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HomeMy WebLinkAboutItem 09c - Case Management and Housing Navigation Services STAFF REPORT RECREATION & COMMUNITY SERVICES DEPARTMENT DATE: May 5, 2026 TO: Honorable Mayor and City Council FROM: Sara Somogyi, Director of Recreation and Community Services By: Ashley Marston, Senior Management Analyst SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH HOUSING EMPOWERMENT RECOVERY & OUTREACH COMMUNITY SERVICES FOR CASE MANAGEMENT AND HOUSING NAVIGATION SERVICES IN AN AMOUNT NOT TO EXCEED $289,185 CEQA: Not a Project Recommendation: Approve SUMMARY The Recreation and Community Services Department utilizes contract services to provide case management and housing navigation services in the City. To ensure the City is receiving the highest quality service and most competitive pricing, staff issued a Request for Proposals (“RFP”) for Case Management/Housing Navigation Services. Housing Empowerment Recovery & Outreach Community Services (“HERO") provided the proposal that best meets the City’s needs. The proposed agreement is for the period of one year with the option to renew annually, for a maximum of three additional years. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a Professional Services Agreement with HERO for Case Management/Housing Navigation Services, in an amount not to exceed $289,185, with the option for three one-year extensions. It is further recommended that the City Council delegate the authority to approve the optional renewals under this agreement to the City Manager, provided that any financial increases remain within standard inflationary levels. Professional Services Agreement for Homeless Case Management/Housing Navigation Services May 5, 2026 Page 2 of 4 BACKGROUND On June 21, 2022, the City Council approved a contract with Los Angeles Centers for Alcohol and Drug Abuse (“L.A. CADA”) for three full-time case managers/housing navigators, who provide seven days of coverage. The contract was renewed for an additional three years and is set to expire on June 30, 2026. On November 18, 2025, the City Council approved a Memorandum of Agreement with the San Gabriel Valley Council of Governments (“SGVCOG”) to accept Measure A funds for homeless programs. Per the Agreement, the City operates several projects with Measure A funds, including Case Management/Housing Navigation Services. DISCUSSION In January 2026, a Notice Inviting Proposals was published for Case Management/Housing Navigation Services, in accordance with City Council Resolution No. 7483. On February 12, 2026, the City received four proposals that were evaluated by a panel from the Recreation and Community Services Department. The panel considered thoroughness, understanding of the scope of work, related experience, references, quality, and costs. Further, the panel conducted interviews to ascertain additional information from each of the proposers and requested updated costs to receive more competitive pricing. The results of the evaluation, including a final ranking, score (out of 100 points), and costs, are listed below: Company Name Rank Score Cost Annual Escalator HERO 1 95 $289,185 3.5% less one-time expenses L.A. CADA 2 93 $293,000 5% Volunteers of America 3 89 $280,000 5% on personnel Correctional Health Treatment Centers 4 61 $270,000 5% After careful consideration, the panel selected HERO to perform these services, as their qualifications, knowledge, experience, and cost most closely fit the needs of the Professional Services Agreement for Homeless Case Management/Housing Navigation Services May 5, 2026 Page 3 of 4 City of Arcadia. HERO’s proposal was comprehensive, demonstrating their understanding of the scope of work and Arcadia’s values. HERO is a smaller, non- profit organization focusing on quality, responsiveness, and deep community integration. HERO employs qualified staff with lived experience, providing the unique ability to meet individuals where they are, establish trust, and build authentic relationships with clients. Further, many of HERO’s employees have experience in providing homeless services in Arcadia and are familiar with the City’s procedures and local population. This familiarity will help the organization work effectively on day one. Beyond their employees, HERO has connections to regional resources and preexisting relationships with local housing options, providing Arcadia with a gateway to expedited housing placements. Additionally, the organization is willing to adjust their schedules and approach to maximize their time and effectiveness for the upcoming 2028 Olympic and Paralympic Games. Their tailored approach, willingness to go above and beyond, and connections to regional resources make HERO the most suitable option for the contract. While HERO’s cost proposal was not the lowest, the panel determined the organization to be superior in terms of service quality, responsiveness, and resources. Additionally, HERO proposed the smallest annual escalator rate, ensuring that possible extensions will result in more competitive costs over a four-year period. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The proposed FY 2026-27 contract cost is an increase of $9,150 from the current annual amount, roughly a 3% increase. The contract and possible extensions will be supported by a combination of different grant funds, based on availability. The annual contract costs and projected funding sources are listed below. Professional Services Agreement for Homeless Case Management/Housing Navigation Services May 5, 2026 Page 4 of 4 Fiscal Year Contract Amount Projected Funding Sources 2026-27 $289,185 ARPA: $145,000 Measure A: $100,000 PLHA: $45,000 2027-28 $292,067 Measure A & PLHA 2028-29 $302,289 Measure A & PLHA 2029-30 $312,869 Measure A & PLHA While Measure A and PLHA are permanent funding sources, the amount received by the City varies each year. Due to this fluctuation in funding, future allocations are difficult to project and funding sources are subject to change based on amounts and availability. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Housing Empowerment Recovery & Outreach Community Services for Case Management and Housing Navigation Services in an amount not to exceed $289,185, with the option for three one-year extensions. It is further recommended that the City Council delegate the authority to approve any optional renewals under this agreement to the City Manager, provided that any financial increases remain within standard inflationary levels. Attachment: Proposed Professional Services Agreement 1 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING CASE MANAGEMENT/HOUSING NAVIGATION SERVICES This Agreement is made and entered into as of July 1, 2026, by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066 (“City”), and Housing Empowerment Recovery & Outreach Community Services (“HERO"), a non-profit organization with its principal place of business at 8605 Santa Monica Blvd. #196067 West Hollywood, CA 90069 (hereinafter referred to as “Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Case Management/Housing Navigation Services (hereinafter referred to as “the Project”). B. Contractor is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Contractor to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Contractor shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Contractor under this Agreement exceed the sum listed set forth in Exhibit “B.”. This amount is to cover all costs, and the City will not pay any additional fees. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work 2 performed. Payments to Contractor for work performed will be made on a monthly billing basis. 3. Additional Work. If changes in the work seem merited by Contractor or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Contractor with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Contractor and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term. The term of this Agreement shall be from July 1, 2026, to June 30, 2027, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Contractor shall perform its services in a prompt and timely manner within the term of this Agreement. 6. Delays in Performance. a. Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 7. Compliance with Law. 3 a. Contractor shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Contractor shall assist the City, as requested, in obtaining and maintaining all permits required of Contractor by federal, state and local regulatory agencies. c. If applicable, Contractor is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 8. Standard of Care. Contractor’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subcontractor. Contractor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Contractor from employing independent associates, and subcontractors as Contractor may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor. Contractor is retained as an independent contractor and is not an employee of City. No employee or agent of Contractor shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Contractor shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. Contractor and subcontractors are also required to meet additional insurance requirements described in the Additional Insurance Requirements attached hereto as Exhibit “C.” a. Commercial General Liability. 4 (i) The Contractor shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability Contractor shall procure and submit evidence of insurance for at least five (5) years from the time that all work under this Agreement is completed. (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage (9) Independent Contractors Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. Contractor may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. 5 b. Automobile Liability. (i) At all times during the performance of the work under this Agreement, the Contractor shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. Contractor may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability. (i) Contractor certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Contractor has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Contractor shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Contractor shall require all subcontractors to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. d. Professional Liability (Errors and Omissions). At all times during the performance of the work under this Agreement the Contractor shall maintain professional liability or Errors and Omissions insurance appropriate to its 6 profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contractor. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required. (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required. Prior to execution of the Agreement, the Contractor shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificat e of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the 7 type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required. (i) Contractor shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Contractor shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Contractor shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. Contractor may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Contractor’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Contractor shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Contractor shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Contractor from liability in excess of such coverage, nor shall it limit the Contractor’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. 8 h. Qualifying Insurers. (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. i. Additional Insurance Provisions. (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Contractor, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Contractor to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. j. Subcontractor Insurance Requirements. Contractor shall not allow any subcontractors or subcontractors to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subcontractors shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. All subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. If requested by Contractor, City may approve different scopes or minimum limits of insurance for particular subcontractors or subcontractors. 9 12. Indemnification. a. To the fullest extent permitted by law, Contractor shall defend (with counsel of City’s choosing), 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 of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, Contractors or agents in connection with the performance of the Contractor’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor, the City, its officials, officers, employees, agents, or volunteers. b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Contractor’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, but shall not otherwise be reduced. If Contractor’s obligations to defend, indemnify, and/or hold harmless arise out of Contractor’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Contractor obtaining a final adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Contractor’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Contractor’s proportionate percentage of fault. 13. California Labor Code Requirements. a. Contractor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). 10 b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor. 14. Verification of Employment Eligibility. By executing this Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all Contractors and sub- contractors to comply with the same. 15. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Los Angeles, State of California. 16. Termination or Abandonment. a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Contractor. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Contractor the 11 reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services perform ed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Contractor of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Contractor may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Contractor. 17 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 18. Organization. Contractor shall assign Joshua Heinzman as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 19. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 20. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: CITY: City of Arcadia 375 Campus Drive Arcadia, CA 91007 Attn: Ashley Marston Recreation & Community Services CONTRACTOR: Housing Empowerment Recovery & Outreach (HERO) Community Services 8605 Santa Monica Blvd., Unit 196067 West Hollywood, CA 90069 Attn: Joshua Heinzman 12 and shall be effective upon receipt thereof. 21. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Contractor. 22. Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Fede ral Constitutions. 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. 23. Entire Agreement. This Agreement, with its exhibits, represents the entire understanding of City and Contractor as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 24. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 25. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Contractor shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 26. Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 13 27. Time of Essence. Time is of the essence for each and every provision of this Agreement. 28. City’s Right to Employ Other Contractors. City reserves its right to employ other Contractors, including engineers, in connection with this Project or other projects. 29. Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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 director, official, 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. [SIGNATURES ON FOLLOWING PAGE] 14 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND HOUSING EMPOWERMENT RECOVERY & OUTREACH (HERO) COMMUNITY SERVICES IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA HOUSING EMPOWERMENT RECOVERY & OUTREACH (HERO) COMMUNITY SERVICES By: By: Dominic Lazzaretto Signature City Manager Date: Its: ATTEST: Printed Name By: Date: City Clerk APPROVED AS TO FORM By: Signature By: Its: Michael J. Maurer City Attorney Printed Name 15 EXHIBIT “A” Scope of Services Services will benefit PEH and those who are at-risk of homelessness within Arcadia. These services are defined as those which are normally a part of case management and housing navigation and may include, but not be limited to the following: • Case Management • Housing Navigation • Street Outreach • Mental Health Support • Substance Abuse Services • Supportive Services Referrals • Financial Allocations • Essential Resource Distribution • Transporting Clients • Housing Placement • CES and HMIS Entry • Data and Reports 1. Best Practices Contractor will follow best practices for providing services for PEH, including housing-first and trauma-informed care. Contractor shall work with each participant to develop an individual service plan to gauge participants’ needs, goals, skills and abilities, personal characteristics, and physical capabilities. Contractor will include a follow up plan on client whereabouts after intervention. 2. Schedule Case Managers/Housing Navigators will work a full-time, 40-hour week. Between three Case Managers/Housing Navigators, coverage will be expected Monday- Sunday, seven days a week. In the event a Case Manager/Housing Navigator takes vacation or calls out, the Contractor must find a replacement and notify the City of the change. Time of each Case Manager/Housing Navigator will be split between office work and street outreach. No fewer than 16 hours per week, per Case Manager/Housing Navigator shall be allocated to street outreach. A set weekly schedule for all Case Managers/Housing Navigators is required; however, daily hours of operation can vary day by day and may be adjusted based on City needs. Contractor is required to meet regularly with City staff and attend community engagement meetings and events in which services may be required. 3. Response Times & Manner Requests for services will be available to both the public and City staff by email and phone. Contractor will create and manage an Arcadia specific email address and an Arcadia specific phone number to receive service requests. Case Managers/Housing Navigators are expected to respond to clients and City staff in a timely manner. Case Managers/Housing Navigators should respond to requests within one business day. 16 4. Equipment & Workspace Contractor must provide their own equipment including laptop computers, Wi-Fi hotspots, cell phones, vehicle, and any other equipment necessary for completing the Scope of Services. Contractor must have access to Homeless Management Information System (HMIS) and the Coordinated Entry System (CES) or be able to receive access by contract start date. Contractor must have a system database for tracking all data required by the City. The City and Contractor will discuss suitable workspaces for Case Managers/Housing Navigators after selection. Currently, workspace is located at the Arcadia Public Library on Wednesdays and at the Recreation & Community Services Department on an as needed basis. 5. Financial Allocations With City prior approval, Contractor will distribute and track financial allocation to PEH and those at-risk of homelessness. Every financial allocation must be accompanied by a client form and an itemized receipt. Allocations will adhere to City policies, including pre-requisites and annual limits, and may require client follow-up. 6. Data & Reporting Contractor agrees to prepare and submit data, forms, and reports as required by the City. a. Data required includes, but is not limited to: • Street outreach hours and office hours • First-time encounters and follow-ups • Client demographics • Financial allocations and item distributions • Connections to supportive services • Connections to housing • Housing status follow-ups b. Forms and reports include, but are not limited to: • Client Forms (PDF) • Monthly Report (PDF) • Monthly Narrative Log (PDF or Word Doc) - Confidential • Quarterly Interactions Log (Excel File) 7. Invoices Contractor shall submit invoices for reimbursement monthly no later than the 10th day of the subsequent month. Invoices must be accompanied by supporting documentation, including the Monthly Report, Monthly Narrative Log, Client Forms, and receipts. Invoices will not be processed until all supporting documentation has been received by the City. Payment is issued in the form of a check typically two weeks after receipt of invoice is confirmed. 