under his supervision and all personnel engaged in
the work shall be fully qualified and shall be authorized or permitted
under State and local law to perform such services.
C. None of the work or services covered by this Contract shall be
subcontracted without the prior written approval of the City. Any work
or services subcontracted hereunder shall be specified by written
Contract or agreement and shall be subject to each provision of this
Contract.
18. Reports and Information
The CONSULTANT, at such times and in such forms as the CITY may
require, shall furnish the CITY such periodic reports as it may request pertaining to
the work or services undertaken pursuant to this Contract, the costs and obligations
incurred or to be incurred in connection therewith, and any other matters covered
by this Contract.
19. Civil Rights
Under 106.001 et.seq. Civil Practice & Remedies Code of the Revised Civil
Statutes of Texas, no person shall, on the grounds of race, religion, color, sex, or
national origin, be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity of the CITY.
The CONSULTANT will carry out its work under this Contract in a manner
which will permit full compliance by the CITY with the Statute.
20. Interest of CONSULTANT and Employees
The CONSULTANT covenants that he presently has no interest and shall
not acquire any interest, direct or indirect, in the study area or any parcels therein
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or any other interests which would conflict in any manner or degree with the
performance of his services hereunder.
The CONSULTANT further covenants that in the performance of this
Contract, no person having such interest shall be employed.
21. Incorporation of Provisions Required by Law
Each provision and clause required by law to be inserted into the Contract
shall be deemed to be enacted herein and the Contract shall be read and enforced
as though each were included herein. If through mistake or otherwise any such
provision is not inserted or is not correctly inserted, the Contract shall be amended
to make such insertion on application by either party.
CITY OF PORT ARTHUR
SIGNED AND AGREED TO ON THE DAY OF , 2011.
City Manager
CONSULTANT
SIGNED AND AGREED TO ON THE DAY OF , 2011.
RWL Group
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[C•ty of Po(t Adhur) Exhibit. •ii•
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(10/5/50) • •
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• C EP. TIFIC,A TE OF STANDARD FORM CONTRACT FOR LAW
• • DEPARTN REVIErY AND CITY CC UNC1L A C.: ENDA
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cartili: that the contr (hereinafter celled *scid contract') iiiixed to the attached propocaci City CcUr,cil Re:of
• " Js an exact duplicate of a.i . op c13 standard form contract (Lila title of which is shown below) •
3•2•4..dsiy ,,,sprod by the Law department and r,dopled arr a standard form by City Council SeSoltrtior,, except far tlic
biaalts that have been filled In with all necessary inforrnation and except for L changes described below.
Tile title of the app.iicable standard fccrn contras:is
(1 Federatly Funded Coristruction Contract, Revised 1/5/03, 7/39, 8/39; A/20/94
[ No,l Funded Constniction C;antract, Res,ised 1/5/83, 7/09, 5/09; 4/20/94
[ 1 Federal • Professional Services Engineering (.. Revised 1/5/08, 5189 (§10) 7/89/('58); 10109; 2191 (w)
( No.1-FedereJ - Professional Services - Engineering Contract, Rzvi.sed 1/5/85, 5[83(510), 7/80(50), 10/80; 2/91(50)
(j COED ...Professional Seneices - Eagineerfrig' Contract, Revised 1/5188, 5/09 (510), 7/09(53),10/t0; 2/91 (58)
( Federat. - Professional Serrioes -
• • Noa-Enolneering (Consultant) Contract, Revised 1/5130, 5/89 (510), 7/00 (58); 10/30; 2/01 NO)
[ ) Non-Federal - Professional Services -
Non-Engincering (Consultant) Contract, Revised. 1/5/33, 5/39 (510), 7/89 (50); 10/09; 2/01 (50)
[ I COBG- Professional sen.ices
rior-Engineering (Consul tar.;) Cor.Lract, Revised 115/89, 5100 (510), 7/89 (55); 10/39; 2/01 (50)
• 1)( .0ther Standard Form Contract, described as folicws:
F3SK F.ANAGEnENT CONISUL.TINGSE8VICE3
The changes ere as follows: (Pdt r.n 'X" in the appropriate [1)
X None.
[ ) The fottai.ving described provisions p[or 1 ne indicated page, section, etc. cf the standard form have been deleted
from said contract:
DELETIONS
• —
Page \4umbcr Section or Paragraph No. Subsection or
Wherr_i and Caption Subparagraph No.
Deleted Provision W. h and Caption
Conte.ins Provision Which•Contains Provision Description of
Found en Standard Form Deleted From Form Deleted From Form Provision Deleted
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PACIC: 1 of 2
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(i:2 Fc riled 9119N .
