CONSENT ITEM
E-12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
DATE: SEPTEMBER 21, 2026
SUBJECT: CONSIDERATION TO APPROVE THE PURCHASE AND INSTALLATION
OF SHADE STRUCTURE EQUIPMENT FOR PIONEER PARK AND
CANYON CITY DOG PARK; CIP NO. 42026D
BACKGROUND:
On May 4, 2026, the City Council approved the purchase and installation of five (5) shade structures at Pioneer Park and Canyon City Dog Park and authorized a contract with California Playgrounds. During the contract execution process, California Playgrounds was unable to provide the required Additional Insured Endorsement for its Commercial General Liability insurance and was not registered with the California Department of Industrial Relations (DIR), as required for public works contractors. Despite staff's efforts to obtain the required documentation, the contractor was unable to satisfy the City's contract requirements. As a result, the City did not proceed with contract execution and notified California Playgrounds.
Staff subsequently solicited informal bids from four reputable southern California playground companies in order to proceed with the project. The proposed actions represent the next phase of these efforts and include awarding a contract to Innovative Playgrounds Company, Inc. to support additional park enhancements within both parks.
RECOMMENDATIONS:
Staff recommends the City Council take the following actions:
1) Confirm that the City will not proceed with the previously authorized award to California Playgrounds, as the contract was not executed because the contractor was unable to satisfy the City's contract execution requirements;
Purchase / Installation of Shade Structure Equipment – Pioneer Park and Canyon City Dog Park September 21, 2026
2) Approve the purchase and installation of new shade structure equipment for Pioneer Park and Canyon City Dog Park by Innovative Playgrounds Company, Inc.; 3) Award a contract in the amount of $140,912 to Innovative Playgrounds Company, Inc.; 4) Authorize staff to increase the contract by up to $14,091, a 10% contingency, for potential change orders as needed, for a total no-to-exceed total contract of $155,003; 5) Authorize a budget amendment and carryforward of $106,399 under the Utility Mitigation Fund account number 13-80-000-661-7120/42026D-7120 from FY2025-26 to FY2026-27; 6) Authorize staff to increase the FY2026-27 budget by $48,604 under account number 13- 80-000-661-7120/42026D-7120 for total budget amount of $155,003, to cover the purchase of the Shade Structure Equipment; and
7) Authorize the City Manager to execute contracts, in a form acceptable to the City Attorney, on behalf of the City.
ANALYSIS:
The proposed project is consistent with the City’s ongoing efforts to enhance park amenities and address community needs. Recent improvements at Pioneer Park, along with the completion of the Canyon City Dog Park, reflect this commitment and demonstrate the City’s continued dedication to improving recreational facilities and expanding opportunities for public use. Feedback received following the opening of the dog park highlights a need for additional amenities, such as shade structures, to enhance user safety by minimizing exposure to harmful UV rays, improve comfort during hot weather, and encourage longer park visits.
On May 4, 2026, City Council action authorized award of contract to California Playgrounds.
Because California Playgrounds was unable to satisfy the City's contract execution requirements, the City did not execute the contract or proceed with the work.
City staff solicited bids from the four contractors listed below and two bids were submitted:
• Innovative Playgrounds Company, Inc.
• Micon Construction Inc.
• Kleen Play Playground Construction Inc.
• Miracle Playground
Informal bids were received on August 19, 2026. The results are as follows:
No Company Location Total Base Bid
1 Innovative Playgrounds Company, Inc. Whittier, CA $140,911.69 2 Micon Construction Inc. Placentia, CA $188,871.00
Purchase / Installation of Shade Structure Equipment – Pioneer Park and Canyon City Dog Park September 21, 2026
Innovative Playgrounds Company, Inc. submitted the lowest responsive and responsible bid. They are a licensed contractor with over 40 years of experience in Southern California. Innovative Playgrounds Company, Inc. holds a valid California Class B – General Building and C-61/D-34 Prefabricated Equipment Contractor Licenses. The contractor is registered with the Department of Industrial Relations.
