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2017 ClearSource Financial - Appeal Fees
1 CITY OF LA QUINTA SHORT-FORM SERVICES AGREEMENT ($25,000 OR LESS) 1. PARTIES AND DATE. This Agreement is made and entered into this 22nd day of September, 2017, (“Effective Date”) by and between the City of La Quinta, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, CA (“City”) and ClearSource Financial Consulting, a California Corporation with its principal place of business at (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. 2. TERMS AND CONDITIONS. The Parties shall comply with the terms and conditions in the attached Exhibit “A.” 3. SCOPE AND SCHEDULE OF SERVICES. Consultant shall provide to City the services pursuant to the date(s) and schedule(s) described in accordance with the schedule set forth in Exhibit “B.” 4. TERM. The term of this Agreement shall be from September 22, 2017, until December 31, 2017, unless earlier terminated as set forth in the attached Terms and Conditions. This Agreement may not extend beyond a period of five (5) years, unless under the City’s Fiscal Policies and Procedures this Agreement is exempt from the five (5) year limitation. 5. COMPENSATION. Consultant shall receive compensation for services rendered under this Agreement at the rates and schedule set forth in the attached Exhibit “C” but in no event shall Consultant’s compensation exceed One Thousand Two Hundred Dollars ($1,200) per fiscal year (July 1 to June 30) without written amendment. 6. FORCE MAJEURE. The time period specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the City in writing of the causes of the delay. The City shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in their judgment such delay is justified, and the City’s determination shall be final and conclusive upon the parties to this Agreement. Extensions to time periods for performance of services, which are determined by the City to be justified pursuant to this Section, shall not entitle the Consultant to additional compensation unless City expressly agrees to an increase in writing. 7. INSURANCE. In accordance with Section 4 of Exhibit “A,” Consultant shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies to the City. Consultant shall obtain policy endorsements on 26529.00000\9101737.2 A‐1 EXHIBIT “A” TERMS AND CONDITIONS 1. Compensation. Consultant shall be paid on a time and materials or lump sum basis, as may be set forth in Exhibit “C”, within 30 days of completion of the Work and approval by the City. 2. Compliance with Law. Consultant shall comply with all applicable laws and regulations of the federal, state and local government. Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by Federal, State and local regulatory agencies. Consultant is responsible for all costs of clean up and/or removal of hazardous and toxic substances spilled as a result of his or her Work. 3. Standard of Care. The Consultant shall perform the Work in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 4. Insurance. The Consultant shall take out and maintain, during the performance of all work under this Agreement: A. Commercial General Liability Insurance in the amounts specified in Section 6 of the Agreement for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001), and if no amount is selected in Section 6 of the Agreement, the amounts shall be $1,000,000 per occurrence/$2,000,000 aggregate; B. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, of at least $1,000,000 per accident for bodily injury and property damage, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 6/92) covering automobile liability, Code 1 (any auto); C. Workers’ Compensation in compliance with applicable statutory requirements and Employer's Liability Coverage of at least $1,000,000 per accident or disease. Consultant shall also submit to City a waiver of subrogation endorsement in favor of city, and D. Professional Liability (Errors and Omissions) coverage, if checked in section 6 of the Agreement, with a limit not less than $1,000,000 per claim and which shall be endorsed to include contractual liability. Insurance carriers shall be authorized by the Department of Insurance, State of California, to do business in California and maintain an agent for process within the state. Such insurance carrier shall have not less than an "A"; "Class VII" according to the latest Best Key Rating unless otherwise approved by the City. 5. Indemnification. The Consultant shall indemnify and hold harmless