request for proposal #13/14-04 -...

Reno-Tahoe Airport Authority Reno NV

Request for Proposal #13/14-04 Insurance Brokerage Services

Reno-Tahoe Airport Authority

Insurance Brokerage Services Page 1 of 34 RFP 13/14-04

RENO-TAHOE AIRPORT AUTHORITY

Request for Proposals (“RFP”) for Insurance Brokerage Services

RFP 13/14-04

The Reno-Tahoe Airport Authority (“RTAA” or “Authority”) Purchasing and Materials Management Division is currently accepting sealed proposals seeking the services of a qualified insurance brokerage firm to acquire insurance coverage for the Authority and provide other related services, Request for Proposals 13/14-04. The Authority considers insurance brokerage services to be an integral part of its risk management program and the selected firm and its employees of critical importance. The Authority is expecting to select a licensed broker to provide a broad range of services including the following: (1) analysis of risk exposure; (2) marketing and selection of liability, property, and worker’s compensation insurance coverage; (3) assistance with claim administration; and (4) advice and expertise on all airport/ aviation risk management areas. The Authority prefers to develop a long-term relationship with its broker. The proposed contract term will be for a five (5) year period with the right to terminate the agreement with ninety (90) days written notice. The Proposer must therefore include any changes in compensation over the proposed period and include the basis for such changes. This RFP is inviting brokers to submit their qualifications, comprehensive broker service plans, and proposed annual fixed fees/commissions to meet the Authority’s service needs. The Reno Tahoe Airport Authority (RTAA) is tendering this Request for Proposal (RFP) at this time due to the expiration of the current broker agreement, which expired on July 1, 2013. It is the Authority’s policy to issue competitive solicitations for its professional service contracts upon the expiration of an existing agreement. The selected Broker(s) will be expected to provide a full range of services, including but not limited to, placing the Authority’s insurance coverages, assisting Authority staff with insurance related issues and providing detailed, written insurance coverage recommendations in the areas listed below

a. Workers Compensation b. Property; including Flood, Earthquake, and Boiler & Machinery c. Inland Marine (Mobile Equipment) d. Airport Operations Liability e. Automobile f. Emergency Medical Technician Professional Liability g. Law Enforcement Professional Liability h. Crime i. Fiduciary



j. Public Officials and Employment Practice Liability k. Environmental l. Cyber coverage m. Foreign Package n. Special Event Insurance Program - Including Tenant/User event coverage with

the particular emphasis on the National Championship Air Races held by the Reno Air Racing Association each year at the Reno-Stead Airport.

o. Concessionaire and Airport tenant p. Any other coverage requested by the Authority or recommended by the Proposer

The Authority anticipates that a single contract will be awarded for insurance broker and related services; however, the Authority reserves the right to award multiple contracts if deemed in its best interest to do so.

THIS INVITATION TO SUBMIT A REQUEST FOR PROPOSAL IS NOT AN AUTHORIZATION TO APPROACH THE INSURANCE MARKETPLACE OR SERVICE AGENCIES ON BEHALF OF THE AUTHORITY. THE AUTHORITY SPECIFICALLY DIRECTS THAT NO CONTACT OR SOLICITATION OF INSURANCE MARKETS, OR MARKET RESERVATION, BE MADE ON BEHALF OF THE AUTHORITY. FAILURE TO COMPLY WITH THIS CONDITION SHALL BE GROUNDS FOR DISQUALIFICATION.

1. Minimum Qualifications

The Authority encourages proposals from all insurance brokers that meet the following minimum qualifications: A. Licensed as an insurance broker and in compliance with all laws

necessary to conduct business in the State of Nevada with at least five years experience in providing a broad range of insurance brokerage services.

B. No prior history of corrective action with the Nevada Division of Insurance.

C. Experience with airport or local government clients with annual premiums

exceeding $800,000.

D. The selected Proposer must be able to provide two qualified principals or account executives working on this contract each with a minimum of ten (10) years experience in casualty commercial lines and must have managed a public entity account.

2. General Information

Reno-Tahoe Airport Authority (formerly the Airport Authority of Washoe County, prior to a name change in 2005) is a quasi-municipal corporation that was created by the Nevada State Legislature and began operation on July 1, 1978. The act that created the RTAA provides that it will serve a public use and will



facilitate safe and convenient air travel and transport to and from the Reno-Tahoe area. The RTAA is an independent entity that is not part of any other unit of local government and does not use local property or sales tax revenue to fund its operation. The RTAA owns and operates the Reno-Tahoe International Airport (RTIA) and Reno-Stead Airport (RTS). Per Airport Council International – North America (ACI-NA), RTIA is the 65th busiest airport in the nation in term of passenger traffic. RTS is a general aviation facility of 5,000 acres that is home to approximately 200 based aircraft and the famous Reno National Championship Air Races. Together, these airports have a $2.0 billion annual economic impact on the local economy.

The geographical area served by RTIA (the air trade area) primarily encompasses the seven Nevada counties of Churchill, Douglas, Humboldt, Lyon, Pershing, Storey, and Washoe, and the major cities of Reno, Sparks, and Carson City (the capital of the State of Nevada). The total air trade area for the Airport also includes the Lake Tahoe area and several communities in northeastern California. The nine-member Board of Trustees (the Board) that governs the RTAA is appointed by the City of Reno, City of Sparks, Washoe County and the Reno-Sparks Convention & Visitors Authority. Four members are appointed by the City of Reno, two by the City of Sparks, two by Washoe County, and a ninth board member is appointed by the Reno-Sparks Convention & Visitors Authority. The Board members’ terms are staggered to ensure the presence of experienced members. The Authority operates and does its financial reporting on a Fiscal Year (FY) basis that begins on July 1 of each year and ends on June 30 in the following year. For example, FY 2013/14 represents the period of July 1, 2013 to June 30, 2014. The Airport served 3.51 million total passengers in FY 2012-13. RTIA passengers are currently served by the following air passenger carriers: Alaska, American, Delta, Southwest, United, and US Airways. Two major air cargo carriers, FedEx and United Parcel Service (UPS), also serve RTIA.

3. Financial and Insurance Information

The Comprehensive Annual Financial Report for the years ending June 30, 2008 through 2013 and the Annual Budget for FY 2014 are available on the Authority’s website at www.renoairport.com. Both the Annual Financial Reports and the Annual Budget have been awarded certificate of achievements by the



Government Finance Officers Association of the United States for the last 25 years. The Authority has an “A” credit rating from Fitch Ratings, a national recognized credit rating agency, with an outlook of “stable”. This rating was confirmed on May 4, 2013. In addition to this information, Exhibit A contains a schedule of the current insurance coverages and premium summary.

4. RFP Scope of Services and Intent

The following is the proposed scope of insurance brokerage services to be provided under this RFP: 4.1 Liability and Property Insurance

Insurance coverages to be placed on behalf of the Authority include, but are not limited to:

Liability insurance: including airport owners/operators general; excess; business automobile; public officials including employment practices; liability terrorism; law enforcement; emergency medical technicians, and crime and dishonesty.

Property insurance: including equipment, fire and allied risks; windstorm/ earthquake; flood; equipment and inland marine including fine arts; commercial crime; and property terrorism.