The proposed award will allow the City to proceed with the installation of the shade structures at Pioneer Park and Canyon City Dog Park while ensuring compliance with applicable contracting, insurance, licensing, and public works requirements.
ENVIRONMENTAL CLEARANCE:
This action is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1), as it involves minor alterations to existing facilities with negligible or no expansion of use.
FISCAL IMPACT:
The recommended action will award a contract to Innovative Playgrounds Company, Inc. in the amount of $140,912, with a 10% contingency of $14,091, for a total not-to-exceed amount of $155,003.
Funding will be provided by the Utility Mitigation Fund (Fund 13). Upon Council approval, staff will carry forward $106,399 from FY 2025/26 to FY 2026/27 and appropriate an additional $48,604 in FY 2026/27 under account number 13-80-000-661-7120/42026D-7120, providing a total project budget of $155,003.
Prepared by: Reviewed by:
Christina Curiel Robert Delgadillo, P.E.
Public Works Project Manager Director of Public Works/ City Engineer Reviewed and Approved by:
Sergio Gonzalez
City Manager
Attachments:
1) Informal Bid Proposal
2) Public Works Contract
CITY OF AZUSA
NEW SHADE STRUCTURE EQUIPMENT
FOR
PIONEER PARK AND CANYON CITY DOG PARK
NAME OF CONTRACTOR:
ADDRESS:____________________________________________________________________ PHONE NUMBER / EMAIL:_______________________________________________________ STATE LICENSE NO.
The City of Azusa Public Works Department is soliciting informal bids from qualified contractors to furnish all labor, materials, equipment, transportation, supervision, and incidentals necessary to furnish and install cantilever umbrella shade structures, posts and foundations at Pioneer Park and Canyon City Dog Park.
The work shall be completed in accordance with the requirements contained in this Invitation for Bids.
BID SCHEDULE
Item
No. Item Description Unit Qty Unit Price Total Price
1 Mobilization, Insurance, and Demobilization LS 1
2 Furnish and Install one (1) 40’x20’x9’ cantilever
umbrella shade, including post and concrete footing,
at Pioneer Park (fitness area); Shade structure and
post colors to be selected by City.
LS 1
3 Furnish and Install two (2) 12’x12’x9”cantilever
umbrella shades sharing one (1) single post, and
concrete footing, at Canyon City Dog Park (adjacent
to benches in “large dogs” area); Shade structures
and post colors to be selected by City.
LS 1
4 Furnish and Install two (2) 12’x12’x9”cantilever
umbrella shades sharing one (1) single post, and
concrete footing, at Canyon City Dog Park (adjacent
to benches in “small dogs” area); Shade structures
and post colors to be selected by City.
LS 1
5 Furnish and Install two (2) 15’x15’x9”cantilever
umbrella shades, including single posts for each
shade, and concrete footings, at Canyon City Dog
Park (adjacent to picnic tables in “small dogs” area);
Shade structures and post colors to be selected by
City.
LS 1
TOTAL BID PRICE: $ ________________
Revised
8-12-2026
Innovative Playgrounds Company, Inc.
12407 E. Slauson Ave., Unit D, Whittier, CA 90606
562-693-5200 / [email protected]
1032775
$8,973.33
$48,020.68
$23,786.10
$23,786.10
$36,345.48
$140,911.69 *SEE ATTACHED FORMAL ESTIMATE
Public Works Contractor Registration Certification
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See https://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.
Bidder hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.1
Name of Bidder:
DIR Registration Number:
DIR Registration Expiration:
Small Project Exemption: Yes or No
Unless Bidder is exempt pursuant to the small project exemption, Bidder further acknowledges:
1. Bidder shall maintain a current DIR registration for the duration of theproject.
2. Bidder shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.
3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.
Name of Bidder
Signature
Name and Title
Dated
Innovative Playgrounds Company, Inc.
