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MEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL JIM BELL, DIRECTOR OF PUBLIC WORKS 0 cI. // .,// <.? z-q /0 <7 JULY 7,2009 CONSTRUCTION CONTRACT FOR RESIDENTIAL STREET OVERLAY AND SLURRY SEAL PROJECT (AREA 6 AND SECTION OF AREA 8) REVIEWED: CAROLYN LEHR, CITY MANAGER c9- PROJECT MANAGER: BINDU VAISH, ASSOCIATE ENGINEER flcJ RECOMMENDATIONS: 1. Approve the project construction Plans and Specifications. 2. Award a contract for the construction of the Residential Street Overlay and Slurry Seal Project to All American Asphalt, Inc. for the contract bid amount of $990,686.80 and authorize staff to spend up to an additional $99,068 for possible extra work or unforeseen conditions, for a total project authorization of $1,089,754.80. 3. Authorize the Mayor and City Clerk to execute a contract with All American Asphalt, Inc. BACKGROUND The City traditionally implements an annual residential overlay and slurry seal project as recommended by our Pavement Management System (PMS). The streets included in this year's program, includes Area 6 and a portion of Area 8 (neighborhoods near Palos Verdes Drive East and Palos Verdes Drive South), follow the recommendations of the Pavement Management Program. The list of candidate streets is included as Exhibit A of this report. ANALYSIS The project was advertised and sealed bids were received and opened at 11:00 a.m. on June 8, 2009. Of the eight bids received, All American Asphalt, Inc. submitted the lowest responsive bid and one bid, from Ortiz Asphalt Paving, Inc., was determined to be non responsive due to inconsistencies in the bid proposal. Table 1 summarizes the bid results: W:\Pam\Staff Reports\2009\07-07-09\FY08-09 Residential Overlay & Slurry\RPVCCA_SR_2008_07_07_res_str_overlay area 6 and sec of area8.doc 6-1

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Page 1: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

MEMORANDUM RANCHO PALOS VERDES

TO:FROM:DATE:

SUBJECT:

HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

JIM BELL, DIRECTOR OF PUBLIC WORKS 0 cI. //.,// <.? z-q /0 <7

JULY 7,2009

CONSTRUCTION CONTRACT FOR RESIDENTIAL STREET OVERLAY ANDSLURRY SEAL PROJECT (AREA 6 AND SECTION OF AREA 8)

REVIEWED: CAROLYN LEHR, CITY MANAGER c9-PROJECT MANAGER: BINDU VAISH, ASSOCIATE ENGINEER flcJ

RECOMMENDATIONS:

1. Approve the project construction Plans and Specifications.

2. Award a contract for the construction of the Residential Street Overlay and SlurrySeal Project to All American Asphalt, Inc. for the contract bid amount of$990,686.80 and authorize staff to spend up to an additional $99,068 forpossible extra work or unforeseen conditions, for a total project authorization of$1,089,754.80.

3. Authorize the Mayor and City Clerk to execute a contract with All AmericanAsphalt, Inc.

BACKGROUND

The City traditionally implements an annual residential overlay and slurry seal project asrecommended by our Pavement Management System (PMS). The streets included inthis year's program, includes Area 6 and a portion of Area 8 (neighborhoods near PalosVerdes Drive East and Palos Verdes Drive South), follow the recommendations of thePavement Management Program. The list of candidate streets is included as Exhibit Aof this report.

ANALYSIS

The project was advertised and sealed bids were received and opened at 11:00 a.m. onJune 8, 2009. Of the eight bids received, All American Asphalt, Inc. submitted thelowest responsive bid and one bid, from Ortiz Asphalt Paving, Inc., was determined tobe non responsive due to inconsistencies in the bid proposal. Table 1 summarizes thebid results:

W:\Pam\Staff Reports\2009\07-07-09\FY08-09 Residential Overlay &Slurry\RPVCCA_SR_2008_07_07_res_str_overlay area 6 and sec of area8.doc6-1

Page 2: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

Table 1Bid Summary

CONTRACTOR BID AMOUNT

All American Asphalt $990,686.80

Excel Paving Company $1,077,829.40

Silvia Construction, Inc. $1,086,446.40Sequel Contractors, Inc. $1,097,586.00

Hardy and Harper, Inc. $1,121,000.00Sully Miller Contracting Co. $1 ,131 ,11 0.40

Imperial Paving Company $1,209,355.80

Ortiz Asphalt PavinQ, Inc* $1,226,145.84*Bld was considered non-responsive

Staff has previously worked with All American Asphalt, Inc. on paving projects of asimilar nature and found their performance satisfactory. Additionally, the referencesprovided by All American Asphalt, Inc. were verified and all reported satisfactoryperformances for past projects. The bid documents and bonds are in order and theircontractor's license is current.

In addition to paving the residential streets in Area 6 and a portion of Area 8, Staff isrecommending to include paving the western portion of the City Hall parking lot andaccess road. The cost to include this work under the Annual Residential Overlay andSlurry Seal project will result in cost savings to the City.

CONCLUSION

Approving staffs recommendations will award a construction contract to All AmericanAsphalt, Inc., for the Area 6 and section of area 8 FY 08-09 Residential Overlay andSlurry Seal Program. Construction is anticipated to begin in August 2009 and isexpected to be completed by October 2009.

ALTERNATIVES

An alternative is to reject all construction bids and re-advertise the construction project.This alternative could delay the project by several months and potentially result inhigher bid results.

FISCAL IMPACT

Funding is available for the authorized expenditure amount of $1,089,754.80 from theFY 08-09 appropriation for the Residential Street Overlay project. Staff will request thisamount to be carried forward from FY 08-09 to FY 09-10. The funding source isGeneral funds.

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Page 3: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

The City Attorney has reviewed and approved the standard construction contractattached.

