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HomeMy WebLinkAboutC35682 Extension LMA7 907-20CONTRACT NO. C35682 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: April 25, 2019 PREPARED BY: Randy Chavez, Landscape Supervisor REQUEST: Approve Contract No. C35682, Amendment No. 2 to Contract No. C35680 with Kirkpatrick Landscaping Services, Inc., for Landscape Maintenance Area (LMA) No. 7, in the amount of $108,707.64, and include repair work and services at the specified contract amount of $25,000 (Project No. 907-20). Recommendation By Minute Motion: 1. Approve a second, one-year extension for Contract No. C35680 with Kirkpatrick Landscaping Services, Inc., for LMA No. 7 in the amount of $108,707.64; 2. Authorize repair work and services at the specified contract amount of $25,000; and 3. Authorize the City Manager to execute Contract No. C35682, Amendment No. 2 to Contract No. C35680. Funds are available in the respective Landscape and Lighting District accounts. Strateqic Plan The Parks and Recreation Priority 1 Goal is highlighted with this project. The Priority 1 Goal mandates that our park system be maintained in a high -quality state. Backqround Analvsis Contract No. C35680 was awarded to Kirkpatrick Landscaping Services, Inc., by the City Council on April 13, 2017, for a term of one year, with an option for four, one-year extensions. The first extension, which was awarded May 24, 2018, is set to expire on June 30, 2019. The contract includes the monthly maintenance services for Landscape and Lighting Districts throughout the City (map attached for reference). April 25, 2019 — Staff Report Contract No. C35682, Amendment No. 2 to Contract No. C35680 with Kirkpatrick Landscaping for LMA 7 (Project No. 907-20) Page 2 of 2 Kirkpatrick Landscaping has agreed to a second, one-year contract extension commencing July 1, 2019. However, due to the increase of the State's mandated minimum wage and other related costs, they are requesting a three percent (3%) increase of $263.85 per month ($3,166.20 per year) to help offset the additional costs. Based on Kirkpatrick's performance, staff finds the request to be reasonable. The increase will raise the contract amount to $9,058.97 per month or $108,707.64 per year. Repair work and services covers unquantifiable activities necessary for landscape maintenance, which are not part of the landscape maintenance contract. This includes repair and replacement of irrigation equipment; emergency tree work; replacement of trees and shrubs; pest control; and accident and vandalism repair and replacement. Fiscal Analvsis The activity is included within the proposed Fiscal Year 2019-2020 operating budget; therefore, there is no anticipated fiscal impact beyond the contract amount. LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER REVIEW N/A `7' Robert W. Hargreaves Tom Garcia, P.E. DMoore Lauri Aylaian City Attorney Director of Public Works Director of Finance City Manaqer CONTRACTOR: Kirkpatrick Landscaping Services, Inc. 43752 Jackson Street Indio, California 92201 ATTACHMENTS: Contract No. C35682, Second Amendment to Contract No. C35860 Payment and Performance Bonds Contractor's Acceptance Letter Certificate of Insurance Vicinity Map of LMA No. 7 CONTRACT NO. C35682 SECOND AMENDMENT TO CONTRACT NO. C35680 WHEREAS, the City of Palm Desert ("City") and Kirkpatrick Landscaping Services, Inc., ("Contractor"), entered into an agreement, dated April 13, 2017, for Landscape Maintenance Area No. 7 ("Agreement"), the parties wish to amend the Agreement effective July 1, 2019. NOW, THEREFORE, the parties agree as follows: A. Term is amended to add the following paragraph to the end of the existing section, as amended. "The term of this Agreement is extended, and shall include the time period from July 1, 2019, through June 30, 2020." B. The Amount of the contract will increase by the sum of three thousand one hundred sixty-six and 20/100 dollars ($3,166.20) for a total annual contract price of $108,707.64. C. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 25th day of April 2019. CITY OF PALM DESERT A Municipal Corporation Lauri Aylaian, City Manager City of Palm Desert Attest: Rachelle D. Klassen, City Clerk CITY OF PALM DESERT, CALIFORNIA Approved as to Form: Robert W. Hargreaves, ESQ. City Attomey CONSERVE LANDCARE, INC. Contractor Approved as to Content: Tom Garcia, P .E. Director of Public Works CONTRACT NO. C35682 CONTRACTOR NOTARY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } } SS County of Riverside } On , 20 , before me, , a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) CONTRACT NO. C35682 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That whereas the City of Palm Desert has awarded to Kirkpatrick Landscaping Services, Inc., hereinafter designated as the "Principal", a contract for: LANDSCAPE MAINTENANCE AREA NO. 7 PROJECT NO. 907-20 CONTRACT NO. C35682 WHEREAS, said Principal is required under the terms of said contract to furnish a good and sufficient bond for the performance of said contract: NOW THEREFORE, WE, Kirkpatrick Landscaping Services, Inc. the Principal, and as Surety, are held and firmly bound unto the City of Palm Desert hereinafter called the City, in the penal sum of One Hundred Eight Thousand Seven Hundred Seven and 64/100 Dollars ($108,707.64), being 100% of the contract amount in lawful money of the United States of America for the payment of which sum well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force an effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney's fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if the Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by a defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of the Contractor remains. Nothing herein shall limit the City's rights or the Contractor or 1 CONTRACT NO. C35682 Surety's obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Whenever the Contractor shall be, and is declared by the City to be in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City's option: a. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or b. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. C. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages, for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to the Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligation in the event of default by the Contractor. Surety shall not utilize the Contractor in completing the Project nor shall Surety accept a bid from the Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City's objection to the Contractor's further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice to any such change extension of time, alteration or addition to the terms of the Contract Documents or to the Project. 