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C-20-044 - California Community Economic Development Association, Small Business Loan Program
CONTRACTSERVICESAGREEMENTByandBetweenCITYOFCARSONandCALIFORNIACOMMUNITYECONOMICDEVELOPMENTASSOCIATION(“CCEDA”) AGREEMENTFORCONTRACTSERVICESBETWEENTHECITYOFCARSONANDCALIFORNIACOMMUNITYECONOMICDEVELOPMENTASSOCIATIONTHISAGREEMENTFOJONTRACTSERVICES(herein“Agreement”)ismadeandenteredintothis7dayoftV\1V7(’,2020byandbetweentheCITYOfCARSON,aCaliforniamunicipalcorporation(“Cur”)andtheCALIFORNIACOMMUNITYECONOMICDEVELOPMENTASSOCIATION,aCalifornianonprofitpublicbenefitcorporation(“Consultant”and/or“CCEDA”).CityandConsultantaresometimeshereinafterindividuallyreferredtoas“Party”andhereinaftercollectivelyreferredtoasthe“Parties.”RECITALSA.CityhassoughttheperformanceoftheservicesdefinedanddescribedparticularlyinArticle1ofthisAgreement.B.Consultant,followingsubmissionofaproposalorbidfortheperformanceoftheservicesdefinedanddescribedparticularlyinArticle1ofthisAgreement,wasselectedbytheCitytoperformthoseservicesasasolesource,aspermittedinSection2611oftheCity’sMunicipalCode.C.PursuanttotheCityofCarson’sMunicipalCode,CityhasauthoritytoenterintoandexecutethisAgreement.D.ThePartiesdesiretoformalizetheselectionofConsultantforperformanceofthoseservicesdefinedanddescribedparticularlyinArticle1ofthisAgreementanddesirethatthetermsofthatperformancebeasparticularlydefinedanddescribedherein.OPERATIVEPROVISIONSNOW,THEREFORE,inconsiderationofthemutualpromisesandcovenantsmadebythePartiesandcontainedhereinandotherconsideration,thevalueandadequacyofwhichareherebyacknowledged,thepartiesagreeasfollows:ARTICLE1.SERVICESOFCONSULTANT1.1ScopeofServices.IncompliancewithalltermsandconditionsofthisAgreement,theConsultantshallprovidethoseservicesspecifiedinthe“ScopeofServices”attachedheretoasExhibit“A”andincorporatedhereinbythisreference,whichmaybereferredtohereinasthe“services”or“work”hereunder.AsamaterialinducementtotheCityenteringintothisAgreement,Consultantrepresentsandwarrantsthatithasthequalifications,experience,andfacilitiesnecessarytoproperlyperformtheservicesrequiredunderthisAgreementinathorough,competent,andprofessionalmanner,andisexperiencedinperformingtheworkandservicescontemplatedherein.Consultantshallatalltimesfaithfully,competentlyandtothebestofitsability,experienceandtalent,performallservicesdescribedherein.Consultantcovenantsthatitshallfollowthehighestprofessionalstandardsinperformingtheworkandservicesrequiredhereunder1— andthatallmaterialswillbebothofgoodqualityaswellasfitforthepurposeintended.ForpurposesofthisAgreement,thephrase“highestprofessionalstandards”shallmeanthosestandardsofpracticerecognizedbyoneormorefirst-classfirmsperformingsimilarworkundersimilarcircumstances.1.2Consultant’sProposal.TheScopeofServiceshallincludetheConsultant’sscopeofworkorbidwhichshallbeincorporatedhereinbythisreferenceasthoughfullysetforthherein.IntheeventofanyinconsistencybetweenthetermsofsuchproposalandthisAgreement,thetermsofthisAgreementshallgovern.1.3CompliancewithLaw.Consultantshallkeepitselfinformedconcerning,andshallrenderallserviceshereunderinaccordancewith,allordinances,resolutions,statutes,rules,andregulationsoftheCityandanyfederal,Stateorlocalgovernmentalentityhavingjurisdictionineffectatthetimeserviceisrendered.1.4Licenses,Permits,feesandAssessments.Consultantshallobtainatitssolecostandexpensesuchlicenses,permitsandapprovalsasmayberequiredbylawfortheperformanceoftheservicesrequiredbythisAgreement.Consultantshallhavethesoleobligationtopayforanyfees,assessmentsandtaxes,plusapplicablepenaltiesandinterest,whichmaybeimposedbylawandarisefromorarenecessaryfortheConsultant’sperformanceoftheservicesrequiredbythisAgreement,andshallindemnify,defendandholdharmlessCity,itsofficers,employeesoragentsofCity,againstanysuchfees,assessments,taxes,penaltiesorinterestlevied,assessedorimposedagainstCityhereunder.1.5familiaritywithWork.ByexecutingthisAgreement,ConsultantwarrantsthatConsultant(i)hasthoroughlyinvestigatedandconsideredthescopeofservicestobeperformed,(ii)hascarefullyconsideredhowtheservicesshouldbeperformed,and(iii)fullyunderstandsthefacilities,difficultiesandrestrictionsattendingperformanceoftheservicesunderthisAgreement.Iftheservicesinvolveworkuponanysite,ConsultantwarrantsthatConsultanthasorwillinvestigatethesiteandisorwillbefullyacquaintedwiththeconditionsthereexisting,priortocommencementofserviceshereunder.ShouldtheConsultantdiscoveranylatentorunknownconditions,whichwillmateriallyaffecttheperformanceoftheserviceshereunder,ConsultantshallimmediatelyinformtheCityofsuchfactandshallnotproceedexceptatConsultant’sriskuntilwritteninstructionsarereceivedfromtheContractOfficer.1.6CareofWork.TheConsultantshalladoptreasonablemethodsduringthelifeoftheAgreementtofurnishcontinuousprotectiontothework,andtheequipment,materials,papers,documents,plans,studiesand/orothercomponentsthereoftopreventlossesordamages,andshallbe2- responsibleforallsuchdamages,topersonsorproperty,untilacceptanceoftheworkbyCity,exceptsuchlossesordamagesasmaybecausedbyCity’sownnegligence.1.7FurtherResponsibilitiesofParties.BothpartiesagreetousereasonablecareanddiligencetoperformtheirrespectiveobligationsunderthisAgreement.Bothpartiesagreetoactingoodfaithtoexecuteallinstruments,preparealldocumentsandtakeallactionsasmaybereasonablynecessarytocarryoutthepurposesofthisAgreement.Unlesshereafterspecified,neitherpartyshallberesponsiblefortheserviceoftheother.1.8AdditionalServices.Cityshallhavetherightatanytimeduringtheperformanceoftheservices,withoutinvalidatingthisAgreement,toorderextraworkbeyondthatspecifiedintheScopeofServicesormakechangesbyaltering,addingtoordeductingfromsaidwork.NosuchextraworkmaybeundertakenunlessawrittenorderisfirstgivenbytheContractOfficertotheConsultant,incorporatingthereinanyadjustmentin(i)theContractSumfortheactualcostsoftheextrawork,and/or(ii)thetimetoperformthisAgreement,whichsaidadjustmentsaresubjecttothewrittenapprovaloftheConsultant.Anyincreaseincompensationofuptotenpercent(10%)oftheContractSumor$25,000,whicheverisless;or,inthetimetoperformofuptoonehundredeighty(180)days,maybeapprovedbytheContractOfficer.Anygreaterincreases,takeneitherseparatelyorcumulatively,mustbeapprovedbytheCityCouncil.ItisexpresslyunderstoodbyConsultantthattheprovisionsofthisSectionshallnotapplytoservicesspecificallysetforthintheScopeofServices.ConsultantherebyacknowledgesthatitacceptstheriskthattheservicestobeprovidedpursuanttotheScopeofServicesmaybemorecostlyortimeconsumingthanConsultantanticipatesandthatConsultantshallnotbeentitledtoadditionalcompensationtherefor.Citymayinitssoleandabsolutediscretionhavesimilarworkdonebyothercontractors.NoclaimsforanincreaseintheContractSumortimeforperformanceshallbevalidunlesstheproceduresestablishedinthisSectionarefollowed.1.9SpecialRequirements.AdditionattermsandconditionsofthisAgreement,ifany,whicharemadeaparthereofaresetforthinthe“SpecialRequirements”attachedheretoasExhibit“B”andincorporatedhereinbythisreference.IntheeventofaconflictbetweentheprovisionsofExhibit“B”andanyotherprovisionsofthisAgreement,theprovisionsofExhibit“B”shallgovern.ARTICLE2.COMPENSATIONANDMETHODOFPAYMENT.2.1ContractSum.SubjecttoanylimitationssetforthinthisAgreement,CityagreestopayConsultanttheamountsspecifiedinthe“ScheduleofCompensation”attachedheretoasExhibit“C”andincorporatedhereinbythisreference.Thetotalcompensation,includingreimbursementforactualexpenses,shallnotexceedSeventyFiveThousandDollars($75,000)(the“ContractSum”),unlessadditionalcompensationisapprovedpursuanttoSection1.8.3- 2.2MethodofCompensation.Themethodofcompensationmayinclude:(i)alumpsumpaymentuponcompletion;(ii)paymentinaccordancewithspecifiedtasksorthepercentageofcompletionoftheservices,lesscontractretention;(iii)paymentfortimeandmaterialsbasedupontheConsultant’sratesasspecifiedintheScheduleofCompensation,providedthat(a)timeestimatesareprovidedfortheperformanceofsubtasks,(b)contractretentionismaintained,and(c)theContractSumisnotexceeded;or(iv)suchothermethodsasmaybespecifiedintheScheduleofCompensation.2.3ReimbursableExpenses.Compensationmayincludereimbursementforactualandnecessaryexpendituresforreproductioncosts,telephoneexpenses,andtravelexpensesapprovedbytheContractOfficerinadvance,oractualsubcontractorexpensesofanapprovedsubcontractorpursuanttoSection4.5,andonlyifspecifiedintheScheduleofCompensation.TheContractSumshallincludetheattendanceofConsultantatallprojectmeetingsreasonablydeemednecessarybytheCity.CoordinationoftheperformanceoftheworkwithCityisacriticalcomponentoftheservices.IfConsultantisrequiredtoattendadditionalmeetingstofacilitatesuchcoordination,Consultantshallnotbeentitledtoanyadditionalcompensationforattendingsaidmeetings.2.4Invoices.EachmonthConsultantshallfurnishtoCityanoriginalinvoiceforallworkperformedandexpensesincurredduringtheprecedingmonthinaformapprovedbyCity’sDirectorofFinance.BysubmittinganinvoiceforpaymentunderthisAgreement,ConsultantiscertifyingcompliancewithallprovisionsoftheAgreement.Theinvoiceshalldetailchargesforallnecessaryandactualexpensesbythefollowingcategories:labor(bysub-category),travel,materials,equipment,supplies,andsubcontractorcontracts.Subcontractorchargesshallalsobedetailedbysuchcategories.ConsultantshallnotinvoiceCityforanyduplicateservicesperformedbymorethanoneperson.CityshallindependentlyrevieweachinvoicesubmittedbytheConsultanttodeterminewhethertheworkperformedandexpensesincurredareincompliancewiththeprovisionsofthisAgreement.ExceptastoanychargesforworkperformedorexpensesincurredbyConsultantwhicharedisputedbyCity,orasprovidedinSection7.3,CitywilluseitsbesteffortstocauseConsultanttobepaidwithinforty-five(45)daysofreceiptofConsultant’scorrectandundisputedinvoice;however,ConsultantacknowledgesandagreesthatduetoCitywarrantrunprocedures,theCitycannotguaranteethatpaymentwilloccurwithinthistimeperiod.IntheeventanychargesorexpensesaredisputedbyCity,theoriginalinvoiceshallbereturnedbyCitytoConsultantforcorrectionandresubmission.ReviewandpaymentbyCityforanyinvoiceprovidedbytheConsultantshallnotconstituteawaiverofanyrightsorremediesprovidedhereinoranyapplicablelaw.2.5Waiver.PaymenttoConsultantforworkperformedpursuanttothisAgreementshallnotbedeemedtowaiveanydefectsinworkperformedbyConsultant.4- ARTICLE3.PERFORMANCESCHEDULE3.1TimeofEssence.TimeisoftheessenceintheperformanceofthisAgreement.3.2ScheduleofPerformance.ConsultantshallcommencetheservicespursuanttothisAgreementuponreceiptofawrittennoticetoproceedandshallperformallserviceswithinthetimeperiod(s)establishedinthe“ScheduleofPerformance”attachedheretoasExhibit“D”andincorporatedhereinbythisreference.WhenrequestedbytheConsultant,extensionstothetimeperiod(s)specifiedintheScheduleofPerformancemaybeapprovedinwritingbytheContractOfficerbutnotexceedingonehundredeighty(1$0)dayscumulatively.3.3ForceMajeure.Thetimeperiod(s)specifiedintheScheduleofPerformanceforperformanceoftheservicesrenderedpursuanttothisAgreementshallbeextendedbecauseofanydelaysduetounforeseeablecausesbeyondthecontrolandwithoutthefaultornegligenceoftheConsultant,including,butnotrestrictedto,actsofGodorofthepublicenemy,unusuallysevereweather,fires,earthquakes,floods,epidemics,quarantinerestrictions,riots,strikes,freightembargoes,wars,litigation,and/oractsofanygovernmentalagency,includingtheCity,iftheConsultantshallwithinten(10)daysofthecommencementofsuchdelaynotifytheContractOfficerinwritingofthecausesofthedelay.TheContractOfficershallascertainthefactsandtheextentofdelay,andextendthetimeforperformingtheservicesfortheperiodoftheenforceddelaywhenandifinthejudgmentoftheContractOfficersuchdelayisjustified.TheContractOfficer’sdeterminationshallbefinalandconclusiveuponthepartiestothisAgreement.InnoeventshallConsultantbeentitledtorecoverdamagesagainsttheCityforanydelayintheperformanceofthisAgreement,howevercaused,Consultant’ssoleremedybeingextensionoftheAgreementpursuanttothisSection.3.4Term.UnlessearlierterminatedinaccordancewithArticle7ofthisAgreement,thisAgreementshallcontinueinfullforceandeffectuntilcompletionoftheservicesbutnotexceedingone(1)yearsfromthedatehereof,exceptasotherwiseprovidedintheScheduleofPerformance(Exhibit“D”).ARTICLE4.COORDINATIONOFWORK4.1RepresentativesandPersonnelofConsultant.ThefollowingprincipalsofConsultant(“Principals”)areherebydesignatedasbeingtheprincipalsandrepresentativesofConsultantauthorizedtoactinitsbehalfwithrespecttotheworkspecifiedhereinandmakealldecisionsinconnectiontherewith:RobertoBarragan,ExecutiveDirector5- (Name)(Title>flcie-p(Name)(Title)(Name)(Title)Itisexpresslyunderstoodthattheexperience,knowledge,capabilityandreputationoftheforegoingprincipalswereasubstantialinducementforCitytoenterintothisAgreement.Therefore,theforegoingprincipalsshallberesponsibleduringthetermofthisAgreementfordirectingallactivitiesofConsultantanddevotingsufficienttimetopersonallysupervisetheserviceshereunder.AllpersonnelofConsultant,andanyauthorizedagents,shallatalltimesbeundertheexclusivedirectionandcontrolofthePrincipals.forpurposesofthisAgreement,theforegoingPrincipalsmaynotbereplacednormaytheirresponsibilitiesbesubstantiallyreducedbyConsultantwithouttheexpresswrittenapprovalofCity.Additionally,ConsultantshallutilizeonlycompetentpersonneltoperformservicespursuanttothisAgreement.ConsultantshallmakeeveryreasonableefforttomaintainthestabilityandcontinuityofConsultant’sstaffandsubcontractors,ifany,assignedtoperformtheservicesrequiredunderthisAgreement.ConsultantshallnotifyCityofanychangesinConsultant’sstaffandsubcontractors,ifany,assignedtoperformtheservicesrequiredunderthisAgreement,priortoandduringanysuchperformance.4.2StatusofConsultant.ConsultantshallhavenoauthoritytobindCityinanymanner,ortoincuranyobligation,debtorliabilityofanykindonbehalfoforagainstCity,whetherbycontractorotherwise,unlesssuchauthorityisexpresslyconferredunderthisAgreementorisotherwiseexpresslyconferredinwritingbyCity.ConsultantshallnotatanytimeorinanymannerrepresentthatConsultantoranyofConsultant’sofficers,employees,oragentsareinanymannerofficials,officers,employeesoragentsofCity.NeitherConsultant,noranyofConsultant’sofficers,employeesoragents,shallobtainanyrightstoretirement,healthcareoranyotherbenefitswhichmayotherwiseaccruetoCity’semployees.ConsultantexpresslywaivesanyclaimConsultantmayhavetoanysuchrights.4.3ContractOfficer.TheContractOfficershallbeSharonL.Landers,CityManagerorsuchpersonasmaybedesignatedbytheCityManager.ItshallbetheConsultant’sresponsibilitytoassurethattheContractOfficeriskeptinformedoftheprogressoftheperformanceoftheservicesandtheConsultantshallreferanydecisionswhichmustbemadebyCitytotheContractOfficer.Unlessotherwisespecifiedherein,anyapprovalofCityrequiredhereundershallmeantheapprovaloftheContractOfficer.TheContractOfficershallhaveauthority,ifspecifiedinwritingbytheCityManager,tosignalldocumentsonbehalfoftheCityrequiredhereundertocarryoutthetermsofthisAgreement.6- 