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HomeMy WebLinkAbout08/19/2003, C2 - TECHNICAL STUDIES FOR WATER RECLAMATION FACILITY NPDES PERMIT council Aug. 19, 2003 aGEnaa nEpoizt `t="=b. CITY OF SAN LUIS OBISPO FROM: John"Moss,Utilities Directo Prepared By: David Hix,Wastewater Di Is' n Manager SUBJECT: TECHNICAL STUDIES FOR WATER RECLAMATION FACILITY NPDES PERMIT CAO RECOMMENDATION Approve an agreement with Larry Walker and Associates in the amount of $205,950.00 for technical studies for the Water Reclamation Facility NPDES permit. DISCUSSION On May 31, 2002 the National Pollutant Discharge Elimination System (NPDES) Permit for the City's Water Reclamation Facility (WRF) was adopted by the Regional Water Quality Control Board (RWQCB). The permit, which contains the discharge limitations and required sampling for the WRF, was the product of over two years of rigorous negotiations and hard work from City and State staff and the City's consultant. The primary reason this permit took so long to negotiate has been recent adoption of water quality legislation referred to as the California Toxics Rules (CTR) and the accompanying State Implementation Plan (SIP). These two documents have led to a huge number of problems statewide regarding stringent discharge limitations and how they should be implemented. Currently almost every newly adopted NPDES permit is being appealed to the State Water Resources Control Board(SWRCB)because of these new regulations. During negotiations over the City's permit, City staff requested time to prepare studies to determine if many of the assumptions RWQCB staff were making pertaining to the implementation of the CTR were actually true. During this time the City has been given achievable interim discharge limits until the new limits are developed and/or adopted. These studies are placed in the provisions section of the permit and outline the type of work and numerous submittal dates. Hopefully these studies will save the City money by showing that many of the assumptions regarding discharge limitations are overly stringent and a more sensible limit or alternative can be implemented. The goal is to develop reasonable discharge limitations that continue to protect San Luis Obispo Creek's water quality and existing beneficial uses. These studies, listed as provisions: H.5, H.7, H.10 and H.14 of the WRF's NPDES permit, will cover a wide variety of issues. The studies will analyze the concentrations of constituents being discharged from the WRF to determine if the development of a discharge limit is warranted and study the concentrations and attenuation of Trihalomedwes (THMs) downstream and in the groundwater from the WRF, and include a flow study to determine the dilution ratios. The dilution ratio study is particularly important because it will give the City and RWQCB a good idea of the WRF's flow contribution to the creek, how that will relate to the CTR and development and implementation of discharge limitations. LIOL � � Council Agenda Report-Technical Studies for WRF NPDES Permit Page 2 Larry Walker and Associates (LWA) specialize in water quality regulations and studies and have extensive knowledge with the CTR, SIP and State water quality regulations and policies. LWA has prepared several similar studies for other agencies and provides support for all of the documents and studies they develop. LWA is very familiar with the City's NPDES permit, the Central Coast RWQCB and its staff from assisting the City in its last permit negotiation. Few firms posses the expertise, experience and excellent service offered by LWA FISCAL IMPACT Technical studies at the WRF will cost $205,950. A total of $206,000 for.these studies was approved in the 2003-05 Financial Plan, Appendix A, p. 27-28. Staff is recommending contracting with Larry Walker and Associates rather than issuing a Request for Proposals (RFP) because of their comprehensive knowledge and technical expertise. ALTERNATIVES 1. Council may direct staff to issue an RFP for these services. This alternative may result in other proposals being submitted, but staff does not feel that another consultant could bring the understanding, expertise, knowledge and value as Larry Walker and Associates. Soliciting proposals may also result in the delays for some work item submittal found in the WRF's NPDES permit. Attachment 1: Agreement - Exhibit A—Scope of Work and Cost Estimate Exhibit B —Contract Performance Terms Electronic File Path: WRFstudieslarrywalker.car.doc � ' oC Attachment 1 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 City,and Larry Walker and Associates,hereinafter referred tows Contractor. WITNESSETH: WHEREAS,the City wants Technical Studies for the Water Reclamation Facility NPDES Permit. 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 first 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$205,950.00. 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 Administrative Officer of the City. 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. �a- 3 Agreement—Larry Walker and Associates 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 John Moss Utilities Director 879 Morro Street San Luis Obispo,CA 93401 Contractor Larry Walker and Associates 509 4ih Street Davis,CA. 95616 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 fust above written. ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation By: City Clerk,Lee Price Mayor,David F.Romero APPROVED AS TO FORM: CONTRACTOR 2c r' By: rney,Jonathan Lowell Larry Walker Exhibit A July 11, 2003 Mr. Dave Hix City of San Luis Obispo 955 Morro Street San Luis Obispo, CA 93401 Proposal for Assistance to meet Provisions H.5, H.7, H.10, and H.14 of NPDES Permit NO. CA0049224 for the City of San Luis Obispo Wastewater Treatment Plant Dear Mr. Hix: In response to your request for a proposal for the development of a scope of work for studies and reports to complete Provisions H.5, H.7,H.10, and H.14 of NPDES Permit NO. CA0049224 for the City of San Luis Obispo Wastewater Treatment Plant,Larry Walker Associates, Inc. (LWA) is providing a scope of LWA services, schedule, and cost estimate. SCOPE OF LWA SERVICES LWA tasks anticipated under these projects are as follows: Task 1: Obtain, Organize, and Review Existing Water Quality Data Task 1.1: Obtain existing treatment plant effluent and ambient water quality data,plant effluent flow data, San Luis Obispo Creek flow and water quality data, groundwater elevations, quality, and flow data, and any reports or studies that may provide relevant information. Task 1.2: Compile data into format needed to conduct data analysis and the Reasonable Potential Analysis. Task 1.3: Conduct a QA/QC analysis on water quality data. Task 1.4: Identify additional data needs. Task 2: Provision H.5—Develop and Implement Trihalomethane (THM) Study Task 2.1: Prepare a Scope of Work,which includes a THM monitoring program, to address Provision H.5. The surface water portion of the THM monitoring program will be designed to evaluate a"zone" in the Creek downstream from the discharge where natural processes may reduce THMs to numeric criteria specified in the California Toxics Rule (CTR). The initial phase of the monitoring program will be used to focus the study area to a reach in the Creek where a sequence of downstream samples will show measurable declines in THM levels to the CTR criteria. After refining the resolution of the study area, subsequent sampling events will be used to identify the rate at which THM concentrations decrease in the zone and how factors such as flow rate and initial concentration affect the location of the zone. A tracer study will be included as part of the surface water monitoring portion of the monitoring program. This aspect of the study will be used to identify travel time from the discharge point to sampling locations,which will affect the Proposal to Me ei NPDES Jul1 200:1 Pr•orisions Il.i, H.7. It.10, and 11.14 n n l.'OC 1 � location of the zone. This information can be used to determine the effects of dilution on chemical concentrations and may provide useful information for completing the seasonal dilution ratio study required under Provision H.14. The groundwater portion of the THM monitoring program will use existing wells and data to determine if there is the potential for interaction between surface water that may contain THM and groundwater in existing wells. If the Regional Board is concerned with THM in areas where existing wells and/or data are not present an additional scope of work and cost estimate will be necessary. A predictive model would provide a useful tool for predicting the location of the zone based on the multiple variables (concentration, flow rate, etc.). However,it may not be necessary to meet the requirements or goals of this provision. The need to develop a model will be addressed in the Scope of Work. Task 2.2: Conduct the work outlined in the Scope of Work,including THM monitoring program. Task 2.3: Complete analysis of results and prepare a report summarizing findings. Task 2A Meet with the City staff to review the results of the study. Task 2.5: Revise report based on comments and submit final version to the City for submittal to the Regional Board. Task 3: Provision H.7 Evaluate Effect of Discharge's Nitrates on Groundwater Task 3.1: Based on a preliminary analysis of information collected in task 1,prepare a Scope of Work to address Provision H.7 for submittal to the Regional Board. The Scope of Work will include groundwater and surface water monitoring programs. Both programs will be tailored to fill data gaps identified in Task 1. The groundwater program will identify existing wells that have the potential to be suitable for sample collection. Existing wells close to the treatment plant that allow for the collection of samples at the appropriate depth below ground surface have the potential to be suitable for this program. In addition, these wells may provide historical data on nitrate concentrations and groundwater levels. Of the potential existing wells,it is likely that a minimum of three will be selected for conducting monitoring. One well upstream of the treatment plant and one downstream of the plant will be used. The third well will be chosen based on available groundwater gradient and stream infiltration rate information to optimize potential quality of sampling data. Four sampling events will be conducted over a 12-month period. Groundwater water levels will be measured and samples will be collected to analyze for nitrates and general minerals. If existing wells do not provide suitable locations for collecting the data necessary to complete the objectives of the study, a separate scope of work and cost estimate for the development of additional groundwater monitoring wells will be necessary. The surface water program will be conducted to evaluate the quantity and quality of infiltrating water. Flowrate and instream nitrate and general mineral measurements will be obtained from data collected for the plant's monitoring and reporting program. Flowrate measurements will need to be measured upstream of the treatment plant and downstream of the last groundwater well. Proposal to Meet NPUES 3 .1111Y 2003 Provisions 1-1.5, H.7. H.10, and 11.14 1 f I Instream nitrate and general mineral measurements will need to be collected monthly over the 12-month program to estimate infiltrate quality. In developing