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CC Resolution 8826 RESOLUTION NO. 8826 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING THE EXECUTION OF A PARK DEVELOPMENT AGREEMENT WITH NCD CONSTRUCTION, INC; AUTHORIZING THE PUBLIC WORKS DIRECTOR TO EXECUTE AND AGREEMENT WITH GUZZARDO AND ASSOCIATES; APPROVING A CONCEPTUAL PARK DESIGN SCHEDULE; AND APPROVING A BUDGET ADJUSTMENT WHEREAS, the City Council finds as follows: 1. The City is the owner of 4.1 acres of land commonly known as a portion of the former San Tomas School Site ("Park") and City desires to obtain construction project management services for the purpose of developing said land into a public park ("Project"); 2. NCD Construction, Inc. IS a wholly owned subsidiary of New Cities Development Group (NCDG); 3. NCDG is a General Partner in 36 NC Campbell, L.P., which is the general partner of 36 Campbell Associates, L. P., the owner of Tract 8726, which is seeking to develop 36 single-family homes on a subdivision adjoining the Park site; 4. 36 Campbell Associates L.P. is obligated to pay the total sum of $395,640 in Park Fees in accordance with conditions of approval for Tract 8726; 5. The development of the Park would enhance the value of 36 Campbell Associates, L.P.'s adjoining subdivision; 5. NeD Construction, Inc. has the expertise, resources and capabilities to construct the Park; 6. NCD Construction, Inc. can construct the park in less expense that City could by itself; 7. Construction of the Park by NCD Construction, Inc. would satisfy 36 Campbell Associates, L.P.'s Park Fees obligation; 8. The nature of the Project is such that competitive proposals would be unavailing and would not produce an advantage to the City or the public, and the advertisement for competitive bid would be undesirable, impractical, or impossible, in that NCD Construction, Inc. has a special interest in improving the park, is obligated to pay for park improvements, and can improve the Park site more expeditiously and most effectively in conjunction with development of its adjoining subdivision. WHEREAS, the City wishes to obtain the services of Guzzardo and Associates, a professional landscape architectural firm, for conceptual design services; and i j RECEIVED JUN 1 1995 Ans.d.... .. .... . . SAN TOMAS PARK DEVELOPMENT AGREEMENT THIS AGREEMENT is entered into as of the ~th day of June, 1995 by and between the CITY OF CAMPBELL ("city") and NCD CONSTRUCTION, INC. ("Construction Manager") a wholly owned subsidiary of New cities Development Group (NCDG). WHEREAS, City is the owner of 4.1 acres of land commonly known as the San Tomas School si te ("Park") which is more specifically described in Exhibit "A" attached hereto and made a part hereof, and City desires to obtain design and construction project management services for the purpose of developing said land into a recreational public park ("Project"); AND WHEREAS, NCDG is a General Partner in 36 NC Campbell, L.P., which is the general partner of 36 Campbell Associates L.P., the owner of Tract 8726, which is seeking to develop 36 single- family homes on a subdivision adjoining the Park site; AND WHEREAS, 36 Campbell Associates L. P. is obligated to pay the total sum of $395,640 in Park Fees in accordance with conditions of approval for Tract 8726; AND WHEREAS, city has determined to use the aforementioned park fees for development of the Park site; AND WHEREAS, development of the Park would be to the mutual benefit of NCDG, 36 NC Campbell L.P, 36 Campbell Associates L.P., and City; AND WHEREAS, Construction Manager wishes to assist the City in the accelerated design and construction of the Park, and represents that it has the expertise, means and ability to perform the Project; AND WHEREAS, Construction Manager desires to satisfy 36 Campbell Associates L.P.'s obligations for provision of park facilities by developing the adjoining Park site in lieu of payment of park fees; AND WHEREAS, the nature of the project is such that competitive proposals would be unavailing and would not produce an advantage to th~ City or the public in general, in that Construction Manager can improve the park site more expeditiously and cost effectively in conjunction with development of the adjoining subdivision; NOW THEREFORE, in consideration of the promises and mutual 1 covenants contained herein, and for the mutual benefits to be derived from this Agreement, and in satisfaction of condition number 16 on approved tentative subdivision map TS-9303 and condition number 6 on site and Architectural approval S95-03, the parties hereby agree as follows: ARTICLE 1 - Extent of Aareement 1.1 Best Efforts: The Construction Manager accepts the relationship of trust and confidence established between it and the Ci ty by this Agreement. Construction Manager agrees to furnish its best skill and judgment and to cooperate with the landscape architectural firm selected by City pursuant to Section 3.1 of the Agreement (" Consul tant" ) to develop the proj ect. Construction Manager further agrees to furnish efficient business administration and management and to use its best efforts to complete the Project in an expeditious and economical manner consistent with the interest of the City. 1.2 Extent of Agreement: This Agreement represents the entire agreement between the City and the Construction Manager and supersedes all prior negotiations, representations or agreements. When drawings, plans, and specifications are completed and approved by the City as provided herein, they shall be considered to be incorporated as part of this Agreement. However, this Agreement shall not be superseded by any provisions of the documents for construction and may be amended only by written instrument signed by both the City and the Construction Manager. ARTICLE 2 - Duties of Construction Manaaer Construction Manager shall perform the following services: 2.1 Design Phase 2.1.1 si te Clearance: clear the Park site free of any other refuse within thirty (30) Agreement. Construction Manager agrees to and all structures, debris, or days of the execution of this 2.1.2 Final Design: Upon the approval of a conceptual Project plan by the City, Construction Manager agrees to retain Consultant or another consultant acceptable to City to prepare any and all final plans and specifications for the construction of Project. Prior to retaining said Consultant for the preparation of final plans and specifications, Construction Manager agrees to submit any and all agreements between Construction Manager and said Consultant, as well as any other design professionals retained by Construction Manager, to the City for its approval. City will approve, deny or otherwise comment on the agreement within seven (7) days after the submittal of the agreement to the City. 2 2.1.3 Submittal of Plans: Construction Manager agrees to submit plans and specifications for the Project for plan check at sixty percent (60%), and one hundred percent (100%) completion intervals for city review, comment and approval. Construction Manager shall use its best efforts to ensure plans and specifications are submitted to City such that City can complete its review and approval by September 15, 1995 as specified in section 3.3. 2.1." Preliminary Construction Budget: Between the submittal of the sixty (60%) and 100 percent (100%) plans and specifications for comment, Construction Manager shall prepare and present to City a Preliminary Construction Budget based on bids in response to preliminary plans, which shall itemize the anticipated costs of labor, materials and other items necessary to complete the Project. 2.1.5 Final Construction Budget: The Preliminary Construction Budget shall be updated following receipt of final bids based on final approved plans and specifications for construction of the Project. As provided for in Article 6, city and Construction Manager shall establish the scope of the project to be constructed by Construction Manager. 2.1.6 Cooperation: Construction Manager and City agree to cooperate in good faith in all aspects of the design phase contemplated by the performance of the Agreement. 2.2 construction Phase 2.2.1 Physical Construction: Construction Manager agrees to have Park improvements constructed in substantial conformance with the final plans and specifications. As used in this section, construction shall include, but not be limited to, conducting bidding for Trade Contractors, providing supervision, labor, materials, construction equipment, tools, and any and all other items which are necessary for the completion of the Project. 2.2.2 Scheduling: Construction Manager shall use its best efforts to complete construction of the Project within one- hundred and twenty (120) days of approval of the final plans and specifications, subject to delays due to weather, acts of God, or force majeure. Construction Manager shall advise City if at any time they have reason to believe the Project will not be completed on schedule. 2.2.3 Deposit of Security: Construction Manager shall obtain, and maintain in full force and effect at all times prior to final acceptance of the Project the following contract bonds in the amounts equal to the total of the Construction Manager's Park Fee obligation: 3 (a) A Faithful Performance bond including a one (1) year maintenance period on a form approved by the City; (b) A Labor and Materials bond on a form approved by the city; (c) A payment bond on a form approved by the City. All alterations, extensions of time, extra and additional work, and other changes authorized by this Agreement may be made without securing the consent of the surety or sureties on the contract bonds. For purpose of this Agreement, the one (1) year maintenance period shall commence upon acceptance of completion by the City, during which time Construction Manager shall repair or replace any defect in their works, materials or facilities that appear within one (1) year from the date of the final acceptance of the project, unless such defect is solely caused by negligence or intentional misconduct of a ci ty or third party not under contract wi th Construction Manager. 