HomeMy WebLinkAboutA6470 - MRC ENGINEERING INC - ELECTRICAL SVCS FOR ENGINEERING & DESIGN OF NEW EMERGENCY GENERATOR FOR FIRE STATION #2 CONSULTING SERVICES AGREEMENT
MRC Engineering, Inc.
For Electrical Engineering Services for the Engineering & Design of a New Emergency Generator for
Fire Station #2 located at 300 N El Cielo Rd, Palm Springs.
THIS AGREEMENT FOR CONSULTING SERVICES ("Agreement') is made and entered into
on ltt�C2C:gjj, 201�, by and between the City of Palm Springs, a California charter city and
municipal corporation ("City'), and MRC Engineering Inc., a electrical engineering firm,
("Consultant'). City and Consultant are individually referred to as "Party" and are collectively
referred to as the "Parties".
RECITALS
A. City requires the services of a professional engineering firm, for the Engineering &
Design Services for a New Emergency Generator for Fire Station #2. ("Project').
B. Consultant has submitted to City a proposal to provide electrical and civil engineering
services for engineering and design of a new emergency generator installation to accommodate the
entire Fire Station #2 electrical load, to City under the terms of this Agreement-
C. Based on its experience, education, training, and reputation, Consultant is qualified
and desires to provide the necessary services to City for the Project.
D. City desires to retain the services of Consultant for the Project.
In consideration of these promises and mutual agreements, City agrees as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,
Consultant shall provide electrical engineering services to City as described in the Scope of
Services/Work attached to this Agreement as Exhibit "A" and incorporated by reference (the
"services" or "work"). Exhibit "A" includes the agreed upon schedule of performance and the
schedule of fees. Consultant warrants that all services and work shall be performed in a competent,
professional, and satisfactory manner consistent with prevailing industry standards. In the event of
any inconsistency between the terms contained in the Scope of Services/Work and the terms set
forth in this Agreement, the terms set forth in this Agreement shall govern.
1.2 Compliance with Law. Consultant services rendered under this Agreement shall
comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful
orders, rules, and regulations.
1.3 Licenses and Permits. Consultant 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 Familiarity with Work. By executing this Agreement, Consultant warrants that it has
carefully considered how the work should be performed and fully understands the facilities,
difficulties, and restrictions attending performance of the work under this Agreement.
ORIGINAL BID
4,"WOR AGREEMENT
2. TIME FOR COMPLETION
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit "A."
Consultant 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 Consultant. Delays shall not entitle
Consultant to any additional compensation regardless of the party responsible for the delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed for
the services rendered under this Agreement in accordance with the schedule of fees set forth in
Exhibit "A". The total amount of Compensation shall not exceed $9000.00.
3.2 Method of Payment. In any month in which Consultant wishes to receive payment,
Consultant shall submit to City an invoice for services rendered prior to the date of the invoice, no
later than the first working day of such month, in the form approved by City's finance director.
Payments shall be based on the hourly rates set forth in Exhibit "A" for authorized services
performed. City shall pay Consultant for all expenses stated in the invoice that are approved by City
and consistent with this Agreement, within thirty (30) days of approval of Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services=ork is
requested by City, Parties shall execute a written amendment to this Agreement, specifying all
proposed amendments, including, but not limited to, any additional fees. An amendment may be
entered into:
A. To provide for revisions or modifications to documents, work product, or work,
when required by the enactment or revision of any subsequent law; or
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's
profession.
3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being
appropriated by the City Council of City for each fiscal year. If such appropriations are not made,
this Agreement shall automatically terminate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
4.2 Schedule of Performance. All services rendered under this Agreement shall be
performed under the agreed upon schedule of performance set forth in Exhibit "A." Any time period
extension must be approved in writing by the Contract Officer.
4.3 Force Maieure. The time for performance of services 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 Consultant, if Consultant notifies the Contract Officer
within ten (10) days of 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.
After Consultant notification, the Contract Officer shall investigate the facts and the extent of any
necessary delay, and extend the time for performing the services for the period of the enforced delay
when and if, in the Contract Officer's judgment, such delay is justified. The Contract Officer's
determination shall be final and conclusive upon the parties to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement,
this Agreement shall continue in full force and effect until 1 year from the date of execution.
4.5 Termination Prior to Expiration of Term. City may terminate this Agreement at any
time, with or without cause, upon thirty (30) days written notice to Consultant. Where termination is
due to the fault of Consultant 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, Consultant shall immediately cease all services except such as
may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation
for all services rendered prior to receipt of the notice of termination and for any services authorized
by the Contract Officer after such notice. Consultant may terminate this Agreement, with or without
cause, upon thirty (30) days written notice to City.
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is designated
as being the principal and representative of Consultant authorized to act and make all decisions in its
behalf with respect to the specified services and work: Ralph A. Raya. It is expressly understood
that the experience, knowledge, education, capability, and reputation of the foregoing principal is a
substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall
be responsible during the term of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services under this Agreement. The foregoing
principal may not be changed by Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the Director of Public Works/City
Engineer or his/her designee ("Contract Officer"). Consultant shall be responsible for keeping the
Contract Officer fully informed of the progress of the performance of the services. Consultant shall
refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified,
any approval of City shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge,
education, capability, and reputation of Consultant, its principals and employees, were a substantial
inducement for City to enter into this Agreement. Therefore, Consultant 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.