Attachments:Exhibit A: Exhibit of streetsExhibit B: All American Inc., Proposal/BidExhibit C: All American Inc., Construction Contract

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Page 4: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

EXHIBIT A

¥Jr£flik%%#@JtllihiI@lr{~ x ..:- ~~ :. :? .7.: .' .~r::':; »., ...::-....~. ,:. . .... ~. , . :' -Pflf%?ITItmJf£J¥&.fll

STREETS TO FROMAVENGERPL DAUNTLESS DR ENDBARKENTINE RD PALOSVERDESDRSFRONTAGERD SEACOVE DR (East)COASTSITE DR SEACOVE DR (West) NORTH ENDCONQUEROR DR PALOS VERDES DR S DAUNTLESS DRCROWNVIEW DR HIGHPOINT RD WEST ENDDAUNTLESS DR ADMIRABLE DR CONQUEROR DRGRANDPOINT LN HIGHPOINT RD SOUTH ENDHELMPL DAUNTLESS DR ENDHIGHPOINT RD CROWNVIEW DR SOUTH ENDPALOS VERDES DR S FRONTAGE RD SCHOONER DR CONQUEROR DRSCHOONER DR DAUNTLESS DR ENDSEACOVE DR (West) NANTASKET DR COASTSITE DRSEACOVE DR (East) WEST END BARKENTINE RDVALORPL DAUNTLESS DR END

, .::::: ...:'0/;:.#_$ , x·· mr %. •.~!1fd..x.r;,',."/.m» ,

.., . t/M x Ii WlADMIRABLE Cul-De-Sac ADMIRABLE DR WEST ENDADMIRABLE DR DAUNTLESS DR CONQUEROR DRALBEROCT PALOS VERDES DR S NORTH ENDARROWROOT LN BARKENTINE RD EAST ENDBARKENTINE RD PALOS VERDES DR S NORTH ENDBEACHVIEW DR NANTASKET DR COASTSITE DRCHANNELVIEW CT SEAWOLFDR WEST ENDCLIPPERRD PALOS VERDES DR S SEACOVE DR (East)CROWNVIEW DR PALOS VERDES DR E HIGHPOINT RDEXULTANT DR DAUNTLESS DR CONQUEROR DRKNOLL VIEW DR CROWNVIEW DR WEST ENDNANTASKETDR SEACOVE DR (West) BEACHVIEW DRNUVOLACT ALBEROCT EAST ENDPACKETRD PALOS VERDES DR S FRONTAGERD SEACOVE DR (East)PALOS VERDES DR (West) WEST END EAST ENDSANDYPOINT CT SEAHILLDR EAST ENDSCHOONER DR DAUNTLESS DR PALOS VERDES DR SSEACOVE DR (E) BARKENTINE RD PALOS VERDES DR SSEAHILLDRN PALOS VERDES DR S BEACHVIEW DRSEAHILLDRS BEACHVIEW DR VISTA PACIFICASEALPOINT CT SEAHILLDR EAST ENDSEAWOLFDR PALOS VERDES DR S BEACHVIEW DRSOL VISTALN SUNNYSIDE RIDGE RD SOUTH ENDSTALWART DR DAUNTLESS DR EXULTANT DRSUNNYSIDE RIDGE RD PALOS VERDES DR E EAST ENDTARRAGONRD BARKENTINE RD WEST ENDTRAMONTO DR PALOS VERDES DR S NUVOLACTVIA BARON WEST END EAST ENDVIA PALACIO SEACOVE DR (West) NORTH ENDVISTA PACIFICA WEST END EAST ENDPALOS VERDES DR S FRONTAGE RD W ofPACKET RD E ofBARKENTINE RD.PALOSVERDESDRSFRONTAGERD SCHOONER DR WEST END 6-4

Page 5: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

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EXHIBITB

BID SCHEDULEINCLUDES ALL WORK TO BE DONE ON

RESIDENTIAL STREETS OVERLAY AND SLURRY SEAL PROJECT FISCAL YEAR2008~2009AREA 6 AND SOME STREETS FROM AREA 8

IN THECITY OF RANCHO PALOS VERDES

BID SHEET

NAME OF COMPANY: AI! Aooevj can A~pha If­

To the Honorable Mayor and Members ofthe City Council:

In compliance with the Notice Inviting Sealed Bids, the undersigned hereby agrees to enter into a contractto furnish all labor, materials, equipment and supplies for the project identified as Residential StreetsOverlay and Slurry Seal Project Fiscal Year 2008·2009 Area 6 and Some Streets from Area 8 inaccordance with the specifications and plans in the Contract Documents which are on file in the office ofthe Director of Public Works of the City of Rancho Palos Verdes to the satisfaction and under thedirection of the Director ofPublic Works at the following prices:

BASE BID

ITEMDESCRIPTION

ESTIMATEDUNIT

PRICE EXTENDEDNO. QUANTITY llr:!!:r AMOUNT

1 Traffic Control 1 LS $5c9CrrJ $ s;:)lf'r)-

2Re~stablish Centerline Tie and Centerline

45 EACH$ c2::iJ- $ !JdSlJ-Monument, including filing ofcomer record.

Remove and construct Curb Ramp per standard3 plan, including curb, gutter, and retaining curb 30 EACH $ $

and adjacent sidewalk ifnecessary. . :J.:Jro- 02t.aCCO-

4Install Root Barrier along the back ofnew

109 LF$ dLJt- $ d-.-634-curbs adjacent to root removals

5Removing existing and construct Curb and

309 LF $ 3/- $q57q-Gutter per detail on Plan Sheet No.2.

6 Remove and Replace PCC Cross Gutter 2,600 SF $ 66t- $ C}3l.cCO-7 Remove and replace PCC Local Depression 20 SF $ ~\- $ Lf:Ji:J-

