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HomeMy WebLinkAbout07-01-2025 SLOMA Community Partnership AgreementAGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 1 COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR PUBLIC ART PROFESSIONAL SERVICES This community partnership agreement ("Agreement") is made and entered into in the City of San Luis Obispo on July 1, 2025 by and between the City of San Luis Obispo, a municipal corporation and charter city, hereinafter referred to as "City", and San Luis Obispo Museum of Art, hereinafter referred to as "SLOMA". WITNESSETH: WHEREAS, the City is the legal owner of the property located at 1010 Broad Street in the City of San Luis Obispo as shown on Exhibit A; and WHEREAS, SLOMA currently leases certain premises from the City located at 1010 Broad Street (the “Leased Premises”), which constitutes a portion of certain real property owned by the City within City limits, collectively known as Mission Plaza and identified as San Luis Obispo County Assessor Parcel No. 002-423-006. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described herein, CITY also desires to allow for reserved and permitted (at no cost) use by SLOMA of the “Mission Plaza lawn area” located immediately to the northeast of SLOMA’s existing leased Premises as shown on Exhibit A attached to this Agreement; and WHEREAS, the City desires to maintain a mutually beneficial relationship with SLOMA as a way to continue to enhance the sense of community through public art for the residents of San Luis Obispo; and WHEREAS, consistent with adopted City planning documents, including the Downtown Concept Plan, current Major City Goals that focus on economic vitality and tourism serving objectives, the City desires to create a cultural arts district adjacent to the Mission Plaza and anchored by the Museum of Art (as well as by the Natural History Center, Children’s Museum, and forthcoming SLOREP); and WHEREAS, the City Council established and funded a public art program in 1990 (Resolution No. 6811 (1990 Series)); and WHEREAS, SLOMA is uniquely qualified to provide the public art services contemplated under this Agreement due to its intimate knowledge of art, unique connection to the arts community, and its long experience producing and providing cultural art exhibits for the benefit of the community. WHEREAS, SLOMA is situated to provide technical expertise, artists relationships, project management, communications, and engagement leadership through the acquisition of public art pieces and/or the activation of public spaces through the integration of public art and/or the acquisition of signature art pieces. SLOMA desires to continue to activate the Mission Plaza lawn and outdoor space through installations, art activities, and educational opportunities; enhancing the City’s cultural arts district; and WHEREAS, the City Council recognizes that public art is fundamentally different from most other types of public works in that when selecting public art, the CITY is looking for an individual expression or unique idea, which makes sole-source selection and acquisition of completed pieces appropriate means of acquiring public art; and WHEREAS, to ensure an efficient acquisition process, the City Council has delegated to the City Manager the authority to approve acquisition of public art pieces by SLOMA under this Agreement; and Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 2 WHEREAS, the CITY and SLOMA desire to continue to encourage public art that respects the community’s past and embraces the future in a collaborative, diverse, and equitable fashion; and WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and SLOMA as a way to continue to enhance the sense of place and community for residents through the proliferation of public art and education thereof; and WHEREAS, City staff will continue to focus directly on the other equally valuable components of the City’s Public Art program, including support of the local art community, activation of space through art programming and installation, infrastructure maintenance, communications and outreach, policy development and guidance, and support of private development art installation; and WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLOMA has provided a proposal to the City expressing a desire to support public art installations to mutually benefit both agencies. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM OF AGREEMENT The term of this Agreement shall be for two (2) years commencing on July 1, 2025, and terminating on June 30, 2027 2. FINANCIAL MANAGEMENT. The CITY and SLOMA agree to a series of terms as outlined below. 2.1. The CITY shall compensate SLOMA $100,000 annually, for a total of $200,000, during the term of this Agreement for the general services it provides under the terms of this agreement. 2.1.a. SLOMA shall invoice the CITY on a biannual basis (for $50,000 each half-year) for this service by no later than July 1 and January 1 each year of this Agreement. 2.1.b. The CITY shall remit payment to SLOMA within thirty (30) days from the date of receipt by CITY of its biannual invoice for general community art services from SLOMA. 2.2. SLOMA shall make a minimum of three different art acquisitions per year on behalf of the CITY, as defined below. CITY shall pay for purchase or lease of public art pieces facilitated by SLOMA on the City’s behalf under the terms of this agreement. For the length of this agreement said costs shall not to exceed $200,000 annually which has been budgeted for the purpose of SLOMA’s facilitated acquisition of three different types of art as follows: Acquisitions and Installation of Art on Behalf of the City by SLOMA for each year MAXIMUM ANNUAL CITY FUNDED BUDGET (1) Completion of permanent sculpture art installation of “Shift”, already owned by the City Up to $40,000 for cost of installation (sculpture already purchased for the price of $10,000) (1) Temporary installation on the Mission Plaza Lawn, to be installed upon completion of Plaza restoration. Includes management of maintenance of temporary piece. Up to $75,000 for cost of installation and deaccession of the piece for an approximate 18-month term. (1) Permanent sculpture to be installed at Righetti Community Park. Agreed upon location by City and SLOMA. Up to $200,000 for purchase and installation of the piece. Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 3 (1) Additional space maker installation on agreed upon location within the City – one or more per year Up to $75,000 for cost of installation and deaccession of the piece Management of maintenance for and deinstallation of temporary art at Garden Street Alley. Up to $10,000 for maintenance and deaccession of the piece Table 1.0: Installation Funded Amounts 2.2.a. PURCHASE OR LEASE OF ART: The CITY will purchase or lease the art directly from the artist. SLOMA will coordinate payment and contract signing between CITY and artist, in a form provided by the CITY. The City will pay a 40% deposit at time of contract execution and the remaining due at time of completion. 2.2.b. INSTALLATION COSTS: As part of this Community Agreement, SLOMA is responsible for the installation of the art and managing costs associated with the installation. SLOMA will provide a separate estimate to the CITY for each of the different installation costs. The City will pay SLOMA a 40% towards the costs of installation at time of contract execution and the remaining due at time of completion. The CITY will reimburse SLOMA for installation costs up to the approved estimated amount once an invoice is provided. For reimbursement, qualifying expenses shall be recorded in addition to the invoice SLOMA provides the CITY. 2.2.b.1. Qualifying expenses are defined as costs directly associated with the installation of the art. Qualifying expenses do not include upgrades to shared space, marketing or private photography costs, travel expenses without prior approval, personal gifts, meals, or gratuities. 2.2.b.2. Expenses will be reimbursed up to the amount predetermined by City Council and budget direction and confirmed by Recreation Manager prior to purchase. Costs that exceed this cost must be preapproved by City staff through written correspondence. 2.2.b.3. Costs for purchase and or lease of art plus the installation shall not exceed the original quote and shall remain under the amount outlined in Table 1.0. 2.2.c. For each project, a contract, in a form approved by the CITY, will be completed between the CITY and artist directly. SLOMA will act as liaison to ensure signatures are collected prior to payment or services. The Agreement may need to be amended depending on the artist and art piece; in that case, the Agreement will be modified with the advisement of the City Attorney’s Office. 2.2.d. Upon payment, the art becomes a part of the City’s collection (permanent or temporary) and all rights belong to the CITY as outlined in agreement. 2.2.e. SLOMA may use public art for promotion and is expected to recognize the City as funder and program manager. 3. CITY ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Parks and Recreation Director may authorize periodic modifications, within the scope of financial and/or operational authority, to the Roles and Responsibilities as may deem necessary or appropriate to the partnership between the CITY and SLOMA. Any amendments or modifications to the Roles and Responsibilities shall be in writing and may only be made with the mutual written consent of both parties. 4. SCOPE OF SERVICES Both parties agree to collaborate on the public art program projects as outlined in the obligations below. A. CITY OBLIGATIONS Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 4 i. The CITY will provide access and guidance to SLOMA relative to the CITY’s Public Art Policies and Procedures Manual. ii. The CITY will continue to manage the Utility Box Art Program. iii. The CITY will continue to address maintenance needs of the public art program for the current collection of artwork, including permanent artwork installed though the SLOMA/City partnership. iv. The CITY will continue to manage the private development public art program. v. The CITY will set monthly reoccurring meetings with SLOMA Staff during the two (2) year term. vi. In accordance with paragraph 2 of this Agreement, the CITY shall remit biannual payments to SLOMA during the two (2) year term of this Agreement. vii. The CITY will work with SLOMA regarding payment process to selected Artists as outlined in this Agreement under “Financial Management.” viii. The City will continue to hold and manage the Public Art Fund in its sole discretion. ix. The City will continue to communicate purchasing limits, which include installation, purchase or lease of art, and maintenance costs, prior to onset of each project to SLOMA. x. Contracts for purchase or lease of art will be signed directly between the City and the artist. xi. The City will provide direction regarding priority locations for art installations. xii. City Public Works staff will continue to work with SLOMA regarding installation of art in public spaces, as appropriate and necessary for the nature of each project and in accordance with the CITY’S Public Art