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18-173 A1 Fence, Faria School Access Gate
CITY O F II PUBLIC WORKS CONTRACT $45,000 OR LESS CUPERTINO 1. PARTIES This public works contract ("Contract") is made and entered into on August 27, 2018 ("Effective Date") by and between the City of Cupertino, a municipal corporation ("City"), and A-lFence Inc. , a Corporation ("Contractor") for Faria School Access Gate Expansion 2. SCOPE OF WORK Contractor will perform and provide all labor, materials, equipment, supplies, transportation and any other items or work necessary to perform and complete the work required for the Project ("Work"), as required in the Scope of Work, attached here and incorporated as Exhibit A, and in accordance with the terms and conditions of this Contract. 3. TIME FOR COMPLETION 3.1 Term. This Contract begins on the Effective Date and ends on February 27, 2019 ("Contract Time") unless terminated earlier as provided herein. Contractor's Work shall begin on the date shown on a written Notice to Proceed ("NTP") and must be fully completed within the Contract Time or on the date specifically provided in the Notice to Proceed. The City Engineer will not issue a NIP until the Contract is fully executed by both parties and City has received satisfactory proof of insurance and any performance and payment bonds that may be required. 3.2 Time is of the essence for Contractor's performance and completion of the Work. Contractor must have sufficient time, resources, and qualified staff to deliver the work on time. 3.3 Liquidated damages of $200.00 will be charged for each day of unexcused delay, or City may deduct the amount from Contractor's payments. Liquidated damages are based on reasonably foreseeable consequences of delay and may include intangible losses which the Parties agree may be difficult to ascertain, such as loss of public confidence in City and its contractors, interference or loss of use of public facilities, and extended disruption to the public. 4. COMPENSATION 4.1 Maximum Compensation. City will pay Contractor for satisfactory performance of the Work an amount that will based on actual costs but that will be capped so as not to exceed $3,750.00 ("Contract Price"), for all of Contractor's direct and indirect costs, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs. 4.2 Invoices and Payments. Contractor must submit an invoice on the first day of each month, describing the Work performed during the preceding month, itemizing labor, materials, equipment and Public Works Project Faria School Access Gate Expansion Public Works Contract $45,000/Rev. May 22, 2078 Page 1 of 11 8. PUBLICITY/ SIGNS Any publicity generated by Contractor for the Project during the Contract Time, and for one year thereafter must credit City contributions to the Project. The words "City of Cupertino" must be displayed in all pieces of publicity, flyers, press releases , posters, brochures, interviews, public service announcements and newspaper articles. No signs may be posted or displayed on or about City property, except signage required by law or this Contract, without prior written approval from the City. 9. SUBCONTRACTORS 9.1 Contractor must perform all the Work with its own forces, except that Contractor may hire qualified subcontractors to perform up to 50 % of the Work, provided that each subcontractor is required by contract to be bound by the provisions of this Contract. Contractor must provide City with written proof of compliance with this provision upon request. 9.2 City may reject any subcontractor of any tier and bar a subcontractor from performing Work on the Project, if City in its sole discretion determines that subcontractor's Work falls sh011 of the requirements of this Contract or constitutes grounds for rejection under Public Contract Code Section 4107. If City rejects a subcontractor, Contractor at its own expense must perform the subcontractor's Work or hi.re a new subcontractor that is acceptable to City. A Notice of Completion must be recorded within 15 days after City accepts the Work if the Contract involves work by subcontractors. 10. RECORDS AND DAILY REPORTS 10.1 Contractor must maintain daily rep011s of the Work and submit them to City upon request and at completion of Project. The reports must describe the Work and specific tasks performed, the number of workers, the hours, the equipment, the weather conditions, and any circumstances affecting performance. City will have ownership of the reports, but Contractor will be permitted to retain copies. 10.2 If applicable, Contractor must keep a separate set of as-built drawings showing changes and updates to the Scope of Work or the original drawings as changes occur. Actual locations to scale must be identified for all major components of the Work, including mechanical, electrical and plumbing work; HV AC systems; utilities and utility connections; and any other components City determines should be included in the final drawings of the Project. Deviations from the original drawings must be shown in detail, and the location of all main mns, piping, conduit, ductwork, and drain lines must be shown by dimension and elevation. 10.3 Contractor must maintain complete and accurate accounting records of its Work, in accordance with generally accepted accounting principles, which must be available for City review and audit, kept separate from other records, and maintained for four years from the date of City's final payment. Public Works Project Faria School Access Gate Expansion Public Works Contract $45 ,000 !Rev. May 22, 2018 Page 3 of 11 11. INDEMNIFICATION 11.1 To the fullest extent allowed by law, and except for losses caused by the sole and active negligence or willful misconduct of City personnel, Contractor shall indemnify, defend, and hold harmless City, its City Council, boards and commissions, officers, officials, employees, agents, servants, volunteers and consultants ("Indemnitees"), through legal counsel acceptable to City, from and against any and all liability , damages, claims, stop notices, actions, causes of action, demands, charges, losses and expenses (including attorney fees, legal costs and expenses related to litigation and dispute resolution proceedings), of every nature arising directly or indirectly from this Contract or in any manner relating to any of the following: (a) Breach of contract, obligations, representations or warranties; (b) Performance or nonperf01mance of the Work or of any obligations under the Contract by Contractor, its employees, agents, servants, subcontractors or subcontractors; ( c) Payment or nonpayment by Contractor or its subcontractors or sub-subcontractors for Work performed on or off the Project Site; and (d) Personal injury, property damage, or economic loss resulting from the work or performance of Contractor or its subcontractors or sub-subcontractors. · 11.2 Contractor must pay the costs City incurs in enforcing this provision. Contractor must accept a tender of defense upon receiving notice from City of a third-pmty claim, in accordance with California Public Contract Code Section 9201. At City's request, Contractor will assist City in the defense of a claim, dispute or lawsuit arising out of this Contract. 11.3 Contractor's duties under this entire Section are not limited to Contract Price, Workers' Compensation or other employee benefits, or the insurance and bond coverage required in this Contract. Nothing in the Contract shall be constmed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 11.4 Contractor's payments may be deducted or offset to cover any money the City lost due to a claim or counterclaim arising out of this Contract, a purchase order or other transaction. 