(O Uf1icata cf Sta, Form Contract, page 2)
• - (j Jho following daxrlbsd provisions at the indicated page, section, etc. of the standard Jorm have been altered,
rr di cd; replaced or otherwise. changod:
A L.c.= .,•";T 0 'illii NIOLIF7CATiONS, R.. EPL 4 4CEMENTS, LTC. ,
y
•
Page § ca�Ucn
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sub 5-& caption, etc.
SLit. § or Sub `1 No.
!c. plate ccnLact
Page 5 c. 7 No. '.s Caption & Caption Description • which coat.:;:,,
Wi;er:= Cf Gf. of
Provision Fcend - altered, etc.
Standard For S Form Provision prevsicn; &
on which which fn
Sendard Fern Description e o;
C onisms F nv.cn Contain.: Pro i_ ;on Standard Form m Ai!c
.. raGon etc.
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[ 1 The relictving provisiono have been added to Said Contract;
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Page, Section and Caption - •
SuLsecUpn and Caption, etc., c, " Said Contract Which
. .Co, ^ta`ns the Added Provision and Description Thereof .
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further certify that said attached proposed City Ccurcil Resolution contains the lc'•lowing provision:
'`hat said contract is art exact duplicate cf a City Standard Form Contract except for alio changes described in the
Cetiticate of Standard Form Contract, a copy of which is attached hereto as Exhibit '8' and is hereby incorporated by
rcrerence, and said changes are hereby acpravcd,•
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1 understand that this cerliticate will be relied on by the Law Department in reviewing and approving (or rejecting)
es to form and by the Cl tyCouncii In revier,ino and adopiir•g (or rejecting) said Resolution and Contract.
Signed this day of
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Department Head or
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' Page 2 of 2
EXHIBIT "C"
RWLGROUP Independent Risk Management, Insurance, and Employee Benefits Consultants
300 N. Coit Road, Suite 810, Richardson, Texas 75080 -5456
Phone: 972 - 907 -9095
Fax: 972- 907 -9198
E -mail: rwlgroup @rwlgroup.com
Internet: www.rwlgroup.com
August 26, 2011 •�....�..,�,,,
CITY OF PORT ARM.:. R.
RECEIVED
AUG 29
Ms. Lisa Colter
Safety /RM Coordinator HUMAN RESOURCa_: :. KEPT
City of Port Arthur
P.O. Box 1089
Port Arthur, TX 77641 -1089
Re: Insurance Consulting Services
Dear Lisa:
As you know, RWL Group is an independent insurance and risk management consulting company. We
do not sell insurance, nor do we have any direct or indirect ownership ties or affiliations with the insurance
industry. We are not agents – our primary guiding principle is to provide objective, unbiased information
and advice to our clients regarding insurance, risk management and employee benefits matters for a fee
that is commensurate with the services provided. Our only source of income is the fee we receive from
our clients. We do not accept commissions, overrides, referral fees or any other form of remuneration.
RWL Group has been providing professional, across - the -board consulting services to public entities since
1981; i.e., cities, counties, school districts, transit authorities, hospital districts, MHMRs, ports, appraisal
districts, housing authorities, etc. Our experience in public entity risk management is second -to -none.
We assign only senior level consultants to work for our clients. Robert Lazarus and Carolyn Miller each
have over forty years of insurance industry experience (please refer to attached resumes). Since 1981,
our organization has been successful in helping our clients achieve significant premium savings and
coverage enhancements. RWL Group has an excellent "track record," and this is largely attributable to
the following guiding principles:
• Providing independent, objective and unbiased advice to clients on a fee - for - service basis only —
no insurance sales.
• Extending consulting services to the policyholder only and NOT to any providers of insurance or
attendant services.
• Making no promises we cannot keep.
• Fulfilling all contractual obligations without compromising quality of work.
• Building long -term credibility in the insurance consulting profession.
RWL Group has had the privilege of providing independent and unbiased insurance consulting services to
the City of Port Arthur since 1983 with regard to a variety of servicing requirements and needs. Our
consulting services have included, but not been limited to preparation of specifications for competitive
bidding or request for proposal processes; assistance with various claims issues, including hurricanes;
review and maintenance of insurance policies to make certain coverages are in compliance with renewal
proposals; negotiation of renewal proposals with agents; assistance with manuscript wording in certain
coverages (property) to insure continuity of coverages tor catastrophe exposures (hurricanes). We have
also assisted the City with various risk management administrative matters, including safety and loss
control, cost allocations, coverage disputes, etc.
