HomeMy WebLinkAboutC-19404 _ 2d
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CITY OF ARCADIA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 2,5" day of _ 6Z b NO%V H , 200 by
and between the City of Arcadia, a municipal organization organized under the lAws of the State
of California with its principal place of business at 240 West Huntington Drive, Arcadia,
California 91066 -6021 ( "City ") and Moreland & Associates, Inc., a California Corporation with
its principal place of business at 1201 Dove Street, Suite 680, Newport Beach, CA 92660
( "Consultant "). City and Consultant are sometimes individually referred to as "Party" and
collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing infrastructure valuation
services to public clients, is licensed in the State of California, and is familiar with the plans of
City.
2.2 Project.
City desires to engage Consultant to render such services for the GASB 34 infrastructure
valuation project ( "Project ") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional infrastructure valuation consulting
services necessary for the Project ( "Services "). The Services are more particularly described in
Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject
to, and performed in accordance with, this Agreement, the exhibits attached hereto and
incorporated herein by reference, and all applicable local, state and federal laws, rules and
regulations.
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3.1.2 Term. The term of this Agreement shall be from January 1, 2003 to June
30, 2003, unless earlier terminated as provided herein. Consultant shall complete the Services
within the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall also not be employees of City and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Consultant shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows: Michael A. Moreland, Partner.
3.2.5 City's Representative. The City hereby designates Tracey L. Hause
Administrative Services Director, or his or her designee, to act as its representative for the
performance of this Agreement ( "City's Representative "). City's Representative shall have the
power to act on behalf of the City for all purposes under this Contract. Consultant shall not
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accept direction or orders from any person other than the City's Representative or his or her
designee.
3.2.6 Consultant's Representative. Consultant hereby designates Kathryn
Beseau, Partner, or his or her designee, to act as its representative for the performance of this
Agreement ( "Consultant's Representative "). Consultant's Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City's staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including a City Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Consultant's failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub - consultants who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re- employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations,. Consultant shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Project or the Services, including all Cal /OSHA requirements, and shall
give all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the City,
Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and
harmless, pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or
regulations.
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3.2. 10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
Work under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as
required by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of $1,000,000 per accident
for bodily injury or disease.
3.2.10.3 Professional Liability. INTENTIONALLY DELETED.
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2) the insurance coverage shall be primary insurance as respects
the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self - insurance maintained by the City, its directors, officials,
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officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or self - insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City except for non - payment of premium for which notice shall
be ten (10) days; and (B) 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 directors,
officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds; No Special Limitations. All
insurance required by this Section shall contain standard separation of insureds provisions. In
addition, such insurance shall not contain any special limitations on the scope of protection
afforded to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self- Insurance Retentions. Any
deductibles or self - insured retentions must be declared to and approved by the City.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than ANIII, licensed to do business in
California, and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
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3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation
shall not exceed twenty three thousand ($23,000) without written approval of the City Manager.
Extra Work may be authorized, as described below, and if authorized, will be compensated at the
rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Consultant. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, "Extra Work" means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of City during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
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3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
City, and Consultant shall be entitled to no further compensation. Consultant may not terminate
this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, City may require Consultant to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Consultant in connection with the performance of
Services under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, City may procure, upon such terms and in such manner as it
may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
City:
Michael Moreland
Moreland & Associate, Inc
1201 Dove Street, Suite 680
Newport Beach, CA 92660
City of Arcadia
240 West Huntington drive
Arcadia, CA 91066 -6021
Attn: Tracey L. Hause, Administrative Services Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
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3.5.3.1 Documents & Data; Licensing of Intellectual Property. This
Agreement creates a non - exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to, physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Consultant under this Agreement ( "Documents & Data "). Consultant shall require
all subcontractors to agree in writing that City is granted a non - exclusive and perpetual license
for any Documents & Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all Documents &
Data. Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to Consultant by
the City. City shall not be limited in any way in its use of the Documents and Data at any time,
provided that any such use not within the purposes intended by this Agreement shall be at City's
sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of City, be used by Consultant for any
purposes other than the performance of the Services. Nor shall such materials be disclosed to
any person or entity not connected with the performance of the Services or the Project. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either Party commences an action against the other
Party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing Party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, its
officials, officers, employees, volunteers and agents free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any
alleged negligent acts, omissions or willful misconduct of Consultant, its officials, officers,
employees, agents, consultants and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation the
payment of all consequential damages and attorneys fees and other related costs and expenses.
