HomeMy WebLinkAboutS03-Community Development
I CfTYOF SAN BERNARDINO....: riEQ.UEST ~ COUNCIL ~CTION
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From: Kenneth J. Henderson, Di~ _Ar.lJll,Soom..,t: 1u-~AL '" SMM.L BUSDlESS
l K t ~ 1:1. II"... 'tI1'r. LOAN l\GREDCENr IlE'IWEEH CITY
Dept: Camlunity Develcpnent 1933 AUG -9 f!J, 2: 45 l\ND JlEN)y 1lQUIPMENl' 8MZB
l\ND REH1'lWI, DC.
Dete: August 9, 1989
Synopsis of Previous Council action:
None
Recommended motion:
Adopt Resolution
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Contact person: Ken Henderson
Phone:
5065
Supporting deta attached:
staff Report
Ward:
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FUNDING REQUIREMENTS:
Amount:
$50,000.00
Source: (Acct. No.) To Be Created
(Acct. DescriPtion)
EDP Loan F\lnj
Finance:
Council Notes:
75.0262
Agenda Item No. 5)-3
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. CITY QF SAN BERNARDINO ,,- REQIJEST FOR COUNCIL ~TION
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STAFF REPORT
DescriDtion ot cmnr.m1
Ready Equipnent Sales am Rentals, Inc., is in the J:usiness of sales
am rental of equipnent am machinery to hanec:Mners or to the overall
oonst:ruction industry. '!be l'Y'OIt"'ny is organized as a Cal!tomia
CoIJlOration with its principal offices located at 3969 North Sierra
Way in San Bernardino.
Having been established twenty-five (25) years ago, the CCllpanyhas
undergone several transfoDllatians with respect to services am
products offered, as well as cllan3'e of ownership. '!he current owners,
each owning fifty percent (50%) of the CCllpany's stock, are Mr. Donald
H. Tennissen am Mr. Clarles R. Piehler. Mr. Tennissen is also the
current owner of three (3) self-service caJ:Washes. Mr. Piehler brings
twenty-six (26) years of eJq:lerience in the equipnent rental J:usiness
to the CCl1pany. His eJq:lerience ran;Jes fran that of ''yardnarVde1ivery
man" to that of vice-president in charge of sales. His particular
area of concentration has been within the construction iJnustry.
'll1e CCllpany has evolved fran a sales volume of $16,000.00 per Dalth
with three (3) eIlployees to a current volume of $80,000.00 per Dalth
am ten (lO) eIlployees. 'Ihis growth is attrib.tted to the ccupany's
expansion into oonstruction equipnent rental am sales. COntinled
expansion in the oonstruction field is anticipated at the current rate
throughoot the next five (5) year period. '!his is based upcn the con-
tinued econanic am pcpllation growth within the Inlam &pire.
'll1e CCllpany presently has one-h1.1rmed (100) c:pen acoamts with
contractors, in:lustrial finns am the City of San Bernardino for use
of heavy equipnent am machinery.
~t and PI.IrDose ot IDan
'!he CCl1pany's current plans are to expan:i its facilities am product
line. Prqlerty totalling 4.7 acres has been pll"Chased for this
p.Irpose am is located at 550 West 40th street. '!be loan is being
requested in the annmt of $50,000.00 for the p.Irpose of upgrading am
renovating the facility currently located on the prqJerty am, also
for street inprovementS, cums, gutters, lllOVing of two (2) telE!lilone
poles am overall laro~in;J. '!he following is an awroxllnate use of
fun:1s breakdown:
Land and BuildiJq ZqlJ.'OVements:
Oft-site ZqlJ.'OV_ts:
Total ~t Required:
llate and Tem
$15,000.00
835.000.00
850.000.00
'!he $50,000.00 loan requested would be for a period of seven (7) years
at an interest rate of eight percent (8%).
8/9/89
15.0264
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f:TJ:AFF REl'ORl' CJ:Ia'INUED...
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Collateral
Collateral will be provided by real estate located at 1990 Washing1:al
street in Col1:al, ~ch currently has an a~roximate value of
$500,000.00. '!be prqlerty is not erx:untlered by any liens.
Job creation
'!he catpany prcposes to create IJeb.-een six (6) ani ten (lO) new
positions, with wages ranging fran $6.00 to $10.00 per halr, over a
five (5) year period.
tJraencv Clause
The reason this it:.n was D1ace4 on the IIIlDDl_bl -m is t:M
F.oontmIiC D817eJ...-..-.t P~"",.._ nr-it~- (BDPC) naulai; =---;;ti;;;; ...--,le
was _rocerlv alicmed with the _ -- i~-- ._f.8ion aohedJ,l..
meanina anotber ~ (3) 1lUlta would --s beforec::: :: ::
4isbursec!. The financial JI884 of t:M loan -1l__ f (110M.
and the BOlle reau.lar _f-. _'1. 1lAfI beeD cMnae4 ~ aile; for
the ti-lv 4lIYe1oa'lIe"t of _11 J::wpf___ loan menda it~.
R...............4ation
'!he Econanic Develc:pnent P41.A:l1am o:mnittee (EDPC) has reviewed and
evaluated this request for financial assistance. '!be EDPC took action
rec:atlllleI'ld awroval. of this loan request to the Mayor ani Calm:ln
Cooncil.
I re....u.,.,.etXi ad~ion of the attached resolution.
lOJf,/lab/3392
attadunents
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RESOLUTION NUMBER
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RESOLUTION OJ' THE CITY OJ' SAN BERNARDINO AUTHORIZING AKD
DIRECTING THE EXECUTION OJ' A SMALL BUSINBSS LOAN AGREEMBNT
BETWEEN THE CITY OF SAN BERNARDINO AND READY EQUIPMENT SALBS A1lD
RENTALS, INC.
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BE IT RESOLVED BY TD KAYOR AND COMMON COUNCIL OJ' '1'BB CITY
5 OJ' SAN BERNARDINO AS J'OLLOWSz
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Seetion 1.
(a)
The Mayor of the City of San Bernardino is hereby
authorized to execute, on behalf of the City of San Bernardino, a
loan agreement with Ready Equipment Sales and Rentals, Inc.,
10 which loan agreement is attached hereto as Exhibit "1" and is
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incorporated herein by reference as though fully set forth at
length.
The agreement provides for the loaning of funds from the
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13 small business loan program in the amount of $50,000.00.
