REQUEST FOR PROPOSALS FOR THE OPERATION AND MANAGEMENT OF THE SANTA MONICA PIER CAROUSEL

Transcription

1 REQUEST FOR PROPOSALS FOR THE OPERATION AND MANAGEMENT OF THE SANTA MONICA PIER CAROUSEL Proposals Due: 4:00 p.m. Wednesday, July 31, 2013 to: City of Santa Monica Attn: Office of Pier Management 200 Santa Monica Pier Santa Monica, CA

2 INTRODUCTION The City of Santa Monica seeks proposals from interested and qualified contractors to provide services related to the operation and management of the Santa Monica Pier Carousel. Submittals are due by mail or by hand no later than 4:00 p.m. Wednesday, July 31, 2013 to: City of Santa Monica Attn: Office of Pier Management 200 Santa Monica Pier Santa Monica, CA This Request for Proposals (RFP) contains the key questions and informational requirements for respondents to address. Submissions must fully address all items in the contents of submittal section. It is the intent of the RFP process to select an Operator for a two-year management services agreement with three one-year options for renewal based on performance. BACK GROUND The Santa Monica Pier, one of the few remaining and the oldest pleasure pier from California s past is also home to one of the west coast s last seaside Carousel. The Looff Hippodrome, which houses the Carousel, was built in 1916 by amusement developer Charles Looff and is listed on the National Register of Historic Places. The Looff Hippodrome is the principal stylistic and historic element of an ever-changing collection of amusement facilities at the Santa Monica Pier. The Santa Monica Pier Carousel was hand carved in 1922 by Philadelphia Toboggan Company and is an illuminated, three-abreast machine comprised of forty-four handcrafted horses and two chariots. Its original Wurlitzer band organ and several vintage arcade games accompany the Carousel. The Santa Monica Pier Carousel has become one of Southern California's choice event sites a wide variety of events including birthday parties, weddings, holiday celebrations, charity fundraisers, and film and television productions. The Carousel was prominently featured in the classic film "The Sting," starring Paul Newman and Robert Redford. PROJECT DESCRIPTION The City of Santa Monica is requesting proposals from interested and qualified entities to manage, operate, supervise and maintain the Carousel. The Operator will be expected to manage the facility in a manner that provides a high level of access and use by the public, a family orientation, a clean, safe and attractive environment, and excellent customer service. The Operator shall be expected to provide management services and staff during the operating 2

3 hours for the general public as well for private parties, events and commercial filming which occur before and/or after public operating hours in coordination with the Carousel Booking Agent. The City has engaged the services of a facility booker/event coordinator to advertise, promote and manage special events, private parties and commercial filming rentals of the facility. The City has also entered into a concessionaire agreement with a private entity for the operation of a Carousel gift shop. SCOPE OF SERVICES Operator shall provide services related to the operation and maintenance of the Santa Monica Pier Carousel located at 200 Santa Monica Pier including but not limited to: Management Services. Operator shall perform all of the services related to the management, operation and maintenance of the Carousel. Operator shall maintain the facility and operation in a clean, safe and attractive manner in compliance with all governmental codes and regulations; provide daily supervision of the Carousel and ensure compliance with Carousel Ride Rules and Regulations (Exhibit A); provide training to Carousel employees; manage daily personnel schedule; file all necessary payroll taxes; provide accurate account of Carousel ridership through tickets; keep the Carousel clean and free of any safety hazards on the Carousel and up to the wooden rail encircling the Carousel; provide weekly maintenance service of the Carousel mechanism (i.e. oiling); advise City of any possible disrepair or mechanical problems and schedule inspection or repairs as needed; complete repairs of horses, rounding boards and housing as needed (including carving any missing pieces, priming, sanding, painting and clear coating); make the Carousel available for private events until midnight and supply appropriate Carousel staff to operate Carousel at such events; lock and secure Carousel building doors and windows at the close of the business day. Labor. Operator shall provide experienced and trained personnel to staff the Carousel. Operator shall provide a minimum of: Two Employees - Monday, Wednesday, Thursday, Friday Three Employees - Saturday and Sunday Operator s personnel shall provide services in a professional and courteous manner to the public and shall wear some distinctive article of apparel that identifies them as Operator s employees. Hours of Operation. Operator shall be required to keep the Carousel open to the public during the Hours of Operation as set forth in Exhibit B. In addition, the Operator shall make available the Carousel for special events in accordance with the City s special Event s Guidelines until midnight. Any modification to the Hours of Operation shall require the prior written permission of the City, in its sole and complete discretion. Carousel hours are subject to change depending 3