1000407761
6/30/2028
x
Innovative Playgrounds Company, Inc.
Vanessa Larios - Director of Operations
8/18/2026
Cooperative Purchasing Program Participation
☐ Bidder is currently approved under a cooperative purchasing agreement or state contract. (i.e., Sourcewell, California Multiple Award Schedule [CMAS], or other approved purchasing cooperative). ☐ Bidder is not currently approved under a cooperative purchasing agreement or state contract.
If Yes, provide the following information:
• Program/Agency Name: __________________________
• Contract Number: ______________________________
• Expiration Date: _______________________________
• Website or supporting documentation: ______________
ESTIMATE VALID FOR 30 DAYS
Acceptance of estimate: the above prices, specifications and conditions are satisfactory and are hereby accepted. Any alterations or deviations from the above will be accepted only upon written notice and will become an extra charge over and above the estimate period. 50% deposit due with order, unless net 30 terms have been approved.
Innovative Playgrounds Co., Inc.
12407 E. Slauson Ave. Unit D
Whittier, CA 90606
562-693-5200
www.innovplay.com
Estimate
ADDRESS
City of Azusa
213 E Foothill Blvd
Azusa, CA 91702
SHIP TO
M/F: Pioneer Park
1360 N. Dalton Ave,
Azusa, CA 91702
AND
M/F: Canyon City Dog Park
W Crescent Dr,
Azusa, CA 91702
ESTIMATE # DATE
11310 08/18/2026
TRACKING NO. SALES REP
New Canopy Umbrellas ALVINO
ACTIVITY DESCRIPTION AMOUNT
** Pioneer Park **
CANOPY *FITNESS AREA*
Supply (1) 40' x 20' Full Cantilever Umbrella (2 Posts) with a 9' Eave Height.
LIST PRICE $27,092.85
"IN KIND CUSTOMER DISCOUNT" APPLIED ($2,709.28)
24,383.57T
INSTALLATION-1 Install (1) 40' x 20' Full Cantilever Umbrella with a 9' Eave Height into dirt/grass. Includes rebar cages. 21,015.89 ** Canyon City Dog Park **
CANOPY *"LARGE DOGS" AREA - BENCHES*
Supply (2) 12' x 12' with a 9' Eave Cantilever Umbrella Height, sharing a single center post.
LIST PRICE $14,307.46
"IN KIND CUSTOMER DISCOUNT" APPLIED ($1,430.75)
12,876.71T
INSTALLATION-1 Install (2) 12' x 12' with a 9' Eave Cantilever Umbrella Height, sharing a single center post into dirt/grass.
Includes rebar cages.
9,525.14
CANOPY *SMALL DOGS" AREA - BENCHES*
Supply (2) 12' x 12' with a 9' Eave Cantilever Umbrella Height, sharing a single center post.
LIST PRICE $14,307.46
"IN KIND CUSTOMER DISCOUNT" APPLIED ($1,430.75)
12,876.71T
INSTALLATION-1 Install (2) 12' x 12' with a 9' Eave Cantilever Umbrella Height, sharing a single center post into dirt/grass.
Includes rebar cages.
9,525.14
CANOPY *"SMALL DOGS" AREA - PICNIC TABLES*
Supply (2) 15' x 15' with a 9' Eave Height, Single Cantilever Umbrellas (1) corner post on each.
LIST PRICE $17,351.60
"IN KIND CUSTOMER DISCOUNT" APPLIED ($1,735.16)
15,616.44T
INSTALLATION-1 Install (2) 15' x 15' with a 9' Eave Height, Single Cantilever Umbrellas (1) corner post on each into dirt/grass.
Includes rebar cages.
19,050.27
ENGINEERING Engineering Fee for All Umbrellas at both Pioneer Park and Canyon City Dog Park. 3,920.00 TEMP. FENCING Provide temporary fencing during installation of umbrella canopies at both parks. 3,733.33 FREIGHT Shipping charge to AZUSA, CA. Freight price valid for 30 days only, due to fluctuating fuel pricing. Please requote after 09/17/26.