4.4IndependentConsultant.NeithertheCitynoranyofitsemployeesshallhaveanycontroloverthemanner,modeormeansbywhichConsultant,itsagentsoremployees,performtheservicesrequiredherein,exceptasotherwisesetforthherein.Cityshallhavenovoiceintheselection,discharge,supervisionorcontrolofConsultant’semployees,servants,representativesoragents,orinfixingtheirnumber,compensationorhoursofservice.ConsultantshallperformallservicesrequiredhereinasanindependentcontractorofCityandshallremainatalltimesastoCityawhollyindependentcontractorwithonlysuchobligationsasareconsistentwiththatrole.ConsultantshallnotatanytimeorinanymannerrepresentthatitoranyofitsagentsoremployeesareagentsoremployeesofCity.CityshallnotinanywayorforanypurposebecomeorbedeemedtobeapartnerofConsultantinitsbusinessorotherwiseorajointventureroramemberofanyjointenterprisewithConsultant.4.5ProhibitionAgainstSubcontractingorAssignment.Theexperience,knowledge,capabilityandreputationofConsultant,itsprincipalsandemployeeswereasubstantialinducementfortheCitytoenterintothisAgreement.Therefore,ConsultantshallnotcontractwithanyotherentitytoperforminwholeorinparttheservicesrequiredhereunderwithouttheexpresswrittenapprovaloftheCity.Inaddition,neitherthisAgreementnoranyinteresthereinmaybetransferred,assigned,conveyed,hypothecatedorencumberedvoluntarilyorbyoperationoflaw,whetherforthebenefitofcreditorsorotherwise,withoutthepriorwrittenapprovalofCity.Transfersrestrictedhereundershallincludethetransfertoanypersonorgroupofpersonsactinginconcertofmorethantwentyfivepercent(25%)ofthepresentownershipand/orcontrolofConsultant,takingalltransfersintoaccountonacumulativebasis.Intheeventofanysuchunapprovedtransfer,includinganybankruptcyproceeding,thisAgreementshallbevoid.NoapprovedtransfershallreleasetheConsultantoranysuretyofConsultantofanyliabilityhereunderwithouttheexpressconsentofCity.ARTICLE5.INSURANCEANDINDEMNIFICATION5.1InsuranceCoverages.TheConsultantshallprocureandmaintain,atitssolecostandexpense,inaformandcontentsatisfactorytoCity,duringtheentiretermofthisAgreementincludinganyextensionthereof,thefollowingpoliciesofinsurancewhichshallcoverallelectedandappointedofficers,employeesandagentsofCity:(a)GeneralLiabilityInsurance(OccurrenceFormCG0001orequivalent).Apolicyofcomprehensivegeneralliabilityinsurancewrittenonaperoccurrencebasisforbodilyinjury,personalinjuryandpropertydamage.Thepolicyofinsuranceshallbeinanamountnotlessthan$1,000,000.00peroccurrenceorifageneralaggregatelimitisused,thenthegeneralaggregatelimitshallbetwicetheoccurrencelimit.(b)Worker’sCompensationInsurance.Apolicyofworker’scompensationinsuranceinsuchamountaswillfullycomplywiththelawsoftheStateofCaliforniaandwhichshallindemnify,insureandprovidelegaldefensefortheConsultantagainstanyloss,claimordamagearisingfromanyinjuriesoroccupationaldiseasesoccurringtoanyworkeremployedby7- oranypersonsretainedbytheConsultantinthecourseofcarryingouttheworkorservicescontemplatedinthisAgreement.(c)AutomotiveInsurance(formCA0001(Ed1/87)including“anyauto”andendorsementCA0025orequivalent).Apolicyofcomprehensiveautomobileliabilityinsurancewrittenonaperoccurrenceforbodilyinjuryandpropertydamageinanamountnotlessthan$1,000,000.Saidpolicyshallincludecoverageforowned,non-owned,leased,hiredcarsandanyautomobile.(d)ProfessionalLiability.ProfessionalliabilityinsuranceappropriatetotheConsultant’sprofession.Thiscoveragemaybewrittenona“claimsmade”basis,andmustincludecoverageforcontractualliability.TheprofessionalliabilityinsurancerequiredbythisAgreementmustbeendorsedtobeapplicabletoclaimsbasedupon,arisingoutoforrelatedtoservicesperformedunderthisAgreement.Theinsurancemustbemaintainedforatleast5consecutiveyearsfollowingthecompletionofConsultant’sservicesortheterminationofthisAgreement.Duringthisadditional5-yearperiod,ConsultantshallannuallyanduponrequestoftheCitysubmitwrittenevidenceofthiscontinuouscoverage.(e)Subcontractors.Consultantshallincludeallsubcontractorsasinsuredsunderitspoliciesorshallfurnishseparatecertificatesandcertifiedendorsementsforeachsubcontractor.Allcoveragesforsubcontractorsshallincludealloftherequirementsstatedherein.(f)AdditionalInsurance.Policiesofsuchotherinsurance,asmayberequiredintheSpecialRequirementsinExhibit“B”.5.2GeneralInsuranceRequirements.AlloftheabovepoliciesofinsuranceshallbeprimaryinsuranceandshallnametheCity,itselectedandappointedofficers,employeesandagentsasadditionalinsuredsandanyinsurancemaintainedbyCityoritsofficers,employeesoragentsmayapplyinexcessof,andnotcontributewithConsultant’sinsurance.TheinsurerisdeemedhereoftowaiveallrightsofsubrogationandcontributionitmayhaveagainsttheCity,itsofficers,employeesandagentsandtheirrespectiveinsurers.Moreover,theinsurancepolicymustspecifythatwheretheprimaryinsureddoesnotsatisfytheself-insuredretention,anyadditionalinsuredmaysatisfytheselfinsuredretention.Allofsaidpoliciesofinsuranceshallprovidethatsaidinsurancemaynotbeamendedorcancelledbytheinsureroranypartyheretowithoutprovidingthirty(30)dayspriorwrittennoticebycertifiedmailreturnreceiptrequestedtotheCity.Intheeventanyofsaidpoliciesofinsurancearecancelled,theConsultantshall,priortothecancellationdate,submitnewevidenceofinsuranceinconformancewithSection5.1totheContractOfficer.NoworkorservicesunderthisAgreementshallcommenceuntiltheConsultanthasprovidedtheCitywithCertificatesofInsurance,additionalinsuredendorsementformsorappropriateinsurancebindersevidencingtheaboveinsurancecoveragesandsaidCertificatesofInsuranceorbindersareapprovedbytheCity.Cityreservestherighttoinspectcomplete,certifiedcopiesofandendorsementstoallrequiredinsurancepoliciesatanytime.Anyfailureto8- complywiththereportingorotherprovisionsofthepoliciesincludingbreachesorwarrantiesshallnotaffectcoverageprovidedtoCity.AllcertificatesshallnametheCityasadditionalinsured(providingtheappropriateendorsement)andshallconformtothefollowing“cancellation”notice:CANCELLATION:SHOULDANYOFTHEABOVEDESCRIBEDPOLICIESBECANCELLEDBEFORETHEEXPIRATIONDATEDTHEREOF,THEISSUINGCOMPANYSHALLMAILTHIRTY(30)-DAYADVANCEWRITTENNOTICETOCERTIFICATEHOLDERNAMEDHEREIN.[tobeinitialed]_________________ConsultntInitialsCity,itsrespectiveelectedandappointedofficers,directors,officials,employees,agentsandvolunteersaretobecoveredasadditionalinsuredsasrespects:liabilityarisingoutofactivitiesConsultantperforms;productsandcompletedoperationsofConsultant;premisesowned,occupiedorusedbyConsultant;oranyautomobilesowned,leased,hiredorborrowedbyConsultant.ThecoverageshallcontainnospeciallimitationsonthescopeofprotectionaffordedtoCity,andtheirrespectiveelectedandappointedofficers,officials,employeesorvolunteers.Consultant’sinsuranceshallapplyseparatelytoeachinsuredagainstwhomclaimismadeorsuitisbrought,exceptwithrespecttothelimitsoftheinsurer’sliability.Anydeductiblesorself-insuredretentionsmustbedeclaredtoandapprovedbyCity.AttheoptionofCity,eithertheinsurershallreduceoreliminatesuchdeductiblesorself-insuredretentionsasrespectsCityoritsrespectiveelectedorappointedofficers,officials,employeesandvolunteersortheConsultantshallprocureabondguaranteeingpaymentoflossesandrelatedinvestigations,claimadministration,defenseexpensesandclaims.TheConsultantagreesthattherequirementtoprovideinsuranceshallnotbeconstruedaslimitinginanywaytheextenttowhichtheConsultantmaybeheldresponsibleforthepaymentofdamagestoanypersonsorpropertyresultingfromtheConsultant’sactivitiesortheactivitiesofanypersonorpersonsforwhichtheConsultantisotherwiseresponsiblenorshallitlimittheConsultant’sindemnificationliabilitiesasprovidedinSection5.3.IntheeventtheConsultantsubcontractsanyportionoftheworkincompliancewithSection4.5ofthisAgreement,thecontractbetweentheConsultantandsuchsubcontractorshallrequirethesubcontractortomaintainthesamepoliciesofinsurancethattheConsultantisrequiredtomaintainpursuanttoSection5.1,andsuchcertificatesandendorsementsshallbeprovidedtoCity.5.3Indemnification.Tothefullextentpermittedbylaw,Consultantagreestoindemnify,defendandholdharmlesstheCity,itsofficers,employeesandagents(“IndemnifiedParties”)against,andwillholdandsavethemandeachofthemharmlessfrom,anyandallactions,eitherjudicial,9- administrative,arbitrationorregulatoryclaims,damagestopersonsorproperty,losses,costs,penalties,obligations,errors,omissionsorliabilitieswhetheractualorthreatened(herein“claimsorliabilities”)thatmaybeassertedorclaimedbyanyperson,firmorentityarisingoutoforinconnectionwiththenegligentperformanceofthework,operationsoractivitiesprovidedhereinofConsultant,itsofficers,employees,agents,subcontractors,orinvitees,oranyindividualorentityforwhichConsultantislegallyliable(“indemnitors”),orarisingfromConsultant’sorindenmitors’recklessorwillfulmisconduct,orarisingfromConsultant’sorindenmitors’negligentperformanceoforfailuretoperformanyterm,provision,covenantorconditionofthisAgreement,andinconnectiontherewith:(a)Consultantwilldefendanyactionoractionsfiledinconnectionwithanyofsaidclaimsorliabilitiesandwillpayallcostsandexpenses,includinglegalcostsandattorneys’feesincurredinconnectiontherewith;(b)ConsultantwillpromptlypayanyjudgmentrenderedagainsttheCity,itsofficers,agentsoremployeesforanysuchclaimsorliabilitiesarisingoutoforinconnectionwiththenegligentperformanceoforfailuretoperformsuchwork,operationsoractivitiesofConsultanthereunder;andConsultantagreestosaveandholdtheCity,itsofficers,agents,andemployeesharmlesstherefrom;(c)IntheeventtheCity,itsofficers,agentsoremployeesismadeapartytoanyactionorproceedingfiledorprosecutedagainstConsultantforsuchdamagesorotherclaimsarisingoutoforinconnectionwiththenegligentperformanceoforfailuretoperformthework,operationoractivitiesofConsultanthereunder,ConsultantagreestopaytotheCity,itsofficers,agentsoremployees,anyandallcostsandexpensesincurredbytheCity,itsofficers,agentsoremployeesinsuchactionorproceeding,includingbutnotlimitedto,legalcostsandattorneys’fees.ConsultantshallincorporatesimilarindemnityagreementswithitssubcontractorsandifitfailstodosoConsultantshallbefullyresponsibletoindemnifyCityhereundertherefore,andfailureofCitytomonitorcompliancewiththeseprovisionsshallnotbeawaiverhereof.Thisindemnificationincludesclaimsorliabilitiesarisingfromanynegligentorwrongfulact,errororomission,orrecklessorwillfulmisconductofConsultantintheperformanceofprofessionalserviceshereunder.TheprovisionsofthisSectiondonotapplytoclaimsorliabilitiesoccurringasaresultofCity’ssolenegligenceorwillfulactsoromissions,but,tothefullestextentpermittedbylaw,shallapplytoclaimsandliabilitiesresultinginpartfromCity’snegligence,exceptthatdesignprofessionals’indemnityhereundershallbelimitedtoclaimsandliabilitiesarisingoutofthenegligence,recklessnessorwillfulmisconductofthedesignprofessional.TheindemnityobligationshallbebindingonsuccessorsandassignsofConsultantandshallsurviveterminationofthisAgreement.5.4SufficiencyofInsurer.InsurancerequiredbythisAgreementshallbesatisfactoryonlyifissuedbycompaniesqualifiedtodobusinessinCalifornia,rated“A”orbetterinthemostrecenteditionofBestRatingGuide,TheKeyRatingGuideorinthefederalRegister,andonlyiftheyareofafinancialcategoryClassVIIorbetter,unlesssuchrequirementsarewaivedbytheRiskManager10- oftheCity(“RiskManager”)duetouniquecircumstances.IfthisAgreementcontinuesformorethan3yearsduration,orintheeventtheriskmanagerdeterminesthattheworkorservicestobeperformedunderthisAgreementcreatesanincreasedordecreasedriskoflosstotheCity,theConsultantagreesthattheminimumlimitsoftheinsurancepoliciesmaybechangedaccordinglyuponreceiptofwrittennoticefromtheRiskManager.ARTICLE6.RECORDS,REPORTS,ANDRELEASEOFINFORMATION6.1Records.Consultantshallkeep,andrequiresubcontractorstokeep,suchledgers,booksofaccounts,invoices,vouchers,canceledchecks,reports,studiesorotherdocumentsrelatingtothedisbursementschargedtoCityandservicesperformedhereunder(the“booksandrecords”),asshallbenecessarytoperformtheservicesrequiredbythisAgreementandenabletheContractOfficertoevaluatetheperformanceofsuchservices.Anyandallsuchdocumentsshallbemaintainedinaccordancewithgenerallyacceptedaccountingprinciplesandshallbecompleteanddetailed.TheContractOfficershallhavefullandfreeaccesstosuchbooksandrecordsatalltimesduringnormalbusinesshoursofCity,includingtherighttoinspect,copy,auditandmakerecordsandtranscriptsfromsuchrecords.Suchrecordsshallbemaintainedforaperiodofthree(3)yearsfollowingcompletionoftheserviceshereunder,andtheCityshallhaveaccesstosuchrecordsintheeventanyauditisrequired.IntheeventofdissolutionofConsultant’sbusiness,custodyofthebooksandrecordsmaybegiventoCity,andaccessshallbeprovidedbyConsultant’ssuccessorininterest.Notwithstandingtheabove,theConsultantshallfullycooperatewiththeCityinprovidingaccesstothebooksandrecordsifapublicrecordsrequestismadeanddisclosureisrequiredbylawincludingbutnotlimitedtotheCaliforniaPublicRecordsAct.6.2Reports.ConsultantshallperiodicallyprepareandsubmittotheContractOfficersuchreportsconcerningtheperformanceoftheservicesrequiredbythisAgreementastheContractOfficershallrequire.ConsultantherebyacknowledgesthattheCityisgreatlyconcernedaboutthecostofworkandservicestobeperformedpursuanttothisAgreement.Forthisreason,ConsultantagreesthatifConsultantbecomesawareofanyfacts,circumstances,techniques,oreventsthatmayorwillmateriallyincreaseordecreasethecostoftheworkorservicescontemplatedhereinor,ifConsultantisprovidingdesignservices,thecostoftheprojectbeingdesigned,ConsultantshallpromptlynotifytheContractOfficerofsaidfact,circumstance,techniqueoreventandtheestimatedincreasedordecreasedcostrelatedtheretoand,ifConsultantisprovidingdesignservices,theestimatedincreasedordecreasedcostestimatefortheprojectbeingdesigned.6.3OwnershipofDocuments.Alldrawings,specifications,maps,designs,photographs,studies,surveys,data,notes,computerfiles,reports,records,documentsandothermaterials(the“documentsandmaterials”)preparedbyConsultant,itsemployees,subcontractorsandagentsintheperformanceofthisAgreementshallbethepropertyofCityandshallbedeliveredtoCityuponrequestoftheContractOfficerorupontheterminationofthisAgreement,andConsultantshallhavenoclaim11— forfurtheremploymentoradditionalcompensationasaresultoftheexercisebyCityofitsfullrightsofownershipuse,reuse,orassignmentofthedocumentsandmaterialshereunder.Anyuse,reuseorassignmentofsuchcompleteddocumentsforotherprojectsandloruseofuncompleteddocumentswithoutspecificwrittenauthorizationbytheConsultantwillbeattheCity’ssoleriskandwithoutliabilitytoConsultant,andConsultant’sguaranteeandwarrantiesshallnotextendtosuchuse,reuseorassignment.Consultantmayretaincopiesofsuchdocumentsforitsownuse.Consultantshallhavetherighttousetheconceptsembodiedtherein.AllsubcontractorsshallprovideforassignmenttoCityofanydocumentsormaterialspreparedbythem,andintheeventConsultantfailstosecuresuchassignment,ConsultantshallindemnifyCityforalldamagesresultingtherefrom.Moreover,Consultantwithrespecttoanydocumentsandmaterialsthatmayqualifyas“worksmadeforhire”asdefinedin17U.S.C.§101,suchdocumentsandmaterialsareherebydeemed“worksmadeforhire”fortheCity.6.4ConfidentialityandReleaseofInformation.(a)AllinformationgainedorworkproductproducedbyConsultantinperformanceofthisAgreementshallbeconsideredconfidential,unlesssuchinformationisinthepublicdomainoralreadyknowntoConsultant.ConsultantshallnotreleaseordiscloseanysuchinformationorworkproducttopersonsorentitiesotherthanCitywithoutpriorwrittenauthorizationfromtheContractOfficer.(b)Consultant,itsofficers,employees,agentsorsubcontractors,shallnot,withoutpriorwrittenauthorizationfromtheContractOfficerorunlessrequestedbytheCityAttorney,voluntarilyprovidedocuments,declarations,lettersofsupport,testimonyatdepositions,responsetointerrogatoriesorotherinformationconcerningtheworkperformedunderthisAgreement.Responsetoasubpoenaorcourtordershallnotbeconsidered“voluntary”providedConsultantgivesCitynoticeofsuchcourtorderorsubpoena.(c)IfConsultant,oranyofficer,employee,agentorsubcontractorofConsultant,providesanyinformationorworkproductinviolationofthisAgreement,thenCityshallhavetherighttoreimbursementandindemnityfromConsultantforanydamages,costsandfees,includingattorneysfees,causedbyorincurredasaresultofConsultant’sconduct.(d)ConsultantshallpromptlynotifyCityshouldConsultant,itsofficers,employees,agentsorsubcontractorsbeservedwithanysummons,complaint,subpoena,noticeofdeposition,requestfordocuments,interrogatories,requestforadmissionsorotherdiscoveryrequest,courtorderorsubpoenafromanypartyregardingthisAgreementandtheworkperformedthereunder.Cityretainstheright,buthasnoobligation,torepresentConsultantorbepresentatanydeposition,hearingorsimilarproceeding.ConsultantagreestocooperatefullywithCityandtoprovideCitywiththeopportunitytoreviewanyresponsetodiscoveryrequestsprovidedbyConsultant.However.thisrighttoreviewanysuchresponsedoesnotimplyormeantherightbyCitytocontrol,direct,orrewritesaidresponse.12- ARTICLE7.ENFORCEMENTOFAGREEMENTANDTERMINATION7.1CaliforniaLaw.ThisAgreementshallbeinterpreted,construedandgovernedbothastovalidityandtoperformanceofthepartiesinaccordancewiththelawsoftheStateofCalifornia.Legalactionsconcerninganydispute,claimormatterarisingoutoforinrelationtothisAgreementshallbeinstitutedintheSuperiorCourtoftheCountyofLosAngeles,StateofCalifornia,oranyotherappropriatecourtinsuchcounty,andConsultantcovenantsandagreestosubmittothepersonaljurisdictionofsuchcourtintheeventofsuchaction.IntheeventoflitigationinaU.S.DistrictCourt,venueshalllieexclusivelyintheCentralDistrictofCalifornia,intheCountyofLosAngeles,StateofCalifornia.7.2DisputesDefault.IntheeventthatConsultantisindefaultunderthetermsofthisAgreement,theCityshallnothaveanyobligationordutytocontinuecompensatingConsultantforanyworkperformedafierthedateofdefault.Instead,theCitymaygivenoticetoConsultantofthedefaultandthereasonsforthedefault.ThenoticeshallincludethetimeframeinwhichConsultantmaycurethedefault.Thistimeframeispresumptivelythirty(30)days,butmaybeextended,thoughnotreduced,ifcircumstanceswanant.DuringtheperiodoftimethatConsultantisindefault.theCityshallholdallinvoicesandshall,whenthedefaultiscured,proceedwithpaymentontheinvoices.Inthealternative,theCitymay,initssolediscretion,electtopaysomeoralloftheoutstandinginvoicesduringtheperiodofdefault.IfConsultantdoesnotcurethedefault,theCitymaytakenecessarystepstoterminatethisAgreementunderthisArticle.AnyfailureonthepartoftheCitytogivenoticeoftheConsultant’sdefaultshallnotbedeemedtoresultinawaiveroftheCity’slegalrightsoranyrightsarisingoutofanyprovisionofthisAgreement.7.3Retentionoffunds.ConsultantherebyauthorizesCitytodeductfromanyamountpayabletoConsultant(whetherornotarisingoutofthisAgreement)(i)anyamountsthepaymentofwhichmaybeindisputehereunderorwhicharenecessarytocompensateCityforanylosses,costs,liabilities,ordamagessufferedbyCity,and(ii)allamountsforwhichCitymaybeliabletothirdparties,byreasonofConsultant’sactsoromissionsinperformingorfailingtoperformConsultant’sobligationunderthisAgreement.Intheeventthatanyclaimismadebyathirdparty,theamountorvalidityofwhichisdisputedbyConsultant,oranyindebtednessshallexistwhichshallappeartobethebasisforaclaimoflien,Citymaywithholdfromanypaymentdue,withoutliabilityforinterestbecauseofsuchwithholding,anamountsufficienttocoversuchclaim.ThefailureofCitytoexercisesuchrighttodeductortowithholdshallnot,however,affecttheobligationsoftheConsultanttoinsure,indemnify,andprotectCityaselsewhereprovidedherein.7.4Waiver.WaiverbyanypartytothisAgreementofanyterm,condition,orcovenantofthisAgreementshallnotconstituteawaiverofanyotherterm,condition,orcovenant.WaiverbyanypartyofanybreachoftheprovisionsofthisAgreementshallnotconstituteawaiverofanyotherprovisionorawaiverofanysubsequentbreachorviolationofanyprovisionofthisAgreement.13- AcceptancebyCityofanyworkorservicesbyConsultantshallnotconstituteawaiverofanyoftheprovisionsofthisAgreement.Nodelayoromissionintheexerciseofanyrightorremedybyanon-defaultingpartyonanydefaultshallimpairsuchrightorremedyorbeconstruedasawaiver.AnywaiverbyeitherpartyofanydefaultmustbeinwritingandshallnotbeawaiverofanyotherdefaultconcerningthesameoranyotherprovisionofthisAgreement.7.5RightsandRemediesareCumulative.ExceptwithrespecttorightsandremediesexpresslydeclaredtobeexclusiveinthisAgreement,therightsandremediesofthepartiesarecumulativeandtheexercisebyeitherpartyofoneormoreofsuchrightsorremediesshallnotprecludetheexercisebyit,atthesameordifferenttimes,ofanyotherrightsorremediesforthesamedefaultoranyotherdefaultbytheotherparty.7.6LegalAction.Inadditiontoanyotherrightsorremedies,eitherpartymaytakelegalaction,inlaworinequity,tocure,correctorremedyanydefault,torecoverdamagesforanydefault,tocompelspecificperformanceofthisAgreement,toobtaindeclaratoryorinjunctiverelief,ortoobtainanyotherremedyconsistentwiththepurposesofthisAgreement.Notwithstandinganycontraryprovisionherein,ConsultantshallfileastatutoryclaimpursuanttoGovernmentCodeSections905et.seq.and910et.seq.,inordertopursuealegalactionunderthisAgreement.7.7TerminationPriortoExpirationofTerm.ThisSectionshallgovernanyterminationofthisContractexceptasspecificallyprovidedinthefollowingSectionforterminationforcause.TheCityreservestherighttoterminatethisContractatanytime,withorwithoutcause,uponthirty(30)days’writtennoticetoConsultant,exceptthatwhereterminationisduetothefaultoftheConsultant,theperiodofnoticemaybesuchshortertimeasmaybedeterminedbytheContractOfficer.Inaddition,theConsultantreservestherighttoterminatethisContractatanytime,withorwithoutcause,uponsixty(60)days’writtennoticetoCity,exceptthatwhereterminationisduetothefaultoftheCity,theperiodofnoticemaybesuchshortertimeastheConsultantmaydetermine.Uponreceiptofanynoticeoftermination,ConsultantshallimmediatelyceaseallserviceshereunderexceptsuchasmaybespecificallyapprovedbytheContractOfficer.ExceptwheretheConsultanthasinitiatedtermination,theConsultantshallbeentitledtocompensationforallservicesrenderedpriortotheeffectivedateofthenoticeofterminationandforanyservicesauthorizedbytheContractOfficerthereafterinaccordancewiththeScheduleofCompensationorsuchasmaybeapprovedbytheContractOfficer,exceptasprovidedinSection7.3.IntheeventtheConsultanthasinitiatedtermination,theConsultantshallbeentitledtocompensationonlyforthereasonablevalueoftheworkproductactuallyproducedhereunder.IntheeventofterminationwithoutcausepursuanttothisSection,theterminatingpartyneednotprovidethenon-terminatingpartywiththeopportunitytocurepursuanttoSection7.2.7.8TerminationforDefaultofConsultant.IfterminationisduetothefailureoftheConsultanttofulfillitsobligationsunderthisAgreement,Citymay,aftercompliancewiththeprovisionsofSection7.2,takeoverthework14- andprosecutethesametocompletionbycontractorotherwise,andtheConsultantshallbeliabletotheextentthatthetotalcostforcompletionoftheservicesrequiredhereunderexceedsthecompensationhereinstipulated(providedthattheCityshallusereasonableeffortstomitigatesuchdamages),andCitymaywithholdanypaymentstotheConsultantforthepurposeofset-offorpartialpaymentoftheamountsowedtheCityaspreviouslystated.7.9Attorneys’Fees.IfeitherpartytothisAgreementisrequiredtoinitiateordefendormadeapartytoanyactionorproceedinginanywayconnectedwiththisAgreement,theprevailingpartyinsuchactionorproceeding,inadditiontoanyotherreliefwhichmaybegranted,whetherlegalorequitable,shallbeentitledtoreasonableattorney’sfees.Attorney’sfeesshallincludeattorney’sfeesonanyappeal,andinadditionapartyentitledtoattorney’sfeesshallbeentitledtoallotherreasonablecostsforinvestigatingsuchaction,takingdepositionsanddiscoveryandallothernecessarycoststhecourtallowswhichareincurredinsuchlitigation.Allsuchfeesshallbedeemedtohaveaccruedoncommencementofsuchactionandshallbeenforceablewhetherornotsuchactionisprosecutedtojudgment.ARTICLE8.CITYOFFICERSANDEMPLOYEES:NON-DISCRIMINATION8.1Non-liabilityofCityOfficersandEmployees.NoofficeroremployeeoftheCityshallbepersonallyliabletotheConsultant,oranysuccessorininterest,intheeventofanydefaultorbreachbytheCityorforanyamountwhichmaybecomeduetotheConsultantortoitssuccessor,orforbreachofanyobligationofthetermsofthisAgreement.8.2ConflictofInterest.Consultantcovenantsthatneitherit,noranyofficerorprincipalofitsfirm,hasorshallacquireanyinterest,directlyorindirectly,whichwouldconflictinanymannerwiththeinterestsofCityorwhichwouldinanywayhinderConsultant’sperformanceofservicesunderthisAgreement.ConsultantfurthercovenantsthatintheperformanceofthisAgreement,nopersonhavinganysuchinterestshallbeemployedbyitasanofficer,employee,agentorsubcontractorwithouttheexpresswrittenconsentoftheContractOfficer.ConsultantagreestoatalltimesavoidconflictsofinterestortheappearanceofanyconflictsofinterestwiththeinterestsofCityintheperformanceofthisAgreement.NoofficeroremployeeoftheCityshallhaveanyfinancialinterest,directorindirect,inthisAgreementnorshallanysuchofficeroremployeeparticipateinanydecisionrelatingtotheAgreementwhichaffectsher/hisfinancialinterestorthefinancialinterestofanycorporation,partnershiporassociationinwhich(s)heis,directlyorindirectly,interested,inviolationofanyStatestatuteorregulation.TheConsultantwarrantsthatithasnotpaidorgivenandwillnotpayorgiveanythirdpartyanymoneyorotherconsiderationforobtainingthisAgreement.15- 8.3CovenantAgainstDiscrimination.Consultantcovenantsthat,byandforitself,itsheirs,executors,assigns,andallpersonsclaimingunderorthroughthem,thatthereshallbenodiscriminationagainstorsegregationof,anypersonorgroupofpersonsonaccountofrace,color,creed,religion,sex,gender,sexualorientation,maritalstatus,nationalorigin,ancestryorotherprotectedclassintheperformanceofthisAgreement.Consultantshalltakeaffirmativeactiontoinsurethatapplicantsareemployedandthatemployeesaretreatedduringemploymentwithoutregardtotheirrace,color,creed,religion,sex,gender,sexualorientation,maritalstatus,nationalorigin,ancestryorotherprotectedclass.8.4UnauthorizedAliens.ConsultantherebypromisesandagreestocomplywithalloftheprovisionsoftheFederalImmigrationandNationalityAct,8U.S.C.A.