2 .2. .. Change Orders: Construction Manager, in conjunction with City, shall develop and implement a system for the preparation, review, and processing of Change Orders generally conforming to change order provisions of City of Campbell standard specifications, and recommend and submit necessary or desirable changes to the City for its approval, as provided in Article 7 of this Agreement. 2.2.5 Progress Meetings: Construction Manager at the City's request shall schedule and conduct weekly progress meetings at which City, Consul tant and Construction Manager can discuss jointly such matters as procedures, progress, problems and scheduling. 2.2.6 Warranty: Construction Manager shall use its best efforts to ensure that all materials and equipment included in the Project will be new, unless otherwise specified, and that such work will be of good quality, free from improper workmanship and defective materials, and in substantial conformance with the final drawings, plans, and specifications. Construction Manager further agrees to perform the service contemplated by this Agreement in accordance with the skill and expertise exercised by members of Construction Manager's profession. 2.2.7 Cooperation: Construction Manager and City agree to cooperate in good faith in all aspects of the construction phase contemplated by the performance of the Agreement. 2.2.8 Permits: Construction Manager shall not be responsible for paying for any permits that the City may require 4 for the project. Construction Manager shall be responsible for obtaining a no fee encroachment permit from the city prior to commencing any construction under this agreement. Construction Manager shall be responsible for obtaining any necessary permits and approvals in connection with the project from any and all other agencies. However, City shall cooperate in assisting Construction Manager in obtaining permits from other agencies as is necessary. 2.2.9 Surveys and Reports: City shall furnish for the site of the Project all existing surveys describing the physical characteristics, soil reports and subsurface investigations, legal limitations, utility locations, and a legal description that are currently in City's possession. City and Construction Manager shall mutually develop the scope of soils report and testing program. Construction Manager shall obtain on behalf of the City a soils report on the condition of the soils and subsurface areas signed and sealed by a competent engineer for submission to the City for its approval. Upon approval of the report by the City, the City will accept responsibility for any site conditions that materially differ from those disclosed in the approved soils report, surveys and investigations made available to Construction Manager. Construction Manager shall retain a surveyor, as necessary, for design and/or construction phases. Costs incurred by Construction Manager under this section shall be considered as cost of the Project and eligible for In Lieu Credit or Reimbursement as provided for in Article 6. 2.2.10 Regulation Compliance: Construction Manager shall comply with all applicable local, state, and federal laws, including, but not limited to, any codes and regulations pertaining to construction of public facilities as they might apply to Construction Manager or the Project. 2.2.11 Final Completion: Construction Manager shall provide written notice to the City and Consultant that the project is ready for final inspection and secure and transmit to the City all required guarantees, affidavits, and receipts of final payment, releases, bonds and waivers, and As-Built drawings. ARTICLE 3 - city's ResDonsibilities 3.1 Landscape Architectural Consul tant: ci ty shall select and retain a landscape architectural Consultant for the facilitation of community meetings, development of park programs, design alternatives, preparation of conceptual Project plan and cost estimate. Construction Manager shall deposit with the City cash in an amount equal to Consultant's contract costs prior to City executing agreement with Consultant. Said deposit shall be considered a cost of the project and eligible for In Lieu Credit or Reimbursement as provided for in Article 6. 3.2 Approval of Concept Plan: City shall use its best 5 efforts to obtain approval of a conceptual Project plan from the city Council of city of Campbell by August 1, 1995. The development and approval of a conceptual Project plan shall be subject to community meetings, review by the Parks and Recreation Commission, and Open Space Committee of the City council of the City of Campbell. 3.3. Approval of Final Plans: City shall use its best efforts to approve final plans and specifications by September 15, 1995. Except as provided in section 3.4, no work shall commence on the project until the City has approved the final plans and specifications in writing. 