HomeMy WebLinkAboutC-8351-1 - PSA for City of Newport Beach Revenue ForecastAMENDMENT NO. TWO TO
PROFESSIONAL SERVICES AGREEMENT
WITH BEACON ECONOMICS, LLC FOR
CITY OF NEWPORT BEACH REVENUE FORECAST
THIS AMENDMENT NO. TWO TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. Two") is made and entered into as of this 5th day of October, 2018
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and BEACON ECONOMICS, LLC, a
California limited liability company ("Consultant'), whose address is 5777 West Century
Blvd, Suite 895, Los Angeles, California 90045, and is made with reference to the
following:
RECITALS
A. On December 22, 2016, City and Consultant entered into a Professional Services
Agreement ("Agreement') to engage Consultant to prepare a Revenue Forecast
("Project').
B. On March 6, 2018, City and Consultant entered into Amendment No. One to reflect
additional Services not included in the Agreement, and to increase the total
compensation.
C. The parties desire to enter into this Amendment No. Two to extend the term of the
Agreement to allow for the completion of Work as outlined in the Agreement and
Amendment No. One.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on December 31, 2019, unless terminated earlier as set forth herein.
2. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Beacon Economics, LLC Amendment No. Two Page—1
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:17-013 /Zo►$
By:.
�f.Aaron C. Harp PAW tZ•3-14
City Attorney
ATTEST:
Date: ��-10) bp
By:
—k k I
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By: ° F=aM Dnj
n Matusiewicz
Director of Finance
CONSULTANT: Beacon Economics, LLC,
a California limited liability company
Signed in Counterpart
By:
Sherif Hanna
Member
Date:
an
Signed in Counterpart
Christopher Thornberg
Member
[END OF SIGNATURES]
Beacon Economics, LLC Amendment No. Two Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:_ 12-1 3 / Zo 1'8
By:- ,'' A Y"A;
.pol•.Aaron C. Harp ftm m -S-14
City Attorney
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Dan Matusiewicz
Director of Finance
CONSULTANT: Beacon Economics, LLC,
a California limited liabilityompany,
Date: /--) - 5-- /J i
Member
Date
By:, % 2 7 - -)0/ e
Christopher Thornberg
Member
[END OF SIGNATURES]
Beacon Economics, LLC Amendment No, Two Page 2
t
Ln
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
v WITH BEACON ECONOMICS, LLC FOR
CITY OF NEWPORT BEACH REVENUE FORECAST
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 6th day of March, 2018
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and BEACON ECONOMICS, LLC, a
California limited liability company ("Consultant"), whose address is 5777 West Century
Blvd, Suite 895, Los Angeles, CA 90045, and is made with reference to the following:
RECITALS
A. On December 22, 2016, City and Consultant entered into a Professional Services
Agreement ("Agreement") to engage Consultant to prepare a Revenue Forecast
("Project").
B. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement, and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of
Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement and Exhibit A to this Amendment No. One shall
collectively be known as "Exhibit A." The City may elect to delete certain Services within
the Scope of Services at its sole discretion.
2. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be supplemented to include the Schedule of
Billing Rates, attached hereto as Exhibit B and incorporated herein by reference
("Services" or "Work"). Exhibit B to the Agreement and Exhibit B to Amendment No. One
shall collectively be known as "Exhibit B."
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "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 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 be Seventy Thousand Two Hundred
Dollars and 00/100 ($70,200.00). Additionally, the City has allocated a contingency
amount of Four Thousand Eight Hundred Dollars and 00/100 ($4,800.00) for
unexpected costs for a total not to exceed of Seventy Five Thousand Dollars and
($75,000.00). No billing rate changes shall be made during the term of this Agreement
without the prior written approval of City, and no portion of the contingency shall be
expended without prior written approval of City's Project Administrator."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Thirty Thousand Dollars and 00/100 ($30,000.00).
