HomeMy WebLinkAbout01/21/2003, C7 - CONTRACT WITH EARTH WISE FOR THE COMPLETION OF THE COMPOST TEA DEMONSTRATION PROJECT AT ISLAY PARK. \ II
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CITY OF SAN LUIS OBISPO
FROM: John Moss, Utilities Director
Prepared By: Ron Munds, Utilities Conservation Coordinator
SUBJECT: CONTRACT WITH EARTH WISE FOR THE COMPLETION OF THE
COMPOST TEA DEMONSTRATION PROJECT AT ISLAY PARK.
CAO RECOMMENDATION
Approve contract with Earth Wise in the amount of $38,500 for the completion of the compost
tea demonstration project at Islay Park and authorize the Mayor to execute the contract.
DISCUSSION
Background
Compost tea is made using compost as a starting material and producing a liquid extract or a
liquid version of the original compost. The.application of specially formulated, aerated compost
teas to soils have the potential to regenerate and maintain healthy plant material with very little
or no need for chemical inputs. In nature, an undisturbed soil is alive with microorganisms
essential for soil and plant health. Urban soils are mostly void of microorganisms due to the lack
of organic matter, soil compaction and erosion, and the use of chemical fertilizers and pesticides.
Compost tea renews and diversifies the microbiology of depleted urban soils thus allowing plant
root systems to more fully develop in both their depth and density.
To date, the research in using compost tea has been directed towards documenting the effects of
the tea on soil and plant health. In theory, with an increase in the root zone depth and density
(especially turf), less water would need to be applied to maintain plant health. Since the use of
compost tea on large scale applications, such as a City park, is relatively new, staff entered into
two separate agreements with Earth Wise, a local consulting firm which specializes in
composting and compost tea, to gain a better understanding of the potential in using compost tea
on turf areas and to determine if there would be any water savings associated with its use. Phase
I consisted of eight trial plots, each 10 feet long by 10 feet wide at Emerson Park. There was one
control plot which received no treatment, the other seven received varying degrees of treatment
ranging from just aeration of the soil to complete treatment with compost and compost tea.
Within weeks there was a noticeable increase in the root zone depth and density in the four plots
that received compost tea. Additionally, the infiltration rate of water entering the soil increased
dramatically during the eight week test period.
Based on the successful outcome of the small scale project, Phase II was implemented to see if
applying compost tea on a larger scale was feasible and would yield the same results. Islay Park
was chosen as the test site since the natural soil structure was severely compromised during the
park's installation. Additionally, the park had been under irrigated for a long period of time to
allow heavy equipment access for a construction project adjacent to the park just prior to the
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Council Agenda Report—Earth Wise Contract
Page 2
implementation of this phase. The compost tea was applied using an injection system that
sprayed the tea through the sprinkler heads. The results of Phase II are as follows:
• Increase root depth from an average of 3 to 4 inches to an average of 10 to 12 inches.
• Denser root mass.
• Elimination of a N inch thatch.
• Formation of a 1 inch top layer of organic matter.
• Soil Structure and water penetration were greatly improved.
• Earth worn population greatly increased.
• Bacteria and fungi introduced with the compost tea broke the hard pan located at a depth
of 3 to 4 inches within the soil profile allowing for deeper watering and root penetration.
• Residue from previous applications of nitrogen based fertilizers became available to the
turf with increased root depth.
This phase confirmed that compost tea could be applied on a larger scale site with excellent
results.
The goals of Phase III of the project, if approved, are to document the water savings potential of
using compost tea at Islay Park while decreasing or eliminating the need for chemical fertilizers,
develop a plan to implement a similar program in other City parks and train City employees in
the methodology of brewing and applying the tea. Earth Wise estimates that water use can be
reduced by as much as 30% to 50% because of the improved soil structure, and root zone depth
and density. In the case of Islay Park, if there was only a 20% reduction in water use, it would
result in a savings of about 2 acre feet of water per year and about $2,800 in water costs.
