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HomeMy WebLinkAboutA8636 - PS RESORTS : FOREVER MARILYN L TEMPORARY ENCROACHMENT AND LICENSE AGREEMENT (FOREVER MARILYN) This Temporary Encroachment and License Agreement ("Agreement") is made and entered into as of this4h0(,day of beCQa..nb€ir , 2020 , for reference purpose only, by and between the City of Palm'Springs, a municipal corporation of.the State of California ("City"); and PS Resorts, a California non-profit corporation ("Licensee" or "PS Resorts"). City and Licensee are,sometimes individually referred to herein as "Party" and collectively as "Parties." RECITALS A. This Agreement relates to that certain real property commonly known as Museum Way,. located West of Belardo Road and East of Museum Drive, depicted in Exhibit "A," attached hereto and incorporated herein by reference ("Property"). B. Licensee desires, and City .is willing to permit Licensee to encroach into the City's Property by placing Licensee's a statue, entitled Forever Marilyn, onto that portion of the Property, depicted in the map attached hereto as Exhibit "A", and incorporated herein by reference ("Licensed Area"). AGREEMENT NOW, THEREFORE, in consideration of the mutual conditions, promises_and covenants hereinafter contained, the Parties agree as follows: 1.0 Definitions In addition to the definitions of certain words or phrases set forth in the Recitals or elsewhere in this Agreement, the following words or phrases shall. have - the meanings set forth below: 1.1 City Manager. The City Manager of the City of Palm Springs, or his/her designee. 1.2 Hazardous Substance. Any flammable substance, explosive, radioactive material, asbestos, asbestos-containing material, polychlorinated biphenyl, chemical known to cause cancer or reproductive toxicity, pollutant, contaminant, hazardous waste, medical waste, toxic substance or related material, explosive, petroleum, petroleum product or any "hazardous" or "toxic" material, substance or waste that is. defined by those or similar terms or, is regulated as such under any law, statute, - ordinance, or regulation. . 1.3 Licensed Area. The area identified in Exhibit "A" to this Agreement. 1.4 Property. The real property shown in Exhibit "A" to this Agreement. 55575.18100\33489055.1 Page-1-of 10 1.5 Statue. The 26 foot tall sculpture of Marilyn Monroe, designed by Seward Johnson, as depicted in Exhibit "B", attached hereto and incorporated by reference herein, as well as a two (2) foot tall pedestal. 2.0 License A. Subject to the terms, conditions and agreements of this Agreement, City hereby licenses, permits and .authorizes Licensee and its authorized agents, contractors, and subcontractors, on an exclusive basis to: (1) install and allow the Statue to remain on the Licensed Area during the Term of this Agreement; and (2) perform any necessary maintenance, repair or replacement of the Statue pursuant to this Agreement, on the Licensed Area. Licensee and its authorized agents, contractors and subcontractor shall have a non-exclusive license over the remainder of the Property, to the extent necessary to carry out the activities that are authorized by this Agreement.' B. Licensee shall at all times maintain the Statue in a good and safe condition, at Licensee's sole cost and expense. If the Statue is damaged, whether by vandalism, a casualty or any other cause, Licensee shall either restore the damaged Statue to the same or better condition as such Statue existed prior to the damage or remove the damaged Statue from the Property in a manner reasonably acceptable to City Manager. Licensee shall commence such restoration or removal of damaged Statue within the earlier of: (a) a reasonable time under the circumstances;, or (b) thirty (30) calendar days following the date of occurrence of the damage. In all circumstances, Licensee shall complete any and all restoration or removal required by this Section within a reasonable time. Licensee shall not add any additional encroachments or improvements to the Property without City's written consent. C. Notwithstanding any provision of this Agreement to the contrary, City and Licensee do not intend to convey any estate or interest in real or personal property between them under this Agreement and nothing in this Agreement shall be construed or interpreted as a conveyance of any estate or interest in any real or personal property. If this Agreement or any provision of this Agreement is finally (after all appeals) construed or interpreted by a court of competent jurisdiction as conveying an estate or interest in real or personal property between City and Licensee, then the provisions of this Agreement interpreted as conveying any estate or interest in real or personal property between City and Licensee shall automatically be null and void, without further action by or notice to City or Licensee. D. Licensee shall install and maintain lighting and security cameras, to the satisfaction of the City Manager. Licensee shall be solely responsible for the security of the Statue. E. Licensee shall, at its sole cost and expense, contract with a firm (to be selected by mutual agreement of the City Manager and Licensee), to conduct a study on the economic impacts of the placement of the Statue at the Property. 