the City, its Council, members of the Council, agents and employees of the City, against any and all claims, liabilities, expenses or damages, including responsible attorneys’ fees, for injury or death of any person, or damage to property, or interference with use of property, or any claim of the Consultant or subcontractor for wages or benefits which arise in connection with the performance of this Agreement, except to the extent caused or resulting from the active negligence or willful misconduct of the City, its Council, members of the Council, agents and employees of the City. The foregoing indemnity includes, but is not limited to, the cost of prosecuting or defending such action with legal counsel acceptable to the City and the City’s attorneys’ fees incurred in such an action. 6. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Riverside, State of California. 7. Termination. The City may terminate the services procured under this Agreement by giving 10 calendar days written notice to Consultant. In such event, the City shall be immediately given title and possession to any original field notes, drawings and specifications, written reports and other documents produced or developed for the services. The City shall pay Consultant the reasonable value of services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. Consultant may terminate its obligation to provide services under this Agreement upon 30 calendar days' written notice to the City only in the event of City’s failure to perform in accordance with the terms of this Agreement through no fault of Consultant. 8. Agreement Terms. Nothing herein shall be construed to give any rights or benefits to anyone other than the City and the Consultant. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Notice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the parties to the addresses set forth in the Agreement. Consultant shall not assign, sublet, or 26529.00000\9101737.2 A‐2 transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Consultant is retained as an independent contractor and is not an employee of the City. No employee or agent of Consultant shall become an employee of the City. The individuals signing this Agreement represent that they have the authority to sign on behalf of the parties and bind the parties to this Agreement. This is an integrated Agreement representing the entire understanding of the parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. This Agreement may not be modified or altered except in writing signed by both parties hereto. RESPONSE TO REQUEST FOR PROPOSAL COST OF SERVICE STUDY AND FEE SCHEDULE DEVELOPMENT (FEE-RELATED APPEALS) Presented to: City of La Quinta Attn. Monika Radeva, Deputy City Clerk Via email: mradeva@la-quinta.org Presented by: ClearSource Financial Consulting 7960 B Soquel Drive, #363 Aptos, California 95003 September 22, 2017 clearsourcefinancial.com EXHIBIT B SCOPE AND SCHEDULE OF SERVICES Table of Contents 1. Scope of Work ........................................................................................................................................... 1 2. Project Timeline ........................................................................................................................................ 2 3. Fee ............................................................................................................................................................. 3 4. Project Team and Qualifications ............................................................................................................... 4 1 1. Scope of Work 1. Calculate cost of service, develop fee schedule, and reporting for fee-related appeals Meet with representatives of the departments that provide the fee services examined as part of this study. The fee-related services included in the study are listed below: Appeals (e.g. appeals to City Council, appeals to Planning Commission, etc.) Prepare questionnaires and conduct interviews intended to gather organizational information required to complete this study. Identify the total cost of providing service at the appropriate activity level and in a manner that is consistent with all applicable laws, statutes, rules and regulations governing the collection of fees, rates, and charges by public entities. Prepare regional fee comparison. Recommend appropriate fees and charges based on the firm’s analysis together with the appropriate subsidy percentage or phase-in pattern for