HomeMy WebLinkAbout09/01/1992, C-2 - PARKING METER COIN COLLECTION I'ill�l�►III►IIII�II I I � r MEETING DATE:
cityo San LUIS OBISpo s a 4:z
MMMMMMMOMMEW COUNCIL AGENDA REPORT STEM UMBEA
FROM:
Wayne Peterson Prepared by: Keith Opalewski
Acting Public Work irector Parking Manager
SUBJECT:
Parking Meter Coin Collection
CAO RECOMMENDATION:
By motion, approve the award to, and authorize the Mayor to
execute, a contract with Smith Collection Service for parking meter
coin collection at the unit price of $0. 32 per collection.
BACKGROUND:
At its June 16, 1992 meeting, Council authorized the soliciting of
RFP's for parking meter coin collection. As a condition of this
approval, Council directed staff to look at the possibility of
performing this service by City personnel and return to Council
with a final recommendation of either continuing to contract for
this service or performing it by in-house personnel.
There were several reasons for seeking proposals for parking meter
coin collection. First, the current contract was open ended and
had not been bid in over five years. As a result, competitive
pricing for the service needed to be established. This cost
comparison would also allow a better analysis of contract vs. in-
house operations. Second, the policy of paying double for duplex
(two meters in one housing) meters needed to be changed to a per
collection basis. Third, the current procedure of allowing the
collector the opportunity of having unobserved access to City funds
(same person collects and transports the money to the bank) also
needed to be changed. i
DISCUSSION:
In order to achieve the desired results of improved security and
reduced costs for meter collections, there must be changes in the
collection procedure (Exhibit A) . By adhering to our proposed
procedural change of having the collector walk all meter routes
back to the parking office, it creates a more secure process for
the collection of the City's parking meters. This would entail
involving parking office staff as part of the checks and balances
for dual custody and observations of coin transfer. This would
cost more by requiring a separate carrier service for transporting
coin, acquiring better storage cabinets or a safe, and by using
more staff time during collection days. This overall objective can
be achieved by using either a staff person or outside contractor.
As a result, the comparison of in-house vs. contract operations
will be discussed to determine which mode of collections is
ultimately the best for the City. /�
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COUNCIL. AGENDA REPORT
Council Agenda Report
Page Two
Contracting
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The bids that were received ranged from $0. 32 and $0 . 39 for the two
private bidders to $0. 50 and $0. 51 per collection for the two
professional companies (Exhibit B) . The latter were JL Services (@
$0 . 50) which is an out of state company that specializes in
contract services and mainly operates on the east coast, and
Armored Transport (@ $0. 51) which is a Santa Maria based company
that provides carrier service to local banks. The private
individuals included our current contractor Jim Kiani (@ $0 . 39)
along with another local bidder Smith Collection Services (@ $0. 32)
which was the lowest bid.
PROS
An advantage of contracting is you pay for what you use. Although
costs increase as the number of monthly collections go up,
conversely, costs decrease if the number of collections go down.
Thus, costs would be fixed or controlled for periods of time.
I
Contracting also provides the necessary backup personnel for
vacations, sick leave, or other forms of absenteeism. This is a
key point, because if the contractor does not provide personnel to
complete the job, they assume the liability for any revenue lost as
a result of uncollected meters. This process also eliminates the
need for the City to recruit staff personnel.
A final positive aspect, and perhaps the most significant, of
contract services is that it eliminates the City's liability for
losses, property damage, and most important, on-the-job injury by
the collector. The potential savings to the City could be
substantial if a serious accident or injury happened while the
contractor was performing this service. Contracting also makes it
easier to replace or eliminate the person in the event of poor
performance or removal of the parking meters.
CONS
Any significant savings due to reduced collections by a contractor
could be minimal because of the limited capacity of the locked
meter coin cans. Furthermore, reducing collections too far, could
be ill advised because it delays deposit of funds and creates more
of an incentive for parking meter break ins.
In addition, contracting doesn't make use of the staff that may be
laid off in a budget reduction scenario. It also limits our
flexibility to quickly change procedures. And in the case of
professional companies that offer the promise of optimum security
and operational procedures, it is at a higher unit price for their
particular type of professional service.
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COUNCIL AGENDA REPORT
Council Agenda Report
Page Three
FISCAL IMPACT (Contracting)
The lowest unit price per collection ($0. 32) that , was received
represents a 23% ($40, 000 vs. $52 , 000) reduction in our current
overall meter collection costs. This does take into account the
change in security procedures and duplex meter collection counts.
