1 AGREEMENT FOR CONSULTING SERVICES
BETWEEN THE CITY OF REDONDO BEACH
AND MICHAEL BAKER INTERNATIONAL, INC.
THIS AGREEMENT FOR CONSULTING SERVICES (this "Agreement") is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Michael Baker International, Inc., a Pennsylvania corporation ("Consultant" or “Contractor”).
The parties hereby agree as follows:
1. Description of Project or Scope of Services. The project description or scope of services to be provided by Consultant, and any corresponding responsibilities of City, or services required to be performed by City are set forth in Exhibit "A."
2. Term and Time of Completion. Consultant shall commence and complete the project or services described in Exhibit "A" in accordance with the schedule set forth in Exhibit "B".
3. Compensation. City agrees to pay Consultant for work performed in accordance with Exhibit "C".
* * * * *
GENERAL PROVISIONS
1. Independent Contractor. Consultant acknowledges, represents and warrants that Consultant is not a regular or temporary employee, officer, agent, joint venturer or partner of the City, but rather an independent contractor. This Agreement shall not be construed as a contract of employment. Consultant shall have no rights to any benefits which accrue to City employees unless otherwise expressly provided in this Agreement. Due to the independent contractor relationship created by this Agreement, the City shall not withhold state or federal income taxes, the reporting of which shall be Consultant's sole responsibility.
2. Brokers. Consultant acknowledges, represents and warrants that Consultant has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Agreement.
3. City Property. All plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Agreement shall upon request be delivered to the City within a reasonable time, and the rights thereto shall be deemed assigned to the City. If applicable, Consultant shall prepare check prints upon request. Said plans, drawings, 2 reports, calculations, data, specifications, videos, graphics or other materials, shall be specific for the project herein and shall not be used by the City for any other project without Consultant's consent. Notwithstanding the foregoing, Consultant shall not be obligated to assign any proprietary software or data developed by or at the direction of Consultant for Consultant's own use; provided, however, that Consultant shall, pursuant to Paragraph 14 below, indemnify, defend and hold the City harmless from and against any discovery or Public Records Act request seeking the disclosure of any such proprietary software or data.
4. Inspection. If the services set forth in Exhibit "A" shall be performed on City or other public property, the City shall have the right to inspect such work without notice. If such services shall not be performed on City or other public property, the City shall have the right to inspect such work upon reasonable notice.
Inspections by the City shall not relieve or minimize the responsibility of Consultant to conduct any inspections Consultant has agreed to perform pursuant to the terms of this Agreement. Consultant shall be solely liable for said inspections performed by Consultant. Consultant shall certify in writing to the City as to the completeness and accuracy of each inspection required to be conducted by Consultant hereunder.
5. Services. The project or services set forth in Exhibit "A" shall be performed to the full satisfaction and approval of the City. In the event that the project or services set forth in Exhibit "A" are itemized by price in Exhibit "C", the City in its sole discretion may, upon notice to Consultant, delete certain items or services set forth in Exhibit "A", in which case there shall be a corresponding reduction in the amount of compensation paid to Consultant. City shall furnish Consultant to the extent available, with any City standards, details, specifications and regulations applicable to the Project and necessary for the performance of Consultant's services hereunder. Notwithstanding the foregoing, any and all additional data necessary for design shall be the responsibility of Consultant.
6. Records. Consultant, including any of its subcontractors shall maintain full and complete documents and records, including accounting records, employee time sheets, work papers, and correspondence pertaining to the project or services set forth in Exhibit "A". Consultant, including any of its subcontractors shall make such documents and records available for City review or audit upon request and reasonable notice, and shall keep such documents and records, for at least five (5) years after Consultant's completion of performance of this Agreement.
Copies of all pertinent reports and correspondence shall be furnished to the City for its files.
7. Changes and Extra Work. All changes and/or extra work under this Agreement shall be provided for by a subsequent written amendment executed by City and Consultant.
3 8. Additional Assistance. If this Agreement requires Consultant to prepare plans and specifications, Consultant shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Consultant shall issue any necessary addenda to the plans and specifications as requested. In the event Consultant is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of this Agreement.