4 CONTRACT NO. C35682 IN WITNESS WHEREOF, identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on this day of , 20 SURETY Kirkpatrick Landscaping Services, Inc. PRINCIPAL BY: BY: (Signature must be notarized) (Signature must be notarized) INSURANCE COMPANY and/or AGENT Name: Address: City/State/Zip Code: Telephone No.: 3 CONTRACT NO. C35682 SURETY ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 4 CONTRACT NO. C35682 PRINCIPAL ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 5 CONTRACT NO. C35682 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (sometimes referred to hereinafter as "City") has awarded to Kirkpatrick Landscaping Services, Inc., (hereinafter designated as the "CONTRACTOR/PRINCIPAL"), an agreement dated April 25, 2019, described as follows: LANDSCAPE MAINTENANCE AREA NO. 7, PROJECT NO. 907-20, CONTRACT NO. C35682 (hereinafter referred to as the "Contract"); and WHEREAS, said CONTRACTOR is required to furnish a bond in connection with said Contract, and pursuant to Section 9100 of the California Civil Code; NOW, THEREFORE, we, Kirkpatrick Landscaping Services, Inc., the undersigned CONTRACTOR, as Principal, and a corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Palm Desert and to any and all persons, companies or corporations entitled to file stop payment notices under Section 9100 of the California Civil Code, in the sum of One Hundred Eight Thousand Seven Hundred Seven and 64/100 Dollars ($108,707.64), said sum being not less than one hundred percent (100%) of the total amount payable by the said City under the terms of the said Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if said CONTRACTOR, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, implements, machinery or power used in, upon, for or about the performance of the Public Work contracted to be done, for any work or labor of any kind, or for bestowing skills or other necessary services thereon, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of said CONTRACTOR and his or its Subcontractors pursuant to Revenue and Taxation Code Section 18663 with respect to such work and labor the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorney's fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in the Civil Code Section 9100 as to give a right of action to such persons or their assigns in any suit brought upon this bond. CONTRACT NO. C35682 It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification, in, to or of any contract plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and the original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that the claimant is a person described in the Civil Code Section 9100, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned, including but not limited to the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20 PRINCIPAUCONTRACTOR: Kirkpatrick Landscaping Services, Inc. (Typed Name of CONTRACTOR) By: (Signature) (Typed Name and Title) (Signature must be notarized) SURETY: (Typed Name of Surety) By: (Signature of Attorney -in -Fact) (Typed Name of Attorney -in -Fact) (Signature must be notarized) The rate of premium on this bond is $ per thousand. The total amount of premium charged: $ (the above must be filled in by corporate surety). IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or �%l CONTRACT NO. C35682 project is financed, in whole or in part, with federal, grant or loan funds, it must also appear on the Treasury Department's most current list (Circular 570 as amended). Any claims under this bond may be addressed to: SuretyAgent or Representative for service of process in California if different than Surety Name: Name: Address: City/State/Zip Code: Address: City/State/Zip Code: Telephone No.: Telephone No.: 3 CONTRACT NO. C35682 SURETY ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 4 CONTRACT NO. C35682 PRINCIPAL ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document." State of California County of On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 5 Serving the Coachella Valley Since 1968 Contractor L1c# 503360 • DIR# 1000008332 FPbno-v II.?nIQ Randy Chavez Landscape Supervisor City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Dear Randy, We wish to take this opportunity to thank you and the City of Palm Desert for engaging our services over the past 19 years. Most recently for areas 4 and 7. We highly value our relationship with the City. At this time, we are compelled to address the minimum wage increase. This is mandated by the State effective January 1, 2020 of $1.00 per hour. The increase of an average of 50 cents per hour throughout the entire year (July 1, 2018 — June 30, 2019), plus burden, i.e. employers taxes, Social Security, Workers Compensation, etc. increases payroll costs by approximately 10.27%. The net result is an increase of 3% to recurring operating costs. The total for area 4 shall go from $105,S41.39 to $108,707.63 annually ($9,058.97 monthly). We are estimating 5,676 hours annually for area 7. At 50 cents per hour, the total is $2,838.00. The burden, i.e. employers taxes, Social Security, Workers Compensation, etc. totals $328.24. We have also attached a list of extra work items that we shall be asking for an increase on as well. If there is a way the City can help us offset this cost it would be greatly appreciated. It would also afford us the opportunity to avoid cutting back on labor to cover this additional expense. Again, it is our goal to continue to be a good value for the City. We feel the intimate business association we have enjoyed over the years can continue to prove mutually beneficial. Sincerely, �f Steve, et Enc. 43-752 Jackson Street, Indio, CA. 92201 - Office: 760.347.6926 - Fax: 760.347.4846 kisCcOklsinc.net • www.kirkpatricklandscaping.com City of Palm Desert LMA 4 and 7 Extra Price Increases July 1, 2019 — June 30, 2020 Additional Laborer: $24.50/hour Additional Irrigator: $31.00/hour Additional Foreman: $32.00/hour Additional Irrigation Tech: $54.25/hour Plant Material Replacement: 1-Gallon Shrub Installed: $12.75/each 5-Gallon Shrub Installed: $27.00/each 15-Gallon Tree Installed: $133.00/each 24"-Box Tree Installed: $340.00/each ACORO KIRKLAN-01 CERTIFICATE OF LIABILITY INSURANCE SGUILLEN DATE (MM/DD/YYYY) 09/04/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License # OC36861 CONTACT NAME__ _ Inland Empire-Alliant Insurance Services, Inc. PHONE 'FAX 735 Carnegie Dr Ste 200 ; (A/C, No, Ext): (909) 886-98fi1 _ _ ir�c, Ne) (909) 886-2013 San Bernardino, CA 92408 rADDR` s INSURER(S) AFFORDING COVERAGE _ _ I _ NAIC ft_ INSURERA:DepoSltorS Insurance Comp�r _ _ i42587 INSURED IINSURER B: Nationwide Mutual Insurance Company �23787 � Kirkpatrick Landscaping INSURERC:AMCO Insurance Company. 