2023-26 HR Green - On-Call Bldg Review & Inspection ServicesMEMORANDUM
DATE: October 20, 2023
TO: Jon McMillen, City Manager
FROM: Tania Flores, Admin Tech
ta Qa�&a
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RE: HR Green for on -call building plan review and inspection services; 2023-2026
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
Approved by City Council on .June 20, 2023; Consent 11
City Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
Department Director's or Manager's signing authority provided under the City's
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
❑_ Bid W-1. RFP F-1 RFQ E_ 3 written informal bids
QSole Source 1:1 Select Source Cooperative Procurement
Reauestina department shall check and attach the items below as auurouriate:
�✓ _ Agreement payment will be charged to Account No.: 101-6003-60118
❑✓J Agreement term: Start Date 07/01/2023 End Date 06/30/2026
1r L Amount of Agreement, Amendment, Change Order, etc.: $ 290,000 per year
REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
❑✓ Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: Current contract on file for PW. Date:
NOTE.
LJ_
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form
required pursuant FPPC regulation 18701(2)
Business License No. LIC-0110405 Expires: 1 /31 /2024
700 is
Requisition for a Purchase Order has been prepared (Agreements over $5,000) REQ-1468
AGREEMENT FOR CONTRACT SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and
entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal
corporation, and HR GREEN PACIFIC, INC., a California "C" Corporation, with a place
of business at 44651 Village Ct, Ste 123, Palm Desert, CA 92260 ("Contracting Party").
The parties hereto agree as follows:
1. SERVICES OF CONTRACTING PARTY.
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Contracting Party shall provide those services related to On -Call
Building Plan Review and Inspection Services as specified in the "Scope of Services"
attached hereto as "Exhibit A" and incorporated herein by this reference (the "Services").
Contracting Party represents that Contracting Party is a provider of professional work
and/or services and Contracting Party is knowledgeable in performing the Services
contemplated herein and, in light of such status and knowledge, Contracting Party
covenants that it shall follow industry standards in performing the Services required
hereunder. For purposes of this Agreement, the phrase "industry standards" shall mean
those standards of practice ordinarily exercised by members of the same profession
currently practicing similar services under similar circumstances at the same time and in
the same general locality.
1.2 Compliance with Law. All Services rendered hereunder shall be provided
in accordance with all applicable ordinances, resolutions, statutes, rules, regulations, and
laws of the City and any Federal, State, or local governmental agency of competent
jurisdiction.
1.3 Wage and Hour Compliance, Contracting Party shall comply with applicable
Federal, State, and local wage and hour laws.
1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified
herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits,
and approvals as may be required by law for the performance of the Services required by
this Agreement, including a City of La Quinta business license. Contracting Party and its
employees, agents, and subcontractors shall, at their sole cost and expense, keep in
effect at all times during the term of this Agreement any licenses, permits, and approvals
that are legally required for the performance of the Services required by this Agreement.
Contracting Party shall have the sole obligation to pay for any fees, assessments, and
taxes, plus applicable penalties and interest, which may be imposed by law and arise
from or are necessary for the performance of the Services required by this Agreement,
and shall indemnify, and hold City, its elected officials, officers, employees, , free and
harmless against any such fees, assessments, taxes, penalties, or interest levied,
assessed, or imposed against City hereunder. Contracting Party shall be responsible for
all subcontractors' compliance with this Section.
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1.5 Familiarity with Work. By executing this Agreement, Contracting Party
represents that (a) it has thoroughly investigated and considered the Services to be
performed, (b) it has investigated the site where the Services are to be performed, if any,
and acquainted itself with the conditions there existing, (c) it has carefully considered how
the Services should be performed, and (d) it understands the facilities, difficulties, and
restrictions attending performance of the Services under this Agreement. Should
Contracting Party discover any latent or unknown conditions materially differing from
those inherent in the Services or as represented by City, Contracting Party shall
immediately inform City of such fact and shall not proceed except at Contracting Party's
risk until written instructions are received from the Contract Officer, or assigned designee
(as defined in Section 4.2 hereof).
1.6 Standard of Care. Contracting Party acknowledges and understands that
the Services contracted for under this Agreement require skills and abilities and that,
consistent with this understanding, Contracting Party's work will be held to an industry
standard of quality. Consistent with Section 1.5 hereinabove, Contracting Party represents
to City that it holds the necessary skills and abilities to satisfy the industry standard of quality
as set forth in this Agreement. Contracting Party shall adopt reasonable methods during
the life of this Agreement to furnish protection to the Services performed by Contracting
Party, and the papers, and other deliverables thereof to prevent losses or damages, and
shall be responsible for all such damages, to persons or property, until acceptance of the
Services by City, except such losses or damages caused by the Contracting Party's own
negligence as may be caused by City's own negligence. The performance of Services by
Contracting Party shall not relieve Contracting Party from any obligation to correct any
incomplete, inaccurate, or defective work at no further cost to City, when such
inaccuracies are due to the negligence of Contracting Party.
1.7 Additional Services. In accordance with the terms and conditions of this
Agreement, Contracting Party shall perform services in addition to those specified in the
Scope of Services ("Additional Services") only when directed to do so by the Contract
Officer, or assigned designee, provided that Contracting Party shall not be required to
perform any Additional Services without compensation. Contracting Party shall not
perform any Additional Services until receiving prior written authorization (in the form of a
written change order if Contracting Party is a contractor performing the Services) from the
Contract Officer, or assigned designee, incorporating therein any adjustment in
(i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said
adjustments are subject to the written approval of Contracting Party. It is expressly
understood by Contracting Party that the provisions of this Section shall not apply to the
Services specifically set forth in the Scope of Services or reasonably contemplated
therein. It is specifically understood and agreed that oral requests and/or approvals of
Additional Services shall be barred and are unenforceable. Failure of Contracting Party
to secure the Contract Officer's, or assigned designee's written authorization for
Additional Services shall constitute a waiver of any and all right to adjustment of the
Contract Sum or time to perform this Agreement, whether by way of compensation,
restitution, quantum meruit, or the like, for Additional Services provided without the
appropriate authorization from the Contract Officer, or assigned designee.
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Compensation for properly authorized Additional Services shall be made in accordance
with Section 2.3 of this Agreement.
1.8 Special Requirements. Additional terms and conditions of this Agreement,
if any, which are made a part hereof are set forth in "Exhibit D" (the "Special
Requirements"), which is incorporated herein by this reference and expressly made a part
hereof. In the event of a conflict between the provisions of the Special Requirements and
any other provisions of this Agreement, the provisions of the Special Requirements shall
govern.
2. COMPENSATION.
2.1 Contract Sum. For the Services rendered pursuant to this Agreement,
Contracting Party shall be compensated in accordance with "Exhibit B" (the "Schedule of
Compensation") in a total amount not to exceed Two Hundred Ninety Thousand Dollars
($290,000.00) per year for the life of the Agreement, encompassing the Initial and
any Extended Terms (the "Contract Sum"), except as provided in Section 1.7. The
method of compensation set forth in the Schedule of Compensation may include a lump
sum payment upon completion, payment in accordance with the percentage of completion
of the Services, payment for time and materials based upon Contracting Party's rate
schedule, but not exceeding the Contract Sum, or such other reasonable methods as may
be specified in the Schedule of Compensation. The Contract Sum shall include the
attendance of Contracting Party at all project meetings reasonably deemed necessary by
City; Contracting Party shall not be entitled to any additional compensation for attending
said meetings. Compensation may include reimbursement for actual and necessary
expenditures for reproduction costs, transportation expense, telephone expense, and
similar costs and expenses when and if specified in the Schedule of Compensation.