17 8. Record Retention Financial records, supporting documents, statistical records, and all other records pertaining to the use of the funds provided shall be retained by the Contractor for a period of five (5) years, at a minimum, and in the event of litigation, claim, or audit, the records shall be retained until all litigation, claims, and audit findings involving the records have been fully resolved. The Contractor shall maintain all records including, but not be limited to: • Records providing a full description of each activity undertaken • Records required to determine the eligibility of activities • Financial records 18 EXHIBIT “B” Schedule of Charges/Payments This is a time-and-materials contract. Contractor will invoice City on a monthly cycle. FISCAL YEAR 2026-27 ANNUAL COST PERSONNEL SALARY Case Manager Coordinator $34.00/hour $70,720 Case Manager $27.00/hour $56,160 Case Manager $27.00/hour $56,160 PERSONNEL BENEFITS Case Manager Coordinator Payroll tax and benefits: 25% $17,680 Case Manager Payroll tax and benefits: 25% $14,040 Case Manager Payroll tax and benefits: 25% $14,040 OPERATION EXPENSES Insurance $9,000 Vehicle down payment, lease, gas, and maintenance $18,195 Laptops $1,500 Cellphones and hot spot $2,000 Office supplies $1,000 Client supplies $2,400 MISCELLANEOUS OR INDIRECT EXENSES 10% Indirect costs $26,290 FISCAL YEAR 2026-27 TOTAL $289,185 POSSIBLE EXTENSIONS FISCAL YEAR ANNUAL COST 2027-28 $292,067 2028-29 $302,289 2029-30 $312,869 19 EXHIBIT “C” Additional Insurance Requirements This contract is partially supported by grant funding offered via Los Angeles County Development Authority (LACDA), therefore additional insurance requirements as established by LACDA must also be met. Any additional Exhibits referenced below refer to the City’s contract with LACDA, which will be furnished upon request. LOS ANGELES COUNTY DEVELOPMENT AUTHORITY INSURANCE REQUIREMENTS 1.0 Insurance Without limiting the Operating Agency's indemnification of LACDA lndemnitees, and in the performance of this Contract and until all its obligations pursuant to this Contract have been met, the Operating Agency shall provide and maintain at its own expense insurance coverage satisfying the requirements specified herein. These minimum insurance coverage terms, types and limits (the "Required Insurance") also are in addition to and separate from any other contractual obligation imposed upon the Operating Agency pursuant to this Contract. The LACDA does not guarantee that the Required Insurance is sufficient to protect the Operating Agency from liabilities which may arise from or related to this Contract. The insurance policies are to contain and be endorsed to contain, the provisions set forth herein. All certificates of insurance and endorsements shall carry the following identifier: City Of Arcadia (the "Operating Agency") PLH180-26 - Year 5 Activity 6 Homeless Case Management and Housing Navigation Services If circumstances or activities change during the fiscal year for any of the projects, the Operating Agency shall immediately notify the LACDA of any circumstances or activity changes that may affect the insurance requirements herein. The Operating Agency's failure to comply with and LACDA amended insurance requirements shall be deemed a material breach of this Contract. Funding advance, reimbursement, or disbursement may be delayed until all the insurance requirements have been met. Exceptions to the Required Insurance will be granted on a case-by-case basis at the discretion of the LACOA's Risk Management. Prior to the Operating Agency receiving funds, the LACDA will review the activities of the Operating Agency for required insurance. The LACDA reserves the right, at its sole and absolute discretion, to amend at any time the provisions of EXHIBIT “B”. 20 1.1 Insurance Coverage All insurance coverage requirements listed below are to be provided upon the execution of the Contract between the Operating Agency and the LACDA, unless otherwise specified. [INSURANCE REQUIREMENTS CONTINUED ON FOLLOWING PAGE] 21 OPERATING AGENCY REQUIREMENTS (Non-Construction): GENERAL LIABILITY: (providing scope of coverage equivalent to ISO policy form CG 00 01), naming the LACDA, its Special Districts, Elected Officials, Officers, Agents, Employees and Volunteers (collectively "LACDA and its Agents") as Additional Insureds Endorsement page with primary and non-contributory coverage and a waiver of subrogation naming the LACDA and the County of Los Angeles ("County") is required. General Aggregate: $2 Million Personal and Advertising Injury: $1 Million Each Occurrence: $1 Million SEXUAL MISCONDUCT LIABILITY: Insurance shall include covering for actual or alleged claims for sexual misconduct and/or molestation, and claims for negligent employment, investigation, supervision, training or retention of, or failure to report to proper authorities, a person(s) who committed any act of B abuse, molestation, nature. Per Claim Aggregate harassment, mistreatment or maltreatment of a sexual $2 Million $2 Million COMMERCIAL AUTOMOBILE INSURANCE: Shall include coverage of all "owned", "hired" and "non-owned" vehicles, or coverage for "any auto". Shall c include a waiver of subrogation in favor of the LACDA. Bodily injury and property damage, in combined or equivalent split limits, for each single accident $50 Thousand WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY: as required by the Labor Code of the State of California. Must include a waiver of subrogation in favor of the LACDA. In all cases, insurance shall include employer's liability coverage with limits of not less than indicated. Employers' Liability coverage with limits of not less than $1 Million PROFESSIONAL LIABILITY/ERRORS AND OMISSION INSURANCE: Appropriate to the professional's profession in an amount not less than LACDA requirements. Said insurance shall be maintained for a period of not less than three (3) years following this Contract's expiration, termination or cancellation. Per Claim $1 Million Per Aggregate -$2 Million CRIME