§1101,etseq.,asamended,andinconnectiontherewith,shallnotemployunauthorizedaliensasdefinedtherein.ShouldConsultantsoemploysuchunauthorizedaliensfortheperformanceofworkand/orservicescoveredbythisAgreement,andshouldanyliabilityorsanctionsbeimposedagainstCityforsuchuseofunauthorizedaliens,ConsultantherebyagreestoandshallreimburseCityforthecostofallsuchliabilitiesorsanctionsimposed,togetherwithanyandallcosts,includingattorneys’fees,incurredbyCity.ARTICLE9.MISCELLANEOUSPROVISIONS9.1Notices.Anynotice,demand,request,document,consent,approval,orcommunicationeitherpartydesiresorisrequiredtogivetotheotherpartyoranyotherpersonshallbeinwritingandeitherservedpersonallyorsentbyprepaid,first-classmail,inthecaseoftheCity,totheCityManagerandtotheattentionoftheContractOfficer(withher/hisnameandCitytitle),CityofCarson,701EastCarson,Carson,California90745andinthecaseoftheConsultant,totheperson(s)attheaddressdesignatedontheexecutionpageofthisAgreement.Eitherpartymaychangeitsaddressbynotifyingtheotherpartyofthechangeofaddressinwriting.Noticeshallbedeemedcommunicatedatthetimepersonallydeliveredorinseventy-two(72)hoursfromthetimeofmailingifmailedasprovidedinthisSection.9.2Interpretation.ThetermsofthisAgreementshallbeconstruedinaccordancewiththemeaningofthelanguageusedandshallnotbeconstruedfororagainsteitherpartybyreasonoftheauthorshipofthisAgreementoranyotherruleofconstructionwhichmightotherwiseapply.9.3Counterparts.ThisAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedtobeanoriginal,andsuchcounterpartsshallconstituteoneandthesameinstrument.16- 9.4Integration;Amendment.ThisAgreementincludingtheattachmentsheretoistheentire,completeandexclusiveexpressionoftheunderstandingoftheparties.ItisunderstoodthattherearenooralagreementsbetweenthepartiesheretoaffectingthisAgreementandthisAgreementsupersedesandcancelsanyandallpreviousnegotiations,arrangements,agreementsandunderstandings,ifany,betweentheparties,andnoneshallbeusedtointerpretthisAgreement.NoamendmenttoormodificationofthisAgreementshallbevalidunlessmadeinwritingandapprovedbytheConsultantandbytheCityCouncil.Thepartiesagreethatthisrequirementforwrittenmodificationscannotbewaivedandthatanyattemptedwaivershallbevoid.9.5Severability.Intheeventthatanyoneormoreofthephrases,sentences,clauses,paragraphs,orsectionscontainedinthisAgreementshallbedeclaredinvalidorunenforceablebyavalidjudgmentordecreeofacourtofcompetentjurisdiction,suchinvalidityorunenforceabilityshallnotaffectanyoftheremainingphrases,sentences,clauses,paragraphs,orsectionsofthisAgreementwhichareherebydeclaredasseverableandshallbeinterpretedtocarryouttheintentofthepartieshereunderunlesstheinvalidprovisionissomaterialthatitsinvaliditydepriveseitherpartyofthebasicbenefitoftheirbargainorrendersthisAgreementmeaningless.9.6Warranty&RepresentationofNon-Collusion.Noofficial,officer,oremployeeofCityhasanyfinancialinterest,directorindirect,inthisAgreement,norshallanyofficial,officer,oremployeeofCityparticipateinanydecisionrelatingtothisAgreementwhichmayaffecthis/herfinancialinterestorthefinancialinterestofanycorporation,partnership,orassociationinwhich(s)heisdirectlyorindirectlyinterested,orinviolationofanycorporation,partnership,orassociationinwhich(s)heisdirectlyorindirectlyinterested,orinviolationofanyStateormunicipalstatuteorregulation.Thedeterminationof“financialinterest”shallbeconsistentwithStatelawandshallnotincludeinterestsfoundtobe“remote”or“non-interests”pursuanttoGovernmentCodeSections1091or1091.5.Consultantwarrantsandrepresentsthatithasnotpaidorgiven,andwillnotpayorgive,toanythirdpartyincluding,butnotlimitedto,anyCityofficial,officer,oremployee,anymoney,consideration,orotherthingofvalueasaresultorconsequenceofobtainingorbeingawardedanyagreement.Consultantfurtherwarrantsandrepresentsthat(s)he/ithasnotengagedinanyact(s),omission(s),orotherconductorcollusionthatwouldresultinthepaymentofanymoney,consideration,orotherthingofvaluetoanythirdpartyincluding,butnotlimitedto,anyCityofficial,officer,oremployee,asaresultofconsequenceofobtainingorbeingawardedanyagreement.Consultantisawareofandunderstandsthatanysuchact(s),omission(s)orotherconductresultinginsuchpaymentofmoney,consideration,orotherthingofvaluewillrenderthisAgreementvoidandofnoforceoreffect.Consultant’sAuthorizedInitials________9.7CorporateAuthority.ThepersonsexecutingthisAgreementonbehalfofthepartiesheretowarrantthat(i)suchpartyisdulyorganizedandexisting,(ii)theyaredulyauthorizedtoexecuteanddeliverthis17- Agreementonbehalfofsaidparty,(iii)bysoexecutingthisAgreement,suchpartyisformallyboundtotheprovisionsofthisAgreement,and(iv)theenteringintothisAgreementdoesnotviolateanyprovisionofanyotherAgreementtowhichsaidpartyisbound.ThisAgreementshallbebindingupontheheirs,executors,administrators,successorsandassignsoftheparties.[SIGNATURESONFOLLOWINGPAGE]18- INWITNESSWHEREOF.thepartiesheretohaveexecutedthisAgreementonthedateandyearfirst-abovewritten.CITY:CITYOfCARSON,amunicipalcorporationAlbertRobles,MayorATTEST:DonesiaL.Gause,CityClerkAPPROVEDASTOFORM:ALESHRE&WYNDER,LLPSunnyK.Soltani,CityAttorney[rj1]CONSULTANT:CALIFORNIACOMMUNITYECONOMICDEVELOPMENTASSOCIATION,aCalifornianonprofitpublicbenefitcorporationBy:__________________________Name:RobertoBarraganTitle:ExecutiveDirectorBy:___________________________Name:Title:Address:244S.SanPedroStreet,Suite412LosAngeles,CA90012TwocorporateofficersignaturesrequiredwhenConsultantisacorporation,withonesignaturerequiredfromeachofthefollowinggroups:I)ChairmanoftheBoard,PresidentoranyVicePresident;and2)Secretary,anyAssistantSecretary,ChiefFinancialOfficeroranyAssistantTreasurer.CONSULTANT’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETOCONSULTANT’SBUSINESSENTITY.19- INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedateandyearfirst-abovewritten.SunnyK.Soltani,[nI]CityAttorneyCONSULTANT:CALIFORNIADEVELOPMENTnonprofitpublicbenefitcorporationBy:Name:RobertoBarraganTit1eExecutiveDirectorBy:Name:SC7ct..iTitle:Address:244S.SanPedroStreet,Suite412LosAngeles,CA90012TwocorporateofficersignaturesrequiredwhenConsultantisacorporation,withonesignaturerequiredfromeachofthefollowinggroups:1)ChairmanoftheBoard,PresidentoranyVicePresident;and2)Secretary,anyAssistantSecretary,ChiefFinancialOfficeroranyAssistantTreasurer.CONSULTANT’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETOCONSULTANT’SBUSINESSENTITY.APPROVEDASTOFORM:ALESHIRE&WYNDER,LLPCOMMUNITYECONOMICASSOCIATION,aCalifornia19- INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedateandyearfirst-abovewritten.CITY:CITYOfCARSON,amunicipalcorporationAlbertRobles,MayorATTEST:DonesiaL.Gause,CityClerkAPPROVEDASTOFORM:ALESHIRE&WYNDER,LLPSunnyK.Soltani,CityAttorney[rjl]CONSULTANT:CALIFORNIACOMMUNITYECONOMICDEVELOPMENTASSOCIATION,aCalifornianonprofitpublicbenefitcorporationBy:______Name:Title:Address:2445.SanPedroStreet,Suite412LosAngeles,CA90012TwocorporateofficersignaturesrequiredwhenConsultantisacorporation,withonesignaturerequiredfromeachofthefollowinggroups:1)ChairmanoftheBoard,PresidentoranyVicePresident;and2)Secretary,anyAssistantSecretary,ChiefFinancialOfficeroranyAssistantTreasurer.CONSULTANT’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETOCONSULTANT’SBUSINESSENTITY.19- CALIFORNIAACKNOWLEDGMENTCIVILCODE§1189Anotarypublicorotherofficercompletingthiscertificateverifiesonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscertificateisattached,andnotthetruthfulness,accuracy,orvalidityofthatdocument.StateofCaliforniaCountyofOn2020beforeme,_________________________DateHereInsertNameandTitleoftheOfficerpersonallyappearedc*tt’(CflLtcJeName(s)ofSignet(s)whoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.I•-‘PRISCILLAKINNARD—cNotaryPublic-Cahforriia-LosAngelesCountySCommission#2301032MyComm.EpfresAug1DescriptionofAttachedDoumentTitleorTypeofDocument:O)JLYXY14.9,OAfleXThDocumentDate:______________________________________________NumberofPages:Signer(s)OtherThanNamedAbove:_____________________________________________________Capacity(ies)CIaedbySigner(s)Signer’sName:(Jfl7k2Y?IDCorporateOfficer—Title(s):DPartner—DLimitedDGeneralDIndividualDAttorneyinFactDfustee,0GuardianorConservatorVOther:SignerisRepeenting:c5f3tbrá’Signer’sName:___________________________CCorporateOfficer—Title(s):CPartner—CLimitedCGeneralCIndividualCAttorneyinFactCTrusteeCGuardianorConservatorCOther:SignerisRepresenting:PlaceNotarySealand/arStampAboveIcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect.WITNESSmyhandandofficialseal.SignSignatureofNotaryPublicOPTIONAL—__________Completingthisinformationcandeteralterationofthedocumentorfraudulentreattachmentofthisformtoanunintendeddocument.‘2O18NationalNotaryAssociation CALIFORNIAALL-PURPOSEACKNOWLEDGMENTAnotarypublicorotherofficercompletingthiscertificateverifiesonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscertificateisattached,andnotthetruthfulness,accuracyorvalidityofthatdocument.STATEOFCALIFORNIACOUNTYOFLOSANGELESLOn272020beforeme4p),personallyappearedthebsisofsatisfactoryevidencetobetheperson(s)whosenames(s)is/aresubscribdtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect.OPTIONALThoughthedatabelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentreattachmentofthisform.CAPACITYCLAIMEDBYSIGNERDESCRIPTIONOFATTACHEDDOCUMENTLIINDIVIDUALLICORPORATEOFFICERTITLE(S)LIPARTNER(S)LILILIATTORNEY-IN-FACTLITRUSTEE(S)t]GUARDIAN/CONSERVATORLIOTHER________________SIGNERISREPRESENTING:(NAMEOFPERSON(S)ORENTITY(IES))KISHP.WINotaryPublic-CaliforniaLosAngelesCountyComm.Expiresi1602OLIMITEDGENERALTITLEORTYPEOFDOCUMENTNUMBEROFPAGESDATEOFDOCUMENTSIGNER(S)OTHERTHANNAMEDABOVE EXHIBIT“A”SCOPEOFSERVICESI.Consultant(alsoreferredtoas“CCEDA”)willprovideservicestotheCityinimplementingtasks,asfollows:DevelopedbytheCaliforniaCommunityEconomicDevelopmentAssociation(CCEDA).whichisastatewidemembershipassociationthathasservedCaliforniasince1989.CCEDAsupportsnonprofit,community—based.neighborhood-targeteddevelopmentorganizationsthathaveprograms.servicesandprojectsfocusedonimprovingtheoveralleconomicconditionsinlow-andmoderate—incomecommunities.CCEDAshallprocessaminimumof90EIDL,PPP,orothergovernment-orbank-sponsoredloanapplications,includingtheCarsonSmallBusinessLoanProgramapplications,withinthe450hoursallottedinthisAgreement.OverallScopeInCarson,CCEDAwouldassisttheCityinthreetasks:1.Developingandimplementingaprogramofintensive,disaster-orientedbusinessassistancetosmallbusinessesinCarson,includingdevelopingabusinessassistanceandlendingnetwork;2.MarketingtheprogramtoCarsonbusinessesandsolicitingapplicationsforbusinessassistanceandlendingprograms,includingidentifyingbusinessownerswhoareshelteringathomeandawayfromtheirbusinesses,respondingtopublicinquiriesmadetotheCity,marketingtheprogramonFacebookandothersocialmedia,andusingtheChamberofCommerceandbusinesslicenseresourcestoreachowners.3.Providingintensivebusinessassistancetothesmallbusinesscommunity,includingassessingtheeconomicdamagefromtheshutdownandtriagingthenextsteps,includingapplyingforSBAPaycheckProtectionLoans,EconomicInjuryDisasterLoans,andotherstateandfederalloansthatmaybeavailable.4.AttheelectionoftheCity,Consultantwocilddevelopprogramguidelinesandunderwritingcriteria,solicitapplicationsforandpackageapplicationsforCityapproval,aSmallBusinessBridgeLoan/GrantprogramfundedbytheCityofCarson.Task1:SetupandMobilization($7,500)CCEDAshallundertakethetasksnecessarytomarkettheprogramtoCarsonbusinesses,provideeffectiveassistancetobusinessinatimelymanner,trackhoursspentandtheprogressofapplicantsthroughtheprocess.Thesetasksincludebutarenotlimitedto:oSetupofahostedwebsitewithappropriateinformationabouttheCarsonBcisinessAssistanceProgram,variousSBAandotherfederalprograms,statelendingB-i programs,otherstateassistanceprograms,hyperlinkstobusinessresources,andfillablePDFordownloadableforms.oSetupofacallinnumberandpropercallforwardingtoensurealivepersonanswersthephoneduringbusinesshours.oDesigncollateralmaterialthatcanbeusedinemailcampaignsoronsocialmedia,orthattheCitycouldprintifitdesiredflyers.