06-X SCCA/Camp MaxeyAGENDA INFORMATION SHEET
PROJECT: Consider approval of an agreement for the City of Paris to be an assurer to the Sports
Car Club of America (a private organization) for the Club's obligations to the Texas Military Facilities
Commission with regard to a sports car rally at Camp Maxey.
BACKGROUND: The City of Paris has been approached by the Lamar County Chamber of
Commerce to approve and sign an agreement by and among the Texas Military Facilities
Commission, the Sports Car Club of America, Lamar County, and the Lamar County Chamber of
Commerce to allow the Sports Car Club to conduct its annual road rallies at Camp Maxey. The City
is being asked to sign the agreement in the role of an assurer, meaning that ifthe Sports Car Club fails
to meet its obligations under the agreement, the City, along with the Chamber and the County, will
be called upon to fulfill those obligations. This arrangement was a requirement imposed by the Texas
Military Facilities Commission during the course ofameeting ofthe Commission with representatives
of the Lamar County Chamber of Commerce.
The proposed agreement is included with the agenda materials. The responsibilities assumed by the
City in signing this agreement are found under paragraph II C-F and paragraph VI C. Under the
provisions of paragraph II C-F, the SCCA is obligated to restore all roads and other disturbed
property at the club's expense and to reimburse the Commission and the AGD for their expenses
incurred for use of their personnel for pre- and post-rally inspections of the premises. If the SCCA
fails to meet this obligation, then the assurers, as a group, are obligated to assume those
responsibilities and fulfill them on behalf of the club. I would point out there is no allocation among
the assurers as to who would be the first entity obligated to step in for the club if the club fails to
perform. Ifthe SCCA and the assurers fail to fulfill their commitments under subparagraphs C& D,
then a$5,000.00 deposit will be utilized by the commission to defray these expenses. Although the
contract does not indicate who will post the deposit, the Lamar County Chamber of Commerce has
indicated it will provide such a deposit.
With regard to the obligations assumed by the City under paragraph VI C, relative to the other
obligations assumed by the City, this obligation is the most crucial. Under paragraph VI C, the
assurers (again as a group) have agreed to indemnify and hold harmless the Commission and the AGD
from the claims of persons or entities arising out of the conduct by the SCCA of the rallies authorized
under the contract, to the extent allowed by the constitution and laws of the State of Texas. Again,
the allocation of such potential liability among the assurers is not stated. Presumably, this obligation
to step in and indemnify a private sports car club would be subject to paragraph II B in which the
SCCA is obligated to obtain a general liability insurance policy in the amount of $5,000,000.00,
naming the commission and the AGD as additional insured. However, because the level of liability
for personal injury suits, including those involving automobile mishaps, in today's courts has resulted
in enormous cash judgments, coverage of even $5,000,000.00 may be inadequate given a particular
circumstance.
To be certain of the City's position in this situation, the Legal Deparhnent forwarded a copy of the
contract to the City's insurer, the TML Insurance Risk Pool to assess whether or not the City's
coverage would apply to the obligations being assumed under this contract. The response from Ms.
Stephanie Harvey of the TML Risk Pool is included with the agenda materials. Ms. Harvey makes
certain suggestions also endorsed by the Legal Department with regard to the contractual
arrangement, and otherwise describes the City's coverage which would apply to this circumstance.
First, Ms. Harvey recommends the City request additional named insured status under the insurance
policy to be obtained by the SCCA. This would mean that as to any judgment of liability against the
City, the coverage under the $5,000,000.00 policy would apply firstto such liability. Secondly, Ms.
Harvey points out that if punitive and exemplary damages are awarded in a given instance, the TML
risk pool will not cover the City for such damages assumed by contract. Under this proposed
contract the City as an assurer is assuming all potential liability, without excluding punitive and
exemplary damages. Finally, Ms. Harvey points outthatthe TML coverage would apply only ifand
upon a finding of a lawful obligation on the part of the City to pay. That is, the City could make no
gratuitous payment and expect TML coverage to apply.
On April 9, 2002, following the City Council's original consideration of this proposed contract on
Apri18, 2002, the Legal Deparhnentcontacted Mr. Cue Boykin, an AssistantAttorney General whose
responsibility is to represent state agencies, including the Texas Military Facilities Commission. Mr.
Boykin, who drafted the contract in question, acknowledged the obligation he had sought to impose
upon the City of Paris was in all likelihood an obligation contrary to the Texas Constitution.
According to Mr. Boykin, the Texas Attorney General's Office has issued opinions stating broad and
general indemnification clauses, when specified in contracts entered into by governmental entities,
violated the Texas Constitution because such obligations constituted an open ended indemnity and an
unfunded debt. In addition, Mr. Boykin acknowledged the very language he had included in the
contract, that such assurances were effective only "to the extent allowed by the constitution and laws
of the State of Texas," was intended to recognize there may be constitutional restraints on such
indemnification. Mr. Boykin acknowledged he had personally placed this language in the contract
on behalf of his client agency for the agency to feel better with regard to the potential for such
liability.
Mr. Boykin's statements track the understanding of the City Legal Department with regard to such
constitutional restraints, but it also should be emphasized the Attorney General's opinions on such
topics, while entitled to great weight in any subsequent court proceeding, are not binding on any
Texas court and are treated as the opinion of another attorney. However, because such defenses are
available to the City, any approval of such an agreement should directly reflectthe City's preservation
of its right to raise such defenses if necessary in any subsequent proceeding.
DESCRIPTION: Ifthe City Council desires to approve this agreement, the City Council should
approve the agreement only conditioned upon the City being a named and co-insured on the
$5,000,000 general liability policy to be provided by the Sports Car Club of America. In addition,
any such approval should be explicitly conditioned upon the City reserving any and all defenses the
City may have under the constitution and laws of the State of Texas with regard to the obligations of
an assurer as stated in the agreement. Third, the City Council should be aware that as referenced
above, even though the Texas Attorney General has opined that such blanket indemnifications are not
consistent with the constitution, such an opinion does not protect the City from a court disagreeing
with the Attorney General's opinion in a given instance. Furthermore, the City Council needs to
understand that even with the City being included as a co-insured or additional insured on the Sports
Car Club policy, the City's own TML insurance coverage applies only to actual damages under the
contract, and will not apply to punitive or exemplary damages assumed by the City under the
Contract. Finally, one other aspect of the arrangement which could be considered is to determine
the order of responsibility among the assurers to meet these obligations. The contract itself is silent
on the question of whether or not this responsibility would be shared equally among the Chamber of
Commerce, Lamar County, and the City ofParis or whether one entity would have firstresponsibility
over another.
COSTS: There is no direct cost set out in the contract which would accrue to the City. All costs are
contingent costs, to assume the responsibilities of the sports car club to make necessary repairs to the
premises, pay for personnel costs of the State, and ultimate responsibility for any liability.
RECOMMENDED ACTION: Consider the request for the City to enter into the proposed
agreement.
STAFF CONTACT: Gary Vest, Lamar County Chamber of Commerce; Larry W. Schenk, City
Attorney; and Michael E. Malone, City Manager
COUNCIL DATE: Consider at City Council's regular Council meeting of May 13, 2002.
ADDITIONAL MATERIALS: See enclosed Resolution of approval, proposed Surface Use
Agreement, and correspondence from Texas Municipal League Intergovernmental Risk Pool.