those fees where full cost recovery or significant immediate fee increases may be unrealistic. Prepare a proposed fee schedule that includes: Current fees and current cost recovery levels Proposed fees and proposed cost recovery levels Brief narrative identifying the reason for recommending less than full cost recovery for any fees, or categories of fees, for which less than full cost recovery is recommended. Prepare a fee study report that includes: Overview of the study purpose and methodology Identification of data sources Forecasted revenue impacts to the City’s General Fund Detailed presentation of the analytical outcomes of the study, including each service examined, its full cost, recommended and current cost recovery levels Schedule of proposed fees. 2. Attend Public Hearing to Consider Adoption of Proposed Fees (if requested) If requested, ClearSource will attend the public hearing to consider the updated schedule of fees. ClearSource will be available to present findings and answer questions received from the public or the City Council. 2 2. Project Timeline Project Commencement: September 25, 2017 Project Completion: November 30, 2017 Work Task / Month Sep Oct Nov 1 Cost of Service Calculations; Fee Schedule Development; Report Preparation 2 Presentation to City Council (if requested) 3 3. Fee The project budget is $1,200. This is a “not-to-exceed” fee that includes all associated fees (i.e. printing costs, attendance at meetings, and travel). The City will be billed according to one of the options below: o Fee Analysis without Public Hearing Attendance: $900 o Fee Analysis with Public Hearing Attendance: $1,200 The following table provides pricing details for each component of the project. Payment Terms ClearSource will provide monthly billings for in-progress work completed. The amounts billed will correspond to the timeline and deliverables identified in this proposal. Project Hours Hourly Rate Fee 1 Cost of Service Calculations; Fee Schedule Development; Report Preparation 6 $150 $900 2 Presentation to City Council (if requested)2 $150 $300 Total 8 $150 $1,200 Work Plan Task 4 4. Project Team and Qualifications Project Team and Qualifications This project will be led from start-to-finish by Mr. Terry Madsen. He will conduct all meetings, present all reports, and oversee development of all analysis and outcomes. Analytical support will be provided by Jeanette Hahn and Carolyn Jones. Their experience includes more than 50 years of direct support to local government agencies. Resumes Terry Madsen, MBA This project will be led from start-to-finish by Mr. Terry Madsen. Mr. Madsen is the President and Principal Consultant of ClearSource Financial Consulting. For more than 15 years, he has provided financial consulting services to local government agencies. In October, 2011 Mr. Madsen founded ClearSource Financial Consulting (ClearSource), a firm dedicated to providing local government agencies with premier financial consulting services. From October, 2001 to October, 2011 Mr. Madsen was employed by the competing firm, NBS. Mr. Madsen’s depth of knowledge includes numerous service areas including user fee studies, indirect cost allocation studies, internal service fund rate studies, water and wastewater rate studies, and special financing district administration. During his career he has served the following agencies, among others: Atherton Napa Bell “The New Bell” Oakdale Chula Vista Oro Loma Sanitary District East Palo Alto Sacramento Gustine Sacramento Regional Transit District Hesperia San Carlos Indio San Diego Metropolitan Transit System La Habra Heights Santa Paula Laguna Woods Sierra Madre La Quinta Taft Long Beach Union Sanitary District Los Angeles Ventura Mr. Madsen has worked closely with every level of the public body including property owners, community organizations, council members, special commissions, agency managers, all members of the agency finance team, directors of every agency department, management analysts, and the direct service staff that are the primary contact points for members of the community, such as inspectors, plan reviewers, operators, maintenance personnel, and records staff. Mr. Madsen’s experience in developing central service cost allocation models includes all phases of the work, from project initiation to completion and presentation of final findings. His efforts include data T. Madsen Principal Consultant (Project Lead) J. Hahn Sr. Consultant C. Jones Sr. Analyst 5 gathering, conducting