HomeMy WebLinkAbout01/04/2000, C7 - ASSIGNMENT OF PRADO DAY CENTER LEASE TO THE ECONOMIC OPPORTUNITY COMMISSIONcounat - °; 4_oo
j agenba REpoR C7
CITY OF SAN LUIS OBISPO
FROM: Ken Hampian, Assistant City Administrative Officerao
Prepared By: Wendy George, Assistant to the City Administrative Officer
SUBJECT: ASSIGNMENT OF PRADO DAY CENTER LEASE TO THE
ECONOMIC OPPORTUNITY COMMISSION
CAO RECOMMENDATION
Approve the assignment of the Prado Day Center lease from the Interfaith Coalition for the
Homeless to the Economic Opportunity Commission.
DISCUSSION
Background
In late 1993, the City took the lead to coordinate an effort to identify possible alternative
locations for the Peoples' Kitchen noontime meal program. The commitment was made to work
with representatives from many community organizations to find a longer term and more
acceptable location than the portico at the Old Mission. As a result of these initial efforts, in
1994, the City Council gave conceptual approval to the use of City property on Prado Road near
the Corporation Yard. In order to actually build the Center, steering committee was eventually
formed consisting of the City, the County, the Chamber of Commerce, the Downtown
Association and the Interfaith Coalition for the Homeless (ICH). Under the guidance of the
steering committee, the Prado Day Center was constructed, with financial help from the City and
the County and donations of money and labor from the community at large. The Center opened
for operation on September 15, 1997.
Prior to actual construction of the Center, the ICH stepped forward and agreed to become the
overall administrating organization, with day -to -day operations contracted to the Economic
Opportunity Commission (EOC). As soon as ICH agreed to take the administrative lead, the City
agreed to lease it the Prado Road site for a period of five years, with options to extend by mutual
agreement.
Assignment of Lease
ICH has been providing administrative oversight of the Prado Day Center for more than two
years now, and about six months ago the organization informed the steering committee that this
responsibility had become an unacceptable burden to the ICH volunteers. ICH requested that it
be relieved of this charge by December 31, 1999. Since that time, the steering committee has
explored many different options for shifting the responsibility. While some questions still
remain relating to formalizing the status of the steering committee as a non -profit organization, it
C7 -1
Council Agenda Report — Assignment of Prado Day Center Lease
Page 2
has become increasing clear that the most appropriate agency to continue the on -going daily
operation of the Center is the EOC.
As a result, the EOC board has agreed to assume the responsibility for the lease of the Prado
Road site, as well as becoming the subrecipient for City and County Community Development
Block Grant (CDBG) funds. However, the EOC has been very clear'in stating that it would only
assume these responsibilities on that condition that it not be required to carry on fundraising
activities for the Center. Accordingly, the Friends of the Prado Day Center has been established
as a fundraising arm of the steering committee.
The attached Assignment of Lease document transfers the lease of City property on Prado Road
from the ICH to the EOC. All terms and conditions of the lease remain the same, including the
termination date of November 30, 2001, and the ability to extend the agreement for two
additional three year periods.
FISCAL IMPACT
There is no fiscal impact to the lease assignment.
ALTERNATIVES
Council could direct staff to find a different assignee. However, the EOC has been successfully
operating the Center for two years, and after considering various options for a number of months,
the steering committee believes that EOC is the best candidate to assume responsibility for the
lease
ATTACHMENTS
Assignment of Lease
C7 -2
ASSIGNMENT OF LEASE OF A PORTION OF REAL PROPERTY LOCATED AT
45 PRADO ROAD FOR THE PRADO DAY CENTER
APN 53 -05145
This Assignment of Lease C Assignment') is made as of
between the
IN=AITH COALMON FOR THE HOMELESS and the EQUAL OPPORTUNITY COMMISSION.
RECITALS
A. The City of San Luis Obispo, as landlord, and Assignor, as Tenant, executed a lease dated as of
September 3, 1996, a copy of which is attached and incorporated by reference as Exhibit A, pursuant to
which Landlord leased to Tenant and Tenant leased from Landlord that certain property described as 27,400
square feet of the City's real property located at 45 Prado Road and known as a portion of APN 53- 051 -45,
San Luis Obispo County, California for a term of five (5) years commencing on December 1, 1996 and
ending on November 30, 2001, subject to earlier termination as provided in the Lease.