Consultant shall defend, at Consultant's own cost, expense and risk, any and all such aforesaid
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suits, actions or other legal proceedings of every kind that may be brought or instituted against
City, its directors, officials, officers, employees, agents or volunteers. Consultant shall pay and
satisfy any judgment, award or decree that may be rendered against City or its directors, officials,
officers, employees, agents or volunteers, in any such suit, action or other legal proceeding.
Consultant shall reimburse City and its directors, officials, officers, employees, agents and/or
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify
shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials
officers, employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
Parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both Parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ
other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the Parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
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3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, City shall have the right to rescind this Agreement without liability.
For the term of this Agreement, no member, officer or employee of City, during the term of his
or her service with City, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry,
sex or age. Such non - discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff
or termination. Consultant shall also comply with all relevant provisions of City's Minority
Business Enterprise program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it
is aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self -
insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
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3.6.1 Prior Approval Required.
the work required by this Agreement, except as
approval of City. Subcontracts, if any, shall c
provisions stipulated in this Agreement.
CITY OF ARCADIA
By: UN4-
William R. Kelly
City Manager
Date: U/wo
ATTEST:
Clerk
APPROVED AS TO FORM.-
Y . Ofa;t-74
Stephen P. Deitsch
City Attorney
E5
Consultant shall not subcontract any portion of
expressly stated herein, without prior written
ontain a provision making them subject to all
MORELAND & ASSOCIATES, INC.
By:
Michael Moreland
Partner
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CONCUR:
Departme t Head
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GASB 34 Infrastructure Valuation Services Scope of Work
City of
Arcadia
Scope of Work
The following scope of work has been developed based on: (1) the information included
in the City's Request for Proposal; (2) discussions with City staff; (3) our understanding
of the project and the City's objectives as we have described them in the Project
Understanding section of our proposal, and; (4) our Project Team's experience on other
GASB 34 assignments.
Task 1 — Project Start -Up
► As a first step for initiation of the project and this task, a "kick -off' meeting will be
held with City staff. The meeting will cover the following items:
• Definition of roles and responsibilities of Psomas', the City's key personnel, and
Moreland & Associates, Inc.
• Confirmation of the project goals and objectives and the City's expectation for an
"end product"
• Review of Psomas' Draft Work Plan and identification of any items that need to
be redirected
• Identification of key issues that are critical for the success of the project
• Names of key contacts at the City to obtain additional information and/or data
• Review of project schedule
• Definition of communication protocols to be followed for the project
Psomas will distribute meeting notes.
► Finalize Psomas' Work Plan based on comments, if any, received at kick -off
meeting.
1 Obtain digital/electronic copies of all database programs and other pertinent mapping
and/or plans.
► Conduct interviews with key staff identified at the kick -off meeting to obtain
background information for the project.
► Meet with the City's Finance Director and auditing firm representative to review our
proposed approach to the project and obtain approval that the approach will
satisfactorily meet the City's objectives and audit requirements for GASB 34.
Deliverables:
✓ Kick -off meeting minutes and action items
✓ Final Project Work Plan and Schedule
✓ Minutes of meeting with Finance Director and City's auditor
Task 2 — Compile Inventory, Develop Networks /Subsystems, and Compile Date
of Construction/Acquisition and Estimated Historical Cost
► An inventory of City owned and maintained major infrastructure assets will be
compiled using information from the sources as described below for each of the
assets prescribed in the City's RFP and through subsequent discussions with City
staff.