4.1.1 Scope of Work

The scope of work for Liability and Property insurance includes the following; A. Consult on a wide variety of insurance and risk-management related

issues as needed. B. Assist with development of a risk financing strategy.

C. Act as an independent insurance advisor to the Authority and proactively

provide ongoing unbiased professional advice and recommendations that benefit the Authority.

D. Proactively provide ongoing review and analysis of the Authority’s

insurance programs and identification of risk transfer and risk financing options.

E. Be familiar with the major exposures and coverage provided by all

relevant insurance policies and documents issued to the Authority.



F. Develop underwriting and marketing strategies to competitively secure the best coverages at the most reasonable costs. Prepare annual marketing strategy reports identifying anticipated market conditions and propose a marketing strategy for the Airport Authority’s major loss exposure areas prior to policy renewal.

G. Provide trended values for property insurance policies.

H. Analyze the Airport Authority’s exposure to loss, adequacy of coverage,

and develop options on coverage not presently purchased by the Airport Authority.

I. Obtain bids from the insurance industry, evaluate the commitment and

financial stability of the underwriters, and negotiate the best terms and coverage for the various exposure areas on behalf of the Authority.

J. Receive and analyze the underwriter’s quotations. Review new and

renewal insurance proposals for accuracy and conformity to specifications and negotiated coverages. Compare to prior year’s policies and advise the Authority of changes in policy form or coverage. Recommend policy coverage or language changes as necessary. Request modifications from the insurers upon Authority concurrence.

K. Submit all premiums/payments to carriers and other parties. All

payments/premiums will be made to the selected Broker(s).

L. Provide assistance with claim administration and other risk management issues concerning the operation and improvements to the airports.

M. Service existing insurance policies as necessary by tendering claims,

assisting in adjustment of claims and collection of losses, reporting values, reviewing coverage issues, issuing Certificates of Insurance as needed, processing policy changes, etc. in a timely manner.

N. Prepare an annual report including a schedule of policies in force,

coverage provisions, premiums, insurance claims experience for the prior policy year and recommendations for possible adjustments to insurance coverage for the next policy year. The report should provide a summary of broker support services rendered during the prior year, with recommendations for broker services recommended for the subsequent year.

O. Monitor published financial information of Authority insurers and alert the

Authority’s Manager of Finance when the status of one or more of such insurers falls below Proposer’s minimum financial strength rating guidelines.



P. Provide full transparency to the Authority relative to the identification of all underwriters, intermediaries or other organizations providing insurance coverage under this agreement.

Q. Assist the Authority in developing insurance requirements for the various

contracts (design, construction, and tenant leases) and in reviewing insurance policies, contracts, and leases, as requested by the Airport Authority.

R. Help develop policies and procedure for managing relationships with

airport tenants, fixed based operators, contractors and other third party partners.

S. Discuss any new and/or emerging risks and advise on treatment

alternatives, for instance topics such as environmental exposures and cyber risk are currently under consideration,

T. Provide benchmarking data comparing the Authority’s program limits and

rates with peer organizations, specifically other airports.

U. Advise and coordinate with the Authority’s Manager of Finance regarding, but not limited to the following:

(i) Provide a high level of service for day to day contact on insurance

matters. The Broker shall respond to all reasonable requests by return contact within twenty-four (24) hours through its team leader or delegates.

(ii) Schedule semi-annual meetings with the Manager of Finance to discuss loss control issues, exposure changes, and general administrative matters.

(iii) Work with the Airport Authority’s Manager of Finance to review the cost effectiveness of retention levels or self-insurance.

(iv) Follow up with insurance carriers for timely issuance of policies and endorsements;

(v) Keep the Authority informed of significant changes and/or trends in the insurance marketplace and provide the Sponsor with an annual forecast of market conditions;

(vi) Provide other services that are normally and customarily required of an airport’s insurance broker.

Brokerage and consulting services must be provided for annual policy renewals and on an as needed basis. The selected Proposer must provide a thorough renewal presentation each year at least thirty (30) days before current policy expiration date with policy recommendations to include an analysis of available alternatives in consideration of Authority’s exposures. Brokerage services must also include market research, policy endorsements, certificates of insurance, and



coverage consultation on claims filed against the Authority. The Broker will also advise on a continuing basis, and in a timely manner, of any and all significant matters and developments regarding carrier service issues.

4.1.2 Frequency and Magnitude of Work Scope To assist the Proposers understand of the frequency and magnitude of the Scope of Work outlined above, the following questions and RTAA responses are provided to assist in your evaluation: A. What is the approximate number of certificates of insurance required per

calendar year over the past three years including Aviation? Answer: Approximately 3 to 5 certificates. B. Would RTAA accept a web-based memorandum as an option to hard copy

certificates? Answer: Yes, if it would also be acceptable to the parties requesting the

certificates. C. Describe specifically RTAA’s perspective and expectations associated

with “assisting with claims” versus “claims management”. Answer: The Authority’s perspective is that the insurance broker’s role is

one of support and assistance to staff if significant issues or disagreements surface. RTAA staff works directly with claims adjustors but on occasion request assistance from its insurance broker for coordination or direction with its underwriters.

D. Does RTAA engage a Third Party Administrator (TPA) for retained losses? Answer: No E. How many contracts per month are submitted to RTAA’ insurance broker

for review of insurance and indemnity language? Answer: Approximately 1-2 and staff also contacts our broker 1-2 times

per month for general insurance questions or clarification. F. During the past three calendar years, how many hours of loss control

services per year did RTAA’ insurance broker provide? Specifically, what categories of loss control services were provided during these same years?



Answer: The Authority does not track these hours but loss control services have been minor during the previous agreement. Our primary contact has been directly with the insurance company’s adjustor since as no major losses have occurred in the last three years. Primary support services by the broker are insurance contract language review, especially related to aviation related risks, and serving as an expert intermediary if disagreement occurs between RTAA and an underwriter.

G. Provide specific examples of special policy wording that RTAA’ insurance

broker has developed addressing risks that were previously not covered or restrictively covered.

Answer: The Authority does not keep track of special policy wording that

the current broker developed addressing risks. The types of risk are similar to other airports and the insurance broker assists the Authority in creating standard boilerplate language for categories of leases. For example, the Authority obtained title and began leasing over 100 T-hangars in the previous year. The current broker assisted in developing appropriate insurance language consistent with standard in the general aviation aircraft market.

H. Over the past three years at renewal and at mid-term intervals,

approximately how many Auto ID cards by state must be issued by RTAA’ insurance broker?

Answer: The RTAA has previously utilized a general ID card for all

vehicles that can be copied and placed in new vehicles as needed. However, approximately 100 individual ID cards were issued for FY 2013-14.

I. Over the past three years, how many separate invoices were required per

year to complete the required task for billing? Answer: One for each line of coverage as well an additional 2-4 per year

for revisions in insured values for asset purchases. J. Law Enforcement liability – is this in any part covered under a county/state

program? If not – are these employees of RTAA or contract employees? Answer: No, RTAA police services are not covered under a county/state

program. The police officers are employees of the RTAA. K. EMT Professional liability – is this in any part covered under a county/state

program? If not – are these employees of RTAA or contract employees?



