CITY OF MONTEREY REQUEST FOR PROPOSALS TO PROVIDE ON-CALL REALTOR SERVICES FOR AFFORDABLE HOUSING

Transcription

1 CITY OF MONTEREY REQUEST FOR PROPOSALS TO PROVIDE ON-CALL REALTOR SERVICES FOR AFFORDABLE HOUSING Release Date: Friday, January 19, 2018 Due Date: Friday, February 16, 2018, 4:00 p.m. Housing Programs Office City of Monterey 353 Camino El Estero Monterey, CA (831)

2 TABLE OF CONTENTS INTRODUCTION... 2 SCOPE OF WORK... 2 THE CITY S ROLE... 2 REQUIRED PROPOSAL CONTENT... 2 PROPOSAL SUBMITTAL... 3 EVALUATION CRITERIA OF PROPOSALS... 3 EVALUATION AND SELECTION PROCESS... 4 GENERAL CONDITIONS... 5 EXHIBIT A... 7 AGREEMENT FOR PROFESSIONAL SERVICES... 7 EXHIBIT B...13 SUMMARY OF INDEMNITY AND INSURANCE REQUIREMENTS

3 REQUEST FOR PROPOSAL On-Call Realtor Services for Affordable Housing INTRODUCTION This Request for Proposal (RFP) is to obtain proposals from qualified Licensed Real Estate Brokers (hereinafter, "Consultant") to work on an on-call basis to provide services related to the sale of City-owned low- and moderate-income deed restricted residential properties, and possible resale purchase of other units that are offered to the City. The successful Consultant will be entering into a two (2) year agreement with the City with an option to extend for an additional two (2) year term. This agreement shall be for an annual amount not-to-exceed $100,000, although there is no guaranteed minimum amount of work for the selected consultant(s). The City reserves the right to enter into multiple professional services agreements for this work at the City s discretion. SCOPE OF WORK The successful Consultant will be responsible for the complete sales transactions and purchase transactions including, but not limited to: Complete market analysis, utilizing the MLS listing service, advertising, showing properties to prospective buyers, holding open houses, conducting contract presentations to the City, and the completion of final real estate closing transactions through escrow and recordation. Additionally, the City of Monterey Housing Programs Office will provide the successful Consultant with a list of income qualified households who might be interested in purchasing the subject properties. This shall serve as the initial list for potential buyers. THE CITY S ROLE The selected firm will be required to work closely with the Housing Programs Office staff. City staff will provide coordination and oversight of the work, and will serve as a resource in a collaborative effort with the chosen firm(s). REQUIRED PROPOSAL CONTENT A. All proposals must include the following minimum information: 1) A cover letter with the name and contact information of the proposed lead consultant and any associates or other staff included in your proposal; 2) A description of the qualifications, relevant experience, and knowledge of the proposed lead consultant and any associate consultants who will be assigned to work for the City under this agreement. Specifically, the proposal must address: a. Experience conducting real estate transactions for affordable housing properties in the local housing market; and b. A description of techniques, and procedures for each of the scope of work items with an explanation of how the proposer plans to approach the tasks and the steps that will be taken to complete the task including methods and tools. 3) Description of staffing levels that will be devoted to the City s projects, experience of the assigned staff, and the types of projects managed by the assigned staff. 2

4 4) The name of the individual(s) who will be responsible for actually performing the duties for the City, including resume(s) outlining each individual s experience. 5) References: Proposals shall include names, addresses, telephone numbers and contact information for at least three (3) recent organizations (other public agencies are preferred) for which comparable services have been rendered in the past five (5) years; 6) Copy of active Broker License(s). 7) Copy of active Certificate of Insurance documenting compliance with minimum insurance requirements outlined in Insurance Requirements section below. Fee Schedule. 8) Fee Schedule. The consultant shall provide their standard realtor services compensation schedule. The fee proposal must include all potential project fees, as well as an hourly fee schedule for consulting services. PROPOSAL SUBMITTAL Proposals must meet the following criteria to be considered: 1) Submit three (3) bound, sealed proposal copies and one electronic copy (CD or flash drive) in PDF no later than 4:00 p.m. Friday, February 16, 2018 to: Maryn Ljubimow, Administrative Analyst Housing Programs Office 353 Camino El Estero Monterey, CA Firms required to interview may be required to submit additional copies. 2) The proposal must be submitted in a sealed envelope clearly marked on the outside with the Proposer s name and RFP On-Call Realtor Services for Affordable Housing. 3) Proposals received incomplete or late, for any reason, shall not be accepted. 4) Please provide any information on potential conflicts of interest that the company may have related to the services requested under this RFP. The selected firm may be required to submit a Statement of Economic Interest form. EVALUATION CRITERIA OF PROPOSALS An evaluation committee of City staff will review and evaluate all proposals received by the due date based on the following criteria: 1) Understanding of the City s affordable housing goals: Based on the information provided by the City and past experience in Monterey, is the proposer able to demonstrate an understanding of the City s affordable housing program and requirements? 3

