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ON -CALL PROFESSIONAL SERVICES AGREEMENT
WITH TKE ENGINEERING, INC. FOR
ON -CALL INSPECTION SERVICES
v THIS ON -CALL PROFESSIONAL SERVICES AGREEMENT ("Agreement") is
made and entered into as of this 9th day of July, 2024 ("Effective Date"), by and between
the CITY OF NEWPORT BEACH, a California municipal corporation and charter city
("City"), and TKE ENGINEERING, INC., a California corporation ("Consultant"), whose
address is 2305 Chicago Avenue, Riverside, CA 92507, and is made with reference to
the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. City desires to engage Consultant to provide on -call inspection and permitting
services for the Public Works Department. ("Project').
C. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the professional services described in this Agreement.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
The term of this Agreement shall commence on the Effective Date, and shall
terminate on July 9, 2027, unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
2.1 Consultant shall perform the on -call services described in the Scope of
Services attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Upon written request from the Project Administrator as defined herein,
Consultant shall provide a letter proposal for Services requested by the City (hereinafter
referred to as the "Letter Proposal"). The Letter Proposal shall include the following:
2.1.1 A detailed description of the Services to be provided;
2.1.2 The position of each person to be assigned to perform the Services,
and the name of the individuals to be assigned, if available;
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2.1.3 The estimated number of hours and cost to complete the Services;
2.1.4 The time needed to finish the specific project.
2.2 No Services shall be provided until the Project Administrator has provided
written acceptance of the Letter Proposal. Once authorized to proceed, Consultant shall
diligently perform the duties in the approved Letter Proposal.
3. TIME OF PERFORMANCE
3.1 Time is of the essence in the performance of Services under this Agreement
and Consultant shall perform the Services in accordance with the schedule included in
Exhibit A and the Letter Proposal. In the absence of a specific schedule, the Services
shall be performed to completion in a diligent and timely manner. The failure by
Consultant to strictly adhere to the schedule set forth in Exhibit A and the Letter Proposal,
if any, or perform the Services in a diligent and timely manner may result in termination
of this Agreement by City.
3.2 Notwithstanding the foregoing, Consultant shall not be responsible for
delays due to causes beyond Consultant's reasonable control. However, in the case of
any such delay in the Services to be provided for the Project, each party hereby agrees
to provide notice within two (2) calendar days of the occurrence causing the delay to the
other party so that all delays can be addressed.
3.3 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator as defined herein not later than ten (10) calendar
days after the start of the condition that purportedly causes a delay. The Project
Administrator shall review all such requests and may grant reasonable time extensions
for unforeseeable delays that are beyond Consultant's control.
3.4 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the circumstances, by
hand -delivery or mail.
4. COMPENSATION TO CONSULTANT
4.1 City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Letter Proposal
and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein
by reference. Consultant's compensation for all Work performed in accordance with this
Agreement, including all reimbursable items and subconsultant fees, shall not exceed
One Hundred Fifty Thousand Dollars and 00/100 ($150,000.00), without prior written
authorization from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City.
4.2 Consultant shall submit monthly invoices to City describing the Work
performed the preceding month. Consultant's bills shall include the name of the person
who performed the Work, a brief description of the Services performed and/or the specific
task in the Scope of Services to which it relates, the date the Services were performed,
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the number of hours spent on all Work billed on an hourly basis, and a description of any
reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar
days after approval of the monthly invoice by City staff.
4.3 City shall reimburse Consultant only for those costs or expenses specifically
identified in Exhibit B to this Agreement and the Letter Proposal or specifically approved
in writing in advance by City.
4.4 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion of the Project,
but which is not included within the Scope of Services and which the parties did not
reasonably anticipate would be necessary at the execution of this Agreement.
Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B and the Letter Proposal.
5. PROJECT MANAGER
5.1 Consultant shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Terry Renner to be its
Project Manager. Consultant shall not remove or reassign the Project Manager or any
personnel listed in Exhibit A or assign any new or replacement personnel to the Project
without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel.
5.2 Consultant, at the sole discretion of City, shall remove from the Project any
of its personnel assigned to the performance of Services upon written request of City.
Consultant warrants that it will continuously furnish the necessary personnel to complete
the Project on a timely basis as contemplated by this Agreement.
5.3 If Consultant is performing inspection services for City, the Project Manager
and any other assigned staff shall be equipped with a cellular phone to communicate with
City staff. The Project Manager's cellular phone number shall be provided to City.
6. ADMINISTRATION
This Agreement will be administered by the Public Works. City's Director of Public
Works or designee shall be the Project Administrator and shall have the authority to act
for City under this Agreement. The Project Administrator shall represent City in all matters
pertaining to the Services to be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
To assist Consultant in the execution of its responsibilities under this Agreement,
City agrees to provide access to and upon request of Consultant, one copy of all existing
relevant information on file at City. City will provide all such materials in a timely manner
so as not to cause delays in Consultant's Work schedule.
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8. STANDARD OF CARE
8.1 All of the Services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical
personnel required to perform the Services required by this Agreement, and that it will
perform all Services in a manner commensurate with community professional standards
and with the ordinary degree of skill and care that would be used by other reasonably
competent practitioners of the same discipline under similar circumstances. All Services
shall be performed by qualified and experienced personnel who are not employed by City.
By delivery of completed Work, Consultant certifies that the Work conforms to the
requirements of this Agreement, all applicable federal, state and local laws, and legally
recognized professional standards.
8.2 Consultant represents and warrants to City that it has, shall obtain, and shall
keep in full force and effect during the term hereof, at its sole cost and expense, all
licenses, permits, qualifications, insurance and approvals of whatsoever nature that is
legally required of Consultant to practice its profession. Consultant shall maintain a City
of Newport Beach business license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, acts of God, or the failure of City to furnish timely information or to
approve or disapprove Consultant's Work promptly, or delay or faulty performance by
City, contractors, or governmental agencies.
9. HOLD HARMLESS
9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend
and hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers and employees (collectively, the "Indemnified Parties") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorneys' fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate
(directly or indirectly) to any breach of the terms and conditions of this Agreement, any
Work performed or Services provided under this Agreement including, without limitation,
defects in workmanship or materials or Consultant's presence or activities conducted on
the Project (including the negligent, reckless, and/or willful acts, errors and/or omissions
of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants,
subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable, or any or all of them).