Answer: No, these services are provided by firefighters who are in the employment of the RTAA. They are not covered under a county/state program.

L. Foreign Liability – please advise the RTAA exposures for this coverage?

Number of trips; individuals traveling; countries visited; etc. Answer: Approximately 1-3 trips per year. Individuals traveling include

but aren’t limited to the President/CEO, Vice-President/COO and Director of Air Service Business Development. Possible travel may include Canada, Mexico, Europe (England, France, Germany, Poland, Switzerland and the Netherlands, and Asia (China, Korea and Japan).

M. What are Reno-Tahoe Airport Authority’s air show liability requirements for

any air show/display including, but not limited to the National Championship Air Races & Air Show?

Answer: The current requirement is for Commercial General Liability and

Property Damage Insurance, as well as Auto and Property Damage Insurance, in the amount of $100,000,000 per occurrence.

4.2 Worker’s Compensation Insurance coverages to be placed on behalf of the Authority include providing coverage for employee on-the-job injuries as required by Nevada State law.

4.2.1 Scope of Work The Scope of Work for Worker’s Compensation includes the following:

A. Monitoring, notifying, advising and providing information to the Authority

on pending or new legislation at both the state and federal level. B. Monitoring, notifying, advising and providing information to the Authority

on market and like business benefit trends in the Western Region and the United States as a whole.

C. Obtaining, reviewing and evaluating proposals from various insurance

program providers. Assisting during contract negotiations and renewals, to negotiate the best terms and coverage.

D. Advising and assisting in developing and reviewing contracts, plan

documents, plan modifications/amendments, insurance policies and other documents for applicability, accuracy and consistency.



E. Advising and providing assistance in reviewing the worker’s compensation programs on a continuing basis to ensure that those plans are in compliance with state and federal requirements.

F. Advising and assisting the Authority with submitting written reports and

other documents in compliance with state or other requirements.

G. Preparing and delivering necessary reports to the Authority, including an annual report which contains a summary of the program in force, coverage provisions, premiums, insurance claims experience for the prior policy year and recommendations for possible adjustments to insurance coverage for the next policy year. The report should provide a summary of broker support services rendered during the prior year, with recommendations for broker services recommended for the subsequent year.

H. Scheduling quarterly meetings (or more often if necessary) with the

Authority to discuss claims experience, utilization trends and general administrative matters.

I. Providing claims data analysis and maintaining records of the financial and

claims experience, condition, and the progress of the Authority’s plans. J. Providing a high level of service for day to day contact on insurance

matters. K. Participating with the Authority when requested in communications with

boards or other independent bodies. L. Assisting with adjudication of specific claims when requested by the

Authority. M. Providing liaison services between the Authority and the worker’s

compensation provider including coordination of reporting and assistance resolving claims.

N. Performing special projects as requested by the Authority. For example:

Preparing special reports on claims or utilization data. Preparing benchmarking analysis and data. Participating in appropriate audits of vendors, if requested by the

Authority which may include detailed operation reviews. Assisting the Authority with the development of performance

guarantees relating to vendors’ performance of services to the Authority and evaluate the performance of vendors.



4.2.2 Frequency and Magnitude of Work Scope To assist the Proposers understand the frequency and magnitude of the scope of work under the Workers Compensation program, the following questions and RTAA responses are provided to assist in your evaluation:

A. Would it also be possible to obtain payroll and personnel headcount for

the past five years?

Answer: The average headcount is approximately 250. To obtain payroll information for the past five years, it is available in both the annual financial statements and budget presentation book located on the Authority’s website at the following web address: http://renoairport.com/about_airport/facts_figures/financials/

B. What has been the Experience Modification progression in your Workers’

Compensation plans over the last 3-5 years?

Policy Year

Experience Mod Factor

2012-13 0.93 2011-12 1.41 2010-11 1.27 2009-10 1.12 2008-09 1.10

C. Please confirm that the scope of this Request for Proposal does not

include Employee Benefits consulting and/or placements of insurance or other benefits related products.

Answer: While the Senior Benefits Specialist coordinates the Worker’s Compensation program, employee benefits are not included in this Request for Proposal.

5. Broker Compensation

The recently expired insurance broker agreement was based on total commissions of approximately 11% over all lines of coverage placed. This compensation paid all services provided under this contract including loss control, contract review and claims administration services. While the Authority is currently providing compensation based on a percentage of Total Annual Premiums Paid, under this Request for Proposal the Authority will be evaluating whether to modify this compensation structure to an annual fixed fee.



Therefore, the Authority is requesting that the Proposer provide compensation quotes on both premium options - Annual Fixed Fee and a Percent (%) of Total Annual Premiums, As outlined in Exhibit B – Broker Compensation, it is the Authority’s intent to evaluate which of the two options is most advantageous to the Authority. Should a Proposer wish to only propose one type of compensation (Annual Fixed Fee or a % of Total Annual Premiums), this is acceptable. It the Proposer wishes to submit a hybrid between the two approaches, please clearly indicate on your submission. Compensation may be a fixed fee, commissions, or a combination of revenue streams. The following disclosure requirements will be required of the successful Proposer under the new agreement:

A. Proposer agrees that all underwriters will be requested to provide their insurance proposals on a “net”, zero-commission basis or to clearly identify the commission level being charged to the Authority.

B. All commissions for policies placed directly with insurers and any other

compensation provided by those insurers to Proposer must be report to the Authority within fifteen (15) business days.

C. Commissions or compensation for policies placed directly with insurers

shall be credited toward the agreed upon pricing in the Compensation Proposal.

D. Commission or fees to an intermediary are outside of this agreement.

6. RFP Timeline and Submission Deadlines Proposals and any addenda thereto shall be submitted by the Proposer in hard copy. It is mandatory that proposals be signed by a duly authorized representative of the Proposer and be received and time recorded in the RTAA Purchasing and Materials Management Division not later than 2:00 p.m., Pacific Daylight Time (PDT), Thursday, October 24, 2013. Per the official time clock located in the Purchasing and Materials Management Division, proposals will be accepted if date and time stamped on or before 2:00 p.m.; date and time stamps of 2:00:01 p.m. or later will be rejected. The following schedule has been established for this selection process:

ACTIVITY COMPLETION DATE Request for Proposal Available September 19, 2013 Written Questions Due October 10, 2013 Written Responses to Questions Issued October 17, 2013



Proposals Due October 24, 2013 Short List Interviews (if necessary) November 11 to November

15, 2013 Final Negotiations with selected Proposer(s) December 1, 2013 Presentation to Board of Trustees December 12, 2013 Notice to Proceed December 19, 2013

A. Late proposals shall be disqualified from consideration. The timely and

accurate submission of a proposal is the sole responsibility of the Proposer.

B. Sealed hard copy and e-mail proposals shall be opened in the RTAA

Purchasing and Materials Management Division at 2:00 p.m. PDT, Thursday, October 24, 2013. Only the names of firms submitting proposals shall be read at this time.

C. Proposal information shall be kept confidential pending subsequent

evaluation and negotiation. Proposal contents shall only be released once the agenda has been posted for award consideration of a contract by the Board of Trustees.