3.4 Work In Advance of Final Approval: City, in its sole discretion, may allow Construction Manager to commence design work prior to council approval of conceptual plans, or construction work prior to written approval of the final plans and specifications, in which case Construction Manager will proceed at its own risks as to any deviation between the work and the approved conceptual or final plans and specification, and shall bring the Project into conformance with the approved conceptual plan or final plans and specifications at Construction Managers sole cost and expense, and shall not be entitled to any credit or reimbursement from City for such costs and expenses resulting from such deviation. Credit shall be provided to the extent said work is in conformance with approved Conceptual Plans or Final Approved Plans and specifications. 3.5 Inspection: City shall have the right to inspect and approve all construction of the Project and related improvements to the Park. Such approval shall not be unreasonably withheld or delayed. 3.6 Full Disclosure: City shall provide full information regarding its requirements for the Project and shall designate a representative who shall be fully acquainted with the Project and has authority to approve Project Construction Budgets, Change Orders, and who shall render decisions promptly and furnish information expeditiously. 3.7 Final Acceptance: Upon final acceptance of the Project by the City, the City shall record a Notice of Completion and release the security provided pursuant to section 2.2.3 of this Agreement. 3.8 Relief from Maintenance and Responsibility: Upon request of Construction Manager and a showiny of unusual circumstances, City may make a partial acceptance of a portion of the work on the Project, which will relieve Construction Manager from the responsibility for maintenance and protection of the partial accepted portion of the project. Partial acceptance shall initiate the one (1) year maintenance period set forth in section 6 2.2.3 of this Agreement as to the portion of the Project Partial accepted. A partial acceptance will be considered only upon a written request from the Construction Manager specifying the unusual circumstances and the specific portion of the Project to be accepted. The City shall be the sole and final judge of whether the indicated unusual circumstances warrant a partial acceptance and of what portion of the work is partially accepted. However, nothing contained herein shall be construed as relieving Construction Manager, its contractors, subcontractors or others providing services to Construction Manager of their full responsibility for making good defective work or materials under this Agreement or other applicable provisions of law. Construction Manager shall provide reasonable access to City to maintain those areas which have been partially accepted. ARTICLE 4 - Trade Contracts and Consultants 4.1 Responsibility to City: The Construction Manager shall be responsible to the City for the acts and omissions of his agents and employees, Consultants, Trade Contractors performing work under a contract with the Construction Manager, and such Trade Contractors' agents and employees only during the design or construction of Construction Manager's portion of the proj ect. Trade Contractors shall be responsible directly to the Construction Manager and shall not be construed as having any contractual relationship with city. 4.2 Responsibility to Construction Manager: Construction Manager shall be solely responsible for any and all claims from Trade Contractors, suppliers or materialmen in excess of the bid submitted by the Trade Contractor, supplier or materialman, whether arising out of delay, disruption or any other cause, and shall not be entitled to any credit or reimbursement from the City, unless the compensation was expressly approved by the City in connection with a change order pursuant to Article 7 of this Agreement or the claims are the result of City caused delays or differing site conditions. Construction Manager shall indemnify, defend and hold City, its officers, officials, employees, agents and volunteers, harmless from any of the above- described claims, which indemnity shall also cover any and all reasonable costs and attorney's fees incurred by City in defense of such claims. ARTICLE 5 - Cost of the Project 5.1 Cost Items: The term Cost of the Project shall mean costs necessarily incurred in the Construction Manager's portion of the Project during either the Design or Construction Phase, approved by the City and paid by the Construction Manager including the cost of required bonds. 7 5.2 city's Consultant Costs: city shall pay for the City's Consultant costs associated with the preparation of a conceptual park plan from construction Manager's cash deposit described in Section 3.1. 