Agenda Item No: 1.d
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: May 20, 2025
Submitted by: Samantha Byfield
From: Public Works
Subject:
Amendment No. 4 to Professional Services Agreement with HF&H Consultants, LLC, for Refuse Contract Negotiations and SB 1383 Compliance Assistance Financial Impact:
Fiscal Impact:
Expense: $45,000 Annual Contract Amount
Budget: $65,000 FY 2024-25 Refuse Administration Fund (374386-6099) Summary:
In July 2020, the City entered into an agreement with HF&H Consultants, LLC (HF&H) under the City Administrator's approval authority for $24,999 to assist the City with preparing to implement the extensive regulatory administrative burdens mandated in SB 1383. On April 6, 2021, the City Council approved Amendment No. 1 to the Agreement for HF&H to assist the City in negotiating a fully restated and amended solid waste handling agreement with Republic and ordinance support to address the requirements of SB 1383. The amendment extended the term of the agreement to December 31, 2022, and increased the not -to -exceed contract amount to $119,999. In December 2022, Amendment No. 2 was executed under the City Administrator's approval authority to extend the term of the agreement to June 30, 2024. On February 20, 2024, City Council approved Amendment No. 3 to amend the scope of work to include additional tasks, increase the contract not -to -exceed amount by $35,000 for a total cumulative amount of $154,999 and extend the term through June 30, 2025, to complete the contract negotiations with Republic. Staff is proposing Amendment No. 4 to extend the contract term by two years and to add $90,000 for a revised cumulative contract amount of $244,999 to have sufficient contractual authority for the remainder of the contract term. The contract costs for these services are included in the current Fiscal Year 2024-25 Operating Budget. The future cost of the services will be included in the operating budgets for future fiscal years.
Recommendation:
Recommended Action: It is recommended that the City Council take the following actions to:
1. Approve Amendment No. 4 to the professional services agreement with HF&H Consultants, LLC, for refuse contract negotiations and SB 1383 compliance assistance services to extend the contract term by two years and increase the cumulative contract not -to -exceed amount by $90,000 for a revised cumulative contract amount of $244,999 for the entire contract term; and
1 2. Authorize the Acting City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
Strategic Plan Statement:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
Discussion:
In July 2020, the City entered into an agreement with HF&H for $24,999 for the development of a contract profile and Senate Bill (SB) 1383 Gap Analysis as part of joint effort with the cities of Brea, Fullerton, Garden Grove, and Yorba Linda to analyze and ultimately negotiate a completely restated franchise agreement with their solid waste hauler for implementation of SB 1383 mandates. On April 6, 2021, the City Council approved Amendment No. 1 to the Agreement with HF&H to assist the City in negotiating a restated agreement with Republic, consolidating all previous amendments, and negotiating a new citywide organic waste recycling program. The amendment also extended the term of the agreement to December 31, 2022, and increased the not -to -exceed contract amount to $119,999. In December 2022, Amendment No. 2 was executed under the City Administrator's administrative approval authority to extend the term of the Agreement to June 30, 2024. Amendment No. 3 was approved by the City Council on February 20, 2024, and amended the scope of work to include additional tasks, increased the contract not -to -exceed amount by $35,000 for a total cumulative not -to -exceed amount of $154,999, and extended the term through June 30, 2025, to complete the contract negotiations with Republic.
Staff presents Amendment No. 4 for the City Council's consideration. Originally, negotiations with Republic were anticipated to conclude within 10 months. The City and Republic have been unable to reach agreement on rates and terms, and as a result the negotiations have been and are now in the fourth year. Additionally, key members of both the Republic and City negotiating teams and management staff have been replaced, which has added time and additional cost to this project. HF&H has diligently supported the City throughout this process, offering a draft amended agreement, analyzing various cost proposals, and actively participating in negotiation sessions and updating the City Council Sewer and Refuse Ad Hoc Committee members and City Council as needed. Given the complexity of the negotiations and the necessity to comply with SB 1383, the ongoing assistance of HF&H remains crucial for the City's success in reaching a revised agreement with Republic.
