HomeMy WebLinkAbout- CC-8 - Attachment 1 - 7/15/2014REQUEST FOR PROPOSAL
FOR
TRANSIENT OCCUPANCY TAX AUDIT SERVICES
RFP No. 1168
Costa Mesa
Finance Department
CITY OF COSTA MESA
Released on April 4, 2014
TRANSIENT OCCUPANCY TAX AUDIT SERVICES
REQUEST FOR PROPOSAL (RFP)
Dear Proposers:
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The City of Costa Mesa (hereinafter referred to as the "City") is requesting proposals from a
qualified firm, to conduct an audit of the books of thirty motels and hotels over the course of
three years in the City of Costa Mesa to ensure proper reporting of revenues to the City. The
term is expected to be for three (3) years with one-year options to renew.
The audit shall be made in accordance with the City's Transient Occupancy Tax Title 16 —
Taxation, Chapter IV of Costa Mesa Municipal Code. To provide a final report of the audit
results within 60 days of completion of fieldwork including for each property a recommendation
regarding the need for prior year audits. Prior years audit will be done on an as needed basis at
the request of the City.
Transient Occupancy Tax (TOT) represents the City's fourth largest source of revenue. The FY
13-14 estimated TOT revenue is $7.2 million, which represents 6.97% of the total General Fund
revenues. This amount reflects an increase of $500,000 or 7.46% compared to the estimate in FY
12-13 due to increased activity over the past few quarters. Since the 2010, the City has seen a
continued increase in TOT revenue when compared to the prior year.
1. BACKGROUND
The City of Costa Mesa is a general law city, which operates under the council/manager form of
government with a General Fund budget of over $103 million and a total of over $132 million of
fiscal year 2013-2014.
The City of Costa Mesa, incorporated in 1953, has an estimated population of 110,757 and has a
land area of 16.8 square miles. It is located in the southern coastal area of Orange County,
California, and is bordered by the cities of Santa Ana, Newport Beach, Huntington Beach,
Fountain Valley, and Irvine.
The City is a "full service city" and provides a wide range of services. These services include:
police and fire protection; animal control; emergency medical aid; building safety regulation and
inspection; street lighting; land use planning and zoning; housing and community development;
maintenance and improvement of streets and related structures; traffic safety maintenance and
improvement; and full range of recreational and cultural programs.
The City of Costa Mesa is home of the Segerstrom Center for the Arts, Orange County
Fairgrounds, South Coast Repertory Theater and the South Coast Plaza Shopping Center, which
is the single largest commercial activity center in the City. The volume of sales generated by
South Coast Plaza, secures its place as the highest volume regional shopping center in the nation.
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2. SCHEDULE OF EVENTS
This request for proposal will be governed by the following schedule:
Release of RFP April 4, 2014
Deadline for Written Questions April 18, 2014
Responses to Questions Posted on Web April 25, 2014
Proposals are Due May 9, 2014
Interview (if held) May 21, 2014
Approval of Contract June 3, 2014
All dates are subject to change at the discretion of the City.
3. SCOPE OF WORK
The City currently has 30 hotels and transient occupancy taxes ("TOT") totaled $7.2 million in
fiscal year 2012-2013. In previous years, TOT audits were performed by an internal staff
member. The City wishes to engage external auditors to audit 6 to 11 hotels per year on a
rotating basis.
Required services:
The following is a summary of the TOT scope of audit for the years ended June 30, 2014, 2015,
and 2016.
The City will coordinate with the auditor for finalizing the attached Appendix I scheduling of
said audits. Selection of the specific entities to be audited each project will be the responsibility
of the City.
In the event that extraordinary circumstances warrant more intensive and detailed services
beyond those in the contractual agreement the firm shall provide in writing and in advance the
reasons for the additional services together with the firm's estimation of cost.
Our procedures for each hotel as agreed upon by the management of the City of Costa Mesa will
be as follows;
1. Review the City Municipal Code Title 16 Taxation Chapter IV. Transient Occupancy
Tax and resolutions related to the transient occupancy tax.
2. Verify the mathematical accuracy and timeliness of transient occupancy reports filed
with the City for the calendar years 2014 and 2015 as detailed in Appendix D.
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3. Trace the gross revenues reported on the transient occupancy tax returns prepared by the
Hotel to gross revenue recorded in the Hotel's accounting records and verify that these
were in accordance with the City's ordinance.
4. Select a sample of rental transactions during the review period and for each transaction
selected, we will verify tax computations and trace the amounts of rental revenues and
transient occupancy tax collected to the books and records of the hotel.
5. Review the internal control procedures of the Hotel to determine the following
a. How "gross rents" and "uncollected rents" were accounted for and reported to the
City.
b. What procedures were in place to identify transient and non -transient guest.
c. How exemptions, including complimentary rooms, were documented and
reported to the City.
6. Review the supporting documentation, on a sample basis, for exemptions claimed on the
transient occupancy tax returns.
7. Perform additional procedures that the City consider necessary to verify the
reasonableness of reported revenues of the Hotel operator.
Report Deliverables
1. Contractor shall submit a draft audit report at after each project. Reports are to be
submitted to the Assistant Finance Director 40 days after the completion of fieldwork.
The selected consultant shall finalize interim reports as directed by the Assistant Finance
Director or the Director of Finance.
2. Two -side copies of the draft final report shall be submitted to the Assistant of Finance
Director or Director of Finance within 20 days after their review of the draft report(s).
The City reserves the right to choose or approve which hotels and schedule to be audited each
year. A sample schedule is attached in Appendix H for bidding purpose only. Finance staff will
provide adequate cooperation and assistance during the audits, including pulling and refiling of
TOT related supporting documents. All working papers and reports are to be retained at the
auditors' expense for a minimum of five years. The selected audit firm will be responsible for
making working papers available to the City upon request
4. PROPOSAL FORMAT GUIDELINES
Interested entities or contractors are to provide the City of Costa Mesa with a thorough proposal
using the following guidelines:
Proposal should be typed and should contain no more than 20 typed pages using a 12 -point font
size, including transmittal letter and resumes of key people, but excluding Index/Table of
Contents, tables, charts, and graphic exhibits. Each proposal will adhere to the following order
and content of sections. Proposal should be straightforward, concise and provide "layman"
explanations of technical terms that are used. Emphasis should be concentrated on conforming
to the RFP instructions, responding to the RFP requirements, and on providing a complete and
clear description of the offer. Proposals which appear unrealistic in terms of technical
commitments, lack of technical competence or are indicative of failure to comprehend the
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complexity and risk of this contract may be rejected. The following proposal sections are to be
included in the Proposer's response:
• Vendor Application Form and Cover Letter
Complete Appendix A, "Request for Proposal -Vendor Application Form" and attach this
form to the cover letter. A cover letter, not to exceed three pages in length, should
summarize key elements of the proposal. An individual authorized to bind the consultant
must sign the letter. The letter must stipulate that the proposal price will be valid for a period
of at least 180 days. Indicate the address and telephone number of the contractor's office
located nearest to Costa Mesa, California and the office from which the project will be
managed.
• Background and Proiect Summary Section
The Background and Project Summary Section should describe your understanding of the
City, the work to be done, and the objectives to be accomplished. Refer to Scope of Work of
this RFP.
• Methodology Section
Provide a detailed description of the approach and methodology to be used to accomplish the
Scope of Work of this RFP. The Methodology Section should include:
1. An implementation plan that describes in detail (i) the methods, including controls
by which your firm or entity manages projects of the type sought by this RFP; (ii)
methodology for soliciting and documenting views of internal and external
stakeholders; (iii) and any other project management or implementation strategies
or techniques that the respondent intends to employ in carrying out the work.
2. Detailed description of efforts your firm or entity will undertake to achieve client
satisfaction and to satisfy the requirements of the "Scope of Work" section.
3. Detailed project schedule, identifying all tasks and deliverables to be performed,
durations for each task, and overall time of completion, including a complete
transition plan. Include your plan to deal with fluctuation in service needs and
any associated price adjustments.
4. Detailed description of specific tasks you will require from City staff. Explain
what the respective roles of City staff and your staff would be to complete the
tasks specified in the Scope of Work.
• Staffing
Z
Provide a list of individual(s) who will be working on this project and indicate the functions
that each will perform and anticipated hours of service of each individual.' Include a resume
for each designated individual.
Upon award and during the contract period, if the contractor chooses to assign different
personnel to the project, the Contractor must submit their names and qualifications including
information listed above to the City for approval before they begin work.
• Qualifications
The information requested in this section should describe the qualifications of the firm or
entity, key staff and sub -contractors performing projects within the past five years that are
similar in size and scope to demonstrate competence to perform these services. Information
shall include:
Names of key staff that participated on named projects and their specific responsibilities with
respect to this scope of work.
A summary of your firm's demonstrated capability, including length of time that your firm
has provided the services being requested in this Request for Proposal.
For private Proposers, provide at least three references that received similar services from
your firm. The City of Costa Mesa reserves the right to contact any of the organizations or
individuals listed. Information provided shall include:
o Client Name
o Project Description
o Project start and end dates
o Client project manager name, telephone number, and e-mail address.