interviews with agency staff, model development, report preparation, and presentation and delivery of cost allocation plan narratives. He has calculated cost allocation and internal service fund charges for support service departments such as Board of Directors/City Council, Agency Management and Administration, Clerk, Legal, Finance, Human Resources, Information Technology, Fleet and Facilities Maintenance, Security, and Risk Management. Mr. Madsen is a member of the California Society of Municipal Finance Officers. He received his undergraduate degree (Cum Laude) from Cal Poly, San Luis Obispo. He was awarded a Bachelor of Science in Business Administration with a Finance Concentration and an Economics Minor. He received his graduate degree from California State University, San Bernardino. He was awarded a Master of Business Administration with an Entrepreneurship Concentration. Jeanette Hahn Jeanette Hahn is a Senior Consultant for ClearSource Financial Consulting. She has 16 years of experience advising municipal agencies on equitable and effective costs of service, cost recovery, and strategic financial planning. Ms. Hahn has analytical and policy expertise in the following subject matter: Cost of service analysis and cost allocation for cost recovery opportunities, including user fees, regulatory fees, and contracts/partnerships Water, wastewater, reclaimed water, and storm water/drainage utility rates and fees Development impact fees and capacity charge nexus analysis/justification Economic feasibility/decision analysis Long-range financial planning Benchmarking Prior to becoming part of the ClearSource team in 2017, Ms. Hahn succeeded at competing consulting firms. She was Director of Financial Consulting for NBS from 2007 to 2011 and served progressive roles at FCS GROUP from 1997 to 2007, including California Regional Manager from 2004 to 2007. Ms. Hahn stepped down from these executive roles in 2011 to focus on motherhood. Ms. Hahn has performed nearly 200 separate engagements for public agencies of diverse size and situation throughout the Western United States, including in California, Washington, Oregon, Idaho, Nevada, Utah, Montana, and Alaska. She is articulate and agile when working within the legal framework of rate and fee-setting across these states, with particular emphasis on California’s Proposition 218 and the state’s Mitigation Fee Act. As an accomplished and highly regarded speaker, Ms. Hahn has earned a reputation for crafting effective and persuasive messages for attaining legislative and public approval of financial plans and accompanying rates and fees. Her skills have been deployed frequently in municipal work to defuse contentious or actively contested matters. Furthermore, she has been repeatedly invited to present in educational and industry forums, such as the California Society of Municipal Finance Officers, League of California Cities, Association of California Water Agencies, and California Special Districts Association, among many others. Ms. Hahn holds a Bachelor of Arts in Economics with a Public Finance concentration from the University of Washington, Seattle. 6 Carolyn Jones Ms. Jones is a Senior Analyst for ClearSource Financial Consulting. Prior to joining ClearSource, Ms. Jones spent 20 years as a financial analyst for the City of Ventura specializing in public works, water/wastewater, and parks and recreation. Included in her local government experience are cost allocation studies, internal service fund rate studies, user fee studies and special assessment district administration. Prior to working in Ventura, Ms. Jones was a senior management analyst for the City of Moreno Valley Community Services District. The special district includes street lighting and landscape as well as construction related assessment districts and community facility districts. She also spent six years with the Municipality of Anchorage where she worked on the ombudsman team investigating citizen complaints. Her review of local government operations included utilities, public safety, general government, planning, and public works. In addition to her public experience, Ms. Jones spent six years as a management analyst in the private sector with British Petroleum (Amoco). Her responsibilities included all divisional operations of the oil industry; financial, human resources, field support, payro ll, and government reporting. Ms. Jones was awarded a Bachelor of Science in Business Administration with a Management Concentration