Remove 5-inches ofExisting Pavement Section8 and Construct 5-inch Deep Base Repair (3/4" 17,826 SF $ $

Max) 3- 50472 -Remove 5-inches ofExisting Pavement Section

9 and Construct 5-inch Deep Base Repair (1/2" 8,340 SF $ 3- $.,25D..:20-Max)

6-inch Deep Base Repair in Root Damage10 Areas and Adjacent to New PCC 1,127 SF $ Jq- $.21,//3-

Improvements (1/2" Max)

11Excavate additional depth for unsuitable

50 CY $ 5Lj- $~lCO-material

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8

TOTAL BASE BID AMOUNT IN WORDS

fl iM 1VYvJ.red nl~ <.JhNS1fl11 Sid JvwtY'll :ei1h!f'y~ ~ 80/1 (1/)-

ITEMDESCRIPTION

ESTIMATEDUNIT

PRICE EXTENDEDNO. QUANTITY UNIT AMOUNT

12 2~inch Uniform Depth Coldmill in Swale &2,377 SY $ lo3CJ2 $ 3~;3QrJlc 1..Shoulder Areas

13 Variable Depth Co1dmill 48528 SY $ I p oeo $ C1lSCfCl8o( I)l .

14 Crack Routing and Sealing 1 LS $c:2.S:O- $ ;;;lSOO-15 Install Redwood Header 2,730 LF $ 5- $/3(QS()-

16Construct 2-inch Thick Asphalt-Concrete

6,357 TON $02.0- $ 381 'f:Jo-Surface Course

17 Construct 2-inch Asphalt-Concrete Surface281 TON $ (eO- $ !(P8CeO'-Course in AC Swale and Shoulder Areas

18 Type I Slurry Seal 582 ELT $ ,qO'- $ / {tJ5f(J;O-19 Adjust Manhole Frame and Cover to Grade. 70 EACH $ 3m- $ 021 OCO-20 Adjust Water Valve Frame and Cover to Grade. 7 EACH $;(50- $ J ',SO-21 Adjust Monument Well Frame and Cover to

1 EACH $3SD- $ 3SD-Grade.

22 Paint House Number 732 EACH $/3050 $ 9882-23 Thermoplastic Traffic Striping, Marking, and

1 LS $:25/70- $,;)5J,D'-Raised Pavement Markers

TOTAL BASE BID = $ qQO 108U1o 80

P~4 6-6

Page 7: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

EXHIBIT C

CITY OF RANCHO PALOS VERDES

CONTRACT FOR:

RESIDENTIAL STREETS OVERLAY AND SLURRY SEAL PROJECTFISCAL YEAR 2008-2009 AREA 6 AND SOME STREETS FROM AREA 8

This Agreement is made and entered this day of , 200_, by and between theCITY OF RANCHO PALOS VERDES, hereinafter referred to as "City" and All American Asphalt,hereinafter referred to as "Contractor."

WHEREAS, Contractor and Contractor's Surety are providing the bonds attached hereto and incorporatedby this reference;

WHEREAS, City desires to contract with Contractor to perform the services detailed in this contract,including the Proposal; and

WHEREAS, Contractor has represented that it is fully qualified to assume and discharge suchresponsibility.

NOW, THEREFORE, the parties hereto do agree as follows:

1. Scope of Services. City hereby employs Contractor to perform the work and provide the servicesand materials for the project identified as: Residential Streets Overlay and Slurry SealProject Fiscal Year 2008-2009 Area 6 and Some Streets From Area 8, as described inthese Plans and Specifications, attached hereto as Exhibit "A" and incorporated herein by thisreference, including miscellaneous appurtenant work. Such work shall be performed in a goodand workmanlike manner, under the terms as stated herein and in these Plans and Specifications,and in accordance with the latest edition of the Joint Cooperative Committee, SouthernCalifornia Chapters of the American Public Works Association and the Associated GeneralContractors of America, document entitled "Standard Specifications." In the event of anyconflict between the terms of this Agreement and any of the above-referenced documents, theterms of this Agreement shall be controlling.

2. Term of contract. This Agreement shall commence on and shall terminate on

3. Compensation. In consideration of the services rendered hereunder, Contractor shall be paidaccording to the prices as submitted on the Bid Sheet of the Proposal, attached hereto as a part ofthese Plans and Specifications in Exhibit "A" and in accordance with the Special Provisions.

4. Time. Upon receipt of written Notice to Proceed from the City, Contractor shall perform withdue diligence the services requested by the City and agreed on by Contractor. Time is of theessence in this Agreement.

5. Independent Contractor. Contractor is and shall at all times remain, as to the City, a whollyindependent contractor. Neither the City nor any of its agents shall have control over the conductof Contractor or any of the Contractor's employees, except as herein set forth, and Contractor isfree to dispose of all portions of its time and activities which it is not obligated to devote to theCity in such a manner and to such persons, firms, or corporations at the Contractor wishes except

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Page 8: MEMORANDUM RANCHO PALOS VERDES TO · memorandum rancho palos verdes to: from: date: subject: honorable mayor and members of the city council jim bell, director of public works 0ci..,

as expressly provided in this Agreement. Contractor shall have no power to incur any debt,obligation, or liability on behalf of the City or otherwise act on behalf of the City as an agent.Contractor shall not, at any time or in any manner, represent that it or any of its agents, servantsor employees, are in any manner agents, servants or employees of City. Contractor agrees to payall required taxes on amounts paid to Contractor under this Agreement, and to indemnify and holdthe City harmless from any and all taxes, assessments, penalties, and interest asserted against theCity by reason of the independent contractor relationship created by this Agreement. Contractorshall fully comply with the workers' compensation law regarding Contractor and its employees.Contractor further agrees to indemnify and hold the City harmless from any failure of Contractorto comply with applicable workers' compensation laws. The City shall have the right to offsetagainst the amount of any fees due to Contractor under this Agreement any amount due to theCity from Contractor as a result of its failure to promptly pay to the City any reimbursement orindemnification arising under this Article.