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(b)
The authorizations to execute the above referenced
15 agreement is rescinded if the parties to the agreement fail to
16 execute same within sixty (60) days of the passage of this
resolution.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
day of
meeting thereof, held on the
, 1989, by the following vote to
wit:
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12 Approved as to form and
13 legal content:
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15 CITY ATTORNEY
16 KJH/lab/0681
17 attachment
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RESOLUTION OF THE CITY or SAN BERNARDINO AUTHORIZING THB .~
EXECUTION OF A SMALL ~INES~AN AGREEMENT WITH ~
READY EQUIPMENT SALES~ RE~S, INC.
AYES:
Councilpersons
NAYES:
ABSENT:
CITY CLERX
The foregoing resolution is hereby approved this
, 1988.
day
Mayor, city of San Bernardino
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BORROWER:
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CITY OF SAN BERNARDINO
COMMUNITY DEVELOPMENT DEPARTMENT
"Economic Development Program"
(IDB Fee-Pinanced)
Ready Equipment Sales and Rentals, Inc.
PROJECT TITLE: Facilities and Product Line Expansion
PROJECT ADDRESS: 3969 North Sierra Way
San Bernardino, CA 92404
LOAN IS NUMBER
CONTRACTS.
OF COMMUNITY DEVELOPMENT
KJH/lab/0256
8-9-89
EXHIBIT "1"
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Section
Number
SECTION I
S101.
S102.
S103.
S104.
S105.
SECTION II
S201.
5202.
S203.
S204.
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TABLE OF
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1'i tle
PARTIES, TERM, CONDITIONS PRECEDENT
AND INDEPENDENT STATUS
Parties to the Aqreement
Representatives of the Parties and
Service of Notices
Term of this Agreement
Conditions Precedent
Independent Contractor Status of
the Borrower
PURPOSE OF AGREEMENT AND LOAN, LOAN
TERMS, AND PROMISSORY NOTE
Purpose of the Agreement
Purpose of the Loan
Terms of the Loan
Promissory Note
SECTION III REPRESENTATIONS AND COVENANTS OF
BORROWER, AND DEFAULT
S301.
S302.
S303.
Representations of the Borrower
Covenants of the Borrower
Default
S401.
SECTION IV REPORTS, RECORDS AND AUDITS
S402.
S403.
S404.
Reportinq Requirements
Maintenance of Records
AUdits and Inspections
validity of Financial Documentation
SUbmissions
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5ection
NUmber
5405.
5406.
SECTION V
8501.
5502.
5503.
5504.
5505.
5506.
5507.
5508.
5509.
5510.
5511.
5512.
5513.
5514.
5515.
S516.
8517.
8518.
5519.
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TABLE or CONTEQ cconO..)
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Title
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Release of Funds from Escrow
11
Reconveyance Fe.
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GENERAL TERMS AND CONDITIONS
Indemnification and Insurance
Requirements
Prohibition Against Assignment
Limitation of Corporate Acts
Amendments and Waivers
12
13
13
14
14
Compliance with statutes and
Regulations
Conflict of Interest
14
16
16
16
Political Activity Prohibited
Lobbying Prohibited
Installation of Financial Assistance
Sign
Press Releases
16
Discrimination Prohibited
16
Nondiscrimination, Equal Employment 17
Practices, and Affirmative Action Plan
Employment Opportunities for Business 17
and Lower Income Persons
Participation of Minorities, Women and 18
Small Businesses
Captions 18
Effect of Legal JUdgment 18
Choice of Law Governing this Agreement 19
Prohibition of Legal Proceedings 19
Rights and Remedies 19
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Oction
NUmber
SECTION VI
S601.
S602.
KJH/lab/0257
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TAB~}OF CONTENTS
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(Cont... )
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Title
ENTIRE AGREEMENT
Complete Agreement
Number of Page. and Attachment.
Execution (Signature) Page
ATTACHMENTS
Attachment I -- Employment Action Plan
Attachment II -- Insurance Requirements
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AGREEMENT QBER 0
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BETWEEN THE CITY OF SAN BERNARDINO AND THE Ready Equipment Sales
and Rentals. Inc. (RELATING TO) THE
'acilitiel and Product Line Expansion PROJECT
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THIS
City of San
"City", and
hereinafter
AGREEMENT is made and entered into by and between the
Bernardino, a municipal corporation, hereinafter call
READv EQIJIPMF.NT SAT F.~ Awn RF.)lTAl ~ I TN~
called the "Borrower".
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WHEREAS, the City has entered into a Grant Agreement with
the United States Department of Housing and Urban Development,
hereinafter called the Grantor, pursuant to Title I of the Housing
and Community Development Act of 1974, as amended, hereinafter
referred to as HCDBG, to address the community development needs of
the City: and
WHEREAS, the Community Development Department, hereinafter
called the "CDD", has been designated by the City to provide for
proper planning, coordination and administration of the City's
programs as described in the City's Grant Agreement with the
Grantor, and of certain projects funded by the City: and
WHEREAS, the CDD cooperates with private individuals and
organizations, other agencies of the City and agencies of other
governmental jurisdictions in carrying out certain functions and
programs which are its responsibility; and
WHEREAS, the Small Business Revolving Loan Fund program has
been established by the City as part of a City of San Bernardino
Economic Development Program ("EDP"), and has been approved by the
San Bernardino Mayor and Common Council; and
WHEREAS, the project which is the subject of this agreement
meets the requirements of the above described program: and
WHEREAS, Borrower has applied to the City for a loan to help
finance the project; and
WHEREAS, the City is Willing to lend monies to the Borrower
on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of and in reliance upon the
foregoing and upon the covenants, agreements, representations and
warranties herein contained, the City and the Borrower agree as
follows:
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SECTION I.
PARTIES. TERM. CONDITIONS PRECEDENT. AND INDEPENDENT STATUS
SlOl. Parties to the Aareement.
The partie. to thb Aqr..ment are:
1.
The City of San Bernardino, a municipal corporation,
havinq its principal office at 300 North "D" Street,
Bernardino, California 92418.
Mr. Donald Tuenissen and Mr. Charles R. Piehler
The Borrower, DBA. Ready Equipment sales and Rentals Inc.
having its principal address at 3969 North Sierra Way
San Bernardino, CA 92404
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The Borrower is ( a) California Corporation
(fictitious name enterprise, individual, California
Corporation/qeneral partnership/limited partnership.)
S102. ReDresentatives of the Parties and Service of Notices.