5.3 Final Consul tant Plans: Construction Manager shall pay the Consultant costs associated with the preparation of the final plans and specifications of the Project, including costs of soils reports and testing described in section 2.2.9. 5." Construction Costs: Construction Manager shall pay for all costs of construction of the Project including, but not limited to, wages and benefits for Construction Manager's employees, cost of materials, supplies, and equipment including the costs of transportation and storage thereof, payments made to Trade Contractors, rental charges of all necessary machinery and equipment, permit fees and licenses, insurance premiums directly attributed to the project, the deductible portion of any claims covered by Construction Managers insurance as approved by the City, and all other expenses necessary to complete the Project in substantial accordance with the project plans and specifications. 5.5 Audi t of Costs: Construction Manager shall maintain detailed records concerning all Costs of the Project in accordance with generally accepted accounting practices. These records, and all supporting documentation shall be maintained by the Construction Manager for a period of at least three years following acceptance of the Project by the City. These records shall be available for review by City, or its designated representative during normal working hours at Construction Managers main office. The city, at its own expense, may hire a qualified auditor to conduct an audit of the records and supporting documentation upon reasonable advance notice to Construction Manager, not less than twenty-four (24) hours. Construction shall provide its full and complete cooperation to the auditor in conducting the audit. ARTICLE 6 - Scope of proiect and Credit of proiect Costs 6.1 Determination of Project Scope: Based on the Final Construction Budget as described in section 2.1.5, City and Construction Manager shall meet and confer in good faith in an attempt to agree on the scope of the Project to be constructed by Construction Manager. In establishing the scope of the Project, the parties shall endeavor to have the cost of the Project equal, so far as possible, the amount of the Park Fees owed by Constructivn Manager to City, including a reasonable allocation for contingencies of not less than ten percent (10%) of the total Project Budget. If the parties are unable to agree on the scope of the Project within five (5) days after receipt of bids, then Construction Manager shall have the option of offering to construct interim landscaping and irrigation improvements acceptable to the 8 city, or paying its Park Fees and terminating this Agreement. The City and Construction Manager shall meet and confer in good faith on the proposal in an attempt to reach agreement on the scope of the interim improvements. If no agreement on the scope and credit of the interim improvements is reached within ten (10) days following receipt by the City of Construction Manager's written notice, then the Agreement shall be deemed terminated, and Construction Manager shall pay its then outstanding remaining Park Fees obligation to City. 6.2 Procedure If Conceptual Plan Not Timely Approved: If City does not approve a Conceptual Project Plan by August 1, 1995, Construction Manager may, within five (5) working days submit a written request to City proposing to construct only interim landscaping and irrigation improvements, or terminating this agreement and paying its outstanding Park Fee obligations. Upon receipt of a notice of a proposal for installation of interim landscaping and irrigation improvements, the City and Construction Manager shall meet and confer in good faith on the proposal in an attempt to reach agreement on the scope of the interim improvements. If no agreement on the scope and credit of the interim improvements is reached within ten (10) days following receipt by the City of Construction Manager's written notice, then the Agreement shall be deemed terminated, and Construction Manager shall pay its then outstanding remaining Park Fees obligation to City. 6.3 Procedure If Final Plans and specifications Not Timely Approved: If City fails to approve Final Plans and Specifications by September 15, 1995, Construction Manager may, within five (5) working days submit a written request to City proposing to construct only interim landscaping and irrigation improvements, or terminating this Agreement and paying its outstanding Park Fees obligations. Upon receipt of notice of a proposal for construction of only interim landscaping and irrigation improvements, the City and Construction Manager shall meet and confer in good faith on the proposal in an attempt to reach agreement within the scope of the interim improvements. If no agreement on the scope and credit of the interim improvements is reached within ten (10) days following receipt by the City of the Construction Manager's written notice, then the Agreement shall be deemed terminated, and Construction Manager shall pay its then outstanding remaining Park Fee obligation to City. 6.4 In Lieu Credit: Except as otherwise provided in this Agreement, City shall credit the Costs of the Project against Construction Manager's Park Fee obligation upon submission of proof of payment. 