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HomeMy WebLinkAboutItem 6g. RFP for Investment Advisor Services Item 6g Department: Finance Cost Center: 2001 For Agenda of: 9/21/2021 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Brigitte Elke, Finance Director SUBJECT: REQUEST FOR PROPOSALS FOR INVESTMENT ADVISOR SERVICES RECOMMENDATION 1. Approve the Request for Proposal (RFP) documents for investment advisor services and authorize their release. 2. Authorize the City Manager to enter into contract with the selected consultant. DISCUSSION Background The City of San Luis Obispo pools its financial resources and diversifies its investments into long- and short-term vehicles to maximize yield while preserving safety and liquidity. In 2014, the City entered into contract with PFM Asset Management, LLC for investment adviser services. The term of the contract was for an initial five years with a possible two- year extension that was executed on November 19, 2019. The contract is set to expire and a new request for proposals (RFP) is necessary to ensure that the City receives the best possible services at the best possible price. Scope of Services The investment advisor services requested include but are not limited to the following: 1. Manage the City’s portfolio in a fiduciary capacity with discretionary authority; 2. Execute trades in accordance with the City’s Investment Policy and Management Plan and its Environmental, Social, Governance (ESG) investment strategy; 3. Assist the City with maturity and cashflow analysis; 4. Provide credit analysis of investment instruments of portfolio ; 5. Provide monthly/quarterly/annual reporting on all government entity funds including market values and a detailed listing of investments held in the portfolio at each reporting interval; 6. Attend quarterly meetings with City staff, the Investment Oversight Committee, and occasionally the City Council during public session; 7. Evaluate market risk and develop strategies that minimize the impact on the portfolio; 8. Provide assurances of portfolio compliance with applicable policies and laws and the City’s Investment Policy and Management Plan; Page 123 of 359 Item 6g 9. Establish an appropriate performance benchmark when necessary; 10. Indicate full understanding of Investment Policy and Management Plan , the ESG investment strategy and recommend changes as appropriate; 11. Ensure portfolio structure matches City objectives; and 12. Forecast annual earnings from the portfolio for the City’s use in a budget planning . The firm shall not have custody or possession of the funds or securities that the City has placed under its management. Next Steps Staff has prepared RFP documents (Attachment A) and seeks to release the RFP by September 22, 2021. The schedule is set as follows:  Issue RFP 9/13/21  Receive proposals 9/30/21  Complete proposal evaluations 10/15/21  Conduct finalist interviews & finalize recommendation 10/18 – 27/21  Execute contract 11/1 – 5/21  Start work 11/20/21 Previous Council or Advisory Body Action The City Council approved the last RFP release on September 2, 2014, which resulted in a seven-year contract with PFM Asset Management, LLC that will expire on November 19, 2021. Policy Context The City of San Luis Obispo has an adopted Investment Policy and Management Plan which sets for that Public Engagement This item will be before Council during public session on September 21, 2021. No additional public engagement was conducted. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2021-22 Funding Identified: Yes Page 124 of 359 Item 6g Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ State Federal Fees Other: Total $ $ $ $ Investment Advisor services are usually compensated based on the level of the invested assets. Currently, the City reimburses PFM Asset Management, LLC based on the following scale: Assets under Management Annual Fee First $25 million 10 basis points (0.10%) Next $25 million 8 basis points (0.08%) Next $50 million 7 basis points (0.07%) Assets over $100 million 6 basis points (0.06%) At the level of the current investment, this would equate to between $80,000 to $85,000. This amount will be distributed to the City’s five major funds based on the assets currently invested and managed by the Investment Advisor. The amount is compensated directly from the City’s investment earnings control account. ALTERNATIVES 1. Do not approve the release of a RFP and approve an additional extension of the agreement with PFM Asset Management, LLC. While PFM Asset Management’s performance has been exemplary to date, this is not recommended since it is prudent to make sure that the City receives the best services at the most competitive rate possible. 2. The City Council could direct staff to bring investment services in -house. This is not recommended as the Finance department is not staffed appropriately to provide this service in-house. ATTACHMENTS A – Investment Auditor Services Request for Proposals Page 125 of 359 Page 126 of 359 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. Notice Requesting Proposals for Investment Adviser Services The City of San Luis Obispo is requesting sealed proposals for services associated with the Investment Adviser Services. All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app- web/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of Finance at or before September 30, 2021, when they will be opened publicly in the City Hall Conference Hearing Room, 990 Palm Street, San Luis Obispo, CA 93401. All firms interested in receiving further correspondence regarding this Request for Qualifications will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app- web/vendor/register/Login.xhtml). All qualifications must be received via BidSync by the Department of Finance at or before September 30, 2021, when they will be opened electronically in BidSync. An optional pre-proposal conference will be held to answer any questions that the prospective proposers may have regarding the City's request for proposals. Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact Daniel Clancy with any questions. For technical help with BidSync please contact BidSync tech support at 800-990-9339. Page 127 of 359 TABLE OF CONTENTS A. INTRODUCTION ......................................................................................................................................... 