A2397.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
A
ugust 14, 2023
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: AWARD OF CONTRACT FOR THE ANNUAL PESTICIDE, HERBICIDE,
AND WEED CONTROL MAINTENANCE SERVICES, SPECIFICATION
NO. SV 23-17
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. Aw
ard the attached contract (page 4) to Pest Options Inc. in the not-to-exceed amount of $ 187,417.36 for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services, Specification No. SV 23-17; and
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount and grant up to two additional two-year terms.
BACKGROUND AND OVERVIEW
O
n June 6, 2023, the Department of Public Works solicited bids for the annual pesticide, herbicide, and weed control services. The proposed contract is valid through June 30, 2025, with the option for two additional two-year terms.
T
his maintenance contract is for the application of herbicides to minimize weed growth throughout the City and for insect control in street trees. The contract includes weed control maintenance for approximately 9.5 acres along City roadsides and street medians,
3.5 acres in flood control facility areas, and 9.2 acres at the Sanitation Treatment Plant.
It should be noted that the City does not use Round- Up, a product potentially harmful to the environment, animals, and humans. Additionally, approximately 1,400 street trees annually are treated for pest control throughout the City.
FINDINGS AND ALTERNATIVES
On
June 6, 2023, a Notice Inviting Bids was mailed to three vendors, published in the Ventura County Star, and posted on the City’s website. On July 6, 2023, two bids were received: bids were received from Pest Options Inc. and Stay Green Inc. , as set forth below:
AGENDA I
TEM NO.
Consent (4)
A2398.SR.JD
Vendor Amount
Pest Options Inc.
Fullerton, CA
$187,417.36
Stay Green Inc.
Santa Clarita, CA
$262,349.89
T
his maintenance contract is primarily for the application of herbicides to minimize weed growth including manual weed abatement, and for insect control on trees. The contract includes herbicide application along City roadsides and street medians, including its application in flood control facility areas, open soil areas at the Sanitation Treatment Plant, as well as street tree pest control and weed abatement in roadside cracks and street water wells.
S
taff reviewed the bids and found that Pest Options Inc. submitted the low bid and meets City specifications. Pest Options Inc. was awarded this same contract on February 6, 2017 and has performed in a satisfactory manner. Therefore, staff determined that Pest Options is the lowest responsive and responsible bidder.
C
ost for the pesticide contract is displayed by fiscal year in the table below for the Pest Options Inc.
FY 2023-24
(12 months)
FY 2024-25
(12 months)
Total for Term
(24 months)
$93,708.68 $93,708.68 $187,417.36
T
he following alternatives are available to the City Council:
1. Award the attached two -year contract to Pest Options Inc. in the not -to-exceed amount of $187,417.36 for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services, Specification No. SV 23-17; and
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount and grant up to two additional two-year terms.
3 . Do not award the contract at this time and provide other direction to staff.
S
taff recommends Alternative No. 1 and 2.
2 A2398.SR.JD
SUGGESTED CITY COUNCIL MOTION
I
move to award the contract to Pest Options Inc. in the not -to-exceed amount of $187,417.36 for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services, Specification No. SV 23- 17 and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount and grant up to two additional two-year terms.
SUMMARY
On
June 6, 2023, the Public Works Department solicited bids for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services, Specification No. SV 23- 17. On July 6, 2023, the City received two bids from Pest Options Inc. and Stay Green Inc. Pest Options Inc. was determined to be the lowest responsive and res ponsible bidder. Staff recommends awarding a Pest Options, Inc. in the not -to-exceed amount of $187,417.36 for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services, Specification No. SV 23-17.
___
_________________________________
Ronald K. Fuchiwaki
Public Works Director
P
repared by: Dylan Gunning, Senior Management Analyst
INDEX Page
C
ontract ............................................................................................ 4 3 A2398.CON.JD
Specification No. SV 23-17
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
PEST OPTIONS, INC. FOR ANNUAL PESTICIDE,
HERBICIDE, AND WEED CONTROL MAINTENANCE
SERVICES, SPECIFICATION NO. SV 23-17
T
HIS CONTRACT is made and entered into in the C ity of Simi Valley on this 14th day of August 2023, (“Effective Date”) by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and PEST OPTIONS INC., a California corporation, hereinafter referred to as CONTRACTOR, each a “ Party” and collectively, “Parties”.