Regardless of the method of compensation set forth in the Schedule of Compensation,
Contracting Party's overall compensation shall not exceed the Contract Sum, except as
provided in Section 1.7 of this Agreement.
2.2 Method of Billing & Payment. Any month in which Contracting Party wishes
to receive payment, Contracting Party shall submit to City no later than the tenth
(10th) working day of such month, in the form approved by City's Finance Director, an
invoice for Services rendered prior to the date of the invoice. Such invoice shall
(1) describe in detail the Services provided, including time and materials, and (2) specify
each staff member who has provided Services and the number of hours assigned to each
such staff member. Such invoice shall contain a certification by a principal member of
Contracting Party specifying that the payment requested is for Services performed in
accordance with the terms of this Agreement. Upon approval in writing by the Contract
Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will
pay Contracting Party for all items stated thereon which are approved by City pursuant to
this Agreement no later than thirty (30) days after invoices are received by the City's
Finance Department.
2.3 Compensation for Additional Services. Additional Services approved in
advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this
agreement shall be paid for in an amount agreed to in writing by both City and Contracting
Party in advance of the Additional Services being rendered by Contracting Party. Any
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compensation for Additional Services amounting to five percent (5%) or less of the
Contract Sum may be approved by the Contract Officer, or assigned designee. Any
greater amount of compensation for Additional Services must be approved by the La
Quinta City Council, the City Manager, or Department Director, depending upon City laws,
regulations, rules and procedures concerning public contracting. Under no circumstances
shall Contracting Party receive compensation for any Additional Services unless prior
written approval for the Additional Services is obtained from the Contract Officer, or
assigned designee, pursuant to Section 1.7 of this Agreement.
3. PERFORMANCE SCHEDULE.
3.1 Time of Performance. Contracting party shall perform its services diligently
and as expeditiously as is consistent with professional standard of care.
3.2 Schedule of Performance. All Services rendered pursuant to this
Agreement shall be performed diligently and within the time period established in "Exhibit
C" (the "Schedule of Performance"). Extensions to the time period specified in the
Schedule of Performance may be approved in writing by the Contract Officer, or assigned
designee.
3.3 Force Maieure. The time period specified in the Schedule of Performance
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 Contracting Party, 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 Contracting Party shall within ten (10) days of the
commencement of such delay notify the Contract Officer, or assigned designee, in writing
of the causes of the delay. The Contract Officer, or assigned designee, 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 the Contract Officer's judgment such delay is
justified, and the Contract Officer's determination, or assigned designee, shall be final
and conclusive upon the parties to this Agreement. Extensions to time period in the
Schedule of Performance which are determined by the Contract Officer, or assigned
designee, to be justified pursuant to this Section shall not entitle the Contracting Party to
additional compensation in excess of the Contract Sum.
3.4 Term. Unless earlier terminated in accordance with the provisions in Article
8.0 of this Agreement, the term of this agreement shall commence on July 1, 2023,
and terminate on June 30, 2026 ("Initial Term"). This Agreement may be extended for
one additional two (2) year term upon mutual agreement by both parties ("Extended
Term"), and executed in writing.
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4. COORDINATION OF WORK.
4.1 Representative of Contracting Party. The following principals of Contracting
Party ("Principals") are hereby designated as being the principals and representatives of
Contracting Party authorized to act in its behalf with respect to the Services specified
herein and make all decisions in connection therewith:
(a) Tim Jonasson, PE
44651 Village Ct, Ste 123
Palm Desert, CA 92260
Office (760) 262-4317
Email tionasson(a)hrgreen.com
(b) George Wentz, PE
44651 Village Ct, Ste 123
Palm Desert, CA 92260
Office (760) 262-4317
Email gwentz(a)hrgreen.com
The foregoing Principals shall be responsible during the term of this Agreement for
directing all activities of Contracting Party and devoting sufficient time to personally
supervise the Services hereunder. For purposes of this Agreement, the foregoing
Principals may not be changed by Contracting Party and no other personnel may be
assigned to perform the Services required hereunder without the express City's prior
review.
4.2 Contract Officer. The "Contract Officer", otherwise known as AJ Ortega,
the City Building Official, or assigned designee may be designated in writing by the
City Manager of the City. It shall be Contracting Party's responsibility to assure that the
Contract Officer, or assigned designee, is kept informed of the progress of the
performance of the Services, and Contracting Party shall refer any decisions, that must
be made by City to the Contract Officer, or assigned designee. Unless otherwise specified
herein, any approval of City required hereunder shall mean the approval of the Contract
Officer, or assigned designee. The Contract Officer, or assigned designee, shall have
authority to sign all documents on behalf of City required hereunder to carry out the terms
of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment.. Except as set forth in
this Agreement, Contracting Party shall not contract or subcontract with any other entity
to perform in whole or in part the Services required hereunder without the express written
approval of City. In addition, neither this Agreement nor any interest herein may be
transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by
operation of law, without the prior written approval of City. Transfers restricted hereunder
shall include the transfer to any person or group of persons acting in concert of more than
twenty five percent (25%) of the present ownership and/or control of Contracting Party,
taking all transfers into account on a cumulative basis. Any attempted or purported
assignment or contracting or subcontracting by Contracting Party without City's express
written approval shall be null, void, and of no effect. No approved transfer shall release
Contracting Party of any liability hereunder without the express consent of City.
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4.4 Independent Contractor. Neither City nor any of its employees shall have
any control over the manner, mode, or means by which Contracting Party, its agents, or
its employees, perform the Services required herein, except as otherwise set forth herein.
City shall have no voice in the selection, discharge, supervision, or control of Contracting
Party's employees, servants, representatives, or agents, or in fixing their number or hours
of service. Contracting Party shall perform all Services required herein as an independent
contractor of City and shall remain at all times as to City a wholly independent contractor
with only such obligations as are consistent with that role. Contracting Party shall not at
any time or in any manner represent that it or any of its agents or employees are agents
or employees of City. City shall not in any way or for any purpose become or be deemed
to be a partner of Contracting Party in its business or otherwise or a joint venture or a
member of any joint enterprise with Contracting Party. Contracting Party shall have no
power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall
not at any time or in any manner represent that it or any of its agents or employees are
agents or employees of City. Except for the Contract Sum paid to Contracting Party as
provided in this Agreement, City shall not pay salaries, wages, or other compensation to
Contracting Party for performing the Services hereunder for City. City shall not be liable
for compensation or indemnification to Contracting Party for injury or sickness under
Worker's Compensation law arising out of performing the Services hereunder.
Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance
to the contrary, Contracting Party and any of its employees, agents, and subcontractors
providing services under this Agreement shall not qualify for or become entitled to any
compensation, benefit, or any incident of employment by City, including but not limited to
eligibility to enroll in the California Public Employees Retirement System (TERS") as an
employee of City and entitlement to any contribution to be paid by City for employer
contributions and/or employee contributions for PERS benefits. Contracting Party agrees
to pay all required taxes on amounts paid to Contracting Party under this Agreement, and
to indemnify and hold City harmless from any and all taxes, assessments, penalties, and
interest asserted against City by reason of the independent contractor relationship
created by this Agreement. Contracting Party shall fully comply with the workers'
compensation laws regarding Contracting Party and Contracting Party's employees.