P S O M A S Scope of Work Page 4 of 8
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GASB 34 Infrastructure Valuation Services Scope of Work
City of
Arcadia
Since very little information is available from the City on historical costs, current
replacement costs will be estimated. A database will then be used to compile the
estimated current replacement cost. The current replacement cost will then be
deflated to the estimated date of construction to estimate the historical costs. The
historical Engineering News Record (ENR) Cost Indexes for Southern California will
be used for the deflator.
The level of information regarding the date of original construction or acquisition of
infrastructure assets available from the data sources varies for each asset. We
propose to use various methods of developing the estimated construction/acquisition
data where specific data are not readily available. One source could be the
recordation date for subdivision maps on file at the City and making the assumption
that the paving, sidewalks, curb and gutters, street lights, and sewers were
constructed in conjunction with the development of the subdivision. Another source
would be a very limited search of construction plans on file at the City. Through a
limited search of various data sources it may be possible to estimate the time period
that various geographic sectors in the City were developed, and to use that method to
assign an estimated time period when infrastructure in the sectors was constructed.
Since a large percentage of the City's infrastructure was constructed in the period
prior to 1970, we propose to use the following group of years for recording the
estimated construction/acquisition year:
Year in Service
1990 — June 30, 2002
Year to Record
Actual year, if possible
1985-1989
1987
1980-1984
1982
1970-1980
1975
Older than 1970
10 year increments using 1965, 1955, 1945,
and so on
It is assumed the City will compile infrastructure asset data for those assets acquired
or placed in service in Fiscal Year 2002/2003.
The following is a description of the methodology and sources of information and
data Psomas will use to compile information for use in estimating the current
replacement value, historical cost, and depreciated value for each prescribed asset:
Streets
Arterial Highway Pavement. We will use the City's Pavement Management
System Database (PAVER) for arterial highways, which is being updated by Harding
Lawson, to compile a segment -by- segment list of highways including the length,
width, pavement area and year constructed. An average per square foot cost of
pavement will be applied to the pavement area to develop the estimated current
replacement cost for each segment and then total amounts calculated.
P S O M A S Scope of Work Page 5 of 8
V y of
cadia
GASB 34 Infrastructure Valuation Services Scope of Work
Capital additions to the system of arterial highways through June 30, 2002 will be
included to the extent information is readily available in capital improvement reports
or other sources of the City. This applies not only to arterial highways, but to all of
the assets described below.
Local /Residential Street Pavement. We propose to compile an inventory of
local/residential streets using the same data source described above for arterial
highways.
Alleys. An inventory of alleys will be compiled by scaling the length for each alley
segment recorded on the City's street atlas maps or from actual improvement plans, if
available. The alley lengths will be used to calculate the current replacement costs
using an estimated construction cost per lineal foot (or mile) of alley. A method
similar to that used for local /residential streets will be used to assign year- built.
Curb and Gutter. The length of curb and gutter included in the City PAVER
database will be used for the arterial highways and for local/residential streets will be
used as the basis of estimating the quantity of curb and gutter. Current unit
construction costs per lineal foot will be used to estimate the current replacement
cost.
Sidewalk. The same method used for curb and gutter will be used to estimate the
quantity and replacement costs of sidewalk.
Sewers
The inventory (AutoCAD) map included with the City's Master Plan of Sewers
together with the inventory of pipe lengths, compiled by City staff from the
AutoCAD mapping, will be used to compile pipe lengths by pipe size and material
type. An average per lineal foot cost by pipe size and material type will be applied to
develop the estimated current replacement costs.
Traffic Signals
The City's consultant, Willdan, will be compiling an inventory of the City's traffic
signal facilities. It is our understanding that the inventory will include that data
needed for GASB 34 infrastructure report. We will use that data source to compile
the valuation and depreciation information. An average cost per signalized
intersection will be used to estimate the current replacement cost, or we will use the
cost information included in the inventory database furnished by the City. Date of
construction will be the date included in the database, furnished by the City.
Bridges
The City has bridge inspection reports prepared for reporting to Caltrans for all
bridge structures (including box culverts with spans of 20 feet or greater) in the City.