5 2) Staff: Do the qualifications of key personnel to be assigned to work on City affordable housing projects demonstrate an understanding of the affordable housing requirements? Do assigned personnel have requisite education, experience, and professional qualifications? 3) Familiarity with Locality: Does the firm have familiarity with the City of Monterey and the surrounding area required for successfully providing realtor services for the City s affordable housing properties? How close are the firm s permanent offices to the Monterey Peninsula? 4) Specific Management Approach: How will the firm apply its management techniques and resources? Has the firm provided sufficient assurance that realtor services will be conducted in a timely, efficient, and professional manner? 5) Experience: Has the proposer demonstrated the ability to successfully provide services for projects of a similar complexity and nature as described herein? In particular, the selection team will be most interested in the proposer s track record with completing residential sales of low- and moderate-income deed restricted ownership units. Does the proposer have experience working with affordable housing projects, including working with HUD, CDBG, and HOME program requirements? 6) Organization: Are the qualifications of the firm s personnel suitable for the anticipated projects; and, does the firm s organizational structure show sufficient depth for its present workload? Is the level of staffing sufficient to produce quality work in a timely manner? 7) Reputation: Are the firm s references from past clients and associates favorable; and, does the firm show financial and operational stability? 8) Services Offered: Does the firm offer the breadth and quality of services required for the project? Please note: The successful proposer shall be expected to fully meet all representations made in its proposal, including demonstration of project understanding, work plan, project schedule, project team and cost proposal. EVALUATION AND SELECTION PROCESS 1) At the completion of the review process, proposers will be ranked based on the criteria described above and the City will select the highest ranked firm, or at the City s option, the most highly qualified ones will form a shortlist. 2) Should the City elect to establish a shortlist, firms on the shortlist will be asked to formally present their proposal in Monterey and respond to interviewer questions. The interview panel will be the evaluation committee. The presentation and interview session will not exceed one hour per proposer. 3) Following presentations/interviews (if applicable), the evaluation committee will complete its ranking. 4) Following successful negotiations of all terms, the recommended proposer and contracts will be referred to the City Council for final award. 4

6 GENERAL CONDITIONS 1) Acceptance of Proposals: The City reserves the right to waive minor inconsistencies in any proposal, and further reserves the right to reject any and all proposals, cancel the RFP, or reissue the RFP. The City reserves the right to enter into agreements with multiple firms as a result of this solicitation. 2) Property of City: All proposals submitted in response to this RFP will become the property of the City and will not be returned. The City reserves the right to make use of any information or ideas contained in the proposals. The proposal itself shall not constitute a contract, but will, if accepted, be incorporated into the agreement between the City and the selected proposer. Public Nature of Proposal Material: At such times as a formal agreement with one proposer is made, all submittals received in response to this Request for Proposal become a matter of public record and shall be regarded as public records, with the exception of those elements in each submittal which are business or trade secrets and plainly marked as Confidential, Trade Secret, or Proprietary or if disclosure is not required under the California Public Records Act. Any submittal which contains language purporting to render all or significant portions of the proposal Confidential, Trade Secret, or Proprietary, shall be regarded as non-responsive. Although the California Public Records Act recognizes that certain confidential trade secret information may be protected from disclosure, the City may not be in a position to establish that the information that a proposer submits is a trade secret. If a request is made for information marked Confidential, Trade Secret, or Proprietary, the City will provide the proposer who submitted the information with reasonable notice to allow the proposer to seek protection from disclosure by a court of competent jurisdiction. 3) 4) Validity: The proposer agrees to be bound by its proposal for a period of ninety (90) days commencing from the date proposals are due, during which time the City may request clarification or correction of the proposal for the purpose of evaluation. Amendments or clarifications shall not affect the remainder of the proposal, but only the portion so amended or clarified. 5) Permits and Licenses: Proposer, and all of proposer s sub consultants, at its and/or their sole expense, shall obtain and maintain during the term of any agreement, all appropriate permits, certificates and licenses including, but not limited to, a City Business License, which will be required in connection with the performance of services hereunder. 6) Oral Communications: The City will not be bound by oral explanations or instructions given at any time during the review process or after the award. Oral explanations given during the review process and after award become binding only when confirmed in writing by an authorized City official. Written responses to question(s) asked by one proposer will be provided to all proposers who received this Request for Proposal. 7) Amendments: Questions regarding this RFP must be directed to Maryn Ljubimow via at ljubimow@monterey.org. No other City staff member may be contacted regarding this RFP. Answers to questions submitted to the City regarding the RFP will be provided via 5

