HomeMy Public PortalAboutBELAIRE-WEST LANDSCAPE, INC.CITY OF CARSON
AND
LOS ANGELES COUNTY REGIONAL PARK AND OPEN SPACE
DISTRICT
CONSTRUCTION AGREEMENT
FOR
PROJECT NO. 990
CARSON PARK IMPROVEMENTS, REHABILITATION OF THE
EXISTING IRRIGATION SYSTEM
GRANT NO. 58118-04-2058.
GAPROJECTS\990 Carson Park\Belaire-West\agreement.doc
CONTRACT
PROJECT NO. 990
Carson Park Improvements
Rehabilitation Of The Existing Irrigation System
GRANT NO. 58B8-04-2058.
AGREEMENT
THIS AGREEMENT is made and entered into by and between Owner, consisting of one or both
of the following described public entities:
[X] ■ The City of Carson, California
[ ] ■ The Carson Redevelopment Agency
and BELAIRE — WEST LANDSCAPE, INC. hereinafter called Contractor.
The Owner and the Contractor mutually agree as follows:
ARTICLE I.
THE PROJECT
For and in consideration of the mutual promises set forth herein, Contractor agrees with Owner
to perform and complete in good and workmanlike manner all work required by the Contract
Documents for Owner's PROJECT NO. 990, which is described as follows:
Carson Park Improvements Rehabilitation Of The Existing Irrigation System
Said work shall be performed in accordance with the Plans, Specifications and other Contract
Documents, all of which are referenced in Article III hereof and incorporated herein as though
fully set forth. Contractor shall furnish at its own expense all labor, materials, equipment and
services necessary therefor, except such labor, materials, equipment and services as are provided
in the Contract Documents to be furnished by Owner.
ARTICLE II.
CONTRACT SUM AND PAYMENT
For performing and completing the work in accordance with the Contract Documents, Owner
shall pay Contractor, in full compensation therefor, the contract sum set forth in the Bidding
Schedule. Said sum shall constitute payment in full for all work performed hereunder, including,
without limitation, all labor, materials, equipment, tools and services used or incorporated in the
work, supervision, administration, overhead, expenses and any and all other things required,
furnished or incurred for completion of the work as specified in the Contract Documents. Owner
shall make payments to Contractor on account of the contract sum at the time, in the manner, and
upon the conditions specified in the Contract Documents.
2
GAPROJECTS\990 Carson ParMBelaire-West\agreement.doc
ARTICLE III.
CONTRACT DOCUMENTS
The Contract Documents, which constitute the entire agreement between the Owner and the
Contractor, are enumerated as follows: Proposal Documents, including the Notice Inviting Bids,
Instructions to Bidders, Bidding Schedule, Bidder's Declaration, Designation of Subcontractors,
Bidder's Assurance, and Fair Employment Practices documents; this Agreement; Standard
Specifications; Special Provisions; Technical Provisions; Drawings; Plans; and all addenda
issued prior to and all modifications issued after the execution of this Agreement. These form
the Contract, and all are as fully a part of the Contract as if attached to this Agreement or
repeated herein.
ARTICLE IV.
EFFECTIVE DATE
This Agreement shall become effective and commence as of the date set forth below on which
the last of the parties, whether Owner or Contractor, executes said Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
attested by their proper officers thereunto duly authorized.
Attest:
Bv:
CITY CLERK
APPROVED AS TO FORM:
:
OWN:L,-
By: i:) -41d'OA7
MAYOR
Dated: eof— Oci-45
SEAL.
CONTRACTOR
26 tia �� GKo�� By:
Y
"t, Signature JD, S (►2il t K S
, o foT
Title
Dated: /1(1 05
3
GAPROJECTS\990 Carson Park\Belaire-West\agreement.doc
EXECUTED IN FOUR ORIGINAL COUNTERPARTS
Bond No. C812230
Premium: $5,383.00
CONTRACT
PROJECT NO. 990
Carson Park Improvements
Rehabilitation Of The Existing Irrigation System
GRANT NO. 508-04-2058.
FAITHFUL PERFORMANCE BOND
WHEREAS, the Owner, consisting of one or both of the following described public entities:
[X] ■ The City of Carson, California
[ ] ■ The Carson Redevelopment Agency
has awarded to Belaire West Landscape, Inc. , hereinafter designated as the "Principal",
a Contract for:
Project No. 990
Carson Park Improvements, rehabilitation of existing irrigation system
WHEREAS, said Principal is required under the terms of said Contract to furnish a bond for the
faithful performance of said Contract;
NOW, THEREFORE, we,
Belaire West Landscape, Inc. , as Principal, and
Financial Pacific Insurance Company as Surety, are held and firmly bound
unto the Owner in the sum of _**see below Dollars
($292,220.00 ), this amount being not less than one hundred percent (100%) of
the total Contract price, lawful money of the United States of America, for payment of which
sutn well and truly to be made we bind ourselves, our heirs, executors, administrators, and
successors, jointly and severally, firmly by these presents. In case suit is brought upon this bond,
the Surety will pay a reasonable attorney's fee to the "Owner" in an amount to be .fixed by the
court. **Two Hundred Ninety Two Thousand, Two Hundred Twenty and No/100**
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal,
his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and
abide by, well and truly keep and perform all the undertakings, terms, covenants, conditions and
agreements in the said Contract and any alteration thereof, made as therein provided, all within
the time and in the manner therein designated and in all respects according to their true intent and
meaning, then this obligation shall become null and void; otherwise, it shall be and remain in full
force and effect.
4
GAPROJECTS\990 Carson Park\9e1eire•We9t\ayreement.doc
FAITHF UI PERFORMANCE BOND CONTINUED
FURTHER, the said Surety, for value received, hereby stipulates and agrees that no change,
extension of time, alteration or modification of the Contract Documents, or of the work to be
performed thereunder, shall in any way affect the obligations of this bond, and it does hereby
waive notice of any such change, extension of time, alteration or modification of the Contract
Documents or of the work to be performed thereunder.
IN WITNESS WHEREOF, three (3) identical counterparts of this instrument, each of which shall
for all purposes be deemed an original thereof, have been duly executed by the Principal and
Surety named herein, on the 22nd day of July , 2005, the name and
corporate seal of each corporate party being hereto affixed and these presents duly signed by its
undersigned representative pursuant'to authority of its governing body.
Belaire West Landscape, Inc.