B. Assignor desires to assign the Lease to Assignee, and Assignee desires to accept the assignment
of the Lease from Assignor and assume obligations under the Lease.
Therefore, for good and valuable consideration, the receipt and adequacy of which are
acknowledged, Assignor, and Assignee agree as follows:
SECTION 1. ASSIGNMENT.
Assignor assigns and transfers to assignee all right, title, and interest in the Lease and Assignee
accepts from Assignor all right, title, and interest, subject to the terms and conditions set forth in this
Assignment.
. SECTION 2. ASSUMPTION OF LEASE OBLIGATIONS.
Assignee assumes and agrees to perform and fulfill all the terms covenants, conditions, and .
obligations required to be performed and fulfilled by Assignor as Lessee under the Lease, including the
malting of all payments due to or payable on behalf of Lessor under the Lease as they become due and
payable.
C7 -3
Page 2 of 3
SECTION 3. ASSIGNOR'S COVENANTS.
(a) Assignor covenants that the copy of the Lease attached as Exhibit A is a true and accurate copy
of the Lease as currently in effect and that there exists no other agreement affecting Assignor's tenancy
under the Lease.
(b) Assignor covenants that the Lease is in full effect and no defaults exist under the Lease, nor any
acts or events, which, with the passage of time or the giving of notice or both, could become defaults.
SECTION 4. LITIGATION COSTS.
If any litigation between Assignor and Assignee arises out of this Assignment or concerning the
meaning of interpretation of this Assignment, the losing party shall pay the prevailing party's costs and
expenses of this litigation, including, without limitation, reasonable attorney fees.
SECTION 5. INDEMNIFICATION.
Assignor indemnifies Assignee from and against any loss, cost, or expense, including attorney fees
and court costs relating to the failure of Assignor to fulfill Assignor's obligations under the Lease, and
accruing with respect to the period on or prior to the date of this Assignment. Assignee indemnifies
assignor from and against any loss, cost, or expense, including attorney fees and court costs relating to the
failure of Assignee to fulfill obligations under the Lease, and accruing with respect to the period subsequent
to the date of the Assignment
SECTION 6.
AND ASSIGNS.
This Assignment shall be binding on and inure to the benefit of the parties to it their heirs,
executors, administrators, successors in interest, and assigns.
SECTION 7. GOVERNING LAW.
This Assignment shall be governed by and construed in accordance with California law.
The parties have executed this Assignment as of the date first above written.
INTERFAITH COALITION FOR THE HOMELESS:
By:
EQUAL OPPORTUNITY COMMISSION:
By:
C7-4
Page 3 of3
CONSENT OF LANDLORD
The undersigned, as Landlord Linder the Lease, consents to this Assigmnent of the Lease to
Assignee.
ATTEST:
City Clerk, Lee Price
APPROVED AS TO FORM:
W, �' /F/v NSA
/ ���
CITY OF SAN LUIS OBISPO,
A Municipal Corporation
Mayor, Allen Settle
C7 -5
Lx,h, bit H
LEASE OF A PORTION OF REAL PROPERTY LOCATED
AT 45 PRADO ROAD FOR THE PRADO DAY CENTER
APN 53 -051-45
This lease, made and entered into this and day of Sept. 1996 by and between the UTY
OF SAN LUIS OBISPO (hereinafter "City") a municipal corporation, and the
INTERFAITH COALITION FOR THE HOMELESS (ICH) (hereinafter "Lessee"), a
community based non -profit organization.
WHEREAS, the parties hereto desire to enter into an agreement whereby the City
will lease to Lessee approximately 29,400 square feet of the City's real property located at
45 Prado Road and known as a portion of APN 53 -051 -45, San Luis Obispo County,
California; and,
WHEREAS, the Council of the City of San Luis Obispo has determined that the
lease of said property to Lessee will provide significant public benefit both directly and
indirectly through the operation of a homeless. services center;
NOW, THEREFORE, in consideration of the promises and agreements, covenants
and conditions stated herein, the parties agree as follows:
1. PREMISES LEASED
City leases to Lessee that portion of APN #53- 051 -45, real properly as shown
on Exhibit A to this lease, subject to any rights and /or easements as may be legally recorded
with the County Recorders Office for the County of San Luis Obispo.
2. TERM
The term of this lease shall commence on Dec. 1 . 1996, and extend for
a period of five (5) years.