7 and copied to each firm that has submitted a contact address. If you intend to submit a proposal, it is recommended that you provide a contact address to Mrs. Ljubimow. Questions must be received in writing no later than 4:00 p.m., Friday, February 2, ) Proposal Cost: The cost of developing the proposal is the sole responsibility of the proposer. The City is not liable for any costs incurred by those submitting proposals. The person or organization responding to the request shall hold the City harmless from any and all liability, claim or expense whatsoever incurred by or on behalf of that person or organization. 9) Proposal Submission: Proposers may submit proposals by any means (e.g., U.S. Mail, Fed Ex, courier, etc.). Proposals must be received at the address noted by the deadline. 10) Proposer s Representative: The person signing the proposal must be a legal representative of the firm and authorized to bind the firm to an agreement in the event of the award. 11) Professional Services Agreement/Insurance and Indemnification Requirements: A sample agreement has been provided as Exhibit A for the proposer s review and comment. If a proposer wishes to take exception to any of the terms and conditions contained in the consultant agreement, these should be identified specifically; otherwise, it will be assumed that the proposer is willing to enter into the agreement as it is written. Failure to identify contractual issues of dispute can later be the basis for the City disqualifying a proposer. Any exceptions to terms, conditions, or other requirements must be clearly stated. Otherwise, the City will consider that all items offered are in strict compliance with the RFP, and the successful proposer will be responsible for compliance. The City will consider such exceptions as part of the evaluation process, which may constitute grounds for rejection of the proposal. The agreement will not be executed by the City without first being signed by the proposer. 12) Insurance: General liability, automobile, professional liability, and worker s compensation insurance are required in the amount set forth in Appendix C Summary of Indemnity and Insurance Requirements. Exhibits: A. Professional Services Agreement B. Summary of Indemnity and Insurance Requirements 6

8 EXHIBIT A AGREEMENT FOR PROFESSIONAL SERVICES On-Call Realtor Services for Affordable Housing Agreement THIS AGREEMENT is executed this day of, 201_, by and between the CITY OF MONTEREY, a municipal corporation, hereinafter called "City", and [Name of Consultant], hereinafter called "Consultant". IT IS HEREBY MUTUALLY AGREED AS FOLLOWS: 1. Scope. Consultant hereby agrees to provide to the City of Monterey, as the scope of services under this Agreement, the following services: [General description of the scope of work], as further described on the following attachments: City s Request for Proposal which outlines the scope of services and work under this contract (attached hereto as Exhibit A ), and the approved Consultant s Proposal dated [insert date] (attached hereto as Exhibit B ). In case of any conflicting terms it is the express intent of the parties hereto that the order of precedence and controlling language shall be as follows: No. 1 this Agreement; No. 2 City s Request for Proposal (Exhibit A ); No. 3 Consultant s proposal (Exhibit B ) [add additional items if applicable, No. 4 X, insert Exhibits sequentially in the order controlling terms should apply.]. 2. Timely Work. Consultant shall perform all tasks in a timely fashion, as set forth more specifically in paragraph 3 below. Failure to so perform is hereby deemed a material breach of this Agreement, and City may terminate this Agreement with no further liability hereunder, or may agree in writing with Consultant to an extension of time. 3. Term. The work under this Agreement shall commence [Start date of contract] and shall be completed by [End date of contract] unless City grants a written extension of time as forth in paragraph 2 above. 4. Compensation. City agrees to pay and Consultant agrees to accept as full and fair consideration for the performance of this Agreement, an hourly fee as set forth in Consultant s Proposal (Exhibit B), in a total amount not to exceed Thousand Dollars ($.00). Compensation under this Agreement shall become due and payable 30 days after City s approval of Consultant s submission of [a written invoice] or [monthly written invoices] to the (name/title of City representative). Written invoices shall clearly show the account numbers for each project and shall include a copy of timesheets or invoices from sub-consultants. The payment of any compensation to Consultant hereunder shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed. 5. Additional Services. In the event that City should request additional services not covered by the terms of this Agreement, said services will be provided by Consultant and paid for by City only after a fee for said services has been agreed upon between Consultant and City project manager and the project manager provides written authorization for the additional work. 7