19100 Services Inc — - 43-752 North Jackson II` INSURER D_:Oak River Insurance Company-_ _34630 Indio, CA 92201 INSURER E : INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR �ADDL SUER POLICY EFF POLICY EXP TTYPE OF INSURANCE IN�Sn WVD • POLICY NUMBER I (M vY Dmrm LIMITS M X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE I I _ 5 1,000,000 �_ _ CLAIMS -MADE � OCCUR CP4027908982 09/01/2018 09/01/2019 DAMAGE TO RENTED 100,000 'X X ISES IEa Q,2,irrencej S X Post/Herbicide Endt MED EXP (Any one�e S 5,000 — — I _ PERSONAL 8 ADV INJURYURY .__ 5 — _ _ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER X 1 �� PRO- r I , GENERAL AGGREGATE _ S __ 2,000,000 2,000,000 POLICY JECT LOC I J PRODUCTS -COMP/OP AGG 5 _ OTHER i I S AUTOMOBILE LIABILITY i II 109/01/2018I09/01/2019 COMBINED SINGLE LIMIT I IEa Aden) 1,000,000 ANY AUTO I X I X ACP4027908982 ff BODILY INJURY erperson l$ ._ _X OWNED I SCHEDULED AUTOS ONLY _ I I BODILY INJURY (Per accident) 5 OPERT�AMAGE _ _ ONLY AUNONE I accldentAUTOS S — IAUTOS C X UMBRELLA LIAR X OCCUR I iACP4027908982 09/01/2018 EACH OCCURRENCE5_ 09/01/2019 5,000,000 _ _ EXCESS LIAR CLAIMS -MADE �AGGREGATE5,000,000 _ I $ _ _ DED X I RETENTIONS oI S D : WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN I 07/01/2018 X PER I OTH- i .__--TATUSE_ L-ER 07/01/2019 I 1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE X IKIWC915692 EXCLUDED u NIA: E L EACH ACCIDENTI S__ _ �FFICERIMEMBER llandatory in NH) E L 01 EASE - EA EMPLOYEE S Y—. I._ — 1,000,000 --__ If yes describe under DESCRIPTION OF OPERATIONS below I I I I EL DISEASE - POUCY LIMIT S 1,000,000 ►v C7 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remark Schedule may be attached If more space Is required) c000l Job: LMA No. 4, Project No. 904-18, Contract No C38670 and LMA No. 7, Project No. 907.18, Contract No. C63680. y r-- —< rm The City of Palm Desert, Its officers, employees and agents are additional Insureds, primary and non- contributory, waiver of subrogation!ippli Ilapects Insureds, respects to liability endorserrn%nt Bill to general liability per endorsement attached; additional waiver of subrogation applies as waiver of subrogation applies as respects to workers compensation per endorsement attached. auto per r►I CERTIFICATE HOLDER City of Palm Desert 73510 Fred Waring Dr. Palm Desert, CA 92260 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE e4k JL a, ACORD 25 (2016103) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 04 10B (Ed. 9-14) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA BLANKET BASIS We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) The additional premium for this endorsement shall be 2% of the total manual premium otherwise due on such remuneration. The minimum premium for this endorsement is $350. This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. SCHEDULE BLANKET WAIVER Person/Organization Blanket Waiver — Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver. Job Description All CA Operations This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 07/01/2018 Policy No. KIWC915692 Endorsement No. Insured Kirkpatrick Landscaping Services, Inc. Insurance Company Oak River Insurance Company Countersigned by Premium $ WC 99 0410B (Ed. 9-14) POLICY NUMBER: ACP4027908982 COMMERCIAL GENERAL LIABILITY CG73231216 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS ENHANCEMENT PLUS ENDORSEMENT INCLUDING MEDICAL PAYMENTS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. Lost Key Coverage 1. Under Section I — Coverages, Coverage A Bodily Injury And Property Damage Liability, coverage is extended to include the following: If a customer's master or grand key, excluding electronic key card, is lost, damaged or stolen while in your care, custody or control we will pay the cost of replacing the keys, including the master lock and all keys used in the same lock, the cost of adjusting locks to accept the new keys, or the cost to replace the locks, whichever is less. 2. Limit of Insurance — For the purpose of this coverage the most we will pay is $ 10,000 per "occurrence". B. Voluntary Property Damage 1. Section I — Coverages, Coverage A Bodily Injury And Property Damage Liability, coverage is extended to include the following: At your request, we will pay for "property damage" to property of others caused by you and while in your possession, arising out of your business operations and occurring during the policy period. 2. Limit of Insurance — For the purpose of this coverage the most we will pay is $1,500 per "occurrence". D. Expanded Property Damage Coverage 1. For the purposes of this endorsement only: Section I — Coverages, Coverage A Bodily Injury And Property Damage Liability, 2. Exclusions, Exclusion j. Damage To Property is amended as follows: a. Paragraphs (3), (5), and (6) are deleted in their entirety. b. Paragraph (4) is deleted in its entirety and replaced with: (4) Personal property in the care, custody, or control of the insured: (a) for storage or sale at premises you own, rent or occupy, or (b) while being transported by any aircraft, "auto" or watercraft owned or operated by or rented to or loaned to any insured. c. The coverage provided by this endorsement does not apply to "property damage": (1) Arising out of the disappearance or loss of use of personal property; or (2) Included in the "products -completed operations hazard". 2. Limit of Insurance - The most we will pay for loss arising out of any one 'occurrence" is $5,000. C. Non -Owned Watercraft 3. Deductible - Our obligation to pay for a Under Section I — Coverages, Coverage A covered loss applies only to the amount of Bodily Injury And Property Damage Liability, loss in excess of $250. 