this scope and budget,it was assumed that the data necessary to complete this study will be obtained from the plant's monitoring and reporting program. If,in reviewing the plant's program,it is determined that it will not meet the needs of this study a separate scope of work and cost estimate will be necessary. Task 3.2: Conduct the work outlined in the Scope of Work,including monitoring program. Task 3.3: Complete analysis of results and prepare a report summarizing findings. Task 3.4: Meet with the City staff to review the results of the study.. Task 3.5: Revise report based on comments and submit final version to the City for submittal to the Regional Board. Task 4: Provision H.10—Conduct a Reasonable Potential Analysis (RPA) Task 4.1: Format any new data collected after the initial historical data was received and formatted. Run the LWA RPA/EL model to determine the likelihood a Toxics Rule or Title 22 Section 64431 or 64444 pollutant will exceed a water quality objective. Although Provision H.10 does not require the development of effluent limitations, the LWA RPA/EL model is designed to calculate any necessary limitations. As such,the development of necessary limitations, to be addressed by the Regional Board under Provision H.11, could be incorporated into the completion of Provision H.10 with relatively little additional cost. The RPA,will be based on current State Implementation Plan (SIP), CTR,and Regional Board Basin Plan procedures and policies. Task 4.2: Prepare a report summarizing the recommended RPA and EL results,if necessary, and any recommendations for further analyses or water quality data acquisition. Task 4.3: Meet with the City staff to review the results of the RPA and EL analyses. Task 4.4: Revise report based on comments and submit final version to the City for submittal to the Regional Board. Task 5: Provision H.14—Conduct a Seasonal Dilution Ratio Study Task 5.1: Coordinate efforts with Brown and Caldwell. Task 5.2: Prepare a Scope of Work to address Provision H.14,which includes a monitoring program to gather flow data. The monitoring program will be designed to collect Creek flow data from up and downstream of the discharge point. Task 5.3: Conduct work outlined in the Scope of Work. Task 5.4: Analyze flow data to determine the usual time period,in months,when discharge from the plant comprises 90 percent of the Creek's flow, the harmonic mean of the Creek's flowrate, and the arithmetic mean of the discharge flowrate. Task 5.5: Prepare a report summarizing the findings. Task 5.6: Meet with the City staff to review the results of the study. Task 5.7: Revise report based on comments and submit final version to the City for submittal to the Regional Board. Proposal m Meet NPUF,S 3 JOY 200 Provisdoas 11.5, 11.7. H.10, and 11.11 LWA SCHEDULE The following table outlines the number of months needed to complete the corresponding task or tasks. The number of months necessary to complete tasks may be reduced by the availability of existing data and the pace with which LWA receives new data and comments on draft products. Provision Task Number Months To Complete All 1.1 -1.4 2a 2.1 4b H.5 2.2 12 2.3 &2.4 4 3.1 4c H.7 3.2 12 3.3 4 3.4&3.5 3 4.1 2 H.10 4.2-4.5 4d 5.1 &5.2 4= H.14 5.3 12 5.4-5.6 4 a This task would be completed within 2 months after point of authorization. b The development of the Scope of Work for Task 2 would need to begin no hater than July 1,2003 to meet the November 1,2003 deadline set in the Permit. This is assuming all relevant data and reports are provided to LWA by July 1,2003. The development of the Scope of Work for Task 3 would need to begin no later than July 1,2003 to meet the November 1,2003 deadline set in the Permit. This is assuming all relevant data and reports are provided to LWA by July 1,2003. d Additional data beyond historical data gathered in Task 1 would need to be submitted for formatting and running the LWA RPA/EL model for Task 4 no later than June 1,2004 to meet the October 1,2004 deadline set in the Permit. Developing and initiating the Scope of Work for Task 5 would need to begin no later than April 1,2003 to complete the work by the December 1,2004 deadline set in the Permit. LWA COST ESTIMATE The estimated costs for these projects are$206,000 as detailed on the attached spreadsheet dated July 11,2003. Costs may vary based on the availability of existing data, the final study designs outlined in the Scopes of Work, and City and Regional Board expectations. 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E m 5 - m a o c o 3 m m - m S E m m m 5 m y pm `o E o $ E m y g yC "E r p N L E cZ 3 [U[aa m N (_p N tj $ W Q NU O m 8 O Cid ons N m• O Sd N N e52 = is O V m m d U a m ^ OI L S (�- lD Exhibit B 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 B4 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 per 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. ` Exhibit B:Contract Performance Terns 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 provider a. Two (2) copies 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. LIOL Exhibit B:Contract Performance Terns Page B-4 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 IBM-compatible systems. Each diskette must be clearly labeled and have a printed copy of the directory. 24. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at up to one (1) public meeting to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 25. 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 ()a-4 . Exhibit B:Contract Performance Terms Page B-b 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 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 ANN. 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.