6.5 Limit of Park Fee Credit, Project Costs and Scope of Work: Notwithstanding Section 6.4 or any other provision of this Agreement, (i) the City'S obligation to credit the Project cost 9 against the Park Fee obligation shall not exceed the amount of the Park Fee obligation, (ii) the Construction Manager's obligation to incur Project costs shall not exceed the amount of the Park Fee credit, and (iii) the scope of the work which Construction Manager shall be obligated to do under this Agreement shall not exceed the amount of the Park Fee credit granted against Costs of the Project incurred, unless City approves and pays for any additional costs incurred in connection with a City approved change order. 6.6 Credi t for Interim Landscaping: If the parties opt to provide for only interim landscaping and irrigation pursuant to sections 6.1, 6.2 or 6.3, then Construction Manager shall be entitled to a credit against its Park Fee obligation for construction of the improvements in an amount equal to only the cost of installing those portions of the interim improvements that will survive and are necessary for the construction of the final park improvements for the Project and other cost of the Project provided in Article 3. Notwi thstanding any provisions of this agreement to the contrary, any interim improvements shall be subject to all applicable project requirements and construction manager obligations. 6.7 Costs of Clearing site: Also notwithstanding section 6.1, any and all costs associated with or incurred by Construction Manager in connection with the clearing of the Project site as stated in section 2.1.1 shall not be credited against park fees nor reimbursed by City. 6.8 Compensation to Construction Manager: The Construction Manager shall not be entitled to any compensation or reimbursement for its overhead, payroll expense, employee benefits, or value of its services, or any compensation for its services from City. 6.9 ci ty Election to Retain Consul tant: Notwi thstanding anything contained in this Agreement to the contrary, City may, in its sole discretion, Reimburse Construction Manager for Consultant or other project costs, in which case Construction Manager would not be entitled to credi t for the costs of the Consultant' s services or reimbursed project costs. 6. 10 Notwithstanding anything contained in this Agreement to the contrary, if any of the Park Fee Obligation is left uncredited at the final completion of the Project, the Construction Manager shall remit the outstanding Park Fee's to City. ARTICLE 7 - Chanaes in the proiect 7. 1 ci ty changes: The City, without inval idating this Agreement, may order Changes in the Project within the general scope of this Agreement consisting of additions, deletions or other revisions which may increase or decrease the amount of Construction 10 Manager's services. To the extent that the Change increases or decreases the cost of the proj ect, the Construction Proj ect Budget, Construction Manager's Credit, and the Construction completion Date shall be adjusted accordingly. All such changes in the project shall be authorized by Change Order. 7.2 Change Order: A Change Order is a written order to the Construction Manager signed by the City or its authorized agent issued after the execution of this Agreement, authorizing a Change in the Project or the method or manner of performance and/or an adjustment in the Construction Manager's Credit, the Construction Project Budget, or Construction Completion Date. Each adjustment resulting from a Change Order shall clearly separate the amounts attributable to each item. ARTICLE 8 - Indemnitv and Insurance 8 . 1 Indemni ty 8.1.1 Construction Manager agrees to indemnify, defend and hold City, its agents, officers, attorneys, employees and officials harmless from any and all claims, causes of action, injuries or damages arising from the Construction Manager's operations under this Agreement prior to final acceptance of the Project by the City, and including any work required during the one (1) year maintenance period, or out of any negligent or intentional conduct on the part of Construction Manager, its agents, officers, employees, Trade Contractors, or anyone rendering services on its behalf. This indemnity shall include reasonable costs and attorney's fees incurred in defending any action covered by this provision. 