55575.18100133489055.1 Page -2-of 10 3.0 Term This Agreement shall become effective on the date ("Effective Date") that it is last signed by the Parties to this Agreement. The Term of the encroachment and license authorized by Section 2 of this Agreement shall commence on the date (the "Commencement Date") that Licensee and Seward Johnson Atelier, Inc. ("Statue Owner") both execute an agreement for the loan and placement of the Statue at the Licensed Area (the "Loan Agreement"). The Term of the encroachment and license authorized by Section 2 of this Agreement shall end on the date that is three (3) years following the Commencement Date, unless otherwise terminated or extended, as set forth in this Agreement. In the event PS Resorts and Statue Owner do not execute the Loan Agreement on or before May 1, 2021, this Agreement shall automatically terminate and be of no further force or effect. 4.0 Licensee Compliance with Laws Licensee shall not maintain, commit or permit on the Licensed Area the maintenance or commission of any nuisance, as now or hereafter defined by any statutory or decisional law . Licensee, at Licensee's sole expense, will timely obtain and comply with any license, permit, approval, consent, certificate, ruling, variance, authorization, conditional use permit, or amendment to any of the foregoing, as shall be necessary or appropriate under any law to perform any activities of Licensee required or allowed on the Property pursuant to this Agreement. Licensee covenants and agrees that in entering upon the Property, Licensee will comply with all applicable laws, including environmental laws. Licensee shall not cause or permit to be placed on the Property any Hazardous Substance. 5.0 Protection of Property Against Liens A. If any claim or lien is recorded or asserted against the Licensed Area or the City for materials supplied or labor or professional services performed directly or indirectly for Licensee or any contractor of Licensee relating to construction, demolition, maintenance, removal or other work on the Property, Licensee shall satisfy and discharge such lien, at the sole cost and expense of Licensee, within ten (10) calendar days following receipt of notice of the existence or assertion of such claim or lien. Notice is hereby given that City shall not be liable for any labor or materials furnished or to be furnished to Licensee or Licensee's contractors upon credit and that no mechanic's or other lien for any labor or materials shall attach to or affect the Property. Nothing in this Agreement shall be deemed or construed in any way to constitute City's consent or request, express or implied, by inference or otherwise, to any contractor, subcontractor, laborer, equipment or material supplier for the performance of any labor or the furnishing of any materials or equipment for any construction, nor as giving Licensee any right or power to contract for, or permit the rendering of, any services, or the furnishing of any materials that would give rise to the filing of any liens against the Property. Licensee shall indemnify, defend and hold harmless, the City against any activity on or relating to the Property undertaken by Licensee or anyone claiming through Licensee, and against all liens. B. Licensee acknowledges and agrees that, on the Effective Date, the Property is owned by City, which is a public entity, and that the Property is not subject to the imposition of mechanic's liens or any other liens in favor of providers of labor, material 55575.18100\33489055.1 Page -3 -of 10 or services on or to the Property. Licensee further agrees to inform each provider of labor, material, or services on or to the Property of such fact and that City and the' property are not responsible for payment of any claims by any such providers of labor, material or services. 6.0 Possessory Interest Tax Licensee hereby acknowledges and agrees that this Agreement may create a possessory interest in the Property subject to property taxation and that Licensee may be subject to payment of property taxes levied on such interest. Any such imposition of a possessory interest tax shall be solely atax liability of Licensee and shall be paid before delinquency by Licensee. In addition, Licensee shall pay before delinquency any personal property taxes that may become due for equipment, fixtures, inventory or other personal property of Licensee installed, maintained or present at or on the Property. 7.0 Surrender Upon the expiration or termination of this Agreement, Licensee shall, at its sole cost and expense, promptly, safely and carefully restore the Property to its condition on the Effective Date of this Agreement and shall remove: (a) all personal property brought onto the Property by Licensee; and (b) all of the encroachments from the Property in a manner reasonably satisfactory to City. If Licensee fails to commence performing the work required by this Section within thirty (30) calendar days following the expiration or earlier termination of this Agreement (or shorter time period, if called for by an emergency), or if Licensee fails to diligently perform all work required by this Section to its completion, then City shall have the right to perform such work and Licensee shall reimburse City for all costs and expenses reasonably incurred by City in performing such work (including the costs of City's staff time, administrative overhead and legal costs), within fifteen (15) days after notice of such costs is given to Licensee. Licensee waives all claims against the City for damage to Licensee's employees, the Statue and/or any equipment allowed on Easement Area by Licensee, resulting from such removal. Licensee shall be liable to the City for the City's reasonable costs of removing the equipment and Statue and repairing the Property. The provisions of this Section shall survive the expiration or earlier termination of this Agreement. 