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HomeMy WebLinkAbout24F390 - Palm Springs Art Museum55575.18100\42990827.1 1 FUNDING AGREEMENT 24F390 Palm Springs Art Museum This FUNDING AGREEMENT (“Agreement”) is made and entered into on July 1, 2024 (“Effective Date”), by and between the City of Palm Springs, a California charter city and municipal corporation (“CITY”), and Palm Springs Art Museum, Inc. a California non- profit corporation (“RECIPIENT”). RECITALS A. CITY and RECIPIENT are mutually interested in funding of programs and services to the Palm Springs community. B. RECIPIENT has agreed to provide such services to the Palm Springs community pursuant to the terms of this Agreement. C. Based on its experience and reputation, RECIPIENT is qualified to provide the services and desires to provide such services. D. CITY desires to support the services of RECIPIENT. NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the parties hereto agree as follows: AGREEMENT 1. SERVICES OF RECIPIENT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, RECIPIENT agrees to provide services as generally described in Exhibit “A” attached hereto and incorporated herein by this reference (collectively, “the Services”). 1.2 Compliance with Law. All services rendered under this Agreement shall be provided in accordance with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations. 1.3 Licenses and Permits. RECIPIENT shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. 1.4 Promotional Literature. In the event RECIPIENT distributes promotional literature advertising the Services, CITY shall be acknowledged as a sponsor of the Services. 1.5 Volunteer Coordination. To the extent reasonable, if requested by CITY, RECIPIENT agrees to notify its employees, members, or volunteers of opportunities to volunteer at CITY events. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 2 1.6 No Additional Funding. The Agreement represents the full understanding and agreement of the Parties with respect to the compensation to RECIPIENT, and any further compensation or sponsorship by CITY to RECIPIENT shall be made, if at all, pursuant to a separate, written agreement executed by both Parties. 2. TIME FOR COMPLETION The time for completion of the services to be performed by RECIPIENT is an essential condition of this Agreement. RECIPIENT shall prosecute regularly and diligently the work of this Agreement according to the agreed upon schedule of performance set forth in Exhibit “A.” RECIPIENT shall not be accountable for delays in the progress of its work caused by any condition beyond its control and without the fault or negligence of RECIPIENT. Delays shall not entitle RECIPIENT to any additional compensation regardless of the party responsible for the delay. 3. PAYMENT 3.1 Amount of Payment. CITY agrees to provide RECIPIENT with funding in an amount not to exceed Three Hundred Thousand Dollars ($300,000) to be used for providing the Services, paid as set forth below. 3.2 Method of Payment. Based on the City Manager’s determination, payment will be made by CITY of a minimum of four (4) payments, distributed at least three (3) months apart. The first such payment in the amount of Seventy-Five Thousand Dollars ($75,000) shall be made on the following date: July 1, 2024. Subsequent payments each in the amount of Seventy- Five Thousand Dollars ($75,000) shall be made as follows: October 1, 2024, January 1, 2025, April 1, 2025. Subsequent payments shall not be made unless RECIPIENT provides an invoice and a written progress report showing the work performed in pursuit of the SERVICES. Submission of such progress report shall be provided at least semi- annually, with the first such report being due within six (6) months following the Effective Date, and subsequent reports being due six (6) months thereafter. 3.3 Emergency Payments. Notwithstanding the payment schedule provided above, in the event RECIPIENT requires emergency funding, RECIPIENT shall make written request therefor, which request shall be reviewed and considered by the City Manager, Finance Director and City Attorney. In no event shall any request for an emergency payment cause the maximum amount of payment, set forth in section 3.1 above, to be exceeded. 3.4. Changes. In the event any change or changes to the Services is requested by CITY, the parties hereto shall execute a written amendment to this Agreement setting forth with particularity all terms of such amendment including, but not limited to, any additional funding. 4. PERFORMANCE SCHEDULE Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 3 4.1 Time of Essence. Time is of the essence in the performance of this Agreement. 4.2 Schedule of Performance. RECIPIENT shall complete the Services no later than at the end of the Term. Any remaining unused funds after such date shall be returned to the CITY. 4.3 Force Majeure. The time for performance of any obligation to be rendered under this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of a party, if that party notifies the other party within ten (10) days following the commencement of such condition. Unforeseeable causes include, but are not limited to, acts of God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather. 4.4 Term. Unless earlier terminated in accordance with Section 3.5 of this Agreement, this Agreement shall continue in full force and effect from July 1, 2024, and lasting until June 30, 2025, unless extended by mutual, written agreement of the parties. 