EMPLOYEE BENEFITS BROKERAGE AND CONSULTING SERVICESAGREEMENT FOR SERVICES BETWEEN
CITY OF CLEARWATER AND GEHRING GROUP, INC.
?4uw
THIS AGREEMENT, entered into this / % day of J e, 2021, by and between the CITY
OF CLEARWATER, a Florida municipal corporation, hereinafter referred to as "City, " P.O. Box
4748, Clearwater, Florida 33758 and Gehring Group, Inc., a Florida corporation, hereinafter
referred to as "Consultant," 3500 Kyoto Gardens Drive, Palm Beach Gardens, Florida 33410.
WHEREAS, the City issued a request for proposals (RFP #29-21) for Employee Benefits
Brokerage and Consulting Services; and
WHEREAS, the Consultant submitted a proposal in response to the City's RFP #29-21 for
Employee Benefits Brokerage and Consulting Services; and
WHEREAS, the City desires to award the RFP #29-21 for Employee Benefits Brokerage
and Consulting Services to the Consultant; and
WHEREAS, Consultant agrees to provide the Employee Benefits Brokerage and
Consulting Services requested by the City in the City's RFP #29-21 for Employee Benefits
Brokerage and Consulting Services; and
WHEREAS, the purpose of this Agreement for Services is to set forth certain terms and
conditions for the provision of the Employee Benefits Brokerage and Consulting Services by the
Consultant to the City.;
NOW THEREFORE, in consideration of the mutual promises stated herein and other good
and valuable consideration, the City and Consultant mutually agree that the above terms, recitals,
and representations are true and accurate and are incorporated herein by reference, and the
Parties further agree as follows:
1. SCOPE OF PROJECT.
Page 1 of 20
Consultant agrees to provide Employee Benefits Brokerage and Consulting Services
under the terms and conditions described in attached Exhibit "A."
2. TIME OF PERFORMANCE.
This Contract shall commence on January 1, 2022 and terminate on December 31, 2025.
At the end of the initial term of this contract, the City may initiate two (2) one (1) year renewals as
provided herein. The decision to exercise the contract renewals rests solely with the City. The
City will give written notice of its intention to renew the contract to Consultant no later than thirty
(30) days prior to the expiration of each renewal option.
3. COMPENSATION.
Consultant shall be compensated in the form of a fixed annual flat fee for ongoing
Employee Benefits Brokerage and Consulting Services as detailed in Exhibit "C" attached hereto
and incorporated herein.
4. METHOD OF PAYMENT.
Consultant's invoices shall be submitted to the City for approval for payment on a monthly
basis. The City agrees to pay after approval under the terms of the Florida Prompt Payment Act
F.S. 218.70. The City's performance and obligation to pay under this Contract is contingent upon
an annual appropriation of the City's budget.
5. NOTICES AND CHANGES OF ADDRESS.
Any notice required or permitted to be given by the provisions of this Contract shall be
conclusively deemed to have been received by a party hereto on the date it is hand delivered to
such party at the address indicated below (or at such other address as such party shall specify to
the other party in writing), or if sent by registered or certified mail (postage prepaid) on the fifth
(5th) business day after the day on which such notice is mailed and properly addressed.
Page 2 of 20
Gehring Group, Inc. City of Clearwater
Cindy Thompson
Name Name
VP of Operations
Title Title
3500 Kyoto Gardens Drive P.O. Box 4748
Palm Beach Gardens, FL 33410 Clearwater, FL 33758
Address Address
800-244-3696 1561-626-6797
Telephone #
561-626-6970
Telephone #
Facsimile # Facsimile #
6. TERMINATION OF CONTRACT.
The City at its sole discretion may terminate this Contract by giving Consultant a ten (10)
day written notice of its election to do so and by specifying the effective date of such termination.
Consultant shall be paid for its services through the effective date of such termination. Further, if
Consultant shall fail to fulfill any of its obligations hereunder, this Contract shall be in default, the
City may terminate the Contract, and Consultant shall be paid only for work completed.
7. RFP #29-21. INDEMNIFICATION, AND INSURANCE.
Consultant agrees to comply with all terms, provisions, and requirements contained in
Exhibit "B" attached hereto and made a part hereof as if said document were fully set forth at
length herein. Any inconsistency in documents relating to this Contract shall be resolved by giving
precedence in the following order: (i) this Contract and any subsequent Amendments; and (ii)
Exhibit B, RFP #29-21, Standard Terms and Conditions.
Page 3 of 20
8. PROPRIETARY MATERIALS.
Upon termination of this Contract, Consultant shall transfer, assign and make available to
City or its representatives all property and materials in Consultant's possession belonging to or
paid for by the City.
9. INTERESTS OF PARTIES.
Consultant covenants that its officers, employees, and shareholders have no interest and
shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with
the performance and/or provision of services required under the terms and conditions of this
Contract.
10. CONFORMANCE WITH LAWS.
Consultant agrees to comply with all applicable federal, state and local laws during the life
of this Contract.
11. ATTORNEY FEES.
In the event that either party seeks to enforce this Contract through attorneys at law, then
the parties agree that each party shall bear its own attorney fees and costs.
12. GOVERNING LAW AND VENUE.
The laws of the State of Florida shall govern this Contract, and any action brought by
either party shall lie in Pinellas County, Florida.