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Beacon Economics, LLC Page 2
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: !I (p W
By:
Aaron C. Harp
City Attorney
ATTEST: 3 g
Date:
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: 3 -L -r
By: 6
Da atusiewicz
Director of Finance
CONSULTANT: Beacon Economics, LLC,
a California limited liability company
Date:
Signed in Counterpart
0
Sherif Hanna
Member
Date:
Signed in Counterpart
By:
Christopher Thornberg
Member
[END OF SIGNATURES]
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Beacon Economics, LLC Page 3
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: to/lS
CITY OF NEWPORT BEACH,
a California municipal corporation
By: By:
Aaron C. Harp 02 .2-1-13 Dan Matusiewicz
City Attorney Director of Finance
ATTEST:
By:
Leilani I. Brown
City Clerk
Attachments:
CONSULTANT: Beacon Economics, LLC,
a California limited liabilit company
Date: n 2' (a - /;
Date:
By:
Chn opher Thornberg
Member
[END OF SIGNATURES]
Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Beacon Economics, LLC Page 3
i:►:4:r1=311AU
SCOPE OF SERVICES
Beacon Economics, LLC Page A-1
EXHIBIT A
SCOPE OF SERVICES
Supplemental Work for an Economic Impact Analysis of Newport Beach Harbor
Beacon Economics, LLC ("Consultant") proposes to conduct on behalf of the City of
Newport Beach ("City") an economic impact analysis of Newport Beach Harbor (the
"Harbor').
The Harbor, its hard infrastructure, and its large interconnected surrounding business
community have demonstrable and significant impacts on the local economy, generating
jobs, tax revenues, and increased economic productivity for the City, Orange County, and
beyond. The purpose of this analysis is to quantify that impact and describe it in terms of
specific economic, fiscal, and social indicators relevant to the prosperity and vitality of the
local community and the local economy.
This economic impact study has three technical components: (1) First, it will evaluate
economic impacts of the Harbor in terms of jobs and output generated; (2) Second, it will
evaluate fiscal impacts of the Harbor in terms of tax revenues to local, state, and national
governments; and (3) Third, it will evaluate the social impact of the Harbor on the local
community of the City in terms of recreational and cultural amenities among other inputs.
The broader architecture of the final report is described below.
Strategic Approach
The final Economic Impact Report will include:
A. Discussion & Overview of the history of Newport Bay and the Newport Bay
economy.
B. Economic Impact Analysis: Narrative discussion of direct, indirect, and induced
economic, fiscal, and social impacts including graphs, tables, and charts. In addition to
the Minnesota IMPLAN Group's Impacts for Planning ("IMPLAN") analysis further detailed
below, Consultant will include the following analyses to estimate impacts not addressed
by IMPLAN:
i. Home Values and Private Dock Access Analysis: Consultant will use regression
analysis to assess the impact of the Harbor on the Assessed Valuation of residential
properties with private dock access; and
ii. Where there is insufficient data available on specific sub -sectors or entities of
interest, Consultant will include discussion of such entities and leverage whatever
additional private data is available to supplement narrative discussion with quantitative
analysis where possible. Where data may be available from private entities like for
example the Newport Beach Dory Fleet or Pearson's Port, the City is expected to facilitate
the timely provision of that data if it is to be used in this analysis.
C. Estimate of loss (economic, fiscal, social) if navigability of the Harbor is not
maintained.
Methodology: Impact Regions
Economic impacts will be measured at the U.S., state, and county levels of geography.
Thus, this analysis will show the economic impact for the following regions:
• Orange County
• The State of California
• The United States
Methodology: Data collection
Given presumed data availability, Consultant has devised the below methodology for
collecting data on expenditures attributable to the Harbor in order to evaluate economic,
fiscal, and social impacts of the Harbor. Using this methodology, the Consultant team will
offer a working definition of "the Harbor" and what it includes; that definition will drive
Consultant's economic impact analysis.