9 6. Schedule for Performing Services. For the project subject to this Agreement, Consultant shall perform the services in accordance with the following phases and/or milestone dates: [List phases and/or milestone dates or attach Design Schedule as Exhibit C to this Agreement to include: specific milestones, funding, design, design review, construction and other deadlines] 7. Staffing Plan. Consultant shall provide City with the names of the key professional personnel assigned to perform the services under this Agreement as well as a general description of the services they will be assigned to perform in Exhibit D Consultant s Staffing Plan. The plan shall also identify the names and contact information of Consultant s representative(s) authorized to act on their behalf with respect to this Agreement. 8. Subconsultant Plan. If Consultant intends to utilize the services of any subconsultants to perform the services under this Agreement, the names of those subconsultants and a general description of the services they will be assigned to perform shall be attached hereto as Exhibit E Subconsultant Plan. 9. Meet and Confer. Consultant agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by City to insure timely and adequate performance of this Agreement. 10. Indemnification. Consultant hereby agrees to the following indemnification clause: To the fullest extent permitted by law (including, without limitation, California Civil Code Sections 2782 and ), Consultant shall defend (with legal counsel reasonably acceptable to the City of Monterey), indemnify and hold harmless the City of Monterey and its officers, designated agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against claims, loss, cost, damage, injury expense and liability (including incidental and consequential damages, court costs, reasonable attorneys' fees, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Consultant, any Subconsultant, anyone directly or indirectly employed by them, or anyone that they control (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to the extent that such Liabilities are caused in part by the negligence, or willful misconduct of such Indemnitee. Notwithstanding the provisions of the above paragraph, Consultant agrees to indemnify and hold harmless the City from and against any and all claims, demands, defense costs, liability, expense, or damages arising out of or in connection with damage to or loss of any property belonging to Consultant or Consultant's employees, contractors, representatives, patrons, guests or invitees. Consultant further agrees to indemnify City for damage to or loss of City of Monterey property to the proportionate extent they arise out of Consultant's negligent performance of the work associated with this agreement or to the proportionate extent they arise out of any negligent act or omission of Consultant or any of Consultant's employees, agents, contractors, representatives, patrons, guests or invitees; excepting such damage or loss arising out of the negligence of the City. 8

10 11. Insurance. Consultant shall submit and maintain in full force all insurance as described herein. Without altering or limiting Consultant's duty to indemnify, Consultant shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability: Commercial general liability insurance including but not limited to premises, personal injuries, bodily injuries, products, and completed operations, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate. Professional Liability Insurance. Consultant shall maintain in effect throughout the term of this Agreement professional liability insurance with limits of not less than $1,000,000 per claim and $2,000,000 in the aggregate. Consultant will either maintain or cause to be maintained professional liability coverage in full force or obtain extended reporting (tail) coverage (with the same liability limits) for at least three years following City's acceptance of the work. Commercial automobile liability insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence. Workers' Compensation Insurance. If Consultant employs others in the performance of this Agreement, Consultant shall maintain workers' compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence for employer's liability. Other Insurance Requirements A. All insurance required under this Agreement must be written by an insurance company either: admitted to do business in California with a current A.M. Best rating of no less than A:VI; or an insurance company with a current A.M. Best rating of no less than A: VII. Exception may be made for the State Compensation Insurance Fund when not specifically rated. B. Each insurance policy required by this agreement shall be endorsed to state that City of Monterey shall be given notice in writing at least thirty days in advance of any cancellation thereof, except 10-day notice for nonpayment of the premium. C. The general liability and auto policies shall: Provide an endorsement naming the City of Monterey, its officers, officials, and employees as additional insureds under an ISO CG or ISO or their equivalent. 9