13. E -Verify.
Consultant and its Subcontractors shall register with and use the E-Verifv system to verify the
work authorization status of all newly hired employees. Consultant will not enter into a contract
with any Subcontractor unless each party to the contract registers with and uses the E -Verify
Page 4 of 20
system. Subcontractor must provide Consultant with an affidavit stating that Subcontractor does
not employ, contract with, or subcontract with an unauthorized alien. Consultant shall maintain a
copy of such affidavit. The City may terminate this Contract on the good faith belief that
Consultant or its Subcontractors knowingly violated Florida Statutes 448.09(1) or 448.095(2)(c).
If this Contract is terminated pursuant to Florida Statute 448.095(2)(c), Consultant may not be
awarded a public contract for at least 1 year after the date of which this Contract was terminated.
Consultant is liable for any additional costs incurred by the City as a result of the termination of
this Contract. See Section 448.095, Florida Statutes (2020).
Page 5 of 20
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date set forth
above.
Countersigned:
Frank Hibbard
Mayor
Appr as to form;
Owen Kohler
Assistant City Attorney
Attest:
CITY OF CLEARWATER, FLORIDA
By:
Mica axweli
Int rim City Manager
Attest:
)r,t4.L.rt/t (4..bk.
�.
Rosemarie CaII
City Clerk
GEHRING GROUP
By:
Pnnt,Name: Gate r gard Print
Secretary Title:
Page 6 of 20
EXHIBIT A
SCOPE OF SERVICES
The City of Clearwater regularly reviews the structure, scope, competitiveness, and economic
efficiency of its employee benefit insurance coverages. The City will consider creative and
innovative approaches that will help maintain quality employee benefits without sacrificing fiscal
soundness. The successful broker shall be able to perform or provide, but not be limited to, the
following services:
GENERAL SERVICES.
a. Provide a dedicated broker/consultant to be the main contact for managing account
relationship. The contact will be readily accessible to City HR personnel.
b. Provide general and technical guidance on employee benefit issues to include market
analysis, trends, contract and statute interpretation and cost containment methods.
c. Assist the City on a regular basis and in a timely manner to provide information, analysis
and guidance on any and all aspects of City benefit program policy and administration.
d. Provide input and guidance regarding the City Employee's Pension Plan s/b City of
Clearwater Employees' Pension Plan.
e. Develop special plan design options as needed (Le., three [3] tiered medical options, flex
benefit plans, etc.).
f. Oversee the plan documents and summary plan descriptions.
g. Review all plan documents for accuracy and compliance with appropriate Federal, State,
and City laws and regulations.
h. Assist in the development and review of open enrollment communication materials,
including Employee Benefits Highlights Booklet.
L Create/Print/Distribute employee communication materials.
j. Provide a qualified representative to attend meetings with City staff, Management Team,
and employees as requested or needed.
k. Make recommendations to City staff and development and present materials to the City
Council, if needed.
I. Develop, conduct, and summarize employee satisfaction and/or needs surveys.
m. Advise and assist the City in negotiating renewals for medical, EAP, Basic Life, LTD/STD,
dental, vision, AD&D, FSA/DSA, AFLAC, Employee Health Center, etc.
n. Coordinate and present at the Open Enrollment Meetings, City Council Meetings, or health
fairs as needed.
o. Proposers are required to be Health Insurance Portability and Accountability Act (HIPAA)
compliant.
p. Apprise the City of current issues in the areas of benefits law and administration.
q. Act as liaison for the City with the best efforts regarding its employees benefits and when
dealing with service providers on insurance/contract issues.
Page 7 of 20
r. Resolve employee claims issues and expedite resolution of contractual/coverage/billing
disputes.
s. Enhance the services provided at the Employee Health Center.
TECHNICAL SERVICES.
a. The broker/consultant is expected to work with the City in securing and analyzing financial
and claims data from each of the carriers and the Employee Health Center on a quarterly
basis, and/or as requested by the City in order to monitor City benefit plans. Once
analyzed, the broker/consultant is expected to provide a summary explanation of the data
emphasizing any important trends, emerging problems, etc. It is preferred that the
broker/consultant have in-house utilization analysis of all City medical relationships,
including managed-care alternatives.
b. The broker/consultant is expected to aid the City and providing guidance with legislative
compliance issues, including but not limited to:
i. Consolidated Omnibus Budget Reconciliation Act (COBRA)
ii. Family and Medical Leave Act (FM LA)
iii. Affordable Care Act (ACA) Reporting
iv. Federal mandated compliance requirements/benefits, such as Health Insurance
Portability and Accountability Act (HIPAA)
v. State mandated benefits
c. Develop, conduct, and summarize benefit surveys of public and private employers,
focusing on benefits, contribution practices, funding, premium structures, etc., and
comparisons to the City of Clearwater's package. Develop, conduct, and summarize
surveys for other purposes, such as disruption reports as well as market analysis and
industry trend reports. Additionally, the awarded broker/consultant will provide timely
receipt and review of medical plan management reports.
d. The broker/consultant will provide guidance on the annual budgets, allocations of payroll
deductions, stop loss purchases and attachment points for the City's self-funded
programs.
e. The broker/consultant will assist in the preparation of materials required for an annual
actuarial review of the City's Self -Funded Health Benefit program. This currently entails
the City's annual actuarial filing pursuant to FS112.08 and GASB 75 OPEB valuation.
f. The broker/consultant will prepare and distribute annual, legally required notices.
g. On rare occasions, the City may be involved in litigation arising from requests for
proposals, contracting, or employee grievances. If such a situation should occur, the
broker/consultant may be expected to assist the City in providing necessary materials and
testify if needed.
h. Automated benefits administration and enrollment services and programs. The
broker/consultant shall provide secure, automated benefits administration and enrollment
services.
SOLICITATION SERVICES.