from the University of Alaska, Anchorage. General Information Location of Office: ClearSource is located in Aptos, California. Firm Structure: ClearSource is a California corporation. Ability to Comply with City Insurance Requirements: ClearSource will maintain adequate professional liability, general liability, auto and worker’s compensation insurance during the entire term of the Project. Active Business License for City of La Quinta: ClearSource maintains an active business license for the City of La Quinta. No Pending Litigation: ClearSource is not a part of any pending or past litigation. No Conflicts of Interest: ClearSource has no conflicts of interest that may prevent the firm from performing the required duties of the project. Contact Information Company Name: ClearSource Financial Consulting Contact: Terry Madsen Phone: (831) 288-0608 | Fax: (831) 288-0718 Address: 7960 B Soquel Drive, #363 Aptos, CA 95003 Email: tmadsen@clearsourcefinancial.com | Web: clearsourcefinancial.com Services Provided User and Regulatory Fee Studies Cost Allocation Studies Internal Service Fund Rate Studies Fee Schedule Updates Utility Rate Studies EXHIBIT “C” COMPENSATION FOR SERVICES The maximum total compensation to be paid to Consultant under this Agreement is One Thousand Two Hundred Dollars ($1,200) (“Contract Sum”). The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultant’s schedule of compensation attached hereto for the work tasks performed and property invoiced by Consultant in conformance with Section 2.2 of this Agreement. CALIFORNIA FORM 7 0 0 STATEMENT OF ECONOMIC INTERESTS Date Initial Filing Received Official Use Only FAIR POLITICAL PRACTICES COMMISSION A PUBLIC DOCUMENT Please type or print in ink. NAME OF FILER (LAST) Madsen 1. Office, Agency, or Court Agency Name (Do not use acronyms) ClearSource Financial Consulting Division, Board, Department, District, if applicable (FIRST) Terence COVER PAGE Your Position President (MIDDLE) Michael ~ If filing for multiple positions, list below or on an attachment. (Do not use acronyms) Agency:--------------------Position:------------------ 2. Jurisdiction of Office (Check at least one box) OState D Judge or Court Commissioner (Statewide Jurisdiction) D Multi-County _______________ _ D County of ________________ _ D City of _________________ _ [8] Other Consultant for City of La Quinta 3. Type of Statement (Check at least one box) [8] Annual: The period covered is January 1, 2016, through December 31, 2016. ·Or· The period covered is __J__J ____ , through December 31, 2016. D Assuming Office: Date assumed __J__J ___ _ D Leaving Office: Date Left __j__j ___ _ (Check one) O The period covered is January 1, 2016, through the date of leaving office. ·Or· O The period covered is __J_J , through the date of leaving office. D Candidate: Election year and office sought, if different than Part 1: ---------------- 4. Schedule Summary (must complete) ..,,. Total number of pages including this cover page: __ _ Schedules attached -or- D Schedule A-1 • Investments -schedule attached D Schedule A-2 • Investments -schedule attached D Schedule 8 · Real Properly -schedule attached l8l None • No reportable interests on any schedule 5. Verification MAILING ADDRESS STREET (Business or Agency Address Recommended -Public Document) 7960 B Soquel Drive, #363 DAYTIME TELEPHONE NUMBER ( 831 ) 288-0608 CITY Aptos D Schedule C • Income, Loans, & Business Positions -schedule attached D Schedule D • Income -Gifts -schedule attached D Schedule E -Income -Gifts -Travel Payments -schedule attached STATE ZIP CODE CA 95003 E-MA IL ADDRESS tmadsen@clearsourcefinancial.com I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Date Signed Lf-/ \ '\ j -i...o \ 1 Signature ~ '--~~ (month, day, year) (File th originally signed statement with your filing official.) FPPC Form 700 (2016/2017) FPPC Advice Email: advice@fppc.ca.gov FPPCToll-Free Helpline: 866/275-3772 www.fppc.ca.gov ACORD® CERTIFICATE OF LIABILITY INSURANCE I DATE {MM/DD/YYYY) L _.