9. Professional Ability. Consultant acknowledges, represents and warrants that Consultant is skilled and able to competently provide the services hereunder, and possesses all professional licenses, certifications, and approvals necessary to engage in its occupation. City has relied upon the professional ability and training of Consultant as a material inducement to enter into this Agreement.
Consultant shall perform in accordance with generally accepted professional practices and standards of Consultant's profession.
10. Business License. Consultant shall obtain a Redondo Beach Business License before performing any services required under this Agreement. The failure to so obtain such license shall be a material breach of this Agreement and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual circumstances without necessitating any modification of this Agreement to reflect such waiver.
11. Termination Without Default. Notwithstanding any provision herein to the contrary, the City may, in its sole and absolute discretion and without cause, terminate this Agreement at any time prior to completion by Consultant of the project or services hereunder, immediately upon written notice to Consultant. In the event of any such termination, Consultant shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; and (2) necessary materials or services of others ordered by Consultant for this Agreement, prior to Consultant’s receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, and further provided that Consultant is not able to cancel such orders. Compensation for Consultant in such event shall be determined by the City in accordance with the percentage of the project or services completed by Consultant; and all of Consultant's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to the City. In conjunction with any termination of this Agreement, the City may, at its own expense, make copies or extract information from any notes, sketches, computations, drawings, and specifications or other data, whether complete or not.
12. Termination in the Event of Default. Should Consultant fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Agreement, the City may immediately terminate this Agreement by giving written notice of such termination, stating the reasons 4 for such termination. Consultant shall be compensated as provided immediately above, provided, however, there shall be deducted from such amount the amount of damages if any, sustained by the City by virtue of Consultant's breach of this Agreement.
13. Conflict of Interest. Consultant acknowledges, represents and warrants that Consultant shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Agreement. Consultant further acknowledges, represents and warrants that Consultant has no business relationship or arrangement of any kind with any City official or employee with respect to this Agreement. Consultant acknowledges that in the event that Consultant shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Agreement, all consideration received under this Agreement shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Agreement for one (1) year.
14. Indemnity. To the maximum extent permitted by law, Consultant hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collectively “Indemnitees”) from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of Consultant’s performance or work hereunder (including any of its officers, agents, employees, Subcontractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
a. Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Consultant because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
b. Waiver of Right of Subrogation. Consultant, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
5 15. Insurance. Consultant shall comply with the requirements set forth in Exhibit "D." Insurance requirements that are waived by the City's Risk Manager do not require amendments or revisions to this Agreement.
16. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Agreement.
17. Compliance with Laws. Consultant shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Agreement, including without limitation all environmental laws, employment laws, and nondiscrimination laws.
18. Limitations upon Subcontracting and Assignment. Consultant acknowledges that the services which Consultant shall provide under this Agreement are unique, personal services which, except as otherwise provided herein, Consultant shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion. In the event that the City, in writing, approves any assignment or subletting of this Agreement or the retention of subcontractors by Consultant, Consultant shall provide to the City upon request copies of each and every subcontract prior to the execution thereof by Consultant and subcontractor. Any attempt by Consultant to assign any or all of its rights under this Agreement without first obtaining the City's prior written consent shall constitute a material default under this Agreement.
The sale, assignment, transfer or other disposition, on a cumulative basis, of twenty-five percent (25%) or more of the ownership interest in Consultant or twenty-five percent (25%) or more the voting control of Consultant (whether Consultant is a corporation, limited liability company, partnership, joint venture or otherwise) shall constitute an assignment for purposes of this Agreement.
Further, the involvement of Consultant or its assets in any transaction or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Agreement or Consultant’s assets occurs, which reduces Consultant’s assets or net worth by twenty-five percent (25%) or more shall also constitute an assignment for purposes of this Agreement.
19. Subcontractors. Consultant shall provide properly skilled professional and technical personnel to perform any approved subcontracting duties. Consultant shall not engage the services of any person or persons now employed by the City without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion.
20. Integration. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents 6 exchanged between Consultant and City may be used to assist in the interpretation of the exhibits to this Agreement.
21. Amendment. This Agreement may be amended or modified only by a subsequent written amendment executed by both parties.
22. Conflicting Provisions. In the event of a conflict between the terms and conditions of this Agreement and those of any exhibit or attachment hereto, this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by the City shall prevail over those prepared by Consultant.
