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HomeMy WebLinkAbout06053 - KEYSER MARSTON ASSOC INC ECONOMIC ANALYSIS OF COMMUNITY DYNAMICS PROJECT Page 1 of 3 Kathie Hart From: John Raymond Sent: June 14, 2012 9:21 AM 7 To: Kathie Hart Subject: RE: Keyser Marston Insurance Certificate We're done with Keyser Marston. This can be closed. From: Kathie Hart Sent: Monday, June 11, 2012 4:50 PM Cc: John Raymond Subject: RE: Keyser Marston Insurance Certificate JP: May this agreement be closed? Is the work complete? If yes, then I will not tell them their ins docs are not complete. Kathie Hart, CMC Chief Deputy City Clerk City of Palm Springs (760)323-8206 3200 E Tahquitz Canyon Way u (760)322-8332 Palm Springs, CA 92262 ®Kathie.14art@PalmSprinasCA.goov Please note that City Hall is open 8 a.m. to 6 p.m.Monday through Thursday,and closed on Fridays at this time. From: Diane Chambers [mailto:dchambers@keysermarston.com] Sent: June 11, 2012 4:49 PM To: Kathie Hart Cc: John Raymond; Jay Thompson; Kathe Head Subject: RE: Keyser Marston Insurance Certificate Kathie, Thanks for sending a copy of the contract for my files. I see that it expired on December 15, 2011. Diane From: Kathie Hart [mailto:Kathie.Hart@palmsprings-ca.gov] Sent: Monday, June 11, 2012 4:34 PM To: Diane Chambers Cc: John Raymond; Jay Thompson Subject: RE: Keyser Marston Insurance Certificate Diane: Thank you for sending it to me. Unfortunately, it was adressed to another department 06/14/12 CONSULTING SERVICES AGREEMENT Keyser Marston Associates, Inc. Economic Analysis of Community Dynamics 51-unit townhome project THIS AGREEMENT FOR CONSULTING SERVICES (the "Agreement") is made and entered into this 17 day of December, 2010, by and between the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic ("Agency"), and Keyser Marston Associates,Inc., a Redevelopment and Urban Economic Firm("Consultant"). RECITALS A. Agency requires the services of a Redevelopment and Urban Economics Consultant for assistance with the pro forma analysis and feasibility of a 51-unit moderate income affordable housing project in Palm Springs("Project"). B. Consultant has submitted to Agency a proposal to provide redevelopment Urban Economics services to Agency pursuant to the terms of this Agreement. C. Based on its experience, education, training, and reputation, Consultant is qualified to provide the necessary services to Agency for the Project and desires to provide such services. D. Agency desires to retain the services of Consultant for the Project. NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, Agency agrees to retain and does hereby retain Consultant and. Consultant agrees to provide services to the Agency as follows: AGREEMENT 1. CONSULTANT SERVICES 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide redevelopment Urban Economics services to Agency as described in the Scope of Services/Work attached to this Agreement as Exhibit "A" and incorporated herein by reference (the "services" or "work"), which 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 in accordance with all standards prevalent in the industry. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in the main body of this Agreement,the terms set forth in the main body of this Agreement shall govern. 1.2 Compliance with Law. All services rendered under this Agreement shall be provided by Consultant in accordance with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders,rules, and regulations promulgated thereunder. Y Revised:3/23/07 507639.2 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. 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. For the services rendered pursuant to this Agreement, Consultant shall be compensated and reimbursed, in accordance with the schedule of fees set forth in Exhibit"A,"which total amount shall not exceed$7,500.00. 3.2 Method of Pa ment. In any month in which Consultant wishes to receive payment, Consultant shall no later than the tenth working day of such month, submit to Agency in the form approved by Agency's finance director, an invoice for services rendered prior to the date of the invoice. Payments shall be based on the hourly rates as set forth in Exhibit "A" for authorized services performed. Agency shall pay Consultant for all expenses stated thereon, which are approved by Agency consistent with this Agreement, within thirty (30) days of receipt of Consultant's invoice. 3.3 Chances. In the event any change or changes in the Scope of Services/Work is requested by Agency, 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 fees. An amendment may be entered into: A. To provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; 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 therefore by the Board of Directors of Agency for each fiscal year covered by the Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to Agency. 2 Revised:3/23/07 507639.2 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 pursuant to this Agreement shall be performed pursuant to the agreed upon schedule of performance set forth in Exhibit"A." The extension of any time period must be approved in writing by the Contract Officer. 4.3 Force Majeure. The time for performance of services to be rendered pursuant to this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but 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 if Consultant shall within ten (10) days of the commencement of such condition notify the Contract Officer who shall thereupon ascertain 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, and 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 9.5 of this Agreement, this Agreement shall continue in full force and effect for a period of five months, commencing on December 15, 2010, and ending on May 15, 2011, unless extended by mutual written agreement of the parties. 