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees, perform the
services required, except as otherwise specified. Consultant 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 Consultant's work product, result, and advice.
Consultant 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 Personnel. Consultant agrees to assign the following individuals to perform the
services in this Agreement. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the City
shall have the unrestricted right to order the removal of any personnel assigned by Consultant by
providing written notice to Consultant.
Name:
Ralph Raya
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance as
set forth in the attached Exhibit "B", incorporated herein by reference.
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent permitted by law, Consultant shall defend
(at Consultant'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 (Consultant'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 Consultant, its officers, employees, representatives, and agents, that arise
out of or relate to Consultant'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 Consultant's indemnification
obligation or other liability under this Agreement. Consultant'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.
7.2 Design Professional Services Indemnification and Reimbursement. If the
Agreement is determined to be a "design professional services agreement" and Consultant is a
"design professional" under California Civil Code Section 2782.8, then:
A. To the fullest extent permitted by law, Consultant shall indemnify, defend (at
Consultant's sole cost and expense), protect and hold harmless City and its elected officials, officers,
employees, agents and volunteers and all other public agencies whose approval of the project is
required, (individually "Indemnified Party"; collectively "Indemnified Parties") against any and all
liabilities, claims, judgments, arbitration awards, settlements, costs, demands, orders and penalties
(collectively "Claims"), including but not limited to Claims arising from injuries or death of persons
(Consultant's employees included) and damage to property, which Claims arise out of, pertain to, or
are related to the negligence, recklessness or willful misconduct of Consultant, its agents,
employees, or subcontractors, or arise from Consultant's negligent, reckless or willful performance of
or failure to perform any term, provision, covenant or condition of this Agreement ("Indemnified
Claims"), but Consultant's liability for Indemnified Claims shall be reduced to the extent such Claims
arise from the negligence, recklessness or willful misconduct of the City and its elected officials,
officers, employees, agents and volunteers.
B. The Consultant shall require all non-design-professional sub-contractors, used
or sub-contracted by Consultant to perform the Services or Work required under this Agreement, to
execute an Indemnification Agreement adopting the indemnity provisions in sub-section 7.1 in favor
of the Indemnified Parties. In addition, Consultant shall require all non-design-professional sub-
contractors, used or sub-contracted by Consultant to perform the Services or Work required under
this Agreement, to obtain insurance that is consistent with the Insurance provisions as set forth in
this Agreement, as well as any other insurance that may be required by Contract Officer.
8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer
reports concerning the performance of the services required by this Agreement, or as the Contract
Officer shall require.
8.2 Records. Consultant shall keep complete, accurate, and detailed accounts of all
time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant shall
keep such books and records as shall be necessary to properly perform the services required by this
Agreement and enable the Contract Officer to evaluate the performance of such services. The
Contract Officer 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 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this Agreement shall
be the property of City. Consultant shall deliver all above-referenced documents to City upon
request of the Contract Officer or upon the termination of this Agreement. Consultant shall have no
claim for further employment or additional compensation as a result of the exercise by City of its full
rights or ownership of the documents and materials. Consultant may retain copies of such
documents for Consultant's own use. Consultant shall have an unrestricted right to use the concepts
embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records, documents,
and other materials prepared by Consultant in the performance of services under this Agreement
shall not be released publicly without the prior written approval of the Contract Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement. Consultant 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.
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 Consultant 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 Consultant. 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.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City shall
be personally liable to the Consultant, 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 Consultant or its successor, or for
breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. No officer or employee of the City shall have any direct or
indirect financial interest in this Agreement nor shall any such officer or employee participate in any
decision relating to the Agreement which effects their financial interest or the financial interest of any
corporation, partnership, or association in which he/she is, directly or indirectly, interested in violation
of any state statute or regulation. Consultant warrants that Consultant 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.
10.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its
heirs, executors, assigns, and all persons claiming under or through them, that there shall be no
discrimination or segregation in the performance of or in connection with this Agreement regarding
any person or group of persons on account of race, color, creed, religion, sex, marital status,
disability, sexual orientation, national origin, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 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.
To City: City of Palm Springs
Attention: City Manager/City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: MRC Engineering Inc.
Attn: Ralph Raya
72-880 Fred Waring Drive
Suite C-11
Palm Desert, CA 92260
11.2 Integrated Agreement. This Agreement contains all of the agreements of the parties
and supersedes all other written agreements.
11.3 Amendment. No amendments or other modifications of this Agreement shall be
binding unless through written agreement by all Parties.
11.4 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.
11.6 Successors in Interest. This Agreement shall be binding upon and inure to the
benefit of the Parties' successors and assignees.
11.6 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.
11.7 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.
11.8 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.
