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AGREEMENT WITH TANNER PACIFIC, INC.
FOR PROFESSIONAL CONSULTANT SERVICES
FOR
WASTEWATER TREATMENT PLANT CONSTRUCTION MANAGEMENT SERVICES This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California (“CITY”), and Tanner Pacific, Inc, a corporation (“CONSULTANT”), whose address is 274 Redwood Shores Parkway, Suite 607, Redwood City, CA 94065
RECITALS:
A. CITY desires certain professional services hereinafter described.
B. CITY desires to engage CONSULTANT to provide these professional services by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein.
NOW, THEREFORE, IT IS AGREED as follows:
SECTION 1 - SCOPE OF SERVICES
The scope of services to be performed by CONSULTANT under this Agreement is as described in Exhibit A to this Agreement, attached and incorporated by reference.
SECTION 2 - DUTIES OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONSULTANT under this Agreement. CONSULTANT shall, without additional compensation, correct or revise any errors or deficiencies in its work.
CONSULTANT represents that it is qualified to furnish the services described under this Agreement.
CONSULTANT shall be responsible for employing or engaging all persons necessary to perform the services of CONSULTANT.
CONSULTANT agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.
SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.
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CITY shall examine documents submitted by CONSULTANT and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONSULTANT's work.
SECTION 4 – TERM
The professional services to be performed under this Agreement shall commence upon execution of this Agreement and be completed on October 30, 2029, with up to two (2) optional oneyear extensions by the CITY, for a potential maximum duration of five (5) years from the commencement date. It is understood and agreed that time is of the essence of this Agreement.
CITY agrees to exercise due diligence in performing its tasks to implement the CONSULTANT's timetable.
SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee in an amount not to exceed $4,000,000, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference.
At the CITY’s discretion, two (2) one-year extension options may be executed with additional budgets of up to $1,000,000 for each year extended.
SECTION 6 - TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice the date stipulated in the ten (10) days’ written notice. CITY shall reimburse CONSULTANT for all services rendered at the time of termination.
Upon termination and upon CITY's payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation.
SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not.
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SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONSULTANT in connection with the performance of this Agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release.
SECTION 9 - INTEREST OF CONSULTANT
CONSULTANT (including its employees, agents, and subconsultants) covenants that it presently has no interest and shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. CONSULTANT shall comply with all requirements of the Political Reform Act (California Government Code Section 81000, et seq.) and other laws relating to conflicts of interest, including: (a) CONSULTANT shall not make or participate in a decision made by the CITY if it is reasonably foreseeable that the decision may have a material effect on CONSULTANT’S economic interest, and (b) if required by law, CONSULTANT shall file financial disclosure forms with the City Clerk.
If CONSULTANT maintains or acquires a conflicting interest, any contract with the CITY (including this Agreement) involving CONSULTANT’S conflicting interest may be terminated by the CITY.
SECTION 10 - CONSULTANT'S STATUS
It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONSULTANT an agent or employee of CITY while providing services under this Agreement.
SECTION 11 - INDEMNITY
CONSULTANT agrees to hold harmless and indemnify CITY and the Estero Municipal Improvement District, their elected and appointed officials, employees, volunteers, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONSULTANT’s performance of this Agreement, except those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend CITY and the Estero Municipal Improvement District, its elected and appointed officials, employees, volunteers, and agents against any such claims. The CONSULTANT’S duty to indemnify shall survive expiration or early termination of this Agreement.
SECTION 12 - INSURANCE
CONSULTANT shall procure and maintain for the duration of the contract and three years thereafter (five years for building or major improvements) the insurance specified in Exhibit C to this Agreement.
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SECTION 13 - NON-ASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY.
SECTION 14 - RELIANCE UPON PROFESSIONAL
SKILL OF CONSULTANT
It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in accordance with the standard of care applicable to professionals performing similar services in the same or similar locality under similar circumstances, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation.
SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.
SECTION 16 - SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
SECTION 17 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this Agreement that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.
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SECTION 18 - NON-DISCRIMINATION
CONSULTANT warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONSULTANT nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.
SECTION 19 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.
The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.
SECTION 20 - LITIGATION
CONSULTANT shall testify at CITY'S request if litigation is brought against CITY in connection with CONSULTANT's services under this Agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT's wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT's standard hourly rates at the time of actual testimony.
SECTION 21 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:
To CITY: Jennifer Lam
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403-138
To CONSULTANT: Tanner Pacific, Inc.
Attn: William Tanner
274 Redwood Shores Parkway, Suite 607
Redwood City, CA 94065
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SECTION 22 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations, and agreements, either written or oral.
This document may be amended only by written instrument, signed by both CITY and CONSULTANT.
