HomeMy WebLinkAbout12/17/2002, C5 - JOB ORDER CONTRACTING CONSTRUCTION DOCUMENTS i
A] council MmnDa 12-17-02
acEnba RepoiA
CITY O F SAN LUIS O B I S P O
FROM: Michael D. McCluskey,Public Wor s Director
Prepared By: Jay D. Walter, City Engine
SUBJECT: JOB ORDER CONTRACTRI CONSTRUCTION DOCUMENTS
CAO RECOMMENDATION
Approve contract with The Gordian Group to develop and implement Job Order Contracting
construction documents and system.
DISCUSSION
Background
In December 2001, the Director of Public Works authorized staff to research the concept of
implementing a Job Order Contracting (JOC) system for the City. After a review of existing
JOC programs in several cities and counties, we determined that a JOC system for the City of
San Luis Obispo would significantly enhance the Engineering Division's ability to deliver
Capital Improvement Plan (CIP)projects.
In May 2002, the Council approved a plan to implement alternative methods for contracting for
construction projects and authorized placing a measure to amend the City Charter on the ballot
for the November municipal election. In November 2002, voters approved Measure L-02 with
77% approval, which amended the City Charter and authorized the use of unit-price contracts for
maintenance-type construction projects. Along with amending the City's purchasing ordinance
and resolution (which is scheduled for Council approval on January 7, 2003), one of the next
steps in the process toward implementing JOC is to develop the construction task catalog,
technical specifications and the overall system that the City will use in implementing this
program. This is the purpose of the proposed contract with The Gordian Group (Gordian).
What is the JOC System?
A JOC system is a competitively bid, fixed unit price, indefinite quantity contract. Indefinite
quantity means that the quantities or units of work required during the term of the contract may
vary based on the City's needs. A JOC system is used for accomplishing repair, alteration,
modernization, maintenance, refurbishment, rehabilitation and repetitive construction work
needed for City buildings, structures, or other infrastructure assets.
The goals of the JOC program are to provide quality work, competitive costs and improved
responsiveness in completing maintenance-type construction projects. The JOC program
employs the services of a prime general contractor and a network of sub-contractors expert in the
complete range of building maintenance and construction tasks. JOC contracts are competitively
bid and awarded in the same manner as current City construction projects.
Job Order Contracting Construction Documents Page 2
The JOC system includes a Construction Task Catalog (CTC) and Technical Specifications. The
CTC is a comprehensive listing of over 160,000 pre-priced construction tasks. The standard
tasks are based on the use of experienced labor with high quality materials. All of the unit task
prices are approved by the City and incorporate prevailing State wage and local materials cost
data. The Technical Specifications are similar to the City's Standard Specifications in that they
specify the quality of materials and labor required for each JOC task.
A contractor's bid is in the form of an adjustment factor, expressed in terms of a percentage of
the specified CTC prices such as 115 percent or 125 percent. Contractors generally bid two
adjustment factors: one for work performed during normal business hours and another for work
performed outside of normal business hours. These factors include profit and overhead costs and
apply to all items in the CTC. The contractor with the lowest composite adjustment factor is
awarded the Job Order Contract. The CTC, Technical Specifications and the successful
contractor's price adjustment factors are incorporated into the awarded contract.
After both the JOC contract has been awarded and the City's budget including CIP projects has
been adopted, the contractor and City staff meet on the selected CIP project site. A scope of
work is jointly developed by both parties and the contractor develops a proposal based upon the
CTC and the Technical Specifications. The contractor estimates quantities and what
construction tasks are necessary, develops a schedule to perform the work and submits a list of
subcontractors who will be hired for the project. If the proposal, also called a Task Order, is
acceptable to the City (and within the CIP budget), the contractor can be issued a notice to
proceed, and work can begin.
Thereafter, as individual building maintenance and construction projects and their funding are
identified, the City and the prime JOC contractor develop the scope of work for the project. All
projects must meet the performance criteria defined by the City and included in the Technical
Specifications of the JOC contract.
The City's Disadvantaged Business Enterprise (DBE) Program goals will be part of the
Technical Specifications of the JOC contract. Prime contractors and subcontractors will be
invited to attend informational meetings regarding how to participate in the JOC process.
As a general rule, JOC systems in place around the country claim to save from 10% to 15% of
the capital costs of the projects. The savings are realized as both direct and indirect costs,
typically reduced staff time to develop the projects and the efficiency of a larger, single contract
with fixed costs for the tasks performed. The JOC program implemented by San Luis Obispo
County is reporting project cost savings ranging from 7% to 12% when compared to traditional
procurement and contracting methods.