The other bids are $0. 39 ($47 , 440) or higher, as is the case with
both of the professional companies ($0 . 50 and $0. 518 = $48 , 000 and
$49, 800 respectively) . Furthermore, the low bid is $15, 000 (27%)
! below this year's budget ($55, 000) for meter collections. (see
Exhibit C) These figures do include the monthly charge for bank
coin counting and coin delivery by an armored carrier service
estimated at $5, 000 each. (current costs include coin counting)
Note: The above figures Do Not include overhead charges for
administering the contract estimated at 10% the annual cost.
In-house Personnel
PROS
i
An advantage of using staff personnel is that costs are held more
steady if the number of monthly collections increased. Although,
the opposite would be true if the number of collections were
reduced.
A staff person could also be assigned meter maintenance if a 3/4
time employee is used. This is based on the projected 22-26 hours
per week needed to complete collections with the new proposed
procedure of walking all routes back to the parking office. A
benefit of improved meter maintenance is that the meter cash flow
is more consistent and it improves customer relations by minimizing
complaints regarding meter malfunctions. Another possibility is to
use the staff person in the parking structures to help with minor
maintenance and detail cleaning.
!
Another option is to use two part-time (15 hours each) staff
! personnel for collections. This approach would rotate staff for
collection routes and provide a built-in backup person. A third
option would be to hire a full-time person and use them for other
duties when not collecting. Some cost offset ($3 , 000 to $5 , 000) is
possible if the staff collector was utilized as a parking attendant
for those hours he was not collecting meters.
CONS
Any significant reduction in meter collections could erode the
j direct cost benefits of in-house meter collections. Furthermore,
using staff personnel means a backup person must be readily
available for vacations and sick time or other absenteeism.
'1i����1!II'lll��" �IIIIIII city of san L,..es osispo
COUNCIL. AGENDA REPORT
Council Agenda Report
Page Four
Recruitment time is also needed to fill or replace the position.
These issues could take away from the efficiency and cost savings
of using a staff person in this operation.
Another negative aspect of using staff personnel is the potential
liability the City must absorb for on-the-job injuries.
It should be noted that although there is the potential for injury,
many cities still use staff personnel for their meter collections
with dual custody and/or rotating staff personnel. Also, our
current contractor has not missed a day of collections in over 5
years as a result of an on-the-job injury.
A final liability factor for using staff personnel is that since
the City is self-insured, any loss of meter revenue that results
from employee theft must be absorbed internally. Staff may also be
inefficient as there is no profit motive to do the job faster or
better as compared to a contractor. Note, the City did abandon
using staff personnel because of past theft and injury problems.
FISCAL IMPACT: (In-house)
The cost for staff collection is shown on Exhibit B. It is
estimated at $44 , 331 including overhead charges of 25% of the
annual cost for using City personnel . The latter includes hiring,
supervision, finance, and administrative costs. By a slight margin
it is the most cost effective means of collecting parking meters.
This is based on a straight comparison of annual expenses. If the
service were done in-house, the savings over contracting would be
very minimal ($461 . 00) when overhead charges are factored in for
i both options (Exhibit D) .
I ,
Summary and Recommendation
There are pros and cons for using one type of collector over
another. Staff personnel are slightly more cost effective when
compared to contractors, offer flexibility with regards to the
number of collections, allow opportunity for better field
maintenance, but at an increased liability to the City, along with -
inflexibility for personnel replacement and potential inefficiency.
Contracting services can substantially reduce the City's liability
for both theft and work injuries, reduce City payroll, and offer
more flexibility to changing job requirements and turnover of
personnel, but at a slightly higher price than in-house operations.
Given that the overall costs would be virtually the same for
j contracting vs. in-house ($44 , 792 vs. $44 , 331) , it would be staff's
recommendation to continue with contract services and award the
contract to Smith Collection Service at the basic unit price of
$0. 32 per collection. /�
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COUNCIL AGENDA REPORT•
Council Agenda
Page Five
I
Exhibit A: Collection Procedures
Exhibit B: Bid comparison
Exhibit C: Contract Savings comparison
Exhibit D: Contract vs. in-house comparison
Exhibit E: Proposed contract
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METER COLLECTION PROCEDURES
Streets
On the days of collection (Eliminates-Fri) the collector will come
to the parking office between 8 : 00 and 8 : 30am and sign out the keys
for the collection routes and lots that will be collected that
given day. The collector will pick up a locked collection canister
and specific key and proceed on foot to collect the meters for a
given route. Once collected, the canister will be walked back to
the parking office and, under the observance of an office staff
person, the collector will seal the canister with date, time and
initials and place canister in locked holding cabinet with
collection key. This procedure will repeated 2 or 3 times until
all street zones are completed for that particular collection day.