The information has been included in the City's asset database, CITYTECH. The
relevant data needed to compile an inventory and estimated current replacement cost
estimates is included in the reports. Average per square foot structure costs will be
used for cost estimating.
P S O M A S Scope of Work Page 6 of 8
M
GASB 34 Infrastructure Valuation Services
City of
Arcadia
Scope of Work
The inspection reports include information on the date of original construction and of
widenings /improvements.
► Monthly progress meetings will be held with City staff and at key milestone steps for
this task. Meeting notes with action items will be prepared.
Deliverables:
✓ Meeting notes with action items
✓ Inventory listing of the major infrastructure assets (hard copy and electronic format)
✓ Estimated current replacement cost and historical cost data for each network and
subsystem (hard copy and electronic format)
Assumptions:
✓ The digital /electronic copies of data and mapping will be provided at no cost to
Psomas
✓ Workspace will be provided at the City's Public Works Maintenance offices for use
by a Psomas staff person while compiling inventory data, if needed
✓ Field verification of the facilities is not part of this scope of work
Task 3 — Develop Useful Lives and Depreciation Method, and Calculate
Accumulated Depreciated Value
► We will develop a discussion of alternatives and then a preliminary proposal of the
useful life of the infrastructure assets for review and approval by the City staff. At
this juncture of the project, it would also be desirable to obtain concurrence of the
City's Finance Director and GASB 34 auditing firm to ensure that it will be
acceptable at the time of auditing our final work products.
► The estimated historical cost of infrastructure assets will be depreciated over the
agreed upon life using the straight -line method, which is the simplest and most
common depreciation method.
► An aggregate depreciated value and accumulated depreciation amount will be
compiled for final reporting to the City.
► An average annual depreciation amount per year to be applied for remaining years
will be compiled, as well as a calculation of the remaining years, over which to apply
the annual depreciation amount.
► Monthly progress meetings will be held with City staff and upon reaching
appropriate milestones in this task. Meeting notes will be prepared.
Deliverables:
✓ Meeting notes and list of action items
✓ Useful life discussions and proposal
✓ Accumulated depreciation and remaining depreciated (net book) values of Networks
and Subsystems
✓ Average annual depreciation amount per year to be applied for the remaining years,
and number of remaining years to apply annual depreciation amounts
P S O M A S Scope of Work Page 7 of 8
�1rr 'ftw
GASB 34 Infrastructure Valuation Services Scope of Work
City of
Arcadia
Task 4 — Final Report
A draft final report that includes the following elements will be prepared and
submitted for review and approval by the City:
• Description of the process and methodology used to develop the accumulated
depreciation of the City's major infrastructure assets according to Networks and
Subsystems
• Discussion of the methodology used to calculate the historical costs of the
infrastructure assets
• Discussion of the alternatives and recommended useful life
• Discussion of the depreciation method used to calculate the depreciated value
• Aggregate depreciated value and accumulated depreciation amount of the assets
will be recapped in the report
• Average annual depreciation amount per year to be applied for the remaining
years, and number of remaining years to apply annual depreciation amounts
• Copies of back -up data
Psomas will provide the City with digital/electronic copies of software databases
used to compile the inventory data, estimated replacement values, estimated
historical costs, and accumulated depreciation for each network and system. The
City will then be able to use the programs to maintain its infrastructure inventory. A
copy of the spreadsheet for an Excel database program we have developed for use on
other GASB 34 consulting assignments is included herewith as a sample of the
deliverable we will provide the City.
Assumptions:
✓ No public presentations will be required of the Consultant
✓ At the time of submitting the draft report, a presentation will be made to the City's
project team. Recommendations will also be included in the report pertaining to
future procedures and practices the City may want to consider for reporting of its
infrastructure assets in future years as it applies to the depreciation method.
✓ If necessary, a meeting will be held with City staff to discuss the City's review
comments on the draft final report.