Ms. Lisa Colter'
Page Two
August 26, 2011
During the years, we have been instrumental in assisting the City to achieve comprehensive coverage at
an affordable price. Since RWL Group is licensed as consultants, and not agents, we do not have any
potential conflict of interest regarding the placement of coverages, or added incentives to increase
premiums in order to achieve higher commission levels. Our fees have always been competitive, and our
services of material benefit to the City throughout the years. In a number of cases, RWL Group has
successfully assisted the City with negotiating various property claims, and has resolved property and
liability coverage issues in favor of the City. Many of our efforts have resulted in substantial monetary
returns to the City.
The current property and casualty programs in place for the City are extremely competitive and provide
comprehensive insurance protection. The Texas Municipal League program provides excellent protection
at competitive rates and with the further benefit in knowing that substantial member contributions are
returned to the City each year. The net cost of the insurance with TML is second -to -none. It is once
again important to keep in mind that RWL Group's income has no relationship whatsoever to the amount
of insurance purchased or the amount of premiums paid by the City.
In terms of the property insurance, RWL Group has competitively bid these coverages from year to year,
and has provided agents with a fair opportunity to write the business via a number of insurance
companies. Throughout the years, the RFP process has been publicly advertised; and local agents, as
well as agents outside the community, have all been given opportunities to submit competitive proposals
and write various insurances for the City. Historically, none of the local agents have been successful in
writing the City's insurance. Not coincidentally, often small local agents lack the resources, expertise and
leverage to compete in the public entity market.
We are extremely proud of the reputation we have established in both the public and private sectors and
take a great deal of professional pride in the work we perform. Our personalized approach to working
with our clients and solving their problems avoids "boiler- plate" solutions. We take a dynamic approach,
as opposed to a static one, in terms of analyzing and solving individual program requirements. Because
of the professional attention we give to each assignment, we have been extremely successful in meeting
our clients' needs and objectives.
RWL Group has considerable experience with a variety of risk financing programs, including but not
limited to, captives, pools, risk purchasing groups, risk retention groups, association programs, self -
insurance and various loss- sensitive rating plans and programs. Because of our extensive experience,
we have a broad and practical working knowledge of which of these alternatives would have application
to a particular situation in a realistic sense, as opposed to only theoretically.
It is important to keep in mind that we have not only had experience in reviewing insurance coverages
and risk management programs, designing specifications for insurance coverages and evaluating
competitive proposals, but also assisting clients with various kinds of claims issues and dispute resolution
matters that specifically relate to various property and casualty lines of insurance.
Ms. Lisa Cotten
Page Three
August 26, 2011
Because of our extensive experience with a variety of client bases, RWL Group is particularly sensitive to
client needs. This includes all professional and technical needs, as well as political considerations. Mr.
Lazarus and Ms. Miller both hold Risk Manager's licenses issued by the Texas Department of Insurance.
Robert W. Lazarus & Associates, Inc., dba RWL Group is also licensed by TDI.
Our knowledge and understanding of the technicalities of insurance are best exemplified by the excellent
reputation we have developed in the legal community in terms of serving as expert witness and litigation
insurance consultants on various dispute resolution matters.
In addition to assisting the City with its claims resulting from Hurricanes Rita and Ike, we also have first-
hand experience assisting clients with other national headline events; i.e., 9/11; Hurricanes Katrina and
Gustav; and the Atlanta shootings. In addition, we have a high level of expertise with property coverage
for earthquake, flood and wind -prone locations
RWL Group brings practical experience to the forefront, and exercises thinking "outside the box" to find
solutions to a wide variety of issues and problems. We treat each client individually and not as a
stereotype, because we recognize that each client is unique. Experience, knowledge and independence
are our most sought after and appreciated attributes.
Thank you for your kind consideration. We appreciate this opportunity to submit our company information
and qualifications. Please feel free to contact me if you have any questions or require further information.
Very truly yours,
I
Robert W. Lazarus, ARM
President /Senior Consultant
Risk Management Services
RWL GROUP
Independent Risk Management and Insurance Consultants
Robert W. Lazarus, ARM
Senior Consultant
RESPONSIBILITIES
Project Manager for all risk management and insurance assignments, such as comprehensive audits and
reviews; self- insurance and captive insurance company feasibility and financial studies; preparation of
specifications and monitoring the bidding process; risk financing alternative studies; claims administration
and risk management reviews; and other related activities.
