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HomeMy WebLinkAboutC35952 Extension LMA1 901-20CONTRACT NO. C35952 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: April 25, 2019 PREPARED BY: Randy Chavez, Landscape Supervisor REQUEST: Approve Contract No. C35952, Amendment No. to Contract No. C35950 with Conserve LandCare, Inc., for Landscape Maintenance Area (LMA) No. 1 in the amount of $126,570.60, and include repair work and services at the specified contract amount not to exceed 20 percent (20%) or $25,314 (Project No. 901-20). Recommendation By Minute Motion: 1. Approve a second one-year extension of Contract No. C35950 with Conserve LandCare, Inc., for LMA No. 1 in the amount of $126,570.60; 2. Authorize repair work and services at the specified contract amount not to exceed 20%, or $25,314; and 3. Authorize the City Manager to execute Contract No. C35952, Amendment No. 2 to Contract No. C35950. Funds are available in the General Fund Account No. 1104614-4337001, Repair/Maintenance Medians, and Assessment District Account No. 2764374-4332000, Haystack Drainage Channel. Strateqic Plan Obiective 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. Background Analvsis Contract No. C35950 was awarded to Conserve LandCare, Inc., by the City Council on April 27, 2017, for a term of one year, with an option for up to four one-year extensions. The first extension was approved on May 24, 2018 and is set to expire on June 30, 2019. This contract includes the monthly maintenance services of LMA No. 1, which includes the Haystack Drainage Channel, and the landscape medians on the southwest section of the City (map attached for reference). April 25, 2019 — Staff Report Contract No. C35952, Amendment No. 2 to Contract No. C35950 with Conserve LandCare, Inc. for LMA No. 1 (Project No. 901-20) Page 2 of 2 Conserve LandCare, Inc. 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 $307.21 per month ($3,686.52 per year). Based on Conserve LandCare's acceptable performance, staff finds the request to be reasonable. The new total contract amount will be $126,570.60 per year ($10,547.55 per month). Repair work and services cover 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 Because this activity is included in the proposed Fiscal Year 2019-2020 operating budget, there is no anticipated fiscal impact beyond the contract amount. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Hargreaves Tom arcia, P.E. t Moore Lauri Aylaian City Attorney Director of Public Works Director of Finance City Manager CONTRACTOR: Conserve LandCare, Inc. 72265 Manufacturing Road Thousand Palms, California 92276 ATTACHMENTS: Contract No. C35952, Amendment No. 2 to Contract No. C35950 Payment and Performance Bonds Contractor's Acceptance Letter Certificate of Insurance Vicinity Map of LMA No. 1 CONTRACT NO. C35952 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That whereas the City of Palm Desert has awarded to Conserve LandCare, Inc., hereinafter designated as the "Principal", a contract for: LANDSCAPE MAINTENANCE AREA NO. 1 PROJECT NO. 901-20 CONTRACT NO. C35952 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, Conserve LandCare, 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 twenty-six thousand five hundred seventy and 60/100 dollars ($126,570.60), 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. C35952 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. r. CONTRACT NO. C35952 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 BY: (Signature must be notarized) Name: Address: City/State/Zip Code: Telephone No.: Conserve LandCare, Inc. PRINCIPAL (Signature must be notarized) INSURANCE COMPANY and/or AGENT 3 CONTRACT NO. C35952 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. C35952 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. C35952 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (sometimes referred to hereinafter as "City") has awarded to Conserve LandCare, Inc. (hereinafter designated as the "CONTRACTOR/PRINCIPAL"), an agreement dated April 11, 2019, described as follows: LANDSCAPE MAINTENANCE AREA NO. 1, PROJECT NO. 901-20, CONTRACT NO. C35952 (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, Conserve LandCare, 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 twenty-six thousand five hundred seventy and 60/100 dollars ($126,570.60), 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. C35952 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: Conserve LandCare, Inc. (Typed Name of CONTRACTOR) By: (Signature) (Typed Name and Title) (Signature must be notarized) The rate of premium on this bond is $ SURETY: (Typed Name of Surety) By: (Signature of Attorney -in -Fact) (Typed Name of Attorney -in -Fact) (Signature must be notarized) The total amount of premium charged: $ (the above must be filled in by corporate surety). per thousand. 