DRAFT
J:WttorneyW.ICE~6WO~CURRENT\6orfatt Use Agrm Cvnp Maeey Res.wptl
May 10, 2002
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, APPROVING AND AUTHORIZING A SURFACE USE
AGREEMENT BY AND AMONG THE TEXAS MILITARY FACILITIES
COMMISSION, THE SPORTS CAR CLUB OF AMERICA, LAMAR
COUNTY, THE LAMAR COUNTY CHAMBER OF COMMERCE, AND
THE CITY OF PARIS REGARDING THE USE OF CAMP MAXEY FOR A
ROAD RALLY CONDUCTED BY THE SPORTS CAR CLUB OF
AMERICA; CONDITIONING SAID APPROVAL ON THE CITY BEING
NAME A CO-INSURED ON THE SPORTS CAR CLUB INSURANCE
POLICY; RESERVING THE CITY'S RIGHTS AND DEFENSES UNDER
THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS; MAHING
OTHER FINDINGS AND PROVISIONS RELATING TO THE SUBJECT;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the Lamar County Chamber of Commerce has approached the City ofParis to
be a contractual participant as an assurer in a Surface Use Agreement by and among the Texas
Military Facilities Commission, the Sports Car Club of America, Lamar County, and the Lamar
County Chamber of Commerce with regard to road rallies to be conducted by the Sports Car Club
of America at Camp Maxey; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the City of Paris does hereby approve and authorize the Mayar to execute
and the City Clerkto attestto an Agreementby and among the Texas Military Facilities Commission,
the Sports Car Club of America, the City of Paris, Lamar County, and the Lamar County Chamber
of Commerce, a copy of which is attached hereto as Exhibit A and for all purposes incorporated
herein, whereby the City of Paris, to the extent permissible under the laws and Constitution of the
State of Texas, will serve as an assurer to certain obligations of the Sports Car Club of America under
said agreement, the purpose of which is to allow the Sports Car Club of America to conduct sports
car rallies on federal property located at Camp Maxey.
Section 3. That the approval of said agreement shall be and is hereby expressly conditioned
upon the City of Paris being named as an additional insured or co-insured for all purposes on that
general liability policy in the amount of $5,000,000 to be issued to the Sports Car Club of America
as a requirement of Article II B of the above referenced agreement otherwise, the authorization for
the City to enter into said contract as contained herein shall be null and void.
Section 4. That by entering into said contract, the City of Paris does hereby in all things
reserve and maintain any and all exemptions, exceptions, or defenses under the Constitution and Laws
of the State of Texas, including but not limited to any and all such defenses as the same may arise
under Article III, Section 52 or other provisions of the State Constitution, as said exemptions,
exceptions or defenses shall apply to the obligations of the City of Paris as an assurer under this
agreement.
Section 5. That this resolution shall become effective from and after its date of passage.
PASSED AND APPROVED this 13th day of May, 2002.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
SURFACE USE AG.REEMENT
STATF Ol
~ TEXA$ §
KNO W ALL MEN BY THESE PRESENTS:
CQIJNTYOFTRpV[S §
THIS AGREL•MEN'Cis made nnd entered in[o eCfec[ive lanuary 2002 among the TEXpS
M1Lli'ARY FACILITICS COMMISSION: (COMMI.SS]ON), the SPOJITS CAR CLUB OF AIr1EZtlGA,
(SCCA), THE CITY OF YARIS, LAMAR COUNTY, and the LAMAR COVNTY CtL1&ID6R OF
COMMERCF. (cht letter J entiticijaintly mFeited (o as ASSURER$),
SUBJECT OF AGREF,MEIYT AND PROPERTY.OESCAIPTION
COMMISS[ON grants to SCCA the right to use the ruedways and so much of the idditional
property located.in Lamar Counry Tesas, tommoNy referred [e as Camp Maxey (che Premises) as cequircd
for the sole purpose dascribed iu Sccrion N. Le.Teof. A nup generally describing Camp Maxey is attachad
as Exhibit A and incorporated hcrein by this refetence for all purposes.
II. TERM AlYD CONSIDEItATION
'[hc Agreemcnt is Cor u pcriod of 1 year, beginning lanuary I, 2002 aud anding December 31,
2002, regudleaa otthe dpce Tigned, (hc tatal cpnsideratiuu tbr thjs Agreem.enf is
A. Payment to the Comtnjs9ion of the sum of TL•N DOLLpRS (S 10 md 00/100) per enhy per rally.
B. The furnishing by SCCA, of a ganecal liabiliry insurance policy in the amount of Five Million Dollazs
($5,000,000 utd 00/100) neming the COMMISSION and the Adjutant Gcneral's Dcpartment of the Stxlc of
Tcxas (AGD) as add'ltional i~~eds.
C. 'fhe cummitment by SCCA to restore all ro ads and nny other disturbed property to theu pro-rally
condi['lon xe detertnincd by pct• and ppsb[ally inspections of the Premises COMMISSION and AGD
personnel.
D. The assurance uf the qSSURERS thut, upon SCCA's failute to hopoc its commitmmt in C. above,
each ASSURE.R will devpte thc neeessnry persunnel apd ecjuipment [o Complete the Subsectiun C.
obGgetions.
E. Tht depoait with the Commi3sioq of a Sccuriry Depasic in the amount oEFIVE THOUSAND
DOLLARS ($S,OOU ANp 00/I00) to protect the COMMISSION in the event tAat the SCCA atui
EXWIBITA
£0:39tld i216 28L £06:01 £0S2-b8L-£06 3323L407 j0 839WtH3:1,1021A 8£:b0 20 0-2IdW
AS5UR$RS fail to fulfill thei.r cortvnimtent Ynd assurancc in Subsecrions C. and D., rtepectively.
F. 'Ilie zgreement by SCCA on.d ASSURERS to reimburso the COMMISS'!ON and the pGD Ca' the
actual tzpensoy incurred by tach agency for tlta uee of [heir ptrsomlel for pre- and post•[a.lly inapeoiions nf
the Premiscs.
ID. METHOll, T[h1E, AND PLACE OF pAYN(ENT
A. paymcnt o.f suctu due under Scction II. Subsectiun A. shall bt made tu the COMMt5S1pN by
Cashier's Chcck, Certified Check, or Money Order within 10 days following euh rally. ~
B. The depusit roqu'ved by Secriun I!. Subsacrion E. shull bc made [o the COMM[SSlON by Cashiar'3
Checl~ Cenified Chec.k, oc Money Ordcr and delivercd no later than 10 days before edch rally,
C. Payment of surrs due w COMMISSION under Seceon II. Su6seceion F. shall be made to the
COMMISSfON hy Caahier'S Chetk, Ceaifiad Check, ot Money Ocdcr witl~n 30 days followins reteipt of
COIvIIvfiSSION'S invoi[c.
D. Paymeat oCsums due to AGD undar Scceon lI. Subeection F. shall be medc to the AGD by
Cuzhier's Chcck, CeRilied Check, ur Money Ordcr within 70 days following ceceipt of the AGD'S .invoice.
E. All remjaanccs due ta the COMMISS[ON shall be enailed tu Execurive D'uector; Texas Milicary
Facilities Cammission; 2200 w. 350' St., IIldg. 64; Aus«n, TX 78703-1222.
P. All reminences dut ro the qGD shall be mailcd ro the Adjutant Gtneral ot7txcs, P.O. 6ux 5215.
Austin,'fX 787X-5218. ~
IV. PURPpSE A1VD LINIITATIONS .
A. $CCA may use the premisas solely l'ar the conduct oC no more than 3 SCCA sanctioned.automobile
rallics wherein the driven race against the cluck and not aga'vut each othar. As a mejor inducemen[ for the
COMMtSS[ON tu enter into this Agreement, SCCA and ASSf1RERS rcpresent tlut at oo ume will drivecs
racc side•byside.
