2200 - California Waters - Water Foundation Repairs Civic Center Cl 8603
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CONSTRUCTION CONTRACT
CITY OF ROSEMEAD CIVIC CENTER WATER FEATURE REAPAIRS
(CALIFORNIA WATERS)
1. PARTIES AND DATE
This Contract is made and entered into this 25l'' day of_e,j�tel�'lber , 20 I—I
(Effective Date) by and between the City of Rosemead, a municipalnorporation of the State
of California, located at 8838 E. Valley Blvd., Rosemead, California 91770, ("City") and
California Waters with its principal place of business at 23311 E. La Palma Avenue, Yorba
Linda, CA 92887 (hereinafter referred to as "Contractor"). City and Contractor are
sometimes individually referred to as "Party" and collectively as "Parties" in this Contract.
2. RECITALS
2.1 Contractor
Contractor desires to perform and assume responsibility for the City of Rosemead
Civic Center Water Feature Repairs by the City on the terms and conditions set forth in this
Contract. Contractor represents that it is experienced in providing such work services to
public clients, that it and its employees or subcontractors have all necessary licenses and
permits to perform the Services in the State of California, and that is familiar with the plans
of City.
2.2 Project
City desires to engage Contractor to render such services described herein as Project
("Project") as set forth in this Contract.
3. TERMS
3.1 Scope of Services and Term
3.1.1 General Scope of Services. Contractor promises and agrees to furnish
to the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional construction services necessary
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for the Project ("Services"). The Services are more particularly described in Exhibit "A"
attached hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Contract, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The term of this Contract shall be from Effective Date shown
above to December 31, 2017 unless earlier terminated as provided herein. Contractor shall
complete the Services within the term of this Contract, and shall meet any other established
schedules and deadlines. The Parties may, by mutual, written consent, extend the term of
this Contract if necessary to complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will
determine the means, methods and details of performing the Services subject to the
requirements of this Contract. City retains Contractor on an independent contractor basis
and not as an employee. Contractor retains the right to perform similar or different services
for others during the term of this Contract. Any additional personnel performing the Services
under this Contract on behalf of Contractor shall also not be employees of City and shall at
all times be under Contractor's exclusive direction and control. Contractor shall pay all
wages, salaries, and other amounts due such personnel in connection with their
performance of Services under this Contract and as required by law. Contractor shall be
responsible for all reports and obligations respecting such additional personnel, including,
but not limited to: social security taxes, income tax withholding, unemployment insurance,
disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services: Contractor shall perform the Services
expeditiously, within the term of this Contract, and within the schedules timeline. Contractor
represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Contractor's
conformance with the Schedule, City shall respond to Contractor's submittals in a timely
manner. Upon request of City, Contractor shall provide a more detailed schedule of
anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Contractor shall be subject to the approval of City.
3.2.4 City's Representative. The City hereby designates the City Engineer, or
his designee, to act as its representative for the performance of this Contract ("City's
Representative"). City's Representative shall have the power to act on behalf of the City for
all purposes under this Contract. Contractor shall not accept direction or orders from any
person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Mr.Jeffrey
Barman, or his designee, to act as its representative for the performance of this Contract
("Contractor's Representative"). Contractor's Representative shall have full authority to
represent and act on behalf of the Contractor for all purposes under this Contract. The
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Contractor's Representative shall supervise and direct the Services, using his/her best skill
and attention, and shall be responsible for all means, methods,techniques, sequences and
procedures and for the satisfactory coordination of all portions of the Services under this
Contract.
3.2.6 Coordination of Services. Contractor agrees to work closely with City
staff in the performance of Services and shall be available to City's staff, consultants and
other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform
all Services under this Contract in a skillful and competent manner, consistent with the
standards generally recognized asbeing employed by professionals in the same discipline in
the State of California. Contractor represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Contractor warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Contractor represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services, including a City Business License if
applicable, and that such licenses and approvals shall be maintained throughout the term of
this Contract. As provided for in the indemnification provisions of this Contract, Contractor
shall perform, at its own cost and expense and without reimbursement from the City, any
services necessary to correct errors or omissions which are caused by the Contractor's
failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub-contractors who is determined by the City to be uncooperative,
incompetent, a threat to the adequate or timely completion of the Project, a threat to the
safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the
Contractor and shall not be re-employed to perform any of the Services or to work on the
Project.