How Does the City Develop a JOC System?
The first step in the process to implement a JOC system is to prepare the Construction Task
Catalog and Technical Specifications, and create the computer software to track and manage the
projects.
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Job Order Contracting Construction Documents Page 3
Gordian is a consulting firm specializing in services related to the development and
implementation of JOC systems. Gordian has successfully implemented JOC systems for over
60 federal, state, and local government agencies since 1985, including the California State
University System, the Alameda Housing Authority and the counties of Ventura, San Diego, Los
Angeles, San Luis Obispo, Kern; and the City and County of San Francisco. Gordian has
developed proprietary information including the CTC and Technical Specifications, project
tracking software and bid documents necessary to establish a JOC system. Gordian will also
work with the City to enhance the City's existing DBE directory from which the prime JOC
Contractor may choose subcontractors. Gordian will provide software and develop a website to
inform contractors of the bidding opportunities. The software can also be used to track
participation within the City DBE program goals.
Gordian charges no initial up-front fees to implement a JOC system. However, Gordian does
eventually recoup their upfront work through a percentage fee of the task orders let under this
system. In return for providing a complete JOC system including document development,
procurement support, computer software, customized forms, management procedures, written
manuals, training for City and contractor personnel and follow-up support, Gordian receives a
fee of 5% of the first $5,000,000 of work that the City authorizes under the JOC system and
1.5% of any authorized work over $5,000,000. The Gordian fee is paid as a percentage of City-
authorized task orders on a cumulative basis.
Why Enter into an Agreement with Gordian to Develop a JOC System?
Because of the existing JOC systems in use with San Luis Obispo County and Cal Poly,
extensive work has already been done to develop the CTC and Technical Specifications for work
to be performed in our local area. Gordian is currently under contract with both the County and
Cal Poly to manage the development of their JOC systems and has agreed to provide the same
services to the City. The CTC and Technical Specifications both exceed 2,500 pages in length
and would consume months of staff time to develop. The City's current project management
software could provide project tracking but would need extensive modifications. It would be
counter productive to take staff away from working on CIP projects or other tasks to develop a
system that can be purchased for no up-front costs. Both the County and Cal Poly highly
recommend Gordian and have had no problems with ongoing support.
Sacramento County invited eleven firms to submit proposals for implementation of a JOC
system and only three firms submitted proposals. Two of the firms required start-up fees of
approximately $825,000 and were not able to produce the CTC, Technical Specifications or the
comprehensive software system to track projects in a timely manner.
Alameda County also completed an RFP process in which only one firm submitted a qualified
proposal based upon fee structure and the minimum level of unit pricing required in the RFP.
Researching the item further, City staff made contact with seven public agencies (Cities of San
Diego and San Francisco, Counties of Contra Costa, Sacramento, Alameda, San Luis Obispo,
and Cal Poly) currently using or in the process of awarding a contract for a JOC system. Of the
seven agencies contacted, only Sacramento County had more than one proposal submitted for
development of a JOC system. Only one firm, Gordian, has submitted a proposal to each of
these agencies during their RFP process.
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Job Order Contracting Construction Documents Page 4
Workload Impacts
As part of the Department of Public Works recent reorganization, a full time staff position has
been set up to handle the JOC contract as his primary duty. The work that this employee
previously performed can be done under the JOC contract or handled by other City staff.
Next Steps: JOC Ordinance and Resolution
Preparation of JOC construction documents is the first step in implementing the JOC program.
Following this will be adoption of an ordinance enacting the voter-approved Charter change and
implementing new purchasing guidelines that, while guiding the JOC program, will also guide
all City purchasing procedures.
These two actions are scheduled for the January 7, 2003 meeting, after the State certifies the
election results. At that time, along with adoption of an ordinance and resolution changes, staff
will be recommending that we begin advertising for bids for the JOC general contractor as soon
as the construction documents are ready, and that the CAO be authorized to award the contract to
the lowest responsible bidder. Should the Council decide at the January 7 meeting not to
proceed with the ordinance and resolution changes needed to implement the JOC program, the
City will have no cost obligation to Gordian.
In short, starting work on the JOC contract documents now allows us to go forward with this voter-
approved approach in a timely way,without any cost risk to the City should the Council not approve
the remaining implementation steps.