Deliverables:
✓ Draft Final Report (4 copies)
✓ Meeting minutes
✓ Four (4) copies of a final report with the City staff review comments incorporated
will be submitted to the City
✓ If necessary, a meeting will be held with City staff to discuss the City's review
comments on the draft final report
P S O M A S Scope of Work Page 8 of 8
n
EXHIBIT "B"
SCHEDULE OF SERVICES
Project Start Up — January 2003
0
Compile Inventory, Develop Networks /Subsystems, Compile Date of Construction/Acquisition
and Estimated Historical Cost — January through April 2003
Develop Useful Lives and Depreciation Method and Calculate Accumulated Depreciated Value
— January through April, 2003
Final Report — May 2003
RVPUB \NGS \557188
B -1
m
Not to exceed $23,000.00
RVPUB \NGS \557188
EXHIBIT "C"
COMPENSATION
C -1
E5
Utn i lHtU PUBLIC ACCOUNTANTS
November 20, 2002
Ms. Tracey Hause
Administrative Services Director
City of Arcadia
240 W. Huntington Drive
Arcadia, CA 91007
Dear Ms. Hause:
fi REM79u i-M-0— _ —_. _, ---- - --
N�ACH, CALIFORNIA 92660
(949) 221 -0025'
570 RANCHEROS DRIVE, SUITE 260
SAN MARCOS, CA 92069
(760) 752 -3390
As a result of our meeting on October 28, 2002, and further discussions and review of the City's
infrastructure records by Mr. Gary Dysart, we are amending our proposal to the City for infrastructure
services dated September 30, 2002.
The scope of services as described in our original proposal has been expanded to include the additional
services as described in the attached proposal from Psomas. The change in scope of services will result in
a change in our proposed fees. The total fees for our services, including the services provided by Psomas
will be as follows:
Level of Work Performed
Partner ( Beseau and Moreland)
Project Manager (Crays)
Psomas Engineering:
Gary Dysart
Project Engineer
Project Analyst
Support Staff
Out -of- pocket expenses
Not -to- Exceed Fees
Hours
Rate
Amount
30
$110
$ 3,300
60
65
3,900
36
150
5,400
10
135
1,350
14
125
1,750
100
65
6.500
22,200
800
We believe we have a good understanding of the scope of services that you require, and we are looking
forward to providing these services to the City. Please call at your convenience if you have any questions
or require any additional information.
Very truly yours,
MOREALND & ASSOCIATES, INC.
Zathryn Beseau, Partner
1.14
02/26/03 WED 09:17 FAX 949 474 8991 ROBINSON INSURANCE
rwj
la 0 O 1
ACORD,,,, CERTIFICATE OF LIABILITY INSURANCE
_
DATE (MMIDONY)
1 2/25/03
PRODUCER
PHILIP B . ROBINSON INSURANCE
2081 BUSINESS CENTER OR. 4 200'
IRVINE, CA 92612 9494749300
THIS CERTIFICATE 1S ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURERS AFFORDING COVERAGE
NBURED
MORELAND & ASSOCIATES
1201 DOVE ST # 680
NEWPORT BEACH, CA 9 2 6 6 0
949 -2211 -0025
INSURER AIAMERICAN STATES INSURANCE CO.
INSURER&PHILADELPHIA INDEMNITY INS CO.
