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HomeMy Public PortalAbout08) 7D Actions pertaining to Tenant Relocations 5922 and 5934 Primrose AveAGENDA ITEM 7.0. MANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: August 1, 2017 TO: The Honorable City Council FROM: Bryan Cook, City Manager By : Brian Haworth , Assistant to the C ity Manager SUBJECT: ACTIONS PERTAINING TO TENANT RELOCATIONS AND DEMOLITION DUE DILIGENCE AT 5922 AND 5934 PRIMROSE AVENUE RECOMMENDATION: The City Council is requested to : 1. Approve a contractual second amendment with Associated Right of Way Services for unanticipated tenant relocation activities and the potenti al handling of cla i ms and appeals in the amount of $16 ,500 . 2 . Reallocate $36 ,405 to the FY 2017-18 city budget, Fund 01-910-42-4939 (Primrose Tenant Relocati on Assistance ), for pending tenant relocation claims . 3. Reallocate $53,250 in project cost savings from Fund 01-910-42-4939 (Primrose Tenant Relocation Assistance) to Fund 01-910-42-4231 (Profess iona l Serv ices) for the following: a . Per the above referenced contract amendment, on-call relocation ass istance services in the amount of $16 ,500 . b . Environmental due diligence reviews , estimated at $24 ,700 , which are required prior to the demolition of City-owned properties at 5922 and 5934 Primrose Ave . c. Rental fencing costs of $2,000 , which will temporarily screen and secure the properties until June 30 , 2018 . d . Construction management services estim ated at $11 ,850 to prepare a cost estimate and bid documents for property demo li t ion . 4 . Direct staff to return by October 2017 with a formal request to solicit demolition bids . City Counci l August 1, 2017 Page 2 of 4 BACKGROUND: 1. In December 2016 , the City Manager entered into a $24 ,000 ag reement with Associated Right of Way Services (ARMIS) for re location planning services . The scope entailed household interviews and replacement hous ing needs for the five soon-to-be displaced tenant households in City-owned properties at 5922 and 5934 Primrose Ave. It also produced a legally required draft relocation plan that identified suitable housing sites, available relocation resources , and tenant financial assistance for moving costs and rent differential payments . 2 . In March 2017, Council adopted the draft relocation plan , moving forward a legally prescribed process to relocate the five households to replacement dwell in g units elsewhere in the area (Government Code Section 7260 et seq . and California Code of Regulations , T itle 25). As part of the action , Council also approved : (1) a $31 ,000 contractual first amendment with ARMIS to fac ili tate the relocations by July 1, 2017 ; and (2) a $215 ,000 appropriation from the General Fund reserve for tenant financial assistance , i.e . moving costs and rent differentia l payments . 3 . On June 10, 2017 , ARMIS completed all tenant relocat ions in advance of the July 1 deadline. This is a noteworthy accomplishment , particularly as the households were generally of very-low income and presented challenges that made securing replacement housing especially difficult. (Furthe rmore , as two households chose to purchase replacement housing in mobile home parks , the process of assisting them through the offer, loan and escrow phases requ ired considerable assistance .) The level of effort by ARMIS to provide household relocation serv ices was much greater than anticipated , resulting in a cost overrun. After negotiation , the C ity and ARJWS settled on an amount of $11 ,500 . 4 . On June 20 , 2017 , staff issued a $1 ,176 purchase order with Amer ican Fenc i ng Company to screen and secure the properties . Staff also initiated the next project phase-demolition-by securing a bid for environmental consulting services. According to state law and local air quality regu lations (California Code of Regulations , Titles 8 and 17; and SCAQMD Rule 1403), buildings planned for demolition must first have a completed hazardous building material survey. The assessment identifies any hazardous materials on-site , and provides a method to dispose of them. It also helps provide an estimate for environmental abatement and building demolition costs . The survey will take one month to complete at an estimated fee of $24 ,700 . 