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HomeMy WebLinkAboutAtascadero Paddleboat Concession Services CITY OF ATASCADERO i9Ra _: d CONTRACT FOR Atascadero Paddleboat for ATASCADERO LAKE PADDLEBOAT CONCESSION SERVICES YAb� r . �a7o CONTRACTOR SERVICES AGREEMENT FOR THE CITY OF ATASCADERO AND ATASCADERO PADDLEBOAT THIS CONTRACT is made and entered into between City of Atascadero, a Municipal Corporation ("City"), and Atascadero Paddleboat ("Contractor"). City and Contractor agree as follows: 1. SCOPE AND STANDARDS: A. CONTRACT. Contractor shall do all work, attend all meetings, produce all reports and carry out all activities necessary to complete the services described in the SCOPE OF WORK AND STANDARDS FOR SERVICES, attached hereto and incorporated herein by this reference as Exhibit A, as requested by the City. This Contract and its exhibits shall be known as the "Contract Documents." Terms set forth in any Contract Document shall be deemed to be incorporated in all Contract Documents as if set forth in full therein. 2. EMPLOYMENT STATUS OF PERSONNEL: A. INDEPENDENT CONTRACTOR; EMPLOYEES OF CONTRACTOR. Contractor enters into this Contract as, and shall at all times remain as to the City, an independent contractor and not as an employee of the City. Nothing in this Contract shall be construed to be inconsistent with this relationship or status. Any persons employed by Contractor for the performance of services pursuant to this Contract shall remain employees of Contractor, shall at all times be under the direction and control of Contractor, and shall not be considered employees of City. All persons employed by Contractor to perform services pursuant to this Contract shall be entitled solely to the right and privileges afforded to Contractor employees and shall not be entitled, as a result of providing services hereunder, to any additional rights or privileges that may be afforded to City employees. 1 City of Atascadero - ATASCADERO LAKE PADDLEBOAT CONCESSIONS ' B. INDEPENDENT INVESTIGATION. The Contractor agrees and hereby represents it has satisfied itself by its own investigation and research regarding the conditions affecting the work to be done and labor and materials needed, and that its decision to execute this Contract is based on such independent investigation and research. C. COMPLIANCE WITH EMPLOYMENT LAWS. The Contractor shall keep itself fully informed of, shall observe and comply with, and shall cause any and all persons, firms or corporations employed by it or under its control to observe and comply with, applicable federal, state, county and municipal laws, ordinances, regulations, orders and decrees which in any manner affect those engaged or employed on the work described by this Contract or the materials used or which in any way affect the conduct of the work. D. UNLAWFUL DISCRIMINATION PROHIBITED. Contractor shall not engage in unlawful employment discrimination. Such unlawful employment discrimination includes, but is not limited to, employment discrimination based upon a person's race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship or sexual orientation. 3. TIME OF PERFORMANCE: The services of Contractor are to commence upon May 26, 2016. Except as provided in Sections 6 and 19 below, this Contract shall terminate no later than May 25, 2019 with the option of two (2) one-year extensions upon mutual agreement of both parties. 4. COMPENSATION: Compensation from the Contractor shall be as set forth in Exhibit B attached hereto and made a part hereof. 5. TERMINATION: A.30 DAYS NOTICE. The City, upon thirty (30) days written notice, may terminate this Contract, without cause, at any time. In the event of such termination, the City shall be compensated for non-disputed fees under the terms of this Contract up to the date of termination. B. OBLIGATIONS SURVIVE TERMINATION. Notwithstanding any termination of this Contract, Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of this Contract by Contractor, and the City may withhold any payments due to Contractor until such time as the exact amount of damages, if any, due the City from Contractor is determined. All of the indemnification, defense and hold harmless obligations in this Contract shall survive termination. The obligations of the Surety on the Faithful Performance Bond shall survive the termination of this Contract. �e City of Atascadero fir ATASCADERO LAKE PADDLEBOAT CONCESSIONS ` 6. CHANGES: The City or Contractor may, from time to time, request changes in the scope of the services of Contractor to be performed hereunder. Such changes, including any increase or decrease in the amount of Contractor's obligation and/or changes in the schedule must be authorized in advance by both Parties in writing. Mutually agreed changes shall be incorporated in written amendments to this Contract. Any increase in the amount of Contractor's obligation and/or changes in Exhibit A and or Exhibit B must be authorized in advance by the City Manager or designee. 