Any public entity which submits a proposal should describe in detail how it currently
performs services like those identified in the scope of work within its or other jurisdictions,
including photographs, written policies and/or video of services provided. If you have
performed these services under contract for another public entity, please provide references
for those entities as set forth above for private Proposers.
• Financial Capacity
You may be asked to provide the Proposer's latest audited financial statement or other
pertinent information such as internal unaudited financial statements and financial references
to allow the City to reasonably formulate a determination about the financial capacity of the
Proposer. Describe any administrative proceedings, claims, lawsuits, or other exposures
pending against the Proposer.
1 Hourly rates for the proposed personnel shall be set forth on Appendix D.
• Fee Proposal
All Proposers are required to use the form in Appendix D to be submitted with their proposal.
Pricing instructions should be clearly defined to ensure fees proposed can be compared and
evaluated. Proposals shall be valid for a minimum of 90 days following submission.
• Disclosure
Please disclose any and all past or current business and personal relationships with any
current Costa Mesa elected official, appointed official, City employee, or family member of
any current Costa Mesa elected official, appointed official, or City employee. Any past or
current business relationship may not disqualify the firm from consideration.
• Sample Agreement
The firm selected by the City will be required to execute an Agreement for Services
(Agreement) with the City. The form of the Agreement is enclosed as Appendix B, but may
be modified to suit the specific services and needs of the City. If a Proposer has any
exceptions or conditions to the Agreement, these must be submitted for consideration
with the proposal. Otherwise, the Proposer will be deemed to have accepted the form of
Agreement. See Section 13, below.
• Checklist of Forms to Accompany Proposal
As a convenience to Proposers, following is a list of the forms, included as appendices to this
RFP, which should be included with proposals
(Appendix A) W-9 Form
(Appendix C) Ex Parte Communications Certificate
(Appendix D) Price Proposal Form
(Appendix E) Disqualifications Questionnaire
5. PROCESS FOR SUBMITTING PROPOSALS
• Content of Proposal
The proposal must be submitted using the format as indicated in the proposal format
guidelines.
• Preparation of Proposal
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Each proposal shall be prepared simply and economically, avoiding the use of elaborate
promotional material beyond those sufficient to provide a complete, accurate and reliable
presentation.
• Number of Proposals
Submit one original, Five (5) hard copies plus one disk copy of your proposal in
sufficient detail to allow for thorough evaluation and comparative analysis. In the event
of a conflict between the original and any hard copy or disk copy, the original shall
control.
• Submission of Proposals
Complete written proposals must be submitted in sealed envelopes marked and received
no later than 4:00 p.m. (P.S.T) on May 9, 2014 to the address below. Proposals will not
be accepted after this deadline. Faxed or e-mailed proposals will not be accepted.
City of Costa Mesa
City Hall
Office of the City Clerk
77 Fair Drive
Costa Mesa, CA 92628-1200
RE: Transient Occupancy Tax Audit Services
• Inquiries
Questions about this RFP must be directed in writing, via e-mail to:
Rick Amadril, Interim Buyer
richard. amadrilkcostamesaca. gov
The City reserves the right to amend or supplement this RFP prior to the proposal due
date. All amendments, responses to questions received, and additional information will
be posted to the Costa Mesa Procurement Registry, Costa Mesa - Official City Web Site -
Business - Bids & RFP's; Proposers should check this web page daily for new
information. The City will endeavor to answer all written questions timely received no
later than April 18, 2014. The City reserves the right not to answer all questions.
From the date that this RFP is issued until a firm or entity is selected and the selection is
announced, firms or public entities are not allowed to communicate outside the process
set forth in this RFP with any City employee other than the contracting officer listed
above regarding this RFP. The City reserves the right to reject any proposal for violation
of this provision. No questions other than written will be accepted, and no response other
than written will be binding upon the City.
• Conditions for Proposal Acceptance
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This RFP does not commit the City to award a contract or to pay any costs incurred for any
services. The City, at its sole discretion, reserves the right to accept or reject any or all
proposals received as a result of this RFP, to negotiate with any qualified source(s), or to
cancel this RFP in part or in its entirety. The City may waive any irregularity in any
proposal. All proposals will become the property of the City of Costa Mesa, USA. If any
proprietary information is contained in the proposal, it should be clearly identified.
6. EVALUATION CRITERIA
The City's evaluation and selection process will be conducted in accordance with Chapter V,
Article 2 of the City's Municipal Code (Code). In accordance with the Code, the lowest
responsible bidder will be determined based on evaluation of qualitative factors in addition to
price. At all times during the evaluation process, the following criteria will be used. Sub -criteria
are not necessarily listed in order of importance. Additional sub criteria that logically fit within a
particular evaluation criteria may also be considered even if not specified below.
1. Qualifications of Entity and Key Personnel -------35%
Includes ability to provide the requested scope of services, the Proposer's financial
capacity, recent experience conducting work of similar scope, complexity, and magnitude
for other public agencies of similar size, references.
2. Approach to Providing the Requested Scope of Services -------30%
Includes an understanding of the RFP and of the project's scope of services, knowledge of
applicable laws and regulations related to the scope of services.
3. Price Proposal -----25%
Price Proposals will be evaluated on the basis of the Total Estimated Annual Price
submitted in Appendix D.
4. Results of reference checks — 10%
Reference checks will be conducted for a short list of firms or the top rated firms.
7. EVALUATION OF PROPOSALS AND SELECTION PROCESS
In accordance with its Municipal Code, the City will adhere to the following procedures in
evaluating proposals. An Evaluation/Selection Committee (Committee), which may include
members of the City's staff and possibly one or more outside experts, will screen and review all
proposals according to the weighted criteria set forth above. While price is one basic factor for
award, it is not the sole consideration.
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A. Responsiveness Screening
Proposals will first be screened to ensure responsiveness to the RFP. The City may reject
as non-responsive any proposal that does not include the documents required to be
submitted by this RFP. At any time during the evaluation process, the City reserves the
right to request clarifications or additional information from any or all Proposers
regarding their proposals.
B. Initial Proposal Review
The Committee will initially review and score all responsive written proposals based
upon the Evaluation Criteria set forth above. The Committee may also contact Proposer's
references. Proposals that receive the highest evaluation scores may be invited to the
next stage of the evaluation process. The City may reject any proposal in which a
Proposer's approach, qualifications, or price is not considered acceptable by the City. An
unacceptable proposal is one that would have to be substantially rewritten to make it
acceptable. The City may conclude the evaluation process at this point and recommend
award to the lowest responsible bidder. Alternatively, the City may elect to negotiate
directly with one or more Proposers to obtain the best result for the City prior to making a
recommendation or selection.
C. Interviews, Reference Checks, Revised Proposals, Discussions
Following the initial screening and review of proposals, the Proposers included in this
stage of the evaluation process may be invited to participate in an oral interview.
Interviews, if held, are tentatively scheduled for May 21, 2014 and will be conducted at
City of Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, CA 92628. This date is subject
to change. The individual(s) from Proposer's firm or entity that will be directly
responsible for carrying out the contract, if awarded, should be present at the oral
interview. The oral interview may, but is not required to, use a written question/answer
format for the purpose of clarifying the intent of any portions of the proposal.
In addition to conducting an oral interview, the City may during this stage of the
evaluation process also contact and evaluate the Proposer's references, contact any
Proposer to clarify any response or request revised or additional information, contact any
current users of a Proposer's services, solicit information from any available source
concerning any aspect of a proposal, and seek and review any other information deemed
pertinent to the evaluation process.
Following conclusion of this stage of the evaluation process, the Committee will again
rank all Proposers according to the evaluation criteria set forth above. The Committee
may conclude the evaluation process at this point, and make a recommendation for
award, or it may request Best and Final Offers from Proposers. The City may accept the
proposal or negotiate the terms and conditions of the agreement with the highest ranked
firm, which shall be determined to be the lowest responsible bidder. The City may
recommend award without Best and Final Offers, so Proposers should include their best
proposal with their initial submission.
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Recommendation for award is contingent upon the successful negotiation of final
contract terms. Negotiations shall be confidential and not subject to disclosure to
competing Proposers unless an agreement is reached. If contract negotiations cannot be
concluded successfully within a time period determined by the City, the City may
terminate negotiations and commence negotiations with the next highest scoring Proposer
or withdraw the RFP.
8. PROTEST PROCEDURES
Failure to comply with the rules set forth herein may result in rejection of the protest. Protests
based upon restrictive specifications or alleged improprieties in the proposal procedure which are
apparent or reasonably should have been discovered prior to receipt of proposals shall be filed in
writing with the RFP Facilitator at least 10 calendar days prior to the deadline for receipt of
proposals. The protest must clearly specify in writing the grounds and evidence on which the
protest is based.