3.2.8 Laws and Regulations. Contractor shall keep itself fully informed of and
in compliance with all local, state aind federal laws, rules and regulations in any manner
affecting the performance of the Project or the Services, including all Cal/OSHA, AQMD
requirements, and shall give all notices required by law. Contractor shall be liable for all
violations of such laws and regulations in connection with Services. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the City, Contractor shall be solely responsible for all costs arising
therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of this
Contract, from any claim or liability arising out of any failure or alleged failure to comply with
such laws, rules or regulations.
3.2.9 Insurance: Contractor shall maintain, prior to the beginning of and for
the duration of this Contract, insurance coverage as specified in Exhibit B attached to and
part of this Contract.
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3.2.10 Safety. Contractor shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services,the Contractor shall
at all times be in compliance with all applicable local, state and federal laws, rules and
regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways, scaffolds,
fall protection ladders, bridges, gang planks, confined space procedures, trenching and
shoring, equipment and other safety devices, equipment and wearing apparel as are
necessary or lawfully required to prevent accidents or injuries; and (C)adequate facilities for
the proper inspection and maintenance of all safety measures.
3.2.11 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of
Regulations, Title 8, Section 1600, et seq., ("Prevailing Wage Laws'), which require the
payment of prevailing wage rates and the performance of other requirements on "public
works" and "maintenance' projects. If the Services are being performed as part of an
applicable"public works'or"maintenance"project, as defined by the Prevailing Wage Laws,
and if the total compensation is$1,000 or more, Contractor agrees to fully comply with such
Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of
per diem wages in effect at the commencement of this Contract. Contractor shall make
copies of the prevailing rates of per diem wages for each craft, classification or type of
worker needed to execute the Services available to interested parties upon request, and
shall post copies at the Contractor's principal place of business and at the project site.
Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees
and agents free and harmless from any claim or liability arising out of any failure or alleged
failure to comply with the Prevailing Wage Laws.
3.2.12 Bonds.
3.2.12.1 Performance Bond: If specifically requested by City,
Contractor shall execute and provide to City concurrently with this Contract a Performance
Bond in the amount of the total, not-to-exceed compensation indicated in this Contract, and
in a form provided or approved by the City. If such bond is required, no payment will be
made to Contractor until it has been received and approved by the City.
3.2.12.2 Payment Bond. If required by law or otherwise specifically
requested by City, Contractor shall execute and provide to City concurrently with this
Contract a Payment Bond in the amount of the total, not-to-exceed compensation indicated
in this Contract, and in a form provided or approved by the City. If such bond is required, no
payment will be made to Contractor until it has been received and approved by the City.
3.2.12.3 Bond Provisions. Should, in City's sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or
replace the affected bond within 10 days of receiving notice from City. In the event the
surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days
prior written notice shall be given to the City, and Contractor shall post acceptable
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replacement bonds at least ten (10)days prior to expiration of the original bonds. No further
payments shall be deemed due or will be made under this Contract until any replacement
bonds required by this Section are accepted by the City. To the extent, if any, that the total
compensation is increased in accordance with the Contract, the Contractor shall, upon
request of the City, cause the amount of the bonds to be increased accordingly and shall
promptly deliver satisfactory evidence of such increase to the City. To the extent available,
the bonds shall further provide that no change or alteration of the Contract (including,
without limitation, an increase in the total compensation, as referred to above), extensions of
time, or modifications of the time, terms, or conditions of payment to the Contractor, will
release the surety. If the Contractor fails to furnish any required bond, the City may
terminate this Contract for cause.
3.2.12.4 Surety Qualifications. Only bonds executed by an
admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be
accepted. The surety must be a California-admitted surety with a current A.M. Best's rating
no less than A:Vlll and satisfactory to the City. If a California-admitted surety insurer issuing
bonds does not meet these requirements, the insurer will be considered qualified if it is in
conformance with Section 995.660 of the California Code of Civil Procedure, and proof of
such is provided to the City.