2. Exclusions, Exclusion g. Aircraft, Auto Or We will pay the deductible amount to effect Watercraft Paragraph (2) (a) is replaced with: settlement of any claim or "suit" and, upon (a) Less than 51 feet long; and notification of this action having been taken, you shall promptly reimburse us for the deductible as has been paid by us. CG 73 23 12 16 Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 5 with its permission. CG73231216 This insurance is primary to any expanded d. All reasonable expenses incurred by the property damage coverage provided by a insured at our request to assist us in the separate endorsement attached to this investigation or defense of the claim or policy, and it will supplant any deductible in "suit", including actual loss of earnings up to said endorsement $500 a day because of time off from work. E. Damage To Premises Rented To You G. Newly Formed And Acquired Organizations 1. Under Section I - Coverages, Coverage A Under SECTION II - WHO IS AN INSURED Bodily Injury And Property Damage Paragraph 3.a. is replaced with: Liability, the last paragraph of 2. a. Coverage under this provision is afforded Exclusions is replaced with: only until the 180'h day after you acquire or If Damage To Premises Rented To You is form the organization or the end of the policy not otherwise excluded, Exclusions c. period, whichever is earlier; through n. do not apply to damage by fire, H. Additional Insured - Automatic Status When lightning, explosion, smoke, or sprinkler Required In An Agreement Or Contract With leakage to premises while rented to you or You temporarily occupied by you with permission Section II - Who Is An Insured is amended to of the owner. include: 2. Under Section III - Limits Of Insurance, 1. Any person(s) or organization(s) described Paragraph 6 is replaced with: in Paragraph a. - d. below with whom you 6. Subject to 5. above, the Damage To have agreed in writing in a contract or Premises Rented To You Limit is the written agreement that such person or most we will pay under Coverage A for organization be added as an additional damages because of "property damage" insured on your policy during the policy to any one premises, while rented to period shown in the Declarations. you, or in the case of damage by fire, 2. Any other person or organization you are lightning, explosion, smoke or sprinkler required to add as an additional insured leakage, while rented to you or under the contract or agreement described temporarily occupied by you with in Paragraph 1. above. permission of the owner. The limit is increased to $1,000,000. The person or organization added as an insured by this endorsement is an insured 3. Under Section IV - Commercial General only for liability due to: Liability Conditions, 4. Other Insurance, b. a. Lessors of Leased Equipment - with Excess Insurance (1) (a) (ii) is replaced respect to their liability for "bodily injury", with: "property damage", or "personal and (ii) That is Fire, Lightning, Explosion, Smoke advertising injury", caused in whole or in or Sprinkler leakage insurance for part by your maintenance, operation, or premises rented to you or temporarily use of equipment leased to you by such occupied by you with permission of the person(s) or organization(s). This owner. insurance does not apply to any F. Supplementary Payments "occurrence" which takes place after the Under Section I - Coverages, Supplementary equipment lease expires. Payments - Coverages A and B Paragraphs However, their status as additional 1.b and 1.d. are replaced with: insured under this policy ends when b. Up to $2,500 for cost of bail bonds required their lease, contract, or agreement with because of accidents or traffic law violations you for such leased equipment expires. arising out of the use of any vehicle to which b. Managers or Lessors of Premises - the Bodily Injury Liability Coverage applies. with respect to liability arising out of the We do not have to furnish these bonds. ownership, maintenance, or use of that part of the premises you own, rent, lease, or occupy. Page 2 of 5 Includes copyrighted material of Insurance Services Office, Inc., CG 73 23 12 16 with its permission. This insurance does not apply to: (1) Any "occurrence" which takes place after you cease to be a tenant in that premises. (2) Structural alterations, new con- struction, or demolition operations performed by or on behalf of the person or organization. However, their status as additional insured under this policy ends when you cease to be a tenant of such premises. State or Political Subdivision — Permits Relating to Premises — with respect to the following hazards for which the state or political subdivision has issued a permit or authorization in connection with premises you own, rent, or control and to which this insurance applies. (1) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decorations and similar exposures; or (2) The construction, erection, or removal of elevators; or (3) The ownership maintenance or use of any elevators covered by this insurance. This insurance does not apply to: (1) "Bodily injury" or "property damage" or "personal or advertising injury" arising out of operations performed for the state or municipality; or (2) "Bodily injury" or "property damage" included within the "products - completed operations hazard". However, such state or political subdivision's status as additional insured under this policy ends when the permit ends. Owners, Lessees, or Contractors — with respect to liability for "bodily injury", "property damage", or "personal and advertising injury" caused in whole or in part, by: CG 73 23 12 16 (1) Your acts or omissions; or (2) The acts or omissions of those acting on your behalf; in the performance of your ongoing operations performed for that additional insured, whether the work is performed by you or on your behalf. The insurance does not apply to. (1) "Bodily injury", "property damage", or "personal and advertising injury" arising out of the rendering of or the failure to render any professional architectural, engineering, or survey services, including: (a) The preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, survey, field orders, change orders, or drawings and specifications: or (b) Supervisory, inspection, archi- tectural or engineering activities. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the `bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering of, or failure to render, any professional, architectural, engineering, or surveying services. (2) "Bodily injury" or "property damage" occurring after: (a) All work, including materials, parts, or equipment furnished in connection with such work, on the project (other than service, maintenance, or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or CG 73 2312 16 Includes copyrighted material of Insurance Services Office, Inc., Page 3 of 5 with its permission. CG 73 23 12 16 (b) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. However, a person or organization's status as additional insured under this policy ends when your operations for that additional insured are completed. With respect to the insurance afforded to such additional insureds a. — d. described above, the following is added to Section III — Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations: whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. However, the insurance afforded to such additional insureds a. — d. described above: 1. Only applies to the extent permitted by law; and 2. Will not be broader than that which you are required by the contract or agreement to provide for such additional insured. 