The representatives of the respective parties who are
authorized to administer this Aqreement and to whom formal
notices, demands and communications shall be qiven are as
fOllows:
1. The representative of the City shall be, unless other-
wise stated in the Agreement:
Kenneth J. Henderson, Director
Community Development Department
300 North "D" Street, Fifth Floor
San Bernardino, CA 92418
2. The representative of the Borrower shall be:
D nald H. Tu nissen and Charles R. Piehler
DBA. Ready EqUipment Sales and Renta s, Inc.
3969 North Sierra Way
San Bernardino, CA 92404
3. Formal notices, demands and communications to be qiven
hereunder by either party shall be made in writinq and
may be effected by personal delivery or by registered or
certified mail, postage prepaid, return receipt re-
quested and shall be deemed communicated as of the date
of mailinq.
4. If the name of the person desiqnated to receive the
notices, demands or communications or the address of
such person is chanqed, written notice shall be qiven,
in accord with this section, within five (5) workinq
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days of said change9
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S103. Term of this Aareement.
This Agr....nt shall re.ain in full fore. and .ffect fro.
the date of execution by Borrow.r of the Promissory Note,
until such time as said pro.issory Note is paid acCording to
its terms, subj.ct to the provisions of S303 herein.
S104. Conditions Pr.cedent:,
A. Prior to the execution of this Agreement, the Borrower shall
submit to the City for approval in writing an Affirmative
Action Program Plan in accordance with Section 512 herein.
B. In the event that Borrower is a corporation, then prior to
the execution of this Agreement, the Borrower shall provide
the City with copies of the following docuaents:
1. Borrower's Articles of Incorporation, and all amendments
thereto, as filed with the Secretary of State.
2. Borrower's By-Laws, and all amendments thereto, as
adopted by the Borrower and properly attested.
3. ReSOlutions or other corporate actions of the Borrower's
Board of Directors, properly attested or certified,
which specify the nameCs) of the person(s) authorized to
obligate the Borrower and execute contractual documents.
4. Certificate of Good Standing from California Secretary
of State.
C. In the event that Borrower is a partnership, then prior to
the execution of this Agreement, the Borrower shall provide
the City with copies of the Borrower's Partnership Agree-
ment, and evidence of filing thereof with appropriate filing
official. .
D. In the event the Borrower is an individual doing business
under fictitious name, a copy of the Fictitious Name State-
ment and evidence of the proper filing thereof.
S105. Indenendent Contractor status of the Borrower.
The parties agree that the Borrower is an independent
contractor and that no employees of the Borrower have been,
are, or shall be employees of the City by virtue of this
Agreement, and the Borrower shall so inform each employee
organization and each employee who is hired or retained by
it.
SECTION II.
PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROMISSORY NOTE
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PurDose of the Aareement.
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~~d Pn~~~cf:~- ~:- -~~~~- :~?:_~~~~~: _ ~~_ _:~ _ ~:_~~ ~~~__~~ ~:~ _ :~~~s~~ lars
($ 50,000.00 ) of EDP funds to be loaned by the City to the
Borrower, hereinafter called the "Loan", for the purpose and
under the terms and conditions set forth herein.
5202. Pumos. ot the Loan.
The purpose of the Loan is to provide financial assistance
to enable the Borrower to:
1. Land and Building Improvements: $15,000.00
2. Off-site Improvements: $35,000.00
$50,000.00
S203. Terms ot the Loan.
A. The City aqrees to lend the Borrower, and the Borrower
aqrees to borrow trom the City, an amount not to exceed
Fifty Thousand and no/l00----------------_~~-~LrJURS, ($ 50,000.00),
such transaction hereinatter referred to as the "Loan". The
Loan is to be evidenced by, and made aqainst delivery of a
Promissory Note executed by the Borrower, hereinafter called
the "Note" and by this reference incorporated herein.
B. The Note shall (a) be dated as of the closinq, (b) bear
interest on the unpaid principal at the rate of Ei,ht percent
( 8% ) per annum, (c) be for a term of seven (7 )
years, and (d) provide for payment of the principal amount
thereof and the interest thereon in eighty-four
( 84) equal monthly installments of seven hundred spvent&,nlne
and.31/100------______________________________________________ LIJURS
($ 779.31 ), each includinq principal and interest, and
continuinq until said principal and interest are paid in
full.
c. Each monthly installment shall be applied first to the
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payment of interest thQ accrug to the date the payment 1.
received, and the balance, if any, to the reduction of the
principal.
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S204.
PromissorY Note.
A.
The obligation of the City to make the Loan is subject to
receipt by the City of the Note and, at the City's sole
discretion, to the following additional conditions
precedent:
1. The representations and warranties made herein by the
Borrower shall be true and correct at the time of
consideration by the Mayor and Common Council of the
City of San Bernardino with the same effect as though
made at the Closing.
2. Receipt by the City from the Borrower of all executed
documents in connection with this Agreement; satiSfac-
tory in form and substance to the City.
3. If matching funds constitute a part of this Agreement,
then Borrower shall obtain matching funds in an amount
equal to the amount of this loan and, as required by the
City, deposit said matching funds into an account with
N/A Escrow Agency.
4. The City and the Borrower have mutually agreed to the
terms and conditions as set forth in the Employment
Action Plan, which is attached hereto as Attachment I
and by this reference is incorporated herein.
B. The Note is to be secured as follows:
Real Estate located at 1990 Washington Street, Colton, CA 92324,
which currently has an appropriate value of $500,000.00.
C. Borrower shall have the right, without penalty, to prepay
the Note together with the accrued interest thereon as of
the date of such prepayment.
D. The Borrower acknowledges and agrees that the amount being
provided under this loan shall be for a total of
Fifty Thousand---------------u_____DOLLARS, ($ 50,000.00 ), and
that no additional funds to cover additional projects costs,
anticipated or unanticipated, incurred as a result of cost
overruns or expenses in financing this project, are
available under this Agreement.
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SEOON III.
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REPRESENTATIONS AND COVENANTS OF BORROWER. AND DEFAULT
S301. ReDresentations of the Borrower.
To induce City to enter into this Agreement, Borrower
covenants and represents to City that:
1. The execution, delivery and pertonance ot the Note and
this Agreement by Borrower have been duly authorized by
Borrower. This Agreement constitutes a legal, valid and
binding obligation of Borrower, enforceable in
accordance with its terms. The execution and delivery
of this Agreement and the note, and consummation of the
transactions herein contemplated, will not conflict
with, or result in a breach of, any of the terms,
provisions or conditions of any indenture, contract,
instrument or agreement, including any partnership
agreement, to which Borrower or any of its officers is a
party. No approval, consent or authorization ot any
governmental authority is necessary for the execution,
delivery or performance by the Borrower of this
Agreement or of any of the terms and conditions.