Assist the City in developing Request for Proposals for employee benefit insurance programs as
needed. This service would include the ability to aid the City with completing an RFP in a timely
Page 8 of 20
manner for medical coverage, to include the Employee Health Center, which would go into effect
on January 1, 2023.
a. In conjunction with the City, assist in the preparation of RFPs in compliance with the City's
procurement requirements as needed.
b. Assist the City with addressing any questions from vendors during the RFP process.
c. Participate in the evaluation or presentations as needed.
d. If requested, prepare recommendations and/or defense of recommendations.
e. Assist with contract negotiations, plan design, premiums rates and performance
guarantees.
f. Serve as an intermediary between the vendor(s) and City during the implementation of
new programs.
g. Participate in negotiations with vendors on proposed rates and benefits changes to
existing contracts.
Page 9 of 20
EXHIBIT "B"
RFP# 29-21, INDEMNIFICATION, AND INSURANCE
S.1 DEFINITIONS. Uses of the following terms are interchangeable as referenced: "vendor, contractor,
consultant, supplier, proposer, company, parties, persons", "purchase order, PO, contract,
agreement", "city, Clearwater, agency, requestor, parties", "bid, proposal, response, quote".
S.2 INDEPENDENT CONTRACTOR. It is expressly understood that the relationship of Contractor to
the City will be that of an independent contractor. Contractor and all persons employed by
Contractor, either directly or indirectly, are Contractor's employees, not City employees.
Accordingly, Contractor and Contractor's employees are not entitled to any benefits provided to
City employees including, but not limited to, health benefits, enrollment in a retirement system, paid
time off or other rights afforded City employees. Contractor employees will not be regarded as City
employees or agents for any purpose, including the payment of unemployment or workers'
compensation. If any Contractor employees or subcontractors assert a claim for wages or other
employment benefits against the City, Contractor will defend, indemnify and hold harmless the City
from all such claims.
S.3 SUBCONTRACTING. Contractor may not subcontract work under this Agreement without the
express written permission of the City. If Contractor has received authorization to subcontract work,
it is agreed that all subcontractors performing work under the Agreement must comply with its
provisions. Further, all agreements between Contractor and its subcontractors must provide that
the terms and conditions of this Agreement be incorporated therein.
S.4 ASSIGNMENT. This Agreement may not be assigned either in whole or in part without first
receiving the City's written consent. Any attempted assignment, either in whole or in part, without
such consent will be null and void and in such event the City will have the right at its option to
terminate the Agreement. No granting of consent to any assignment will relieve Contractor from
any of its obligations and liabilities under the Agreement.
S.5 SUCCESSORS AND ASSIGNS, BINDING EFFECT. This Agreement will be binding upon and
inure to the benefit of the parties and their respective permitted successors and assigns.
S.6 NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the exclusive benefit of the
parties. Nothing set forth in this Agreement is intended to create, or will create, any benefits, rights,
or responsibilities in any third parties.
S.7 NON- EXCLUSIVITY. The City, in its sole discretion, reserves the right to request the materials or
services set forth herein from other sources when deemed necessary and appropriate. No
exclusive rights are encompassed through this Agreement.
S.8 AMENDMENTS. There will be no oral changes to this Agreement. This Agreement can only be
modified in a writing signed by both parties. No charge for extra work or material will be allowed
unless approved in writing, in advance, by the City and Contractor.
S.9 TIME OF THE ESSENCE. Time is of the essence to the performance of the parties' obligations
under this Agreement.
S.10 COMPLIANCE WITH APPLICABLE LAWS.
a. General. Contractor must procure all permits and licenses, and pay all charges and fees
necessary and incidental to the lawful conduct of business. Contractor must stay fully informed
of existing and future federal, state, and local laws, ordinances, and regulations that in any
manner affect the fulfillment of this Agreement and must comply with the same at its own
expense. Contractor bears full responsibility for training, safety, and providing necessary
equipment for all Contractor personnel to achieve throughout the term of the Agreement. Upon
request, Contractor will demonstrate to the City's satisfaction any programs, procedures, and
other activities used to ensure compliance.
b. Drug -Free Workplace. Contractor is hereby advised that the City has adopted a policy
establishing a drug-free workplace for itself and those doing business with the City to ensure
Page 10 of 20
S.11
the safety and health of all persons working on City contracts and projects. Contractor will
require a drug-free workplace for all Contractor personnel working under this Agreement.
Specifically, all Contractor personnel who are working under this Agreement must be notified
in writing by Contractor that they are prohibited from the manufacture, distribution,
dispensation, possession, or unlawful use of a controlled substance in the workplace.
Contractor agrees to prohibit the use of intoxicating substances by all Contractor personnel,
and will ensure that Contractor personnel do not use or possess illegal drugs while in the course
of performing their duties.
c. Federal and State Immigration Laws. Contractor agrees to comply with the Immigration
Reform and Control Act of 1986 (IRCA) in performance under this Agreement and to permit the
City and its agents to inspect applicable personnel records to verify such compliance as
permitted by law. Contractor will ensure and keep appropriate records to demonstrate that all
Contractor personnel have a legal right to live and work in the United States.
(i)
As applicable to Contractor, under this provision, Contractor hereby warrants to the City
that Contractor and each of its subcontractors will comply with, and are contractually
obligated to comply with, all federal immigration laws and regulations that relate to their
employees (hereinafter "Contractor Immigration Warranty").
(ii) A breach of the Contractor Immigration Warranty will constitute as a material breach of this
Agreement and will subject Contractor to penalties up to and including termination of this
Agreement at the sole discretion of the City.