8.0 No City Liability Licensee shall undertake its obligations contained, in this Agreement at Licensee's sole cost and expense. The City shall have no responsibility or liability for the conduct or safety of any person or property (including the Statue) while carrying out Licensee's activities under this Agreement on the Property, except to the extent caused by the negligent or willful misconduct of the City or any of its employees. Licensee ' hereby acknowledges and agrees that Licensee shall be solely liable for any injury to or death of any person or damage to property (including the Statue) arising out of Licensee's access to, construction activities on, operation, maintenance and repair to the City Right of Way. 55575.18100\33489055.1 Page-4-of 10 9.0 Condition of City Right of Way Licensee accepts the Property "as is," "where is", subject to all faults condition as of the Effective Date, without any type of warranty. Without limiting the foregoing, neither City nor any agent of City has made any representation or warranty whatsoever, express or implied, with regard to the physical condition of the Property or the suitability of the Property for any particular purpose or use, including, any representation or warranty regarding the applicability or non-applicability of any laws, 'title to the Property, the soil or subsoil, surface or subsurface conditions, topography, possible Hazardous Substance, contamination, fill, drainage, access to public roads, availability of utilities, existence of underground storage tanks, applicability of or compliance with any environmental laws or any other matter of any nature whatsoever. 10.0 Indemnification To the fullest extent permitted by law, Licensee shall defend, indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the "Indemnified Parties"), from and against any and all liabilities, actions, suits, claims, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively "Claims"), including, but not limited to Claims arising from injuries to or death of persons (Licensee's employees included) or damage to property, to the extent such Claims arise from: (a) any wrongful intentional act or negligence of Licensee with respect to one or more rights or duties created by this Agreement; (b) any agreements that Licensee (or anyone claiming by or through Licensee) makes with a third party regarding ,the Licensed Area or Statue; or (c) any worker's compensation claim or determination relating to any employee of Licensee with respect to one or more rights or duties created by this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City, its elected officials, officers, employees, agents, and volunteers: Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Licensee's indemnification obligation or other liability under this Agreement. Licensee's indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final. This provision is intended for the benefit of third party Indemnified Parties not otherwise a party to this Agreement. 11.0 Insurance Licensee shall comply with the insurance requirements set forth in Exhibit "C", attached hereto and incorporated by reference herein, as well as any insurance requirements called for under the Loan Agreement. 12.0 Assignment This Agreement shall be binding on the successors and assigns of the Parties. Licensee may not assign any of its rights under this Agreement without the prior written approval of the City. • 55575.18100\33489055.1 Page -5-of 10 13.0 Notices All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the.address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting in the United States Post Office if by mail; or (iii) when sent if given by electronic mail. Notices or other communications shall be addressed as follows: To City: City of Palm Springs Attention: City Manager 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 Electronic mail: CityManager(c�palmspringsca.gov To Licensee: PS Resorts Attention: Executive Director 400 E. Tahquitz Canyon Way Palm Springs, California 92262 Electronic mail: office©ps-resorts.com 14.0 Attorney's Fees Should any action be brought arising out of this Agreement, including, without limitation, any action for declaratory or injunctive relief, the prevailing party shall be entitled to reasonable attorney's fees and costs. 