11 Provide that such insurance is primary and non-contributing insurance to any insurance or self-insurance maintained by the City. Contain a "Separation of Insureds" provision substantially equivalent to that used in the ISO form CG or their equivalent. Provide for a waiver of any subrogation rights against the City via an ISO CG or its equivalent. D. Prior to the start of work under this Agreement, Consultant shall file certificates of insurance and endorsements evidencing the coverage required by this agreement with the City of Monterey Risk Management Office. Consultant shall file a new or amended certificate of insurance promptly after any change is made in any insurance policy which would alter the information on the certificate then on file. E. Neither the insurance requirements hereunder, nor acceptance or approval of Consultant s insurance, nor whether any claims are covered under any insurance, shall in any way modify or change Consultant s obligations under the indemnification clause in this Agreement, which shall continue in full force and effect. Notwithstanding the insurance requirements contained herein, Consultant is financially liable for its indemnity obligations under this Agreement. F. Any deductibles or self-insured retentions must be declared to and approved by the City of Monterey. At the option of the City of Monterey, either: the insured shall reduce or eliminate such deductibles or self-insured retentions as respects the City of Monterey, its officers, officials, employees and volunteers; or Consultant shall provide a financial guarantee satisfactory to the City of Monterey guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 12. Ownership of Work and Copyrights. Upon completion of the work under this Agreement, ownership, title and copyrights to all materials and deliverables produced as part of this Agreement will automatically be vested in the City and no further agreement will be necessary to transfer ownership to City. 13. Licensing Standard of Care. Consultant represents as follows: that it is experienced in the professional services and a specialist in the work performed under this Agreement; is duly organized, existing and in good standing under applicable state law; and is properly licensed and/or certified to perform the work specified under this Agreement, including but not limited to possession of a current City business license, and will only employ persons and subconsultants with all required licenses and certifications. 14. Substitution of Consultant Personnel. The key personnel of Consultant or any subconsultants listed in Consultant s proposal or in Consultant s Staffing Plan and Subconsultant Plan (Exhibits D and E hereto) and assigned to perform the work under this Agreement may not be substituted with or replaced by other personnel or subconsultants without the advance written consent of City. If, at any time, the City reasonably objects to the performance, experience, qualifications or suitability of any of Consultant s employees or subconsultants, then Consultant shall, on written request from the City, replace such employee 10

12 or subconsultant. Consultant shall replace the individual with a qualified individual acceptable to the City. 15. Non-Discrimination. No discrimination shall be made by Consultant or any subconsultant in the hiring and employment of persons for the work under this Agreement or any other City project because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of any person. Every person in violation of this section is subject to the penalties in accordance with the provisions of Section 1735 of the Labor Code Termination. City may terminate this Agreement upon ten days' written notice. The amount of damages, if any, as a result of such termination may be decided by negotiations between the parties or before a court of competent jurisdiction. 17. Agency. In performing the services specified under this Agreement, Consultant is hereby deemed to be an independent Consultant and not an agent or employee of City. 18. Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto and supersedes any and all prior agreements, whether oral or written, relating to the subject matter thereof. Any modification of this Agreement will be effective only if it is in writing signed by both parties hereto. 19. Validity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated in any way. 20. Assignment of Interest. The duties under this Agreement shall not be assignable, delegable, or transferable without the prior written consent of City. Any such purported assignment, delegation, or transfer shall constitute a material breach of this Agreement upon which City may terminate this Agreement and be entitled to damages. 21. Conflict of Interest. Consultant hereby certifies that it does not now have, nor shall it acquire, any financial or business interest that would conflict with the performance of services under this Agreement. 22. Form 700. Consultant is required to file a Form 700 in compliance with the City s Conflict of Interest Code (Resolution No C.S. and any amendment thereof) unless a written determination by the City Manager is made modifying or eliminating said requirement, or unless otherwise exempted by law. 23. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. 24. Laws. Consultant agrees that in the performance of this Agreement it will reasonably comply with all applicable State, Federal and local laws and regulations. This Agreement shall be governed by and construed in accordance with the laws of the State of California and the City of Monterey. 11

13 IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first above written in Monterey, California. CITY OF MONTEREY CONSULTANT Mayor or City Manager Consultant Name 12