D. The Authority reserves the right to negotiate any terms and conditions of

proposals received prior to acceptance/rejection of said proposal or contract resulting from proposal.

E. Six (6) hard copies (one original and five photocopies) of the proposal and

any addenda thereto shall be enclosed in a sealed envelope addressed to the Reno-Tahoe Airport Authority Purchasing and Materials Management Division, 2770 Vassar Street, Reno, Nevada 89502 or delivered to the office in person. Proposal envelope must indicate the name and address of the Proposer, Request for Proposal Number 13/14-04, and the opening date.

The Authority assumes no responsibility for errant delivery of proposals, including those relegated to a courier agent who fails to deliver in accordance with the time and receiving point specified. The Authority shall not be responsible for the opening of a proposal prior to the submission deadline that is not properly addressed or identified.

F. Proposals submitted by telephone or facsimile will not be accepted. G. All proposals shall be submitted in a form and manner as indicated in this

Request for Proposal document and by the proposal forms. Any proposal that is not submitted in a form and manner indicated by the Request for Proposal document and proposal forms or that contain information,



statements, conditions, or qualifications that place conditions or qualifications on the proposal submittal for purposes of making an award, or that alter any proposal terms, conditions, specifications, or forms that had not previously been approved by written addendum issued by the Manager of Purchasing and Materials Management, or that does not meet legal requirements, shall be declared as a qualified, conditional, or non-responsive proposal and may be rejected without further consideration. Any proposal response that does not fully respond to and comply with all of the detailed terms, conditions, specifications or any requests for information including the execution of the proposal forms may be declared non-responsive by the Airport Authority and rejected without further consideration. The Airport Authority shall not be responsible for errors or omissions of the proposer.

7. Proposal Information Requirements

Proposals shall be submitted in hard copy form and must contain all of the information stated in Section 7 of this RFP. The Proposer is required to provide a letter signed by a representative empowered to enter into contracts on behalf of Proposer. The cover letter must include the following: A. The Proposer 's name, address, telephone number, fax number and e-

mail address; B. A statement expressing the Proposer’s willingness and capability to

provide the insurance brokerage services requested in this RFP; C. The name, title and telephone number of the official(s) within the bank or

firm who will be the Authority's primary contact concerning the proposal;

D. Confirm that you are a licensed insurance broker in the State of Nevada and provide evidence that the Proposer meets the minimum qualifications as provided in Section 1.

E. List five (5) minimum verifiable client references of similar scope,

preferably using the proposed Team. For each client, the list must specify the type of work performed by your firm, the size of the client’s group and the period of time retained as a client. For each client, include the name, title, address, facsimile number, and phone number of a contact person who the Airport Authority may contact as a reference.

F. The Proposal must include all of the items within the topic areas stated

below:

F.1 Insurance Market Experience – Property /Liability (Airport) (i) Provide a discussion of the firm’s experience insuring public

entities. Specify any aviation or public sector accounts with



comparable size and exposure similar to the Authority serviced by your office.

(ii) List your ten principal markets, the lines of insurance placed with

them and the premium volume of each line of coverage. (iii) Identify those casualty markets and their specific lines (e.g.

aviation), in which your firm has underwriting authority and the limits available to you.

(iv) Specify those markets available to your firm who you feel would be

an appropriate match for the Authority and detail the reasons for this fit. Describe brokerage arrangements necessary to reach these markets.

(v) Describe any specialty markets to which you have access and that,

in your opinion, would be useful to the Authority. Please specify whether this access is exclusive.

F.2 Insurance Market Experience – Worker’s Compensation

(i) Confirm that you serve as a broker, independently, and are not

affiliated with any insurance company, third party administrative agency or provider network.

(ii) Describe your firm’s organization, philosophy, management and

provide a brief history in providing insurance brokerage service to secure worker’s compensation plans.

(iii) Describe your contractual relationships, if any, with organizations

necessary to your proposal’s implementation (e.g. data information services).

(iv) Detail your ability and your plan to monitor regulatory and legislative

developments regarding worker’s compensation at both the state and federal level and how developments, upcoming challenges and issues will be communicated to the Authority.

(v) Outline your ability to provide expertise and experience in the

worker’s compensation areas including analysis and design of the Authority’s worker’s compensation program. Explain in detail the types of analyses you have conducted relative to worker’s compensation for a plan with at least 200 employees.

(vi) Describe the issues and challenges related to worker’s

compensation plans, as you view them, facing the Authority in the



upcoming year and describe how your firm can assist with these issues and challenges.

(vii) Provide information about the educational webinars, online tools,

newsletters and other informative communications that are routinely provided to your clients. Provide sample copies.

F.3 Insurance Marketing Strategies and Approach (i) Describe your approach to developing underwriting and marketing

strategies to competitively secure the best coverage at the most reasonable costs for the Authority.

(ii) Outline your firm’s approach to obtaining quotations for specified

programs, responding to underwriter’s questions and providing additional data as requested.

(iii) Provide how your firm analyzes underwriter’s quotations. How do

you provide ensure the accuracy and conformity to specifications?

(iv) If a limited number of firms quote a certain line of insurance, what resources and information does your firm have available to you ensure the pricing received is consistent and competitive with similar risk profile organizations?

(v) Describe your approach to negotiating changes and refinements in

the quotation for the benefit of the Authority. How do you keep your client informed of the alternatives and communicate recommendations?

F.4 Other Insurance Brokerage Services Delivery Approach

(i) Explain how the Airport Authority would be kept abreast of market

changes and/or issues related to the maintenance of a risk management program.

(ii) Describe your firm’s capability to assess the solvency or quality of

insurers used by your firm. Explain to what extent and how this information would be communicated to the Authority.

(iii) Provide a description of the broker’s role in the adjustment of

claims and loss reporting. (iv) Describe the available resources and services to be provided

during an airport disaster.



F.5 Support Team Organization and Experience (i) Identify the proposed Account Executive/ Client Services Leader

who will be responsible for your firm’s activities and the proposed Organizational structure of the Client Service Team (“Team”) that would be assigned to the Authority account.

(ii) State the responsibilities and detail where each individual fits into

the services structure. Briefly summarize the relevant experience of the each member of the Team in handling accounts of this nature.

(iii) Provide a resume for each proposed Team member outlining

his/her relevant academic background, work experience, and length of service with your firm.

F.6 Supplemental Information

Proposer may submit any supplemental information it deems important to the evaluation of the proposal, including any unique or specialized services not specifically addressed on considered in the RFP. Any supplemental information or attachments provided by Proposer must also indicate, on each page, the item in this RFP to which it pertains.

F.7 Pricing Schedule (Compensation/Commissions) (i) Outline the proposed fixed fees, or alternatively the commission

structure, for brokerage services for Property Coverage, Liability Coverage, and Worker’s Compensation as provided on Compensation Proposal as provided on Exhibit B.

(ii) Provide a description of services to be provided within the

compensation structure.

(iii) Provide a description of services and fee schedule for services that are not within the fee proposal and may be provided to be provided at additional costs.

