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HomeMy WebLinkAboutCarl Warren & Co. - 2017-03-06Dept. ID HR 18-005 Page 1 of 2 Meeting Date: 2/20/2018 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/20/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Michele Warren, Director of Human Resources SUBJECT: Approve and authorize extension of a Professional Services Contract with Carl Warren & Co. for an additional two years. Statement of Issue: The City of Huntington Beach maintains a program of self-insurance for general liability pursuant to the California Tort Claims Act. The City desires to retain the services of Carl Warren & Co. to provide assistance in administering this program. This item went to Council on March 6, 2017, and was approved for an initial one (1) year period with the option to renew for two (2) additional one (1) year terms for a total of three (3) years. Financial Impact: The contract, in an amount not to exceed $315,000.00 (over three years), will be paid from appropriations in Business Unit 55230502.69365 liability insurance fund. Recommended Action: Approve and authorize an extension of "Professional Services Contract Between the City of Huntington Beach and Carl Warren & Co. for Liability Claims Administration" for an additional two (2) years (two consecutive one-year renewals) pursuant to City Council action of March 6, 2017; and, delegate authority to the City Manager to execute any extensions thereto. Alternative Action(s): Allow Carl Warren & Co. to continue to provide administrative services for liability claims for one year (through March 2019) and direct staff to re -launch RFP process to obtain proposals from qualified firms. Analysis: The City previously issued a Request for Proposals for a public sector third -party administrator (TPA) for liability claims administration services. The invitation to bid was posted on the City's PlanetBids website on December 15, 2016. According to the RFP, a qualified TPA was required to demonstrate that all services will be performed in a manner commensurate with the highest standards of professionals in the industry; have a minimum of five (5) years experience administering claims for a public entity with a population of at least 50,000 and that provides public safety (Police and Fire) services. The TPA was also required to have an electronic database capable of producing specialized ad hoc reports in addition to any reports required by any reporting entities, such as the excess insurance carriers. Finally, the TPA was to demonstrate the ability to successfully manage a transition from the current TPA and provide a plan to ensure achievement of this requirement. HB -67- Item 4. - 1 Dept. ID HR 18-005 Page 2 of 2 Meeting Date: 2/20/2018 There were four respondents: Carl Warren & Company, Hazelrigg Claims Management Services, York Risk Services Group, and AdminSure. A panel of experienced risk management professionals, including two external risk managers/directors, reviewed each of the responses received and selected Carl Warren and Company as the most responsive vendor to act as the City's TPA, Carl Warren & Co. provides claims handling services on claims against the City, its officers, agents and employees. Services include, but are not limited to: Receipt of claims, examination and investigation of accident and incident reports, claims and/or cases which are, or may be, the subject of claims. Carl Warren & Co. also provides claims adjusting services, administrative services, and legal services as outlined in the contract. The City has utilized Carl Warren & Co. for many years and has been satisfied with their services. BICEP, the City's joint powers authority, also utilizes Carl Warren & Company, providing continuity of service through the City's BICEP coverage layer. Environmental Status: N/A Strategic Plan Goal: Enhance and Maintain City Service Delivery Attachment(s): 1. Agreement between the City of Huntington Beach and Carl Warren & Co. 2. Professional Services Ranking Forms 3. Insurance Waiver and Certificate of Insurance Item 4. - 2 HB -68- 1--ATTACHMENT #1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND CARL WARREN AND COMPANY FOR LIABILITY CLAIM INVESTIGATION AND PROCESSING THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and CARL WARREN AND COMPANY, a California Corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide liability claim investigation and processing services; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates &Yaticicy, Sr h1G,,,IGt ems, who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 17-5647/152457/1)0 Page 1 of 14 HB -69- Item 4. - 3 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM: TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on*lil ti\---, V-) , 2017 (the "Commencement Date"). This Agreement shall automatically terminate one (1) year from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than one (1) year from the Commencement Date. This Agreement may be extended for two additional one-year terms upon written approval by both parties. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed One Hundred Five Thousand Dollars ($105,000.00) per year for a total not to exceed sum of Three Hundred Fifteen Thousand Dollars'($315,000.00) if the Agreement is extended, as set forth herein. 17-5647/152457/DO Page 2 of 14 Item 4. - 4 HB -70- 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole 17-5647/152457/DO Page 3 of 14 HB -71- Item 4. - 5 negligence or witlfiil misconduct of CITY. CONSULTANT will conduct all defense at its sole costs and expense and CITY shall approve selection ofCONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. INSURANCE REQUIREMENTS FOR CONSULTING SERVICES General Liability with endorsements, Automobile Liability, Workers' Compensation and Employer's Liability and Professional Liability certificates are required. Please see below for the minimum requirements. A. General Liability: Coverage shall be at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate, one million dollars ($1,000,000) products and completed operations aggregate, for bodily injury, personal injury, and property damage. General Liability policies shall provide or be endorsed using Insurance Services Office forms CG 20 10 or other forms as appropriate to provide the City and its officers, elected or appointed officials, employees, agents and volunteers additional insured status under such policies. An endorsement providing completed operations coverage to the additional insured, ISO form CG 20 37, is also required. 2. The General Liability policy may not include deductibles greater than Ten Thousand Dollars ($10,000) per occurrence or self -insured retentions without the prior written approval of the City. 17-5647/152457/Do Page 4 of 14 Item 4. - 6 HB -72- B. Automotive Liability: Coverage shall be at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than One Million Dollars ($1,000,000) combined single limit for each accident. 1. The Auto Liability policy may not include deductibles greater than Ten Thousand Dollars ($10,000) per occurrence or self -insured retentions without prior written approval of the City. C. Workers' Compensation and Employer's Liability: Coverage shall be as required by the State of California (Statutory Limits) and Employer's Liability Insurance with a limit of not less than One Million Dollars ($1,000,000) for bodily injury by accident or disease. D: Professional Liability: Coverage shall be provided with a minimum limit of One Million Dollars ($1,000,000) per claim and in the aggregate. Self -insured Retentions or deductibles in excess of Ten Thousand Dollars ($10,000), or alternative forms of providing coverage, must be approved by the City. 1. The policy inception date, continuity date, or retroactive date shall coincide with or precede the professional services contractor's start of work. 1 The professional services contractor shall maintain continuous coverage through a period of not less than three years after completion of the services required by this agreement, or will purchase an extended 17-5647/152457/DO Page 5 of 14 HB - 73- Item 40 - 7 reporting endorsement to an existing policy to cover this same period of three years after completion. 2. The professional services contractor shall maintain continuous coverage through a period not less than three years after completion of the services required by this agreement, or will purchase an extended reporting endorsement to an existing'policy to cover this same period of three years after completion. E. General Conditions L For any claims related to this Agreement or services provided hereunder, the Contractor's (hereafter including licensees, lessees and professional service providers) insurance coverage shall be primary insurance as respects the City, its officers, elected or appointed officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, elected or appointed officials, employees, agents and volunteers shall be in excess of the Contractor's insurance and shall not contribute with it. 2. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, elected or appointed officials, employees, agents and volunteers. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 17-5647I1524571DO Page b of 14 Item 4. - 8 H B -74- 4. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City, its officers, elected or appointed officials, employees, agents and volunteers, or shall specifically allow Contractor, or others providing evidence of insurance in compliance with these specifications, to waive their right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its sub -consultants. 5. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary. Any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. 6. Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City, nor does it waive any rights hereunder. 7. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits'or other requirements, or a waiver of any coverage normally provided by any insurance. 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 17-5647/152457/DO Page 7 of 14 KB - i 5 _ Item 4. - 9 any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 8. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 9. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 10. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. 17-5647/152457/DO Page 8 of 14 Item 4. - 10 HB -76_ CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, reports, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 17-5647/152457/DO Page 9 of 14 HB -77- Item 4. - 1.1 13. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15, CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U.S. certified mail -return receipt requested: 17-5647/152457/DO Page 10 of 14 Item 4. - 12 HB -78- TO CITY: City of Huntington Beach ATTN: Patti Williams 2000 Main Street Huntington Beach, CA 92648 17, CONSENT TO CONSULTANT: Carl Warren & Company 11840 Pierce Street, Suite 100 Riverside, CA 92505 Tel: (657) 622-4200 Fax: (855-683-3053 When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18, MODIFICATION No waiver or modifications of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20, INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. 'No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other 17-5647/ 152457/DO Page 11 of 14 HB -79- Item 4. - 13 whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and whenever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, to be deemed an original, Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any Iegal services expenses incurred by CONSULTANT. 24, ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall 17-5647/152457/DO Page 12 of 14 Item 4. - 14 HB -SO- bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 17-5647/152457/DO Page 13 of 14 HB -81- Item 4. - 1.5 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Attomey, This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. CONSULTANT: Carl Warren & Company By: / -- i print naive ITS: (circle one) Chainn resident/Vice President AND By: print name ITS: (circle one) Secretary hief Pmaneiai Officer sst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Cal' rnia m Mayor Q A y Za4,2 l Ci y Clerk/ '1 1 Director of Human Resources APPROVED,A'9ZO FORM: City Attom Y D>Go ?Avv \n- `w REVIE E D APPROVED: C ty/Manager 17-5647/152457/DO Item 4. m 16 Page 14 of 14 I- [ 11 -b2- EXHIBIT A HB -83- Item 4. - 17 EXHIBIT "A" SCOPE OF WORK The Consultant is to provide the City with the following services: A. Program Administration: Consultant shall: Provide professional and technical staff to perform General Liability Claims Administration services with the assignment of qualified personnel, including at least one principal claims examiner, to efficiently and effectively meet the scope of work listed in this section. Such assignment shall he subject to approval by the City. 2. Represent the City in all matters related to the set-up, investigation, adjustment, processing, negotiation and resolution of liability claims against the City. 3. Inform the City of changes or proposed changes in statutes, rules and regulations and any other case law affecting its General Liability Program. 4. Provide information and guidance regarding the general liability claims program and specified claims. Provide copies of file correspondence and documentation as requested by City. 6. Inform City of problem areas and/or trends, both potential and perceived, and provide recommendations and/or solutions to address problem areas and/or trends. 