•CCEDAwillprovidebusinessdevelopmentofficersbackedupbytechnicalassistanceandothernonprofitandentrepreneurialpartners.StaffingwillbeaccomplishedthroughCCEDA’sexistingexperiencedstaff,teamofconsultantandexperiencedtechnicalassistanceorganizations.RobertoBarraganwillserveastheprogramdirectorinCarson.CCEDAwilloperatevirtually,utilizingexistingonlineloanapplicationsystemsandemailandtelephonecommunications.StaffwouldberequiredtofamiliarizethemselveswiththeSBAandotherprogramsavailableandtootherresourcesavailableinCarson,ifany.•CCEDAshalldesignproceduresandapplicationrequirementsforloanapplicantsthatwillbeusedtoreview,score,andproviderecommendationstoapplicantsonwhichisthemostappropriatelenderandthemostappropriateloanprogramtowhichtoapply.ProvideCitywithtechnicalandpolicyexpertiserelatedtothesetupandoperationsofaCity-fundedSmallBusinessBridgeLoan/GrantProgramincludingtheloanapplication,underwritingcriteria,promissorynotes,criteriaformakingloansforgivable(convertingtogrant)andotherrelateddocuments.Task2:BusinessOutreachandMilestones($150/hr)•TheCityofCarsonwilldelivertoCCEDAasubsetoftheBusinessLicensedatabasethatidentifiesbusinesses,prioritizedbyindustryandsizeofbusiness,thattheCitywishestoprioritizeforoutreach.CCEDAwillreachouttothistargetedgroupofbusinessesthroughemail,andifemailisnotavailable,directtelephonecalls.Asbusinessesemailorcallin,CCEDAstaffwillendeavortorespondwithin24hours.CCEDAstaffwillintakeallbusinessesandscreenthemfortheirneeds,collectingdataregardingrevenuesandemployeecount.Businessesthatarejustseekinginformationwillbeservedimmediately.BusinessesthathavequestionsregardinglendingprogramsorneedassistanceincompletingtheirapplicationorarelookingforaPPPlenderwillbereferredtoalendingconsultant.Consultantswillreviewdraftloanapplications,answerapplicationspecificquestions,reviewcreditorcashflowchallengestoloanapproval,reviewpayrollspecificsthatmightaffectPPPapplications,assistwithlenderrequirementsforPPPloans,andadviseonloanforgivenessifneeded.Consultantswillnotspendmorethan5hoursperbusiness;additionalhourswillbeauthorizedbytheCity.AveragehourspercLient:3.Consultantwillmakealleffortstoreachthebelowmilestones,itbeingunderstoodthatthemilestonesaremerelyaspirationalandnotobligatory.B-2 •Month1oCCEDAwillcontactaminimum300businessescontactedthroughphone,website,emailorotherremotemeans,workingwithdatacollectedfromtheCity’sbusinesslicensedata:oCCEDAwillprovideintakeandscreeningservicestoaminimumof100businesses;oCCEDAwillassistCarsonbusinessessubmit50EIDLsortotheSBA’sPPPandotherloanspackagedloanstodisasterlenders.•Month2oCCEDAwillcontactaminimum300businessescontactedthroughphone,website,emailorotherremotemeans,workingwithdatacollectedfromtheCity’sbusinesslicensedata;oCCEDAwillprovideintakeandscreeningservicestoaminimumof200businesses;oCCEDAwillassistCarsonbusinessessubmit50/100EIDLs,ortothePPPProgramoranyotherdisasterloan/grantprogram,includinganyCityofCarsonloanprogram.Task3:BusinessAssessmentandPre-LoanSupport($l5OIhr)Duringtheinitialin-takephaseandafteritisconcludedwhatassistancetheclientneedsthebusinessdevelopmentofficerwilldetermineappropriatepre-loansupport.CCEDAconsultantsandpartnerscanadviseonhowtoobtainfinancingandhowtostrctcturetherequesttosecureforfunding:includingloanpackagingassistanceasneededTask4:LendingProgramsandAssistanceCCEDAwillberesponsibleforallprogramdevelopment,loanorigination,technicalassistanceandloanpackaging.UtilizingCCEDA’sinfrastructure,theywillprovidetechnicalassistancetobusinessesthatmayhaveinadequatefinancialinformationorfaceotherchallengestoasLlccessfulloanapplication,theelementsofwhichareincludedbelow.CCEDA’steamwillassessloanpossibilitiesforanybusinesstype,includingnon-profitorganizationsandchurches,ifeligible.CCEDATasksUndertheLendingProgram•Ifviable,CCEDAwillpackagetheloanandprepareprojections.•CCEDAwillidentifylenderpossibilitiesandmakerecommendations.B-3 •CCEDAwillactasintermediarytolendersandassistborrowerstoaddressapplicationneeds.CCEDAwillassistborrowersthroughtheloanapprovalandclosingprocess.LenderSelectionProcess•AllborrowerswillbedirectedtoapplyforEIDLfirsttotakeadvantageoftheadvanceand12monthspaymentdeferral.•ThenbusinesseswillbeencouragedtoapplyforaPaycheckProtectionProgramloanfromtheirownbusinessbank.•Iftheirbankdoesnotoffertheproductorisnotacceptingapplications,CCEDAconsultantswillreferthemtoabankorcreditunionthatisacceptingnoncustomerapplicationssuchasUSBank.•Ifabankorcreditunionoptionisnotavailable,CCEDAconsultantswillreferbusinessestooneofthefollowing:oLocalCommunityDevelopmentFinancialInstitutions,suchasPacificCoastRegionalorPACEoLACounty/CommunityReinvestmentFundpartnershipoNonbank7(a)lenders•IfabusinessisnotSBAeligible(seeSBArestrictions),CCEDAwillworkwithborrowerstoaccessthefollowingprograms:oLocalCDFIdisasterandnondisasterprogramsoStateofCaliforniamicroloanprogramsoOpportunityFundmicroloanprograms•CCEDAismonitoringtheindustryandgatheringinformationdailyonnewprogramssuchastheFederalReserveMainstreetProgram.FederalLendingProgramsTheprimaryprogramsCCEDAwouldfocusonare:•PaycheckProtectionLoans:TheU.S.SmallBusinessAdministration(SBA)willguaranteeloanswithtermsofupto10yearsandinterestratesofupto4%tobusinesseswithfewerthan500employees.Businessescanqualifyforloansofupto$10million,andtheloanswillbeprovidedbylendersincludingbanksandcreditunions.EligibleB-4 businessescangetloandefermentforsixmonthstoayear,andtheloanmaybeforgivenifthebusinessmaintainsitspayrollforeightweeksatemployees’normalsalarylevels.Requiredcertificationfrombusinessesforthisprogramincludes:oCurrenteconomicuncertaintymakestheloannecessarytosupporttheapplicant’songoingoperations.oThefundswillbeusedtoretainworkersandmaintainpayrollortomakemortgage,lease,andutilitypayments.oTheapplicanthasnotandwillnotreceiveanotherloanunderthisprogram.oTheapplicantwillprovidetothelenderdocumentationthatverifiesthenumberoffull-timeequivalentemployeesonpayrollandthedollaramountsofpayrollcosts,coveredmortgageinterestpayments,coveredrentpayments,andcoveredutilitiesfortheeightweeksaftergettingthisloan.oLoanforgivenesswillbeprovidedforthesumofdocumentedpayrollcosts,coveredmortgageinterestpayments,coveredrentpayments,andcoveredutilities.Duetolikelyhighsubscription,itisanticipatedthatnotmorethan25%oftheforgivenamountmaybefornon-payrollcosts.oAlltheinformationtheapplicantprovidesinhis/herapplicationandinallsupportingdocumentsandformsistrueandaccurate.Knowinglymakingafalsestatementtogetaloanunderthisprogramispunishablebylaw.oTheapplicantacknowledgesthatthelenderwillcalculatetheeligibleloanamountusingthetaxdocumentstheysubmitted.TheapplicantaffirmsthatthetaxdocumentsareidenticaltothosetheysubmittedtotheIRS.Andtheapplicantalsounderstands,acknowledges,andagreesthatthelendercansharethetaxinformationwiththeSBA’sauthorizedrepresentatives,includingauthorizedrepresentativesoftheSBAOfficeofInspectorGeneral,forthepurposeofcompliancewithSBALoanProgramRequirementsandallSBAreviews.ExpandedaccesstoU.S.SmallBusinessAdministrationEconomicInjuryDisasterLoans:Aspartofitsdisasterassistanceprogram,theSBAisprovidingworkingcapitalloansofupto$2milliontosmallbusinessesandnonprofitsaffectedbythecoronavirus.Theseloanscarryaninterestrateof3.75%forsmallbusinessesand2.75%fornonprofits.Loanrepaymenttermsvarybyapplicant,uptoamaximumof30years.Thestimulusupdatedtheprogramsothatsoleproprietorsandbusinesseswithfewerthan500employeesqualify,andapplicantsdon’tneedtoprovideapersonalguaranteeonloansunder$200,000.Paymentscanalsobedeferredforuptofouryears.RequiredDocumentsfromBusinesses:•CopyofCreditBureauReportwithCreditScoresfromthethreeprimaryreportingagenciesforallownersofthebusinesswithminimum20%ownership.B-S •PersonalFinancialStatement(SBAForm413)forallownersofthebusinesswithminimum20%ownershipinterest.•FederalPersonalandbusinesstaxreturnsforthelast3years(includepersonaltaxreturnsforeachownerwithminimum20%ownershipinterestinthebusiness).•BusinessfinancialStatementsforyeartodate(bothincomestatementsandbalancesheetisPreferred).Scheduleofallbusinessassetsandliabilities.•ProvideMonthlysalesfiguresbeginning3yearspriortothedisasterandcontinuingthroughthemostrecentmonthavailable.(SBAForm1368).•Writtenexplanationoftheamounttheownerisseekingandhowitwillbeused.Describetheloss.•SBALoanApplication(SBAForm5).•IRSForm$821/4506-Tforeachownerwithminimum20%ownershipinterestinthebusiness.Advanceof$10,000toSBAEconomicInjuryDisasterLoanapplicants:Evenifabusinessisdeniedaloan,theycanstillaccessthisadvancewhichwillbeforgiven,whichcanbeusedtoprovideemployeesickleave,maintainpayrollormeetotherneedslikepayingrent.StateLendingandBusinessAssistanceProgramsInadditiontoassistingbusinesseswiththeFederalLoanProgramsdescribedabove,CCEDAconsultantsandpartnersshalladviseonhowtoobtainfinancingthroughStateprograms,ifeligible,includingloanpackagingassistanceasneeded,andalsoprovidinginformationonotherassistanceprogramsavailablefromtheStateofCalifornia,including:•SalesTaxDeferralsBusinessescannowdeferupto$50,000insalestaxpaymentswithoutinterestforuptotwelvemonths,solongasthebusinesshaslessthan$5millioninannualsales.Thisiseffectivelyazero-interest,no-penaltybridgeloantoprovideyouwithadditionalworkingcapitalbeforeyoureceiveadditionalresourceslikethosedetailedabove.Businessescanusethisasreadycashtomeetanyneed.•LoanOpportunitiesfromInfrastructureandEconomicDevelopmentBank(iBank)Forsmallbusinessesthatdonotqualifyforfederalloanassistanceprogramslikethosedetailedabove,theCaliforniaInfrastructure&EconomicDevelopmentBankcanprovidepotentialcapital.TheStateisallocating$50milliontotheCaliforniaInfrastructureandEconomicDevelopmentBankforloanguaranteestosmallbusinessestohelpeliminatebarrierstocapitalforindividualswhodonotqualifyforfederalfunds,includinglowB-6 wealthandundocumentedimmigrantcommunities.FormoreinformationonresourcesforsmallbusinessesfromIBank,pleasevisittheirwebsiteatwww.ibank.ca.gov.IncomeTaxDeadlineDeferralEffectiveMarch30,2020,alltaxpayerswithlessthan$1millionintaxliabilitieshaveautomaticallybeengranteda3monthextensiononthedeadlinetofiletheirreturns.Thisincludesbusinesses.YoumayfileanytimebetweennowandJuly31,2020.Thiscoversapproximately99.5%ofalltaxpayersintheState.Butifyouoryourbusinesshasmorethan$1millioninliabilities,youmayrequestanextension.Formoreinformation,visitthewebsiteoftheCaliforniaDepartmentofTax&FeeAdministration.EDDforBusinessesWiththeGovernor’semergencydeclaration,ifabusinessisdirectlyaffectedbyCOVID-19,theownercanrequestuptoa60-dayextensiontofiletheirstatepayrollreportsanddepositstatepayrolltaxeswithoutpenaltyorinterest.Thewrittenrequestforextension,notingtheimpactofCOVID-19,mustbereceivedwithin60daysfromtheoriginaldelinquentdateofthepaymentorreturn.Fortheaddresstosendtherequest,alongwithotherinformation,pleaseseetheStateofEmergencyorDisasterFactSheet(DE231SED).ApplicationReviewandInitialRankingofCity-FundedLoansIftheCityshouldapproveaCityloanprogram,whendirectedbytheCity’sContractOfficerinwriting,CCEDAshallprepareloanguidelines,theapplicationpacket,andtheloandocumentsfortheCitytoreviewandapprove.Thespecificcriteriawhichwillbeusedinevaluatingandratingtheapplicationsshalladdressthefollowingquestionsandcriteria:•Duplicationofbenefits—whatistheavailabilityofothersourcesoffunding?oExample:Ifthefundscoversalaries,howdoestheCityensurethatthereisnotdouble-dippingfromUnemploymentInsurance?oHowwilltheCityknowifabusinessgototherassistance,likeanSBAloan?oThisprogramshouldbeaback-stop,notaprimaryresourceforBusinessAssistanceactivities.•Whatarethepermissibleusesofthefunds?WouldtheCitywanttoseethemoneyspentongrowinginventoryorpayingforcostslikeinsurance,ratherthanemployees?•Grants,loans,forgivableloans(andwhattriggersforgiveness)?•Underwritingcriteria.Arewelookingforstrongcredit?Oristhisaprogramthatwouldbeavailableforborrowers(businessesorowners)withweakcredithistory?B-7 •Outreachtoimpactedbusinesses.Howistheprogrammarketed?Arethereprioritybusinessesbytype?Bygeographicarea?•Determinationofwhatbusinessestofundandatwhatlevels(transparentcriteriaandprocess)Isthereascoringcriteriabasedonneed,iscreditworthinessafactor?•Willthefundsbesufficienttomakeadifferencetothebusiness?•Businessesmostat-riskarethosewithnarrowprofitmarginsand(thereby)limitedcashreserves(e.g.with<3mos.cashonhand).IsusinglimitedCityfundstosupportmarginalandfailingbusinessesthebestuseofthemoney?Wouldthefunds(atbest)deferandnotpreventclosures?Ultimately,fundingdecisionsaremadebytheCity,buttheprogrammustabidebyastandardofreasonableness.Task5:NonLoanSupportAsneeded,CCEDAwillprovideaquickassessmentofeachbusiness’currentsituationandassistthebusinesstakethefollowingactionswhiletheyareworkingonaloanapplication:•ExpenseTriageoReviewProfit&LossStatementsoHelpbusinessesevaluateandunderstandtheirfinancessotheycanstreamlinetheirbusinessandseewheretheycanreduce/eliminateexpenses.