RECITALS
W
HEREAS, on June 6, 2023, CITY invited bids for the Annual Pesticide, Herbicide, and Weed Control Maintenance Services per Specification No. SV 23-17; and W
HEREAS, pursuant to said invitation, CONTRACTOR submitted a Proposal which was accepted by CITY for said project.
AGREEMENT
N
OW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
1. R
ecitals. The foregoing recitals are true and correct and are a part of this CONTRACT.
2. Te
rm. The term of this CONTRACT shall be from August 14, 2023 to June 30, 2025. This CONTRACT may be extended for two (2) additional two (2) year terms, upon mutual written consent of the CITY and CONSULTANT.
P
ricing shall remain firm during the initial term of the contract. In the event a price increase is negotiated at the time of an extension period, the increase rate shall not exceed the Consumer Price Index (CPI) rate for Los Angeles -Riverside-Orange County area for the previous 12-month period (March to March). It is understood that the CONTRACTOR’S work under the Work Orders issued may not be completed within the term of this CONTRACT; however, all terms and conditions of the CONTRACT including all rights and obligations, shall survive until the work is completed, except the CITY’S right to issue, and the CONSULTANT’S right to accept, additional Purchase Orders.
3. Incorporation By Reference
. Public Contract Code Section 22300,
Specification No. SV 23-17, consisting of 204 pages and all documents incorporated by reference therein, and the CONTRACTOR'S Bid consisting of the CONTRACTOR’S Proposal Statement, Proposed Schedule of Work and Prices, and Bidder’s Statement of Subcontractors and Material Fabricators, are hereby incorporated by reference and made a part of this CONTRACT.
4 A2398.CON.JD
Specification No. SV 23-17
4. P
recedence of CONTRACT Documents. If there is a conflict between or among CONTRACT documents, the document highest in precedence shall control. The precedence shall be:
F
irst: This Document consisting of eight pages excluding paragraph 3 Second: Permits from other agencies as may be required by law Third: Special Provisions
Fourth: Bid Terms and Conditions
Fifth: Detailed Plans
Sixth: Standard Plans
Seventh: Standard Specifications Modifications
Eighth: "Standard Specifications for Public Works Construction" (SSPWC) Ninth: Reference Specifications
Tenth: CONTRACTOR'S Proposal
C
hange orders, supplemental agreements, and approved revisions to plans and specifications become a part of item First.
5. O
bligations of the CITY.
A. T
he CITY shall be obligated to pay CONTRACTOR based
upon the actual City -authorized quantities in place and the unit and/or lump sum prices bid by CONTRACTOR, including but not limited to all labor, material and equipment, rather than the CONTRACT bid price.
B. C
ITY shall make regular progress payments to the
CONTRACTOR within 30 days after mutual concurrence with the unit quantities and/or lump sum items of work performed, subject to applicable retention requirements. In no event shall the total amount paid exceed the CONTRACT bid price of $187,417.36 unless otherwise agreed to by the Parties in writing.
C. U
pon receipt of an invoice for work performed to CITY'S
satisfaction, CITY shall make progress payments within thirty (30) days of receipt of invoice. If the work is not performed satisfactorily or the invoice is defective, CITY shall notify CONTRACTOR, in writing, of the reasons within seven (7) days of receipt of invoice.
The intent of this Section is to comply with Public Contract Code Section 20104.50. 5 A2398.CON.JD
Specification No. SV 23-17
6. Obligations of the CONTRACTOR.
A. CO
NTRACTOR shall perform as required by this CONTRACT. CONTRACTOR agrees to perform the services more specifically set forth in the “Scope of Work” attached hereto and incorporated herein as Exhibit “A” and as further described in the incorporated documents. Further, CONTRACTOR shall hold a Class C- 61 or C-27 State of California license throughout the term of the CONTRACT as well as a State of California Department of Pesticide Regulation Pest Control Adviser License and Operator License and/or Qualified Applicator Certificate, with categories: A (residential, industrial, and institutional), B (landscape maintenance), C (right -of-way), and F (aquatic). All Applicators used during the term of the CONTRACT must be licensed; no “in- training” staff shall be permitted to perform Services under this CONTRACT. .