12. INSURANCE Contractor shall comply with the Insurance Requirements, attached and incorporated here as Exhibit B. Contractor must provide satisfactory proof of insurance and maintain it for the Contract Time or longer as required by City. City will not execute the Contract until City has approved receipt of satisfactory ce1tificates of insurance and endorsements evidencing the type, amount, class of operations covered, and the effective and expiration dates of coverage. Failure to comply with this provision may result in City, at its sole discretion and without notice, purchasing insurance at Contractor's expense, deducting the costs from Contractor's compensation, or terminating the Contract. Public Works Project Faria School Access Gate Expansion Public Works Contract $45,000 /Re v. May 22, 2018 Page 4 of 11 13. COMPLIANCE WITH LAWS 13.1 General Laws. Contractor shall comply with all laws and regulations applicable to this Contract. Contractor will promptly notify City of changes in the law or other conditions that may affect the Project or Contractor 's ability to perfo1m . Contractor is responsible for verifying the employment status of employees perfonning the Work, as required by the Immigration Reform and Control Act 13.2 Labor Laws. (a) Contracts of $1 ,000 or more are subject to the requirements of the California Labor Code, including but not lilnited to: (i) Prevailing wage laws under Labor Code Section 1775 , which require Contractor to pay prevailing wages applicable in Santa Clara County for each craft, classification, or type of worker needed to perf01m the Work, including health, pension and vacation. The prevailing wage rates are on file with the City Engineer's office and are available online at http ://www .dir.c a.gov/DLSR; (ii) Apprenticeship requirements under Labor Code Section 1777 .5 for Contacts $30 ,000 or more ; (iii) Maintain certified payroll records in accordance with Labor Code Sections 1776 and 1812, and electronically submit them to the Labor Commissioner as required by the regulations of California, Department of Industrial Relations ("DIR"); (iv) Comply with DIR Monitoring, Enforcement and Registration requirements of Labor Code Section 1725 .5. (b) Contractor must compensate workers who are paid less than prevailing wages or required to work more than a legal day's work. Contractor will also be required to pay City a penalty of $ 200.00 per worker for each day of violation. (c) As required by Labor Code Section 1861 , by signing this Contract Contractor certifies as follows : "I am aware of Labor Code Section 3700 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 I will comply with such provisions before commencing the Work on this Contract." 13.3 Discrimination Laws . Contractor shall not discriminate on the basis of race, religious creed, color, ancestry, national origin, ethnicity, handicap, disability, marital status , pregnancy, age, sex, gender, sexual orientation, gender identity, Acquired-Immune Deficiency Syndrome (AIDS) or any other protected classification. Contractor shall comply with all anti-discrimination laws , including Government Code Sections 12900 and 11135 , and Labor Code Sections 1735 , 1777 and 3077.5. Consistent with City policy prohibiting harassment and discrilnination, Contractor understands that harassment and discrimination directed toward a job applicant, an employee, a City employee, or any other person, by Contractor or Contractor's employees or sub-contractors will not be tolerated. Public Works Project Faria School Access Gate Expansion Public Works Contract $45 ,000 /Rev. May 22, 2018 Page 5 o f 11 13.4 Conflicts of Interest. Contractor, its employees, subcontractors, servants and agents, may not have, maintain or acquire a conflict of interest in relation to this Contract in violation of law, including Government Code section 1090 and Government Code section 81000 and their accompanying regulations. No officer, official, employee, consultant, or other agent of the City ("City Representative") may have, maintain, or acquire a "financial interest" in the Contract, as that term is defined by state law, or in violation of a City ordinance or policy while serving as a City Representative or for one year thereafter. Contractor, its employees, subcontractors, servants and agents warrant they are not employees of City or have any relationship with City officials, officers or employees that creates a conflict of interest. Contractor may be required to file a conflict of interest form if it makes certain governmental decisions or serves in a staff capacity, as defined in section 18700 of the California Code of Regulations. Contractor agrees to abide by City rnles governing gifts to public officials and employees. 13.5 Remedies. Any violation of Section 13 constitutes a material breach and may result in City suspending payments, requiring reimbursement, or terminating the Contract. City reserves all rights and remedies under the law and this Contract, including seeking indemnification. 14. BONDS For contracts of $25,000 or more, Contractor must obtain a payment bond and a performance bond, each in the penal sum of 100% of the Contract P1ice, using the Bond F 01ms attached and incorporated here as Exhibit C. Each bond must be issued by a surety admitted in California, with a financial rating from A.M. Best Company of Class A-or higher, or as otherwise acceptable to City. If an issuing surety cancels a bond or becomes insolvent, Contractor must provide a substitute bond from a surety acceptable to City within seven calendar days after written notice from City. If Contractor fails to do so, City may in its sole discretion and without prior notice, purchase bonds at Contractor's expense, deduct the cost from payments due Contractor, or terminate the Contract. City will not execute the Contract nor issue the NTP until the required bonds are submitted. 15. UTILITIES, TRENCHING AND EXCAVATION 15.1 Contractor must call the Underground Service Alert ("USA") 811 hotline and request marking of utility locations before digging or commencing Work For underground service ale1is for street lighting and traffic signal conduits, City's Service Center must be called at (408) 777-3269. Government Code Section 4215 requires Contractor to notify City and Utility in writing if it discovers utilities or utility facilities not identified in the Contract. 15.2 Pursuant to Government Code Section 7104, Contractor must stop work, notify City in writing, and wait for instrnctions if one of the conditions below is found at the worksite. City will work with Contractor to amend the Contract or issue a change order if the discovered conditions materially change the Work/Performance, Contract Time or Contract Price . (a) Material believed to be hazardous waste under Health and Safety Code Section 25117, and which requires removal to a Class I, Class II, or Class III disposal site pursuant to law; (b) Subsurface or latent physical conditions at the Project worksite differing from those indicated by information about the worksite made available to Contractor; and Public Works Project Faria School Access Gate Expansion Public Works Contract $45,000/Rev. May 22, 2018 Page 6 of 11 (c) Unknown physical conditions at the Project worksite of any unusual nature, materially different from those ordinarily encountered and from those generally recognized as inherent in the character of the Work . 15.3 For contracts $25 ,000 or higher that require excavation or involve trenches five feet or more in depth, Contractor must submit a detailed plan for City approval , per Labor Code Section 6705 prior to commencing work. The plan must show the design of shoring, bracing, sloping and other provisions for worker protection from caving ground and other hazards . The protective system must comply with all Construction Safety Orders . If the plan varies from shoring system standards , it must be prepared by a registered civil or structural engineer. 