7. Attend appointments, including but not limited to: meetings, conferences, Court appearances and scene investigations at the request of the City. Provide 24-hour on -call service by providing the City with contact information for key personnel. This may include, but is not limited to, responding to an incident scene and/or conducting investigations. 9. Conduct risk management related seminars for department heads and/or City, staff at the request of the City. 17-5671 /152460/DO 1 Item 4. - 18 HB -84- 10. Attempt to settle or recommend denial of claims. 11, Prepare necessary reports of claims filed for the City's primary and excess carriers. 12. Establish and maintain a file for each potential claim. 13. Prepare a Monthly Status Report on all claims including litigated claims. Copies of the report shall be furnished to both the city Attorney and Risk Manager within twenty (20) days of the close of each calendar month. The Monthly Status Report shall include, but is not limited to, the following: The details of each claim. This includes a list of all claims segregated by policy year showing the following: policy year, case number, claimant's name, cause of loss description, date of loss, type of loss, status, losses paid to date, reserves, and total incurred; the outstanding reserves of each claim and detail of all claim payments during the month; investigative costs; claims opened and closed during the month; and any active litigation. B. Claims Administration Consultant shall provide administrative services that include, but are not limited to: At the direction of the City, claimants or their attorneys will be contacted promptly and appropriate contact will be maintained until the claim is closed. Claimants or their attorneys will receive a telephone call from Consultant or have a contact letter mailed to them from Consultant within 48 hours of receipt of claim by Consultant. 2. Obtain estimates of automobile damage when appropriate. 3. Review the status of claims and adequacy of reserves on all active cases at least every 90 days. 4. Provide first investigative report to Risk Management within thirty (30) days of receipt of claim. 17-567 1/ 15246a/Do 2 H B -85- Item 4. - 19 Provide narrative reports when recommending rejection or settlement of a claim, when a claim is going to trial, or when any other significant events have occurred or will occur. Reports must be clear and concise. 6. Negotiate settlements for submittal to the Risk Manager for approval. 7. All files will be diaried at appropriate intervals to allow for timely completion of required activity. 8. Content of all files will be in chronological order with correspondence in the designated section. 9. File will clearly and concisely document action taken on the claim. 10. Telephone calls will be returned within 24 hours. If the staff member called is not available within this timeframe, another designated staff member will return the call. 11. Review all new claims for liability and provide an assessment of liability to the City no later than thirty (30) days from receipt of loss notice to City. 12. Identify and notify possible co-defendants. 13. Tender claims to other potential responsible parties. 14. Process all claims in accordance with City's instructions and policies. 15. Have translators available to assist with non-English speaking claimants and/or witnesses. 16. Maintain a procedure to alert necessary persons of important dates with respect to the claims. 17. If the possibility of subrogation exists, place the tortfeasor on notice of the City's subrogation rights and work with Risk Management and/or the City Attorney's Office to draft Iegal documents to recover monies spent on a claim. 18. Report to BICEP (Excess Liability Pool) in accordance with policy provisions. 17-5671 / 152460/DO 3 Item 4. - 20 HB -86- 19. Comply and meet with any excess carrier claims administration requirements. C. Investigations Within ten (10) days of receipt of claims, unless otherwise requested by the Risk Manager, take statements of facts from claimants when not represented by an attorney. Statements will be preserved by recording or taking handwritten signed statements. 2. Further investigate claims where the initial review indicates that it is warranted. Further investigation may include, but is not limited to: on -sight investigation, photographs, interviewing witnesses and taking signed or recorded statements, verification of damage or loss, taking measurements, obtaining maps/diagrams from the City or other sources, obtaining medical releases, police reports, internal operations investigations, paramedic reports, marine safety department reports, building permits, or other records as required. If an attorney is involved, direct all communication to the claimant's attorney regarding the investigation, negotiation, and evaluation of any claims leading to a settlement. 4. Report all bodily injury claims to Index Bureau. Conduct bureau searches for repeat claimants. Conduct additional Index. Bureau searches at request of the City. Obtain approval from City before engaging the services of an outside vendor for an investigative assignment. D. Litigation Management Consultant shall provide Litigation Management services that include, but are not limited to: 17-5671/152460/DO Provide City Attorney's Office with transmittal letter outlining the status of the case, results of investigations, primary issues, requested action, a complete copy of the file and any documentation within fourteen (14) days of receipt of lawsuit with a copy to the Risk Manager. Maintain liaison with the City Attorney's Office and defense counsel and provide such investigation as required during the entire litigation process, including but not limited to: additional investigations for pretrial and trial that may be requested by either the City Attorney's Office or defense counsel. 0 HB -87- Item 4. - 21 3. Obtain approval from City prior to agreement or settlement. 4. Obtain a fully executed release on all settlements and dismissals. 5. Attend Settlement Conferences, mediation or arbitrations as requested. 6. Assist the City Attorney and defense counsel in preparing and/or answering discovery as requested. 7. Assist City personnel in Small Claims Court actions filed by and against City, including but not limited to: obtaining witness information, evidence, assistance in preparing the case for trial, and appearance at the trial if deemed necessary by the City. 17-5671 /1524601DO 5 Item 4. - 22 HB -88- EXHIBIT B HB -89- Item 4, - 23 I � � F. FEE PROPOSAL The City of Huntington Beach desires a one (11 year proposal that may be extended up to two (2) years. Describe your firm's fee schedule on an annual basis. '.`YE°A�Rt �'::; , :.•.:;, �.._ �,,;S':ERVifGE'fFEE -" .: • Option Year I Option Year *Claims in excess of 150 will be billed at flat fee of $575 for each non -litigated claim and $875 for each litigated claim. Fee includes inputting data for claims that are handled in-house. Fixed Annual Service Fee includes the following services: •:• Claims Management •:• Data Conversion •:• Account Management •<• Mileage •:• Data Management •:• Photographs •:• Annual Stewardship Report •:• Office Expenses •:• Trust Account Maintenance •;• Claims Setup •:• ISO Indexing •:• Banking Fees •,• MMSEA Reporting o• Risk Management Information •:• 1099 Reporting System (RMiS) Management and •:• Litigation Management Access The following services are not included: 11111 ., Allocated Expenses At Cost Outside Investigations At Cost Surveillance/Fraud At Cost Additional RMIS Users 3 included $250 each per year Custom Report Development- 250 per hour Subro ation if utilized 21 % of net recovery Item 4. - 24 ' H B -90- ,.. .. °: �_�,. ;� .. � �i ;;. PROFESSIONAL AND SERVICES SERVICE: Liability Claims Administration SERVICE DESCRIPTION: To provide assistance in administering the City's program of self-insurance for general liability pursuant to the California Tort Act. VENDOR: Carl Warren & Company OVERALL RANKING: 'i SUBJECT MATTER EXPERTSIRATERS: 1. Director of Systemwide Risk Management 2. Director of Human Resources and Risk Management 3. Risk Manager MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1,105 Total Welahted Maximum Criteria Score Score Compliance with RFP 60 75 Technical Approach 325 375 Qualifications 275 375 Clarity 120 150 Local Vendor Preference NIA 75 Cost 325 375 References and Background 70 75 Total L DUE DILIGENCE REVIEW • Ranking:I • Has provided liability claims administration services for the City for over 20 years • Extensive experience with cities including, Newport Beach, Costa Mesa, Ontario and many others • Extensive experience providing claim administration services for various joint power authorities, Including BICEP and CJPIA • Extensive experience with reporting requirements MW • $96,000 for the first yeari(`l50 claims) • $575 far each additional non -litigated claim and $875 for each additional litigated claim • Optional year 2 $98,880 • Optional year 3 $101.846 Item 10. - 3 -QQ- HS -91- Item 4. - 25 PROFESSIONAL AND SERVICES SERVICE: Liability Claims Administration SERVICE DESCRIPTION: To provide assistance in administering the City's program of self-insurance for general liability pursuant to the California Tort Act. VENDOR: Vendor #2 OVERALL RANKING: 2 SUBJECT MATTER EXPERTS/RATERS: 1. Director of Systemwide Risk Management 2. Director of Human Resources and Risk Management 3. Risk Manager MINIM UM'QUALIFICATIONS REVIEW • Written Proposal Score: 1,012.50 Y i.. 1+F -vA:a'av�_. TYt.`ry 1.1N: ..u. ;.� 1tlj•' Et�i©OR'#2�::�Mpymyimum�Qua[ifieations�Reuaew' - - Total Weighted _ Maximum Criteria Score Score Compliance with RFP 55 75 Technical Approach 300 375 Qualifications 250 375 Clarity 120 150 Local Vendor Preference N/A 75 Cost 287.50 375 References and Background 55 75 Total I. DUE DILIGENCE REVIEW • Ranking:2 ;UEIDOR 2-Summaryorf.Re�tew `' 2;; • Has provided liability claims administration services for the following cities; Manhattan Beach, Redondo Beach, Hermosa Beach, Inglewood and Pomona. • Proposed claims team has a wealth of experience with pubilc agencies. • However, did not demonstrate much experience with joint powers authorities and/or insurance pools. �WEND4R42 Pi ei uwF •' ::t r�sr� iZ.F_S`.', tc,''•�e•t'�i �M.�- _�.'_..n ;ia i ila^.i=4:.. _� n • $105,000 per year Data conversion and transfer fee $2,500 _Qo_ Item 10. 4 Item 4. - 26 HB _922_ ATTACHMENT At "RL> V CERTIFICATE OF LIABILITY INSURANCE DATE (/2018 YYYY) o2/1a�2o18 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 pollcy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Marsh Risk & Insurance Services 17901 Von Karman Avenue, Suite 1100 (949) 399-5800; License #0437153 Irvine, CA 92614 Attn: NewponDeach.CertRequest@marsh.com/F: 212-948-4323 801519-CWCL-CybLo-17-18 CONTACT NAME: PHONE IAIC. No Ext No): E-MAIL ADDRESS:_ INSURERS AFFORDING COVERAGE NAIC N INSURER A: Atlantic Specialty Ins Co 27154 INSURED Carl Warren &Company INSURER-e :_Underwriters at LloydslHiscox 10200 17862 E.17th St., Suite#111 INSURER C : INSURER D : Tustin, CA 92780 INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: LOS-002093880-28 REVISION NUMBER: 14 THIS IS TO CERTIFY THAT THE POLICIES 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 INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL D SUHR D POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MMIDD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY X 7120084280005 0510412017 0510412018 EACH OCCURRENCE $ 1,000,000 IRENTECLAIMS-MADE � OCCUR DAMAGE TO PREM SES (Ea occur ence) $ 1,000,000 MED EXP (Any one person) $ 10,000 PERSONAL & ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP/OPAGG $ 2,000,000 POLICY JECT PRO a LOC $ OTHER: A AUTOMOBILE LIABILITY 7120084280005 0510412017 05/0412018 COMBINED COMBINED SINGLE LIMIT $ 1,000 000 BODILY INJURY (Per person) $ X ANY AUTO BODILY INJURY (Per accident) $ OWNED SCHEDULED AUTOS ONLY AUTOS X HIRED X NON -OWNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE Per accident $ COMPICOLL REDS: $ 1,000 UMBRELLALIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DEO I I RETENTION $ $ A WORKERS COMPENSATION AND EMPLOYERS'LIABILITY YIN ANYPROPRIETORIPARTNERIEXECUTtVE OFFICERlMEMBER EXCLUOED7 (Mandatory in NH) NIA 4060390710006 0610412017 05104/2018 X PER OTH- STATUTE ER E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE -POLICY LIMIT $ 1,000,000 IF yes, describe under DESCRIPTION OF OPERATIONS below B Primary E&O MPL174739517 05/0412017 0510412018 E&O Limit - Each ClaimlAgg 3,000,000 SIR 50,000 DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, maybe attached If more space Is required) City of Huntington Beach, its Officers, Elected or Appointed Officials, Employees, Agents and Volunteers are included as additional insured (except workers' compensation) where required by written contract. Waiver of subrogation is applicable where required by written contract and subject to policy terms and conditions. CERTIFICATE HOLDER CANCELLATION City of Huntington Beach SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 2000 Main Street THE EXPIRATION DATE THEREOF, NOTICE WILL. BE DELIVERED IN Huntington Beach, CA 92648 ACCORDANCE WITH THE POLICY PROVISIONS, AUTHORIZED REPRESENTATIVE of Marsh Risk & Insurance Services Monique Sabalax"t, O 1988-2016 ACORD CORPORATION, A" ..,,."" ACORD 25 (2016103) The ACORD name and to FIB -9')- stered marks of ACORD Rem 4. — 27 AGENCY CUSTOMER ID: 801519 LOC #: Irvine A� ® ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY Marsh Risk & Insurance Services NAMED INSURED Carl Warren & Company 17862 E. 171h St., Suite #111 Tustin, CA 92780 POLICY NUMBER CARRIER NAIC COQE EFFECTIVE DATE: _.