9.2 Notwithstanding the foregoing, nothing herein shall be construed to require
Consultant to indemnify the Indemnified Parties from any Claim arising from the sole
negligence orwillful misconduct of the Indemnified Parties. Nothing in this indemnity shall
be construed as authorizing any award of attorneys' fees in any action on or to enforce
the terms of this Agreement. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by Consultant.
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10. INDEPENDENT CONTRACTOR
It is understood that City retains Consultant on an independent contractor basis
and Consultant is not an agent or employee of City. The manner and means of
conducting the Work are under the control of Consultant, except to the extent they are
limited by statute, rule or regulation and the expressed terms of this Agreement. No civil
service status or other right of employment shall accrue to Consultant or its employees.
Nothing in this Agreement shall be deemed to constitute approval for Consultant or any
of Consultant's employees or agents, to be the agents or employees of City. Consultant
shall have the responsibility for and control over the means of performing the Work,
provided that Consultant is in compliance with the terms of this Agreement. Anything in
this Agreement that may appear to give City the right to direct Consultant as to the details
of the performance of the Work or to exercise a measure of control over Consultant shall
mean only that Consultant shall follow the desires of City with respect to the results of the
Services.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated
Project Administrator and any other agencies that may have jurisdiction or interest in the
Work to be performed. City agrees to cooperate with the Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project
direction with City's Project Administrator in advance of all critical decision points in order
to ensure the Project proceeds in a manner consistent with City goals and policies.
13. PROGRESS
Consultant is responsible for keeping the Project Administrator informed on a
regular basis regarding the status and progress of the Project, activities performed and
planned, and any meetings that have been scheduled or are desired.
14. INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement
of Work, Consultant shall obtain, provide and maintain at its own expense during the term
of this Agreement or for other periods as specified in this Agreement, policies of insurance
of the type, amounts, terms and conditions described in the Insurance Requirements
attached hereto as Exhibit C, and incorporated herein by reference.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following shall be
construed as an assignment: The sale, assignment, transfer or other disposition of any
of the issued and outstanding capital stock of Consultant, or of the interest of any general
partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or
TKE Engineering, Inc. Page 5
joint -venture or syndicate or co -tenancy, which shall result in changing the control of
Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five
percent (25%) or more of the assets of the corporation, partnership or joint -venture.
16. SUBCONTRACTING
The subcontractors authorized by City, if any, to perform Work on this Project are
identified in Exhibit A and the Letter Proposal. Consultant shall be fully responsible to
City for all acts and omissions of any subcontractor. Nothing in this Agreement shall
create any contractual relationship between City and any subcontractor nor shall it create
any obligation on the part of City to pay or to see to the payment of any monies due to
any such subcontractor other than as otherwise required by law. City is an intended
beneficiary of any Work performed by the subcontractor for purposes of establishing a
duty of care between the subcontractor and City. Except as specifically authorized herein,
the Services to be provided under this Agreement shall not be otherwise assigned,
transferred, contracted or subcontracted out without the prior written approval of City.
17. OWNERSHIP OF DOCUMENTS
17.1 Each and every report, draft, map, record, plan, document and other writing
produced, including but not limited to, websites, blogs, social media accounts and
applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant,
its officers, employees, agents and subcontractors, in the course of implementing this
Agreement, shall become the exclusive property of City, and City shall have the sole right
to use such materials in its discretion without further compensation to Consultant or any
other party. Additionally, all material posted in cyberspace by Consultant, its officers,
employees, agents and subcontractors, in the course of implementing this Agreement,
shall become the exclusive property of City, and City shall have the sole right to use such
materials in its discretion without further compensation to Consultant or any other party.
Consultant shall, at Consultant's expense, provide such Documents, including all logins
and password information to City upon prior written request.
17.2 Documents, including drawings and specifications, prepared by Consultant
pursuant to this Agreement are not intended or represented to be suitable for reuse by
City or others on any other project. Any use of completed Documents for other projects
and any use of incomplete Documents without specific written authorization from
Consultant will be at City's sole risk and without liability to Consultant. Further, any and
all liability arising out of changes made to Consultant's deliverables under this Agreement
by City or persons other than Consultant is waived against Consultant, and City assumes
full responsibility for such changes unless City has given Consultant prior notice and has
received from Consultant written consent for such changes.
17.3 All written documents shall be transmitted to City in formats compatible with
Microsoft Office and/or viewable with Adobe Acrobat.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept confidential
unless City expressly authorizes in writing the release of information.
TKE Engineering, Inc. Page 6
19. INTELLECTUAL PROPERTY INDEMNITY
Consultant shall defend and indemnify City, its agents, officers, representatives
and employees against any and all liability, including costs, for infringement or alleged
infringement of any United States' letters patent, trademark, or copyright, including costs,
contained in Consultant's Documents provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the Services to be
performed under this Agreement. Consultant shall maintain complete and accurate
records with respect to the costs incurred under this Agreement and any Services,
expenditures and disbursements charged to City, for a minimum period of three (3) years,
or for any longer period required by law, from the date of final payment to Consultant
under this Agreement. All such records and invoices shall be clearly identifiable.
Consultant shall allow a representative of City to examine, audit and make transcripts or
copies of such records and invoices during regular business hours. Consultant shall allow
inspection of all Work, data, Documents, proceedings and activities related to the
Agreement for a period of three (3) years from the date of final payment to Consultant
under this Agreement.
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of
the dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Consultant shall not
discontinue Work as a result of such withholding. Consultant shall have an immediate
right to appeal to the City Manager or designee with respect to such disputed sums.
Consultant shall be entitled to receive interest on any withheld sums at the rate of return
that City earned on its investments during the time period, from the date of withholding of
any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what would have
resulted if there were not errors or omissions in the Work accomplished by Consultant,
the additional design, construction and/or restoration expense shall be borne by
Consultant. Nothing in this Section is intended to limit City's rights under the law or any
other sections of this Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the Project.
24. CONFLICTS OF INTEREST
24.1 Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et
seq., which (1) require such persons to disclose any financial interest that may
TKE Engineering, Inc. Page 7
foreseeably be materially affected by the Work performed under this Agreement, and (2)
prohibit such persons from making, or participating in making, decisions that will
foreseeably financially affect such interest.