B. i. The rotal nutnber ofdays for the t}uce authotizcd rallies may not exceed foiuteea (14).
ii. No rally will be schcduled or conducted without tirst obtaining the wriRen pe[mission of the
Communder ac Camp Masey. Under no tircumstanec may the conduct of o mlly IntcrFere with the misxion
of the AGD.
b0:39tld
S2L6 28L £06:01
£052-b8L-£06 3M34IlWpJ J0 2139WtlHJ:W021.J 8£:b0 20 £T-?JdW
I
iii. The levee of the lakc is pff Iimits for tlie courst of iny tally.
V. BitEACFI
The failurr of SCCA, or ASSURERS co pay or providt any part of thc consideratiun Cor this
Agrcer[ten[ described ip Sec[ion ]I. when due eonstitutes a brcach oCthis AgreemeuL The violation by
SCCA of any limitaeioo [n Section IV. eonsricutes a breach ui'this Agreemont. COMMISSION may
declare this Agtetmcnt void irt fhe evcnt of its brcnch by SCCA or ASSURERS, and COMMISSION may
seek aIl rcmcdies and dartuges authorized 6y law, ineluding ceasoneble ezpenses and anomeys' fecs.
VI. LIABII,ITY, INDF.hINCI'Y, ANA $OLb HARMLESS AGREEMEIYT
A. COMMISSION shall. not ba liablc for any loss, damage, or injury of any kind or characcer tu any
person or properry aasing .from eny use of the leased promises, or any paet chertoE, or caused by ar acisuig
from any act ar omission of SCCA, ur uny of SCCA'S egents, employccs, licensees, or inviteos, or by or
hom any accident on the land ur any fve or otha casualry thercon, occasioned by the failure uF SCCA to
maintain thc premists io x safe conditions, or aci5ittg Gom any cause whaboever.
B. SCCA agrces to indemnify nnd hold harnileiy tLe COMMISSlON and tht AGD from the claims of
aay ptrsan or entiry arising ow of the coaduct oCany SCCA sanc[ioned rnlly coaducted on dw pcemiscs,
whethec or not autharized by thc tcrms hereoC.
C. ASSUREAS agree to indemnify and.6old harmless the COMMISSION and thc AGD from the
claims of any person ur anrity arising ouc uEthe conduct any SCCA saecuoned rally conducted on the
Premises, whether or not auchorized 6y tbe tamv hcrcof, to tht txtcnt aUowed by thc ConstiNtion and laws
oCtha Stete of TexaSCl
VII. CANCfiLLA'I'ION
Tha COMMISSION and SCCA may tecminaee this Agrecment upon the giving of JO days' prior
written notice.
A Cailure by COMMISSION to enncel Uus Agreemene upoa SCCA's brcaeh of a tertn htreof'shall
not be constctiad as a waiver of COMMISSION'S rights to cancd and temtimte 5aid Agreement for any
Subsequent vio.lation of any of [he material coaditiuns horeof.
U.pon tcmunacion of this Agreerpent (or any cause w}wlsucvcr, SCCA tovenents and agrete tu
50: 39tld 12G6 28L £06:01 £0S2-b8L-£06 33213W4IO3 d0 2139WtlHJ:W021j 8£*0 20 £S-?JtlIJ
peaceably surrendtr the Ieo,ed piemises ro COMMISSION in as goad a condidon as the property wa< jn
upen. SCCA'S taking pussession nt the bcginning of the lease period.
VI'[I. YEMJE
Venut will be in any Couct oCTravlS County havjpg judsdittinR of the subjnel•matttr, if suic is to
bc b[ought for the pucpusez uCcnfo[cing any of the pruvisioni of this AgreCmcnt Thie coturnt to vcnue is
not a waiver by COMMISStON oCany immunity to which it is cntitled according to Texas law.
EXECUTED lN DSIPL-ICATE ORlGINALS on the dates indicated below, effecrive, however,
7anuary 1, 2002.
LL•SSOR:
Texae Mili[ary Faciiitice Cortunission
2200 W. 35" 5t.; Bldg. 64
Aust;q TX. 78703-1222
By:
John A. Wells, Executive Director
LESSEb:
Sports Cnr Club oiAtnerica
By
(Namc and Title
Date:
THE C[TY OF PARIS
By;
Maypr or Ciry Manager
i.AMqR COUNTY CHAMH.ER OF ('OMMER
90: 39tld
S2L6 28L £66:01
LnhARCOUNTY
M. C. Su erv
ILIC,
CE
£052-b8L-£06 30213J4107 J0 2138W1iHJ:WOiIj 8£:b0 20 £T-2iFiW
Lamar Count
Jud
BY .
~
unty 7udge
D r
3 -~l ~oa
AGENDA INFORMATION SHEET
PROJECT: Consider approval of an agreement for the City of Paris to be an assurer to the Sports
Car Club of America (a private organization) for the Club's obligations to the Texas Military
Facilities Commission with regard to a sports car rally at Camp Maxey.
BACKGROLJND: The City of Paris has been approached by the Lamar County Chamber of
Commerce to approve and sign an agreement by and among the Texas Military Facilities
Commission, the Sports Car Club of America, Lamar County, and the Lamar County Chamber
of Commerce to allow the Sports Car Club to conduct its annual road rallies at Camp Maxey. The
Ciry is being asked to sign the agreement in the role of an assurer, meaning that if the Sports Car
Club fails to meet its obligations under the agreement, the Ciry, along with the Chamber and the
County, will be called upon to fulfill those obligations. This arrangement was a requirement
imposed by the Texas Military Facilities Commission during the course of a meeting of the
Commission with representatives of the Lamar County Chamber of Commerce.
The proposed agreement is included with the agenda materials. The responsibilities assumed by
the Ciry in signing this agreement are found under paragraph II C-F and paragraph VI C. Under
the provisions of pazagraph II C-F, the SCCA is obligated to restore all roads and other disturbed
property at the club's expense and to reimburse the Commission and the AGD for their expenses
incurred for use of their personnel for pre- and post-rally inspections of the premises. If the
SCCA fails to meet this obligation, then the assurers, as a group, are obligated to assume those
responsibilities and fulfill them on behalf of the club. I would point out there is no allocation
among the assurers as to who would be the first entity obligated to step in for the club if the club
fails to perform. If the SCCA and the assurers fail to fulFill their commihnents under
subparagraphs C& D, then a$5,000.00 deposit will be utilized by the commission to defray these
expenses. Although the conuact does not indicate who will post the deposit, the Lamaz Counry
Chamber of Commerce has indicated it will provide such a deposit.
With regard to the obligations assumed by the City under pazagraph VI C, relative to the other
obligations assumed by the Ciry, this obligation is the most crucial. Under pazagraph VI C, the
assurers (again as a group) have agreed to indemnify and hold harmless the Commission and the
AGD from the claims of persons or entities azising out of the conduct by the SCCA of the rallies
authorized under the contract, to the extent allowed by the constitution and laws of the State of
Texas. Again, the allocation of such potential liability among the assurers is not stated.
Presumably, this obligation to step in and indemnify a private sports car club would be subject to
paragraph II B in which the SCCA is obligated to obtain a general liability insurance policy in the
amount of $5,000,000.00, naming the commission and the AGD as additional insured. However,
because the level of liability for personal injury suits, including those involving automobile
mishaps, in today's courts has resulted in enormous cash judgments, coverage of even
$5,000,000.00 may be inadequate given a particular circumstance.
