A23114.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
S
eptember 25, 2023
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: APPROVAL OF CONTRACT AS AMENDED AND RESTATED BETWEEN
THE CITY AND STERNDAHL ENTERPRISES, LLC FOR INSTALLATION
OF TRAFFIC CONTROL STRIPING AND PAVEMENT MARKINGS
THROUGH THE CITY OF LOS ANGELES COOPERATIVE AGREEMENT
#59281
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. A
pprove the attached contract (page 4) to Sterndahl Enterprises, LLC (Sterndahl) as amended and restated in the total not to exceed amount of $600,000 through February 29, 2024, for installation of traffic control striping and pavement markings services through the City of Los Angeles Cooperative Agreement #59281; and
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract with Sterndahl and grant up to two (2) additional six-month terms provided the Cooperative Agreement is in effect when the subsequent approvals are sought.
BACKGROUND AND OVERVIEW
P
ublic Works has contracted with Sterndahl for minor traffic control striping and pavement markings since 2018. In previous years, these maintenance services for the City’s streets were obtained through a Cooperative Agreement and the terms and conditions of the City’s purchase orders, as the amounts did not warra nt an extensive agreement. From 2018 to the present, the Department has paid Sterndahl a total of $109,814.20 for its services. Currently, Sterndahl has an existing Purchase Order in place in the amount not to exceed $80,000 for the performance of Traffic and Control Striping Services for the City. The Department now desires to amend the terms of the Purchase Order and replace them with the terms and conditions of the attached contract. In so doing, the not to exceed amount will be increased by the funds authorized by the City Council on September 11, 2023 in the amount of $520,000 for a total not to exceed amount of $600,000.
AGENDA ITEM NO.
Consent (7)
A23114.SR.JD
FINDINGS AND ALTERNATIVES
Staff has utilized a cooperative purchasing agreement through the City of Los Angeles for the installation of traffic control striping and pavement markings with Sterndahl for the past four years. Sterndahl has held a publically bid contract with the City of Los Angeles since June 3, 2011, for pavement delineation and marking services. Sterndahl has subsequently amended its contract with City of Los Angeles contract multiple times which contract is now valid through February 29, 2024. As with previous years, an extension of Sterndahl’s contract with the City of Los Angeles is expected to occur in 2024. The City of Simi Valley’s Purchasing Ordinance Section 2-9.201(e), authorizes using cooperative purchasing methods, recognizing the efficiency in staff time and very competitive pricing usually available.
On September 11, 2023, City Council authorized funding with an appropriation of $400,000 from the Contingency Fund (Fund 122) with a transfer to the General Fund (Fund 100) for street striping. In addition, the Department's operating budget contains $120,000 for street striping. This funding will provide sufficient funds to re- stripe approximately 60 miles of street and other markings.
Currently, there is an exi sting purchase order in place in the amount of $80,000 for Sterndahl’s street striping services . Staff recommends amending the terms and conditions of the Purchase Order and replacing them with the provisions of the attached contract. In so doing the not to exceed amount of the contract for the street striping and markings will be increased from 80,000 to 600,000. The proposed contract may also be extended, provided the underlying Cooperative Contract between the City of Los Angeles and Sterndahl is extended for the duration of the amendment.
The following alternatives are available to the City Council:
1. Approve the attached contract as amended and restated to Sterndahl for a total not to exceed amount of $600,000 from September 25, 2023 through February 29, 2024, for installation of traffic control striping and pavement markings services through the City of Los Angeles Cooperative Agreement #59281; and
2. Authorize the City Manager or his designee to approve any subsequent contract amendments to incorporate future budgeted funds into the contract and grant up to two (2) additional six-month terms to the extent the Cooperative Agreement is amended and in effect for the duration of the term.
3. Provide staff with other direction.
Staff recommends Alternative No. 1 and 2.
2 A23114.SR.JD
SUGGESTED CITY COUNCIL MOTION
I move to approve the contract to Sterndah as amended and restated, for the total not- to-exceed amount of $600,000 for the installation of traffic control striping and pavement markings services from September 25, 2023 through February 29, 2024 , and further authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract and grant up to two additional six - month terms provided the Cooperative Contract is in effect for the duration of the extension.