Public expenditures & revenues: City will be responsible for providing the Consultant
team with all relevant available data related to public revenues and expenditures in
association with the Harbor at the City or County level. This data is expected to include:
(1) Relevant City taxes (i.e., property taxes generated through upland properties;
Tidelands fees generated from residential docks, commercial marinas, moorings, etc.);
(2) Relevant County taxes (i.e., Possessory Interest Tax); (3) Expenditures and/or
revenues associated with the Harbor's leases, moorings, mega -yacht anchorage, and
Harbor Patrol and Lifeguards. As discussed, the City will assemble the available financial
data as described above for years 2015-2016 and 2016-2017 and deliver to Consultant
for analysis.
The City will also use reasonable efforts to facilitate the delivery of data associated with
the annual Christmas Boat Parade from the Newport Beach Chamber of Commerce, the
official host of the Parade, to Consultant so that Consultant's economic impact analysis
accounts for this event in its estimation of impacts. If possible, this and any other holiday
event data made available will be used to devise a visitor spending estimate to be
included as an additional input in total expenditures.
The City will also (as discussed and agreed upon) provide Consultant with business
license data with regard to all businesses within 0.25 mile of Newport Bay.
Other data including business data and Federal spending data: In order to devise a
dataset reflective of expenditures attributable to the Harbor, Consultant will do the
following to estimate the expenditures of businesses associated with the Harbor:
1. Consultant will use California Employment Development Department (EDD)
resources to acquire data on business establishments by industry in Newport Beach,
2. Consultant will leverage Info USA as well as other resources to identify by NAICS
code the types of businesses in Newport Beach whose sustained activities are tied to the
Harbor's continued operation as a functioning Harbor. This will require Consultant
analysts to devise a data -driven definition for "the Harbor" indicating which business
activities will be attributed to the Harbor and thus inform its impact. This may also require
a brief literature review to ensure Consultant's definition aligns with generally accepted
industry definitions and parameters.
3. Consultant will then use the Economic Census data to estimate the aggregate
spending of the subset of businesses it determines to be fundamentally tied to the Harbor.
Consultant will adjust its aggregate spending estimate for inflation so its reflective of 2017
dollars.
Where expenditure data is not readily available for items for which the City desires
empirical estimates, Consultant will, at its own discretion, discuss with the City possible
alternative methodological approaches for deriving an estimate. For example, as
discussed, Consultant will derive an estimate on Marine Construction and Maintenance
by using public expenditure data for a sufficiently similar Marina to identify a rough
correlate for private spending on Newport Beach Harbor scaled appropriately.
Unless otherwise required by law, the data provided by City shall be subject to Section
18 of the Agreement.
Methodology: Components 1 & 2
Consultant uses an expenditures -based methodology to evaluate economic and fiscal
impacts:
• Quantifying the Economic Impact: The economic impact of the Harbor will be
determined by translating expenditure data into a direct impact, and then, by applying an
economic multiplier, the indirect and induced economic impacts will be determined. This
analysis will include impacts associated with the Harbor in the context of both job creation
and economic output or productivity.
• Determining the Fiscal Impact: The fiscal benefits to government agencies that are
derived from the Harbor will also be determined based on expenditure data and in terms
of the secondary tax implications for induced and indirect economic activity.
The economic and fiscal impacts of the Harbor will be simultaneously estimated using
Input -Output models. We will use Minnesota IMPLAN Group's Impacts for Planning
(IMPLAN) input-output model.
Impact studies operate under the basic assumption that any increase in spending has
three effects:
1. First, there is a direct effect on the industry itself (the industry under observation
or the target industry), resulting from the additional output of goods or services.
2. Second, there is a chain of indirect effects on all the industries whose outputs are
used by the industry under observation. These are the impacts generated by a business'
supply chain.
3. Third, there are induced effects that arise when employment increases and
household spending patterns are expanded. These impacts follow from the additional
income that is earned in the course of producing this output, both by employees in the
target industry and in those supplying it.