Protests based upon alleged improprieties that are not apparent or which could not reasonably
have been discovered prior to submission date of the proposals, such as disputes over the staff
recommendation for contract award, shall be submitted in writing to the RFP Facilitator, within
forty-eight hours from receipt of the notice from the City advising of staff's recommendation for
award of contract. The protest must clearly specify in writing the grounds and evidence on which
the protest is based. The RFP Facilitator will respond to the protest in writing at least three days
prior to the meeting at which staff's recommendation to the City Council will be considered.
Should Proposer decide to appeal the response of the RFP Facilitator, and pursue its protest at
the Council meeting, it will notify the RFP Facilitator of its intention at least two days prior to
the scheduled meeting.
9. CONFIDENTIALITY
The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates public
access to government records. Therefore, unless information is exempt from disclosure by law,
the content of any request for explanation, exception, or substitution, response to this RFP,
protest, or any other written communication between the City and Proposer, shall be available to
the public. The City intends to release all public portions of the proposals following the
evaluation process at such time as a recommendation is made to the City Council.
If Proposer believes any communication contains trade secrets or other proprietary information
that the Proposer believes would cause substantial injury to the Proposer's competitive position
if disclosed, the Proposer shall request that the City withhold from disclosure the proprietary
information by marking each page containing such proprietary information as confidential.
Proposer may not designate its entire proposal as confidential nor designate its Price Proposal as
confidential.
Submission of a proposal shall indicate that, if Proposer requests that the City withhold from
disclosure information identified as confidential, and the City complies with the Proposer's
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request, Proposer shall assume all responsibility for any challenges resulting from the non-
disclosure, indemnify and hold harmless the City from and against all damages (including but
not limited to attorney's fees that may be awarded to the party requesting the Proposer
information), and pay any and all costs and expenses related to the withholding of Proposer
information. Proposer shall not make a claim, sue, or maintain any legal action against the City
or its directors, officers, employees, or agents concerning the disclosure, or withholding from
disclosure, of any Proposer information. If Proposer does not request that the City withhold from
disclosure information identified as confidential, the City shall have no obligation to withhold
the information from disclosure and may release the information sought without any liability to
the City.
10. EX PARTE COMMUNICATIONS
Proposers and Proposers' representatives should not communicate with the City Council
members about this RFP. In addition, Proposers and Proposers' representatives should not
communicate outside the procedures set forth in this RFP with an officer, employee or agent of
the City, including any member of the evaluation panel, with the exception of the RFP
Facilitator, regarding this RFP until after Contract Award. Proposers and their representatives
are not prohibited, however, from making oral statements or presentations in public to one or
more representatives of the City during a public meeting.
A "Proposer" or "Proposer's representative" includes all of the Proposer's employees, officers,
directors, consultants and agents, any subcontractors or suppliers listed in the Proposer's
proposal, and any individual or entity who has been requested by the Proposer to contact the City
on the Proposer's behalf. Proposers shall include the Ex Parte Communications form (Appendix
C) with their proposals certifying that they have not had or directed prohibited communications
as described in this section.
11. CONFLICT OF INTEREST
The Proposer warrants and represents that it presently has no interest and agrees that it will not
acquire any interest which would present a conflict of interest under California Government
Code sections 1090 et seq., or sections 87100 et seq., during the performance of services under
any Agreement awarded. The Proposer further covenants that it will not knowingly employ any
person having such an interest in the performance of any Agreement awarded. Violation of this
provision may result in any Agreement awarded being deemed void and unenforceable.
13 CONDITIONS TO AGREEMENT, IF ANY.
The selected Proposer will execute an Agreement for Services with the City describing the Scope
of Services to be performed, the schedule for completion of the services, compensation, and
other pertinent provisions. The contract shall follow the sample form of Agreement provided as
Appendix B to this RFP, which may be modified by City. All Proposers are directed to
particularly review the indemnification and insurance requirements set forth in the sample
Agreement.
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The terms of the agreement, including insurance requirements have been mandated by the
City and can be modified only if extraordinary circumstances exist. Submittal of a proposal
shall be deemed acceptance of all the terms set forth in this RFP and the sample Agreement for
Services unless the Proposer includes with its proposal, in writing, any conditions or exceptions
requested by the Proposer to the proposed Agreement. In accordance with the Municipal Code,
the City may consider the scope and number of conditions in evaluation proposals and
determining the lowest responsible bidder.
14. DISQUALIFICATION QUESTIONNAIRE
Proposers shall complete and submit, under penalty of perjury, a standard form of questionnaire
inquiring whether a Proposer, any officer of a proposer, or any employee of a Proposer who has
a proprietary interest in the Proposer, has ever been disqualified, removed, or otherwise
prevented from proposing on, or completing a federal, state, or local government project because
of a violation of law or safety regulation and if so, to explain the circumstances. A proposal may
be rejected on the basis of a Proposer, any officer or employee of such Proposer, having been
disqualified, removed, or otherwise prevented from proposing on, or completing a federal, state,
or local project because of a violation of law or a safety regulation. See Appendix E.
15. STANDARD TERMS AND CONDITIONS
Amendments
The City reserves the right to amend or supplement this RFP prior to the proposal due date. All
amendments and additional information will be posted to the Costa Mesa Procurement Registry,
Costa Mesa - Official City Web Site - Business - Bids & RFP's; Proposers should check this web
page daily for new information.
Cost for Preparing Proposal
The cost for developing the proposal is the sole responsibility of the Proposer. All proposals
submitted become the property of the City.
Insurance Requirements
City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not
a declaration or policy) or proof of legal self-insurance on file with the City for the issuance of a
permit or contract. Within ten (10) consecutive calendar days of award of contract, successful
Proposer must furnish the City with the Certificates of Insurance proving coverage as specified
within Appendix B.
Attachments
Appendix A Vendor Application Form
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Appendix B Sample City Contract
Appendix C Ex -Parte Communications Certification
Appendix D Pricing Proposal Form
Appendix E Disqualification Questionnaire
Appendix F Costa Mesa Municipal Code Title 16 Taxation Chapter IV Transient
Occupancy Tax
Appendix G Costa Mesa Insurance Requirements
Appendix H Information on Motel and Hotel properties in Costa Mesa & Tentative
Audit Schedule
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TYPE OF APPLICANT
REQUEST FOR PROPOSAL
Transient Occupancy Tax Audit Services
VENDOR APPLICATION FORM
❑ NEW ❑ CURRENT VENDOR
Legal Contractual Name of Corporation:
Contact Person for Agreement:
Corporate Mailing Address:
City, State and Zip Code:
E -Mail Address:
Phone:
Contact Person for Proposals:
Title:
Business Telephone:
Is your business: (check one)
❑ NON PROFIT CORPORATION
Is your business: (check one)
❑ CORPORATION
❑ INDIVIDUAL
❑ PARTNERSHIP
Fax:
E -Mail Address:
Business Fax:
❑ FOR PROFIT CORPORATION
❑ LIMITED LIABILITY PARTNERSHIP
❑ SOLE PROPRIETORSHIP
❑ UNINCORPORATED ASSOCIATION
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Names & Titles of Corporate Board Members
(Also list Names & Titles of persons with written authorization/resolution to sign contracts)
Names
Federal Tax Identification Number:
City of Costa Mesa Business License Number:
Title Phone
(If none, you must obtain a Costa Mesa Business License upon award of contract.)
City of Costa Mesa Business License Expiration Date:
m
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CITY OF COSTA MESA
PROFESSIONAL SERVICES AGREEMENT
WITH
THIS AGREEMENT is made and entered into this day of , 20 ("Effective
Date"), by and between the CITY OF COSTA MESA, a municipal corporation ("City"), and
, a [state] [type of corporation] ("Consultant")
WITNESSETH:
A. WHEREAS, City proposes to utilize the services of Consultant as an independent
contractor to , as more fully described herein; and
B. WHEREAS, Consultant represents that it has that degree of specialized expertise
contemplated within California Government Code Section 37103, and holds all necessary
licenses to practice and perform the services herein contemplated; and
C. WHEREAS, City and Consultant desire to contract for the specific services
described in Exhibit "A" (the "Project") and desire to set forth their rights, duties and liabilities
in connection with the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the
provisions of Sections 1090-1092 of the California Government Code, in the subject matter of
this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
1.1. Scope of Services. Consultant shall provide the professional services described in
the City's Request for Proposal ("RFP"), attached hereto as Exhibit "A," and Consultant's
Response to City's RFP (the "Response") attached hereto as Exhibit `B," both incorporated
herein by this reference.
1.2. Professional Practices. All professional services to be provided by Consultant
pursuant to this Agreement shall be provided by personnel experienced in their respective fields
and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by
professional consultants in similar fields and circumstances in accordance with sound
professional practices. Consultant also warrants that it is familiar with all laws that may affect
its performance of this Agreement and shall advise City of any changes in any laws that may
affect Consultant's performance of this Agreement.
1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to
the complete satisfaction of the City and within the hereinafter specified. Evaluations of the
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work will be done by the City Manager or his or her designee. If the quality of work is not
satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the matters of
concern;
(b) Require Consultant to repeat the work at no additional fee until it is satisfactory;
and/or
(c) Terminate the Agreement as hereinafter set forth.