SUMMARY
Public Works utilizes Sterndahl for the installation of traffic control striping and pavement markings services using a City of Los Angeles Cooperative Agreement through purchase orders. The City Council authorized a one- time budget allocation of $400,000 for street striping on September 11, 2023. Additionally, the Department's operating budget contains $120,000 for street striping. The City’s purchasing procedures require City Council’s approval for contracts over $175,000; therefore, it is recommended that the City Council amend and extend its agreement for services with Sterndahl in the not-to-exceed amount of $520,000 for the installation of traffic control striping and pavement markings services through February 29, 2024 through the City of Los Angeles Cooperative Agreement #59281.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Justin Link, Principal Engineer
INDEX Page
Contract ............................................................................................ 4 3 A23114.CON.JD
AMENDMENT AND RESTATEMENT OF CONTRACT
BETWEEN THE CITY OF SIMI VALLEY AND STERNDAHL
ENTERPRISES, LLC FOR INSTALLATION OF TRAFFIC
CONTROL STRIPING AND PAVEMENT MARKINGS
THROUGH THE CITY OF LOS ANGELES COOPERATIVE
AGREEMENT CONTRACT #59281
THIS AMENDED AND RESTATED CONTRACT is made and entered into in the City of Simi Valley on this 25
th day of September 2023 (the “Effective Date”), by
and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and STERNDAHL ENTERPRISES, LLC , a limited liability corporation, hereinafter referred to as CONTRACTOR, each a “Party,” and collectively, “Parties”.
RECITALS
WHEREAS, CITY AND CONTRACTOR have an existing Purchase Order in place in the amount not to exceed $80,000 for CONTRACTOR to perform Traffic and Control Striping Services for the City;
WHEREAS, CONTRACTOR is able to provide such services to City pursuant to a valid contract which CONTRACTOR has entered into with another governmental agency (City of Los Angeles; contract No. 59281) under which CONTRACTOR provides Installation Traffic Control Striping and Pavement Markings (the “Cooperative Contract”) to various other entities; and
WHEREAS, the Parties now desire to amend the terms and conditions contained in Purchase Order No. 42300751 and replace them with the terms and conditions of this CONTRACT in their entirety and as set forth herein below;
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
AGREEMENT
1. Term.
A. Initial Term. The term of this CONTRACT shall be from the Effective Date, to February 29, 2024.
B. Extensions. This CONTRACT may be extended for two (2) additional six (6) month terms, upon mutual written consent of the CITY and CONTRACTOR, provided that the Cooperative Contract , attached hereto and incorporated herein as Exhibit “A”, is in effect for the duration of the extension.
2. Description of Supplies, Equipment, Materials, or Services. This CONTRACT is for the performance of I nstallation Of Traffic Control Striping And Pavement Markings on CITY streets . CONTRACTOR agrees to perform the Services identified in the Cooperative Contract.
4 A23114.CON.JD
3. Compensation and Payment.
A. The CITY shall be obligated to pay CONTRACTOR based
upon the unit and/or lump sum prices in Exhibit A.
B. Payments to the CONTRACTOR shall be made within 30
days after receipt of an original invoice from the CONTRACTOR and acceptance of the goods and/or services by CITY.
C. In no event shall the total amount paid for this CONTRACT exceed the amount of $ 600,000, unless otherwise agreed to by the Parties in writing .
4. CONTRACTOR Representations and Obligations.
A. CONTRACTOR shall perform as required by 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. CONTRACTOR shall obey all Federal, State, local, and special district laws, ordinances, and regulations.
C. CONTRACTOR shall indemni fy, 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.
D. CONTRACTOR 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.
E. Prevailing wage: 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.
CONTRACTOR 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 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.
5 A23114.CON.JD
5. Audit.
A. At any time during normal business hours and as often as the CITY may reasonably 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. CITY 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.
6. Hold Harmless and Indemnification; Insurance
.
A. 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, liabilitie s, expenses, or damages arising out of this CONTRACT. 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 this CONTRACT.
B. Insurance
: The CITY shall be included as an Additional Insured in the automobile/ liability insurance policies and in accordance with the requirements set forth in Exhibit “B” attached hereto and incorporated herein.
7. 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 Manager and CONTRACTOR.
8. Anti-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.
9. Termination. If, dur ing 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 the work or cure the deficiency. If CONTRACTOR has not 6 A23114.CON.JD
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 C ONTRACTOR. 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 such event, CONTRACTOR shall be entitled to the reasonable value of its services pursuant to the applicable price or rate schedules in this CONTRACT (but in any event not to exceed the Not -To-Exceed Limit) 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 payment 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 Not -To- Exceed Limit.