Contracting Party further agrees to indemnify and hold City harmless from any failure of
Contracting Party to comply with applicable workers' compensation laws. City shall have
the right to offset against the amount of any payment due to Contracting Party under this
Agreement any amount due to City from Contracting Party as a result of Contracting
Party's failure to promptly pay to City any reimbursement or indemnification arising under
this Section.
4.5 Identity of Persons Performing Work. Contracting Party represents that it
employs or will employ at its own expense all personnel required for the performance of
any and all of the Services set forth herein. Contracting Party represents that the Services
required herein will be performed by Contracting Party or under its direct supervision, and
that all personnel engaged in such work shall be fully qualified and shall be authorized and
permitted under applicable State and local law to perform such tasks and services.
4.6 City Cooperation. City shall provide Contracting Party with any plans,
publications, reports, statistics, records, or other data or information pertinent to the
Services to be performed hereunder which are reasonably available to Contracting Party
only from or through action by City. Contracting Party may reasonably rely on the
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accuracy of information furnished by City.
5. INSURANCE.
5.1 Insurance. Prior to the beginning of any Services under this Agreement and
throughout the duration of the term of this Agreement, Contracting Party shall procure
and maintain, at its sole cost and expense, and submit concurrently with its execution of
this Agreement, policies of insurance as set forth in "Exhibit E" (the "Insurance
Requirements") which is incorporated herein by this reference and expressly made a part
hereof.
5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance
to Agency along with all required endorsements. Certificate of Insurance and
endorsements must be approved by Agency's Risk Manager prior to commencement of
performance.
6. INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law, Contracting Party
shall indemnify, , and hold harmless City and any and all of its officers, employees,
agents, and volunteers as set forth in "Exhibit F" ("Indemnification") which is incorporated
herein by this reference and expressly made a part hereof.
7. RECORDS AND REPORTS.
7.1 Reports. Contracting Party shall periodically prepare and submit to the
Contract Officer, or assigned designee, such reports concerning Contracting Party's
performance of the Services required by this Agreement as the Contract Officer, or
assigned designee, shall require. Contracting Party hereby acknowledges that City is
greatly concerned about the cost of the Services to be performed pursuant to this
Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes
aware of any facts, circumstances, techniques, or events that may or will materially
increase or decrease the cost of the Services contemplated herein or, if Contracting Party
is providing design services, the cost of the project being designed, Contracting Party
shall promptly notify the Contract Officer, or assigned designee, of said fact,
circumstance, technique, or event and the estimated increased or decreased cost related
thereto and, if Contracting Party is providing design services, the estimated increased or
decreased cost estimate for the project being designed.
7.2 Records. Contracting Party shall keep, and require any subcontractors to
keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports
(including but not limited to payroll reports), studies, or other documents relating to the
disbursements charged to City and the Services performed hereunder (the "Books and
Records"), as shall be necessary to perform the Services required by this Agreement and
enable the Contract Officer, or assigned designee, to evaluate the performance of such
Services. Any and all such Books and Records shall be maintained in accordance with
generally accepted accounting principles and shall be complete and detailed. The
Contract Officer, or assigned designee, shall have full and free access to such Books and
Records at all times during normal business hours of City, including the right to inspect,
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copy, audit, and make records and transcripts from such Books and Records. Such Books
and Records shall be maintained for a period of three (3) years following completion of
the Services hereunder, and City shall have access to such Books and Records in the
event any audit is required. In the event of dissolution of Contracting Party's business,
custody of the Books and Records may be given to City, and access shall be provided by
Contracting Party's successor in interest. Under California Government Code Section
8546.7, if the amount of public funds expended under this Agreement exceeds Ten
Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and
audit of the State Auditor, at the request of City or as part of any audit of City, for a period
of three (3) years after final payment under this Agreement.
7.3 Ownership of Documents. All drawings, specifications, maps, designs,
photographs, studies, surveys, data, notes, computer files, reports, records, documents,
and other materials plans, drawings, estimates, test data, survey results, models,
renderings, and other documents or works of authorship fixed in any tangible medium of
expression, including but not limited to, physical drawings, digital renderings, or data
stored digitally, magnetically, or in any other medium prepared or caused to be prepared
by Contracting Party, its employees, subcontractors, and agents in the performance of
this Agreement (the "Documents and Materials") shall be the property of City and shall be
delivered to City upon request of the Contract Officer, or assigned designee, or upon the
expiration or termination of this Agreement, and Contracting Party shall have no claim for
further employment or additional compensation as a result of the exercise by City of its
full rights of ownership use, reuse, or assignment of the Documents and Materials
hereunder. Any use, reuse or assignment of such completed Documents and Materials
for other projects and/or use of uncompleted documents without specific written
authorization by Contracting Party will be at City's sole risk and without liability to
Contracting Party, and Contracting Party's representations shall not extend to such use,
revise, or assignment. Contracting Party may retain copies of such Documents and
Materials for its own use. Contracting Party shall have an unrestricted right to use the
concepts embodied therein. All subcontractors shall provide for assignment to City of
any Documents and Materials prepared by them, and in the event Contracting Party fails
to secure such assignment, Contracting Party shall indemnify City for all damages
resulting therefrom.
7.4 n the event City or any person, firm, or corporation authorized by City reuses
said Documents and Materials without written verification or adaptation by Contracting
Party for the specific purpose intended and causes to be made or makes any changes or
alterations in said Documents and Materials, City hereby releases, discharges, and
exonerates Contracting Party from liability resulting from said change. The provisions of
this clause shall survive the termination or expiration of this Agreement and shall thereafter
remain in full force and effect.
7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive
and perpetual license for City to copy, use, modify, reuse, or sublicense any and all
copyrights, designs, rights of reproduction, and other intellectual property embodied in
the Documents and Materials. Contracting Party shall require all subcontractors, if any,
to agree in writing that City is granted a non-exclusive and perpetual license for the
Documents and Materials the subcontractor prepares under this Agreement. Contracting
Party represents that Contracting Party has the legal right to license any and all of the
Documents and Materials. Contracting Party makes no representation and warranty in
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regard to the Documents and Materials which were prepared by design professionals
other than Contracting Party or provided to Contracting Party by City. City shall not be
limited in any way in its use of the Documents and Materials at any time, provided that
any such use not within the purposes intended by this Agreement shall be at City's sole
risk.
7.6 Release of Documents. The Documents and Materials shall not be released
publicly without the prior written approval of the Contract Officer, or assigned designee,
or as required by law. Contracting Party shall not disclose to any other entity or person
any information regarding the activities of City, except as required by law or as authorized
by City.
7.7 Confidential or Personal Identifying Information. Contracting Party
covenants that all City data, data lists, trade secrets, documents with personal identifying
information, documents that are not public records, draft documents, discussion notes, or
other information, if any, developed or received by Contracting Party or provided for
performance of this Agreement are deemed confidential and shall not be disclosed by
Contracting Party to any person or entity without prior written authorization by City or
unless required by law. City shall grant authorization for disclosure if required by any
lawful administrative or legal proceeding, court order, or similar directive with the force of
law. All City data, data lists, trade secrets, documents with personal identifying
information, documents that are not public records, draft documents, discussions, or other
information shall be returned to City upon the termination or expiration of this Agreement.
Contracting Party's covenant under this section shall survive the termination or expiration
of this Agreement.
8. ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be interpreted, construed, and
governed both as to validity and to performance of the parties in accordance with the laws
of the State of California. Legal actions concerning any dispute, claim, or matter arising
out of or in relation to this Agreement shall be instituted in the Superior Court of the County
of Riverside, State of California, or any other appropriate court in such county,
andContracting Party covenants and agrees to submit to the personal jurisdiction of such
court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by submitting a claim
therefore. The injured party shall continue performing its obligations hereunder so long
as the injuring party commences to cure such default within ten (10) days of service of
such notice and completes the cure of such default within forty-five (45) days after service
of the notice, or such longer period as may be permitted by the Contract Officer, or
assigned designee; provided that if the default is an immediate danger to the health,
safety, or general welfare, City may take such immediate action as City deems warranted.
Compliance with the provisions of this Section shall be a condition precedent to
termination of this Agreement for cause and to any legal action, and such compliance
shall not be a waiver of any party's right to take legal action in the event that the dispute
is not cured, provided that nothing herein shall limit City's right to terminate this
Agreement without cause pursuant to this Article 8.0. During the period of time that
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Contracting Party is in default, City shall hold disputed invoices and shall, when the default
is cured, proceed with payment on the invoices. In the alternative, City may, in its sole
discretion, elect to pay some or all of the outstanding invoices during any period of default.
8.3 Waiver. No delay or omission in the exercise of any right or remedy of a
non -defaulting party on any default shall impair such right or remedy or be construed as
a waiver. City's consent or approval of any act by Contracting Party requiring City's
consent or approval shall not be deemed to waive or render unnecessary City's consent
to or approval of any subsequent act of Contracting Party. Any waiver by either party of
any default must be in writing and shall not be a waiver of any other default concerning
the same or any other provision of this Agreement.
8.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies
of the parties are cumulative and the exercise by either party of one or more of such rights
or remedies shall not preclude the exercise by it, at the same or different times, of any
other rights or remedies for the same default or any other default by the other party.
8.5 Legal Action. In addition to any other rights or remedies, either party may
take legal action, at law or at equity, to cure, correct, or remedy any default, to recover
damages for any default, to compel specific performance of this Agreement, to obtain
declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes
of this Agreement.
8.6 Termination Prior To Expiration of Term. This Section shall govern any
termination of this Agreement, except as specifically provided in the following Section for
termination for cause. City or the Contracting Party reserves the right to terminate this
Agreement at any time, with or without cause, upon thirty (30) days' written notice to.
Upon receipt of any notice of or issuance termination, Contracting Party shall immediately
cease all Services hereunder except such as may be specifically approved by the Contract
Officer, or assigned designee. Contracting Party shall be entitled to compensation for all
Services rendered prior to receipt of the notice or issuance of termination and for any
Services authorized by the Contract Officer, or assigned designee, thereafter in
accordance with the Schedule of Compensation or such as may be approved by the
Contract Officer, or assigned designee, except amounts held as a retention pursuant to
this Agreement.
Termination for Default of Contracting Party. If termination is due to the failure of
Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall
vacate any City -owned property which Contracting Party is permitted to occupy hereunder
and City may, after compliance with the provisions of Section 8.2, take over the Services
and prosecute the same to completion by contract or otherwise.
8.7 Attorneys' Fees. If either party to this Agreement is required to initiate or
defend or made a party to any action or proceeding in any way connected with this
Agreement, the prevailing party in such action or proceeding, in addition to any other relief
which may be granted, whether legal or equitable, shall be entitled to reasonable
attorneys' fees; provided, however, that the attorneys' fees awarded pursuant to this
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Section shall not exceed the hourly rate paid by City for legal services multiplied by the
reasonable number of hours spent by the prevailing party in the conduct of the litigation.
Attorneys' fees shall include attorneys' fees on any appeal, and in addition a party entitled
to attorneys' fees shall be entitled to all other reasonable costs for investigating such
action, taking depositions and discovery, and all other necessary costs the court allows
which are incurred in such litigation. The court may set such fees in the same action or in
a separate action brought for that purpose.
9. CITY OFFICERS AND EMPLOYEES: NONDISCRIMINATION.
9.1 Non -liability of City Officers and Employees. No officer, official, employee,
agent, representative, or volunteer of City shall be personally liable to Contracting Party,
or any successor in interest, in the event or any default or breach by City or for any amount
which may become due to Contracting Party or to its successor, or for breach of any
obligation of the terms of this Agreement.
9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any
officer or principal of it, has or shall acquire any interest, directly or indirectly, which would
conflict in any manner with the interests of City or which would in any way hinder
Contracting Party's performance of the Services under this Agreement. Contracting Party
further covenants that in the performance of this Agreement, no person having any such
interest shall be employed by it as an officer, employee, agent, or subcontractor without
the express written consent of the Contract Officer, or assigned designee. Contracting
Party agrees to avoid conflicts of interest with the interests of City in the performance of
this Agreement.
No officer or employee of City shall have any financial interest, direct or
indirect, in this Agreement nor shall any such officer or employee participate in any
decision relating to this Agreement which effects his financial interest or the financial
interest of any corporation, partnership or association in which he is, directly or indirectly,
interested, in violation of any State statute or regulation. Contracting Party represents that
it has not paid or given and will not pay or give any third party any money or other
consideration for obtaining this Agreement.
9.3 Covenant against Discrimination. Contracting Party covenants that, by and
for itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination against or segregation of, any person or group of
persons on account of any impermissible classification including, but not limited to, race,
color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in
the performance of this Agreement. Contracting Party shall take affirmative action to
ensure that applicants are employed and that employees are treated during employment
without regard to their race, color, creed, religion, sex, marital status, sexual orientation,
national origin, or ancestry.
10. MISCELLANEOUS PROVISIONS.
10.1 Notice. Any notice, demand, request, consent, approval, or communication
either party desires or is required to give the other party or any other person shall be in
writing and either served personally or sent by prepaid, first-class mail to the address set
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forth below. Either party may change its address by notifying the other party of the change
of address in writing. Notice shall be deemed communicated forty-eight (48) hours from
the time of mailing if mailed as provided in this Section.
To City:
CITY OF LA QUINTA
Attention: AJ Ortega,
Building Official
78495 Calle Tampico
La Quinta, CA 92253
To Contracting Party:
HR GREEN
Tim Jonasson, PE — Municipal Advisory
Services Director
44651 Village Ct, Ste 123
Palm Desert, CA 92260
10.2 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of this Agreement or any other rule of
construction which might otherwise apply.Section Headings and Subheadings. The
section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.3 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall constitute one and
the same instrument.
10.4 Integrated Agreement. This Agreement including the exhibits hereto is the
entire, complete, and exclusive expression of the understanding of the parties. It is
understood that there are no oral agreements between the parties hereto affecting this
Agreement and this Agreement supersedes and cancels any and all previous
negotiations, arrangements, agreements, and understandings, if any, between the
parties, and none shall be used to interpret this Agreement.
10.5 Amendment. No amendment to or modification of this Agreement shall be
valid unless made in writing and approved by Contracting Party and by the City Council
of City. The parties agree that this requirement for written modifications cannot be waived
and that any attempted waiver shall be void.
10.6 Severability. In the event that any one or more of the articles, phrases,
sentences, clauses, paragraphs, or sections contained in this Agreement shall be
declared invalid or unenforceable, such invalidity or unenforceability shall not affect any
of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this
Agreement which are hereby declared as severable and shall be interpreted to carry out
the intent of the parties hereunder unless the invalid provision is so material that its
invalidity deprives either party of the basic benefit of their bargain or renders this
Agreement meaningless.
10.7 Unfair Business Practices Claims. In entering into this Agreement,
Contracting Party offers and agrees to assign to City all rights, title, and interest in and to
all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or
under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of
Division 7 of the Business and Professions Code), arising from purchases of goods,
-12-
services, or materials related to this Agreement. This assignment shall be made and
become effective at the time City renders final payment to Contracting Party without
further acknowledgment of the parties.