Principal
By
Financial'Pacific Insurance Company
Surety
By
Jan L. Miller, attorrey-in-=act
5
GAPROJECTS1990 Carson Parkl8olalre-WezAagreement.doc
CALIFORNIA JURAT WITH AFFIANT STATEMENT
-�--C:F`i<.c"f�,c-�i�`�p�K`�1.C�',EY".F`c`.,c-�l�'cfJ�V",Fr�c�rS'f`�`�,c�c��'�`r,�C.�',fr�`f��rf'1^�-+`��`f`,c•i�cv�c�F+c�c��'+�ct+ct�+c.� —, -S-_-1
State of California
County of A �rr� c! ss.
S? /See Attached Document (Notary to cross out lines 1-6 below)
❑ See Statement Below (Lines 1-5 to be completed only by document signer[s], not Notary)
Signature of Document Signer No. 1 Signature of Document Signer No. 2 (if any)
Subscribed and sworn to (or affirmed) before me on this
day of L>eby
ate ont Year
Mcg Y 6
COf11� # f4mb Name of Signer
V 11b/C ' C Nwft personally known to me
CoO=W r� Proved to me on the basis of satisfactory evidence
to be the person who appeared before me -
(and
Place Notary Seal Above
of Signer
❑ Personally known to me
❑ Proved to me on the basis of satisfactory evidence
to be the person who appeared re me.)
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove
valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Further Description of Any Attached Document
Title or Type of DocumentR&
1 I
Document Date: t �C Number of Pages:
Signer(s) Other Than Named Above:
RIGHT THUMBPRINT RIGHT THUMBPRINT
OF SIGNER #1 OF SIGNER #2
.p of thumb h Top of
Q2004 National Notary Association • 9350 De Soto Ave.. P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.NationalNotary.org Item #5910 Reorder: Call Toll -Free 1-800-876-6827
LIMITED POWER OF ATTORNEY
Financial Pacific Insurance Company
BOND NUMBER 0812230 POWER NUMBER 812231
PRINCIPAL Belaire West Landscape, Inc.
PENAL SUM $292,220.00
KNOW ALL MEN BY THESE PRESENTS, that Financial Pacific Insurance Company. a California corporation (the "Company"),
does hereby make, constitute and appoint:
Janelle L. Miller, Jeff Aase, Will Mingrant, Christopher M. Haenel
its true and lawful Attorneys -in -Fact, with limited power and authority for and on behalf of the Comp;
the seal of the Company thereto if a seal is required on bonds, undertakings, recognizances or other v
follows. Bid, Performance, Payment, Subdivision and Miscellaneous Bon,
and to bind the Company thereby. This Power of Attorney is siggned and sealed by
resolutions adopted by the Board of Directors of Financial Pacific Esurance Company
full force and effect:
RESOLVED, that the President or any VicePresident, in conjunction with
attorneys -in -fact or agents with authority as defined or limited in the instrument evide
the Company, to execute and deliver and as
the seal of the Company to bonds, unbde
kinds; and said officers may remove any such attorney-in-fact or agent and revoke any
RESOLVED FURTHER, that any bond, undertaking, recognizance,or sur
Company when signed and sealed (if a seal be required) by one or more attorneys -ii
evidenced by the power of attorney issued by the Company to such person or persons.
, to execute, deliver and affix
itions in the nature thereof as
to $1,500,000.00
facsimile under and by the authority of the following
at the meeting duly held July 6, 1995, which are now in
the Secretary or any Assistant Secretary, may appoint
ncing the appointment in each case, for and on be of
ttakings, recognizances, and suretyship obligations of all
power of attorney previously granted such person.
wtyship obligation shall be valid and binding upon the
i- 'act pursuant to and within the limits of the authority
RESOLVED FURTHER, that the signature of any authorized' officer and the seal of the Company may be affixed by facsimile to any
power of attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship
obligations of the Company; any such signature and seal when so used shall have the same force and effect as though manually affixed.
IN WITNESS WHEREOF, Financial Pacific Insurance Company has caused these presents to be signed by its proper officers, and its
corporate seal to be hereunto affixed this 15th of March; 2004.
1NSU�� rim
�Q. �ULY22 �.o'
z : RZ E Robert T. Kingsley, President Jo n R. Hollingshead, Secr tary
�• 1986
y 9�IFOP�••'•
STATE OF CALIFORNIA, COUNTY OF SACRAMENTO
On this 15th day of March, 2004, personally came before me Robert T. Kingsley and John R. Hollingshead, to me known to be the
individuals and officers of Financial Pacific Insurance Company, who executed the above instrument, and they have acknowledged the execution
of the same, and being by me duly sworn, did severally depose and say that they are the said officers of the corporation aforesaid and that the seal
affixed to the above instrument is the seal of the corporation, and that said corporate seal and their signatures as such officers were duly affixed
and subscribed to the said instrument by the authority of the Board of Directors of said corporation.
REBEKAHMOELLER
V. COMM. *1471389
W c s Notary Public -California N
PLAC9tCtHl " Rebekah Moeller, Notary Public
My Comm. Exp. Fab 21,200
��►�� CERTIFICATE
I, the undersigned Secretary of Financial Pacific Insurance Company, a California corporation, DO HEREBY CERTIFY that this
Power of Attorney remains in full force and effect and has not been revoked and furthermore, that the resolutions of the Board of Directors set
forth, and that the relevant provisions of the By -Laws of the Company, are now in full force and effect.
Signed and sealed at Sacramento, this 22nd day of July _20 05
John IV
ollingshead, Secretary
Financial Pacific
Insurance Company
seal must
be affixed
State of California
County of San Diego
On July 22, 2005
before me, Rachel G. Holbrook, Notary Public personally
appeared Janelle L. Miller, personally known to me —OR- proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
(Signature of Notary) (Seal)
C> s = RC1
-a �.
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==zr-- -�
HNA NCL L PACIFIC
TM
Bond #C812230
Rider Containing
Disclosure Notice of Terrorism Coverage
The Terrorism Risk Insurance Act of 2002 requires Financial Pacific Insurance
Company (FPIC) to provide this disclosure notice. No action is required on your part.
This Disclosure Notice is incorporated in and made part of the attached bond. The
actual coverage provided by this bond for acts of terrorism is limited by the terms,
conditions, exclusions, limits other provisions of the bond any endorsements and
generally applicable rules of law.