INSURANCE:Including, but not limited to, coverage against loss of money, employee theft/forgery, securities, inventory or other property, with limits in amounts not less than indicated. See Section 1.2.3 E 22 OPERATING AGENCY REQUIREMENTS (Construction & Environmental): B RESERVED GENERAL LIABILITY: (providing scope of coverage equivalent to ISO police form CG 00 01), naming the LACDA, its Special Districts, Elected Officials, Officers, Agents, Employees, and Volunteers (collectively "LACDA and its Agents"). Additional Insured Endorsement page with primary and non contributory coverage and a waiver of subrogation naming the LACDA and the County is required. Coverage shall include an XCU Endorsement for explosion, collapse, and underground ("XCU") hazards, property damage liability. General Aggregate: $2 Million Products/Completed Operations Aggregate $2 Million Personal and Advertising Injury: $1 Million Each Occurrence: $1 Million COMMERCIAL AUTOMOBILE INSURANCE: Shall include coverage of all "owned", "hired" and "non-owned" vehicles, or coverage for "any auto", pollution liability broadened coverage for covered autos and a waiver of subrogation. C The automobile liability policy shall be endorsed to include transportation pollution liability insurance covering materials to be transported by Contractor pursuant to the Contract. This coverage may also be provided on the Contractor's pollution liability policy. If automobiles are to be used for transporting hazardous materials, the Contractor shall provide pollution liability broadened coverage for covered autos as well as proof of MCS 90. Bodily injury and property damage, in combined or equivalent split limits, for each single accident WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY: as required by the Labor Code of the State of California. Must include a waiver of subrogation in favor of the LACDA. In all cases, insurance shall include employer's liability coverage with limits of not less than indicated. Employers' Liability coverage with limits of not less than 1 Million E PROFESSIONAL LIABILITY INSURANCE: Appropriate to the professional's profession in an amount not less than the LACDA requirements. Said insurance shall be maintained for a period of not less than three (3) years following this Contract's expiration, termination or cancellation. Per Claim $1 Million Per Aggregate $2 Million $1 Million 23 RESERVED POLLUTION LIABILITY INSURANCE AND/OR ASBESTOS POLLUTION LIABILITY AND/OR ERRORS & OMISSIONS: applicable to the work being performed including coverage for bodily injury, personal injury, death, property damages, and environmental damage. The LACDA and the County shall be covered as additional insureds on the pollution liability insurance policy with limits not less than $2,000,000 general aggregate and $1,000,000 each occurrence. Said policy shall also include but not be limited to, coverage for any and all remediation costs, including, but not limited to, brownfield restoration and clean- up costs, and coverage for the removal, repair, handling, and disposal of asbestos and/or lead containing materials where applicable. The LACDA and the County shall be covered as additional insureds on the pollution liability insurance policy. If the general liability insurance policy and/or the pollution liability insurance policy is written on a claims-made form, then said policy or policies shall also comply with all the following requirements: a. The retroactive date must be shown on the policy and must be before the date of this Contract or the beginning of the work or services that are the subject of this Contract; G b. Insurance must be maintained and evidence of insurance must be provided for the duration of this Contract or for five (5) years after completion of the work or services that are the subject of this Contract, whichever is greater; c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the effective date of this Contract, then the Operating Agency must purchase an extended period coverage for a minimum of five (5) years after completion of work or services that are the subject of this Contract; d. A copy of the claims reporting requirements must be submitted to the LACDA for review; and e. If the work or services that are the subject of this Contract involve lead based paint or asbestos identification/remediation, then the Operating Agency's pollution liability shall not contain any lead-based paint or asbestos exclusions; f. If the services involve mold identification/remediation, the Operating Agency's pollution liability shall not contain a mold exclusion and definition of "pollution" shall include microbial matter including mold. F 24 1.2 Additional Unique Coverage 1.2.1 Sexual Misconduct Liability Coverage is required when services in relation to this Contract involve care or supervision of children, seniors and other vulnerable persons and insurance shall include covering for actual or alleged claims for sexual misconduct and/or molestation with limits of not less than $2 million per claim and $2 million aggregate, and claims for negligent employment, investigation, supervision, training or retention of, or failure to report to proper authorities, a person(s) who committed any act of abuse, molestation, harassment, mistreatment or maltreatment of a sexual nature. 