•RecommendBusinessesCutUnnecessaryExpensesThisincludesanysubscriptionsormembershipsthatmightbeunnecessaryduringthisperiodoffinancialuncertainty.Cancelanythingnonessentialthebusinesscansurvivewithout.•ContactingVendorsAdvisebusinessestoreviewallcontractsandmakesurethey’reincontactwiththeirvendorsandfullyunderstandtheagreementsintheeventtheyneedtobreakacontract.•NegotiatelongertermsDiscusswiththeirvendorsifthey’reofferinganydefermentsorpaymentplanoptions.Trytocometoanagreementthatwillkeepthembothafloat.•ContactingServiceProvidersB-$ oSCE/UtilityCompanyoPhoneoMaintenance/LandscapingoCellPhoneprovider•ContacttheirLandlordLandlordsareworkingwiththeirtenantstoextenddefermentsorpausingrentforaperiodoftime.MakebusinessesawareofJudicialCouncilNoticeonCommercialEvictions.Recommendbusinessesstayincommunicationwiththeirlandlordandseeifthey’dbewillingtogivethemsomepaymentreprieveordeferment.•PropertyInsurance—Activeisimportant!Ifthey’retemporarilyclosingtheirphysicalbusinesslocation,makesurethattheirresourcesareprotectedfromanyeconomicorenvironmentaldisasters.Recommendbusinessestalkwiththeirprovidertoreviewpolicyandbecertainthey’llbeprotected.•HaveTheirEmployeesContactEDDandApplyforUnemploymentBenefitsIftheydoneedtotemporarilylayoffemployees,makesurethey’reawareofunemploymentoptionsthroughtheEDD.EvaluationCCEDAwillmaintainthefollowingrecords:1.Allbusinessesreceivingintroductoryemailsandcalls2.Allbusinessesthatrespondtoemailsandcalls,includingbusinessinformation3.Allbusinessintakesandscreening4.Allinformationrequestssatisfied5.Allbusinessesreceivingconsultantassistance6.AllbusinessesthatsubmitapplicationsforSBAorotherloansCCEDAwillprovidetheaboveinformationtotheCitywithitsregularbilling.B-9 II.AspartoftheServices,ConsultantwillprepareanddeliverthefollowingtangibleworkproductstotheCity:BusinessOutreachandMilestonesMonth11.CCEDAwillcontactaminimum300businessescontactedthroughphone,website,emailorotherremotemeans,workingwithdatacollectedfromtheCity’sbusinesslicensedata;2.CCEDAwillprovideintakeandscreeningservicestoaminimumof100businesses;3.CCEDAwillassistCarsonbusinessessubmit50EIDLsortotheSBA’sPPPandotherloanspackagedloanstodisasterlenders.Month24.CCEDAwillcontactaminimum300businessescontactedthroughphone,website,emailorotherremotemeans,workingwithdatacollectedfromtheCity’sbusinesslicensedata;5.CCEDAwillprovideintakeandscreeningservicestoaminimumof200businesses;6.CCEDAwillassistCarsonbusinessessubmit50/100EIDLs,ortothePPPProgramoranyotherdisasterloam’grantprogram,includinganyCityofCarsonloanprogram.III.InadditiontotherequirementsofSection6.2,duringperformanceoftheServices,ConsultantwillkeeptheCityapprisedofthestatusofperformancebydeliveringstatusreportstotheContractOfficerwitheachinvoicesubmitted.Suchreportsshallincludebutarenotlimitedto:A.BusinessescontactedbyCCEDAlistedbyname,address,typeofbusiness,modeofcontact,andnatureofthecontact.B.BusinessesthathavereceivedfromCCEDAadditionaltechnicalassistancewithrespondingtotheCOVID-19emergency.C.BusinessesassistedbyCCEDAthathaveappliedforoneoftheSBAloanslistedbyname,address,typeofbusiness,amountofloan,typeofloan,numberofemployees.B-b B.BusinessesassistedbyCCEDAthathavereceivedoneoftheSBAloanslistedbyname,address,typeofbusiness,amountofloan,typeofloan,numberofemployees.E.BusinessesassistedbyCCEDAthathaveappliedforoneoftheCity-fundedSmallBusinessBridgeLoam/GrantProgramloanslistedbyname,address,typeofbusiness,amountofloan,typeofloan,numberofemployees.F.BusinessesassistedbyCCEDAthathavereceivedoneoftheCity-fundedSmallBusinessBridgeLoanlGrantProgramloanslistedbyname,address,typeofbusiness,amountofloan,typeofloan,numberofemployees.IV.AllworkproductissubjecttoreviewandacceptancebytheCity,andmustberevisedbytheConsultantwithoutadditionalchargetotheCityuntilfoundsatisfactoryandacceptedbyCity.V.ConsultantwillutilizethefollowingpersonneltoaccomplishtheServices:A.RobertoBarragan,PrincipalB.NilimaKapoor,SeniorUnderwriterC.BruceDobbD.DougWatermanE.AngelicaBanuelosF.AnaRubacalvaG.WarrenCooleyH.KeithRodgersI.BoSivanunsakulJ.BabitaNayakK.VeronicaBrydenB-li EXHIBIT“B”SPECIALREQUIREMENTS(SupersedingContractBoilerplate)TheAgreementisherebyamendedasfollows(additionsareshowninbolditalicsanddeletionsareshownasstrikeouts):Section2.4,“Invoices,”isherebyrevisedtoreadasfollows:TwiceeachmonthConsultantshallfurnishtoCityanoriginalinvoiceforallworkperformedandexpensesincurredduringtheprecedinginvoiceperiodmonthinaformapprovedbyCity’sDirectorofFinance.BysubmittinganinvoiceforpaymentunderthisAgreement,ConsultantiscertifyingcompliancewithallprovisionsoftheAgreement.Theinvoiceshalldetailchargesforallnecessaryandactualexpensesbythefollowingcategories:labor(bysub-category),travel,materials,equipment,supplies,andsubcontractorcontracts.Subcontractorchargesshallalsobedetailedbysuchcategories.ConsultantshallnotinvoiceCityforanyduplicateservicesperformedbymorethanoneperson.CityshallindependentlyrevieweachinvoicesubmittedbytheConsultanttodeterminewhethertheworkperformedandexpensesincurredareincompliancewiththeprovisionsofthisAgreement.ExceptastoanychargesforworkperformedorexpensesincurredbyConsultantwhicharedisputedbyCity,orasprovidedinSection7.3,CitywilluseitsbesteffortstocauseConsultanttobepaidwithinthirty(30)fortyfive(15)daysofreceiptofConsultant’scorrectandundisputedinvoice;however,ConsultantacknowledgesandagreesthatduetoCitywarrantrunprocedures,theCitycannotguaranteethatpaymentwilloccurwithinthistimeperiod.IntheeventanychargesorexpensesaredisputedbyCity,theoriginalinvoiceshallbereturnedbyCitytoConsultantforcorrectionandresubmission.ReviewandpaymentbyCityforanyinvoiceprovidedbytheConsultantshallnotconstituteawaiverofanyrightsorremediesprovidedhereinoranyapplicablelaw.B-12 EXHIBIT“C”SCHEDULEOfCOMPENSATIONI.Consultantshallperformthefollowingtasksatthefollowingrates:EstimatedHoursofScopeofServiceStepsLabor/BudgetTask1-MobilizationandSetup.ThisisrequestedNottoexceed$7,500asanupfrontpayment.Consultantshallprovideinclusiveofthirdpartycostsreceiptsandinvoicesforallthird-partycosts.Anyandstaffcosts.IfthisTaskinternalstaffcostsshallbeshownontheinvoiceandislessthan$7,500,thosechargedagainstthetotalcontractcosts(ContractdollarsareavailableforSum)andmaynotbealsobilledagainstTask2.Task2.RemainderofTasks-LoanApplications,BusinessAssistanceandSubmittalstoSBA,Banks,Non-450Hours/$67,500Banklenders,ortheCityofCarsonforaction450HoursplusTotalmobilizationcosts$75,000III.ThisContractcontainsaprovisionthattheCitywillpaytheContractorthesumof$7,500“uponexecution”ofthecontractforTask1.SuchpaymentwillbeprocessedintheCity’sTylerMunisAccountsPayablesystematexecution,andacheckwillbeavailableatthenextcheckrunoftheA/Psystem.CCEDAshallprocessaminimumof90EIDL,PPP,orothergovernment-orbank-sponsoredloanapplications,includingtheCarsonSmallBusinessLoanProgramapplications,withinthe450hoursallottedinthisAgreement.III.TheCitywillcompensateConsultantfortheServicesperformeduponsubmissionofavalidinvoice.ConsultantmaysubmitinvoicestwicepermonthbuttheCity’sprocessingtimeforeachinvoiceis30days.Eachinvoiceistoinclude:A.Lineitemsforallpersonneldescribingtheworkperformed,thenumberofhoursworked,andthehourlyrate.B.Lineitemsforallotherapprovedreimbursableexpensesclaimed,withsupportingdocumentation.Thereisnotaseparatebudgetforreimbursablecosts,exceptforthosedescribedinTask1,whichpaymentisadvancedtoConsultantuponAgreementexecution.C.Lineitemsforallapprovedsubcontractorlabor,supplies,equipment,materials,andtravelproperlychargedtotheServices.C-i IV.ThetotalcompensationfortheServicesshallnotexceed$75,000asprovidedinSection2.1ofthisAgreement.TheCitywillconsider,butisnotobligatedto,enterintoanamendmenttothisContracttoincreasethetotalcompensationtoConsultantbasedonthesatisfactoryperformanceofthetasks,includingbutnotlimitedto,reachingthemilestonesincThemaximumrentadjustmentwillbelimitedbythefairmarketrentalvalueofasanitationorparkuse,whicheverisgreater,andcannotbebasedonthevalueofthe“highestandbestuse.”ludedinExhibit“A”oftheAgreement,itbeingunderstoodthatthemilestonesaremerelyaspirationalandnotobligatory.V.TheConsultant’sbillingratesforallpersonnelareasfollows:ConsultantStaff(Name)TitleHourlyRateRobertoBarraganPrincipal$150NilimaKapoorSeniorUnderwriter$150Others$150C-2 EXHIBIT“D”SCHEDULEOFPERFORMANCEConsultantshallperformallServicestimelyinaccordancewiththefollowingschedule(theCitymayatitssolediscretionextend(thoughnotshorten)thebelowtimelineuponwrittennoticetotheConsultant):•April21-April23Kick-offmeetingwithCitystaff,reviewofexistingcitybusinesslicensecontactdata,keyCitystafftobeassignedtotheapplicationprocessandactionitemstobecompleted.•Apr.23-May5BeginoutreachtoprioritybusinessesinCarson,thenoutreachtoanexpandedlistofbusinesses.Beginbusinessassistanceactivity.DevelopCityloanapplicationguidelines,applicationforms,andbackgroundinformation.•May4-June30ContinueoutreachtobusinessesinCarsonandbusinessassistanceactivity.May4LaunchCity-fundedSmallBusinessAssistanceProgram(Loan!Grantprogram)•June1CitytoconsiderextensionofContractbasedonConsultant’sperformanceincludingperformancewithrespecttoreachingmilestonegoals.•ConsultantshallcompleteallServicesbyJune30,2020,whichisthedateofexpirationoftheAgreement.II.TheContractOfficermayapproveextensionsforperformanceoftheServicesinaccordancewithSection3.2.D-1 CERTIFICATEOFLIABILITYINSURANCETHISCERTIFICATEISISSUEDASAMATTEROFINFORMATIONONLYANDCONFERSNORIGHTSUPONTHECERTIFICATEHOLDER.THISCERTIFICATEDOESNOTAFFIRMATIVELYORNEGATIVELYAMEND,EXTENDORALTERTHECOVERAGEAFFORDEDBYTHEPOLICIESBELOW.THISCERTIFICATEOFINSURANCEDOESNOTCONSTITUTEACONTRACTBETWEENTHEISSUINGINSURER(S),AUTHORIZEDREPRESENTATIVEORPRODUCER,ANDTHECERTIFICATEHOLDER.IMPORTANT:ifthecertIfIcateholderisanADDITIONALINSURED,thepolicyfles)musthaveADDITIONALINSUREDprovisionsorbeendorsed.IfSUBROGATIONISWAIVED,subjecttothetermsandconditIonsofthepolIcy,certainpoliciesmayrequlr.anendorsement.Astatementonthiscertificatedoesnotconferrightstothecertificat,holderInlieuofsuch.ndorsementts).PRODUCERACTBolton&ComanvrPHONE3476E.FoothfllBlvd.,Suite100itAIc,No,Eat):(626)799-7000IT,No):(626)4413233Pasadena,CA91107propcasuaItyboitonco.comINSURERIS)AFFORDINGCOVERAGENAICSINSURERAPhIIadeIphIaIndemnityInsuranceCo.18058INSUREDIINSuRERs:StateCompensationIns.Fund35076CaliforniaCommunityEconomicDev.Iopm.ntAssocIationtlNsuRERcAmericanContractorsIndemnityCo.244S.SanPedroStINSURER0:LosAngeles,CA90012INSURERB:[INSURERF:COVERAGESCERTIFICATENUMBER:REVISIONNUMBER:1L_-TYPEOFINSURANCEADOLSUBRPOLICYEFFPOLICYEXPH5POLICYNUMBERjpyyyjyyw,yLIMITS__________________EACHOCCURRENCE51.000.000AXCOMMERCIALGENERALLIABILITYICLMMS.MADEOCCURXXPHPK206866711130120191113012020DAMAGETORENTED100,000PREMISESlEao.,rence$6,000MEDEXP(Anyonepetson)$LAGGREGATELIMITAPPLIESPERPERSONAL&ADVINJURY$1,000,000GENERALAGGREGATE$2,000,000XPOCICYDé)E}cocE1OTHER.AAUTOMOBILELIABILITY—PRODUCTS.COMPIOPAGG2,000,000$COMBINEDSINGLELIMIT1,000,000(EsacentI$rANYAUTOXXPHPK206866711/30/201911130/2020IBODILYNJURY(Pecpecon)$rOWNED‘ISCHEDULEDAUTOSONLYUAUTOSBODILYINJURY(Poracclde&$ONLYOi—OAMAOEttBRELLALIABOCCUR1EACHOCCURRENCE-hEXCESSLIABCLAIMS-MADEYIN044442-2002101/202002)01/2021AGGREGAThDEDjRETENTION$SJPER0Th-BWORKERSCOMPENSATIONSTATUTEERANDEMPLOYERS’LIABILITYANYPROPRIETORIPARTNERXECUTI.-IXE.LEACHACCIDENT$1,000,000lMandateryInX(UDEUNIA1E.LDISEASE-EAEMPLOYE1$1,000,000OEFICERIMUIfvet,describeur,derIDESCRIPTIONOFOPERATIONSbelowIIELDISEASE-POLICYLIMIT$1,000,000CFid.IIty/ERISABond110011285602102I201902)0212022CCEDA401(K)PLAN40,000AProfessionalLiabiliPHPK206856711/3012019]1113012020Occurrence1,000,000DESCRIPTIONOFOPERATIONS?LOCATIONSIVEHICLES(ACORD101,AdditionalRemarksSchedulemaybesttach.difmorespaceisrequired)CItyofCarson,Itselectedandappointedofficers,employees,volunteersandagentsareadditionalinsuredspertheattachedformPI.GLD.HSfIWII).Waiv.rofSubrogationIsIncludedtotheextentpermittedbylawontheGeneralLiabilityandAuto.Allpoliciesareprimaryand,withtheexceptionofMedicalMalpracticeLiability,non-contributorywithanyandallapplicablecoverage,containcross.IIabIIItycoverage,andseverabilityofInterestslanguage.WaiverofSubrogatIonontheWorkCompwillfollowbyendorsement.©1388-2015ACORDCORPORATION.Allrightsreserved.ARt3CALiCOM-CIDDY]0510112020THISISTOCERTIFYTHATTHEPOLICIESOFINSURANCELISTEDBELOWHAVEBEENISSUEDTOTHEINSUREDNAMEDABOVEFORTHEPOLICYPERIODINDICATED.NOTWITHSTANDINGANYREQUIREMENT,TERMORCONDITIONOFANYCONTRACTOROTHERDOCUMENTWiTHRESPECTTOWHICHThISCERTIFICATEMAYBEISSUEDORMAYPERTAIN,THEINSURANCEAFFORDEDBYTHEPOLICIESDESCRIBEDHEREINISSUBJECTTOALLThETERMS,EXCLUSIONSANDCONDITIONSOFSUCHPOLICIES.LIMITSSHOWNMAYHAVEBEENREDUCEDBYPAIDCLAIMS.CERTIFICATEHOLDERCANCELLATIONAJSHOULDANYOFTHEABOVEDESCRIBEDPOLICIESBECANCELLEDBEFORE/.j9(t’V.ec.rThEEXPIRATIONDATETHEREOF,NOTICEWILLBEDELIVEREDINCityofCarsonACCORDANCEWITHTHEPOUCYPROVISIONS.701E.CarsonStreetCarson,CA90746AUTHORIZEDREPRESENTATiVEACORD26(2016/03)TheACORDnameandlogoareregisteredmarksotACORD 4.OtherInsuranceIfothervalidandcollectibleinsuranceisavailabletotheinsuredforalosswecoverunderCoveragesAorBofthisCoveragePart,ourobligationsarelimitedasfollows:a.PrimaryInsuranceThisinsuranceisprimaryexceptwhenParagraphb.belowapplies.Ifthisinsuranceisprimary,ourobligationsarenotaffectedunlessanyoftheotherinsuranceisalsoprimary.Then,wewillsharewithallthatotherinsurancebythemethoddescribedinParagraphc.below.b.ExcessInsurance(1)Thisinsuranceisexcessover:(a)Anyoftheotherinsurance,whetherprimary,excess,contingentoronanyotherbasis:(i)ThatisFire,ExtendedCoverage,Builder’sRisk,InstallationRiskorsimilarcoveragefor“yourwork”;(ii)ThatisFireinsuranceforpremisesrentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheowner;(iii)Thatisinsurancepurchasedbyyoutocoveryourliabilityasatenantfor“propertydamage”topremisesrentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheowner;or(iv)Ifthelossarisesoutofthemaintenanceoruseofaircraft,“autos”orwatercrafttotheextentnotsubjecttoExclusiong.ofSectionI—CoverageA—BodilyInjuryAndPropertyDamageLiability.