Effective November 26, 2002 any losses caused by a certified act of terrorism would be
partially reimbursed by the United States of America to FPIC under a formula
established by the Terrorism Risk Act of 2002. Under this formula, The United States of
America reimburses 90% of covered terrorism losses exceeding the statutorily
established deductible paid by the insurance company providing the coverage.
There is a cap on FPIC's Liability to pay for such losses if the aggregate amount of
insured losses under The Act exceeds $100,000,000,000 during the applicable period
for all insured and insurer's combined. In that case, we will not be liable for payment of
any amount, which exceeds that aggregate amount of $100,000,000,000.
Your premium attributable to coverage for terrorist acts certified under The Act is Zero
Dollars ($0.00). The cost of terrorism coverage is subject to change on any bond where
premium is charged annually.
EXECUTED IN FOUR ORIGINAL COUNTERPARTS
CONTRACT
PROJECT NO. 990
Carson Park Improvements
Rehabilitation Of The Existing Irrigation System
GRANT NO.58B8.04-2058.-
PAYMENT BOND
BOND No. C812230
Premium: included in
performance bond
WHEREAS, the Owner, consisting of one or both of the following described
public entities:
(X] ■ The City of Carson, California
( ] ■ The Carson Redevelopment Agency
has awarded to Belaire West Landscape, Inc. ,.as Contractor, a contract for
the work described as follows: Project No. 990
Carson Park Improvements, rehabilitation of existing irrigation system
OWNER'S PROJECT NO.: 9 9 o
Project No. 990, Carson Park Improvements Rehabilitation Of The Existing
Irrigation System
AND WHEREAS, said Contractor is required to furnish a bond in connection with said contract,
to secure the payment of claims of laborers, mechanics, material men and other persons, as
provided by law;
NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the
Owner in the sum of **see below for
which payment well and truly to be made we bind ourselves, our heirs, executors and
administrators, successors and assigns, jointly and severally, firmly by these presents.
**Two Hundred Ninety Two Thousand, Two Hundred Twenty and No/100 ($292,220.00)**
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if said Contractor, its heirs,
executors, administrators, successors, assigns, or subcontractors shall fail to pay any of the
persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance
Code with respect to work or labor performed under the contract, or any amounts required to be
deducted, withheld, and paid over to the Employment Development Department from the wages
of employees of the Contractor and its subcontractors pursuant to Section 13020 of the
Unemployment Insurance Code, with respect to such work and labor, then the Surety or Sureties
herein will pay for the same: in an amount not exceeding the sum specified in this .bond,
otherwise the above obligation shall be void. In case suit is brought upon this bond, the said
Surety will pay a reasonable attorney's fee to the plaintiff(s) and Owner in an amount to be fixed
by the court.
6
GAPROJECTSM0 Carson PerkNBelaire-west%greement.doc
This bond shall inure to the benefit of any of the persons named in Civil Code Section 3181 as to
give a right of action to such persons or their assigns in any suit brought upon this bond.
Said Surety, for value received, hereby stipulates and agrees that no change, extension of time,
alteration or modification of the Contract Documents or of the work to be performed thereunder
shalt in any way affect its obligations on this bond, andit docs hereby waive notice of such
change, extension of time, alteration or modification of the Contract Documents or of work to be
performcd thcrcunder.
IN WITNESS WHEREOF, we have hereunto set our hands and seals on this 22nd day of
July
2005.
Bela' e West Landscape, Inc.
i
CONTRACTOR
7
GAPROJECTS1990 Carson Park\Belafre-Wes(\agreement.doc
Financial Pacific Insurance Company
S iTY
anelle L. Miller, attorney-in-fact
CALIFORNIA JURAT WITH AFFIANT STATEMENT
State of California
ss.
County of
)/See Attached Document (Notary to cross out lines 1-6 below)
�] See Statement Below (Lines 1-5 to be completed only by document signer[s], not Notary)
Signature of Document Signer No. 1 Signature of Document Signer No. 2 (if any)
Place Notary Seal Above
Subscribed and sworn to (or affirmed) before me on this
`i A /1 �l�
day Of �r ;, by
Date ont Year
(1)
Name of Signer
personally known to me
Proved to me on the basis of satisfactory evidence
to be the person who appeared before me (.) (,)
(and
(2)
Name of Signer
J Personally known to me
❑ Proved to me on the basis of satisfactory evidence
to be person who�p'eared,bgl re me.)
ZL1 n rJJ,
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove
valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Further Description of Any Attached Document
Title or Type of Document:, d r ✓
Document Date: / SIL. Number of Pages:
Signer(s) Other Than Named Above:
LU/
RIGHT THUMBPRINT RIGHT THUMBPRINT
OF SIGNER #1 OF SIGNER #2
... • p of
C2004 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.NationalNotary.org Item #5910 Reorder: Call Toll -Free 1-800-876-6827
LIMITED POWER OF ATTORNEY
Financial Pacific Insurance Company
BOND NUMBER 0812230 POWER NUMBER 812230
PRINCIPAL Belaire West Landscape, Inc. PENAL SUM $292,220.00
KNOW ALL MEN BY THESE PRESENTS, that Financial Pacific Insurance Company, a California corporation (the "Company"),
does hereby make, constitute and appoint:
Janelle L. Miller, Jeff Aase, Will Mingram, Christopher M. Haenel
its true and lawful Attorneys -in -Fact, with limited power and authority for and on behalf of the Company as surety, to execute, deliver and affix
the seal of the Company thereto if a seal is required on bonds, undertakings, recognizances or other written obligations in the nature thereof as
follows: Bid, Performance, Payment, Subdivision and Miscellaneous Bunds up to $1,500,000.00
and to bind the Company thereby. This Power of Attorney is signed and sealed by facsimile under and by the authority of the following
resolutions adopted by the Board of Directors of Financial Pacific Insurance Company at the meeting duly held July 6, 1995, which are now in
full force and effect:
RESOLVED, that the President or any Vice President, in conjunction with the Secretary or any Assistant Secretary, may appoint
attorneys -in -fact or agents with authority as defined or Limited in the instrument evidencing the appointment in each case, for and on behalf of
the Company, to execute and deliver and affix the seal of the Company to bonds, unbdettakings, recogmzances, and suretyship obligations of all
kinds; and said officers may remove any such attorney-in-fact of agent and revoke any power of attorney previously granted such person.