1,320.00
INCLUDES Pricing includes prevailing wage rates. 0.00T
ESTIMATE VALID FOR 30 DAYS
Acceptance of estimate: the above prices, specifications and conditions are satisfactory and are hereby accepted. Any alterations or deviations from the above will be accepted only upon written notice and will become an extra charge over and above the estimate period. 50% deposit due with order, unless net 30 terms have been approved.
ACTIVITY DESCRIPTION AMOUNT
EXCLUDES Pricing excludes regular wage rates, 3rd Party CPSI Audit, permits, bonds, any border material and/or concrete curbing, fencing (permanent), special installation due to unforeseen site conditions and any additional site work/preparation/amenities. Direct cost for any additional insurance limits above what is offered on our current policy for GL, WC, and Auto will be directly charged to customer if required by contract.
0.00T
NOTE: Pricing above is based on all areas being purchased at the same time.
SUBTOTAL 133,843.20
TAX (10.75%) 7,068.49
TOTAL $140,911.69
Accepted By Accepted Date
CITY OF AZUSA PROJECT CONTRACT
NEW SHADE STRUCTURE EQUIPMENT FOR
PIONEER PARK AND CANYON CITY DOG PARK
THIS CONTRACT is made this 21st day of September 2026, in the County of Los Angeles, State of California, by and between the City of Azusa, hereinafter called “City”, and Innovative Playgrounds Company Inc., hereinafter called ‘Contractor’. The City and the Contractor for the considerations stated herein agree as follows:
ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Exhibit A, Scope of Services/Proposal, which is attached hereto for the following Project:
NEW SHADE STRUCTURE EQUIPMENT FOR
PIONEER PARK AND CANYON CITY DOG PARK
All services for the project shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. All services shall be performed to the satisfaction of City.
The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Schedule of Performance, Exhibit C, which is attached hereto. All work must be completed within thirty (30) working days from the commencement date stated in the Notice to Proceed. The. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the work.
ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as specified in Exhibit B, Compensation Rate Schedule, which is attached hereto and includes all applicable taxes and costs. The total compensation of the contract shall not exceed One Hundred Fifty-Five Thousand Three Dollars and No Cents ($155,003) which includes a contingency amount of $14,091 without written approval of the City Council.
ARTICLE 4. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of Five Hundred Dollars ($500) for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” may include but are not limited to the following:
Contractor’s Certificate of Insurance and Endorsements
Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Affidavit form
Contract (including but not limited to its General Conditions and other attachments and incorporated documents)
Performance Bond
Payment Bond
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of the California Labor Code applicable to this Project.
ARTICLE 7. TERMINATION OF AGREEMENT.
(a) Except as otherwise provided, City may terminate this contract at any time with or without cause upon providing written notice to Contractor at least ten (10) days before the effective termination date. Notice of termination will be in writing. In the event of a termination for convenience, the City, based upon work accomplished by Contractor prior to notice of such termination, shall determine the amount of fees to be paid to Contractor for such services based upon accepted practices of the Contractor’s field of work, and such finding by the City, and shall be final and conclusive as to the amount of such fee.
(b) Should the contract be terminated pursuant to this Section, Contractor shall immediately cease work except for work necessary to secure the job site and any materials not yet incorporated into the work. Once the job site is secured, Contractor shall vacate the premises. City may procure on its own terms services similar to those terminated.
(c) Upon termination of this Contract by City, Contractor shall transfer possession of all fixed items, including but not limited to fencing, construction trailers, and any other equipment or materials affixed to the project site, to City. Contractor shall ensure that all such items are in good working condition and free from any liens or encumbrances. Contractor shall provide City with all necessary documentation related to the fixed items, including warranties, maintenance records, and any other relevant information. Contractor shall also coordinate with City to facilitate the smooth handover of these items.