3. Primary and Noncontributory — Other Insurance Conditions The following is added to the Other Insurance Condition and supersedes any provisions to the contrary: Primary and Noncontributory Insurance This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: a. The additional insured is a Named Insured under such other insurance; and b. You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured Employee Bodily Injury To Another Employee Under Section II — Who Is An Insured The following is added to Paragraph 2.a.(1): Paragraphs 2.a.(1) (a), (b) and (c) do not apply to "bodily injury" to a co -"employee" in the course of the co -"employee's" employment by you, or to "bodily injury" to a co -"volunteer worker" while performing duties related to the conduct of your business. J. Broad Form Named Insured Under Section tl — Who Is An Insured The following is added to Paragraph 2.: e. Any business entity incorporated or organized under the laws of the United State of America (including any State thereof), its territories or possessions, or Canada (including any Province thereof) in which the Named Insured shown in the Declarations owns, during the policy period, an interest of more than fifty percent. If other valid collectible insurance is available to any business entity covered by this solely by reason of ownership by the Named Insured shown in the Declarations in excess of fifty percent, this insurance is excess over the other insurance, whether primary, excess, contingent, or on any other basis. K. Aggregate Limit Per Location Under Section III — Limits Of Insurance the following is added to Paragraph 2.- The General Aggregate Limit under Section III Limits Of Insurance applies separately to each of your locations owned by or rented to you or temporarily occupied by you with the permission of the owner. For the purposes of this provision, location means premises involving the same or connecting lots, or premises whose connection is interrupted only by a public street, roadway, waterway or railroad right-of-way. L. Aggregate Limit Per Project Under Section III — Limits Of Insurance The following paragraph is added to Paragraph 2: The General Aggregate Limit under Section III Limits Of Insurance applies separately to each of your construction projects away from premises owned by or rented to you. Page 4 of 5 Includes copyrighted material of Insurance Services Office, Inc., CG 73 23 12 16 with its permission. M. Medical Payments Under Section III - Limits Of Insurance, Paragraph 7. is replaced with: 7. Subject to 5. above, the higher of: a. $10,000; or b. The amount shown in the Declarations for Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of "bodily injury' sustained by one person. This coverage does not apply if Coverage C - Medical Payments is excluded either by the provisions of any coverage forms attached to the policy or by endorsement. N. Knowledge Of An Occurrence Under Section IV - Commercial General Liability Conditions, the following is added to 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit: e. Knowledge of an occurrence, offense, claim or suit by an agent or employee of any insured shall not in itself constitute knowledge of the insured unless you, a partner, if you are a partnership; or an executive officer or insurance manager, if you are a corporation receives such notice of an occurrence, offense, claim or suit from the agent or employee. f. The requirements in Paragraph b. will not be considered breached unless there is knowledge of occurrence as outlined in Paragraph e. above. O. Unintentional Failure To Disclose Hazard Under Section IV - Commercial General Liability Conditions, Condition 6. Representations the following paragraph is added: d. Your failure to disclose all hazards or prior "occurrences" or offenses existing as of the CG 73 23 12 16 inception date of the policy shall not prejudice the coverage afforded by this policy provided such failure to disclose all hazards or prior "occurrences" or offenses is not intentional. This provision does not affect our right to collect additional premium or exercise our right of cancellation or non - renewal. P. Waiver Of Subrogation Under Section IV - Commercial General Liability Conditions, 8. Transfer Of Rights Of Recovery Against Others To Us the following paragraph is added: If required by a written contract executed prior to loss, we waive any right of subrogation we may have against the contracting person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products -completed operations hazard". Q. Liberalization Under Section IV Liability Conditions, added: 10. Liberalization - Commercial General the following paragraph is If we revise this coverage form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revision is effective in your state. R. Broadened Bodily Injury Definition (Mental Anguish) Under Section V - Definitions Definition 3. "Bodily Injury" is replaced with: 3. "Bodily injury" means physical injury, sickness, or disease to a person and if arising out of the foregoing, mental anguish, mental injury, shock, or humiliation, including death at any time resulting therefrom. All terms and conditions of this policy apply unless modified by this endorsement. CG 73 23 12 16 Includes copyrighted material of Insurance Services Office, Inc., Page 5 of 5 with its permission. POLICY NUMBER: ACP4027908982 COMMERCIAL AUTO AC 70 05 0316 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO PROTECTION - GOLD This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SUMMARY OF COVERAGES A. Effect of This Endorsement B. Newly Acquired or Formed Entities C. Employees as Insureds — Nonowned Autos D. Additional Insured by Contract, Permit or Agreement E. Supplementary Payments —Bail Bonds F. Supplementary Payments — Loss of Earnings G. Personal Effects and Property of Others Extension H. Prejudgment Interest Coverage I. Fellow Employee —Officer, Managers and Supervisors J. Hired Auto Physical Damage K. Temporary Substitute Autos — Physical Damage Coverage L. Expanded Towing Coverage M. Auto Loan or Lease Coverage N. Original Equipment