2. Borrower has good and marketable title to the real
property identified in S204B ot this Agreement, located
at 1990 Washin ton Street, Colton, CA 92324 ,
San Bernard no, Cal forn a, and t s free and clear
from all liens except as set forth
herein: None
.
3. Borrower is in compliance with all applicable statutes,
laws, regulations, and executive orders ot the United
States of America and all states, foreign countries,
other governmental bodies and agencies having
jurisdiction over its business or properties, including
(without limitation) all tax laws and Borrower has not
received notice ot any violation of such statutes, laws,
regulations or orders which have not been remedied prior
to the date ot this Agreement. Borrower possesses all
licenses, tradenames, trademarks, and permits as are
required for conduct ot its business without conflict
with the rights of others.
D. There is not pending or threatened against Borrower, or any
of its officers, any actions, suits, proceedings or investi-
gations at law or in equity or before or by any Federal,
state, municipal or governmental department, commission,
board, bureau, agency or instrumentality which, if deter-
mined adversely, would be likely to have a materially
adverse effect on the business or properties of Borrower.
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() Each and every financia~tatem~, document and record c:>
delivered by Borrower to the City in connection with this
Agreement and the proposed transaction hereunder is a true
and complete copy of .aid financial state.ent, docu.ent or
record, and fairly and accurately reflects the information
it purports to portray. There has been no change in the
condition, financial or otherwise, of Borrower as shown in
the financial .tatements dated December 31 1988 ,
except change. in the ordinary course of baaine.s, none of
which, individually or in the aggregate, has been materially
adverse.
S302. Additional Covenants of the Borrower.
Borrower Covenants and agrees that, from the date hereof,
until payment in full on the Note and the interest thereon,
that it will:
1. Pay the principal and interest on the Note according to
its terms.
2. Pay any other amounts that may be due or become due and
owing to the City under or pursuant to the terms of this
Agreement or the Note.
3. Execute and deliver all instruments, and perform such
acts, as the City may reasonably deem necessary or
desireable to confirm and secure to the City all rights
and remedies conferred upon the City by the terms of
this Agreement and Note.
4. In the event that Borrower shall grant the City a se-
curity interest in Real Property as collateral under
S204B herein, then Borrower agrees to maintain at
Borrower's sole expense a policy of title insurance
coverage equal to the amount of the loan.
5. Give notice to the City of any event that constitute. an
Event of Default as set forth in Section 303 of this
Agreement or that would, with notice, or lapse of time
or both, constitute an Event of Default under this
Agreement. Notice shall specify the nature of such
Event of Default.
6. Not enter into any agreement or other commitment the
performance of which would constitute a breach of any of
the covenants contained in this Agreement.
7. Use the Loan proceeds only for the purposes stated in
this Agreement and for no other purpose or purposes.
a. Observe all applicable federal, state and local statutes
and regulations as well as City of San Bernardino
ordinances as further defined and set forth in Section
505 of this Agreement.
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9. In the event that Borrower is a corporation, then
Borrower shall do or cau.e to be done all thinq. neces-
sary to preserve and keep in full force and .ffect it.
corporate existence, rights and franchise..
10. Not violate any laws, ordinances, governmental rules or
requlations to which it i. .ubject and not fail to
obtain any licen..., perait., franchi... or other
governmental authorization nece..ary to conduct it.
business, which violation or failure to obtain might
have a material adverse effect on the business, pro-
spects, profits or condition (financial or otherwise) of
Borrower.
11. Submit an Annual Employment Report on or before the
fifteenth (15th) day of June for the year(.)
1990 . The Annual Employment Report shall
detail Borrower's compliance with the Employment Action
Plan, Attachment I attached hereto and by thi. reference
incorporated herein, for the preceding twelve (12) month
period.
12. Maintain adequate insurance with respect to the col-
lateral and the (proprietorship, partnership or cor-
porate) business which is the subject of this Agreement,
with reputable insurance companies. The Borrower shall
maintain insurance in such amounts and against such
risks as is customary with companies in the same or
similar business; in addition, said insurance
coverage(s) shall be in accordance with the general
insurance provisions of this Agreement as specified in
S501B.5, inclUding fire, hazard and general
comprehensive liability insuranc., worker'.
compensation, construction/rehabilitation liability, to
protect such business and all property securing the
City's loan. Said insurance shall be maintained
throughout the term of this loan: The City shall be
named as an additional insured, and the policy or
POlicies shall not be subject to cancellation, reduction
or nonrenewal without thirty (30) days prior written
notification to the City Attorney by certified mail.
13. Pay all indebteness and obligations promptly in accord-
ance with normal terms and promptly pay and discharge or
cause to paid and discharged all taxes, assessments and
governmental charges or levies imposed upon it or upon
its income and profits or upon any of its property,
real, personal or mixed, or upon any part thereof,
respectively, before the same shall become in default.
S303. Default.
A. The entire unpaid principal of the Note, and interest then
accrued thereon, shall become and be forthwith due and
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payable upon written d~nd bY~e City or the City'.
assign., without any other notice or demand of any kind or
any presentment or prote.t, if anyone of the following
event. (herein called an "Event of Default") shall occur and
be continuing at the time of such demand, whether volun-
tarily or involuntarily, or, without limitation, occurring
or brought about by operation of law or pursuant to or in
compliance with any jUdgaent, decree or order of any court
of any order, rule or regulation or any govern.ental body,
provided however that such sum shall not be payable if
Borrower's payments have been expre.sly extended by the City
or the City'S assigns. "Event. of Default" shall include:
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1. Payment of any installment of principal or interest on
the Note is not paid when due and such payment remains
unpaid for thirty (30) days.
2. Borrower fails to pay when due, or declared due, the
obligations secured under this Agreement.
3. Borrower fails to perform or comply with any term.,
conditions, or covenants as provided in this Agreement
or in any instruments securing or related to this
Agreement.
4. If any representation or warranty made by the Borrower
in this Agreement shall prove to be untrue in any
material respect, or if any report, financial statement
or financial schedule or other instrument delivered
under or pursuant to this Agreement or the transactions
contemplated herein, to the City or to any other holder
of the Note shall prove to be untrue in any material
respect as of the date as of which made.
5. A court enters a decree or order for relief in respect
of the Borrower in an involuntary case under any appli-
cable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appoints' a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar
official) of the Borrower or for any substantial part of
its property, or orders the Winding up or liquidation of
its affairs and such decree or order remains unstayed
and in effect for a period of sixty (60) consecutive
days.