6. Assignment. Neither this Agreement nor any part thereof shall be assigned by Contractor withoutthe prior written consent of the City. Any such purported assignment without written consentshall be null and void, and Contractor shall hold harmless, defend and indemnify the City and itsofficers, officials, employees, agents and representatives with respect to any claim, demand oraction arising from any unauthorized assignment.

7. Termination. This Agreement may be canceled by City at any time without penalty upon thirty(30) days' written notice. In the event of termination without fault of Contractor, City shall payContractor for all services rendered prior to date of termination, and such payment shall be in fullsatisfaction ofall services rendered hereunder.

8. Workers' Compensation Insurance. California Labor Code Sections 1860 and 3700 provide thatevery contractor will be required to secure the payment of compensation to its employees. Inaccordance with the provisions of California Labor Code Section 1861, the Contractor herebycertifies as follows:

"I am aware of the provisions of Section 3700 of the Labor Code whichrequire every employer to be insured against liability for workers'compensation or to under take self-insurance in accordance with theprovisions of that code, and I will comply with such provisions beforecommencing the performance of the work of this contract."

9. Prevailing Wages. Contractor acknowledges the provisions of the State Labor Code requiringevery employer to be insured against liability for workers' compensation, or to undertake self­insurance in accordance with the provisions of that code and certifies compliance with suchprovisions. Contractor further acknowledges the provisions of the State Labor Code requiringevery employer to pay at least the minimum prevailing rate of per diem wages for each craft,classification, or type of workman needed to execute this contract.

10. Contractor's License. Contractor shall at all times during the term of this Agreement carry,maintain, and keep in full force and effect a Class A License.

11. Incorporation by Reference. All of the following documents are attached hereto and incorporatedherein by this reference: City of Rancho Palos Verdes Instructions for Execution of Instruments;Insurance Requirements for City of Rancho Palos Verdes Public Works Contract; Payment Bond(Labor and Materials); Performance Bond; Workers' Compensation Certificate of Insurance;Agreement to Comply with California Labor Law Requirements; Indemnification and HoldHarmless Agreement and Waiver of Subrogation and Contribution; Additional Insured

C-2R6876-0001/1148275v3

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Endorsement (Comprehensive General Liability); Additional Insured Endorsement (AutomobileLiability); and Additional Insured Endorsement (Excess Liability).

12. Conflicts of Interest. Contractor agrees not to accept any employment or representation duringthe term of this Agreement or within twelve (12) months after completion of the work under thisAgreement which is or may likely make Contractor "financially interested" (as provided inCalifornia Government Code Sections 1090 and 87100) in any decisions made by City on anymatter in connection with which Contractor has been retained pursuant to this Agreement.

13. Suit; Recovery of Attorney Fees & Costs. Should either party to this Agreement bring legalaction against the other, the validity, interpretation, and performance of this Agreement shall becontrolled by and construed under the laws of the State of California. Venue for any such actionrelating to this Agreement shall be in the Los Angeles County Superior Court. Furthermore, ifany legal action or other proceeding, including action for declaratory relief, is brought for theenforcement of this Agreement or because of an alleged dispute, breach, default ormisrepresentation in connection with this Agreement, the prevailing party shall be entitled torecover reasonable attorneys' fees, experts' fees, and other costs, in addition to any other relief towhich the party may be entitled.

14. Titles. The titles used in this Agreement are for general reference only and are not part of theAgreement.

15. Entire Agreement. This Agreement, including any other documents incorporated herein byspecific reference, represents the entire and integrated agreement between City and Contractorand supersedes all prior negotiations, representations or agreements, either written or oral. ThisAgreement may be modified or amended, or provisions or breach may be waived, only bysubsequent written agreement signed by both parties.

16. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation ofany matter herein, the interpretation of this Agreement shall not be resolved by any rules ofinterpretation providing for interpretation against the party who causes the uncertainty to exist oragainst the party who drafted the Agreement or who drafted that portion of the Agreement.

17. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of anyone or more of theconditions of performance under this Agreement shall not be a waiver of any other condition ofperformance under this Agreement. In no event shall the making by the City of any payment toContractor constitute or be construed as a waiver by the City of any breach of covenant, or anydefault which may then exist on the part of Contractor, and the making of any such payment bythe City shall in no way impair or prejudice any right or remedy available to the City with regardto such breach or default.

18. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwiseunenforceable by a court of competent jurisdiction, the remaining provisions of this Agreementshall continue in full force and effect.

19. Notice. Except as otherwise required by law, any notice, request, direction, demand, consent,waiver, approval or other communication required or permitted to be given hereunder shall not beeffective unless it is given in writing and shall be delivered (a) in person or (b) by certified mail,postage prepaid, and addressed to the parties at the addresses stated below, or at such otheraddress as either party may hereafter notify the other in writing as aforementioned:

To City:

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Jim Bell, Director of Public WorksCity of Rancho Palos Verdes30940 Hawthorne Blvd.Rancho Palos Verdes, CA 90275

To Contractor:Responsible Person: _All American AsphaltP.O. Box 2229Corona, CA 92878-2229

A party may change its address by giving written notice to the other party. Thereafter, any noticeor other communication shall be addressed and transmitted to the new address. If sent by mail,any notice, tender, demand, delivery or other communication shall be deemed effective three (3)business days after it has been deposited in the United States mail. For purposes ofcommunicating these time frames, weekends and federal, state, religious, County of Los Angelesor City holidays shall be excluded. No communication via facsimile or electronic mail shall beeffective to give any such notice or other communication hereunder.

IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year firstabove written.