10.8 No Third -Party Beneficiaries. With the exception of the specific provisions
set forth in this Agreement, there are no intended third -party beneficiaries under this
Agreement and no such other third parties shall have any rights or obligations hereunder.
10.9 Authority. The persons executing this Agreement on behalf of each of the
parties hereto represent and warrant that (i) such party is duly organized and existing,
(ii) they are duly authorized to execute and deliver this Agreement on behalf of said party,
(iii) by so executing this Agreement, such party is formally bound to the provisions of this
Agreement, and (iv) that entering into this Agreement does not violate any provision of
any other Agreement to which said party is bound. This Agreement shall be binding upon
the heirs, executors, administrators, successors, and assigns of the parties.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
stated below.
CITY OF LA QUINTA,
a California Municipal Corporation
cMILLEN, City Manager
= City of La Quinta, California
Dated:. ZD-
ATTEST:
MONIKA RADEV , Cit Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
CONTRACTING PARTY:
By:
Name:Timothy J. Hartnett
Title: vice President
By:
Name:
Title:
-14-
Exhibit A
Scope of Services
1. Services to be Provided:
Plan Review
Consultant, upon request of the City, shall review plans submitted for residential and/or
commercial developments, infrastructure improvements and special projects. The plans
shall be reviewed for conformance with City and other applicable (County, State and
Federal) ordinances and Codes with a strict attention to details. Plan Review services may
include, but are not limited to the following:
• Building plans including architectural, structural, electrical, mechanical, plumbing,
energy, and accessibility plans
• Grading plans including precise grading plans
• Structural calculations and reports
• Energy reports and forms
• Cal Green plans and reports including commissioning reports
• Soils reports including geotechnical updates
• Building construction product testing reports
The tasks of the plan examiner include:
• To check for conformance to:
o California building standards codes
o City standards
o Other agency requirements such as Riverside County environmental
health department and Coachella Valley Water District (CVWD)
• To check general mathematics and design criteria
• Consultant shall input project data related to plan review information into the
permitting software utilized by the City
• In writing, call for redesign of any portion of plans that:
o Does not conform to code requirements o Is not consistent with
calculations
o Will be potentially unsafe to residents and the public
Building Inspection
Consultant upon request of the City shall provide building inspection services of special
projects during the course of the construction to enforce compliance with the conditions of
approval, provisions of the City's building codes and the code requirements set forth on the
approved plans for which a permit was issued. Inspection services may include, but are not
limited to the following:
• In the performance of such duties, Consultant shall observe each project at the
completion of the various stages of construction for compliance with the
appropriate City, State and Federal codes
• Shall document all field conversations connected to the project
Exhibit A
Page 1 of 4
• Produce corrective measures of field conditions to conform to codes and
approved plans
• Attend meetings connected with the inspection of the project
• Consultant shall input project data related to inspection results, permit fees and
construction information into the permitting software utilized by the City
Orientation
Consultant shall meet with City staff to:
a) Acquaint themselves with the City development plan review and or inspection
processes
b) Review consultant's plan review boiler plate correction documents
c) Acquire understanding of key issues that need attention during the plan check
process
d) Establish ongoing operating procedures between City staff and the Consultant for
the on -call services
On -Call Services
a) Report to City Hall to pick up project documents for review when notified by the
City's permitting software
b) Report to City Hall to receive inspection assignments
c) Meet with City staff, upon request by the City, to be briefed on unique aspects of
the proposed project(s)
d) Attend meetings, upon request by the City, connected to plan review and / or field
inspection activities
e) Consultant, upon request by the City, shall perform electronic plan review on the
platform as specified by the City
2. Performance Standards:
Plan Review Time Frames Schedule of Performance (City Mandated Maximum Time
Frames):
1) One Day = 1 Working Day
2) One Week = 5 Working Days
3) Two Week = 10 Working Days
4) Three Week = 15 Working Days
Exhibit A
Page 2 of 4
ADDENDUM TO AGREEMENT
Re: Scope of Services
If the Scope of Services include construction, alteration, demolition, installation,
repair, or maintenance affecting real property or structures or improvements of any kind
appurtenant to real property, the following apply:
1. Prevailing Wage Compliance. If Contracting Party is a contractor
performing public works and maintenance projects, as described in this Section 1.3,
Contracting Party shall comply with applicable Federal, State, and local laws. Contracting
Party is aware of the requirements of California Labor Code Sections 1720, et seq., and
1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq.,
(collectively, the "Prevailing Wage Laws"), and La Quinta Municipal Code Section
3.12.040, which require the payment of prevailing wage rates and the performance of
other requirements on "Public works" and "Maintenance" projects. If the Services are
being performed as part of an applicable "Public works" or "Maintenance" project, as
defined by the Prevailing Wage Laws, and if construction work over twenty- five thousand
dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over
fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1,
2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing
Wage Laws including, but not limited to, requirements related to the maintenance of
payroll records and the employment of apprentices. Pursuant to California Labor Code
Section 1725.5, no contractor or subcontractor may be awarded a contract for public work
on a "Public works" project unless registered with the California Department of Industrial
Relations ("DIR") at the time the contract is awarded. If the Services are being performed
as part of an applicable "Public works" or "Maintenance" project, as defined by the
Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement
by the DIR. Contracting Party will maintain and will require all subcontractors to maintain
valid and current DIR Public Works contractor registration during the term of this
Agreement. Contracting Party shall notify City in writing immediately, and in no case more
than twenty-four (24) hours, after receiving any information that Contracting Party's or any
of its subcontractor's DIR registration status has been suspended, revoked, expired, or
otherwise changed. It is understood that it is the responsibility of Contracting Party to
determine the correct salary scale. Contracting Party shall make copies of the prevailing
rates of per diem wages for each craft, classification, or type of worker needed to execute
the Services available to interested parties upon request, and shall post copies at
Contracting Party's principal place of business and at the project site, if any. The statutory
penalties for failure to pay prevailing wage or to comply with State wage and hour laws
will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00)
per day for each worker who works in excess of the minimum working hours when
Contracting Party does not pay overtime. In accordance with the provisions of Labor
Code Sections 1810 et seq., eight
(8) hours is the legal working day. Contracting Party also shall comply with State law
requirements to maintain payroll records and shall provide for certified records and
inspection of records as required by California Labor Code Section 1770 et seq., including
Section 1776. In addition to the other indemnities provided under this Agreement,
Contracting Party shall indemnify, and hold City,
Exhibit A
Page 3 of 4
its elected officials, officers, employees, free and harmless from any liability arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the
parties that, in connection with performance of the Services, including, without limitation,
any and all "Public works" (as defined by the Prevailing Wage Laws), Contracting Party
shall bear all risks of payment or non-payment of prevailing wages under California law
and/or the implementation of Labor Code Section 1781, as the same may be amended
from time to time, and/or any other similar law. Contracting Party acknowledges and
agrees that it shall be independently responsible for reviewing the applicable laws and
regulations and effectuating compliance with such laws. Contracting Party shall require
the same of all subcontractors.
2. Retention. Payments shall be made in accordance with the provisions of
Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting
Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of
the labor and materials incorporated into the Services under this Agreement during the
month covered by said invoice. The remaining five percent (5%) thereof shall be retained
as performance security to be paid to Contracting Party within sixty (60) days after final
acceptance of the Services by the City Council of City, after Contracting Party has
furnished City with a full release of all undisputed payments under this Agreement, if
required by City. In the event there are any claims specifically excluded by Contracting
Party from the operation of the release, City may retain proceeds (per Public Contract
Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City's
failure to deduct or withhold shall not affect Contracting Party's obligations under the
Agreement.