4.5 Termination Prior to Expiration of Term. CITY reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to RECIPIENT. Where termination is due to the fault of RECIPIENT and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the CITY. Upon receipt of the notice of termination, RECIPIENT shall immediately cease all services except such as may be specifically approved by CITY Representative. RECIPIENT shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the CITY Representative after such notice. RECIPIENT may terminate this agreement, with or without cause, upon thirty (30) days written notice to CITY. 5. COORDINATION OF WORK 5.1 Representative of Recipient. The following principal of RECIPIENT is designated as being the principal and representative of RECIPIENT authorized to act and make all decisions on its behalf with respect to the specified services and work: Adam Lerner, Executive Director/Chief Executive Officer, Palm Springs Art Museum. 5.2 Representative of City. The following principal of CITY is designated as being the principal and representative of CITY (“CITY Representative”) authorized to act and make all decisions on its behalf with respect to this Agreement: Cindy Cairns, Special Assistant to the City Manager, City of Palm Springs. 5.3 Prohibition Against Subcontracting or Assignment. RECIPIENT shall not contract with any other individual or entity to perform any services required under this Agreement without the CITY's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of CITY. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 4 5.4 Independent Contractor. Neither CITY nor any of its employees shall have any control over the manner, mode, or means by which RECIPIENT, its agents or employees, perform the services required, except as otherwise specified. RECIPIENT shall perform all required services as an independent contractor of CITY and shall not be an employee of CITY and shall remain at all times as to CITY a wholly independent contractor with only such obligations as are consistent with that role; however, CITY shall have the right to review RECIPIENT’s work product, result, and advice. RECIPIENT shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of CITY. 5.5 Designated Oversight and Staff Responsibility. A designated point person from CITY staff shall be assigned to oversee compliance, monitor reports, and audit program expenses as needed. This individual will act as the liaison between CITY and RECIPIENT and ensure adherence to all contractual obligations. 5.6 Material Changes Affecting RECIPIENT. In the event of material internal changes with RECIPIENT’s organization, RECIPIENT shall notify the CITY Representative, in writing, within ten (10) calendar days of such change. For purposes of this Section, a material change includes any change in RECIPIENT’s board of directors, executive management, managing or member partners (including their ownership shares), RECIPIENT’s policies or procedures, or any written allegation, investigation into, or finding of any violation of federal, state, or local law or regulation. In addition, any other event or occurrence that materially affects RECIPIENT’s operations shall be reported to the CITY Representative, in writing, within ten (10) calendar days. 6. INSURANCE RECIPIENT shall procure and maintain, at its sole cost and expense, policies of insurance as required by the City Attorney, as specified in Exhibit “B.” 7. INDEMNIFICATION. 7.1 Indemnification. To the fullest extent permitted by law, RECIPIENT shall defend (at RECIPIENT’s sole cost and expense), 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, demands, 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 (RECIPIENT’s employees included), for damage to property, including property owned by CITY, from any violation of any federal, state, or local law or ordinance, and from errors and omissions committed by RECIPIENT, its officers, employees, representatives, and agents, that arise out of or relate to RECIPIENT’s performance under 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 RECIPIENT’s indemnification obligation or other liability under this Agreement. RECIPIENT’s indemnification obligation shall survive the Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 5 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. 8. RECORDS AND REPORTS 8.1 Reports. RECIPIENT shall prepare and submit to the CITY Representative a report concerning the performance of the Services required by this Agreement within 30 days of completion of the Services or upon expiration of this Agreement, whichever occurs first. The report shall include all promotional materials developed for the Programming and additional media and related items pertaining to the programming. 8.2 Records. RECIPIENT shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the CITY Representative to evaluate the performance of such services. The CITY Representative shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 8.3 Cost Records. RECIPIENT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred while performing under this Agreement. RECIPIENT shall make such materials available at its offices at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment for inspection by CITY and copies shall be promptly furnished to CITY upon request. 8.4 Financial Records. RECIPIENT shall provide to CITY an Annual Financial Report, including a balance sheet, income statement, and a description of the RECIPIENT’s operations prepared in compliance with generally accepted auditing principles (GAAP) and certified by a licensed Certified Public Accountant no later than eight (8) months following the close of RECIPIENT’s fiscal year end on September 30, of each year, in addition to the Internal Revenue Form 990 (to be filed within the same time) concerning the performance of the Services required by this Agreement, and again within thirty (30) days following completion of the Services or upon expiration of this Agreement, whichever occurs first. 