-__ ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance Additional Coverage: Network Security and Privacy Protection Coverage Carrier: Steadfast Insurance Company Policy #: SPRO18131401 Policy Term: 7-30-2017 to 7-30-2018 Limits of Liability I Retentions: Security and Privacy Liability Coverage: $3,900,000 Each Claim and All Claims, subject to $50,000 Retention Regulatory Proceeding Defense Coverage: $3,000,000 Each Claim and All Claims, subject to $50,000 Retention Privacy Breach Costs Coverage: $3,000,000 Each Claim and All Claims, subject to $50,000 Retention for each Privacy Event Maximum Policy Aggregate Limit of liability: $3,000,900 Item 4. - 28,'ro1> © 2008 ACORD CORPORATION. All rights reserved. The ACORD name and Ioa HB -94- ctered marks of ACORD POLICY CHANGE 6 Effective 0.5 / 0 4 / 2 017 , this endorsement forms a part of Policy No, 712 - 0 0 - 8 4 - 2 8- 0 0 0 5 (At the time stated to the policy) Issued to CARL WARREN & COMPANY (See ASC 00 11 01 98, Schedule 2) 1.7B62 17TH ST TUSTIN, CA 92780-2156 Producer: MARSH USA, INC. by Atlantic Specialty Insurance Company In Accordance with this Policy Change Your Premium is Revised as follows: No Change in Premium This Policy Change Amends the Following Policy Provisions: Liability Schedule, VCG 100 10 98 Add Additional Insured Designated Person or Organization, CC- 20 26 04 13: CITY OF HUNTINGTON BEACH 2000 MAIN ST HUNTINGTON BEACH, .CA 92648-2702 RE: THE CITY OF HUN.TINGTON BEACH, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS 3 4--30-0026 02/1.4/2018 MEE, CPW PR, 1..000 ASC 00 10 01 98 E-INSTJ Ff B -95- POLIC' Item 4. - 29 Page t or l Policy Nuinber: 7 t.2-00- 84-28-0005 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. C 11 :1 �. � a i *' r a ► � This endorsement modifies insurance provided under°the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM The following schedule lists the coverage extensions provided by this endorsement. Refer to the individual provi- sions to determine the extent of your coverage. SCHEDULE OF COVERAGE EXTENSIONS 1. Additional Insured — Broad Form Vendors 10. Coverage Territory —Worldwide 2. Additional Insured — by Contract, Agreement or 11. Duties in Event of Occurrence, Claim or Suit Permit relating to: 12. Expected or Intended Injury (PD) o Work performed by you 13. Incidental Medical Malpractice o Premises you own, rent, lease or occupy 14. Medical Payments o Equipment you lease 15. Mobile Equipment Redefined 3. Aggregate Limit Per Location 16. Newly Formed or Acquired Organizations 4. Alienated Premises 17. Non -Owned Aircraft S. Blanket Waiver of Subrogation 7 8. Non -Owned Watercraft 6. Bodily Injury Redefined- Mental Anguish 19, Personal and Advertising Injury — Non 7. Broadened Named Insured Employment Related Discrimination 8, Broadened Property Damage 20. Personal Injury — Limited Contractual Liability o Borrowed Equipment Coverage o Customers' Goods 21. Product Recall Expense o Use of Elevators 22. Supplementary Payments Increased Limits 9. Broadened Property Damage Rented Premises 1. ADDITIONAL INSURED v BROAD FORM VENDORS Section II - Who Is An Insured is amended to include as an additional insured any person(s) or organization($) (referred to below as vendor) with whom you agreed in a written contract or agreement to provide insurance, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business, subject to the following additional exclusions: a. This provision 1. does not apply to: (1) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement, This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (2) Any express warranty not authorized by you; (3) Any physical or chemical change in the product made intentionally by the vendor; (4) Repackaging, except when unpacked solely for the purpose. of inspection, demonstration, testing or the substitution of parts under instructions from the manufacturer, and then repackaged in the original con- tainer; (5) Any failure to snake such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual'course of business, in connection with the distribution or sale of the products; (6) Demonstration, installation, servicing or repair operations, except such operations performed at the ven- dor's premises in connection with the sale of the product; (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or forthe vendor; or Item 4. ® 30'0507 °9 Includes copyrlghte H B -96- Insurance Services Office, Inc, Copyrf hMQ_, - . .. >n Insurance Group LLC INSURED Page t of g (8) "Bodily injury" or "property damage" arising out of the sole negligence, of the vendor for, its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (a) The exceptions contained in Subparagraphs 4, or 6.; or (b) Such inspections, adjustments, tests or servicing.as the vendor has agreed to make or normally un4 - dertakes to make in the usual course of business, in connection with the distribution or sale of the products. (9) Any vendor, person or organization if the "products -completed operations hazard" is excluded either by the provisions of the Coverage Form or by endorsement. b. This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. 2. ADDITIONAL INSURED — CONTRACT, AGREEMENT OR PERMIT. a. Section 11— Who Is An Insured is amended to include as an additional insured any person(s) or organiza- tions) with wham you agreed in a written contract, written agreement or permit to provide insurance such as is afforded under this Coverage Part, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omis- sions of those acting on your behalf: 1. In the performance of "your work" for the additional insured(s) at the location designated in the contract, agreement or permit; or 2. In the maintenance, operation or use of equipment leased to you by such persons) or organization(s), or 3. In connection with premises you own, rent, lease or occupy. This insurance applies on a primary or primary and non-contributory ba.sis,if that is required in writing by the contract, agreement or permit. b. the insurance provided to the additional insured herein is limited. This insurance does not apply: 1. Unless (a) the written contract, agreement or permit is currently In effect or becomes effective during the term of this policy; and (b) the contract or agreement was executed or permit issued prior to the "bodily injury", "property dam- fm age", or "personal and advertising injury"; 2. To any person or organization included as an Insured under the Additional Insured — Broad Form Ven- dors provision of this endorsement; 3. To any person or organization included as an insured by an endorsement issued by us and made part of this Coverage Part; 4. To any person or organization if the "bodily injury", "property damage", or "personal and advertising inju- ry" arises out of the rendering of or failure to render any professional architectural, engineering or survey- ing services by or for you including: (a) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. 5. To any: (a) Lessor of equipment after the equipment lease terminates or expires; or (b) Owners or other interests from whom land has been leased; or (c) Managers or lessors of premises if: (1) The "occurrence" takes place after you cease to be a tenant in that premises; or (2) the "bodily injury", "property damage", "personal and advertising injury" arises out of structural alterations, new construction or demolition operations performed by or on behalf of the manager or lessor. 6. To "bodily injury, or "property damage" occurring after: (a) All wont on the project (other than service, Maintenance or repairs) to be performed by or on behalf of the additional insured at the site of the covered operations has been completed; or HB -9 7_ Item 4. - 31 Page 2 of 8 Includes copyrighted rnateria, v, Services Office, Inc, VCG 2C_ rnnvr1nh19MQ Ont-Apnrnn In.uranca Grnun I_I..0 (b) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in perform- ing operations for a principal as part of the same project. c. Limits of Insurance applicable to the additional insured are those specified in the contract, agreement or permit or in the Declarations of this policy, whichever Is less, and fix the most we will pay regardless of the n umber of: 1, Insureds; 2. Claims made or "suits" brought, or 3. Persons or organizations making claims or bringing "suits". These Limits of Insurance are inclusive of and not in addition to the Limits of Insurance shown in the Declarations. 3. AGGREGATE LIMIT PER LOCATION a. Under Section Ill — Limits of Insurance, the General Aggregate Limit applies separately to each of your "locations" owned by or rented or leased to you. b. Under Section V —Definitions, the following definition is added: "Location" means premises involving the same or connecting lots, or premises whose connection is in- terrupted only by a street, roadway, waterway or right-of-way of,a railroad. d. ALIENATED PREMISES Paragraph j. (2) of 2. Exclusions of COVERAGE A — BODILY INJURY AND PROPERTY DAMAGE LIABIL- ITY is deleted and replaced with the following: (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those prem- ises and occurs from hazards that were known to you or should have been known to you, at the time the property was transferred or abandoned. S. BLANKET WAIVER OF SUBROGATION Section IV —Transfer of Rights of Recovery Against Others to Us Condition is amended to add the following: We will waive any right of recovery we may have against any person or organization because of payments we RW make for injury or damage arising out of your ongoing operations done under a written contract or agreement with that person or organization and included in "your work" or the "products -completed operations hazard". This waiver applies only to persons or organizations with whom you have a written contract, executed prior to the "bodily injury" or "property damage", that requires you to waive your rights of recovery, 6. BODILY INJURY REDEFINED — MENTAL ANGUISH Under Section V — Definitions, the definition of "bodily injury" is replaced by the following: "Bodily injury" means bodily injury, sickness, or disease sustained by a person, including mental anguish or death resulting from any of these at any time. 7. BROADENED NAMED INSURED Section 11 —Who is An Insured is amended to include as an insured the following; Any organization which is a legally incorporated entity in which you own a financial interest of more than 50 percent of the voting stock on the effective date of this endorsement will be a Named Insured until the 180" day or the end of the policy period, whichever comes first, provided there is no other similar insurance availa- ble to that organization. The insurance afforded herein does not apply to any entity which is also an insured under another policy or would be an insured under such policy but for its termination or the exhaustion of its limits of insurance. 8. BROADENED PROPERTY DAMAGE — BORROWED EQUIPMENT, CUSTOMERS' GOODS AND USE OF ELEVATORS The insurance for "property damage" liability is subject to the following: a. The Damage To Property exclusion under Section I Coverage A Is amended as follows: 1. The exclusion for personal property in the care, custody or control of the insured does not apply to "property damage" to equipment you borrow while at a job site and provided it is not being used by anyone to perform operations at the time of loss. Item 4. - 32 060709 Includes copyrightec,"B_ g .nsurance Services Office, Inc. Page 3 of 8 Copyright 2009, OneBeacon Insurance Group LLC 2. The exclusions for (a) Property loaned to you; (b) Personal property in the care, custody or control of the insured; and (c) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it do not apply to "properly damage" to "customers' goods" while on your premises nor do they apply to "property damage" arising from the use of elevators at premises you own, rent, lease or occupy, Subject to the Each Occurrence Limit, the most we will pay for "property damage" to "Customers' Goods" is $35,000 per "occurrence". b. Under Section V — Definitions, the following definition is added: "Customers' Goods" means goods of your customer on your premises for the purpose of being: 1. Repaired; or Used in your manufacturing process. c. The insurance afforded by this provision is excess over any other valid and collectible property insurance (including any deductible) available to the.insured whether such insurance is primary, excess; contingent or on any other basis. Any payments by us will follow the Other Insurance — Excess provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 9. BROADENED PROPERTY DAMAGE — RENTED PREMISES a, In the Damage To Property exclusion under Section I Coverage A, the exciusion for "property damage" to: Property you own, rent or occupy; does not apply to real property you rent or temporarily occupy with permission of the owner. b. In Section III — Limits Of Insurance, the Damage To Premises Rented To You Limit is amended as follows: Subject to the Each Occurrence Limit, $500,000 is the most we will pay under Coverage A for damages be- cause of "property damage" to any one premises while rented to you or occupied by you with permission of the owner. If any amount other than $500,000 is shown in the Declarations as the Damage To Premises Rented To You Limit, the amount shown in the Declarations will replace $500,000 as the Limit of Insurance provided for this coverage, c. The Insurance afforded by this Provision 9. is excess over any other valid and collectible property insurance (including any deductible) available to the insured whether such insurance is primary, excess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess Insurance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 10. COVERAGE TERRITORY— WORLDWIDE The definition of "coverage territory" is replaced by the following: "Coverage territory" means anywhere provided the insured's responsibility to pay damages must be de- termined in a settlement we agree to or in a "suit" on the merits brought within the United States of Ameri- ca (including its territories and possessions), Puerto Rico or Canada. 