Contract Tombleson Restroom 04-01-2014

8/10/2019 Contract Tombleson Restroom 04-01-2014

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CITY OF CARMEL BY THE SEA

CONTRACT

FOR THE

BEACH RESTROOMS PROJECT

THIS CONTRACT is made and entered into on the s t day ofA p r i l , 2014, y and between the City of Cannel-by-the-Sea, Monterey Count y, State

of California , hereinafter called City , and Tombleson Incorporated, herein after calledContractor .

WITNESSETH: That City and Contractor have mutuall y covenanted and agreed, andby these presents do covenant and agree with each other as follows:

1. That for and in consideration of the covenants and agreements hereinaftercontained on the part of City, and the sums of money hereinafte r designated to e paid toContractor y City in the manner and form as shown in the attached specificatioll:s , Contractorhereby covenants and agrees to and with City, to furnish all labor, tool s, app liance s, equipment,plant and transportation , and any and all other expenses nece ssary or incidental to theperformance of certain work hereinafter speci fied and to complete the public work herein

referred to for City, for the schedule and item s awarded, all as more particularly and in detail setforth in those certain specifications filed in the office of the City Administrator, and identified ythe signatures of the parties to this agreement. True copies of the contract docum ents togetherwith all modifications incorporated in those document s efore their execut ion, are hereuntoannexed y and refere nce thereto incorporated herein and mad e a part hereof as though in thisdocument fully set forth. The contract documents shall cons ist of this Contract, 5 page s);Notice to Bidder s (2 pages ), Bid Form Proposal 5 pages) , Bid Sheets 2 pages), Sample Bidder sBond 2 pages), Specifications (10 pages).

2. Contract Price: Contractor agrees to receive and accept and City agrees to paythe proposal price s as full compensation for furnishing all materials and for doing all the workembraced and contemplated in thi s agreements and as set forth in the Contractors proposalsubmitted to the City of Cannel-by-the-Sea, on the 26 1 of March 2014, and the true copy there ofattached, and for all loss or damage arising out of the nature of said work, or from the action ofthe elements of from any unfore seen difficultie s or obstructions which may arise or eencountered in the prosecution of the risk connected with the work, and for well and faithfullycompleting the work and the whole thereof , in the manner and according to the saidspecific ation s and the requirements of the Building Official (City representative) under them, towit: the Contract price of $619,654 .00 as set forth in the Contractor's Proposal of Bidder for thework awarded under this agreement.

Contractor further agrees to plan the work and to prosecute it with such diligence thatsaid work and all of it shall e completed as identified in the Contract Documents for the BeachRestrooms Project.

Upon completion, the Contractor shall present a Statement of Compliance, if applicable.Attached thereto there shall be copies of payroll certification records indicating the prevailinghourly rate of per diem wages for thi s locality (Area 2) pursuant to Labor Code Secti on 1773.2 .

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Pursuant to SB222 , City is required to withhold from any progress payments owed to acontractor any amount that has been forfeited as penalties, or as wages owed to employees whohave not been paid the prevailing wage for work performed. This allows the intervention b y theDivision of Labor Standards Enforcement, which is headed by the State Labor Commission, in acontractor s laws uit for recovery of amount s withhe ld b y an awarding body. A ll withheld wagesand penalties will be tran sferred to the Labor Commissioner for disbursement in those caseswhere a contractor fails to bring a law suit for amounts with held within ninety (90) days aftercompletion o f the public works contract and formal acceptance o f the job by the awarding body.The Labor Commissioner is then permitt ed to intervene in any law suit brought by the contractoragainst an awarding body for recov er y of amounts withh eld.

Certified payroll records must be on the fonns provided by the Division o f Labor orcontain the same information required on the Division s form.