24.2 If subject to the Act and/or Government Code §§ 1090 et seq., Consultant
shall conform to all requirements therein. Failure to do so constitutes a material breach
and is grounds for immediate termination of this Agreement by City. Consultant shall
indemnify and hold harmless City for any and all claims for damages resulting from
Consultant's violation of this Section.
25. NOTICES
25.1 All notices, demands, requests or approvals, including any change in
mailing address, to be given under the terms of this Agreement shall be given in writing,
and conclusively shall be deemed served when delivered personally, or on the third
business day after the deposit thereof in the United States mail, postage prepaid, first-
class mail, addressed as hereinafter provided.
25.2 All notices, demands, requests or approvals from Consultant to City shall
be addressed to City at:
Attn: Director of Public Works
Public Works
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
25.3 All notices, demands, requests or approvals from City to Consultant shall
be addressed to Consultant at:
Attn: Terry Renner
TKE Engineering, Inc.
2305 Chicago Avenue
Riverside, CA 92507
26. CLAIMS
Unless a shorter time is specified elsewhere in this Agreement, before making its
final request for payment under this Agreement, Consultant shall submit to City, in writing,
all claims for compensation under or arising out of this Agreement. Consultant's
acceptance of the final payment shall constitute a waiver of all claims for compensation
under or arising out of this Agreement except those previously made in writing and
identified by Consultant in writing as unsettled at the time of its final request for payment.
Consultant and City expressly agree that in addition to any claims filing requirements set
forth in the Agreement, Consultant shall be required to file any claim Consultant may have
against City in strict conformance with the Government Claims Act (Government Code
sections 900 et seq.).
TKE Engineering, Inc. Page 8
27. TERMINATION
27.1 In the event that either party fails or refuses to perform any of the provisions
of this Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a period
of two (2) calendar days, or if more than two (2) calendar days are reasonably required
to cure the default and the defaulting party fails to give adequate assurance of due
performance within two (2) calendar days after receipt of written notice of default,
specifying the nature of such default and the steps necessary to cure such default, and
thereafter diligently take steps to cure the default, the non -defaulting party may terminate
the Agreement forthwith by giving to the defaulting party written notice thereof.
27.2 Notwithstanding the above provisions, City shall have the right, at its sole
and absolute discretion and without cause, of terminating this Agreement at any time by
giving no less than seven (7) calendar days' prior written notice to Consultant. In the
event of termination under this Section, City shall pay Consultant for Services
satisfactorily performed and costs incurred up to the effective date of termination for which
Consultant has not been previously paid. On the effective date of termination, Consultant
shall deliver to City all reports, Documents and other information developed or
accumulated in the performance of this Agreement, whether in draft or final form.
28. STANDARD PROVISIONS
28.1 Recitals. City and Consultant acknowledge that the above Recitals are true
and correct and are hereby incorporated by reference into this Agreement.
28.2 Compliance with all Laws. Consultant shall, at its own cost and expense,
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be subject
to approval of the Project Administrator and City.
28.3 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether of the
same or a different character.
28.4 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged herein.
No verbal agreement or implied covenant shall be held to vary the provisions herein.
28.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govern.
28.6 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
TKE Engineering, Inc. Page 9
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
28.7 Amendments. This Agreement may be modified or amended only by a
written document executed by both Consultant and City and approved as to form by the
City Attorney.
28.8 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
28.9 Controlling Law and Venue. The laws of the State of California shall govern
this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, State of California.
28.10 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because race, religious creed, color, national origin,
ancestry, physical handicap, medical condition, marital status, sex, sexual orientation,
age or any other impermissible basis under law.
28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under
this Agreement, the prevailing party shall not be entitled to attorneys' fees.
28.12 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one (1) and the same instrument.
[SIGNATURES ON NEXT PAGE]
TKE Engineering, Inc. Page 10
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 6v
By:;jj V-b��
�'aijpn C. Harp
?j
G/1
Cit Attorney
y
ATTEST:
Date: -
By:a&,� (�- Pr1===, —
Leilani I. Brown
City Clerk
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►`11.1 F o v-
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: 7/2.z /za z y
By:
Will O'Neill
Mayor
CONSULTANT: TKE Engineering, Inc., a
California corporation
Date:
Signed in Counterpart
By:
Michael Thornton
Chief Executive Officer
Date:
Signed in Counterpart
Bv:
Terry Renner
Chief Financial Officer
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
TKE Engineering, Inc. Page 11
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: (v i ;�%ZW
By:
Pia n C. Harp
Cit Attorney
y
ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Will O'Neill
Mayor
CONSULTANT: TKE Engineering, Inc., a
California corporation
Date: 06/27/2024
Michael Thornton
Chief Executive Officer
Date: 06/27/2024
Terry Renner
Chief Financi I Officer
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Insurance Requirements
TKE Engineering, Inc. Page 11
EXHIBIT A
SCOPE OF SERVICES
TKE Engineering, Inc. Page A-1
SCOPE OF SERVICES
ON -CALL INSPECTION SERVICES
Services include Development Permits, Encroachment Permits and Utility Permit
Inspections to supplement the City's current inspection staff, in addition to construction
administration services.
Prior to authorization to commence work on any particular assignment by the City, the
City and Consultant shall agree to a written scope of work (task order) and a time
schedule. Consultant's services shall include, but not necessarily be limited to, providing
a Public Works Inspector or Construction Administrator to work at City Hall within the
Public Works Department. Depending on the project or inspection activity, services may
be assigned on a part time, percent time, full time, and/or evening or weekend basis
depending on the need for services. Consultant will be assigned to specific
projects/permits and work with City staff on administration and inspection of City projects
and private improvements/encroachments within public right-of-way in the following areas
as necessary:
• Construction observation;
• Public contract administration;
• Attend project meetings;
• Utility coordination;
• Minimizing traffic impacts;
• Construction staking and surveying;
• Material testing;
• Project documentation;
• Record drawings;
• Permit system record keeping;
• Liaison with Staff.
