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Staff Report

Simi Valley City Council
September 25, 2023

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Staff Report
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September 25, 2023
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Simi Valley City Council
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CITY OF SIMI VALLEY

MEMORANDUM
September 25, 2023
TO: City Council
Board of Directors, Ventura County Waterworks District No. 8 FROM: Human Resources/ Workers’ Compensation
SUBJECT: CONSIDERATION OF A CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND EK HEALTH SERVICES, INC. FOR UTILIZATION REVIEW

SERVICES

STAFF RECOMMENDATION
It is recommended that the City Council/ Board of Directors approve a three- year contract with EK Health Services, a workers’ compensation utilization review service provider, retroactively effective September 1, 2023, for a not to exceed amount of $135,000, with the option for the City/ District Manager to approve two (2) additional one (1) year extensions.

BACKGROUND AND OVERVIEW
California Labor Code 4610 requires that employers establish a workers’ compensation medical expense utilization review process with written policies, procedures, and health consultant assessments. Utilization Review aims to improve medical care for injured workers while containing costs to the City by establishing and implementing criteria to certify, modify, delay, or deny medical treatment services in a timely manner.

The City/ District originally contracted with EK Health Services in 2018, and subsequently instituted additional options for services with this provider through August 31, 2023. In view of the expiration deadline, staff issued a Request for Proposals (RFP) and evaluated the proposals received. As a result of a Request for Proposals, staff recommends the City Council/ Board of Directors award a contract to EK Health Services.

FINDINGS AND ALTERNATIVES
To ensure the City/ District is receiving the best combination of rates and services, staff issued a Request for Proposal (RFP) for Utilization Review services in August of 2023.

At the close of the RFP period, the City received three (3) submissions; one from EK Health Services; one from Professional Dynamics; and one from Status Medical Management.

AGENDA ITEM NO.

Consent (6)
2 The submissions were reviewed and evaluated based on services offered, institutional knowledge, experience with the City, and cost. The selection criteria included the proposers’ experience with the California Labor Code 4610; staff qualifications; reporting capabilities; cost savings; responsiveness to the RFP; completeness of the proposal and existing infrastructure for streamlining processes. Staff found that all three proposers are certified by the Utilization Review Accreditation Commission (URAC), and offered a full range of Utilization Review Services.

While there were slight differences among the proposers, staff recommends we award the contract to our existing provider , EK Health Services. Rates have minimally increased, we will continue to benefit from their institutional knowledge and expertise, and we have an infrastructure already in place which will avoid business disruption with ongoing and future reviews.

The City/District currently assigns between six to eight reviews per month to our existing UR provider, with an average annual expense of approximately $26,400.00. The dollar amount of the contract is not-to-exceed $80,000.00 over a three-year term.

Additionally, the contract allows for the option to extend the contract for two (2) additional one-year periods, with the total sum of these extensions not to exceed an additional $27,500.00 per annum, for a total not- to-exceed amount of $55,000.00 for both extensions, upon the mutual consent of the City/District Manager and the provider.

Payment will be based on the rates set forth in Exhibit “B” of the contract. The total amount of the contract is not to exceed $135,000 over the possible term of this contract.

The following alternatives are available to the City Council/ Board of Directors:

1. Award the attached three year contract with the potential for two ( 2) additional one-year extensions to EK Health Services for Workers’ Compensation utilization Review services;

2. Do not award the contract, and direct staff to conduct another competitive selection process for Workers’ Compensation utilization review services.

Staff recommends alternative #1.

SUGGESTED CITY COUNCIL MOTION
I move that the City Council/ Board of Directors approve the award of a three-year contract with EK Health Services Inc., with a not-to exceed amount of $80,000.00, as well as the option for the City/ District Manager to approve two (2) additional one (1) year extensions not to exceed $27,500.00 per annum, for a total not-to exceed amount of $135,000. 3 SUMMARY
The City’s current contract for Workers’ Compensation utilization review services expired on August 31, 2023. As such, the City solicited proposals for Workers’ Compensation Utilization Review services. Of the proposals received, EK Health Services (EK Health) was selected as offering the best level of services. Therefore, it is recommended that City Council award the attached three -year contract, with the potential for two one -year extensions to EK Health Services retroactively effective September 1, 2023. __________________________________
Trevor Earle
Risk Manager
Prepared by: Jeff Thompson, Workers’ Compensation Supervisor INDEX Page
Contract ............................................................................................ 4