-/ 4/27/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 1;uNTACT NAME: FRANK VITALE INSURANCE AGENCY i..t18NJo Ext\ (831) 462-9222 I iffc.No\:(831) 462-9299 4067 Cory St ~o~~~ss Fvi tale99@gmail.com Soquel, CA 95073 INSURER(S) AFFORDING COVERAGE NAIC# INSURER A: PHILADELPHIA INDEMNITY INS CO 18058 INSURED CLEARSOURCE FINANCIAL CONSULTING i=v~LERS PROPE1<:n CASUALTY CO u~ AMERil..A 25674 INSURER B · 7960 B SOQUEL DR, STE 363 INSURERC: APTOS, CA 95003 INSURER D: 831-288-0608 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR 1rJS,~g~) 11JSM8~) LIMITS LTR INSD WVD POLICY NUMBER x COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ l,000 ,000 -=i CLAIMS-MADE [Kl OCCUR U"IVI""'"' I ~I r\<ON I <:U f--PREMISES Ea occurrence\ $ 50,000 PHSD1191115 12/09/2016 12/09/2017 MED EXP (Any one person) $ 5,000 f-- A y y PERSONAL & ADV INJURY $ 1,000,000 f-- GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 :K/ POLICY [] mg: []we PRODUCTS -COMP/OP AGG $ 1,000,000 OTHER: $ AUTOMOBILE LIABILITY CE'i:MBINED t~IN(jLt: LIM! 1 accident $ 1,000,000 - ANY AUTO 12/09/2016 12/09/2017 BODILY INJURY {Per person) $ f--ALL OWNED ~SCHEDULED PHSD1191115 A AUTOS AUTOS y y BODILY INJURY (Per accident) $ f--f--x x NON-OWNED iP1!,?~;c~~tPAMAGE $ HIRED AUTOS AUTOS f--f-- $ UMBRELLA LIAB ~I occuR EACH OCCURRENCE $ - EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED I I RETENTION$ $ WORKERS COMPENSATION x I STATUTE I I E'.Rn-AND EMPLOYERS' LIABILITY Y/N IJUB-OE37683-A-16 01/01/2017 01/01/2018 1,000,000 B ANY PROPRIETOR/PARTNER/EXECUTIVE [] E.L EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A IJUB-OE37683-A-17 01/01/2017 01/01/2018 (Mandatory in NH) E.L DISEASE -EA EMPLOYE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L DISEASE -POLICY LIMIT $ 1,000,000 A PROFESSIONAL LIABILITY PHSD1191115 12/09/2016 12/09/2017 AGGREGATE $2,000,000 OCCURRENCE $1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) PER CO "A" BLANKET ADDITIONAL INSURED, PRIMARY & WAIVER OF SUBROGATION ELITE ENDORSEMENT ATTACHED, THE CERTIFICATE HOLDER, THE CITY OF LA QUINTA, ITS OFFICERS, EMPLOYEES,CONTRACTORS, SUBCONTRACTORS AND AGENTS ARE NAMED AS ADDITIONAL INSURED WITH REGARDS TO THE INSUREDS UPCOMING FINANCIAL CONSULTING UPCOMING WORK FOR 2017. JOB DURATION: APRIL 15,2017 TO JUNE 30 ,2017. *10 DAY NOTICE RE: NON-PAYMENT APPLIES. CERTIFICATE HOLDER CANCELLATION CITY OF LA QUINTA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 78-495 CALLE TAMPICO THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. PO BOX 1504 LA QUINTA CA, 92247-1504 AUTHORIZED REPRESENTATIVE ~ ~ I © 1988-2014 ACORD CORPORATION. All rights reserved. ACORD25(2014/01) The ACORD name and logo are registered marks of ACORD ...... TRAVELERSJ ONE TCllil!R SQUARJ! HARTFORD, CT 06183 CHANGE EFFECTIVE DATE: 04-28-17 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY CHANGE DOCUMENT WC 99 99 98 ( A} POLICY NUMBER: (IJtJB-OE37683-A-17) NCCI CO CODE: 13579 INSURER: TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA INSURED'S NAME: CLEARSOORCE FINANCIAL SEE ENDORSEMENT we 99 06 01 This change is issued by the Company or Companies that issued the policy and forms a part of the policy. It is agreed that the policy is amended as follows: An absence of an entry in the premium spaces below means that the premium adjustment, if any, will be made at time of audit. ADDITIONAL PREMIUM $ ADDITIONAL NON-PREMIUM $ RETURN PREMIUM $ RETURN NON-PREMIUM $ The following endorsement charge is added to the schedule: STATE OF CA LOCATION 001 01 WAIVER OF SUBROGATION SEE ENDT we 04 03 06 (01)-006 CLASSIFICATION SPECIFIC WAIVER SEE ENDT WC 04 03 06 (01)-006 CITY OF LA QUINTA CODE PREM. BASIS RATE 0930 38 0.0600 A Premium Bearing Endorsement class is amended as follows: STATE OF CA LOCATION 001 01 CLASSIFICATION SPECIFIC WAIVER SEE ENDT we 04 03 06 (01)-001 CODE PREM. BASIS RATE ESTIMATED PRO RATA PREMIUM 0 ESTIMATED PRO RATA PREMIUM DATE OF ISSUE: 05-10-17 SR CHANGE NO: 002 PAGE 001 OF MORE POL. EFF. DATE: 01-01-17 POL. EXP. DATE: 01-01-18 OFFICE: WALNUT CREEK 418 PRODUCER: FRANK VITALE INS AGENCY CVD78 COUNTERSIGNED AGENT ?fL~1 (9/05) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESSOWNERS POLICY-ELITE ENHANCEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS LIABILITY COVERAGE FORM BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM It is understood and agreed that the following extensions only apply in the event that no other specific coverage for the indicated loss exposures are provided under this policy. If such specific coverage applies, the terms, conditions and limits of that coverage are the sole and exclusive coverage applicable under this policy. Throughout this endorsement the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance. Part 1: Property Coverage Enhancements: The following amendments are a part of the BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM: 1. Increased Glass Limits Section A. Coverage, item 4.b. is replaced by: b. With respect to glass (other than glass building blocks) that is part of the interior of a building or structure, or part of an outdoor sign, we will not pay more than $3,000 for the total of all loss or damage in any one occurrence. This Limitation does not apply to loss or damage by the "specified causes of loss", except vandalism. 