16. URBAN RUNOFF MANAGEMENT 16.1 All Work must fully comply with federal , state and local laws and regulations concerning sto1m water management. Contractor must avoid creating excess dust when breaking asphalt or concrete and during excavation and grading . If water is used for dust control, Contractor will use only the amount of water necessary to dampen the dust. Contractor will take all steps necessary to keep wash water out of the streets, gutters and sto1m drains . Prior to the start of the Work, Contractor will implement erosion and sediment controls to prevent pollution of storm drains, and must upgrade and maintain these controls based on weather conditions or as othe1wise required by City . These controls must be in place during the entire Contract Time and must be removed at the end of construction and completion of the Work. Such controls must include , but will not be limited to , the following requirements: (a) Install stmm drain inlet protection devices such as sand bag barriers , filter fabric fences, and block and gravel filters at all drain inlets impacted by construction. During the annual rainy season, October 15 through June 15 , storm drain inlets impacted by construction work must be filter-protected from onsite de-watering activities and saw-cutting activities. Shovel or vacuum saw-cut sluny and remove from the Work site ; (b) Cover exposed piles of soil or construction material with plastic sheeting. Store all construction materials in containers; ( c) Sweep and remove all materials from paved surfaces that drain to streets, gutters and st01m drains prior to rain and at the end of each work day. When the Work is completed, wash the streets, collect and dispose of the wash water off site in lawful manner; ( d) After breaking old pavement, remove debris to avoid contact with rainfall/runoff; ( e) Maintain a clean work area by removing trash, litter, and debris at the end of each work day and when Work is completed. Clean up any leaks , drips , and other spills as they occur. 16.2 These requirements must be used in conjunction with the California Stormwater Quality Association and California Best Management Practices Municipal and Constrnction Handbooks , local program guidance materials from municipalities, and any other applicable documents on stormwater quality controls for construction. Contractor 's failure to comply with this Section will result in the issuance of noncompliance notices , citations, Work stop orders and regulatory fines . Public Works Project Faria School Access Gate Expansion Public Works Contract $45 ,000 /Rev . May 22, 2018 Page 7 o f 11 17. PROJECT COORDINATION City Project Manager. City assigns Brian Gathers , Public Works Supervisor as the City representative for all purposes under this Contract, with authority to require compliance with the Scope of Work. City may substitute Project Managers at any time and without prior notice to Contractor. Contractor Project Manager. Subject to City approval, Contractor assigns Vanessa Alonso , Manager as its single representative for all purposes under this Contract, with the responsibility to ensure progress with the Work. Contractor 's Project Manager is responsible for coordinating and scheduling the Work and must regularly update the City Project Manager about the status and any delays with the Work , consistent with the Scope of Work. Any substitutions must be approved in writing by City. 18. ABANDONMENT AND TERMINATION 18.1 City may abandon or postpone the Project or parts therefor at any time. Contractor will be compensated for satisfactory Work performed through the date of abandonment and will be given reasonable time to close out the Work. With City 's pre-approval in writing, the time spent in closing out the Work will be compensated up to 10% of the total time expended in perfonning the Work. 18 .2 City may tenninate the Contract for cause or without cause at any time . Contractor will be paid for satisfactory Work rendered through the tennination date and will be gi v en reasonable time to close out the Work. 18.3 Final payment will not be made until Contractor delivers the Work and provides records documenting the Work, products and deliverables completed . Nothing in the Section below is intended to delay , abridge or bar City 's right under this Section. 19. GOVERNING LAW, VENUE AND DISPUTE RESOLUTION This Contract is governed by the laws of State of California . Venue for any legal action shall be the Superior Comi of the County of Santa Clara, California. The dispute resolution procedures of Public Contract Code Section 20104 , incorporated here by reference , apply to this Contract and Contractor is required to continue the Work pending resolution of any dispute. Prior to filing a lawsuit, Contractor must comply with the claim filing requirements of the California Government Code. If the Paiiies elect arbitration, the arbitrator's award must be supported by law and substantial evidence and include detailed written findings of law and fact. 20. ATTORNEY FEES If City initiates legal action , files a complaint or cross-complaint, or pursues arbitration , appeal , or other proceedings to enforce its rights or a judgment in connection with this Contract, the prevailing party will be entitled to reasonable attorney fees and costs. Public Works Project Faria School Access Gate Expansion Public Works Contract $45 ,000 !Rev. May 22, 2018 Page 8 o f 11 21. SIGNS/ADVERTISEMENT No signs may be displayed on or about City 's property, except signage which is required by law or by the Contract, without City 's prior written approval as to size, design and location. 22. THIRD PARTY BENEFICIARIES There are no intended third party beneficiaries of this Contract. 23. WAIVER Neither acceptance of the Work nor payment thereof shall constitute a waiver of any contract provision. City waiver of any breach shall not constitute waiver of another prov ision or breach. 26. WARRANTY Contractor wa1Tants that materials and equipment used will be new, of good quality, and free from defective workmanship and materials , and that the Work will be free from material defects not intrinsic in the design or materials . All Work, materials and equipment should pass to City free of claims , liens or encumbrances. Contractor warrants the Work and mate1ials for one year from the date of City 's acceptance of the Work as complete ("Wa1Tanty Period"), e xcept when a longer guarantee is provided by a supplier, manufacturer or is required by this Contract. During the Warranty Pe1iod , Contractor will repair or replace any Work defects or materials , including damage that arises from Contractor's Wa1Tanty Work, except any wear and tear or damage resulting from improper use or maintenance. 27. ENTIRE CONTRACT This Contract and the attachments, documents, and statutes attached, referenced, or expressly incorporated herein, including autho1ized amendments or change orders constitute the final and complete contract between City and Contractor with respect to the Work and the Project. No oral contract or implied covenant will be enforceable against City. If any attachment or incorporated provisions conflict or are inconsistent with the te1ms of this Contract, the Contract te1ms will control. 28. SEVERABILITY IP ARTIAL INVALIDITY If a comt finds any term or provision of this Contract to be illegal, invalid or unenforceable, the legal portion of said provision and all other contract provisions will remain in full force and effect. 