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CC 2013-08-27_08.l. Agreement - Tourism Marketing ServicesMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF CONSUL TANT SERVICES AGREEMENT WITH BARNETT COX & ASSOCIATES FOR TOURISM MARKETING SERVICES DATE: AUGUST 13, 2013 RECOMMENDATION: It is recommended the Council approve a consultant services agreement with Barnett Cox & Associates for tourism marketing services to assist the Tourism Business Improvement District (TBID). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of the agreement is proposed not to exceed $60,000. It will be paid entirely from funding from the TBID. The cost is consistent with the amount funded in the budget approved by the TBID Advisory Board and City Council. The agreement will provide assistance in developing marketing efforts for the TBID, which will help reduce impacts of the program on City staff. In addition, the agreement will be managed, and the web site will be maintained, by the Arroyo Grande -Grover Beach Chamber of Commerce President/CEO. Therefore, there will be little impact on City staff. BACKGROUND: At the May 14, 2013 meeting, the City Council adopted the Ordinance to establish the TBID and appointed the members of the TBID Advisory Board. The TBID became effective on June 13, 2013 and the assessment fee took effect on July 1, 2013. The by-laws and budget were approved by the Council at the July 9, 2013 meeting. ANALYSIS OF ISSUES: Approval of the agreement has been recommended by both the Chamber of Commerce Marketing Committee and TBID Advisory Committee. The proposed scope of work is as follows: Item 8.l. - Page 1 CITY COUNCIL CONSIDERATION OF CONSUL TANT SERVICES AGREEMENT WITH BARNETT COX & ASSOCIATES FOR TOURISM MARKETING SERVICES AUGUST 13, 2013 PAGE2 • Assist in developing marketing objectives and strategies. Commission research projects as deemed necessary to understand the Client's target market, product appeal and key message components. • Develop brand strategies, advertising campaigns and budget estimates based on the Client's marketing objectives and strategies. Where appropriate, BCA will provide measured objectives to monitor return on investment and campaign effectiveness. • Provide all creative, production, media planning and buying services. Development of communications campaigns using advertising commercials, ads, direct mail, brochures, Internet websites, social media, Apps, collateral, point-of-purchase, and other processes as required by the plan and as agreed to by the Client. Arrange photography, printing, display, publicity, etc., as needed. Carry through production in all aspects to completion. • Pinpoint and develop appropriate public and community relations opportunities relating to communications campaigns. Provide specialized services targeted to enhance the Client's brand and public image. • Provide continuous, as-needed, account service and consultation to ensure prompt completion of projects. • Develop and implement specialized areas of promotion as needed, such as internal communications, telemarketing, direct response, sales presentations, or incentive programs. • Maintain internal procedures that ensure budget control, prompt billing and quality control. • Provide regular contact reports on all meeting decisions, regular financial and project status reports. Barnett Cox & Associates has extensive experience with tourism and other marketing efforts. Their firm previously worked with the Chamber of Commerce Marketing Committee in the branding effort, which will serve as the foundation for the tourism marketing program. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staff's recommendations; • Modify the scope of services and approve the agreement; • Continue the item and direct staff to review proposed modifications to the scope of work with the TBID Advisory Board; • Do not approve the agreement; or • Provide other direction to staff. Item 8.l. - Page 2 CITY COUNCIL CONSIDERATION OF CONSULTANT SERVICES AGREEMENT WITH BARNETT COX & ASSOCIATES FOR TOURISM MARKETING SERVICES AUGUST 13, 2013 PAGE3 ADVANTAGES: Approval of this agreement will enable the TBID to move forward in developing a comprehensive tourism marketing program in a timely manner. This will help increase hotel stays, accomplish the goals of the TBID, improve the local economy, and demonstrate rapid results to lodging businesses. DISADVANTAGES: There are no disadvantages identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, August 8, 2013 and on the City's website on Friday, August 9, 2013. No comments were received. Attachments: 1. Consultant Services Agreement Item 8.l. - Page 3 AGREEMENT FOR CONSUL TANT SERVICES THIS AGREEMENT, is made and effective as of 2013, between BARNETT COX & ASSOCIATES, a California Corporation, ("Consultant"), and the CITY OF ARROYO GRANDE, a Municipal Corporation ("City"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on July 1, 2013 and shall remain and continue in effect until June 30, 2014, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Consultant shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", attached hereto and incorporated herein by this reference. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION The City Manager shall represent City in all legal matters pertaining to the administration of this Agreement. The City has contracted with the Arroyo Grande - Grover Beach Chamber of Commerce (Chamber of Commerce) to manage this program. Therefore, the Chamber of Commerce Executive Director shall serve as the City Manager's designee and primary contact for the Consultant regarding ongoing tasks related to the Scope of Work. Shari Clark shall represent Consultant in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Consultant in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City and/or Consultant may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving Page 1 Item 8.l. - Page 4 upon the other party at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: (a) Bankruptcy or insolvency of any party; (b) Sale of Consultant's business; or (c) Assignment of this Agreement by Consultant without the consent of City. (d) End of the Agreement term specified in Section 1. 8. DEFAULT OF CONSULTANT (a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date it provides the Consultant with written notice of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 9. LAWS TO BE OBSERVED. Consultant shall: (a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Consultant under this Agreement; Page 2 Item 8.l. - Page 5 (b) Keep itself fully informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any materials used in Consultant's performance under this Agreement, or the conduct of the services under this Agreement; (c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; (d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. (e) The City, and its officers, agents and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP OF DOCUMENTS (a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. Page 3 Item 8.l. - Page 6 (c) Consultant retains the right to show materials, not deemed confidential, for promotional purposes and to retain rights to appropriate design identification in printed materials for promotional purposes. 