3.3 Fees and Payments.
3.3.1 Compensation. The total compensation shall not exceed Fifteen
Thousand Dollars ($15,000.00)without advance written approval of City's project manager.
Extra Work may be authorized, as described below, and if authorized, will be compensated
at the rates and manner set forth in this Contract.
3.3.2 Payment of Compensation. Contractor shall submit to City a monthly
itemized statement that indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided
since the initial commencement date, or since the start of the subsequent billing periods, as
appropriate, through the date of the statement. City shall, within 45 days after receiving
such statement, review the statement and pay all approved charges. The payments will be
subject to a 5% retention amount,which would be released and paid after all work under the
Contract has been satisfactorily completed, and 35 days after a Notice of Completion is filed
with the County of Los Angeles.
3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for
any expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Contract, City may
request that Contractor perform Extra Work. As used herein, "Extra Work" means any work
that is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this
Contract. Contractor shall not perform, nor be compensated for, Extra Work without written
authorization from City's Representative.
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3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Contractor shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Contract. All
such records shall be clearly identifiable. Contractor shall allow a representative of City
during normal business hours to examine, audit, and make transcripts or copies of such
records and any other documents created pursuant to this Contract. Contractor shall allow
inspection of all work, data, documents, proceedings, and activities related to the Contract
for a period of three (3) years from the date of final payment under this Contract.
3.5 General Provisions.
3.5.1 Termination of Contract.
3.5.1.1 Grounds for Termination. City may, by written notice to
Contractor, terminate the whole or any part of this Contract at any time and without cause by
giving written notice to Contractor of such termination, and specifying the effective date
thereof, at least seven (7) days before the effective date of such termination. Upon
termination, Contractor shall be compensated only for those services that have been
adequately rendered to City, and Contractor shall be entitled to no further compensation.
Contractor may not terminate this Contract except for cause.
3.5.1.2 Effect of Termination. If this Contract is terminated as
provided herein, City may require Contractor to provide all finished or unfinished Documents
and Data and other information of any kind prepared by Contractor in connection with the
performance of Services under this Contract. Contractor shall be required to provide such
document and other information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Contract is
terminated in whole or in part as provided herein, City may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Contract
shall be given to the respective parties at the following address, or at such other address as
the respective parties may provide in writing for this purpose:
CONTRACTOR:
Californnia Waters
23311 E. La Palma Avenue
Yorba Linda, CA 92887
Attn: Mr. Jeffery Barman
CITY:
City of Rosemead
8838 E. Valley Boulevard
Rosemead, CA 91770
Attn: Rafael M. Fajardo P.E., City Engineer
CALIFORNIA WATERS
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Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the
party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Contract.
3.5.4 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Contract, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney's fees and all other costs of such action.
3.5.5 Indemnification. Contractor shall defend, indemnify and hold the City,
its officials, officers, employees, volunteers and agents free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law
or equity, to property or persons, including wrongful death, in any manner arising out of or
incident to any alleged acts, omissions or willful misconduct of Contractor, its officials,
officers, employees, agents, consultants and contractors arising out of or in connection with
the performance of the Services, the Project or this Contract, including without limitation the
payment of all consequential damages and attorneys fees and other related costs and
expenses. Contractor shall defend, at Contractor's own cost, expense and risk, any and all
such aforesaid suits, actions or other legal proceedings of every kind that may be brought or
instituted against City, its directors, officials, officers, employees, agents or volunteers.
Contractor shall pay and satisfy any judgment, award or decree that may be rendered
against City or its directors, officials, officers, employees, agents or volunteers, in any such
suit, action or other legal proceeding. Contractor shall reimburse City and its directors,
officials, officers, employees, agents and/or volunteers, for any and all legal expenses and
costs incurred by each of them in connection therewith or in enforcing the indemnity herein
provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds,
if any, received by the City, its directors, officials, officers, employees, agents or volunteers.