7. CONFLICTS OF INTEREST: A. CONTRACTOR covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor's performance of services under this Contract. Contractor further covenants that in the performance of this Contract, Contractor shall take reasonable care to ensure that no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Contract. Contractor agrees to include language similar to Section 9(A) in all contracts with subcontractors and agents for the work contemplated herein. S. CONFIDENTIAL INFORMATION: A.ALL INFORMATION KEPT IN CONFIDENCE. All materials prepared or assembled by Contractor pursuant to performance of this Contract are confidential and Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City, except by court order. B. REIMBURSEMENT FOR UNAUTHORIZED RELEASE. If Contractor or any of its officers, employees, or subcontractors does voluntarily provide information in violation of this Contract, the City has the right to reimbursement and indemnity from party releasing such information for any damages caused by the releasing party's, including the non-releasing party's attorney's fees and disbursements, including without limitation expert's fees and disbursements. C. COOPERATION. City and Contractor shall promptly notify the other party should Contractor or City, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Contract and the work performed thereunder or with respect to any project or property located within the City. City and Contractor each retains the right, but has no obligation, to represent the other party and/or be present at any deposition, hearing or similar proceeding. Contractor and City agree to cooperate fully with the other party and to provide the 3 City of Atascadero ATASCADERO LAKE PADDLEBOAT CONCESSIONS ` other party with the opportunity to review any response to discovery requests provided by Contractor or City. However, City and Contractor's right to review any such response does not imply or mean the right by the other party to control, direct, or rewrite said response. 9. PROVISION OF LABOR, EQUIPMENT AND SUPPLIES: A. CONTRACTOR PROPERTY. Contractor shall furnish all necessary labor, supervision, equipment, communications facilities, and supplies necessary to perform the services required by this Contract except as set forth in Exhibit C. City acknowledges that all equipment and other tangible assets used by Contractor in providing these services are the property of Contractor and shall remain the property of Contractor upon termination of this Contract. B. SPECIAL SUPPLIES. City shall be responsible for supplying any special supplies, stationary, notices, forms or similar items that it requires to be issued with a City logo. All such items shall be approved by the City Manager and shall be provided at City's sole cost and expense. 10. COMPLIANCE WITH LAW: COMPLIANCE REQUIRED. Contractor shall keep itself informed of applicable local, state, and federal laws and regulations which may affect those employed by it or in any way affect the performance of its services pursuant to this Contract. Contractor shall observe and comply with all applicable laws, ordinances, regulations and codes of federal, state and local governments, and shall commit no trespass on any public or private property in performing any of the work authorized by this Contract. Contractor shall at all times hold a valid contractor's license if performing any function or activity for which a license is required pursuant to Chapter 9 (commencing with section 7000) of Division 3 of the California Business and Professions Code, and Contractor shall provide a copy of the license(s) upon the request of the City. The City, its officials, officers, elected officials, appointed officials and employees shall not be liable at law or in equity as a result of any failure of contractor to comply with this section. 4 City of Atascadero ATASCADERO LAKE PADDLEBOAT CONCESSIONS 11. SUBCONTRACTING/ SUBLEASING: None of the services covered by this Contract shall be subcontracted without the prior written consent of the City Manager. Contractor shall be as fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors, and of persons either directly or indirectly employed by them, as it is for the negligent acts and omissions of persons directly employed by Contractor. Contractor shall not sublease or otherwise convey any interest of any sort granted by this Agreement to any person or persons whatsoever without prior written consent and approval by the City. 12. ASSIGNABILITY: Contractor shall not assign or transfer any interest in this Contract whether by assignment or notation. However, claims for money due or to become due Contractor from the City under this Contract may be assigned to a financial institution, but only with prior written consent of the City Manager. Notice of any assignment or transfer whether voluntary or involuntary shall be furnished promptly to the City. The rights and benefits under this agreement are for the sole and exclusive benefit of the City and this Contract shall not be construed that any third party has an interest in the Contract. 13. LIABILITY OF CONTRACTOR: Contractor shall be responsible for performing the work under this Contract in a manner which is consistent with the generally accepted standards of Contractor's profession and shall be liable for its own negligence and the negligent acts of its employees, agents, contractors and subcontractors. The City shall have no right of control over the manner in which the work is to be done but only as to its outcome, and shall not be charged with the responsibility of preventing risk to Contractor or its employees, agents, contractors or subcontractors. 14. INDEMNIFICATION: A. INDEMNIFICATION FOR PROFESSIONAL LIABILITY. When the law establishes a professional standard of care for Contractor's Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligence, or wrongful act, error or omission of Contractor, willful misconduct, or recklessness of its officers, agents, employees or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this agreement. 