1
This lease . may be renewed for two (2) additional three (3) year periods, each
renewal period to be by mutual agreement of the Parties.
C7 -6 \
Lease - APN #53 -051-45
Page 2
4. RENTAL
Lease of this property for the purposes described herein shall be at no charge
to the Lessee. Lessee agrees to provide homeless services at no charge to the City and
community as a public benefit.
5. LTTILPTIF.S
Lessee shall make all arrangements for any payment due for all utilities and
services furnished (including any and all costs for .connection charges) to or used by it on
the leased premises, provided however, the City shall provide water, sewer, and trash service
at no cost to Lessee. The City assumes no responsibility and makes no warranties regarding
any utilities, and Lessee hereby holds the City harmless in this regard.
6. PROPERTY OR POSSESSORY INTEREST TAX
If this lease should result in the assessment of taxes for this real property,
including, but not limited to, possessory interest taxes, Lessee agrees that any tax liability
will result in an increase in the amount of rent due to the City, equal to the amount of any
such tax liability.
7. USE OF PROPERTY
Lessee shall be entitled to use said property for the purpose.of operation of
a homeless services center, and for no other purpose. Operation of the center shall consist
of the provision of social services to the homeless, including food services. Lessee agrees
that the use of said property as described shall be for the sole purpose of supporting
Lessee's non -profit homeless services and programs and in no way shall be used for "for
profit" activities. Lessee further agrees that a full description of the use of said property,
and activities and improvements occurring on the property will be provided to the City
Administrative Officer annually, and, any change in use will be submitted to the City for
approval prior to commencement of that use or improvement.
g. AT TRRATIONS AND REPAIRS
Lessee shall be responsible for any and all alterations, improvements, or
repairs to the property necessary for the orderly conduct of Lessee's operations. Lessee
shall provide to the City for approval, prior to commencement of any work or activity, a
complete description of any physical alteration of the property. Lessee further agrees to
remove and return to original, any alterations to said property made by Lessee as requested
by the City upon termination of this Lease at Lessee's sole cost. Lessee shall be responsible
for any and all repairs - of said property and improvements there -on. Any and all
C7 -%
Lease - APN #53-051 -45
Page 3
improvements and alterations to said property shall be made in conformance to applicable
laws and requirements. Lessee shall be responsible for obtaining any necessary permits and
the cost of such permits as may be necessary to complete the improvements and /or
alterations.
9. MAINTENANCE OF PROPERTY
Lessee shall maintain property in an orderly and first class condition at all
times, satisfactory to the City Administrative Officer or his/her designee. Lessee shall
maintain adjacent properties free of litter resulting from Lessee's activities. Lessee shall at
all times maintain property in a manner consistent with any applicable federal, state, or local
laws, regulations, or grant requirements and in such a manner as to ensure the protection
of the public, Lessee's employees, volunteers, invitees, and the environment.
10. TRAFFIC CONTROL
Lessee shall be responsible for control of traffic related to Lessee's operations.
Lessee shall establish adequate controls, traffic flow, parking locations and procedures so
as not to interfere with the flow of traffic on Prado Road and the Water Reclamation
Facility (WRF) access road. Lessee shall provide and maintain the controls, clearances and
visibility necessary to ensure the safe and orderly. ingress and egress of the public,
employees, volunteers and invitees to and from the property. All vehicles shall be properly
parked within the boundaries of the leased property. No vehicles shall be parked on the
WRF access road. Lessee shall at all times ensure a minimum clearance of twenty (20)
feet of available roadway for Fire access on the WRF access road.
11. COORDINATION WrM CITY
Lessee shall coordinate with the City any activities which have potential to
impact in any way City operations. Upon notification by the City, Lessee shall immediately
cease any operation deemed to interfere with the conduct of the orderly business of the City
in its operations.
12. PERMITS
Lessee shall maintain any and all permits necessary for the conduct of the
Lessee's business at the site as required by Law.
13. INDEPENDENT CONTRACTOR
Lessee and all of its agents, representatives, and participants in any manner
connected with Lessee's operations shall be independent contractors or volunteers for
C7 -11
Lease - APN #53 -051 -45
Page 4
Lessee and shall not for any purpose be considered as employees or agents of City.
14. SUBJECT TO ALL LAWS AND BINDING
This lease shall be subject to and subordinate to all Federal, State and City
laws, rules, regulations and grant requirements, including any and all conditions imposed by
the City Council.