5 . Last month , a final accounting was made of all project costs. Pend ing tenant relocation claims total $36,405 , whi ch from an accounting standpoint , require a reallocation to the FY 2017-18 city budget. Furthermore , wh ile relocation assistance services encountered a cost overrun , the project's $215 ,000 line item for tenant financial assistance (i.e . moving costs and rent differential payments) was under budget by $53 ,250 . Recommended actions conta ined in this report seek to reallocate the savings for a $0 net fiscal impact, funding the requested contract City Counci l August 1, 2017 Page 3 of 4 amendment , environmental reviews , and on-site rental fencing costs for one year. They also seek to provide $11,850 for construction management serv ices, which wou ld primarily result in the drafting of demolition bid documents for Council review by October 2017 . ANALYSIS: Given the amount of detail provided in the prior sect ion , this ana lysis focuses on the key recommendation of executing a contractual second amendment with AR/WS . Provided as Attachment "A ", the proposed amendment seeks to fund $11,500 in unanticipated costs for tenant relocation services . The level of effort by AR/WS to provide services to displaced households was greater than anticipated , as unique situations made securing replacement housing very difficu lt. • Household incomes were atypical and in some cases undocumented , posing a challenge to present households as desirable tenants to prospective landlords . In some instances, households did not provide full and complete income in formation until a few weeks before relocation . As a result, efforts to find or secure housing early in the process were wasted and repeated . • Some households include individuals who required extraord i nary serv ices , wh ich were exasperated by the relocation process . AR/WS provided a high level of assistance to help those individuals make basic decisions related to housing choices , movers , rental applications, and escrows . Furthermore , at least one household had physical health issues that limited interactions and the search for replacement housing . • Two households chose to purchase replacement housing i n mobile home parks . The exercise of facilitating them through the offer , loan , and escrow processes required significant assistance and third-party coordination . The amendment also calls for $5 ,000 in on-call tenant re location adv isory services , which would assist the City in processing future claims for payment. According to state law (Government Code Section 7260 et seq . and California Code of Regu lat ions, Title 25), displaced tenants have up to 18 months from the date of their move to file all claims (in the City's case , December 10, 2018). At this time, two filings are anticipated : the construction of a mobile home accessibility ramp ; and cont inued coordination with one household to finalize or possibly appeal pending claims. The requested amendment seeks an increase of $16 ,500 (a total contract cost of $71 ,500 ), with extended contract duration through December 31 , 2018 . No other amendments are anticipated . City Counci l August 1, 2017 Page 4 of 4 CITY STRATEGIC GOALS: Actions contained in this report align with the City's strategic goa ls of good governance, fiscal sustainability , and economic development. FISCAL IMPACT: None . Actions contained this report require no new appropriations . ATTACHMENT: A. Contractual Second Amendment SECOND AMENDMENT TO AGREEMENT FOR SERVICES by and between the CITY OF TEMPLE CITY and ATTACHMENT A ASSOCIATED RIGHT OF WAY SERVICES, INC. Dated Au g ust 2, 2 017 SECON D AMEN DMENT TO AGREEMENT FOR SER VICES This Second Amendment to the Agreement ("Second Amendment"), which is dated for reference as indicated on the cover page, is hereby entered into by and between the City of Temple City, a California charter city ("City"), and Associated Right of Way Services, a Cali fornia corporation ("Service Provider"), as follows: RECIT ALS A. City and Service P rovider entered in a $24,000 agreement for services on January 9 , 2017 ("Agreement"). The Agreement provides that Service Provider will provide relocation planning services, including the developme nt of a tenant relocation plan, for the displacement of tenants from City -owned properties l ocated at 5922 and 5934 Primrose Ave. B. Pursuant to fo rma l City action on March 7, 20 17, C ity and Service Provider entered into a contractual firs t amendment to t he Agreement at an added cost of $3 1,000. The scope of work entai led relocation assistance for tenants of the above refere nced properties. C. Pursuant to formal City action on August 1, 2017, this Second Amendment is intended to cover $11 ,500 in negotiated cost overruns by Service Provider for an unexpected but necessary hi gh leve l of service to accomp li sh the scope of Item B above. The amendment also authorizes Service Provider t o provide any on-call serv ices in an amount not to exceed $5 ,000 that administer s tenant relocation c laims and appeals that may be filed with the City