1.4. Warranty. Consultant warrants that it shall perform the services required by this
Agreement in compliance with all applicable Federal and California employment laws,
including, but not limited to, those laws related to minimum hours and wages; occupational
health and safety; fair employment and employment practices; workers' compensation insurance
and safety in employment; and all other Federal, State and local laws and ordinances applicable
to the services required under this Agreement. Consultant shall indemnify and hold harmless
City from and against all claims, demands, payments, suits, actions, proceedings, and judgments
of every nature and description including attorneys' fees and costs, presented, brought, or
recovered against City for, or on account of any liability under any of the above-mentioned laws,
which may be incurred by reason of Consultant's performance under this Agreement.
1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage
in, nor permit its agents to engage in, discrimination in employment of persons because of their
race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital
status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the
Government Code.
1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into
agreements with other consultants for services similar to the services that are subject to this
Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
1.7. Delegation and Assignment. This is a personal service contract, and the duties set
forth herein shall not be delegated or assigned to any person or entity without the prior written
consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ
other personnel to perform services contemplated by this Agreement at Consultant's sole cost
and expense.
1.8. Confidentiality. Employees of Consultant in the course of their duties may have
access to financial, accounting, statistical, and personnel data of private individuals and
employees of City. Consultant covenants that all data, documents, discussion, or other
information developed or received by Consultant or provided for performance of this Agreement
are deemed confidential and shall not be disclosed by Consultant without written authorization
by City. City shall grant such authorization if disclosure is required by law. All City data shall
be returned to City upon the termination of this Agreement. Consultant's covenant under this
Section shall survive the termination of this Agreement.
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2.0. COMPENSATION AND BILLING
2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set
forth in Exhibit "C," attached hereto and made a part of this Agreement (the "Fee Schedule").
Consultant's total compensation shall not exceed Dollars ($ .00).
2.2. Additional Services. Consultant shall not receive compensation for any services
provided outside the scope of services specified in the Consultant's Proposal unless the City or
the Project Manager for this Project, prior to Consultant performing the additional services,
approves such additional services in writing. It is specifically understood that oral requests
and/or approvals of such additional services or additional compensation shall be barred and are
unenforceable.
2.3. Method of Billing. Consultant may submit invoices to the City for approval on a
progress basis, but no more often than two times a month. Said invoice shall be based on the
total of all Consultant's services which have been completed to City's sole satisfaction. City
shall pay Consultant's invoice within forty-five (45) days from the date City receives said
invoice. Each invoice shall describe in detail, the services performed, the date of performance,
and the associated time for completion. Any additional services approved and performed
pursuant to this Agreement shall be designated as "Additional Services" and shall identify the
number of the authorized change order, where applicable, on all invoices.
2.4. Records and Audits. Records of Consultant's services relating to this Agreement
shall be maintained in accordance with generally recognized accounting principles and shall be
made available to City or its Project Manager for inspection and/or audit at mutually convenient
times for a period of three (3) years from the Effective Date.
3.0. TIME OF PERFORMANCE
3.1. Commencement and Completion of Work. The professional services to be
performed pursuant to this Agreement shall commence within five (5) days from the Effective
Date of this Agreement. Said services shall be performed in strict compliance with the Project
Schedule approved by City as set forth in Exhibit "D," attached hereto and incorporated herein
by this reference. The Project Schedule may be amended by mutual agreement of the parties.
Failure to commence work in a timely manner and/or diligently pursue work to completion may
be grounds for termination of this Agreement.
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of
performance resulting from acts beyond the reasonable control of the party or parties. Such acts
shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with
laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a
party.
4.0. TERM AND TERMINATION
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4.1. Term. This Agreement shall commence on the Effective Date and continue for a
period of months, ending on , 20, unless previously terminated as
provided herein or as otherwise agreed to in writing by the parties.
4.2. Notice of Termination. The City reserves and has the right and privilege of
canceling, suspending or abandoning the execution of all or any part of the work contemplated
by this Agreement, with or without cause, at any time, by providing written notice to Consultant.
The termination of this Agreement shall be deemed effective upon receipt of the notice of
termination. In the event of such termination, Consultant shall immediately stop rendering
services under this Agreement unless directed otherwise by the City.
4.3. Compensation. In the event of termination, City shall pay Consultant for
reasonable costs incurred and professional services satisfactorily performed up to and including
the date of City's written notice of termination. Compensation for work in progress shall be
prorated based on the percentage of work completed as of the effective date of termination in
accordance with the fees set forth herein. In ascertaining the professional services actually
rendered hereunder up to the effective date of termination of this Agreement, consideration shall
be given to both completed work and work in progress, to complete and incomplete drawings,
and to other documents pertaining to the services contemplated herein whether delivered to the
City or in the possession of the Consultant.
4.4. Documents. In the event of termination of this Agreement, all documents
prepared by Consultant in its performance of this Agreement including, but not limited to,
finished or unfinished design, development and construction documents, data studies, drawings,
maps and reports, shall be delivered to the City within ten (10) days of delivery of termination
notice to Consultant, at no cost to City. Any use of uncompleted documents without specific
written authorization from Consultant shall be at City's sole risk and without liability or legal
expense to Consultant.
5.0. INSURANCE
5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and
keep in full force and effect during the life of this Agreement all of the following minimum
scope of insurance coverages with an insurance company admitted to do business in California,
rated "A," Class X, or better in the most recent Best's Key Insurance Rating Guide, and
approved by City:
Commercial general liability, including premises -operations, products/completed operations,
broad form property damage, blanket contractual liability, independent contractors, personal
injury or bodily injury with a policy limit of not less than One Million Dollars ($1,000,000.00),
combined single limits, per occurrence. If such insurance contains a general aggregate limit, it
shall apply separately to this Agreement or shall be twice the required occurrence limit.
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Business automobile liability for owned vehicles, hired, and non -owned vehicles, with a policy
limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per
occurrence for bodily injury and property damage.
Workers' compensation insurance as required by the State of California. Consultant agrees to
waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation
rights under its workers' compensation insurance policy against the City, its officers, agents,
employees, and volunteers arising from work performed by Consultant for the City and to
require each of its subcontractors, if any, to do likewise under their workers' compensation
insurance policies.
Professional errors and omissions ("E&O") liability insurance with policy limits of not less than
One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate.
Architects' and engineers' coverage shall be endorsed to include contractual liability. If the
policy is written as a "claims made" policy, the retro date shall be prior to the start of the contract
work. Consultant shall obtain and maintain, said E&O liability insurance during the life of this
Agreement and for three years after completion of the work hereunder.
5.2. Endorsements. The commercial general liability insurance policy and business
automobile liability policy shall contain or be endorsed to contain the following provisions:
Additional insureds: "The City of Costa Mesa and its elected and appointed boards, officers,
officials, agents, employees, and volunteers are additional insureds with respect to: liability
arising out of activities performed by or on behalf of the Consultant pursuant to its contract with
the City; products and completed operations of the Consultant; premises owned, occupied or
used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant."
Notice: "Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor
the coverage or limits reduced, until thirty (30) days after written notice is given to City.
Other insurance: "The Consultant's insurance coverage shall be primary insurance as respects
the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other
insurance maintained by the City of Costa Mesa shall be excess and not contributing with the
insurance provided by this policy."
Any failure to comply with the reporting provisions of the policies shall not affect coverage
provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers.
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.
5.3. Deductible or Self Insured Retention. If any of such policies provide for a
deductible or self-insured retention to provide such coverage, the amount of such deductible or
self-insured retention shall be approved in advance by City. No policy of insurance issued as to
which the City is an additional insured shall contain a provision which requires that no insured
except the named insured can satisfy any such deductible or self-insured retention.
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5.4. Certificates of Insurance. Consultant shall provide to City certificates of
insurance showing the insurance coverages and required endorsements described above, in a
form and content approved by City, prior to performing any services under this Agreement. The
certificates of insurance shall be attached hereto as Exhibit "E" and incorporated herein by this
reference.
5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way,
the indemnification provision contained in this Agreement, or the extent to which Consultant
may be held responsible for payments of damages to persons or property.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to any matter referenced herein and supersedes any and all other prior
writings and oral negotiations. This Agreement may be modified only in writing, and signed by
the parties in interest at the time of such modification. The terms of this Agreement shall prevail
over any inconsistent provision in any other contract document appurtenant hereto, including
exhibits to this Agreement.
6.2. Representatives. The City Manager or his or her designee shall be the
representative of City for purposes of this Agreement and may issue all consents, approvals,
directives and agreements on behalf of the City, called for by this Agreement, except as
otherwise expressly provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who
shall be authorized to issue all consents, approvals, directives and agreements on behalf of
Consultant called for by this Agreement, except as otherwise expressly provided in this
Agreement.
6.3. Project Managers. City shall designate a Project Manager to work directly with
Consultant in the performance of this Agreement.
Consultant shall designate a Project Manager who shall represent it and be its
agent in all consultations with City during the term of this Agreement. Consultant or its Project
Manager shall attend and assist in all coordination meetings called by City.