2 CONTRACT NO. C35952 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 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: J Surety Agent or Representative for service of process in California if different than Surety Name: Name: Address: Address: City/State/Zip Code: City/State/Zip Code: Telephone No.: Telephone No.: 3 CONTRACT NO. C35952 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 CONTRACT NO. C35952 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 c•nserve LandCare March 22, 2019 City of Palm Desert c/o Randy Chavez, Landscape Supervisor 73510 Fred Waring Dr. Palm Desert, CA 92260 Dear Mr. Chavez, We wish to take this opportunity to thank both you and the City of Palm Desert for presenting the opportunity to Conserve Landcare to extend our contract for another year for the landscape maintenance of LMA 1, 16 and 18. We are very interested in continuing our relationship with the City. We have reviewed the contracts and are requesting the following increases in the annual contract amounts for LMA 1, 16 and 18 in order to recover increased costs for the forthcoming year. At this time, we are compelled to address the minimum wage increase. A $1.00 per hour increase was mandated by the State effective January 1, 2019 and a second $1.00 per hour increase is forthcoming effective January 1, 2020. Both will effect portions of our 2019/20 contracts. We are estimating 5,625 hours annually for Area 1. With an average increase of $1.00 per hour, the total annual increase is $7,495.93 including employers taxes, Social Security, workers compensation and profit. We are estimating 7,880 hours annually for Area 16. With an average increase of $1.00 per hour, the total annual increase is $10,191.09, including employers taxes, Social Security, Workers Compensation, and profit. 72265 Manufacturing Road Thousand Palms, CA 92276 Phcne 760-343-1433 Fax 760-343-0433 ConserveLandCare.com c•nserve LandCare We are estimating 3,920 hours annually for Area 18. With an average increase of $1.00 per hour, the total annual increase is $5,286.97, including employers taxes, Social Security, Workers Compensation and profit. This results in the following increases: LMA 1 Current Yearly Cost % Increase Requested New Annual Price New Monthly Price $ 122,884.08 3% $ 126,570.60 $ 10,547.55 LMA 16 Current Yearly Cost LMA 18 Current Yearly Cost % Increase Requested New Annual Price New Monthlv Price 167,067.12 3% $ 172,079.13 $ 14,339.92 % Increase Requested New Annual Price New Monthly Price 86,671.56 3% $ 89,271.70 $ 7,439.30 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. We respectfully ask that you consider this request and look forward to your response. Sincerely, Randy Mitchell Director of Landscape Maintenance rmitchel I i conservelandcare.com Tel: (760) 250-7246 72265 Manufacturing Road Thousand Palms, CA 92276 Phcne 760-343-1433 Fax 760-343-0433 ConserveLandCare.com CONSLAN-05 DNIELSEN ACORO" CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDONYYY) 3/29/2019 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 pollcy(iss) 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 4 0757776 . c ACT Linda Roche HUB International Insurance Services Inc. PHONE -- FAX T7564 Country Club Drive, Suite 401 I (M No, E:t): (760) 360.4700 4250 (ANC, Noj:(760) 360-6450 Palm Desert, CA 92211 Iinda.rocha@hubinternational.com INSURER(S) AFFORDING COVERAGE NAIC i - --------- __ i INSURER A: Argonaut Insurance Company _ _ _ 19801- INSURED INSURER B : Satlamore Insurance Company _ .40460 Conserve LandCare, Inc. !.INSURER C : Philadelphia_IndemnIV Insurance Company .18058 72-265 Manufactumg Road [_tWRER D : Hartford Casualty_ Insurance Company 29424 Thousand Palms, CA 92276 1 - - 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 jADDL SUER POLICY EFF POLICY Exi, ---- - - - - ---- �IR TYPE OF INSURANCE �NSD WVD POLICY NUMBER I �YYYY)-- LIMITS A X I COMMERCUIL GENERAL LIABILITY TY 1000000 � ,, EACH OCCURRENCE . S _ CLAIMS -MADE X OCCUR LAN2901414-00 2/22/2019 2/22/2020 DAMAGE TO RENTED 100,000 _ X _PREMISESJU ocowmw&I_$ ------ 5,000 MED EXP (Any one person) S PERSONAL 6 ADV INJURY 1,000,000 GENT AGGREGATE LIMIT APPLIES PER GENERAL AGGREGATE 2,000,000 POLICY X ] j4 ] LOC 2,000,000 I I PROWCTS,_COMPIOP AGG OTHER: A AU—OMOBILE LIABILITY COMBINEDtSINGLE LIMIT X ANY AUTO X LAA2901414-00 W212019 212=020 BODILY INJURY JPer person) l b OWNED SCHEDULED AUTOS ONLY AUTOS SSWyyryryEEpp INJURY.