(iii) The City retains the legal right to inspect the papers of all Contractor personnel who provide
services under this Agreement to ensure that Contractor or its subcontractors are
complying with the Contractor Immigration Warranty. Contractor agrees to assist the City
in regard to any such inspections.
(iv) The City may, at its sole discretion, conduct random verification of the employment records
of Contractor and any subcontractor to ensure compliance with the Contractor Immigration
Warranty. Contractor agrees to assist the City in regard to any random verification
performed.
(v) Neither Contractor nor any subcontractor will be deemed to have materially breached the
Contractor Immigration Warranty if Contractor or subcontractor establishes that it has
complied with the employment verification provisions prescribed by Sections 274A and
274B of the Federal Immigration and Nationality Act.
d. Nondiscrimination. Contractor represents and warrants that it does not discriminate against
any employee or applicant for employment or person to whom it provides services because of
race, color, religion, sex, national origin, or disability, and represents and warrants that it
complies with all applicable federal, state, and local laws and executive orders regarding
employment. Contractor and Contractor's personnel will comply with applicable provisions of
Title VII of the U.S. Civil Rights Act of 1964, as amended, Section 504 of the Federal
Rehabilitation Act, the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.), and
applicable rules in performance under this Agreement.
SALES/USE TAX, OTHER TAXES. Contractor is responsible for the payment of all taxes including
federal, state, and local taxes related to or arising out of Contractor's services under this
Agreement, including by way of illustration but not limitation, federal and state income tax, Social
Security tax, unemployment insurance taxes, and any other taxes or business license fees as
required. If any taxing authority should deem Contractor or Contractor employees an employee of
the City, or should otherwise claim the City is liable for the payment of taxes that are Contractor's
responsibility under this Agreement, Contractor will indemnify the City for any tax liability, interest,
and penalties imposed upon the City.
The City is exempt from paying state and local sales/use taxes and certain federal excise taxes
and will furnish an exemption certificate upon request.
Page 11 of 20
S.12 AMOUNTS DUE THE CITY. Contractor must be current and remain current in all obligations due
to the City during the performance of services under the Agreement. Payments to Contractor may
be offset by any delinquent amounts due the City or fees and charges owed to the City.
S.13 OPENNESS OF PROCUREMENT PROCESS. Written competitive proposals, replies, oral
presentations, meetings where vendors answer questions, other submissions, correspondence,
and all records made thereof, as well as negotiations or meetings where negotiation strategies are
discussed, conducted pursuant to this Invitation to Bid (ITB), shall be handled in compliance with
Chapters 119 and 286, Florida Statutes.
Proposals or replies received by the City pursuant to this ITB are exempt from public disclosure
until such time that the City provides notice of an intended decision or until 30 days after opening
the proposals, whichever is earlier. If the City rejects all proposals or replies pursuant to this ITB
and provides notice of its intent to reissue the ITB, then the rejected proposals or replies remain
exempt from public disclosure until such time that the City provides notice of an intended decision
concerning the reissued ITB or until the City withdraws the reissued ITB. A proposal or reply shall
not be exempt from public disclosure longer than 12 months after the initial City notice rejecting all
proposals or replies.
Oral presentations, meetings where vendors answer questions, or meetings convened by City staff
to discuss negotiation strategies, if any, shall be closed to the public (and other proposers) in
compliance with Chapter 286 Florida Statutes. A complete recording shall be made of such closed
meeting. The recording of, and any records presented at, the exempt meeting shall be available to
the public when the City provides notice of an intended decision or until 30 days after opening
proposals or final replies, whichever occurs first. If the City rejects all proposals or replies pursuant
to this ITB and provides notice of its intent to reissue the ITB, then the recording and any records
presented at the exempt meeting remain exempt from public disclosure until such time that the City
provides notice of an intended decision concerning the reissued ITB or until the City withdraws the
reissued ITB. A recording and any records presented at an exempt meeting shall not be exempt
from public disclosure longer than 12 months after the initial City notice rejecting all proposals or
replies.
In addition to all other contract requirements as provided by law. the contractor executing
this agreement agrees to comply with public records law.
IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER
119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC
RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC
RECORDS, Rosemarie Call, phone: 727-562-4092 or Rosemarie.Call(umvclearwater.com,
600 Cleveland Street, Suite 600, Clearwater, FL 33755.
The contractor's agreement to comply with public records law applies specifically to:
a) Keep and maintain public records required by the City of Clearwater (hereinafter "public
agency") to perform the service being provided by the contractor hereunder.
b) Upon request from the public agency's custodian of public records, provide the public agency
with a copy of the requested records or allow the records to be inspected or copied within a
reasonable time at a cost that does not exceed the cost provided for in Chapter 119, Florida
Statutes, as may be amended from time to time, or as otherwise provided by law.
c) Ensure that the public records that are exempt or confidential and exempt from public records
disclosure requirements are not disclosed except as authorized by law for the duration of the
contract term and following completion of the contract if the contractor does not transfer the
records to the public agency.