SECTION 23 - CONFLICTS
In the event of any conflict between the provisions of this Agreement and any other referenced exhibit or document attached to this Agreement, the language and terms of this Agreement shall control.
SECTION 24 - AUTHORITY TO ENTER INTO AGREEMENT
CONSULTANT has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
SECTION 25 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, CITY OF SAN MATEO and Tanner Pacific, Inc have executed this Agreement the day and year first above written.
CITY OF SAN MATEO CONSULTANT
Matt Fabry
Public Works Director
Date William Tanner
Its Authorized Agent
President
Date
APPROVED AS TO FORM ADDITIONAL CORPORATE
OFFICER
(if necessary per the above)
Linh P. Nguyen
Assistant City Attorney
Date Armando Lopez
Principal
Date
Attachments:
Exhibit A: Scope of Services
Exhibit B: Fee Rates
Exhibit C: Insurance Requirements
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EXHIBIT A
SCOPE OF SERVICES
Task 1 – General Services
Project management and coordination for construction management scope of services include tasks that will be performed by the Consultant throughout the project.
These services include:
Project management and Coordination of construction management services Quality Control
Management of Subconsultants and Subcontractors, if applicable Agency Coordination and City Meeting Support
Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed construction management of the project, including subconsultants and subcontractors, and will keep the City’s Project Manager appraised of the status of the project.
The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City/CML per the Standard Agreement for Professional Consultant Services.
Task 1.1.2 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task and project invoicing. The invoices will comply with Program standards and document the following:
• The labor-hours and billing rates for staff for each task in the Work Breakdown Structure (WBS) • All direct expenses or other costs incurred.
• The current and previous billing period invoice amounts. • The budget spent, budget remaining, and cost to complete. • Backup documentation for all expenses.
The invoice amounts will be split by project in the event Consultant is working on more than one Project.
Task 1.2 – Quality Control
The Consultant will develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The Consultant’s QA/QC Plan will be reviewed and approved by the City Project Manager and will include or reference all the controls necessary for implementation.
Task 1.3 – Management of Subconsultants and Subcontractors If the Consultant requires the services of any subconsultants or subcontractors, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.
The Consultant will manage the activities of subconsultants and subcontractors during performance of the project.
All requirements of the contract shall also apply to subconsultants and subcontractors.
Task 1.4 – Agency Coordination
The Consultant will assist the City in coordinating the project with various local/county, state/regional, and federal agencies. This task includes attending meetings, as needed, with applicable agencies, providing meeting minutes, and providing project information and exhibits to the agencies. This task is established as an allowance task and shall only be used when specifically requested by the City in writing. Costs for this task shall be invoiced Professional Consultant Services Page 9 of 16
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as a separate line item and shall include a copy of the authorization from the City.
Deliverables
Monthly progress reports, including progress narrative, invoices and financial details.
Task 2 – Construction Management Services
1. Prepare and submit a Construction Management Plan prior to start of project work. This Plan is to be read in conjunction with Clean Water Program (CWP) Program Management Plan (PMP) and Construction Management Guidelines.
2. Project and Contract Administration:
(a) Coordinate pre-construction and weekly progress meetings and prepare and distribute agenda and meeting minutes. The meeting minutes shall capture key points of information shared, including any issues discussed, directions given, decisions made, and action items assigned. (b) Evaluate the Construction Contractor’s contract schedule for actual versus planned progress and document all scheduling discrepancies and deviation, including baseline schedule review and acceptance; monthly schedule update reviews; review and approval of schedule changes; and schedule recovery plans.
(c) Prepare and respond to Time Impact Analysis (TIA).
(d) Communicate effectively and coordinate with Construction Contractor, City Project Manager, Program Manager, Program Team, City Operations and Maintenance (O&M), Design Engineer, and Public Outreach Team.
(e) Coordinate project access to City O&M and Project Manager during construction, rehabilitation, upgrade, and repair activities at the Wastewater Treatment Plant. (f) Assist Project Manager and City with Public outreach activities, including responding to community inquiries related to the project.
(g) Prepare and submit Construction monthly progress reports along with monthly payment invoice. (h) Construction Monthly progress reports shall include the following:
(i) Overview of work accomplished, including photos;
(ii) Safety Records;
(iii) Outstanding and potential issues;
(iv) Work to be completed the following month;
(v) Updated schedule of work;
(vi) Explanations for deviations from the initial schedule; (vii) Cost status and forecast;
(viii) Potential changes and force accounts;
(ix) Overview of quality of work;
(x) Overview of project communications;
(xi) Explanation of any upcoming risks/problem areas and corrective action to be taken. (i) Review Construction Contractor’s conduct for compliance with contract documents, environmental documents, state laws, etc.