(b)Anyotherprimaryinsuranceavailabletoyoucoveringliabilityfordamagesarisingoutofthepremisesoroperations,ortheproductsandcompletedoperations,forwhichyouhavebeenaddedasanadditionalinsured.(2)Whenthisinsuranceisexcess,wewillhavenodutyunderCoveragesAorBtodefendtheinsuredagainstany“suit”ifanyotherinsurerhasadutytodefendtheinsuredagainstthat“suit”.Ifnootherinsurerdefends,wewillundertaketodoso,butwewillbeentitledtotheinsured’srightsagainstallthoseotherinsurers.(3)Whenthisinsuranceisexcessoverotherinsurance,wewillpayonlyourshareoftheamountoftheloss,ifany,thatexceedsthesumof:(a)Thetotalamountthatallsuchotherinsurancewouldpayforthelossintheabsenceofthisinsurance;and(b)Thetotalofalldeductibleandself-insuredamountsunderallthatotherinsurance.(4)Wewillsharetheremainingloss,ifany,withanyotherinsurancethatisnotdescribedinthisExcessInsuranceprovisionandwasnotboughtspecificallytoapplyinexcessoftheLimitsofInsuranceshownintheDeclarationsofthisCoveragePart.c.MethodOfSharingIfalloftheotherinsurancepermitscontributionbyequalshares,wewillfollowthismethodalso.Underthisapproacheachinsurercontributesequalamountsuntilithaspaiditsapplicablelimitofinsuranceornoneofthelossremains,whichevercomesfirst.Ifanyoftheotherinsurancedoesnotpermitcontributionbyequalshares,wewillcontributebylimits.Underthismethod,eachinsurer’sshareisbasedontheratioofitsapplicablelimitofinsurancetothetotalapplicablelimitsofinsuranceofallinsurers.5.PremiumAudita.WewillcomputeallpremiumsforthisCoveragePartinaccordancewithourrulesandrates.b.PremiumshowninthisCoveragePartasadvancepremiumisadepositpremiumonly.AtthecloseofeachauditperiodwewillcomputetheearnedpremiumforthatperiodandsendnoticetothefirstNamedInsured.Theduedateforauditandretrospectivepremiumsisthedateshownastheduedateonthebill.Ifthesumoftheadvanceandauditpremiumspaidforthepolicyperiodisgreaterthantheearnedpremium,wewillreturntheexcesstothefirstNamedInsured.c.ThefirstNamedInsuredmustkeeprecordsoftheinformationweneedforpremiumcomputation,andsenduscopiesatsuchtimesaswemayrequest.6.RepresentationsByacceptingthispolicy,youagree:a.ThestatementsintheDeclarationsareaccurateandcomplete;Page12of16©InsuranceServicesOffice,Inc.,2012CG00010413 PI-GLD-HS(10/11)THISENDORSEMENTCHANGESTHEPOLICY.PLEASEREADITCAREFULLY.GENERALLIABILITYDELUXEENDORSEMENT:HUMANSERVICESThisendorsementmodifiesinsuranceprovidedunderthefollowing:COMMERCIALGENERALLIABILITYCOVERAGEItisunderstoodandagreedthatthefollowingextensionsonlyapplyintheeventthatnootherspecificcoveragefortheindicatedlossexposureisprovidedunderthispolicy.Ifsuchspecificcoverageapplies,theterms,conditionsandlimitsofthatcoveragearethesoleandexclusivecoverageapplicableunderthispolicy,unlessotherwisenotedonthisendorsement.ThefollowingisasummaryoftheLimitsofInsuranceandadditionalcoveragesprovidedbythisendorsement.Forcompletedetailsonspecificcoverages.consultthepolicycontractwording.CoverageApplicableLimitofInsurancePage#ExtendedPropertyDamageIncluded2LimitedRentalLeaseAgreementContractualLiability$50,000limit2Non-OwnedWatercraftLessthan58feet2DamagetoPropertyYouOwn,Rent,orOccupy$30,000limit2DamagetoPremisesRentedtoYou$1,000,0003HIPAAClarification4MedicalPayments$20,0005MedicalPayments—ExtendedReportingPeriod3years5AthleticActivitiesAmended5SupplementaryPayments—BailBonds$5,0005SupplementaryPayment—LossofEarnings$1,000perday5EmployeeIndemnificationDefenseCoverage$25,0005KeyandLockReplacement—JanitorialServicesClientCoverage$10,000limit6AdditionalInsured—NewlyAcquiredTimePeriodAmended6AdditionalInsured—MedicalDirectorsandAdministratorsIncluded7AdditionalInsured—ManagersandSupervisors(withFellowIncluded7EmployeeCoverage)AdditionalInsured—BroadenedNamedInsuredIncluded7AdditionalInsured—FundingSourceIncluded7AdditionalInsured—HomeCareProvidersIncluded7AdditionalInsured—Managers,Landlords,orLessorsofPremisesIncluded7AdditionalInsured—LessorofLeasedEquipmentIncluded7AdditionalInsured—GrantorofPermitsIncluded8AdditionalInsured—VendorIncluded8AdditionalInsured—FranchisorIncluded9AdditionalInsured—WhenRequiredbyContractIncluded9AdditionalInsured—Owners,Lessees,orContractorsIncluded9AdditionalInsured—StateorPoliticalSubdivisionsIncluded10Page1of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)DutiesintheEventofOccurrence,ClaimorSuitIncluded10UnintentionalFailuretoDiscloseHazardsIncluded10TransferofRightsofRecoveryAgainstOthersToUsClarification10LiberalizationIncluded11BodilyInjury—includesMentalAnguishIncluded11PersonalandAdvertisingInjury—includesAbuseofProcess,Included11DiscriminationA.ExtendedPropertyDamageSECTIONI-COVERAGES,COVERAGEABODILYINJURYANDPROPERTYDAMAGELIABILITY,Subsection2.Exclusions,Paragrapha.isdeletedinitsentiretyandreplacedbythefollowing:a.ExpectedorIntendedInjury“Bodilyinjury”orpropertydamage”expectedorintendedfromthestandpointoftheinsured.Thisexclusiondoesnotapplyto“bodilyinjury”or“propertydamage”resultingfromtheuseofreasonableforcetoprotectpersonsorproperty.B.LimitedRentalLeaseAgreementContractualLiabilitySECTIONI-COVERAGES,COVERAGEA.BODILYINJURYANDPROPERTYDAMAGELIABILITY,Subsection2.Exclusions,Paragraphb.ContractualLiabilityisamendedtoincludethefollowing:(3)Basedonthenamedinsured’srequestatthetimeofclaim,weagreetoindemnifythenamedinsuredfortheirliabilityassumedinacontractoragreementregardingtherentalorleaseofapremisesonbehalfoftheirclient,upto$50,000.Thiscoverageextensiononlyappliestorentalleaseagreements.Thiscoverageisexcessoveranyrenter’sliabilityinsuranceoftheclient.C.Non-OwnedWatercraftSECTIONICOVERAGES,COVERAGEABODILYINJURYANDPROPERTYDAMAGELIABILITY,Subsection2.Exclusions,Paragraphg.(2)isdeletedinitsentiretyandreplacedbythefollowing:(2)Awatercraftyoudonotownthatis:(a)Lessthan58feetlong;and(b)Notbeingusedtocarrypersonsorpropertyforacharge;Thisprovisionappliestoanyperson,whowithyourconsent,eitherusesorisresponsiblefortheuseofawatercraft.Thisinsuranceisexcessoveranyothervalidandcollectibleinsuranceavailabletotheinsuredwhetherprimary,excessorcontingent.D.DamagetoPropertyYouOwn,RentorOccupySECTIONI-COVERAGES,COVERAGEABODILYINJURYANDPROPERTYDAMAGEPage2of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany Pl-GLD-HS(10/11)LIABILITY,Subsection2.Exclusions,Paragraphj.DamagetoProperty,Item(1)isdeletedinitsentiretyandreplacedwiththefollowing:(1)Propertyyouown,rent,oroccupy,includinganycostsorexpensesincurredbyyou,oranyotherperson,organizationorentity,forrepair,replacement,enhancement,restorationormaintenanceofsuchpropertyforanyreason,includingpreventionofinjurytoapersonordamagetoanother’sproperty,unlessthedamagetopropertyiscausedbyyourclient,uptoa$30,000limit.Aclientisdefinedasapersonunderyourdirectcareandsupervision.E.DamagetoPremisesRentedtoYou1.IfdamagebyfiretopremisesrentedtoyouisnototherwiseexcludedfromthisCoveragePart,theword“fire”ischangedto“fire,lightning,explosion,smoke,orleakagefromautomaticfireprotectivesystems”whereitappearsin:a.ThelastparagraphofSECTIONI—COVERAGES,COVERAGEABODILYINJURYANDPROPERTYDAMAGELIABILITY,Subsection2.Exclusions;isdeletedinitsentiretyandreplacedbythefollowing:Exclusionsc.throughn.donotapplytodamagebyfire,lightning,explosion,smoke,orleakagefromautomaticfireprotectivesystemstopremiseswhilerentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheowner.AseparatelimitofinsuranceappliestothiscoverageasdescribedinSECTIONIII—LIMITSOFINSURANCE.b.SECTIONIII—LIMITSOFINSURANCE,Paragraph6.isdeletedinitsentiretyandreplacedbythefollowing:SubjecttoParagraph5.above,theDamageToPremisesRentedToYouLimitisthemostwewillpayunderCoverageAfordamagesbecauseof“propertydamage”toanyonepremises,whilerentedtoyou,orinthecaseofdamagebyfire,lightning,explosion,smoke,orleakagefromautomaticfireprotectivesystemswhilerentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheowner.c.SECTIONV—DEFINITIONS,Paragraph9.a.,isdeletedinitsentiretyandreplacedbythefollowing:Acontractforaleaseofpremises.However,thatportionofthecontractforaleaseofpremisesthatindemnifiesanypersonororganizationfordamagebyfire,lightning,explosion,smoke,orleakagefromautomaticfireprotectivesystemstopremiseswhilerentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheownerisnotan“insuredcontract”;2.SECTIONIV—COMMERCIALGENERALLIABILITYCONDITIONS,Subsection4.OtherInsurance,Paragraphb.ExcessInsurance,(1)(a)(ii)isdeletedinitsentiretyandreplacedbythefollowing:Thatisinsuranceforfire,lightning,explosion,smoke,orleakagefromautomaticfireprotectivesystemsforpremisesrentedtoyouortemporarilyoccupiedbyyouwithpermissionoftheowner;3.TheDamageToPremisesRentedToYouLimitsectionoftheDeclarationsisamendedtothegreaterof:Page3of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)a.$1,000,000;orb.TheamountshownintheDeclarationsastheDamagetoPremisesRentedtoYouLimit.Thisisthemostwewillpayforalldamageproximatelycausedbythesameevent,whethersuchdamageresultsfromfire,lightning,explosion,smoke,orleaksfromautomaticfireprotectivesystemsoranycombinationthereof.F.HIPAASECTIONI-COVERAGES,COVERAGEBPERSONALANDADVERTISINGINJURYLIABILITY,isamendedasfollows:1.Paragraph1.InsuringAgreementisamendedtoincludethefollowing:Wewillpaythosesumsthattheinsuredbecomeslegallyobligatedtopayasdamagesbecauseofa“violation(s)”oftheHealthInsurancePortabilityandAccountabilityAct(HIPAA).Wehavetherightandthedutytodefendtheinsuredagainstany“suit,”“investigation,”or“civilproceeding”seekingthesedamages.However,wewillhavenodutytodefendtheinsuredagainstany“suit”seekingdamages,investigation,”or“civilproceeding”towhichthisinsurancedoesnotapply.2.Paragraph2.Exclusionsisamendedtoincludethefollowingadditionalexclusions:Thisinsurancedoesnotapplyto:a.Intentional,Willful,orDeliberateViolationsAnywillful,intentional,ordeliberate“violation(s)”byanyinsured.b.CriminalActsAny“violation”whichresultsinanycriminalpenaltiesundertheHIPAA.c.OtherRemediesAnyremedyotherthanmonetarydamagesforpenaltiesassessed.d.ComplianceReviewsorAuditsAnycompliancereviewsbytheDepartmentofHealthandHumanServices.3.SECTIONV—DEFINITIONSisamendedtoincludethefollowingadditionaldefinitions:a.“Civilproceeding”meansanactionbytheDepartmentofHealthandHumanServices(HHS)arisingoutof“violations.”b.“Investigation”meansanexaminationofanactualoralleged“violation(s)”byHHS.However,“investigation”doesnotincludeaComplianceReview.c.“Violation”meanstheactualorallegedfailuretocomplywiththeregulationsincludedintheHIPAA.Page4of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)G.MedicalPayments—LimitIncreasedto$20,000,ExtendedReportingPeriodIfCOVERAGECMEDICALPAYMENTSisnototherwiseexcludedfromthisCoveragePart:1.TheMedicalExpenseLimitischangedsubjecttoallofthetermsofSECTIONIII-LIMITSOFINSURANCEtothegreaterof:a.$20,000;orb.TheMedicalExpenseLimitshownintheDeclarationsofthisCoveragePart.2.SECTIONI-COVERAGE,COVERAGECMEDICALPAYMENTS,Subsection1.InsuringAgreement,a.(3)fb)isdeletedinitsentiretyandreplacedbythefollowing:(b)Theexpensesareincurredandreportedtouswithinthreeyearsofthedateoftheaccident.H.AthleticActivitiesSECTIONI—COVERAGES,COVERAGECMEDICALPAYMENTS,Subsection2.Exclusions,Paragraphe.AthleticActivitiesisdeletedinitsentiretyandreplacedwiththefollowing:e.AthleticActivitiesToapersoninjuredwhiletakingpartinathletics.SupplementaryPaymentsSECTIONI-COVERAGES,SUPPLEMENTARYPAYMENTS-COVERAGEAANDBareamendedasfollows:1.b.isdeletedinitsentiretyandreplacedbythefollowing:1.b.Upto$5000forcostofbailbondsrequiredbecauseofaccidentsortrafficlawviolationsarisingoutoftheuseofanyvehicletowhichtheBodilyInjuryLiabilityCoverageapplies.Wedonothavetofurnishthese.1.d.isdeletedinitsentiretyandreplacedbythefollowing:1.d.Allreasonableexpensesincurredbytheinsuredatourrequesttoassistusintheinvestigationordefenseoftheclaimor“suit’,includingactuallossofearningsupto$1,000adaybecauseoftimeofffromwork.J.EmployeeIndemnificationDefenseCoverageSECTIONI-COVERAGES,SUPPLEMENTARYPAYMENTS—COVERAGESAANDBthefollowingisadded:Wewillpay,onyourbehalf,defensecostsincurredbyan‘employee”inacriminalproceedingoccurringinthecourseofemployment.Themostwewillpayforany“employee”whoisallegedtobedirectlyinvolvedinacriminalproceedingis$25,000regardlessofthenumbersof“employees,”claimsor“suits”broughtorpersonsororganizationsmakingclaimsorbringing“suits.Page5of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)K.KeyandLockReplacement—JanitorialServicesClientCoverageSECTIONI-COVERAGES,SUPPLEMENTARYPAYMENTS—COVERAGESAANDBisamendedtoincludethefollowing:Wewillpayforthecosttoreplacekeysandlocksattheclients”premisesduetotheftorotherlosstokeysentrustedtoyoubyyour“client,”uptoa$10,000limitperoccurrenceand$10,000policyaggregate.Wewillnotpayforlossordamageresultingfromtheftoranyotherdishonestorcriminalactthatyouoranyofyourpartners,members,officers,“employees”,“managers”,directors,trustees,authorizedrepresentativesoranyonetowhomyouentrustthekeysofa“client”foranypurposecommit,whetheractingaloneorincollusionwithotherpersons.Thefollowing,whenusedonthiscoverage,aredefinedasfollows:a.