28. SURVIVAL The contract provisions which by their nature should survive the Contract or Completion of Project, including without limitation all wairnnties, indemnities, payment obligations , insurance and bonds, shall remain in full force and effect after the Work is completed or Contract ends . Public Works Project Faria School Access Gate Expansion Public Works Contract $45 ,000 /Rev. May 22, 2018 Page 9 of 11 29. INSERTED PROVISIONS Each provision and clause required by law to be inse11ed in this Contract will be deemed to be included and will be infen-ed herein. Either party may request an amendment to cure mistaken insertions or omissions of required provisions. 30. CAPTIONS The captions, titles, and headings in this Contract are for convenience only and may not be used in the constrnction or interpretation of the Contract or for any other purpose. 31. COUNTERPARTS This Contract may be executed in counterpai1s, each of which is an original and all of which taken together shall fonn one single document. 20. NOTICES All notices, requests, and approvals must be sent in writing to the persons below and will be considered effective on the date of personal delive1y, the date confirmed by a reputable overnight delivery service, on the fifth calendar day after deposit in the United States Mail, postage prepaid, registered or ce11ified, or the next business day following electronic submission: To City of Cupertino: 10300 Ton-e Avenue, Cupe11ino CA 95014 Attention: Brian Gathers, Public Works Supervisor Copy to: Carl Valdez, Superintendent Email: briang@cupertino.org 30. VALIDITY OF CONTRACT To Contractor: A -1 Fence, Inc . 14820 Story Road San Jose , CA. 95127 Attention: Vanessa Alonso, Manager Copy to: Jeniessa Souza Email: a 1 fence@sbcglobal.net This Contract is valid and enforceable only if ( a) it complies with the purchasing and contract provisions of Cupertino Municipal Code Chapters 3.22 and 3.23, (b) is signed by the City Manager or an authorized designee, and (c) is approved for form by the City Attorney's Office. 32. EXECUTION The persons signing below wan-ant they have the authority to enter into this Contract and to legally bind their respective Pai1ies. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporations Code Section 313. Public Works Project Faria School Access Gate Expansion Public Works Contract $45,000 /Rev. May 22, 2018 Page IO of 11 IN WITNESS WHEREOF , the parties have caused this Contract to be executed as of the Execution Date first above written. CONTRACTOR A 1 Fence, Inc. 14820 Story Road San Jose , CA. 95127 Corooration Title: Manager Signature Date: ----'0"'--""'-8--2.E=_-_._!8'""------ APPROVED AS TO FORM: --------- CITY OF CUPERTINO, a Municipal Corporation By:~, · · Borden Title: Director of Public Works Signature Date: 0 !~o/r g --=c_+-~'"""-'=+7 --"""'---------- ~ / ,.// ----_, ·-I . -----1-V GI / .)_-/ By:_.-----1.' u C/'ff-l/----: ..A.I RO CTO-v.'. ...F IERRO Cupe11ino City Attorney q/i,1/-/- l ,c iJ 9 /3 ATTEST: By: GRACE SCHMIDT, City Clerk ? , / 3 · ( C Public Works Project Faria Schooot Access Gate Expansion Public Works Contract $45 ,000 /Rev . May 22, 2018 Page 11 of 11 A-1 FENCE, INC PROPOSAL SUBMITTED TO: NAME: CITY OF CUPERTINO STREET: 10555 MARY A VE CITY: CUPERTINO When You Want A-1 Cost, A-1 Quality, A-1 Speed 14820StoryRoad,SanJose,CA951EXH I BIT State License # 723 128 Bus ( 408) 259-2955 Fax (408) 259-2 alfenceinc@sbcglobal.net DATE: 8-23-18 JOB NAME: 10072 S. STELLING RD / CUPERTINO CONTACT: BRIAN GATHERS / 408-355-4170 E-MAIL: BRIANG@CUPERTINO.ORG STATE: CA ZIP: 95014 P.O. CROSS ST: STEVENS CREEK BL VD ESTIMATOR: EMILIO JR WE HEREBY SUBMIT SPECIFICATIONS AND ESTIMATES FOR FILE: CITY OF CUPERTINO 10072 S. STELLING RD JOB DESCRIPTION: INSTALL: 1-20' x 6'H CHAIN LINK DOUBLE SWING GATE WI DROP ROD & CANE BOLT. 2-4 Yi'' GATE POSTS, SET 3' IN CONCRETE. 1 5/8" FRAMES. 9GA CHAIN LINK FABRIC . ( REMOVE & HAUL AWAY: EXISTING FENCE.) REPLACE: 9' OF 1 5/8" MIDDLE RAIL. ( PREY AILING WAGE.) *SELF CLOSING GATES* ( HYDRAULIC ARM, SPRING OR BOOMER HINGES) 30 DAYS LIMITED WARRANTY. (A-1 FENCE IS NOT RESPONSIBLE FOR PERMITS AND/ OR UNDERGROUND LINES.) ( FREE SERVICE CALL BEFORE WE DIG 1-800 227-2600 USA NORTH) GROUND: AC/DIRT LEVEL: YES ACCESS: OK DEMO: YES CLEARING: YES WE HEREBY PROPOSE TO FURNISH LABOR AND MATERIALS -COMPLETE AND ACCORDANCE WITH THE ABOVE SPECIFICATIONS , FOR THE SUM OF $3,750.00 DOLLARS WITH PAYMENT TO BE MADE AS FOLLOWS: 100% ON COMPLETION ACCEPTANCE OF PROPOSAL THE ABOVE PRICES , SPECIFICATIONS AND CONDITIONS ARE SATISFACTORY AND ARE HEREBY ACCEPTED . YOU AUTHORIZED TO DO THE WORK AS SPECIFIED .PAYMENT WILL BE MADE AS OUTLINED ABOVE. ALL MATERIALS WILL REMAIN THE PROPERTY OF A-1 FENCE INC . UNTIL ALL INVOICES PERTAINING TO THIS JOB ARE PAID IN FULL. RESTOCKING CHARGE MAY BE APPLIED IF JOB IS CANCELED OR LAYOUT ALTERED FROM SIGNED CONTRACT . ACCEPTED : PRINT NAME: Brian Gathers DATE: 8/27/18 SIGNATURE: _8=--=,ua,n,=·~f1-',9--=~~~'----------- '· ........ ~\ PUBLIC WORKS CONSTRUCTION CONTRACTS Small Projects -$45,000 Insurance Requirements: Exhibit B Contractor shall procure and maintain for the duration of the contract, and for jive years following the completion of the Project, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees or subcontractors. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an "occurrence" basis, written on a comprehensive general liability form, and must include coverage for liability arising from Contractor 's or Subcontractor 's acts or omissions, including Contractor's protected coverage, blanket contractual, products and completed operations, vehicle coverage and employer 's non-ownership liability coverage , with limits of at least $2,000,000 per occurrence . The CGL policy must protect against any and all ~ability for personal injury, death , property damage or destruction , and personal and advertising injury . If a general aggregate limit applies , either the general aggregate lim it shall app ly separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. '-"2 . a. It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be made available to the Additional Insured and shall be (1) the minimum coverage/limits specified in this agreement; or (2) the broader coverage and maximum limits of coverage of any insurance po licy , whichever is greater. b. Additional Insured coverage under Contractor's policy shall be "primary and non-contributory," will not seek contribution from City 's insurance/self-insurance , and shall be at least as broad as ISO CG 20 01 04 13 c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess insurance, provided each policy complies with the requirements set forth in this Contract. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect City as a named insured. Automobile Liability: ISO Form CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos , then hired autos (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage . Workers' Compensation: As required by the State of California, with Statutory Limits, and Employer's Liability Insurance of no less than $1,000,000 per accident for bodily injury or disease, or as otherwise required by statute. If Contractor is self-insured, Contractor must provide a Certificate of Permission to Self-Insure, duly authorized by the DIR. D N/ A if box checked ( Contractor provides written verification it has no employees). 4. Professional Liability with limits no less than $1 ,000 ,000 per occurrence or claim, and $2,000,000 aggregate . .R'.'.l NI A if box checked (Contract is not design/build). 