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(j) Review Construction Contractor’s submittals for compliance with contract documents and coordinate with Program Manager, City Project Manager, City and Design Engineer review. (k) Review Construction Contractor’s Requests for Information (RFI) and coordinate with Project Manager, City and Design Engineer for resolution and response where appropriate. Log all RFIs and associated responses.
(l) Review, approve, and maintain Schedule of Values.
(m) Review Construction Contractor’s monthly invoices and recommend payment requests. (n) Monitor and ensure the Contractor, including their Sub-Contractors’ upload monthly their Certified Payrolls to the State of California Department of Industrial Relations (DIR) Public Web Site to ensure compliance of the monthly hours worked by all craft and labor workforce onsite. This includes the General Contractor and Consultant’s craft/labor employees performing work onsite and their related work hours completed and reported each month.
a. For projects in which a third-party labor compliance firm is engaged, review monthly Labor Compliance Reports and coordinate resolution of potential issues. (o) Provide Construction Contractor with acceptability or deficiencies in work and required actions for contract compliance.
(p) Provide information to Construction Contractor for its detailed and feasible system outage requests.
(q) Review all shutdown requests Method of Procedure (MOPs) and contingency plans for feasibility and reliability. Coordinate MOPs with Project Manager, City O&M, Design Engineer and other stakeholders. Services may include, but are not limited to:
a. Coordination of temporary bypass pumping systems, wet weather and peak flow contingency planning, operational resiliency during shutdowns and tie-ins, process reliability during startup transitions, and temporary treatment systems necessary to maintain continuous WWTP operations during construction activities. (r) Coordinate all system outage requests and general construction activity with Construction Contractor, City Operations and Maintenance (O&M), Design Engineer and other stakeholders to ensure adequate operations of facilities.
(s) Maintain project document files.
(t) Track and manage all communications to assure response compliance. (u) Prepare responses to correspondence in a timely manner. (v) Utilize the Microsoft SharePoint project documentation website furnished by the City of San Mateo CWP.
(w) Monitor Contractor Quality Control Program.
(x) Prepare Non-Conformance Notice (NTC) and Coordinate Resolution. (y) Coordinate with Public Works Personnel for review of any PLC/SCADA submittals against the Public Works SCADA standards, as well as for startup and testing support related to the SCADA standards as needed.
(z) Coordinate testing, startup and commissioning, including:
(xii) Coordinate review and acceptance of Testing, Commissioning, and Startup Plans.
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(xiii) Coordinate operational startup and tie-in activities with Contractor, City O&M, Project Manager, and stakeholders to maintain continuous WWTP operations during commissioning.
(xiv) Monitor facility, equipment, SCADA and performance testing. Coordinate review and approval of test results.
(xv) Monitor Receipt of Testing results forms.
(xvi) Conduct Witness Testing.
(xvii) Review & Recommend Acceptance to submitted test results. (xviii) Track deficient test results or repair work.
3. Construction Observation/Inspection:
(a) Inspect and observe Construction Contractor’s work daily for compliance with the contract documents.
(b) Maintain daily inspection reports of work, including photos, descriptions of daily activities, any corrective actions to be taken by Construction Contractor, persons and equipment onsite, and work to be completed the following day(s).
(c) Review materials and equipment delivered to site for compliance with submittals and contract documents.
(d) Coordinate material testing and specialty inspections (to be furnished by separate Consultant) as required in the contract documents.
(e) Review Construction Contractor’s compliance with all permits, stormwater regulations and permits (Stormwater Pollution Prevention Plan [SWPPP]), environmental documents, and mitigation measures.
(f) Review Construction Contractor’s compliance with health and safety standards and regulations, and report non-compliance.
(g) Conduct monthly monitoring of record documents to ensure proper maintenance and completion by Contractor.
(h) Maintain complete electronic and hard-copy field documentation records. (i) Confirm that preliminary O&M Manuals have been submitted and approved prior to scheduling training on a piece of equipment.
(j) Confirm training is complete prior to scheduling the parties for startup and testing of equipment.
4. Change Order Management:
(a) Prepare and issue Field Orders (FO)/Work Change Directives (WCD). (b) Prepare and issue Requests for Proposals (RFP).
(c) Coordinate, review, and evaluate potential change orders for entitlement and merit review and negotiate change order pricing.
(d) Maintain change order log for construction activities, and track and communicate potential upcoming changes.
(e) Prepare and update monthly Change and Payment Summary (CPS).
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(f) Coordinate, review, evaluate, and recommend course of action for contract change order requests and submittals.
(g) Prepare Change Request Forms (CRF) and Contract Change Orders. (h) Conduct inspections and evaluate site conditions that are perceived to be different than shown in contract documents.
(i) Review, gather, and evaluate information for resolution of potential claims, disputes, or contractual issues.