REQUEST FOR PROPOSAL
ON -CALL INSPECTIONS SERVICES
RFP NO. 24-56
fo r:
CITY OF NEWPORT BEACH
Attn: Robert Silva, Construction
Inspection Supervisor
100 Civic Center Drive
Newport Beach, CA 92660
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1 _1FOR���
April 4, 2024
3:00 p.m.
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Prepared by:
ENGINEERING, INC.
2305 Chicago Avenue
Riverside, California 92507
( 9 5 1) 6 8 0- 0 4 4 0
w w w. T K E e n g i n e e r i n g. c o m
Section 1 Cover Letter
Section 2 Local Staffing List
Section 3 Advances Notice Requirements
Section 4 Organizational Chart & Resumes
Section 5 & 6 Previous Work Performed & References
Section 6 References
Section 7 Fee Schedule
Section 8 Addendum Acknowledgment
Section 9 Proposer Information
Prepared for:
City of Newport Beach
100 Civic Center
��- Newport Beach, CA 92660
Contact: Robert Silva, Construction Inspection Supervisor
J '$ Phone: (949) 270-8131
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Prepared by:
TKE Engineering, Inc.
2305 Chicago Avenue
Riverside, CA 92507
Contact: Terry Renner, P.E., P.L.S., Q.S.D.
Senior Vice President
Phone: (951) 680-0440
E-mail: trenner@tkeengineering.com
Page 11
April 4, 2024
Robert Silva, Construction Inspection Supervisor
City of Newport Beach
100 Civic Center
Newport Beach, CA 92660
Subject: Request for Proposal for On -Call Inspection Services
Dear Mr. Silva,
Thank you for the opportunity to present TKE Engineering, Inc. (TKE)'s proposal to provide
professional inspection services (on -call and as -needed) to the City of Newport Beach (City). The City
desires to retain services to assist with development permits, encroachment permits, and utility
permit inspections together with construction administration services. TKE is enthusiastic about the
opportunity to assist the City with these services.
The City requests on -call and as -needed inspection for Public Works. Services requested include said
inspections to supplement the City's current inspection staff, in addition to construction
administration services to assist City Staff. TKE will provide services on -an hourly/on-call/as-needed
basis to assist the City with various projects.
SECTION 1— SCOPE OF SERVICES
Services include construction observation, public contract administration, project meeting
attendance, utility coordination, minimizing traffic impacts, project documentation, record drawings
preparation, permit system record keeping, and coordination with City staff.
TKE understands that prior to providing services, the City and TKE will agree to a written scope of work
and a time schedule. TKE will provide a Public Works Inspector and/or Construction Administrators
that will work at City Hall within the Public Works Department. Services will be provided on a part-
time, percent time, full time and/or evening/weekend basis depending on the need for inspection
services. The City will assign TKE to specific projects/permits. TKE will coordinate with City staff on
administration and inspections.
TKE, a California Corporation, is a full service, multi -disciplinary consulting corporation. We can be
found online at www.tkeengineering.com or reached by phone (951) 680-0440. We have 24 years of
experience with providing on -call inspection services to public agencies and are highly qualified to
perform the services requested.
Terry Renner will be overseeing and managing the work of our key personnel. Supporting Mr. Renner
will be our Contract Administrators (Marvin Lara, E.I.T., Travis Bradshaw, E.I.T.) and Public Works
Inspectors, including Jeff Lantosh, C.P.I.I., Nelson Blackwell, C.P.I.I., Naeem Dullo, Jeff Lynn, Steve
Biscotti, Mike Counce, Patrick Palafox, Brad Enscoe, and Tyler Ault. TKE can also call upon any of our
additional inspectors to provide necessary services. Our team includes dedicated members of our
inspection staff. As such, they will remain in -place throughout the term of the contract. TKE will
provide 100% of the services in-house, and will not be retaining subconsultants for this on -call.
ate' 'rik.
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach a
TKE is available for on -site visits and/or tours of our office to provide you with a comprehensive
understanding of our operations and capabilities. Additionally, we remain flexible and accessible to
accommodate your scheduling needs, including availability for evening and weekend inspections.
TKE has no exceptions to the terms of the RFP and Professional Services Agreement. TKE's proposals
will remain valid for a period of 180 days. We are committed to accepting the terms and conditions
within the RFP and Professional Services Agreement.
SECTION 2 - LOCAL STAFFING LIST
While TKE does not presently maintain a staff presence in Newport Beach, we possess a pool of 53
inspectors poised for mobilization, ready to commence inspections promptly
SECTION 3 - ADVANCE NOTICE REQUIREMENTS
At TKE, we recognize the critical role that timely and dependable inspections play in the success and
safety of every project. With our devoted team of skilled administrators and inspectors, coupled with
our steadfast dedication to efficiency, we are delighted to extend our services as needed, starting
from Summer 2024 and continuing into the future. Our commitment to excellence knows no bounds,
as we are available for inspections not only during regular business hours but also on weekends and
evenings, ensuring flexibility to accommodate diverse project schedules.
Our team is highly experienced and equipped to handle a diverse range of projects, and we are ready
to accommodate the specific needs and schedules of the City. Whether it's road construction, utility
installations, or any other infrastructure endeavor, you can trust TKE to deliver thorough and prompt
inspection services.
Thank you for your consideration. TKE would very much appreciate the opportunity to provide
engineering services. If you have any questions, please call me at (951) 680-0440.
Sincerely,
Terry Renner, P.E., P.L.S., Q.S.D.
Senior Vice President
TKE ENGINEERING, INC.
Request for Proposal No. 24-561On-Call Inspection Services
City of Newport Beach
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Page 14
A. K E Y P E R S O N N E L
TKE currently maintains a staff of 53 personnel who are
highly qualified to assist with any of the required services
for this contract.
For this contract, Mr. Terry Renner, P.E., P.L.S., Q.S.D.,
Senior Vice President of TKE will coordinate and oversee
all inspection projects. He brings a vast amount of
knowledge from his 24 years of experience designing and
managing similar projects throughout Orange, Los
Angeles, San Bernardino and Riverside counties.
Mr. Renner will serve as Client Contact and will maintain
direct and continued responsibility for all inspection
provided for the duration of this contract. He will serve
as the primary contact on all matters and will manage and
oversee day-to-day activities, as well as handle all
contractual matters and will direct the TKE team.