Page 12 of 20
d) Upon completion of the contract, transfer, at no cost, to the public agency all public records in
possession of the contractor or keep and maintain public records required by the public agency
to perform the service. If the contractor transfers all public records to the public agency upon
completion of the contract, the contractor shall destroy any duplicate public records that are
exempt or confidential and exempt from public records disclosure requirements. If the
contractor keeps and maintains public records upon completion of the contract, the contractor
shall meet all applicable requirements for retaining public records. All records stored
electronically must be provided to the public agency, upon request from the public agency's
custodian of public records, in a format that is compatible with the information technology
systems of the public agency.
e) A request to inspect or copy public records relating to a public agency's contract for services
must be made directly to the public agency. If the public agency does not possess the
requested records, the public agency shall immediately notify the contractor of the request and
the contractor must provide the records to the public agency or allow the records to be
inspected or copied within a reasonable time.
f) The contractor hereby acknowledges and agrees that if the contractor does not comply with
the public agency's request for records, the public agency shall enforce the contract provisions
in accordance with the contract.
g)
A contractor who fails to provide the public records to the public agency within a reasonable
time may be subject to penalties under Section 119.10, Florida Statutes.
h) If a civil action is filed against a contractor to compel production of public records relating to a
public agency's contract for services, the court shall assess and award against the contractor
the reasonable costs of enforcement, including reasonable attorney fees, if:
1. The court determines that the contractor unlawfully refused to comply with the public
records request within a reasonable time; and
2. At least eight (8) business days before filing the action, the plaintiff provided written
notice of the public records request, including a statement that the contractor has not
complied with the request, to the public agency and to the contractor.
i) A notice complies with subparagraph (h)2. if it is sent to the public agency's custodian of public
records and to the contractor at the contractor's address listed on its contract with the public
agency or to the contractor's registered agent. Such notices must be sent by common carrier
delivery service or by registered, Global Express Guaranteed, or certified mail, with postage or
shipping paid by the sender and with evidence of delivery, which may be in an electronic format.
A contractor who complies with a public records request within eight (8) business days after the
notice is sent is not liable for the reasonable costs of enforcement.
S.14 AUDITS AND RECORDS. Contractor must preserve the records related to this Agreement for five
(5) years after completion of the Agreement. The City or its authorized agent reserves the right to
inspect any records related to the performance of work specified herein. In addition, the City may
inspect any and all payroll, billing or other relevant records kept by Contractor in relation to the
Agreement. Contractor will permit such inspections and audits during normal business hours and
upon reasonable notice by the City. The audit of records may occur at Contractor's place of
business or at City offices, as determined by the City.
Page 13 of 20
S.15 BACKGROUND CHECK. The City may conduct criminal, driver history, and all other requested
background checks of Contractor personnel who would perform services under the Agreement or
who will have access to the City's information, data, or facilities in accordance with the City's current
background check policies. Any officer, employee, or agent that fails the background check must
be replaced immediately for any reasonable cause not prohibited by law.
S.16 SECURITY CLEARANCE AND REMOVAL OF CONTRACTOR PERSONNEL. The City will
have final authority, based on security reasons: (i) to determine when security clearance of
Contractor personnel is required; (ii) to determine the nature of the security clearance, up to and
including fingerprinting Contractor personnel; and (iii) to determine whether or not any individual or
entity may provide services under this Agreement. If the City objects to any Contractor personnel
for any reasonable cause not prohibited by law, then Contractor will, upon notice from the City,
remove any such individual from performance of services under this Agreement.
S.17 DEFAULT.
a. A party will be in default if that party: (i) is or becomes insolvent or is a party to any voluntary
bankruptcy or receivership proceeding, makes an assignment for a creditor, or there is any
similar action that affects Contractor's capability to perform under the Agreement; (ii) is the
subject of a petition for involuntary bankruptcy not removed within sixty (60) calendar days; (iii)
conducts business in an unethical manner or in an illegal manner; or (iv) fails to carry out
any term, promise, or condition of the Agreement.
b. Contractor will be in default of this Agreement if Contractor is debarred from participating in
City procurements and solicitations in accordance with the City's Purchasing Policy and
Procedures Manual.
c. Notice and Opportunity to Cure. In the event a party is in default then the other party may,
at its option and at any time, provide written notice to the defaulting party of the default. The
defaulting party will have thirty (30) days from receipt of the notice to cure the default; the thirty
(30) day cure period may be extended by mutual agreement of the parties, but no cure period
may exceed ninety (90) days. A default notice will be deemed to be sufficient if it is reasonably
calculated to provide notice of the nature and extent of such default. Failure of the non -
defaulting party to provide notice of the default does not waive any rights under the Agreement.
d. Anticipatory Repudiation. Whenever the City in good faith has reason to question
Contractor's intent or ability to perform, the City may demand that Contractor give a written
assurance of its intent and ability to perform. In the event that the demand is made and no
written assurance is given within five (5) calendar days, the City may treat this failure as an
anticipatory repudiation of the Agreement.
S.18 REMEDIES. The remedies set forth in this Agreement are not exclusive. Election of one remedy
will not preclude the use of other remedies. In the event of default:
a. The non -defaulting party may terminate the Agreement, and the termination will be effective
immediately or at such other date as specified by the terminating party.
b. The City may purchase the services required under the Agreement from the open market,
complete required work itself, or have it completed at the expense of Contractor. If the cost of
obtaining substitute services exceeds the contract price, the City may recover the excess cost
by: (i) requiring immediate reimbursement to the City; (ii) deduction from an unpaid balance
due to Contractor; (iii) collection against the proposal and/or performance security, if any; (iv)
collection against liquidated damages (if applicable); or (v) a combination of the
aforementioned remedies or other remedies as provided by law. Costs includes any and all,
fees, and expenses incurred in obtaining substitute services and expended in obtaining
reimbursement, including, but not limited to, administrative expenses, attorneys' fees, and
costs.
Page 14 of 20
c. The non -defaulting party will have all other rights granted under this Agreement and all rights
at law or in equity that may be available to it.
d. Neither party will be liable for incidental, special, or consequential damages.