11. INDEMNIFICATION FOR PROFESSIONAL LIABILITY. Notwithstanding anything herein to the contrary, to the fullest extent permitted by law for all design professional services arising under this Agreement, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs which arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant. 12. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "C" attached hereto and incorporated herein as though set forth in full. 13. INDEPENDENT CONSUL TANT (a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant in connection with performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 14. UNDUEINFLUENCE Consultant declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of Page4 Item 8.l. - Page 7 this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST (a) Subject to the exceptions listed in section 10, all information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. (b) Consultant shall promptly notify City should Consultant, 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 person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: Page 5 .. I Item 8.l. - Page 8 To City: To Consultant: 18. ASSIGNMENT City of Arroyo Grande Steven Adams 300 E. Branch Street Arroyo Grande, CA 93420 Barnett Cox & Associates, Inc. Shari Clark 711 Tank Farm Road Suite 210 San Luis Obispo, CA 93401 The Consultant shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. 19. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in San Luis Obispo Superior Court. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Consultant agree that time is of the essence in this Agreement. 22. CONSTRUCTION The parties agree that each has had an opportunity to have their counsel review this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. The captions of the sections are for Page6 Item 8.l. - Page 9 convenience and reference only, and are not intended to be construed to define or limit the provisions to which they relate. 23. AMENDMENTS Amendments to this Agreement shall be in writing and shall be made only with the mutual written consent of all of the parties to this Agreement. 24. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE By: __________ _ Tony Ferrara, Mayor Attest: Kelly Wetmore, City Clerk Approved As To Form: David Hirsch, Assistant City Attorney CONSULTANT By: ___________ _ Its: ------------(Title) Page7 Item 8.l. - Page 10 EXHIBIT A SCOPE OF WORK Under the direction of the City, Consultant will serve as Agent of Record and consultant providing advertising, public relations, and marketing services on behalf of the client to communicate information about tourism in the city of Arroyo Grande. BCA will provide some or all of the services listed below: • Assist in developing marketing objectives and strategies. Commission research projects as deemed necessary to understand the Client's target market, product appeal and key message components. • Develop brand strategies, advertising campaigns and budget estimates based on the Client's marketing objectives and strategies. Where appropriate, BCA will provide measured objectives to monitor return on investment and campaign effectiveness. • Provide all creative, production, media planning and buying services. Development of communications campaigns using advertising commercials, ads, direct mail, brochures, Internet websites, social media, Apps, collateral, point-of-purchase, and other processes as required by the plan and as agreed to by the Client. Arrange photography, printing, display, publicity, etc., as needed. Carry through production in all aspects to completion. • Pinpoint and develop appropriate public and community relations opportunities relating to communications campaigns. Provide specialized services targeted to enhance the Client's brand and public image. • Provide continuous, as-needed, account service and consultation to ensure prompt completion of projects. • Develop and implement specialized areas of promotion as needed, such as internal communications, telemarketing, direct response, sales presentations, or incentive programs. • Maintain internal procedures that ensure budget control, prompt billing and quality control. • Provide regular contact reports on all meeting decisions, regular financial and project status reports. Page 8 Item 8.l. - Page 11 EXHIBIT B PAYMENT SCHEDULE Consultant shall be paid for actual work performed and shall complete the tasks set forth in Exhibit A Scope of Work for a total amount not to exceed Sixty Thousand Dollars ($60,000.00). Consultant shall invoice City at the following rates: Company Principals Account Management/Strategic Development Creative Services Web Design/Web Development Account Coordination/Production Services $175.00 per hour $120.00 per hour $120.00 per hour $140.00 per hour $80 per hour Material costs, including media, licensing fees, music fees, talent fees, production charges and handling charges where applicable, are not included in the hourly fees and may be subject to a surcharge. City may be subject to deposits on certain material costs or fees subject to vendor policies. City may be subject to deposits on certain material costs or fees subject to vendor policies. Consultant will serve as a commissionable agent on behalf of the City, with vendors used for the City's services, where commissions may be applicable. Consultant will invoice City no more than monthly. Invoices shall be sent to the Chamber of Commerce Executive Director. Each invoice will reference job orders, components, specific services, media costs, production costs, fees and material expense and sales tax where applicable. City shall mail payment to Consultant for the net amount of uncontested invoices no later than thirty (30) days after receipt of each invoice by the City. Any past due balances under this Agreement shall bear interest at the rate of 1.5 percent per month (18.0 annual percentage rate) on unpaid balances. Page 9 Item 8.l. - Page 12 EXHIBITC INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in confonnance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy from CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence. Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of' the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Page 10 I Item 8.l. - Page 13 Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A. M. Bests rating of A-or better and a minimum financial size VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all Consultants, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Consultants and subcontractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any Consultant or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement Page 11 _J Item 8.l. - Page 14 and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Consultant's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At the time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increase benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirements Page 12 Item 8.l. - Page 15 in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Page 13 I Item 8.l. - Page 16 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Page 14 Item 8.l. - Page 17 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.l. - Page 18