5. COORDINATION OF WORK 5.1 Representative of Consultant. The following principal of Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the services and work specified herein and make all decisions in connection therewith: Kathleen Head, Managing Principal. It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for Agency 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 hereunder. 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 Executive Director, or his/her designee. It shall be the Consultant's responsibility to keep the Contract Officer, or his/her designee, fully informed of the progress of the performance of the services and Consultant shall refer any decisions that must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder 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 Agency to enter into this Agreement. Therefore, Consultant shall not contract with any other individual or entity to perform in whole or in part the services required hereunder without the express written approval of Agency. In addition, neither this 3 Revised:3/23/07 507639.2 Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law,without the prior written approval of Agency. 5.4 Independent Contractor. Neither Agency 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 herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of Agency and shall not be an employee of Agency and shall remain at all times as to Agency a wholly independent contractor with only such obligations as are consistent with that role; however, Agency 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 Agency. 5.5 Personnel. Consultant agrees to assign the following individuals to perform the services set forth herein. Consultant shall not alter the assignment of the following personnel without the prior written approval of the Contract Officer. Acting through the Executive Director, the Agency shall have the unrestricted right to order the removal of any personnel assigned by Consultant by providing written notice to Consultant. Name: Title: Kathleen Head Managing Principal 6. INSURANCE Consultant shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in Exhibit"B,"which is attached hereto and is incorporated herein by reference. 7. INDEMNIFICATION. To the fullest extent permitted by law, Consultant shall defend (at Consultant's sole cost and expense), indemnify, protect, and hold harmless Agency, 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 Agency, 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, which Claims arise out of or are related to Consultant's willful misconduct or negligence in the performance of services under this Agreement, but excluding such Claims arising from the negligence or willful misconduct of the Agency, 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 hereunder. 4 Revised:3/23/07 507639,2 8. RECORDS AND REPORTS 8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 8.2 Records. 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, with the exception of Consultant's proprietary computer models, shall be the property of Agency and shall be delivered to Agency upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights or ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. 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 and 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 Agency and copies thereof shall be promptly furnished to Agency 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 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 Agency shall be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any 5 Revised:3/23/07 507639,2 default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 9.3 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 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. 9.4 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. 9.5 Termination Prior to Expiration of Term. Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant, except that 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 Agency. Upon receipt of the notice of termination, Consultant shall immediately cease all services hereunder 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 thereafter. Consultant may terminate this Agreement, with or without cause, upon thirty (30) days written notice to Agency. 10. AGENCY OFFICERS AND EMPLOYEES, NON-DISCRIMINATION 10.1 Non-Liability of Agency Officers and Emplace. No officer or employee of Agency shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by Agency 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 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 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. Either parry may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated seventy-two (72)hours from the time of mailing if mailed as provided in this Section. 6 Revised:3/23/07 507639.2 To Agency: City of Palm Springs Community Redevelopment Agency Attention: Executive Director and Assistant Secretary 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 To Consultant: Keyser Marston Associates, Inc. 500 South Grand Avenue, Suite 1480 Los Angeles, CA 90071 Attention: Kathleen Head, Managing Principal 11.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and cannot be amended or modified except by written agreement. 