S.19 CONTINUATION DURING DISPUTES. Contractor agrees that during any dispute between the
parties, Contractor will continue to perform its obligations until the dispute is settled, instructed to
cease performance by the City, enjoined or prohibited by judicial action, or otherwise required or
obligated to cease performance by other provisions in this Agreement.
S.20 TERMINATION FOR CONVENIENCE. The City reserves the right to terminate this Agreement in
part or in whole upon thirty (30) calendar days' written notice.
S.21 TERMINATION FOR CONFLICT OF INTEREST Florida Statutes Section 112. Pursuant to F.S.
Section 112, the City may cancel this Agreement after its execution, without penalty or further
obligation, if any person significantly involved in initiating, securing, drafting, or creating the
Agreement for the City becomes an employee or agent of Contractor.
S.22 TERMINATION FOR NON -APPROPRIATION AND MODIFICATION FOR BUDGETARY
CONSTRAINT. The City is a governmental agency which relies upon the appropriation of funds
by its governing body to satisfy its obligations. If the City reasonably determines that it does not
have funds to meet its obligations under this Agreement, the City will have the right to terminate
the Agreement without penalty on the last day of the fiscal period for which funds were legally
available. In the event of such termination, the City agrees to provide written notice of its intent to
terminate thirty (30) calendar days prior to the stated termination date.
S.23 PAYMENT TO CONTRACTOR UPON TERMINATION. Upon termination of this Agreement,
Contractor will be entitled only to payment for those services performed up to the date of
termination, and any authorized expenses already incurred up to such date of termination. The
City will make final payment within thirty (30) calendar days after the City has both completed its
appraisal of the materials and services provided and received Contractor's properly prepared final
invoice.
S.24 NON -WAIVER OF RIGHTS. There will be no waiver of any provision of this agreement unless
approved in writing and signed by the waiving party. Failure or delay to exercise any rights or
remedies provided herein or by law or in equity, or the acceptance of, or payment for, any services
hereunder, will not release the other party of any of the warranties or other obligations of the
Agreement and will not be deemed a waiver of any such rights or remedies.
S.25 INDEMNIFICATION/LIABILITY.
a. To the fullest extent permitted by law, Contractor agrees to defend, indemnify, and hold the
City, its officers, agents, and employees, harmless from and against any and all liabilities,
demands, claims, suits, losses, damages, causes of action, fines or judgments, including costs,
attorneys', witnesses', and expert witnesses' fees, and expenses incident thereto, relating to,
arising out of, or resulting from: (i) the services provided by Contractor personnel under this
Agreement; (ii) any negligent acts, errors, mistakes or omissions by Contractor or Contractor
personnel; and (iii) Contractor or Contractor personnel's failure to comply with or fulfill the
obligations established by this Agreement.
b. Contractor will update the City during the course of the litigation to timely notify the City of any
issues that may involve the independent negligence of the City that is not covered by this
indemnification.
c. The City assumes no liability for actions of Contractor and will not indemnify or hold Contractor
or any third party harmless for claims based on this Agreement or use of Contractor -provided
supplies or services.
S.26 WARRANTY. Contractor warrants that the services and materials will conform to the requirements
of the Agreement. Additionally, Contractor warrants that all services will be performed in a good,
workman -like and professional manner. The City's acceptance of service or materials provided by
Contractor will not relieve Contractor from its obligations under this warranty. If any materials or
Page 15 of 20
services are of a substandard or unsatisfactory manner as determined by the City, Contractor, at
no additional charge to the City, will provide materials or redo such services until in accordance
with this Agreement and to the City's reasonable satisfaction.
Unless otherwise agreed, Contractor warrants that materials will be new, unused, of most current
manufacture and not discontinued, will be free of defects in materials and workmanship, will be
provided in accordance with manufacturer's standard warranty for at least one (1) year unless
otherwise specified, and will perform in accordance with manufacturer's published specifications.
S.27 THE CITY'S RIGHT TO RECOVER AGAINST THIRD PARTIES. Contractor will do nothing to
prejudice the City's right to recover against third parties for any loss, destruction, or damage to City
property, and will at the City's request and expense, furnish to the City reasonable assistance and
cooperation, including assistance in the prosecution or defense of suit and the execution of
instruments of assignment in favor of the City in obtaining recovery.
S.28 NO GUARANTEE OF WORK. Contractor acknowledges and agrees that it is not entitled to deliver
any specific amount of materials or services or any materials or services at all under this Agreement
and acknowledges and agrees that the materials or services will be requested by the City on an as
needed basis at the sole discretion of the City. Any document referencing quantities or
performance frequencies represent the City's best estimate of current requirements, but will not
bind the City to purchase, accept, or pay for materials or services which exceed its actual needs.
S.29 OWNERSHIP. All deliverables, services, and information provided by Contractor or the City
pursuant to this Agreement (whether electronically or manually generated) including without
limitation, reports, test plans, and survey results, graphics, and technical tables, originally prepared
in the performance of this Agreement, are the property of the City and will not be used or released
by Contractor or any other person except with prior written permission by the City.
S.30 USE OF NAME. Contractor will not use the name of the City of Clearwater in any advertising or
publicity without obtaining the prior written consent of the City.
S.31 PROHIBITED ACTS. Pursuant to Florida Constitution Article II Section 8, a current or former public
officer or employee within the last two (2) years shall not represent another organization before the
City on any matter for which the officer or employee was directly concerned and personally
participated in during their service or employment or over which they had a substantial or material
administrative discretion.