Exhibit A
Page 4 of 4
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services, provided for in Section 2.3
of this Agreement, the maximum total compensation to be paid to Contracting Party under
this Agreement is not to exceed Two Hundred Ninety Thousand Dollars ($290,000.00)
per year for the life of the Agreement, encompassing the Initial and any Extended
Terms (the "Contract Sum"). The Contract Sum shall be paid to Contracting Party in
installment payments made on a monthly basis and in an amount identified in Contracting
Party's schedule of compensation attached hereto for the work tasks performed and
properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
Initial Term:
"Not to Exceed" Year 1:
$290,000.00
"Not to Exceed" Year 2:
$290,000.00
"Not to Exceed" Year 3:
$290,000.00
Possible Extended Term:
"Not to Exceed" Year 4:
$290,000.00
"Not to Exceed" Year 5:
$290,000.00
Exhibit B
Page 1 of 3
3. Complete Pricing List
HR Green has provided various compensation options to benefit the City during periods when revenues are high and
maintain appropriate consultant staffing levels during low periods of permit activity.
Actual labor hours and staffing levels will fluctuate based on the actual workload or specific staffing levels
established by the City.
Option 1 - Percentage of Fees Collected
Based upon our review of your Fee Schedule, we propose a sliding fee structure to provide Building Safety
Services.
Monthly Fees Collected
< $200,000
$200,000 - 400,000
> $400,000
Our compensation will not exceed fees collected by the City.
Notes / Assumptions
HR Green Compensation
(based on % of fees compensated)
70%
62%
56%
1. Plan review services will include up to a third review for approval of the plans. Additional reviews beyond three
are completed based on using the applicable hourly rates as final negotiated with the City.
2. Compensation from the percentage of fees collected models shown above will include all direct HR Green
employee costs, benefits, and corporate overhead. Directly related vehicle costs are subject to final
contract negotiations with the City.
3. HR Green provides a detailed monthly billing for all services provided. We will work with the City to
assure that the invoices are provided in a format acceptable to the City.
® On -Call Plan Review and Inspection Services, RFP Number: CLOO5192023
PC -
Exhibit B
Page 2 of 3
Option 2 - Hourly Rate Schedule
CLASSIFICATION
HOURLY RATE
Principal -in -Charge / OA/OC Manager
$235 - 300
Project Manager
$180 - 235
Senior Professional Engineer
$210 - 300
Professional Engineer
$165 - 245
Structural Plan Review Engineer
$185 - 245
Building Plan Review Engineer
$130 - 170
Building Plan Reviewer
$105 - 150
CASp-Certified Professional
$135 - 180
Senior Building Inspector
$125 - 160
Building Inspector
$110 - 150
Senior Permit Technician
$ 90 - 130
Permit Technician/Administrator
$ 80 - 115
Professional Reimbursement and Overtime:
The hourly billing rates include the cost of salaries of the HR Green employees, plus sick leave, vacation, holiday and
other fringe benefits. The percentage added to salary costs includes indirect overhead costs and fee (profit). For overtime
all employees classified as "non-exempt" by the U.S. Department of Labor vdll be compensated at 1- 1/2 times salary, as
per state and Federal wage and hour laws. Billing rates will be calculated accordingly for these overtime hours. Should
subconsultants be utilized, they will be approved in advance by the City and will be billed at the applicable classification
rates listed above + 10%.
Direct Expenses:
Reimbursement for direct expenses, as listed below, incurred in connection with the work, will be at cost plus ten ( 10)
percent (unless otherwise negotiated with the City) for items such as:
• Maps, photographs, reproductions, printing, equipment rental and special supplies related to the work.
• Subconsultants and other outside services, if needed.
• Specific telecommunications and delivery charges.
• Special fees, insurance, permits, and licenses applicable to the work.
• Outside computer processing, computation, proprietary programs purchased for the work and other equipment.
Our hourly fees/rates shall remain effective through December 31, 2023 and may be adjusted annually thereafter based
on the CPI for Riverside County, or as negotiated and agreed to by the City.
® On -Call Plan Review and Ins
FIRGroon.v coy of La Ouinta
Services, RFP Number: CLOO5192023
Page
Exhibit B
Page 3 of 3
Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of Services,
Exhibit A of this Agreement, in accordance with the Project Schedule, attached hereto
and incorporated herein by this reference.
HR Green will handle plan reviews through a paperless electronic/digital commenting process. Through our extensive
experience with plan check services and our own in-house progress, our staff shall consistently meet or beat your service
level goals in the performance of our plan check work as laid out below:
Electronic
Plan Review Service Level Commitments
Type of Job
4ur
HIR Green Turn Around Tim reen Turn Around Time
Ist Review JL� Recheck
Residential
New Construction/SFR
Ir IF
7-10 Working Days 3-5 Working Days
Multi -Tenant Dwelling
7-10 Working Days
3-5 Working Days
Addition
2-7 Working Days
2-5 Working Days
Solar/ESS
1-3 Working Days
1-3 Working Days
Remodel
2-7 Working Days
2-5 Working Days
New Construction
7-10 Working Days
based on complexity
5-7 Working Days
Addition
7-10 Working Days
2-5 Working Days
Remodel/TI
7-10 Working Days
2-5 Working Days
Mixed Use
7-10 Working Days
based on complexity
5 7 Working Days
At the conclusion of each development review, our reviewer digitally stamps (signs hard copies) the title sheet of the
redlined document or the cover page on reports with the date, reviewer's initials, and submittal number. The redlines, a
comprehensive comment letter, and checklist are provided to all stakeholders. All documents are turned around on -time
or ahead of schedule. HR Green earnestly seeks to meet or beat your expectations. We are able to meet the most
hard-hitting schedules with a near perfect track record.
PLAN CHECK TURNAROUND NOTES:
1. Turnaround times depend on the complexity of the project.
2. Expedited plan review within yZ time specified above for first review.
3. Our plan review process will provide for an initial plan review, and two additional re -checks under the plan review
fees paid at the time of plan review submittal (three plan review rounds total).
4. Large scale and complex commercial/industrial projects may take up to 20 business days for first review based
upon their complexity. These include, but are not limited to, high rise buildings, multi -story mixed use, and projects
with multiple buildings exceeding 25,000 sf. or larger.
We will work closely with applicants so that projects will not go through useless rounds of corrections or comments.
We pride our ourselves on a work product that can effectively and efficiently deliver the highest quality plan check
while partnering with designers, developers, contractors, and others in order to work through any code deficiencies that
enables a prompt turnaround of approved plans.