10. Complete CONTRACT; Order of Precedence
. This CONTRACT
and its accompanying exhibits shall constitute the complete CONTRACT b etween 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 repr esentation be binding upon the Parties hereto.
11. Time of Performance. Time is of the essence in this CONTRACT.
12. 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 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.
13. Authority 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.
14. 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.
15. 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.
7 A23114.CON.JD
16. Taxpayer Identification Number . CONTRACTOR shall provide CITY with a complete Request for Taxpayer Identification Number and Certification, form W-9 (latest revision), as issued by the Internal Revenue Service.
17. Permits a nd Licenses . CONTRACTOR, 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.
18. Waivers. The waiver by one Party of any term or condition of this 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.
19. 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 s hall 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
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Justin Link
Principal Engineer (Traffic)
(805) 583-6884
CONTRACTOR Sterndahl Enterprises, LLC
11861 Brandford Street
Sun Valley, CA 91352
Staff Contact: Dennis S. Sterndahl, President
(818) 612-4595
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed as of the Effective Date.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
8 A23114.CON.JD
Approved as to Form: STERNDAHL ENTERPRISES, LLC
By:
David L. Caceres, City Attorney
Print Name:
Approved as to Content: Title:
By:
Brian Paul Gabler, City Manager
Print Name:
Title:
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
9 A23114.CON.JD
EXHIBIT “A”
COOPERATIVE CONTRACT
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
STERNDAHL ENTERPRISES, LLC FOR INSTALLATION OF
TRAFFIC CONTROL STRIPING AND PAVEMENT
MARKINGS THROUGH THE CITY OF LOS ANGELES
COOPERATIVE PURCHASING CONTRACT #59281
10 11
12 13
14 15
16 17
18 19
20 21
22 City of Los Angeles, California
Contract
City of Los Angeles Purchasing Agent
111 E 1 ST STREET
ROOM 110
LOS ANGELES CA 90012
Contract 10
59281
Contract Dates
0610112011 to
Page
13 Rate Date
0513112015 0610312011
Description: Contract Maximum
Vendor 10: 0000002247
STERN DAHL ENTERPRISES INC
11861 BRANFORD ST
SUN VALLEY CA 913521032
Pavement Markina/Strioina 4000000.00
I
Item Minimum Order Item Contract Maximum
LL",i,!!n~e:,:#:oI~te",m2:IO'7:--;-;==;;;-,I",t."m"-,o"e",s,,c,, ____________ ...9'!y' Amt $ 3,500,001 to 4,000,000 0%
qjy Amt
$ 4,000,001 to 4,500,000 0%
$ 4,500,001 and up 0%
During the term of the contract, including any and all extensions thereto, the above volume percentage adjustment shall be made to the base discount/mark up allowed above as each threshold is attained. Each threshold level and volume adjustment will be cumulative after the first threshold is attained. The appropriate adjustment shall become effective once a given threshold is met. The City shall notify the supplier in writing of the applicable adjustment, revised prices, and the effective date of such change.
RECYCLED CONTENT PRODUCTS:
As an essential part of the City of Los Angeles' comprehensive program for solid waste management, it is in the public interest to purchase recycled products with the highest recycled material content feasible in the City's procurement of goods and equipment. (City of Los Angeles Administrative Code Division 10, Chapter 1, Article 6, Section 10.32) City employees are required to purchase recycled content products from this contract whenever feasible, consistent with the City's Recycled Products Purchasing Program.
Contractor is required to identify recycled products that may be suitable for inclusion under this contract to the City of Los Angeles, if such products become available during the contract term.
OTHER GOVERNMENT AGENCY PURCHASES:
Other government agencies may make purchases using the prices, terms and conditions of this contract.
INSURANCE:
The supplier's General Liability and Worker's Compensation Insurance Certificates are on file in the Purchasing Agent's office.
'CONTRACTOR'S LICENSE:
Contractor's State License No: 421823
Class: A, C31, C32
Expiration Date: April 30, 2012
SUBCONTRACTORS:
All subcontractors shall be approved by the City Purchasing Agent prior to working on City projects. A subcontractor is defined as a person, partnership, corporation or other entity, which enters into a contract with a contractor for performance of some or all of the City contracted work.
The Contractor shall identify subcontracted work by subcontractor name and dollar amount subcontracted on all monthly/quarterly reports. Wholly owned subsidiaries of the contractor shall not be considered as subcontractors, but the City shall be notifi.ed in advance of their usage. The Contractor shall not change any of the approved subcontractors or reduce their leve! of work without the City Purchasing Agent's written approval. City approval shall not be unreasonably withheld.