JOC Implementation Timeline
Council approves agreement with Gordian. December 2002
Gordian begins work on CTC and Technical Specifications. December 2002
Council approves ordinance and resolution changes needed to implement JOC. January 2003
CAO authorize invitation for bids for JOC construction contract. March 2003
CAO awards JOC contract. April 2003
Public Works issues first JOC task order. May 2003
CONCURRENCES
All City Departments that have CIP projects concur with implementing a JOC system. Positive
support has been received from the San Luis Obispo County Builders Exchange, the organization
that represents local contractors.
FISCAL IMPACT
There is no immediate fiscal impact to hiring Gordian, as they charge no up-front fee. We estimate
that a total of$5,000,000 from a variety of City fund sources will be used to complete the projects
in the first year's contract. Gordian's rate of 5% of the contract task orders would result in a
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Job Order Contracting Construction Documents Page 5
payment of up to $250,000 during the first year of the contract. The funding for the Gordian
payment would come out of the existing CII'project budgets, and would, presumably, be offset by
the savings anticipated to result from using the JOC program. Some of the work has previously
been approved by Council and is contained in the 2001-03 Financial Plan, Appendix B (Capital
Improvement Plan). Other projects will be completed during the second year of the contract based
on the projects that the Council approves as part of the 2003-05 Financial Plan. No project that has
not been previously budgeted and approved by Council will be completed using the JOC contract.
ALTERNATIVES
1. Use the RFP process to hire a consultant to create the JOC system. As noted previously,
the costs to develop the JOC system that have been proposed to other agencies represent a
significant initial cost. As a result, no other agency has hired an unproven consultant for this
effort.
2. Create the JOG system using City staff. Without additional help to deliver CIP projects, the
Engineering Division would fall further behind if they were required to create the JOC system in
house. Council goals would not be met and improvements to the City's infrastructure would not
be made in a timely manner,resulting in a higher cost of repair later.
3. Do not implement the JOC system Given the significant benefits of the program and voter
support for it,we do not recommend this option.
ATTACHMENT
Agreement with Gordian Group
ON FILE IN COUNCIL OFFICE
Gordian Proposal
I:\Council Agenda Reports\2002 agenda reports\CAR Gordian Group-JOC.doc
ATTACHMENT 1
-COPY--
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day
of by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as the City, and THE GORDIAN GROUP, INC., hereinafter referred to as the
Contractor.
WITNESSETH:
WHEREAS, the City wants to develop and implement a Job Order Contracting (JOC) system for
construction of maintenance-type Capital Improvement Projects.
WHEREAS, the citizens of San Luis Obispo approved a Charter amendment on November 5, 2002 that
allows the City to use fixed-unit-price contracts for public works in order to expedite construction of such projects.
WHEREAS, the Contractor is qualified to develop such a JOC system and has submitted a proposal dated
October 29, 2002 to do so that has been accepted by City, and is hereby incorporated into this agreement by
reference.
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 completion of JOC system development and assistance services,not to exceed thirty-six(36)
months after the award of a contract by the City to the first JOC construction contractor. The City shall,at its option,
have the right to two (2) successive extensions or renewals of the agreement to be exercised separately, each such
extension to be for a period of one(1)year.
2 CITY OBLIGATIONS. For providing the system development and assistance services specified
in this Agreement,the City will pay and the Contractor will receive therefore compensation as outlined in Section 5,
Schedule of Fees
3. CONTRACTOR OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by the City, the Contractor agrees with the City to provide
services as set forth below, and as outlined in proposal dated October 29, 2002, incorporated by reference. The
Contractor will provide a complete JOC system including a construction task catalog, technical specifications,
procurement assistance,computer software,customized forms,management procedures,written manuals,training for
City and contractor personnel, and follow-up assistance for the fees outlined in Section 5, Schedule of Fees. The
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ATTACHMENT 9
--COPY--
Contractor further agrees to the contract performance terms set forth in Exhibit A attached hereto and incorporated
into this Agreement.
4. LICENSE AGREEMENT. CONTRACTOR hereby grants to CITY and CITY hereby accepts
from CONTRACTOR a non-exclusive right, license, and privilege to use CONTRACTOR'S JOC System and other
related Proprietary Information in connection with the terms and conditions set forth in this Agreement. The parties
hereby agree that"Proprietary Information"shall include,but is not limited to,CONTRACTOR'S Construction Task
Catalog (also referred to as CTC, Unit Price Book and UPB), PROGENO software and support documentation,
training materials and other proprietary materials developed by CONTRACTOR. In the event this Agreement
expires or termin.ates-as provided herein,the Client shall return to CONTRACTOR all Proprietary Information in the
CITY'S possession.