Exhibit C
Page 1 of 1
Exhibit D
Special Requirements
NONE
Exhibit D
Page 1 of 1
Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this
Agreement, the following policies shall be maintained and kept in full force and effect
providing insurance with minimum limits as indicated below and issued by insurers with
A.M. Best ratings of no less than A -VI:
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence)
$2,000,000 (general aggregate)
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Auto Liability Additional Insured
Personal Auto Declaration Page if applicable
Errors and Omissions Liability
$1,000,000 (per claim and aggregate)
Workers' Compensation
(per statutory requirements)
Must include the following endorsements:
Workers Compensation with Waiver of Subrogation
Workers Compensation Declaration of Sole Proprietor if applicable
Cyber Liability
$1,000,000 (per claim)
$2,000,000 (general aggregate)
Contracting Party shall procure and maintain, at its cost, and submit
concurrently with its execution of this Agreement, Commercial General Liability insurance
against all claims for injuries against persons or damages to property resulting from
Contracting Party's negligent acts or omissions rising out of or related to Contracting
Party's performance under this Agreement. The insurance policy shall contain a
severability of interest clause providing that the coverage shall be primary for losses
arising out of Contracting Party's performance hereunder and neither City nor its insurers
shall be required to contribute to any such loss. An endorsement evidencing the foregoing
and naming the City and its officers and employees as additional insured (on the
Commercial General Liability policy only) must be submitted concurrently with the
execution of this Agreement and approved by City prior to commencement of the services
hereunder.
Exhibit E
Page 1 of 6
Contracting Party shall carry automobile liability insurance of $1,000,000 per
accident against all claims for injuries against persons or damages to property arising out
of the use of any automobile by Contracting Party, its officers, any person directly or
indirectly employed by Contracting Party, any subcontractor or agent, or anyone for
whose acts any of them may be liable, arising directly or indirectly out of or related to
Contracting Party's performance under this Agreement. If Contracting Party or
Contracting Party's employees will use personal autos in any way on this project,
Contracting Party shall provide evidence of personal auto liability coverage for each such
person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer
or semi -trailer designed for travel on public roads. The automobile insurance policy shall
contain a severability of interest clause providing that coverage shall be primary for losses
arising out of Contracting Party's performance hereunder and neither City nor its insurers
shall be required to contribute to such loss.
Professional Liability or Errors and Omissions Insurance as appropriate shall
be written on a policy form coverage specifically designed to protect against acts, errors
or omissions of the Contracting Party and "Covered Professional Services" as designated
in the policy must specifically include work performed under this agreement. The policy
limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must
"pay on behalf of the insured and must include a provision establishing the insurer's duty
to defend the insured . The policy retroactive date shall be on or before the effective date
of this agreement.
Contracting Party shall carry Workers' Compensation Insurance in accordance
with State Worker's Compensation laws with employer's liability limits no less than
$1,000,000 per accident or disease.
Contracting Party shall procure and maintain Cyber Liability insurance with
limits of $1,000,000 per occurrence/loss which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or
personally identifiable information; including credit monitoring and
regulatory fines arising from such theft, dissemination or use of the
confidential information.
b. Network security liability arising from the unauthorized use of, access to,
or tampering with computer systems.
Exhibit E
Page 2 of 6
If coverage is maintained on a claims -made basis, Contracting Party shall maintain such
coverage for an additional period of three (3) years following termination of the contract.
Contracting Party shall provide written notice to City within ten (10) working
days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the
required polices are reduced; or (3) the deductible or self -insured retention is increased.
In the event any of said policies of insurance are cancelled, Contracting Party shall, prior
to the cancellation date, submit new evidence of insurance in conformance with this
Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies
or certificates evidencing the same shall not be construed as a limitation of Contracting
Party's obligation to indemnify City, its officers, employees, contractors, subcontractors,
or agents.
E.2 Remedies. In addition to any other remedies City may have if Contracting
Party fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, City may, at its sole option:
a. Order Contracting Party to stop work under this Agreement
b. Terminate this Agreement.
Exercise any of the above remedies, however, is an alternative to any other
remedies City may have. The above remedies are not the exclusive remedies for
Contracting Party's failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to which
Contracting Party may be held responsible for payments of damages to persons or
property resulting from Contracting Party's or its subcontractors' performance of work
under this Agreement.
E.3 General Conditions Pertaining to Provisions of Insurance Coverage by
Contracting Party. Contracting Party and City agree to the following with respect to
insurance provided by Contracting Party:
1. Contracting Party agrees to have its insurer endorse the third party general
liability coverage required herein to include as additional insureds City, its officials,
employees, , using standard ISO endorsement No. CG 2010 with an edition. Contracting
Party also agrees to require its subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall
prohibit Contracting Party, or Contracting Party's employees, or agents, from waiving the
Exhibit E
Page 3 of 6
right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights
against City regardless of the applicability of any insurance proceeds, and to require all
contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contracting Party and
available or applicable to this Agreement are intended to apply to the full extent of the
policies. Nothing contained in this Agreement or any other agreement relating to City or
its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these
requirements if they include any limiting endorsement of any kind that has not been first
submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve
to eliminate so-called "third party action over" claims, including any exclusion for bodily
injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to prior review, and
additional requirements by the City, as the need arises. Contracting Party shall not make
any reductions in scope of coverage (e.g. elimination of contractual liability or reduction
of discovery period) that may affect City's protection without City's prior written review.
7. Proof of compliance with these insurance requirements, consisting of
certificates of insurance evidencing all the coverages required and an additional insured
endorsement to Contracting Party's general liability policy, shall be delivered to City at or
prior to the execution of this Agreement.
8. It is acknowledged by the parties of this agreement that all insurance
coverage required to be provided by Contracting Party or any subcontractor, is intended
to apply first and on a primary, non-contributing basis in relation to any other insurance
or self-insurance available to City.
9. Contracting Party agrees to ensure that subcontractors, and any other party
involved with the project that is brought onto or involved in the project by Contracting
Party, provide the same minimum insurance coverage required of Contracting Party.
Contracting Party agrees to monitor and review all such coverage and assumes all
responsibility for ensuring that such coverage is provided in conformity with the
requirements of this section. Contracting Party agrees that upon request, all agreements
with subcontractors and others engaged in the project will be submitted to City for review.
10. Contracting Party agrees not to self -insure or to use any self -insured
retentions or deductibles on any portion of the insurance required herein (with the
Exhibit E
Page 4 of 6
exception of professional liability coverage, if required) and further agrees that it will not
allow any contractor, subcontractor, Architect, Engineer or other entity or person in any
way involved in the performance of work on the project contemplated by this agreement
to self -insure its obligations to City. If Contracting Party's existing coverage includes a
deductible or self -insured retention, the deductible or self -insured retention must be
declared to the City. At that time the City shall review options with the Contracting Party.
11. The City reserves the right at any time during the term of this Agreement to
change the amounts and types of insurance required by giving the Contracting Party
ninety (90) days advance written notice of such change. If such change results can be
secured by the Contracting Party and, in additional cost to the Contracting Party, the City
will negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement will be
deemed to have been executed immediately upon any party hereto taking any steps that
can be deemed to be in furtherance of or towards performance of this Agreement.
13. Contracting Party acknowledges and agrees that any actual or alleged
failure on the part of City to inform Contracting Party of non-compliance with any
insurance requirement in no way imposes any additional obligations on City nor does it
waive any rights hereunder in this or any other regard.
14. Contracting Party will renew the required coverage annually for a period of
(3) years after the completion of the Project. This obligation applies whether the
agreement is canceled or terminated for any reason..
15. Contracting Party shall provide proof that policies of insurance required
herein expiring during the term of this Agreement have been renewed or replaced with
other policies providing at least the same coverage. Proof that such coverage has been
ordered shall be submitted prior to expiration. A coverage binder or letter from
Contracting Party's insurance agent to this effect is acceptable. A certificate of insurance
and an additional insured endorsement is required in these specifications applicable to
the renewing or new coverage must be provided to City within five (5) days of the
expiration of coverages.
16. The provisions of any workers' compensation or similar act will not limit the
obligations of Contracting Party under this agreement. Contracting Party expressly
agrees not to use any statutory immunity defenses under such laws with respect to City,
its employees, officials, and agents.