S.32 FOB DESTINATION FREIGHT PREPAID AND ALLOWED. All deliveries will be FOB destination
freight prepaid and allowed unless otherwise agreed.
S.33 RISK OF LOSS. Contractor agrees to bear all risks of loss, injury, or destruction of goods or
equipment incidental to providing these services and such loss, injury, or destruction will not release
Contractor from any obligation hereunder.
S.34 SAFEGUARDING CITY PROPERTY. Contractor will be responsible for any damage to City real
property or damage or loss of City personal property when such property is the responsibility of or
in the custody of Contractor or its employees.
S.35 WARRANTY OF RIGHTS. Contractor warrants it has title to, or the right to allow the City to use,
the materials and services being provided and that the City may use same without suit, trouble or
hindrance from Contractor or third parties.
S.36 PROPRIETARY RIGHTS INDEMNIFICATION. Without limiting the foregoing, Contractor will
without limitation, at its expense defend the City against all claims asserted by any person that
anything provided by Contractor infringes a patent, copyright, trade secret or other intellectual
property right and must, without limitation, pay the costs, damages and attorneys' fees awarded
against the City in any such action, or pay any settlement of such action or claim. Each party agrees
to notify the other promptly of any matters to which this provision may apply and to cooperate with
each other in connection with such defense or settlement. If a preliminary or final judgment is
obtained against the City's use or operation of the items provided by Contractor hereunder or any
part thereof by reason of any alleged infringement, Contractor will, at its expense and without
Page 16 of 20
limitation, either: (a) modify the item so that it becomes non-infringing; (b) procure for the City the
right to continue to use the item; (c) substitute for the infringing item other item(s) having at least
equivalent capability; or (d) refund to the City an amount equal to the price paid, less reasonable
usage, from the time of installation acceptance through cessation of use, which amount will be
calculated on a useful life not less than five (5) years, plus any additional costs the City may incur
to acquire substitute supplies or services.
S.37 CONTRACT ADMINISTRATION. The agreement will be administered by the Purchasing
Administrator and/or an authorized representative from the using department. All questions
regarding the agreement will be referred to the administrator for resolution. Supplements may be
written to the agreement for the addition or deletion of services. Payment will be negotiated and
determined by the contract administrator(s).
S.38 FORCE MAJEURE. Failure by either party to perform its duties and obligations will be excused by
unforeseeable circumstances beyond its reasonable control, including acts of nature, acts of the
public enemy, riots, fire, explosion, legislation, and governmental regulation. The party whose
performance is so affected will within five (5) calendar days of the unforeseeable circumstance
notify the other party of all pertinent facts and identify the force majeure event. The party whose
performance is so affected must also take all reasonable steps, promptly and diligently, to prevent
such causes if it is feasible to do so, or to minimize or eliminate the effect thereof. The delivery or
performance date will be extended for a period equal to the time lost by reason of delay, plus such
additional time as may be reasonably necessary to overcome the effect of the delay, provided
however, under no circumstances will delays caused by a force majeure extend beyond one
hundred-twenty (120) calendar days from the scheduled delivery or completion date of a task
unless agreed upon by the parties.
S.39 COOPERATIVE USE OF CONTRACT. The City has entered into various cooperative purchasing
agreements with other Florida government agencies, including the Tampa Bay Area Purchasing
Cooperative. Under a Cooperative Purchasing Agreement, any contract may be extended for use
by other municipalities, school districts and government agencies in the State of Florida with the
approval of Contractor. Any such usage by other entities must be in accordance with the statutes,
codes, ordinances, charter and/or procurement rules and regulations of the respective government
agency.
Orders placed by other agencies and payment thereof will be the sole responsibility of that agency.
The City is not responsible for any disputes arising out of transactions made by others.
S.40 FUEL CHARGES AND PRICE INCREASES. No fuel surcharges will be accepted. No price
increases will be accepted without proper request by Contractor and response by the City's
Purchasing Division.
S.41 NOTICES. All notices to be given pursuant to this Agreement must be delivered to the parties at
their respective addresses. Notices may be (i) personally delivered; (ii) sent via certified or
registered mail, postage prepaid; (iii) sent via overnight courier; or (iv) sent via facsimile. If provided
by personal delivery, receipt will be deemed effective upon delivery. If sent via certified or
registered mail, receipt will be deemed effective three (3) calendar days after being deposited in
the United States mail. If sent via overnight courier or facsimile, receipt will be deemed effective
two (2) calendar days after the sending thereof.
S.42 GOVERNING LAW, VENUE. This Agreement is governed by the laws of the State of Florida. The
exclusive venue selected for any proceeding or suit in law or equity arising from or incident to this
Agreement will be Pinellas County, Florida.
S.43 INTEGRATION CLAUSE. This Agreement, including all attachments and exhibits hereto,
supersede all prior oral or written agreements, if any, between the parties and constitutes the entire
agreement between the parties with respect to the work to be performed.
S.44 PROVISIONS REQUIRED BY LAW. Any provision required by law to be in this Agreement is a
part of this Agreement as if fully stated in it.
Page 17 of 20
S.45 SEVERABILITY. If any provision of this Agreement is declared void or unenforceable, such
provision will be severed from this Agreement, which will otherwise remain in full force and effect.
The parties will negotiate diligently in good faith for such amendment(s) of this Agreement as may
be necessary to achieve the original intent of this Agreement, notwithstanding such invalidity or
unenforceability.