11. DUTIES IN THE EVENT OF OCCURRENCE, OFFENSE, CLAIM OR SUIT Section IV — Duties in The Event Of Occurrence, Claim or Suit is amended by adding the following para- graphs: a. The requirements that you must 1. notify us of an "occurrence" offense; claim or ".suit" and 2. send us documents concerning a claim or "suit" apply only when such "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 executive officer of the corporation or insurance manager, if you area corporation; or 4. A manager, if you area limited liability company.AlftL Page 4 of 8 includes copyrighted materia.H B y a Services Office, Inc. VCG 2( Item 4. _ 33 [,onvrinht 9r1M OneReacon Insurance Grouo LLG b. The requirement that you must notify us as soon as practicable of an "occurrence" or an offense that may result in a claim does not apply if you report an "occurrence" to your workers compensation insurer which later develops into a liability claim for which coverage is provided by this policy. However, as soon as you have definite knowledge that the particular "occurrence" is a liability claim rather than a workers compen- 10 sation claim, you must comply with the Duties In The Event Of Occurrence, Offense, Claim Or Suit Condition. 12. EXPECTED OR INTENDED INJURY (PROPERTY DAMAGE) The Expected Or Intended Injury exclusion under Coverage A Bodily Injury and Property Damage is re- placed by: "Bodily injury" or, "property damage" expected or Intended from the standpoint of the insured, This exclu- sion does not apply to "bodily injury" or "property damage" resulting front the use of reasonable force to protect persons or property. 13. INCIDENTAL MEDICAL MALPRACTICE — EMPLOYED PHYSICIANS, NURSES, EMrS AND PARAMEDICS a. Under Section Il—Who Is An Insured, the paragraph that excludes an employee or volunteer worker as in- sured for "bodily injury" or "personal and advertising injury" arising out of his or her providing or failing to pro- vide professional health care services does not apply to a physician, dentist, nurse, emergency medical tech- nician or paramedic employed by you if you are not engaged in the business or occupation of providing med- ical, paramedical, surgical, dental, x-ray or nursing services. b. The insurance afforded by this provision is excess over any other valid and collectible insurance whether such insurance is primary, excess, contingent or on any other basis. Any payments by us will follow the Other Insurance— Excess Insurance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 14. MEDICAL PAYMENTS — INCREASED LIMITS AND TIME PERIOD In the Insuring Agreement under Coverage C Medical Payments, the requirement that expenses are incurred and reported to us within one year of the date of the accident is changed to three years. a; The Medical Expense Limit is $15,000 per person or the amount shown in the Declarations as the Medical Expense Limit, whichever is greater. b. This provision 14. does not apply if Coverage C—Medical Payments is otherwise excluded either by the pro- visions of the Coverage Form or by endorsement. 15. MOBILE EQUIPMENT — SELF-PROPELLED SNOW REMOVAL, ROAD MAINTENANCE AND STREET CLEANING EQUIPMENT The following is added to the "mobile equipment" definition. - Vehicles maintained primarily for purposes other than the transportation of persons or cargo that are self- propelled vehicles of less than 1,000 pounds gross vehicle weight with the following types of permanently at- tached equipment.will be considered "mobile equipment": a. Snow removal; b. Road maintenance, but not construction or resurfacing; or c. Street cleaning. 16. NEWLY FORMED OR ACQUIRED ORGANIZATIONS Under Section it Who Is An Insured, the time period limitation for newly acquired or formed organizations Is replaced by: Coverage under this provision is afforded only until the end of the current policy period. 17. NON -OWNED AIRCRAFT a. The Aircraft, Auto Or Watercraft exclusion under Coverage A Bodily Injury And Property Damage Liabil- ity does not apply to an aircraft that is: 1. Hired, chartered or loaned with a paid crew; and 2. Not owned by any insured. b. The insurance afforded by this provision 17. is excess over any other valid and collectible insurance (includ- ing any deductible or Self Insured Retention) available to the insured, whether such insurance is primary, ex- cess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess Insur- ance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS, Item 4. — 34 060709 Includes copyrighte _..,_..,.1 ��..,surance Services Office, Inc. Page 5 of g Copyright 2009, One3eacon• Insurance Group LLG 18. NON -OWNED WATERCRAFT a. Section II —Who Is An Insured is amended to include as an insured for any watercraft that is covered by this policy, any person who, with your expressed or implied consent, either uses or is responsible for the use of a watercraft. However, no person or organization is an insured with respect to: 1. "Bodily injury" to a co -"employee" of the person operating the watercraft; or 2. "Property damage" to property owned by, rented, to, in the charge of or occupied by you or the employer of any person who is an insured underthis provision. b. In the exception to the Aircraft, Auto Or Watercraft exclusion under Coverage A Bodily Injury And Prop- erty Damage Liability, the limitation on the length of a watercraft is increased to 55 feet. c, The insurance afforded by this provision 18. is excess over any other valid and collectible insurance (includ- ing any deductible or Self Insured Retention) available to the insured, whether such insurance is primary, ex- cess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess insur- ance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 19. PERSONAL AND ADVERTISING INJURY — NON -EMPLOYMENT RELATED DiSCRIMINATION The following is added.to the definition of "personal and advertising injury": Discrimination because of race, color, creed, national origin, age, sex or physical disability, where insurance therefore is not prohibited by law, but only if such discrimination is a. not done intentionally by or at the direction of: (1) the insured; or (2) any executive officer, director, stockholder, partner or member of the insured staff; and b. not directly or indirectly related to the employment, prospective employment or termination of employment of any person or persons by any insured. The insurance afforded under this provision does not apply to fines or penalties, or that portion of any award or judgment resulting from the multiplication of actual damages under state or federal law. This provision does not apply if Coverage B — Personal and Advertising Injury Liability is otherwise ex- cluded either by the provisions of this Coverage Form or by any endorsement. 20. PERSONAL INJURY — LIMITED CONTRACTUAL LIABILITY COVERAGE a. The Contractual Liability exclusion of paragraph 2. Exclusions of Section i — Coverage B — Personal And Advertising Injury Liability is replaced by the following: 2. Exclusions This insurance does not apply to: e. Contractual Liability "Personal and advertising injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to: (1) Liability for damages that the insured would have in the absence of the contract or agreement; or (2) Liability for "personal and advertising injury" if: (a) The liability pertains to your business and is required by a signed contract or agreement in which you assume the tort liability of another. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement; (b) The "personal and advertising injury" occurs subsequent to the execution of the desig- nated contract or agreement; and (c) The "personal and advertising injury" arises out of the offenses of false arrest, detention or imprisonment. 21, PRODUCT RECALL EXPENSE a. With respect to this Provision 21., the Recall Of Products, Work Or Impaired Property exclusion under Coverage A Bodily Injury And Property Damage Liability is deleted. b. The following is added to Section III — Limits Of Insurance section: 1-413 _lai- Item 4. - 35 Page 6 of 8 includes copydghted matenui ut i„zuiai,. e services Office, Inc. VCG 2_ P^v %jrinhf `)A00 nnaFtaarnn in-qum mo Cdrnun I.,t.G El :1 1 �J 1. The Limits of Insurance shown in the Product Recall Schedule and rules below fix the most we will pay regardless of the number of (a) Insureds; (b) "Covered recalls" initiated; or (c) Number of "your products" recalled. 2. The Product Recall Aggregate Limit is the most we will reimburse you for the sum of all "product recall expenses" incurred for all "covered recalls" initiated during the policy period. 3. Subject to 2. above, the Each Product Recall Limit is the most we will reimburse you for the sum of all "product recall expenses" arising out of any one "covered recall" for the same defect or deficiency. 4. Subject to 3. above, we will pay only the amount of "product recall expenses" in excess of the deductible amount shown in the Product Recall Schedule, Products Recall Schedule Limits of Insurance Product Recall Aggregate Limit $ 50,000 Each Product Recall Limit $ 25,000 Each Product Recall Deductible $1,000 If any limits and deductible other than those above are shown in the Declarations as the Products Recall Expense Limits, the amounts shown in the Declarations will replace the Limits of In- surance and deductible provided for this coverage. The.Limits of Insurance for this coverage apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for the pur- poses of determining the Limits of Insurance. c. The following is added to the Duties In The Event Of Occurrence, Offense, Claim Or Suit provision under Section IV — Conditions: You must see to it that the following are done in the event of an actual or anticipated "covered recall" that may result in "product recall expense": 1. Give us prompt notice of any discovery or notification that "your product" must be withdrawn or re- called, Include a description of "your product" and the reason for the withdrawal or recall; 2. Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance; 3. As often as may be reasonably required, permit us to inspect "your product" that demonstrates the need for the "covered recall" and permit us to examine your books and records. Also permit us to take damaged and undamaged samples of "your products" for inspection, testing and analysis; and permit us to make copies from your books and records; 4. Send us a signed, sworn, proof of loss containing the infomnation we requested to settle the claim. You must do this within 60 days after our request. We will supply you with the necessary forms; and S. Permit us to examine any insured under oath, while not in the presence of any other insured and at such times as may reasonably be required, about any matter relating to this insurance or your claim, in- cluding an insured's books and records, In the event of an examination, an insured's answers must be signed, d. The following definitions are added to the Definitions Section: I. "Covered recall" means a recall made necessary because the insured or a government body has determined that a known or suspected defect, deficiency, inadequacy or dangerous condition in "your product" has resulted in or will result in "bodily injury" or "property damage". 2, "Product Recall Expense" means (a) The following necessary and reasonable expenses you incur exclusively for the purpose of re- calling "your product": Item 4. - 36 HB _102_ __06 07 09 Includes copyrlghte_ .,, „tsurance Services Office, Inc. Page 7 of 8 Copyright2009, One Beacon Insurance Group LLC (1) For communications, including radio or television announcements or printed advertisements in- cluding stationery, envelopes and postage; (2) For shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; (3) For remuneration paid to your regular "employees" for necessary overtime; (4) For hiring additional persons, other than your regular "employees"; (6) Incurred by "employees", including transportation and accommodations; (6) To rent additional warehouse or storage space; or (7) For disposal of "your products", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid "bodily injury" or "property damage" as a result of such disposal, but "product recall expenses" does not include costs of regaining your market share, goodwill, revenue or profit, (b) "Product Recall Expense" doss not include any expenses resulting from; (1) Failure of any product to accomplish its Intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of "your product" which has been recalled by like products or sub- stitutes; (5) Caprice orwhim of the insured, (6) A condition likely to cause loss of which any insured knew or had reason to know at the incep- tion of this insurance; and (7) Recall of "your products" that have no known or suspected defect solely because a known or suspected defect in another of "your products" has been found 22. SUPPLEMENTARY PAYMENTS -- INCREASED LIMITS Under Section I — Coverages, Supplementary Payments — Coverages A and B, paragraphs 1.b. and 1.d, are replaced by the followings b. Up to $2,500 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies, We do not have to furnish these bonds. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or de- fense of the claim or "suit", including actual loss of earnings Up to $500 a day because of time off from work. 11 33- Page 8 of 8 Includes copyrighted materia.HB . - _'_ �,_ Services Office, Inc. VCG 20.Ite1Tl 4, _ 37 (;nn,N rLvtti 7tN10 OnaRaannn Inct tranra (rni in I I r. Dept. ID HR 17-002 Page 1 of 2 Meeting Date: 3/6/2017 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 3/6/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Michele Warren, Director of Human Resources SUBJECT: Approve and authorize execution of a three-year contract in the amount of $315,000 with Carl Warren & Co. to provide liability claims processing services Statement of Issue: The City of Huntington Beach maintains a program of self-insurance for general liability pursuant to the California Tort Claims Act. The City desires to retain the services of Carl Warren & Co. to provide assistance in administering this program. Financial Impact: The contract in an amount not to exceed $315,000.00 (over three years) will be paid from appropriations in Business Unit 10030502.69365 liability insurance fund. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Carl Warren & Co. for Liability Claims Investigating and Processing," for an initial one (1) year period with the option to renew for two (2) additional one (1) year terms for a total of three (3) years. Alternative Action(s): Allow Carl Warren & Co. to continue to provide administrative services for liability claims for one year (through March, 2018) and then re -launch the RFP process to obtain proposals from qualified firms. Analysis: The City issued a Request for Proposals for public sector third -party claims administration services (TPA). The invitation to bid was posted on the City's PlanetBid website on December 15, 2016. According to the RFP, a qualified TPA was required to demonstrate that all services will be performed in a manner commensurate with the highest standards of professionals in the industry; have a minimum of five (5) years experience administering claims for a public entity with a population of at least 50,000 and that provides public safety (Police and Fire) services; and the TPA was required to have an electronic database capable of producing specialized ad hoc reports in addition to any reports required by any reporting entities, such as the excess insurance carriers. Finally, the TPA was to demonstrate the ability to successfully manage a transition from the current TPA and provide their plan to ensure they are able to achieve this requirement. There were four respondents: Carl Warren & Company, Hazelrigg Claims Management Services, York Risk Services Group, and AdminSure. Item 10. - 1 RB -86- Dept. ID HR 17-002 Page 2 of 2 Meeting Date: 3/6/2017 A panel of experienced risk management professionals, to include two external risk managers/directors, reviewed each of the responses received and selected Carl Warren and Company as the most responsive vendor to act as the City's TPA. Carl Warren & Co. will provide claims handling services on claims against the City, its officers, agents, and employees. Services shall include but are not limited to: Receipt of claims, examination and investigation of accident and incident reports, claims and/or cases which are or may be the subject of claims. Carl Warren & Co. will also provide adjusting services, administrative services, and legal services as outlined in the contract. The City has utilized Carl Warren & Co. for many years and has been satisfied with their services. The rankings for the top two companies are part of this package as Attachments 1 and 2. Environmental Status: N/A Strategic Plan Goal: Enhance and maintain City service delivery Attachment(s): 1. RFP Results — Ranking 1 2. RFP Results — Ranking 2 3. Agreement between the City of Huntington Beach and Carl Warren & Co. 4. Insurance Waiver and Certificate of Insurance HB -87- Item 10. - 2 ATTACHMENT #1, PROFESSIONAL AND SERVICES SERVICE: Liability Claims Administration SERVICE DESCRIPTION: To provide assistance in administering the City's program of self-insurance for general liability pursuant to the California Tort Act. VENDOR: Carl Warren & Company OVERALL RANKING: 1 SUBJECT MATTER EXPERTS/RATERS: 1. Director of Systemwide Risk Management 2. Director of Human Resources and Risk Management 3. Risk Manager MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1,105 Total Weiahted Maximum Criteria Score Score Compliance with RFP 60 75 Technical Approach 325 375 Qualifications 275 375 Clarity 120 150 Local Vendor Preference N/A 75 Cost 325 375 References and Background 70 75 Total I. DUE DILIGENCE REVIEW • Ranking- 1 • Has provided liability claims administration services for the City for over 20 years • Extensive experience with cities including: Newport Beach, Costa Mesa, Ontario and many others • Extensive experience providing claim administration services for various joint power authorities, including BICEP and CJPIA • Extensive experience with reporting requirements Item 10. - 3 HB -88- ATTACHMENT #2, PROFESSIONAL AND SERVICES SERVICE: Liability Claims Administration SERVICE DESCRIPTION: To provide assistance in administering the City's program of self-insurance for general liability pursuant to the California Tort Act. VENDOR: Vendor #2 OVERALL RANKING: 2 SUBJECT MATTER EXPERTS/RATERS: 1. Director of Systemwide Risk Management 2. Director of Human Resources and Risk Management 3. Risk Manager MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1,012.50 Criteria Compliance with RFP Technical Approach Qualifications Clarity Local Vendor Preference Cost References and Background Total ifions`3Revfe' -W` Total Weighted Maximum Score Score 55 75 300 375 250 375 120 150 NIA 75 287.50 375 55 75 I. DUE DILIGENCE REVIEW • Ranking:2 VENDOR';#2P��cmg? • $105,000 per year • Data conversion and transfer fee $2,500 HB -89- Item 10. - 4 ATTACHMENT #3 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND CARL WARREN AND COMPANY FOR LIABILITY CLAIM INVESTIGATION AND PROCESSING THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and CARL WARREN AND COMPANY, a California Corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide liability claim investigation and processing services; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates &ayl�cyn who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 17-5647/152457/DO Page 1 of 14 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence onC(-c-� \- , 2017 (the "Commencement Date"). This Agreement shall automatically terminate one (1) year from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than one (1) year from the Commencement Date. This Agreement may be extended for two additional one-year terms upon written approval by both parties. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed One Hundred Five Thousand Dollars ($105,000.00) per year for a total not to exceed sum of Three Hundred Fifteen Thousand Dollars ($315,000.00) if the Agreement is extended, as set forth herein. 17-5647/152457/DO Page 2 of 14 EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit `B." DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole 17-5647/152457/DO Page 3 of 14 negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole costs and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 9. INSURANCE REQUIREMENTS FOR CONSULTING SERVICES General Liability with endorsements, Automobile Liability, Workers' Compensation and Employer's Liability and Professional Liability certificates are required. Please see below for the minimum requirements. A. General Liability: Coverage shall be at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate, one million dollars ($1,000,000) products and completed operations aggregate, for bodily injury, personal injury, and property damage. 1. General Liability policies shall provide or be endorsed using Insurance Services Office forms CG 20 10 or other forms as appropriate to provide the City and its officers, elected or appointed officials, employees, agents and volunteers additional insured status under such policies. An endorsement providing completed operations coverage to the additional insured, ISO form CG 20 37, is also required. 2. The General Liability policy may not include deductibles greater than Ten Thousand Dollars ($10,000) per occurrence or self -insured retentions without the prior written approval of the City. 17-5647/152457/DO Page 4 of 14 B. Automotive Liability: Coverage shall be at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than One Million Dollars ($1,000,000) combined single limit for each accident. The Auto Liability policy may not include deductibles greater than Ten Thousand Dollars ($10,000) per occurrence or self -insured retentions without prior written approval of the City. C. Workers' Compensation and Employer's Liability: Coverage shall be as required by the State of California (Statutory Limits) and Employer's Liability Insurance with a limit of not less than One Million Dollars ($1,000,000) for bodily injury by accident or disease. D. Professional Liability: Coverage shall be provided with a minimum limit of One Million Dollars ($1,000,000) per claim and in the aggregate. Self -insured Retentions or deductibles in excess of Ten Thousand Dollars ($10,000), or alternative forms of providing coverage, must be approved by the City. 1. The policy inception date, continuity date, or retroactive date shall coincide with or precede the professional services contractor's start of work. 2. The professional services contractor shall maintain continuous coverage through a period of not less than three years after completion of the services required by this agreement, or will purchase an extended 17-5647/152457/DO Page 5 of 14 reporting endorsement to an existing policy to cover this same period of three years after completion. 2. The professional services contractor shall maintain continuous coverage through a period not less than three years after completion of the services required by this agreement, or will purchase an extended reporting endorsement to an existing policy to cover this same period of three years after completion. E. General Conditions For any claims related to this Agreement or services provided hereunder, the Contractor's (hereafter including licensees, lessees and professional service providers) insurance coverage shall be primary insurance as respects the City, its officers, elected or appointed officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, elected or appointed officials, employees, agents and volunteers shall be in excess of the Contractor's insurance and shall not contribute with it. 2. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, elected or appointed officials, employees, agents and volunteers. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 17-5647/152457/DO Page 6 of 14 4. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City, its officers, elected or appointed officials, employees, agents and volunteers, or shall specifically allow Contractor, or others providing evidence of insurance in compliance with these specifications, to waive their right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its sub -consultants. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary. Any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. 6. Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City, nor does it waive any rights hereunder. 7. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. 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 17-5647/152457/DO Page 7 of 14 any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 9. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 10. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. 17-5647/152457/DO Page 8 of 14 CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, reports, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 17-5647/152457/DO Page 9 of 14 13. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U.S. certified mail -return receipt requested: 17-5647/152457/DO Page 10 of 14 TO CITY: City of Huntington Beach ATTN: Patti Williams 2000 Main Street Huntington Beach, CA 92648 17. CONSENT TO CONSULTANT: Carl Warren & Company 11840 Pierce Street, Suite 100 Riverside, CA 92505 Tel: (657) 622-4200 Fax: (855-683-3053 When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modifications of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. 'No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other 17-5647/152457/DO Page 11 of 14 whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and whenever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, to be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 24. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall 17-5647/152457/DO Page 12 of 14 bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 17-5647/152457/DO Page 13 of 14 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. CONSULTANT: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Carl Warren & Company CBy:—/ 40�:;72'X^ al' rnia Mayor y J print name ITS: (circle one) Chairma resident/Vice President Ci y Clerk °° 3 AND , INIT =b AND APPROVED: By: 1Sw► ✓y-�� v� Director of Human Resources print name ITS: (circle one) SecretaryhiefFinancial Officer sst. APPROVED/0 FORM: Secretary - Treasurer City Attorney (J JG O ?