5 . Builder's Risk. Course of Construction insurance utilizing an "All Risk" (Special Perils) coverage form , with lim~ual to the completed value of the project and no coinsurance penalty provisions . ;eg_ NIA if box checked (Project does not involve construction or improveme nts/installations to property). insurance R equirements for C on struction Contracts -$45,000 Version : Nov 2017 6. Contractors' Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. ~ NIA if box checked (Project does not involve environmental hazards). If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and shall be entitled to the broader coverage and/or higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Self-Insured Retentions. Self-insured retentions must be declared to and approved by City. At City's option, either: (I) Contractor shall cause the insurer to reduce or eliminate self-insured retentions as respects City, its officers, officials, employees, and volunteers; or (2) Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or the City. OTHER INSURANCE PROVISIONS The insurance policies are to contain, or be endorsed to contain, the following provisions: / Additional Insured Status ~ The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of the Services performed by or on behalf of Contractor including materials, parts, or equipment furnished . Endorsement of CGL coverage shall be at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 3 8; and CG 20 3 7 if a later edition is used . Primary Coverage For any claims related to this Project, Contractor's insurance coverage shall be "primary and non-contributory" and at least as broad as ISO CG 20 01 04 13 with respect to City, its officers, officials, employees and volunteers, and shall not seek contribution from City's insurance. If the limits of insurance are satisfied in part by Umbrella/Excess Insurance, the Umbrella/Excess Insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a "primary and non-contributory" basis for the benefit of City. Notice of Cancellation Each insurance policy required shall provide that coverage shall not be canceled, except with notice to the City. Each certificate of insurance must state that the coverage afforded by the policy is in force and will not be reduced, cancelled or allowed to expire without at least 30 days advance written notice to City, unless due to non-payment of premiums, in which case ten days advance written notice must be provided to City. Such notice must be sent to City via certified mail and addressed to the attention of the City Manager. Builder's Risk Contractor may submit Builder's Risk insurance in the form of Course of Construction coverage, which shall name the City as a loss payee, as its interest may appear. The Builder's Risk policy must be issued on an occurrence basis, for all-risk coverage on a 100% completed value basis on the insurable portion of the Project, with no coinsurance penalties, and for the benefit of City. If the Project does not involve new or major reconstruction , City may elect, acting in its sole discretion , to accept an Installation Floater policy instead of Builder's Risk. For such projects, the Property Installation Floater shall include improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment, and shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation , and testing at the City 's site. Insurance Requirements for Construction Contracts -$45,000 Version: Nov 2017 2 Waiver of Subrogation I ;Each required policy must include an endorsement providing that the carrier agrees to waive any right of subrogation \ V it may have against City. Contractor agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors . Acceptability of Insurers Insurance must be issued by insurers acceptable to City and licensed to do business in the State of California, and each insurer must have an A.M. Best's financial strength rating of "A" or better and a financial size rating of"VIl" or better. Verification of Coverage Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable insurance language, effecting coverage required by this contract. 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 po licies, including endorsements, required by these 'specifications, at any time. Subcontractors Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors . For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13. Surety Bonds As required by Contract and described in the Contract Documents . The Payment and Performance Bonds shall be in a sum equal to the Contract Price. If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the Contract is for longer than one year a Maintenance Bond equal to 10% of the Contract Price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California. Special Risks or Circumstances City reserves the right to modify these requirements, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. Insurance Requirements.for Construction Contracts -$45,000 Version : Nov 2017 3 v' ACORD® CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DDIYYYY) ~ 2/21/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may requ ire an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER ~~~i~cT Sharla Rodriguez TLB Insurance Services rtgN~o Extl : (925) 395-2600 I FAX IA/C Nol : (925) 287-0710 CA License #OB82095 ~oMlJ~sS : sharlar@tl.bins . corn 3000 Oak Road , Suite 210 INSURER(S) AFFORDING COVERAGE NAIC # Wal.nut Creek CA 94597 INSURER A :Financial. Pacific Insurance Co 31453 INSURED INSURER 8 :Wesco Insurance Company 25011 A-1 Fence Inc . INSURER C :Cypress Insurance Company 10855 DBA Del.aware A-1 Fence Inc. INSURER D : 14820 Story Rd INSURER E : San Jose CA 95127 INSURER F: COVERAGES CERTIFICATE NUMBER:17 -18 Master REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIE S OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED . NOTWITHSTANDING ANY REQUIREMENT , TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN , THE IN SURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS , EXC LUSIONS AND CONDITIONS OF SUCH POLICIES . LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLA IMS . INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE ,.,on '""n POLICY NUMBER IMM/DD/YYYYI IMM/DDNYYYI LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 -D CLAIMS-MADE [iJ OCCUR DAMAGE TO REN TED A 60496333 ~ PREMISES /Ea occu rrence\ $ 300 ,000 X y 10/1 /2017 10 /1/2018"' MED EXP (Any one person) $ 5 ,000 ~ PERSONAL & ADV IN JURY ~ $ 1 ,00 0 ,000 GEN'L AGGR EGATE LIMI T APP LIE S PER: GEN ER AL AGGREGATE $ 2,000,000 R 0 PRO-D Loc 2,000,000 POLICY JECT PRODUCTS -COMP/O P AGG $ OT HER: $ AUTOMOBILE LIABILITY COMB INED SING LE LIMIT $ Vl ,000 ,000 /Ea accidenl\ f-- X ANY AUTO WPP1406451 02 / BODILY IN JURY (Per person) $ B f--AL L OWNED -SCHEDU LED 1 0/1/201811 AUTOS AUTOS X y 10/1 /2017 BODILY IN JURY (Per accident) $ f--f--NON-OWNED PR OPERT Y DAMAGE X HIRED AUTOS X AUTOS /Per acc ident\ $ f--f-- Medical cavments $ '1.,-0_Q O UMBRELLA LIAB M OCCUR EAC H OCCURR EN CE $ /2 000 00 0 f-- ( A X EXCESS LIAB CLA IMS-MAD E AGGR EGATE $ 2 000 000 DED I I RETENTION $ 6049633 3 10/1/2017 10/1/2018L s '-... WORKERS COMPENSATION I PER I I OTH- AND EMPLOYERS' LIABILITY X STATUTE ER Y/N ANY PROPRIETOR/PARTNER /EXECU TI VE D AOWCB lBl 77,/ E.L. EAC H ACCIDENT $ 1 ,000,000 OFFIC ER /MEMBER EXC LUDED ? N/A 1E.L. DISEASE -EA EMPLOYEE C (Mandatory in NH) y 10/1 /2017 10 /1 /2018£ $ 1,000,000 If yes, describe under DESCRIPTION OF OPERAT IONS below E.L. DISE AS E -POLICY LIMIT $ 1 000 000 DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES (ACORD 101 , Additional Remarks Schedule , may be attached ii more space is required) 'RE : Work done for the City of Cupertino . City of Cupertino, its City ouncil., officers, employees, agents, servants, and volunteers are included as additional insured with respect to the General. Liability and Auto Liability per the attached endorsements pe5 written contract. This insurance is Primary per the attached endorsement per written contract. Waiver of Subrogation