HF&H has supported a variety of jurisdictions and agencies throughout the State with strategic waste diversion planning, cost -of -service and rate studies, and negotiations of new franchise agreements related to SB 1383 compliance. HF&H has assisted other Orange County cities including Anaheim, Brea, Garden Grove, Santa Ana, and Yorba Linda in negotiating and implementing a new and/or amended agreement with Republic for SB 1383 compliance and continue assisting the cities of Fullerton, Huntington Beach, and Seal Beach in this endeavor.
They have extensive experience and knowledge of the City's current franchise agreement and negotiations. As such, Staff is recommending the approval of Amendment No. 4 to the agreement with HF&H to increase the contract amount to add $90,000 for a revised cumulative contract amount of $244,999 and extend the term two years to June 20, 2027 to allow HF&H to continue assisting the City in finalizing contract negotiations with Republic.
Fiscal Impact Summary:
The recommended action will approve Amendment No. 4 to the Professional Services K
Agreement with HF&H, increasing the total contract amount by $90,000 for the remainder of the extended two-year term, for a revised total not -to -exceed contract amount of $244,999.
Sufficient funds exist for the recommended actions. The future cost of the services will be proposed in the operating budgets for future fiscal years.
Attachments
Amendment _No._4_to_HFH _Consultants_-_SB_1383_Contract_Negotiations. pdf Attachment 2 - Certificates of Insurance
3 AMENDMENT NO. 4 TO
PROFESSIONAL SERVICES AGREEMENT
PROVISION OF SB 1383 CONTRACTING ASSISTANCE SERVICES WITH
HF&H CONSULTANTS, LLC
This Amendment No. 4 ("Amendment") to Professional Services Agreement is made and entered into effective the 20th day of May, 2025, by and between the CITY OF PLACENTIA, a Charter City and Municipal Corporation ("CITY"), and HF&H CONSULTANTS, LLC, a California Limited Liability corporation (hereinafter "CONSULTANT"). CITY and CONSULTANT are sometimes hereinafter individually referred to as "Party" and or collectively referred to as the "Parties."
A. Recitals.
(i) CITY and CONSULTANT entered into a Professional Services Agreement ("Agreement") effective July 1, 2020, through which CONSULTANT has been providing professional services as more fully explained in the Scope of Services attached to the Agreement as Exhibit "A".
(ii) The Parties now seek to amend the Agreement to increase the compensation by an additional $90,000 for and to extend the termination date of the Agreement to June 20, 2027 for additional consulting services related to SB 1383 compliance assistance and contract negotiations.
(iii) All legal prerequisites to the making of this Amendment have occurred.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:
B. Amendment to Agreement.
1. Section 2.0, Paragraph 2.1 and Section 4.0, Paragraph 1 of the Agreement is hereby amended to read as follows:
2.1. Compensation. Consultant shall be paid in accordance with the revised fee schedule set forth in Exhibit "A". Consultant's total compensation shall not exceed Two Hundred Forty -Four Thousand Nine Hundred and Ninety -Nine Dollars ($244,999).
4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 25 months, ending on June 20, 2027, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties.
2. Except as specifically modified herein, all of the terms, conditions and provisions of the Agreement shall remain in full force and effect.
3. The Agreement, all amendments together with this Amendment No. 4 and all Exhibits attached thereto, constitutes the entire Agreement between the Parties and supersedes all prior negotiations, arrangements, representations, and understandings, if any, made by or between the Parties with respect to the subject matter hereof. No amendment or other modification of the Agreement, as modified by this Amendment No. 4 shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.
4 4. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Amendment No. 4 and that such execution is binding upon the entity for which he or she is executing this document.
IN WITNESS WHEREOF, the Parties have caused Amendment No. 4 to the Consulting Services Agreement are to be executed as of the day and year first above written.