(SIGNATURES ON NEXT PAGE)
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated
below. "CITY"
City of Palm Springs
Date: r� �J� By: J. Barakian
Director of Public Works/City Engineer
ATTEST
B
APPROVEDmes Thompson, o 2/c Zo(
�E1'ARMENT HEAD City Clerk
'—' "CONSULTANT'
Q MRC Engineering Inc.
72-880 Fred Waring Drive
Suite C-11
At wmv Palm Desert, CA 92260
Date: I2,- q • 13 By:
ign e
RI9DPH A . RA:-rq• PRE,UpallT
(Print Name and Title)
(This Agreement must be signed in the above space by
one of the following: Chairman of the Board,
President or any Vice President)
Date: By:
(Signature)
(Print Name and Title)
(This Agreement must be signed in the above space by
one of the following: Secretary, Chief Financial
OJJicer or any Assistant Treasurer)
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California County of I
On AS z3 o, before me, EMra Schulte, Notary Public
vow, •.....He,e fiaerl Name m'd Tiae of am Olfirer
personally appeared _ ��4t A. 7l n f it, _.
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capaclty(iee), and that by i erltheir signatu`e(S)on the
instrument the person(a), or the amity upon behalf of
which the persona)acted,executed the instrument,
ELVIRA SCHULTE
• Commission,Y 1879521 1 certify under PENALTY OF PERJURY under the laws
-® Notary Public -California i of the State of California that the foregoing paragraph is
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My Comm. Expires Mar 6, 2014
WITNESS my hand and offs ial seal.
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Description of Attached Document
Title or Type of Document: ----------
Document Date: _.,_ Number of Pages:
Signer(s)Other Than Named Above: _
Capecity(tas)Claimed by Signer(s)
Signer's Name•,_.._ Signers Name:_____...
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EXHIBIT "A"'
A. Scope of Services:
1. Provide electrical engineering services for engineering and design of a new
emergency generator to accommodate the entire building load for Fire Station
#2 located at 300 N El Cielo Rd, Palm Springs.
2. Attend design coordination meetings as required.
3. Coordinate the location of the new generator and electrical switchgear and transfer
switch.
4. Coordinate a new electrical service to the new switchgear equipment location.
5. Provide civil drawings as required to construct a new equipment pad including
space for an external fuel tank and a fuel containment zone.
6. Design the electrical feeders to the new electrical distribution system in the
building.
7. Provide drawings to replace the old electrical equipment as required and remove
the existing electrical service in the building. The new electrical service to be
located adjacent to the new generator.
8. Provide a complete set of electrical construction documents that includes all plans,
details, diagrams, notes, specifications and calculations needed for Building
Department plan check submittals, bidding and construction. Plans are to
include details for any necessary modifications to the building and specific
methods for directing new conduits on or through the building and into the
existing service location.
B. Construction Support Services:
1. Provide assistance and Request for Information (RFI) responses to questions
during the bidding period.
2. Provide site visits and final inspection.
3. Answer questions and make corrections as necessary as part of the Building
Department plan check and permitting process.
4. Review all construction shop drawings and product submittals for compliance with
the construction documents and specifications.
5. Provide change order drawings and directives when required due to changes in the
design.
6. Respond to contractor request for information (RFI) during construction phase.
EXHIBIT "A"
CONTINUED
C. Compensation:
1. Compensation for the Scope of Services identified in Section A and B shall be on a
fixed fee basis as follows:
Electrical/Construction Support $4,000.00
Civil Design: $4,500.00
Reimbursible/Direct Costs NTE $ 500.00
Total $9,000.00
2. Compensation for reimbursable expenses (printing, mileage, delivery services)
shall be invoiced at direct cost.
3. Compensation rates for work performed on an hourly basis or hourly with a
maximum shall be based on the following rates;
4. Schedule "A" work shall be completed within 60 Calendar days from the date
specified in the notice to proceed.
Principal $195.00 Senior Engineer $125.00
Project Manager $125.00 Designer $ 95.00
Cad Operator $65.00 Administration $ 65.00
D. Terms:
1. Project invoice statements will be presented on a monthly based upon the
percentage of work completed for each phase of work completed.
2. In the event the project is abandoned, the client will be present an invoice for work
performed and reimbursable expenses up to the date the consultant was notified
to stop work.
EXHIBIT "B"
INSURANCE
1. Procurement and Maintenance of Insurance. Consultant shall procure and
maintain public liability and property damage insurance against all claims for injuries against
persons or damages to property resulting from Consultant's performance under this Agreement.
Consultant 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.
Consultant 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 Consultant'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-
1. 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;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00) per occurrence;
3. 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:
X required is not required;
4. 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 Consultant has no employees, Consultant shall complete
the City's Request for Waiver of Workers' Compensation Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement, Consultant'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 Consultant's insurance and shall not contribute with it. For Workers' Compensation
and Employer's Liability 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.
l3
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required,
and if Consultant provides claims made professional liability insurance, Consultant 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 Consultant'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 Consultant's
services under this Agreement. Consultant 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. Consultant 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
Consultant'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.
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.
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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
Consultant'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) Consultant 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. Consultant 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.
- END OF SECTION -
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