until December 10, 2018 (commensurate with California relocation law). The total amount of added services author ized by this Second Amendment is $16,500. D. This Second Amendment also amends Section 16 of the Agreement to modify the indemnificati on te rms so that they w i ll comply with new standards re quired of the City by its insurers. E. This Second Amendment finally amends Section 17 of the Agreement to modify certain language re lated to insurance to better comply with standards required of the C ity by its msurers. OPERATIVE PROVI SIO NS NOW, THEREFORE, in consid e rat ion of the promises made and recited herein, the parties do hereby enter into thi s Second Amendment, which modifies and amends the Agreement as fo ll ows : 1. AMENDMENT. Th e Agreeme nt is he re by modified and a m end ed as foll ows : SECTION 1. TERM O F AGREE MENT : Subject to the provisions of Section 20 "Termination of Agreement" of this Agreement, the Term of this Agreement is until December 10 , 2018 commencing o n the date first ascribed above. -2- SECTION 4. COMPENSATION AND METHOD OF PAYMENT: Subject to any limitations set forth in this Agreement, City agrees to pay Service Provider the amounts specified in Exhibit "B" "Compensation" and made a part of this Agreement by this reference . The total compensation, including reimbursement for actual expenses, shall not exceed seventy one thousand five hundred dollars ($71 ,500) unle ss additional compensation is approved in writing in accordance with Section 26 "Admini stration and Implementation" or Section 28 "Amendment" of this Agreement. EXHIBIT "A". SCOPE OF WORK: Added language, i.e., Administer and advise on any necessary tenant relocation claims a nd appeals that may be filed with th e C ity pursuant to California Relocation Law (Government Code Section 7260, et seq.). Services shall be on an on-call basis not to exceed five thousand dollars ($5 ,000), and conducted by Service Provider after receiving written approval by City. SECTION 16. INDEMNIFICATION. This section is amended to read as follows: (a) Indemnificati on for Professional Liability. Where th e law establishes a professional standard of care fo r Service Provider 's se rvices, to the fullest extent permitted by law, Service Provider shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Ind emnified Parties") from and against any and all liabili ty (incl uding li ab ili ty for claims, suits, actions, arbitration proceedings, admini strative proceedings , regulatory proceedings, losses, expenses or costs of any kind , whether actual, alleged or threatened, including attorneys' fee s and costs, court costs, interest, defense costs, and expert witness fees) arise out of, are a consequence of, or are in any way attributable to , in whole or in part, any negligent or wrongful act, error or omission of Service Provider, or by any individual or entity for which Service Provider is legally liable, including but not limited to officers, agents, employees or sub-Servi ce Providers of Service Provider, in the performance of professional services under this Agreement. (b) Indemnification for Other than Professional Liability . Other than in the performance of professional services and to the fu ll extent permitted by law, Service Provider shall ind emnify , protect, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitratio n proceedings , administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind , whether actual, alleged or threatened, including attorneys' fees and costs, court costs, interest, defense costs, and expert witne ss fees), where the same arise out of, are a consequence of, or are in any way attribu table to , in whole or in part, the performance of this Agreement by Service Provider or by any individual or entity for which Service Provider is legally liable, including but not limited to officer s, agents, employees or sub-Service Providers of Service Provider. -3- (c) Indemnification from Sub-Service Providers. Service Provider agrees to obtain executed indemni ty agreements with provisions identical to those set forth in this section from each and every Sub-Service Provider or any other perso n o r entity invo lved by, for, with or on behalf of Service Provider in the performance of thi s Agreement naming the Indemnified Parties as additional indemnitees. In the event Service Provider fails to obtain such indemnity obligations from others as required herein, Service Provider agrees to be fully re sponsible according to the terms of this section. Failure of City to monitor compliance with these requirement s imposes no additional obligations on City and will in no way act as a waiver of any ri ghts hereunder. This obligatio