As the client contact, Mr. Renner has been responsible for
inspection coordination, supervising staff of inspectors,
and scheduling, public relations, weekly progress
meetings, request for information responses, invoicing,
labor compliance, and project closeout. He has
successfully delivered a wide variety of complex and
challenging services and is dedicated to ensuring that the
services delivered by TKE continue to exceed industry
standards.
Mr. Renner's greatest attribute is his ability to effectively
communicate and manage TKE's inspection staff, on time
and within budget. His vast experience ensures success
again and again. He also understands the importance of
working as a team member. Mr. Renner understands that
the City will provide final direction to construction
requirements, standards and he fully understands the
need to maintain proper protocol while providing
services. He further understands that his role will be to
manage and coordinate with our inspectors to enforce
and ensure the construction needs are met.
TKE has two unique advantages associated with the
experience of TKE's project team. One benefit of TKE's
project team is our extremely low internal turnover
rate. As a result of our rigorous interview and testing
procedures, coupled with our extremely high employee
satisfaction rates, TKE staff has years of experience
working together. The close relationships each of our
staff members have with one another provide the City
with an extremely well rounded and experienced
team. As such, TKE's project team experience directly
correlates with TKE's firm experience described
previously.
The second benefit of TKE's project team is our internal
training procedures. TKE has strived to develop
techniques that reach outside the box and develop well
rounded individuals committed to providing high quality,
efficient services to meet all our clients' needs. TKE trains
our staff on every facet inspection to provide a level of
knowledge that can identify problems in every phase.
It is this commitment to service and diverse array of
offerings that makes us unique and drives our long-
standing relationships with our client base.
Understanding that all aspects of on -call inspection
services are important to ensure the City's interests are
protected and project schedules are met, our team brings
TKE management level professionals to projects ensuring
that every aspect receives full and comprehensive
consideration. It is this personal touch and contact that
define our 'local service' approach. We consider
ourselves community builders and take ownership of
services requested from TKE, ensuring that our personnel
will be allocated on an as -needed basis in order to
complete all services on schedule and within specified
budget. TKE is committed to responding to our clients'
needs as they arise.
Terry Renner, P.E., P.L.S,
Q.S.D.
Client Contact
R.C.E. No. 69984
P.L.S. No. 9762
Q.S.D. Certification No. 24329
Mr. Renner is the Senior Vice President of TKE and has
over 24 years working with TKE and has extensive
experience in inspection, construction management, civil
engineering, design, plan checking, and project
management of both development and public works
infrastructure projects, including grading improvements,
street and transportation improvements, traffic
engineering, drainage improvements, water
improvements, sewer improvements, facilities
improvements, and recreation improvements. He
currently provides engineering services to the cities of
Calabasas, El Monte, South El Monte, Glendora, Azusa,
Fontana, Calimesa, Upland, Wildomar, Highland, and
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach
Adelanto. His experience includes services during pre -
project inspection, construction management, and plan
review, along with operations and maintenance. He has
successfully delivered a wide variety of complex and
challenging projects and is dedicated to ensuring services
provided by TKE continue to exceed industry standards.
CONTRACT ADMINISTRATORS
In the dynamic landscape of public agencies projects
undertaken by public agencies, contract administrators
play a pivotal role in ensuring project success.
Responsible for overseeing contracts from inception to
completion, their duties encompass ensuring compliance,
facilitating communication, monitoring progress,
mitigating risks, and promoting transparency. By
meticulously managing contractual obligations and
fostering collaboration among stakeholders, contract
administrators safeguard project integrity and uphold
public trust, ultimately contributing to the delivery of
high -quality infrastructure that serves communities
effectively. Below is our proposed Contract
Administrators:
Marvin Lara, E.I.T.
Contract Administrator
E.I.T. No. 157100
Mr. Lara has 7 years working with
TKE with extensive experience in
civil engineering infrastructure
projects, including transportation
improvements, drainage
improvements, facilities improvements, recreation
improvements, and construction methods. He has
managed numerous projects and has delivered projects
for the Cities of Highland, Moreno Valley, Glendora,
Calimesa, Fontana, Rialto, Hesperia and Redlands. Mr.
Lara has been responsible for supervising a staff of
inspectors, construction coordination and scheduling,
utility relocation coordination, public relations, submittal
review, coordination with subconsultants, weekly
progress meetings, request for information responses,
storm water management, progress payments, change
order review and negotiations, labor compliance, and
project closeout.
Travis Bradshaw, E.I.T.
Contract Administrator
E.I.T. No. 178961
Mr. Bradshaw joined TKE three
years ago after graduating from
San Diego State University with a
degree in Civil Engineering. As an
Associate Engineer, Mr. Bradshaw
has been responsible for assistance in construction
management, utility coordination, review of construction
submittals and request for information responses,
progress payments, change orders review, preparation of
construction cost estimate and project specifications. Mr.
Bradshaw also has extensive experience with Federal and
State Grant funded projects. Within his role as an
Associate Engineer, he assisted in the development of
construction management plans, conduct regular
construction and progress meetings, maintain records of
contract, and also ensuring that all permits and
certifications are obtained.
SENIOR PUBLIC WORKS INSPECTORS
TKE provides experienced, highly qualified staff with
significant technical expertise and strong public relations
skills for inspection services. All of TKE's inspectors have
a background within design and construction, enabling
TKE to provide well rounded inspectors capable of
understanding permit requirements and capable of
identifying potential deficiencies before they occur. TKE
is fully capable of providing staff on a full-time, part-time,
on -call or interim inspection services. Please refer to our
project team, to verify our team's technical ability to
deliver these services.
TKE has provided similar services to those requested here
for a number of different public agencies including of
Calimesa, Highland, Jurupa Valley, San Bernardino Water
Department, Adelanto, and Hesperia. TKE understands
that each jurisdiction has its own standards and
agreement/permit requirements that were developed to
meet the needs of that particular community. TKE will
develop a thorough understanding of these standards
together with the needs of the community. For each
project that TKE is assigned, TKE will verify compliance
with all applicable standards/requirements. Our
inspection portfolio includes:
Daily review and documentation of construction
activities (daily reports and digital photo of
significant issues and milestones)
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach
Page 16
Monitor Contractor's daily labor force
Field verification of traffic control procedures and
consistency with approved Traffic Control Plan
Coordinate with agencies and different
stakeholders to ensure smooth progress of
construction activities
Monitor project delivery schedule
Assure quality control
Provide Field observations of construction
activities, as applicable
Maintain complete and accurate project records
compliant with Caltrans manual
Verify NPDES and SWPPP compliance
Preparation of removal work lists
As -built plans review
Ensure that materials and completed work
comply with plans, specifications, and
requirements
Implement security procedures
Issue notices for safety concerns and violations
Review and ensure compliance with permits and
work change directives
Compliance with Caltrans encroachment permit
requirements, if required
Coordinate project closeouts activities which
include staff report, Notice of Completion,
warranty inspection, and archiving documents.