policy and the terms of this Agreement. xiii. City Community Development staff will continue to work with SLOMA to support permitting necessary for installations. xiv. City Communications staff will continue to promote art installations, joint projects, and the public art program, highlighting SLOMA as valued partners. xv. City Tourism staff will continue to promote Public Art through social media marketing and tourism outreach. xvi. City staff will continue to notify SLOMA of Mission Plaza and street closures that may impact the Museum prior to non-emergency planned closures. City staff will continue to activate and draw visitors to the Mission Plaza through beautification, outreach, special event permitting and space activation. Staff will provide a quarterly schedule of events to SLOMA. xvii. City staff will continue to maintain the Mission Plaza Park, restrooms, lighting, and all spaces where Public Art is installed under the terms of this agreement. B. SLOMA OBLIGATIONS i. SLOMA will provide coordination of public art for the CITY during the two-year term of this Agreement. Projects shall include the items outlined above under 2.2 and are subject to City approval and available funds. 1. . ii. SLOMA will work with City staff to define a proposed and maximum budget to be spent on each of these projects, including ongoing costs of maintenance. Should the costs for installation exceed the budgeted costs, SLOMA will be responsible for communicating these differences to the CITY prior to exceeding the balance or committing a difference of compensation to vendors. If funds are not available nor approved, SLOMA will have the option to supplement the costs and will be responsible for paying the difference. a. City fees will only be used to pay for acquisition and/or installation of art b. Reimbursement for art acquisition and/or installation requires SLOMA to submit a receipt of art and/or installation as outlined under the Agreement “Financial Management” section. Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 5 c. For each installation, SLOMA will provide an invoice to define terms of what expenses will be necessitated prior to, during and after the installation. d. Costs of travel for staff or artists is not reimbursable without prior approval as outlined in proposal. e. In the event travel expenses will be reimbursed, City will pay hotel rates as recommended in the US General Services Administration and a per diem as outlined by City policy. f. City fees may not be used pay for: alcohol, meals, personal gifts, travel costs in excess of what was guaranteed in proposal. iii. SLOMA will Acquire or facilitate temporary acquisition of art on behalf of the City. a. SLOMA will serve as liaison to ensure artist signs and completes a contract with the City, in a form approved by the CITY, and provides all documents to the CITY. b. SLOMA will recognize the City as owner/lessor of the art in all communications regarding the art. c. The agreement in place will be made directly between the City and the artist. Any agreement that SLOMA makes directly with the artist shall not interfere with the completion of the City’s contract. d. The City will retain permanent physical ownership of a piece or temporary ownership of a piece and all decisions regarding these pieces shall be made directly with the Recreation Manager. e. SLOMA will provide the City with signed Statement of Authenticity from the artist or a receipt from the artist, as needed., iv. The following criteria and considerations shall guide SLOMA’s process for selecting art on behalf of the City: a. SLOMA shall, in their expert discretion, pursue negotiations with artists who are nationally or internationally renowned. b. SLOMA shall pursue art pieces that: i. Are durable, can withstand the elements and exposure to public spaces, and are resistant to vandalism ii. Can reasonably be maintained by the City after conveyance to the City iii. Enhance the sense of place in the City iv. Encourage observers to understand each other and the world around them v. SLOMA shall follow the following process for selecting and acquiring art: 1. City staff to discuss priority areas with SLOMA or SLOMA to share ideas with City staff (Recreation Manager) 2. SLOMA to contact Public Works City staff to discuss challenges, obstacles, or necessities of installation in the public space; 3. SLOMA to present potential art piece and location to an ad hoc group that has been preapproved by City staff (to include a variety of input including neighbors to the installation location, any adjacent businesses, local artists, DEI representative, and City staff) 4. SLOMA shall assist City staff in the preparation of a Sole Source justification memo to be provided to the City Manager through a City Manager Report. vi. In managing the installation of selected public art, SLOMA shall: Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 6 1. Provide a timeline for completing the steps above and communicate changes to the Recreation Manager 2. Serve as Public Art project liaison between selected Artists and CITY. 3. Secure planning/building permits, as may be required, and works with artist to fabricate artwork. 4. Communicate with City Public Works for all work on the Mission Plaza lawn. 5. Repair any damage to City property during installation. 6. Coordinate with CITY payment schedule to selected Artist. 