(iv) Describe the transparency policies and procedures your company

has in place to ensure disclosure of ALL income (direct, indirect, contingent, affiliated company, etc) received by your company and/or affiliates in connection with the placement of the Authority’s insurance program.



G. Has your firm or organization ever been debarred from doing business with any governmental entity, including but not limited to the any entity in the State of Nevada?

Yes No

If the answer is “Yes,” please provide information regarding each debarment by listing on an attached paper the following information regarding; (1) Debarring government entity; (2) Dates of debarment; and, (3) Reason of debarment.

H. Include a signed and completed Proposer’s Certification as provided in Exhibit “C”.

I. Each proposal shall conform to the requirements set forth in this section.

8. Late Proposal A proposal received after the receiving time specified shall be rejected. 9. Withdrawal of Proposal A proposal may be withdrawn by written, e-mail, or facsimile notice provided such

notice is received prior to the date and time set for the proposal opening. A request for withdrawal of a proposal after award shall not be considered.

10. Validity Period Pricing formulas submitted in response to this Request for Proposal solicitation are required to be valid through January 31, 2014.

11. Award of Proposal Award of proposal shall be made on the basis of the proposal that is most

advantageous to the Authority. In all instances, the decision rendered by the Authority shall be final.

A. The Authority reserves the right to reject any or all proposals, or parts

thereof, and to waive any informalities or irregularities. B. The Authority reserves the right to hold proposals for a period of ninety (90)

days from the date of opening before awarding or rejecting said proposals.

C. A contract shall not be assigned to any other person or entity without the consent of the Authority. Requests for assignment shall be submitted, in writing, to the Manager of Purchasing and Materials Management.

12. Questions/Clarifications Questions regarding the Request for Proposal shall be directed to Joyce A.

Humphrey, Manager of Purchasing and Materials Management, at (775) 328-6676,



or e-mailed to [email protected] and must be submitted not later than October 10, 2013.

A. Communications from prospective Proposers, such as in person, by

telephone, voice-mail, electronic mail, facsimile or other similar means, to any Trustee, officer, agent or employee of the Authority, other than the Manager of Purchasing and Materials Management, are prohibited. Except for inquiries directed through the Manager of Purchasing and Materials Management, the Authority, through its officers and employees, will not meet nor otherwise communicate individually with prospective Proposers. The Authority may, at its sole discretion, disqualify any Proposer who fails to observe this requirement.

B. If any questions or responses require revision to this solicitation as originally

published, such revisions will be by formal addendum only.

13. Request for Proposal Document and Addenda Copies of the Request for Proposal document and all addenda issued thereto may

be obtained from the Reno-Tahoe Airport Authority, Purchasing and Materials Management Division, 2770 Vassar Street, Reno, Nevada 89502 or downloaded directly from the Reno-Tahoe International Airport’s website at www.renoairport.com under The Authority – Competitive Solicitations.

14. Addenda The Authority Purchasing and Materials Management Division shall issue all

addenda to this Request for Proposal in writing. Additionally, all Proposers should continually monitor the Authority’s web site (www.renoairport.com) under The Authority – Competitive Solicitations to ensure receipt of any addenda associated with this RFP. All Proposers are required to include a signed and completed Proposer’s Certification as provided in Exhibit “C” Proposers are solely responsible for checking the Airport Authority’s website for any addenda issued for this solicitation.

15. Proposer Expenses Prospective Proposers are solely responsible for their own expenses in preparing

any proposal.

16. Status of Successful Proposer Successful Proposer shall have the status of an “Independent Contractor” as

defined by N.R.S. §§ 284.173 and shall not be entitled to any of the rights, privileges, benefits, and emoluments of either an officer or employee of the Reno-Tahoe Airport Authority.

17. Assignment No assignment of any agreement resulting from award of this proposal shall be

allowed including the right to receive payment without the express written



permission of the Manager of Purchasing and Materials Management or her designee.

18. Evaluation Criteria The Authority’s Evaluation Committee shall review each Proposer’s initial proposal

and select the Proposer(s) that it determines to be the most qualified, in the Authority’s sole discretion, pursuant to the evaluation criteria set forth in this section. A Proposer may be required to submit additional or supplemental information to the Authority to facilitate this selection process. An initial proposal may be rejected if it is determined by the Authority to be non-responsive provided that the Authority reserves the right to waive any irregularities or technicalities that it determines, in its sole discretion, to be minor in nature and in the best interests of the Authority. Further, any response may be rejected if it is determined by the Authority that the Proposer is not capable of providing the services satisfactorily or due to the failure of the Proposer to provide information requested relating to such determination.

The evaluation criteria utilized to evaluate proposals received shall include, but not be limited to, the following: A. Form of Proposal

Each proposal will be reviewed to determine compliance with the proposal preparation requirements outlined in Section 7 of this RFP. Elements considered for evaluation consist of, but are not limited to adherence to the proposal submission deadline and all required documentation

B. Client Service Team and Brokerage Qualifications

Proposers will be evaluated based on the demonstrated qualifications of the brokerage and client service team with an emphasis on the team leader and team members understanding and expertise in servicing the Authority’s insurance needs. Does the Team have significant experience to provide insurance brokerage services and demonstrate a solid understanding of airport related services and risks?

C. Proposal Approach and Organizational Capabilities

This category addresses the Proposer’s approach, expertise, and capabilities to provide the requested services. Criteria to be evaluated consist of, but are not limited to, soundness of the technical approach, ease of implementation, firm knowledge and expertise, available resources to monitor and provide update on insurance carriers and market changes, and quality and innovation of the proposed project plan. Does the Proposer have the long-term financial stability, responsibility, and capacity to fulfill the requirement work scope through the term of the agreement?



D. Price of Requested Services

This category will be evaluated based on the prices provided in Exhibit B. What Proposer submitted the lowest fixed fee/commission structure over the term of the agreement? What is the estimated financial impact to the Authority of the proposed pricing?

The Authority reserves the right to reject any Proposer that does not satisfy the Authority as to its ability to perform the work successfully. Causes for disqualification or rejection may include, but are not limited to, the following:

Lack of ability, capacity, and skill of Proposer firm to perform or to provide

the services required promptly or within the specified time;

The failure of the Proposer to proceed in an efficient manner toward completion of any negotiations.

Final award recommendation will be to the highest ranked Proposer. The

contract, if awarded, will be to the responsive and responsible Proposer whose proposal complies with the requirements prescribed in the Request for Proposals and is considered most advantageous to the Authority all factors considered. The successful Proposer shall be notified in writing that his proposal has been accepted and that he has been awarded the contract.

19. Non-Collusion

Proposers, by submitting a signed proposal, certify that the accompanying proposal is not the result of, or affected by, any act of collusion with any other person or company engaged in the same line of business or commerce or any other fraudulent act.

20. Ownership of Proposals All responses to this Request for Proposals solicitation shall become the property of the Authority.

21. Contract Negotiations

After recommendation of a selected Proposer by the selection panel, contract negotiations will commence. The contract will be based on the contract as provided in Exhibit D. If at any time contract negotiation activities are judged to be ineffective by the President/CEO of the Authority or designee, the Authority will cease all activities with that Proposer and begin contract negotiations with the next highest ranked Proposer. This process may continue until either the Proposer and the Authority execute a completed agreement or the Authority determines that no acceptable alternative proposal exists.