RESOLVED FURTHER, that any bond, undertaking, recognizance, or sure%yship obligation shall be valid and binding upon the
Company when signed and sealed (if a seal be required) by one or more attorneys -in -fact pursuant to and within the limits of the authority
evidenced by the power of attorney issued by the Company to such person or persons.
RESOLVED FURTHER, that the signature of any authorized officer and the seal of the Company may be affixed by facsimile to any
power of attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship
obligations of the Company; any such signature and seal when so used shall have the same force and effect as though manually affixed.
IN WITNESS WHEREOF Financial Pacific Insurance Company has caused these presents to be signed by its proper officers, and its
corporate seal to be hereunto affixed this 15th of March, 2004.
3tutnrutit
G�.. INS(/q��
-� �\�LY22 �.0_ /
v : = Robert T. Kingsley, President IR. Hollingshead; Secr tary
�. 1986 ate;EF
4
y'•.9�/F0 iR\'
r ra i m
STATE OF CALIFORNIA, COUNTY OF SACRAMENTO
On this 15th day of March, 2004, personally came before me Robert T. Kingsley and John R. Hollingshead, to me known to be the
individuals and officers of Financial Pacific Insurance Company, who executed the above instrument, and they have acknowledged the execution
of the same, and being by me duly sworn, did severally depose and say that they are the said officers of the corporation aforesaid and that the seal
affixed to the above instrument is the seal of the corporation, and that said corporate seal and their signatures as such officers were duly affixed
and subscribed to the said instrument by the authority of the Board of Directors of said corporation.
REBEKAH MOELLER
r41MY
COMM. 91471389
WNotary Publle-Cslifomia WPLACERCODUTY Rebekah Moeller, Notary Public
Comm. Exp. Feb 21, 2008
CERTIFICATE
I, the undersigned Secretary of Financial Pacific Insurance Company, a California corporation, DO HEREBY CERTIFY that this
Power of Attorney remains in full force and effect and has not been revoked and furthermore, that the resolutions of the Board of Directors set
forth, and that the relevant provisions of the By -Laws of the Company, are now in full force and effect.
WJ
Signed and sealed at Sacramento, this 22nd day of July20 OS at,, —
John ollingshead, Secretary
Financial Pacific
Insurance Company
seal must
be affixed
State of California
County of San Diego
On July 22, 2005 before me Rachel G. Holbrook, Notary Public personally
appeared Janelle L. Miller, personally known to me —OR- proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
P,kj J, 14,&txd
(Signature of Notary) (Seal)
9T A T`;!C,
} yy .rtifl'Mdi $)1�ideV'.�fi3SR^Y.x^ 77"
( F�1 •mA•
J
b-�F'c9,I,�.,MGntL•c�29�a'��`lsP�'3tJT
r, .�. ]w
�;y
FINANCIAL PACIFIC =TM
Bond #C812230
Rider Containing
Disclosure Notice of Terrorism Coverage
The Terrorism Risk Insurance Act of 2002 requires Financial Pacific Insurance
Company (FPIC) to provide this disclosure notice. No action is required on your part.
This Disclosure Notice is incorporated in and made part of the attached bond. The
actual coverage provided by this bond for acts of terrorism is limited by the terms,
conditions, exclusions, limits other provisions of the bond any endorsements and
generally applicable rules of law.
Effective November 26, 2002 any losses caused by a certified act of terrorism would be
partially reimbursed by the United States of America to FPIC under a formula
established by the Terrorism Risk Act of 2002. Under this formula, The United States of
America reimburses 90% of covered terrorism losses exceeding the statutorily
established deductible paid by the insurance company providing the coverage.
There is a cap on FPIC's Liability to pay for such losses if the aggregate amount of
insured losses under The Act exceeds $100,000,000,000 during the applicable period
for all insured and insurer's combined. In that case, we will not be liable for payment of
any amount, which exceeds that aggregate amount of $100,000,000,000.
Your premium attributable to coverage for terrorist acts certified under The Act is Zero
Dollars ($0.00). The cost of terrorism coverage is subject to change on any bond where
premium is charged annually.
CONTRACT
PROJECT NO. 990
Carson Park Improvements
Rehabilitation Of The Existing Irrigation System
GRANT NO. 58B8-04-2058.
WORKER'S COMPENSATION INSURANCE CERTIFICATE
The Contractor shall execute the following form as required by the California Labor Code,
Sections 1860 and 1861:
I am aware of the provisions of Section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that Code, and I will
comply with such provisions before commencing the performance of the work of
the Contract.
DATED: 2t� p��
Ise
F.
M.
i2- 0-1,� C I— M
Title
GAPROJECTS\990 Carson ParMBeiaire-West\agreement.doc
A t ILE i.) C-5 r
CONTRACTOR
By f�
Signature J 4� STn k s
�rS t 0_
Title
INDEMNIFICATION AND HOLD HARMLESS AGREEMENT
AND WAIVER OF SUBROGATION AND CONTRIBUTION
Contract/Agreement/License/Permit No. or description:_ 1-790 - 5"'1
Indemnitor(s) (list all names): 3�L p l �� W£5� L/� y.>Y�SG� �£ SNL,
To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend, protect,
indemnify, and hold harmless the City of Carson and the Los Angeles County Park and Open Space District and
their respective elected officials, officers, attorneys, agents, employees, volunteers, successors, and assigns
(collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands,
causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including
fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"),
arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act,
failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors,
materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or
indirectly, out of, in connection with, resulting from, or related to the above -referenced contract, agreement, license,
or permit (the "Agreement") or the performance or failure to perform any term, provision, covenant, or condition of
the Agreement, including this indemnity provision. This indemnity provision is effective regardless of any prior,
concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify
Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Agreement
and is in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not
required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of
judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right to recover under this indemnity
provision. Indemnitor shall pay Indemnitees for any attorneys fees and costs incurred in enforcing this
indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to
encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying
Agreement is subject to Civil Code 2782(a), or (b) the contracting public agency's active negligence to the limited
extent that the underlying Agreement is subject to Civil Code 2782(b). This indemnity is effective without reference
to the existence or applicability of any insurance coverages which may have been required under the Agreement or
any additional insured endorsements which may extend to Indemnitees.
Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation
and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and
liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless
of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees. Accountants, attorneys, or
other professionals employed by Indemnitor to defend Indemnitees shall be selected by or subject to the approval of
Indemnitees.
In the event there is more than one person or entity named in the Agreement as an Indemnitor, then all obligations,
liabilities, covenants and conditions under this instrument shall be joint and several.