for General. Liability & Auto Liability & Worker's Comp per the attached endorsement per written contract. This pol.icy has a Per Project Limit endorsement also attached . *30 days notice of cancellation for non-renewal. of policy CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE CITY OF CUPERTINO THE EXPIRATION DATE THEREOF , NOTICE WILL BE DELIVERED IN 10555 Mary Ave ACCORDANCE WITH THE POLICY PROVISIONS. Cupertino, CA 95014 AUTHORIZED REPRESENTATIVE _.,, ,.,,, -= ---= ---S Ro drigue z /MADELA -~ 0 © 1 988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) INS025 (20 1401) The ACORD name and logo are registered marks of ACORD v \/ I/J~ IV ) POLICY NUMBE : CG 2010R 1211 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS (WITH LIMITED COMPLETED OPERATIONS COVERAGE) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART BUSI NESSOWNERS COVERAGE FORM SCHEDULE NAME OF PERSON OR ORGANIZATION Any person or organization to whom or to which the named Insured is obligated by a virtue of a written contract to provide insurance that Is afforded by this policy. Where required by contract, the officers, officials, employees, directors, subsidiaries. partners, successors, parents, divisions, architects, surveyors and engineers are Included as additional Insureds. All other entities, including but not limited to agents, volunteers. servants, members and partnerships are included as addllional insure(js, if required by contract, only when acting within the course and scope of their duties controlled and supervised by the primary (first) additional insured. If an Owner Controlled Insurance Program is involved. the coverage applies to off- site operations only. If the purpose of this endorsement is for bid purposes only, then no coverage applies. WHO IS AN INSURED: (Section II) This section is amended to Include as an insured the person or organization within the scope of the qualifying language above, but only to the extent that the person or organization is held liable for your acts or omissions in the course of •your work" for that person or organization by or for you. The "products-. completed operations hazard· portion of the policy coverage as respects the additional Insured does not apply to any work involving or related to properties Intended for residential or habllallonal occupancy (other than apartments). This clause does not affect the Qproducts- completed operations'" coverage provided to the named insured(s). WAIVER OF SU880GATION: We waive any right of recovery, when required by written contract. that we may have against the person or organization within the scope of CG 20 lOR 12 11 the qualifying language above because of payments we make for Injury. LOCATION OF JOB: The job location must be within the State of domlclle of the named insured, or within any contiguous State thereto. DESCR!PTION OF WORK: The type of work performed must be that as described under classifications in the CGL Coverage Part Oeclarallons. PRIMARY CLAUSE: When this endorsement applies and when required by written contract, such insurance as is afforded by the general llabllfty policy is primary Insurance and other insurance shall be excess and shall not contribute to the insurance afforded by this endorsement. EXCLUSION This insurance provided to the additional Insured does not apply to "bodily injury·, "property damage" or "personal and advertising injury" ariSing out of an architect's. engineer's or surveyor's rendering or failure to render any professional services, Including: 1. The preparing, approving. or failing to prepare or approve, maps, designs, shop drawings, opinions, reports, surveys, field orders, change orders, or drawings and specification~ and 2. Supervisory, inspection, architectural or engineering activities. Endorsement EFFECTIVE DATE: SEE DEC Endorsement EXPIRATION DATE: Sl;E DEC Page 1 of 1 ltldudes copyrigtlted material or lnswance Services Ol'fice. Inc .• wlth Its pennlss!on POLICY NUMB COMMERCIAL GENERAL LIABILITY CG 25 03 05 09 THIS END RSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED CONSTRUCTION PROJECT(S) GENERAL AGGREGATE LIMIT This endorsement modifies insurance provrded under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Oesignated Construction Project(s): Information required to complete this Schedule. if not shown above. wJII be shown in the Declarations. A. For all sums which the Insured becomes legally obligated to pay as damages caused by "occurrences" under Section I -Coverage A, and for all medical expenses caused by accidents under Section I -Coverage C, which can be attributed only to ongoing operations at a single designated construction project shown In the Schedule above: 1. A separate Des ignated Construct ion Project General Aggregate Limit applies to each designated construction project, and that Jimil is equa l to the amount of the General Aggregate Limit shown in the Dectaralions. 2. The Designated Construction ProJect General Aggregate Limit is the most we will pay for the sum of all damages under Coverage A, except damages because of "bodily injury ~ or •property damage" included in the "products-completed operations hazard", and for medical expenses under Coverage C regardless of the number of: a. Insureds: b. Claims made or "suils" brought; or c. Persons or organlzaUons making claims or bringing "suits". 3. Any payments made under Coverage A for damages or under Coverage C for medical expenses shall reduce the Designated Construction Project General Aggregate Limit for that designated construdion project. such payments shall not reduce the General Aggregate Limit shown In the Declarations nor shall they reduce any other Designated Construction Proj ect General Aggregate Limit for any other designated construction project shown in lhe Schedule above. 4. The limits shown in the Declarations for Each Occurrence, Damage To Premises Rented To You and Medical Expense continue to apply. However, instead of being subject to the General Aggregate Limit shown in the Declarations. such limits will be subject to the applicable Designated Construction Project General Aggregate Limit. CG 25 0305 09 © Insurance SeNices Office, Inc., 200B Page 1 of2 •26008400• If lIDI IH m UI~ lfflJ m~l 111~1 N~ ,m B. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under Section I -Coverage A, and for all medical expenses caused by accidents under Section I -Coverage C, which cannot be attributed only to ongoing operations at a single designated construction project shown in the Schedule above: 1. Any payments made under Coverage A for damages or under Coverage C for medical expenses shall reduce the amount available under the General Aggregate limit or the Products.completed Operations Aggregate Limit, whichever Is applicable: and 2. Such payments shall not reduce any Designated Construction Project General Aggregate Limit. CG 26 03 OS 09 c. When coverage for liabillty ansmg out or the "products-completed operations hazard" is provided, any payments for damages because of "bodily injury" or "property damage" included In the "products-completed operations hazard" will reduce the Products-completed Operations Aggregate Limit, and not reduce the General Aggregate Limit nor the Designated Construction Project General Aggregale Limit. O. If the applicable designated construction project has been abandoned. delayed, or abandoned and then restarted, or if the authorized contracting parties deviate from plans, blueprints. designs, specifications or timetables. the project will still be deemed to be the same construction project. E. The provisions of Section Ill -limits Of Insurance not otherwise modified by this endorsement shall continue to apply as stipulaled. CG 25 0305 09 © Insurance SelVices Office, Inc., 2008 