6. The occurrence (i) of Borrower's becoming insolvent or
bankrupt, or ceasing, being unable, or admitting in
writing its inability to pay its debts as they mature,
or making a general assignment for the benefit of, or
entering into any composition or arrangement with
creditors: (ii) of proceedings for the appointment of a
receiver, trustee or liquidator of Debtor, or of a
substantial part of its assets, being authorized or
instituted by or against it: or (iii) of proceedings
under any bankruptcy, reorganization, readjUstment of
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debt, insolvency, ~.Olut~, liquidation or other
similar law of any jurisdiction being authorized or
instituted by or against the Borrower.
7. A cessation or substantial reduction of operations in
the business which is the subject of this Agreement
under circumstances indicative to the City of a lack of
intention or ability to provide continuing ..ployment
and economic benefit. for the area in which the business
is located.
8. Failure to submit the Annual Employment Report referred
to in S302(12) within ninety (90) days of the scheduled
due date for said Report.
9. The loss, theft, substantial damage, destruction,
abandonment, sale or encumbrance to or of any of the
collateral securing payment of the Note, in any manner
not fully covered by insurance, or the making of any
levy, seizure or attachment thereof or thereon.
B. If Borrower shall at any time default in making any payment
of principal or interest on the Note, Borrower shall to the
full extent permitted by law, pay to the City or other
holder of the Note, in addition to any other amounts that
may be due from Borrower to such holder, an amount equal to
the reasonable costs and expenses incurred by such holder,
in its efforts to protect its collateral, secure payment,
or otherwise defend its interests hereunder in any judicial
or administrative proceeding.
SECTION IV.
REPORTS. RECORDS AND AUDITS
S401. ReDortina Reauirements.
A. At such times and in such forms as the City may require,
there shall be furnished to the City such statements,
records, reports, data and information as the City may
request pertaining to matters covered by this Agreement.
B. Borrower will provide its financial and accounting
statements to the City for the period ending
December 31. 1989 and annually thereafter during term of
this Agreement, but not later than three (3) months
following the expiration of any such period, and at each
other time and in such form as the City may prescribe.
S402. Maintenance of Records.
A. Records, in their original form, shall be maintained in
accordance with the requirements prescribed by the Grantor
and the City with respect to all matters covered by this
Agreement. Such records shall be retained for a period of
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six (6) years after te~atio~f this Agreement and afte~
all other pending matters are closed. "Pending Matters" in-
clude, but are not limited to, an audit, litigation, or
other actions inVOlving record.. The City ..y, at it.
discretion, take poss.ssion of and r.tain said r.cords.
B. Records in their original form p.rtaining to matters cover.d
by this Agr....nt shall at all tim.s be retained within the
City of San Bernardino, or some other location specifically
authorizing in writing by the Dir.ctor of Comaunity
Development, unless authorization to remove them is granted
in writing by the City.
S403. Audits and Ins~ections.
A. At any time during normal business hours and as often as the
Grantor, the U.S. Comptroller General, AUditor General of
the Stat. of California or the City may deem necessary, the
Borrower shall make available to the City for .xamination,
all of its records with resp.ct to all matt.rs covered by
this Agreement. The City, Auditor General of the Stat. of
california, Grantor, and the U.S. Comptroll.r General shall
have the authority to audit, examine and make exc.rpts or
transcripts from records, inclUding all contracts, invoices,
materials, payrolls, records of personnel, conditions of
employment and other data r.lating to all matters covered by
this Agreement.
B. The City shall have tha authority to make physical inspec-
tions and to require such physical safeguarding devices as
locks, alarms, safes, fire .xtinguishers, sprinkler system,
etc., to safeguard property and/or equipment funded or
secured by this Agreement. NotWithstanding such inspection
authority, Borrower is soley responsible for the provision
of security and for the safe guarding of the business and
its property.
S404, Validitv of Financial Documentation Submissions.
Financial reports required to be prepared and submitted by
the Borrower to the City shall be accurate and correct in
all respects.
S405. Release of Funds from Escrow.
A. All loan proceeds shall be deposited into an escrow account
with an escrow company designated by the City. DiSbursement
of funds shall be jointly authorized by the Borrower and the
City. Each disbursement shall be in accordance with S202
"Purpose of the Loan" and shall be properly supported by
inVOices, vouchers, executed payrolls, time records or other
documentation evidencing an expenditure and/or encumbrance
of funds.
8. The costs associated with the loan such as escrow fees,
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~ credit reports (TRW), Tftle Re~ts, or other si.ilar costs
shall be delineated in the escrow instruction. and di.bur.ed
from the loan proceeds upon opening of the escrow account.
S406. Reconvevance Fee
In the event that real property i. used to .ecure this Loan,
then Borrower agree. to pay any co.t. incident to title
reconveyance, including, if applicable, trustee'. fee.,
attorney fee., docuaent preparation fee., recording fees or
any other related expenses.
SECTION V.
GENERAL TERMS AND CONDITIONS
S50l. Indemnification and Insurance Reauirements.
A. Indemnification:
The Borrower undertake. and agrees to defend, indemnify and
hold harmless the City and any and all of the City'.
officer., agent., employee., assign., and .uccessor. in
interest from and against all suit. and cause. of action,
claims, cost of litigation, damage or liability of any
nature whatsoever, for death or injury to any person,
inclUding Borrower's employees and agents, or da.age or
destruction to any property of either party hereto or third
persons in any manner arising by reason of or incident to
the performance of this Agreement on the part of the
Borrower or sub borrower of any tier whether or not
contributed to by any act or omission, active or passive,
negligent or otherwise, except for the sole negligence of
the City, or the sole negligence of any of the City's
Officers, agents or employees. City approval of the
Borrower's performance, or failure to object, shall be no
defense to Borrower concerning its undertaking herein to
defend and indemnify City and others~
B. Insurance:
1. The Borrower .hall provide and maintain at its own
expense throughout the term of this agreement the
insurance requirements specified herein. Evidence of
insurance shall be submitted for approval by the City.
The City special endorsement forms, referenced hereto
and incorporated by reference, are the preferred form of
evidence of insurance. Alternatively, Borrower may
submit two (2) certified copies of the full policy
containing the appropriate cancellation notice language
and additional insured/loss payee language as specified.
2. No release of funds from the Escrow Account shall be
made to the Borrower until such time as the Borrower has
complied with all insurance and bonding requirements
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Endorsement form, or a form approved by the City,
stating that the Borrower is so insured, must accompany
any demand for funds unless said form has been pre
viously submitted and approved by the city. (Certifica
tion of insurance shall be procured, filed and approved
in strict compliance with City rules and regulations.)