8.1.2 City agrees to indemnify, defend and hold harmless Construction Manager, NCDG, 36 NC Campbell, L.P., and 36 Campbell Associates L.P., its affiliates (including without limitation partnerships and other entities in which Construction Manager or its affiliates are partners or members), and its and their agents, officers, attorneys, and employees, from any and all claims, causes or action, liabilities, expenses, injuries or damages arising from (i) City's operations under this Agreement, (ii) or out of any negligence or intentional misconduct on the part of the City, its agents, officials, officers, or employees, (iii) all site conditions at the Project that preexisted the commencement of construction, and (iv) the conditions and use of the Park subsequent to the earlier of (A) the public being admitted to the Park, or (B) City's final acceptance of the Project, unless such claims, causes of action, damages or injuries proximately arise out of latent conditions due to the negligence or intentional misconduct by Construction Manager, and give rise to a cause of action within seven (7) years of the date of final acceptance of Construction Managers portion of the project, in which case, this indemnity shall not enure unless and until Construction Manager has 11 first expended the sum of $400,000 toward settlement or judgement in such cause or action. This indemnity shall include reasonable costs and attorney's fees incurred in defending any action covered by this provision. 8.2 Insurance Construction Manager shall maintain insurance conforming to the following specifications, unless otherwise approved in writing by the City: 8.2.1 Premises Insurance: Construction Manager agrees, at all times during the Design and Construction Phases and at Construction Manager's sole expense, to maintain insurance coverage at least as broad as: (A) Insurance Services Office Commercial General Liability coverage "occurrence" form CG 0001 (Ed. 11/85), a copy of which can be obtained from the Department of Public Works; (B) Insurance Services Office form number CA 001 (Ed. 1/87) covering Automobile Liability code 1 "any auto," a copy of which can be obtained from the Department of Public Works; and (C) Worker's Compensation insurance as required by the Labor Code of the State of California and Employers Liability Insurance. The insurance required hereunder shall maintain limits no less than: (A) General Liability: $1,000,000.00 combined single limit per occurrence for bodily, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit; (B) Automobile Liability: $1,000,000.00 combined single limit per accident for bodily injury and property damage; and (C) Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers liability limits of $500,000.00 per accident. 8.2.2 Fire Insurance: Construction Manager, at all times during the Design and Construction Phases and at Construction Manager's expense, shall maintain on the premises, any buildings, and other improvements on the premises, insurance against loss or damage by fire and by any peril included within fire and extended coverage for the premises. Any policy or policies described in this subsection shall name City as an additional insured and the policy shall contain cross-liability endorsements. 8.2.3 Property Insurance: Construction Manager further agrees at all times during the Design and Construction Phases and at Construction Manager's sole expense, to keep all of Construction Manager's personal property, inclUding trade fixtures and equipment and all merchandise of Construction Manager that may be on the premises from time to time, insured against loss or damage by fire and by any peril included within fire and extended coverage 12 insurance for an amount that will insure the ability of Construction Manager to fully replace the trade fixtures, equipment and merchandise. 8.2. .. Other Insurance: Construction Manager shall provide and keep in force other insurance in amounts that may from time to time be required by City against other insurable hazards as are commonly insured against for the type of business activity that Construction Manager will conduct. 8.2.5 Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared and approved by the City. At the option of the city, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Construction Manager shall procure a bond guaranteeing payment of losses related investigations, claim administration and defense expenses. 8.2.6 Other Insurance provisions: The policies required by this Article are to contain, or be endorsed to contained, the following provisions: (A) As to General Liability and Automobile Liability Coverage: (1) The City, its officers, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by on or behalf of the Construction Manager, products and completed operations of the Construction Manager, premises owned, occupied or used by the Construction Manager, or automobiles owned, leased, hired or borrowed by the Construction Manager. The coverage shall contain no limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. (2) The Construction Manager's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Construction Manager's insurance and shall not contribute