Page 2 of2 POLICY NUMB COMMERCIAL AUTO CA990187 0715 This Endorsement Changes The Policy. Please Read It Carefully BUSINESS AUTO COVERAGE EXPANSION ENDORSEMENT This endorsement modifies insurance provided by the following : BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement , the provisions of the COVERAGE FORM apply unless modified by the endorsement. A. Newly Acquired or Formed Organizations, Employee Hired Car Liability and Blanket Additional Insured Status for Certain Entities. Item 1 . Who is an Insured of Paragraph A. Coverage under SECTION II -COVERED AUTOS LIABILITY COVERAGE is amended to add : d. Any organization you newly acquire or form , other than a partnership , joint venture or limited liability company , and ove r which you maintain ownership of a majority interest (greater than 50%), will qualify as a Named Insured ; however , (1) coverage under this provision is afforded only until the 1801 h day after you acquire or form the organization or the end of the policy period , whichever is earlier ; (2) coverage does not apply to "bodily injury", "property damage" or "covered pollution cost or e xpense" that results from an "accident" which occurred before you acquired or formed the organization ; and (3) coverage does not apply if there is other similar insurance available to that organization , or if similar insurance would have been available but for its termination or the ex haustion of its limits of insurance . This insurance does not apply if coverage for the newly acquired or formed organi zation is excluded eithe r by the provis ions of this coverage form or by endorsement. e. An "employee" of yours is an "insured" wh ile operating an "auto" hired or rented under a contract or agreement in that "employee's" name , with your perm ission , while performing duties related to the conduct of your business . f . Any person or organization you are required by written contract or agreement to name as an additional "insured ", but only with respect to liability created in whole or in part by such agreement. B. Increase Of Loss Earnings Payment Subpart (4) of a. Supplementary Payments of Item 2. Coverage Extensions of Paragraph A. Coverage under SECTION II -COVERED AUTOS LIABILITY COVERAGE is amended to read: (4) We will pay reasonable ex penses incurred by the "insured " at our request , including actual loss of earnings up to $1 ,000 per day because of time off from work . C. Fellow Employee Injured By Covered Auto You Own Or Hire Item 5. Fellow Employee of Paragraph B. Exclusions under SECTION II -COVERED AUTOS LIABILITY COVERAGE is amended to add : This exclusion does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire . Such coverage as is afforded by this provision is excess over any other collectible insurance . CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 1 of 5 Used with pe r mission D. Limited Automatic Towing Coverage Item 2. Towing , of Paragraph A. Coverage , under SECTION Ill -PHYSICAL DAMAGE COVERAGE is amended to read: 2. Towing We will pay for towing and labor costs each time that a covered "auto" is disabled . All labor must be performed at the place of disablement of the covered "auto". a. The limit for towing and labor for each disablement is $500; b. No deductible applies to this cover- age . E . Item 3. Glass Breakage -Hitting A Bird Or Animal -Falling Objects or Missiles of Paragraph A. Coverage under SECTION Ill -PHYSICAL DAMAGE COVERAGE is amended to add: ' Glass Repair Coverage We will waive the Comprehensive deductible for Glass , if one is indicated on your covered "auto", for glass repairs. We will repair at no cost to you , any glass that can be repaired without replacement , provided the "loss" arises from a covered Comprehensive "loss" to your "auto". F. Increase Of Transportation Expense Coverage Subpart a. Transportation Expenses of Item 4. Coverage Extensions of Paragraph A. Coverage under SECTION Ill - PHYSICAL DAMAGE COVERAGE is amended to read : a. Transportation Expenses We will pay up to $50 per day to a maximum of $1,000 for temporary transportation ex pense incurred by you because of the total theft of a covered "auto" of the private passenger type . We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage or Theft Coverage . We will pay for temporary transportation expenses incurred during the period beginning 48 hours after the theft and ending , regardless of the policy's expiration , when the covered "auto" is returned to use or we pay for its "loss". G. "Personal Effects" Coverage Item 4. Coverage Extensions of Paragraph A. Coverage, under SECTION Ill - PHYSICAL DAMAGE COVERAGE, is amended to add: "Personal Effects" Coverage We will pay actual cash value for "loss" to "personal effects" of the "insured" while in a covered "auto" subject to a maximum limit of $2 ,500 per "loss", for that covered "auto" caused by the same "accident". No deductible will apply to this coverage . H. "Downtime Loss" Coverage Item 4. Coverage Extensions , of Paragraph A. Coverage, under SECTION Ill. PHYSICAL DAMAGE COVERAGE is amended to add : ' "Downtime Loss" Coverage We will pay any resulting "downtime loss " expenses you sustain as a result of a covered physical damage "loss" to a covered "auto" up to a maximum of $100 per day , for a maximum of 30 days for the same physical damage "loss", subject to the following conditions: a. We will provide "downtime loss" beginning on the 51h day after we have given you our agreement to pay for repairs to a covered "auto" and you have given the repair facility your authorization to make repairs ; b. Coverage for "downtime loss " expenses will end when any of the following occur: (1) You have a spare or reserve "auto" available to you to continue your operations . (2) You purchase a replacement "auto". (3) Repairs to your covered "auto" have been completed by the repair facility and they determine the covered "auto" is road -worthy. (4) You reach the 30 day maximum coverage. CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 2 of 5 Used with permission I. Item 4. Coverage Extensions , of Paragraph A. Coverage , under SECTION Ill. PHYSICAL DAMAGE COVERAGE , is amended to add : We will pay any resulting rental reimbursement expenses incurred by you for a rental of an "auto " because of "loss " to a covered "auto" up to a maximum of $100 per day, for a maximum of 30 days for the same physical damage "loss ", subject to the following conditions: a. We will provide rental reimbursement incurred during the policy period beginning 24 hours after the "loss" and ending , regardless of the policy expiration , with the number of days reasonably required to repair or replace the covered "auto". If the "loss" is caused by theft , this number of days is the number of days it takes to locate the covered "auto" and return it to you or the number of days it takes for the claim to be settled , whichever comes first. b. Our payment is limited to necessary and actual expenses incurred. c. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. d. If a "loss " results from the total theft of a covered "auto" of the private passenger type , we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the Physical Damage Coverage Extension . J. "Personal Effects" Exclusion Paragraph 8. Exclusions under SECTION Ill -PHYSICAL DAMAGE COVERAGE, is amended to add : "Personal Effects" Exclusion We will not pay for "loss" to "personal effects" of any of the following : a. Accounts , bills , currency , deeds , evidence of debt , money , notes, securities or commercial paper or other documents of value. b . Bullion , gold, silver, platinum, or other precious alloys or metals ; furs or fur garments; jewelry; watches; precious or semi-precious stones. c . Paintings , statuary and other works of art . d. Contraband or property in the course of illegal transportation or trade . e . "Loss" caused by theft, unless there is evidence of forced entry into the covered "auto " and a police report is filed. K. Accidental Airbag Discharge Coverage Item 3.a. of Paragraph B. Exclusions under SECTION Ill -PHYSICAL DAMAGE COVERAGE is amended to read: a. Wear and tear , freezing , mechanical or electrical breakdown. The exclusion relating to mechanical break-down does not apply to the accidental discharge of an air bag . L. Loan or Lease Gap Coverage Paragraph C. Limit Of Insurance under SECTION 111-PHYSICAL DAMAGE COVERAGE is amended to add: If a covered "auto " is owned or leased and if we provide Physical Damage Coverage on it , we will pay , in the event of a covered total "loss", any unpaid amount due on the lease or loan for a covered "auto", less: a. The amount paid under the Physical Damage Coverage Section of the policy ; and b. Any: (1) Overdue lease or loan payments including penalties , interest or other charges resulting from overdue payments at the time of the "loss"; (2) Financial penalties imposed under a lease for excessive use , abnormal wear and tear or high mileage ; (3) Costs for extended warranties , Credit Life Insurance , Health , Accident or Disability Insurance purchased with the loan or lease ; (4) Security deposits not refunded by the lessor ; and (5) Carry-over balances from previous loans or leases CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 3 of 5 Used with permission M. Aggregate Deductible Paragraph D. Deductible under SECTION Ill -PHYSICAL DAMAGE COVERAGE is amended to add : Regardless of the number of covered "autos" involved in the same "loss", only one deductible will apply to that "loss". If the deductible amounts vary by "autos ", then only the highest applicable deductible will apply to that "loss ". N. Diminishing Deductible Paragraph D. Deductible under SECTION Ill -PHYSICAL DAMAGE COVERAGE is amended to add : Any deductible will be reduced by the percentage indicated below on the first "loss " reported during the corresponding policy period : Loss Free Policy Periods Deductible With the Expansion Reduction on the Endorsement first "loss" 1 0% 2 25 % 3 50 % 4 75 % 5 100 % If we pay a Physical Damage "loss" during the policy period under any BUSINESS AUTO COVERAGE FORM you have with us , your deductible stated in the Declarations page of each such COVERAGE FORM will not be reduced on any subsequent claims during the remainder of your policy period and your deductible reduction will revert back to 0% for each such COVERAGE FORM if coverage is renewed. 0. Knowledge of Loss and Notice To Us Subsection a. of Item 2. Duties In the Event of Accident, Claim, Suit or Loss of Paragraph A. Loss Conditions under SECTION IV --BUSINESS AUTO CONDITIONS is amended to add : However , prompt notice of the "accident", claim, "suit" or "loss" to us or our authorized representative only applies after the "accident", claim , "suit" or "loss" is known to: (1) You , if you are an individual ; (2) A partner , if you are a partnership ; (3) An "e xecutive officer " or director, if you are a corporation ; (4) A manager or member , if you are a limited liability company ; (5) Your insurance manager ; or (6) Your legal representative. P. Waiver Of Subrogation For Auto Liability Losses Assumed Under Insured Contract Item 5. Transfer Of Rights Of Recovery Against Others To Us of Paragraph A. Loss Conditions under SECTION IV - BUSINESS AUTO CONDITIONS is amended to read : 5. Transfer of Rights of Recovery Against Others To Us If any person or organization to or for whom we make payments under this Coverage Form has rights to recover damages from another , those rights are transferred to us . That person or organization must do everything necessary to secure our rights and must do nothing after an "accident" or "loss" to impair them. However , if the insured has waived those rights to recover through a written contract , we will waive any right to recovery we may have under this Coverage Form. a. Insurance is Primary and Noncontributory Subpart a. of Item 5. Other Insurance of Paragraph B. General Conditions under SECTION IV -BUSINESS AUTO CONDITIONS is amended to read : a. This insurance is primary and noncontributory, as respects any other insurance , if required in a written contract with you . R. Other Insurance -Hired Auto Physical Damage Subpart b. of Item 5 .. 0ther Insurance of Paragraph B. General Conditions under SECTION IV -BUSINESS AUTO CONDITIONS is amended to read : b. For Hired Auto Physical Damage Coverage, the following are deemed to be covered "autos" you own: (1) Any covered "auto" you lease , hire , rent or borrow ; and CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Page 4 of 5 Used with permission (2) Any cov ered "auto " hired or rented by your "employee" under a contract in that individual "employee 's" name, with your permission, while performing duties related to the conduct of your business . However , any "auto " that is leased , hired , rented or borrowed with a driver is not a covered "auto ". S. Unintentional Failure To Disclose Hazards Paragraph B. General Conditions under SECTION IV -BUSINESS AUTO CONDI- TIONS is amended to add : 9. Your failure to disclose all hazards existing as of the inception date of this policy shall not prejudice the coverage afforded by this policy, provided that such failure to disclose all hazards is not intentional. However, you must report such previously undisclosed hazards to us as soon as practicable after its discovery. T. Additional Definition SECTION V -DEFINITIONS is amended to add : "Personal effects " means personal property owned by the "insured ". "Downtime loss" means actual loss of "business income" for the period of time that a covered "auto": 1. Is out of service for repair or replacement as a result of a covered physical damage "loss" and 2. Is in the custody of a repair facility if not a total "loss ". "Business Income " means : 1. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred ; and 2. Continuing normal operating e x penses incurred , including payroll. In this endorsement, Headings and Titles are inserted solely for the convenience and ease of reference. They do not affect the coverage provided by this endorsement, nor do they constitute any part of the terms and conditions of this endorsement. All other policy wording not specifically changed, modified, or replaced by this endorsement wording remains in effect. CA990187 0715 Includes Copyrighted Material of Insurance Services Offices, Inc. Used with permission Page 5 of 5 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 04109 (Ed. 9-14) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA BLANKET BASIS We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule . (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) The additional premium for this endorsement shall be 2% of the total manual premium otherwise due on such remuneration. The minimum premium for this endorsement is $350 . This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule . BLANKET WAIVER Person/Organization Job Description All CA Operations SCHEDULE Blanket Waiver -Any person or organization for whom the Named Insured has agreed by written contract lo furnish this waiver . Waiver Premium 2195.00 This endorsement changes the policy to which it is attached and is effective on the date Issued unless otherwise stated, {The Information below Is required only when thlB endorsement s..laM1edJ!ubaequent to preparation of the policy.) Endorsement Effective 10/01/2017 Insurance Company Cypress Insurance Company WC 99 04108 (Cd . 0·14) \ Endorsement No. Premiums Countersigned by----------------