Loading...
HomeMy WebLinkAboutItem 4.18 NonResAffordHousStudyCITY CLERK FILE # 600-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 21, 2001 SUBJECT: Contract Agreement with Cotton/Bridges/Associates to Prepare the Non-Residential Affordable Housing Fee Study for the City of Dublin ' Report _Prepared by Carol Cirelli, Senior Plannerv~''c-' ATTACHMENTS: o Resolution selecting the consultant Cotton/Bridges/Associates to prepare the Non-Residential Affordable Housing Fee Study for the City of Dublin and authorizing City Manager to execute the agreement for $25,000 Contract between the City of Dublin and Cotton/Bridges/Associates RECOMMENDATION: FINANCIAL STATEMENT: Adopt Resolution selecting the consultant Cotton/Bridges/Associates for preparing the Non-Residential Affordable Housing Fee (Attachment 1); and Authorize the City Manager to execute the contract agreement for $25,000 (Attachment 2). o Direct staff to return on September 18, 2001 with a recommended list of participants for the "Housing Resource Team." Funds for this project have been approved under the Fiscal Year 2001-2002 Budget. DESCRIPTION: Last May, staff distributed Request for Proposals to four consulting firms for purposes of completing the Non-Residential Affordable Housing Fee Study for the City of Dublin. The City received two proposals: one from Economic and Planning Systems, Inc. and the other from Cotton/Bridges/Associates. Consultant interviews were held and the firm CottorffBridges/Associates (CBA) is recommended for the COPIES TO: In-House Distribution ITEM NO. g:\housing\non-residential affordable housing fee\city council staff report - consultant contract contract based on their experience preparing non-residential fee studies for other cities throughout California; their understanding of the City's development trends and opportunities and their understanding of the project; and the quality of their proposal, as shown in Exhibit A of Attachment 2. One of the key elements of Dublin's Affordable Housing Implementation Plan is the implementation of a non-residential affordable housing fee that the City would collect from non-residential developers. The fee revenue would be used for the retention and creation of affordable housing. The Non-Residential Affordable Housing Fee Study would include an assessment of new non-residential developments and the demand they create for affordable housing. As specified in the Scope of Work of Exhibit A of Attachment 2, the study will include: a legal rationale for imposing a fee; a survey of housing linkage fees; an analysis of job growth projections in Dublin; an analysis of housing demand; an employee survey; a housing market analysis (to demonstrate that there is a reasonable relationship to the demand and cost of providing additional affordable housing); and fee formula. SCOPE OF SERVICES: The Scope of Services in the contract agreement (Exhibit A of Attachment 2) contains the consultant's proposal for the preparation of the Non-Residential Affordable Housing Fee Study. The Scope of Services involves completing the tasks listed above, including preparation of the fee study report and involvement in the public participation process. , As reflected in the Scope of ServiCes for the NoniResidential Affordable Housing Fee Study, the consultant has a good understanding of the project scope and related tasks and has clearly demonstrated the ability to prepare a comprehensive and rational fee study for Dublin in a timely and cost effective manner. Staff recommends CBA because they have extensive experience preparing Similar-type fee studies for other California jurisdictions and they can offer highly qualified and experienced housing planners to work on the project. Staff will be working with the CBA to formulate a housing resource team involving individuals knowledgeable of the business community. The team could consist of two members of the Chamber of Commerce and business community, City staff, knowledgeable developers in the area and representatives from the City Council and Planning Commission° The team will meet twice, once in October and once in December. Public hearings for the project will begin January of next year. Staffproposes to return to City Council at the September 18t~ meeting with a recommended housing resource team list for Council's review and approval. Staff will be sending out a public notice and scheduling a public hearing for the September 4t~ City Council meeting for consideration of a resolution of intent to adopt a non-residential affordable housing fee. The resolution would put developers on notice that the City Council intends to adopt an ordinance imposing a non-residential affordable housing fee. By notifying developers, applications for discretionary approvals submitted after the adoption of this resolution but before adoption of the fee will be subject to the non-residential