4 on budgetary concerns and usage (Carousel is rented to private parties for events and as a filming location and is closed to the Public during these times). Carousel Fee Collection. Collect fare from the public for the use of the Carousel. Ride-fare is established by City. Deposit of Carousel Revenue. All fees generated from the Carousel shall be the property of the City and the Operator shall be required to deposit such fees with the City Treasury on a weekly basis. Operator shall provide monthly statements to the City, and shall include all of the fees generated from the Carousel operations in such statement. Cooperation for Special Events, Filming and Private Parties. Operator shall cooperate with the City, its employees, operators and agents and the patrons for special events, filming and private parties which may be held at the Carousel at the City s discretion. Insurance. Operator shall maintain a full range of insurance coverage including worker s compensation, all risk property insurance and comprehensive liability coverage of not less than $3,000,000 per occurrence with the City of Santa Monica, the Pier Corporation (SMPC) and their officers and employees as additional insured. Operator shall also indemnify and hold harmless the City of Santa Monica, the SMPC, their officers and employees from all claims or demands associated with the Carousel operations. Contract Terms The City will pay the operator the costs of the minimum operating hours and a reasonable management fee (all to be identified in a proposed monthly amount set out in the RFP response the amount should also be annualized). The City would receive the ride revenues to partially offset the operating costs. It is the intent of the RFP process to select an Operator for a two-year management services agreement with three one-year options for renewal based on performance Reimbursement Expenses to be reimbursed to the Operator: Wages and Payroll taxes incurred in operating the Carousel Pre-approved misc. supplies Pre-approved mechanical repairs not to exceed $1, City will reimburse Operator within 30 days weeks of receiving itemized reimbursement request. 4

5 PROPOSED SCHEDULE: The following represents a target schedule for the RFP process and Management Agreement. It is subject to change. Date July 31, 20134PM August 2013 September 2013 October 2013 Action RFP Response Submittal Deadline Evaluation of RFPs and Interviews of Respondents Recommendations submitted to City Council for Approval Management Agreement Prepared and Signed RESPONSE REQUIREMENTS: Form of Submittal For consideration, please submit two (2) copies of your proposal containing the following elements: Content of the Submittal BACKGROUND AND EXPERIENCE 1. A detailed history and description of company/organization s experience in amusement facility development, maintenance and management, including the specific role and responsibilities. 2. Key individuals in the firm that would provide services at the Santa Monica Pier Carousel. Please include years and type of relevant experience per the above scope of work. Also include a narrative that indicates the management structure, the tenure of management, and ownership of the firm. 3. Describe standards for ensuring a professionally run operation. Please include security and safety procedures. 4. Describe ability to cooperate with the City, its agents and patrons for special events, filming and private parties that may be held at the Carousel at the City s discretion. 5

