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HomeMy WebLinkAboutCity Council - 6023 RESOLUTION NO. 6023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING INSURANCE AND INDEMNITY REQUIREMENTS FOR CONTRACTORS, PERMIT APPLICANTS, AND PROFESSIONAL SERVICES CONTRACTORS WHEREAS, there are persons and organizations performing services in and for the city ("CONTRACTORS") , permit holders ("PERMIT HOLDERS") , and design, engineering, and other professional consultants ("PROFESSIONAL SERVICES CONTRACTORS") who are engaged in various activities in the city, thereby subjecting the city to substantial risk of liability for damage to property and injury to persons; and, The city desires such persons and organizations to maintain insurance naming the city, its officers, and employees as additional insureds, and indemnifying the city from loss; and, The city desires to establish liability, workers ' compensation and employers' liability insurance requirements for such persons and organizations, and in appropriate ro riate cases a procedure for the waiver thereof; and, The city desires to establish internal staff responsibility for the administration of the insurance required by this Resolution and delineate the authorit y to make adjustments to requirements based upon unique and unusual circumstances . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the insurance coverage and indemnity required of all CONTRACTORS, PERMIT HOLDERS and PROFESSIONAL SERVICES CONTRACTORS, shall be as follows : � -1- SECTION I . PERSONS AFFECTED, AS CONTRACTORS, PROFESSIONAL SERVICES CONTRACTORS AND PERMIT HOLDERS A. DEFINED AS• 1. CONTRACTORS and PROFESSIONAL SERVICES CONTRACTORS are any persons or entities who contract with the city and/or provide goods or services to the city. 2 . PERMIT HOLDERS are those persons or entities who make application to the city for any: a. building permit for work involving the public right of way (see Section II in all other cases) , b. use of or encroachment upon any public street, waterway, pier, or city property. B. COVERAGE REQUIRED 1. General Liability a. Combined single limit bodily injury, and property damage, including completed operations liability and blanket contractual liability and, where products are furnished products liability: Minimum limits of $1, 000, 000 per occurrence. b. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1, 000, 000 and the policy holder shall give the city notice of any known depletion of limits. -2- 6023 C. Claims made policies are not acceptable. d. Any self-insured retentions in excess of $10,000 shall be approved by the Risk Manager. 2 . Workers ' Compensation and Employers ' Liability In accordance with the applicable state statutes with limits in the case of employers ' liability in amounts not less than: a. $100, 000 bodily injury by accident, each occurrence, AND b. $100,000 bodily injury by disease, each employee, AND C. $250,000 bodily injury by disease, policy limit. 3 . Professional Liability Insurance a. Coverage. CONTRACTORS and PROFESSIONAL SERVICES CONTRACTORS providing professional services to the city shall provide evidence of professional liability insurance in amounts covered: i . as required by individual contract; or ii . a minimum of $500,000 per occurrence and in the aggregate. b. Claims made policies are acceptable. C. CERTIFICATE OF INSURANCE 1. Form Evidence of insurance coverage and limits required by the city shall be furnished to the -3- 6023 city on the "Accord" or similar form approved by the City Attorney. 2. Approval of Certificate Prior to commencement of any work or the issuance of any permit, certificates shall be approved by the City Attorney. 3 . Additional Insured Endorsements Except as provided in Section F.3, a separate copy of an additional insured endorsement to each contractor' s liability policy, naming the city, its officers and employees as additional insureds shall be provided to the City Attorney for approval prior to any payment to a CONTRACTOR. 4 . Cancellation All endorsements and certificates shall promise to provide for a 30-day written notice of cancellation to the city. D. INDEMNITY 1. CONTRACTORS and PERMIT HOLDERS, as defined in Section I .A.2 (a) and (b) above, shall be required to indemnify city, its officers and employees from liability, pursuant to the city' s indemnity agreement attached hereto and incorporated herein by this reference as Exhibit "A" . 2 . PROFESSIONAL SERVICES CONTRACTORS shall use Exhibit "B" also attached hereto and incorporated by this reference. -4- 6023 3 . Bids Each v'ac invitation to bid shall include the approved indemnity form as a part of the bid package. E. WAIVERS The city may, by contract approved by the City Council, modify or waive any and all of the above requirements in appropriate cases upon the recommendation of the City' s Risk Manager and Administrator. F. EXCEPTIONS• 1. Products liability coverage shall not be required of any PROFESSIONAL SERVICES CONTRACTORS. 2 . Persons or organizations selling goods only to the city shall be required to meet all insurance requirements, except where the city receives delivery at the place of sale or by common carrier in which case only products liability insurance shall be required. 3 . Additional Insured Endorsements: a. Shall not be required for Professional Liability; and b. In the case of all other contractors, endorsements may be deferred for a period not to exceed 60 days based upon immediate need as recommended by the department director and approved b the Risk pp y Manager in which case the certificate of insurance shall be accepted without a separate endorsement during such 60 day period. -5- 6023 SECTION II . BUILDING PERMIT APPLICANTS. WHERE NO WORK IN THE PUBLIC RIGHT OF WAY IS INVOLVED Applicants for private building permits, where no work in the public right of way is involved, shall only be required to provide Workers ' Compensation coverage as reflected in Section I .B.2 above. RESOLUTION 5999 and all other RESOLUTIONS in conflict herewith are hereby repealed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof, held on the 15L=h day of 1989 . Mayor ATTEST: zo' . 44#r:�� City Clerk APPROVED AS TO CONTENT: APPROVED AS TO FORM: City Administrator City Attorney APPROV ITIA N EPARTMENT: Di-r or of Ad ' strative ery ces -6- '0U23 EXHIBIT "A" TO RESOLUTION NO. 6023 INDEMNIFICATION, DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, indemnify and hold and save harmless CITY, its officers, and employees against any and all liability, claims, judgments, costs and demands, however caused, including those resulting from death or injury to CONTRACTOR' S employees and damage to CONTRACTOR' S property, arising directly or indirectly out of the obligations or operations herein undertaken by CONTRACTOR, including those arising from the passive concurrent negligence of CITY, but save and except those which arise out of the active concurrent negligence, sole negligence, or the sole willful misconduct of CITY. CONTRACTOR will conduct all defense at its sole cost and expense. CITY shall be reimbursed by CONTRACTOR for all costs or attorney' s fees incurred by CITY in enforcing this obligation. 6023 EXHIBIT "B" TO RESOLUTION NO. 6023 PROFESSIONAL SERVICES CONTRACTORS shall indemnify and save and hold harmless CITY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this agreement by PROFESSIONAL SERVICES CONTRACTORS, its officers or employees . -8- 6023 Res. No. 6023 STATE OF CALIFORNIA COUNTY OF ORANGE 3 ss: CITY OF HUNTINGTON BEACH I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the i_�th day of May 19 89 , by the following vote: AYES: Councilmembers: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-offino er of the.City Council of the City of Huntington Beach, California