3.5.6 Entire Contract. This Contract contains the entire Contract of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations and
understandings. This Contract may only be modified by a writing signed by both parties.
3.5.7 Governing Law. This Contract shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.8 Time of Essence. Time is of the essence for each and every provision
of this Contract.
3.5.9 City's Right to Employ Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.10 Successors and Assigns. This Contract shall be binding on the
successors and assigns of the parties.
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3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Contract or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any
assignees, hypothecates or transferees shall acquire no right or interest by reason of such
attempted assignment, hypothecation or transfer.
3.5.12 Construction; References; Captions. Since the Parties or their agents
have participated fully in the preparation of this Contract, the language of this Contract shall
be construed simply, according to its fair meaning, and not strictly for or against any Party.
Any term referencing time, days or period for performance shall be deemed calendar days
and not workdays. All references to Contractor include all personnel, employees, agents,
and subcontractors of Contractor, except as otherwise specified in this Contract. All
references to City include its elected officials, officers, employees, agents, and volunteers
except as otherwise specified in this Contract. The captions of the various articles and
paragraphs are for convenience and ease of reference only, and do not define, limit,
augment, or describe the scope, content, or intent of this Contract.
3.5.13 Amendment; Modification. No supplement, modification, or amendment
of this Contract shall be binding unless executed in writing and signed by both Parties.
3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same orother covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppels, or otherwise.
3.5.15 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.16 Invalidity; Severability. If any portion of this Contract is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it
has not paid nor has it agreed to pay any company or person, other than a bona fide
employee working solely for Contractor, any fee, commission, percentage, brokerage fee,
gift or other consideration contingent upon or resulting from the award or making of this
Contract. For breach or violation of this warranty, City shall have the right to rescind this
Contract without liability. For the term of this Contract, no member, officer or employee of
City, during the term of his or her service with City, shall have any direct interest in this
Contract, or obtain any present or anticipated material benefit arising therefrom.
3.5.18 Equal Opportunity Employment. Contractor represents that it is an
equal opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all
CALIFORNIA WATERS
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activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination. Contractor shall also comply with all relevant
provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other
related programs or guidelines currently in effect or hereinafter enacted.
3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that
it is aware of the provisions of Section 3700 of the California Labor Code that require every
employer to be insured against liability for Worker's Compensation or to undertake self-
insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.5.20 Authority to Enter Contract. Contractor has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Contract. Each
Party warrants that the individuals who have signed this Contract have the legal power, right,
and authority to make this Contract and bind each respective Party.
3.5.21 Counterparts. This Contract may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of
the work required by this Contract, except as expressly stated herein, without prior written
approval of City. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Contract.
[SIGNATURES ON NEXT PAGE]
CALIFORNIA WATERS
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CITY OF ROSEMEAD CALIFORNIA WATERS
By: q�
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Bill R. Manis, City Manager Date Date
Name: kfri
Attest:
"Lis
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Marc L.onohue, City Clerk Date
[If Corporation,TWO SIGNATURES, President OR
Vice President AND Secretary,AND CORPORATE
SEAL OF CONTRACTOR REQUIRED]
By: ALL#
Name: ,19 ` " e .iar,
Title: c/e /
CALIFORNIA WATERS
EXHIBIT A
SCOPE OF CONTRACT SERVICES
SEE ATTACHED BID SCHEDULE/PROPOSAL
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Sent by Email:rfajardo@cityofrosemead.org
June 12,2017
Mr. Rafael M. Fajardo P.E.
Acting Public Works Director
City of Rasemeac
8838 E.Valley Boulevard
Rosemead,CA 91770
RE: Water Feature—Leak Repair Proposal
Dear Rafael:
As you are aware,the water feature is losing large amounts of water.Per our latest inspection we have
determined that the leak is about six to seven feet below the surface.The repair will be performed on a T&M basis.
To reach the area we will need to have heavy equipment on site and shoring may be required.The costs of this will
vary by time spent but a budgetary estimate, including prevailing wage,is$15,000 inclusive.
