Loading...
HomeMy WebLinkAbout00516C - KEYSER MARSTON ASSOCIATES INC ANALYSIS OF CONDO HOTEL INDUSTRY AND HARD ROCK HOTEL PROJECTS DOCUMENT TRACKING Page: 3 Report: Expired Documents Summary March 4, 2008 Condition: Oldest Date= / 1, Groups=COMMUNITY& ECONOMIC,ALL Services,ALL XREFs Document# Description Approval Date Expiration_Date Closed Date A0471C Prairie Schooner Parking Lot Valet Parking License 12/17/2003 10/01/2004 Company Name: Agua Caliente Band Of Cahuilla Indians /�• �� p-- 1 y Address: 600 E Tahquitz Canyon Way, Palm Springs, CA 92262 ✓� t �w Group: COMMUNITY& ECONOMIC d" Service: In File xRef: COMMUNITY& CONOMIC DEVELOPMENT 4f Ins. Status: Certificate and Policies are OK A0503C DDA for disposition of 14 aches of 38 acres for a shopping center f 11/16/2005 07/01/2007 Company Name: Geiger, LLC S �� w Address: , , t1 Group: COMMUNITY& ECONOMIC � Service: In File xRef: COMMUNITY& ECONOMIC Ins. Status: No Certificate on file. A0518C Ananlysis of Condo hotel and Westin & Hard Rock projects 12/22/2004 06/01/2006.-, - Company Name: Keyser Marston Associates rtfr y n �t Address: 55 pacific Avenue Mall, San Francisco, CA 94111 Group: COMMUNITY& ECONOMIC Service: In File xRef: JOHN RAYMOND 760 322-8321 Ins. Status: Certificate and Policies are OK ` k y n G CONSULTING SERVICES AGREEMENT Keyser Marston Associates, Inc. for Analysis of the Condo Hotel Industry and Westin and Hard Rock Hotel Projects THIS AGREEM�TT FOR CONSULTING SERVICES (the "Agreement") is made and entered into this —'day of 2007, by and between the Community Redevelopment Agency of the City of P.Im Springs, a public body, corporate and politic ("Agency"), and Keyser Marston Associates, Inc., a real estate and urban economics firm ("Consultant"). RECITALS A. Agency requires the services of a real estate economics firm to analyze the development pro formas of the two proposed Convention Center Hotel projects and to develop an industry survey and analysis of the condo hotel industry for the Agency ("Project"). B. Consultant has submitted to Agency a proposal to provide pro forma analysis and research 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 pro forma analysis and research 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 ServicesiWork 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. ©RIG(NAL END AND/OR AGREEMENT 1 Revised 2109/07 50709 r 1.2 Compliance with Law. All services rendered under this Agreement shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of Agency and any federal, state, or local governmental agency of competent jurisdiction. 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 a total amount of$24,500.00. 3.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall no later than the first working day of such month, submit to Agency in the form approved by City's Controller, 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 Changes. 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 50763v 2 Revised,2/09/07 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 Agency Board for each fiscal year covered by the Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to Agency. 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 Mom. 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 8.5 of this Agreement, this Agreement shall continue in full force and effect for a period of twelve months, commencing on October 1, 2006, and ending on December 31, 2007, 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: Cal Hollis, 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 5U7G3Y.'_ 3 Revised 2109107 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 Agency 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 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 Agency 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: Kevin Engstrom Principal and Senior Project Manager 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. 4 Revised:2109/07 507639 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 negligence or willful misconduct in the performance of 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. 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 computer models developed by Consultant, shall be the property of Agency and shall be delivered to Agency in PDF format 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. 5 Revised 2/09107 507G3Y.'_ 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 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. G Revised 2/09/07 K7G39 10. AGENCY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 10.1 Non-Liability of Agency Officers and Employees. 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 party 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. To Agency: Community Redevelopment Agency of the City of Palm Springs Attention: Executive Director 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 City of Palm Springs Attention: City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 To Consultant: Mr. Cal Hollis, Managing Principal Keyser Marston Associates, Inc. 500 South Grand Avenue, Suite 1480 Los Angeles, CA 90071 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. 7 Revised.2109107 50709.1 11.4 Severabilit _ 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. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. "AGENCY' Community Redevelopment Agency of the City of Palm Springs Date: `�� ' 1-3vz David H. Ready, J. . Executive � ?RV - iPOED BY 'EXF-C� ffn L.ihil%LL , 4J' =i APPR0VEb TO `FORM: ATTEST By: / By: DouglaO t. Holland, J mes Thompson, =_ _ Agency Counsel CONSULTANT Keyser Marston Associates, Inc. Date: _. By Cal Hollis Managing Principal 8 Revised:2/09107 507639.2 EXHIBIT "A" SCOPE OF SERVICES NEXT PAGE 9 Revised:2/09/07 sn7„a mJL � n VUYSER MARSTON ASS®CYAT']ES ADVISORS IN PUBLIC/PRIVATL REAL ESTATE DLVE•LOPMENT ADVISORS IN September 12, 2006 REAL ESTATE REDEVELOPMENT AFFORDABLE HOUSING ECONOMIC DE'VELOPMEN'I 5AN FRnNUSCO Mr. John Raymond A JERRY KEYSEB TIMOTHYTHYC.Ktl I Y Director of Community& Economic Development KATE EARLE FUNK City Of Palm Springs DEBHIE M RN 3200 East Tah uitz Canyon Wa R(IBf Ii'f J.WLTMORE 9 Y Y Palm Springs, California 92263-2743 Los ANGFLLE CALVIN L.HOLLIS II KATIiLECN H HEAD Re: Hotel Market and Feasibility Analysis IAMF5 A R M PAULC ANDERSON GREGORY D Sno-HOO pear John: SAN DIEGO JERJLb M.TRIMBLE As Keyser Marston Associates, Inc. (KMA) understands the situation, the City of Palm PAUL C MnRnn Springs (City)would like KMA to analyze the condominium hotel phenomenon and evaluate the financial feasibility of a 400-room hotel adjacent to the City's convention center. To this end, KMA prepared the following scope of services: 1. Task I —Condominium Hotel Overview: For this task, KMA will provide an overview of the condominium hotel phenomenon. This analysis will involve: a. Synthesizing KMA's experience with condominium hotels in the region- b. Identifying and describing current condominium hotel projects in the region. c. Contacting individuals involved in the hotel industry to gain their insights. d. Conducting a literature review of relevant articles and publications. e. KMA will prepare a PowerPoint presentation and executive summary of the analysis. SOD SOUTI-I GRAND AVENUE,SUITE 1480 > LOS ANGELES,CALIPORNIA 90071 > PHONE;213 622 8095 n FAX:213 622 5204 W WW.MSFRMARSTON.COM 0600010 KMA•KEE gbtl 99900,000,002 Mr. John Raymond September 12, 2006 City of Palm Springs Page 2 Based on the information collected in this Overview, KMA will: a. Review the history of condominium hotels. b. Identify the current market dynamics. Including hotels in the pipeline, successful projects, preferred locations and unit pricing. C. Consider the key issues affecting the phenomenon. Including, securities law, re-sales and unit sizing. d. Discuss the long-term prospects of the phenomenon. e. Identify methods for effectuating a successful condominium hotel. f. Consider the possible impacts on local jurisdictions. Including, covenants limiting use, the conversion of existing projects and the compatibility of this development type with convention center bookings. 2. Task II—Financial Feasibility Analysis: For this task, KMA will consider the financial feasibility of a proposed 400-room hotel assuming both conventional and condominium financing structures. This analysis will include the following: a. Review the Developer's proposal and follow up with any additional questions or concerns that are readily apparent in the submittal. If necessary, KMA will meet with the City and the Developer to address these issues- b. Conduct a financial analysis of the project based upon the submitted Developer pro forma and KMA's experience with similar projects in the region. This analysis will consider the feasibility of the project assuming both conventional and condominium financing. C. Develop an opinion as to the extent of Agency assistance, if any, necessary for the project to be feasible under both structures. d. Prepare a memorandum summarizing the results of our analysis. 0500010.KMA:KEE:9ba 99900.000.002 Mr. John Raymond September 12, 2006 City of Palm Springs Page 3 To undertake this analysis, KMA requests the following information from the Developer: a. Site plan detailing the entire scope of development. b. Development cost and operating pro forma. C. Market study(s) substantiating the projected room rates and occupancy levels. d. Identity of proposed operator. ESTIMATED SCHEDULE AND BUDGET The above scope of services can be completed within 8 weeks of receiving authorization to proceed. The analysis would be prepared on a time and expenses basis in accordance with the attached rate schedule with a not-to-exceed budget of$24,500, as summarized below. The budget includes KMA's attendance at two meetings during the course of the analysis and one meeting to present our conclusions. In addition, the budget assumes KMA's attendance at one city council meeting to present the findings of the Condominium Hotel Overview analysis. Task Budget Task I: Condominium Hotel Overview $17,000 Task It Market Feasibility& Project Scoping $7,500 Project Total' $24,500 ' Includes KMA's attendance at two meetings and one city council presentation during the analysis. Any additional meetings will be charged on a time and expense basis in accordance with the attached rate schedule. KMA estimates each additional meeting would be$2,000. We hope the above meets your needs and are available to discuss the above at your convenience. Sincerely, Cy ER M STON ASSOCIATES, INC. al Hollis Managing Principal I 0609010.KMA'KEE:abd va9vv,vvv.vv2 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) 10 Revised,2/!1 07 507G39.' 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 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 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: 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; 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, 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. 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 the completion of Consultant's services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier, or Revised:2/09107 W619'_ 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 A-, Class VII, 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. E. Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the Agency. 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- 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. 12 Revised 2109/07 S076M19