14 EXHIBIT B SUMMARY OF INDEMNITY AND INSURANCE REQUIREMENTS For Non-Design Professionals Please provide a copy of these indemnity and insurance requirements to your insurance broker or insurer to confirm compliance. INDEMNIFICATION AND HOLD HARMLESS To the fullest extent permitted by law, Contractor agrees to indemnify, investigate, defend (at Contractor s sole cost and expense and with legal counsel reasonably approved by City), protect and hold harmless, the City of Monterey, its officials, officers, employees, agents, and representatives from and against any and all claims [including, without limitation, claims for bodily injury or death (including but not limited to Contractor, persons employed by Contractor, persons acting on behalf of Contractor, and third parties) or damage to property], demands, obligations, losses, damages, actions, causes of action, suits, judgments, fines, penalties, liabilities, defense costs, and expenses (including, without limitation, reasonable attorneys fees, disbursements, and court costs, and all other professional, expert, or Contractors fees and costs) of every kind or nature arising out of or in connection with or relating to any work or activities of Contractor (or Contractor s contractors or subcontractors, if any) conducted under this Agreement or arising out of the failure on Contractor s part to perform their obligations under this agreement. Except as provided by law, the indemnification provisions stated above shall apply regardless of the existence or degree of fault of the City, except for those claims which arise out of the active negligence, sole negligence, or willful misconduct of the City of Monterey. Notwithstanding the provisions of the above paragraph, Contractor agrees to assume all risk and to indemnify and hold harmless the City from and against any and all claims, demands, defense costs, liability, expense, or damages of any kind or nature arising out of or in connection with damage to or loss of any property belonging to Contractor or Contractor s employees, contractors, representatives, patrons, guests, or invitees. Contractor further agrees to indemnify City for damage to or loss of City property arising out of or in connection with Contractor s work associated with this Agreement or arising out of any act or omission of Contractor or any of Contractor s employees, agents, contractors, representatives, patrons, guests, or invitees; excepting such damage or loss arising out of the negligence of the City. INSURANCE Without altering or limiting Contractor s duty to indemnify, Contractor shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability: 1. Contractor s Commercial General Liability Insurance including but not limited to personal injuries, bodily injuries, premises/operations, completed operations/products, contractual liability, independent contractors (if any part of the work is to be subcontracted), broad form property damage and cross-liability coverage with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate. 13

15 2. Commercial Automobile Liability Insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing services under this Agreement, with a combined single limit of not less than $1,000, Workers Compensation Insurance. If Contractor employs others in the performance of this Agreement, Contractor shall maintain workers compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $100,000 per occurrence for employer s liability. Workers compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents, and subcontractors. OTHER INSURANCE REQUIREMENTS 1. All insurance required under this Agreement must be written by an insurance company either: Admitted to do business in California with a current A.M. Best rating of no less than A:VI; or An insurance company with a current A.M. Best rating of no less than A:VII. Exception may be made for the State Compensation Insurance Fund when not specifically rated. 2. Each insurance policy required by this Agreement shall be endorsed to state that City of Monterey shall be given notice in writing at least thirty days in advance of any change, cancellation, or non-renewal thereof. 3. The general liability and auto policies shall: Provide an endorsement naming the City of Monterey, its officers, officials, and employees as additional insureds under an ISO CG or equivalent. Provide that such insurance is primary and non-contributing insurance to any insurance or self-insurance maintained by the City. Contain a Separation of Insureds provision substantially equivalent to that used in the ISO form CG Provide a waiver of any subrogation rights against the City. 4. Prior to the start of work under this Agreement, Contractor shall file certificates of insurance and endorsements evidencing the coverage required by this agreement with the City department contact and such must be acceptable to the City Risk Management Office. Contractor shall file a new or amended certificate of insurance and requisite endorsements promptly after any change is made in any insurance policy which would alter the information on the certificate and/or endorsements then on file. 5. Neither the insurance requirements hereunder, nor acceptance or approval of Contractor s insurance, nor whether any claims are covered under any insurance, shall in any way modify or change Contractor s obligations under the indemnification clause in this Agreement, which shall continue in full force and effect. Notwithstanding the insurance requirements contained herein, Contractor is financially liable for its indemnification obligations under this Agreement. 6. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insured shall reduce or eliminate such deductibles or self- 14

16 insured retentions as respects the City, its officers, officials, employees, and volunteers; or Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 7. For any claims related to this project, the Contractor s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City shall be excess of the Contractor s insurance and shall not contribute with it. Contractor shall either (1) require each of its subcontractors to procure and to maintain during the life of its subcontract, Commercial General Liability Insurance, Automobile or Vehicle Liability Insurance and Workers Compensation Insurance of the type and in the amounts specified above, or; (2) insure the activities of its subcontractors in its policies. Prior to commencement of any work by any subcontractor, Contractor shall file certificates of insurance and endorsements evidencing the coverage required by this paragraph with the City department contact and such evidence of insurance must be acceptable to the City Risk Management Office. Contractor shall file a new or amended certificate of insurance promptly after any change is made in any insurance policy which would alter the information on the certificate and/or endorsements then on file. 15