SCOPE OF WORK:
Subterranean Plumbing Repair
1) Perform a pressure test on each suction and discharge pipe run for the display and filter pump systems,
auto fill system,and drain lines.
2) Perform a leak diagnosis using special dyes to confirm the integrity of the basin.
3) An ultrasonic detector and/or a tracer gas(Non-lethal,Nontoxic)will be used to determine the exact
location of the leak.The leak detection process is non-intrusive and non-destructive.
4) The area of the leak will be marked for repair.
5) Excavate the identified area until the damaged pipe is exposed.
6) Excavation will be accomplished using the slope method due to the amount of water in the soil and will
require a crew of 4 to 6.
7) Once leak is exposed,the damage will be assessed.
8) This proposal assumes that the plumbing to be repaired is a 4"and a 1"pipe that supplies the circular
fountain.
9) Per this assumption the plumbing will be repaired using SCH80 PVC of equal size,which includes pipe and
fittings as required for the repair.
Cost:Inclusive of Parts+Tax and Labor:Not to exceed$15,000
Labor is billed at the appropriate trades prevailing wage rate plus a 33%burden rate and a
30%markup per hour per trade personnel.Work will halt once$15,000 is reached,even if INITIALS:
work is not completed,and not proceed without customer approval at that time.
The leak detection portion has a fixed cost of$3,000 to be invoice separately and is included in the not to
exceed.
23311 E. La Palma Ave. I Yorba Linda, CA 92887 1949.528.0900 I californiawaters.com I CA Lic#958960
•
We greatly appreciate the opportunity to be of service. Please call me with any questions or concerns you may
have,at any time. Thank you.
Sincerely,
Sergio Debia
Manager, Repair Services
California Waters
Office: (949)528-0900,ext. 119
Cell: (949)829-7583
Fax: (949)528-0910
Email:sdebia@californiawaters.com
General Notes and Exclusions:
1) Should other deficiencies be found during the course of the above work,those repairs are not included in
the proposal and would incur additional charges.
2) Bid/proposal is contingent on a five-day workweek(M-F)with normal operating hours(7.00a-3.30p)and
includes prevailing wage rates.
3) Shoring'.s not included,but if soil conditions or depth require it,we will not proceed without your prior
approval and a change order.Shoring would be charged at our cost plus 15%.
4) Anything not specified in the above scope is not included,but can be accommodated through a change
order.
5) If a leak in the plumbing is present and it is determined to be subterranean,specialty ultrasonic and
infrared equipment may be required to pin point the breach.These specialized tests are included in this
proposal.
6) Pumps may need to be removed to isolate the suction from the discharge line.This may require new
gaskets and/or mechanical seal(s),which are not included in this proposal.
7) This proposal assumes that the leak detection will be completed in one visit. If additional visits are
required due to unforeseen issues or deficiencies a$300 per hour rate will apply to the second visits as
additional charges.
8) Normal tests are usually completed in 2 to 5 hours and in one visit. Up to 10 business days may be
required to schedule these tests.
9) This proposal is valid for 30 days.
ACCEPTANCE OF PROPOSAL
The above prices,specifications and conditions are satisfactory and are hereby accepted. You are authorized to
perform the above work as specified.
APPROVED:
Signed
Print:
Title:
Date:
23311 E. La Palma Ave. I Yorba Linda, CA 92887 1949.528.0900 I callforniawaters.com I CA Lic#958960
CALIFORNIA WATERS
EXHIBIT B
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Contractor will maintain
insurance in conformance with the requirements set forth below. Contractor will use
existing coverage to comply with these requirements. If that existing coverage does not
meet the requirements set forth here, Contractor agrees to amend, supplement or endorse
the existing coverage to do so. Contractor acknowledges that the insurance coverage and
policy limits set forth in this section constitute the minimum amount of coverage required.
Any insurance proceeds available to City in excess of the limits and coverage required in
this Contract and which is applicable to a given loss, will be available to City.