1.2.2 Professional Liability/Errors and Omissions Insurance covering the Operating Agency's liability arising from or related to this Contract, with limits of not less than $2 million per claim and $2 million aggregate. Further, the Operating Agency understands and agrees it shall maintain such coverage for a period of not less than three (3) years following this Contract's expiration, termination or cancellation. 1.2.3 Crime Coverage Including, but not limited to, coverage against loss of money, employee theft/forgery, securities, inventory or other property, with limits in amounts not less than indicated. If the aggregate budgeted amount for the current fiscal year allotted for the Operating Agency is less than Fifty Thousand dollars ($50,000), the Operating Agency shall not be required to comply with this Section 1.2.3. If the aggregate budgeted amount for the current fiscal year allotted for the Operating Agency is equal to or greater than Fifty Thousand dollars ($50,000), then the Operating Agency shall be required to comply with this Section 1.2.3. A. The Operating Agency shall procure and maintain, at its sole cost and expense, crime coverage or a fidelity bond covering each employee of the Operating Agency, whether or not they are compensated. B. The fidelity bond may be either a primary commercial blanket bond or a blanket position bond written by an insurer licensed by the California Insurance Commissioner. 25 C. The fidelity bond shall provide minimum coverage equivalent to 50% of the cumulative project budget approved for the current fiscal year, not to exceed One Million dollars ($1,000,000). The project budget shall be outlined in EXHIBIT “A”. D. The Operating Agency shall maintain the fidelity bond for the duration of this Contract. The fidelity bond may contain a provision for a deductible amount from any loss which, except for such deductible provision, would be recoverable from the insurer. A deductible provision shall not be in excess of ten percent (10%) of the required minimum bond coverage. If the Operating Agency experiences an increase in funding during the fiscal year, the crime coverage requirement will be reassessed, and additional coverage may be required at the sole discretion of the LACDA. Any deviation from this fidelity bond section shall require specific written approval by the LACDA. 1.3 Certificate of Insurance Coverage: 1.3.1. Certificate(s) of Insurance Coverage ("Certificate") satisfactory to the LACDA, and a copy of an Additional Insured Endorsement confirming the LACDA and the County has been given Insured status under the Operating Agency's general liability and excess liability policy, shall be delivered to the LACDA at the address shown below and provided prior to commencing services under this Contract. 1.3.2. Renewal Certificates shall be provided to the LACDA not less than ten (10) days prior to Operating Agency's policy expiration dates. The LACDA reserves the right to obtain complete, certified copies of any required Operating Agency and/or Sub-Contractor insurance policies at any time. 1.3.3. Certificates shall identify all Required Insurance coverage types and limits specified herein, reference this Contract by name or number, and be signed by an authorized representative of the insurer(s). The insured party named on the certificate shall match the name of the Operating Agency identified as the contracting party in this Contract. All certificates of insurance and endorsements shall carry the following identifier: 26 PLH180-26 - Year 5 Activity 6 Homeless Case Management and Housing Navigation Services 1.3.4. Certificates shall provide the full name of each insurer providing coverage, its National Association of Insurance Commissioners ("NAIC") identification number, its financial rating, the amounts of any policy deductibles or self- insured retentions exceeding Fifty Thousand ($50,000.00) dollars and list any LACDA required endorsement forms. 1.3.5. Neither the LACDA's failure to obtain, nor the LACDA's receipt of, or failure to object to a non-complying certificate or endorsement, or any other insurance documentation or information provided by the Operating Agency or, its insurance broker(s) and/or insurer(s), shall be construed as a waiver of any of the Required Insurance provisions. 1.3.6. Certificates and copies of any required endorsements shall be sent to: Los Angeles County Development Authority Attn: Community Development Division 700 W. Main Street, Alhambra, CA 91801 1.4 Notices of Injury or Damage or Destruction The Operating Agency also shall promptly report to the LACDA any injury or property damage accident or incident, including any injury to an Operating Agency employee occurring on an LACDA property, and any loss, disappearance, destruction, misuse, or theft of the LACDA property, monies or securities entrusted to the Operating Agency. The Operating Agency also shall promptly notify the LACDA of any third-party claim or suit filed against the Operating Agency or any of its Sub- contractors which arises from or relates to this Contract and could result in the filing of a claim or lawsuit against the Operating Agency and/or the LACDA. 