—\\(- `n v * ' REVvgAPPROVED: GiqManager 17-5647/152457/DO Page 14 of 14 EXHIBIT A EXHIBIT "A" SCOPE OF WORK The Consultant is to provide the City with the following services: A. Program Administration: Consultant shall: Provide professional and technical staff to perform General Liability Claims Administration services with the assignment of qualified personnel, including at least one principal claims examiner, to efficiently and effectively meet the scope of work listed in this section. Such assignment shall be subject to approval by the City. 2. Represent the City in all matters related to the set-up, investigation, adjustment, processing, negotiation and resolution of liability claims against the City. Inform the City of changes or proposed changes in statutes, rules and regulations and any other case law affecting its General Liability Program. 4. Provide information and guidance regarding the general liability claims program and specified claims. Provide copies of file correspondence and documentation as requested by City. 6. Inform City of problem areas and/or trends, both potential and perceived, and provide recommendations and/or solutions to address problem areas and/or trends. 7. Attend appointments, including but not limited to: meetings, conferences, Court appearances and scene investigations at the request of the City. 8. Provide 24-hour on -call service by providing the City with contact information for key personnel. This may include, but is not limited to, responding to an incident scene and/or conducting investigations. 9. Conduct risk management related seminars for department heads and/or City staff at the request of the City. 17-5671 /152460/DO 10. Attempt to settle or recommend denial of claims. 11. Prepare necessary reports of claims filed for the City's primary and excess carriers. 12. Establish and maintain a file for each potential claim. 13. Prepare a Monthly Status Report on all claims including litigated claims. Copies of the report shall be furnished to both the city Attorney and Risk Manager within twenty (20) days of the close of each calendar month. The Monthly Status Report shall include, but is not limited to, the following: The details of each claim. This includes a list of all claims segregated by policy year showing the following: policy year, case number, claimant's name, cause of loss description, date of loss, type of loss, status, losses paid to date, reserves, and total incurred; the outstanding reserves of each claim and detail of all claim payments during the month; investigative costs; claims opened and closed during the month; and any active litigation. B. Claims Administration Consultant shall provide administrative services that include, but are not limited to: At the direction of the City, claimants or their attorneys will be contacted promptly and appropriate contact will be maintained until the claim is closed. Claimants or their attorneys will receive a telephone call from Consultant or have a contact letter mailed to them from Consultant within 48 hours of receipt of claim by Consultant. 2. Obtain estimates of automobile damage when appropriate. Review the status of claims and adequacy of reserves on all active cases at least every 90 days. 4. Provide first investigative report to Risk Management within thirty (30) days of receipt of claim. 17-5671 / 152460/DO 2 5. Provide narrative reports when recommending rejection or settlement of a claim, when a claim is going to trial, or when any other significant events have occurred or will occur. Reports must be clear and concise. 6. Negotiate settlements for submittal to the Risk Manager for approval. 7. All files will be diaried at appropriate intervals to allow for timely completion of required activity. 8. Content of all files will be in chronological order with correspondence in the designated section. 9. File will clearly and concisely document action taken on the claim. 10. Telephone calls will be returned within 24 hours. If the staff member called is not available within this timeframe, another designated staff member will return the call. 11. Review all new claims for liability and provide an assessment of liability to the City no later than thirty (30) days from receipt of loss notice to City. 12. Identify and notify possible co-defendants. 13. Tender claims to other potential responsible parties. 14. Process all claims in accordance with City's instructions and policies. 15. Have translators available to assist with non-English speaking claimants and/or witnesses. 16. Maintain a procedure to alert necessary persons of important dates with respect to the claims. 17. If the possibility of subrogation exists, place the tortfeasor on notice of the City's subrogation rights and work with Risk Management and/or the City Attorney's Office to draft legal documents to recover monies spent on a claim. 18. Report to BICEP (Excess Liability Pool) in accordance with policy provisions. 17-5671 /152460/DO 19. Comply and meet with any excess carrier claims administration requirements. C. Investigations 1. Within ten (10) days of receipt of claims, unless otherwise requested by the Risk Manager, take statements of facts from claimants when not represented by an attorney. Statements will be preserved by recording or taking handwritten signed statements. 2. Further investigate claims where the initial review indicates that it is warranted. Further investigation may include, but is not limited to: on -sight investigation, photographs, interviewing witnesses and taking signed or recorded statements, verification of damage or loss, taking measurements, obtaining maps/diagrams from the City or other sources, obtaining medical releases, police reports, internal operations investigations, paramedic reports, marine safety department reports, building permits, or other records as required. If an attorney is involved, direct all communication to the claimant's attorney regarding the investigation, negotiation, and evaluation of any claims leading to a settlement. 4. Report all bodily injury claims to Index Bureau. Conduct bureau searches for repeat claimants. Conduct additional Index Bureau searches at request of the City. 5. Obtain approval from City before engaging the services of an outside vendor for an investigative assignment. D. Litigation Management Consultant shall provide Litigation Management services that include, but are not limited to: Provide City Attorney's Office with transmittal letter outlining the status of the case, results of investigations, primary issues, requested action, a complete copy of the file and any documentation within fourteen (14) days of receipt of lawsuit with a copy to the Risk Manager. 2. Maintain liaison with the City Attorney's Office and defense counsel and provide such investigation as required during the entire litigation process, including but not limited to: additional investigations for pretrial and trial that may be requested by either the City Attorney's Office or defense counsel. 17-5671/ 152460/DO 4 3. Obtain approval from City prior to agreement or settlement. 4. Obtain a fully executed release on all settlements and dismissals. 5. Attend Settlement Conferences, mediation or arbitrations as requested. 6. Assist the City Attorney and defense counsel in preparing and/or answering discovery as requested. 7. Assist City personnel in Small Claims Court actions filed by and against City, including but not limited to: obtaining witness information, evidence, assistance in preparing the case for trial, and appearance at the trial if deemed necessary by the City. 17-5671 /152460/DO EXHIBIT B ofHu�t�ngto�nBec�c-h� "ems kRoposal 8� � � Lic�bility,�'�alc�u I���v„estigcatign�.and�Pilasinge The City of Huntington Beach desires a one (11 year proposal that may be extended up to two (2) years. Describe your firm's fee schedule on an annual basis. <SERVIG FEE •. • -• .. . *Claims in excess of 150 will be billed at flat fee of $575 for each non -litigated claim and $875 for each litigated claim. Fee includes inputting data for claims that are handled in-house. Fixed Annual Service Fee includes the following services: Claims Management -0g-0 Data Conversion Account Management •e° Mileage Data Management % Photographs °Y• Annual Stewardship Report -0%° Office Expenses Trust Account Maintenance °o° Claims Setup ISO Indexing °<° Banking Fees MMSEA Reporting % Risk Management Information 1099 Reporting System (RMIS) Management and Litigation Management Access The following services are not included: Allocated Expenses At Cost Outside Investigations At Cost Surveillance/Fraud At Cost Additional RMIS Users 3 included $250 each per year Custom Report Development 250 per hour Subrogation if utilized 21 % of net recovery ATTACHMENT #4 11 M 1. Requested by: Risk Management - Heather Campbell 2. Date: February 16, 2017 3. Name of contractor/permittee: Carl Warren & Company 4. Description of work to be performed: Contract: Administration of City's Liability Claims 5. Value and length of contract: $105,000/year possible 3 years 6. Waiver/modification request: Allow $50,000 SIR for Professional Liability 7. Reason for request and why it should be granted: This is their standard SIR for PL. Have financial capability to cover SIR. 8. Identify the risks to, ,he City in approving this waiver/modification: No Risk to the City. Department Head Signature ate: APPROVALS Approvals must be obtained in the order listed on this form. Two approvals are required for a request to be granted. Approval fr m the City Administrator's Office is only required if Risk Managemen .and he City Attorney's Office disagree. 1. i k Management Approved ❑Denied L Signa re Date 2. City Attorney's Office ' #Approved ❑ Denied Signature Date 3. City Administrator's Office . ❑ Approved ❑ Denied Signature Date If approved, the completed waiver/modification request is to be submitted to the City Attorney's Office along with the contract for approval. Once the contract has been approved, this form is to be filed with the Risk Management Division of Human Resources Item 10. - 27 14B -112. vvaivei roim 2/16/2017 7:56:00 AM A4C" �® �,,/� CERTIFICATE OF LIABILITY INSURANCE DATE (MYY MrDDIYY) oul5rzo17 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 require an endorsement. A statement on this certificate does not confer rights to the certificate holder In Ilou of such endorsement(s). PRODUCER Marsh Risk & Insurance Services 17901 Von Karman Avenue, Suite 1100 (949) 399-5800; License #0437153 Irvine, CA 92614 CONTACT NAME: PHONE AID l�e,_Ext); (Aro, No): ER:I ADDRESS: _ — Attn: NewpodBeach.CertRequesl@marsh.comlF: 212-948-4323 INSURER(S) AFFORDING COVERAGE NAIC 4 INSURERA : Atlantic Sped alty Ins Co 27154 801519-CWCL-E&OL-16-17 INSURED Carl Warren &Company �ndefWTiteCS al t)0 INSURER e : I'dS/H1SCOx — — INSURER C : 17862 E. 17th St., Suite #111 Tustin, CA 92780 INSURER D : INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: LOS-002058220-01 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES 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 INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, _-- _� POLICY EFF POLICY EXP INSR-- ADDLISUBRI%VVD LTR TYPE OF INSURANCE POLICYNUMBER MMIDDYf IINDDIYYYY LIMITS A I X COMMERCIAL GENERAL LIABILITY CLAIMS -"MADE L_r QCCUft X 712-00-84-28-WN 05.10412016 �05)04017 OCCURRENCE $ 1,D00,04(} _EACH DAMAGE TO RENTED PREMISES Ea occurrence}— -_-' S 1,000,000 MED EXP (Anyone person) $ 10,E _ PERSONAL & ADV INJURY $ 1,000,000 GEN`LAGGREGATE LIMIT APPLIES PER: POLICY JEC LOC GENERAL AGGREGATE $ 2,000,000 PRODUCTS - CO`MPIOP AGG S 2,OW,ODO _m S OTHER: A AUTOMOBILE LIABILITY 712.W84-28-0004 05,04016 05.0412017 COMBINED SINGLE LIMIT Ea eWclenl) S 1,000,000 BODILY INJURY (Per person) S X ANY AUTO ALLOVJNED SCHEDULED AUTOS AUTOS X BODILY INJURY (Per accident) S X Pe,acciden�r�AGE S NON-OPROPERTY HIREOAUTOS A AUTOSNNED CU.IP1COLL DEDS: S 1,000 OCCUR UMBRELL.ALtAB HCLAIMS-IMADE FACHOCCURRENCE S AGGREGATE 5 EXCESS LIAR DEC) RETENTION$ _ S A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNEWEXECUTIVE Y� OFFICERRMEMBER EXCLUDED? (Myandatory in NH) DESCRIPTION OF OPERATIONS belay NIA 406-03-90-71-0004 0501 016 05104,2017 X sTAT TE II ORH _1__ E.L. EACH ACCIDENT ( $ 1,000,000 E.L. DISEASE - EA EMPLOYE $ 1,000,OOD E.L. DISEASE - POLICY LIMIT S _ 1,Od0,0i)D B Primary E&O IMPL174739516 06)04016 05f042017 E&O Limit - Each Cia'm/Agg 1,000,000 SIR 50,000 DESCRIPTION OF OPERATIONS r LOCATIONS / VEHICLES (ACORD let, Additional Remarks Schedule, maybe attached if more space Is required) The City of Huntington Bead California and its officers, elected or appointed officials, employees, agents and volunteers are is added as Additional Insured for General liability Insurance (per attached form). APPROVED A B' ICHAEL E. GATES CITY ATT 6,CIY 11rIUA I C nVLL)=M UANt t:Lt_ATIVN'' — ' ti111I1VIVIN 0 t:ALH City of Huntington Beach California 2000 Main St. Huntington Beach, CA 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE of Marsh Risk & Insurance Services John Graef O 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD HB -113- Item 10. - 28 POLICY CHANGE 7 Effective 0 3 / 17 / 2 017 , this endorsement forms apart of Policy No. 712 - 0 0 - 8 4 - 2 8 - 0 0 0 4 (At the time stated in the policy) issued to CARL WARREN & COMPANY (See ASC 00 11 01 98, Schedule 1) 17862 17TH ST TUSTIN, CA 92780-2156 Producer: MARSH USA, INC. byAtl.antic Specialty insurance Company In Accordance with this Policy Change Your Premium is Revised as follows: No Change in Premium This Policy Change Amends the Following Policy Provisions: Liability Schedule, VCG 100 10 98 Add Coverage(s): 49950 Designated Person or Organization Subline(s): 334 Premises/Operations Loc Bldg Subline(s) 18 1 334 Add Additional Insured Designated Person or Organization, CG 20 26 04 13: CITY OF HUNTINGTON BEACH CALIFORNIA 2000 MAIN ST HUNTINGTON BEACH, CA 92648-2702 RE: THE CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS. 3 4-30-0026 02/17/2017 MEL CPW PR 0.132 ASC 00 10 01 98 E-INSURED POLICY CHANGE Item 10. - 29 -114- Page 1 0f 1 Policy Number. 