affordable housing fee. CONCLUSION: Staff recommends that the City Council: 1) adopt the resolUtion selecting the consultant Cotton/Bridges/Associates for preparing the Non-Residential Affordable Housing Fee (Attachment 1); 2) Authorize the City Manager to execute the contract agreement for $25,000 (Attachment 2); and 3) Direct staffto return on September 18, 2001 with a recommended list of participants for the "Housing Resource Team." RESOLUTION NO. - 2001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AWARDING A CONSULTANT CONTRACT TO COTTON/BRIDGES/ASSOCIATES FOR PREPARATION OF A NON-RESIDENTIAL AFFORDABLE HOUSING FEE STUDY WHEREAS, on February 6, 2001, the City Council approved the Affordable Housing Implementation Program (AHIP); and WHEREAS, one of the key elements of the AHIP is the implementation of a non-residential affordable housing fee that the City would collect from non-residential developers; and WHEREAS, the City intends using the revenues collected from the non-residential affordable housing fee for the retention and creation of affordable housing; and WHEREAS, completion of a non-residential affordable housing fee study is necessary for determining the non-residential affordable housing fee amount; and WHEREAS, the study will include the rationale for imposing an impact fee and a calculation of the actual demand for housing based on new jobs growth; and WHEREAS, the consulting firm of Cotton/Bridges/Associates is able to prepare the Non- Residential Affordable Housing Fee Study in a timely and cost effective manner. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby awards the consulting contract to Cotton/Bridges/Associates with costs not to exceed $ 25,000. PASSED, APPROVED AND ADOPTED this 21 st day of August 2001. AYES: NOES: ' ABSENT: ABSTAIN: ATTEST: City Clerk Mayor g: ~housinglnon-residential affordable housingfeelcotton-bridges-associates contract resolution for 8-21-0] cc meeting STANDARD CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT is made at Dublin, California, as of August 21,2001 by and between the CITY OF DUBLIN, a municipal corporation ("CITY"), and COtton/Bridges/Associates, ("CONSULTANT'!), who agree as follows: 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, CONSULTANT shall provide to CITY the services described in Exhibit A. CONSULTANT Shall provide said services at the time, place and in the manner specified in Exhibit A. 2. PAYMENT. CITY shall pay CONSULTANT for services rendered pursuant to this Agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be made to CONSULTANT for services rendered pursuant to this Agreement. CONSULTANT shall submit all billings for said services to CITY in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures and practices which CONSULTANT uses for billing clients similar to CITY. 3. FACILITIES AND EQUIPMENT. Except as set forth in Exhibit C, CONSULTANT shall, at its sole cost and expense, furnish all facilities and equipment which may be required'for furnishing services pursuant to this Agreement. CITY shall furnish to CONSULTANT only the facilities and equipment listed in Exhibit C according to the terms and conditions set forth in Exhibit C. 4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions. herein. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated 6. CONTRACT ADMINISTRATION. This Agreement shall be administered by Richard C. Ambrose · ("ADMINISTRATOR"). All correspondence shall be directed to or through the ADMINISTRATOR or his or her designee. 7. NOTICES. Any written notice to CONSULTANT shall be sent to: Donald A. Cotton, Senior Principal Cotton/Bridges/Associates 747 E. Green Street, Suite #300 Pasadena, CA 91101-2119 Any written notice to CITY shall be sent to: City of Dublin Attn: Richard Ambrose 100 Civic Plaza Dublin, CA 94568. Executed as of the day first above stated: Attest: City Clerk CITY OF DUBLIN a municipal corporation Approved as to form: City Attorney g:khousingknon-residential affordable housing fee\contract with cotton bridges associates By. By "CONSULTAN~" EXHIBIT A SCOPE OF SERVICES Task #1.: Project Scoping Given the detailed scope and process of developing a Non-Residential Affordable Housing Study, it is.important to begin the project with a clear understanding of the goals and objectives of the study. Therefore, the first task of the Non-Residential Affordable Housing Fee Study will involve project scoping. CBA will meet with representatives of the Community Development Department to review and clarify project goals, objectives, and legal requirements. This meeting will provide the foundation, for understanding the community's unique setting, its opportunities and constraints, the .relationship of the proposed study to the City's Affordable Housing Implementation Plan, the City's Regional Housing Needs Determination, and the goals and objectives for developing the fee study. Task #2. Establish Legal Rationale Recent U.S. and California Supreme court decisions provide guidance on the rationale for developing and establishing an affordable housing fee. The acceptable rationale for imposing an affordable housing impact fee on non-residential developments is founded on the concept of "nexus." As generally defined by the courts, the fee must be related to the burden created by the type of development, the fee amount must be reasonably related to the cost of such improvements (in this case affordable housing), and the fee must be related to the impacts of new development. In Dublin's case, the expansion of employment opportunities will bring a new workforce into the City which results in greater demand for housing. This increased local demand for housing will likely place an additional burden on the local housing market, affect the affordability of housing for existing residents, as well as limit the City's ability to provide housing for its future residents. Therefore, the first task will be to clearly establish and clarify the legal rationale and provide the necessary documentation for charging an Affordable Housing Fee on non-residential development. Task #3. Survey of Housing Linkage Fees Having established the legal rationale for the Non-Residential Affordable Housing Fee, CBA will review similar fees in other California jurisdictions and summarize and evaluate the methodologies and formulas used. Methodologies used by similarly sized jurisdictions statewide will provide the basis for understanding the strengths and weaknesses of various approaches 'and will aid in developing a fine-grained approach for Dublin. CBA recently completed a similar survey which will be updated for Dublin. ~- Exhibit A Page 1 of 6 Task #4 Analysis of Job Growth Projections Having clarified the legal rationale for impOsing an affordable fee, the next task will involve an analysis of employment growth projections. Obtaining reliable local and regional employment projections and reconciling any differences is key to determining the correspondent need for affordable housing. In addition to aggregate projections, it is important to understand the mix of occupations and associated income levels of each occupation. To derive aggregate employment projections, CBA will use projections from the Association of Bay Area Gt)vernments, the Employment Development Department, and other government agencies. These forecasts will provide the overall mix of industries and occupations that will migrate into Dublin and the Tri-Valley area over the planning horizon. CBA will then develop a more fine-grained and' locally-derived estimate of current and future employment levels based upon existing and remaining non-residential land. The second step in this task is to disaggregate the employment growth forecast into occupations. The wage level associated with each occupation, by industry and skill level, will also be accounted for. State databases will be consulted to provide the income associated with different occupations and industries. Regional data provides a strong basis for predicting the future mix of occupations and income levels of new businesses in Dublin. Given the mix of income levels, it is possible to derive housing demand. The data sources to be consulted are extensive and will include, but not be limited to, the following: the City's General Plan, metropolitan employment data from: the Employment Development Department, County Business Patterns, 2000 Regional Job'Forecast from the Association of Bay Area Governments, and 1990/2000 Census data to the extent available. Task #5. Analysis of Housing Demand Having determined existing and future employment levels in Dublin and the Tri-Valley area, the next step is to translate this data into housing demand. Housing demand is affected by numerous factors, including but not limited to, household income, household characteristics, and preferences for different types of housing. Therefore, it is important to develop an approach to estimate the type of housing needed based on household characteristics. Housing demand is a function of many factors, in particular income levels household size, and household age. For instance, different types of households need different types and prices of housing and the various factors must be carefully accounted for. Not all jobs will result in a one-to-one demand for new housing. CBA will assess whether household formation ratios based upon income and age characteristics levels materially affect the number of households who will need housing. Second, workers will have different preferences for living in Dublin or other surrounding communities. CBA will analyze commute patterns to determine the likely number of workers to seek housing in Dublin. The employer survey developed in Task #6 will also help assist in identifying the workers who prefer to live