23. Non-Exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Consultant hereunder shall be non-exclusive, and City reserves the right to employ other contractors in connection with the project.
24. Exhibits. All exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit "A" which does not pertain to the project description, proposal, or scope of services (as applicable) to be provided by Consultant, or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Agreement.
25. Time of Essence. Time is of the essence of this Agreement.
26. Confidentiality. To the extent permissible under law, Consultant shall keep confidential its obligations hereunder and the information acquired during the performance of the project or services hereunder.
27. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
28. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the County of Los Angeles, Southwest Judicial District.
29. Attorneys’ Fees. In the event either party to this Agreement brings any action to enforce or interpret this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys’ fees (including expert witness fees) and costs.
This provision shall survive the termination of this Agreement.
30. Claims. Any claim by Consultant against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City 7 shall be waived if not made within six (6) months after accrual of the cause of action.
31. Interpretation. Consultant acknowledges that it has had ample opportunity to seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
32. Warranty. In the event that any product shall be provided to the City as part of this Agreement, Consultant warrants as follows: Consultant possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets all specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of thirty (30) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Consultant, at Consultant's expense, including shipping.
Consultant shall not be liable under this warranty for an amount greater than the amount set forth in Exhibit "C" hereto.
33. Severance. Any provision of this Agreement that is found invalid or unenforceable shall be deemed severed, and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.
34. Authority. City warrants and represents that upon City Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of City. The party signing on behalf of Consultant warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Consultant, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Agreement on behalf of Consultant.
35. Waiver. The waiver by the City of any breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.
SIGNATURES FOLLOW ON NEXT PAGE
8 IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as of this 9th day of August, 2022.
CITY OF REDONDO BEACH, MICHAEL BAKER INTERNATIONAL, INC., a chartered municipal corporation a Pennsylvania corporation __________________________ By: _______________________
William C. Brand, Mayor Name:_______________________
Title: _______________________
ATTEST: APPROVED:
__________________________ __________________________
Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
__________________________
Michael W. Webb, City Attorney
Associate Vice President
William M. Hoose
9 EXHIBIT "A"
SCOPE OF SERVICES
CONSULTANT’S DUTIES
Consultant shall perform the following duties.
A. GENERAL DUTIES
1. Assign Damien Delany and staff, as described in Section A of Exhibit “C” to perform all services described in this Agreement.
2. Manage all components of City's Community Development Block Grant (“CDBG Program”). Carry out scope of services in conjunction with City direction, input, and review.
3. Meet with City's representative regularly in order to provide updates on the progress of the Program and to ensure proper administration and implementation of the Program under the Agreement.
B. CDBG ADMINISTRATION
1. Prepare the Five-Year Consolidated Plan (“Con Plan”) and perform tasks associated with the development of the Con Plan including, but not limited to, setting public hearings, publishing public hearing notices and distributing/displaying the Plan for public viewing.
2. Prepare staff reports and presentation materials for the CDBG public hearings at least twice a year, and attend public hearings with City staff.
3. Prepare environmental reviews and supporting documents for the upcoming year's CDBG projects, maintain environmental files, prepare and publish the Release of Funds advertisement and prepare the Request for Release of Funds and Certification (HUD Form 7015.15) for the City Manager's signature and submission to the Department of Housing and Urban Development (“HUD”).
4. Prepare the Consolidated Annual Performance and Evaluation Reporting Narrative and Grantee Performance Reports (“CAPER / GPR”), prepare and publish the advertisement for the CAPER / GPR and make the reports available for public viewing. Prepare the HUD Section 3 Summary Report (HUD Form 60002) for inclusion in the CAPER / GPR.
5. Manage and monitor the City’s Fair Housing Services contract.
6. Monitor the City’s Fair Housing Services Agency.
10 7. Update the Integrated Disbursement and Information System (“IDIS”) as needed, set up activities (including, but not limited to, the Housing Improvement Program, Administration, Public Service Agency Funding Program, and Capital Improvement Projects) on a fiscal year basis, and close out activities after the final draw down of CDBG grant funds from the City HUD account for the fiscal year. Provide IDIS reports as necessary or as requested by City staff.
8. Draw down CDBG funding at least quarterly through IDIS, based on program expenditures recorded in the City's MUNIS financial system. Maintain an ongoing record of draws for each activity. Work with the City's Financial Services Department to determine the final draw amount for the fiscal year.