3. With respect to the interest. of the City, such in
surance shall not be cancelled, reduced in coverage or
limited or non-renewed, except after thirty (30) days
written notice by receipted delivery has been given to
the Office of the City Attorney, City Hall, 300 North
"0" Street, San Bernardino, CA 92418. Policies of
insurance and fidelity bonds, except for policies
covering Worker's Compensation and Employees' and
Volunteer's Owned and/or Leased Vehicles, shall name the
city as an Additional Insured and said endorsements or
other evidence of insurance shall so indicate. Fidelity
bonds shall name the City as loss payee or additional
insured. In the event of any cancellation, non-renewal,
reduction or limitation of coverage, or notice that such
will be effected, City may, but is not required to,
obtain insurance to protect its interests, in which
event the cost thereof shall be reimbursed by Borrower
forthwith. Any failure to forthwith reimburse such
expense shall constitute an Event of Default. Borrower
shall also provide to City a list of all other addi-
tional named insureds under the same policy of insur-
ance.
4. The City reserves the right at any time during the term
of this Agreement to change the amounts and types of
insurance required hereunder by giving Borrower ninety
(90) days written notice.
5. The Borrower shall maintain minimum insurance coverages
prescribed in Attachment II of this Agreement, which by
this reference is incorporated herein.
S502. Prohibition Aaainst Assianment.
A. The Borrower shall not assign this Agreement, nor assign or
transfer any interest or obligation in this Agreement
(whether by assignment or novation) without prior written
consent of the city. No part of the property securing this
Agreement shall be assigned or transferred (except sales of
inventory in the ordinary course of business), nor shall
such property be pledged, without the prior written consent
of City.
B. The Borrower shall not enter into any agreement with any
other party under which such other party shall become the
recipient of claims due or to become due to the Borrower
from the City without prior written consent of the city.
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S503.
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Limitation of CorDorate Acts.
In the event that Borrower is a corporation then the
Borrower shall not amend its Articles of Incorporation or
Bylaws, move to dissolve, transfer any assets derived from
funds provided under this Agreement, or take any other steps
which may materially affect its operations within the
performance of this Agreement without first notifying the
City in writing. The Borrower shall notify the City
immediately in writing of any change in the Borrower's
corporate name.
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S504. Amendments and Waivers.
This Agreement may not be changed or amended orally, and no
waiver hereunder may be oral, but any change or amendment
hereto or any waiver hereunder must be in writing and signed
by the party or parties against whom such change, amendment,
or waiver is sought to be enforced.
S505. ComDliance with Statutes and Reaulations.
A. The Borrower warrants and certifies that in the performance
of this Agreement, it shall comply with all applicable
statutes, rules, regulations and orders of the United
States, the State of California, the County and City of San
Bernardino including laws and regulations pertaining to
labor, wages, hours and other conditions of employment and
the City's anti discrimination provisions and Affirmative
Action Plan which by this reference is incorporated herein.
Borrower further warrants and certifies that it shall comply
with new, amended, or revised laws, regulations, and/or
procedures that apply to the performance of this Agreement,
upon being provided notice thereof.
Borrower covenants that the Davis-Bacon Act as amended, the
Contract Work Hours and Safety Standards Act, and the
Copeland "Anti-Kickback Act" shall be a part of all con
struction contracts awarded by the Borrower pursuant to this
Agreement and all sub contracts thereto.
S506, Conflict of Interest.
A, The Borrower covenants that none of its directors, officers,
employees, or agents shall participate in selecting sub
contractors, or administering subcontracts supported (in
whole or in part) by Federal funds where such person is a
director, officer, employee or agent of the subcontractor,
or where such person knows or should have known that:
1. A member of such person's immediate family, or partner,
or organization has a financial interest in the sub
contract;
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The subcontractor i~someo~with whom such person has c:>
negotiated or is negotiating any prospective employment;
or
3. The participation of such persons would be prohibited by
the California Political Reform Act, California
Government Code Section 87100 et seq., if such person
were a public officer, because such person would have a
"financial or other interest" in the subcontract.
B. Definitions:
1. The term "immediate family" includes, but is not limited
to, those persons related by blood or marriage, such as
husband, wife, father, mother, brother, sister, son,
daughter, father-in-law, motherin-law, brother-in-law,
son-in-law and daughter-in-law.
2. The term "financial or other interest" includes, but is
not limited to:
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a. Any direct or indirect financial interest in the
specific contract, including a commission or fee, a
share of the proceeds, prospect of a promotion or
future employment, a profit, or any other form of
financial reward.
b. Any of the following interests in the sUbcontracting
entity: partnership interest or other beneficial
interest of five percent (5t) or more of the stock;
employment in a managerial capacity; or membership on
the board of directors or governing body. This
provision shall not apply to serving on the board or
governing body of a non-profit corporation for which
no salary is paid or other compensation.
C. The Borrower further covenants that no officer, director,
employee or agent shall solicit or accept gratuities,
favors, or anything of monetary value, from an actual or
Potential subcontractor, supplier, a party to a sub
agreement, (or persons who are otherwise in a position to
benefit from the actions of any officer, employee or agent).
D. The Borrower shall not subcontract with a former director,
officer, or employee within a one (1) year period following
the termination of the relationship between said person and
the Borrower.
E, Prior to obtaining the City's approval of any subcontract,
the Borrower shall disclose to the City any relationship,
financial or otherwise, direct or indirect, of the Borrower
or any of its officers, directors or employees of their
immediate family with the proposed subcontractor and its
officers, directors or employees.
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For further c1arificati~ of t~meaning of any of the terms
used herein, the parties agree that references shall be made
to the gUidelines, rules and laws of the City of San Bernar
dino, State of California, and Federal regulation regarding
conflict of interest.
G. The Borrower warrants that it has not paid or given and will
not payor give to any third person any money or other
consideration tor obtaining this Agreement.
H. The Borrower Covenants that no member, officer, employee of
Borrower shall have any interest, direct or indirect, in any
contract or subcontract of the proceeds thereof for work to
be performed in connection with this project during hiS/her
tenure as such employee, member or officer or for one (1)
year thereafter.
I. The Borrower shall incorporate the foregoing subsections of
this section into every agreement that it enters into in
connection with this project and shall substitute the term
"subcontractor" for the term "Borrower" and "Sub-contractor"
for "Subcontractor".
5507. Political Activitv Prohibited.
None of the funds, materials, property or services provided
directly or indirectly under this Agreement shall be used
for any partisan political activity, or to further the
election or defeat of any candidate for pUblic office.