6 5. Provide at least three (3) amusement and one (1) financial industry related references that have direct and relevant experience with your firm, include addresses and phone numbers. 6. A submittal provided pursuant to this RFP must indicate the firm s commitment to comply with the City s non-discrimination in employment policy. Firms providing professional services to the City of Santa Monica are required to ensure that their personnel policies and practices are carried out without regard to race, color, religion, sex, sexual orientation, national origin, age, or disability. COST PROPOSAL The City will pay the operator the costs of the minimum operating hours and a reasonable management fee. 1. Provide management fee identify proposed monthly amount. The amount should also be annualized. 2. Provide costs associated with minimum operating hours. Estimate shall show hours by person, hourly rate, costs and total. 3. Provide estimate of all reimbursable miscellaneous supply and repair costs which proposer anticipates may be incurred. EVALUATION CRITERIA Thoroughness and completeness of proposal; responsiveness to RFP requirements. The scope, extent, applicability and quality of proponent s experience. Managerial capacity of respondent to accomplish and maintain all aspects of the operation. Quality of professional and financial references. Ability to provide high level of public access and superior customer service. General Conditions Of The Invitation For Bids 1. It is the responsibility of each business or person submitting a proposal to insure that the proposal arrives at the correct location prior to the time indicated in the RFP. 2. The City of Santa Monica reserves the right to reject any or all proposals or any portion thereof if deemed in the best interest of the City to do so. 6

7 3. The City of Santa Monica reserves the right to waive any and all formalities or irregularities and to reject any item or service not meeting its requirements and to re-negotiate with the successful proposal if necessary. 4. The City of Santa Monica may require information to determine if there is financial stability, qualified professional staff, and business organization, in the City's opinion, to conduct proper business with the City. 5. The cost of preparing responses to this Request for Proposal shall be borne by the respondent and shall not be reimbursed by the City. 6. By submitting a response to this RFP, proponents waive all rights to protest or seek legal remedies whatsoever regarding any aspect of this RFP. The City of Santa Monica reserves the right to select any number of finalists to negotiate with or none at all and may terminate any negotiation process at any time at its own discretion. All decisions regarding the Santa Monica Pier Carousel facility and any RFP shall be solely at the discretion of the City of Santa Monica. The submission of an RFP does not bind the City of Santa Monica to any action or to any party. Submissions do not create or assume any relationship, agency or obligation by the City of Santa Monica, its officers or employees Questions regarding this RFP may be directed to: Elana Buegoff Elana.Buegoff@smgov.net T: (310) Please submit your qualification proposal by hand or by mail no later than 4:00 p.m. Wednesday, July 31, 2013 to: City of Santa Monica Attn: Office of Pier Management 200 Santa Monica Pier Santa Monica, CA

8 Exhibit A Carousel Ride Rules and Regulations At least two Carousel operators must be present at all times when the Carousel is in motion. At least two operators must be present during any event in the building including filming. Only authorized operators may run the Carousel machine and the band organ. Operators and/or Santa Monica Police Department have the authority to require anyone on the machine or in the building to cease any activity and/or vacate the building, if his or her continued presence is deemed inappropriate or unsafe or a threat to public safety. Public disturbances, littering, obscene acts or language, alterations to the Pier or the Carousel building, radios, roller skates, smoking, large or heavy objects on either the machine platform or horses, objects hanging from the horses, platform or building or interfere with the performance of the operators in any way, food and drinks, pets are all expressly forbidden, and will result in an individual s or party s expulsion from the building by Carousel operator or Santa Monica Police Department. Number of riders per horse on the outside and middle rows: 1 adult or 1 or 2 children. Number of riders per horse on inside row: 1 adult or 1 child only. Adults may double up with an infant or very small child on the outside and middle horses only. Adults standing with children must remain next to the horse the child is on. Riding backwards or mounting or dismounting horses or the platform while the machine is in motion is prohibited. Weight limits: 200 lbs per horse (single or combined weight). Riders (single or combined weight) in excess of 200 lbs must ride in the chariots. Riders must be seated at all times during the ride. Standing, swinging and bouncing on the houses or chariots is prohibited. Neither still nor movies intended for commercial use or resale can be taken without a Filming Permit and appropriate insurance. Food and drink are not permitted on the Carousel. Intoxicated patrons will not be permitted on the Carousel. 8