S.46 SURVIVING PROVISIONS. Notwithstanding any completion, termination, or other expiration of
this Agreement, all provisions which, by the terms of reasonable interpretation thereof, set forth
rights and obligations that extend beyond completion, termination, or other expiration of this
Agreement, will survive and remain in full force and effect. Except as specifically provided in this
Agreement, completion, termination, or other expiration of this Agreement will not release any party
from any liability or obligation arising prior to the date of termination.
INSURANCE REQUIREMENTS. The Consultant shall, at its own cost and expense, acquire and
maintain (and cause any subcontractors, representatives, or agents to acquire and maintain) during the
term with the City, sufficient insurance to adequately protect the respective interest of the parties.
Coverage shall be obtained with a carrier having an AM Best Rating of A -VII or better. In addition, the
City has the right to review the Consultant's deductible or self-insured retention and to require that it be
reduced or eliminated.
Specifically, the Consultant must carry the following minimum types and amounts of insurance on an
occurrence basis or in the case of coverage that cannot be obtained on an occurrence basis, then
coverage can be obtained on a claims -made basis with a minimum three (3) year tail following the
termination or expiration of this Agreement. Specific work may require additional coverage on a case by
case basis:
a. Commercial General Liability Insurance coverage, including but not limited to, premises
operations, products/completed operations, products liability, contractual liability, advertising
injury, personal injury, death, and property damage in the minimum amount of $1,000,000 (one
million dollars) per occurrence and $2,000,000 (two million dollars) general aggregate.
b. Commercial Automobile Liability Insurance coverage for any owned, non -owned, hired or
borrowed automobile is required in the minimum amount of $1,000,000 (one million dollars)
combined single limit.
c. Unless waived by the State of Florida, statutory Workers' Compensation Insurance coverage in
accordance with the laws of the State of Florida, and Employer's Liability Insurance in the
minimum amount of $100,000 (one hundred thousand dollars) each employee each accident,
$100,000 (one hundred thousand dollars) each employee by disease and $500,000 (five hundred
thousand dollars) aggregate by disease with benefits afforded under the laws of the State of
Florida. Coverage should include Voluntary Compensation, Jones Act, and U.S. Longshoremen's
and Harbor Worker's Act coverage where applicable. Coverage must be applicable to employees,
contractors, subcontractors, and volunteers, if any.
d. If the Consultant is using its own property, or the property of the City or other provider, in
connection with the performance of its obligations under this Agreement, then Consultant's
Equipment Insurance or Property Insurance on an "All Risks" basis with replacement cost
coverage for property and equipment in the care, custody and control of others is required.
e. Professional Liability Insurance coverage appropriate for the type of business engaged in by
the Consultant with minimum limits of $1,000,000 (one million dollars) per occurrence. If a claims
made form of coverage is provided, the retroactive date of coverage shall be no later than the
inception date of claims made coverage, unless prior policy was extended indefinitely to cover
prior acts. Coverage shall be extended beyond the policy year either by a supplemental extended
reporting period (ERP) of as great a duration as available, and with no less coverage and with
Page 18 of 20
reinstated aggregate limits, or by requiring that any new policy provide a retroactive date no later
than the inception date of claims made coverage.
The above insurance limits may be achieved by a combination of primary and umbrella/excess liability
policies.
OTHER INSURANCE PROVISIONS.
a. Prior to the execution of this Agreement, and then annually upon the anniversary date(s) of the
insurance policy's renewal date(s) for as long as this Agreement remains in effect, the
CONSULTANT will furnish the City with a Certificate of Insurance(s) (using appropriate ACORD
certificate, SIGNED by the Issuer, and with applicable endorsements) evidencing all of the
coverage set forth above and naming the City as an "Additional Insured." In addition, when
requested in writing from the City, CONSULTANT will provide the City with certified copies of all
applicable policies. The address where such certificates and certified policies shall be sent or
delivered is as follows:
City of Clearwater
Attn: Purchasing, RFQ #29-21
P.O. Box 4748
Clearwater, FL 33758-4748
b. CONSULTANT shall provide thirty (30) days written notice of any cancellation, non -renewal,
termination, material change or reduction in coverage.
c. CONSULTANT'S insurance as outlined above shall be primary and non-contributory coverage for
CONSULTANT'S negligence.
d. CONSULTANT reserves the right to appoint legal counsel to provide for the CONSULTANT'S
defense, for any and all claims that may arise related to Agreement, work performed under this
Agreement, or to CONSULTANT'S design, equipment, or service. CONSULTANT agrees that
the City shall not be liable to reimburse CONSULTANT for any legal fees or costs as a result of
CONSULTANT providing its defense as contemplated herein.
The stipulated limits of coverage above shall not be construed as a limitation of any potential
liability to the City, and failure to request evidence of this insurance shall not be construed as a
waiver of CONSULTANT'S obligation to provide the insurance coverage specified.
Page 19 of 20
EXHIBIT "C"
COMPENSATION
Employee Benefits Consulting
Services
Year 1
Annual Fee
$275,000
Year 2
$275,000
Year 3
$275,000
Year 4
$282,000
Year 5
$282,000
Please note that there be will no additional charges to the City as this arrangement includes:
• Bentek® Online Enrollment & Administration System
• All travel costs associated with servicing the City
• ACA advisory and planning services
• Onsite attendance at annual Open Enrollment meetings as needed
• Development, production, and printing of annual employee benefit booklet and other
employee communications
• Actuarial services subcontracted through Wakely Consulting (services include annual
112.08 filing of actuarial soundness of medical/rx progam, annual rate and reserve
calculation, and IBNR calculation)
• Access to Gehring Group COVID-19 Resources Portal & educational workshops,
seminars and webinars
• Access to ThinkHR online H.R. research tool
Page 20 of 20