11.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 11.4 Severability. 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 hereunder. 11.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. Revised:3/23/07 507639.2 [SIGNATURE PAGE SEPARATELY ATTACHED] IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. "AGENCY" City of Palm Springs Community Redevelopment Agency Date: ��w . ab aoll _ B � David H.Ready Executive Director APPROVED 11/1 oP PROVED AS TO FM: ATTEST: Bye 1ADouglas C.Ho am Thompson, Agency Counsel Assistant Secretary - "CONSULTANT" Keyser Marston Associates, Inc. Date: X Z l By :_ PQA—, Kathleen Head,Managing Principal & Vice President Date: J es A. Rabe, Senior Principal &Assistant Secretary g Revised:3123/07 5076392 r CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California /a�lcforma County o �-0 On ==- /)- ,>�/v before me, Fr wit Mud Nam Tier of Vw personally appeared who prkmed to me on the basis of saitisWtory wAdenoe to be fhe person(s)whose name(s)Wares wA scribed to the within Instrumnt and acknowledged to me that heAdmAhey mooned the some in hislhlerltheir authorized capacity(jes),and that by his(herflheir sigr646e(s)on the %1MyC0=.Exp.jUW22.2012 ATtiERINE 1.BRATTON InMrrient the pemon(s), or the entity upon behalf of ry� comm.#1803W rnrn which the person(s)acted,exxxded the lnstmmsnL WLOS ANGIMM COMP I k rtify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand and offal seal. i 5igrtatu ct. -L Plans Noary som Ab" apaw" opnonrat Though the irrlorma w bellow is not required by few ft may prow ushrafale to penKm re/yW an Ow dwua)" and could prevent hauakdard nwwwal nerd rmflsdww*of Ws firm to awdw gacurne t Description of Attached 1polcumerd This Or Type of Document �y7re z 4[ -ram•, a c� ::�> ✓'y Document Date: �c71" - Number of Pages: Signer(s)Other Than Named Above: Clapecity(les)Claimed by Signer(s) Siignees Name: __._. _ Signer's Name: ❑ Individual ❑individual ❑ Corporate Officer---Title(s)z ❑Corpomte Ofer—Titie(s): C( Partner---0 Limited ❑General ©Partner—©Urnited C General Ci Attorney in Fact ❑Attorney in Fact 0 Trustee Tap o:farm trace ❑Thistee Tap of ftm*here ❑ Guardian or Conservator. ❑Guardan or Conservator ❑ Other. ❑Outer: Signor Is Representing; Signer is Represenling: OZaprtVManalNoaryAewriatlon+el30P�9oCaAue,P9.Baer.2AG�•Gvmrrveh,CA91319�4et.wunuiNMienetrJoWyep Irrt�b9e7 Racrder:CdiM4E7vm1aBpGe7&BdS7 9 Revised:3/23/07 507639.2 EXHIBIT "A" CONSULTANT'S SCOPE OF SERVICES/WORK Including, Schedule of Fees and Schedule of Performance (See attached Letter) 10 Revised:3/23/07 507639.2 r nf-rl"--> E S R MARSTON ASSOCIATES TES ADVISORS IN I'GIIII..IC/PRIVA'IE REAL. ESTATE DEVE.LCOPMEN`I•. December 16, 2010 John Raymond K""PAM11 Director of Community & Economic Development RU-;aar.VUOVWN r APi{'41<M IKI HM:MNO City of Palm Springs t ONOMk IIt11FIOIPA14T P.O. Box 2743 �r W�I �.,., Palm Springs, California 92263-2743 ,% 1ug, w Kt:WSF:R 1'Iatw m c'K...'lt7 KM IAMr Ht NK Dear John: C?ew 6b K7:ura ILc:rtall l I.4+.'t•v>'da6)tt t: Keyser Marston Associates, Inc. (KMA) is pleased to submit the following proposal to provide consulting services to the Palm Springs Agency (Agency). Specifically, KMA is K-Ar'"N 11.IIIAP proposing to evaluate the financial characteristics of the 51 unit income restricted IAMFS A.RAM. 9.at;8.c,NmlmoN condominium project(Project) proposed to be developed on Agency-owned property fli"i 'D `"""`"' located at the intersection of San Rafael Drive and North Indian Canyon Drive (Site). Kt%1NI IM,0a K�MM 111ID,1 k.I,..R(-,m i y ""`"` "```'"`""` It is our understanding that the Agency and the Com Dyn PS (Developer) have been negotiating the terms of a Disposition and Development Agreement(DDA) over the past `"`zM.D'M '"'"'"'` several years. Over the course of the negotiating period, the dynamics of the residential I's 4 ti,'..:MMIR.T real estate market have changed dramatically. At this time, the Agency is seeking financial consulting services to assist in determining whether the proposed Project is financially feasible. In addition, the Agency would like to explore an array of other disposition options if the currently proposed project is deemed to be infeasible. The following letter identifies the information KMA will require before we can evaluate the Project's financial characteristics. In addition, this letter identifies the scope of services KMA is proposing to provide, the timeline for completion and a fee estimate. INFORMATION NEEDS KMA has received a pro forma analysis and a market pricing evaluation from the Developer. KMA will need to receive the following information before we can commence work on the proposed financial analysis: 1. Agency Submissions: 500 SOUTH GRANDAVENUE,SUITE 14E10 Y LOSANGELES.CALIFORNIA 90071 I~ PHONE:2 13 622 8095 Y^ IAX:21.36225204 1011028;KMA:KHH:gbd WVi+1V KEYSERMARSi"ON.0 C;M 99900,900 John Raymond December 16, 2010 City of Palm Springs Page 2 a. The Exclusive Negotiating Agreement executed by the Agency and the Developer. b. The size of the development site. C. Any relevant pro forma analyses previously submitted by the Developer. d. A City of Palm Springs staff review of the public permits and fees costs that will be imposed on the currently proposed Project. 