Lots
The lots will be collected individually with the same procedure as
the streets collection. In order to improve security for the lot
collections, each lot will utilize a collection cart and canister
designed for open system meters. This is similar to the closed
system cart, with a funnel as opposed to a key mechanism on the
collection canister. Once the money is emptied into the canister,
the collector no longer has access to the coin. As with the
streets, the lot canisters will be walked back to the office and
sealed and placed in the locked holding cabinet.
Office Procedures
After all zones and lots are collected for a particular day, the
collector, after the canisters are unlocked by staff, will remove
seals and money bags from the canisters, mark each bag with zone or
lot, seal the money bag, weight it, and then place it in the
holding cabinet. Staff will confirm the number of bags and
jointly sign with collector confirming what was collected that day.
A copy will be retained by collector and office. All empty
collection canisters will be relocked by collector, and then placed
in storage cabinet until the next day' s collections. Once all
transfers are completed, collector will sign in the keys from that
day's collections. In order to have the money ready for carrier
pick up, all collections should be back in the office by 2 : 00 or
2 : 30 on any given collection day. A record of all lots and zones
will be kept to compare to bank counts.
Carrier Service
On carrier pick up days (M-W-FR) the carrier will come to the
parking office between 2 : 00 and 3 : OOpm to remove all sealed and
weighed coin bags from the holding cabinets and sign for the bags
to be transferred. This will be done under the observance of
office staff during the entire transaction.
Exhibit A
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Bid comparisons are based on a monthly average of 8000 collections.
Armored JL Ser. Kiani Smith Staff
Unit $0. 518 $0. 50 $0. 39 $0. 32 $0. 265*
Price
Est.
Monthly $4 , 150 $4 , 000 $3 , 120 $2 , 560 $2 , 122
Est.
Annual $49 , 800 $48 , 000 $37, 440 $30, 720 $25, 465
Carrier
Service $0 $0 $5, 000 $5, 000 $5, 000
(Annual)
Coin
Count $0 $5, 000 $5, 000 $5, 000 $5, 000
(Annual)
Est.
Annual $49 , 800 $53 , 000 $47 , 440 $40, 720 $35 , 465
Overhead 30%** 10%** 100',** 10%** 25%**
Total for $54, 780 $58,300 $52, 184 $44, 792 $44,331
comparison
(Safe) $0 $0 $5, 000 $5, 000 $5, 000
One time cost (not included in annual totals) for large office
safe, additional collection canisters and slight office remodel to
move existing storage lockers.
$45,548***
$421688****
* 3/4 time Maintenance Worker I with benefits ($33 , 953 per year FT)
** overhead cost to administer contract estimated at 10% and
overhead to hire and supervise City employee estimated at 25%
*** Alternative proposal submitted by current contractor Kiani of
collecting two days per week at a monthly average of 6485 -
collections at $0 . 47 per collection, which includes a sliding scale
of $0. 02 reduction per collection for each 500 additional
collections over 6000 per month. However, when compared to the
8000 collections it would run $3 , 660 per month or $43 , 920. It also
keeps the current procedure of one person collecting and
transporting to the bank.
**** Additional option of the same proposal of having the current
collector count the money before he transports it to the bank. This
would reduce ($200 vs. $450) bank counting charges, but does not
meet desired specifications and would be a security problem.
Exhibit B
Contract Savings
Thousands
60
04030 50 -
40 -
30
,
20
10 -
0
0 0 /
Armor JL Kiani Smith Cost Budget
Contractors 0 Current cost
'MIA 1992-93 Budget
EXHIBIT C
Contract vs . in - house
With Overhead
Thousands
70
60 -
50 -
40
05040 k`
\\ I
30 ,
20
10
2
0
Armor JL Kiani Smith Staff Cost Budget
® Contractors 3/4 time staff
Current cost 1992-93 Budget
EXHIBIT D
CONTRACT FOR COLLECTING PARKING METER REVENUE
This contract is made this day of 1992 by and between the City of
San Luis Obispo ("CITY") and ("CONTRACTOR").