15.0 Default; Remedies; Termination 15.1 Default of Licensee A. Licensee's failure to comply with any provision of this Agreement or use of the Property for activities that are not specifically allowed by this Agreement shall constitute a default. B. If the City Manager determines that Licensee is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Licensee in writing of such default. Licensee shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance as determined in the sole discretion of the City Manager. In the event Licensee fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Licensee shall be liable for any and all reasonable costs 55575.18100\33489055.1 Page-6-of 10 incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 15.5. C. If termination is due to the failure of the Licensee to fulfill its obligations under this Agreement, City may (but shall not be obligated to), after compliance with the provisions of this Section 15.1, take over the work required to maintain, repair, and/or remove the Statue in accordance with Section 7.0 of this Agreement and prosecute the same to completion by contract or otherwise, and the Licensee shall be liable for all costs and expenses incurred by the City in the performance of such work authorized hereunder. 15.2 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 15.3 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 15.4 Disputes. Prior to either Party commencing any legal action under this Agreement, and except in a situation that requires immediate attention, the Parties agree to try in good faith, to settle any dispute amicably between them. If a dispute has not been settled after forty-five (45) days of good-faith negotiations and as may be otherwise provided herein, then either Party may commence legal action against the other. 15.5 Termination without Cause. 15.5.1 The City shall have the right to terminate this Agreement for any or no reason, upon providing three hundred sixty five (365) days written notice. In addition to the foregoing, in the event of an emergency, including, without limitation, any damage or hazard created by the Statue or the activities permitted by this Agreement, the City may terminate this Agreement upon such shorter notice as is reasonable under the circumstances. 15.6 Removal of Statue. Upon termination, Licensee shall remove the Statue from the Right of Way and level the area in a clean and safe manner in accordance with the provisions of Section 7.0 of this Agreement and to the satisfaction of the City Manager. 55575.18100\33489055.1 Page-7-of 10 16.0 Entire Agreement This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees. 17.0 Waiver No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof. 18.0 Governing Law This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and Licensee covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 19.0 Interpretation This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs. 20.0 Severability Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such 55575.18100\33489055.1 Page-8-of 10 ti prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless. 21.0 Third Party Beneficiaries Except as may be expressly provided for herein, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party hereto. 22.0 Recitals The above-referenced Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same. 23.0 Corporate Authority - Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound. (SIGNATURES ON FOLLOWING PAGE) 55575.18100\33489055.1 Page-9 -of 10 IN WITNESS WHEREOF, the Parties have executed this Temporary Encroachment and License Agreement (Forever Marilyn) as of the date set forth above. "LICENSEE" CITY OF PALM SPRINGS, a California PS RESO- 'S, a, Cali orn a non-profit municipal corporation and charter city corporati• By: ,, jir do •` Di,•a David H. Ready, . • hi:f eculve $i icer City Manager Dated: G'__- 912 Dated: a Dt '2,01-0 ATT ST: By: Robert Hunt By: ,v Secretary rfthony Meji City Clerk APPROVED AS TO FORM: By. '>— Je Bal iVr City Attorney APPROVED V ail/COUNctt. 55575.18100\33489055.1 Page- 10-of 10 N............... ..:-..-4,01.-:;:•,*•.:-% EXHIBIT "A" ...4. . , ., MAP OF PROPERTY w4÷-E Fikr. i ..,..,44-,...4,...-, AND LICENSED AREA s„........,.... ..-J-i:7---.,t _ ..-, , ,1 . . . tr,.,, 0 - • -. . r..,''.r., '* ' . ,.• . . . . . . ' 11 -- - - ..ft"-•.''i,,,.,,'' 1.! 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Licensee shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City's Risk Manager, the insurance described herein for the duration of this Agreement, including any extension thereof, or as otherwise specified herein, against claims which may arise from or in connection with the performance of the encroachment hereunder by Licensee, its agents, representatives, or employees. In the event the City's Risk Manager determines that the Statue creates an increased or decreased risk of loss to the City, Licensee agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager. Licensee shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein. Unless otherwise authorized below, all insurance provided pursuant to this Agreement shall be on an occurrence basis. The minimum amount of insurance required hereunder shall be as follows: A. Workers' Compensation Insurance. Licensee shall obtain and maintain, in full force and effect throughout the term of this Agreement, workers' compensation insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Licensee agrees to waive and obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. If Licensee has no employees, Licensee shall complete the City's Request for Waiver of Workers' Compensation Insurance Requirement form. B. Commercial General Liability Insurance. Licensee shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least two million dollars ($2,000,000.00) and six million dollars ($6,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual liability, personal injury, independent consultants, broad form property damage, products and completed operations. C. Business Automobile Insurance. Licensee shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of one million dollars ($1,000,000.00) bodily injury and property damage. The policy shall include coverage for owned, non-owned, leased, and hired cars. D. Employer Liability Insurance. Licensee shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence basis with a policy limit of at least one million dollars ($1,000,000.00) for bodily injury or disease. 