5 City � aY?_ Ci of Atascadera ATASCADERO LAKE PADDLEBOAT CONCESSIONS B. INDEMNIFICATION FOR OTHER THAN PROFESSIONAL LIABILITY. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. C. GENERAL INDEMNIFICATION PROVISIONS. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section for each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this agreement. In the event contractor fails to obtain such indemnity obligations from others as required here, Contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successor, assigns or heirs of Contractor and shall survive the termination of this agreement or this section. 15. INSURANCE: Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit E attached to and part of this agreement. 16. RECORDS: Contractor shall keep true and accurate books and records showing all of its business transactions in separate records of account for the paddleboat operation, in accordance with generally accepted accounting principles. The records shall be clearly identified and readily accessible and in a form acceptable to the City, which the City may specify and change from time to time. The City shall have the right, through its representatives, and at all reasonable times, to inspect such books and records, including State of California sales tax records. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. The City may require Contractor, at its expense, to have its records and accounts audited by an auditor acceptable to the City and shall present said audit to the Director of Administrative Services within 30 days after the completion of the audit. If Contractor fails to provide the required audit, the City shall contract to have an audit performed at Contractor's expense. 6 City of Atascadero ATASCADERO LAKE PADDLEBOAT CONCESSIONS 17. MISCELLANEOUS PROVISIONS: A.ASSIGNMENT OR SUBSTITUTION. City has a NONDISCRIMINATION / NONPREFERENTIAL TREATMENT STATEMENT In performing this Contract, the parties shall not discriminate or grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, and shall comply to the fullest extent allowed by law, with all applicable local, state, and federal laws relating to nondiscrimination. B. UNAUTHORIZED ALIENS. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. & 1101 et seq.), as amended; and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this contract, and should the Federal Government impose sanctions against the City for such use of unauthorized aliens, Contractor hereby agrees to, and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs, including attorneys' fees, incurred by the City in connection therewith. C. GOVERNING LAW, The City and Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Contract and also govern the interpretation of this Contract. Any litigation concerning this Contract shall take place in the San Luis Obispo Superior Court, federal diversity jurisdiction being expressly waived. D.City has an interest in the qualifications of and capability of the persons and entities that will fulfill the duties and obligations imposed upon Contractor by this Contract. In recognition of that interest, neither any complete nor partial assignment of this Contract, may be made by Contractor nor changed, substituted for, deleted, or added to without the prior written consent of City which consent shall not be unreasonably withheld. Any attempted assignment or substitution shall be ineffective, null, and void, and constitute a material breach of this Contract entitling City to any and all remedies at law or in equity, including summary termination of this Contract. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Contract. E. ENTIRE CONTRACT. This Contract constitutes the entire Contract and understanding between the parties relative to the services specified herein and there are no understandings, agreements, conditions, representations, warranties or promises, with respect to this Contract, except those contained in or referred to in this Contract and this Contract supersedes all prior understandings, agreements, courses of conduct, prior dealings among the parties and documentation of any kind without limitation. 7 City of Atascadero ATASCADERO LAKE PADDLEBOAT CONCESSIONS F. AMENDMENTS. This Contract may be modified or amended, or any of its provisions waived, only by a subsequent written agreement executed by each of the parties. The parties agree that this requirement for written modifications cannot be waived and any attempted waiver shall be void. G. CONSTRUCTION AND INTERPRETATION. Contractor and City agree and acknowledge that the provisions of this Contract have been arrived at through negotiation and that each party has had a full and fair opportunity to revise the provisions of this Contract and to have such provisions reviewed by legal counsel. Therefore, any ambiguities in construing or interpreting this Contract shall not be resolved against the drafting party. The titles of the various sections are merely informational and shall not be construed as a substantive portion of this Contract. H.WAIVER. The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Contract shall not be deemed a wavier with respect to any subsequent default or other matter. I. SEVERABILITY. The invalidity, illegality or unenforceability, of any provision of this Contract shall not render the other provisions invalid, illegal or unenforceable. J. NOTICES. All invoices, payments, notices, demands, requests, comments, or approvals that are required to be given by one party to the other under this Contract shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail addressed to the parties (deemed to have been received three (3) business days after deposit in the U.S. Mail) at the following addresses: City: City of Atascadero 6500 Palma Avenue Atascadero, CA 93422 Contractor Atascadero Paddleboat Robert Andrus 8025 Santa Rosa Road Atascadero, CA 93422 (801) 404-3744 Each party may change the address at which it gives notice by giving ten (10) days advance, written notice to the other party. K. AUTHORITY TO EXECUTE. The person or persons executing this Contract on behalf of Contractor warrant and represent that they have the authority to execute this Contract on behalf of their Company and further warrant and represent that they have the authority to bind Contractor to the performance of its obligations hereunder. 8 'IA' Sr City of Atascadero ATASCADERO LAKE PADDLEBOAT CONCESSIONS ti Effective this ;21�-)' day of May, 2016 by the parties as follows, Approved as to form: CONTRACTOR By: z Counsel for Contractor obert Andrus, Owner Approved as to form: CITY OF ATASCADERO By: QJ . Brian A. Pierik, City Attorney Rachelle kldkard, City Manager 9 CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700 1 am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers` compensation or to undertake self-insurance in accordance with the provisions of that code, and I have complied or will comply with such provisions before commencing the performance of the work of this contract. (Cal. Labor C. §§1860, 1861.) CONTRACTOR r'kabert Andrus, Owner 10 EXHIBIT A Scope of Work 1. Contractor shall provide concession and rental management services to the City as follows: The Contractor shall utilize said premises for the purpose of renting paddle boats, kayaks and other mutually agreed upon recreational equipment. The Contractor shall operate the facility in a business-like manner to the satisfaction of the Deputy City Manager, and maintain said areas in conformance with the highest standards of health and safety for patrons of said operation. 2. The Contractor will be responsible for obtaining any and all necessary approvals, permits and licenses for any construction and lawful operation of this concession. Contractor will provide City, prior to commencement of operation of concession, a copy of a City Business License and Board of Equalization Certificate. 3. The Contractor will supply all equipment necessary for the operation of this concession and keep all equipment in good repair and safe operating condition. The City suggests a minimum of 8 paddle boats be made available for rent. However, the Contractor can also have available for rent kayaks, canoes and other forms of water recreation. The Contractor shall also maintain enough paddles, oars and US Coast Guard approved Type 111 or better Personal Flotation Devices (PDFs) for the use for each user renting the equipment. Devices that promote bodily contact with the lake water are not allowed. Windsurfing, paddle boarding and motors are not allowed on the lake. Contractor will provide the following rental items: 12 paddleboats (8 for operation and 4 as reserves/repair) o (4) 4-person paddleboat $15 per '/ hour o (4) 2-person paddleboat $10 per '/z hour 9 kayaks $10 per Y2 hour 4. Hours of operation to be established by Contractor upon mutual agreement with the Deputy City Manager (or designee). Recommended Daily Core Hours of Operation: April through September (sunlight, weather and lake condition dependent): 11 am — 7pm. Hours can be expanded to '/z hour after sunrise and hour before sunset. Contractor's Anticipated Hours of Operation: Tuesday, Thursday, Friday 3:OOpm - 8:00pm Saturday & Sunday 11:00am — 8:OOpm (or dusk if earlier) Hours may be flexible, generally dependent on good weather during daylight hours. A-1 EXHIBIT A Scope of Work (continued) 5. Contractor may construct or modify the said premises with prior written approval by the Deputy City Manager (or designee). Any plans for such construction, if applicable, shall be submitted to the City for approval. Such construction or modification shall be without cost to the City. Any fixed equipment becomes the property of the City upon installation, upon the City's option. Should the City choose not to exercise this option, it will be the responsibility of the Contractor to remove said fixed equipment and return the licensed premises to the City in a condition as good as or better than that at the commencement of the license term. Contractor waives the provisions of Section 1941 and 1942 of the California Civil Code with respect to Contractor's right to make repairs and to deduct the expenses thereof from monthly rent payment payable by the Contractor. 6. All signs, names or placards shall be approved by the Deputy City Manager (or designee) prior to installation. All signs must meet the requirements and specifications as set forth by the City. 7. The Contractor will be responsible for securing all equipment every evening. Storage will be permitted at the site year-round and on the launch pad during the summer season in an area approved by the Deputy City Manager (or designee). 8. Contractor may provide telephone and security alarm services to concession at the Contractor's expense, if they so choose. 9. The City reserves the right to prohibit the sale of any item which it deems objectionable or beyond the scope of merchandise deemed necessary for proper service to the public. The selling or advertisement of alcohol, cigarettes, cigars, or any other tobacco products is strictly prohibited. It is the Contractor's responsibility to adhere to and enforce this policy. 10.Contractor shall post rates and prices of all items in such places as designated by the City. All prices, fees and increases for any and all proposed services offered at the concession must be approved by the Deputy City Manager. 11.The Contractor will submit monthly reports of gross receipts. At the end of each operating year, the Contractor will submit a detailed income and expense statement for the past year's operation. 12.The Contractor will comply with all City, State and Federal laws relating to access for persons with disabilities. A-2 EXHIBIT A Scope of Work (continued) 13.The Contractor will remove all rubbish generated by this concession. The Contractor will be responsible for cleaning the licensed premises and the area within 50 feet of the licensed premises. The Contractor will provide garbage cans and all garbage cans associated with the concession facility operation will be emptied into a designated park dumpster location on a daily basis. In addition, the Contractor will keep all signs and structures free of graffiti. The Contractor will comply with all City, State and Federal regulations regarding recycling. 14.The Contractor will cooperate with the City during special events and unanticipated eventualities. 15.The Contractor will pay all taxes applicable to the operation of the concession, including possessory interest in publically owned property. No such applicable taxes may be deducted from gross receipts. 16.City inspectors may visit the concession site unannounced to inspect operations and determine whether or not the Contractor is complying with the terms of the agreement. If these inspectors find violations, the Contractor may be assessed a fine for each violation. The Contractor must also comply with all directives originating from inspections by any other City, State or Federal agency having jurisdiction over the operation of this concession. A-3 EXHIBIT B Compensation and Method of Payment Contractor will pay the City Annually: CONTRACT YEAR: ANNUAL FLAT FEE: PERCENTAGE OF GROSS RECEIPTS: 2016 - 2017 $2,500.00 9% 2017 - 2018 $2,500.00 9% 2018 - 2019 $2,500.00 9% Payment to the City of Atascadero of the monthly flat fee of $208.33 (monthly fiat fee of $208.37 for the last month of each contract year) and the percentage of gross earnings received shall be received by the tenth (10th) day of each month. Payments are required to be submitted to the City of Atascadero in accordance with Section J of this agreement. Payments received from the eleventh (11th) of each month to the twenty-fifth (25th) of each month shall be considered delinquent and assessed a ten-percent (10%) penalty. Payments received after the twenty-fifth (25t) of each month shall be assessed an additional ten-percent (10%) penalty. Failure by the Contractor to tender payment to the City within thirty (30) days of any payment so due shall be sufficient cause for the City to terminate this agreement. B-1 EXHIBIT C Items Provided by City The City agrees to comply with all reasonable requests of Contractor necessary to the performance of Contractor's duties under this agreement. City agrees to furnish use of the floating docks located in Atascadero Lake Park for use by the Contractor while performing the services described within this agreement. In addition, the Contractor shall have the right to use a fenced cemented area directly in front of the floating dock area. C-1 EXHIBIT D Location Schedule The premise of operation is the dock area adjacent to Atascadero Lake at Atascadero Lake Park, 9315 Pismo Avenue, Atascadero, California. D-I EXHIBIT E Insurance Requirements INSURANCE REQUIREMENTS FOR CONTRACTORS Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to properly which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office Form Number CA 0001 covering Automobile Liability, code 1 (any auto) 3. Workers' Compensation insurance as required by the State of California and Employer's Liability insurance (for lessees with employees). Minimum Limits of Insurance Lessee 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 a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability 51,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. E-1 EXHIBIT E Insurance Requirements (continued) Other Insurance Provisions The general liability and automobile policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed on behalf of the contractor; and with respect toliability arising out of work or operations perfonned by on on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance or as a separate owner's policy (CG 20 10 11 85) 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 4. Coverage shall not extend to any indeminity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision(b) of Section 2782 of the Civil Code. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Additional Insured The City of Atascadero will to be added to the policy as Additional Insured by endorsement, adding the City's name to the Certificate of Insurance is not sufficient and will not be accepted. Ver(cation of Coverage Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to 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, including endorsements effecting the coverage required by these specifications at any time. Subcontractors Contractor shall include all subcontractors as insured trader its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. E-2