3. Payment Contractor shall be paid for the work within thirty (30) days ofsatisfac tory completion. Notice of Completion shall be given to the City in writing. If any workis not sat isfactoril y completed , City shall have the right to withhold from the payment a sumequal to one and one-half time s the estimated cost s of satisfactorily completing the work. Cityshall have the right to use sa id sum to pay Contractor for satisfactorily completing the work, orupon refusal o f Contractor to satisfactorily comp lete the work, to pay another contractor to do so.Any money remaining after sat isfac tory comp letion sh a ll be paid to Contractor , less any sumsowed City by Contractor. Contractor shall have the right to substitute securities for any monieswithhe ld by City to en sure performance under this agreement pursuant to Government CodeSection 4590.

4. The parties agree that this Contract shall be binding upon themselves , their heirs,executor s, administrators, successors and ass ignees and hereby agree to the full performance ofthe covenants herein contained.

5. No interest in this Contract shall be tran sferred by Contractor to any other party,and any s uch transfer shall cau se annulment of this Contract, so far as City is concerned. Allrights of action, however , for any breach o f this contract are reserved to City.

6. Supplies Contractor shall keep ham1less , indemnify and defend City , it sofficers and agents , on account o f article s supp lied by Contractor under thi s Contrac t, o f which itis not patentee or which it is not entitled to use or sell.

7. Hold Harmless Contractor agrees to hold harmles s, indemnify and defendCity , it s elected officials, agents, officers, and employees thereof, includin g the BuildingServices Specialist (City s representative) , whi le acting within the sco pe of their dutie s from andagainst any and all liabilit y, claims, damages and co st of defense arising out o f Contractor sperformance o f the work described herein including injurie s and damages arising fromnegligence o f City or other s except for injuries and damages arising from sol e negligence ofCity. Contractor will require any and all subcontractors to conform with the provi sions of this

clause and provide proof of all required in surance prior to commencing any work.8 Warranties Contractor agrees that it will warrant all work p erformed and

equipment supplied hereunder for a period of one year or, in the case o f equipme nt , for theperiod of th e manufacturer s warranty if such warranty be for a period lon ger than one year.Contractor shall immediately correct all defective workmanship discovered within one year afteracceptance of final payment b y it and shall indemnify and defend City against all lo ss anddamage occasioned by any such defect , di sc overed within said year, even th ough the damage orlo ss may not be ascertained until after the expiration thereof. Nothing herein con stitutes a waiver

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of City s rights or any statut e of limitations.

9 Independent Contractor. While engaged in carrying out th e term s andconditions of this Agreement, Contractor is an independent con tra ctor and not an officer,employee or agent of City . Contractor shall not at any time or in any mann er represent that it orany of ts agents or emplo yees is in any mann er, an agent o r employee of City.

10. Contractor shall provide :

A. Compensation Insurance und er the laws of the State of Californi a, for all laboremployed b y it or by any su bc ontractor under it, who may come wit hin the protection ofsuc h Workers ' Com pensation law s of the State A. Workers CompensationInsurance. Contractor shall maintain adequate Worker s' of California, and sha ll pr ovideemployers general liabilit y insurance for the b enefit of its empl oyees and the empl oyeesof any subco ntract or under it, not pr otected b y such compensation laws, and proof ofsuch insu rance, satisfactory to City, shall be given by fil ing certificates o f such insurancewith City , in a form sa tisfactory to City. If such insurance is underwritten by any agencyother than the State Compensation Fund, such agency shall be a company authorized todo bu siness in the State of California. Contractor shall not commence wo rk untilcertified proof of nsurance has been p rovided to City.