CONSULTANT
By: , ZOO
? _
Laith Ezzet
Senior Vice President
CITY OF PLACENTIA
Jennifer Lampman
Acting City Administrator
ATTEST:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
By:
Christian L. Bettenhausen, City Attorney
March 4, 2025
Samantha Byfield
Public Works Manager
City of Placentia
401 E. Chapman Ave.
Placentia, CA 92870
Sent via email: syfield placentia.om
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
Subject: Proposal to Provide Recycling, Organics, and Solid Waste Consultant Services
Dear Samantha Byfield,
HF&H Consultants (HF&H) is pleased to submit this updated scope of work to the City of Placentia (City) to continue to provide recycling, organics, and solid waste consultant services.
This scope was developed after a call with City staff on Tuesday, February 25, 2025, as follow- up to the Thursday, February 20, 2025, in-person meeting with the City's executive team. The intention of this scope is to continue to support negotiations with the City's solid waste hauler, Republic Services (Republic), for a Senate Bill 1383 compliant agreement, provide on-call implementation support services to aid the City in achieving compliance with the State's recycling and organics recycling requirements, and includes a CalRecycle Jurisdiction and Agency Compliance and Enforcement (DACE) contingency budget for use if a ]ACE review is requested during the term of this engagement.
Thank you for the opportunity to provide you with this updated scope. We look forward to an opportunity to continue our partnership with the City. If you have any questions, please contact Haley Kunert at (949) 251-0930 or hkunertCcbhfh-consultants.com.
Very truly yours,
HF&H CONSULTANTS, LLC
/0,2_� e)
Laith Ezzet, CMC
Senior Vice President
Haley Kunert
Senior Project Manager
Samantha Byfield
' I ' March 4, 2025
Section 1: SCOPE OF WORK
TASK 1: SB 1383 CONTRACTING ASSISTANCE
The updated budget is to support the extended timeframe of the negotiations, additional time to analyze and negotiate the contract that was over and above the original cost proposal. The funds will cover additional time due to complexities of negotiations based on programmatic assumptions for SB 1383 and recycling matters, additional contract language negotiation sessions, supplemental analysis required to evaluate changed costs/assumptions used, internal briefings with City staff, drafting additional contract exhibits, draft of the final negotiated agreement, support for drafting Council staff report, and preparation for/participation in a City Council meeting to present draft agreement.
TASK 2: ONGOING SB 1383 IMPLEMENTATION SUPPORT
HF&H will assist with various SB 1383 diversion related inquiries and tasks that arise from time to time to the extent the project budget supports a request. These tasks will include legislative research, compliance tracking and reporting, and providing general recycling, organics, and solid waste liaison assistance.
For this task, HF&H may assist through one or more of the following subtasks within the budgetary limitations of the proposal:
2A SB 1383 Contract Oversight and Open Item Monitoring; Upon City request, support with ongoing SB 1383 contract compliance activities under the current franchise agreement such as monitoring key services and compliance dates, reporting requirements, and specific annual SB 1383 program and educational requirements. 2B Legislative Monitoring;
Track solid waste legislation, regulations, SB 1383 resources, guidance, and funding opportunities, CalRecycle policy decisions, and other solid waste, recycling, and organics issues pertinent to the City. Provide legislative and regulatory updates and discuss significant items at virtual and/or in-person meetings.
2C Monitor Facility and Industry Updates:
Monitor local solid waste, recycling, and organics industry developments that may impact the City, such as the development of composting operations at the Orange County landfills. 2D Implementation Record:
Upon City request, review the City's Implementation Record to assess compliance and identify performance enhancement opportunities.