To be certain of the City's position in this situation, the Legal Deparunent forwarded a copy of
the conuact to the Ciry's insurer, the TML Insurance Risk Pool to assess whether or not the City's
p~~~,°~Ce.~ ~h
coverage would apply to the obligations being assumed under this conuact. The response from
Ms. Stephanie Hazvey of the TML Risk Pool is included with the agenda materials. Ms. Harvey
makes certain suggestions also endorsed by the Legal Deparhnent with regard to the contractual
arrangement, and otherwise describes the City' s coverage which would apply to this circumstance.
First, Ms. Hazvey recommends the City request additional named insured status under the
insurance policy to be obtained by the SCCA. This would mean that as to any judgment of
liability against the City, the coverage under the $5,000,000.00 policy would apply first to such
liabiliry. Secondly, Ms. Hazvey points out that iF punitive and exemplary damages are awazded
in a given instance, the TML risk pool will not cover the City for such damages assumed by
conuact. Under this proposed contract, the City as an assurer is assuming all potential liability,
without excluding punitive and exemplary damages. Finally, Ms. Harvey points out that the TML
coverage would apply only if and upon a finding of a lawful obligation on the part of the City to
pay. That is, the City could make no gratuitous payment and expect TML coverage to apply.
DESCRIPTION: If the City Council desires to approve this agreement, the Ciry Council should
fust fmd there is a public purpose to be served by doing so to meet the standard of Article III,
Section 52 of the Texas Constitution, which prohibits the gift of public funds or extending of credit
by a municipality. The proposed resolution approving the contract includes such findings.
Secondly, either by the contract itself or in a separate agreement with the SCCA, the City should
be designated as an additional insured under the SCCA policy. Finally, the contract should be
revised to reflect that the City will not be responsible for punitive and exemplary damages; if such
an agreement is not reached, the Council needs to understand that the TML insurance coverage
will not apply if such damages were awarded in the instance of a successful lawsuit which
uiggered the City's liability. Finally, one other aspect of the azrangement which could be
considered is to determine the order of responsibility among the assurers to meet these obligations.
The conuact itself is silent on the question of whether or not this responsibility would be shared
equally among the Chamber of Commerce, Lamar Counry> and the City of Paris or whether one
entity would have first responsibility over another.
COSTS: There is no direct cost set out in the contract which would accrue to the City. All costs
are contingent costs, to assume the responsibilities of the sports car club to make necessary repairs
to the premises, pay for personnel costs of the State, and ultimate responsibility for any liabiliry.
RECOMMENDED ACTION: Consider the request for the City to enter into the proposed
agreement.
STAFF CONTACT: Gazy Vest, Lamar County Chamber of Commerce; Larry W. Schenk, City
Attorney; and Michael E. Malone, City Manager
COLJNCIL DATE: Consider at City Council's regulaz Council meeting of April 11, 2002.
ADDITIONAL MATERIALS: See enclosed Resolution of approval, proposed Surface Use
Agreement, and correspondence from Texas Municipal League Intergovernmental Risk Pool.
TML
QP[ERCpyF.pNMFNTAl RISK POOL
March 21, 2002
Mr. Larry Schenk, City Attorney
City of Paris
P.O. Box 9037
Paris, TX 75461-9037
! "11 ~JS~~~~~~.el4~cev
{ ~
~,c? ? 6 2G0"l
~i~.~ k [-i~.~".i{j.~~ly,~~a4Y
,,,~i~~i~ A~.~I~C
RE: Insurance Coverage - Contract - Texas Military Facilities Coinmission
Dear Mr. Schenk:
The Pool defers to the City Attorney in matters pertaining to City policy. Any agreement
should be reviewed and approved by the City Attorney for compliance with City policy.
The coverage provided by the Pool includes liability assumed under contract. Punirive
and exemplary damages are not excluded with the excepHon of punrtive and exemplary
damages assumed by contract. It is strongly recommended that the City request
addirional named insured status under the contractors insurance policies.
I would point out the follow~ing:
The insuring agreement found in the liability coverage document for the Pool
states:
As respects General Liability:
"The Fund will pay on behalf of the Member or Covered Party all sums for
which the Member or Covered Party shall become legally obligated to pay as
damages arising out of an occurrence that takes place during the Fund Year and
withir the AgreementT~;ritery:
A. Because of bodily injury, property damage, advertising injury or personal
injury to which this self-insurance applies as stated in the Agreement,
including claixns within the completed operations hazard and products
hazard."
As respects Errors and Omissions Liability:
"The fund will pay on behalf of the Member or Covered Party all monetary
damages which the Member or Covered Party shall be legaliy obligated to pay
for any civil claun or claims because of a wrongful act which occurs during the
Fund Year and within the Agreement Territory."
1~7CAS MIJNIC]PAL LEAGUE INTERGOVERNMENTAL RISK POOL
1821 Ru[herford Iane, First Floor • Austin, Texas 78754 •(512) 491-2300 •(800) 537-6655 Texas Only
P.O. Box 149194 • Austin, Texas 787149194
March 21, 2002
Mr. Larry Schenk, City Attomey
City of Paris
Page 2 of 2
Covered Party for both General Liability and Errors and Omissions (Public Officials
Liability) is defined as: the Member, any officer, director, elected or appointed official,
any member of a board or cominission of the Member, and any employee of the Member
when such Covered Parries are acting withixi the scope of their duties or employment as
such: or any volunteer while acting within the scope of duties assigned by the Member
and while under the general supervision of an officer, director, elected or appointed
official, member of a board or commission of the Member or an employee of the
Member.
These agreements are subject to the conditions and exclusions found in the coverage
document.
Any claim submitted would be considered and based on the merits of the information
developed, a decision would be made as to whether or not coverage would apply.
I trust you will find this to be in order. The continued confidence and participarion of
the City of Paris in the Texas Municipal League Intergovernmental Risk Pool is
appreciated. Please do not hesitate to call should you have additional questions,
comments or if we may be of further service.