2. Increased Fire Department Service Charge Section A. Coverage, item 5.c. is replaced by: c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $3,000 for your liability for fire department service charges: ( 1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. 3. Reduced Waiting Period and Longer Duration for Civil Authority Coverage Section A. Coverage, item 5.i. is replaced by: i. Civil Authority We will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin 48 hours after the time of that action and will apply for a period of up to three consecutive weeks after coverage begins. Page 1 of 5 Includes copyright material of the Insurance Services Office, Inc. used with its permission. Pl-BP-001 (9/05) The coverage for necessary Extra Expense will begin immediately after the time of that action and ends: (1) 5 consecutive weeks after the time of that action; or (2) When your Business Income coverage ends; whichever is later. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority Additional Coverage. The Civil Authority Additional Coverage is not subject to the Limits of Insurance. 4. Broadened Personal Property Coverage Section A. Coverage, item 1.b., the first paragraph is replaced by: b. Personal Property located in or on the buildings at the described premises or in the open (or in a vehicle) within 1,250 feet of the described premises, including: 5. Increased limits for Personal Property Off Premises Section A. Coverage, item 6.b. is replaced by: b. Personal Property Off Premises You may extend the insurance that applies to Business Personal Property to apply to covered Business Personal Property, other than "money" and "securities", "valuable papers and records" or accounts receivable, while it is in the course of transit or temporarily at a premises you do not own, lease or operate. The most we will pay for loss or damage under this Extension is $10,000. 6. Increased limits for Outdoor Property Section A. Coverage, item 6.c. is replaced by: c. Outdoor Property You may extend the insurance provided by this policy to apply to your outdoor fences, radio and television antennas (including satellite dishes), signs (other than signs attached to buildings), trees, shrubs and plants, including debris removal expense, caused by or resulting from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; or (5) Aircraft. The most we will pay for loss or damage under this Extension is $5,000, but not more than $1,000 for any one tree, shrub or plant. 7. Fire Extinguisher Recharge Section A. Coverage, item 6. Coverage Extensions will also include: You may extend the insurance provided by this coverage form to cover expenses you incur to recharge portable fire extinguishers, dry chemical, carbon dioxide, or liquid automatic fire extinguishing systems and the cost of resetting automatic fuel shut-off connections, if any of the above are discharged to fight a fire or are discharged due to a mechanical malfunction. The most we will pay for loss or damage under this extension is $3,000. Page 2 of 5 Includes copyright material of the Insurance Services Office, Inc. used with its permission. Pl-BP-001 (9/05) No deductible shall apply to this coverage. 8. Business Income Enhancement Section A. Coverage, item 5. Additional Coverages, section f. Business Income is amended as follows: The reference to "60 days" as the limitation on payroll expenses is replaced by "365 days." 9. Lock Replacement Section A. Coverage, item 6. Coverage Extensions will also include: You may extend the insurance provided by this coverage form to cover necessary expense to repair to replace exterior or interior door locks of a covered building: a) If your door keys are stolen in a covered theft loss; or b) When your property is damaged and your door keys are stolen by the burglars. The most we will pay under this extension of $250 for any one occurrence. 