2E Environmental Preferable Purchasing Policy Support:
Upon City request, review the City's current Environmentally Preferably Purchasing Policy or Financial Procurement Policy(ies) and identify compliance gaps and strategies for resolution. 7 Samantha Byfield
' I ' March 4, 2025
2F CalGreen and MWELO Support:
Upon City request, review the City's current CalGreen Construction and Demolition and Model Water Efficiency Landscape Ordinances (MWELO) and internal policies for SB 1383 compliance.
2G Self -Haul Program Updates:
Upon City request, review the City's current self -haul program, assess compliance, and identify enhancement opportunities to ensure compliance with SB 1383. 2H CalRecycle Support:
Upon City request, HF&H will review and provide feedback on a final draft of the Electronic Annual Report/SB 1383 compliance report required by 14 CCR 18994.2. 21 Other SB 1383 or On -Call Activities:
Other ongoing SB 1383 or on-call recycling, organics, and solid waste activities that may be identified during the course of implementation within budgetary limitations.
TASK 3: CONTINGENCY - CALRECYCLE JACE COMPLIANCE REVIEW (If needed during term of Consulting Services Agreement) HF&H assists clients with their annual LAMD CalRecycle site visits and phone calls. Additionally, HF&H is available to support the City in working with the CalRecycle ]ACE team on evaluations, which began in 2024. Article 15 of SB 1383 outlines enforcement oversight provisions whereby CalRecycle evaluates a jurisdiction's compliance with SB 1383 requirements. Our experience supporting other jurisdictions with their compliance evaluations will allow us to prepare the City for the compliance evaluation. As this task has not been requested by CalRecycle at this time, we are not incorporating the cost into the cost of service, but recommend a contingency be available for the additional support that will be needed to be accessible and develop responses to CalRecycle when a CalRecycle ]ACE representative contacts the City. We estimate the ]ACE compliance review will take a minimum of six months to over a year to complete.
Section 2: Fee Proposal
We will perform the scope of work based on time and materials, up to the limit of the available budget. We understand, based on the call from February 25, 2025, the City's anticipated budget for these services is not to exceed $90,000, of which $50,000 is estimated for continued contracting assistance, $25,000 for ongoing SB 1383 implementation support, and $15,000 to be used only if directed by the City for ]ACE Compliance support. We will bill the City once per month based on the number of hours worked and expenses incurred. Payment is due within 30 days of invoicing. Hourly rates are shown below.
PROFESSIONAL FEES
Samantha Byfield
March 4, 2025
Hourly rates for professional and administrative personnel through December 31, 2025, are the same as under our July 23, 2024, SB 1383 on-call professional services agreement adjusted January 1 and are listed again below:
Table 1: Schedule of Hourly Rates (Calendar Year 2025)
Executive $363 - $364
Senior Project Manager $307 - $332
Senior Associate/Project Manager $224 - $296
Associate Analyst $192 - $218
Assistant Analyst $166 - $187
Administrative Staff $130 - $166
*Hourly rates adjust each January 1 by 4.0%.
DIRECT EXPENSES
Standard charges for common direct expenses are as follows:
Automobile Travel Prevailing IRS mileage rate
Airfare and Public Transit Actual Cost
Postage, overnight mail, couriers, and other out-of-pocket costs Actual cost 9 Table 2: Estimated Workplan for City of Placentia*
Samantha Byfield
March 4, 2025
Task 1 Contracting Assistance
Support with ongoing negotiations for SB 1383 agreement Task 1
Task 2 Ongoing SB 1383 Implementation Support
Support with on-call SB 1383 implementation
Task 2
Task 3 Contingency for CalRecycle JACE Compliance Review Released upon City direction, for ]ACE Compliance Review support Task 3
Total Costs
Subtotal
Expenses
Total Budget with Contingency for Task 3
Hours may be shifted among tasks.