"Indemnitor"
Na Sinv<<c5�4Name
By: 215 By:
Its Its
TO BE SIGNED BY THE CONTRACTOR
0
G:\PROJECTS\990 Carson ParMBelaire-West\agreement.doc
07/19/2005 15:25 8054979437
STATE FARM INSURANCE PAGE '02
CERTIFICATE OF INSURANCE
STATI MRM
Th th ❑ STATE FARM FIRE AND CASUALTY COMPANY, Bloom!Von. Illinois
® STATE FARM GENERAL INSURANCE COMPANY, Bloomington, Illinois
ins rtW#* 'ng policyholder for the coverages indicated below.
N2Me of policyholder BELAIRE WEST LANDSCAPE, INC.
Address of policyholder 7371 WALNUT AVENUE
BUENA PARK, CAIFORNIA 90620-1759
Locationofoperations CARSON PARK, CITY OL' CARSON, CALIrORNIA
Descriptionof operations JOB NO. 990/IMPROVEMENTS, RI;H1kBTLTTATION OF. IRRIGATION--1'SYS
The policies listed below have been issued to the policyholder for the policy periods shown. The insurance described: m; tneW_- , is
,uhlect to all the terms exclusions. and conditions of those oolicies. The limits of liability shown may have been reduced by any paid daims.
ADDITIONAL INSURED: If any of the d.00bed policies are canceled .before its
expiration date, Stalin Farm will tf Xdhail aMwritten not= to
LOS ,ANGELES COUNTY REGIONAL PARR AND OPEN the certificate holder 30 days befot+e.. _=ncellatia.
SPACE SPACE DISTRICT
Names KddreOssNof CertffiT ateHo UR d r
CITY OF CARSON —
DEPT. OF RISK MANAGEMENT
P.O. BOX 6234
CARSON, CALIFORNIA 90749
559-594 a 2-20 Printed In U.S.A. /rATi pass MICHAMC. GUS1CK Anent
199 LIMMWd Oaks Blad, Stdte 101
lho=W Oaks„ CA WM
.InsultM(BMW-9435
""� faot�05j497.9437
Signature ofAuthorWm Repmwntatlue
AGENT
Title
JULY: 1.9 ,. 2005
nate
POLICY PERIOD
LIMRS.OF:LlABI�ITY -
POLICY NUMBER
TYPE OF INSURANCE
Fffect vs Date EX irgtion Data
at beginning of poliperiod)
Comprehensive
130DILY INJURY AND
Business Llability
PROPERTY DAMAGE
This insurance includes: ❑ Products - Completed Operations
❑ Contractual Liability
❑ Undergrouna Hazard coverage
Each Ocxurrence $
❑ Personal Injury
❑ Advertising Iniury
General Aggregate $
❑ Explosion Hazard Coverage
Products - Completed
❑ Collapse Hazard Coverage
Operations Aggregate $
❑ Gcncml Aggregate Limit applies to each project
13❑
ACCESS LIABILITY
POUCY PERIOD
BODILY INJURY AND PROPERTY DAMAGE
Effective Date Expiration Date
(Combined Single Limit)
❑ Umbrella
Each Occurrence $
Other
Aggregate $
Part 1 STATUTORY
Part 2 BODILY INJURY
workers' Compenzation
and Employers Liability
Each Accident $
Disease Each Employee $
Disease - Policy Limit $
POLICY NUMBER
TYPE OF INSURANCE
POLICY PERIOD
LIMITS OF I'ADILITY
Ef edive Date Expiration Dade
at be inns ofperiod)
055 6-75C
TO LIABILITY
3 06 0 3/06/0600
OOOCSL
6 6526-75C
AU 0 LIABIL Y
1AUTQ
03 05 03
NI•;ll H &
056 6526-75C
LI ILII
03 06 05 03 06
OWNED
ADDITIONAL INSURED: If any of the d.00bed policies are canceled .before its
expiration date, Stalin Farm will tf Xdhail aMwritten not= to
LOS ,ANGELES COUNTY REGIONAL PARR AND OPEN the certificate holder 30 days befot+e.. _=ncellatia.
SPACE SPACE DISTRICT
Names KddreOssNof CertffiT ateHo UR d r
CITY OF CARSON —
DEPT. OF RISK MANAGEMENT
P.O. BOX 6234
CARSON, CALIFORNIA 90749
559-594 a 2-20 Printed In U.S.A. /rATi pass MICHAMC. GUS1CK Anent
199 LIMMWd Oaks Blad, Stdte 101
lho=W Oaks„ CA WM
.InsultM(BMW-9435
""� faot�05j497.9437
Signature ofAuthorWm Repmwntatlue
AGENT
Title
JULY: 1.9 ,. 2005
nate
67/19/2005 15:25 8054979437 STATE FARM INSURANCE PAGE 03
AUTONZOBILE LIrA$l =
ADDITIONAL MIDI fila ENDORSEXff- T
13ELAIRE WEST LANDSCAPE INC.r
7371 WALNUT AVEINM, BU -NA pARR, CALIFORNIA 90620-1759
NAME OV ADDRESS. OF INS URiw-,
TmPnnvF.wNTS AND RRHABILITATION OF IRRIGATION SYSTEM
Genernl description of agrcerncnt(s)-and/or activity(ies) insured:
Notwithstanding any inconsistent statement in the policy to which this endorsement is ettachedpr
in any endorsement now or hereafter attached thereto. it is agecd as follows:
1. The Owner, Consisting of one or both of the following described public entities:
N IR The City of Carson, California; and Los Angeles County Regional Park
and Open Space District
[ 1 ■ The Carson Rcdcvclopment ,A Amey
and its or their elected offir:ials, officers, agents and employees are insured
thereunder in relation to those activities described generally above with regard to
operations performed by or on behalf of the named insured.
2, Such insurance shall be primary, and not contributing with any other..insurauc
maintained by the Uwner.