(d) By executing this document, Contractor waives any and all claims for damages that might otherwise arise from City’s termination under this Section.
ARTICLE 8. NONASSIGNMENT. This Contract is not assignable either in whole or in part by Contractor without the written consent of City.
ARTICLE 9. INDEMNIFICATION. Contractor shall indemnify, defend with legal counsel approved by the City, and hold harmless the City, its officers, officials, employees, and volunteers (“Indemnified Parties”) from and against all claims for and actual liabilities, losses, damages, expenses, costs (including without limitation reasonable attorney’s fees, expert fees, and all other costs and fees of litigation) of every nature relating to, arising out of or in connection with Contractor’s, its officers, agents, employees, or subcontractors (or any agency or individual that Contractor shall bear the legal liability thereof) negligence, recklessness or willful misconduct in the performance of work on and/or connected with the Project or its failure to comply with any of its obligations contained in this Contract, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the Indemnified Parties. Should conflict of interest principles preclude a single attorney from representing both the City and Contractor, or should the City otherwise find Contractor’s attorney unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable attorney’s fees, expert fees, and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the Indemnified Parties with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless, or wrongful act, omission or performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Contract.
Contractor’s obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by Indemnified Parties. However, without affecting the rights of Indemnified Parties under any provision of this Contract, Contractor shall not be required to indemnify and hold harmless Indemnified Parties for liability attributable to the sole or active negligence or willful misconduct of Indemnified Parties, provided such sole or active negligence or willful misconduct is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where Indemnified Parties are shown to have been solely or actively negligent or to have acted with willful misconduct and where Indemnified Parties’ sole or active negligence or willful misconduct accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the sole or active negligence or willful misconduct of Indemnified Parties.
ARTICLE 10. INSURANCE. Contractor shall provide and satisfy the insurance requirements as set forth in Exhibit D, Insurance Requirements, which is attached hereto. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.
ARTICLE 11. NON-DISCRIMINATION. Contractor shall not discriminate in its recruiting, hiring, promotion, demotion or termination practices on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, martial status, sex, age, or sexual orientation in the performance of this contract and shall comply with the provisions of the California Fair Employment and Housing Act as set forth in Part 2.8 of Division 3, Title 2 of the California Government Code; the Federal Civil Rights Act of 1964, as set forth in Public Law 88-352, and all amendments thereto; Executive Order 11246; and all administrative rules and regulations issued pursuant to such acts and order.
ARTICLE 12. PREVAILING WAGES. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Work is being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Work available to interested parties upon request and shall post copies at the Contractor’s principal place of business and at the project site.
Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Pursuant to Labor Code Section 1775, Contractor shall forfeit as a penalty to City the sum of not more than two hundred dollars ($200) as determined by the Labor Commissioner for each calendar, or portion thereof, for each such worker paid less than the prevailing wage rates by Consultant or by any subcontractor in addition to penalties provided for in sections1770-1782 of the Labor Code.
ARTICLE 13. DECLARATION OF POLITICAL CONTRIBUTIONS. Contractor shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the city council within the previous twelve-month period by the Contractor and all of Contractor's employees, including any employee(s) that Contractor intends to assign to perform the Work described in this Agreement.
ARTICLE 14. CONFLICT OF INTEREST. In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA – 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR 570.611, respectively, shall apply. No employee, officer or agent of the sub-recipient shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
ARTICLE 15. INDEPENDENT CONTRACTOR. Contractor is and will at all times remain as to City a wholly independent contractor. Neither the City nor any of its officers, employees, or agents will have control over the conduct of Contractor or any of Contractor’s officers, employees, agents or subcontractors, except as expressly set forth in the contract. Contractor may not at any time or in any manner represent that it or any of its officers, employees, agents, or subcontractors are in any manner officers, employees, agents or subcontractors of City.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of September, 2026.