9. Reconcile CDBG Program financial information maintained on the IDIS System with CDBG Program financial information maintained on the City's MUNIS System. Provide a reconciliation to the City upon City’s request.
10.Prepare the quarterly Federal Financial Report for the City Manager's signature.
11.Prepare the Minority Business Enterprise Contract and Subcontract Activity Report (HUD Form 2516), for submission to HUD. Monitor and record loan repayments made under the Housing Rehabilitation Deferred Payment Loan Program, Redevelopment Deferred Payment Loan Program, Rental Rehabilitation Program, and Landlord Loan Program. Maintain existing history reports in Excel format for the City auditor.
12.Develop and maintain all necessary CDBG documentation for HUD monitoring and for the City's Single Audit.
13.Assist federal HUD monitors during CDBG program performance reviews, and assist City auditors during the Single Audit.
14.Ensure adherence with all CDBG and City regulations and procedures.
15.Work with City staff to develop a task timeline for the above duties.
C. MOBILITY ACCESS / EMERGENCY REPAIR PROGRAM
1. Maintain a list of eligible applicants for the Mobility Access/Emergency Repair Program.
2. Mail or email program applications to potential clients.
3. Review applications and supporting documentation with City staff to determine applicant eligibility and prepare eligibility worksheet. 11 4. Obtain homeowner's signature on the Work Authorization Form, the Notice to Proceed Form, and the Waiver and Hold Harmless Agreement.
5. Develop a list of qualified, insured contractors for the Program who shall provide services, including but not limited to, installation of accessibility improvements, emergency repairs, and installation of hot water heaters and space heaters. Consultant shall engage City based, qualified, insured contractors when feasible.
6. Prepare a work write up and cost estimate for each project described in Section C.5 of this Exhibit “A” and present to City for review and approval.
7. Solicit and receive the appropriate number of bids for each work write up.
8. Award each project to the lowest responsible bidder.
9. Monitor project progress as necessary.
10.Work with City staff to process invoices from project contractors.
11.Obtain a Notice of Completion / Satisfaction from each project homeowner.
12.Maintain a client file with all required documentation for each project including obtaining the Notice of Satisfaction from each homeowner.
D. PUBLIC SERVICE AGENCY FUNDING PROGRAM
1. Assist City staff with preparation of the Request for Proposals (“RFP”) for the annual funding cycle.
2. Assist City staff with the evaluation of proposals and funding recommendations.
3. Prepare related staff reports.
4. Prepare 2022-2023 funding letters.
5. Monitor all funded agencies with in person visits.
E. CAPITAL IMPROVEMENT PROJECTS
1. General Duties
a. Determine CDBG eligibility of potential capital improvement projects. b. Provide CDBG-related bid package and construction contract documents to the City Engineering Department.
12 c. Participate in preconstruction conferences and provide documents related to federal requirements, as needed, to City staff and contractors. d. Prepare and submit documents and reports required by the U.S.
Department of Labor (“DOL”) and HUD for construction projects receiving CDBG funding.
e. Perform onsite monitoring related to federal Labor Standards and other CDBG requirements.
2. Labor Standards Compliance for Capital Improvement Projects a. Review bid package to ensure compliance with federal labor standards. b. Conduct pre-bid conference to ensure project complies with HUD Section 3 construction requirements.
c. Verify eligibility of selected contractor and its subcontractors to receive contract awards by confirming current, active license status with the Contractors State License Board and non-appearance on Federal List of Parties Excluded or the debarment list.
d. Assist City in preparing "Section 3 Bid Analysis Memorandum" and "Agency Report of Contract Award” forms. Assist City in preparing Notice of Contract Award to the DOL Federal Contract Compliance Program.
e. Attend preconstruction conferences to present labor standards compliance requirements to contractors and subcontractors; prepare minutes and attendance record thereof.
f. Verify and document job site posting of wage rate information and labor standards compliance posters.
g. Perform all labor standards compliance documentation in accordance with the Davis Bacon Act and related laws.
h. Perform all necessary labor standards compliance interviews of employees onsite, using appropriate forms, in the proper frequency and of the proper work classifications, as required by applicable federal labor standards compliance requirements. Receive and review labor standards compliance documentation from onsite interviews and compare with contractor submitted documents.