Another added benefit, if successful, would be the reduction or elimination of the use of
chemicals fertilizers and pesticides in City parks which would move the City towards a more
sustainable future. Applied city wide, the savings, both monetary and in water, could be
significant.
CONCURRENCES
The Public Works Department, Parks Maintenance Division concurs with the recommendation
made in this report.
FISCAL IMPACT
The contract amount is for $38,500. Because of the possible water saving of the project and the
potential of compost tea as a water conservation tool, the Water Fund is the appropriate funding
source for the project. There is sufficient Water Fund general carryover ($65,700) to fund the
contract.
ATTACIIIVIENTS
Contract
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of ,2003,
by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city,hereinafter referred to
as City,and Earth Wise,hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS,the City wants to implement a compost tea/irrigation efficiency project;and
WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so
which has been accepted by City.
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 fust written above,until acceptance or completion of said services.
2. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay
and Contractor shall receive therefor compensation in a total sum not to exceed$38,500.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as set
forth in Exhibit A attached hereto and incorporated into this Agreement. Contractor further agrees to the contract
performance terms as set forth in Exhibit B attached hereto and'incorporated into this Agreement.
5. AMENDMENTS. Any amendment,modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon approval by the City Council.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreement,understanding, or representation not reduced to writing and specifically incorporated herein shall be of
any force or effect,nor shall any such oral agreement,understanding, or representation be binding upon the parties
hereto.
Agreement Page 2
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401
Contractor Earth-Wise
535 Rosina
Los Osos,CA. 93402
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor 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.
ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation
By:
City Clerk Mayor
APPROVED AS TO FORM: CONTRACTOR
By:
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Exhibit A
City of San Luis Obispo
Aerated Compost Tea Fertigation
For
Natural Turf Health & Irrigation Efficiency
Proposal for phase III
By
Earth wise Inc.
To
The City of San Luis Obispo
Utilities Department
November 2002
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Exhibit A
Aerated Compost Tea Fertigation
For
Natural Turf Health & Irrigation Efficiency
Proposal for phase III
By
Earth Wise Inc.
535 Rosina Drive
Los Osos; CA 93402
Phone: (805) 534-9605
Fax: (805) 528-9605
EMAIL: ted.peterson@earth-wise.com
To
The City of San Luis Obispo
Utilities Department
Water Conservation
879 Morro Street; CA 93401
Background to Phase III
Earth-Wise is working with the San Luis Obispo City Utilities Department Water
Conservation Office to design and test a natural alternative to traditional urban lawn
management. The Earth-Wise turf management program will demonstrate a decrease in
the total water usage while improving overall turf health. Earth-Wise will also propose an
alternative to traditional chemical fertilization.
Phase I: Emerson Park Pilot Project—Demonstrate Feasibility (Complete)
Two sets of four(10*10 foot)plots were used for the pilot project. Each set had one plot
as control, one with compost,one aerated and one aerated with compost. Only one set
received compost tea, at two weeks interval, for eight weeks.
The composted and aerated plot with compost tea gave the best results. The
microorganisms in the tea are placed in direct contact with the roots. The soil carried a
healthy worm population, a sign of good soil health. There was a correlation between
increased soil microorganisms respiration, decreased soil nitrate and increased root zone
depth and density.
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Exhibit A
Phase H: Islay Hill Park Project—Restore Health of Distressed Turf (Complete)
The Park is located at the base of Islay Hill on Tank Farm Road,East of Broad Street.
The park has a highly disturbed,urban soil. The natural soil structure was severely
compromised during the park's installation(lighter color sub-soil visible in a number of
areas and formation of a hydrophobic hard pan). The result is layered soil compaction
with reduced micro and macro-pore spaces. Water penetration is slow. Water usage is
high.