10. Removal of Sewer Backup Exclusion Section B. Exclusions, item g(3) is amended to include: Backups of sewers will not be excluded, but the most we will pay for such losses is $500 in the policy period. Part 2: Liability Coverage Enhancements: The following amendments are a part of the BUSINESSOWNERS LIABILITY COVERAGE FORM: 1. Medical Payments If Medical Payments Coverage (Coverage A.2.) is not otherwise excluded from this Coverage Part: The Medical Expense Limit is changed subject to all the terms of Limits Of Insurance (Section D) to the greater of: a. $10,000; or b. The Medical Expense Limit shown in the Declarations of this Coverage Part. 2. Supplementary Payments In the Supplementary Payments -(Coverage A.1.d.): 1. The limit for the cost of bail bonds (item (2)) is changed from $250 to $500; and 2. The limit for loss of earnings (item (4)) is changed from $250 a day to $500 a day. 3. Blanket Additional Insureds Who is An Insured (Section C) is amended to include the following, but only for liability arising out of the negligence of the Named Insured: Each of the following is also an Insured: a. any Contractor, including contracting governmental entities, who hires you as their subcontractor; b. any person or organization who has an ownership interest in you; c. any lessor of leased equipment, who rents equipment to you, but only with respect to liability arising out of the maintenance, operation, or use by you, provided however that this Page 3 of 5 Includes copyright material of the Insurance Services Office, Inc. used with its permission. Pl-BP-001 (9/05) item c. will not apply to (1) any occurrence which takes place after the equipment lease expires; nr (2) "Bodily Injury" or "Property Damage" arising out of the negligence of the lessor or contractor engaged to operate the leased equipment; and d. any owner, mortgagor, lessor, landlord, condominium association or manager of a premises leased by you, but only for "occurrences" that take place while you occupy the premises, provided however that this item d. will not apply to structural alterations, new construction, or demolition operations; and With regard to parties applicable under items a. through d. above, the Insurer and the Named Insured agree to waive rights of recovery, as provided within the policy. Nothing contained in this section C. shall serve to nullify matters excluded under section B. of the policy. 4. Bodily Injury -Mental Anguish The definition of "bodily injury" is changed to read: "Bodily Injury": a. Means bodily injury, sickness or disease sustained by a person, and includes mental anguish resulting from any of these; and b. Except for mental anguish, includes death resulting from the foregoing (item a. above) at any time. 5. Llberalizatlon If we revise this endorsement to provide more coverage without additional premium charge, we will automatically provide the additional coverage to all endorsement holders as of the day the revision is effective in your state. 6. Employee Indemnification Defense Coverage Under SUPPLEMENTARY PAYMENTS-COVERAGES A.1.d., the following is added: (8) We will pay on your behalf defense costs incurred by an "employee" in a criminal proceeding, provided, however that you must have a prior written agreement with such "employee" whereby you agree to indemnify the "employee" for such defense costs, and the agreement includes a provision for repayment of defense costs in the event of an adverse judgment. The most we will pay for any "employee" who is alleged to be directly involved in a criminal proceeding is $2,500 regardless of the number of employees, claims or "suits" brought or persons or organizations making claims or bringing "suits." 7. Amendment of Aggregate Limit SECTION D.4. -Aggregate Limits, item B is replaced by: b. All other injury or damage, including medical expenses, arising from all "occurrences" during the policy period is three times the Liability and Medical Expenses limit. This limitation does not apply to "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of fire or explosion. 8. Amendment to Watercraft Exclusion Part B-Exclusions, item g.(2)(a) is amended by the following: The phrase "less than 26 feet" is replaced by "less than 51 feet." Page 4 of 5 Includes copyright material of the Insurance Services Office, Inc. used with its permission. Pl-BP-001 (9/05) Part 3: Amendment of Conditions: 1. Other provisions of the policy notwithstanding, this policy will be primary for all losses covered herein, and the existence of other insurance will not serve to reduce our obligation. 2. You will have the right to waive our rights of recovery prior to a loss with respect to any party. This must be done in writing to affect our rights. Page 5 of 5 Includes copyright material of the Insurance Services Office, Inc. used with its permission.