CITY acknowledges that disclosure of Proprietary Information will result in irreparable harm to
CONTRACTOR for which monetary damages would be an inadequate remedy and agrees that no such disclosure
shall be made to anyone without first receiving the written consent of CONTRACTOR. CITY further acknowledges
and agrees to respect the copyrights, registrations, trade secrets and'other proprietary rights of CONTRACTOR in
the Proprietary Information during and after the term of this Agreement and shall at all times maintain complete
confidentiality with regard to the Proprietary Information provided to CITY.Not withstanding the foregoing, CITY
shall be allowed to distribute materials as required for the proper performance of JOC.
5. SCHEDULE OF FEES.In consideration of the Basic Services performed under Section 3 above,
CITY agrees to utilize the JOC system for the placement of at least two million dollars($2,000,000)in construction
services,and to pay CONTRACTOR a licensing fee according to the following schedule:
For any amounts cumulating up to and including five million dollars ($5,000,000) of work ordered under
the.JOC system,CITY agrees to pay CONTRACTOR five percent(i%) of that amount.
For any amounts cumulating over five million dollars($5,000,000)of work ordered under the JOC system,
CITY agrees to pay CONTRACTOR one and one-half percent(1 //291o)of that amount.
6. 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 Administrative Officer of the City.
7. 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.
ATTACHMENT 9
8.. '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 Public Works
City of San Luis Obispo
955 Morro Street
San Luis Obispo,CA 93401
Contractor The Gordian Group,Inc.
531 South Main St. Suite M7
Greenville, SC 29601
9. VENUE PROVISION. This contract has been executed and delivered in the State of California
and the validity, enforceability and interpretation of any of the clauses of this contract shall be determined and
governed by the laws of the State of California. The duties and obligations of the parties created hereunder are
performable in San Luis Obispo County and such County shall be the venue for any action or proceeding that may be
brought or arise out of, in connection with,or by reason of this contract.
10. AUTHORITY TO EXECUTE AGREEMENT. Both the CITY and the CONTRACTOR do
covenant that each individual executing this agreement on behalf of each parry 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,A Municipal Corporation
By:
City Administrative Officer
APPROVED AS TO FORM: THE GORDIAN GROUP, INC.
By:
.J r4lsovity
Attorney
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—COPY --
Exhibit A
CONTRACT PERFORMANCE TERMS
17777777
1. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate
prior to execution of the contract. Additional information regarding the City's business tax
program may be obtained by calling(805) 781-7134.
2. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor; materials, and licenses necessary to carry out
and complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
3. Laws to be Observed. The Contractor 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.
4. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
5. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges
and fees,and give all notices necessary.
6. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
7. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect the City property from injury or damage. If the City property is
injured or damaged as a result of the Contractor's operations, it shall be replaced or restored at
the Contractor's expense. The facilities shall be replaced or restored to a condition as good as
when the Contractor began work.
8. Immigration Act of 1986. The Contractor warrants on behalf of itself and all sub-contractors
engaged for the performance of this work 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 work hereunder.
9. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such sub-contractors 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.
10. Work Delays. Should the Contractor 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 Contractor.
11. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the services provided by the Contractor(Net 30).
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Exhibit A:Contract Performance Terms —COPY— Page A-2
12. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor 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 the Contractor of any of its obligations to fulfill its contract requirements.
13. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by the Contractor in preparing its invoices to City as a condition precedent to any
payment to The Contractor.
14. Interests of The Contractor. The Contractor covenants that it presently has no interest, and
shall not acquire any interest direct or indirect or otherwise,which would conflict in any manner
or degree with the performance of the work hereunder. The Contractor further covenants that, in
the performance of this work; no sub-contractor or person having such an interest shall be
employed. The Contractor 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 Contractor shall at all times be deemed an
independent contractor and not an agent or employee of the City.
15. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect
and hold the City and its agents, officers and employees harmless from and against any and
all claims asserted or liability established for damages or injuries to any person or property,
including injury to the Contractor's employees, agents or officers which arise from or are
connected with or are caused or claimed to he caused by the acts or omissions of the
Contractor, and its agents, officers or employees, in performing the work or services herein,
and all expenses of investigating and defending against same; provided, however, that the
Contractor's duty to indemnify and hold harmless shall not include any claims or liahility
arising from the estahlished sole negligence or willful misconduct of the City, its agents,
officers or employees.
16. Contract Assignment. The Contractor 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.
17. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify The Contractor
in writing of such defect or failure to perform; which notice must give the Contractor a ten (10)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor 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 Contractor to said effect. Thereafter, neither
party shall have any further duties, obligations, responsibilities or rights under the contract.
In said event, the Contractor 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 Contractor as may be set forth in
the Agreement payment schedule; compensation for any other work, services or goods performed
Exhibit A:Contract Performance Terms —COPY— Page A3
or provided by the Contractor shall be based solely on the City's assessment of the value of the
work-in-progress in completing the overall workscope. In no event, however, shall the contractor
be liable for any amount in excess of the reasonable value of its services that remains unpaid on
the day the Contractor received the City's Notice of Termination.
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 Contractor be entitled to
receive in excess of the compensation quoted in its proposal
18. Ownership of Materials. All original drawings, plan documents-and other materials prepared
by or in possession of the Contractor as part of the work or services under these specifications,
except for the Proprietary Information specified in Section 4, License Agreement, shall become
the permanent property of the City,and shall be delivered to the City upon demand.
19. Release of Reports and Information. Any reports, information, data, or other material given
to, prepared by or assembled by the Contractor as part of the work or services under these
specifications except for the Proprietary Information specified in Section 4, License Agreement
shall be the property of City, and shall not be made available to any individual or organization by
the Contractor without the prior written approval of the City.
20. Copies of Reports and Information. If the City requests additional copies of reports,drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
21. Required Deliverable Products. The Contractor will provide:
a. Complete, ready-to-advertise set of construction documents for Job Order Contracts as
requested by the City. Additionally, the Contractor shall provide necessary training and
assistance in the operation of said JOC system to City staff. Any documents or materials
provided by the Contractor will be reviewed by City staff and, where necessary, the
Contractor will respond to staff comments and make such changes as deemed
appropriate.
b. One camera-ready original of the finished construction documents, unbound, each page
printed on only one side, including any original graphics in place and scaled to size,
ready for reproduction. One complete set of construction documents converted to Adobe
Portable Document Format(PDF)files optimized for web delivery.
C. When computers have been used to produce materials submitted to the City as a part of
the workscope, the Contractor must provide the corresponding computer files to the City,
compatible with the following programs whenever possible:
• Word Processing Word
• Spreadsheets Excel
• Desktop Publishing Coreldraw, Pagemaker
• Computer Aided Drafting(CAD) AutoCad
CS- I 1
EXh r(o r+ A
Exhibit A:Contract Performance Tenns —COPY—. Page A-4
Computer files must be written to Recordable Compact Disk media (CD-R) using ISO
9600 format. Each CD-R must be clearly labeled..
22. Attendance at Meetings and Hearings. As part of the workscope and included in the contract
price is attendance by the Contractor at up to five (5) public meetings to present and discuss its
findings and recommendations. The Contractor shall attend as many "working" meetings with
staff as necessary in performing workscope tasks.
23. Insurance. The Contractor 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 Contractor, its agents, representatives,
employees or sub-contractors.
a. Minimum scope of insurance. Coverage shall be at least as broad as:
• Insurance Services Office Commercial General Liability coverage (occurrence
form CG 0001).
• Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability,code 1 (any autoy.
• Workers' Compensation -insurance as required by the State of California and
Employer's Liability Insurance.
b. Minimum limits of insurance. The Contractor shall maintain limits no less than:
• 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.
• Automobile Liability: $1,000,000 per accident for bodily injury and property
damage.
• Employer's Liability: $1,000,000 per accident for bodily injury or disease.
C. Deductibles and se'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 Contractor shall procure
a bond guaranteeing payment of losses and related investigations, claim administration
and defense expenses.
d. Other insurance provisions. The general liability and automobile liability policies are to
contain,or be endorsed to contain,the following provisions:
• 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 Contractor; products and completed operations of the
Contractor; premises owned, occupied or used by the Contractor, or automobiles
owned, leased, hired or borrowed by the Contractor. The coverage shall contain
no special limitations on the scope of protection afforded to the City, its officers,
official,employees,agents or volunteers.
Exkkii i A
Exhibit A:Contract Performance Terms —COPY— Page A-5
• For any claims related to this project, the Contractor'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
Contractor's insurance and shall not contribute with it.
• Any failure to comply with reporting or other provisions of the policies including
breaches of warranties shall not affect coverage provided to the City, its officers,
officials,employees, agents or volunteers.
• The Contractor'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.
• 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.
e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than ANII.
f. Verification of coverage. The Contractor 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.
C5- t 3