6.4. Notices. Any notices, documents, correspondence or other communications
concerning this Agreement or the work hereunder may be provided by personal delivery,
facsimile or mail and shall be addressed as set forth below. Such communication shall be
deemed served or delivered: a) at the time of delivery if such communication is sent by personal
delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48
hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such
communication is sent through regular United States mail.
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IF TO CONSULTANT:
IF TO CITY:
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel:
Tel: (714) 754 -
Fax:
Fax: (714) 754-
Attn:
Attn:
6.5. Drug-free Workplace Policy. Consultant shall provide a drug-free workplace by
complying with all provisions set forth in City's Council Policy 100-5, attached hereto as Exhibit
"F" and incorporated herein by reference. Consultant's failure to conform to the requirements
set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall
be cause for immediate termination of this Agreement by City.
6.6. Attorneys' Fees. In the event that litigation is brought by any party in connection
with this Agreement, the prevailing party shall be entitled to recover from the opposing party all
costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the
exercise of any of its rights or remedies hereunder or the enforcement of any of the terms,
conditions, or provisions hereof.
6.7. Governing Law. This Agreement shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to conflict of
laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto
agree that the sole and exclusive venue shall be a court of competent jurisdiction located in
Orange County, California.
6.8. Assignment. Consultant shall not voluntarily or by operation of law assign,
transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without
City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance
shall be void and shall constitute a breach of this Agreement and cause for termination of this
Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of
Consultant's obligation to perform all other obligations to be performed by Consultant hereunder
for the term of this Agreement.
6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify,
hold free and harmless the City, its elected officials, officers, agents and employees, at
Consultant's sole expense, from and against any and all claims, actions, suits or other legal
proceedings brought against the City, its elected officials, officers, agents and employees arising
out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the
work undertaken pursuant to this Agreement. The defense obligation provided for hereunder
shall apply without any advance showing of negligence or wrongdoing by the Consultant, its
employees, and/or authorized subcontractors, but shall be required whenever any claim, action,
complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the
Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action,
complaint or suit asserts liability against the City, its elected officials, officers, agents and
employees based upon the work performed by the Consultant, its employees, and/or authorized
subcontractors under this Agreement, whether or not the Consultant, its employees, and/or
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authorized subcontractors are specifically named or otherwise asserted to be liable.
Notwithstanding the foregoing, the Consultant shall not be liable for the defense or
indemnification of the City for claims, actions, complaints or suits arising out of the sole active
negligence or willful misconduct of the City. This provision shall supersede and replace all other
indemnity provisions contained either in the City's specifications or Consultant's Proposal,
which shall be of no force and effect.
6.10. Independent Contractor. Consultant is and shall be acting at all times as an
independent contractor and not as an employee of City. Consultant shall have no power to incur
any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.
Neither City nor any of its agents shall have control over the conduct of Consultant or any of
Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time,
or in any manner, represent that it or any of its or employees are in any manner agents or
employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all
payment of Income Tax, Social Security, State Disability Insurance Compensation,
Unemployment Compensation, and other payroll deductions for Consultant and its officers,
agents, and employees, and all business licenses, if any are required, in connection with the
services to be performed hereunder. Consultant shall indemnify and hold City harmless from any
and all taxes, assessments, penalties, and interest asserted against City by reason of the
independent contractor relationship created by this Agreement. Consultant further agrees to
indemnify and hold City harmless from any failure of Consultant to comply with the applicable
worker's compensation laws. City shall have the right to offset against the amount of any fees
due to Consultant under this Agreement any amount due to City from Consultant as a result of
Consultant's failure to promptly pay to City any reimbursement or indemnification arising under
this paragraph.
6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent,
or subcontractor of Consultant providing services under this Agreement claims or is determined
by a court of competent jurisdiction or the California Public Employees Retirement System
(PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer
contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to
the contrary, Consultant and any of its employees, agents, and subcontractors providing service
under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any
claims to, any compensation, benefit, or any incident of employment by City, including but not
limited to eligibility to enroll in PERS as an employee of City and entitlement to any
contribution to be paid by City for employer contribution and/or employee contributions for
PERS benefits.
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6.12. Cooperation. In the event any claim or action is brought against City relating to
Consultant's performance or services rendered under this Agreement, Consultant shall render
any reasonable assistance and cooperation which City might require.
6.13. Ownership of Documents. All findings, reports, documents, information and data
including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by
Consultant or any of its subcontractors in the course of performance of this Agreement, shall be
and remain the sole property of City. Consultant agrees that any such documents or information
shall not be made available to any individual or organization without the prior consent of City.
Any use of such documents for other projects not contemplated by this Agreement, and any use
of incomplete documents, shall be at the sole risk of City and without liability or legal exposure
to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages,
losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such
documents for other projects not contemplated by this Agreement or use of incomplete
documents furnished by Consultant. Consultant shall deliver to City any findings, reports,
documents, information, data, in any form, including but not limited to, computer tapes, discs,
files audio tapes or any other Project related items as requested by City or its authorized
representative, at no additional cost to the City.
6.14. Public Records Act Disclosure. Consultant has been advised and is aware that
this Agreement and all reports, documents, information and data, including, but not limited to,
computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors,
pursuant to this Agreement and provided to City may be subject to public disclosure as required
by the California Public Records Act (California Government Code Section 6250 et seq.).
Exceptions to public disclosure may be those documents or information that qualify as trade
secrets, as that term is defined in the California Government Code Section 6254.7, and of which
Consultant informs City of such trade secret. The City will endeavor to maintain as confidential
all information obtained by it that is designated as a trade secret. The City shall not, in any way,
be liable or responsible for the disclosure of any trade secret including, without limitation, those
records so marked if disclosure is deemed to be required by law or by order of the Court.
6.15. Conflict of Interest. Consultant and its officers, employees, associates and
subconsultants, if any, will comply with all conflict of interest statutes of the State of California
applicable to Consultant's services under this agreement, including, but not limited to, the
Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section
1090. During the term of this Agreement, Consultant and its officers, employees, associates and
subconsultants shall not, without the prior written approval of the City Representative, perform
work for another person or entity for whom Consultant is not currently performing work that
would require Consultant or one of its officers, employees, associates or subconsultants to
abstain from a decision under this Agreement pursuant to a conflict of interest statute.
6.16. Responsibility for Errors. Consultant shall be responsible for its work and results
under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation
as may be required by the City's representative, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attributable to
Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design
drawings, estimates and other Consultant professional services necessary to rectify and correct
M
the matter to the sole satisfaction of City and to participate in any meeting required with regard
to the correction.
6.17. Prohibited Employment. Consultant will not employ any regular employee of
City while this Agreement is in effect.
6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any
of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent
this Agreement incorporates by reference any provision of any document, such provision shall be
deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and
conditions of this Agreement and those of any such provision or provisions so incorporated by
reference, this Agreement shall govern over the document referenced.
6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation and
negotiation of this Agreement and in the performance of its obligations hereunder except as
expressly provided herein.
6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole
benefit of City and Consultant and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall have any right in, under or to this
Agreement.
6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain or to be a full or
accurate description of the content thereof and shall not in any way affect the meaning or
interpretation of this Agreement.
6.22. Construction. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises with
respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties
and in accordance with its fair meaning. There shall be no presumption or burden of proof
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement.
6.23. Amendments. Only a writing executed by the parties hereto or their respective
successors and assigns may amend this Agreement.
6.24. Waiver. The delay or failure of either party at any time to require performance or
compliance by the other of any of its obligations or agreements shall in no way be deemed a
waiver of those rights to require such performance or compliance. No waiver of any provision of
this Agreement shall be effective unless in writing and signed by a duly authorized representative
of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy
in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in
respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
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6.25. Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall not
affect the validity or enforceability of the remaining terms and provisions hereof or of the
offending provision in any other circumstance. Notwithstanding the foregoing, if the value of
this Agreement, based upon the substantial benefit of the bargain for any party, is materially
impaired, which determination made by the presiding court or arbitrator of competent
jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good
faith negotiations.
6.26. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original. All counterparts shall be construed together and shall
constitute one agreement.
6.27. Corporate Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said
parties and that by doing so the parties hereto are formally bound to the provisions of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and
through their respective authorized officers, as of the date first above written.