CITY OF AZUSA:
By: ______________________________
Sergio Gonzalez
City Manager
INNOVATIVE PLAYGROUNDS
COMPANY, INC. :
Name: ______________________________
By: ______________________________
(Signature)
Its: _______________________________
Title (If Corporation: Chairman, President
or Vice President)
ATTEST:
By: ______________________________
Jeffrey Lawrence Cornejo Jr.
City Clerk
APPROVED AS TO FORM:
By: ____________________________
Rachel H. Richman
City Attorney
Attachments: Exhibit A – Scope of Work/Proposal
Exhibit B – Compensation Rate Schedule
Exhibit C – Schedule of Performance
Exhibit D – Project Insurance Requirements
Exhibit E – General Conditions
EXHIBIT A
SCOPE OF WORK/PROPOSAL
EXHIBIT B
COMPENSATION RATE SCHEDULE
EXHIBIT C
SCHEDULE OF PERFORMANCE
EXHIBIT D
PROJECT INSURANCE REQUIREMENTS
Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City.
General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. [If required to meet higher limits]. Contractor shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer; • “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.
Should Contractor obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.
Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
Contractor shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers.
Contractor’s pollution liability insurance. Coverage shall provide for liability arising out of sudden, accidental, and gradual pollution, and remediation. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for remediation of the site in the event of an environmental contamination event arising out of the materials, supplies, products, work, operations, or workmanship.
Transportation pollution liability insurance. Coverage shall be in an amount not less than $5,000,000 combined single limit per accident and shall include Pollution Liability (CA9948) and MCS-90 Endorsements. The policy shall provide coverage for transportation of pollutants/contaminants to and from the job site and the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
Builder’s risk (course of construction). Upon commencement of construction and with approval of City, Contractor shall obtain and maintain builder’s risk (course of construction) for the entire duration of the project until only the City has an insurable interest. The builder’s risk coverage shall include the following:
The named insureds shall be Contractor and City, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to the City. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the City. The City will act as a fiduciary for all other interests in the Project.
Policy shall be provided for replacement value on an “all risk” basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to the City to ensure adequacy of terms and sub-limits and shall be submitted to the City prior to commencement of construction.
Installation floater. If required by the City or not covered by builders’ risk (course of construction) coverage, Contractor shall obtain an installation floater for the value of the property and covering the portion of the work to be constructed, installed, altered, or repaired by Contractor. The installation floater policy must include coverage for the fixtures, materials, supplies, machinery, and equipment used in or incidental to the construction project as well as property kept off-site or while in transit. Coverage must include property of others in the Contractor’s care, custody, or control. In addition to Contractor, the City and all subcontractors shall be named as additional insureds on the policy with coverage extending through the final completion date.
Other provisions or requirements
Proof of insurance. Contractor shall provide certificates of insurance and required endorsements to the City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance.
Current certification of insurance shall be kept on file with City for the contract period and any additional length of time required thereafter. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Contractor shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by Contractor, their agents, representatives, employees, or subconsultants. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. City and its officers, officials, employees, and agents shall continue as additional insureds under such policies.
Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by the City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured.
Products/completed operations coverage. Products liability coverage shall extend for a minimum of three years (3) after project completion, and completed operations coverage for construction agreements shall extend for 10 years from the date of substantial completion of the project or the statute of repose, whichever is longer. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured.
Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.
City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by the City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non- compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Contractor’s insurers are unwilling to provide such notice, then Contractor shall have the responsibility of notifying the City immediately in the event of Contractor’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.
Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to the City and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
Pass through clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by Contractor (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event Contractor’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, Contractor shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the Contractor, but in all other terms consistent with the Contractor’s requirements under this agreement. This provision does not relieve the Contractor of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Contractor with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Contractor under this agreement given the limited scope of work or services provided by the subcontractor. Contractor agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to the City for review.
City’s right to revise requirements. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor a ninety (90)-day advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by City.
City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.
Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
EXHIBIT E
GENERAL CONDITIONS
Provided to interested parties electronically upon request.