(Per accident —_ X AUTOS ONLY X� AUOTOSONLY pBpRRODILY (PerOaEkent4AMAGE $ X Hired Auto-Phys X Included A _ UMBRELLA LIAB X OCCUR ; 'EACH OCCURRENCE S 1,0001000 X EXCESS LIAR CLAIMS -MADE LAX2901414-00 2/22/2019 2/22/2020 i AGGREGATE $ 1,000.000 DEC) I J RETENTIONS B WORKERS COMPENSATION ---___----- --_------- -- _-S-_--------_---- X STATUTE I OT µ ER AND EMPLOYERS'LIABILITY Y / N ANY PROPRItTOR/PARTNERIEXECUTIVE —� SW-2305825-02 4/1/2019 4/1/2020 .� EACH ACCIDENT �_ 1,000,000 pF�FICER�M�M�� EXCLUDED? NIA (MandatorylnNH) — �E.L -_ ___—_ _ 1,000,000 I I E.L DISEASE _ EA EMPLOYEE $-_- _ Ityes. describe under DESCRIPTION OF PPERATIONS below E.L. DISEASE=POLICY LIMIT S 1,000,000 C Excess Liability PHUB665823 r 2/22/2019 2/22I2020 $3M Excess of $1M 3,000,000 D Equipment Floater 72MSHAO131 . 2/2212019 21=020 1,000 Ded. 100,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101. Additional Remarks Schedule, may be attached H more space Is required) Re: Contract No. C35950 (Project 901-10) Landscape Maintenance Area No.1 The City of Palm Desert and Its employees are named additional Insured per the attached. Insurance is primary and noncontributory. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE C Of Palm Desert THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City ACCORDANCE WITH THE POLICY PROVISIONS. 73-510 Fred Waring Drive Palm Desert, CA 92260 AUTHORIZED REPRESENTATIVE ACORD 25 (2016103) 01988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Policy No. LAA2901414-00 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO FLEET ENDORSEMENT This endorsement modes insurance provided under the following: BUSINESS AUTO COVERAGE PART A. BROADENED NAMED INSURED In SECTION V — DEFINITIONS, Rem G. is amended as follows: The definition of "insured" is amended to include the following: BUSINESS AUTO "Insured" includes as Named Insured any organization that is acquired or formed by you, in which one or more Named Insured(s) shown in the Declarations has an ownership interest of more than 50%, if there is no similar insurance available to that organization. However, "insured' does not include any newly acquired or formed organization: That is a pint venture or partnership; 2. That is an "insured" under any other similar liability or indemnity policy; 3. That has exhausted its limit of insurance under any other similar liability or indemnity policy; or 4. That has existed for 180 days or more after acquisition or formation by you unless you have notified us of the organization prior to the 181 't day after the effective date of acquisition or formation or the end of the policy period, whichever is earlier. No person or organization is an "insured" with respect to the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. B. AMENDMENT OF COVERAGE EXTENSIONS In SECTION II — LIABILITY COVERAGE, the following are amended: 1. Paragraph A.2.a.(2) is replaced by the following: (2) Up to $2,500 for the cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to fumish these bonds. Paragraph A.2.a.(4) is replaced by the following: (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 per day because of time off from work. C. RENTAL REIMBURSEMENT COVERAGE Payment applies in addition to the otherwise applicable amount of each coverage you have on a covered "auto". No deductibles apply to this coverage. 1. This coverage applies only to a covered "auto" described or designated in the Vehicle Schedule or in the Declarations as carrying physical damage coverage. AG 1600 (12.09) Argo Group US Page 1 of 7 Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. C 2. We will pay for rental reimbursement expenses incurred by you for the rental of an "auto" because of "loss" to a covered "auto". 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. 