In consideration of their mutual benefits, CITY and CONTRACTOR agree to the following:
1. SERVICE & TERMS
Starting on and continuing until termination on
CONTRACTOR shall periodically collect money from CITY's parking meters according to the
policies and procedures included in Exhibit A. Procedures and frequencies of collection are
subject to changes upon 7 days written notice. This contract shall run for 1 calendar year from
date of execution, and shall be eligible for an annual extension upon satisfactory performance
for two years.
2. COMPENSATION
CITY shall pay CONTRACTOR for each satisfactory collection of money from
a parking meter coin canister.
For each calendar month in which collections are performed. CONTRACTOR shall submit to
CITY an invoice showing actual collections performed and collections billed. Within 30 days
of receiving the invoice, CITY shall pay CONTRACTOR the amount due.
3. COMPENSATION ADJUSTMENT
After the anniversary date of the contract, CONTRACTOR may request periodic adjustments
of the compensation rate to reflect changes in its costs to provide service. Such adjustments
shall not occur oftener than annually and shall be based on the change in the Consumer Price
Index for All Urban Consumers, Los Angeles-Long Beach-Anaheim Metropolitan Area. All
Items (1967=100). This index shall be the index published by the United States Department of
Labor, Bureau of Labor Statistics.
4. COLLECTION EQUIPMENT —
CITY shall furnish the equipment required for collection and all equipment shall remain the
property of CITY. When this contract takes effect CITY shall furnish the following used
collection equipment:
2 Collection Carts
8 Locked Collection Canisters
Within seven days of receiving the equipment CONTRACTOR shall inspect the equipment and
notify CITY of any unsuitability or defect which would be apparent upon reasonable
examination. Otherwise, CONTRACTOR shall have accepted the equipment as suitable and in
good repair except for latent defects.
EXHIBIT E
fir?-/0
Contract for Collecting Pa__.ig Meter Revenue
Page 2
CONTRACTOR shall maintain all CITY-furnished collection equipment in good repair and shall
provide all parts required for this maintenance. CITY may inspect collection equipment at any
time except that such inspection shall not disrupt CONTRACTOR's operations.
5. REPLACEMENT OF WORN-OUT COLLECTION EQUIPMENT
If CONTRACTOR demonstrates to CITY's satisfaction that collection equipment is worn out,
CITY shall replace the worn out equipment with new like equipment. Scheduling the
replacement shall depend on CITY's budget procedures.
6. REPLACEMENT OF LOST OR DAMAGED COLLECTION EQUIPMENT
CONTRACTOR shall bear the entire risk of loss or total damage to any CITY-furnished
collection equipment from any cause. Equipment loss or total damage shall not release
CONTRACTOR from any obligation under this contract. If loss or total damage to collection
equipment occurs, CONTRACTOR shall promptly notify CITY and replace the lost or damaged
equipment with new or used like equipment acceptable to CITY.
7. PERFORMANCE BOND
To guarantee faithful performance of this contract CONTRACTOR shall present to CITY and
receive CITY's acceptance of one of the following instruments:
A. a $2,500 performance bond
B. a $2,500 cash bond
C. a $2,500 letter of credit
8. LIABILITY FOR LOSS OF MONEY
CONTRACTOR shall be responsible for any loss of money which occurs from the time the
money is collected out of a parking meter until the time the money is delivered to designated city
location. CONTRACTOR's liability shall not exceed $2,500 for each collection day on which
such loss may occur. If such loss occurs, CITY shall establish the estimated loss by determining
the average amount collected from the area of loss on each collection day during the preceding
calendar month.
CITY shall notify CONTRACTOR in writing of any claim for any alleged loss of money within
5 days after CITY discovers the loss and within 60 days after the loss occurs.
CITY will establish a system of controls to identify losses and thefts from all sources.
02��
Contract for Collecting Pa„dng Meter Revenue
Page 3
9. INDEMNITY
CONTRACTOR shall defend, indemnify, protect and hold harmless CITY and its agents,
officers, and employees 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 agents,
officers or employees 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 under this contract, and all expenses of investigating and defending against
such claims or liability. 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 CITY and its agents, officers and employees.
10. INSURANCE
For the duration of this contract CONTRACTOR shall procure and maintain insurance against
claims for injuries to persons or damages to property which may arise from the performance of
work under this contract by CONTRACTOR and its agents, officers and employees. The cost
of such insurance shall be included in CONTRACTOR's bid.