EXPERIENCE
Expert Testimony /Litigation Support - Extensive and diverse experience providing expert testimony and
litigation support to clients and attorneys, in both the public and private sectors.
Arbitrator for insurance mediation proceedings.
Senior Consultant for Risk Management Services with a large national consulting company - Consulted
with clients of various industry groups on risk management and insurance problems. Served as project
manager on a number of diverse assignments which embraced a broad spectrum of risk management and
insurance disciplines, including quantitative applications.
Assistant Treasurer of Insurance and Risk Managernent with Chase Manhattan Bank
Staff Underwriter and Senior Claims Examiner with American International Group
Assistant Insurance Manager with Amerace Esna Corporation
Casualty Claims Adjuster with Travelers Insurance Company
EDUCATION
City University of New York B. A. Economics
St. John's University /School of Risk Management
fka College of Insurance, N.Y. M.B.A., Risk & Business Management
Insurance Institute of America Associate, Risk Management
Eastern School of Insurance General Insurance
American Education Institute Tort & Contract Law
Wharton School of Business Scientific Risk Management Applications
PROFESSIONAL AFFILIATIONS AND CERTIFICATIONS
Licensed Risk Management Consultant —Texas Department of Insurance
Licensed Risk Management Consultant -- Oklahoma State Board of Insurance
M.B.A. Committee Chairman and Associate Professor. Undergraduate Division — College of Insurance
Adjunct Faculty Instructor, Graduate Division — University of Dallas
Adjunct Faculty instructor, C3 i nu,'ity Service Div.-- El Centro Coiieg
Speaker at National functions and local chapters - -- Risk Insurance Management Society
Member — Society of Risk Management Consultants
Speaker at National Conference and Texas Chapter -- Public Risk Ins. Management Assoc. (PRIMA)
Speaker at Annual Operations Managernent School — Oklahoma Bankers Association
Speaker — Dallas Chapter of Insurance Women
Speaker at Annual Conference — Texas PRIMA Chapter
Speaker at Annual Conference — Texas Municipal League
Speaker — International Risk Management Institute
Speaker — Coppell Rotary
Speaker — Louisiana Bankers Association
Speaker — Fleming Companies Group
Speaker — North Texas Safety Seminar
Speaker — Strategic Management Group
Speaker — Association of Independent Printing Paper Merchants
Speaker — Southern Association of College and University Business Officers
Speaker — Vistage International, Inc.
RWL GROUP
Independent Risk Management and Insurance Consultants
Carolyn A. Miller, CPCU
Senior Consultant
RESPONSIBILITIES
Project Manager or Assistant Project Manager for all risk management and insurance assignments; i.e.,
comprehensive audits and reviews; self- insurance and captive insurance company feasibility and financial
studies; preparation and monitoring of bids and specifications; risk financing alternative studies; risk
management and claims administration reviews; and other related activities for public and private entity
clients. Also, provide technical and litigation support to clients and attorneys on matters involving
insurance pricing and coverage.
EXPERIENCE
Litigation Support - Extensive experience providing litigation support to clients and attorneys;
instrumental in returning in excess of $200 million in casualty lines premiums, primarily workers
compensation, to Texas and multistate employers.
Vice President of large independent insurance agencies responsible for large commercial property and
casualty accounts. Extensive experience in risk identification, risk management reviews, preparation of
bid specifications and monitoring the bidding process in such industries as professional sports, oil and
gas, large retail, banking and finance, property management, construction and trucking.
Claims Manager for large independent agent with experience in first- and third -party claims settlement,
claims administration and review.
EDUCATION
Le Tourneau University B.S. Business Management
American Institute for Property & Casualty Underwriters, Inc. Chartered Property and
Casualty Underwriter (CPCU)
PROFESSIONAL AFFILIATIONS AND CERTIFICATIONS
Licensed Risk Management Consultant – Texas Department of Insurance
Licensed Risk Management Consultant — Oklahoma State Board of Insurance
Adjunct Faculty Instructor -- Dallas County Community Coiiege District
Member – Chartered Property and Casualty Underwriters Society, Dallas Local Chapter
Member – National Association of Insurance Women, NAIW Dallas, Inc., Local Chapter
Member – Federation of Insurance Women of Texas, Insurance Women of the Metroplex Local Chapter
Past President – Insurance Women of the Metroplex Local Chapter
Designation – Certified Professional Insurance Woman (CPIW)
Designation – Professional Insurance Woman of Texas (PIWT)
Speaker at Annual Conference — Texas Association of Responsible Nonsubscribers (TXANS)