CONTRACTOR also warrants on behalf of itself and all
subcontractors engaged for the performance of this CONTRACT that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.
B. C
ONTRACTOR shall obey all Federal, State, local, and
special district laws, ordinances, and regulations.
C. CO
NTRACTOR shall abide by the CITY’S Business Tax
Ordinance, of which proof of payment must be obtained prior to performance of this CONTRACT. CONTRACTOR shall maintain a valid Business Tax Certificate for the term of the CONTRACT.
D. P
revailing wage: In addition to any applicable federal
requirements, the CONTRACTOR shall comply with all applicable California laws related to prevailing wage, including but not limited to California Labor Code 1720 et seq. and all other California prevailing wage laws and regulations, and all requirements, regulations or decisions of the California Department of Industrial Relations related thereto.
CONTRACTOR further stipulates to follow all requirements and pay any penalties due, if any, under Section 1813 of the California Labor Code. The CONTRACTOR shall post the prevailing rate per diem wages at each job site. Further CONTRACTOR shall indemnify, defend, and hold CITY harmless from any claim that prevailing wages should have been paid pursuant to this CONTRACT, including federal prevailing wage requirements under the Davis-Bacon Act, if applicable and shall be liable for the payment of same and any penalties thereon. CONTRACTOR is responsible for paying all legally required prevailing wages, and in the case of a difference between state and Federal law, the highest legally required rate.
C ONTRACTOR and all subcontractors must be registered
and remain registered with DIR (Department of Industrial Relations) through the term of the CONTRACT in accordance with the California Labor Code (“Labor Code”), in particular Labor Code Section 1771.1, and any successor or replacement provision 6 A2398.CON.JD
Specification No. SV 23-17
thereto, unless a small project exemption applies ($25,000 for public works or $15,000 for maintenance). CONTRACTOR further agrees that it will follow all requirements and obligations set forth in Labor Code Section 1776.
7. A
udit.
A. A
t any time during normal business hours and as often as the CITY may deem necessary, CONTRACTOR shall make available to CITY for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit CITY to audit, examine and/or reproduce such records. CONTRACTOR will retain such financial records, time sheets, work progress reports, invoices, bills and project records for at least two (2) years after termination or final payment under this CONTRACT. This paragraph shall survive for two (2) years after termination of this CONTRACT.
B. C
ITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR.
8. H
old Harmless and Indemnification . CONTRACTOR shall
defend, indemnify, and hold harmless CITY, its agents, officials, officers, representatives, and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any manner to any act or omission of CONTRACTOR, its agents, employees, and subcontractors , and employees thereof, pursuant to the performance or non- performance of this CONTRACT. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives, and employees as to any such claims, lawsuits, liabilities, expenses, or damages arising out of this CONTRACT. The CITY shall be included as an Additional Insured in the automobile/liability insurance policies and endorsements of the CONTRACTOR. The CONTRACTOR must select an attorney acceptable to the CITY who will defend such proceeding and the CITY will control any litigation thereof. Such approval by the CITY will not be unreasonably withheld. This paragraph shall survive the termination of the CONTRACT.
9. A
mendments. Any amendment, modification, or variation from the terms of this CONTRACT shall be in writing and shall be effective only upon mutual written approval by the Director of Public Works and CONTRACTOR.
10. An
ti-Discrimination. In the performance of the terms of this CONTRACT, CONTRACTOR shall not engage in, nor permit subcontractors to engage in, discrimination in employment of persons because of the age, race, color, religious creed, sex, sexual orientation, national origin, ancestry, physical disability, mental disability, medical condition, or marital status of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. 7 A2398.CON.JD
Specification No. SV 23-17
11. Termination. If, during the term of this CONTRACT, CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, CITY may notify CONTRACTOR in writing of such defect or failure to perform. The notice must give to the CONTRACTOR a ten (10) day period of time thereafter in which to perform said work or cure the deficiency. If CONTRACTOR has not performed the work or cured said deficiency within the ten (10) days specified in the notice, such failure shall constitute a breach of this CONTRACT, and CITY may terminate this CONTRACT immediately by written notice to CONTRACTOR to said effect. Thereafter, neither Party shall have any further duties, obligations, responsibilities, or rights under this CONTRACT except, however, any and all obligations of CONTRACTOR'S surety shall remain in full force and effect and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In said event, CONTRACTOR shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received CITY'S Notice of Termination, minus any damages, including liquidated damages if so provided herein, occasioned by such breach. CITY reserves the right to delay any such payme nt until completion or confirmed abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall CONTRACTOR be entitled to receive in excess of the compensation quoted in its bid.