The lawn is a mix with cool season, perennial ryegrass(Lolium perenne). Grasses
compete with a number of broad-leaves. The lawn is mowed weekly and irrigated three to
five times weekly. The park has moderate traffic and is heavily used for sport activities.
Before the start of the project,the park had been under irrigated to allow heavy
equipment accessed to a construction site by the creek. Irrigation scheduling returned to
normal before the start of the project. Starting grass root depth was less then three inches.
Root diameters and density were low.
This phase of the project restored soil health by:
• Inoculating the soil with a beneficial and divers microbiology through the application
of specially formulated compost teas
• Adding mycorrhiza fungi to the soil ecosystem
• Replacing the use chemical fertilizers by injecting natural microorganism nutrients
through the existing irrigation system
The new lawn management practices resulted in:
• Increased root depth from 311 inches to an average of 10—12 inches.
• Denser root mass
• Elimination of a 0.75 inch thatch
• Formation of a 1 inch top layer of organic matter
• Soil structure and water penetration were improved
• Earth worm population greatly increased
• Bacteria and fungi introduced with the compost tea broke the hard pan located at a
depth of 3 to 4 inches within the soil profile allowing for deeper watering and root
penetration
• Residue from previous applications of nitrogen based fertilizers became available to
the turf with increased root depth
Phase II of the compost tea lawn program was started in July 2002, four weeks late. The
delay was due to construction work taking place at the park.
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Exhibit A
Phase III: Islay Hill Park Project—Determine Overall Water Savings
MEANS TO ACCOMPLISHING THE PROPOSED GOAL
Task#1 —Months December 2002 through March 2003:
• Continue compost tea application and soil microorganisms feeding through winter
months with current water usage.
• Monitor and log root growth and root density weekly.
• Check turf density and in-growth of seasonal grasses.
• Take soil samples monthly.
• Ascertain median water application level during the rainy season.
• Monitor water penetration using water sensors to establish water penetration and
water depth.
Task#2—Months December 2002 through March 2003:
• Develop a strategy based on catch-can and overall park water usage as determined by
city reporting.
• Develop starting criteria based on samples taken during Task#1.
• Determine root length and density.
• Determine starting water usage.
• Determine starting Compost tea application rate.
• Determine feeding rate.
Develop model for water reduction through months of March—August 2003.
Task#3—Months March 2003 through August 2003:
• Decrease water usage in accordance with model developed in Task#2 until turf
shows signs of stress as determined by:
• Daily visual observation of park turf.
• Identification and notation(with repair) of any mechanical problems that may
occur.
• Daily monitoring of soil water density in percent by weight at different depth.
• Soil tests and leaf assay to determine root depth, density and health.
• Identify soil water holding capacity, turf water availability and wilting point.
• Adapt water application to new soil, water and plant relation
Task#4—Months March 2003 through August 2003:
• Develop a model showing the weekly, monthly and yearly water savings.
• Develop model showing water application/stress relationship while using Compost
Tea and non-chemical foods on a regular basis.
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Onrg
Exhibit A
• Show maintenance of park health with reduced water application and manpower
resources.
• Show viability and cost savings of injector(applied through existing irrigation
system)based application of teas and foods.
• Show increased turf health using compost tea and feeding methodology.
Task#5—Months March 2003 through August 2003:
• Train park personnel in the methodology.
Task#6—August 2003 through September 2003:
• Develop conclusions with recommendations to further the use of the technology to all
public parks.
• Write and submit a report detailing results of Phase III.
SCHEDULE OF EVENTS
EVEN DATE DESCRIPTION WHO
T
1 12/02 Phase II starting date
2 12/02 Continue feeding rate through winter months E.W
3 12/02-03/03 Monitor water penetration using sensors E.W.
4 1 12/02-03/03 Weekly monitor root growth and density E.W.
5 12/02 Soil sample E.W.
6 01/03 Soil sample E.W
7 02/03 Soil sample E.W.
8 03/03 Soil sample E.W.
9 02/03 Develop strate for water reduction through 08/03 E.W.