i. Monitor weekly payroll documentation on a continuous basis, including, but not limited to, certified payroll reports, fringe benefit statements, apprenticeship documentation, and payroll deduction authorizations. 13 j. Follow up with contractor by telephone and/or certified mail regarding required document submittals and payroll discrepancies. k. Receive and review contractors' HUD Section 3 compliance paperwork. l. Coordinate with City staff about the withholding of progress and/or retention payments if contractor fails to abide by labor standards compliance and/or HUD Section 3 requirements.
m. Receive, pursue, and document labor standards complaints. Recommend special action to be taken if contractor continuously fails to comply with requests and requirements.
n. Maintain content and format of federal labor standards compliance file in conformance with applicable HUD requirements.
o. Participate in and represent the City at current project audits and/or file reviews.
p. Submit complete labor standards compliance file to City for retention.
Federal labor standards compliance files must be retained for a period of no less than five (5) years.
14 EXHIBIT "B"
SCHEDULE FOR COMPLETION
TERM. The term of this Agreement shall commence on July 1, 2022 and expire June 30, 2023 (“Term”).
15 EXHIBIT "C"
COMPENSATION
Provided Consultant is not in default under this Agreement, Consultant shall be compensated provided below.
A. AMOUNT
1. Hourly Rate. Consultant shall be paid the following hourly rates for services described herein.
Name/Title
Hourly
Rate
Damien Delany Project Manager $ 165
Tom Lao, Inspector $ 145
Michael Neal, Grants Coordinator $ 150
Sandra Lee, Labor Compliance Officer $ 110
Brent Schleck, Environmental Analyst $ 135
Joyce Lee, Assistant Planner $ 105
2. Not to Exceed Amount. Notwithstanding the foregoing, Consultant’s compensation shall not exceed the following amounts.
Exhibit “A” Section Service
Not to
Exceed
Amount
Sections A and B
General Duties and CDBG
Administration $ 25,620
Section C
Mobility Access/Emergency Repair
Program $ 8,025
Section D LACDA CDBG Assistance $ 10,000
Section E Capital Improvement Projects $ 9,800
Total Compensation Limit $ 53,475
3. Funding Reduction. If CDBG funds provided to City by HUD are reduced, suspended or terminated, City hereby reserves the right to reduce, suspend or terminate the funds provided.
B. METHOD OF PAYMENT. Consultant shall provide invoices indicating the hours worked, applicable billing rate, and services and tasks performed during the prior month to City for approval and payment. Invoices must be itemized, adequately detailed, based on accurate records, and in a form reasonably satisfactory to City.
Consultant may be required to provide back-up material upon request.
C. SCHEDULE FOR PAYMENT. City agrees to pay Consultant within forty-five (45) days of receipt of monthly invoices; provided however, services are completed to the City’s full satisfaction.
16 D. NOTICE. Written notices to City and Consultant shall be given by registered or certified mail, postage prepaid and addressed to or personally served on the following parties.
Consultant: Michael Baker International, Inc.
3760 Kilroy Airport Way, Suite 270
Long Beach, CA 90806
Attention: Albert Warot, Associate Vice President
City: City of Redondo Beach
Department of Community Services
1922 Artesia Blvd.
Redondo Beach, CA 90278
Attention: Director of Community Services
All notices, including notices of address changes, provided under this Agreement are deemed received on the third day after mailing if sent by registered or certified mail.
Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party.
17 EXHIBIT “D”
INSURANCE REQUIREMENTS FOR CONSULTANTS
Without limiting Consultant’s indemnification obligations under this Agreement, Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
Workers’ Compensation insurance as required by the State of California.
Employer’s Liability Insurance.
Minimum Limits of Insurance
Consultant shall maintain limits no less than:
General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project.
Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers or (2) the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
18 Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Endorsement:
General Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of work performed by or on behalf of the Consultant. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance, or as a separate owner’s policy.
Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant.
For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
Each insurance policy shall be endorsed to state that the inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.
Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project.
The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Consultant’s part.
Acceptability of Insurers
Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.
19 Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City’s requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements shall be received and approved by the City before the contract is awarded. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
Subcontractors
Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
Risk Management
Consultant acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.