17. Requirements of specific coverage features, or limits contained in this
section are not intended as limitations on coverage, limits or other requirements nor as a
waiver of any coverage normally provided by any given policy. Specific reference to a
Exhibit E
Page 5 of 6
given coverage feature is for purposes of clarification only as it pertains to a given issue
and is not intended by any party or insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and distinct from
any other provision in this Agreement and are intended by the parties here to be
interpreted as such.
19. The requirements in this Exhibit supersede all other sections and provisions
of this Agreement to the extent that any other section or provision conflicts with or impairs
the provisions of this Exhibit.
20. Contracting Party agrees to be responsible for ensuring that no contract
used Contracting Party with the project reserves the right to charge City or Contracting
Party for the cost of additional insurance coverage required by this agreement. Any such
provisions are to be deleted with reference to City. It is not the intent of City to reimburse
any third party for the cost of complying with these requirements. There shall be no
recourse against City for payment of premiums or other amounts with respect thereto
excepted as noted in Paragraph 11 above.
21. Contracting Party agrees to provide immediate notice to City of any claim
or loss against Contracting Party arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the duty)
to monitor the handling of any such claim or claims if they are likely to involve City.
Exhibit E
Page 6 of 6
Exhibit F
Indemnification
F.1 Indemnity for the Benefit of City.
a. Indemnification for Other Than Professional Liability. Other than in the
performance of professional services and to the full extent permitted by law, Contracting
Party shall indemnify), and hold harmless the Indemnified Parties from and against any
liability (including liability costs of any kind, including, without limitation, court costs,
reasonable attorneys' fees, litigation expenses, and fees of expert consultants or expert
witnesses) incurred in connection therewith and costs of investigation, where the same
are caused by the negligent act, error or omission of the Contracting Party or by any
individual or entity for which Contracting Party is legally liable, including but not limited to
officers, agents, employees, or subcontractors of Contracting Party.
b. Indemnity Provisions for Contracts Related to Construction (Limitation on
Indemnity). Without affecting the rights of City under any provision of this agreement,
Contracting Party shall not be required to indemnify and hold harmless City for liability
attributable to the active negligence of City, provided such active negligence is
determined by agreement between the parties or by the findings of a court of competent
jurisdiction.
C. Indemnification Provision for Design Professionals.
1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a)
hereinabove, the following indemnification provision shall apply to a Contracting Party
who constitutes a "design professional" as the term is defined in paragraph 3 below.
2. Scope of Indemnification. When the law establishes a professional
standard of care for Contracting Party's Services, to the fullest extent permitted by law,
Contracting Party shall indemnify and hold harmless City and any and all of its officials,
employees, ("Indemnified Parties") from and against any and all losses, liabilities,
damages, injury (including, without limitation, injury to or death of an employee of
Contracting Party or of any subcontractor), costs and expenses, including, without
limitation, court costs, reimbursement of attorneys' fees, litigation expenses, and fees of
expert consultants or expert witnesses incurred in connection therewith and costs of
investigation, to the extent same are caused by any negligent or wrongful act, error or
omission of Contracting Party, its officers, agents, employees or subcontractors (or any
entity or individual that Contracting Party shall bear the legal liability thereof) in the
performance of professional services under this agreement. With respect to the design
of public improvements, the Contracting Party shall not be liable for any injuries or
property damage resulting from the reuse of the design at a location other than that
specified in Exhibit A without the written consent of the Contracting Party.
3. Design Professional Defined. As used in this Section F.1(d), the
term "design professional" shall be limited to licensed architects, registered professional
engineers, licensed professional land surveyors and landscape architects, all as defined
under current law, and as may be amended from time to time by Civil Code § 2782.8.
Exhibit F
Page 1 of 2
F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees
to obtain executed indemnity agreements with provisions identical to those set forth herein
this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor
of Contracting Party in the performance of this Agreement. In the event Contracting Party
fails to obtain such indemnity obligations from others as required herein, Contracting Party
agrees to be fully responsible according to the terms of this Exhibit. Failure of City to
monitor compliance with these requirements imposes no additional obligations on City and
will in no way act as a waiver of any rights hereunder. This obligation to indemnify City
as set forth in this Agreement are binding on the successors, assigns or heirs of
Contracting Party and shall survive the termination of this Agreement.
Exhibit F
Page 2 of 2
City of La Quinta
CITY COUNCIL MEETING: June 20, 2023
STAFF REPORT
CONSENT CALENDAR ITEM NO. 11
AGENDA TITLE: APPROVE AGREEMENTS FOR CONTRACT SERVICES WITH
4LEAF, INC, BUREAU VERITAS NORTH AMERICA, INC, HR GREEN PACIFIC, AND
INTERWEST CONSULTING GROUP FOR ON -CALL BUILDING CODE PLAN REVIEW
AND INSPECTION SERVICES
RECOMMENDATION
Approve Agreements for Contract Services with 4LEAF, Inc., Bureau Veritas North
America, Inc, HR Green Pacific, and Interwest Consulting Group for on -call building code
plan review and inspection services; and authorize the City Manager to execute the
agreements.
EXECUTIVE SUMMARY
• The City contracts to provide plan review and inspection services based on workload
and expertise as needed.
The above -named firms are the best qualified to provide these services and were
selected through the competitive Request for Proposal (RFP) process, which was
completed June 9, 2023.
Each agreement would be approved for an amount a not to exceed $290,000 per
year for an initial three-year term, with and optional two-year extended term, which
provides the flexibility to use any of the consultants depending on work demand.
FISCAL IMPACT
All four agreements combined could cost up to $290,000 annually, or $870,000 during
the initial three-year term, and up to $580,000 if the term is extended for two additional
years, for a total not to exceed amount of $1,450,000. Funds are included in the proposed
budget for fiscal year (FY) 2023/24 in the Building Division Contract Services budget (101-
6003-60118) for the annual not to exceed amount.
Initial Term:
Budget
FY 2023/24
$ 290,000
FY 2024/25
$ 290,000
FY 2025/26
$ 290,000
Possible Extended Term:
FY 2026/27
$ 290,000
FY 2027/28
$ 290,000
TOTAL:
$1,450,000
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BACKGROUND/ANALYSIS
In May 2023, the City published a RFP for on -call building plan review and inspection
services and received 12 proposals. Based on qualifications and cost efficiency, four
consultants, 4LEAF, Inc., Bureau Veritas, HR Green Pacific, and Interwest Consulting
Group were selected by the review panel in June 2023. Staff recommends these firms be
retained to ensure services are available.
The City's on -call building plan review and inspection services encompass review of
structural design and calculations, construction and occupancy type, means of egress,
access and egress for persons with disabilities, electrical and plumbing design adequate
lighting, ventilation and energy conservation, and fire/life safety systems. These
consultants provide expertise in these areas.
The contract authority would allow Staff to utilize any of the selected consultants for the
full not to exceed budget of $290,000; the monthly invoices will be tracked to ensure that
the $290,000 annual budget for these services is not exceeded. Staff requests this
flexibility to allow the use of one firm when the other firm cannot respond due to prior
commitments.
ALTERNATIVES
Council may elect not to approve the Agreements.
Prepared by: AJ Ortega, Building Official
Approved by: Danny Castro, Design and Development Director
Attachments: 1. Agreement for Contract Services with 4LEAF
2. Agreement for Contract Services with Bureau Veritas
3. Agreement for Contract Services with HR Green
4. Agreement for Contract Services with Interwest
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