Coverage shall at least include requirements shown in Exhibit 3 exclusive of auto insurance:
A. comprehensive general liability with a $1,000,000 combined single limit per
occurrence for bodily injury, personal injury and property damage; and
B. workers' compensation with limits required by the Labor Code of the State
of California when applicable; and
C. employers liability with limits of $1,000,000 per accident when applicable.
Any deductibles or self-insured retention must be declared to and approved by CITY.
Before starting work CONTRACTOR must submit and receive CITY's approval of certificate(s)
which (1) evidence the required insurance coverage (2) call for 30 days notice to CITY before
cancellation and (3) name the CITY and its agents, officers and employees as an additional —
named insured.
Insurance shall be provided by insurers with a Best's rating of no less than A:VII.
11. SALE OR TRANSFER
CONTRACTOR shall not sell, assign, transfer or delegate any rights, interests or obligation it
has under this contract without CITY's prior written consent.
Contract for Collecting P; ig Meter Revenue
Page 4
12. NOTICES
All notices required under this contract shall be given in writing and submitted by certified mail,
postage prepaid and addressed as follows:
To City: City Clerk
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
TO Contractor:
13. CONTRACTOR'S INDEPENDENCE
CONTRACTOR is an independent contractor. CONTRACTOR is not an agent of the CITY,
and CITY shall not control CONTRACTOR's operations outside the specifications and
procedures of this contract. Conversely, CONTRACTOR shall not interfere with CITY
operations not directly related to meter collection requirements.
14. TERMINATION FOR DEFAULT
All terms of this contract are material. If CONTRACTOR persistently fails to perform by the
terms, CITY shall notify CONTRACTOR in writing of the default. If CONTRACTOR fails to
remedy the default within 14 days of receiving notice, CITY may terminate this contract without
further obligation to CONTRACTOR. If CONTRACTOR satisfactorily demonstrates that a
default is both temporary and beyond CONTRACTOR's control, CITY will not terminate this
contract for such default.
15. TERMINATION FOR CONVENIENCE
CITY or CONTRACTOR may unilaterally terminate this contract, provided that the termination —
occurs after 5:00 p.m. on the last day of a calendar month and that the terminating party notifies
the other party at least three calendar months before taking such action. CITY shall pay
CONTRACTOR for all work satisfactorily completed before termination occurs.
e%f-/3
Contract for Collecting F ng Meter Revenue
Page 5
This contract is executed by the following authorized representatives.
FOR CONTRACTOR: FOR CITY:
MAYOR
date date
ATTEST:
CITY CLERK
APPROVED:
alih.
jrk OR Y
ATTBL WORKS DIRECTOR
FINANCE DIRECTOR
C4
v2-11
EXHIBIT A
PARKING METER COLLECTION POLICIES AND PROCEDURES
1. CONTRACTOR shall collect money from meters only on weekdays
(Monday-Friday) when Parking Office is open for business and only
during the hours between 8: 00am and 5: 00pm. The actual beginning
and ending times for collections shall be approved by City
2 . CONTRACTOR shall not collect money from meters on any legal or
local holiday observed by the City without prior approval of the
Parking Office.
3 . CONTRACTOR'S employees shall provide and wear a simple, but
distinctive, uniform which has been approved in advance by the
City. Contractor shall also provide all footwear, head gear,
jackets, weather gear or any other uniform requirements.
4 . CONTRACTOR shall collect money from meters for the specified
zones and lots at the following frequencies:
Tuesday Zones D, G, H
LOTS 21 6, 10
Wednesday Zones A, B
LOTS 9, Lib, 3 , 11
Thursday Zones E, F, C
LOTS 4
Friday Zones D, G,
LOTS 21 6, 10
The above frequencies and days of the week for collections are
subject to change at any time. City shall notify CONTRACTOR at
least 7 days before the effective date of change.
5. CONTRACTOR shall not change the routes or schedules without
prior written permission from City.
6. On collection days, CONTRACTOR'S employees shall proceed as
follows:
A. Pick up the keys needed to open the meters scheduled that day
from the City's Parking Division Office.
B. Sign for receipt of the keys in daily log maintained by City.
Keys will be held in locked collection canisters until needed
for a specific zone or lot on that day's collections.
C. Using equipment provided by City, collect money from meters
on the scheduled route (s) without deviating from that route.
Each collection canister will be picked up at the parking
office and walked back to the parking office when completed.