22. Appeal by Unsuccessful Proposer Any unsuccessful proposer may appeal a pending proposal award prior to award by

the Airport Authority. The appellant must:

A. Submit a written appeal to the Manager of Purchasing and Materials Management not later than fourteen (14) business days prior to the date scheduled for award consideration.

B. The written notice of appeal must include a statement setting forth, with

specificity, the reason(s) the person filing the notice believes the applicable provisions of law were violated.

C. Post, with the written appeal, a bond with good and solvent surety authorized

to do business in this state or submit other security in a form approved by the Reno-Tahoe Airport Authority, who will hold the bond or other security until a determination is made on the appeal.

D. Post the bond or other security with the notice of appeal in an amount equal

to the lesser of twenty-five percent (25%) of the total value of the proposal submitted by the person filing the notice of appeal or two hundred fifty thousand dollars ($250,000).

E. A notice of appeal filed in accordance with the provisions herein operates as

a stay of action in relation to the awarding of any contract until a determination is made by the Reno-Tahoe Airport Authority on the appeal.

F. A person who makes an unsuccessful proposal may not seek any type of

judicial intervention until the Reno-Tahoe Airport Authority has made a determination on the appeal and awarded the contract.

G. The Reno-Tahoe Airport Authority is not liable for any costs, expenses,

attorney’s fees, loss of income, or other damages sustained by a person who makes a proposal, whether or not the person files a notice of appeal pursuant to this section.

F. If an appeal is granted, the full amount of the posted bond will be returned to

the appellant. If the appeal is denied or not upheld, the Reno-Tahoe Airport Authority may make a claim against the bond or other security in an amount equal to the expenses incurred by the Reno-Tahoe Airport Authority because of the unsuccessful appeal. Any money remaining after the claim has been satisfied shall be returned to the appellant.

23. Agreement Form

Exhibit D hereto shall form the basis for any resulting agreement for this work.



24. Funding Restrictions The Airport Authority reserves the right to cancel the award in whole or in part or reduce the scope necessary without prejudice or liability to the Airport Authority if funding is not available or if legal restrictions are placed upon the expenditure of monies for this category of services. Should this occur, the Airport Authority shall advise the successful proposer in writing.



EXHIBIT A Insurance Coverage and Premium Summary

RENO-TAHOE AIRPORT AUTHORITY

SUMMARY FO INSURANCE PREMIUMS FOR POLICY TERM: JULY 1, 2013 TO JULY 1, 2014

Coverage Carrier Limits & Deductibles Premium

Property

Lexington Insurance Co. (AIG) & Lloyds of London*

$610,872,396 Property Values $50 mil EQ / $25 mil Flood B & M incl. & Builders Risk Coverage for Expansion Project at Stead Airport Project $4,407,856 $25,000 /Loss Except Flood $500k & EQ 1% of Property Value (min ded $100,000 per loc.) $710,090.75

Inland Marine Hanover

$10,976,708 Total Value(Equip valued over $100,000/Item)Deductible: $10,000 Per Occurrence $15,850.00

National Flood Insurance** NFIP/Hartford $500,000 Policy Limit per building $11,369.00

AutoFederal Insurance Co.

Auto Liability Limit: $1,000,000 CSL Deductible: $0 $54,532.00

Law Enforcement LiabDarwin Select Insurance Co*

$5,000,000 Annual AggregateDeductible: $50,000 Per Occurrence $51,174.91

EMT Prof Liab James River Ins Co*$5,000,000 Annual AggregateDeductible: $5,000 Each Claim $27,902.35

Crime Great American$5,000,000 Annual Aggregate Employee DishonestyDeductible: $10,000 Per Occurrence $8,502.00

Airport Liability

Commerce & Industry Insurance Co.

$300,000,000 Per Occurrence$300,000,000 Annual AggregateDeductible:$25,000 Each Occurrence / $100,000 Annual Aggregate $160,460.00

Public Official Liab / EPL

Nat'l Union Fire Insurance Co. of Pittsburgh PA

$10,000,000 Annual AggregateDeductible: $100,000 Each Wrongful Act $63,113.00

Foreign PackageAce American Ins Co

$1,000,000 Each Occurrence & Annual AggregateDeductible $0 $2,500.00

Fiduciary Liability Great American$2,000,000 Annual AggregateDeductible: $1,000 Per Claim $3,200.00

TOTAL $1,108,694.01Note: * Indicates that insurance carrier is a surplus lines carrier in Nevada. The premium column includes surplus lines taxes and fees.Note: ** NFIP Flood Insurance premium is estimated. Exact premiums can not be determined until policies renew in February, 2014.



EXHIBIT B

Broker Compensation – Fee Structure

The Authority is currently compensated based on a percentage of Total Annual Premiums Paid. As part of this Request for Proposal, the Authority is evaluating whether to modify this compensation structure to an annual fixed fee. Therefore, please provide the following information on our proposed compensation under either alternative:

Insurance Coverage

Annual Fixed Fee

% of Total Annual Premiums Paid by the

Authority Property and Liability Insurance

Year One Year Two Year Three Year Four Year Five

Worker’s Compensation Year One Year Two Year Three Year Four Year Five

Grand Total A. Explain how the Broker will disclose and remit all compensation received by the

Broker as a result of coverage placed on behalf of the Authority. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. Provide a detailed explanation of any ancillary services which are not included in the

annual fixed fee or percentage of total annual premiums compensation outlined above.

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Insurance Brokerage Services Page 26 of 34 RFP #13/14-04

EXHIBIT C PROPOSER’S CERTIFICATION

As a Proposer, the company listed below has carefully examined the Reno-Tahoe Authority Request for Proposal (RFP) 13/14-04, which includes scope, requirements for submission, general information and the evaluation and award process. The proposer below acknowledges receipt and incorporation of the following addenda, and the cost, if any, of such revisions has been included in the terms and conditions of the direct loan to fund the Subordinate Notes. Addendum #________ Date:______ Addendum #________ Date:______ Addendum #________ Date:______ Addendum #________ Date:______ The Proposer hereby proposes to provide the services requested in this Proposal. I agree to hold the pricing formulas contained in this bid from the date of award through January 31, 2014. The Proposer agree that the Authority terms and conditions herein shall take precedence over any conflicting terms and conditions submitted with the Proposal and agree to abide by all conditions of this document. I certify that all information contained in the Proposal is truthful to the best of my knowledge and belief. As a representative of the Proposer, I further certify that I am duly authorized to submit this Proposal on behalf of the company as its agent and that the company is ready, willing and able to perform if awarded a contract. I further certify that this Proposal is made without prior understanding, agreement, connection, discussion, or collusion with any other person, company, or corporation submitting a Proposal for the same product or service; no officer, employee, or agent of the Authority or of any other Company who is interested in said Proposal; and that the undersigned executed this Proposer’s Certification with full knowledge and understanding of the matters therein contained and was duly authorized to do so. ____________________________ _____________________________________ NAME OF BUSINESS MAILING ADDRESS ____________________________ _____________________________________ AUTHORIZED SIGNATURE CITY, STATE & ZIP CODE ____________________________ _____________________________________ NAME, TITLE, TYPED TELEPHONE NUMBER / FAX NUMBER _____________________________ _____________________________________ FEDERAL IDENTIFICATION # E-MAIL ADDRESS