Sincerely,
c.[,c.~ ~ • ~~"CT
(Mrs.) Step anie DeAnn Harvey, CPCU, CIC _ l~~%~
Senior Underwriter - Extension - 427
sdh
attachments
cc: Ms. Matlie Cunnulgham, City Clerk, Fund Contact, City of Paris
Ms. Laura Lantrip, Field Services Representative
TML
xESOLUTioN No. a(~ I
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, APPROVING AND AUTHORIZING A SURFACE USE
AGREEMENT BY AND AMONG THE TEXAS MILITARY FACILITIES
COMMISSION, THE SPORTS CAR CLUB OF AMERICA, LAMAR
COUNTY, THE LAMAR COiJNTY CHAMBER OF CONIMERCE, AND
THE CITY OF PARIS REGARDING THE USE OF CAMP MAXEY FOR A
ROAD RALLY CONDUCTED BY THE SPORTS CAR CLUB OF AMERICA;
MAKING OTHER FINDINGS AND PROVISIONS RELATING TO THE
SLJBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the Lamar County Chamber of Commerce has approached the City of Paris
to be a conuactual participant as an assurer in a Surface Use Agreement by and among the Texas
Military Facilities Commission, the Sports Caz Club of America, Lamar County, and the Lamar
County Chamber of Commerce with regard to road rallies to be conducted by the Sports Caz Club
of America at Camp Maxey; and,
WHEREAS, the City Council fmds and determines that the City of Pazis benefits by such
events, through the collection of sales tax and hotel/motel tax revenues, as a result of the
participants in said events utilizing the restaurant and hotel facilities available in the city of Pazis;
and,
WHEREAS, conducting such events in the azea adjacent to the city of Paris will generally
enhance the city of Paris as a location for tourists and tourist-related activities; and,
WHEREAS, as a consequence of the benefits conferred upon the City of Pazis by the
collection of tax revenues and the favorable impact of the revenues anticipated to be received by
local businesses and vendors, the City fmds and determines that entering into the aforesaid
agreement accomplishes a public purpose and serves the public good in full conformance with all
applicable constitutional requirements of the State of Texas, including, but not limited to, Article
3 Section 52 of the Constitution of the State of Texas, and is in the best interests of the health,
safety, and welfare of the citizens of the city of Paris; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Sectiou 2. That the City of Paris does hereby approve and authorize the Mayor to execute
an Agreement by and among the Texas Military Facilities Commission, the Sports Car Club of
America, the City of Pazis, Lamar County, and the Lamar County Chamber of Commerce, a copy
of which is attached hereto as Exhibit A and for all purposes incorporated herein, whereby the
Ciry of Paris, to the extent permissible under the laws and Constitution of the State of Texas, will
serve as an assurer to certain obligations of the Sports Caz Club of America under said agreement,
the purpose of which is to allow the Sports Car Club of America [o conduct sports caz rallies on
federal property located at Camp Maxey.
Section 3. That this resolution shall become effective from and after its date of passage.
PASSED AND APPROVED this 8th day of April, 2002.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Lazry W. Schenk, City Attorney
SURFACE USE AG.REEMENT
STATF. OP TEXAS §
KNO W ALL MEN BY TFIBSE PRESEN7S:
COUN'I'YOF'I'RAVIS §
THfS AGREL•MENT is made nnd antered inro effec[ive lanuary I, 2002 among the TEXAS
MILITARY PAC[LiTIG3 COMMISSION, (COMMI551oN), the SPORTS CAR CLUB OF Af.fEWCA,
(SCCA), THE C'ITY OF PARIS, LANIAR COUNTY, and the L.4A4.AR COl7NTY CHAMB6R OF
COMMERCF. (chn letter 3 entitics jaindy rcferred to as ASSURERS).
1. SUBJECT OF AGREF,MEIYT AND PROPERTY.OESCRI.PTION
:
COMMISSION p-ants to SCCA the right to use the ruadways and so much af the addinonal
property lowted.in Lamaz Couury Texas, commoNy referteA co as Camp Maxry (tlie premises) as requircd
for the sole purpose dtscribed in Secrion N. hcrreoE A map generally describing Camp Maxey i3 attachtd
as Exhibit A and iacorporaced hcrein by this refartnce for a(1 purpwes.
II. TSRM AND CoNSIAERATIQN
The Agreemcat is for & pcriod oC 1 yeac, beginning January 1, 2002 aod anding December 31,
2002, regardleiy of the Aate 3igned. 7'hc total conside[atiou f'ar this Agreettl.CtSt is:
A. Paymene to the Camrctissiua of the sum o( TLN DOLLARS (S 10 and 00/100) per enhy per raUy.
B. 'Ilie Aienishing by SCCA. of agcne[al liability iusurance policy in the amount of Five Million Dailazs
(S5,000,000 and 00/ 100) naming the COMMISSION and the .4djuanc General's Dcpactment of the Statc of
A Texas (AGD) as aAdiaonal inaureds.
C. The cumrtrihnent by SCCA to resrore all roada and eny oeher disturbed propcrry eo theu pco-rally '
condicion ae determiaed by pro• and post-cally insptttians of the Prcmise5 COMMISSION aod AGD
pttSOMCL I
D. The assuranct uf tlle ASSCRiERS thet, upun SCCA's failtue ro hooor ite comtnitmrnt in C. ubove,
each ASSLJRER will devp[e the necessery persunnel and equipmcnt [p tomplete the Subsectiun C.
ubligntions.
E. Tht depwit wit(f the t;qmmiesion ol'a Seeurity Depasit in the amount of F.iVE I'HOUSAND
DOLLARS (SS,OOU ANp 00/100) to protect the COMMIS$CON in the tvent tAu the SCCA and
EXWIBITQ
£0:39tid i216 28L £06:01 £0S2-b81-£06 3383WdOJ J0 2139WtJHD:W021.J 8£:b0 20 £i-?JtlW
ASSURER$ fail to fulfill thei,r coimnicrrtent and usurance in. Sub3ections C. aod D., respecnvely.
F. The agrrcment by $CCA an.d ASSURERS to reimbuise the COMIv.QSSION nnd the pGD Eor the
actual axpetues incurred by tach agency for dte use of their ptrsoniel for pm• and post•raUy inepections oC
the Premises.
ID. ME'CHOll, TiME, AIYD I'LACE OP PAYMENT
A. Payment of surtu due undec Sectiort II. Subsactiun A. shall bt made tu the COMMISSION by
CashiePs Chcck, Cenifitd Gheck, or Money Order within IO dsys followiag each mlly.
B. Thz depusit cequ'vad by Secrian It. Subsac6on H. shull bc made [o the COh1MISSION by Cashier's
Checl, CertiGed Chec.k, oc Money Order uid delivucd no later ttun 10 days before euch rally.
C. Payment otsums due ro COMMISSlON under Secrion II. Subseceion F. shall be made to the
COMMISSION by Cnahier's Chcek, Cenified Check, or'Money Order widiin 30 dsys folluwins receipt of
CObWCISSION'S invoice.
D. Paymene ofsums due to AGD undtr Scction lI. Subeection F. yhall be roadc ro the AGD by
Cnshier's Chcck, Certilied Check, ur Money Otdcr within 30 days following rcceipt of the AGD'S.invoice.
E. All remiaanccs due to thc COMMISSION shall be mailed ro Execurive D'vector; Teaas Tvlilicdry
Facilities Commission; 2209 W. 35d' St., IIldg. 64; qustin, TX 78703-122:.
P. All remittancex dut lo the AGD 3hall be ttuiled to the Adjutant Gtueral of Tzxds. P.O. 9ux 5218,
Austin, TX 787~-5218.
IV. PUAPOSE AND LIMITATIONS
A. SCCA may usc the promises solely L'or the conduct of no more rhan 3 SCCA sanctioned automobile
rallits wherein the Ariven race against the cluck and not aga'vut each other. As a mejor mducemcnt for the
COMMISSION w enter into this Agreemcnt, SCCA and ASS(JRBRS represmt tlut ac po lime will drivers
racc side-by-side.
B. i. The rocal nutnber oCdays tor the Uuce authorizcd rallies may not exceed Couiteen (14).
ii. No rally will 1)o sthcduled or conducted with0ut fitSl obteining the w[iRen pecmi55ioa of the
Commander ac Camp Maxzy. Under n0 tircumstantc may the conduct of o mlly inttrfere with the mission
of the AGD.
b0~39tld S2L6 28L £06:01 £052-b8L-£06 37N34WOJ A0 2l38Wt#iJ~WOaj 8£:b0 20 £S-2MW
t
iii. The Itvee of che lake is pUlimits fur Ule cowse ofany rally.