Manufacturer Parts — Leased Private Passenger Types O. Deductible Amendments P. Rental Reimbursement Coverage Q. Expanded Transportation Expense R. Extra Expense— Stolen Autos S. Physical Damage Limit of Insurance T. New Vehicle Replacement Cost U. Physical Damage Coverage Extension V. Transfer of Rights of Recovery Against Others To Us W. Section IV — Business Auto Conditions — Notice of and Knowledge of Occurrence X. Hired Car Coverage Territory Y. Emergency Lock Out Z. Cancellation Condition AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 7 with its permission COMMERCIAL AUTO AC 70 05 0316 A. EFFECT OF THIS ENDORSEMENT Coverage provided under this policy is modified by the provisions of this endorsement. If there is any conflict between the provisions of this endorsement and the provision(s) of any state - specific endorsement also attached to this poli- cy, then the provision(s) of the state -specific endorsement shall apply instead of the provi- sions of this endorsement that are in conflict, but only to the extent of the conflict, and only to the extent necessary to bring such provisions into conformance with the state requirement(s) contained in the provision(s) of the state -specific endorsement. B. NEWLY ACQUIRED OR FORMED ENTITIES The Named Insured shown in the Declarations is amended to include any organization you newly acquire or form, other than a partnership, joint venture, or limited liability company, and over which you maintain ownership or majority (more than 50%) interest; if there is no other similar in- surance available to that organization. Coverage under this provision is afforded until the 1801h day after you acquire or form the organization or the end of the policy period, whichever is later. C. EMPLOYEES AS INSUREDS — NONOWNED AUTOS The following is added to paragraph A.I. Who Is An Insured of SECTION II — COVERED AUTOS LIABILITY COVERAGE: d. Any "employee" of yours is an "insured" while using a covered "auto" you don't own, hire or borrow in your business or your per- sonal affairs. D. ADDITIONAL INSURED BY CONTRACT, PERMIT OR AGREEMENT The following is added to A.I. Who Is An In- sured of SECTION II — COVERED AUTOS LIABILITY COVERAGE: Any person or organization that you are re- quired to name as an additional insured in a written contract or agreement that is executed or signed by you prior to a "bodily injury" or "property damage" occurrence is an "insured" for Covered Auto Liability coverage. How- ever, with respect to covered "autos", such person or organization is an insured only to the extent that person or organization qualifies as an "insured" under A.1. Who is an Insured of SECTION II — COVERED AUTOS LIABILITY COVERAGE: If specifically required by the written contract or agreement referenced in the paragraph above, any coverage provided by this endorsement to an additional insured shall be primary and any other valid and collectible insurance avail- able to the additional insured shall be non- contributory with this insurance. If the written contract does not require this coverage to be primary and the additional insured's coverage to be non-contributory, then this insurance will be excess over any other valid and collectible insur- ance available to the additional insured. E. SUPPLEMENTARY PAYMENTS — BAIL BONDS Supplementary Payments of SECTION II — COVERED AUTOS LIABILITY COVERAGE is revised as follows: (2) Up to $2,500 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. F. SUPPLEMENTARY PAYMENTS — LOSS OF EARNINGS Supplementary Payments of the SECTION II — COVERED AUTOS LIABILITY COVERAGE is revised as follows: (4) All reasonable expenses incurred by the "in- sured" at our request, including actual loss of earnings up to $500 a day because of time off from work. G. PERSONAL EFFECTS AND PROPERTY OF OTHERS EXTENSION 1. The. Care, Custody or Control Exclusion of SECTION II — COVERED AUTOS LIABILITY COVERAGE, does not apply to "property damage" to property, other than your property, up to an amount not exceed- ing $250 in any one "accident". Coverage is excess over any other valid and collectible insurance. 2. The following paragraph is added to A.4. Coverage Extensions of SECTION III — PHYSICAL DAMAGE COVERAGE: c. We will pay up to $500 for your property that is lost or damaged as a result of a covered "loss", without applying a de- ductible. Coverage is excess over any other valid and collectible insurance. Page 2 of 7 Includes copyrighted material of Insurance Services Office, Inc. AC 70 05 0316 with its permission COMMERCIAL AUTO AC 70 05 03 16 H. PREJUDGMENT INTEREST COVERAGE substitute for a covered "auto" you own that The following paragraph is added to SECTION II is out of service because of its: — COVERED AUTOS LIABILITY COVERAGE, a. Breakdown; 2. Coverage Extensions, a. Supplementary b. Repair; Payments: (7) Prejudgment interest awarded against the C. Servicing; "insured" on that part of the judgment we d. "Loss"; or pay. If we make an offer to pay the appli- e. Destruction cable limit of insurance, we will not pay The coverage that applies is the same as any prejudgment interest based on that the coverage provided for the vehicle being period of time after the offer. replaced. I. FELLOW EMPLOYEE — OFFICERS, MANAGERS, AND SUPERVISORS L. EXPANDED TOWING COVERAGE The Fellow Employee Exclusion in SECTION II 1. We will pay up to: — COVERED AUTOS LIABILITY COVERAGE is replaced as follows; a. $100 for a covered "auto" you own of A. "Bodily injury" to any fellow "employee" of the private passenger type, or the "insured" arising out of and in the course b. $500 for a covered "auto" you own that of the fellow "employee's" employment or is not of the private passenger type, while performing duties related to the con- for towing and labor costs incurred each duct of your business. This exclusion does time the covered "auto" is disabled. Howev- not apply to an "insured" who occupies a er, the labor must be performed at the place position as an officer, manager, or supervi- of disablement. sor. 2. This coverage applies only for an "auto" J. HIRED AUTO PHYSICAL DAMAGE covered on this policy for Comprehensive or If covered "auto" designation symbols 1 or 8 ap- Specified Causes of Loss Coverage and ply to Liability Coverage and if at least one "au- Collision Coverages. to" you own is covered by this policy for Com- 3. Payment applies in addition to the otherwise prehensive, Specified Causes of Loss, or Colli- applicable amount of each coverage you sion coverages, then the Physical Damage have on a covered "auto". coverages provided are extended to "autos" you M. AUTO LOAN OR LEASE COVERAGE lease, hire, rent or borrow without a driver; and 1. In the event of a total "loss" to a covered provisions in the Business Auto Coverage Form "auto", we will pay any unpaid amount due applicable to Hired Auto Physical Damage apply on the loan or lease, including up to a max - up to a limit of $100,000. The deductible will be imum of $500 for early termination fees or equal to the largest deductible applicable to any "auto" penalties, for your covered "auto" less: owned for that coverage. Any Compre- hensive deductible does not apply to fire or a. The amount paid under SECTION III — lightning. PHYSICAL DAMAGE COVERAGE of K. TEMPORARY SUBSTITUTE AUTOS — this policy; and PHYSICAL DAMAGE COVERAGE b. Any: The following is added to paragraph C. Certain 1) Overdue lease/loan payments at the Trailers, Mobile Equipment And Temporary time of the "loss"; Substitute Autos of SECTION I - COVERED 2) Financial penalties imposed under a AUTOS: lease for excessive use, abnormal If Physical Damage Coverage is provided by wear and tear or high mileage; this Coverage Form, the following types of 3) Security deposits not refunded by a vehicles are also covered "autos" for Physi- lessor; cal Damage Coverage: 4) Costs of extended warranties, Credit Any "auto" you do not own while used with Life insurance, Health, Accident, or the permission of its owner as a temporary Disability insurance purchased with the lease; and AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc., Page 3 of 7 with its permission COMMERCIAL AUTO AC 70 05 03 16 5) Carry-over balances from previous leases. 2. This coverage only applies to a "loss" which is also covered under this policy for Com- prehensive, Specified Causes of Loss, or Collision coverage. 3. Coverage does not apply to any unpaid amount due on a loan for which the covered "auto" is not the sole collateral. N. ORIGINAL EQUIPMENT MANUFACTURER PARTS — LEASED PRIVATE PASSENGER TYPES Under Paragraph C. Limit of Insurance of SECTION III — PHYSICAL DAMAGE COVERAGE, Section 4 is added as follows: 4. We will use new original equipment vehicle manufacturer parts for any private passen- ger type covered "auto" where required by the lease agreement which has a term of at least six months. If a new original equip- ment vehicle manufacturer part is not in pro- duction or distribution we may use a like, kind and quality replacement part. 0. DEDUCTIBLE AMENDMENTS The following are added to the Deductible provi- sion of SECTION III — PHYSICAL DAMAGE COVERAGE: If another policy or coverage form that is not an automobile policy or coverage form issued by this company applies to the same "accident", the following applies: 1. If the deductible under this coverage is the smaller (or smallest) deductible, it will be waived: 2. If the deductible under this coverage is not the smaller (or smallest) deductible, it will be reduced by the amount of the smaller (or smallest) deductible. If a Comprehensive or Specified Causes of Loss Coverage "loss" from one "accident" involves two or more covered "autos", only the highest deductible applicable to those coverages will be applied to the "accident," if the cause of the loss is covered for those vehicles. This provision only applies if you carry Comprehensive or Specified Causes of Loss Coverage for those vehicles, and does not extend coverage to any covered "autos" for which you do not carry such coverage. No deductible applies to glass if the glass is re- paired, in a manner acceptable to us, rather than replaced. P. RENTAL REIMBURSEMENT COVERAGE 1. This coverage applies only to a covered "au- to" for which Physical Damage Coverage is provided on this policy. 2. We will pay for rental reimbursement ex- penses incurred by you for the rental of an "auto" because of "loss" to a covered "auto". Payment applies in addition to the otherwise applicable amount of each coverage you have on a covered "auto." No deductibles apply to this coverage. 3. We will pay only for those expenses incurred during the policy period beginning 24 hours after the "loss" and ending, regardless of the policy's expiration, with the lesser of the following number of days: a. The number of days reasonably required to repair or replace the covered "auto". If "loss" is caused by theft, this number of days is added to the number of days it takes to locate the covered "auto" and return it to you. b. The number of days shown in the Schedule. 4. Our payment is limited to the lesser of the following amounts: a. Necessary and actual expenses incurred. b. $75 for any one day or for a maximum of 30 days. 5. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. 6. If "loss" results from the total theft of a cov- ered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement ex- penses which is not already provided for un- der SECTION III — PHYSICAL DAMAGE COVERAGE Coverage Extension. Q. EXPANDED TRANSPORTATION EXPENSE Paragraph A.4.a. of SECTION III — PHYSICAL DAMAGE COVERAGE is replaced by the follow- ing.- We will pay up to $50 per day to a maximum of $1500 for temporary transportation expense in- curred by you because of the total theft of a Page 4 of 7 Includes copyrighted material of Insurance Services Office, Inc AC 70 05 0316 with its permission. covered "auto" of the private passenger type. We will only pay for those covered "autos" for which you carry Comprehensive or Specified Causes of Loss Coverage. We will pay for tem- porary transportation expenses incurred during the period beginning 24 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is returned to use or we pay for its "loss". R. EXTRA EXPENSE — STOLEN AUTOS The following paragraph is added to Coverage Extensions of SECTION III — PHYSICAL DAMAGE COVERAGE: c. We will pay for up to $5,000 for the expense of returning a stolen covered "auto" to you. We will pay only for those covered "autos" for which you carry Comprehensive or Spec- ified Causes of Loss Coverage S. PHYSICAL DAMAGE LIMIT OF INSURANCE T. Under SECTION III — PHYSICAL DAMAGE COVERAGE, Paragraph C., Limit of Insurance is replaced by the following: C. Limit Of Insurance 1. The most we will pay for "loss" in any one "accident" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of the "loss", or b. The cost of repairing or replacing the damaged or stolen property. 