B. Public Liability and Property Damage Insurance . Contractor shall take outand maint ain during the life of this Contract such public liab ility and prop erty dama geinsurance as shall protect it and any subcontractor perfo rmin g work covered by thiscontract from claim s for p ersonal injur y or pr operty dama ges w hich may arise be c ause ofthe nature of the work or from operations under this con tract, whet her such operations beby Contractor or b y any subcontractor or anyone directl y or indirectl y employed by e itherof them. The Public Liability, Personal Injury and Prop erty Dam age Insur ance sh all alsodirectly protect the City, its officers, agents and emplo yees, as well as the Contractor andits subcontractors, and all in surance p olicies is sued her eunder shall so state. The City ofCarmel-by-the-Sea, its elected officia ls, officers , agents and employee s shall bespecifically named , by written endorsement to the Certificate of Insurance, as ad diti ona l

insured for this project unde r such insurance policy and Contractor shall provide Citywith a certificate of such insurance for the term of thi s contr ac t The amounts of suchinsurance shall b e as follo ws: Co mbin ed single limit of not le ss than One Million Dollars( 1 000 ,000.00) per occurrence and Tw o Million Dollar s ( 2,000,000.00) in aggregate.

Said insurance shall be with a company acceptable to City and shall be primar y over anyother valid or collectible insurance City may have. Th e insur ance carrier shall provideCity with a certificat e evincing the ex istence of the insur ance and specifying compliancewith these terms and the issuing compan y shall agree to provide Cit y with thirty (30)days prior written notice of cancellation or non -renewa l of the polic y

Con tractors liability insurance and automobile liabilit y insurance covering al l vehicles

used in th e perform anc e of th e Contract providing for pub lic liability, personal injury andproperty damage insurance with l imits of the not less than one mill ion doll ars( 1 ,000 ,000) combined single limit.

11 Safetv . Contractor shall conform to the rule s and r egulation s pertaining tosafety es tablish ed by the Ca lifornia Di vision of l ndu st rial Safety.

12. Liquidated Damages. In consideration of liquidate d damage s to City ,occasioned by Contractor not completing the work within the time set for Contr actorsperformance, City ha ving to prepare termination noti ces, prepare specifications to com plete the

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work, re-let bids , and experience the general delay of not having the work completed in a timelyfashion, the parties agree that it would be extremely difficult and impractical to fix actualdamages and that Contractor agrees if the Contract is not completed within the time periodspecified in the Contract, it will pay to City the sum of seven hundred fifty dollars ( 750.00)each and every calendar days delay in finishing the work in exces s of the number of workingdays prescribed in the Contract , said sum of liquidated damages to be deducted from the amountdue the Contractor for work completed.

13. Conflictsin

Documents This Contract and the contract document s areintended to constitute one complete and consistent contract. Should any conflict exist,Contractor shall secure written instructions from Sharon Friedrich sen Public Services Director(City Representative) before proceeding.

14. Protecting Trees Contractor acknowledges th at it is familiar with City'spolicies for the protection of trees and agrees to take all reasonable precautions to protect treesnot subject to trimming or removal from damage which might be caused during the work. (Referto the Municipal Code of the City of Carmel-by-the-Sea, Chapter 12.28)

15 . Inspection City shall at all times have the right to inspect the work andmaterials. Contractor shall furnish all reasonable aid and assistance required by City forexamination of the work and all parts thereof. Such inspection shall not relieve Contractor fromany obligation to perform said work strictly in accordance with the specifications or anymodifications thereof and n compliance with the law.

16 . Conflict o Interest Contractor covenants that neither it nor any person workingfor it or with it to provide the services called for by this Contract has any interest , nor shall anyperson acquire any interest , directly or indirectly, which would conflict in any manner or degreewith the perfonnance of the serv ices hereunder. Contractor further covenants that in theperf ormance of this Contract, no person having such interest shall be employed by Contractor.

17. Nondiscrimination Contractor agrees that in the performance of this Contractor any subagreement hereunder, neither Contractor nor any person acting on Contractors behalfshall refuse to employ or refuse to continue in any employment any person on the basi s of race ,religiou s creed , color, national origin, ancestry, physical handicap , medical condition, maritalstatus, sexual pr eference , sex or age. Harassment in the workplace is not permitted in any form.Contractor further agrees to comply with all laws with respect to employment when performingthis Contract.

18. Suspension or Abandonment o Work t is mutually agreed that City maysuspend or abandon, in whole or in part, this Contract upon five (5) days written notice toContractor, in which case City shall pay Contractor for services rendered and work completed atthe time of such suspension.