with it. (3) Any failure to comply with reporting provisions of the policies shall not effect coverage provided to the City, its officers, officials, employees or volunteers. ( 4) The Construction Manager'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. (B) As to Workers' compensation and Employers Liability Coverage, the insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Construction Manager. (C) As to all coverages, each insurance policy required 13 by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the city. 8.2.7 Acceptability and Verification: All insurance policies as required by this Agreement are to be placed with insurers with a Best's rating of no less that A:VII, unless written approval is obtained from the City for the insurer with a lesser rating. Construction Manager shall furnish the ci ty with certificates of insurance and with original endorsements affecting coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms acceptable to the city. Where by statute, the city's workers' compensation related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the City before Construction Manager begins construction on the premises. The city reserves the right to require complete, certified copies of all required insurance policies, at any time. ARTICLE 9 - Termination 9.1 Notwithstanding any other rights or remedies that the ci ty may have in law or equity, as in addi tion to the provisions of sections 6.1, 6.2, and 6.3 of this agreement the City shall have the right to terminate this Agreement for breach of any of its terms or conditions by Construction Manager, or anyone performing services on behalf of, or under Construction Manager. Prior to terminating the Agreement pursuant to this section, City shall give Construction Manager at least five (5) days advance written notice of the breach. Construction Manager shall then have thirty (30) days from the date of the notice to cure the breach. If the breach is successfully cured within the thirty (30) day period, the Agreement shall continue in full force and effect. If Construction Manager fails to cure the breach within the thirty (30) day period, City may terminate this Agreement. 9.2 In the event of termination, Construction Manager shall be precluded from any credit for costs yet to be incurred, and City shall not reimburse Construction Manager for any such costs. 9.3 The warranty provisions contained in section 2.2.3 of this Agreement and the indemnity provisions contained in Article 8 of this Agreement shall survive termination under this Article. 14 ARTICLE 10 - Assiqnment and Governinq Law 10.1 The Construction Manager shall have the right to assign this agreement to 36 Campbell Associates, L.P. upon five (5) days advance written notice to the City. Neither the City nor the Construction Manager shall have any other right to assign its interest in this Agreement without the written consent of the other. 10.2 This Agreement shall be governed by the law of the state of California. ARTICLE 11 - Miscellaneous provisions 11.1 This Agreement shall be binding on the heirs, executors, assigns and successors of Construction Manager. 11.2 All original papers, documents, drawings, plans, specifications and other work product of Construction Manager, and copies thereof, produced by Construction Manager pursuant to this Agreement, except documents which are required to be filed with other public agencies, shall become the property of City and may be used by ci ty without the consent of Construction Manager upon credit of project costs. 11.3 City's waiver of any term, condition or covenant, or breach of any term, condition or covenant, shall not be construed as the waiver of any other term, condition or covenant or waiver of the breach of any other term, condition or covenant. 11.4 If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall be valid and binding on City and Construction Manager. 11.5 All changes or amendments to this Agreement must be in writing, and approved by all parties. ARTICLE 12 - Notices 12.1 Notices required under this Agreement may be delivered by first class mail addressed to the appropriate party at one of the following addresses: City: City of Campbell 70 North First street Campbell, CA 95008 Attention: Mr. Robert Kass Public Works Director Construction 15 Manager: NCD, Construction Inc. 9781 Blue Larkspur Lane Monterey, CA 93940 Attention: Mr. Tom Merschel & Lee Newell IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. CITY <:. cl;y By: 'J~ -.....~ OF CAMPBELL Donald R. Burr, Mayor Dated: ~ Dated: c~o~ ~AGER NCD, CONSTRUCTION INC. By: Tim Cronin, President 16 ,- 111'1// II,' !ji'i!1 ",!'I! II I'" :;:'1/' Wh.: II'tll ,.1111 'i"I I,I!I' fl~I:: 'II tl " . I I . r\ iI l' :J J I . . . . ~ .,1 I. ~ .. .. .. n I c ri: jfg I =- ie! riE wi> I'. .IS _ n 1 0 ; :- m!)) I i ~ Q1~ .~~ ,! I i ;111 1~li Iii ! --~ -~-- . . 1 )NI , -::;; ~ ----~--~ ~ 5 ; . 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