28 66 70 0 12 176 149,940
28 66 70 0 12 176 1 $49,940
12 20 42 20 0 94 $24,840
12 20 42 20 0 94 $24,840
2 20 30 2 0 54 $14,810
2 20 30 2 0 54 $14,810
$89,590
5410
$90,000
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Hanover
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1. SECTION I - PROPERTY, if two or more of
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written permit that the insurance
more than the actual amount of the loss or
provided to any person or
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organization included as an
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intent that the various Coverage Parts,
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BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SUMMARY OF COVERAGES
Limits
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1. Additional Insured by Contract, Agreement or Permit
Included
1 2. Additional Insured - Broad Form Vendors
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2 3. Alienated Premises
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3 4. Broad Form Property Damage - Borrowed Equipment, Customers Goods and Use of Elevators
Included
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Product Recall Deductible
8. Unintentional Failure to Disclose Hazards
9. Unintentional Failure to Notify
$25,000
Occurrence
$50,000
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5 5
$500
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Included
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1. Required by the contract, agreement or
permit described in Paragraph a.; or
2. Available under the applicable Limits of
Insurance shown in the Declarations.
This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations
e. All other insuring agreements, exclusions,
and conditions of the policy apply.
Additional Insured - Broad Form Vendors
The following is added to SECTION II -
LIABILITY, C. Who Is An Insured:
Additional Insured - Broad Form Vendors
a. Any person or organization that is a vendor
with whom you agreed in a written contract
or written agreement to include as an
additional insured under this Coverage Part
is an insured, but only with respect to liability
for "bodily injury" or "property damage"
arising out of "your products" which are
distributed or sold in the regular course of
the vendor's business.
b. The insurance afforded to such vendor
described above:
(1) Only applies to the extent permitted by
law;
(2) Will not be broader than the insurance
which you are required by the contract or
agreement to provide for such vendor;
(3) Will not be broader than coverage
provided to any other insured; and
(4) Does not apply if the "bodily injury",
"property damage" or "personal and
advertising injury" is otherwise excluded
from coverage under this Coverage Part,
including any endorsements thereto
c. With respect to insurance afforded to such
vendors, the following additional exclusions
apply:
The insurance afforded to the vendor does
not apply to:
(1) "Bodily injury" or "property damage" for
which the vendor is obligated to pay
damages by reasons of the assumption of
liability in a contract or agreement. This
exclusion does not apply to liability for
damages that the insured would have in
the absence of the contract or
agreement;
(2) Any express warranty unauthorized by
you;
391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 2 of 6 14 (3) Any physical or chemical change in the
product made intentionally by the
vendor;
(4) Repackaging, unless unpacked solely for
the purpose of inspection,
demonstration, testing, or the
substitution of parts under instruction
from the manufacturer, and then
repackaged in the original container;
(5) Any failure to make such inspection,
adjustments, tests or servicing as the
vendor has agreed to make or normally
undertakes to make in the usual course
of business in connection with the sale
of the product;
(6) Demonstration, installation, servicing or
repair operations, except such
operations performed at the vendor's
premises in connection with the sale of
the product;
(7) Products which, after distribution or sale
by you, have been labeled or relabeled
or used as a container, part or
ingredient of any other thing or
substance by or for the vendor;
(8) "Bodily injury" or "property damage"
arising out of the sole negligence of the
vendor for its own acts or omissions or
those of its employees or anyone else
acting on its behalf. However, this
exclusion does not apply to:
(a) The exceptions contained within the
exclusion in subparagraphs (4) or (6)
above; or
(b) Such inspections, adjustments, tests
or servicing as the vendor has
agreed to make or normally
undertakes to make in the usual
course of business, in connection
with the distribution or sale of the
products.
(9) "Bodily injury" or "property damage"
arising out of an "occurrence" that took
place before you have signed the
contract or agreement with the vendor.
(10)To any person or organization included
as an insured by another endorsement
issued by us and made part of this
Coverage Part.
(11)Any insured person or organization,
from whom you have acquired such
products, or any ingredient, part or
container, entering into, accompanying
or containing such products.
