R-89-1251 - 3/9/1989RESOLUTION NO. 4
WHEREAS, the City previously contracted with Ranger Excavating,
Inc. for a project known as " Ganzert Branch Channel
Improvements -Phase II ", and
WHEREAS, the City has retained the final payment pending the
outcome of a dispute with one of the property owners, and
WHEREAS, Commercial Union Insurance Company has offered to
indemnify the City against the property owner's claims in
consideration of the release of the final payment, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City an Indemnity Agreement with Commercial Union
Insurance Company, a copy of said Agreement being attached hereto and
incorporated herein for all purposes, and
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the final payment for the Ganzert Branch Channel
Improvements -Phase II is approved for disbursement.
RESOLVED this 9th day of March, 1989.
ATTEST:
41 ,41J14
JiANNE LAND, City Secretary
C39RESRANG2
MIKE ROBINSON, Mayor
INDEMNITY AGREEMENT
In consideration of the payment of Forty -Eight Thousand
One Hundred Twenty -Two Dollars and Sixty -Four Cents
($48,122.64) out of contract funds retained by the City of
Round Rock ( "City ") to Ranger Excavating, Inc., c/o
Carpenter, Carruth & Hover, 1210 River Bend Drive, Suite
200, Dallas, Texas 75247, Commercial Union Insurance
Company ( "Commercial ") does hereby agree to indemnify,
defend and hold harmless the City of and from any claims
which have been made as of the date of execution of this
Indemnity Agreement, or any claims and /or lawsuits which may
be made within two years from the date of execution of this
Indemnity Agreement by Elmer Forsman and /or his brothers and
sisters or their heirs, successors or assigns ( "The
Forsmans ") based upon or concerning allegations by the
Forsmans that Ranger Excavating, Inc., damaged fences on the
Forsmans' property and /or removed dirt from the Forsmans'
property in connection with Ranger's performance of their
duties under a Public Works Contract for certain
improvements located in Round Rock, Williamson County,
Texas, known as the "Ganzert Branch Channel Improvements -
Phase II."
Commercial denies that the Forsmans would be entitled
to recover any sums from the City or any other person or
entity in connection with the events described herein, but
now enters into this Indemnity Agreement for the sole
consideration of effecting the payment of the remaining
contract balance owed to Ranger under the aforementioned
Public Works contract which is presently being retained by
the City.
In the event that the Forsmans make or pursue their
respective claims and based upon the events described herein
against the City within two years from the date of this
Agreement, the City, as a condition precedent to
Commercial's liability under this Indemnity Agreement,
shall, within twenty days of its receipt of any such notice,
notify Commercial in writing, sent certified mail, return
receipt requested to Commercial Union Insurance Company, One
Beacon Street, Boston, Massachusetts 02108, Attention:
Robert B. Collins, Assistant Vice - President, Fidelity and
Surety Claims, with reference to Bond No. CR 7284813,
Obligee: City of Round Rock, Texas; Project: Ganzert
Branch Channel Improvements Phase II. Provided, however,
that in the event a lawsuit is filed against the City, the
City agrees to see that an Answer is timely filed on its
behalf and give notice to Commercial as outlined above so
Commercial can assume its defense under this Indemnity
Agreement.
Upon receipt of said Notice, Commercial agrees to
employ an attorney of its own selection to defend against
said claim and /or lawsuit on behalf of the City, with all
costs, expenses and attorney's fees to be incurred at
Commercial's expense with the understanding that the total
liability of Commercial under this Indemnity Agreement,
-2-
DATE: March 7, 1989
SUBJECT: Council Agenda, March 9, 1989
ITEM: 13F. Consider a resolution approving an indemnity
agreement from Commercial Union Insurance
Company regarding the Ganzert Branch Channel
Improvements Project.
STAFF RESOURCE PERSON: Steve Sheets /Jim Nuse
STAFF RECOMMENDATION: The indemnity agreement protects the City
from claims made by the property owners. By
accepting the indemnity agreement the City will
make final payment on the project.
ECONOMIC IMPACT: None