15. TERMINATION FOR CAUSE
Each of the terms, covenants and conditions of this lease are mutual and
dependant, and any breach of any of the said terms, covenants or conditions shall constitute
grounds for the termination, cancellation or forfeiture of this lease.
16. INDEMNIFICATION
Lessee shall defend, indemnify and save harmless the City and its agents,
officers and employees against any and all claims, demands, damages or liabilities (whether
or not caused by negligence) including civil or criminal fines, arising out of or relating to any
of the following:
(a) any damage, injury or death suffered by any person or corporation and
caused by any act or omission of Lessee, its agents, employees, volunteers,
tenants, invitees or assigns under this agreement;
(b) any damage caused by any act or omission of Lessee, its agents,
employees, volunteers, tenants or assigns under this agreement to any property
of the City and its agents, officers and employees;
(c) any damage, injury or death suffered by Lessee, its agents, employees,
volunteers, tenants, invitees or assigns under this agreement, except for claims
and demands resulting from the sole negligence or willful misconduct of the
City and its agents, officers and employees;
(d) Lessee's violation of any law, any regulation or any term or condition
of any permit
Lessee shall also defend, indemnify and save harmless the City and its agents,
officers and employees against any and all expense of investigating and
defending against such claims and demands, including, but not limited to,
attorney's fees and costs.
C7 -12
Lease - APN #53 -05145
Page 5
17. INSURANCE
Lessee shall provide insurance, including but not limited to workers
compensation insurance, if necessary, as described in Exhibit B to this lease, Insurance
Requirements for Lessees including additional coverage for Automobile liability and
Subcontractors as identified in Exhibit C to this lease, Insurance Requirements of Contractors.
18. ASSIGNMENT
Lessee shall not assign this lease in whole or in part nor sublet the premises
in whole or in part without the prior written consent of the City. If the City consents to a
sublease, Lessee shall remain responsible for the performance of all the terms, covenants
and conditions of this lease including and in particular the use of the property as described
in Paragraph 7 of this agreement. If Lessee assigns or subleases said lease or any portion
thereof without the prior written consent of the City, then said sublease or assignment shall
be void, and at the option of the City, this lease shall immediately cease and terminate.
No interest of Lessee in this lease shall be assignable by operation of law.
Each of the following acts shall be considered an involuntary assignment:
a. If Lessee is or becomes bankrupt or insolvent, makes an assignment for
the benefit of creditors;
b. If a writ of attachment or execution is levied on this lease;
C. If, in any proceeding or action in which Lessee is a party, a receiver is
appointed with authority to take possession of the premises.
Any involuntary assignment shall constitute a default by Lessee and City shall
have the right to elect to terminate this lease. .
19.
The City shall have the right at all reasonable times to enter upon the
property for the purpose of inspecting the same, determining that all the terms, covenants
and conditions of this lease are being kept and performed by Lessee.
The City Administrative Officer or his /her designee shall have all necessary
authority to enforce the terms, covenants and conditions of this lease. Upon notice of
violation of any of the terms, covenants and conditions of this lease, Lessee shall take
C7 -13
Lease - APN #53-05145
Page 6
whatever actions are necessary to correct the violation. All violations shall be corrected
within 30 days from the date of Notice and Lessee shall provide to the City a report
outlining the cause of the violation and corrective measures taken to remedy the violation
and prevent its recurrence.
Significant violation shall be defined as any violation of the terms, covenants
and conditions of this lease occurring and noticed more than two times in any calendar year,
or, violation and notice of violation of any three terms, covenants and conditions of this
lease occurring within any calendar year, or, failure to correct a violation of any of the
terms, covenants and conditions of this lease within. 90 days from the date of Notice.
Significant violations as defined herein will result in a hearing before the Council of the City
of San Luis Obispo to determine appropriate remedies up to and including termination of
this lease as defined under Paragraph 15 of this agreement.
21. LIENS
Lessee shall keep the premises free from any liens arising out of any work
performed for, materials furnished to, or obligations incurred by Lessee and shall hold City
harmless against the same.
22. TERMINATION WITHOUT CAUSE
The City Council may by motion terminate this agreement at its sole discretion
after a public hearing held upon thirty (30) days written notice to Lessee. Said termination
shall be effective ninety (90) days after City Council action to terminate the Lease.