n to indemnify and defend City as set forth herein is binding on the s uccessors, assigns or heirs of Service Provider and s hall surv ive the termination of this Agreement or this section. (d) Limitation of Indemnification. Notwi thstanding any provision of thi s section to th e contrary, design profess ionals are required to defend and indemnify the City only to the extent permitted by Civil Code Section 2782.8 , which limits the liability of a design professional to claims , suits, actions, arbitration proceedings, adm ini strative proceedings, re g ulatory proceedings, losses, expenses or costs that a ri se out of, pertain to, or r e late to the negligence, r ec kl essne ss, or willfu l misconduct of the desi gn professional. T he term "d esign professional," as defined in Section 2782.8 , is limited to licensed architects, lic ensed landscape architects, re gistered professional engineers, professional land s urveyors, and the business e ntiti es that offer s uch services in acco rdance with the applica bl e provi s ions of the California Business and Professions Code. (e) City 's Negli gence. The provisions of thi s section do not apply to claims occurring as a re s ult of City 's sole negligence. The provi sions of thi s section shall not release City from li ability arising from gross negligence or willful ac t s or omissions of C ity or any and all of its officials, employees and agents. SECTION 17 . INS URANCE. This secti on is amended to read as follows: Service Provider agrees to obtain and maintain in full force and effect during the term of this Agreement the insurance policies set forth in Exhibit "C " "In surance" and made a part of this Agreement. All insurance policies shall be s ubj ect to approval by City as to form and content. These require ment s are subject to amendment or waiver if so approved in writing by the City Manager. Service Provider agrees to provide City with copies of required policies upon request. -4- 2. GENERAL PROVISIONS. 2 .1 Remainder Unchanged . Except as specifically modified and amended in thi s F irst Am e ndment, the Agreement remains in fu ll fo rc e and effect a nd b ind ing upon the parties. 2.2 Integration . T hi s Fi rs t Ame ndment consi sts of pages 1 through _ inclusive, which cons ti tute th e entire understanding and agreement of th e parties and supersedes a ll negotiations or previous agreements between the parties with r espect to a ll or any part of the transaction di scussed in thi s First Amendment. 2.3 Effective Date. Th is Fi r st Amendment shall not become effective until the date it h as been fo rma ll y approved by the C ity Cou ncil and executed by t he ap pro~riate a uth oriti es of the C ity and Service Provi der. 2.4 Applicable Law. The laws of the State of Californ ia shall govern the interpretatio n and enforcement of this Fi rst A m endme nt. 2.5 References. All references to the Agreement include a ll thei r respective terms and provisions. All defined terms uti lized in this Second Amendment have the same meaning as provided in the Agreement, unle ss expressly stated to the contrary in this Second Amendment. IN WITNESS WHERE OF , the pa rti es hereto have executed this Second Amendment to the Agreement o n the date and year first writte n above. -5- ATTEST: Peggy Kuo, C ity Clerk APPROVED AS TO FORM Eric S. Vail , City Attorney CITY: THE CITY OF TEMPLE CITY By : __________ _ Bryan Cook , City Manager SERVICE PROVIDER: By: _______________________ ___ Name :--------------------- Title:-------------------- (2nd signature required if Co rp oration, Incorporation or Limited Liability Corpor ation) By: ____________ _ Name: __________ _ Title:---------------- NOTE : SERVICE PROVIDER'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS , ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO SERVICE PROVIDER 'S BUSINESS ENTITY. -6- A notary pub lic or other offi cer completing thi s certi ficate verifies onl y the identity of the indiv idual who s igned th e doc ument to whic h this cert ificate is attached, a nd not the tr uthfulness, accurac , or validi of that document. ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA STATE OF CALIFORNIA COUNTY OF LOS ANGELES On ________________ ~~2=0~------------------------------------------ before me, ----=-----------------------:-:------:-=:::---=-=-::::::---:----:-:--::---:-:--:--::-:-' Dat e Name And Tille Of OffiCer (e g ·Jane Doe, Notary Public") personally appeared -----------------:-:----:-:::---:--:------------ Name of Signer(s) who proved to me on the bas is of satisfactory evidence to be the person(s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/the ir authorized capac ity(ies), and that by his/her/their s ignature(s) on the instrument the person(s), or the entity upon behalf of wh ich the person(s) acted , executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that t he foregoing paragraph is true and correct. WITNESS my hand and offic ial seal. Signature of Notary Public OPTIONAL Though this section is optional , comp le ting th is information can deter alternat ion of t he document or fraudu lent reattachment of th is fo rm to an un intended docum ent. CAPACIT(IES) CLAIMED BY SIGNER(S) S igner's Name : 0 Ind ividual 0 Corporate Officer Titl e(s) 0 Partner(s ) 0 Attorney-In -Fa ct 0 T rustee(s) 0 Guardian/C o ns eNator 0 Other: Signer is represen ti ng : Name Of Person(s) Or Entity(ies) 0 Lim ited 0 General DESCRIPTION OF ATTACHED DOCUMENT Title or Type of Document Number Of Pag es Date Of Document Signer(s) Other Tha n Named Above A not ary pub lic or o th e r officer completing this certifi cate verifies o nl y the identity of t h e individual who s igned the d ocum ent to w hi ch thi s certificate is attache d , and not t he truthfulness, acc urac , or validi of that doc ument. ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) ) On ----------------~~2 ~0 ________________________________________ ___ before me '----------------------------------------------~~~~~~~~~~~· Date Na me And Hie Of Officer (e g. ·Jane Doe. Notary Public") personally appeared ---------------...,.,-----:-=:-----:-:----------- Name of Signer{s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted , executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Nota ry Publi c OPTIONAL Though this section is optional , completing th is in formation can deter al ternation of the document or fraudulent reattachment of th is form to an unintended document. CAPAClT(IES) CLAIMED BY SIGNER(S) S igner's Name : 0 Ind ividual 0 Corporate Offi cer Title(s) 0 Partner(s) 0 Attorney-In-Fact 0 Trustee(s) 0 Guardian/Conservator 0 Other: S igner is representing : Name Of Person(s) Or Entity(ies) 0 Limited 0 General DESCRIPTION OF ATTACHED DOCUMENT T itle or Type of Document Number Of Pages Date Of Document Signer(s) Other Than Named Above EXHIBIT "C" INSURANCE A. Insurance Requirements. Service Provider shall provide and ma i ntain i nsurance , acceptable to the City , in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Services by Service Provider, its agents , representatives or employees . Insurance is to be placed with insurers with a current A.M . Best's rati ng is an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger). Only the following "marked" requirements are applicable and Service Provider shall provide the following scope and limits of insurance : 1. Minimum Scope of Insurance. Coverage shall be at least as broad as : Commercial General Liability . Insurance Services Office form Commercia l General Liability coverage (Occurrence Form CG 0001 ). Automobile Liability . Service Provider shall maintain automob ile insurance at least as board as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Service Provider arising out of or in connection with work to be performed under this Agreement, including coverage for any owned , hired , non-owned or rented vehicles . Workers ' Compensation . Workers' Compensation Insurance (Statutory Limits ) and Employer's Liability Insurance as required by the Labor Code of State of California covering all persons provid i ng Services on behalf of the Service Provider and all risks to such persons under this Agreement. Professional (Errors and Omissions) Liability . Professional l iability insurance appropriate to the Service Provider's profession . This coverage may be written on a "claims made" bas is , and must include coverage for contractual liability . The insurance must be ma inta i ned for at least three (3) consecutive years following the completion of Service Provider's services or the termination of this Agreement. During this additional three (3) year period , Service Provider shall annually and upon request of the City submit written evidence of th is continuous coverage . Service Provider shall maintain professional liability insurance that covers the Serv ices to be performed in connection with this Agreement. Any policy incept ion date , cont inuity date, or retroactive date must be before the effective date of th is agreement and Service Prov ider agrees to ma i ntain continuous coverage through a period of no less than three years after completion of the services required by this agreement. 