7. Coordinate and oversee the installation of the approved artwork. vii. All marketing involving artwork paid for by the City will be tagged to the City and City will be given full credit of ownership. viii. Ribbon Cuttings will be coordinated by SLOMA after working with City staff to coordinate available dates. The City will be invited to present at each ribbon cutting. ix. Promotions shall be approved by City staff, including Communications Coordinator or staff delegated thereby, prior to posting. x. A sign for all art installations will be included in the cost of installation, shall follow City Communications guidelines and shall be approved prior to printing. xi. Continue to provide a monthly written update to the Recreation Manager in advance of monthly meetings. 4.1. The CITY Recreation Manager, or staff delegated by Recreation Manager, and SLOMA Staff will meet monthly during the two (2) year term of this Agreement to review the specific public art projects. 5. SHARED USE OF ADJACENT CITY PREMISES. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described above, CITY also desires to allow SLOMA shared use of the lawn area located immediately to the northeast of SLOMA’s existing leased Premises (the “Mission Plaza lawn area” or the “Shared Use Area.” During the term of this Agreement, SLOMA shall be permitted to install public art exhibits such as sculpture or other art mediums appropriate for an outdoor environment, as well as conduct outdoor educational activities on the Shared Use Area at such times and on such conditions as approved by the CITY. Installation of any such outdoor public art exhibits shall be subject to the Public Art Policies and Procedures Manual, ensuring all planning and building permits are in place as may be required. Any educational activities or events shall be subject to the standard terms and conditions that would otherwise be applicable with a temporary special events permit issued by City’s Parks and Recreation Department. CITY shall be responsible for normal and customary maintenance and upkeep of the Shared Use Area (e.g., mowing, irrigation, etc.). SLOMA shall be responsible for maintenance, security, special insurance provisions, and any and all costs whatsoever associated with activities and events that occur under the direction of SLOMA within the Shared Use Area, and with the installation of outdoor art exhibits or sculpture that SLOMA may place within the Shared Use Area. In the event that shared space is damaged during installation or an event in shared space because of actions, or inactions, taken by SLOMA or their contractors, SLOMA will be responsible for costs of repair in compliance with City standards and staff approval. Uses of the Shared Use Area other than those contemplated in this Paragraph 5 are prohibited and shall be considered a breach of this Agreement. 6. LICENSES AND PERMITS. At all times during the term of this Agreement, SLOMA shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. SLOMA shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement. Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 7 7. COMPLIANCE WITH LAW. SLOMA shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by SLOMA or in any way affect the performance of the Services pursuant to this Agreement. SLOMA shall not permit others to violate any applicable laws, regulations, or ordinances in, on, or through the use of the Leased Premises or Shared Use Area. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the SLOMA to comply with this Section. Failure to comply with local ordinances may result in monetary fines and cancellation of this Agreement. 8. COMPLIANCE WITH INDUSTRY STANDARD. SLOMA shall provide services acceptable to City in strict conformance with the Agreement. SLOMA shall also provide in accordance with the standards customarily called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other representative of City is required, it is understood to be general approval only and does not relieve SLOMA of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices. 9. INDEPENDENT COMMUNITY PARTNER. 9.1. SLOMA is and shall at all times remain as to the City a wholly independent community partner. The personnel performing the Services under this Agreement on behalf of SLOMA shall at all times be under SLOMA’s exclusive direction and control, except as set forth in this Agreement upon mutual acceptance of the parties. Neither City nor any of its officers, employees, or agents shall have control over the conduct of SLOMA or any of SLOMA’s officers, employees, or agents, except as set forth in this Agreement. SLOMA shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. SLOMA shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. 9.2. No employee benefits shall be available to SLOMA in connection with the performance of this Agreement. Except for the fees paid to SLOMA as provided in the Agreement, City shall not pay salaries, wages, or other compensation to SLOMA for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to SLOMA for injury or sickness arising out of performing services hereunder. 10. PRESERVATION OF CITY PROPERTY. SLOMA 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 SLOMA’s operations, it shall be replaced or restored at SLOMA’s expense. The City’s facilities shall be replaced or restored to a condition as good as when the SLOMA began the work. 11. IMMIGRATION ACT OF 1986. SLOMA warrants on behalf of itself and all subconsultants engaged for the performance of the Services that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the Services hereunder. 12. NON-DISCRIMINATION. In the performance of the Services, SLOMA agrees that it will not engage in, nor permit such subconsultants 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. 13. INSPECTION. City shall at all times have the right to inspect the work being done under this Agreement and SLOMA shall furnish City with every reasonable opportunity and assistance required for City to ascertain that the Services of the SLOMA are being performed in accordance with the requirements and intentions of this Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 8 Agreement. 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 SLOMA of any of its obligations under the Agreement. 14. RELEASE OF INFORMATION. All information gained by SLOMA in performance of this Agreement shall be considered confidential and shall not be released by SLOMA without City's prior written authorization. SLOMA, its officers, employees, agents, or subconsultants, shall not, without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided SLOMA gives City notice of such court order or subpoena. SLOMA shall promptly notify City should SLOMA, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless SLOMA is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent SLOMA and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to SLOMA in such proceeding, SLOMA agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by SLOMA. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 15. OWNERSHIP OF DOCUMENTS. SLOMA shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. SLOMA shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. SLOMA shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services under this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of SLOMA. With respect to computer files, SLOMA shall make available to the City, at the SLOMA’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. SLOMA hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by SLOMA in the course of providing the Services under this Agreement. 16. 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, Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 9 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. 17. INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), SLOMA 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 SLOMA’s performance or SLOMA’s failure to perform its obligations under this Agreement or out of the operations conducted by SLOMA, including the City’s passive negligence, except for such loss or damage arising from the sole or active 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 SLOMA’s performance of this Agreement, SLOMA 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. The City shall execute an agreement with each subcontractor (ARTIST) which will include an Indemnification and Defense clause for the ARTIST’s performance or failure to perform its obligations under the agreement. 18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. 18.1. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon SLOMA at least thirty (30) days prior written notice. Upon receipt of said notice, SLOMA shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. 18.2. In the event this Agreement is terminated pursuant to this Section, the City shall pay to SLOMA the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, SLOMA will submit an invoice to the City 19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines SLOMA is not faithfully abiding by any term or condition contained herein, the City may notify SLOMA in writing of such defect or failure to perform. This notice must give SLOMA a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency. 19.1. If SLOMA has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to SLOMA to said effect (“Notice of Termination”). Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the Agreement except to comply with the obligations upon termination. 19.2. In said event, SLOMA 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 SLOMA as may be set forth in the Agreement payment schedule; compensation for any other work or services performed or provided by SLOMA shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall scope. Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 10 19.3. The City reserves the right to delay 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 SLOMA be entitled to receive in excess of the not to exceed amount shown in this Agreement. 20. INSURANCE SLOMA shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and made part of this Agreement. 21. SAFETY PROVISIONS. SLOMA shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 22. PUBLIC AND EMPLOYEE SAFETY. Whenever SLOMA 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. 23. UNDUE INFLUENCE. SLOMA declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City has or will receive compensation, directly or indirectly, from SLOMA, or from any officer, employee or agent of SLOMA, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 24.1 ASSIGNMENT. SLOMA 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. As required above, before retaining or contracting with any subconsultant for any services under this Agreement, City must consent to such assignment of performance in writing. For City to evaluate such proposed assignment, SLOMA shall provide City with the identity of the proposed subconsultant, a copy of the proposed written contract between SLOMA and such subconsultant, which shall include an indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from City for such insurance. 24. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the appropriate review authority according to the City’s Financial Management Manual. SLOMA shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized by the City in advance and in writing. 25. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) United States Mail, certified, postage prepaid, return receipt requested. All such notices shall be delivered to the addressee or addressed as set forth below: To City: Parks and Recreation Department City of San Luis Obispo 1341 Nipomo St. Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 11 San Luis Obispo, CA 93401 To SLOMA: San Luis Obispo Museum of Art 1010 Broad Street San Luis Obispo, CA 93401 26. GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior Court of San Luis Obispo County, California, regardless of where else venue may lie. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. 27. AUTHORITY TO EXECUTE AGREEMENT. Both City and SLOMA do covenant that each individual 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 SAN LUIS OBISPO MUSEUM OF ART a municipal corporation and charter city _________________________________ ______________________________ Whitney, McDonald, City Manager By: Leann Standish, Executive Director Executive Director APPROVED AS TO FORM: SAN LUIS OBISPO MUSEUM OF ART _____________________________ ______________________________ J. Christine Dietrick, City Attorney By: Ermina Karim Its: SLOMA Board President Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D EXHIBIT A SHARED USE AREA Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D Exhibit B City’s Insurance Requirements Without limiting SLOMA’s indemnification of City, and prior to commencement of Lease, SLOMA shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City. General liability insurance. SLOMA shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Workers’ compensation insurance. SLOMA shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). SLOMA shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers. Property insurance. The Museum of Art located at 1010 Broad St, San Luis Obispo, CA is included on the City’s property insurance schedule. However, upon commencement of construction of SLOMA improvements and betterments, or installation of equipment, with approval of City, SLOMA shall obtain and maintain insurance on SLOMA’s improvements and betterments. Policy shall be provided for replacement value on an “all risk” basis. There shall be no coinsurance penalty provision in any such policy. Proof of insurance. SLOMA shall provide certificates of insurance and required endorsements to City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City for the contract period and any additional length of time required thereafter. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of coverage. SLOMA shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by SLOMA, their agents, representatives, employees, or subconsultants. Primary/noncontributing. Coverage provided by SLOMA shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured. City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by SLOMA or City AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 13 Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D will withhold amounts sufficient to pay premium from SLOMA payments. In the alternative, City may cancel this Agreement. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow SLOMA or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. SLOMA hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants. Enforcement of contract provisions (non estoppel). SLOMA acknowledges and agrees that any actual or alleged failure on the part of the City to inform SLOMA of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the SLOMA maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the SLOMA. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Notice of cancellation. SLOMA agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the SLOMA’s insurers are unwilling to provide such notice, then SLOMA shall have the responsibility of notifying the City immediately in the event of SLOMA’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal. Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that SLOMA’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. Pass-through clause. SLOMA agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by SLOMA (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of SLOMA. SLOMA agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 14 Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D with the requirements of this section. However, in the event SLOMA’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, SLOMA shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the SLOMA, but in all other terms consistent with the SLOMA’s requirements under this agreement. This provision does not relieve the SLOMA of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide SLOMA with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the SLOMA under this agreement given the limited scope of work or services provided by the subcontractor. SLOMA agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to City for review. City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the SLOMA ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the SLOMA, the City and SLOMA may renegotiate SLOMA’s compensation. Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter. Timely notice of claims. SLOMA shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from SLOMA’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Additional insurance. SLOMA shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection. SLOMA’s personal property, fixtures, equipment, inventory, and vehicles are not insured by City against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY Page 15 Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D Docusign Envelope ID: 9F756B33-6049-410D-A70C-C7F720D0558D