23. APPEALS
Actions and determinations by the City Administrative. Officer or his/her
designee, relative to the terms, covenants and conditions of this lease may be appealed to
the City Council pursuant to the provisions of Municipal Code Chapter 120.
24. NO ,
Any notice required or permitted to be given or served under the terms hereof
shall be considered delivered when sent registered, return receipt requested, through the
United States mail to:
C7 -14
Lease - APN #53-05145
Page 7
Day
City Administrative Officer
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
(805) 781 -7114
�I.. nizo
Lessee
Interfaith Coalition for the Homeless
P.O. Box 1575
San Luis Obispo, CA 93406
(805)
This lease and attached Exhibits A and B contains the entire agreement of the
parties on the matters covered and it may not be modified except by written agreement.
IN WITNESS WHEREOF, the parties hereto have executed this agreement
by their proper officers duly authorized, on the date first above written.
CITY OF SAN LUIS OBISPO,
a Municipal Corporation
B.
Mayor Allen Settle
ATTEST:
City Clerk Bo ie (= -
APPROVED AS TO FORM:
JA 'AA
1 1"
I
INTERFAITH COALITIONFOR
THE HOMELESS (ICH)
By: W'' K - W
C7 -15
LEGEND p 10 t.
HIGHWAY 101 ,.
_ _ 1
VU AAUCWWWX COAS RAILR0401 4VG
• 830'4YJ!- 40730.00. -1014* 12'37. Lai 66.06.106 -11 •
13'(CAtZl E 430.44'(06.n ..
77777 ACC
lire pre .6s yrGated, Nl3'Ce30 E 196.72'(00 -1) - —2 l ►w /lae RCC 1.900
lien Oil pair 60 OR 104 I ►[R caLTRaNs
569'10'01 E 69]4'(00- 1)�c. -�•'
142641:'E 40' 10d -I CALCI --
APN #53- 051 -45
11 "� 64'
PARCEL 'A' . 0 ,/4/
�N64'OS'9r ii.00'1R -11 — .
• 25'16' E \�.9� tl , .
64' STRIP RESERVED FOR
. ROAD R10N1 OF waT I r
W. 2' 32]4 L 177.93(4 -1 .CALM ,
+ °*- Lease v RRS►AC PER (q.21
?�. site
CLP
PC
11 L�E
aO� 202 PER (R 31921 rY
rn
I �) a • _— 71E— tq-21 1 N26'15'E 792.013'(R -11 '
C- �oa�- s'w =zi! 4d9.4] tcA�ct
V
r- / 10'9EwEq E611L•'i 7/ l7(�) VICINITY
1 N73' 6']O'w a9.t9'tR •21
J 163' OR 323 = �C `'� O NO SC: L
•j '. ,•.4,r'q— ��� /I Il
Hair 23'307 w 97.10•IR•2 n \ 1 Q G�
� \` i7. � �•. REFER En.
N 64.26'10 -w 64.6- of 21 •` a R -Z C f
,¢ s]74e']o'w a 31 l`
S 630'36'!O'w 143.30'— _-- ^`!' «•� 7/
Iz -/' CO Dd-2 2•
66Q A
04F -.5 Li
4A STREET D`/ -` "
(M.WERLY AVILA ROAD). HIGUERA ST od -s
R -r. t
R -e; u
�, zoo MIN�OR SUBoDIVISI(
ENG /NEER S CFiQ77F/CR7E ` L • _ 82-88
A l-1 combi/latlon of the follow,
This fno? gyros preoored by me or tender my Lots 8, 9. /O // /0 r//d /9 and po,
driectibn ono, syos compiled ,,'Torn recorv' o'ore Lots 6, 7, end 17. of the son Lv,
in tonleYmoxe lLith the
Sd repeire TCf7ts o�f the Suburban • Treat and'
L•ot3 s end por
tin of L01 is ivision Hap oat and /04-.0/ and ,/nces of
the request of 71he City of Seri Gu6 Oeispo
3/n 71.. in Jude . cog 19az . / he.,TvAg stoft. »lot rh/a %tertford - ehacmen Subd'v sir
VIC _ _ pone/ map subston. ; v/� e�onforms rte 77e C/ty and Coernty of Son Guts O-'
city Of P�_ ado -Day.Care Center, Lease
�► SMILUISOBJSPO 43 Prado . (,
Public Works Department A Portion of APN #�`3 ='�$
955. Morro Street, Son Luis Obispo, 6A 93402 1 -45
CHAPTER FIVE - Exhibit IS
INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS)
Lessee 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 Lessee's operation and use of the leased premises. The cost of such insurance shall be
borne by the Lessee.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form
Co 0001).
2. Workers' Compensation insurance as required by the State of California and
Employer's Liability insurance (for lessees with employees).
3. Property insurance against all risks of loss to any tenant. improvements or
betterments.
Minimum Limits of Insurance
Lessee 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 projectAocation or the general aggregate limit shall be twice the
required occurrence limit.
2. Employer's Liability: $1,000,000 per accident for bodily.Miury or disease.
3. Property Insurance: Full replacement cost with no coinsurance penalty provision.
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- ynsured retentions as respects the city, its trustees, officers, employees and volunteers,
or the Lessee shall provide a financial guarantee satisfactory to the city guaranteeing
payment of losses and related investigations, claim administration and defense expenses.
EXHIBIT "grr
=VfflQWPMWERUMU0ZW C7 -17 27.
CHAPTER FIVE Exhibit jo (continued)
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
L The city, its trustees, officers, employees and volunteers are. to be covered as
insureds with respect to liability arising out of ownership, maintenance or use of
that part of the premises leased to the lessee.
2. The Lessee's insurance coverage shall be primary insurance as respects the city, its
trustees, officers, employees and volunteers. Any insurance or _self - insurance
maintained by the city, its trustees, officers, employees or volunteers shall be excess
of the Lessee's insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be canceled, 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
ANIL
Yerijication of Coverage
Lessee shall furnish the city with original certificates and amendatory endorsements effecting
coverage required by this clause. The endorsements should be on forms provided by the city
or on other than the city's forms, provided those endorsements or policies conform to the
requirements. Al certificates and endorsements are-to be received and approved by the city
before work commences. The city reserves the right to require complete, certified copies
of all required insurance policies, including endorsements effecting the coverage required
by these specifications at any time.
Ed1&= Jawma M
2s
C7 -18
CHAPTER FIVE
INSURANCE REQUIREMENTS FOR CONT ACMRS
Ec1:..ut &
Contractor 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 Contractor, his agents, representatives,
employees or subcontractors.
Mmimum 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 Business Auto Coverage form number CA 0001, code
1(any auto).
3. Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance.
J
.J
L�
L�
L;
Maumum Limits of Insurance
Contractor 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: $13000,000 per accident for bodily injury or disease.
Ded =Sks and Setf- 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 trustees, officers, employees and volunteers;
or the Contractor shall provide a financial .guarantee satisfactory to: the city guaranteeing
payment of losses and related investigations, claim administration and defense expenses.
,en,m, wpL.d.r In C eftww
Fly Jwwq M
rMA
C7 -19
23
CHAPTER FIVE _ Exhibit d (continued)
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to
contain, the following provisions:
I. The city, its trustees, officers, employees, and volunteers are to be covered as
insureds with respect to liability arising out of automobiles owned, leased, hired or
borrowed by or on behalf of the contractor, and with respect to liability arising out
of work or operations performed by or on behalf of the Contractor including
materials, parts or equipment furnished in connection with. such work or
operations. General, liability coverage can be provided in the form of an
endorsement to the Contractor's insurance, or as a separate owner's policy.
2 For any claims related to this project, the Contractor's insurance coverage shall be
primary insurance as respects the city, its trustees, officers, employees, and
volunteers. Any insurance or self - insurance maintained by the city, its trustees,
officers, employees, or volunteers shall be excess of the Contractor's insurance and
shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that
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
AVIL
Yerificadon of Coverage
Contractor shall furnish the city with original certificates and amendatory endorsements
effecting coverage required by this clause. The endorsements should be on forms provided
the city or on. other than the city's forms, provided those endorsements or policies
co rm to a requirements. All certificates and endorsements are to be received and
approved by _the city before work commences. The city reserves the right to require
complete, certified copies of all required insurance policies, including endorsements effecting
the coverage required by these specifications at any time.
Subcontradors°
Contractor shall include all subcontractors as insureds under its policies or shall furnisb .
separate certificates and endorsements for each subcontractor. All coverages for
subcontractors shall be subject to all of the requirements stated herein.
td. -.e. n.pti..mm, b cww.N.
"a` MW"W� 24
C7 -20