CITY COUNCIL REGULAR MEETING AGENDA PACKET 4-21-26

Energy Services Agreement 6 04/21/2026 arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to require that the parties hereto shall proceed to resolve any disputes in accordance with the procedures set forth in Sections 9204 and 20104. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, ESCO must comply with the claim procedures set forth in Government Code section 900, et seq., prior to filing any lawsuit against the Purchaser 19. CHANGE ORDER (Mid-Performance Amendments). ESCO and the City recognize that: 1. City may desire a mid-job change in the specifications or scope that would add time and cost to the specified work or inconvenience ESCO. 2. Other provisions of the Agreement may be difficult to carry out because of unforeseen events, such as material shortage or labor strikes. If these or other events beyond the control of the parties reasonably require adjustments to this Agreement, the parties shall make a good faith attempt to agree on all necessary particulars. Such agreements shall be put in writing, signed by the parties, and added to this Agreement. Failure to reach agreement shall be deemed a dispute to be resolved as agreed in section 20 of this Agreement. 20. PAYMENT & PERFORMANCE BONDS: ESCO shall not commence Work until it has provided to City, in the form provided by the City, a Payment (Labor and Material) Bond and a Performance Bond, each in an amount equivalent to 100% of the Contract Price issued by an admitted surety as defined in Code of Civil Procedure § 995.120. 21. OCCUPANCY: City may occupy buildings before Contract completion and occupancy shall not constitute acceptance of any Work, nor shall occupancy extend the Contract completion date. 22. INSURANCE REQUIREMENTS. a. ESCO shall procure and maintain, at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by ESCO, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following: (1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if ESCO has no owned autos, hired (Code 8) and non-owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by CITY and approved in writing by CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker’s Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (4) Professional Liability (Errors and Omissions). Professional Liability (Errors and Page 248 of 846