1 B. SCOPE OF WORK ....................................................................................................................................... 1 C. PROJECT SCHEDULE .................................................................................................................................. 2 D. PROJECT BUDGET ..................................................................................................................................... 2 E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 2 F. SPECIAL TERMS AND CONDITIONS .................................................... ERROR! BOOKMARK NOT DEFINED. G. FORM OF AGREEMENT ........................................................................................................................... 18 H. INSURANCE REQUIREMENTS .................................................................................................................. 23 I. PROPOSAL SUBMITTAL FORMS ................................................................................................................ 25 Page 128 of 359 -1- A. INTRODUCTION The City is requesting proposals for investment advisor services for a five-year term, with an option to renew for an additional two years. It is the City’s policy to establish a long-term, ongoing relationship with its investment advisor, under which advice is available whenever needed. At the end of the contract’s term, it is the City’s policy to seek formal proposals to ensure that it continues to receive quality professional services at the best competitive price. The City’s current investment advisor is PFM Asset Management, LLC and they have been invited to submit a proposal. About the City’s Portfolio The City’s primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although the generation of revenues through interest earnings on investment is an appropriate City goal, the primary consideration in the investment of City funds is capital preservation in the overall portfolio. As such, the City’s yield objective is to achieve a reasonable rate of return on City investments rather than the maximum generation of income, which would expose the City to unacceptable levels of risk. In determining individual investment placements, the following factors shall be considered in priority order: 1. Safety 2. Liquidity 3. Yield The City’s current portfolio under outside management is valued at approximately $103 million and consists of a combination of U.S. Treasury, Agency, and corporate debt. Further guidance regarding eligible financial institutions can be found in the City’s investment policy under Section IV. The Investment Policy and Management Plan was updated in August 2020 to incorporate an ESG Investing approach to enhance previous RSI considerations. The City uses Bank of New York Mellon as the custodial trustee to maintain custody of certain investments and to provide valuation services for the portfolio, independent of the asset manager. B. SCOPE OF WORK Oversight of the City’s investment activities is provided by the City Treasurer, who also serves as the Finance Director. The City maintains an Investment Oversight Committee that meets quarterly to review the transactions that have occurred within the portfolio and to confirm that the portfolio has been managed in accordance with the requirements of the City’s investment policy. The committee also develops recommendations regarding the City’s investments for consideration by the City Council. City Finances Detailed information about the City’s finances and key policies are also available on the City’s website at www.slocity.org. The 2021-2023 Financial Plan along with the 2019-20 fiscal year Annual Comprehensive Financial Report are the key source documents for this information. Investment Advisor Services The investment advisor services requested include but are not limited to the following: Page 129 of 359 -2- 1. Manage the City’s portfolio in a fiduciary capacity with discretionary authority 2. Execute trades in accordance with the City’s Investment Policy and Management Plan and its ESG investment strategy. 3. Assist the City with maturity and cashflow analysis 4. Provide credit analysis of investment instruments of portfolio 5. Provide monthly/quarterly/annual reporting on all government entity funds including market values and a detailed listing of investments held in the portfolio at each reporting interval 6. Attend quarterly meetings with City staff, the Investment Oversight Committee, and occasionally the City Council during public session. 7. Evaluate market risk and develop strategies that minimize the impact on the portfolio 8. Provide assurances of portfolio compliance with applicable policies and laws and the City’s Investment Policy and Management Plan 9. Establish an appropriate performance benchmark when necessary 10. Indicate full understanding of Investment Policy and Management Plan, the ESG investment strategy and recommend changes as appropriate 11. Ensure portfolio structure matches City objectives 12. Forecast annual earnings from the portfolio for the City’s use in a budget planning. The firm shall not have custody or possession of the funds or securities that the City has placed under its management. C. PROJECT SCHEDULE 1. Issue RFP 9/22/2021 2. Receive proposals 10/13/2021 3. Complete proposal evaluations 10/20/2021 4. Conduct finalist interviews and finalize recommendation 10/21– 29/2021 5. Execute contract 11/1 – 5/2021 6. Start work 11/20/2021 D. PROJECT BUDGET The City has no pre-determined budget for its investment advisor services. Pricing and related terms and conditions will be evaluated as part of the proposal consideration. E. GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be submitted electronically via BidSync. However, if you can’t submit electronic, please send your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature Page 130 of 359 -3- opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as further discussed under paragraph 11, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section H. 4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder’s intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened. No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals. 7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged but will be permitted. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the “special terms and conditions” in Section F of these specifications for proposal evaluation and contract award criteria. Page 131 of 359 -4- 9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision. 10. Contract Requirement. The bidder to whom award is made (Consultant) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. CONTRACT PERFORMANCE 11. Insurance Requirements. The Consultant shall provide proof of insurance in the form, coverages and amounts specified in Section H of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 12. Business License & Tax. The Consultant must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 13. Ability to Perform. The Consultant warrants that they possess, or have arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 14. Laws to be Observed. The Consultant shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 15. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Consultant is required to pay. 16. Permits and Licenses. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 17. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 18. Public and Employee Safety. Whenever the Consultant’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 19. Preservation of City Property. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Consultant’s operations, it shall be replaced or restored at the Consultant’s expense. The facilities shall be replaced or restored to a condition as good as when the Consultant began work. Page 132 of 359 -5- 20. Immigration Act of 1986. The Consultant warrants on behalf of themselves and all subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 21. Consultant Non-Discrimination. In the performance of this work, the Consultant agrees that they will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 22. Work Delays. Should the Consultant be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Consultant. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 23. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Consultant (Net 30). 24. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to ascertain that the services of the Consultant are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its contract requirements. 25. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Consultant in preparing its invoices to City as a condition precedent to any payment to Consultant. 26. Interests of Consultant. The Consultant covenants that they presently have no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Consultant further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Consultant shall at all times be deemed an independent Consultant and not an agent or employee of the City. 27. Hold Harmless and Indemnification. Page 133 of 359 -6- (a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid Page 134 of 359 -7- defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 28. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 29. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Consultant. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Consultant must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 30. Termination. If, during the term of the contract, the City determines that the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Consultant has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Consultant to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Consultant’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Consultant shall be based solely on the City’s assessment of the value of the work- in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the compensation quoted in its proposal. Page 135 of 359 -8- SPECIAL TERMS AND CONDITIONS 1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive proposer. 2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer. 3. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive proposer. 4. Failure to Accept Contract. The following will occur if the proposer to whom the award is made (Consultant) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made. 5. Contract Term. The supplies or services identified in this specification will be used by the City for up to one year. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. 6. Contract Extension. The term of the contract may be extended by mutual consent for an additional one-year, and annually thereafter, for a total of four years. 7. Supplemental Purchases Supplemental Purchases. Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal. 8. Consultant Invoices. The Consultant may deliver either a monthly invoice to the City with attached copies of detail invoices as supporting detail, or in one lump-sum upon completion. Page 136 of 359 -9- 9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term. 10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination. 11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City. 12. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement. 13. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Consultant. 14. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. Page 137 of 359 -10- PROPOSAL CONTENT FOR MOST RFP’s EXCEPT FOR ENGINEERING, ARCHITECTURAL AND ENVIRONMENTAL SERVICES 1. Proposal Content. Your proposal must include the following information: Submittal Forms a. Proposal submittal summary. b. Certificate of insurance. c. References from at least three firms for whom you have provided similar services. Qualifications d. Experience of your firm and those of sub-consultants in performing work and projects relevant to the Scope of Services outlined and described in the request. e. Resumes of the individuals who would be assigned to this project, including any sub- consultants, with their corollary experience highlighted and specific roles in this project clearly described. f. Standard hourly billing rates for the assigned staff, including any sub-consultants. g. Statement and explanation of any instances where your firm or sub-consultant has been removed from a project or disqualified from proposing on a project. Work