HomeMy WebLinkAbout4.04 Amend Street Sweeping Agreement CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: December 8, 1986
SUBJECT Amendment to Street Sweeping Agreement
EXHIBITS ATTACHED o Letter dated October 27, 1986 from A-1 Enterprises '
Insurance Broker
o Resolution Amending Agreement
RECOMMENDATION /� Adopt Resolution
FINANCIAL STATEMENT: Amendment will not impact cost of service
DESCRIPTION At the regular City Council meeting on September 22,
1986, the Council awarded a contract to A-1 Enterprises for the provision of
street sweeping services . Subsequent to that time the firm has experienced
difficulties with meeting the insurance requirements of the agreement.
The agreement called for $1 million of General Liability Insurance and
$1 million of Auto Liability Insurance. A-1 Enterprises currently maintains
$500, 000 of General Liability Insurance and a total of $1 . 5 million of Auto
Liability. Their current insurance program ends on February 1, 1987 . In
seeking a renewal they have requested General Liability policy limits of $1
million.
Although the renewal is two months away, their Insurance Broker is hopeful
that a softening in the insurance market will result in their ability to
place the $1 million General Liability policy.
A-1 Enterprises has requested an amendment to the agreement to allow the
existing insurance limits . The City Attorney has reviewed the proposal .
Given the problem with the insurance markets and the fact that the greatest
potential for risk is with their vehicles, the policy limits appear
reasonable. The policy limits would be $500, 000 General Liability Insurance
and a total of $1 . 5 million Auto Liability Insurance.
Staff recommends that the City Council adopt the Resolution amending the
agreement.
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October 27, 1986
City of Dublin
Contract Service Section
P.O. Box 2340
Dublin, CA 94568
A-1 ENTERPRISES, PLEASANTON, CA
Gentlemen:
I have received a request from our insured A-1 Enterprises to provide
your City with a certificate of insurance evidencing General Liability,
Auto Liability and Workers' Compensation coverages for our insured,
A-1 Enterprises.
'As you know, the main exposure for A-1 Enterprises as regards their
contract with you is Auto Liability coverage. This coverage meets
your request for $1 million. As regards General Liability coverages,
we would prefer that we provide you with $500,000 as the exposure
is nominal and the $500,000 limit is accepted by all of the other
entities for which this company does business. As you know, in a
very difficult insurance marketplace liability insurance premiums
are very expensive and particularly in relationship to the size
of the contracts that are being awarded to our various insureds.
Inasmuch as the exposure is almost nil as regards General Liability,
we trust that our enclosed certificates of insurance will suffice.
Please feel free to call me if I can answer any additional questions.
truly yours,
Donald L. Bone
President
DLB:tab
Enclosures)
3161 PUTNAM BOULEVARD (P.O. BOX 232004), PLEASANT HILL, CALIFORNIA 94.523
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RESOLUTION N0.
A RESOLUTION OF THE 'CITYrCOUNCILti:,
OF THE CITY OF=;DUBLIN
f D�
AMENDING AGREEMENT FOR 'f°
STREET SWEEPSING AND LITTER PICK=UP SERVICES
WHEREAS, the City of Dublin',entered :iJnto an agreement.';.
with A-1 Enterprises to provide street`sweeping.,and :litter pick-up
services; and :.
WHEREAS, the agreement was' approved by"the City 'Council
on September 22, 1986; and
WHEREAS, the City required the :services of A-1
Enterprises beginning October 1, 1986;',' and
WHEREAS, due to insurance market `condi'tions, A-1
Enterprises has had difficulty obtaining the specified limits of
general liability insurance.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin does hereby authorize the Mayor to execute the
contract amendment attached hereto and made apart hereof, which
will modify the insurance limits for the street. swe.eping and
litter pick-up services contractor.
PASSED, APPROVED AND ADOPTED this 8th day of December,
1986 .
AYES:
NOES :
ABSENT:
Mayor
ATTEST:
City Clerk
AMENDMENT TO AGREEMENT -
..F,OR STREET SWEEPING AND LITTER PICK-UP SERVICESS
This amendment to the agreement dated the 22nd day of September.,
1986, by,,'and between the City of Dublin, hereinafter "CITY" and
A-1 Enterprises, hereinafter "CONTRACTOR" , shall amend the
original agreement in the following manner:
Section-6 . ' Insurance and Indemnification shall be amended to
read as follows :
6. Insurance and Indemnification
Contractor shall assume liability and pay all costs of defense,
including -legal fees and court costs, and hold the City harmless
from loss, damages, costs or expenses caused by any negligent or
wrongful acts or omissions of Contractor' s officers, employees
and agents which may occur in the performance of the term, duties
and obligations of this agreement. Contractor shall provide a
certificate of insurance to the City, to be included as part of
this agreement, which will give evidence of general liability of
not less than $500, 000 and auto liability insurance of not less
than $1, 500, 000 for personal injury and accidental death per
occurrence, and $500, 000 for property damage per occurrence. The
City shall be named as an additional insured in any such
liability insurance policy. The Contractor shall pay all
premiums for said insurance.
Contractor shall also provide City with a certificate of
insurance, to be included as part of this agreement, which will
give evidence that Contractor ' s employees are covered by Workers '
Compensation Insurance.
Contractor shall provide City with a performance bond issued by a
corporate surety, naming City as obligee, in an amount equal to
the estimated street sweeping charges for a one month period as
determined by the City Manager. Said performance bond shall be
included as part of the agreement with the City.
All certificates of insurance and performance bonds which are
part of the agreement with City shall be approved by the City
Manager and City Attorney as to form and content.
City of Dublin, Mayor Date
ATTEST:
City Clerk
James Rashleigh, A-1 Enterprises