As mentioned, to determine the economic and fiscal impacts of the Harbor, this analysis
will utilize an expenditure -based approach, whereby Consultant will model the impact in
the local economy by looking at the pattern of expenditures and modeling them as
changes in demand for the sectors supplying those inputs. For example, a $5 million
purchase of construction services would be modeled as a $5 million increase in demand
in the construction industry. Other costs such as labor costs, legal expenses, and
administrative expenses will be modeled as changes in demand in each of their
respective sectors. This approach will allow Consultant to capture the full scope of the
impacts generated by the Harbor.
Using the IMPLAN model, Consultant will estimate the direct, indirect, and induced
economic and fiscal impacts on a number of indicators as detailed below:
1. Employment: Consultant will estimate the number of full-time equivalent jobs that
are created as a result of Harbor activities and their distribution across a spectrum of
broad industry clusters.
2. Output: Consultant will estimate the increase in productivity and its distribution
across a spectrum of broad industry clusters.
3. Tax Revenues: Consultant will estimate the fiscal benefits of Harbor activities for
government agencies.
Estimates will be presented for the three impact regions noted above (Orange County,
the State of California, and the United States), subject to data limitations.
Home Values and Private Dock Access Analysis: In addition to those economic and
fiscal impacts estimated using
the IMPLAN analysis, Consultant will leverage regression analysis to assess the impact
on the Assessed Valuation of residential properties with private dock access. Consultant
will put forward an estimate on the additional economic value generated by the Harbor's
provision of private dock access and any associated fiscal impacts.
Estimate of economic loss: Consultant will use the results of the impact analysis to
estimate the economic and fiscal
loss if navigability of the Harbor is not maintained. Consultant will roughly quantify the
extent to which the industries under analysis in this study can be assumed to be directly
reliant on the Harbor's navigability. Using those estimates and accounting for varying
multiplier implications of the industries, Consultant will estimate the anticipated
economic and fiscal loss if the navigability of Newport Beach Harbor is not maintained.
To the extent possible, Consultant will include discussion of social impacts in its
estimation of loss.
Methodology: Components 3
Evaluating the Social Impact: Lastly, Consultant will evaluate the social impact of the
Harbor on the Newport Beach community. Items to be addressed may include (1)
recreational amenities; (2) tourist attractions including major events (i.e., Newport
Beach Christmas Boat Parade); and (3) cultural amenities contributing to the vitality of
the Newport Beach community (i.e., Pearson's Port and other historical and/or cultural
entities operating in association with the Harbor).
DELIVERABLES & TIMELINE
Consultant will provide the following deliverables according to the general timeline
below. This timeline is based on the date project work will commence. The Consultant
team will work closely with the City to ensure a specific calendar schedule is
immediately established.
Preliminary Estimates — Tables that include preliminary results of the impact analysis
will be delivered for the City's evaluation. Because data collection for this impact
analysis is atypical, a specific delivery date for preliminary estimates will be determined
upon execution of this agreement. Typically, preliminary estimates can be delivered
within 30 days of receipt of all necessary data from the Cit v where that data is mutually
determined to be complete and in full.
Draft Economic Impact Report — A written, comprehensive analysis of the expected
economic, fiscal, and social impacts on the Region will be delivered for review and
comment 30 days following the approval by the City of Preliminary estimates.
Final Economic Impact Report — A written, comprehensive analysis of the economic,
fiscal, and social impacts of the Harbor, integrating comments and feedback, will be
prepared and delivered. The report will address any issues raised during the draft
review period. The final report will be up to 30 pages (including appendices) in length
and will include visual depictions of the economic analysis through graphs, charts, and
tables. The final report will be delivered two Q weeks after receipt of final Citv
comments.
As aforementioned, the project schedule for this study is dependent on Consultant's
timely receipt of all necessary data from the City or reasonably facilitated by the City.
Any delay in the receipt of data will likely result in a delay of the final deliverable. With
regard to the three deliverables listed above, specific delivery dates can be determined
upon execution of the agreement and pending the date by which the City agrees to
ensure the transfer of all necessary data for this analysis.
Contingency: The contingency amount is allocated for unexpected additional costs and
analysis related to the Economic Input Analysis of Newport Beach Harbor.
IJ:/:1L=3i
SCHEDULE OF BILLING RATES
Beacon Economics, LLC Page B-1
EXHIBIT B
SCHEDULE OF BILLING RATES
Economic Impact Report: Not -To -Exceed (NTE): $25,200.00
Contingency: Not -To -Exceed (NTE): $4,800.00
Total Not -to -Exceed (Amendment No. One): $30,000.00
rf�
QD1 PROFESSIONAL SERVICES AGREEMENT
v WITH BEACON ECONOMICS, LLC FOR
CITY OF NEWPORT BEACH REVENUE FORECAST
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement') is made and
entered into as of this 22nd day of December, 2016 ("Effective Date"), by and between
the CITY OF NEWPORT BEACH, a California municipal corporation and charter city
("City"), and BEACON ECONOMICS, LLC, a California limited liability company
("Consultant'), whose address is 5777 West Century Boulevard, Suite 895, Los
Angeles, California 90045, 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 prepare a Revenue Forecast ('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 October 5, 2018, unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
Consultant shall diligently perform all the services described in the Scope of
Services and Schedule of Billing Rates attached hereto as Exhibit A and incorporated
herein by reference ("Services" or "Work"). City may elect to delete certain Services
within the Scope of Services at its sole discretion.
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. 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, 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 Exhibit A.
Consultant's compensation for all Work performed in accordance with this Agreement,
including all reimbursable items and subconsultant fees, shall not exceed Forty Five
Thousand Dollars and 001100 ($45,000.00), 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, 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 A to this Agreement 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 A.
Beacon Economics, LLC Page 2
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 Eric Meux 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 Finance Department. City's Director
of Finance 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.
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.
Beacon Economics, LLC Page 3
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 or willful 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.
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
Beacon Economics, LLC Page 4
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 B, 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 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.
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16. SUBCONTRACTING
The subcontractors authorized by City, if any, to perform Work on this Project are
identified in Exhibit A. 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.
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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.
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.
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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"), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the Work
performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeably financially affect such interest.
24.2 If subject to the Act, Consultant shall conform to all requirements of the
Act. 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: Dan Matusiewicz, Director of Finance
Finance Department
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
25.3 All notices, demands, requests or approvals from City to Consultant shall
be addressed to Consultant at:
Attn: Sherif Hanna
Beacon Economics, LLC
5777 West Century Boulevard, Suite 895
Los Angeles, CA 90045
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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.).
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.
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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
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]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
APPROVED AS TO FORM: CITY OF NEWPORT BEACH,
CITY ATTORNEY'S OFFICE a California municipal corporation
Date: I aZIIS 6 Date: / "?, - / g - /!o
By:-2;97By
Aaron C. Harpatusiewicz
City Attorney Director of Finance
ATTEST: CONSULTANT: Beacon Economics, LLC,
Date: Z Z a California limited liability company
Date: /,--) - x? /- / ..
C
By: 'Y
ani I. rown
City CIA 1`;�T
By: /
Sherift Hanna
Managing Partner
[END OF SIGNATURES]
Attachments: Exhibit A - Scope of Services and Schedule of Billing Rates
Exhibit B - Insurance Requirements
Beacon Economics, LLC Page 11
EXHIBIT A
SCOPE OF SERVICES AND
SCHEDULE OF BILLING RATES
Beacon Economics, LLC Page A-1
SCOPE OF WORK
Beacon will provide the City with a forecast for the following variables:
Taxable Sales Forecast — A forecast of taxable sales in the City that extends out five years. This
forecast will include an analysis of the underlying drivers of taxable sales such as population,
consumer spending, prices, and income.
Assessed Valuation Forecast — A forecast of the assessed valuation of property in the City that
extends out five years. This forecast will include an analysis of the underlying drivers of
property valuation, namely property prices and transaction volumes.
Building Permit Forecast—A forecast of building permit values in the city that extends out five
years. This forecast will include an analysis of the underlying drivers of building permit values
such as population, prices, and income.
Transient Occupancy Tax Forecast — A forecast of transient occupancy tax revenues in the City
that extends out five years. This forecast will include an analysis of the underlying drivers of
transient occupancy tax revenues including hotel occupancy, room rates, and overall consumer
spending.
Narrative Write -Up —A concise write up explaining the forecast conclusions. In each
subsequent forecast, there will be a discussion of what has changed and why.
Statistical Section —A comprehensive analysis of the City's population and economy to be
included with the full Annual Report*. As part of the narrative write-up, this section will utilize
the American Community Survey, one of the most comprehensive socioeconomic data sources
outside of the decennial census, in addition to other data sources. This section will cover a wide
range of economic and demographic statistics such as: unemployment rate, key industries (e.g.
financial and insurance firms, retail shopping and tourism), household income, consumer and
business spending, workforce quality (educational attainment), housing market, population
growth and others.
*Mid -Year Update to include Revenue Forecast only.
Presentation — As an option, upon the City's request, Beacon Economics Founding Partner, Dr.
Chris Thornberg can present the material at a time and location jointly determined by Beacon
and the City.
Each forecast that Beacon delivers would be based on its own proprietary, econometric
forecast models. A model will be customized specifically for this project and Beacon will use the
most updated, City -specific data available. The detail and speed with which Beacon can deliver
its forecasts will be greatly enhanced by data provided by the City. The City will need to provide
the necessary historical data for variables to be forecast.
As part of this agreement, Beacon will schedule detailed discussions with the City about tax and
other data that the City has at its disposal, which it may be able to provide to Beacon for use in
this forecasting project. Beacon may need to meet with City staff, via conference call, up to one
hour after the updated historical data is provided to ensure that all necessary inputs are
available to effectively forecast each of the variables above.
SCHEDULE
The Initial Forecast for the first Cycle can be delivered within 45 days of the Effective Date of this
agreement and receipt of the historical data from the City. The Mid -Cycle Forecast can be
delivered approximately six months thereafter, provided that Beacon has received the updated
data by 30 days before the delivery date, unless an alternate date is requested, in which case a
mutually agreed upon date will be determined.
PROFESSIONAL FEES St PAYMENT TERMS
Beacon proposes to provide the City with the Revenue Forecast Report at the following prices.
• 2016 Report (Full and Mid -Year) $14,500
• 2017 Optional Report (Full and Mid -Year) $12,000
• 2018 Optional Report (Full and Mid -Year) $12,000
Presentations *
2016 Presentation
$2,500
• 2017 Presentation with 2 or 3 year agreement $1,500
• 2018 Presentation with 3 year agreement gratis
the following
• In addition to the base fees, the City will reimburse Beacon for V reasonable out-of-
pocket expenses incurred by Beacon as a direct result of fulfilling the scope of this
Agreement: travel related expenses in conjunction with a presentation.
EXHIBIT B
INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES
1. 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 Agreement, 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. Coveracie Requirements.
A. Workers' Compensation Insurance. Consultant shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury
by disease in accordance with the laws of the State of California, Section
3700 of the Labor Code.
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 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 one million dollars ($1,000,000) per
occurrence, two million dollars ($2,000,000) 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
Agreement, including coverage for any owned, hired, non -owned or rented
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit each accident.
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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
one million dollars ($1,000,000) per claim and two million dollars
($2,000,000) 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.
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 Agreement 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 from each of its subconsultants.
B. Additional Insured Status. All liability policies including general liability,
excess 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 insureds under such
policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary 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 (except for nonpayment for which ten
(10) calendar days notice is required) or nonrenewal of coverage 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. Insurance
certificates and endorsement 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
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Agreement. City reserves the right to require complete, certified copies of
all required insurance policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Consultant sixty (60) 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. 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.
D. 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 insurance proceeds in excess of the
specified minimum limits of insurance and coverage shall be available to
the City.
E. 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.
F. 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.
G. Timely Notice of Claims. Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor'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.
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H. Consultant's Insurance. Consultant shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the Work.
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