9 Exhibit B Santa Monica Pier Carousel Hours of Operation * JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE Monday Thursday 11AM 7PM Friday Saturday 11AM 9PM Sunday 11AM 7PM 4 th of July 11AM 9PM Closed Tuesday (alternative: open 3PM 7PM) Monday Thursday 11AM 7PM Friday Saturday 11AM 9PM Sunday 11AM to 7PM Closed Tuesday (alternative: open 3PM 7PM) Monday Thursday 11AM 5PM Closed Tuesday and Wednesday Monday Thursday 11AM 5PM Friday Sunday and Labor Day 11AM 7PM Closed Tuesday and Wednesday Monday Thursday 11AM 5PM Thanksgiving Day 11AM 7PM Closed Tuesday and Wednesday (Carousel open Wednesday before Thanksgiving) Monday Thursday 11AM 5PM Christmas Day 11AM 7PM Closed Tuesday and Wednesday (Carousel open on Wednesday following Christmas) Monday Thursday 11AM 5PM New Years Day 11AM 9PM Closed Tuesday and Wednesday Monday Thursday 11AM 5PM Closed Tuesday and Wednesday Monday Thursday 11AM 5PM Closed Tuesday and Wednesday first and second week Closed Tuesday third and fourth week Monday Thursday 11AM 7PM Closed Tuesday Monday Thursday 11AM 5PM Memorial Day 11AM 7 PM Closed Tuesday (Carousel open on Tuesday following Memorial Day) First and Second week: Monday Thursday 11AM 5PM Third and Fourth week: Monday- Thursday 11AM 7PM Closed Tuesday * Operating Hours Subject to Change FY 2013/14 9