12. I
nsurance. CONTRACTOR shall, at CONTRACTOR’s sole cost
and expense and prior to commencing performance hereunder, submit proof of all insurance coverage as required and contained in Exhibit “B” incorporated herein and made a part of this CONTRACT.
13. Co
mplete CONTRACT . This CONTRACT shall constitute the
complete CONTRACT between the Parties hereto. No verbal agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be o f any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the Parties hereto.
14. I
ndependent Contractor. It is expressly understood between the Parties to this CONTRACT that no employee/employer relationship is intended; CONTRACTOR is an independent contractor.
15. Ti
me of Performance. Time is of the essence in this CONTRACT. 8 A2398.CON.JD
Specification No. SV 23-17
16. Liquidated Damages. Should the CONTRACTOR fail to complete the project, or any part thereof, in the time agreed upon in the CONTRACT or within such extra time as may have been allowed for delays or extensions granted as provided in the CONTRACT, the CONTRACTOR shall reimburse the CITY for the additional expense and damage for each calendar day that the CONTRACT remains uncompleted after the CONTRACT completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the CONTRACT is the per diem rate $ 250 per calendar day. Such amounts are hereby agreed upon as liquidated damages for the loss to the CITY resulting from the failure of the CONTRACTOR to complete the project within the allotted time and to the value of the operation of the works dependent thereon.
I
t is expressly understood and agreed that this amount is a reasonable amount and is established in lieu of damages which are incapable of calculation at the inception hereof; and this amount is not to be considered in the nature of a penalty. The CITY shall have the right to deduct such damages from any amount due, or that may become due to the CONTRACTOR, or the amount of such damages shall be due and collectible from the CONTRACTOR or the CONTRACTOR'S Surety.
P
rogress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages.
17. C
onflict of Interest . Neither CONTRACTOR nor any employees, agents, or subcontractors of CONTRACTOR who will be assigned to this project, to the best of CONTRACTOR'S knowledge, own any property or interest in properties, business relationships, or sources of income which may be affected by the performance of this CONTRACT. Should one Party hereto learn of any such interest, income source, or business relationship, such fact shall immediately be brought to the attention of the other Party hereto. If the Parties thereupon cannot mutually agree upon a means to eliminate the conflict, CITY may terminate the CONTRACT immediately for non- performance pursuant to Section 11 herein.
18. S
uccessors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto; provided, however, that no Party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without the prior written consent of the other Party, and any such assignment without said consent shall be void.
19. A
uthority to Execute Contract. Both CITY and CONTRACTOR do covenant that each individual executing this CONTRACT on behalf of each Party is a person duly authorized and empowered to execute contracts for such Party. 9 A2398.CON.JD
Specification No. SV 23-17
20. Jurisdiction and Venue . Jurisdiction is in an appropriate court in the State of California and venue lies in Ventura County, and the Parties do not consent to arbitration. In the event of any dispute, each Party shall bear its own fees and costs (including attorneys’ fees). This CONTRACT shall be governed by California law, without regard to conflict of law principles.
21. Non-Appropriation of Funds
. Payments due and payable to
CONTRACTOR for current goods and/or services are within the current budget and within an available, unexhausted and unencumbered appropriation of CITY. In the event CITY has not appropriated sufficient funds for payment of goods and/or services beyond the current fiscal year, this CONTRACT shall cover only those costs incurred up to the conclusion of the current fiscal year.