Below is our proposed Senior Public works Inspectors:
Jeffrey Lantosh, C.P.H.
Senior Public Works Inspector
CPII — Certified Public Infrastructure
Inspector, ICC - Special Inspector, Soils,
Structural Masonry, Reinforced Concrete,
and Prestressed Concrete APNGA
Portable Nuclear Gauge I Radiation
Safety Officer Class South West
Calibration and Training, CESSWI
Certification
Mr. Lantosh has 3 years working with TKE and has over 12
years of inspection experience with the providing public
works inspection services. Mr. Lantosh has provided
inspection services to several municipalities throughout
Southern California. He has completed project inspection
services for the cities of Fontana, Riverside, Moreno
Valley, Highland, Calimesa, Riverside Transit Agency, and
the County of San Bernardino. Mr. Lantosh's background
in public works inspection and oversight provide him with
an extensive knowledge of ASTM specifications and OSHA
standards. Additionally, Mr. Lantosh has provided
coordination with other project professional services
including geotechnical and survey. Mr. Lantosh has
worked as a public works inspector for inspection of
capital improvement and developer installed
improvements relating to the construction of water,
sewer, streets, drainage, traffic signals, parks and housing
tract improvements. Mr. Lantosh has prepared daily
inspection reports, developed construction photo logs,
assisted with progress and final payment processing,
assisted with change order negotiations, verified
compliance with contract documents and approved
project submittals, verified public safety compliance, and
developed remedial work lists.
Nelson Blackwell, C.P.I.I.
Senior Public Works Inspector
ICC - Special Inspector, Soils, Reinforced
Concrete, Reinforced Masonry and ACI
Field Testing, Technician Grade 1Special
Inspection Certification and Training -
Southwest Training and Calibration
Mr. Blackwell has 3 years working with TKE and nearly 9
years of experience providing inspection services for
capital projects to several agencies throughout Southern
California. His services include but are not limited to site
grading, sewer and waterline installation, street paving,
American Disabilities Act (ADA) improvements,
underground infrastructure, utilities installation, steel
reinforcements, concrete and masonry, path/retaining
walls, and parking lot installation. Additionally, he is
skilled in understanding project plans and specifications,
accessing applicable code, maintaining good and proper
relationships with project stakeholders and contractors,
and helping to prepare final project documents. Mr.
Blackwell has prepared daily inspection reports,
developed construction photo logs, verified compliance
with contract documents and approved project
submittals, and verified public safety compliance.
Naeem Dullo
Senior Public Works Inspector
DSA Masonry Special Inspector,
ICC—Special Inspector, Structural
Masonry, Reinforced Concrete,
Structural Steel & Bolting, Spray
Applied Fire Proofing
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach ! t'
Page 17
ACI — Concrete Field -Testing Technician Grade I improvements relating to the construction of water,
Mr. Dulloo has 1 year working with TKE and collectively 5 sewer, streets, drainage, traffic signals, parks and housing
years of experience providing construction inspection tract improvements. Mr. Biscotti has prepared daily
services for public and private residential, commercial, inspection reports, developed construction photo logs,
industrial, and infrastructure projects in Southern assisted with progress and final payment processing,
California. He has successfully delivered a wide range of assisted with change order negotiations, verified
project types, involving, yet not limited to: underground compliance with contract documents and approved
utilities, soils & trenching, street paving, ADA project submittals, verified public safety compliance, and
improvements, parking lot installation, concrete, developed remedial work lists.
masonry, structural & reinforcing steel, and underground
infrastructure. Work performed has consistently aimed to Mike Counce
meet and exceed expectations of clients in the Los Senior Public Works Inspector
Angeles, Orange, San Bernardino, Riverside, and San
Diego counties. Mr. Dulloo has specialized expertise and
knowledge in various construction disciplines, inspection
principles, the California Building Standards Code, ASTM
Standards, and plan reading. Beyond expertise, his
character fosters amicable and effective relationships
with project stakeholders and contractors, making him a
valuable asset to any project he is involved in.
Steve Biscotti
Senior Public Works Inspector
tl r
OSHA 30, 16HR QSP Training,
Lean Manufacturing Seminar,
Forklift Certification, Step 2000
Courses, Conflict & Confrontation
Seminar
Mr. Biscotti joined TKE 10 years ago and has nearly 19
years of inspection experience with the last 8 years
providing public works construction inspection services.
Mr. Biscotti has provided inspection services to several
municipalities throughout Southern California. He has
completed project inspection services for San Bernardino
Municipal Water Department, East Valley Water District,
Rubidoux Community Services District, and the Cities of
Fontana, South El Monte, Riverside, Moreno Valley,
Hemet, Calimesa, Riverside Transit Agency, and the
County of San Bernardino. Mr. Biscotti's further
background in steel manufacturing inspection and
oversight provide him with an extensive knowledge of
ASTM specifications and OSHA standards. Additionally,
Mr. Biscotti has received Step 2000 certification from
Siemens for electrical design and inspection. Mr. Biscotti
has provided coordination with other project professional
services including geotechnical and survey. Mr. Biscotti
has worked as a Public Works Inspector for inspection of
capital improvement and developer installed
Electrical Journeyman Licensed,
Certification Electrician, ABC
Apprenticeship Graduate
Mr. Counce has 3 years working
with TKE and is a certified
journeyman electrician with 17
years of commercial and residential experience. He is
adept in performing electrical installations, maintenance
and repairs in homes, schools, hospitals and plant
facilities; knowledgeable in all areas of the national
electrical code; and excels in analyzing and solving
problems with various electrical controls and systems.