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14 : ; < = > A = : = B < C D A A > ; E : F D > : ; F F ; H I B I E J G = F H I > = G : ; : K = > I : C ; L G D E : D? ; E I > D I E = M > = G G ; L N O P Q R S S T U V W X Y Z [ \ ] ^ _ Y ^ ` [ _ X a ^ ` b _ X a X c ^ d W [ e V W U ^ c Y V f g h i j k l X m X _ n o ^ n V p f e X _ ^ _ a V q l o p r V s Y ^ t d X s U V s ^ ` X _ X u b u o ^ n V [ \ v \ [ f a V f Y ^ X _ V u c d [ Z V V s [ \ a [ _ Y f ^ a Y [ f s c f [ m X e X _ n s V f m X a V s Y [ Y U V W X Y Z w U V f V s V f m X a V s V x a V V e y j g k z { { ^ _ e f V b X f V s Y U ^ Y a [ _ Y f ^ a Y [ f s ^ d s [ c f [ m X e V Y U V s ^ u V U V ^ d Y U a ^ f V ^ _ e [ Y U V f t V _ V \ X Y s Y [ V u c d [ Z V V s } s ^ u V s V x s c [ b s V s ^ _ e e [ u V s Y X a c ^ f Y _ V f s ^ s ^ f V c f [ m X e V e Y [ [ Y U V f V u c d [ Z V V s } s c [ b s V s h ~ _ V u c d [ Z V V a [ m V f V e t Z Y U V l o p X s ^ _ Z c V f s [ _ w U [ e [ V s _ [ Y ^ a Y b ^ d d Z w [ f ^ s ^ u ^ _ ^ n V f k s b c V f m X s [ f k [ f a [ _ \ X e V _ Y X ^ d V u c d [ Z V V k ^ _ e w U [ X s _ [ Y f V b X f V e Y [ c [ s s V s s ^ _ [ a a b c ^ Y X [ _ ^ d d X a V _ s V h W [ _ Y f ^ a Y [ f s w X Y U a [ d d V a Y X m V t ^ f n ^ X _ X _ n ^ n f V V u V _ Y s a [ m V f X _ n Y U [ s V V u c d [ Z V V s ^ s s X n _ V e Y [ a [ _ Y f ^ a Y ^ f V V x V u c Y \ f [ u Y U V w ^ n V f V b X f V u V _ Y s [ \ Y U V l X m X _ n o ^ n V p f e X _ ^ _ a V [ _ d Z X \ Y U V w ^ X m V f X s V x c d X a X Y d Z s V Y \ [ f Y U X _ s b a U ^ n f V V u V _ Y X _ a d V ^ f ^ _ e b _ ^ u t X n b [ b s Y V f u s h d V ^ s V c f V c ^ f V Y U V \ [ d d [ w X _ n a V f Y X \ X a ^ Y X [ _ X \ Z [ b ^ f V ^ a [ _ Y f ^ a Y [ f V _ n ^ n X _ n X _ ^ a [ _ Y f ^ a Y \ [ f s V f m X a V s w X Y U Y U V W X Y Z [ \ ] ^ _ Y ^ ` [ _ X a ^ X _ V x a V s s [ \ y j g k z { { h [ b f s X n _ ^ Y b f V [ _ Y U X s a V f Y X \ X a ^ Y X [ _ n f ^ _ Y s Y U V W X Y Z c V f u X s s X [ _ Y [ f V m X V w ^ _ Z ^ _ e ^ d d c ^ Z f [ d d t [ [ s ^ _ e f V a [ f e s ^ _ e ^ _ Z a [ u c ^ _ Z e [ a b u V _ Y s c V f Y ^ X _ X _ n Y [ Y U V t V _ V \ X Y s [ \ \ V f V e Y [ V u c d [ Z V V s Y [ ^ s s b f V Z [ b f a [ u c d X ^ _ a V w X Y U Y U V l o p e b f X _ n Y U V Y V f u [ \ Y U V a [ _ Y f ^ a Y h d V ^ s V e X f V a Y ^ _ Z b V s Y X [ _ s ^ _ e s V _ e Y U V a [ u c d V Y V e k s X n _ V e W V f Y X \ X a ^ Y X [ _ Y [ W X Y Z [ \ ] ^ _ Y ^ ` [ _ X a ^ ƒ X _ ^ _ a V V c ^ f Y u V _ Y ~ Y Y V _ Y X [ _ l X m X _ n o ^ n V W [ u c d X ^ _ a V ] V a Y X [ _ g Y U ] Y f V V Y k ] b X Y V z j { ] ^ _ Y ^ ` [ _ X a ^ k W ~ { g { [ b a ^ _ ^ d s [ a [ _ Y ^ a Y s Y ^ \ \ f V n ^ f e X _ n d X m X _ n w ^ n V [ f e X _ ^ _ a V b V s Y X [ _ s t Z V ˆ u ^ X d ^ Y \ X _ ^ _ a V h u ^ X d t [ x s u n [ m h _ V Y [ f t Z c U [ _ V Š { ˆ g j ˆ z h! "! # $ % & ' % ( ) * * + ', ' -. ' ' /

15 ' Ž š œ ž Ÿ Ÿ ž Ÿ ª «ª ± «² ³ ª µ ³ ª µ µ ª ± ¹ µ ª º ² ª» ³ ³ ª ³ ¼ ª» ½ ¾ À Á Â Â Ã Ä Å Ä Ã Æ Ã Ç È É Ê Ë Ì Í Î Ÿ Ï Ð Ñ Î Ð œ Ò Ó Ô Õ Ö Ø Ù Ú Ô Û Ü Ø Ô Ä Ý Þ ß à á Ø Ô Ô Ù Ô Õ á â Ö ã Ö Ú ä å Ü ä á Ù Û æ Ö Ú Ü Ú Ø á ç Ô Õ Ö Ø Ù Ú Ô Û Ü Ø Ô Ä Ý Å è Þ ß à á Ø Ô Ô Ù Ô Õ á â Ö ã Ö Ú ä å Ü ä á Ù Û æ Ö Ú Ü Ú Ø á ç +! - é. ê ë ì.. ë í í í í í í í í í í í í í í í í í í í í í í í í ' í í í í í í í í ê ê ê í í í í í í í í # î. ï. ê ð ñ +! - +! -. +! -.. ë î +! -. ð ñ ñ. ( ë ò ó ë.. ê é ê +! -. ê ô ì ê ë ê +! -.. +! -.. ê ë # ê +! - ë. ë î ê ð ë õ ö ø ù ú û Ú ü ý ú þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ Ô ù ú þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ø ü ù ö ú þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ æ ü ù ú þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ Ø ø ù ö ü ù ö þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ß û Ú ý ú ö þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ú ö ú æ ú ö ù ø þ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ' & / Œ