CITY OF COSTA MESA,
A municipal corporation
Date:
[Mayor or Chief Executive Officer]
CONSULTANT
Date:
Signature
Name and Title
Social Security or Taxpayer ID Number
ATTEST:
City Clerk and ex -officio Clerk
of the City of Costa Mesa
APPROVED AS TO FORM:
Date:
City Attorney
APPROVED AS TO INSURANCE:
Date:
Risk Management
APPROVED AS TO CONTENT:
Date:
Project Manager
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EXHIBIT A
REQUEST FOR PROPOSALS
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EXHIBIT B
CONSULTANT'S PROPOSAL
33
EXHIBIT C
FEE SCHEDULE
34
EXHIBIT D
PROJECT SCHEDULE
35
EXHIBIT E
CERTIFICATES OF INSURANCE
36
EXHIBIT F
CITY COUNCIL POLICY 100-5
37
SUBJECT
DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE
8-8-89 PAGE
1 of 3
BACKGROUND
Under the Federal Drug -Free Workplace Act of 1988, passed as part of omnibus drug legislation
enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will
provide drug-free workplaces. At the present time, the City of Costa Mesa, as a sub -grantee of
Federal funds under a variety of programs, is required to abide by this Act. The City Council has
expressed its support of the national effort to eradicate drug abuse through the creation of a
Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools
and other activities in support of a drug-free community. This policy is intended to extend that
effort to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs
in the workplace.
PURPOSE
It is the purpose of this Policy to:
1. Clearly state the City of Costa Mesa's commitment to a drug-free society.
2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving
funds from the City of Costa Mesa share the commitment to a drug-free workplace.
POLICY
The City Manager, under direction by the City Council, shall take the necessary steps to see that
the following provisions are included in all contracts and agreements entered into by the City of
Costa Mesa involving the disbursement of funds.
1. Contractor or Sub -grantee hereby certifies that it will provide a drug-free workplace
by:
a. Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited in
Contractor's and/or sub -grantee's workplace, specifically the job site or location included
in this contract, and specifying the actions that will be taken against the employees for
violation of such prohibition;
IN
SUBJECT
DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE
2 of 3
b. Establishing a Drug -Free Awareness Program to inform employees about:
1. The dangers of drug abuse in the workplace;
2. Contractor's and/or sub -grantee's policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation and employee assistance
programs; and
4. The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
C. Making it a requirement that each employee to be engaged in the performance of
the contract be given a copy of the statement required by subparagraph A;
d. Notifying the employee in the statement required by subparagraph 1 A that, as a
condition of employment under the contract, the employee will:
1. Abide by the terms of the statement; and
2. Notify the employer of any criminal drug statute conviction for a violation
occurring in the workplace no later than five (5) days after such conviction;
e. Notifying the City of Costa Mesa within ten (10) days after receiving notice under
subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such
conviction;
f. Taking one of the following actions within thirty (30) days of receiving notice
under subparagraph 1 D 2 with respect to an employee who is so convicted:
1. Taking appropriate personnel action against such an employee, up to and
including termination; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance
or rehabilitation program approved for such purposes by a Federal, State, or local health
agency, law enforcement, or other appropriate agency;
SUBJECT
DRUG-FREE WORKPLACE POLICY NUMBER 100-5 EFFECTIVE DATE
H33'.16210M,
3 of 3
39
g. Making a good faith effort to maintain a drug-free workplace through
implementation of subparagraphs 1 A through 1 F, inclusive.
2. Contractor and/or sub -grantee shall be deemed to be in violation of this Policy if the City of
Costa Mesa determines that:
a. Contractor and/or sub -grantee has made a false certification under paragraph 1
above;
b. Contractor and/or sub -grantee has violated the certification by failing to carry out
the requirements of subparagraphs 1 A through 1 G above;
C. Such number of employees of Contractor and/or sub -grantee have been convicted
of violations of criminal drug statutes for violations occurring in the workplace as to
indicate that the contractor and/or sub -grantee has failed to make a good faith effort to
provide a drug-free workplace.
3. Should any contractor and/or sub -grantee be deemed to be in violation of this Policy pursuant
to the provisions of 2 A, B, and C, a suspension, termination or debarment proceeding subject to
applicable Federal, State, and local laws shall be conducted. Upon issuance of any final decision
under this section requiring debarment of a contractor and/or sub -grantee, the contractor and/or
sub -grantee shall be ineligible for award of any contract, agreement or grant from the City of
Costa Mesa for a period specified in the decision, not to exceed five (5) years. Upon issuance of
any final decision recommending against debarment of the contractor and/or sub -grantee, the
contractor and/or sub -grantee shall be eligible for compensation as provided by law.
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42
EX PARTE COMMUNICATIONS CERTIFICATION
Please indicate by signing below one of the following two statements. Only sign one statement.
I certify that Proposer and Proposer's representatives have not had any communication with a
City Councilmember concerning the CONTRACTOR Services RFP at any time after April 4,
2014 2014
I
I certify that Proposer or Proposer's representatives have communicated after April 4, 2014 with
a City Councilmember concerning the Transient Occupancy Tax Audit Services RFP. A copy of
all such communications is attached to this form for public distribution.
43
E
PRICING PROPOSAL FORM
TRANSIENT OCCUPANCY TAX AUDIT SERVICES
In preparing the pricing proposal for this project the consultant shall take into consideration the
following;
• Compensation for services provided in competing the tasks associated with the Scope of Work
and CM Municipal Code Title 16 Chapter IV Transient Occupancy Tax.
• Consultant shall state the number of hours allotted for each hotel/motel and provide a total cost
for each audit year along with a stated amount for attending meetings. Should the amount of
hours expended during these schedule, the consultant may be authorized to invoice the City for
the additional hours upon first notifying the City that the budget limit for meetings has been
reached.
• The Consultant's standard billing rates for all classifications of staff likely to be involved in the
project along with hours worked and total cost.
• Describe reimbursable expenses and cost.
Employee Hourly Rate Total Cost
$ $
Audit
Year
Name of Hotel/Motel
Rooms
Estimated
Hours
work
Estimated cost of
audit
2014
*Avenue of the Arts Wyndham Hotel
238
2014
*Best Western Newport Mesa Inn
94
2014
Costa Mesa Motor Inn
86
2014
*Crowne Plaza Costa Mesa Orange County
224
2014
Hacienda Inn — Travelodge
58
2014
Motel 6 #1347
94
2014
Regency Inn
32
2014
Sandpiper Motel
44
2014
Super 8 Motel
49
2014
Tern Inn Motel
18
45
2014
Travelodge OC Airport
120
Meetings
$
Total budget for 2014 Audit
1057
$
2015
Ana Mesa Inn
52
2015
Blvd Hotel
58
2015
*Country Side Inn & Suites
176
2015
Harbor Bay Motel
48
2015
*Marriott Suites Costa Mesa
253
2015
New Harbor Inn
33
2015
*Ramada LTD
139
2015
Tahiti Inn Motel
19
2015
Vagabondlnns
127
2015
*Westin South Coast Plaza
390
Meetings
$
Total budget for 2015 Audit
1237
$
2016
Ali Baba Motel
43
2016
Cozy Inn
27
2016
Days Inn
31
2016
*Hilton Orange County/Costa Mesa
485
2016
*Holiday Inn Express
62
2016
La Quinta Inn #541
160
2016
Motel 6 Newport Beach
87
2016
*Residence Inn -Costa Mesa
144
2016
Star Inn
30
Meetings
Total for 2016 Audit
1069
$
*Hotel is participating in the Business Improvement Area Assessment — additional audit step will be
required
m
47
DISQUALIFICATION QUESTIONNAIRE
The Contractor shall complete the following questionnaire:
Has the Contractor, any officer of the Contractor, or any employee of the Contractor who has
proprietary interest in the Contractor, ever been disqualified, removed, or otherwise prevented
from bidding on, or completing a federal, state, or local government project because of a
violation of law or safety regulation?
Yes No
If the answer is yes, explain the circumstances in the following space.
m
CHAPTER IV. TRANSIENT OCCUPANCY TAX [4]
Sec. 16-62. "Hotel" defined.
Sec. 16-63. "Occupancy" defined.
Sec. 16-64. "Operator" defined.
Sec. 16-65. "Person" defined.
Sec. 16-66. "Rent" defined.
Sec. 16-67. "Transient" defined.
Sec. 16-68. Tax imposed; nature; payment.
Sec. 16-69. Exemptions.
Sec. 16-70. Responsibility of operator.
Sec. 16-71. Registration required.
Sec. 16-72. Reporting and remitting.
Sec. 16-73. Delinquency penalties and interest.
Sec. 16-74. Proceedings for remedy.
Sec. 16-75. Appeals.
Sec. 16-76. Records required.
Sec. 16-77. Refunds.
Sec. 16-78. Tax declared a debt; action to collect.
Sec. 16-79. Criminal penalty.
Sec. 16-62. "Hotel" defined.
As used in this chapter, the term "hotel" shall mean any structure, or any portion of any structure,
which is occupied or intended or designed for occupancy by transients for dwelling, lodging or
sleeping purposes, and shall include any hotel, inn, tourist home or house, motel, studio hotel,
bachelor hotel, lodging house, rooming house, apartment house, rental unit, dormitory, public or
private club, mobile home or house trailer at a fixed location, or other similar structure or portion
thereof.
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
50
Sec. 16-63. "Occupancy" defined.
As used in this chapter, the term 'occupancy" shall mean the use or possession, or the right to
use or possession of any room or rooms or portion thereof in any hotel for dwelling, lodging or
sleeping purposes.
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
Sec. 16-64. "Operator" defined.