60 days; or C. The vehicle is replaced, repaired or returned. 4. Our payment is limited to the lesser of the following amounts: a. Necessary and actual expenses incurred; or $1,500 maximum. 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 covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the PHYSICAL DAMAGE COVERAGE Coverage Extension. COMMUNICATION EQUIPMENT COVERAGE 1. COVERAGE a. We will pay, with respect to a covered "auto" described in the Vehicle Schedule or Declarations, for "loss" to any electronic equipment that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. This coverage applies only if the equipment is permanently installed in the covered "auto" at the time of "loss". Equipment which is removable from a housing unit which is permanently installed in the covered "auto" and is designed to be solely operated by use of the power from the "auto's" electrical system in or upon the covered "auto" is considered to be permanently installed. b. We will pay, with respect to a covered "auto" described in the Vehicle Schedule or Declarations, for "loss" to any accessories used with the electronic equipment described in paragraph 1 a. above. However, this does not include tapes, records or discs. 2. LIMIT OF INSURANCE With respect to this coverage under this endorsement, the LIMIT OF INSURANCE provision for PHYSICAL DAMAGE COVERAGE is replaced by the following: a. The most we will pay for all "loss" to audio, visual or data electronic equipment and any accessories used with this equipment as a result of any one "accident" is the lesser of: (1) The actual cash value of the damaged or stolen equipment as of the time of the "loss"; (2) The cost of repairing or replacing the damaged or stolen equipment with other equipment of like kind or quality; or Page 2 of 7 Argo Group US AG 1600 (12-09) Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. BUSINESS AUTO (3) $2,500. b. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of the "loss". 3. DEDUCTIBLE No deductibles apply to this coverage. E. TAPES, RECORDS AND DISCS COVERAGE 1. Under Comprehensive Coverage we will pay for "loss' to tapes, records, discs or other similar devices used with audio, visual or data electronic equipment. We will pay only if the tapes, records, discs or other similar devices: a. Are your property; and b. Are in a covered "auto' showing visible signs of forcible entry at the time of "loss". 2. The most we wdl pay for "loss' is $250. 3. PHYSICAL DAMAGE COVERAGE provisions apply to this coverage, except for any deductible. F. EXTENDED TOWING COVERAGE In SECTION III - PHYSICAL DAMAGE COVERAGE, the following is amended: Paragraph A.2. is replaced by the following: 2. Towing a. We will pay up to the limit shown in b. for towing and labor costs incurred each time an "auto" is disabled. However, the labor must be performed at the place of disablement. b. Limit of Insurance (1) The most we will pay per disablement of a private passenger type "auto" is $75. (2) The most we will pay per disablement of an "auto" not of the private passenger type is $500. G. EXTENDED GLASS COVERAGE In SECTION III - PHYSICAL DAMAGE COVERAGE, the following is amended: Paragraph A.3.a. is replaced by the following: a. Glass breakage. If "loss" is applicable to only the glass of a covered "auto" and the glass is repaired rather than replaced, the deductible will be waived. AG 1600 (12-09) Argo Group US Page 3 of 7 Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. H. AIRBAG COVERAGE In SECTION III - PHYSICAL DAMAGE COVERAGE, the following is amended: In B. Exclusions, mechanical breakdown does not apply to an unintended discharge of an airbag. Coverage is excess over any other collectable insurance or warranty specifically designed to coverage such an occurrence. I. ADDITIONAL INSURED AND WAIVER OF SUBROGATION COVERAGE REQUIRED BY "INSURED CONTRACT", WRITTEN AGREEMENT OR PERMIT In SECTION II — LIABILITY COVERAGE, item a.1. Who Is An Insured, the following are added as "insureds": f. Any person, organization, trustee, estate or governmental entity with respect to the operation, maintenance or use of a covered "auto" if: (1) You are obligated to add that person, organization, trustee, estate or governmental entity as an additional "insured" to this policy by: (a) An expressed provision of an "insured