4 CONTRACT BETWEEN THE CITY OF SIMI VALLEY,
VENTURA COUNTY WATERWORKS DISTRICT NO. 8, AND
EK HEALTH SERVICES, INC. FOR WORKERS’

COMPENSATION UTILIZATION REVIEW SERVICES , RFP
NO. CM 2023-01

THIS CONTRACT is made and entered into in the City of Simi Valley on this 25th st day of September 2023, retroactively effective to September 1, 2023 (“Effective Date”), by and between the CITY OF SIMI VALLEY, a municipal corporation, and Ventura County W aterworks District No. 8, each hereinafter referred to as City Entities and collectively, CITY, and EK Health Services, Inc., a Utilization Review Organization, hereinafter referred to as CONSULTANT.

RECITALS

WHEREAS, on August 7, 2023, CITY invited proposals for Workers’ Compensation Utilization Review Services, per Specification No. CM 2023-01; and

WHEREAS, pursuant to the proposal invitation, CONSULTANT submitted a proposal accepted by CITY for the Worker’s Compensation Utilization Review Services.

NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

AGREEMENT

1. Recitals. The foregoing recitals are true and correct and are a part of this CONTRACT.

2. Term. The term of this CONTRACT shall be from the Effective Date, through the 31 st day of August 2026. This CONTRACT may be extended for two additional one-year terms upon mutual written consent of the City /District Manager and CONSULTANT.

3. Description of Services. This CONTRACT is for the providing of Worker’s Compensation Utilization Review Services. CONSULTANT agrees to perform the services specifically set forth in the “Scope of Work” attached hereto and incorporated herein as Exhibit “A”.

4. Compensation and Payment.

A. The total compensation payable to the CONSULTANT by
CITY for services under this CONTRACT for the three year period, shall not exceed the sum of $80,000.00 and shall be earned as the work progresses. Should the options to extend the contract two additional one year periods be exercised, the total sum shall not exceed an additional $27,500.00 annually, for a total not -to-exceed amount of $135,000.00 for both extensions. Payment will be based on the rates set forth in Exhibit “B” attached hereto and incorporated herein.

5 B. After CONSULTANT has performed the services as specified in this CONTRACT, CITY shall be obligated to pay CONSULTANT based upon the actual CITY-authorized services received by CITY at the rates established as a part of this CONTRACT. In no event shall the total amount paid or this CONTRACT exceed the not- to-exceed amount unless otherwise agreed to by the parties in writing.

C. Payments to the CONSULTANT shall be made within 30 days after receipt of an original invoice from the CONSULTANT and acceptance of the services by CITY.

D. CONSULTANT shall provide CITY with written verification of the actual compensation earned, which written verification will be in a form satisfactory to CITY.

5. CONSULTANT Representations and Obligations.

A. CONSULTANT shall perform as required by this CONTRACT.

CONSULTANT also warrants on behalf of itself and all subco ntractors 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. CONSULTANT shall obey all Federal, State, local, and special district laws, ordinances, and regulations.

C. CONSULTANT agrees to abide by CITY’s Business Tax
Ordinance, of which proof of payment must be obtained prior to performance of this CONTRACT.

D. CONSULTANT acknowledges CITY may contract with other parties for the performance of services or supplemental services as they related to the work during the term of this CONTRACT.

E. The CONSULTANT shall keep a tally of the cost for the work ordered by CITY. The CONSULTANT shall not accept work orders from the CITY if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing.

6. Audit.

A. At any time during normal business hours and as often as the CITY may deem necessary, CONSULTANT shall make available to CITY for inspection its records pertaining to this CONTRACT. CONSULTANT shall permit CITY to audit, examine and/or reproduce such reco rds. CONSULTANT 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. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONSULTANT in preparing its statements to CITY as a condition precedent to any payment to CONSULTANT.

6 7. Hold Harmless and Indemnification. CONSULTANT 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 c onnection with, or relating in any manner to any act or omission of CONSULTANT, its agents, employees, and subcontractors, and employees thereof, pursuant to the performance or non -performance of this CONTRACT. The CONSULTANT 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 CONSULTANT. The CONSULTANT 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 this CONTRACT.