7120084280004 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. r� • WANTAGE FOR GENERAL LIABILITY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM The following schedule lists the coverage extensions provided by this endorsement. Refer to the individual provi- sions to determine the extent of your coverage. SCHEDULE OF COVERAGE EXTENSIONS 1. Additional Insured — Broad Form Vendors 10, Coverage Territory — Worldwide 2. Additional Insured — by Contract, Agreement or 11. Duties in Event of Occurrence, Claim or Suit Permit relating to: 12, Expected or Intended Injury (PD) o Work performed by you 13. Incidental Medical Malpractice o Premises you own, rent, lease or occupy 14. Medical Payments o Equipment you lease 15. Mobile Equipment Redefined 3. Aggregate Limit Per Location 4. Alienated Premises 5. Blanket Waiver of Subrogation 6, Bodily Injury Redefined- Mental Anguish 7. Broadened Named Insured 8. Broadened Property Damage o Borrowed Equipment o Customer's' Goods o Use of Elevators 9, 1 Broadened Property Damage Rented Premises 16. Newly Formed or Acquired Organizations 17. Non -Owned Aircraft 18. Non -Owned Watercraft 19, Personal and Advertising Injury — Non Employment Related Discrimination 20. Personal Injury — Limited Contractual Liability Coverage 21. Product Recall Expense 22. Supplementary Payments Increased Limits ADDITIONAL INSURED — BROAD FORM VENDORS Section It— Who Is An Insured is amended to include as an additional insured any person(s) or organizat€on(s) (referred to below as vendor) with whom you agreed in a written contract or agreement to provide insurance, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business, subject to the following additional excluslons: a. This provision 1. does not apply to: (1) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (2) Any express warranty not authorized by you; (3) Any physical or chemical change in the product made intentionally by the vendor; (4) Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing or the substitution of parts under instructions from the manufacturer, and then repackaged in the original con- tainer; (5) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make In the usual course of business, in connection with the distribution or sale of the products; (6) Demonstration, installation, servicing or repair operations, except such operations performed at the ven- dor's premises in connection with the sale of the product; (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or VCG 206 07 09 Includes copyrighted malerial of Insurance Services Office, Inc. Page f of 8 Copyright 2009, OneBeacon Insurance Group LLC HB -115- ° Item 10. - 30 (8) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions orthose of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (a) The exceptions contained in Subparagraphs 4. or B.; or (b) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally unIs - dertakes to make in the usual course of business, in connection with the distribution or sale of the products. (9) Any vendor, person or organization if the "products -completed operations hazard" is excluded either by the provisions of the Coverage Form or by endorsement. b. This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. 2. ADDITIONAL INSURED -- CONTRACT, AGREEMENT OR PERMIT a. Section II -- Who is An Insured is amended to include as an additional insured any person(s) or organiza- tions) with whom you agreed in a written contract, written agreement or permit to provide insurance such as is afforded under this Coverage Part, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omis- sions of those acting on your behalf: I. In the performance of "your work" for the additional insured(s) at the location designated in the contract, agreement or permit; or 2. In the maintenance, operation or use of equipment leased to you by such person(s) or organization(s), or 3. In connection with premises you own, rent, lease or occupy. This insurance applies on a primary or primary and non-contributory basis if that is required in writing by the contract, agreement or permit, b. The insurance provided to the additional insured herein is limited. This insurance does not apply: 1. Unless (a) the written contract, agreement or permit is currently in effect or becomes effective during the term of this policy; and (b) the contract or agreement was executed or permit issued prior to the "bodily injury", "property dam- age", or "persona l and advertising injury"; 2. To any person or organization included as an insured under the Additional Insured -- Broad Form Ven- dors provision of this endorsement; 3. To any person or organization included as an insured by an endorsement issued by us and made part of this Coverage Part; 4. To any person or organization if the "bodily injury", "property damage", or "personal and advertising inju- ry" arises out of the rendering of or failure to render any professional architectural, engineering or survey- ing services by or for you including: (a) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. S. To any: (a) lessor of equipment after the equipment lease terminates or expires; or (b) Owners or other interests from whom land has been leased; or (c) Managers or lessors of premises if: (1) The "occurrence" takes place after you cease to be a tenant in that premises; or (2) The "bodily injury", "property damage", "personal and advertising injury" arises out of structural alterations, new construction or demolition operations performed by or on behalf of the manager or lessor. 6. To "bodily injury, or "property damage" occurring after: (a) All work on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured at the site of the covered operations has been completed; or 0--- " "s O Includes copyr4 hied material or lnsuraiioe Services Office, Inc. vCG 205 07 09 Item 10. - 31 Copyrijht 2flo9, One B( l-IB -116- •e Group LLC (b) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in perform- ing operations for a principal as part of the same project. c. Limits of Insurance applicable to the additional insured are those specified in the contract, agreement or permit or in the Declarations of this policy, whichever is less, and fix the most we will pay regardless of the number of: 1. Insureds; 2. Claims made or "suits" brought; or 3. Persons or organizations making claims or bringing "suits". These Limits of Insurance are inclusive of and not in addition to the Limits of Insurance shown in the Declarations. 3. AGGREGATE LIMIT PER LOCATION a. Under Section III — Limits of Insurance, the General Aggregate Limit applies separately to each of your "locations" owned by or rented or leased to you. b. Under Section V —Definitions, the following definition is added: "Location" means premises involving the same or connecting lots, or premises whose connection is in- terrupted only by a street, roadway, waterway or right-of-way of a railroad. 4. ALIENATED PREMISES Paragraph j. (2) of 2. Exclusions of COVERAGE A— BODILY INJURY AND PROPERTY DAMAGE LIABIL- ITY is deleted and replaced with the following: (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those prem- ises and occurs from hazards that were known to you or should have been known to you, at the time the property was transferred or abandoned. 5. BLANKET WAIVER OF SUBROGATION Section IV —Transfer of Rights of Recovery Against Others to Us Condition is amended to add the following: We will waive any right of recovery we may have against any person or organization because of payments we make for injury or damage arising out of your ongoing operations done under a written contract or agreement with that person or organization and included in "your work!" or the "products -completed operations hazard". This waiver applies only to persons or organizations with whom you have a written contract, executed prior to the "bodily injury" or "property damage", that requires you to waive your rights of recovery. 6. BODILY INJURY REDEFINED — MENTAL ANGUISH Under Section V — Definitions, the definition of "bodily injury" is replaced by the following: "Bodily injury" means bodily injury, sickness, or disease sustained by a person, including mental anguish or death resulting from any of these at any time. 7. BROADENED NAMED INSURED Section 11— Who Is An Insured is amended to include as an insured the following: Any organization which is a legally incorporated entity in which you own a financial interest of more than 50 percent of the voting stock on the effective date of this endorsement will be a Named Insured until the 180`h day or the end of the policy period, whichever comes first, provided there is no other similar insurance availa- ble to that organization. The insurance afforded herein does not apply to any entity which is also an insured under another policy or would be an insured under such policy but for its termination or the exhaustion of its limits of insurance. 8. BROADENED PROPERTY DAMAGE -- BORROWED EQUIPMENT, CUSTOMERS' GOODS AND USE OF ELEVATORS The insurance for "property damage" liability is subject to the following: a. The Damage To Property exclusion under Section I Coverage A is amended as follows: 1. The exclusion for personal property in the care, custody or control of the insured does not apply to "property damage" to equipment you borrow while at a job site and provided it is not being used by anyone to perform operations at the time of lass. VCG 205 07 09 Includes copyrighted material of Insurance Services Office, Inc. Pang R nr A Copytht2009 ITB-117-.nsurance Group LLC Item 10. - 32 2. The exclusions for (a) Property loaned to you; (b) Personal property in the care, custody or control of the insured; and (c) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it 110 do not apply to "property damage" to "customers' goods" while on your premises nor do they apply to "property damage" arising from the use of elevators at premises you own, rent, lease or occupy. Subject to the Each Occurrence Limit, the most we will pay for "property damage" to "Customers' Goods" is $35,000 per "occurrence". b. Under Section V — Definitions, the following definition is added: "Customers' Goods" means goods of your customer on your premises for the purpose of being: 1. Repaired; or 2. Used in your manufacturing process. c. The insurance afforded by this provision is excess over any other valid and collectible property insurance (including any deductible) available to the insured whether such insurance is primary, excess, contingent or on any other basis. Any payments by us will follow the Other Insurance — Excess provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 9. BROADENED PROPERTY DAMAGE — RENTED PREMISES a. In the Damage To Property exclusion under Section I Coverage A, the exclusion for "property damage" to: Property you own, rent or occupy; does not apply to real property you rent or temporarily occupy with permission of the owner. b. In Section III — Limits Of Insurance, the Damage To Premises Rented To You Limit Is amended as follows: Subject to the Each Occurrence Limit, $500,000 is the most we will pay under Coverage A for damages be- cause of "property damage" to any one premises while rented to you or occupied by you with permission of the owner. If any amount other than $500,000 is shown in the Declarations as the Damage To Premises Rented To You Limit, the amount shown in the Declarations will replace $500,000 as the Limit of Insurance provided for this coverage. c. The insurance afforded by this Provision 9. is excess over any other valid and collectible property insurance (including any deductible) available to the insured whether such insurance is primary, excess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess Insurance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 10. COVERAGE TERRITORY —WORLDWIDE The definition of "coverage territory" is replaced by the following: "Coverage territory" means anywhere provided the insured's responsibility to pay damages must be de- termined in a settlement we agree to or in a "suit" on the merits brought within the United States of Ameri- ca (including its territories and possessions), Puerto Rico or Canada. 