METER COIN COLLECTION POLICIES AND .PROCEDURES
CONTRACTOR will be responsible for placing collection cans and coin
bags inside holding cabinet during the collection days.
Contractor shall also provide a temporary lock or other security
device for audit control purposes while collection canisters and
bags art in his/her custody.
D. Using forms provided by City identify each bag of money from
the parking lots and each canister for each street zone collected.
E. If observable meter repairs are required, note them on a
Parking Meter Repair form. Any vandalism or meter theft should be
reported immediately to Parking office. Any repair work performed
on a meter by the Contractor which has not been approved by the
City will not be compensated for or be construed as a collection by
the contractor. Contractor, may also be required to survey meter
routes and zones pertaining to usage and/or meter malfunction. Any
compensation, if granted, for this type of information shall be
pre-approved by the City before it is completed. Any work
completed by Contractor which has not be approved, either verbal or
in writing shall not be compensated for in any manner.
F. Observe a city employee unlock the coin canister and
Contractor remove bag from inside can and place zone slip inside
bag and city employee seals bag. An empty bag is then replaced in
the canister and locked by city employee. Contractor will be
required to place coin bags and/or canisters inside the city's
designated storage facility.
G. Observe the city employee sign for receipt of the uncounted
coin can bags on form supplied by the bank.
H. Return the meter keys to City's Parking Office and observe a
City employee sign for receipt of the returned keys in log book
maintained by the City. Contractor is liable for replacement of
lost, stolen or misused keys and/or lock replacement as result of
misuse or negligence on part of contractor.
I. Turn in any meter repair slips to the meter repair person for
the City.
7 . As a representative of the City, Contractor shall conduct his
business in a professional manner and shall avoid the actual and
the appearance of impropriety in any form. Furthermore, Contractor
shall not interfere in any City operation which is outside the
requirements, policies or procedures of the meter collection
contract. Failure to comply with City's request for non-
interference shall be grounds for termination for cause of the
contract. City shall reserve the sole right to make the final
determination for compliance with this requirement.
PARKING METER COLLECTION POLICIES AND PROCEDURES
S . City also reserves the right to make changes or modifications
in contract polices or procedures upon mutual consent of both
parties.
METER COIN COLLECTION SPECIFICATIONS AND PROCEDURES
Selected contractor must meet the following requirements and
specifications:
BOND
Contractor must be bondable and post $2 , 500 bond prior to award of
contract. Contractor's employees or other personnel involved in
collections must also pass security background check given by the
City prior to award of contract. This will apply to any
replacement employee of the contractor as well.
INSURANCE
Contractor shall procure and maintain insurance in the amount of
$1, 000, 000 per single occurrence for general liability, personal
injury or property, naming City as additional insured, and
employers liability (when applicable) . Workers compensation shall
also be maintained (when applicable) by Contractor with limits set
by Labor Code of the State of California.
UNIFORM
Contractor must provide a City approved uniform that clearly
identifies contractor as a representative of the City while
collecting parking meters. Contractor is also responsible for
providing any and all inclement weather gear and footwear.
VACATIONS, TIME OFF, ABSENCES
Any vacation or time off must be approved one month in advance. A
city approved substitute must be available to cover approved
absences as well as sick days. Prior to award of contract,
contractor must indicate backup person and have that person meet
the same requirements as primary contractor.. Contractor is
responsible for providing collections as prescribed in
specifications. Contractor shall be liable for any loss to the City
for failure to collect parking meters as prescribed in the
specifications.
LIFTING
Contractor must be able to safely lift coin canisters weighing in
up to 120 pounds.
AUDIT
Contractor will be subject to periodic unannounced audits of coin
collection by means designated by city. Failure to pass prescribed
audits will subject contractor to appropriate penalties and/ or
legal action.
Exhibit 3
INSURY E REQUIREMENTS FOR COLT'. XTORS
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work hereunder
by the Contractor, his agents, representatives, employees or subcontractors.
Minimum[ Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code I (any
auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Minimttm Limits of Insurance
Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage.
If Commercial General Liability or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice
the required occurrence limit.
2. k�
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
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 the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following
provisions:
1. 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.
2. 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.
3. 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.
4. 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. _
S. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, cancelled 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.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII.
Verification of Coverage
Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements
effecting general liability and automobile liability coverage are also required by this clause. 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.
Subcontractors
Contractor shall include all subcontractors as insured under its policies or shall famish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements
stated herein.
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