The most we will pay on behalf of the vendor
for a covered claim is the lesser of the
amount of insurance:
1. Required by the contract or agreement
described in Paragraph a.; or
2. Available under the applicable Limits of
Insurance shown in the Declarations;
This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.
3. Alienated Premises
SECTION II - LIABILITY, B. Exclusions, 1.
Applicable To Business Liability Coverage k.
Damage to Property, paragraph (2) is replaced by
the following:
(2) Premises you sell, give away or abandon, if
the "property damage" arises out of any part
of those premises and occurred from hazards
that were known by you, or should have
reasonably been known by you, at the time
the property was transferred or abandoned.
4. Broad Form Property Damage - Borrowed
Equipment, Customers Goods, Use of Elevators
a. The following is added to SECTION II -
LIABILITY, B. Exclusions, 1. Applicable To
Business Liability Coverage, k. Damage to
Property:
Paragraph (4) does not apply to "property
damage" to borrowed equipment while at a
jobsite and not being used to perform
operations.
Paragraph (3), (4) and (6) do not apply to
"property damage" to "customers goods"
while on your premises nor to the use of
elevators.
b. For the purposes of this endorsement, the
following definition is added to SECTION II -
LIABILITY, F. Liability and Medical Expenses
Definitions:
1. "Customers goods" means property of
your customer on your premises for the
purpose of being:
a. Worked on; or
b. Used in your manufacturing process.
c. The insurance afforded under this provision is
excess over any other valid and collectible
property insurance (including deductible)
available to the insured whether primary,
excess, contingent or on any other basis.
5. Incidental Malpractice - Employed Nurses, EMT's
and Paramedics
d. With respect to the insurance afforded to SECTION II - LIABILITY, C. Who Is An Insured, these vendors, the following is added to paragraph 2.a.(1)(d) does not apply to a nurse, SECTION II - LIABILITY, D. Liability and
Medical Expense Limits of Insurance:
391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 3 of 6 15 Hanover
Insurance Group -
013F D681476 5701751
emergency medical technician or paramedic
o. Recall of Products, Work or Impaired
employed by you if you are not engaged in the
Property is replaced by the following:
business or occupation of providing medical,
o. Recall of Products, Work or Impaired
paramedical, surgical, dental, x-ray or nursing
Property
services.
6. Personal Injury - Broad Form
Damages claimed for any loss, cost or
expense incurred by you or others for
a. SECTION II - LIABILITY, B. Exclusions, 2.
the loss of use, withdrawal, recall,
Additional Exclusions Applicable only to
inspection, repair, replacement,
"Personal and Advertising Injury", paragraph
adjustment, removal or disposal of:
e. is deleted.
(1) "Your product";
b. SECTION II - LIABILITY, F. Liability and
"Personal
(2) "Your work"; or
Medical Expenses Definitions, 14.
and advertising injury", paragraph b. is
(3) "Impaired property";
replaced by the following:
If such product, work or property is
b. Malicious prosecution or abuse of
withdrawn or recalled from the market or
process.
from use by any person or organization
c. The following is added to SECTION II -
because of a known or suspected defect,
LIABILITY, F. Liability and Medical Expenses
deficiency, inadequacy or dangerous
condition in it; but this exclusion does
Definitions, Definition 14. "Personal and
not apply to product recall expenses"
advertising injury":
that you incur for the "covered recall" of
"Discrimination" (unless insurance thereof is
"your product".
prohibited by law) that results in injury to the
However, the exception to the exclusion
feelings or reputation of a natural person,
"discrimination"
does not apply to "product recall
but only if such is:
expenses" resulting from:
(1) Not done intentionally by or at the
(4) Failure of any products to accomplish
direction of:
their intended purpose;
(a) The insured;
(5) Breach of warranties of fitness,
(b) Any officer of the corporation,
quality, durability or performance;
director, stockholder, partner or
(6) Loss of customer approval, or any
member of the insured; and
cost incurred to regain customer
(2) Not directly or indirectly related to an
approval;
"employee", not to the employment,
(7) Redistribution or replacement of
prospective employment or termination
"your product" which has been
of any person or persons by an insured.