8.5 Progress Reports. RECIPIENT must submit regular progress reports detailing the status of the services and any use of funds. 8.6 Invoices. All reimbursement requests must be accompanied by detailed invoices and corresponding progress reports. 8.7 Annual Audit. In addition to the information required above, in the amount set forth in Section 3.1 is over Seventy-Five Thousand Dollars ($75,000), RECIPIENT shall provide an independent audit at least annually during the term of this Agreement. RECIPIENT may request, and the Finance Director shall have the authority to approve or Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 6 disapprove, that RECIPIENT meet the above-referenced audit requirement by conducting and providing to CITY an audit that is focused on RECIPIENT’s internal controls. 9. ENFORCEMENT OF AGREEMENT 9.1 California Law. This Agreement shall be construed and interpreted both as to validity and 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 RECIPIENT covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 9.2 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. 9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of CITY shall be deemed to waive or render unnecessary CITY’s consent to or approval of any subsequent act of RECIPIENT. Any waiver by either party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement. 9.4 Rights and Remedies are 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. 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. 9.5 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 injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement. 11. CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 11.1 Non-Liability of City Officers and Employees. No officer or employee of CITY shall be personally liable to the RECIPIENT, or any successor-in-interest, in the event of any default or breach by CITY or for any amount which may become due to the Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 7 RECIPIENT or its successor, or for breach of any obligation of the terms of this Agreement. 11.2 Conflict of Interest. RECIPIENT acknowledges that no officer or employee of the CITY has or shall have any direct or indirect financial interest in this Agreement, nor shall RECIPIENT enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one year thereafter. RECIPIENT warrants that RECIPIENT has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement. 11.3 Covenant Against Discrimination. In connection with its performance under this Agreement, RECIPIENT shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). RECIPIENT shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to CITY’s lawful capacity to enter this Agreement, and in executing this Agreement, RECIPIENT certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any RECIPIENT activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that RECIPIENT is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non- discrimination in city contracting. 12. MISCELLANEOUS PROVISIONS 12.1 Notice. Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either party may change its address by notifying the other party of the change of address in writing. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 8 To City: CITY OF PALM SPRINGS Cindy Cairns, Special Assistant to City Manager Cindy.Cairns@palmspringsca.gov 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 (760) 322-8362 To RECIPIENT: PALM SPRINGS ART MUSEUM Adam Lerner, Executive Director alerner@psmuseum.org 101 Museum Drive Palm Springs, CA 92262 (760) 322-4849 12.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and supersedes all other written agreements. 12.3 Amendment. No amendments or other modifications of this Agreement shall be binding unless through written agreement by all Parties. 12.4 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties. 12.5 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees. 12.6 Third Party Beneficiary. Except as may be expressly provided for in this Agreement, 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 to this Agreement. 12.7 Recitals. The above-referenced Recitals are hereby incorporated into the Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same. 12.8 Authority. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 9 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below. “CITY” City of Palm Springs Date:__________________________ By: _______________________________ Scott C. Stiles City Manager APPROVED AS TO FORM: ATTEST By: ___________________________ By: _______________________________ Jeffrey S. Ballinger Brenda Pree City Attorney City Clerk “RECIPIENT” Palm Springs Art Museum, Inc. a California non- profit corporation Date: __________________________ By : ______________________________ Adam Lerner, Chief Executive Officer Date: __________________________ ______________________________ Jack Peirce, Chief Financial Officer Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 12/5/2024 12/5/2024 12/5/2024 55575.18100\42990827.1 10 EXHIBIT “A” SCOPE OF SERVICES/WORK A. Free Thursday Evenings at the Palm Springs Art Museum Free Thursday Evenings: RECIPIENT shall provide Free Thursday Evenings at the Palm Springs Art Museum for forty-eight (48) weeks, whether consecutive or non-consecutive, excepting holidays and closures caused by an emergency (the “Free Thursday Evenings Period”). RECIPIENT will provide CITY with prominent acknowledgement of sponsorship at each Free Thursday Evenings event, on RECIPIENT’S website and social media, and in Insight magazine. B. Annual Report RECIPIENT will provide CITY with a report showing attendance at the Free Thursday Evenings Program at the times specified in Section 3.2 of this Agreement. C. City of Palm Springs Corporate Sponsorship Member RECIPIENT shall provide CITY the following Member benefits as part of CITY’s Corporate Sponsorship: 1. Complimentary Insider’s Circle Membership for Designated City Representative. 