8. Amendments. 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 City/District Manager and CONSULTANT.

9. Anti-Discrimination. In the performance of the terms of this CONTRACT, CONSULTANT 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.

10. Termination. If, during the term of this CONTRACT, CITY determines that CONSULTANT is not faithfully abiding by any term or condition contained herein, CITY may notify CONSULTANT in writing of such defect or failure to perform. The notice must give to the CON SULTANT a ten (10) day period of time thereafter in which to perform the work or cure the deficiency. If CONSULTANT 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 CONSULTANT . In addition, CITY, if it terminates this CONTRACT for cause, may withhold as an offset from payments due CONSULTANT damages occasioned by such breach, including liquidated damages, if so provided herein. The CITY shall be liable to the CONSULTANT only for those fees accrued by the CONSULTANT to the date CONSULTANT receives the notice of termination. In such event, CONSULTANT shall be entitled to the reasonable value of its services. In no event, however, shall CONSULTANT be entitled to receive in excess of the CONTRACT amount.

11. Delivery of Reports in Cases of Termination. If this CONTRACT is terminated pursuant to any of the provisions contained hereinabove, and if requested to do so in writing by the CITY, the CONSULTANT shall, within fourteen (14) calendar days after receipt of such written request, deliver and turn over to the CITY all of its preparation and work on the project which were done to the date of the receipt of the notice of termination. The terms "preparation" and "work" as used in this paragraph, shall refer to and include all data and materials of whatever type that have been gathered by the CONSULTANT, and contemplated to be used or actually used, in the provision of the services as specified in this CONTRACT.

7 12. Complete CONTRACT . This CONTRACT and its accompanying exhibits 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 of any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the parties hereto.

13. Independent Contractor. It is expressly understood between the parties to this CONTRACT that no employee/employer r elationship is intended.

CONSULTANT is not an agent or employee of the CITY and it is not entitled to participate in any pension plan, insurance or other benefits CITY provides for its employees.

CONSULTANT is an independent contractor in performing the Services required under this CONTRACT and will have control of all work and the manner in which it is performed.

Any provision of this CONTRACT that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work required herein or to exercise a measure of control over the work means that the CONSULTANT will follow the direction of the CITY as to the results of the work only.

14. Time of Performance. Time is of the essence in this CONTRACT.

15. Insurance. CONSULTANT shall, at CONSULTANT’S sole cost and expense, provide insurance as contained in Exhibit “C”, incorporated herein.

CONSULTANT shall not commence work on the Services to be performed, until it submits proof of all insurance coverage as required.

16. Ownership of Reports and Data . The originals of all studies, reports, exhibits, documents, data and other work or materials prepared for, or used to comply with any term of this CONTRACT, plus any copies of same required by this CONTRACT to be furnished to the CITY by any of the other party(ies) with whom the CONSULTANT may have contract(s) pertaining to this project, shall be deemed to be public records open to inspection by the public and, as such, to be and remain the property of the CITY.

17. Conflict of Interes t. Neither CONSULTANT nor any employees, agents, or subcontractors of CONSULTANT who will be assigned to this project, to the best of CONSULTANT'S knowledge, own any property or interest in properties, business relationships, or sources of income which ma y 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 ca nnot mutually agree upon a means to eliminate the conflict, CITY may terminate the CONTRACT immediately for non -performance pursuant to Section 10 herein.

In accordance with California Government Code Section 87306, CONSULTANT shall provide, if requested by CITY, a Conflict of Interest Statement, Form 700 no later than 30 days after execution of this CONTRACT, and annually thereafter prior to April 1st of each year for the duration of the CONTRACT. Failure to file any of the required statements will result in withholding payment for services rendered.

8 18. Successors 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 t he 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. Authority to Execute CONTRACT. Both CITY and CONSULTANT 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.

20. Jurisdiction and Venue . Jurisdiction is in the State of California and venue lies in Ventu ra County. In the event of any dispute, each party shall bear its own fees and costs (including attorneys’ fees).

21. Non-Appropriation of Funds . Payments due and payable to CONSULTANT 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 t o the conclusion of the current fiscal year.

22. Taxpayer Identification Number . CONSULTANT shall provide DISTRICT with a complete Request for Taxpayer Identification Number and Certification, form W-9 (latest revision), as issued by the Internal Revenue Service.