22. Notices. All written notices required by, or related to this CONTRACT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither Party to this CONTRACT shall refuse to accept such mail; the Parties to this CONTRACT shall promptly inform the other Party of any change of address. All notices required by this CONTRACT are effective on the day of receipt, unless otherwise indicated herein. The mailing address of each Party to this CONTRACT is as follows:
CITY Ronald K. Fuchiwaki, Director
Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Michael Sandoval
Maintenance Superintendent (Landscape)
(805) 583-6437
CONTRACTOR Pest Options Inc.
1212 E. Ash Avenue
Fullerton, CA 92831
Staff Contact: Matthew Kuhn, President
(714) 224-7378
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley, A Municipal
Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
10 A2398.CON.JD
Specification No. SV 23-17
Approved as to Form: PEST OPTIONS INC.
B y:
David L. Caceres, City Attorney
P rint Name:
Approved as to Content: Title:
B y:
Brian Paul Gabler, City Manager
P rint Name:
T itle:
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
11 A2398.CON.JD
Specification No. SV 23-17
EXHIBIT “A”
SCOPE OF WORK
CO
NTRACT BETWEEN THE CITY OF SIMI VALLEY AND
PEST OPTIONS INC. FOR ANNUAL PESTICIDE,
HERBICIDE, AND WEED CONTROL MAINTENANCE
SERVICES, SPECIFICATION NO. SV 23-17
T
he work to be performed under this contract shall consist of all tasks as set forth in the specifications, primarily herbicide applications for weed abatement and control, but including manual weed abatement, street tree pest control, Integrated Pest Management (IPM), and all appurtenant work. There are five parts to the maintenance contract: Part A for roadside and right -of-way herbicide application (approximately 415,700 sq. ft./monthly); Part B for herbicide application within or near flood control facilities (approximately 153,100 sq. ft./monthly); Part C for open soil areas at the Sanitation Treatment Plant (approximately 400,000 sq. ft./quarterly ); Part D for street tree pest control application (approx. 1,350 trees annually); Part E for weed-abatement applications for road cracks (0-18 miles annually) and street-tree water wells (approximately 500 trees annually).
12 A2398.CON.JD
Specification No. SV 23-17
EXHIBIT “B”
INSURANCE REQUIREMENTS
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
PEST OPTIONS INC. FOR ANNUAL PESTICIDE,
HERBICIDE, AND WEED CONTROL MAINTENANCE
SERVICES, SPECIFICATION NO. SV 23-17
Contractor 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 Contractor, its agents, representatives, or employees.
Minimum Scope and Limit 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 & 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 (IS O CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. If the services include application of pesticides, the general liability policy is to contain, or shall be endorsed to contain, the following provisions: Pesticide or Herbicide Applicator Coverage, ISO Form CG 22 64, or insurer’s equivalent. In the event that the automobile liability policy contains an exclusion for Wrong Delivery of Liquid Products, ISO Form CA 23 05, or insurer’s equivalent, the general liability policy shall be endorsed to require coverage.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
If the services include application of pesticides, the automobile policy is to contain, or shall be endorsed to contain, the following provisions: pollution liability – broadened coverage for autos, ISO form CA 99 48, or insurer’s equivalent.
3. Workers’ Compensation insurance 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. Contractor hereby certifies that it is aware of the provisions of Section 3700 et seq., of the Labor Code which require every employer to be insured against liability for Workers' Compensation.
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
- The insurance policies are to contain, or be endorsed to contain, the following provisions:
13 A2398.CON.JD
Specification No. SV 23-17
Additional Insured Status
The City of Simi Valley, its Boards, Officers, Agents, 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 the Contractor 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 Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this project/contract, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City of Simi Valley, its Boards, Officers, Agents, Officials, employees, and volunteers. Any insurance or self -insurance maintained by the City of Simi Valley, its Boards, Officers, Agents, Officials, employees, and volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non- contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall state that coverage shall not be cancel ed, except with notice to the City.
Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against City by virtue of the payment of any loss under such insurance. 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 has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in fav or of the City 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. The City may require the Contractor to provide 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 named insured or City.
Acceptability of Insurers
14 A2398.CON.JD
Specification No. SV 23-17
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non- renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Verification of Coverage
Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’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.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that the City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
15