19. Changes Any changes or am endm ents to thi s Contract shall be written,consecutively numbered , change orders. City may , from time to time, amend or modify thescope of the work to be performed hereunder.

20. Disputes Disputes and other matter s in question between Contractor andCity ' s repre sentative relatin g to this Contract shall be referred to the City Administrator or hi sduly authorized representativ e, who will render a deci sion within a reasonable period of time.

21. Claims Claims for time extensions or cost increases from Contractor shallbe considered valid only if Contractor notifies the City Representative of any such claim inwriting within five (5) working days from the date of the circumstances allegedly justifying theclaim, unless otherwise stated in the Contract specifications. The formal, written claim shall beCity of Carmel by the Sea ContractBeach estrooms Project P a g c 4 o 6


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submitted to the City repre se ntative within ten 1 0) working day s of the notification date, or nolater than fifteen ( 15 days from the date of the circum stances allegedly justifying the claim. TheCity representative may negotiate the claim with Contractor and render a decis ion in writing.Claims not re solved by the City representative may be appealed to the Ci ty Administrator. Anappeal to the City Admini strator shall be submitted , in writing , within five (5) working daysfrom Contractor s receipt of written notice from the City representative that the claim ha s beenrejected. The City Admini strator s decision shall be final. Acceptance of a final contr actpayment by Contractor shall constitute a waiver of any further claim s by it, except tho sepr eviously mad e in writing and identified b y Contractor as unsettled at the time of application forpayment.

22. Notice. Any notice or n otices required or permitted to be given pursuant to thisContrac t ma y be personally serv ed on the other part y giving such notice or may be served byCertified Mail, Return Receipt Request ed, to the following addresses:

CityCity ClerkCity of Carmel-by-the-SeaPost Office Box CCCannel-by-the-Sea , CA 93921

ContractorSteve Locke , Tombleson Incorporated651 South Sanborn Place ,P.O. Box 1388Salinas, CA 93901

23. Contractor s License. Contractor warrants and declar es that its Ca liforniaCon tractor s license number 1 26454 i s va lid , and that it s expiration date is Octob er 31, 2015.

24. Business License . The Contractor s Carmel-by-the-Sea bu siness licensenumber i s _ _ with an expiration date of _ _ _ _

25. Attorneys Fees . If either party hereto s hould brin g any suit against the o th erparty hereto (formal judici al proceeding, mediation or arb itration) , for the breach of an y tenn ,covenant, condition or obligation herein contained to be kept , by such other party , fo r therecovery of any s um due hereunder , or to recover posse ssion of the premi ses, or for any

summary action for forfeitur e of the Lease or to pre ven t furthe r violations of any of the term s,covenan ts, conditions or obligat ion, or for any other relief then , an d in that event, the case sha llbe handled in Monterey County , California, and the prevailing part in such suit or summaryaction shall be entitled to a reaso nabl e attorneys fee to be fixed by the judge, mediator orarb itrator hearing the case and such fee sha ll be include d in the judgment, to geth er with all costs.

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Dated: , 2014- -

e ve Lo cke(Typed or Print ed N ame)

Dat ed ltjJ L 2014

ATTE = -Ci ty r

Ci ty o f Ca rm el b y th e Se aBeac h Res troo m s Pr oj ec t

CONTRA CTOR

(Ti t le)

e d ed y :

t / 1 / f l A ~Carmel-b y-the-Sea Dept. Man age r

C ITY OF CARMEL-BY-THE-SEA ,a Municipal C orporation ,

By : Jas on si cliCity Admini strator

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State Of California< ; ~ = _ c o N T R C T O R SSTATE LICENSE

on mc r CTIVE LICENSEAlDin

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..;_... . . 26454 f l ty CORP