Dated:------------

Dated: _

ATTEST:

CITY CLERK

R6876-0001/1148275v3C-4

All American Asphalt ("Contractor"):

BY: _

BY: _

The City of Rancho Palos Verdes,A Municipal Corporation ("City")

BY: _

MAYOR

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CITY OF RANCHO PALOS VERDES

INSTRUCTIONS FOR EXECUTION OF INSTRUMENTS

THIS IS INSTRUCTION ONLY - IT IS NOT TO BE SIGNED OR USED IN CONJUNCTION WITHTHE AGREEMENT OR ANY OTHER FORMS THAT MUST BE TURNED INTO THE CITY OFRANCHO PALOS VERDES - IT IS SIMPLY A FORMAT TO USE WHEN FILLING OUTDOCUMENTS.

1. By an Individual. The individual must sign the instrument, and if he/she is doing business undera fictitious name, the fictitious name must be set forth. The signature must be acknowledgedbefore a Notary Public, using the proper form of acknowledgment.

2. By a Partnership. The name of the partnership must be set forth followed by the signatures ofless than all of the partners will be acceptable only if submitted with evidence of authority to acton behalf of the partnership. The signatures must be acknowledged before a Notary Public, usingthe proper form of acknowledgment.

3. By a Corporation. The name of the corporation must be set forth, followed by the signatures ofthe President or Vice President and Secretary or Assistant Secretary. The signatures must beacknowledged before a Notary Public, using in substance the following form of acknowledgment.

4. By a Surety. The name of the surety must be set forth, followed by an authorized signature. Thesignatures must be acknowledged before a Notary Public, using the proper form ofacknowledgment.

STATE OF )) SS.

COUNTY OF )

On , 20__, before me, the undersigned, appeared _known to me to be the President or Vice President and known to be to be the Secretary or AssistantSecretary of the corporation that executed the within instrument, and acknowledged to me that suchcorporation executed the within instrument pursuant to its by-laws or a resolution of its City Council.

WITNESS my signature and seal.

Notary Public

(Seal)

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INSURANCE REQUIREMENTS FOR CITY OF RANCHO PALOS VERDESPUBLIC WORKS CONTRACT

The Contractor shall at all time during the term of this Agreement carry, maintain, and keep in full forceand effect, with an insurance company admitted to do business in California and approved by the City (1)a policy or policies of broad-form comprehensive general liability insurance with minimum limits of$5,000,000.00 combined single limit coverage against any injury, death, lose, or damage as a result ofwrongful or negligent acts by the Contractor, its officers, employees, agents, and independent contractorsin performance of services under this Agreement; (2) property damage insurance with a minimum limit of$1,000,000.00; (3) automotive liability insurance with a minimum combined single limits coverage of$5,000,000.00; and (4) workers' compensation insurance with a minimum limit of $1,000,000.00 or theamount required by law, whichever is greater. The City, its officers, employees, attorneys, and volunteersshall be named as additional insured on the policy(ies) as to comprehensive general liability, automobileliability, property damage, and workers' compensation coverages.

1. Acceptable insurance coverage shall be placed with carriers admitted to write insurancein California, or carriers with a rating of, or equivalent to, A:VII by A.M. Best &Company. Any deviation from this rule shall require specific approval, in writing, fromthe City.

2. All insurance policies shall provide that the insurance coverage shall not be non-renewed,canceled, reduced, or otherwise modified (except through addition of additional insuredto the policy) by the insurance carrier without the insurance carrier giving the City thirty(30) days prior written notice thereof. The Contractor agrees that it will not cancel,reduce or otherwise modify said insurance coverage.

3. The Contractor agrees that if it does not keep the aforesaid insurance in full force andeffect, and such insurance is available at a reasonable cost, the City may take out thenecessary insurance and pay the premium thereon, and the repayment thereof shall bedeemed an obligation of the Contractor and the cost of such insurance may be deducted,at the option of the City, from payments due the Contractor.

4. The Contractor shall submit to the City (1) insurance certificates indicating compliancewith the minimum workers' compensation insurance requirements above, and (2)insurance policy endorsements above, not less than one (1) day prior to beginning ofperformance under this Agreement. Endorsements must be executed on the City'sappropriate standard forms entitled "Additional Insured Endorsement," copies of whichare attached hereto.

C-7R6876-0001/1148275v3

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Bond No. _

PAYMENT BOND(LABOR AND MATERIALS)

KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the _

("Public Agency"), has awarded to _

(Name and address ofContractor)

("Principal"), a contract (the "Contract") for the work described as follows: Residential StreetsOverlay and Slurry Seal Project Fiscal Year 2008-2009 Area 6 and Some Streets FromArea 8

WHEREAS, Principal is required under the terms of the Contract and the California Civil Code to securethe payment of claims of laborers, mechanics, materialmen, and other persons as provided by law.

NOW, THEREFORE, we, the undersigned Principal, and _

(Name and address ofSurety)

("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, areheld and firmly bound unto the Public Agency in the penal sum of _

Dollars ($ ), this amount being not less than one hundredpercent (100%) of the total contract price, in lawful money of the United States of America, for thepayment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators,successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, heror its heirs, executors, administrators, successors or assigns, or subcontractors shall fail to pay any of thepersons named in Section 3181 of the California Civil Code, or any amounts due under theUnemployment Insurance Code with respect to work or labor performed under the Contract, or for anyamounts required to be deducted, withheld, and paid over to the Employment Development Departmentfrom the wages of employees of the Principal and subcontractors pursuant to Section 13020 of theUnemployment Insurance Code, with respect to work or labor performed under the Contract, the Suretywill pay for the same in an amount not exceeding the penal sum specified in this bond; otherwise, thisobligation shall become null and void.