contract" or written agreement; or (b) An expressed condition of a written permit issued to you by a governmental or public authority. (2) The "bodily injury" or "property damage" is caused by an "accident" which takes place after: (a) You executed the "insured contract' or written agreement; or (b) The permit has been issued to you. The following paragraph is added to SECTION IV — BUSINESS AUTO CONDITIONS: We waive any right of recovery we may have against any additional "insured" under paragraph f. above, but only as respects "loss" arising out of the operation, maintenance or use of a covered "auto" pursuant to the provisions or conditions of the "insured contract", written agreement or permit. J. HIRED CAR PHYSICAL DAMAGE The following replaces item 5.b. of B. General Conditions of SECTION IV — BUSINESS AUTO CONDITIONS: b. Coverage Extension. If Comprehensive, Specified Causes of Loss or Collision coverage is provided by this policy, you may extend that coverage to apply to Physical Damage "loss" to hired "autos' We will provide coverage equal to the broadest coverage available to any covered "auto" shown in the Declarations. This coverage is subject to the following provisions: (1) The most we will pay for "loss" to a hired "auto" in any one "accident" is the lesser of: (a) $50,000; or (b) The actual cash value of the damaged or stolen property as of the time of the "loss;" or (c) The actual cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. Page 4 of 7 Argo Group US AG 1600 (12-09) Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. it BUSINESS AUTO (2) For each hired "auto," our obligation to pay for "loss" will be reduced by a deductible equal to the largest deductible applicable to any owned "auto" for that coverage. No deductible will be applied to "loss" caused by fire or lightning. (3) We will also pay up to $500 per "accident" for loss of use of the hired "auto" if it results from an "accident" for which you are legally liable. The lessor must suffer an actual financial loss for this coverage to apply. (4) Hired Car Physical Damage Coverage provided by this extension is excess over any other collectible insurance. Under SECTION III — PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions, item b. Loss Of Use Expenses is deleted in its entirety and replaced by the following: b. Loss of Use Expenses For Hired Auto Physical Damage, we will pay expenses for which an "insured" becomes 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 expenses if caused by: (1) Other than collision only 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 $30 per day, subject to a maximum of $900 per "accident." This extension of coverage does not apply to any "auto" you hire or borrow from: (1) any of your "employees"; (2) partners (if you are a partnership); (3) members (if you are a limited liability company); or (4) members of their households. LEASE OR LOAN PHYSICAL DAMAGE COVERAGE EXTENSION In the event of a total "loss" to a covered owned "auto" that does not exceed three model years old, from the current model year, and is designated in the Vehicle Schedule or the Declarations and shown as having a loss payee or additional insured — lessor, SECTION III - PHYSICAL DAMAGE COVERAGE, C. Limit of Insurance, Is replaced by the following: We will pay the greater of: 1. "Outstanding indebtedness" under the initial finance agreement for a covered "auto" and its equipment; or 2. AG 1600 (12-09) The actual cash value of the damages or stolen property as of the time of the "loss"_ Argo Group US Page 5 of 7 Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. "Outstanding indebtedness" means the amount you owe on the finance agreement at the time of 'loss" less any amounts representing taxes; overdue payments; penalties, interest or charges resulting from overdue payments; additional mileage charges; excess wear and tear; or lease termination fees. We will not pay any administrative costs or overhead fees assessed by the finance company who has leased the covered 'auto" to you. L. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS SECTION IV — CONDITIONS, A.2. Loss Conditions — Duties In the Event of Accident, Claim, Suit or Loss, paragraph a. is replaced by the following: a. In the event of "accident", claim, "suit" or "loss", you must give us or our authorized representative prompt notice of the "accident" or "loss" when the "accident" or "loss" is known to: (1) You or your authorized representative, If you are an individual; (2) A partner, or an authorized representative, if you are a partnership; (3) A member, or an authorized representative, if you are a limited liability company; or (4) An executive officer, insurance manager or authorized representative, if you are a corporation. Knowledge of an "accident", claim' "suit" or "loss' by other employee(s) does not imply you also have such knowledge. Notice to us should include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. Additionally, your rights afforded under this policy shall not be prejudiced if you fail to give us notice of an "occurrence", offense, claim or "suit", solely due to your reasonable and documented belief that the "bodily injury" or 'property damage" is not covered under this policy. M. AUTO MEDICAL PAYMENTS If the "insured" has purchased Auto Medical Payments coverage, the limit of liability for those vehicles designated in the policy as having this coverage will be the greater of: 1. $5,000; or 2. The amount shown in the Declarations. N. UNINTENTIONAL ERRORS AND OMISSIONS The following is added to SECTION IV — CONDITIONS, B GENERAL CONDITIONS, item 2. Concealment, Misrepresentation, or Fraud: Failure of the "insured" to disclose all hazards existing as of the inception date of the policy that you have knowledge of shall not prejudice the "insured" with respect to the insurance provided by this policy, provided such failure to disclose any hazard or any omission of a known hazard is not intentional. O. REVISED DEFINITION OF "BODILY INJURY" Page 6 of 7 Argo Group US AG 1600 (12-09) Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. BUSINESS AUTO SECTION V — DEFINITIONS, definition C. "Bodily injury" is deleted and replaced with the following: 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. "Bodily injury" includes mental anguish or other mental injury, but only to the extent that it is directly resulting from bodily injury, sickness or disease sustained by that person. AG 1600 (12-09) Argo Group US Page 7 of 7 Includes Copyrighted Material of ISO Properties, Inc. With Its Permission. Copyright, ISO Properties, Inc. Policy No. LAN2901414-00 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION BLANKET - AS REQUIRED BY WRITTEN CONTRACT This endorsement modifies Insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART Policy Effective Date 02/22/2019 (Policy Expiration Date 02/22/2020 Named Insured Conserve Landcare Inc. If the required policy Information is not shown above, it will be shown in the Declarations. SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations Any person or organization with whom you agreed, because of a written "insured contract", written agreement or permit, is an Insured during the policy period. A. Section 11 — Who Is An Insured is amended to Include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions: or 2. The acts or omissions of those acting on your behalf; In the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and Blanket as required by written `insured contract" 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional Insured. AG CG 2010 B 1216 Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 2 with its permission. B. With respect to the insurance afforded to these additional Insureds, the following additional exclusions apply: This Insurance does not apply to "bodNy injury" or "property damage" occurring after: 1. 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 2. 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. C. With respect to the insurance afforded to these additional Insureds, 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. Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc. AG CG 2010 B 1216 with its permission. COMMERCIAL GENERAL LIABILITY CG 20 01 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART The following is added to the Other Insurance Condition and supersedes any provision 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: (1) The additional insured is a Named Insured under such other insurance; and (2) 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. CG 20 01 0413 0 Insurance Services Office, Inc., 2012 Page 1 of 1 , 41. T.0-7► I - I Irl, w -- Fan,- I Rb.'Ayo