3. The policy to which this cudursemcnt is attached shall apply separately to each
insured against whom claim is made or suit is brought except with respect to rhe
limits of the company's liability. y
4. The policy to which this endorsement . is attached shall not be subject .;io
Cancellation, change in coverage, redttctioa of limits or non-mnewal except tom'
written notice to Risk Management, City of Carson, by certified nWI, return
receipt requested, not less than thirty (30) days prior to the effective date thereto
C"CLLIATION NOTICE AND ENDORSEMENT TO BE 5)5N ' TO:
Risk Managemont
City of Carson
P.O. Box 62.34
Carson, CA 90749
(310) $30-7600
40
EXHIBIT C
GAPR0dECr8WD Carson ParMdair0-Westiagraem4nt.dW
07/19/2005 15:25 8054979437 STATE FARM INSURANCE PAGE e4
Excc t as stated above and not in conflict with this endorsernent, Clothing .e s
containedh= h
P all
be held to waive, alter or extend any of the limits, agreements, gr-exclusior►s of the.._pallc)►
which this endorsement is attwhed.
Endarsemem.
Effective
TYPE OF COVERAGES TO WMCH
$1 MILLION CSL
Scheduled items or locations are to be identified on an attached sheet.
The following = covered by tho policy.-
(X)
olicy:
{X} Owned Automobiles {) Owned, Nonowned and 1-hred. Automobiles
(x) Mmowned Automobiles
(20 Hired Automobiles
A deductible or self-insured retention (strike out one) of Nth
applies to coverage.
DEDtJC` XBLE APPLIES I -ER CLAM
PER OCCVRRENCE .
STILTE FAQ N11TIIAT. AUTO INS CO..
INSURANCE CONPANX
ADDFM$; 1-99 E. THOUBAND OAKS,, BLVD #101
THOU -'qAM OWNS CA .91361
T. NICBAEL C. G"USICK
(print flame) hereby d=14W under penalty of
peijury, under the laws of the State of California, that I have the authority to bind the abovC-
iiiraea insurance cOmPAny to this ondors=ent and by my execution hereof, do so bind said
company,
w w
Sign$ture of Authorized RepresenWyc (Nginal Signatcxre only;
NO facsimile signature or initialed signature accepted)
Executed atL THOUSAND OAKS CALIFORNIA un .rULY 19 .2005
Phonc No.. C805 1 497-9435
41
GAPROJECnW% p Orson PWMaelatreXHIB1T
•WesflagreemontaC
Unofficial Until Approved by
City Council
Absent: None
ITEM NO. (9) HEATING, VENTILATION AND AIR CONDITIONING MAINTENANCE
CONTRACT EXTENSION WITH HONEYWELL INTERNATIONAL, INC
(DEVELOPMENT SERVICES)
RECOMMENDATION for the City Council:
TAKE the following actions:
1. APPROVE a five-year extension of the contract with Honeywell International, Inc., in the
amount of $194,750 for the first year, effective August 1, 2005.
2. AUTHORIZE the Mayor to execute the contract after approval as to form by the City
Attorney.
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Santarina, seconded by Ruiz-Raber and unanimously carried by the following vote:
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (10) AWARD OF CONTRACT - PROJECT NO. 990: CARSON PARK
IMPROVEMENTS, REHABILITATION OF THE EXISTING IRRIGATION
SYSTEM (DEVELOPMENT SERVICES)
RECOMMENDATION for the City Council:
TAKE the following actions:
1. AWARD a construction contract for Project No. 990: Carson Park Improvements,
Rehabilitation of the Existing Irrigation System in the amount of $292,220 to the lowest
responsible bidder, Belaire West Landscape, Inc.
2. AUTHORIZE construction contingencies in the amount of $43,833 (15%) for change
orders such as the removal and remediation of contaminated soils, substructure conflicts
and other unforeseen construction work that may be required to complete this project.
3. AUTHORIZE the Mayor to execute the agreement following approval as to form by the
City Attorney.
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Santarina, seconded by Ruiz-Raber and unanimously carried by the following vote:
Carson City Council
July 5, 2005
PAGE 10
Unofficial Until Approved by
City Council
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (11) BOND RELEASE - PARCEL MAP NO. 26886: 545 E. 220TH STREET
(DEVELOPMENT SERVICES)
RECOMMENDATION for the City Council:
TAKE the following actions:
1. APPROVE the work as completed.
2. AUTHORIZE the release of the surety bond in the amount of $18,000.
3. INSTRUCT the City Clerk to send a copy of the City Council action to the principal,
surety, and County of Los Angeles Department of Public Works.
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Santarina, seconded by Ruiz-Raber and unanimously carried by the following vote:
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (12) APPROVAL OF PLANS, SPECIFICATIONS, AND ESTIMATES AND
AUTHORIZATION TO ADVERTISE FOR BIDS - PROJECT NO. 1204:
CORPORATE YARD BUILDING ROOF REPAIR, 2400 E. DOMINGUEZ
STREET (DEVELOPMENT SERVICES)
RECOMMENDATION for the City Council:
TAKE the following actions:
1. APPROVE the plans, specifications, and estimate.
2. INSTRUCT staff to advertise the work and call for bids for Project No. 1204: Corporate
Yard Building Roof Repair located at 2400 E. Dominguez St.
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Santarina, seconded by Ruiz-Raber and unanimously carried by the following vote:
Carson City Council
July 5, 2005
PAGE 11
City of Carson
Report to Mayor and City Council
July 5, 2005
New Business Consent
SUBJECT: AWARD OF CONTRACT - PROJECT NO. 990: CARSON PARK IMPROVEMENTS,
REHABILITATION OF THE EXISTING IRRIGATION SYSTEM
n
<bm"itired by M.'Vi r Ro in Approved by Jerome G. Groomes
Acting Development s General Manager City Manager
I. SUMMARY
On May 17, 2005, Council approved the plans and specifications for this project
and called for bids. Six bids were received and opened by the City Clerk on
June 21, 2005. The lowest responsible bidder is Belaire-West Landscape, Inc.,
with a bid in the amount of $292,220.
II. RECOMMENDATION
TAKE the following actions:
1. AWARD a construction contract for Project No. 990: Carson Park
Improvements, Rehabilitation of the Existing Irrigation System in the amount
of $292,220 to the lowest responsible bidder, Belaire-West Landscape, Inc.
2. AUTHORIZE construction contingencies in the amount of $43,833 (15 %)
for change orders such as the removal and remediation of contaminated soils,
substructure conflicts and other unforeseen construction work that may be
required to complete this project.
3. AUTHORIZE the Mayor to execute the agreement following approval as to
form by the City Attorney.
III. ALTERNATIVES
Reject all bids and take any other action that the City Council deems necessary
and appropriate at this time.