16 Contractor/Services Insurance Requirements (Not for Public Works) Contractor s Insurance Prior to commencing work, the Contractor shall procure and maintain at Contractor s own cost and expense for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work or services hereunder by the Contractor, his agents, representatives, employees, or subcontractors. The cost of such insurance shall be included in Contractor s bid. Without in any way affecting the indemnity provided, the Contractor shall secure before commencement of the work and throughout the contract the following types and amounts of insurance: Minimum Limits of Insurance Contractor shall obtain insurance of the types and in the amounts described below: 1) Commercial General Liability Insurance Contractor shall maintain commercial general liability (CGL) with a limit of not less than $1,000,000 each occurrence/$2,000,000 annual aggregate. 2) Business Auto Liability Insurance Contractor shall maintain business auto liability with a limit of not less than $1,000,000 each accident. 3) Workers Compensation and Employer s Liability Insurance Contractor shall maintain workers compensation insurance as required by the State of California and Employer s Liability Insurance in the amount of $1,000,000 per accident for bodily injury or disease. Minimum Scope of Insurance 1) CGL insurance shall be written on Insurance Services Office form CG (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury liability assumed under an insured contract (including the tort liability of another assumed in a business contract), and explosion, collapse and underground hazards. 2) Business Auto Insurance shall cover liability arising out of any auto (including owned, hired, and non-owned autos). Coverage shall be written on Insurance Services Office form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage equivalent to that provided in the 1990 and later editions of CA

17 Deductibles and Self-Insured Retentions Any deductibles or self -insured retentions must be declared to and approved by the City of Santa Monica. At the option of the City of Santa Monica, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City of Santa Monica, its officers, officials, employees, or volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City of Santa Monica guaranteeing payment of losses and related investigation, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) City of Santa Monica, its officers, officials, employees, and volunteers are to be covered as additional insured s with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. Under the CGL policy, using the Insurance Services Office additional insured endorsement form CG or a substitute providing equivalent coverage, and under the commercial umbrella, if any. City and other additional insured s mentioned in this paragraph shall not, by reason of their inclusion as additional insured s, become liable for any payment of premiums to carriers for such coverage. 2) For any claims related to this project, the Contractor s insurance coverage shall be primary as respects the City of Santa Monica, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees, or volunteers shall be excess of the Contractor s insurance and shall not contribute with it. 3) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under subdivision (b) of Section 2782 of the Civil Code. Workers Compensation and Employer s Liability The insurer shall agree to waive all rights of subrogation against the City of Santa Monica, its officers, officials, employees, and volunteers for losses arising from activities and operations of Contractor in the performance of services under the contract. All Coverages 1) Each insurance required by this clause shall be endorsed to state that coverage shall not be canceled except after thirty (30) days prior written notice by certified mail,

18 return receipt requested, has been given to the City as set forth in the notice requirement of this Agreement. 2) If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Contract, the same shall be deemed a material breach of contract. City, at its sole option, may terminate this Contract and obtain damages from the Contractor resulting from said breach. Alternatively, City may purchase such coverage (but has no special obligation to do so), and without further notice to the Contractor, City may deduct from sums due to the Contractor any premium costs advanced by the City for such insurance. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best s rating of no less than A:6 unless otherwise approved by the City s Risk Manager. Verification of Coverage Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements effecting coverage required by this section. The certificates and endorsements for each policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The certificates and endorsements should be on forms provided by the City of Santa Monica or on other than the City of Santa Monica s forms, provided those forms and endorsements conform to the requirements. All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. Subcontractors Contractor shall include all subcontractors as insured's under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage's for subcontractors shall be subject to all of the requirements stated herein.