10 02/03 Determine starting baseline based on Task#2 E.W.
11 02/03 Develop water reduction model for 03-08/03 E.W.
12 02/03 Get overall plan approval from City. E.W. & SLO
13 03/03 (Note) Decrease water application from model E.W. & SLO
14 03/03-04/03 Daily observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea application from model E.W.
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Exhibit A
Feeding application rate from model E.W.
13a 04!03 (Note) Decrease water application from model E.W. & SLO
14a 04/03-05/03 Daily observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea a lication from model E.W.
Feeding application rate from model E.W.
13b 05/03 (Note) Decrease water application from model E.W. & SLO
14b 05/03-06/03 Daily observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea application from model E.W.
Feeding application rate from model E.W
13c 06/03 ote Decrease water application from model E.W. & SLO
14c 06/03-07/03 Daily observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea application from model E.W.
Feeding application rate from model E.W
13d 07/03 (Note) Decrease water application from model E.W. & SLO
14d 07/03-08/03 Daily observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea application.from model E.W.
Feeding application rate from model E.W
Be 08/03 (Note) Decrease water application from model E.W. & SLO
14e 08/03-09/03 Day observation/testing to determine turf stress E.W.
Test root health E.W.
Compost tea application from model E.W.
Feeding application rate from model E.W
15 03/03-08-03 Increase water application rate when turf stress E.W. & SLO
observed
16 Test turf health E.W.
17 Repeat 15 and 16 until stress resolved. E.W. & SLO
18 Develop water application model program. E.W.
23 09/03 Final report submitted to the City of San Luis E.W.
Obispo
(1): Earth-Wise Inc. staff
(2): City of San Luis Obispo Utility Department staff
(3): City of San Luis Obispo Park and Recreation staff
Note: The water will be reduced based on the model. These dates are
approximations based on a monthly model. The actual model may be quite
different but will resemble this monthly model in some form. For example, the
turf may show stress at an earlier or later date than expected. While the goal is to
achieve 501/o water savings,the turf may not actually show stress down to those
levels. The situation may arise where stress occurs above or below the 50%
reduction level.
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Cl -IU.
Exhibit A
EARTH-WISE Inc. BUDGET
1. Tasks#1  Dec 2002—Feb 2003 $9,000.00
Project setup, model development, park monitor and feeding
2. Tasks#3,#4,#5 —March 2003 $4,000.00
3. Tasks#3, #4,#5—April 2003 $4,000.00
4. Tasks#3,#4,#5 —May 2003 $4,000.00
5. Write and submit interim report N/C
5. Tasks#3,#4, #5 —June 2003 $4,000.00
6. Tasks#3, #4,#5—July 2003 $4,000.00
7. Tasks#3, #4,#5 —August 2003 $4,000.00
8. Lab testing $3,000.00
9. Training N/C
10. Write and submit report $2,500.00
PHASE III TOTAL PROJECT COSTS: $389500.00
7
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Exhibit B
CONTRACT PERFORMANCE TERMS
1. Business Tax. 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. 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. 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
Contractor is required to pay.
5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and
fees,and give all notices necessary.
6. Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety..
7. Public and Employee Safety. Whenever Contractor's operations create a condition hazardous to
the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
8. Preservation of City Property. Contractor 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 as a result of Contractor's operations, it shall be replaced or restored at Contractor's
expense. The facilities shall be replaced or restored to a condition as good as when the
Contractor began work.
9. Immigration Act of 1986. 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.
10. Contractor Non-Discrimination. In the performance of this work, 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. .
11. Work Delays. Should 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
Exhibit B:Contract Performance Terms Page B-2
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.
12. 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 Contractor(Net 30).
13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascertain
that the services of 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 Contractor of
any of its obligations to fulfill its contract requirements..
14. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
15. Interests of Contractor. 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. Contractor further covenants that, in the
performance of this work, no sub-contractor or person having such an interest shall be employed.