S508. Lobbvina Prohibited.
None of the funds provided under this Agreement shall be
used for any purpose designed to support or defeat any
pending legislation or administrative regulation.
S509. Installation of Financial Assistance Plan.
The Borrower shall install, or cause to be installed, for
public display upon the project premises a sign, with design
approved by City, identifying the Borrower as receiving
financial assistance from the City, if such a sign is
requested by the Director of Community Development Depart
ment.
S510. Press Releases.
In all communications with the press, television, radio or
any other means of communicating with the general community,
the Borrower shall make specific reference to the City of
San Bernardino Community Development Department as the
sponsoring agency of the project.
S5l1. Discrimination Prohibited.
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No person aha 1'; on the~ounds~f race, religion, ancestry~
color, national origin, sex, age, or physical handicap, be
excluded from participation in, be denied the benetit ot, or
be subjected to discrimination under this program /project.
For purposes of this Section, title 24, Code ot Federal
Regulations Section 570.601(b) defines specific
discriminatory actions which are prohibited and correction
action which shall be taken in situations as defined
therein.
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5512. Nondiscrimination. Eaual EmDlovment Practices and Atfirma
tive Action Proaram.
The Borrower shall comply with the nondiscrimination and
affirmative action provisions of the laws of the United
States of America, the state of california, and the City. In
performing this Agreement, the Borrower shall not dis
criminate in its employment practices against any employee,
or applicant for employment because of person's race,
religion, ancestry, color, national origin, sex, age or
physical handicap. Any subcontract entered into by the
Borrower relating to this Agreement, to the extent allowed
hereunder, shall be subject to the provisions of this
paragraph.
S513. EmDlovment ODDortunities for Business and Lower Income
Persons.
Any project/program funded in part or in whole with Com-
munity Development funds shall comply with the following,
provisions (referred to as a Section 3 clause:)
1. The work to be performed under this contract (Agreement)
is on a project assisted under a program providing
direct Federal financing assistance from the Department
of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 use 1701u.
Section 3 requires that to the greatest extent feasible
oPportunities for training and employment be given to
lower income residents of the project area and contracts
(Agreements) for work in connection with the project be
awarded to business concerns which are located in, or
owned in substantial part by persons residing in the
area of the project.
2. The parties to this contract (Agreement) will comply
with the provisions of said Section 3 and the regula
tions issued pursuant thereto by the Secretary of
Housing and Urban Development set forth in Title 24 CFR,
Part 135, and all applicable rules and orders of the
Department issued thereunder prior to the execution of
this contract (Agreement) certify and agree that they
are under no contractual or other disability which would
prevent them from complying with these requirements.
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3. The Borrower will send to each labor organization or
representative of wor~ers with which he has a collective
bargaining agreement or other contract or understanding,
if any, a notice advising the said labor organization or
Worker's representative of its commitments under this
Section 3 clause and shall post copies of the not~ce in
conspicuous places available to employe.s and applicants
for employment and training.
4. The Borrower will include this Section 3 clause in every
subcontract, for work in connection with the project and
will, at the direction of the applicant for or recipient
of Federal financial assistance, take appropriate action
pursuant to the subcontract upon a finding that the
subcontractor is in violation of regulations issued by
the Secretary of Housing and Urban Development, 24 CFR,
Part 135. The Borrower will not subcontract with any
subcontractor where it has notice of knowledge that the
latter has been found in violation of regulations under
Title 24, CFR 135 and will not let any subcontract
unless the subcontractor has first provided it with a
preliminary statement of ability to comply with the
requirements of these regulations.
5. Compliance with the provisions of Section 3, the regu
lations set forth in Title 24 CFR, Part 135, and all
applicable rules and order of the Department issued
thereunder prior to the execution of the contract
(Agreement), shall be a condition of the Federal finan
cial assistance provided to the project, binding upon
the applicant or recipient for such assistance, its
successors, and assigns. Failure to fulfill these
requirements shall subject the applicant or recipient,
its Contractors and subcontractors, its SUccessors and
assigns to those sanctions specified by the grant or
loan agreement or contract through which Federal assis
tance is provided, and to such sanctions as are spec
ified by Title 24 CFR, Part 135.
5514. ParticiDation of Minorities. Women and Small Businesses.
To the fullest extent possible in the administration of this
Agreement, Borrower agrees to provide opportunities for
minorities, Women and small businesses to participate in
procurements under this Agreement.
S515. CaDtions.
The section headings appearing herein shall not be deemed to
govern, limit, modify or in any way affect the scope,
meaning or intent of these conditions.
S516. Effect of Leqal Judoment.
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Should any covenant, c~ition~ provision herein contai~
be held to be invalid by final jUdgment in any court of
competent jurisdiction, the invalidity of such covenant,
condition or provision shall not in any way affect any other
covenant, condition or provision herein contained.
5517.
Choice of Law Governing this Aareement.
This Agreement shall be qoverned by ancl construed in accor
dance with the laws of the state of California.
5518. Prohibition of Leaal Proceedinas.
The Borrower is prohibited from using Grant funds received
under this Agreement, or funds realized as a result of this
Agreement, for the purpose of instituting legal proceedings
against the City or its official representative.
5519. Riahts and Remedies.
In the event any party fails to perform, in whole or in
part, any promise, covenant, or agreement heren, or should
any representation made by it be untrue, any aggrieved party
may avail itself to all rights and remedies, at law or
equity, in the courts of law. 5aid rights and remedies are
in addition to those provided for herein.
SECTION VI.
ENTIRE AGREEMENT.
5601. Comclete Aareement.
This Agreement contains the full and complete Agreement
between the two parties. No verbal agreement or conversa
tion with any officer or employee of either party shall
effect or modify any ot the terms and conditions of this
Agreement.
S602. Number of Paaes and Attachments.
This Agreement is executed in three (3) duplicate originals,
each of which is deemed to be an original. This Agreement
includes, Twenty (..1Q..) pages and
Two (-1-) attachments which
constitute the entire understanding and agreement of the
parties.
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(j IN WITNESS WHEREOF, the~ty
Borrower have caused this Agreement
authorized representatives on this
,19_.