Contractor shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office "Commercial
General Liability" policy form CG 00 01 or the exact equivalent. Defense costs must be
paid in addition to limits. There shall be no cross liability exclusion for claims or suits by
one insured against another. Limits are subject to review but in no event less than
$1,000,000 per occurrence.
Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol
1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be
less that$1,000,000 per accident. If Contractor owns no vehicles, this requirement may be
satisfied by a non-owned auto endorsement to the general liability policy described above.
If Contractor or Contractor's employees will use personal autos in any way on this project,
Contractor shall provide evidence of personal auto liability coverage for each such person.
Workers Compensation on a state-approved policy form providing statutory benefits as
required by law with employer's liability limits no less than $1,000,000 per accident or
disease.
Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements,
shall provide coverage at least as broad as specified for the underlying coverage. Any
such coverage provided under an umbrella liability policy shall include a drop down
provision providing primary coverage above a maximum $25,000 self-insured retention for
liability not covered by primary but covered by the umbrella. Coverage shall be provided
on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy
shall contain a provision obligating insurer at the time insured's liability is determined, not
requiring actual payment by the insured first. There shall be no cross liability exclusion
precluding coverage for claims or suits by one insured against another. Coverage shall be
applicable to City for injury to employees of Contractor, subcontractors or others involved in
the Work. The scope of coverage provided is subject to approval of City following receipt
of proof of insurance as required herein. Limits are subject to review.
CALIFORNIA WATERS
FOR NON-CONSTRUCTION CONTRACTS: Professional Liability or Errors and Omissions
Insurance, as appropriate, shall be written on a policy form coverage specifically designed
to protect against acts, errors or omissions of the Contractor and "Covered Professional
Services" as designated in the policy must specifically include work performed under this
Contract. The policy limit shall be no less than$1,000,000 per claim and in the aggregate.
The policy must "pay on behalf of" the insured and must include a provision establishing
the insurers duty to defend. The policy retroactive date shall be on or before the effective
date of this Contract.
Insurance procured pursuant to these requirements shall be written by insurers that are
admitted carriers in the state of California and with an A.M. Bests rating of A-or better and
a minimum financial size VII.
General conditions pertaining to provision of insurance coverage by Contractor.
Contractor and City agree to the following with respect to insurance provided by
Contractor:
1. Contractor agrees to have its insurer endorse the third party general liability
coverage required herein to include as additional insured City, its officials,
employees and agents, using standard ISO endorsement No. CG 2010 with an
edition prior to 1992. Contractor also agrees to require all contractors, and
subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Contract shall prohibit
Contractor, or Contractor's employees, or agents, from waiving the right of
subrogation prior to a loss. Contractor agrees to waive subrogation rights against
City regardless of the applicability of any insurance proceeds, and to require all
contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and available or applicable
to this Contract are intended to apply to the full extent of the policies. Nothing
contained in this Contract or any other Contract relating to the City or its operations
limits the application of such insurance coverage.
4. None of the coverage required herein will be in compliance with these requirements
if they include any limiting endorsement of any kind that has not been first submitted
to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve to
eliminate so-called "third party action over"claims, including any exclusion for bodily
injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and
additional requirements by the City, as the need arises. Contractor shall not make
any reductions in scope of coverage (e.g. elimination of contractual liability or
reduction of discovery period) that may affect City's protection without City's prior
written consent.
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7. Proof of compliance with these insurance requirements, consisting of certificates of
insurance evidencing all of the coverage required and an additional insured
endorsement to Contractor's general liability policy, shall be delivered to City at or
prior to the execution of this Contract. In the event such proof of any insurance is
not delivered as required, or in the event such insurance is canceled at any time
and no replacement coverage is provided, City has the right, but not the duty, to
obtain any insurance it deems necessary to protect its interests under this or any
other Contract and to pay the premium. Any premium so paid by City shall be
charged to and promptly paid by Contractor or deducted from sums due Contractor,
at City option.
8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any
cancellation of coverage. Contractor agrees to require its insurer to modify such
certificates to delete any exculpatory wording stating that failure of the insurer to
mail written notice of cancellation imposes no obligation, or that any party will
"endeavor" (as opposed to being required) to comply with the requirements of the
certificate.