recalled by like products or
d. For purposes of this endorsement, the
substitutes;
following definition is added to SECTION II -
(8) Caprice or whim of the insured;
LIABILITY, F. Liability and Medical Expenses
Definitions:
(9) A condition likely to cause loss of
1. "Discrimination" means the unlawful
which any insured knew or had
reason to know at the inception of
treatment of individuals based upon race,
this insurance;
color, ethnic origin, gender, religion, age,
or sexual preference. "Discrimination"
(10)Asbestos, including loss, damage or
does not include the unlawful treatment
clean up resulting from asbestos or
of individuals based upon developmental,
asbestos containing materials; or
physical, cognitive, mental, sensory or
(11)Recall of "your products" that have
emotional impairment or any
no known or suspected defect solely
combination of these.
because a known or suspected
e. This coverage does not apply if liability
defect in another of "your products"
coverage for "personal and advertising
has been found.
injury" is excluded either by the provisions of
b. The following is added to SECTION II -
the Coverage Form or any endorsement
LIABILITY, C. Who Is An Insured, paragraph
thereto.
3.b.:
7. Product Recall Expense
"Product recall expense" arising out of any
a. SECTION II - LIABILITY, B. Exclusions, 1.
withdrawal or recall that occurred before you
Applicable To Business Liability Coverage,
acquired or formed the organization.
391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 4 of 6 16 c. The following is added to SECTION II -
LIABILITY, D. Liability and Medical Expenses
Limits of Insurance:
Product Recall Expense Limits of Insurance
a. The Limits of Insurance shown in the
SUMMARY OF COVERAGES of this
endorsement and the rules stated below
fix the most that we will pay under this
Product Recall Expense Coverage
regardless of the number of:
(1) Insureds;
(2) "Covered Recalls" initiated; or
(3) Number of "your products"
withdrawn.
b. The Product Recall Expense Aggregate
Limit is the most that we will reimburse
you for the sum of all "product recall
expenses" incurred for all "covered
recalls" initiated during the policy period.
c. The Product Recall Each Occurrence
Limit is the most we will pay in
connection with any one defect or
deficiency.
d. All "product recall expenses" in
connection with substantially the same
general harmful condition will be
deemed to arise out of the same defect
or deficiency and considered one
"occurrence".
e. Any amount reimbursed for "product
recall expenses" in connection with any
one "occurrence" will reduce the amount
of the Product Recall Expense Aggregate
Limit available for reimbursement of
"product recall expenses" in connection
with any other defect or deficiency.
f. If the Product Recall Expense Aggregate
Limit has been reduced by
reimbursement of "product recall
expenses" to an amount that is less than
the Product Recall Expense Each
Occurrence Limit, the remaining
Aggregate Limit is the most that will be
available for reimbursement of "product
recall expenses" in connection with any
other defect or deficiency.
g. Product Recall Deductible
We will only pay for the amount of
"product recall expenses" which are in
excess of the $500 Product Recall
Deductible. The Product Recall
Deductible applies separately to each
"covered recall". The limits of insurance
will not be reduced by the amount of this
deductible.
We may, or will if required by law, pay all
or any part of any deductible amount, if
applicable. Upon notice of our payment
of a deductible amount, you shall
promptly reimburse us for the part of the
deductible amount we paid.
The Product Recall Expense Limits of
Insurance apply separately to each
consecutive annual period and to any
remaining period of less than 12 months,
starting with the beginning of the policy
period shown in the Declarations, unless the
policy period is extended after issuance for
an additional period of less than 12 months.