23. Permits and Licenses . CONSULTANT, at its sole cost and expense, shall obtain and maintain during the term of this CONTRACT, all appropriate permits, licenses, and certificates that may be required in connection with the performance of this CONTRACT.

24. Waivers. The waiver by one Party of any term or condition of thi s CONTRACT, or any breach thereof, shall not be construed to be a general waiver by said Party or as a waiver of any other term or breach.

25. Statement of Experience . CONSULTANT warrants that it will perform its Services with at least the due care, diligence and expertise generally accepted in its industry. CONSULTANT also understands and agrees that it is being employed to perform the Services provided for by this CONTRACT because of CONSULTANT’S professed expertise and experience in performing such S ervices. In addition, CONSULTANT understands and agrees that while CITY or CITY’S officers, employees, agents or volunteers may elect to do so, they have no duty to review, inspect, monitor, or supervise the work performed by CONSULTANT pursuant to this C ONTRACT. As a consequence, CONSULTANT waives any right of contribution against CITY or any of CITY’S officers, employees, agents, or volunteers arising out of such failure to inspect, review, monitor, or supervise the work performed by CONSULTANT pursuant to this CONTRACT.

26. 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 thi s CONTRACT is as follows:

9 CITY Office of the City Manager
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Attn: Workers’ Compensation Supervisor

CONTRACTOR EK Health Services Inc.
992 S. DeAnza Blvd., Suite 101
San Jose, CA 95129
Attn: Steve Kline, General Counsel

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, and Ventura County
Waterworks District No. 8

By:

Lucy Blanco, Deputy Director/City Clerk/ Fred D. Thomas, Mayor of the City of District Secretary Simi Valley and Chair of Ventura County Waterworks District No. 8

Approved as to Form: (Contractor)

By: By:

David Caceres, City Attorney/District
Counsel

Approved as to Content: Title:

By:

Brian Gabler, City Manager/District Manager

Title:

Johanna Medrano
Deputy Administrative Services Director (Support Services)

10 EXHIBIT “A”

SCOPE OF WORK

CONTRACT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SIMI VALLEY AND EK HEALTH SERVICES,
INC. FOR WORKERS’ COMPENSATION UTILIZATION

REVIEW SERVICES

Following is a description of the required serv ices for the Workers’ Compensation Utilization Review Program:

UTILIZATION REVIEW

The contractor selected by the City shall provide Utilization Review Services (UR) for the City, per the requirements of Labor Code 4610 and California Code of Regulations 9792.20, et al as follows:

 Review treatment for medical necessity, appropriateness, and duration of care in the following treatment categories, applying American College of Occupational and Environmental Medicine (ACOEM) guidelines and other approved evidence-based guidelines:

- Chiropractic
- Physical Therapy and other physical treatment modalities - MRI and other diagnostic tests
- Injections with or without Fluoroscopy
- Hospitalization
- Outpatient Surgery/Outpatient Procedures
- Inpatient Surgery and Related Procedures
- Medications, including compounds
- Other Services as Warranted

 Process service requests within the applicable time standards and provide medical advice as warranted.
 Provide accepted or denied decisions to the City from the utilization review vendor via electronic mail, regular mail, or fax.

UR contractors shall work effectively and cooperatively with City staff to provide efficient and responsive service with the a bility to provide electronic reports to the City’s cost containment provider to prevent non-authorized payments.

11 EXHIBIT “B”
WORKERS’ COMPENSATION UTILIZATION REVIEW SERVICES PRICING

Contractor shall be compensated for its services as follows:

1ST level utilization reviews (prospective, concurre nt and retrospective) refer to those completed by highly qualified Health Care Professionals. The first level review by a HCP is $95.00.

2nd level utilization reviews (prospective, concurrent and retrospective refer to those completed by a physician (reg ardless of specialty). The second level review is $190.00.

The total amount for a physician review, which includes the first level review, is $285.00 (Two hundred eighty-five dollars).

Appeals are priced at the original rate. The consultant also offers the following UR solutions at the rates shown below:

Triage: $15 per letter (Client resource for approvals) $30 per letter (EK Health resource for approvals)

Pharmacy Review: $285 per hour

IMR Packaging: $150 per package
12 EXHIBIT “C”

INSURANCE REQUIREMENTS

CONTRACT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF
SIMI VALLEY AND EK HEALTH SERVICES INC. FOR WORKERS’

COMPENSATION UTILIZATION REVIEW SERVICES

Insurance - The Consultant shall meet the following provisions (Sections 1 through 7) relating to insurance coverages.