1. Minimum Limits of Insurance. Service Provider shall maintain limits of i nsurance no less than : (1) Commerci al General Liability . $1 ,000 ,000 per occurrence , $2 ,000 ,000 general aggregate for bodily injury , personal injury and property damage . (2) each accident. Automobile Liability . No less than $1 ,000 ,000 combined s i ngle limit for (3) Workers' Compensation . Workers' Compensation as required by the Labor Code of the State of California of not less than $1 ,000 ,000 per occurrence and Employer's Liability Insurance with limits of at least $1 ,000 ,000. (4) Professional Liability. $1 ,000 ,000 per claim and in the aggregate . B . Other Provisions . Insurance policies required by th is Agreement shall contain the following provisions : 1. All Policies. Each insurance policy required by th is Agreement shall be endorsed and state the coverage shall not be suspended , voided , cancelled by the insurer or e ithe r Party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by certifi ed mail , return receipt requested , has been given to City. 2 . Commercial General Liability and Automobile Liability Coverages . (1) City, and its respective elected and appointed officers , officials , and employees and volunteers are to be covered as additional insureds as respects : liability aris ing out of activities Service Provider performs; products and com p leted operations of Service Provider; premises owned , occupied or used by Service Provider; or automobiles owned , leased , hired or borrowed by Service Provider. The coverage shall contain no special limitations on the scope of protection afforded to City , and their respective elected a nd appointed officers, officials, or employees . (2) Service Provider's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (3) Requ irements of specific coverage features or limits conta ined in th is Section are not intended as a limitation on coverage , limits or other requ irements, or a wa iver of any coverage normally provided by any insurance. Specific reference to a g iven coverage feature is for purposes of clarification only as it pertains to a given issue and is not i ntended by any party or insured to be all inclusive, or to the exclusion of other coverage , or a wa iver of any type. If the Service Provider maintains higher limits than the minimums shown above , the Agency requires and shall be entitled to coverage for the higher limits maintained by the Service Provider. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency . (4) Coverage provided by the Service Provider shall be pri mary and any i nsurance or self-insurance or maintained by Agency shall not be required to contribute to it. The limits of insurance required he rein may be satisfied by a combi nation of primary and umbrella or excess insurance . Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency's own i nsurance or self-i nsurance shall be called upon to protect is as a named i nsured . (5 ) Any failure to comply with the reporti ng or other prov1s1ons of the insurance policies , including breaches of warranties , shall not affect coverage provided to C ity, and its respective elected and appointed officers , officials , employees or volunteers . 3 . Workers' Compensation Coverage . Unless the C ity Manager otherwise agrees in writing , th e insurer shall agree to waive all rights of subrogation against City, and its respective elected and appointed officers , offic ials , emp loyees and agents for losses aris i ng from work performed by Service Provider . C . Other Requirements. Service Provider agrees to depos it with C ity , at or before the effective date of th is Agreement , certificates of i nsura nce necessary to satisfy C ity t ha t t he insurance prov isions of th is contract have been complied with . The City may require t hat Serv ice Provider furnish City with copies of original endorsements effecting coverage required by this Exh ibit "C". The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete, cert ified cop ies of all required insurance polic ies , at any time . 1. Service Provider shall furnish cert ificates and endorsements from each subServ ice Prov ider identical to those Serv ice Prov ider provides . 2 . Any deductibles or self-insured retentions must be declared to and approved by City . At the option of City , either the insurer shall reduce or eliminate such deductibles or self-insured retent ions as respects City or its respective elected or appointed officers , officials , employees and vo lunteers or the Serv ice Provider shal l procure a bond guarantee i ng payment of losses and re lated i nvestigations , claim administration , defense ex penses and claims . 3. The procuring of such required policy or pol ic ies of insurance shall not be construed to lim it Serv ice Prov ider's liabil ity hereunder nor to fu lfill t he i ndemn ifi cat ion prov isions and requirements of th is Agreement.