IV. BACKGROUND
The Carson Park improvements project is listed in the City's Capital
Improvement Program (CIP) for FY 2003/04. Carson Park is located at 21411
Orrick Avenue. This 11 -acre park is bordered by Main Street on the west, 213`''
Street on the north, Orrick Avenue on the east and 215`'' Street on the south.
The project consists of the reevaluation and rehabilitation of the existing
irrigation system and the development of a reclaimed water irrigation system.
/0.,
City of Carson Report to Mayor and City Council
July 5, 2005
Drip irrigation water -efficient spray heads will be used along with drought -
resistant plants and sod wherever plants or grass are removed for construction.
On May 18, 2004, the City Council adopted Resolution No. 04-041, approving
the application for grant funds from the Los Angeles County Regional Park and
Open Space District for improvements at Carson Park.
On June 18, 2004, the Los Angeles County Regional Park and Open Space
District approved Grant No. 58138-04-2058 in the amount of $387,622.73. The
grant provides for the design, administration, and construction costs of this
project.
On December 8, 2004, the City Council executed an agreement with Community
Works Design Group to prepare plans, specifications and estimates for the
project.
On May 17, 2005, the City Council approved plans and specifications and called
for bids. On June 21, 2005, six bids were received and opened by the City
Clerk as listed below:
Bidder Place of Business Total Bid
1. Belaire-West Landscape, Inc. Buena Park, CA $292,220
2. Environmental Construction, Inc. Canoga Park, CA $297,368
3. Diversified Landscape Mission Viejo, CA $297,373
Management, Inc.
4. Mega Way Enterprises
5. America West Landscape, Inc
6. Mariposa Horticultural
Covina, CA $308,000
Downey, CA $310,000
Irwindale, CA $396,758
Staff has reviewed the bids and finds that the lowest responsible bidder, Belaire-
West Landscape, Inc., is a bona fide contractor licensed by the State of
California. The bid bond, in the amount of 10% of the total bid supplied by
Financial Pacific Insurance Company, a California Corporation, is in order and
was submitted with the bid. The contractor's references have been checked, and
it has been verified that the contractor has completed similar projects in an
acceptable manner.
An approximate schedule for this project is as follows:
Award of Contract July 5, 2005
Bonds and Agreement Submittal July 18, 2005
Approval by City Attorney July 20, 2005
z
City of Carson
Notice to Proceed
Start of Construction
Report to Mayor and City Council
Completion of Construction
V. FISCAL IMPACT
July 5, 2005
July 21, 2005
August 1, 2005
October 31, 2005
The estimated construction cost of this project is $292,220. The total estimated
cost, including inspection and contingency is $350,000. The Los Angeles
County Regional Park and Open Space District Grant No. 58B8-04-2058,
Account No. 22-80-999-004-8008/0099001, provides for $387,622.73 of the
total project cost, which is sufficient to cover the cost of this project.
VI. EXHIBITS
1. Location Map (pg. 4).
G:\PROJECTS\990 Carson Park\AGENDAS\07-05-05 CC AWARD CONTRACT PROJECT NO. 990, CARSON PARK IMPROVEMENTS.doc
Prepared by: MASSOUD GHIAM
sf:Rev061902
Reviewer] hv-
City Clerk
City Treasurer
Administrative Services
Development Services
Economic Development Services
Public Services
Action taken by City Council
Date Action
3
DSO CARSON
O
C) z
SEPULVEDA
Carson Park
PROJECT SITE
str
City of Carson N
PROJECT 994
CARSON PARK IMPROVEMENTS / 1
—1
zJ3 5 EXHIBIT NO. 1
,ad,omao,>o,�o
Unofficial Until Approved by
City Council
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (10) APPLICATION FOR FIREWORKS STORAGE PERMITS
(ADMINISTRATIVE SERVICES)
RECOMMENDATION for the City Council:
1. APPROVE the issuance of a Fireworks Storage Permit to Carson High Boosters Club,
Inc., Fraternal Order of Eagles Aerie #4001 and Carson Pirates. Traveling Baseball,
contingent upon their compliance with Section 3101.8 of the Carson Municipal Code.
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Gipson, seconded by Williams and unanimously carried by the following vote:
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (11) AWARD OF WORKERS' COMPENSATION THIRD PARTY
ADMINISTRATOR CONTRACT (ADMINISTRATIVE SERVICES)
RECOMMENDATION for the City Council:
1. AWARD a three-year contract for workers' compensation Third Party Administrator
services to Integrated Claims Administrators, Inc. (CA -ICA) for FY 2005/06, FY 2006/07
and FY 2007/08, in the amount of $106,200 ($35,400 per year).
ACTION: This item was Approved on the New Business Consent Calendar on motion of
Gipson, seconded by Williams and unanimously carried by the following vote:
Ayes: Mayor Dear, Mayor Pro Tem Ruiz-Raber, Council Member Santarina, Council
Member Williams, and Council Member Gipson
Noes: None
Abstain: None
Absent: None
ITEM NO. (12) AUTHORIZATION TO EXTEND THE FORTIS (ASSURANT) SHORT-
TERM AND LONG-TERM DISABILITY CONTRACTS AND TO -INCREASE
THE CONTRACT AMOUNTS PENDING REVIEW OF PROPOSALS
(ADMINISTRATIVE SERVICES)
Carson City Council
June 7, 2005
PAGE 12
I. SUMMARY
City of Carson
Report to Mayor and City Council
June 7, 2005
NEW BUSINESS CONSENT
The City contracted for workers' compensation Third Party Administrator (TPA)
services to Fleming and Associates effective August 1, 2002. Third Party
Administrators provide claims administration of all workers' compensation
claims. Fleming and Associates discontinued business on February 18, 2005.
Fleming and Associates did not give the City sufficient notice to allow
completion of the Request for Proposal (RFP) process. On February 15, 2005,
the City Council awarded an interim Third Party Administrator contract, for the
period February 21, 2005 through July 31, 2005, to Integrated Claims
Administrators, Inc. (CA -ICA) in order to allow the City time to complete the
RFP process.
II. RECOMMENDATION
AWARD a three-year contract for workers' compensation Third Party
Administrator services to Integrated Claims Administrators, Inc. (CA -ICA) for
the period of July 1, 2005 through June 30, 2008, in the amount of $106,200
($35,400 per year).
III. ALTERNATIVES
Select another firm to provide these services or reject the proposals and direct
staff to issue another request for proposal.