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; Contractor shall at all times be deemed an independent contractor and not
an agent or employee of the City.
16. Hold Harmless and Indemnification. 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 Contractor's employees, agents or officers which arise from or are
connected with or are caused or claimed to be caused by the acts or omissions of 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 Contractor's
duty to indemnify and hold harmless shall not include any claims or liability arising from the
established sole negligence or willful misconduct of the City, its agents, officers or employees.
17. Year 2000 Compliance. The Contractor warrants that the goods or services provided to the
City, including those provided through subcontractors, are "Year 2000 compliant." For the
purpose of this contract, "Year 2000 compliant" means that goods or services provided to the
City will continue to fully function, fault-free, before, at and after the Year 2000, without
interruption or human intervention; and if applicable, any data outside of the date range 1990-
1999, including leap years, will be correctly processed in any level of computer hardware or
software, including, but not limited to, microcode, firmware, application programs, files and data
bases. This warranty supersedes all warranty disclaimers or limitations, and all limitations on
liability, otherwise provided by the Contractor.
Upon request by the.City, the Contractor will provide the City with a description of its Year 2000
compliance strategy,or statement of why this is not relevant to contract performance.
18. Contract Assignment. 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.
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Exhibit B:Contract Performance Terms Page B3
19, Termination. If, during the term of the contract, the City determines that Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify Contractor in
writing of such defect or failure to perform; which notice must give Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If 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 Contractor to said effect. Thereafter, neither party shall have
any further duties,obligations,responsibilities or rights under the contract.
In said event, 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 Contractor as may be set forth in the
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by Contractor shall be based solely on the City's assessment of the value of the work-in-
progress in completing the overall workscope.
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 Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
20. . Ownership of Materials. All original drawings, plan documents and other materials prepared
by or in possession of Contractor as part of the work or services under these specifications shall
become the permanent property of the City, and shall be delivered to the City upon demand.
21. Release of Reports and Information. Any reports, information, data, or other material given
to, prepared by or assembled by Contractor as part of the work or services under these
specifications shall be the property of City, and shall not be made available to any individual or
organization by Contractor without the prior written approval of the City.
22. Copies of Reports and Information. If the City requests additional copies of reports,drawings,
specifications, or any other material in addition to what Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, Contractor shall
provide such additional copies as are requested, and City shall compensate Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
23. Required Deliverable Products. Contractor will provide:
a. One copy of the final report that addresses all elements of the workscope: Any
documents or materials provided by Contractor will be reviewed by City staff and, where
necessary, Contractor will respond to staff comments and make such changes as deemed
appropriate.
b. One camera-ready original, unbound, each page printed on only one side, including any
original graphics in place and scaled to size,ready for reproduction.
Exhibit B:Contract Performance Terms Page B4
C. When computers have been used to produce materials submitted to the City as a part of
the workscope, 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
Computer files must be on 31/2", high-density, write-protected diskettes, formatted for
use on )BM-compatible systems. Each diskette must be clearly labeled and have a
printed copy of the directory.
24. Insurance. 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 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 auto).
• Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance..
• Errors and Omissions Liability insurance as appropriate to Contractor's
profession.
b. Minimum limits of insurance. 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.
• Errors and Omissions Liability: $1,000,000 per occurrence.
C. Deductibles and self-insured retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City. At the option of the City, either: the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects
the City, its officers, officials, employees and volunteers; or 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:
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Exhibit B:Contract Performance Terms Page B-5
• The City; its officers, officials, employees, agents and volunteers are to be
covered as insureds as respects: liability arising out of activitiesperformed by or
on behalf of Contractor products and completed operations of Contractor;
premises owned, occupied or used by Contractor; or automobiles owned, leased,
hired or borrowed by Contractor. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers, official,
employees,agents or volunteers.
• For any claims related to this project; 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 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:.
• 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 A:VII..
f. Verification of coverage. 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.
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