2. Developer Submissions: a. A legible site plan and detailed project description that include the gross and net building area; the amenities to be provided; and the num ber and type of parking spaces. b. KMA would like to receive more detailed information pertaining to the estimated Project costs. The additional information needs are: i. The estimated contractor's construction budget, direct cast contingency allowance, fees and profit. ii. An identification of whether or not the Developer has assumed that prevailing wages will be paid to the contractors and subcontractors that will be constructing the Project. iii. The anticipated construction/absorption periods, and the interest rate assumptions applied in estimating the carrying costs. iv. The brokerage fees, closing costs and home buyer warranty costs. SCOPE OF SERVICES KMA proposes to provide the following analysis to the Agency i n the form of a technical memorandum: 1. Review and evaluate the accuracy and reasonableness of the Developer's cost projections; 2. Review and evaluate the proposed sales revenue projections; 3. Provide an evaluation of the Project's overall financial viability. 1011028;KMA:KHH:gbd 99900,900 John Raymond December 16, 2010 City of Palm Springs Page 3 4. Identify alternative disposition strategies that could potentially be undertaken if the currently proposed Project is deemed to be financially infeasible. BUDGET/TIMING KMA proposes to complete the financial analysis within two weeks of receiving the Agency's authorization to proceed, and the requested information. KMA will undertake the proposed scope of work on a time and materials basis with a not to exceed budget of $7,500, If the Agency requests any additional services, such as the analysis of additional scenarios or KMA attendance at any meetings, the services will be provided on a time-billed basis. The applicable billing rate schedule follows: Managing Principals * $280.00 Senior Principals * $270.00 Principals " $250.00 Managers " $225.00 Senior Associates $187.50 Associates $167.50 Senior Analysts $150.00 Analysts $130.00 Technical Staff $95.00 Administrative Staff $85.00 *Rates for individuals in these categories will be increased by 50% for time spent in court testimony. We look forward to being of assistance on this assignment. Please do not hesitate to call if the proposed scope of services can be modified to better meet your needs. Sincerely, KEYSER MARSTON ASSOCIATES, INC. Kathleen Head 1011028;KMA:KHH:gbd 99900.900 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) ]1 Revised:3123/07 507639.2 Insurance Consultant shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, in a form and content satisfactory to the Agency, 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 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 extension thereof, and shall not be cancelable without thirty (30) days advance written notice to Agency of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the Agency, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by Agency 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 Agency, its elected officials, officers, agents, employees, and volunteers. A. Minimum Scope of Insurance. The minimum amount of insurance required hereunder 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; 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, and, 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 Agency's Request for Waiver of Workers' Compensation Insurance Requirement form. For any claims related to this Agreement, Consultant's insurance coverage shall be primary insurance as respects Agency and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by Agency 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 Agency, its elected officials, officers, employees, agents, and volunteers. B. Errors and Omissions Coverage. 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 12 Revised:3/23107 5076392 the completion of Consultant's services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier, or equivalent coverage with another company, 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 Agency of the purchase of the required tail insurance or continuation of the professional liability policy. C. 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 Vll, or better,unless otherwise acceptable to the Agency. D. Verification of Coverage. Consultant shall furnish Agency 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 Agency before work commences. Agency 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 Community Redevelopment Agency of 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 Community Redevelopment Agency of the City of Palm Springs, its officials, employees, and agents are named as an additional insured for any and all work performed with the Agency." 2. "This insurance is primary and non-contributory over any insurance or self- insurance the Agency may have for any and all work performed with the Agency." 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 Agency, its elected officials, officers, employees, agents, and volunteers. In addition to the endorsements listed above,the Community Redevelopment Agency of the City of Palm Springs shall be named the certificate holder on the policies. 13 Revised:3/23/07 507639.2 All certificates of insurance and endorsements are to be received and approved by the Agency 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. E. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Agency prior to commencing any work or services under this Agreement. At the option of the Agency, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Agency, its elected officials, officers, employees, agents, and volunteers; or, 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. F. 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. 14 Revised:3123/07 5076392