2024-25 St. Francis Electric Amendment 1 - On-Call Traffic Signal Repair ServicesMEMORANDUM
CALIFORNIA
DATE: August 7, 2024
TO: Jon McMillen, City Manager
FROM: Carley Escarrega, Administrative Technician
RE: Amendment no. 1 with St. Francis Electric for on-call traffic signal repair services FY 24/25 - updated insurance requirements
Please list the Contracting Party / Vendor Name, 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
City Manager's signing authority provided under the City's Purchasing & Contracting Policy
[Resolution No. 2023-008] for budget expenditures of $50,000 or less.
❑ City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for
temporary employment positions.
❑ Department Director's or Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2023-0081 for budget expenditures of $15,000 and $5,000, respectively, or less.
Procurement Method (one must apply):
❑ Bid ❑ RFP ❑ RFQ ❑ 3 written informal bids
❑ Sole Source ❑✓ Select Source ❑ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate,
❑✓ Agreement payment will be charged to Account No.: 401-0000-60188-2425TM1-CT
Agreement term: Start Date July 1, 2024 End Date June 30, 2025
Amount of Agreement, Amendment, Change Order, etc.: $ 0.00
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual
Amendments or Change Orders!
W1
❑
❑
NOTE:
Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: Oscar MojICa Date: 8/7/2024
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 700 is required pursuant
FPPC regulation 18701(2)
Business License No. LIC -768225 Expires: 9/30/2024
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES
WITH ST. FRANCIS ELECTRIC
This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services
("Agreement") is made and entered into as of the 26th day of July 2024, ("Effective Date")
by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and
St. Francis Electric ("Contracting Party").
RECITALS
WHEREAS, on or about July 1, 2024, the City and Contracting Party entered into
an Agreement to provide On -Call Traffic Signal Repair Services, for a total not to exceed
amount of $125,000.00. The term of the Agreement expires on June 30, 2025 ("Initial
Term"); and
WHEREAS, Exhibit E Insurance Requirements of the Agreement shall be
amended to increase the Commercial General Liability coverage to $5,000,000 per
occurrence, and $5,000,000 general aggregate, and remove the Errors and Omissions
Liability coverage of $1,000,000 per claim and aggregate.
NOW THEREFORE, in consideration of the mutual covenant herein contained, the
parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows:
1. Exhibit E Insurance Requirements is amended to read as listed in attached Exhibit
E, incorporated herewith by this reference.
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA
a California municipal corporation
La
MILLEN, City Manager
Cityof Quinta, California
Dated:O O �Z
ATTEST:
S
MONIKA RADE A, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
oe
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
ST. FRANCIS ELECTRIC
-A, I
GL& SMITH, President
Dated: 0 - 6" Z-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)
$5,000,000 (per occurrence)
$5,000,000 (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
Workers' Compensation
(per statutory requirements)
Must include the following endorsements:
Workers Compensation with Waiver of Subrogation
Workers Compensation Declaration of Sole Proprietor if applicable
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 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.
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
Exhibit E
Page 1 of 5
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.
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.
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. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Agreement.
b. Order Contracting Party to stop work under this Agreement and/or
withhold any payment(s) which become due to Contracting Party hereunder until
Contracting Party demonstrates compliance with the requirements hereof.
C. 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, and agents, using standard ISO endorsement No. CG 2010 with an edition
Exhibit E
Page 2 of 5
prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors
to do likewise.
No liability insurance coverage provided to comply with this Agreement shall
prohibit Contracting Party, or Contracting Party's employees, or agents, from waiving the
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.
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.
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.
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.
All coverage types and limits required are subject to approval, modification 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 consent.
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. In the event such proof of any insurance is not
delivered as required, or in the event such insurance is canceled at any time and no
replacement coverage is provided, City has the right, but not the duty, to obtain any
insurance it deems necessary to protect its interests under this or any other agreement
and to pay the premium. Any premium so paid by City shall be charged to and promptly
paid by Contracting Party or deducted from sums due Contracting Party, at City option.
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.
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.
Exhibit E
Page 3 of 5
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 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,
which may include reduction or elimination of the deductible or self-insured retention,
substitution of other coverage, or other solutions.
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 in substantial
additional cost to the Contracting Party, the City will negotiate additional compensation
proportional to the increased benefit to City.
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.
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.
Contracting Party will renew the required coverage annually as long as City, or its
employees or agents face an exposure from operations of any type pursuant to this
agreement. This obligation applies whether the agreement is canceled or terminated for
any reason. Termination of this obligation is not effective until City executes a written
statement to that effect.
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.
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.
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 given
Exhibit E
Page 4 of 5
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.
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.
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.
Contracting Party agrees to be responsible for ensuring that no contract used by
any party involved in any way 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.
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 5 of 5