This bond shall inure to the benefit of any of the persons named in Section 3181 of the California CivilCode so as to give a right of action to such persons or their assigns in any suit brought upon the bond. Incase suit is brought upon this bond, Surety further agrees to pay all court costs and reasonable attorneys'fees in an amount fixed by the court.

Further, the Surety, for value received, hereby stipulates and agrees that no change, extension of time,alteration, addition or modification to the terms of the Contract, or of the work to be performedthereunder, or the specifications for the same, shall in any way affect its obligations under this bond, andit does hereby waive notice of any such change, extension of time, alteration, addition, or modification to

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the terms of the Contract or to the work or to the specifications thereunder. Surety hereby waives theprovisions of Califomia Civil Code' 2845 and 2849.

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IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for allpurposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date setforth below, the name of each corporate party being hereto affixed and these presents duly signed by itsundersigned representative(s) pursuant to authority of its governing body.

Dated:

"Principal"

By: _

Its

By: _

Its

(Seal)

APPROVED AS TO SURETY ANDPRINCIPAL AMOUNT

By: _

Insurance Administrator

"Surety"

By: _

Its

By: _

Its

(Seal)

APPROVED AS TO FORM:

RICHARDS, WATSON & GERSHONA Professional Corporation

By: _

Public Agency Attorney

Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of anyperson signing as attorney-in-fact must be attached.

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Bond No. _

PERFORMANCE BOND

KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the _

("Public Agency"), has awarded to _

(Name and address ofContractor)

("Principal"), a contract (the "Contract") for the work described as follows: RESIDENTIALSTREETS OVERLAY AND SLURRY SEAL PROJECT FISCAL YEAR 2008-2009 AREA6 AND SOME STREETS FROM AREA 8

WHEREAS, Principal is required under the terms of the Contract to furnish a bond for the faithfulperformance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and _

(Name and address ofSurety)

("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, areheld and firmly bound unto the Public Agency in the penal sum of _

Dollars ($ ), this amount being not less than thetotal contract price, in lawful money of the United States of America, for the payment of which sumwell and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, andassigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, heror its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, andwell and truly keep and perform all the undertakings, terms, covenants, conditions and agreements in theContract and any alteration thereof made as therein provided, on the Principal's part to be kept andperformed, all within the time and in the manner therein specified, and in all respects according to theirtrue intent and meaning, and shall indemnify and hold harmless the Public Agency, its officers, agents,and others as therein provided, then this obligation shall become null and void; otherwise, it shall be andremain in full force and effect.

In case suit is brought upon this bond, Surety further agrees to pay all court costs and reasonableattorneys' fees in an amount fixed by the court.

FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time,alteration, addition or modification to the terms of the Contract, or of the work to be performedthereunder, or the specifications for the same, shall in any way affect its obligations under this bond, andit does hereby waive notice of any such change, extension of time, alteration, addition, or modification tothe terms of the Contract or to the work or to the specifications thereunder. Surety hereby waives the

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provisions of California Civil Code '2845 and 2849. The City is the principal beneficiary of this bondand has all rights of a party hereto.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for allpurposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date setforth below, the name of each corporate party being hereto affixed and these presents duly signed by itsundersigned representative(s) pursuant to authority of its governing body.

Dated:

"Principal"

By: _

Its

By: _

Its

(Seal)

APPROVED AS TO SURETY ANDPRINCIPAL AMOUNT

By: _

Insurance Administrator

"Surety"

Its

By: _

Its

(Seal)

APPROVED AS TO FORM:

RICHARDS, WATSON & GERSHONA Professional Corporation

By: _

Public Agency Attorney

Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of anyperson signing as attorney-in-fact must be attached

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WORKERS' COMPENSATIONCERTIFICATE OF INSURANCE

WHEREAS, the City of Rancho Palos Verdes has required certain insurance to be provided by:

NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policyor policies described below to the following named insureds and that the same are in force at this time:

1. This certificate is issued to:

City of Rancho Palos VerdesCity Hall30940 Hawthorne BoulevardRancho Palos Verdes, California 90275

2. The insureds under such policy or policies are:

3. Workers' Compensation Policy or Policies in a form approved by the Insurance Commissioner ofCalifornia covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date

4. Said policy or policies shall not be canceled, nor shall there be any reduction in coverage or limitsofliability, unless and until thirty days' written notice thereof has been served upon the City Clerkof the City of Rancho Palos Verdes

By: _Its Authorized Representative

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AGREEMENT TO COMPLY WITHCALIFORNIA LABOR LAW REQUIREMENTS

[Labor Code 1720, 1773.8, 1775, 1776, 1777.5, 1813, 1860, 1861,3700]

The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with thefollowing provisions of California law:

1. Contractor acknowledges that this contract is subject to the provisions of Division 2, Part 7,Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public worksand the awarding public agency ("Agency") and agrees to be bound by all the provisions thereofas though set forth in full herein.

2. Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 whichrequires the payment of travel and subsistence payments to each worker needed to execute thework to the extent required by law.

3. Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and1775 concerning the payment of prevailing rates of wages to workers and the penalties for failureto pay prevailing wages. The Contractor shall, as a penalty to the Agency, forfeit not more thanfifty dollars ($50) for each calendar day, or portion thereof, for each worker paid less than theprevailing rates as determined by the Director of Industrial Relations for the work or craft inwhich the worker is employed for any public work done under the contract by Contractor or byany subcontractor.

4. Contractor agrees to comply with the provisions of California Labor Code Section 1776 whichrequire Contractor and each subcontractor to (1) keep accurate payroll records, (2) certify andmake such payroll records available for inspection as provided by Section 1776, and (3) informthe Agency of the location of the records. The Contractor is responsible for compliance withSection 1776 by itself and all of its subcontractors.