As used in this chapter, the term "operator" shall mean the person who is proprietor of the hotel,
whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any
other capacity. Where the operator performs his functions through a managing agent of any type
or character, other than an employee, the managing agent shall also be deemed an operator for
the purposes of this chapter and shall have the same duties and liabilities as his principal.
Compliance with the provisions of this chapter by either the principal or the managing agent
shall, however, be considered to be compliance by both.
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
Sec. 16-65. "Person" defined.
As used in this chapter, the term "person" shall mean any individual, firm, partnership, joint
venture, association, social club, fraternal organization, joint stock company, corporation, estate,
trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a
unit.
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
Sec. 16-66. "Rent" defined.
As used in this chapter, the term "rent" shall mean the consideration charged, whether or not
received, for the occupancy of space in a hotel valued in money, whether to be received in
money, goods, labor or otherwise, including all receipts, cash, credits and property and services
of any kind or nature, without any deduction therefrom whatsoever.
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
Sec. 16-67. "Transient" defined.
As used in this chapter, the term "transient" shall mean any person who exercises occupancy or is
entitled to occupancy by reason of concession, permit, right of access, license or other agreement
for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days
as full days. Any such person so occupying space in a hotel shall be deemed to be a transient
until the period of thirty (30) days has expired, unless there is an agreement in writing between
the operator and the occupant providing for a longer period of occupancy. In determining
whether a person is a transient, uninterrupted periods of time extending both prior and
subsequent to the effective date of this chapter may be considered.
51
(Code 1960, § 61000; Ord. No. 69-4, 2-17-69)
Sec. 16-68. Tax imposed; nature; payment.
For the privilege of occupancy in any hotel or motel, each transient is subject to and shall pay a
tax in the amount of eight percent of the rent charged by the operator. The tax constitutes a debt
owed by the transient to the city which is extinguished only by payment to the operator or to the
city. The transient shall pay the tax to the operator of the hotel or motel at the time the rent is
paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel
or motel. If for any reason the tax due is not paid to the operator of the hotel or motel, the finance
department may require that the tax shall be paid directly to the finance department.
(Code 1960, § 61001; Ord. No. 69-4, 2-17-69; Ord. No. 74-44, § 2, 8-20-74; Ord. No. 10-18, § 1,
12-7-10)
Sec. 16-69. Exemptions.
(a) No tax shall be imposed upon:
(1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city
to impose the tax herein provided for.
(2) Any federal or State of California officer or employee when on official business.
(3) Any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
(b) No exemption shall be granted except upon a claim therefor made at the time rent is
collected and under penalty of perjury upon a form prescribed by the finance department.
(Code 1960, § 61002; Ord. No. 69-4, 2-17-69)
Sec. 16-70. Responsibility of operator.
Each operator shall collect the tax imposed by this chapter to the same extent and at the same
time as the rent is collected from every transient. The amount of tax shall be separately stated
from the amount of the rent charged, and each transient shall receive a receipt for payment from
the operator. No operator of a hotel shall advertise or state in any manner, whether directly or
indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it
will not be added to the rent, or that, if added, any part will be refunded, except in the manner
hereinafter provided.
(Code 1960, § 61003; Ord. No. 69-4, 2-17-69)
Sec. 16-71. Registration required.
52
Within thirty (30) days after March 24, 1969, or within thirty (30) days after commencing
business, whichever is later, each operator of any hotel renting occupancy to transients shall
register the hotel with the finance department and obtain from it a transient occupancy
registration certificate to be at all times posted in a conspicuous place on the premises. The
certificate shall, among other things, state the following:
(a) The name of the operator;
(b) The address of the hotel;
(c) The date upon which the certificate was issued;
(d) The following statement: "This Transient Occupancy Registration Certificate signifies
that the person named on the face hereof has fulfilled the requirements of the Uniform Transient
Occupancy Tax Law by registering with the Finance Department for the purpose of collecting
from transients the Transient Occupancy Tax and remitting said tax to the Finance Department.
This certificate does not authorize any person to conduct any unlawful business or to conduct
any lawful business in an unlawful manner, nor to operate a hotel without strictly complying
with all local applicable laws, including but not limited to those requiring a permit from any
board, commission, department or office of this City. This certificate does not constitute a
permit."
(Code 1960, § 61004; Ord. No. 69-4, 2-17-69)
Sec. 16-72. Reporting and remitting.
Each operator shall file, on or before the last day of the month following the close of each
calendar quarter or of such different reporting period as may be established by the finance
department, a return to the finance department on forms provided by it, of the total rents charged
and received, the amount of tax collected for transient occupancies, and such other information
as the finance department may reasonably require. At the time the return is filed, the full amount
of the tax collected shall be remitted to the finance department. The finance department may
establish either shorter or longer reporting periods for any individual certificate holder or
category of certificate holders if it deems it necessary or desirable in order to insure collection of
the tax or to increase the efficiency of its administration. Returns and payments are due
immediately upon cessation of business for any reason. All taxes collected by operators pursuant
to this chapter shall be held in trust for the account of the city until payment thereof is made to
the finance department.
(Code 1960, § 61005; Ord. No. 69-4, 2-17-69)
Sec. 16-73. Delinquency penalties and interest.
(a) Original delinquency: Any operator who fails to remit any tax imposed by this chapter
within the time required shall pay a penalty of ten (10) per cent of the amount of the tax in
addition to the amount of the tax.
53
(b) Continued delinquency: Any operator who fails to remit any delinquent remittance on or
before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten (10) per cent of the amount of the tax in
addition to the amount of the tax and the ten (10) per cent penalty first imposed.
(c) Fraud: If the city council determines that the nonpayment of any remittance due under
this chapter is due to fraud, a penalty of twenty-five (25) per cent of the amount of the tax shall
be added thereto in addition to the penalties stated in subsections (a) and (b) of this section.
(d) Interest: In addition to the penalties imposed, any operator who fails to remit any tax
imposed by this chapter shall pay interest at the rate of one-half of one per cent per month for
each month or portion of a month that the tax shall be delinquent on the amount of the tax,
exclusive of penalties, from the date on which the tax first became delinquent until paid. The
interest shall be computed on a monthly basis and shall not be subject to proration for any
portion of a month.
(e) Penalties merged with tax: Every penalty imposed and such interest as accrues under the
provisions of this section shall become a part of the tax herein required to be paid.
(Code 1960, § 61006; Ord. No. 69-4, 2-17-69)
Sec. 16-74. Proceedings for remedy.
If any operator shall fail or refuse to collect the tax and to make, within the time provided in this
chapter, any report and remittance of the tax, or any portion thereof, required by this chapter, the
finance department shall proceed in such manner as it may deem best to obtain facts and
information on which to base an estimate of the tax due. As soon as the finance department shall
procure such facts and information as it is able to obtain upon which to base the assessment of
any tax imposed by this chapter and payable by any operator who has failed or refused to collect
the same and to make such report and remittance, it shall proceed to determine and assess against
such operator the tax, interest and penalties provided for by this chapter. In case such
determination is made, the finance department shall give a notice of the amount so assessed by
serving it personally or by depositing it in the United States mail, postage prepaid, addressed to
the operator so assessed at his last known address. Such operator may, within ten (10) days after
the serving or mailing of such notice, make application in writing to the finance department for a
hearing on the amount assessed. If application by the operator for a hearing is not made within
the time prescribed, the tax, interest and penalties, if any, determined by the finance department
shall become final and conclusive and immediately due and payable. If such application is made,
the finance department shall give not less than five (5) days' written notice in the manner
described herein to the operator to show cause at a time and place fixed in the notice why the
amount specified therein should not be fixed for such tax, interest and penalties. At such hearing,
the operator may appear and offer evidence why such specified tax, interest and penalties should
not be so fixed. After such hearing, the finance department will determine the proper tax to be
remitted and shall thereafter give written notice to the person in the manner prescribed herein of
such determination and the amount of such tax, interest and penalties. The amount determined to
be due shall be payable after fifteen (15) days unless an appeal is taken as provided in section 16-
75.
54
(Code 1960, § 61007; Ord. No. 69-4, 2-17-69)
Sec. 16-75. Appeals.
Any operator aggrieved by any decision of the finance department with respect to the amount of
such tax, interest and penalties, if any, may appeal to the council by filing a notice of appeal with
the city clerk within fifteen (15) days of the serving or mailing of the determination of tax due.
The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice
in writing to such operator at his last known place of address. The findings of the council shall be
final and conclusive and shall be served upon the appellant in the manner prescribed above for
service of notice of hearing. Any amount found to be due shall be immediately due and payable
upon the service of notice.
(Code 1960, § 61008; Ord. No. 69-4, 2-17-69)
Sec. 16-76. Records required.
It shall be the duty of every operator liable for the collection and payment to the city of any tax
imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may
be necessary to determine the amount of such tax as he may have been liable for the collection
and payment of to the city, which records the finance department shall have the right to inspect at
all reasonable times.
(Code 1960, § 61009; Ord. No. 69-4, 2-17-69)
Sec. 16-77. Refunds.