2. Fifteen (15) admission passes for distribution. 3. Digital and print issues of Insight, RECIPIENT’S member magazine. 4. Four (4) private tours of the Museum for Groups up to ten (10), by appointment. 5. Six (6) Concierge Service VIP Admission passes for distribution. 6. Recognition in selected print material, Insight Magazine and on Museum website with CITY logo and hyperlink. D. City Employee Appreciation Event RECIPIENT to provide CITY a “City of Palm springs Employee Appreciation Day” whereby CITY employees receive free admission to the Museum. Employees may make a reservation online and must show employee ID to receive free admission. E. Art Party 2025 Gala RECIPIENT shall provide CITY with ten (10) tickets to the Palm Springs Art Museum’s 2025 Annual Gala and photograph with the headlining talent. F. Arts Education Programming Subject to prior written approval of the City Manager, RECIPIENT shall provide the CITY up to four (4) opportunities to provide free arts-related education programming in line with the vision and goals of the museum and in conjunction with Free Thursday Evening events, dates to be determined with the Museum’s department of Education and Community Engagement. Museum staff, City staff and the Public Arts Commission shall jointly direct the development and modification of special education events. Any costs associated with the free arts- Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 11 related education programming shall be incurred by the CITY. Prior to events, RECIPIENT shall assist with marketing via newsletters, press releases and social media. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 12 EXHIBIT “B” INSURANCE PROVISIONS Including Verification of Coverage, Sufficiency of Insurers, Errors and Omissions Coverage, Minimum Scope of Insurance, Deductibles and Self-Insured Retentions, and Severability of Interests (Separation of Insureds) Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 13 INSURANCE 1. Procurement and Maintenance of Insurance. RECIPIENT shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from RECIPIENT’s performance under this Agreement. RECIPIENT shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement. RECIPIENT shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of RECIPIENT’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers. 2. Minimum Scope of Insurance. The minimum amount of insurance required under this Agreement shall be as follows: (i) Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate; (ii) Automobile liability insurance with limits of at least one million dollars ($1,000,000.00) per occurrence; (iii) Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is: _________ required ____X____ is not required; (iv) Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If RECIPIENT has no employees, RECIPIENT shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form. 3. Primary Insurance. For any claims related to this Agreement, RECIPIENT’s insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of RECIPIENT’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 14 Insurance only, the insurer shall waive all rights of subrogation and contribution it may have against City, its elected officials, officers, employees, agents, and volunteers. 4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required, and if RECIPIENT provides claims made professional liability insurance, RECIPIENT shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of RECIPIENT’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of RECIPIENT’s services under this Agreement. RECIPIENT shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy. 5. Sufficiency of Insurers. Insurance required in this Agreement 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 otherwise acceptable to the City. 6. Verification of Coverage. RECIPIENT shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, effecting all of 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. City reserves the right to require RECIPIENT’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and 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: 1. "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). 2. "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). 3. "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. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59 55575.18100\42990827.1 15 4. 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. 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 RECIPIENT’s obligation to provide them. 7. Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) RECIPIENT shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amount of any deductible or self-insured retention under the policy. RECIPIENT guarantees payment of all deductibles and self-insured retentions. 8. Severability of Interests (Separation of Insureds). This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability. Docusign Envelope ID: 6C015054-B959-470D-B4F4-AB2804F39D59