9. It is acknowledged by the parties of this Contract that all insurance coverage
required to be provided by Contractor or any subcontractor, is intended to apply first
and on a primary, noncontributing basis in relation to any other insurance or self
insurance available to City.
10.Contractor agrees to ensure that subcontractors, and any other party involved with
the project who is brought onto or involved in the project by Contractor, provide the
same minimum insurance coverage required of Contractor. Contractor agrees to
monitor and review all such coverage and assumes all responsibility for ensuring
that such coverage is provided in conformity with the requirements of this section.
Contractor agrees that upon request, all Contracts with subcontractors and others
engaged in the project will be submitted to City for review.
11.Contractor agrees not to self-insure or to use any self-insured retentions or
deductibles on any portion of the insurance required herein and further agrees that
it will not allow any contractor, subcontractor, Architect, Engineer or other entity or
person in any way involved in the performance of work on the project contemplated
by this Contract to self-insure its obligations to City. If Contractor's existing
coverage includes a deductible or self-insured retention, the deductible or self-
insured retention must be declared to the City. At that time the City shall review
options with the Contractor, which may include reduction or elimination of the
deductible or self-insured retention, substitution of other coverage, or other
solutions.
12.The City reserves the right at any time during the term of the contract to change the
amounts and types of insurance required by giving the Contractor ninety (90) days
advance written notice of such change. If such change results in substantial
additional cost to the Contractor, the City will negotiate additional compensation
proportional to the increased benefit to City.
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13.For purposes of applying insurance coverage only, this Contract will be deemed to
have been executed immediately upon any party hereto taking any steps that can
be deemed to be in furtherance of or towards performance of this Contract.
14.Contractor acknowledges and agrees that any actual or alleged failure on the part of
City to inform Contractor of non-compliance with any insurance requirement in no
way imposes any additional obligations on City nor does it waive any rights
hereunder in this or any other regard.
15.Contractor will renew the required coverage annually as long as City, or its
employees or agents face an exposure from operations of any type pursuant to this
Contract. This obligation applies whether or not the Contract is canceled or
terminated for any reason. Termination of this obligation is not effective until City
executes a written statement to that effect.
16.Contractor shall provide proof that policies of insurance required herein expiring
during the term of this Contract have been renewed or replaced with other policies
providing at least the same coverage. Proof that such coverage has been ordered
shall be submitted prior to expiration. A coverage binder or letter from Contractor's
insurance agent to this effect is acceptable. A certificate of insurance and/or
additional insured endorsement as required in these specifications applicable to the
renewing or new coverage must be provided to City within five days of the expiration
of the coverage.
17.The provisions of any workers' compensation or similar act will not limit the
obligations of Contractor under this Contract. Contractor expressly agrees not to
use any statutory immunity defenses under such laws with respect to City, its
employees, officials and agents.
18.Requirements of specific coverage features or limits contained in this section are
not intended as limitations on coverage, limits or other requirements nor as awaiver
of any coverage normally provided by any given policy. Specific reference to a
given coverage feature is for purposes of clarification only as it pertains to a given
issue, and is not intended by any party or insured to be limiting or all-inclusive.
19.These insurance requirements are intended to be separate and distinct from any
other provision in this Contract and are intended by the parties here to be
interpreted as such.
20.The requirements in this Section supersede all other sections and provisions of this
Contract to the extent that any other section or provision conflicts with or impairs the
provisions of this Section.
21.Contractor agrees to be responsible for ensuring that no contract used by any party
involved in any way with the project reserves the right to charge City or Contractor
for the cost of additional insurance coverage required by this Contract. Any such
provisions are to be deleted with reference to City. It is not the intent of City to
reimburse any third party for the cost of complying with these requirements. There
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shall be no recourse against City for payment of premiums or other amounts with
respect thereto.
Contractor agrees to provide immediate notice to City of any claim or loss against
Contractor arising out of the work performed under this Contract. City assumes no
obligation or liability by such notice, but has the right (but not the duty) to monitor the
handling of any such claim or claims if they are likely to involve City.