INSURER C:
_INSURER 0:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INS-
TYPE OF INSURANCE ! POLICY NUMBER
POLICY EFFE) E
POLICY tM DIAINNI
LIMITS
REPRESENTATN[!. ''
GENERAL LABIUM 0 2 B 0 7 6 9 819
3-26-02
13-26-03
EACH OCCURRENCE
s 1 0 0 0, 0 0 0
A
7 CCCOO— MMERCIAL GENERAL LIABILITY
J CLAIMS MADE V j OCCUR
FIRE DAMAGE (My ono Tire)
$1 , 000, 0 0 0
MED EXP (My one parson)
110 0 0 0
PERSONAL 6 AOV INJURY
GENERAL AGGREGATE
$1, 000, 0 0 0
s2, 000, 00 0
I,
GENL AGGREGATE_ LIMIT APPLIES/ "P�ER,
j7 POLICY 7 l PRO- I V LOC j
PRODUCTS - COMPIOP AGG
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AUTOMOBILE LIABILITY
_ ANY AUTO
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COMBINED SINGLE LIMIT
(Ea accident)
f
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ALL OWNED AUTOS
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7I SCHEDULED AUTOS
Vj HIRED AUTOS
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0 2 BO7 6 9 819
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i3-26-03
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BODILY INJURY
(Par parson)
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(Per accidanq
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(Per Occident)
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GARAGE LIABILITY
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AUTO ONLY - E1 ACCIDENT
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AUTO ONLY: AGG
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EACH OCCURRENCE
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RETENTION f
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WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
wC STATU- OTH-
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E.L. EACH ACCIDENT
$1,000,000
E.L. DISEASE - EA EMPLOYEE
$1, 0 0 0, 000
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fl, 000 000
01WC925745
4 -1 -02
4 -1 -03
OTHER
B
PROFESSIONAL IPHSDO31788
7 -1 -02
7 -1 -03
1,000,000
DESCRIPTION OF OPERATION SILOCATIONS IVEHICL.ES1EXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVBL)NS
CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN
CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY LIMITED TO
CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY
CERTIFICATE HOLDER 1 I ADDITIONAL NISURED: INSURER LETTER: CANCELLATION
CITY OF AR CAD I A
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
P.O. BOX 60021
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAN. 3 0 DAYS WRITTEN
ARCAD IA CA 9106G-6021
NOTICE ID THE CERTIFICATE HOLDEA NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
,
IMPOSE 140 OBLIGATION-OR LNIBILITY�F ANY KIND UPON THE INSURER, ITS AGENTS OR
ATTN: CHRIS LUDLUM
REPRESENTATN[!. ''
AUTHORRED REPRESENT
1- _
FAX# 6 2 6- 8 21- 0 0 9 2
ACORD 25-S (7197) 0 ACORD CORPORATION 1988
Feb -13 -2003 02:37pm From-
L,
T -577 P102/004 F -305
-T
=BD,. CERTIFICATE OF LIABILITY IN
DATE
TYPE OF r11URANCE
02,r11 -03
PRODUCER
PHILIP B. ROBINSON INSURANCE
2 0 81 BUSINESS CENTER DR. # 200
IRVINE, CA 92612 9494749300
THIS CERTIRCATE IS ISSUED A$ A MATTER OF INFOPMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE:
ALTER THE THIS AFFORDED BY THE EPNOLICIESeBELOW.:
LIMITS
A
INSURERS AFFORDING COVERAG@
INiUR�
MORELAND & ASSOCIATES
1201 DOVE ST ## 680
NEWPORT BEACH, CA 92660
1949-221-0025
INSUM-11k?,MERICAN STATES INSURANCE CO.
INSURE. a: PHILADELPHIA INDEMNITY INS CO . -
INSURCRC:
WSURrR Di
INSURE. F..
umvnnnumn
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED .DR
MAY PERTAIN, THE INSURANCE AFFOHOED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT 1'0 ALL THE TERMS, EXCLUSIONS AND CON13ITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
TYPE OF r11URANCE
POLICY NUMBER
PO Y +1BC7rus
PO FYRATION
LIMITS
A
GENERAL UAPIUrY
T COMMERCUn, GENERAI.. LIAIILITY
CLAIMS MACE i,L OCCUR
0 2 60 7 6 9 819
3-26-03
3- 2 6- 0 4
EACH OCCURRENCE
91 1 0 00 010 0
FIRE DAMAGE (MY ono fifo)
$1, 000, 0;00
MED EXP my OM Few")
110' 000
PGRSONAL 4 ADU IN.IURY
$1,000, G0 0
GENERAL AGGREGATE
s2,000, 000
GEN'L AGOREGATE LIMIT APPLIES PER:
I'OLiOV PRO. ' LOC
PRODUCTS • COMP /OP AGO
11 O O O
_1000,
A
4UTOMDIILE
WMLITT
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON•OWNEO AUTOS
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0 2 B07 6 9 819
3- 2 6- 03
3-26-04
COMBINED SINGLE LIMIT
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BODILY INJURY
(P•r Po1wN
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$
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(Pot 0410VAU
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$1,'000' 0 0 0
AGGREGATE
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WORREAS COMMS47ION AND
ENWLOVERW UADIUTY
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4 -1- 0 3
W - A
E.L. EACH AMOENT
f 1 s 000, 0 0 0
E.L. DIBEAIE - EA EMPLOYE
11 0 0 0, 000
E.L. DISEASE . POLICY LIMIT
( 1 0 0 0 0 0 0
B
OTHTA
PROFESSIONAL
PHSDO3178S
7 -1 -02
7 -1 -03
1,000,600
uLw.,.,II,V- Vf a v,- P, Pwwunaamm ii"'.mxL T{1--Mv
CPA * If canceled for nonpayment 10 day notii:e will be given.