EXHIBIT D

Professional Service Agreement

This agreement, entered into as of this day of , 2013, by and between: RENO-TAHOE AIRPORT AUTHORITY hereinafter referred to P. O. Box 12490 as the SPONSOR Reno, Nevada 89510 AND: Name of Company hereinafter referred to Address as the CONSULTANT Address FOR THE PURPOSE of providing the following professional services: INSURANCE BROKER SERVICES as the PROJECT DO HEREBY, mutually agree as follows: ARTICLE 1 – CONSULTANT’S SERVICES AND RESPONSIBILITIES 1.1 Engagement of the Consultant. The Sponsor hereby agrees to engage the

Consultant who in turn agrees to perform the technical and professional services necessary to produce the Project. Furthermore, it is expressly understood that the Sponsor has the right to approve the terms and conditions of this Agreement as well as the proposed scope and costs of the technical and professional services to be conducted as part of the Project.

1.2 Scope of Services. The Consultant shall do, perform and carry out in a

satisfactory manner, as determined by the Sponsor, the services generally outlined below and specifically indicated in Exhibit A – Scope of Services, attached and incorporated by reference hereto.

1.3 Notice to Proceed. The Sponsor shall issue the official Notice to Proceed. Any

work performed by Consultant prior to the issuance of the Notice to Proceed shall be at Consultant’s own risk. The Sponsor shall not be liable for claims of services performed until the official Notice to Proceed has been issued.



1.4 Time of Performance. The term of this agreement shall be for a period of five (5) years. The first year shall commence on .

1.5 Responsibility of the Consultant. The Consultant shall be responsible for the

professional quality, technical accuracy and the coordination of all services provided by the Consultant under this Agreement. The Consultant shall, without additional compensation, correct or revise any errors or deficiencies in any documents prepared in association with this Project.

1.6 Responsibility of the Sponsor. The Sponsor shall cooperate with the

Consultant by making a diligent effort to provide items reasonably necessary for the Consultant to be able to provide its services, including all previous studies, plans, drawings, specifications and design and construction standards; assistance in obtaining necessary access to public and private lands; legal, accounting, and insurance information required for various projects; necessary permits and approval of governmental authorities or other individuals; issuance of public notices, and providing locations and minutes for all meetings.

1.7 Additional Services. For purposes of this Agreement, additional services

means services not identified in Exhibit A - Scope of Services, but that relate to the services being performed in connection with the Project. The Consultant shall perform additional services only upon the written request of Sponsor. The fee for any additional services required by the Sponsor will be based upon actual hours and expenses incurred by the Consultant, charged in accordance with the attached Exhibit B - Schedule of Fees, and incorporated by reference hereto.

ARTICLE 2 - COMPENSATION AND METHOD OF PAYMENT 2.1 Compensation. It is expressly understood and agreed that the total compensation

to be paid to the Consultant for provision of insurance broker services shall be a firm fixed price amount not to exceed for the services specified in Exhibit A - Scope of Services. Such sum includes all expenses and shall constitute full and complete compensation for the Consultant's services.

2.2 Method of Payment. The Sponsor shall pay to the Consultant no more than the fixed price amount set out in Article 2.1 above. Payments shall be at monthly intervals subject to receipt of requisitions for payment from the Consultant specifying that he has performed the work and is entitled to the amount requisitioned under the terms of this Agreement.

2.3 Consultant Responsibilities for Compensation. The Consultant shall prepare

monthly invoices and progress reports which clearly indicate the progress to date and the amount of compensation due by virtue of that progress. All requisitions for payment shall be for work completed unless otherwise agreed to by the Sponsor, in writing.

2.4 Sponsor Responsibilities for Compensation. The Sponsor agrees to pay the

Consultant's invoices net thirty (30) days from the date of receipt of the invoice from the Consultant. It is expressly understood that the Sponsor has the right to withhold payment on any invoice if he feels that the Consultant has not performed the requisitioned work efforts in a satisfactory manner. If the Sponsor



does decide to withhold payments to the Consultant for any reason, he must provide written notifications and an explanation to the Consultant within ten (10) days of the date of the invoice.

2.5 Prompt Payment. The Consultant agrees to pay each sub-consultant under this

Agreement for satisfactory performance of its agreement no later than fifteen (15) days from the receipt of each payment the Consultant receives from the Sponsor. The Consultant agrees further to return retainage payments to each sub-consultant within fifteen (15) days after the sub-consultant’s work is satisfactorily completed. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of the Sponsor.

ARTICLE 3 - CHANGES TO THE SCOPE OF SERVICES The Sponsor may, at any time, and by written change order, make changes in the services to be performed under this Agreement. If such changes cause an increase or decrease in the Consultant's cost or time required for performance of any services under this Agreement, an equitable adjustment shall be made and the Agreement shall be modified in writing accordingly. Any claim of the Consultant for adjustment under this clause must be submitted in writing within thirty (30) days from the date or receipt by the Consultant of the notification of change. All changes to the Scope of Services shall be submitted on “Amendment to Professional Services Agreement” form as provided by Sponsor. No services for which an additional cost or fee will be charged by the Consultant shall be furnished without the prior written authorization of the Sponsor. ARTICLE 4 - TERMINATION OF THE AGREEMENT The Sponsor may, by written notice to the Consultant, terminate this Agreement in whole or in part at any time, in its sole discretion with or without cause. Upon receipt of such notice, the Consultant shall: (1) immediately discontinue all services affected (unless the notice directs otherwise); and (2) deliver to the Sponsor copies of all data, drawings, reports, estimates, summaries and such other information and materials as may have been accumulated by the Consultant in performing this Agreement, whether completed or in process. Upon termination of this Contact by the Sponsor, Consultant shall be paid the reasonable value, based on Exhibit A, of all work satisfactorily performed by the Consultant prior to termination. ARTICLE 5 - ASSURANCES 5.1 Examination of Records. The Sponsor, at any time, may cause an audit of the

Consultant’s books of accounts and financial records to be made by an employee or a representative of the Sponsor. The books of accounts and records include the complete general ledger and any source documents or recordings that support the general ledger, including calculations, authorizations, attestations, warrants, affidavits, or other evidence of business transactions between the



Sponsor and the Consultant. Such books of accounts and records shall be made available to the Sponsor upon demand. Failure to provide the Sponsor with adequate books of accounts and records may be deemed by the Sponsor to be a breach of the Agreement.

All books of accounts and records are to be made available within the greater Reno/Sparks metropolitan area for a period of three years following the completion of the contract or agreement. If such books of accounts and records are not available in the greater Reno/Sparks area, then the Consultant shall pay the expenses of the Sponsor representative to travel to the location of the books and records.