1.5 Additional Insured Status and Scope of Coverage The LACDA and the County shall be provided additional insured status under the Operating Agency's general liability and excess liability policy with respect to liability arising out of the Operating Agency's products, completed and ongoing operations performed on behalf of the LACDA. The LACDA and the County additional insured status shall apply with respect to liability and defense of suits arising out of the Operating Agency's acts or omissions, whether such liability is attributable to the Operating Agency or to the LACDA. The full policy limits and scope of protection also shall apply to the LACDA and the County as an additional insured, even if they exceed the LACDA's minimum Required Insurance specifications herein. Use of an 27 automatic additional insured endorsement form is acceptable provided it satisfies the Required Insurance provisions herein. 1.6 Cancellation of or Change to Maintain Insurance The Operating Agency shall provide the LACDA with, or the Operating Agency's insurance policies shall contain a provision that the LACDA shall receive, written notice of cancellation or any change in Required Insurance, including insurer, limits of coverage, term of coverage or policy period. The written notice shall be provided to the LACDA at least ten (10) days in advance of cancellation for non-payment of premium and thirty (30) days in advance for any other cancellation or policy change. Failure to provide written notice of cancellation or any change in Required Insurance may constitute a material breach of the Contract, in the sole discretion of the LACDA, upon which the LACDA may suspend or terminate this Contract. 1.7 Failure to Maintain Insurance The Operating Agency's failure to maintain or to provide acceptable evidence that it maintains the Required Insurance shall constitute a material breach of the Contract, upon which the LACDA immediately may withhold payments due to Operating Agency, and/or suspend or terminate this Contract. The LACDA, at its sole discretion, may obtain damages from the Operating Agency resulting from said breach. Alternatively, the LACDA may purchase the Required Insurance, and without further notice to the Operating Agency, deduct the premium cost from sums due to the Operating Agency or pursue the Operating Agency's reimbursement. 1.8 Operating Agency's Insurance Shall Be Primary The Operating Agency's general liability, excess liability, pollution liability and/or asbestos pollution liability and auto liability insurance policies, with respect to any claims related to this Contract, shall be primary with respect to all other sources of coverage available to the Operating Agency. Any LACDA maintained insurance or self-insurance coverage shall be in excess of and not contribute to any Operating Agency coverage. 1.9 Insurance Specifics 1.9.1. Waivers of Subrogation To the fullest extent permitted by law, the Operating Agency hereby waives its rights and its insurer(s)' rights of recovery against the LACDA under all the Required Insurance for any loss arising from or relating to this Contract. The Operating Agency shall require its insurers to execute any 28 waiver of subrogation endorsements which may be necessary to effect such waiver. 1.9.2. Sub-Contractor Insurance Coverage Requirements The Operating Agency shall be responsible for verifying that each Contractor/Sub-Contractor complies with the Required Insurance provisions. 1.9.3. Deductibles and Self-Insured Retentions (SIRs) The Operating Agency's policies shall not obligate the LACDA to pay any portion of any Operating Agency deductible or SIR. The LACDA retains the right to require the Operating Agency to reduce or eliminate policy deductibles and SIRs related to the LACDA, or to provide a bond guaranteeing the Operating Agency's payment of all deductibles and SIRs, including all related, claims investigation, administration, and defense expenses. Such bond shall be executed by a corporate surety licensed to transact business in the State of California. 1.9.4. Claims Made Coverage If any part of the Required Insurance is written on a claims made basis, any policy retroactive date shall precede the effective date of this Contract. The Operating Agency understands and agrees it shall maintain such coverage for a period of not less than three (3) years following Contract expiration, termination or cancellation. 1.9.5. Application of Excess Liability Coverage The Operating Agency may use a combination of primary, and excess insurance policies which provide coverage as broad as ("follow form" over) the underlying primary policies, to satisfy the Required Insurance provisions. 1.9.6. Separation of Insureds All liability policies shall provide cross-liability coverage as would be afforded by the standard ISO (Insurance Services Office, Inc.) separation of insureds provision with no insured versus insured exclusions or limitations. 1.9.7. Alternative Risk Financing Programs The LACDA reserves the right to review, and then approve, the Operating Agency use of self-insurance, risk retention groups, risk purchasing groups, 29 pooling arrangements and captive insurance to satisfy the Required Insurance provisions. The LACDA shall be designated as an additional covered party under any approved alternative risk financing program. 1.10 LACDA Review and Approval of Insurance Requirements The LACDA reserves the right to review and adjust the Required Insurance provisions, conditioned upon the LACDA's determination of changes in risk exposures.