2. $1500 is the most we will pay for "loss" in any one "accident" to all electronic equip- ment that reproduces, receives or transmits audio, visual or data signals which, at the time of "loss", is: a. Permanently installed in or upon the covered "auto" in a housing, opening or other location that is not normally used by the "auto" manufacturer for the in- stallation of such equipment. b. Removable from a permanently installed housing unit as described in Paragraph 2.a. above or is an integral part of that equipment; or c. An integral part of such equipment. 3. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total "loss". 4. The cost of repairing or replacing may: a. Be based on an estimate which includes parts furnished by the original equip - COMMERCIAL AUTO AC 70 05 0316 ment manufacturer or other sources in- cluding non -original equipment manu- facturers and b. If a repair or replacement results in bet- ter than like kind or quality, we will not pay for the amount of the net improve- ment. 5. If we offer to pay the actual cash value of the damaged or stolen property, we will value auto advertising wraps, paint customi- zation, and similar business related advertis- ing modifications, in addition to the actual cash value of the property. Auto advertising wraps, paint customization, and similar business related advertising modifications will be valued at the cost to replace them with an adjustment made for depreciation and physical condition. NEW VEHICLE REPLACEMENT COST The following is added to the Limit of Insurance provision of SECTION III — PHYSICAL DAMAGE COVERAGE: 5. The provisions of paragraphs 1. and 3. do not apply to a covered "auto" of the private passenger type or a vehicle with a gross vehicle weight rating of 20,000 pounds or less which is a "new vehicle." In the event of a total "loss" to your new ve- hicle to which this coverage applies, we will pay at your option: a. The verifiable "new vehicle" purchase price you paid for your damaged vehi- cle, not including any insurance or war- ranties purchased; b. If it is available, the purchase price, as negotiated by us, of a "new vehicle" of the same make, model, and equipment or the most similar model available, not including any furnishings, parts, or equipment not installed by the manufac- turer or manufacturers' dealership; or . c. The market value of your damaged ve- hicle, not including any furnishings, parts, or equipment not installed by the manufacturer or manufacturer's dealer- ship. We will not pay for initiation or set up costs associated with loans or leases As used in this endorsement, a "new vehicle" means an "auto" of which you are the original owner that has not been previ- AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc., Page 5 of 7 with its permission COMMERCIAL AUTO AC 70 05 0316 ously titled and which you purchased less than 365 days before the date of the 'loss". U. PHYSICAL DAMAGE COVERAGE EXTENSIONS Under SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, Coverage Exten- sions, b. Loss of Use Expenses is replaced by the following: b. Loss of Use Expenses For Hired Auto Physical Damage, we will pay expenses for which an "insured" be- comes legally responsible to pay for loss of use of a vehicle rented or hired without a driver, under a written rental contract or agreement. We will pay for loss of use ex- penses if caused by: (1) Other than collision if the Declarations indicate that Comprehensive Coverage is provided for any covered "auto"; (2) Specified Causes of Loss only if the Declarations indicate that Specified Causes of Loss Coverage is provided for any covered "auto'; or (3) Collision only if the Declarations indicate that Collision Coverage is provided for any covered "auto." However, the most we will pay for any expenses for loss of use is $50 per day, to a maximum of $1,500. The insurance provided by this provision is excess over any other collectible insurance. V. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US The following is added to the Transfer Of Rights Of Recovery Against Others To Us Condition: We waive any right of recovery we may have against any person or organization to the extent required of you by a written con- tract executed prior to any "accident' be- cause of payments we make for damages under this coverage form. W. NOTICE OF AND KNOWLEDGE OF OCCURRENCE a. Your obligation in the Duties in the Event of Accident, Claim, Suit or Loss Condi- tion relative to notification requirements applies only when the "accident' or "loss" is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; (3) A member, if you are a limited liability company; or (4) An executive officer or insurance manager, if you are a corporation. Your obligation in the. Duties in the Event of Accident, Claim, Suit or Loss Condition relative to providing us with documents concerning a claim or "suit" will not be considered breached unless the breach occurs after such claim or "suit" is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; (3) A member, if you are a limited liability company; or (4) An executive officer or insurance manager, if you are a corporation. X. HIRED CAR — COVERAGE TERRITORY Item (5) of the Policy Period, Coverage Territory GeneralConditionss replaced by the following: (5) Anywheren theworldif a covered "auto" is leased, hired, rented or borrowed without a driverfor a period of 30 days or less; and Y. EMERGENCY LOCKOUT We will reimburse you up to $100 for reasonable expense incurred for the services of a locksmith to gain entry into your covered "auto" subject to these provisions: 1. Your door key, electronic key or key entry pad has been lost, stolen or locked in your covered "auto" and you are unable to enter such "auto", or 2. Your keyless entry device battery dies and you are unable to enter such "auto" as a re- sult, SECTION IV — BUSINESS AUTO 3. Your key, electronic key or key entry pad CONDITIONS, Paragraph A is amended as has been lost or stolen and you have follows: changed the lock to prevent an unauthorized 6. NOTICE OF AND KNOWLEDGE OF entry; and OCCURRENCE Page 6 of 7 Includes copyrighted material of Insurance Services Office, Inc AC 70 05 0316 with its permission. 4. Original copies of receipts for services of a locksmith must be provided before reim- bursement is payable. Z. CANCELLATION CONDITION Paragraph A.2. of the COMMON POLICY CONDITION — CANCELLATION applies except as follows: COMMERCIAL AUTO AC 70 05 0316 If we cancel for any reason other than non- payment of premium, we will mail or deliver to the First Named Insured written notice of cancellation at least 60 days before the ef- fective date of cancellation. This provision does not apply in those states that require more than 60 days prior notice of cancella- tion. AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc., Page 7 of 7 with its permission