All procurement agreements with a value in excess of $25,000 and having a term in excess of three (3) months are subject to the Sweat-Free Procurement Ordinance. Subcontractor information for these agreements shall be provided in both hardcopy and electronic versions. Information for these contractors/subcontractors will be posted on the City Purchasing Agent's Internet website.
OFF-PEAK DELIVERY AND PICK-UP HOURS:
The City of Los Angeles requires off-peak delivery and piGkup of all commodities by City suppliers between the hours of 9:00 AM and 3:30 PM, Monday through Friday, to reduce traffic and vehicle emissions during morning and afternoon commute times. Suppliers are determined in compliance if the actual delivery or pickup time provides for arrival at the City 23 24
CITY OF LOS ANGELES
TONY M. ROYSTER
GENERAL MANAGER
AND
CITY PURCHASING AGENT
May 13, 2021
Sterndahl Enterprises, Inc
11861 Branford Street
Sun Valley, CA 91352-1032
CALIFORNIA
ERIC GARCETTI
MAYOR
DEPARTMENT OF
GENERAL SERVICES
ROOM 701
CITY HALL SOUTH
1 I 1 EAST FIRST STREET
Los ANGELES, CA 90012
(213) 928-9555
FAX No. 1213! 928-9515
SUBJECT: CITY OF LOS ANGELES CONTRACT 59281 -AMENDMENT 13
PAVEMENT SUPPLY MARKING/STRIPING
The subject contract is hereby extended to November 30, 2022.
All other contract terms and conditions remain unchanged and in force. Questions regarding this contract modification should be addressed to Martha Medina, Procurement Supervisor at (213) 928-9536 or via e-mail: [email protected].
This Agreement may be executed in one or more counterparts, and by the parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. The parties further agree that facsimile signatures or signatures scanned into .pdf (or signatures in another electronic format designated by City) and sent by e-mail shall be deemed original signatures.
Tony M. Royster 7nJn
General Manager and
City Purchasing Agent
By: _________ _
Supply Services Manager
Approved as to Form
Michael N. Feuer
City Attorney
By: _________ _
Kimberly D. Miera
Deputy City Attorney
AN EQUAL EMPLOYMENT OPPORTUNITY-AFFIRMATIVE ACTION EMPLOYER 25 November 28, 2022
Sterndahl Enterprises, Inc
11861 Branford Street
Sun Valley, CA 91352-1032
SUBJECT: CITY OF LOS ANGELES CONTRACT 59281 -AMENDMENT 14
PAVEMENT SUPPLY MARKING/STRIPING
The subject contract is hereby extended to February 28, 2023.
All other cont
ract terms and conditions remain unchanged and in force. Questions regarding this contract modification should be addressed to Martha Medina, Procurement Supervisor at (213) 928-9536 or via e-mail: [email protected].
This Agreement may be executed in one or more counterparts, and by the parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. The parties further agree that facsimile signatures or signatures scanned into .pdf (or signatures in another electronic format designated by City) and sent by e-mail shall be deemed original signatures.
Tony M. Royst
er Approved as to Form
General Manager and Michael N. Feuer
City Purchasing Agent City Attorney
By:__________________
___ By:_____________________
Supply Services Manager Kimberly D. Miera
Deputy City Attorney
f/TAL
26 27
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INSURANCE REQUIREMENTS
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
STERNDAHL ENTERPRISES, LLC FOR INSTALLATION OF
TRAFFIC CONTROL STRIPING AND PAVEMENT
MARKINGS THROUGH THE CITY OF LOS ANGELES
COOPERATIVE AGREEMENT CONTRACT #59281
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, employees, or subcontractors.
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 $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this proj ect/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
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 $5,000,000 per accident for bodily injury and property damage.
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:
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). 29 Primary Coverage
For any claims related to this project/contract, the Contractor’s insurance coverage shall be primary and non-contributory 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, its Boards, Officers, Agents, Officials, employees, and volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella policies.
Notice of Cancellation
Each insurance policy required above shall state that coverage shall not be canceled, 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 favor 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. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self- insured retention (SIR) provision that limits the satisfaction of the SIR to the Named Insured. The policy must also provide that Defense costs , including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state of California 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, 30 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.
Umbrella or Excess Policies
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-c ontributory, 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.
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.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
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.
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