11. DUTIES IN THE EVENT OF OCCURRENCE, OFFENSE, CLAIM OR SUIT Section IV — Duties In The Event Of Occurrence, Claim or Suit is amended by adding the following para- graphs: a. The requirements that you must 1. notify us of an "occurrence" offense, claim or "suit" and 2. send us documents concerning a claim or "suit' apply only when such "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 executive officer of the corporation or insurance manager, if you are a corporation; or 4. A manager, if you area limited liability company. a3 o A of A Includes copyrighted material of Insurance Services Office, Inc. VCG 206 07 09 Item 10. - 33 Copyright 2009, One6E H-B _I 1 g- e Group LLC b. The requirement that you must notify us as soon as practicable of an "occurrence" or an offense that may result in a claim does not apply if you report an "occurrence" to your workers Compensation Insurer which later develops into a liability claim for which coverage is provided by this policy. However, as soon as you have definite knowledge that the particular "occurrence" is a liability claim rather than a workers compen- sation claim, you must comply with the Duties In The Event Of Occurrence, Offense, Claim Or Suit Condition. 12. EXPECTED OR INTENDED INJURY (PROPERTY DAMAGE) The Expected Or Intended Injury exclusion under Coverage A Bodily Injury and Property Damage is re- placed by: "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclu- sion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. 13. INCIDENTAL MEDICAL MALPRACTICE— EMPLOYED PHYSICIANS, NURSES, EMT'S AND PARAMEDICS a. Under Section It --Who Is An Insured, the paragraph that excludes an employee or volunteer worker as in- sured for "bodily injury" or "personal and advertising injury" arising out of his or her providing or failing to pro- vide professional health care services does not apply to a physician, dentist, nurse, emergency medical tech- nician or paramedic employed by you if you are not engaged in the business or occupation of providing med- ical, paramedical, surgical, dental, x-ray or nursing services. b. The insurance afforded by this provision is excess over any other valid and collectible insurance whether such insurance is primary, excess, contingent or on any other basis. Any payments by us will follow the Other Insurance — Excess Insurance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 14. MEDICAL PAYMENTS — INCREASED LIMITS AND TIME PERIOD In the Insuring Agreement under Coverage C Medical Payments, the requirement that expenses are incurred and reported to uswithin one yearof the date of the accident Is changed to three years. a; The Medical Expense Limit Is $15,000 per person or the amount shown in the Declarations as the Medical Expense Limit, whichever is greater. b. This provision 14. does not apply if Coverage C—Medical Payments is otherwise excluded either by the pro- visions of the Coverage Form or by endorsement. 16. MOBILE EQUIPMENT — SELF-PROPELLED SNOW REMOVAL, ROAD MAINTENANCE AND STREET CLEANING EQUIPMENT The following is added to the "mobile equipment" definition: Vehicles maintained primarily for purposes other than the transportation of persons or cargo that are self- propelled vehicles of less than 1,000 pounds gross vehicle weight with the following types of permanently at- tached equipment will be considered "mobile equipment": a. Snow removal; b. Road maintenance, but not construction or resurfacing; or c. Street cleaning. 16. NEWLY FORMED OR ACQUIRED ORGANIZATIONS Linder Section 11— Who Is An Insured, the time period limitation for newly acquired or formed organizations is replaced by: Coverage under this provision is afforded only until the end of the current policy period. 17. NON -OWNED AIRCRAFT a. The Aircraft, Auto Or Watercraft exclusion under Coverage A Bodily Injury And Property Damage Liabil- ity does not apply to an aircraft that is: 1. Hired, chartered or loaned with a paid crew; and 2. Not owned by any insured. b. The insurance afforded by this provision 17. Is excess over any other valid and collectible Insurance (includ- ing any deductible or Self Insured Retention) available to the insured, whether such insurance is primary, ex- cess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess Insur- ance provisions In the COMMERCIAL GENERAL LIABILITY CONDITIONS, VCG 205 07 09 Includes copyrighted material of Insurance Servloes office, Inc. Pant- 1; nrA Copyright 2OO9, HB-_ 1 1 }- isurance Group LLC Item 10. - 34 18. NON -OWNED WATERCRAFT a. Section II— Who Is An Insured is amended to include as an insured for any watercraft that is covered by this policy, any person who, with your expressed or implied consent, either uses or is responsible for the use of a watercraft. However, no person or organization is an insured with respect to: 1. "Bodily injury" to a co -"employee" of the person operating the watercraft; or Is 2. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. b. In the exception to the Aircraft, Auto Or Watercraft exclusion under Coverage A Bodily Injury And Prop- erty Damage Liability, the limitation on the length of a watercraft is increased to 55 feet, c. The insurance afforded by this provision 18. is excess over any other valid and collectible insurance (Includ- Ing any deductible or Self Insured Retention) available to the insured, whether such insurance is primary, ex- cess, contingent or on any other basis. Any payments by us will follow the Other Insurance —Excess Insur- ance provisions in the COMMERCIAL GENERAL LIABILITY CONDITIONS. 19. PERSONAL AND ADVERTISING INJURY — NON -EMPLOYMENT RELATED DISCRIMINATION The following is added to the definition of "personal and advertising injury': Discrimination because of race, color, creed, national origin, age, sex or physical disability, where insurance therefore is not prohibited by law, but only if such discrimination is: a. not done Intentionally by or at the direction of: (1) the insured; or (2) any executive officer, director, stockholder, partner or member of the Insured staff; and b. not directly or indirectly related to the employment, prospective employment or termination of employment of any person or persons by any insured. The insurance afforded under this provision does not apply to fines or penalties, or that portion of any award or judgment resulting from the multiplication of actual damages under state or federal law. This provision does not apply if Coverage B — Personal and Advertising Injury Liability is otherwise ex- cluded either by the provisions of this Coverage Form or by any endorsement. 20. PERSONAL INJURY — LIMITED CONTRACTUAL LIABILITY COVERAGE a. The Contractual Liability exclusion of paragraph 2. Exclusions of Section I — Coverage B — Personal And Advertising Injury Liability is replaced by the following: 2. Exclusions This insurance does not apply to: e. Contractual Liability "Personal and advertising injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to: (1) Liability for damages that the insured would have in the absence of the contract or agreement; or (2) Liability for "personal and advertising injury" if: (a) The liability pertains to your business and is required by a signed contract or agreement in which you assume the tort liability of another. Tort liability means a liability that would be imposed by law In the absence of any contract or agreement; (b) The "personal and advertising injury" occurs subsequent to the execution of the desig- nated contract or agreement; and (c) The "personal and advertising injury" arises out of the offenses of false arrest, detention or imprisonment, 21. PRODUCT RECALL EXPENSE a. With respect to this Provision 21., the Recall Of Products, Work Or Impaired Property exclusion under Coverage A Bodily Injury And Property Damage Liability is deleted. b. The following is added to Section III —Limits Of Insurance section: 0 Gana R nfA includes copyrighted material of Insurance Services Office. Inc. VCG 206 07 09 Item 10. - 35 Copyright 2W9, Ones -120-�e Group t.LC • • 1. The Limits of Insurance shown in the Product Recall Schedule and rules below fix the most we will pay regardless of the number of (a) Insureds; (b) "Covered recalls" initiated; or (c) Number of "your products" recalled. 2. The Product Recall Aggregate limit is the most we will reimburse you for the sum of all "product recall expenses" incurred for all "covered recalls" initiated during the policy period. 3. Subject to 2. above, the Each Product Recall Limit is the most we will reimburse you for the sum of all "product recall expenses" arising out of any one "covered recall" for the same defect or deficiency. 4. Subject to 3. above, we will pay only the amount of "product recall expenses" in excess of the deductible amount shown in the Product Recall Schedule. Products Recall Schedule Limits of Insurance Product Recall Aggregate Limit $ 50,000 Each Product Recall Limit $ 25,000 Each Product Recall Deductible $1,000 If any limits and deductible other than those above are shown in the Declarations as the Products Recall Expense Limits, the amounts shown in the Declarations will replace the limits of In- surance and deductible provided for this coverage. The Limits of Insurance for this coverage apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for the pu r- poses of determining the Limits of Insurance. c. The following is added to the Duties In The Event Of Occurrence, Offense, Claim Or Suit provision under Section IV -- Conditions: You must see to it that the following are done in the event of an actual or anticipated "covered recall' that may result in "product recall expense": 1. Give us prompt notice of any discovery or notification that "your product" must be withdrawn or re- called. Include a description of "your product" and the reason for the withdrawal or recall; 2. Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance; 3. As often as may be reasonably required, permit us to inspect "your product" that demonstrates the need for the "covered recall" and permit us to examine your books and records, Also permit us to take damaged and undamaged samples of "your products" for inspection, testing and analysis; and permit us to make copies from your books and records; 4. Send us a signed, sworn, proof of loss containing the information we requested to settle the claim. You must do this within 60 days after our request, We will supply you with the necessary forms; and b. Permit us to examine any insured under oath, while not in the presence of any other insured and at such times as may reasonably be required, about any matter relating to this insurance or your claim, in- cluding an insured's books and records. In the event of an examination, an insured's answers must be signed. d. The following definitions are added to the Definitions Section: 1. "Covered recall" means a recall made necessary because the insured or a government body has determined that a known or suspected defect, deficiency, inadequacy or dangerous condition in "your product" has resulted In or will result in "bodily injury" or "property damage". 2. "Product Recall Expense" means. - (a) The following necessary and reasonable expenses you incur exclusively for the purpose of re- calling "your product": VCG tab 07 09 Includes copyrighted material of insurance Services Office, Inc. Copyright 2009 " ------nsurance Group LLC ITB -121- Paae 7 of Item 10. - 36 (1) For communications, Including radio or television announcements or printed advertisements in- cluding stationery, envelopes and postage; (2) For shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; (3) For remuneration paid to your regular "employees" for necessary overtime; (4) For hiring additional persons, other than your regular "employees"; (5) Incurred by "employees", including transportation and accommodations; (6) To rent additional warehouse or storage space; or (7) For disposal of "your products", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid "bodily injury" or "property damage" as a result of such disposal, but "product recall expenses" does not include costs of regaining your market share, goodwill, revenue or profit, (b) "Product Recall Expense" does not include any expenses resulting from: (1) Failure of any product to accomplish its intended purpose; (2) Breach of warranties of fitness, quality, durability or performance; (3) Loss of customer approval, or any cost incurred to regain customer approval; (4) Redistribution or replacement of "your product" which has been recalled by like products or sub- stitutes; (6) Caprice or whim of the insured; (6) A condition likely to cause loss of which any insured knew or had reason to know at the Incep- tion of this insurance; and (7) Recall of "your products" that have no known or suspected defect solely because a known or suspected defect in another of "your products" has been found 22. SUPPLEMENTARY PAYMENTS — INCREASED LIMITS Under Section I — Coverages, Supplementary Payments — Coverages A and B, paragraphs 1.b. and 1.d. are replaced by the following: b. Up to $2,500 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodity Injury Liability Coverage applies. We do not have to furnish these bonds. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or de- fense of the claim or "suit", including actual loss of eamings up to $500 a day because of time off from worts. C, • Pana A of A Includes copyrighted material of Insurance Services Office, Inc. VCG 206 07 09 Item 10. - 37 Copyrgh120D% OneBe -1 22- _. Group LLC City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Robin Estanislau, City Clerk March 7, 2017 Carl Warren & Company 11840 Pierce St., Ste. 100 Riverside, CA 92505 To Whom It May Concern: Enclosed is a copy of the fully executed "Professional Services Contract Between the City of Huntington Beach and Carl Warren and Company for Liability Claim Investigation and Processing." Sincerely, 1 1 / Robin Estanislau, CIVIC City Clerk RE:pe Enclosure Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand