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City_of_Santa_Monica_CSA_Bay_Foundation_SaMo2_1-9-24_FINAL.docx

Santa Monica City Council
August 27, 2024

Document
City_of_Santa_Monica_CSA_Bay_Foundation_SaMo2_1-9-24_FINAL.docx
Meeting
August 27, 2024
Body
Santa Monica City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on santamonicacityca.iqm2.com. That file is the official record.

Agreement No. 10309 (CCS)

CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Agreement”), entered into as of _________________ (“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and The Bay Foundation, a 501(c)(3) environmental organization (“FOUNDATION”), is made with reference to the following:

RECITALS:

A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.

B. FOUNDATION is an environmental organization with a mission to improve water quality, conserve and rehabilitate natural resources, and protect the Bay’s benefits and values.

FOUNDATION is qualified to do business, and is doing business, in the State of California.

FOUNDATION represents it has the background, knowledge, experience, and expertise necessary to provide the services set forth in this Agreement.

C. FOUNDATION and the City have worked previously on a climate and coastal adaptation project in pursuit of a vibrant, safe, and resilient local environment. The funds for the current project are from the Refugio Oil Spill Trustee Agencies and the result of mitigation from impacts to Santa Monica State Beach resulting from the Refugio Oil Spill. The approach of this project is to increase coastal adaptation to sea level rise and erosion through the establishment of dune forming native vegetation creating a ‘living shoreline’ that is habitat for wildlife, enhances the beach visitor experience, and enables community engagement. FOUNDATION endeavors and is committed to creating an integrated living shoreline to protect and prepare the iconic coastline of the City for the future.

D. The City and FOUNDATION desire to enter into an agreement for the FOUNDATION to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

TERMS AND CONDITIONS

1. Term. This Agreement begins on the Execution Date and terminates on July 7th, 2027, unless sooner terminated in accordance with Section 14.

1.1 Options to renew. Upon the expiration of the Term, the City shall have, at its sole and complete discretion, five (5) options to extend the term by additional one year periods. The City will notify the FOUNDATION of the exercise of the option, if any, through written letter sent by the City Manager or his/her designee.

2. FOUNDATION Services. FOUNDATION will perform all of the services (“Services”) described in Exhibit A, Scope of Services. FOUNDATION will complete the Services in accordance with Exhibit B, Budget.

3. City Services. The City agrees to:

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 1/18/2024

3.1 Make available to FOUNDATION any currently existing documents, data or information required for the performance of the Services.

3.2 Designate a representative authorized to act on behalf of City.

3.3 Promptly examine and render findings on all documents submitted for staff review by FOUNDATION.

4. Compensation. The City will not compensate FOUNDATION for services described in Exhibit A, Scope of Services. FOUNDATION agrees to bear, at its sole cost and expense, all of the fees and costs for the implementation, maintenance and repair of the SaMo2 Beach Dune Restoration Project. FOUNDATION will utilize the not to exceed amount of Grant Funds from the Refugio Oil Spill Trustee Council outlined in Exhibit B, Budget to complete services outlined in Exhibit A.

5. Long Term Operation and Maintenance. City agrees to perform and fund the operation and maintenance of the SaMo2 Beach Dune Restoration Project upon termination of this Agreement and any and all related extensions.

6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:

6.1 All notices, demands, requests or approvals to the City:

Office of Sustainability and the Environment
City of Santa Monica
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: Nico Predock, Sustainability Analyst
Re: Phase 2 Beach Dune Restoration CSA
with a copy to:

Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Phase 2 Beach Dune Restoration CSA

6.2 All notices, demands, requests or approvals to FOUNDATION:

Tom Ford, CEO8117 W. Manchester Ave. #750
Playa Del Rey, CA 90293
Re: Phase 2 Beach Dune Restoration CSA
with a copy to:

Tracy J. Egoscue, General Counsel
3834 Pine Ave
Long Beach, CA 90807
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 [email protected]

7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another. Neither the City nor its officers or employees will have any control over the conduct of FOUNDATION or any of FOUNDATION’s agents, employees, or subcontractors, except as otherwise provided in this Agreement.

8. Integrated Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement. This Agreement may be modified only by written agreement signed by City and FOUNDATION, and approved as to form by the City Attorney.

9. Insurance. Prior to commencing work, FOUNDATION must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by FOUNDATION or FOUNDATION’s agents, representatives, employees or subconsultants for the duration of this Agreement. FOUNDATION must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.

10. Defense and Indemnification.

10.1 FOUNDATION agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of FOUNDATION, or FOUNDATION’s employees, agents, officers, and subcontractors. FOUNDATION’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of FOUNDATION, its employees, agents or officers, or subcontractors; provided, however, that FOUNDATION’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City.

11. Prohibition Against Transfers.

11.1 FOUNDATION may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.

11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of FOUNDATION or of any general partner or joint venturer or syndicate member of FOUNDATION, if a partnership or joint venture or syndicate exists, which results in changing the control of FOUNDATION, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0

12. Permits and Licenses. FOUNDATION, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.

13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.

14. Default and Termination.

14.1 If FOUNDATION fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of thirty (30) days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to FOUNDATION.

14.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to FOUNDATION.

15. Compliance with Law. FOUNDATION must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.

16. Discrimination. FOUNDATION may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.

17. Nuisance. FOUNDATION may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.

18. Records.

18.1 FOUNDATION must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles. FOUNDATION must clearly identify all records and make them readily accessible to the City. At the City’s request, FOUNDATION must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.

19. Work Product; Reports.

19.1Any work product prepared or caused to be prepared by FOUNDATION or any subcontractor for this Agreement will be the property of City. No work product given to or prepared by FOUNDATION or any subcontractor pursuant to this Agreement may be made available to any individual or organization, with the exception of the grantor funding government agencies, by FOUNDATION without prior written approval by City.

19.2 At the City’s request, FOUNDATION must furnish reports concerning the status of the Services.

19.3 An annual report on the project will be provided by FOUNDATION to the Refugio Oil Spill Trustee Council that summarizes the results of work conducted each year.

20. Standard of Care. FOUNDATION agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of FOUNDATION’s profession currently practicing in the same locality under similar conditions.

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0

21. (Intentionally Left Blank)

22. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.

23. Venue and Jurisdiction. The City and FOUNDATION agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.

24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.

25. Execution in Counterparts. This Agreement may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification. Any signature to this Agreement transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).

26. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.

Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.

ATTEST:
______________________________

DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________

LANE DILG
City Attorney

CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________

RICK COLE
City Manager
FOUNDATION Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0

DOUGLAS SLOAN
City Attorney
1/16/2024
Tom Ford
Santa Monica Bay Restoration Foundation D.B.A.The Bay Foundation CEO
1/17/2024
David White
1/18/2024
City Manager
1/30/2024
Nikima Newsome
Interim City Clerk
Exhibit A
Scope of Services
Refugio Beach Oil Spill
Project Proposal – September 7, 2021
Modified Scope – August 21, 2023
Project Title:

Santa Monica Dune Restoration (SHORE-3)
Project Description:

Goal The project goal is to create nearly five acres of coastal habitat located on Santa Monica Beach, California (Fig. 1). We intend to transform a section of the existing beach into a sustainable coastal strand and foredune habitat, thereby improving coastal resilience to sea level rise. Additionally, the initiative will lead to a significant buildup of sand volume, culminating in the formation of a dune system characterized by increased elevation and enhanced biological complexity.

Partners: The Bay Foundation (lead), City of Santa Monica (land managers), California Department of Parks and Recreation (landowners), Santa Monica Audubon Society (stakeholders) Outcomes:
 Improved ecosystem functions and naturalized coastal processes of sandy beach, coastal strand, and dune habitats in Santa Monica
 Expanded habitat for shorebirds, like the western snowy plovers (Charadrius nivosus nivosus).  Increased coastal resilience to the effects of sea level rise and intensified storm erosion.  Increased biodiversity
 Greater public understanding of sandy coastal habitats and engagement with the site  Public enjoyment and education.

Objectives: 1) Protect approximately five acres of habitat from grooming; 2) provide vital habitat for wildlife and native dune species; 3) increase the resilience of the shoreline through the restoration of sandy beach and foredune habitat; and 4) engage and educate the public about sand dunes; and 5) provide a model for the region to inform scalability.