IV. BACKGROUND
Fleming and Associates has served as the City's workers' compensation TPA
since August 1, 2002. They notified the City on January 24, 2005 that the firm
planned to close its Southern California operation on February 18, 2005. An
interim TPA contract was awarded to Integrated Claims Administrators, Inc. to
allow time for the City to complete the RFP process. The City issued an RFP for
TPA services to 15 firms in February 2005. Proposals were received from eight
firms. One firm's proposal from Buckeye Administrators was rejected as
incomplete.
City of Carson Report to Mayor and City Council
June 7, 2005
The firms that responded were required to specifically address the areas of
claims administration, experience and training of claims staff, early return to
work program, medical and legal cost control, medical billing and management,
new workers' compensation laws, online computer capabilities and statistical
reports.
The proposals were evaluated and scored based on the items listed above as well
as on the quality of the proposal, references and cost. A copy of the evaluation
form used by the review committee is attached as Exhibit No. 1. The review
committee was composed of Sherrie Hamilton, Purchasing Manager, Ed Holton,
Sr. Risk Management Analyst and Terry Williams, Risk Management Analyst.
The three-member rating panel interviewed the top three proposers in accordance
with the RFP evaluation criteria and cost of the proposal. The scores were
averaged and then ranked and a final list compiled:
Firm Name
Integrated Claims Administrators
Acclamation Insurance
Management Services, Inc.
Claims Management Service
Tristar Risk Management
JT2
Colen and Lee
The Corvel Corporation
Three -Year Rank
Contract Amount
$ 106,200 1
$ 217,300 2
$ 359,861 3
$ 218,117 4
$173.,400 5
Did not quote annual 6
fee as requested
Did not quote annual 7
fee as requested
Claims administration services are complex due to new workers' compensation
laws and statutes. This has made it increasingly difficult to administer workers'
compensation claims. Costs have increased due to disputes and litigation over the
interpretation of new workers' compensation laws.
Each TPAs proposal quoted start-up costs associated with contract
implementation. These costs, which are included in the three-year contract
amount, are for computer claims data conversion, annual computer online access
and program implementation. TPAs have computer systems that are not
compatible with each other. Computerized claims data must be converted to the
new TPAs format before they can administer the City's workers' compensation
claims. These start-up costs are items that all TPAs now require in addition to
the annual claims administration fee.
To reduce escalating medical costs, new workers' compensation laws now
2
City of Carson Report to Mayor and City Council
June 7, 2005
require that TPAs provide medical utilization review services. Nurses and
doctors perform these state -required services for an hourly fee. These hourly
fees are not included in the annual claims administration fee. The top three TPAs
provide a "bundled" approach to third party claims administration services.
Bundling of claims administration services is the integration of third party claims
administration, medical bill review, utilization medical review, and in some
cases, legal and medical lien resolution under one program umbrella. TPAs
believe, and staff concurs, that integration of claims services leads to greater cost
savings through uniformity and standardization of the entire claims handling
process.
The committee recommends that the City Council award a contract to the firm of
Integrated Claims Administrators, Inc. (CA -ICA) because of their overall
approach to claims administration, familiarity with the City's operations, claims
cost savings potential, low claims administration fees and experience with public
entities. Provided for your information are the qualifications of the top three
proposers:
Integrated Claims Administrators, Inc. (CA -ICA): This company is minority-
owned. CA -ICA currently administers the City workers' compensation claims on
an interim basis while the City completes the RFP process. In a little more than
two months, Integrated Claims Administrators has closed 31 claims which saved
the City $180,817. CA -ICA has reviewed all of the City's claims and
implemented a plan of action to move the claims to conclusion. There will be no
charge for computer data conversion and program implementation because it was
already done when they became the interim provider. CA -ICA has quoted a
significantly lower price for its overall claims program. References provided
excellent responses regarding their experience with this firm. CA -ICA will meet
with City staff on a regular basis to discuss City claims and agrees to train
supervisors/managers on the workers' compensation claims process. CA -ICA is
familiar with the City's operations.
Acclamation Insurance Management Services, Inc (AIMS): This firm will
provide the City with a claims examiner that has 17 years of claims handling
experience. AIMS has a mix of private and public entity clients. The public
entity clients are concentrated in Central and Northern California. However,
they have an office in Pasadena that provides claims services for private
employers in Southern California. The Pasadena office would handle the City's
claims. References rated their overall experience with AIMS as "very good".
AIMS is committed to customer service and will keep employees informed about
their claims. Keeping employees informed about their claims will reduce
litigation. AIMS agrees to meet with City staff on a regular basis and train
supervisors/managers on the workers' compensation claims process. The data
3
City of Carson Report to Mayor and City Council
June 7, 2005
conversion fee is $2,500, which is reflected in their quote.
State Compensation Insurance Fund/Claims Management Service (CMS):
This Company is part of the State Compensation Insurance Fund, the largest
workers' compensation entity in the state. CMS has vast resources at its disposal
to handle workers' compensation claims. The claims examiner that would be
assigned to the City has 25 years of experience in the workers' compensation
industry. CMS has excellent training and support for claims staff. CMS will
meet with City staff on a regular basis to discuss City claims and agrees to train
supervisors/managers on the workers' compensation claims process. The
company will charge $1,750 for data conversion, $1,000 annually for licensing
and system support and $600 per terminal for computer online access. CMS'
approach to litigation management has led to significant legal costs savings to
their clients.
The top three TPAs had good references, public entity clients and can provide
quality TPA services for the City of Carson, however, staff believes that
Intergrated Claims Administrators, Inc. is the best choice for the City for the
reasons stated on the previous page.
Attached to this report is a draft Contract for Professional Services between the
City of Carson and Integrated Claims Administrators, Inc. (CA -ICA) (Exhibit
No. 2). This draft agreement was reviewed and approved by the City Attorney.
V. FISCAL IMPACT
Funds for this item will be included in the FY 2005/06, FY 2006/07 and FY
2007/08 budgets.
VI. EXHIBITS
1. Sample Evaluation Form (page 6)
2. Draft Agreement for Third Parry Claims Administrator Service between the
City of Carson and Integrated Claims Administrators (Pages 7-18).
3. Integrated Claims Administrators Proposal (available upon request)
Documents
Prepared by: Ed Holton, Sr. Risk Management Analyst
sf:Rev0619O2
[,eviewed by:
City Clerk City Treasurer
City of Carson Report to Mayor and City Council
June 7, 2005
Administrative Services
Development Services
Economic Development Services
Public Services
Action taken by City Council
Date Action
5