V. BREACH
The failurr uf SCCA, or ASSUTtERS co pay or p[ovide any part of the consideratiun for [his
Agrcement described in Section li. when dut eonstitutes a breach oFthis Agreement. The violation by
SCCA of any limitacinu in Section [V. eonsrimtes a breach utthis Agroemrnt. COMMISSION may
dedarc ehis Agretmcnt void in the evcnt of ia breech by SCCA or ASSiJRERS, and COMIvf[SS10N may
seok ull rcmcdies and dnmages authorizad by law, includins reasonable ezpeases end anomeys' fecs.
VI. LT,ABILITY, INDF.hLNITY, ANA HOLD HARMLESS AGREEMENT
A. COMMISSION shall, not be liablc for any losa, damage, or iajury of any kind or charatttt to any
petson or pcoperty arizing 5rom eny use of the leused prcmises, or any pan thereof, or caused by or arisune
from 7ny act or nmtssion of SCCA, or uny of SCCA'S agents, employces, licensees, or invitees, or by or
hom any accident on the land ur any fire or othcr casualry thereon, occasiontd by the (ailure of SCCA to
maintain chc premises io a safe canditiotu, or arisitig Gom any caust wHntvoever.
B. SCCA agrces to mdemnify und hold hamilay tLe COMMISSION and cha AGD Hom the claims of
any person or entiry erising om of ehe conduet oCany SCCA zaaceioned rally coaducted on dw Premises,
whether ot not authorized by thc terms hereuf.
C. ASSURERS egree to indtmnify and .6old hamiless the COMMISSION and tha AGA from the
olaims of any person or antity uising out utthe conduct any SCCA sanetioned rally conduc[ed oa Uhc
Prcmises, whether or not authonzed by the ternv hcrcof, to tht extcnt allowed by the Constitudon and law5
of tha Stete of Texd
C,
VII. CANCELLATION
Tht COMMISSION and SCCA may terminate this Agreem¢nt upon tha giving of JU dnys' prior
wrinen notice.
A lailure by CqMMISSION to canal this Agreemene upon SCCA's bre¢ch of a mrm herruf shall
not be conshuW os a waiver of COMM.[SS10N'S rights ro canccl and temtiuute naid Agreemeat for any
subsequcnt vio.lation of any o[ tlle malerial coodiduns hereof.
U,pon tccminatiqn of this Agreerpent for any cause whafsoavcr. SGCA tovenants and agrets to
50~39tld 12!6 281 06:01 £052-68L-206 3083WW03 J0 2139WtlHJ:W021J 82*0 20 £I-2JFAJ
peaceably surrender the Itased premises to COMMISSION in as gooA a condidon as the property wac in
upon. SCCA'S taking pussession at the bcginning q( thc lease period.
VIII. VEMlE
Venut wil,l be in any court of Trevis Caunty haviug jutlsdictioq of !he subjtCt•maqer, ff suit is W
be b[ought tb[ the purposes of enfo[cing any of 1he pruvisiont of this Agreemcnt This consrnt ro vcnue is
not a waiver by COMM[SSION oFany immunity to which.it is enntled according to Texas law.
EXECUT.ED IN DT1pLICATE ORIGINALS on the datcs indicated below, effettive, however,
7unuary 1, 2002.
LL•SSOR:
Texas Military Faoiliace Commission
2200 W. 350 St.; Hldg. 64
Austiq TX. 78703•1222
LESSEE:
Sports Car Club of qmerica
ey:
]ohn A. Wells, Execu6ve Direetot
1IiH CfTY OF PARIS
By:
Mayor or Ciry Managtr
LAMP,R COUNTY CHAMg.EA OF COMMERCE
ey:
By
(tlamc and Tittc
Date:
LAMAR COUNTY
M. C. Suoervit
Lamar Count Jud
By:
untyJudge r
Date;
9e:3E,dd izce zez ses:al £052-b8L-£06 372l348407 J0 2139l4bHJ:W021J 8£:00 20 £i-81:114
HP LaserJet 32oo
PARIS CITY ATTORNEY
9037829721
MAY-9-2002 3:02PM
Fax C;all Henort
OD
i n v e n f
Job Date Time Type Identification Duration Pages Result
36 5/ 9/2002 3:00:42PM Send 19729951916.1358 1:18 2 OK
THE C1TY OF PAR15
135 FIRSf STREEf SE
P. O. Box 9037
Paris, Tezas 75461•9037
Telephone:(903) 785•7511
Fax Number (903) 782-9721
FA% MESSAGE
pLFISE NOTE:
ThIs mxup h sn1mbE enFy fer IM1e uu INllu InCivlEUel a mtiry lowhldh tt IsaEbawE mEmry conteln
InlwmNim Mt II qlVllded. [anflEMNd ndlMenD~ Ifqn GII[IOrvrc wWe ~ppl~wpl[ bw. IRFtnetler
allhlime~Nye I~ nd Ihe inimGd reclpimt rnt~e mployu ttyen~ re~pontlble IaEellvwin{Oie me~u{e
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ImmeEYhN WWiepsme (adll eneremm m. Mylnal mnup te nnEr tl tM sEOVe Wtrev N. ine
UnlteE Ana PoRaI Servi<e.
TR
luenita G. MiIIx
COMVANY:
T.Fnlnmumm[clno.
FAXNO:
972495-1916
G0.0M:
Lvry W.51mk
CiryAnemry
SUB)FCT:
Sparts Gr<NCWAmartu- SUrlaaUx
Apeemmt
COMMENTS:
0.tlRenn mY Wter drtM Mey i. 3003 ro Mr.
Vdn LYe^
TMnk yeu fo, ywr tlqRdOtt.
THIf TFLFCOMMUNICATION CON95'f50i
ONfCOVF0.VAGFANO 1ADDRIONALSHERTS)
THE CITY OF PARIS
135 FIRST STREET SE
P. O. Box 9037
Paris, Texas 75461-9037
Telephone: (903) 785-7511
Fax Number (903) 782-9721
FAX MESSAGE
PLEASE NOTE:
This message is intended only for the use of the individual or entiry to which it is addressed and may contain
information that is privileged, confidential and exempt from disclosure under applicable law. If the reader
of this message is not the intended recipient or the employee or agent responsible for delivering the message
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United States Postal Service.
TO:
Juanita G. Miller
COMPANY:
Texas Instruments. Inc.
FAX NO:
972-995-1916
FROM:
Larry W. Schenk
City Attorney
SUBJECT:
Sports Car Club of America - Surface Use
Agreement
COMMENTS:
Reference my letter dated May 1, 2002 to Mr.
Peter Lyon
Thank you for your assistance.
THIS TELECOMMUNICATION CONSISfS OF
ONE COVER PAGE AND -1- ADDITIONAL SHEET(5)
HP LaserJet 3200
PARIS CITY ATTORNEY
9037829721
MAY-8-2002 4:27PM
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32 5/ 8/2002 4:26:13PM Send 13036947391.1358 1:37 2 OK
THE CITY OF PARIS
135 FIRSi STREEf SE
P. O. Box 9037
Paris. Texas 75461-9037
Telephone: (903) 765-7511
Fex Number (903) 782-9721
FAX MESSAGE
nuse Hore
TMS mesu{e I'InImEeE only fa iht un ef tM1e InmvWwl w mtiry rownlrb It ii sEbaiM mdmey conbN
InlormMOn I~N b prlvileQeA. wnldentlel mE eKempt hwn dalomre wGnDC~~~able Iw. If tlu mEe
ol MI t mnu~e B nrn IM1e InhnLetl mi0imt a IM em01 W n or a/ent rtsDon0be far EeI Iverl y ihe mauye
to me imena.a rftiniem. vou .re nR.ey nmir,.e tn.r.ov ameminenon, amiwtion, a moWn, or mii
,mi~no, is mimy au5imlm. u wu nw..~w.a mo wmmMm.nm m ma. oio. nanr ,i
imm.a.b.iy W o.imnene Itai.al..ne rn.m me erkil m•onP no wmm.1 m..eon.ea.n ,i. m.