Project Narrative: The project will create nearly five acres of coastal strand and foredune habitat, which was largely extirpated from the region. This habitat will provide vital refuge for invertebrates, birds, and rare DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 coastal vegetation species, including for the federally threatened Western Snowy Plover. The project will result in a nature-based defense against flooding and coastal erosion, with the dunes serving as a buffer against storm surge and sea level rise. The resulting vegetated dune system will reduce beach erosion, preserve recreational beach activities, and aid in the protection from flooding of coastal infrastructure, such as the bike path, residential structures, and Pacific Coast Highway.

The site is owned by the California Department of Parks and Recreation and managed by City of Santa Monica. Both are proposed partners on this project and are in full support of its implementation. The Bay Foundation has a successful history of implementing similar projects in the Santa Monica Bay region with the expertise to effectively implement the project. A similar TBF project in Santa Monica is 7 years postimplementation and has been notably successful, including increased biodiversity, increased western snowy plover habitat, and increased community engagement. This project will be among the few in the region that support more natural functions and habitats.

Tasks & Timeline:

The four tasks of this project will be conducted over five years (Table 1). All planning and design components (Task 1), such as meetings and coordination with project partners, public engagement in project design, pre-restoration monitoring, finalizing project design, development of a comprehensive Restoration and Monitoring Plan, and permitting will occur in Years 1 and 2.

Project implementation (Task 2) is anticipated to take place in Year 2, following approval of permit applications. Adaptive management, monitoring, and maintenance (Task 3) will begin in Year 2, following project implementation, and will continue throughout Years 3-5. Project management (Task 4) will be ongoing throughout the duration of the project (Years 2-5). Please note, delays may alter the project timeline.

Refugio 5 YR Activities Breakdown by Year Year 1 Year 2 Year 3 Year 4 Year 5 Planning, Design, and Permitting √ √
Implementation √ √
Adaptive Management, Monitoring, Maintenance √ √ √ √
Project Management √ √ √ √ √
Task Task Description
Planning, Design,
and Permitting
During Year 1, TBF and project partners, including City of Santa Monica, will finalize planning and design of the project, including meetings with key project partners; targeted outreach to community stakeholders via a diverse strategy of public meetings, press releases, newsletters, websites, and social media; design development by a design subcontractor for interpretive signage; the finalization of a comprehensive Restoration and Monitoring Plan; and completion of permits, including Coastal Development Permit DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 (CDP), , CEQA exemption, and other jurisdictional permits deemed necessary.

Implementation
Project implementation will occur as specified in the final comprehensive Restoration and Monitoring Plan. It will include delineating the boundaries and public access pathways, restricting mechanized equipment in the area; seeding and planting appropriate native vegetation; and sand fencing.

Implementation will be initiated at the end of Year 1, with the bulk of this task during Year 2.

Adaptive
Management,
Monitoring,
Maintenance
Baseline (pre-restoration) surveys and post-restoration scientific monitoring will be conducted to assess restoration progress and identify the need for maintenance and adaptive management actions. Baseline surveys will be conducted in Year 1, and subsequent years will include post-restoration monitoring. Ongoing evaluation of the project, as-needed adaptive management actions, and annual progress reporting will begin the year after implementation.

Project
Management
Project management will include invoicing, subcontract management, budgeting, and miscellaneous administrative tasks spanning all project Years.

Permitting & Timeline:

Obtained: N/A
Pending: Coastal Commission Coastal Development Permit, State Parks Scientific Collecting Permit, (Note:
no California Department of Fish and Wildlife Scientific Collecting Permit is needed for this project). Permits will be obtained prior to implementation in Fall/Winter of Year 2.

Deliverables: (performance reports-quarterly/annually, Period of Performance) An annual report on the project will be provided to the Trustee Council that summarizes the results of work conducted each year. An MOU will be completed between TBF and City of Santa Monica specifically for this project. The Restoration and Monitoring Plan and final permits will also be submitted and publicly available on TBF’s website.

Information for Recipient:

In addition to the overall project proposal, multi-year project implementers should provide Annual Scope of Work (SOW) that include: (i) changes or deviations from the SOW (ii) a budget showing actual amounts spent the prior year and any carryover funds; and (iii) a budget for the coming year.

Draft SOWs (including draft Annual SOWs) shall be provided to the Trustees for review and comment prior to finalization. Implementers should note that the Trustees may have comments on draft SOWs and request revisions prior to finalization and so should allow sufficient time for this process.

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Project Maps and Photos:

The project location is Santa Monica, CA (locator coordinates: 34.022500, -118.511944; Fig 1). The site consists of an existing snowy plover enclosure (0.60 acres) and an additional 4.2 acres of mechanically groomed beach. The plover enclosure has several small plant hummocks with naturally recruited CA native vegetation (Fig 2, right). Non-native European Sea Rocket (Cakile maritima, Brassicaceae) is also present. The fence is managed by Audubon Society, with no other management.

Figure 1. Planned restoration footprint for the Santa Monica Dune Restoration project, roughly outlining the two shoreline polygons and two polygons adjacent to the bike path. Note the existing snowy plover enclosure, and the open pathway from Parking Lot 9N to the ocean.

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Figure 2. Site photographs with views from the plover enclosure toward the bike path (left) and immediately adjacent to the plover enclosure (right). Note the existence of vegetation on the protected side of the sand fencing, relative to the frequently groomed area (left).

Trustee Council Project Officer:

Bruce Joab, Senior Environmental Scientist, Supervisor, California Department of Fish and Wildlife, 916- 826-0166, [email protected]
Project Contacts:

Alexandra Tower, The Bay Foundation, 310-216-9824, [email protected] Tom Ford, CEO, The Bay Foundation, 310-216-9827, [email protected] Project Proposal prepared by:

Alexandra Tower 10/26/2023
Name Date
Coastal Adaptation Program Director
Title
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Exhibit B
Budget

1. FOUNDATION agrees to bear, at its sole cost and expense, all of the fees and costs for the implementation, maintenance and repair of the project, including, but not limited to, vegetation planting, sand fencing, interpretative signage, maintenance, community outreach and educational outreach.

The budget is divided into categories, with most of the project costs allocated to staff time for the different tasks and the largest portion allocated to Task 3, which covers the longest timeframe and includes adaptive management actions, site maintenance, and scientific monitoring to assess trajectories towards established success criteria. Materials will include native plant seeds and container stock, monitoring supplies, sand fencing and wooden stakes, interpretive signage, etc.

TBF has a federally approved overhead (indirect) rate of 20% and is a 501(c)3 non-profit organization.
*Not to Exceed Amount
Task
No. Task TBF Personnel
Materials /
Travel
Subcontractor
(Design) Subtotal
1 Planning, Design,
and Permitting $39,718 $6,870 $ 20,000 $ 66,588
2 Implementation $28, 138 $51,000 - $ 79,138
3 Adaptive
Management,
Monitoring,
Maintenance
$53,650 $22, 063 - $75,713
4 Project Management $27,548 $ 1,000 - $ 28, 548
Overhead (@ 15%) $22, 358 $12,140 $3,000 $37,498
TOTAL $ 171,411 $ 93,073 $23,000 $287,484*
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Task Year 1 Year 2 Year 3
Planning, Design, and Permitting √
Implementation √ √
Adaptive Management, Monitoring,
Maintenance √ √
Project Management √ √ √
Total Budget by Year $85,000 $116,000 $86,484
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.

Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence.

If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).

If the Contractor maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.

Other Insurance Provisions

1. The insurance policies are to contain, or be endorsed to contain, the following provisions a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37). b. Primary Coverage: For any claims related to this Agreement, the Contractor’s insurance shall be primary coverage as least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it.
c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica. d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Contractor may acquire against the City of Santa Monica by virtue of payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Contractor to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the name insured or the City of Santa Monica.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.

Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause).

All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.

Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Contractor resulting from said breach.

Subcontractors
DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0 Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.

Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does not have employees. The Contractor must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.

DocuSign Envelope ID: 9D5204E4-D751-4BFC-B9CB-78483CF9F0E0

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