in surrounding communities versus Exhibit A Page 2 of 6 those who are seeking to reside within Dublin if suitable housing was available for them. The survey used for this task is more fully described later in this section. Sources consulted for this effort include, but are not limited to, the following data: metropolitan area wage data from the U.S. Department of Labor, 1990 and 2000 Census data of occupations held by residents and household '~ncome, the Occupational Employment Survey, as well as other suitable surveys for the City of Dublin or broader market area. Task #6. Employee Survey An effective way to gather information regarding the housing needs of employees is to conduct a survey of major employers in Dublin. A business survey can also help establish a clear nexus between job growth, housing needs, and those who work in Dublin but prefer to live elsewhere versus those who desire to relocate to the City. The key issue regarding th~s survey is to develop a questionnaire that is simple to use and tl~at can be used for fee calculation purposes. Items to be included are as follows: Proportion of employees who intend to rent or own 'in the City Et Length of period spent looking for housing Proportion of employees prevented from moving into Dublin due to high housing costs or lack of vacancies Household income distribution of those respondents Average wage earners per family Commute. patterns and preference to live in Dublin. CBA will develop the survey instrument based upon past experience with other similar jurisdictions. Our budget assumes the City will maintain responsibility for identifying the businesses to be surveyed, for distribution, and for pre-paid postage return. Based on our experience, the typical response rate received from such a survey averages 20 to 25%. Task #7. Housing Market Analysis The prior tasks established aggregate housing demand based on an analysis of employment projections, household income levels, and preferences for living in Dublin. The next task will be to conduct a housing market analysis as a prerequisite to developing the impact fee. This task is important to ensure that the impact fee developed has a reasonable relationship to the demand and cost of providing additional affordable housi'ng. To that end, CBA will analyze various aspects of Dublin's housing market. CBA will analyze the cost of constructing new single-family and multi-family housing based upon actual projects constructed in recent years. Estimates will be prepared for market rate and subsidized housing that can be afforded by Iow and moderate-income households. CBA will assess the annual household income necessary to afford different types of housing. Comparing the likely income associated with new jobs with housing prices will determine the gap that must be bridged to provide affordable housing. Exhibit A Page 3 of 6 Data sources cOnsulted for this effort include recent building permit applications and valuation data, sales prices of homes from Dataquick or similar industry source, California BIA, vendor surveys with respect to rent levels, and information from the City's 2001 Housing Element. Data on household income levels were derived from the previous tasks. Task #8 Fee For'mula The final step is to develop the impact fee. In doing so, this task will build upon the results and formulae derived from earlier tasks in the work scope. Tasks 4~7 estimated employment growth patterns and projections in Dublin; the income mix of those occupations, corresponding housing demand, and the affordability gap. The final task will be to develop a fee formula. The Affordable Housing Fee can be represented with a simple formula. However, it shOuld be noted that each variable in the model also has numerous underpinning and multi-faceted subcalculations. Therefore, this formula is presented in simplistic fashion for illustrative purposes only. (A)Housing demand --- f(B,C,D,E) (A) = (B) = (C) = (D) __ (E) = "Housing demand for Iow and moderate-income units" is a function of the following variables Project size. This variable calculates the square footage of the business by type - retail, manufacturing, office, etc. Employee density factor. This variable represents the number of employees by different occupations and income levels. Workers per household or unit. This variable takes into account other household characteristics that impact housing need, such as household size, number of workers, etc. Proportion of Iow/mod income households wishing to relocate into Dublin if adequate housing was available. Having assessed the gross demand for new housing, it is important to assess the fee to be charged each new development project. The feels represented with a simple formula, but like the earlier formula, has numerous underpinning and multi-faceted subcalculations. (Z)Housing fee = f(W, X, Y) (Z) = (W) = (X) = (Y) = amount "Housing fee per project" Gro~s Housing Demand. This variable has underlying calculations and is deriVed from the type of development project, number of employees generated, and income level. Affordability Gap. This variable has underlying calculations which determine the gap between different household income levels and the ability to afford suitable housing. Subsidy Level. This variable has underlying calculations which subtract out the of subsidy the City is willing to provide for affordable housing. Exhibit A Page 4 of 6 Task #9 Preparation of Fee Study Report Having thoroughly assessed the rationale for imposing an impact fee and calculating the actual demand for housing based upon new jobs growth, the final task will be to prepare the fee study report. The report will present each of the previous-tasks in a clear and concise format whiCh will be easily understandable and useful for policy purposes. As part of this task;. CBA will confer with the City Attorney for Dublin to ensure that the study and methodology used meets all legal requirements. The fee report will presented in draft and final form to allow for review and comment by City staff, City Attorney, and City Council. Task #10 Public Participation Process Based on our discussions with City staff, we understand that Dublin places a high value on public participation. However, given the highly technical nature of the fee study, CBA proposes the following approach to involving key members of the public in development of .the study. This plan can be refined as appropriate to meet the particular needs of the community in the project scoping phase detailed in Task #1. Housing Resource Team As a means of involving individuals knowledgeable of the business community, we recommend establishing a Housing Resource Team. The Resource Team will meet twice - once early on to help define the study's parameters and later to review the draft study. The Team shall consist of.two members of the Chamber of Commerce and business community, City staff, knowledgeable developers in the area, and representatives from the Planning Commission and City Council. All meetings will be advertised and open to the public. Public Hearings Following preparation of the final Non-Residential Affordable Housing Fee Study, CBA will participate in two public hearings before the City Council. Additional hearings can be negotiated on a cost-reimbursable basis. All comments and changes arising from these meetings will be prepared for incorporation into the final document. Products Draft Non-Residential Affordable Housing Fee Study (5 master copies) Final Non-Residential Affordable Housing Fee Study (5 master copies) Meetings Staff Meetings (2) Resource Team Meetings (2) Public Hearings (2) Exhibit A Page 5 of 6 PROJECT SCHEDULE Contract Initiation/Kick-Off Meeting Review of Similar Fee Studies Analysis of Employment Growth, Housing Demand, and Market Analysis Resource Team Meeting #1 Development of Appropriate Fee Review with city Attorney Submit Draft for Administrative Review Resource Team Meeting #2 Revise Draft Report and Present Findings to City Council Submit to City Council 2nd Draft with City Council Recommendations Complete Final .Report September 2001 September 2001 October 2001 October 2001 November 2001 November 2001 December 2001 December 2001 January 2001 January 2001 February 2001 Exhibit A Page 6 of 6 EXHIBIT B PAYMENT SCHEDULE CITY shall pay CONSULTANT an amount not to exceed the total sum of Twenty Five Thousand Dollars ($25,000) for services to be performed pursuant to this Agreement. CONSULTANT shall submit invoices on a MONTHLY basis during the term of this Agreement based on the cost for services performed and completed for each task outlined in Exhibit A, Scope of Services and according to the attached schedule of professional rates (p. 2 of Exhibit B). The CONSULTANT shall not submit an invoice more often than once a month; and provided further, in no event shall the CITY pay the CONSULTANT a sum exceeding 20% of the total sum due for services pursuant to this Agreement in any one month; and provided further, the CITY shall pay the last 10% of the total sum due pursuant to this Agreement within forty-five (45) days after completion of the services and submittal to CITY, if all services due pursuant to this Agreement have been satisfactorily performed. The total sum stated above shall be the total which CITY shall pay for the services to be rendered by CONSULTANT pursuant to this Agreement. CITY shall not pay any additional sum for any expense or cost whatsoever incurred by CONSULTANT in rendering services pursuant to this Agreement. CITY shall make no payment for any extra, fu~er or additional service pursuant to this Agreement unless such extra service and the price therefore is agreed to in writing executed by the City Manager or other designated .official of CITY authorized to obligate CITY thereto prior to the time such extra service is rendered and in no event shall such change order exceed tWenty-five (25%) of the initial contract price. The services to be provided under this Agreement may be terminated without cause at any point in time in the sole and exclusive discretion of CITY. In this event, CITY shall compensate the CONSULTANT for all outstanding costs incurred as of the date of written notice thereof and shall terminate this Agreement. CONSULTANT shall maintain adequate logs and timesheets in order to verifY costs incurred to date. The CONSULTANT is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a fully executed Purchase Order from the Finance Department of the City of Dublin. Exhibit B Page 1 of 2 g:\housing\non-residential affordable housing fecXcontract with cotton bridges associates EXHIBIT B Proposed Budget for Study Staff Person: Cotton Warner Hoffman Lau Hourly Rate: $120 $115 $100 $65 Total 1. Project Scoping 4 4 $860 2. Establish Legal Rationale 1 2 6 8 $1,470. 3. Survey of Fees ~. 4 15 $1,375 4. Job/Housing Demand 2 1 6 1 6 $'2,870 5. Employee Survey 2 6 16 $1,870 6. Housing Market Survey 2 6 1 6 $1,870 7. Fee Formula 2 8 20 8 $3,680 8. Draft Report 2 4 16 20 $3,600 9. Resource Team Mtgs (2) 4 8 8 $1,780 10. Public Hearings (2) 4 8 8 $1,780 11. Final Report 2 4 20 16 $3,740 Total Project Cost 7 36 114 1 31 $24,895 Exhibit B Page 2 of 2 EXHIBIT C - City Facilities CITY shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for CONSULTANT'S use while consulting with CITY employees and reviewing records and the information in possession of CITY. The location, quantity, and time of furnishing said physical facilities shall be in the sole discretion of CITY. In no event shall CITY be obligated tO furnish any facility which may involve incurring any direct expense, including, but not limiting the generality of this exclusion, long,distance telephone or other communication charges, vehicles, and reproduction facilities. EXHIBIT D GENERAL PROVISIONS 1. INDEPENDENT CONSULTANT. At all times during the term of tiffs Agreement, CONSULTANT shall be an independent CONSULTANT and shall not be an employee of CITY. CITY shall have the right to control CONSULTANT only insofar as the results of CONSULTANT'S services rendered pursuant to this Agreement; however, CITY shall not have the right to control the means by which CONSULTANT accomplishes services rendered pursuant to this Agreement. 2. LICENSES; PERMITS; ETC. CONSULTANT represents and warrants to CITY that he has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for CONSULTANT to practice his profession. CONSULTANT represents and warrants to CITY that CONSULTANT shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for CONSULTANT to practice his profession. 3. TIME. CONSULTANT shall devote such time tothe performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of CONSULTANT'S obligations pursuant to this Agreement. 4. INSURANCE REQUIREMENTS. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, his agents, representatives, employees or subCONSULTANTs. The cost of such insurance shall be included in the CONSULTANT'S bid. (a) Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office form number GL 0002 (Ed.1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 000 I.) 2. Insurance Services Office form number CA 0001 (Ed. 1/78) covering Auiomobile Liability, code 1 "any auto" and endorsement CA 0025. 3. Workers' Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. (b) Minimum Limits of Insurance. CONSULTANT shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal' injury and property damage. If commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. EXHIBIT D (p. 1 of 4) g:\housing\non-residential affordable housing fee\contract with cotton bridges associates 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and Property damage. 3. 'Workers' Compensation and Employers Liability: Workers' CompenSation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials and employees; or the CONSULTANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. (d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. a. The CITY', its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the CONSULTANT; products and completed operations of the CONSULTANT, premises owned, occupied or used by the CONSULTANT, or automobiles owned, leased, hired or borrowed by the CONSULTANT. The coverage shall contain no special limitations on the scope of the protection afforded to the CITY, its officers, officials, employees or volunteers. b. The CONSULTANT'S insurance coverage Shall be primary insurance as respects the CITY, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees or volunteers shall be excess of the CONSULTANT'S insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CITY, its officers, officials, emploYees or volunteers. d. The CONSULTANT'S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, officials, employees and volunteers for losses arising from work performed by the CONSULTANT for the CITY. 3. Professional'Liability. CONSULTANT shall carry professional liability insurance .in an amount deemed by the CITY to adequately protect the CONSULTANT against liability caused by negligent acts, errors or omissions on the part of the CONSULTANT in the course of performance of the services specified in this Agreement. 4. All Coverages. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended', voided, canceled by either party, reduced in coverage or in limits except ailer thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the CITY. EXHIBIT D (p. 2 of 4) ob//-5 (e) Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A:VII. (f) Verification of Coverage. CONSULTANT shall furnish CITY with certificates of insUrance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insUrance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the CITY before work commences. The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. (g) subcONSULTANTs. CONSULTANT shall include all subCONSULTANTs as insureds under its policies or shall furnish separate, certificates and endorsements for each subCONSULTANT. All coverages for subCONSULTANTs shall be subject to all of the requirements stated herein. (h) The Risk Manager of CITY may approve a variation in those insurance requirements upon a determination that the coverages, scope, limits and forms of such insurance are either not commercially available or that the CITY's interests are otherwise fully protected.' 5. CONSULTANT NO AGENT. Except as CITY may specify in writing, CONSULTANT shall have no authority, express or implied, to act on behalfof CITY in any capacity whatsoever aS an agent. CONSULTANT shall have no authority, express or implied, pursuant to this Agreement to bind CITY to any obligation whatsoever.' 6. ASSIGNMENT PROHIBITED. No party to this Agreement may assign any right or obligation pUrsuant to 'this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. 7. PERSONNEL.' CONSULTANT Shall assign only competent personnel to perform services pursuant to this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, CONSULTANT shall, immediately upon receiving notice from CITY of such desire of CITY, cause the removal of such person or persons. 8. STANDARD OF PERFORMANCE. CONSULTANT shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which CONSULTANT is engaged in the geographical area in which CONSULTANT practices his profession. All instruments of service of whatsoever nature which CONSULTANT delivers to CITY pursuant to this Agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in CONSULTANT's profession. 9. HOLD HARMLESS AND RESPONSIBILITY OF CONSULTANTS. CONSULTANT shall indemnify, hold harmless, and defend CITY, its Council, officers, agents and employees from and against any and alt claims and losses, costs or' eXPenses for any damage resulting in death or injury to any person and/or injury or damage to any property resulting from any act or omission of CONSULTANT or any of its officers, employees, servants, agents, or subcontractors in the performance of this Agreement. Such cost and expense shall include reasonable attorney fees. EXHIBIT D (p. 3 of 4) g:hhousing\non-residential affordable housing fee\contract with cotton bridges associates Notwithstanding the above paragraph, and as a separate and independent covenant:and obligation, CONSULTANT shall indemnify and hold harmless, but not defend CITY, its Council, officers, agents and employees from and against any damage, liability, loss, cost or expense, (excluding personal injury or property damage which is included in the above paragraph which arise out of CONSULTANT'S negligent performance of services under this Agreement provided that such liability, loss, cost or expense is caused by the negligent act or omission of CONSULTANT, or any 'of its officers, employees, servants, agents or subcontractors in performance' of this Agreement. CONSULTANT'S obligation for such indemnity and hold harmless under this paragraph shall not include any obligation to defend CITY, its council, officers, agents or employees against any action or claim brought by any person. CONSULTANT' S obligation to indemnify CITY shall include reasonable attorney fees if CONSULTANT is found to have been negligent in performance of services under this Agreement.~ 10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, CONSULTANT shall comply with all applicable rules and regulations to which CITY is bound by the terms of such fiscal assistance program. 11. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by CONSULTANT pursuant to this Agreement shall become the property of CITY upon completion of the work to be performed hereunder or upon termination of the Agreement. EXHIBIT D (p. 4 of 4)