Program h. Detailed description of your approach to completing the work. i. Detailed schedule by task and sub-task for completing the work. j. Estimated hours for your staff in performing each phase and task of the work, including sub-consultants, so we can clearly see who will be doing what work, and how much time it will take. k. Detailed budget by task and sub-task for completing the work. l. Services or data to be provided by the City. m. Services and deliverables provided by the Consultant(s). n. Any other information that would assist us in making this contract award decision. o. Description of assumptions critical to development of the response which may impact cost or scope. Requested Changes to Terms and Conditions p. The City desires to begin work soon after selecting the preferred Consultant Team. To expedite the contracting process, each submittal shall include requested redlined changes to terms and conditions, if necessary. Proposal Length q. Proposal length should only be as long as required to be responsive to the RFP, including attachments and supplemental materials. Page 138 of 359 -11- 2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and evaluated on the following criteria: a. Understanding of the work required by the City. b. Quality, clarity and responsiveness of the proposal. c. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. d. Recent team experience in successfully performing similar services. e. Creativity of the proposed approach in completing the work. f. Value g. Writing skills. h. References. i. Background and experience of the specific individuals managing and assigned to this project. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected Consultant, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: a. Issue RFP 9/22/2021 b. Receive proposals 10/13/2021 c. Complete proposal evaluations 10/20/2021 d. Conduct finalist interviews and finalize recommendation 10/21– 29/2021 e. Execute contract 11/1 – 5/2021 f. Start work 11/20/2021 4. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Consultant as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 5. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Consultant as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Consultant without the prior written approval of the City. 6. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities as part of the work or services under these specifications, the Consultant shall provide such additional copies as are requested, and City shall compensate the Consultant for the costs of duplicating of such copies at the Consultant's direct expense. 7. Required Deliverable Products. The Consultant will be required to provide: Page 139 of 359 -12- a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager: Word Processing: MS Word Spreadsheets: MS Excel Desktop Publishing: InDesign Virtual Models: Sketch Up Digital Maps: Geodatabase shape files in State Plan Coordinate System as specified by City GIS staff c. City staff will review any documents or materials provided by the Consultant and, where necessary, the Consultant will be required to respond to staff comments and make such changes as deemed appropriate. ALTERNATIVE PROPOSALS 8. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s). 9. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Consultant at up to [number] public meetings to present and discuss its findings and recommendations. Consultant shall attend as many "working" meetings with staff as necessary in performing work-scope tasks. 10. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City shall not be Page 140 of 359 -13- liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Consultant shall immediately notify the City in writing, and the Consultant and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of Consultant's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. Page 141 of 359 -14- Proposal Content and Selection Process ONLY FOR ENGINEERING, ARCHITECTURAL AND ENVIRONMENTAL SERVICES For All Other Services, Use the Process Proceeding This One 1. Proposal Content. Your proposal must include the following information: Submittal Forms a. Proposal submittal summary. b. Certificate of insurance. c. References from at least three firms for whom you have provided similar services. Qualifications d. Experience of your firm in performing similar services. e. Resumes of the individuals who would be assigned to this project, including any sub- consultants. f. Standard hourly billing rates for the assigned staff, including any sub-consultants. g. Statement and explanation of any instances where your firm has been removed from a project or disqualified from proposing on a project. Work Program h. Description of your approach to completing the work. i. Tentative schedule by phase and task for completing the work. j. Estimated hours for your staff in performing each major phase of the work, including sub- consultants. k. Services or data to be provided by the City. l. Any other information that would assist us in making this contract award decision. Proposal Length and Copies m. Proposals should not exceed 20 pages, including attachments and supplemental materials. n. 5 copies of the proposal must be submitted. 2. Proposal Evaluation and Consultant Selection. Proposals will be evaluated by a review committee using a two-phase selection and contract award process as follows: Phase 1 – Written Proposal Review/Finalist Candidate Selection A group of finalist candidates (generally the top 3 to 5 five proposers) will be selected for follow- up interviews and presentations based on the following criteria as evidenced in their written proposals: a. Understanding of the work required by the City. b. Quality, clarity and responsiveness of the proposal. Page 142 of 359 -15- c. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. d. Recent experience in successfully performing similar services. e. Proposed approach in completing the work. f. References. g. Background and experience of the specific individuals to be assigned to this project. h. Whatever other criteria you want to use. Phase 2 – Oral Presentations/Interviews and Consultant Selection Finalist candidates will make an oral presentation to the review committee and answer questions about their proposal. The purpose of this second phase is two-fold: to clarify and resolve any outstanding questions or issues about the proposal; and to evaluate the proposer’s ability to clearly and concisely present information orally. As part of this second phase of the selection process, finalist candidates will submit proposed compensation costs for the work, including a proposed payment schedule tied to accomplishing key project milestones or tasks. After evaluating the proposals and discussing them further with the finalists or the tentatively selected Consultant, the City reserves the right to further negotiate the proposed workscope and/or method and amount of compensation. Contract award will be based on a combination of factors that represent the best overall value for completing the workscope as determined by the City, including: the written proposal criteria described above; results of background and reference checks; results from the interviews and presentations phase; and proposed compensation. 3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: a. Issue RFP [date] b. Pre-Proposal Conference (optional) [date] c. Receive proposals [date] d. Complete proposal evaluations [date] e. Conduct finalist interviews and finalize recommendation [date] f. Execute contract [date] g. Start work [date] 4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP: [Day, Date, Time] [LOCATION] 5. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Consultant as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Consultant as part of the work or services under these Page 143 of 359 -16- specifications shall be the property of the City and shall not be made available to any individual or organization by the Consultant without the prior written approval of the City. 7. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities as part of the work or services under these specifications, the Consultant shall provide such additional copies as are requested, and City shall compensate the Consultant for the costs of duplicating of such copies at the Consultant's direct expense. 8. Required Deliverable Products. The Consultant will be required to provide: a. One electronic submission - digital-ready original .pdf of all final documents. If Consultant wishes to file a paper copy, it must be submitted in a sealed envelope to the address provided in the RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager: Word Processing: MS Word Spreadsheets: MS Excel Desktop Publishing: InDesign Virtual Models: Sketch Up Digital Maps: Geodatabase shape files in State Plan Coordinate System as specified by City GIS staff c. City staff will review any documents or materials provided by the Consultant and, where necessary, the Consultant will be required to respond to staff comments and make such changes as deemed appropriate. ALTERNATIVE PROPOSALS 9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s). 10. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Consultant at up to [number] public meetings to present and discuss its findings and recommendations. Consultant shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 11. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining Page 144 of 359 -17- either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Consultant shall immediately notify the City in writing, and the Consultant and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of Consultant's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. Page 145 of 359 -18- SECTION G: FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONSULTANT’S NAME IN CAPITAL LETTERS], hereinafter referred to as Consultant. W I T N E S S E T H: WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx] WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted by City for said project; NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said project. 2. INCORPORATION BY REFERENCE. City Specification No. ______ and Consultant's proposal dated [date] is hereby incorporated in and made a part of this Agreement and attached as Exhibit A. The City’s terms and conditions are hereby incorporated in an made a part of this Agreement as Exhibit B. To the extent that there are any conflicts between the Consultant’s fees and scope of work and the City’s terms and conditions, the City’s terms and conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will pay, and Consultant shall receive therefore compensation [xxxxxxx]. If there are installment payments? Consultant shall be eligible for compensation installments after completion of milestone Tasks -E as shown in the attached project schedule. 4. CONSULTANT/CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement and the said specifications. 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. Page 146 of 359 -19- 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Name Dept. Address Consultant Name Title Address Address 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that everyone executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO: By:_____________________________________ City Manager APPROVED AS TO FORM: CONSULTANT: ________________________________ By: _____________________________________ City Attorney Name of CAO / President Its: CAO / President Page 147 of 359 -20- SECTION H: INSURANCE REQUIREMENTS Environmental Consultants and Consultants Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors. General Liability, Errors and Omissions and Pollution and/or Asbestos Pollution Liability coverages should be maintained for a minimum of five (5) years after contract completion. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 or Claims Made Form CG 0002). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto), or code 8, 9 if no owned autos. 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions. 5. Cyber-Liability Insurance Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 each accident, $1,000,000 policy limit bodily injury by disease, $1,000,000 each employee bodily injury by disease. 4. Pollution and/or Asbestos Pollution Liability and/or Errors and Omissions: $1,000,000 each occurrence/$2,000,000 policy aggregate. 