5. Contractor agrees to comply with the provisions of California Labor Code Section 1777.5concerning the employment of apprentices on public works projects, and further agrees thatContractor is responsible for compliance with Section 1777.5 by itself and all of itssubcontractors.

6. Contractor agrees to comply with the prOVISIOns of California Labor Code Section 1813concerning penalties for workers who work excess hours. The Contractor shall, as a penalty tothe Agency, forfeit twenty-five dollars ($25) for each worker employed in the execution of thecontract by the Contractor or by any subcontractor for each calendar day during which suchworker is required or permitted to work more than 8 hours in anyone calendar day and 40 hoursin anyone calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3of the California Labor Code.

7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required tosecure the payment of compensation to its employees. In accordance with the provisions ofCalifornia Labor Code Section 1861, Contractor hereby certifies as follows:

"I am aware of the provisions of Section 3700 of the Labor Code which requireevery employer to be insured against liability for workers' compensation or toundertake self-insurance in accordance with the provisions of that code, and 1will comply with such provisions before commencing the performance of thework of this contract."

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Date _

R6876-0001/1148275v3

Signature _

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INDEMNIFICATION AND HOLD HARMLESS AGREEMENT

AND WAIVER OF SUBROGATION AND CONTRIBUTION

Contract/Agreement/License/Permit No. or description: _

Indemnitor(s) (list all names):

To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, todefend, protect, indemnify, and hold harmless the City of Rancho Palos Verdes and its electedofficials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively"Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands,causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever,including fees of accountants, attorneys, or other professionals and all costs associated therewith(collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with,resulting from, or related to any act, failure to act, error, or omission of Indemnitor or any of its officers,agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants oremployees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, orrelated to the above-referenced contract, agreement, license, or permit (the "Agreement") or theperformance or failure to perform any term, provision, covenant, or condition of the Agreement, includingthis indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, orsubsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemniteesagainst any such negligence. This indemnity provision shall survive the termination of the Agreementand is in addition to any other rights or remedies which Indemnitees may have under the law. Payment isnot required as a condition precedent to an Indemnitee's right to recover under this indemnity provision,and an entry of judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right torecover under this indemnity provision. Indemnitor shall pay Indemnitees for any attorney's fees andcosts incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in thisinstrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to thelimited extent that the underlying Agreement is subject to Civil Code 2782(a) or (b) the contracting publicagency's active negligence to the limited extent that the underlying Agreement is subject to Civil Code2782(b). This indemnity is effective without reference to the existence or applicability of any insurancecoverages which may have been required under the Agreement or any additional insured endorsementswhich may extend to Indemnitees.

Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights ofsubrogation and contribution against the Indemnitees, while acting within the scope of their duties, fromall claims, losses and liabilities arising out of or incident to activities or operations performed by or onbehalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligenceby the Indemnitees.

In the event there is more than one person or entity named in the Agreement as an Indemnitor, then allobligations, liabilities, covenants and conditions under this instrument shall be joint and several.

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"Indemnitor"

Name _

By: _

Its

R6876-0001/1148275v3C-17

Name _

By: _

Its

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ADDITIONAL INSURED ENDORSEMENTCOMPREHENSIVE GENERAL LIABILITY

Name and address o/named insured ("Named Insured''):

Name and address o/Insurance Company ("Company''):

General description 0/agreement(s), permit(s), licensers), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached(the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The _("Public Agency"), its elected officials, officers, attorneys, agents, employees, and volunteers areadditional insureds (the above named additional insureds are hereafter referred to as the "AdditionalInsureds") under the Policy in relation to those activities described generally above with regard tooperations performed by or on behalf of the Named Insured. The Additional Insureds have no liability forthe payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall beprimary insurance, and no other insurance maintained by the Additional Insureds shall be called upon tocontribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each AdditionalInsured against whom claim is made or suit is brought except with respect to the limits of the Company'sliability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claimby one insured under the policy against another insured under the policy. All such claims shall becovered as third-party claims, i.e., in the same manner as if separate policies had been issued to eachinsured. Nothing contained in this provision shall operate to increase or replicate the Company's limits ofliability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to theterms, conditions and exclusions applicable to such insurance) includes liability assumed by the NamedInsured under the indemnification and/or hold harmless provision(s) contained in or executed inconjunction with the written agreement(s) or permit(s) designated above, between the Named Insured andthe Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation,change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewalexcept after written notice to Public Agency, by certified mail, return receipt requested, not less thanthirty (30) days prior to the effective date thereof. In the event of Company's failure to comply with thisnotice provision, the policy as initially drafted will continue in full force and effect until compliance withthis notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the AdditionalInsureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out ofor incident to the perils insured against in relation to those activities described generally above with

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regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent,or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern thevalidity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

10. Except as stated above and not in conflict with this endorsement, nothing containedherein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy towhich this endorsement is attached.

TYPE OF COVERAGES TO WHICH

THIS ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The followinginclusions relate to the above coverages. Includes:

o Contractual Liability

o OwnerslLandlords/Tenants

o Manufacturers/Contractors

o Products/Completed Operations

o Broad Form Property Damage

o Extended Bodily Injury

o Broad Form ComprehensiveGeneral Liability Endorsement

o Explosion Hazard

o Collapse Hazard

o Underground Property Damage

o Pollution Liability

o Liquor Liability0 _

0 _0 _

12. A 0 deductible or 0 self-insured retention (check one) of $ _applies to all coverage(s) except: _(ifnone, so state). The deductible is applicable 0 per claim or 0 per occurrence (check one).