His experience includes electrical systems and controls,
installations and maintenance, electromechanical repairs,
blueprints, schematics, generators, transformers,
switches, circuit breakers, electrical code, safety, wiring
diagrams, troubleshooting, testing instruments, motors
and conduit.
Mr. Counce served as journeyman electrician or
apprentice on more than 100 new home construction
projects as well as dozens of major commercial projects.
He earned a reputation for expertise in complex
troubleshooting and problem resolution. He also gained
extensive experience in analyzing and following manuals,
schematic diagrams, blueprints and other specifications
and mastering the use of measuring/testing instruments
such as ammeters, ohmmeters, voltmeters and testing
lamps.
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach -
Patrick Palafox inspections. In addition, Mr. Enscoe has provided
Senior Public Works Inspector coordination with other project professional services
(e.g., Geotechnical and Surveying).
OSHA 10 Certification
Mr. Palafox has 9 years working
with TKE with nearly 18 years of
experience in public works
construction and has provided
inspection services for the past
four years. Recently, Mr. Palafox
is providing on -call inspection services to the San
Bernardino Municipal Water Department for developer
installed water and sewer projects, the City of Calimesa
for capital improvement and developer installed street,
drainage, utility and housing projects as well as street,
drainage, park, water and sewer improvements to
numerous Cities, municipal agencies, Rubidoux
Community Services District, and the City of Highland. In
addition to daily inspection services, Mr. Palafox has
prepared daily inspection reports, developed
construction photo logs, assisted with progress and final
payment processing, assisted with change order
negotiations, verified compliance with contract
documents and approved project submittals, verified
public safety compliance, developed remedial work list
and system startup inspections. Mr. Palafox has provided
coordination with other project professional services
(e.g., Geotechnical and Surveying) and provided
simultaneous inspection of multiple contractors and
crews.
Brad Enscoe
Senior Public Works Inspector
OSHA 30 Certified
16HR QSP Training Seminar
Mr. Enscoe has 18 years working
with TKE providing public works
construction inspection services.
Recently, Mr. Enscoe is providing
on -call inspection services to the City of Calimesa for
developer installed housing projects as well as street,
drainage, and sewer improvements to the Cities of
Fontana, Redlands, and El Monte. In addition to daily
inspection services, Mr. Enscoe has prepared daily
inspection reports, developed construction photo logs,
assisted with progress and final payment processing,
assisted with change order negotiations, verified
compliance with contract documents and approved
project submittals, verified public safety compliance,
developed remedial work list and system startup
Tyler Ault
Senior Public Works Inspector
Confined Space Training
NUCA Excavation Safety &
Competent Person Certified
Mr. Ault joined TKE 3 years ago
with 4 years of experience in
public works street, parking lot,
pipeline and development construction. With firsthand
experience in the construction industry, he brings an
invaluable perspective to the projects as an inspector. He
is adept in confirming compliance with plans,
specifications, and safety standards by conducting
detailed, on -site surveys and communicating necessary
adjustments with the project managers. With thorough
attention to each project, he is able to identify potential
problems and implement corrections before causing
delays. His experience includes inspection of streets,
pavement replacement, pedestrian improvements,
parking lots, signing and striping, as well as sewer main
and potable water installation projects installation of
sewer, potable water, non -potable water, storm drain,
and storm water retention basins; performance of
hydrostatic testing, air pressure testing, and mandrel
testing; and implementing safety measures to follow
OSHA codes and regulations.
Request for Proposal No. 24-561 On -Call Inspection Services
City of Newport Beach
EXHIBIT B
SCHEDULE OF BILLING RATES
TKE Engineering, Inc. Page B-1
INE ENGINEERING, INC.
2023- 2024
HOURLY
RATE
Principal in Charge..................................................................................... $180.00
Project Manager/Construction Manager/Licensed Surveyor .......................... $170.00
Traffic Engineer(TE)................................................................................... $160.00
Senior Engineer/Project Engineer (PE)/Senior Plan Checker ........................ $160.00
Assistant Project Manager/Associate Engineer ............................................ $150.00
Assistant Engineer/Plan Checker/Designer.................................................. $140.00
AutoCAD Technician................................................................................... $130.00
Engineering Technician.............................................................................. $100.00
Clerical..................................................................................................... $ 90.00
Forensic Engineering.................................................................................. $275.00
Expert Witness Testimony......................................................................... $375.00
SURVEYING SERVICES
2-Man Survey Crew (Prevailing Wage) ........................................................ $250.00
CONSTRUCTION SERVICES
Senior Construction Inspector (Prevailing Wage) .......................................... $130.00
Construction Inspector (Prevailing Wage) .................................................... $120.00
REIMBURSABLE COSTS
In-house Reproduction............................................................................... Cost
Printing and Materials................................................................................ Cost + 10%
Express Mail/Courier/Next Day Service ...................................................... Cost + 10%
Special Subconsultant Services................................................................. Cost + 10%
Consultant shall provide written notice to City of annual rate updates during the course of this
Agreement, prior to such rates becoming effective. Annual rate increases shall not exceed five
percent of the rates in effect immediately prior to such increase. Any and all fees, costs, expenses,
reimbursements, or other charges of any nature whatsoever require prior written approval of City.
Revised July 2023
EXHIBIT C
INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES
Provision of Insurance. Without limiting Consultant's indemnification of City,
and prior to commencement of Work, Consultant shall obtain, provide and
maintain at its own expense during the term of this Contract, policies of
insurance of the type and amounts described below and in a form satisfactory
to City. Consultant agrees to provide insurance in accordance with
requirements set forth here. If Consultant uses existing coverage to comply and
that coverage does not meet these requirements, Consultant agrees to amend,
supplement or endorse the existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Consultant shall maintain Workers'
Compensation Insurance providing statutory benefits and Employer's
Liability Insurance with limits of at least one million dollars ($1,000,000)
each employee for bodily injury by accident and each employee for
bodily injury by disease in accordance with the laws of the State of
California.
Consultant shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its City Council,
boards and commissions, officers, agents, volunteers and employees.