5. Project Closeout and Acceptance Services
(a) Conduct site inspection(s) to determine if facilities are complete and in compliance with contract documents. Coordinate with Design Engineer and other required staff to walk the site for developing corrective items of work list.
(b) Develop corrective item work lists (punch lists) and conduct inspection of corrective actions performed. Monitor Construction Contractor’s correction of the items on the punch list for satisfactory completion.
(c) Consider and recommend final acceptance of work by the City. (d) Recommend retention release to Construction Contractor. (e) Prepare substantial completion certificate once corrective actions are complete and project is in compliance with contract documents to the satisfaction of the Program Manager. (f) Verify all O&M Manual submittals as well as spare parts as required by the contract documents. (g) Coordinate final submittal of organized and complete record drawings in accordance with contract documents.
(h) Confirm receipt of all special warranties, guarantees, spare parts, and additional maintenance materials.
(i) Review Construction Contractor as-builts and review for completeness and accuracy. (j) Verify Construction Contractor has made all payments and that all required releases, including warranty release, lien release(s), and release of claims have been submitted by Construction Contractor.
(k) Prepare and submit final construction report.
Task 3 – General Construction Management Services
The following general construction management related services may be included depending on the project and will be defined on an as-needed basis in the request for proposal for each project Task Order.
1. Participate in meetings with Program staff and other stakeholders, review available documents and document management system, and visit project sites to accomplish program and project familiarization.
2. Perform as needed/miscellaneous preconstruction services as requested by Water Treatment Plant Personnel up to the level of effort/budget established in this TO.
3. Perform constructability reviews of Contract Documents including plans, specifications, and construction schedules and document the review findings in a form agreed with Public Works Personnel.
(a) The reviews shall consist of both intra-discipline and inter-discipline for Structural, Mechanical, Process, Civil, Instrumentation & Controls, Electrical, Architectural and specialty disciplines such as Geotechnical and Environmental.
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(b) If applicable, the Consultant shall make recommendations for cost-effective alternative materials, and/or design concepts.
(c) The review shall include but not be limited to the following:
(i) Clarity, consistency, completeness, and ease of construction to achieve the overall project objectives.
(ii) Detailed requirements of equipment procurement and fabrication. (iii) Identification of existing underground utilities. (iv) Detailed description of traffic control requirements, hours of work, trench closure procedures and maximum number of headings allowed.
(v) Detailed description of third-party coordination requirements (e.g. utilities, Right of Entry permits, and worker training needed for working within railroad right-of-way (ROW), or work within CALTRANS ROW)
(vi) Detailed description of closure periods for work near businesses, schools, or other events. (vii) Identification of interfaces and potential interfaces between adjacent contracts and confirmation they are clear and constructible.
(viii) Front ends and General Requirements for consistency across projects, compatibility with City and other regulatory requirements, incorporation of effective tools for administering the contract and adequate definition of temporary facilities to expedite mobilization (including CM facilities).
(ix) Specific requirements for major schedule milestones within each Contract to help ensure coordination with other Contracts and prevent interruptions to existing operations. (x) Biddability to minimize change orders and risks of bid protest. Review of bid list to include:
verify bid items and quantities; make sure the correct pay sections are referenced; and approve the units of measurements included in the list. Verify bid list for incorporation of allowances for common City practice for expediting the work, such as permit fees, field orders and third-party utility coordination/costs.
4. Provide cost estimating and scheduling support, including review of Design Engineer opinions of probable construction cost and preliminary construction schedules.
5. Provide as-needed CMS support under the direction of the CML including consultation, review of cost proposals/estimates, construction schedules and construction contract items. Said support will not be construed as taking on contractor responsibilities for construction means and methods, safety, budget, schedule, performance, etc.
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EXHIBIT B
FEE RATES
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EXHIBIT C
INSURANCE REQUIREMENTS
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CONSULTANT has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.
If the CONSULTANT maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City and the Estero Municipal Improvement District, their elected and appointed officials, employees, volunteers, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the CONSULTANT; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONSULTANT including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CONSULTANT’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this contract, the CONSULTANT’s insurance coverage shall be primary insurance as respects the City and the Estero Municipal Improvement District, their elected and appointed officials, employees, volunteers, and agents. Any insurance or self-insurance maintained by the City or the Estero Municipal Improvement District, their elected and appointed officials, employees, volunteers, or agents shall be excess of the CONSULTANT’s insurance and shall not contribute with it.
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Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.
Waiver of Subrogation
CONSULTANT hereby grants to City and the Estero Municipal Improvement District a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the City or the Estero Municipal Improvement District by virtue of the payment of any loss under such insurance.
CONSULTANT agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City or the Estero Municipal Improvement District have received a waiver of subrogation endorsement from the insurer.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the CONSULTANT to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Verification of Coverage
CONSULTANT shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.