1. General Conditions - Without limiting the Consultant indemnification of City, Consultant shall provide and maintain at its own expense the insurance listed under Section 7 (Evidence of Coverages) covering its operations, subject to the following conditions:

a) The City, its Boards, Officers, Agents, and Employees shall be included as additional insureds in all liability insurance policies and endorsements thereto except for Workers' Compensatio n and Professional Errors and Omissions.

b) Such insurance shall be primary with respect to any insurance maintained by City and shall not call on City's insurance for contributions.

c) Each required insurance policy shall state that coverage shall not be canceled, except with thirty (30) days written notice to the City.

d) CONSULTANT 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 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.

2. Workers' Compensation - The Consultant shall maintain, during the life of the Contract, workers' compensation insurance or a valid certificate of consent to self- insure for all its employees engaged on or at the site of the project. In case any of the work is sublet, the Consultant shall require all subcontractors to similarly provide workers' compensation insurance for all the latter's employees unless such employees are covered by protection af forded by workers' compensation insurance carried by the Consultant.

By submitting a proposal pursuant to these specifications, Consultant hereby certifies that it is aware of the provisions of Section 3700 et seq., of the Labor Code which require every e mployer to be insured against liability for Workers' Compensation.

3. Aggregate Limits/Blanket Coverage - If any of the required insurance coverages contain aggregate limits or apply to other operations or tenancy of CONSULTANT outside these specifications, CONSULTANT shall maintain such limits and/or take immediate steps in restoring such aggregate limits or shall provide other insurance protection for such aggregate limits.

13 4. Modification of Coverage - The City reserves the righ t to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

5. Failure to Procure or Maintain Insurance - Consultant’s failure to procure or maintain required insurance program shall constitute a material breach of Contract under which the City may immediately terminate the Contract or, at its discretion, procure or renew such insurance to protect the City's interests and pay any and all premiums in connection therewith, and recover all monies so paid from Consultant, or deduct all monies so paid from payments due Consultant.

6. Underlying Insurance - Consultant shall be responsible for requiring indemnification and insurance from its employees receiving mileage allowance, consultants, agents, and subcontractors, if any, to protect the Consultant 's and the City's interests, and for ensuring that such persons comply with any applicable insurance statutes. Consultant is encouraged to seek profes sional advice in this regard.

7. Evidence of Coverages - Evidence of coverages (as checked below) having as a minimum the limits shown must be submitted and approved prior to commencement of work or any tenancy. Amounts shown are Combined Sing le Limit (CSL). Split limits may be substituted if the total per occurrence equals or exceeds the CSL amount.

Description Limits

Workers’ Compensation: Statutory

Employer’s Liability: $1,000,000 Waiver of Subrogation

General Liability: (must be written on an Occurrence Form) $4,000,000

(X) Premises and Operations
(X) Contractual Liability
(X) Independent Contractors
(X) Products/Completed Operations
(X) Broad Form Property Damage
(X) Personal Injury
(X) Broad Form Liability Endorsement
( ) Explosion Hazard
( ) Collapse/Underground Hazard

Automobile Liability: (must be written on an Occurrence form) $1,000,000

(X) Owned Automobiles
(X) Non-owned/Hired Automobiles
( ) Garagekeeper's Legal Liability

Professional Liability: (Errors and Omissions) $2,000,000

(to be in continuous force from date of contract award until five years after final acceptance of the project)

14 Cyber Liability Insurance $2,000,000

Cyber Liability insurance c overage shall be sufficiently broad to respond to the duties and obligations as is undertaken by CONSULTANT in this agreement and shall include, but not be limited to, claims involvi ng privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security.

The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must b e before the 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 date, CONSULTANT must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

If CONSULTANT maintain s broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

CONSULTANT hereby grants to City a waiver of any right to subrogation which any insurer of CONSULTANT may acquire against the City by virtue of the payment of any loss under such insurance. CONSUL TANT 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.

Self-insured retentions m ust be declared to and approved by the City. The City may require CONSULTANT 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 name

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