Unlted5ttlef PenelSoMa.
TO:
PHb LY.. 0.iG Mm+yn
COMPANY:
fpotls CerCluEOiMnvio
fA%NO:
(303) 6947391
F0.0M:
WryW.f~enk
CIryNtlanN
SUBIE<T:
Smle[eW. Apnmmt
COMMENTS:
SmQinpNin. aapydmylNhrtltleEMey
1. ]Wl.
TNIf TfLECOMMUNICATION CONSISf50F
ONE COVER VAGf AND _I_ ADOITONIL Sli
THE CITY OF PARIS
135 FIRST STREET SE
P. O. Box 9037
Paris, Texas 75461-9037
Telephone: (903) 785-7511
Fax Number (903) 782-9721
FAX MESSAGE
PLEASE NOTE:
This message is intended only for the use of the individual or entity to which it is addressed and may contain
information that is privileged, confidentiai and exempt from disclosure under applicable law. If the reader
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to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this
communication is rtrictly prohibited. If you have received this communication in error, please notify us
immediately by telephone (collect), and return the original message to sender at the above address via the
United States Postal Service.
TO:
Peter Lyon, Risk Manager
COMPANY:
Sports Car Club of America
FAX NO:
(303) 694-7391
FROM:
Larry W. Schenk
City Attomey
SUBJECT:
Surface Use Agreement
COMMENTS:
Sending again a copy of my letter dated May
1, 2002.
THIS TELEGOMMUNICATION CONSISfS OF
ONE COVER PAGE AND 1 ADDITIONAL SHEET(S)
THE CITY OF PARIS
135 FIRST STREET SE
P. O. Box 9037
Paris, Texas 75461-9037
Telephone: (903) 785-7511
Fax Number (903) 782-9721
FAX MESSAGE
PLEASE NOTE:
This message is intended only for the use of the individual or entity to which it is addressed and may contain
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of this message is not the intended recipient or the employee or agent responsible for delivering the message
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communication is strictly prohibited. If you have received this communication in error, please notify us
immediately by telephone (collect), and return the original message to sender at the above address via the
United States Postal Service.
TO:
Juanita G. Miller
COMPANY:
Texas Instruments, Inc.
FAX NO:
972-995-1916
FROM:
Larry W. Schenk
City Attorney
SUBJECT:
Sports Car Club of America - Surface Use
Agreement
COMMENTS:
PLEASE CALI US AND GIVE AN UPDATE ON
THE STATUS OF THE INSURANCE
COVERAGE,
Thank you for your assistance.
THIS TELECOMMUNICATION CONSISTS OF
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THE CITY OF PARIS
135 FIRST STREEf SE
P. O. Boz 9037
Paris, Texas 75461-9037
Telephone: (903) 785-7511
Faz Number (903) 787-9721
FAX MESSAGE
VLFASE NOTf:
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TO:
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COMGANY:
Teu,lromummn.ln<.
FA%NO:
97I-935d916
F0.0M:
bmyW.S[henk
OryMmmry
SUBIECT:
SpwuCnClubMAmMaeSUrleceVrt
Ayteemmt
COMMFNTS:
PLFAfECALLUSAIJDGNEANUPOREON
THE SfATUS Of THF INSUMNCE
COVEMGE.
TIUnY yau br ywr enbima.
THISTELfCOMMUNIUTION CONSISTSOi
ONECOK0.DAGEANO 0_ADDITIONA111HEEtn)
THE CITY OF PARIS
135 FIRST STREET SE
P. O. Box 9037
Paris, Texas 75461-9037
Telephone: (903) 785-7511
Fax Number (903) 782-9721
FAX MESSAGE
PLEASE NOTE:
This message is intended only for the use of the individual or entity to which it is addressed and may contain
information that is privileged, confidential and exempt from disclosure under applicable law. If the reader
of this message is not the intended recipient or the employee or agent responsible for delivering the message
to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this
communication is strictly prohibited. If you have received this communication in error, please notify us
immediateiy by telephone (collect), and return the original message to sender at the above address via the
United States Postal Service.
TO:
Peter Lyon, Risk Manager
COMPANY:
Sports Car Qub of America
FAX NO:
(303) 694-7391
FROM:
Larry W. Schenk
City Attorney
SUBJECT:
Surface Use Agreement
COMMENTS:
THIS TELECOMMUNICATION CONSISiS OF
ONE COVER PAGE AND -1- ADDITIONAL SHEET(5)
~ ..nitnw~c~,9
C~IITY~ OO ~ PA ~ IS
° ~ ~
n _
May 1, 2002
The Sports Car Club of America
Attn: Mr. Peter Lyon, Risk Manager
9030 East Easter Place
Inglewood, CO 80122
Via Facsimile: 303-694-7391
Telephone: 800-770-2055
Dear Mr. Lyon:
You will recall on or about April 19, 2002 we had a discussion regarding matters relating
to insurance coverage for an SCCA event to be held at Camp Maxey in Lamar County, Texas.
As you may also recall, the purpose of our discussion was a requirement included in a Surface Use
Agreement prepared by the Texas Military Facilities Commission, which has jurisdiction over the
Camp Maxey property, to require the City of Paris to act as an assurer on the SCCA's obligations
under that agreement ro repair any damages to the premises of Camp Maxey caused by an SCCA
event, and it would also require the City to act as an assurer for liability with regard to such
events.
At the time, you requested a copy of the proposed state agreement and i forwarded that
to you by prior fax. Please advise if you have not yet received that agreement.
In addition, at that time I had requested you forward to me a copy of the standard
indemnity agreement whereby the SCCA would indemnify the City of Paris. You also indicated
the City would be included as a referenced party on any waiver used for any participants in such
an event, and that you would likewise forward to me a copy of that document.
I would appreciate your forwarding these documents to me as we are beginning to prepare
our agenda package for City Council to consider approval of the agreement proposed by the state.
Any assistance you could provide would be most appreciated.
Yo very truly
~
rry W. chenk
City Attomey
LWS/ap
P.O. BOX 9037 • PARIS, TEXAS 75461-9037 •(903) 785-7511 • FAX (903) 785-8519
04!18/02 TUE 18:I3 F4X
e
&201blfMwava
Re! SCCA Ewnt Insufenca Program
DeBr Property Owner,
Z002
SCCA and its rogions conduet almost 2,000 events per year, usually on property owned by somepne
else. Wh7e we are conscien6ous in our efforts to conduct events as safely as possible, comprehensive
insurance covsrage is still an obvious necessity. Since we have found that a landowner's general
Iiability pplicy typicaily dceS not provide adequate ceverage for our type of events, SCCA has developed
its own EveM Insurance Program.
The 3CCA Program mnsists of twp parts; comprehensive general liabiliry and participant accident
(medical, death and disabmty) coverayes. The landowner is included as an additiwnal insured under
the Iiability policy during the Conduct of an event. We believe that this Program pifers spme pf the best
and broadest coveraqe in motorsports and shouhl adequately protect your interests related to an SCCA
everrt. Summaries of the coverages are attached fbr your review.
Prior to the event, the region will order insure»ce fbr the event and a certficate can be sent or delivered
to you evitlencing coverage fbr the specific dates during which the event will 6e held. A sample
certificate has been endosed fbr your review.
We hope that SCCA's dedication to safety and our comprehensive insurence will provide you with the
assurances needed M albw an 5CCA event to be conducted on your property. Please feel free to
contact me ff you have any questions or ooncems about the SCCA Event Insurance proyrsm,
SincerelY Yo+rs,
PeterLyon ~
Insurance Manager
AttachmeMs: Program Summaries and Sample CerUfica/es
3/02
04/16/02 TLTE 18:13 FAX
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SCCAlSCCA PRO Master Insurance Plan 2002
Swmmarv of.SCCA/[TSRRC Psrticiannt Aceident Covers¢e
Written by Life Ynsnrance Company of Nort6 America
_ through Wxsenberg Insarance + Risk Management
This iosunnce provides coverage at variotus }imip for t6e fotlowing uteyoriee of pacticipanu that aee injured in eveo[-rolated accidmts u
SCCA pt USRRC evmts.
A. v e
Medicai Reimbuneme¢t
Accidenul Death
Dismemborment by sc6ednk up ro
Lo9s of Wwk
B. Tgr=LC~[fiM ud Euldirc
Non-SCCA/SCCA Pm Member
PuticiP3RLiln04
510,000
S 5,000
S 5,000
None
Thae ayply to p(1 participmt Accideqt covecasee and all rypes of eveata.
f 1,000,0p0
5 23,000
S 10.000
$100 per wk foT 104
wks with a 7 day wajtiag pajpd
BC9uinmmb: Muct 6ave cigaed yu auuwl Relase aod Waivc w 6avo siQtwd a Rekace and Waver frx the evmt; be is,cutd a vedmtiel
by SCCA or SCCA Pro, wd must coutact event mediwl or Satcry Steward beforc the wd of the evcm M ieport an accidmt w6ieh mig6t
give rife to a claim.
Cwditiooc: Ap eLims multing &om injmus a[ising et SCCA/SCCA Pm sene[iooed events mtat 6cst be wbmitlcd W tUc Puticipeot'c
yeteond mtdiml inturcr (if atry). T6e SCCA Excas Medial covaage will coord'maee benefits witA the pasonal medicd ipsurer, but will
not psy ip addidou b it. If there ia no persoasl medical inuurcr, the SCCA yrogram rvill bceome primary. Mediul traahnmt muat be
pceccribed by a MD a DO.
Filkigl2gnefit Peciod' Mmt submit evidence oFSrst medical tapeate witL'm !A dqys of itry'ury. BexSts an ppyoble foc mcdiral expenr.es
inaurted up to ] 56 weeks aftu tLe accideat.
P"cirmt ' m, Drivas, crews, ofticiale ofthe na, mwimeas, ambulane;e crews, bw truck crews, pit gale waukas, and eIl othv
Decsons bearin$ psues duly and afficioLy issued by t6e Namcd IawrW. (i.e. SCCA, SCCA Regions, SCCA PRO Raciag, Ltd„ USRRC
and, in some coeCe. We track).
E7~eLICi~[.imitations: l'hrilt ehowe. Wotlcas' Compemation reluod injuries, aloohoUmrcotic rolated 'mjmies, eye8lasralrnman Imees,
dendva, Crowns a ups, suicidc, intentimal self-intlicted inJu7, dlncss, unless developed ae o result of Uie rovercd iCCiAmt, pra'
aeisan; coaditioas, cbeopnttic care andlor wgni6ve therapy imlae epecificslly sathoriud by the aaeadiog MD or DO. Reimburxmant
is limited w ehatQe4 w6iah do mt acceed dw6e geoerollY cha*$ed fw simila medical or QenW eue.
SCCA/SCCA Pm Member
P.ttt'tC'twnt Lnnits (with Iicepse)
DwtB BmeSt Bmofmisv: Dnth hene6u m made payaMe ro rhw eswtc ofcl+e deaoccd.
04/18/02 TUE 18:14 FA%
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SCCAJSCCA Pro Master Insurance plan 2002
Summarv of SCCA/USRRC Commereial General Lisbilitv Ingarance
Written by ACE Amerfcan Insurance Company
thrnagh Wisenberg Insarance + Risk Management
This insunnce u immaded to prouct $CCA/SCCA Pm, the regipns pnd mcmbers, vack owous, laadawners aad spomon of the event,
drivers and Weir asws, rod owuws and spooson of vehicks entaed in an eveat hum Bodily Injury, ptopecty Damage, Pmooal Iujury,
or Advertieing Injury claims:rising out of e covcrcd incident u a SCCq or SCCA P'p evept,
TYpe f Cvvcrmzc.
T6e limin of the covasQe are:
v e:
Bodily tejury(SyectatorLiability)
Properry Damage Liabiliry
Patticipant Legd Liability
Conaactwl LirbiGey
Producls Liability
Perwnal and AdveRising Inji¢y Liability
Liqua Liability
Medicd Ymfeuional Liabiliry (Excess)
Otficm and Skwuds Errars
And OIniSfio116 rAvetige
Official Vehicle Properry Dampge
AM1111112-r-
The excluaioos ixlude, but are not limitcd ro:
Ltm~t6
$5,000,000 per eran
$3.000.000 Mr evcnt
$S,OOO,WO pa evem
S5,0011,000 pa event
$5,000,000 aggregm
$1,000.000 sggeegate
$5,000.000 eggregate
$5.000.000 per event
$ 100,000 per evmt
a 40.000 oec occwnce
Coac«ts
Aptwemeet Ridcs
rmiu snow
Evmh whae no syatem ie ia effeet m collcct Waivcr and Releaee focms
Evenw whae mem6m of t6e gmml pubGc ue permitted to enter rpvicud
sceac wit6out sigping Waivet and Rekau fmms
TF8 brlejsunmasy is provided w jacrl'uan yovr vndmtandirtgoj SCCA's ond SCG! Pro's inar~cr pogram. Pfeose ref¢r tu the
ncroel policiraforapecifw 4rm, condirions, fimitatiuro ondculwsions
04/18/0E TUE 18:14 FAX
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Type of Bvent:aEVEN7 TYPEs
CeRNN.ate «SOeR*
Sanelion NumM s:.S/WCTION s Event Dats:.EVENT DATEs ' Psr ewnt te.
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04/18/02 Tl1E 18:15 FAx
AddNidum
PoHcy Numbvc WM696908T - CUN.IZT4301MIMOOS
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t~oas
Sports Ca► CWb of Arneriw, Inc• (SCCA), SCCA PM Ruirq, LM., SCCA EntAryrisss, Inc. and eN RggiOns. Divisions and
Chapbrs chaAered by SCCA; sII SCCA and regional dtreclors, offiewm officiala, members, drivers, car owners, eMraMS, pit
crews, emsrgency services personnel, snd all oNrer Participanb bosring SCCA aufhorized credeMiak. A11
tponswsladvertisers connectatl with a car or an SCCNSCCA Pro Raang sanclioned Event whAv involvsd in and acting in
Vrek capeclty during ths presenfabon or conduct of an SCCAlSCCA Pro Raeinp Ewnt, lescees or prvperty owrreTS ot the
SCCA/SCCA Pro Racirp EveM sitas whAa their land or VropertY is bein9 ~for the oonduQ M en SCCA, SCCA Pro
Racing, lW. sanetloned Erent;KA0DIT10NAlP.