In that case, the additional period will be
deemed part of the last preceding period for
the purposes of determining the Limits of
Insurance.
d. The following is added to SECTION II -
LIABILITY, E. Liability and Medical Expense
General Conditions, 2. Duties in the Event of
Occurrence, Offense, Claim or Suit:
You must see to it that the following are
done in the event of an actual or anticipated
"covered recall" that may result in "product
recall expense":
(1) Give us prompt notice of any discovery
or notification that "your product' must
be withdrawn or recalled. Include a
description of "your product' and the
reason for the withdrawal or recall;
(2) Cease any further release, shipment,
consignment or any other method of
distribution of like or similar products
until it has been determined that all
such products are free from defects that
could be a cause of loss under this
insurance.
e. For the purposs of this endorsement, the
following definitions are added to SECTION
II - LIABILITY, F. Liability and Medical
Expenses Definitions:
1. "Covered recall" means a recall made
necessary because you or a government
body has determined that a known or
suspected defect, deficiency,
inadequacy, or dangerous condition in
"your product" has resulted or will result
in "bodily injury" or "property damage".
2. "Product recall expense(s)" means:
a. Necessary and reasonable expenses
for:
(1) Communications, including radio
or television announcements or
printed advertisements including
stationary, envelopes and
postage;
391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 5 of 6 i IN
(2) Shipping the recalled products
from any purchaser, distributor or
user to the place or places
designated by you;
(3) Remuneration paid to your
regular "employees" for
necessary overtime;
(4) Hiring additional persons, other
than your regular "employees";
(5) Expenses incurred by "employees"
including transportation and
accommodations;
(6) Expenses to rent additional
warehouse or storage space;
(7) Disposal of "your product', but
only to the extent that specific
methods of destruction other than
those employed for trash
discarding or disposal are
required to avoid "bodily injury"
or "property damage" as a result
of such disposal,
you incur exclusively for the purpose
of recalling "your product'; and
b. Your lost profit resulting from such
"covered recall".
f. This Product Recall Expense Coverage does
not apply:
391-1006 08 16
Hanover
Insurance Group -
013F D681476 5701751
(1) If the "products - completed operations
hazard" is excluded from coverage under
this Coverage Part including any
endorsement thereto; or
(2) To "product recall expense" arising out of
any of "your products" that are otherwise
excluded from coverage under this
Coverage Part including endorsements
thereto.
8. Unintentional Failure to Disclose Hazards
The following is added to SECTION II -
LIABILITY, E. Liability and Medical Expenses
General Conditions:
Representations
We will not disclaim coverage under this
Coverage Part if you fail to disclose all hazards
existing as of the inception date of the policy
provided such failure is not intentional.
9. Unintentional Failure to Notify
The following is added to SECTION II -
LIABILITY, E. Liability and Medical Expenses
General Conditions, 2. Duties in the Event of
Occurrence, Offense, Claim or Suit:
Your rights afforded under this Coverage Part
shall not be prejudiced if you fail to give us
notice of an "occurrence", offense, claim or "suit',
solely due to your reasonable and documented
belief that the "bodily injury", "property damage"
or "personal and advertising injury" is not
covered under this Policy.
ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED.
Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 6 of 6 18 F'M-,
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
WAIVER OF OUR RIGHT TO RECOVER FROM
OTHERS ENDORSEMENT - CALIFORNIA
Policy Number: 57 WEC ZR5765 Endorsement Number:
Effective Date: 09/06/24 Effective hour is the same as stated on the Information Page of the policy.
Named Insured and Address: HF&H CONSULTANTS LLC
590 YGNACIO VALLEY RD STE 105
WALNUT CREEK CA 94596
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.
The additional premium for this endorsement shall be 2 % of the California workers' compensation premium otherwise due on such remuneration.
SCHEDULE
Person or Organization
Job Description
Any person or organization for whom you are required by written contract or agreement to obtain this waiver of rights from us
Countersigned by
Authorized Representative
Form WC 04 03 06 (1) Printed in U.S.A.
Process Date: 07/28/24 Policy Expiration Date: 09/06/25 19