55575.18100\33489055.1 Exhibit C- 1- 2. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City's Risk Manager prior to commencing any work under this Agreement. Licensee guarantees payment of all deductibles and self-insured retentions. City reserves the right to reject deductibles or self-insured retentions in excess of $10,000, and the City's Risk Manager may require evidence of pending claims and claims history as well as evidence of Licensee's ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of$10,000. 3. Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Licensee pursuant to this Agreement: 3.1 For any claims related to this Agreement, Licensee's coverage shall be primary insurance as respects City and its officers, council members, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Licensee's insurance and shall not contribute with it. 3.2 Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City and its officers, council members, officials, employees, agents, and volunteers. 3.3 All insurance coverage and limits provided by Licensee and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage. 3.4 None of the insurance coverages required herein will be in compliance with these requirements if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City's Risk Manager and approved in writing. 3.5 Licensee agrees to require its insurer to modify insurance endorsements 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 endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the encroachment. It is Licensee's obligation to ensure timely compliance with all insurance submittal requirements as provided herein. 3.6 Licensee agrees to ensure that any other parties involved with the encroachment who are brought onto or involved in the encroachment by Licensee (including, without limitation, any contractor or subcontractor), provide the same minimum insurance coverage required of Licensee. Licensee agrees to monitor and 55575.18100\33489055.1 Exhibit C-2 - ^t Y review all such coverage and'assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Licensee agrees that upon request, all agreements with contractors or subcontractors and others engaged in the encroachment will be submitted to the City for review. 3.7 Licensee acknowledges and agrees that any actual or alleged failure on the part of the City to inform Licensee of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights hereunder in this or any other regard. 3.8 Licensee shall provide proof that policies of insurance required herein expiring during the term of this Agreement 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. Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage. 3.9 Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver 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. 3.10 The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this section. 3.11 Licensee agrees to provide immediate notice to City of any claim or loss against Licensee arising out of this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. 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, or to reduce or dilute insurance available for payment of potential claims. 3.12 Licensee agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Licensee may be held responsible for the payment of damages resulting from the Licensee's activities or the activities of any person or person for which the Licensee is otherwise responsible. 4. Sufficiency of Insurers Insurance required herein shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best's Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City's Risk Manager, due to unique circumstances. 5. Verification of Coverage: Licensee shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of 55575.18100\33489055.1 Exhibit C-3 - the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences on the placement of the Statue. City reserves the right to require Licensee's insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Workers' Compensation policies. Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate: A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City"may be included in this statement). B. "This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City may be included in this statement). C. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out. D. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers. In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences on the Statue. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Licensee's obligation to provide them. 55575.18100\33489055.1 Exhibit C-4-