ATTEST:
City Clerk
Approved as to form
and legal content:
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o~an Bernardino
to be executed by
day of
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and thee
their duly
CITY OF SAN BERNARDINO
Mayor
(CORPORATION)
BY
Corporate President
ATTEST:
BY
Corporate Secretary
(Witness)
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ATTACHMENT I
"EMPLOYMENT ACTION PLAN"
o
Economic Development Program
Employment Action Plan
Statement of Borrower
Borrower does hereby state that the funds resultinq from
the Loan Agreement entered into on behalf of the City of San
Bernardino (hereinafter "City") and Borrower shall be used
solely for furtherinq the purpose of the Economic Development
proqram (EDP).
The purpose of EDP assistance is to benefit the low and
moderate income residents of the City of San Bernardino
through the creation and/or retention of jobs to said per-
sons. Pursuant to the purpose of the EDP the Borrower agrees
to comply with the following Employment Action Plan:
Borrower understands and aqrees that in order to deter-
mine that said program purpose is beinq met, an Annual
Employment Report shall be filed with the City. Borrower
understands that failure to meet the obj~ctives set forth in
this Employment Action Plan or failure to comply with the
requirements of filing the Annual Employment Report may
result in the entire outstandinq balance of the loan plus
interest, being due upon written demand by the City, pursuant
to Section 302 of the Loan Agreement and this Statement.
XJH/lab/0254
Economic Development Program
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A~NTQI
INSURANCE REQUIREMENTS
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(Instruction. for completing, executing and submitting EVidence of
Insurance to the City of San Bernardino.)
Insur.d:
(Contractor, Le...., permitt.., Borrow.r, Etc.)
Agreement/Reference No.
Date:
A. INSURED
1. To expedite completion of the insurance requirements, please
give your insurance agent or broker a copy of the Insurance
Requirement. Sheet along with these instructions and
endorsement forms.
2. If your agreement requires Workers' Compensation coverage
and you have been authorized by the State of California to
Self-insure Workers' Compensation, then a copy of the
certificate from the State consenting to self-insurance will
meet the evidence requirements.
3. All questions relating to insurance should be directed to
the person or office responsible for your contract, lease,
permit, or other agreement. (See items 9 and 10 below.)
B. INSURANCE AGENT OR BROKER
1. Acceptable Evidence -- The appropriate City Special Endorse-
ments are the preferred form of evidence. No modifications
to the form are permitted. Alternatively, certified copies
of the full policy containing additional insured and thirty
(30) day cancellation notice 1anquaqe will be accepted
subject to review by the City Attorney. Certificates,
Verification., Memoranda of Insurance and other non-binding
documents submitted along are not acceptable as evidence of
insurance. Binders are acceptable as interim evidence until
policies are available.
2. Multiple Policies -- More than one (1) insurance policy may
be required to comply with the insurance requirements.
Endorsement forms appropriate to your insured's agreement,
contract, lease or permit have been provided.
3. Signature -- Please have an authorized representative of the
insurance company manually sign completed endorsement forms.
Signatures must be originals as the City Attorney will not
accept facsimile (rubber stamp, photocopy, etc.) or ini-
tialed signatures.
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ond'<writ.r ~~ Th. ,...<;tnd ..Ji>... .f tho in.ur.neo .....~
underwriting the coverage must be noted on the endorsement
form. In the case of syndicates or subscription POlicies,
indicate lead underwriters or managing agent and attach a
schedule of subscribers, including their percent participa-
tion.
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5. Document Reference -- Include reference to either the
specific City agreement (bid, contract, lease, etc.) or
indicate that all such agreements are covered.
Insurance Requirements:
6. Coverage and Limits -- The coverages and limits for each
type of insurance are specified on the insurance requirement
sheet. When coverage is on a scheduled basis, a separate
sheet may be attached to the endorsement listing such
scheduled locations, vehicles, etc., so covered.
7. Excess Insurance -- Endorsements to excess policies will be
required when primary insurance is insufficient to comply
with the requirements.
8. Additional Pages -- If there is insufficient space on the
reverse side of the form to note pertinent information, such
as inclusions, exclusions or specific prOVisions, etc.,
attach separate sheets and note this on the endorsement
form.
9. Person to Contact -- Completed endorsements, correspondence
and questions relating to the required insurance are to be
directed to the following representatives:
10. Technical Assistance -- Improperly completed endorsements
will be returned to your insured for correction.
11. Delay in submitting properly completed endorsement forms may
delay your insured's intended occupancy or operation.
12. Renewals -- For extensions or renewals of insurance policies
which have the City's endorsement formes) attached, we will
accept a renewal endorsement or a certificate (with an
original Signature) as evidence of continued coverage if it
includes the statement that the insurance protection
afforded the City of San Bernardino has been renewed under
the same terms and conditions as previOUSly approved.
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INSURANCE REQUIREMENTS
(Attachment II)
NAME
AGREEMENT/REFERENCE NUMBER
DATE
The followinq coveraqe. noted with an .X. are required with the
Combined Single Limits (CSL) as noted on the right.
Worker's Compensation
Employers Liability
( ) Broad Form All States Endorsement
e ) Voluntary Compensation Endorsement
e ) Longshoremen's and Harbor Workers'
Compensation Act Endorsement
e )
Limits
Statutory
$ 100.000
General Liability
( ) Premises and Operations
( ) Contractual Liability
e ) Independent Contractors
e ) Products/Completed Operations
e ) Broad Form Property Damage
e ) Personal Injury
( ) Broad Form Liability Endorsement
( ) Fire Leqal Liability
( ) Watercraft Liability
( ) Incidental Medical Malpractice
(if applicable)
( ) Explosion Hazard
( ) Collapse Hazard
( ) Underground Hazard
( ) Garagekeepers Leqal Liability
( ) Hanqar Keeps Legal Liability
( ) OWned Automobiles
( ) Nonowned Automobiles
( ) Hired Automobiles
( )
$1.000.000
Automobile Liability (if auto is used for
this contract.)
Professional Liability (if applicable)
$1.000.000
$ 500.000
Property Insurance
90' value of
building
( ) Extended Coverage
( ) Vandalims and Malicious Mischief
( ) Flood
( ) Earthquake $
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0 ( ) Debris Removal 0 0 '."J
( ) Sprinkler Leakage
( ) Windstorm
( ) Other
Aircraft Liability (bodily injury and
property damage.)
( ) Passenger Liability (per seat) $
Ocean liar in.
$
Ocean Marine Liability
( ) Protection and Indemnity
( ) Running Down Clause
( ) Pollution
( ) Jones Act
( ) Wharfingers Liability
( ) Cargo
( ) Inchmaree Clause
( ) Charter's Legal Liability
( )
S
$
Fire Legal Liability
90t of cost
of reDlace-
ment.
Fidelity Bond
$ 25.000
minimum
I<JH/lab/0255
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