(a) Claim required: Whenever the amount of any tax, interest or penalty has been overpaid or
paid more than once or has been erroneously or illegally collected or received by the city under
this chapter, it may be refunded as provided in subsections (b) and (c) of this section; provided,
that a claim in writing therefor, stating under penalty of perjury the specific grounds upon which
the claim is founded, is filed with the finance department within three (3) years of the date of
payment. The claim shall be on forms furnished by the finance department.
(b) Claim by operator: Any operator may claim a refund or take as credit against taxes
collected and remitted, the amount overpaid, paid more than once or erroneously or illegally
collected or received when it is established in a manner prescribed by the finance department that
the person from whom the tax has been collected was not a transient; provided, however, that
neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either
been refunded to the transient or credited to rent subsequently payable by the transient to the
operator.
(c) Claim by transient: A transient may obtain a refund of taxes overpaid or paid more than
once or erroneously or illegally collected or received by the city by filing a claim in the manner
provided in subsection (a), but only when the tax was paid by the transient directly to the finance
department, or when the transient, having paid the tax to the operator, establishes to the
55
satisfaction of the finance department that the transient has been unable to obtain a refund from
the operator who collected the tax.
(d) Evidence: No refund shall be paid under the provisions of this section unless the claimant
establishes his right thereto by written records showing entitlement thereto.
(Code 1960, § 61010; Ord. No. 69-4, 2-17-69)
Sec. 16-78. Tax declared a debt; action to collect.
Any tax required to be paid by any transient under the provisions of this chapter shall be deemed
a debt owned by the transient to the city. Any such tax collected by an operator which has not
been paid to the city shall be deemed a debt owned by the operator to the city. Any person owing
money to the city under the provisions of this chapter shall be liable to an action brought in the
name of the city for the recovery of such amount.
(Code 1960, § 61011; Ord. No. 69-4, 2-17-69)
Sec. 16-79. Criminal penalty.
Any operator or other person who fails or refuses to register as required herein, or to furnish any
return required to be made, or who fails or refuses to furnish a supplemental return or other data
required by the finance department, or who renders a false or fraudulent return or claim shall be
guilty of a misdemeanor, and shall be punishable as provided in section 1-33 of this Code. Any
person required to make, render, sign or verify any report or claim, who makes any false or
fraudulent report or claim with intent to defeat or evade the determination of any amount due
required by this chapter to be made, shall be guilty of a misdemeanor and punishable as
aforesaid.
(Code 1960, § 610.12; Ord. No. 69-4, 2-17-69)
FOOTNOTE(S):
--- (4) ---
State Law reference— Authority to levy transient room tax, Gov. Code, § 7280. (Back)
56
57
WV
City of Costa Mesa Insurance Requirements
If a vendor will be performing work on city premises, the vendor will need to furnish insurance
certificates to the City prior to beginning work. The insurance that is required is the general
liability with a separate endorsement page (detailed description below), automobile insurance
and workers compensation.
A purchase order will not be issued until, insurance certificates are provided and the insurance is
approved by Risk Management. It will be the responsibility of the department requesting the
work to obtain the insurance certificates prior to submitting the purchase requisition to the
Finance Department. Any questions about insurance dollar limits for select projects are to be
directed to Risk Management prior to the bid process.
The following language is added to bids, price agreement/ contracts and purchase orders for
technical and mechanical services:
Insurance
Contractor shall not commence work under this price agreement until he has obtained all
insurance required under this section and the insurance has been approved by City as to form,
amount, and carrier, nor shall contractor allow any subcontractor to commence any work until all
required insurance has been similarly obtained by the subcontractor and approved by City.
Neither the failure of contractor to supply specified insurance policies and coverage, nor the
failure of City to approve same shall alter or invalidate the provisions of this price agreement.
Contractor shall obtain and maintain during the life of this contract the following insurance
coverage:
General Liability Insurance Coverage
Commercial General Liability, including coverage for premises -operations, products/completed
operations hazard, blanket contractual, broad form property damage, independent contractors,
and personal injury.
The above insurance coverage shall have limits of not less than one million dollars ($1,000,000)
combined single limit, per occurrence and aggregate.
Endorsement Page (* A separate endorsement page must be provided)
Endorsements to the policies providing the above insurance shall be obtained by contractor,
adding the following three provisions:
a) Additional insureds:
"The City of Costa Mesa and its elected and appointed boards, officers, agents, and employees
are additional insureds with respect to the subject project and agreement.
59
b) Notice:
"Said policy shall not terminate, nor shall it be canceled nor the coverage reduced, until
thirty(30) days after written notice is given to City.
C) Other Insurance:
Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing
with the insurance provided by this policy. "
All insurance carriers utilized by the contractor or any subcontractor under this agreement shall
be approved by the California Department of Insurance to transact business in the State of
California. The types of services provided under this agreement may further require contractor's
insurance carrier(s) to be admitted insurers in the State of California.
Workers' Compensation Insurance
Contractor shall obtain and maintain during the life of this contract workers' compensation
insurance in statutory amount and, if any work is sublet, contractor shall require all
subcontractors to obtain workers' compensation insurance in statutory amount.
All workers' compensation insurance policies shall provide that the insurance may not be
canceled without thirty (30) days advance written notice of such cancellation to City.
Contractor is aware of the provision of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workers' Compensation or undertake self-insurance
in accordance with the provisions of that Code, and will comply with such provisions before
commencing the performance of the work of this contract.
Automobile Insurance
Automobile insurance including owned, hired, and non -owned vehicles.
The above insurance coverage shall have limits of not less than one million dollars ($1,000,000)
combined single limit, per occurrence and aggregate.
Proof of Insurance
Prior to award of the price agreement/contract, contractor shall furnish the department requesting
the service proof of compliance with the above insurance requirements.
The insurance certificates must be approved by the Risk Management Division and a copy needs
to be sent to the Finance Department with the purchase requisition. It is ultimately the
responsibility of the department requesting the service, to obtain the required insurance.
M
If purchase requisition is received without appropriate insurance certificates, Purchasing may
return the requisition to the department or contact the contractor and request the appropriate
insurance certificates.
61
62
Appendix I Information on Motel and Hotel
Properties in Costa Mesa
Audit Year
Schedule
Name of Hotel/Motel
Number
of Units
Business Address
Phone Number
2016
Ali Baba Motel
43
2250 Newport Blvd.
(949) 645-7700
2015
Ana Mesa Inn
52
3597 Harbor Blvd.
(714) 662-3500
2014
Avenue of the Arts
Wyndham Hotel
238
3350 Avenue of the Arts
(714) 751-5100
2014
Best Western Newport
Mesa Inn
94
2642 Newport Blvd.
(949) 650-3020
2015
Blvd Hotel
58
2430 Newport Blvd.
(949) 631-7840
2014
Costa Mesa Motor Inn
86
2277 Harbor Blvd.
(323) 937-1050
2015
Country Side Inn & Suites
176
325 Bristol ST.
(714) 549-0300
2016
Cozy Inn
27
325 W. Bay ST.
(949) 650-2055
2014
Crowne Plaza Costa Mesa
Orange County
224
3131 Bristol St.
(714) 557-3000
2016
Days Inn
31
2100 Newport Blvd.
(949) 642-2670
2014
Hacienda Inn —
Travelodge
58
1951 Newport Blvd.
(949) 650-2999
2015
Harbor Bay Motel
48
2026 Harbor Blvd.
(949) 631-6590
2016
Hilton Orange
County/Costa Mesa
485
3050 Bristol St.
(714) 540-7000
2016
Holiday Inn Express
62
2070 Newport Blvd.
(949) 631-6000
2016
La Quinta Inn #541
160
1515 S. Coast Dr.
(214) 492-6600
2015
Marriott Suites Costa
Mesa
253
500 Anton Blvd.
(714) 957-1100
2014
Motel 6 #1347
94
1441 Gisler Ave.
(714) 957-3063
2016
Motel 6 Newport Beach
87
2274 Newport Blvd.
(949) 646-7445
2015
New Harbor Inn
33
2205 Harbor Blvd.
(949) 646-3277
2015
Ramada LTD
139
1680 Superior Ave.
(949) 645-2221
2014
Regency Inn
32
2544 Newport Blvd.
(949) 650-2988
2016
Residence Inn -Costa
Mesa
144
881 Baker St.
(714) 241-8800
2014
Sandpiper Motel
44
1967 Newport Blvd.
(949) 645-9137
2016
Star Inn
30
2656 Newport Blvd.
(949) 650-6666
2014
Super 8 Motel
49
2645 Harbor Blvd.
(714) 545-9471
2015
Tahiti Inn Motel
19
450 Victoria St.
(949) 548-2129
2014
Tern Inn Motel
18
2154 Newport Blvd
(949) 548-8173
2014
Travelodge OC Airport
120
1400 Bristol St.
(714) 557-8700
2015
Vagabond Inns
127
3205 harbor Blvd.
(714) 557-8360
2015
Westin South Coast Plaza
390
686 Anton Blvd.
(714) 540-2500