5. Consultant/Consultant shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage: a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the confidential information. b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. e. Liability arising from the failure to render professional services Page 148 of 359 -21- f. If coverage is maintained on a claims-made basis, Consultant/Contractor shall maintain such coverage for an additional period of three (3) years following termination of the contract. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Entity. Other Insurance Provisions. The following insurance provisions shall also apply: 1. The general liability, automobile liability, pollution and/or asbestos pollution and/or errors & omissions policies are to contain, or be endorsed to contain, the following provisions: a. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; pollution and/or asbestos pollution and/or errors or omissions, or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the Entity, its officers, officials, employees, agents or volunteers. Note: Automobile, Pollution, Asbestos Pollution and/or Errors and Omissions insurance carriers may not name the City as Additional Insured. If the City cannot be named as Additional Insured, a letter from the insurance company confirming their position required. b. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. c. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party except after thirty (30) days prior written notice has been given to the City. 2. The automobile liability policy shall be endorsed to delete the pollution and/or the asbestos exclusion and add the Motor Carrier Act endorsement (MCS-90). 3. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverages are written on a Claims Made Form: a. The "Retro Date" must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract or work. c. If the coverage is canceled or non-renewed, and not replaced with another claims made policy form with a "Retro Date" prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five years after completion of the contract or work. Page 149 of 359 -22- d. A copy of the claims reporting requirements must be submitted to the City for review. 4. The workers compensation policy shall be endorsed with a waiver of subrogation in favor of the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Since Pollution and/or Asbestos Pollution coverages may not be available from an "Admitted" insurer, the coverage may be written by a Non-Admitted insurance company. A Non-admitted company should have an A.M. Best's rating of A:X or higher. Pollution and/or Asbestos coverages may also be written by a Captive Insurance Company or Risk Retention Group or Captive Insurance Company, the City will check with its Insurance Advisor for further information before approval. Verification of Coverage. Consultant shall furnish the City with certified copies of endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City, unless the insurance company will not use the City's form. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. Subcontractors. Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Page 150 of 359 -23- SECTION H: INSURANCE REQUIREMENTS Consultant Services The Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. Page 151 of 359 -24- 3. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Page 152 of 359 -25- SECTION I: PROPOSAL SUBMITTAL FORM - SAMPLE The undersigned declares that she or he has carefully examined Project No. [xxxx] which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: BID ITEM: [ITEM] Total Base Price Sales tax [] Other TOTAL $ Delivery of equipment to the City to be within _______ calendar days after contract execution and written authorization to proceed. q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date E NOTES ON THIS SAMPLE FORM This is the City’s “basic” submittal form, and something like it should accompany all proposals, even if: a combined “description of work/detailed proposal submittal form” (like Sample E) is required; or price information is not requested (like Sample F). Page 153 of 359 -26- SECTION I: PROPOSAL SUBMITTAL FORM - SAMPLE The undersigned declares that she or he has carefully examined Specification No. 97-6, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description Quantity Unit Price Total TOTAL BASE PRICE Sales tax @ [] Other (provide detail below) TOTAL $ Delivery of equipment to the City to be within _______ calendar days after contract execution and written authorization to proceed. q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date E NOTES ON THIS SAMPLE FORM This is another sample of “basic” submittal form when you have multiple bid items that are specified in detail in the “description of work” section. Page 154 of 359 -27- SECTION I: PROPOSAL SUBMITTAL FORM - SAMPLE The undersigned declares that she or he has carefully examined Project No. [xxxx], which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Basic Proposal Alternate Proposal Phase A Phase B Phase A Phase B Location TOTAL BASE PRICE Sales tax @ 7.25% Other (attach supporting detail) TOTAL $ $ $ $ Calendar days required to complete work q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date E NOTES ON THIS SAMPLE FORM This sample form would be useful in an RFP where there are several options and phases, and the proposal is likely to have a lot of narrative. Page 155 of 359 -28- Page 156 of 359 -29- SECTION I: PROPOSAL SUBMITTAL FORM - SAMPLE The undersigned declares that she or he has carefully examined Specification No. XXX which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description 2018-19 2019-20 2020-21 Work effort A Work effort B Work effort C Work effort D Work effort E TOTAL $ $ $ q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date Page 157 of 359 City of San Luis Obispo Specification No. 9xxxx -30- REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Page 158 of 359 City of San Luis Obispo Specification No. 9xxxx -31- Reference No. 3 Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Page 159 of 359 City of San Luis Obispo Specification No. 9xxxx -32- STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.  Do you have any disqualification as described in the above paragraph to declare? Yes q No q  If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________ Signature of Authorized Proposer Representative Page 160 of 359