B. General Liability Insurance. Consultant shall maintain commercial
general liability insurance, and if necessary excess/umbrella liability
insurance, with coverage at least as broad as provided by Insurance
Services Office form CG 00 01, in an amount not less than two million
dollars ($2,000,000) per occurrence, four million dollars ($4,000,000)
general aggregate. The policy shall cover liability arising from premises,
operations, personal and advertising injury, and liability assumed under
an insured contract (including the tort liability of another assumed in a
business contract).
C. Automobile Liability Insurance. Consultant shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Consultant
arising out of or in connection with Work to be performed under this
Contract, including coverage for any owned, hired, non -owned or rented
TKE Engineering, Inc. Page C-1
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit for each accident.
D. Professional Liability (Errors & Omissions) Insurance. Consultant shall
maintain professional liability insurance that covers the Services to be
performed in connection with this Agreement, in the minimum amount
of two million dollars ($2,000,000) per claim and four million dollars
($4,000,000) in the aggregate. Any policy inception date, continuity
date, or retroactive date must be before the Effective Date of this
Agreement and Consultant agrees to maintain continuous coverage
through a period no less than three years after completion of the
Services required by this Agreement.
E. Excess/Umbrella Liability Insurance. If any Excess or Umbrella Liability
policies are used to meet the limits of liability required by this contract,
then said policies shall be "following form" of the underlying policy
coverage, terms, conditions, and provisions and shall meet all of the
insurance requirements stated in this contract, including, but not limited
to, the additional insured and primary & non-contributory insurance
requirements stated herein. No insurance policies maintained by the
City, whether primary or excess, and which also apply to a loss covered
hereunder, shall be called upon to contribute to a loss until the
Consultant's primary and excess/umbrella liability policies are
exhausted.
4. Other Insurance Requirements. The policies are to contain, or be endorsed
to contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Contract shall be endorsed to waive subrogation against
City, its City Council, boards and commissions, officers, agents,
volunteers and employees, or shall specifically allow Consultant or
others providing insurance evidence in compliance with these
requirements to waive their right of recovery prior to a loss. Consultant
hereby waives its own right of recovery against City, and shall require
similar written express waivers and insurance clauses from each of its
subcontractors.
B. Additional Insured Status. All liability policies including general liability,
products and completed operations, excess/umbrella liability, pollution
liability, and automobile liability, if required, but not including professional
liability, shall provide or be endorsed to provide that City, its City Council,
boards and commissions, officers, agents, volunteers and employees
shall be included as additional insureds under such policies.
C. Primary and Non -Contributory. Consultant's insurance coverage shall
be primary insurance and/or the primary source of recovery with respect
to the City, its City Council, boards and commissions, officers, agents,
volunteers and employees. All liability coverage shall apply on a primary
TKE Engineering, Inc. Page C-2
basis and shall not require contribution from any insurance or self-
insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation or nonrenewal of coverage (except
for nonpayment for which ten (10) calendar days' notice is required) for
each required coverage.
5. Additional Agreements Between the Parties. The parties hereby agree to
the following:
A. Evidence of Insurance. Consultant shall provide certificates of insurance
to City as evidence of the insurance coverage required herein, along
with a waiver of subrogation endorsement for workers' compensation
and other endorsements as specified herein for each coverage. All of
the executed documents referenced in this Contract must be returned
to City within ten (10) regular City business days after the date on the
"Notification of Award". Insurance certificates and endorsements must
be approved by City's Risk Manager prior to commencement of
performance. Current certification of insurance shall be kept on file with
City at all times during the term of this Contract. The certificates and
endorsements for each insurance policy shall be signed by a person
authorized by that insurer to bind coverage on its behalf. At least fifteen
(15) days prior to the expiration of any such policy, evidence of
insurance showing that such insurance coverage has been renewed or
extended shall be filed with the City. If such coverage is cancelled or
reduced, Consultant shall, within ten (10) days after receipt of written
notice of such cancellation or reduction of coverage, file with the City
evidence of insurance showing that the required insurance has been
reinstated or has been provided through another insurance company or
companies. City reserves the right to require complete, certified copies
of all required insurance policies, at any time.
B. City's Right to Revise Requirements. The City reserves the right at any
time during the term of the Contract to change the amounts and types
of insurance required by giving Consultant ninety (90) calendar days'
advance written notice of such change. If such change results in
substantial additional cost to Consultant, City and Consultant may
renegotiate Consultant's compensation.
C. Right to Review Subcontracts. Consultant agrees that upon request, all
agreements with subcontractors or others with whom Consultant enters
into contracts with on behalf of City will be submitted to City for review.
Failure of City to request copies of such agreements will not impose any
liability on City, or its employees. Consultant shall require and verify that
all subcontractors maintain insurance meeting all the requirements
stated herein, and Consultant shall ensure that City is an additional
insured on insurance required from subcontractors. For CGL coverage,
TKE Engineering, Inc. Page C-3
subcontractors shall provide coverage with a format at least as broad as
CG 20 38 04 13.
D. Enforcement of Agreement Provisions. Consultant acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Consultant of non-compliance with any requirement imposes no
additional obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features
or limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a
given issue and is not intended by any party or insured to be all inclusive,
or to the exclusion of other coverage, or a waiver of any type. If the
Consultant maintains higher limits than the minimums shown above, the
City requires and shall be entitled to coverage for higher limits
maintained by the Consultant. Any available proceeds in excess of
specified minimum limits of insurance and coverage shall be available
to the City.
F. Self -Insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
insured retentions be eliminated, lowered, or replaced by a deductible.
Self-insurance will not be considered to comply with these requirements
unless approved by City.
G. City Remedies for Non -Compliance. If Consultant or any subconsultant
fails to provide and maintain insurance as required herein, then City
shall have the right but not the obligation, to purchase such insurance, to
terminate this Agreement, or to suspend Consultant's right to proceed
until proper evidence of insurance is provided. Any amounts paid by
City shall, at City's sole option, be deducted from amounts payable to
Consultant or reimbursed by Consultant upon demand.
H. Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Consultant's performance under this Contract, and that involve or may
involve coverage under any of the required liability policies. City
assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such claim or claims if they
are likely to involve City.
Consultant's Insurance. Consultant shall also procure and maintain, at
its own cost and expense,
own judgment may be
prosecution of the Work.
any additional kinds of insurance, which in its
necessary for its proper protection and
TKE Engineering, Inc. Page C-4
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