... ._... TOMBLESON IN CORPORA TED

ol 10/31/2015_ A

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CERTIFIC TE OF LI BILITY INSUR NCE DATE (MMIDDIYYYY)4/22 /2014

THIS CERTIFICATE IS ISSUED AS A MATIER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THISCERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S) , AUTHORIZEDREPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the pol lcy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject tothe terms and conditions of he policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to thecertificate holder in lieu of such endorsement s

PRODUCER

Arthur J. Gallagher & Co .Insurance Brokers of CA. Inc . LIC 072629 3321 Fifth St reetHolliste r CA 95 023

INSURED

Tomb leson Incor po ratedP.O. Box 1 388Salinas , CA 93901

COVERAGES CERTIFICATE NUMBER : 631295744INSURERF :

REVISION NUMBER:TH IS IS TO CE RTI FY TH AT THE P OLIC IE S OF INS URANCE LISTED BELOW HAVE BEEN ISSUED TO T HE INSURE D NA ME D A BOV E F OR THE P O LICY PERIODINDICA TE D. NOTWI THS TA ND ING AN Y REQUIREMENT , TERM OR CONDITION OF ANY C ONTRACT OR O THER DOC UMENT WITH RE SPECT TO WHICH THI SCERTIFICAT E MAY BE ISSUED OR MAY PERTAIN , THE INSURANCE AFFORDED BY THE POLIC IES DE SC R IBED HE RE IN IS SUBJ ECT TO A LL T HE TERMS ,EXCLUSI O NS AN D C ONDITIONS OF SUCH POLICIES . LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIM S .

INSR TYPEOF INSURANCEADDL~ ~ POLICYNUMBER ~ ~ ~ ~ , ~ 3 M ~ LIMITSTR INSR

A GENERALLIABILITY y G2 71008 2A 001 /1/20 13 / 1/201 4 EACH OCCURRENCE $ 1,00 0,000

~ m ~~~ ~~E~ ~ ~ n c e \= J MMERCIAL GENERAL LIABILITY $10 0 ,00 0= CLAIMS-MADE OCCUR MED EXP(Any one person) $5,0 00X BF PD . Co ntr li a b PERSONAL & ADVINJURY $1,000 000

X 5 ,000 Ded , BI/ P GENERAL AGGREGATE $2 .00 0,000

GEN'L A G G R E n LIMIT A P n S PER: PRODUCTS COMP/OP AGG $2. 00 0 000

lxlPOLICY ~ ~ f r LOC sB AUTOMOBILE LIABILITY y BA89 156 61 1/2013 /1/20 14 Ea acciden'triN


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t

POLICY NUMBER: G271 B2A 1 COMMERCIAL GENERAL LIABILITYCG2 1 413

THIS ENDORSEMENTCHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED OWNERS LESSEES RCONTRACTORS -SCHEDULED PERSON R

ORGANIZATION

This endorsement modifies insurance provided under the following:

COMMERCIALGENERALLIABILITYCOVERAGEPARTSCHEDULE

Name f Additional Insured Person(s)r Organlzatlon{s) Locatlon(s) f Covered Operations

As Requ i r e d y W r i t t e n o n t r a c t As R e q u i r e d y W r i t t e n o n t r a c t

Informationrequired to complete this Schedu le, ifnol shown above, willbe shown In the Declarations.

A. Section II -Who Is An Insured Is amended to include as an additional insured the person(s) ororgan ization(s) shown in the Schedule, but only with respect to liability for bodily injury , propertydamage or personal and advertising injury caused, n whole or In part, by:

1 Your acts or omissions; or

2. The acts or omissions of those acting on your behalf;in the performance of your ongoing operations for the additional insured(s) at the location(s)designated above,However:

.1:_The n s u r a n c ~a f f o r d ~ ~ ~ o~ u.c h.. ~ d i t i o 1 a. i n ~ u r e ~. on_lya p p ~.s t < ; J _ t h ~ ~ x t ~ n tp e r Y J i ~ t e ~ y I a ~ ;and2. If coverage provided to the additional insured is required by a contract or agreement, theinsurance afforded to such additional insured will not be broader than that which you arerequired by the contract or agreement to provide for such additional insured .

B. With respect to the Insu rance afforded to these additional insureds, the following additionalexclusions apply :

This insurance does not apply to bodily Injury or property damage occurring after:1. All work, including materials, parts or equipment furnished in connection with such work, onthe project (other than service, maintenance or repairs) to be performed by or on behalf of the

, additional insured(s) at the location of the covered operations has been completed; or2 That portion of your work out of which the injury or damage arises has been put to itsIntended use by any person or organization other than another contractor or subcontractorengaged in performing operations for a principal as a part of the same project.


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C. With respect to the insurance afforded to these additional insureds the following is added toSection ll Limits f Insurance:

If coverage provided to the additional insured is required by a contract or agreement the mostwe will pay on behalf of the additional Insured Is the amount of insurance :1. Required by the contract or agreement; or

2. Available under the applicable Limits of Insurance shown in the Declarations ;whichever is less.This endorsement shall not increase the applicable Limits of Insurance shown in theDeclarations.

Jnsurance Services Office Inc.

Insu ranc e Serv ices Office Inc .


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POLICY NUMBER: G2710082A 001 COMMERCIAL GENERAL LIABJLITYCG20 37 413

THIS ENDORSEMENI CHANGES THE POLICY. PLEASE READ IT CAREFULLY .

ADDITIONAL INSURED OWNERS LESSEES ORCONTRACTORS - COMPLETED OPERATIONS

This endorsement modifies Insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PARTPRODUCTS /COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULEName Of Addit ional Insured Person{s)

Or Organlzatlon(s) Locat ion And Oescrlpflon Of Completed Operations

s Req u i r e d y W r i t t e n o n t r a c t As R e q u i r e d by W r i t t e n o n t r a c t

Informationrequired

to completethis

Schedule, ifnot shown above,

willbe shown In the

Declarations.A Section II Who Is An Insured is amended to include as an additional insured the person(s) ororganization(s) shown in the Schedule, but only with respect to liability for bodily injury or propertydamage caused, in whole or in part, by your work at the location designated and described in theSchedule of this endorsement performed for that additional insured and included In the proclucls-completed operations hazard .

However:1. The insurance afforded to such additional insured only applies to the extent permitted by law;and

2. Ifcoverage provided to the additional Insured is required by a contract or agreement, theinsurance afforded to such additional insured will not be broader than that wh ich you arerequired by the contract or agreement to provide for such additional insured.

B. With respect to the insurance afforded to these additional insureds, the following Is added toSection Ill LimitsOf Insurance:

Ifcoverage provided to the additional insured is required by a contract or agreement, the mostwe will pay on behalf of the additional insured ls the amount of Insurance:1. Required by the contract or agreement; or2. Available under the applicable Limitsof Insurance shown in the Declarations;whichever is less.


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This endo rsemen t shall not Increase the applicable Limits of Insurance shown in theDeclarations

Insurance Services Office Inc.

In su r anc e Services Office/ Inc


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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY

CONDITION 4 OTHER INSURANCEAMENDED - NON CONTRIBUTORY

Paragraph 4.c. is deleted in its entirety and replaced by the following :

c If a ll of the other insurance permits contribution by equal shares, we will follow this methodunle ss the insured is required by contract to provide insurance that is primary andcontributory, and the insured contract is executed prior to any loss. Where required by acontract, this Insurance will be primary only when and to the extent as required by that

contr act. However, under the contributory approach each insurer contr ibutes equal amountsuntil it has paid its applicable limit of insurance or none of the loss remains, whichever comesfirs t

If a ny of the other insurance does not permit contribution by equal shares, we will contributeby limits . Under this method, each insurer's share is based on the ratio of its applicable limitof ins urance to the total applicable limits of insurance of all insurers.

GLE 7 1 96


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COMMERCI L UTO GOLD ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASEREAD IT CAREFULLY.

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

SECTION LIABILITY COVERAGEA COVERAGE

1 WHO IS AN INSURED

The following is added :

d. Any organization . .other than a partnership or joint venture, over which you maintain ownership ora majority interest on the effective date of this Coverage Form, if there is no similar insuranceavailable to that organization.

e. Any organization you newly acquire or form other than a partnership or joint venture, and overwhich you maintain ownership of a majority interest. However, coverage under this provision doesnot apply:

(1) If there is similar insurance or a self-insured retention plan available to that organization: or

2) To bodily Injury or property damagen that occurred before you acquired or formed the organization .

f. Any volunteer or employee of yours whlle using a covered auto you do not own, hire or borrow inyour business or your personal affairs. Insurance provided by this endorsement is excess overa ny other insurance available to any volul')teer or employee.

g. Any person, organization ; trustee , estate or governmental entity with respect to the operation,maintenance or use of a covered auto by an Insured, if:

(1) You are obligated to add tl1at person, organization, trustee, estate or governmental entity asan additional insured to this policy by:

(a) an expressed provision of an insured contractn, or'written agreement; or(b) an expressed condition of a written permit issued to you by a governmental or public

authority.

(2) The bodily injury or property damage is caused by an accidentn which takes place after:

(a) You executed the insured contract or written agreement; or. .(b) the permit has been issued to you.

2. COVERAGE EXTENSIONS

a. Supplementary Payments.

Subparagraphs (2) and (4) are amended as follows:

(2) p to $2500 for cost of bail bonds (including bonds for related traffic law violations) requiredbecause of an accident we cover. We do not have to furnish these bonds.

4) All reasonab le expenses incurred by the Insured at our request, including actual loss ofearning up to $500 a day because of time off from work.

Includes copyri ghted mat erial of Insura nce S ervices Offices . Inc. with its pemlissionGECA 701 (01/07) age 1 of 3


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SECTION l l PHYS CAL DAMAGE COVERAGE

A. COVERAGE

The followingis added:

5. Hired Auto Physical Damage

a Any "auto" you lease , hire rent or borrow from someone other than your emp loyees or partne rs ormembers of their household is a covered a uto" for each of your physical damage coverages.

b. The most we will pa y for "loss" in any one "accident Is the smallest of :

(1) $50,000

(2) The actual yash value of the damaged or stolen property as of the time of the Joss "; or

(3) The cost of repairing or replacing the damaged or stolen property with other property of likekind and quality.

If you are liable or the ''accident'', we will also pay up t $500 per "accidenr for the actual loss ofuse to the owner of the covere d auto .

c Our obligation to pay for, repair, return or replace damaged or stolen property will be reduce d byan amount that is equal to the amount of the largest deduct ible shown for any owned auto" forthat coverage. However, any Comprehensive Coverage deductible s hown In the Declarat ionsdoes not apply to "loss" caused by fire or lightning.

d For this coverage , the insuran ce prov4ded is primary for any covered "auto " you hire without adriver and excess over any other collectible insurance for any covered "auto" that you hire with adriver.

6 Rental Reimbursement Coverage

We will pay up to $75 per day for up to 30 days, for renta l reimbursement expenses incurred by youfor the rental of an "auto" because of "loss" to a covered "auto". Rental Reimbursement will be basadon the rental ~ a comparable vehicle, which in 111any cases may b ~subStantially less than 75 perday, and will only be alfowed for a period of time It should take to repair or replace the veh icle withreasonable speed and similar quality, up t a maximum of 30 days . We will also pay up to $500 forreasonable and necessary expenses Incurred by you to remove and replace your materials and

equipment from the covered "auto ".If"loss" results from the total theft of a covf?red auto of the private passenger type, we will pay underthis coverage only that amount of your rental reimbursement expenses which is not already p rovidedunder paragraph 4 Coverage Extension.

7 Lease Gap Coverage

If a long-te rm leased auto is a covered autou and the lessor is named as an Additional Insured -Lessor, In the event of a total loss, we will pc:JYyour addit ional legal obligation to the lessor for anydifference be tween the actual cash value of the "auto" at the time of the loss and the "outstandingba lance" .of the lease .

"Outstanding balance" means the amount you owe on the lease at the time of loss less any amountsrepresenting taxes ; overdue payments; penalties, interest or charges resulting from overduepayment s; additional mileage charges; excess wear and tear charges; and lease termination fees.

B. EXCLUSIONS

The following is added to Paragra ph 3

The exclusion for "loss" caused by or resulting from mecha nical or electrical breakdown does notapply to the accidental discharge of an airbag .

Includes copyrighted material of Insurance Services Offices, Inc. with Itspe rmissionGECA 701 (01/07) Page 2 of 3


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Paragra ph 4 is rep laced with the following:

4 . We will not pay for loss to any of the follow ing :

a . Tapes, records , disks or other s imilar aud io , visual or data e lec troni c devices designed for usewith audio , visua l or data electronic equipment.

b . Equ ipment des igned or us ed for the detection or location of radar.

c . Any electronic equipment that rece ives or transmits audio, visua l or data signals.

Exclusion 4 .c does not apply to:

(1) Electronic equipment that rece ives or transmits audio, visual or data signals, whether or notdesigned solely for the reproduction of sound, if the equipment is permanently installed in thecove red auto at the time of the loss and such equipment is designed to be solely operatedby use of the powe r from the auto's electrical system, in or upon the covered autoM; or

2) Any other elect ronic equipment that is :

(a) Necessary for th e normal ope ration of the covered auto or the monitoring of the covereda uto' s operating system; or

(b) An integral part of the same un it housing any sound reproducing equipment described in (1)above and perma nent ly installed in the opening of the dash or console of the covered autonormally used by the man ufacturer for installat ion of a radio.

D. DEDUCTIBLE

The follow ing is added: No deductible applies to glass damage ifthe g lass is repaired rather than replaced .

SECTION IV . BUSINESS AUTO CONDITIONS

A. LOSS CONDITIONS

ltem 2.a. an d b are replaced with:

2. Duties In The Event of Accident , Claim , Suit or Loss

a . You must promptly notify us . Your du ty to promptly notify us is effective when any of yourexecutive o fficers , pa rtners , members , or lega l representatives is aware of the accident, claim,s uit , o r loss . Knowledge of an accident , claim, suit , or loss , by other employ ee(s) does not

imply you also have such knowledge .

b . To the exte nt possible , notice to us should include :

(1} How, when and where the acc ident or loss took p lac e;

(2) The nam es and ad dresses of any injured persons and witnes ses ; and

(3) The nature and locat ion of any injury or damage arising out of the accident or loss .

The following is added to 5 .

We waive a ny right of reco very we may have against any additional insured under Coverage A. 1.Who Is An Insured g. , but only as respe cts loss arising out of the operation, maintenance or use of acovere d auto pursuant to the provisions of the insured cont ra ct , written agreement , or permit.

B. GENERAL CONDI T IONS

9. is added9 . UNINTENTIONAL FA ILURE TO DISCLOSE HAZARDS

You r unintentiona l fa ilure to disclose any hazards e xisting a t the effec tive date of your poli cy willnot pre judice the coverage a ffo rded. However, we have the right to collect additional premium forany suct1hazard .

COMMON POLICY CONDiTiONS

2.b. is rep lace d by the following :

b. 60 da ys before th e effective date of cancellation ifwe cancel for any other reaso n.

Includes copyrighted mate ria l of Insura nc e Services Offices, Inc . with Its pe rmi ssionGECA 701 (01 /07) Page 3 of 3


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ACKNOWLEDGMENT

State of CaliforniaCounty of Monterey

On . / - ~ c / - - k ;before me, LDRJ f?un/, AftsrM2l -/tu3L-f

Contract Tombleson Restroom 04-01-2014

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