13. This is an 0 occurrence or 0 claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a partof Policy Number _

I, (print name), herebydeclare under penalty of perjury under the laws of the State of California, that I have the authority to bindthe Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20 _

Signature of Authorized Representative

Telephone No.: ( ) _

R6876-0001/1148275v3C-19

(Original signature only; no facsimile signatureor initialed signature accepted)

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ADDITIONAL INSURED ENDORSEMENTAUTOMOBILE LIABILITY

Name and address ofnamed insured (''Named Insured''): _

Name and address ofInsurance Company ("Company''): _

General description ofagreement(s), permit(s), licensers), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached(the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The _("Public Agency"), its elected officials, officers, attorneys, agents, employees, and volunteers areadditional insureds (the above named additional insureds are hereafter referred to as the "AdditionalInsureds") under the Policy in relation to those activities described generally above with regard tooperations performed by or on behalf of the Named Insured. The Additional Insureds have no liability forthe payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall beprimary insurance, and no other insurance maintained by the Additional Insureds shall be called upon tocontribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each AdditionalInsured against whom claim is made or suit is brought except with respect to the limits of the Company'sliability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claimby one insured under the policy against another insured under the policy. All such claims shall becovered as third-party claims, i.e., in the same manner as if separate policies had been issued to eachinsured. Nothing contained in this provision shall operate to increase or replicate the Company's limits ofliability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to theterms, conditions and exclusions applicable to such insurance) includes liability assumed by the NamedInsured under the indemnification and/or hold harmless provision(s) contained or executed in conjunctionwith the written agreement(s) or permit(s) designated above, between the Named Insured and theAdditional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation,change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewalexcept after written notice to Public Agency, by certified mail, return receipt requested, not less thanthirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with thisnotice provision, the policy as initially drafted will continue in full force and effect until compliance withthis notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the AdditionalInsureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out ofor incident to the perils insured against in relation to those activities described generally above with

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regard to operations perfonned by or on behalf of the Named Insured regardless of any prior, concurrent,or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern thevalidity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City ManagerCity of Rancho Palos Verdes30940 Hawthorne BoulevardRancho Palos Verdes, California 90275

10. Except as stated above and not in conflict with this endorsement, nothing containedherein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy towhich this endorsement is attached.

TYPE OF COVERAGES TO WHICH

THIS ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The followinginclusions relate to the above coverages. Includes:

\ Any Automobiles

\ All Owned Automobiles

\ Non-owned Automobiles

\ Hired Automobiles

\ Scheduled Automobiles

\ Garage Coverage

\ Truckers Coverage

\ Motor Carrier Act

\ Bus Regulatory Refonn Act

\ Public Livery Coverage\\

12. A 0 deductible or 0 self-insured retention (check one) of $ ~ _

applies to all coverage(s) except: (if none, so state). The deductible is applicable

G per claim or G per occurrence (check one).

13. This is an 0 occurrence or 0 claims made policy (check one).

14.Number

This endorsement is effective on at 12:01 a.m. and fonns a part of Policy

I, (print name), herebydeclare under penalty of perjury under the laws of the State of California, that I have the authority to bindthe Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20__

Signature of Authorized Representative(Original signature only; no facsimile signature

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Telephone No.: ( ) _

R6876-0001/1148275v3C-22

or initialed signature accepted)

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ADDITIONAL INSURED ENDORSEMENTEXCESS LIABILITY

Name and address ofnamed insured ("Named Insured''):

Name and address ofInsurance Company ("Company''):

General description ofagreement(s), permit(s), licensers), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached(the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The ...,.-----,:------,-------".."....--,___:_-------------------("Public Agency"), its elected officials, officers, attorneys, agents, employees, and volunteers areadditional insureds (the above named additional insureds are hereafter referred to as the "AdditionalInsureds") under the Policy in relation to those activities described generally above with regard tooperations performed by or on behalf ofthe Named Insured. The Additional Insureds have no liability forthe payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall beprimary insurance, and no other insurance maintained by the Additional Insureds shall be called upon tocontribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each AdditionalInsured against whom claim is made or suit is brought, except with respect to the limits of the Company'sliability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claimby one insured under the policy against another insured under the policy. All such claims shall becovered as third-party claims, i.e., in the same manner as if separate policies had been issued to eachinsured. Nothing contained in this provision shall operate to increase or replicate the Company's limits ofliability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to theterms, conditions and exclusions applicable to such insurance) includes liability assumed by the NamedInsured under the indemnification and/or hold harmless provision(s) contained in or executed inconjunction with the written agreement(s) or permit(s) designated above, between the Named Insured andthe Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation,change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewalexcept after written notice to Public Agency, by certified mail, return receipt requested, not less thanthirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with thisnotice provision, the policy as initially drafted will continue in full force and effect until compliance withthis notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the AdditionalInsureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out ofor incident to the perils insured against in relation to those activities described generally above withregard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent,or subsequent active or passive negligence by the Additional Insureds.

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8.validity,

It is hereby agreed that the laws of the State of California shall apply to and govern theconstruction, interpretation, and enforcement of this contract of insurance.

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9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City ManagerCity ofRancho Palos Verdes30940 Hawthorne BoulevardRancho Palos Verdes, California 90275

10. Except as stated above and not in conflict with this endorsement, nothing containedherein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy towhich this endorsement is attached.

TYPE OF COVERAGES TO WHICHTHIS ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

o Following Form

o Umbrella Liability0 _

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NO. AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above

coverages:

13. A 0 deductible or 0 self-insured retention (check one) of $ _applies to all coverage(s) except: _(ifnone, so state). The deductible is applicable 0 per claim or 0 per occurrence (check one).

14. This is an 0 occurrence or 0 claims made policy (check one).

15. This endorsement is effective on at 12:01 a.m. and forms a part of PolicyNumber _

I, (print name), herebydeclare under penalty of peljury under the laws of the State of California, that I have the authority to bindthe Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20__

Signature of Authorized Representative

Telephone No.: ( ) __

R6876-0001/1148275v3C-25

(Original signature only; no facsimile signatureor initialed signature accepted)

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