Certificate holder is named as additinal insured w/ liability limited to
Claims arising out of the ineurods operation only.
Waiver of subrogation appy in favor of the CI_y of Arcadia,its Dirs.,Officiaj,e,
Off _ice_r- EmDlveeB, Agents, & designated volteers . as resnenr_ rn wr & P.rnr% TA a1, r,,,l
TRACY L. HOUSE
ADMINISTRATIVE BERV. DIR.
CITY OF ARCADIA
P.O. BOX 60021
ARCADIA, CA 91066-2021
SHOULD MY OF TRIP LOVE 0l7CR19B0 POLICIU BE CANCRLL— BaP0147NE EI►IR'60M
DATC TNGICOF, THC ISSUNO IIIURDR WILL MOEAVOR TO MAIL 3 0 DAVI WRITTEN
NOTIUR TO TNI CERTIFICATE HOLDER MAW A TO THE LEFT, BUT PAiJJRE TO DO SO IpxALL
IMP09E Nil OBLMATION OR UABM OF ANY RIND UPON THE INIURm' RI AOEN'(>{ OR
Feb-13-2003 02:30pm From-
T -577 P.003/004 F -305
Policy Number: 02B0769819 Commercial General Liability
THIS ENDORSEMENT CHANGES THE POLICY. (PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS (FORM B)
This endorsement modifies Insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
Schedule
Name of Person or Organization:
THE CITY OF ARCADIA, ITS DIRECTORS, OFFICALS, EMPLOYEES, AGENTS AND
DESIGNATED VOLUNTEERS
(if no entry appears above, the information required to complete this endorsement will be shoym is the
declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section 11) is amended to include as an insured the person or organization shown
in the schadule, but only with respect to liability arising out of "your work" for that insured by or for you.
CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984
{
J
Feb -16 -2003 OI:00pm Fr • om- T -585 P. 002/002 F -364
� r"" M�tINIIDIIIOMINCF01iMiL1EAAii�"
I'
WORKERS COMPENSATION SAND EMPLOYERS WC O4 to oe
LIABILITY INSURANCE POLICY (4
Policy Number: 01•WC925745 Name insured: Moreland & Associates
WAIVER OF OUR R10HT TO RECOVER FROM OTWERS ENDORSEMENT - QkMRNIA '.
We have the dght to recover our paymenls imm anyone Nable tar an logy coverer by this policy. We va not oriiotie our riDM
ageUsl the pen on or organkft named in the Schedule, (This agreement eppilm only to the e4mt that you perform work
under a wrlflen conlrad that require you to oblaln this agmwat from us.) t
You must maintain paymn records acowely segregating the remuneration of your employees while engaged in the work
descnbad In the Schedule. i.
The aftonel premium for this enderument shall be 40066% % of the Cardomia workers' compewdlon premium „
otherwise due on such rommmlon.
i
Schedule
Person ar Organisatlon 411 Description
City of Arcadia
officers, employees, agents
and volunteers GAS:339 Infrastructure ;
Valuation
This endorsement changes the policy to which it is attached
and effective on the date issued unless otherwise stated.
�i
(the information below is required only when this
endorsement is issued subsequent to preparation '
of the policy.)
Countersivned
• i
I
• i
a i
4 I•
i 4
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