“Client”meansanindividual,companyororganizationwithwhomyouhaveawrittencontractorworkorderforyourservicesforadescribedpremisesandhavebilledforyourservices.b.“Employee”means:(I)Anynaturalperson:(a)Whileinyourserviceorfor30daysafterterminationofservice;(b)Whoyoucompensatedirectlybysalary,wagesorcommissions;and(c)Whoyouhavetherighttodirectandcontrolwhileperformingservicesforyou;or(2)Anynaturalpersonwhoisfurnishedtemporarilytoyou:(a)Tosubstituteforapermanent“employee”asdefinedinParagraph(1)above,whoisonleave;or(b)Tomeetseasonalorshort-termworkloadconditions;whilethatpersonissubjecttoyourdirectionandcontrolandperformingservicesforyou.(3)“Employee”doesnotmean:(a)Anyagent,broker,personleasedtoyoubyalaborleasingfirm,factor,commissionmerchant,consignee,independentcontractororrepresentativeofthesamegeneralcharacter;or(b)Any“manager,”directorortrusteeexceptwhileperformingactscomingwithinthescopeoftheusualdutiesofan“employee.”c.“Manager”meansapersonservinginadirectorialcapacityforalimitedliabilitycompany.L.AdditionalInsuredsSECTIONII—WHOISANINSUREDisamendedasfollows:1.IfcoveragefornewlyacquiredorformedorganizationsisnototherwiseexcludedfromthisPage6of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)CoveragePart,Paragraph3.a.isdeletedinitsentirelyandreplacedbythefollowing:a.Coverageunderthisprovisionisaffordeduntiltheendofthepolicyperiod.2.Eachofthefollowingisalsoaninsured:a.MedicalDirectorsandAdministrators—Yourmedicaldirectorsandadministrators,butonlywhileactingwithinthescopeofandduringthecourseoftheirdutiesassuch.Suchdutiesdonotincludethefurnishingorfailuretofurnishprofessionalservicesofanyphysicianorpsychiatristinthetreatmentofapatient.b.ManagersandSupervisors—Yourmanagersandsupervisorsarealsoinsureds,butonlywithrespecttotheirdutiesasyourmanagersandsupervisors.Managersandsupervisorswhoareyour“employees”arealsoinsuredsfor“bodilyinjury”toacoemployee”whileinthecourseofhisorheremploymentbyyouorperformingdutiesrelatedtotheconductofyourbusiness.ThisprovisiondoesnotchangeItem2.a.(1)(a)asitappliestomanagersofalimitedliabilitycompany.c.BroadenedNamedInsured—AnyorganizationandsubsidiarythereofwhichyoucontrolandactivelymanageontheeffectivedateofthisCoveragePart.However,coveragedoesnotapplytoanyorganizationorsubsidiarynotnamedintheDeclarationsasNamedInsured,iftheyarealsoinsuredunderanothersimilarpolicy,butforitsterminationortheexhaustionofitslimitsofinsurance.d.FundingSource—Anypersonororganizationwithrespecttotheirliabilityarisingoutof:(1)Theirfinancialcontrolofyou;or(2)Premisestheyown,maintainorcontrolwhileyouleaseoroccupythesepremises.Thisinsurancedoesnotapplytostructuralalterations,newconstructionanddemolitionoperationsperformedbyorforthatpersonororganization.e.HomeCareProviders—AtthefirstNamedInsured’soption,anypersonororganizationunderyourdirectsupervisionandcontrolwhileprovidingforyouprivatehomerespiteorfosterhomecareforthedevelopmentallydisabled.f.Managers,Landlords,orLessorsofPremises—Anypersonororganizationwithrespecttotheirliabilityarisingoutoftheownership,maintenanceoruseofthatpartofthepremisesleasedorrentedtoyousubjecttothefollowingadditionalexclusions:Thisinsurancedoesnotapplyto:(1)Any“occurrence”whichtakesplaceafteryouceasetobeatenantinthatpremises;or(2)Structuralalterations,newconstructionordemolitionoperationsperformedbyoronbehalfofthatpersonororganization.g.LessorofLeasedEquipment—AutomaticStatusWhenRequitedinLeaseAgreementWithYou—Anypersonororganizationfromwhomyouleaseequipmentwhenyouandsuchpersonororganizationhaveagreedinwritinginacontractoragreementthatsuchpersonororganizationistobeaddedasanadditionalinsuredonyourpolicy.SuchpersonorPage7of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany Pl-GLD-HS(10/11)organizationisaninsuredonlywithrespecttoliabilityfor‘bodilyinjury,”“propertydamage”or“personalandadvertisinginjury”caused,inwholeorinpart,byyourmaintenance,operationoruseofequipmentleasedtoyoubysuchpersonororganization.Aperson’sororganization’sstatusasanadditionalinsuredunderthisendorsementendswhentheircontractoragreementwithyouforsuchleasedequipmentends.Withrespecttotheinsuranceaffordedtotheseadditionalinsureds,thisinsurancedoesnotapplytoany“occurrence”whichtakesplaceaftertheequipmentleaseexpires.h.GrantorsofPermits—Anystateorpoliticalsubdivisiongrantingyouapermitinconnectionwithyourpremisessubjecttothefollowingadditionalprovision:(1)Thisinsuranceappliesonlywithrespecttothefollowinghazardsforwhichthestateorpoliticalsubdivisionhasissuedapermitinconnectionwiththepremisesyouown,rentorcontrolandtowhichthisinsuranceapplies:(a)Theexistence,maintenance,repair,construction,erection,orremovalofadvertisingsigns,awnings,canopies,cellarentrances,coalholes,driveways,manholes,marquees,hoistawayopenings,sidewalkvaults,streetbannersordecorationsandsimilarexposures;(b)Theconstruction,erection,orremovalofelevators;or(c)Theownership,maintenance,oruseofanyelevatorscoveredbythisinsurance.Vendors—Onlywithrespectto“bodilyinjury”or“propertydamage”arisingoutof“yourproducts”whicharedistributedorsoldintheregularcourseofthevendor’sbusiness,subjecttothefollowingadditionalexclusions:(1)Theinsuranceaffordedthevendordoesnotapplyto:(a)“Bodilyinjury”or“propertydamage”forwhichthevendorisobligatedtopaydamagesbyreasonoftheassumptionofliabilityinacontractoragreement.Thisexclusiondoesnotapplytoliabilityfordamagesthatthevendorwouldhaveintheabsenceofthecontractoragreement;(b)Anyexpresswarrantyunauthorizedbyyou;(c)Anyphysicalorchemicalchangeintheproductmadeintentionallybythevendor;(d)Repackaging,exceptwhenunpackedsolelyforthepurposeofinspection,demonstration,testing,orthesubstitutionofpartsunderinstructionsfromthemanufacturer,andthenrepackagedintheoriginalcontainer;(e)Anyfailuretomakesuchinspections,adjustments,testsorservicingasthevendorhasagreedtomakeornormallyundertakestomakeintheusualcourseofbusiness,inconnectionwiththedistributionorsaleoftheproducts;(f)Demonstration,installation,servicingorrepairoperations,exceptsuchoperationsperformedatthevendor’spremisesinconnectionwiththesaleoftheproduct;Page8of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)(g)Productswhich,afterdistributionorsalebyyou,havebeenlabeledorrelabeledorusedasacontainer,partoringredientofanyotherthingorsubstancebyorforthevendor;or(h)“Bodilyinjury”or“propertydamage”arisingoutofthesolenegligenceofthevendorforitsownactsoromissionsorthoseofitsemployeesoranyoneelseactingonitsbehalf.However,thisexclusiondoesnotapplyto:(i)TheexceptionscontainedinSub-paragraphs(U)or(f);or(ii)Suchinspections,adjustments,testsorservicingasthevendorhasagreedtomakeornormallyundertakestomakeintheusualcourseofbusiness,inconnectionwiththedistributionorsaleoftheproducts.(2)Thisinsurancedoesnotapplytoanyinsuredpersonororganization,fromwhomyouhaveacquiredsuchproducts,oranyingredient,partorcontainer,enteringinto,accompanyingorcontaining.j.Franchisor—Anypersonororganizationwithrespecttotheirliabilityasthegrantorofafranchisetoyou.k.AsRequiredbyContract—Anypersonororganizationwhererequiredbyawrittencontractexecutedpriortotheoccurrenceofaloss.Suchpersonororganizationisanadditionalinsuredfor“bodilyinjury,”“propertydamage”or“personalandadvertisinginjury”butonlyforliabilityarisingoutofthenegligenceofthenamedinsured.Thelimitsofinsuranceapplicabletotheseadditionalinsuredsarethelesserofthepolicylimitsorthoselimitsspecifiedinacontractoragreement.TheselimitsareincludedwithinandnotinadditiontothelimitsofinsuranceshownintheDeclarationsOwners,LesseesorContractors—Anypersonororganization,butonlywithrespecttoliabilityfor“bodilyinjury,”“propertydamage”or“personalandadvertisinginjury”caused,inwholeorinpart,by:(1)Youractsoromissions;or(2)Theactsoromissionsofthoseactingonyourbehalf;intheperformanceofyourongoingoperationsfortheadditionalinsuredwhenrequiredbyacontract.Withrespecttotheinsuranceaffordedtotheseadditionalinsureds,thefollowingadditionalexclusionsapply:Thisinsurancedoesnotapplyto“bodilyinjury”or“propertydamage”occurringafter:(a)Allwork,includingmaterials,partsorequipmentfurnishedinconnectionwithsuchwork,ontheproject(otherthanservice,maintenanceorrepairs)tobeperformedbyoronbehalfoftheadditionalinsured(s)atthelocationofthecoveredoperationshasbeencompleted;or(b)Thatportionof“yourwork”outofwhichtheinjuryordamageariseshasbeenputtoitsintendedusebyanypersonororganizationotherthananothercontractororsubcontractorengagedinperformingoperationsforaprincipalasapartofthesameproject.Page9of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany Pl-GLD-HS(10/11)m.StateorPoliticalSubdivisions—Anystateorpoliticalsubdivisionasrequired,subjecttothefollowingprovisions:(1)Thisinsuranceappliesonlywithrespecttooperationsperformedbyyouoronyourbehalfforwhichthestateorpoliticalsubdivisionhasissuedapermit,andisrequiredbycontract.(2)Thisinsurancedoesnotapplyto:(a)“Bodilyinjury,”“propertydamage”or“personalandadvertisinginjury”arisingoutofoperationsperformedforthestateormunicipality;or(b)“Bodilyinjury”or“propertydamage”includedwithinthe“products-completedoperationshazard.”M.DutiesintheEventofOccurrence,ClaimorSuitSECTIONIV—COMMERCIALGENERALLIABILITYCONDITIONS,Paragraph2.isamendedasfollows:a.isamendedtoinclude:Thisconditionappliesonlywhenthe“occurrence”oroffenseisknownto:(1)You,ifyouareanindividual;(2)Apartner,ifyouareapartnership;or(3)Anexecutiveofficerorinsurancemanager,ifyouareacorporation.b.isamendedtoinclude:Thisconditionwillnotbeconsideredbreachedunlessthebreachoccursaftersuchclaimor“suit”isknownto:(1)You,ifyouareanindividual;(2)Apartner,ifyouareapartnership;or(3)Anexecutiveofficerorinsurancemanager,ifyouareacorporation.N.UnintentionalFailureToDiscloseHazardsSECTIONIV—COMMERCIALGENERALLIABILITYCONDITIONS,6.Representationsisamendedtoincludethefollowing:Itisagreedthat,basedonourrelianceonyourrepresentationsastoexistinghazards,ifyoushouldunintentionallyfailtodiscloseallsuchhazardspriortothebeginningofthepolicyperiodofthisCoveragePart,weshallnotdenycoverageunderthisCoveragePartbecauseofsuchfailure.0.TransferofRightsofRecoveryAgainstOthersToUsSECTIONIV—COMMERCIALGENERALLIABILITYCONDITIONS,8.TransferofRightsofPage10of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany Pl-GLD-HS(10/11)RecoveryAgainstOthersToUsisdeletedinitsentiretyandreplacedbythefollowing:IftheinsuredhasrightstorecoverallorpartofanypaymentwehavemadeunderthisCoveragePart,thosetightsaretransferredtous.Theinsuredmustdonothingafterlosstoimpairthem.Atourrequest,theinsuredwillbring“suit”ortransferthoserightstousandhelpusenforcethem.Therefore,theinsuredcanwaivetheinsurer’srightsofrecoverypriortotheoccurrenceofaloss,providedthewaiverismadeinawrittencontract.P.LiberalizationSECTIONIV—COMMERCIALGENERALLIABILITYCONDITIONS,isamendedtoincludethefollowing:Ifwerevisethisendorsementtoprovidemorecoveragewithoutadditionalpremiumcharge,wewillautomaticallyprovidetheadditionalcoveragetoallendorsementholdersasofthedaytherevisioniseffectiveinyourstate.Q.BodilyInjury—MentalAnguishSECTIONV—DEFINITIONS,Paragraph3.Isdeletedinitsentiretyandreplacedbythefollowing:Bodilyinjury”means:a.Bodilyinjury,sicknessordiseasesustainedbyaperson,andincludesmentalanguishresultingfromanyofthese;andb.Exceptformentalanguish,includesdeathresultingfromtheforegoing(Itema.above)atanytime.R.PersonalandAdvertisingInjury—AbuseofProcess,DiscriminationIfCOVERAGEBPERSONALANDADVERTISINGINJURYLIABILITYCOVERAGEisnototherwiseexcludedfromthisCoveragePart,thedefinitionof‘personalandadvertisinginjury”isamendedasfollows:1.SECTIONV—DEFINITIONS,Paragraph14.b.isdeletedinitsentiretyandreplacedbythefollowing:b.Maliciousprosecutionorabuseofprocess;2.SECTIONV—DEFINITIONS,Paragraph14.isamendedbyaddingthefollowing:Discriminationbasedonrace,color,religion,sex,ageornationalorigin,exceptwhen:a.Doneintentionallybyoratthedirectionof,orwiththeknowledgeorconsentof:(1)Anyinsured;or(2)Anyexecutiveofficer,director,stockholder,partnerormemberoftheinsured;b.Directlyorindirectlyrelatedtotheemployment,formerorprospectiveemployment,terminationofemployment,orapplicationforemploymentofanypersonorpersonsbyaninsured;Page11of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany PI-GLD-HS(10/11)c.Directlyorindirectlyrelatedtothesale,rental,leaseorsubleaseorprospectivesales,rental,leaseorsub-leaseofanyroom,dwellingorpremisesbyoratthedirectionofanyinsured;ord.Insuranceforsuchdiscriminationisprohibitedbyorheldinviolationoflaw,publicpolicy,legislation,courtdecisionoradministrativeruling.Theabovedoesnotapplytofinesorpenaltiesimposedbecauseofdiscrimination.Page12of12IncludescopyrightedmaterialofInsuranceServicesOffice,Inc.,withitspermission.©2011PhiladelphiaIndemnityInsuranceCompany