5.2 Ownership of Documents. All documents, including but not limited to, drawings,

plans, specifications, maps, charts, computations, and other data prepared or obtained under the terms of this Agreement, shall become the sole property of the Sponsor and the Sponsor has the right to copyright, register, or trademark as it deems appropriate with no licensing or permit fee to the Consultant. Reproducible copies of plans, maps, charts, drawings, and other pertinent data shall be provided to the Sponsor upon completion of services or early termination of this Agreement under Article 4. Consultant shall not provide any of the Sponsor’s documents to others without prior written authorization from the Sponsor.

5.3 Compliance with Laws, Rules, and Regulations. Consultant agrees to be bound

by the provisions of Sponsor's rules and regulations, all applicable laws, rules, and regulations adopted or made applicable to Consultant by any local, state, or federal authority having jurisdiction over the project or the Sponsor.

ARTICLE 6 - SUSPENSION OF WORK The Sponsor may order the Consultant, in writing, to suspend all or any part of the work for such period of time as the Sponsor may determine to be appropriate for the convenience of the Sponsor. If the performance of all or any part of the work is, for any unreasonable period of time, suspended or delayed by an act of the Sponsor in the administration of this Agreement, or by its failure to act within the time specified in the Agreement (or if no time is specified, within a reasonable time), an adjustment shall be made for any increase in cost of performance of this Agreement necessarily caused by such unreasonable suspension or delay, and the Agreement modified in writing accordingly. However, no adjustment shall be made under this clause for any suspension or delay to the extent: (1) that performance would have been suspended or delayed by any other cause, including the fault or negligence of the Consultant; or, (2) for which an equitable adjustment is provided for or excluded under any other provision of this Agreement. ARTICLE 7 - INTERESTS AND BENEFITS 7.1 Interest of Consultant. The Consultant covenants that he presently has no

interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be



performed under this Agreement. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed.

7.2 Interest of Members of Sponsors and Others. No officer, member or

employee of the Sponsor and no member of its governing body, who exercises any functions or responsibilities in the review or approval of the undertaking of carrying out of the services to be performed under this Agreement, shall participate in any decision relating to the Agreement which affects his personal interest or have any personal or pecuniary interest, direct or indirect, in the Agreement or the proceeds thereof.

ARTICLE 8 - ASSIGNABILITY The Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written consent of the Sponsor thereto provided, however, that claims for money due or to become due to the Consultant from the Sponsor under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Sponsor. ARTICLE 9 - MISCELLANEOUS 9.1 Indemnification. Consultant shall defend, indemnify, and hold harmless the

Sponsor, its Trustees, officers, agents, and employees from and against any and all liabilities, damages, losses, claims, actions, or proceedings, including, without limitation, reasonable attorneys’ fees that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the Consultant or the employees or agents of the Consultant in the performance of this contract. The Sponsor shall give the Consultant reasonable notice of any such claims or actions. The Consultant shall also use counsel reasonable acceptable to the Sponsor in carrying out its obligations. Indemnity requirements shall survive the expiration or early termination of this agreement. Acceptance of the Consultant’s services by the Sponsor shall not operate as a waiver of the rights granted the Sponsor herein. Acceptance of Consultant’s services by the Sponsor shall not operate as a waiver of the rights granted the Sponsor herein.

9.2 Worker's Compensation Insurance. Consultants and subcontractors shall

obtain and keep in full force and effect throughout the term of this Agreement compensation insurance necessary in connection with the performance of this Agreement to protect Consultants and subcontractors and their employees under workers compensation and industrial insurance laws. Consultants and subcontractors shall indemnify and hold harmless the Sponsor, its officers, agents, and employees from any liabilities, claims, losses, or expenses which result to Sponsor by virtue of Consultant’s and subcontractor’s failure to comply with this provision and Consultants and subcontractors hereby waives the right to any amount due under this Agreement which equals the amount of any premiums Sponsor has had to pay for Consultant’s and subcontractor’s failure to comply with this provision.



9.3 Liability Insurance. Consultant shall procure at Consultant's expense and keep in effect at all times during the term of this Agreement until the completion of the work hereunder, or until early termination of this Agreement, whichever occurs first, the forms of insurance set forth in this paragraph. All policies or certificates shall contain a provision that written Notice of Cancellation or any material change in said policy by the insurer shall be delivered to Sponsor thirty (30) days in advance of the effective date thereof. All policies of insurance shall be primary coverage for all claims and losses arising from or connected with the work performed under this Agreement.

Consultant shall maintain all insurance hereunder with insurance

underwriters authorized to do business in the State of Nevada and who are satisfactory to Sponsor. All policies shall name Sponsor, its Trustees, officers, agents and employees as additional named insured or shall contain a cross liability endorsement. Consultant shall furnish Sponsor with certificates from insurance carriers showing all insurance required hereunder to be in full force and effect during the entire term of this Agreement, or shall deposit with Sponsor certified copies of said policies.

Consultant shall, as a condition precedent to commencement of services,

provide commercial general liability and automobile liability insurance for property damage and personal injuries or death arising out of any one (1) accident or event in a minimum sum of ONE MILLION AND NO/100 DOLLARS ($1,000,000.00) combined single limit for one (1) or more persons injured and property damage in each occurrence.

9.4 Governing Law. It is understood and agreed by and between the Sponsor and

Consultant that this Agreement shall be deemed and construed to be entered into and to be performed in the County of Washoe, State of Nevada, and it is further understood and agreed by and between the parties hereto that the laws of the State of Nevada shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of the Agreement. It is further understood and agreed by and between the parties hereto that any and all actions between the parties brought as a result of this agreement will be brought in the Second Judicial District Court in and for the County of Washoe, State of Nevada.

9.5 Notices. Any notices required or permitted to be given under this Agreement

shall be deemed given when mailed to a party by certified mail, return receipt requested, to the address set forth following the signatures of the parties herein, or to such other address as a party shall give the other from time to time.

9.6 Successor in Interest. Subject to the provision regarding assignment, this

Agreement shall be binding upon, and inure to the benefit and detriment of the successors in interest and permitted assigns of the parties hereto.

9.7 Amendments. This Agreement contains the entire understanding between the

parties with reference to the matters contained herein, there being no terms, conditions, warranties, or representations other than those contained herein, and no amendments hereto shall be valid unless made in writing and signed by both to this Agreement.



9.8 Severability. To the extent that any provision hereof shall be finally determined by a court of competent jurisdiction to be void, illegal or otherwise unenforceable, the same shall have no affect upon the enforceability of the remaining provisions of this Agreement.

9.9 Attorneys’ Fees. In the event suit or action is instituted to enforce any of the terms

or conditions of this Agreement, or litigation concerning the rights and duties of the parties to this Agreement, the losing party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statutes, such sum as the court may adjudge reasonable after taking into account the extent to which the prevailing party prevailed as attorney's fees in such suit or action, in both trial and appellate court.



IN WITNESS THEREOF, the parties hereto have executed this Agreement the day

and year first above written.

RENO-TAHOE AIRPORT AUTHORITY CONSULTANT

By: By:

Marily M. Mora, A.A.E. President/CEO

STATE OF s. s. COUNTY OF s. On this day of , 2013 personally appeared before me, a notary public, , known to me to be the (title) of the Consultant named herein, and acknowledged that he executed the within Agreement on behalf of said Consultant. Notary Public Attachments: Exhibit A – Scope of Services Exhibit B – Schedule of Fees