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HomeMy WebLinkAboutresolution.council.042-12 RESOLUTION # (Series of 2012) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND LOCKTON COMPANIES LLC FOR PROCUREMENT OF OWNER CONTROLLED INSURANCE PROGRAM FOR THE 2012 BURLINGAME PHASE IIA ACCESS INFRASTRUCTURE CONSTRUCTION PROJECT AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract for the procurement of Owner Controlled Insurance Program for the 2012 Burlingame Phase IIA access infrastructure construction project, between the City of Aspen and Lockton Companies LLC., a true and accurate copy of which is attached hereto as Exhibit "A"; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves that Contract for the procurement of Owner Controlled Insurance Program for the 2012 Burlingame Phase IIA access infrastructure construction project, between the City of Aspen and Lockton Companies LLC., a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 23rd day of April 2012. Michael C. Ireland a Y or lGl I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held, April 23, 2012. ♦ i/__. s__/ A e Kat fn S. Koch, City Clerk ( VVV4 Li The CO of Ilsiien CITY OF ASPEN STANDARD FORM OF AGREEMENT-2010 cm Attorney's Office PROFESSIONAL SERVICES City of Aspen Project No.: AGREEMENT made as of April 23,2012. BETWEEN the City: Contract Amount: The City of Aspen do Chris Everson Total: $ 8.000 Affordable Housing Project Manager 130 South Galena Street Per proposal attached. Aspen, Colorado 81611 Phone: (970)920-5055 If this Agreement requires the City to pay And the Professional: an amount of money in excess of $25,000.00 it shall not be deemed valid Lockton Companies LLC until it has been approved by the City P Council of the City of Aspen. do Stacy Pocrass 8110 E. Union Avenue, Suite 700 City Council Approval: Denver,CO 80237 Date: /Z-54 17/ 303 414-6174 Resolution No.: la — 90 l� For the Following Project: Burlingame Phase II Civil Infrastructure Construction Services: Procurement of Owner Controlled Insurance Program(OCIP)per coverage shown in included proposal. Exhibits appended and made a part of this Agreement: Exhibit A: Scope of Work/ Proposal Exhibit B: Hourly Fee Schedule The City and Professional agree as set forth below. Agreement for Procurement and Professional Services Page 0 PROFESSIONAL SERVICES 6. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein. 7. Completion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this Agreement shall be completed no later than April 30, 2012. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause,be exceeded by the Professional. 8. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set forth at Exhibit B appended hereto. Except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion, invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 9. Non-Assignability. Both parties recognize that this Agreement is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub-Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors' officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub-contractor. 10. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that such cancellation is in its best,interests and convenience. 11. Termination of Professional Services. The Professional or the City may terminate the Professional Services component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of Agreement for Procurement and Professional Services Page I set-off until such time as the exact amount of damages due the City from the Professional may be determined. 12. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in, or be construed as establishing an employment relationship. Professional shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Professional. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 13. Indemnification. Professional agrees to indemnify and hold harmless the City, its officers, employees, insurers, and self-insurance pool, from and against all liability, claims, and demands, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this contract, if such injury, loss, or damage is caused in whole or in part by, or is claimed to be caused in whole or in part by, the act, omission, error, professional error, mistake, negligence, or other fault of the Professional, any subcontractor of the Professional, or any officer, employee, representative, or agent of the Professional or of any subcontractor of the Professional, or which arises out of any workmen's compensation claim of any employee of the Professional or of any employee of any subcontractor of the Professional. The Professional agrees to investigate, handle, respond to, and to provide defense for and defend against, any such liability, claims or demands at the sole expense of the Professional, or at the option of the City, agrees to pay the City or reimburse the City for the defense costs incurred by the City in connection with, any such liability, claims, or demands. If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault of the City, its officers, or its employees, the City shall reimburse the Professional for the portion of the judgment attributable to such act,omission, or other fault of the City, its officers,or employees. 14. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain Agreement for Procurement and Professional Services Page 2 insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Workers' Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Workers'Compensation requirements of this paragraph. (ii) Commercial General Liability insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interests provision. (iii) Comprehensive Awtomobilc Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate with respect to each Professional's owned, hired and non policy shall contain a severability of interests provision. If the Professional has no owned automobiles, the requirements of this Section shall be met by each employee of the Professional providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000) aggregate. (c) The policy or policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds. Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property Agreement for Procurement and Professional Services Page 3 damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided by the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other form of certificate shall be used. The certificate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty(30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $150,000.00 per person and $600,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 15. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Proper- ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk Management Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or participation in CIRSA. 16. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 17. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed above. 18. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this contract. Agreement for Procurement and Professional Services Page 4 Professional agrees to meet all of the requirements of City's municipal code, Section 13-98, pertaining to non-discrimination in employment. 19. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 20. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary contained herein, this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 16. Illegal Aliens—CRS 8-17.5-101 & 24-76.5-101. (a) Purpose. During the 2006 Colorado legislative session, the Legislature passed House Bills 06-1343 (subsequently amended by HB 07-1073) and 06-1023 that added new statutes relating to the employment of and contracting with illegal aliens. These new laws prohibit all state agencies and political subdivisions, including the City of Aspen, from knowingly hiring an illegal alien to perform work under a contract, or to knowingly contract with a subcontractor who knowingly hires with an illegal alien to perform work under the contract. The new laws also require that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. (b) Definitions. The following terms are defined in the new law and by this reference are incorporated herein and in any contract for services entered into with the City of Aspen. "Basic Pilot Program" means the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is administered by the United States Department of Homeland Security. "Public Contract for Services" means this Agreement. "Services" means the furnishing of labor, time, or effort by a Contractor or a subcontractor not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. (c) By signing this document, Professional certifies and represents that at this time: Agreement for Procurement and Professional Services Page 5 (i) Professional shall confirm the employment eligibility of all employees who are newly hired for employment in the United States; and (ii) Professional has participated or attempted to participate in the Basic Pilot Program in order to verify that new employees are not employ illegal aliens. (d) Professional hereby confirms that: (i) Professional shall not knowingly employ or contract new employees without confirming the employment eligibility of all such employees hired for employment in the United States under the Public Contract for Services. (ii) Professional shall not enter into a contract with a subcontractor that fails to confirm to the Professional that the subcontractor shall not knowingly hire new employees without confirming their employment eligibility for employment in the United States under the Public Contract for Services. (iii) Professional has verified or has attempted to verify through participation in the Federal Basic Pilot Program that Professional does not employ any new employees who are not eligible for employment in the United States; and if Professional has not been accepted into the Federal Basic Pilot Program prior to entering into the Public Contract for Services, Professional shall forthwith apply to participate in the Federal Basic Pilot Program and shall in writing verify such application within five (5) days of the date of the Public Contract. Professional shall continue to apply to participate in the Federal Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Professional is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Federal Basic Pilot Program is discontinued. (iv) Professional shall not use the Basic Pilot Program procedures to undertake pre-employment screening of job applicants while the Public Contract for Services is being performed. (v) If Professional obtains actual knowledge that a subcontractor performing work under the Public Contract for Services knowingly employs or contracts with a new employee who is an illegal alien, Professional shall: (1) Notify such subcontractor and the City of Aspen within three days that Professional has actual knowledge that the subcontractor has newly employed or contracted with an illegal alien; and (2) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the new employee who is an illegal alien; except that Professional shall not terminate the Public Contract for Services with the subcontractor if during such three days the subcontractor provides information to establish that the Agreement for Procurement and Professional Services Page 6 subcontractor has not knowingly employed or contracted with an illegal alien. (vi) Professional shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. (vii) If Professional violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City of Aspen may terminate the Public Contract for Services. If the Public Contract for Services is so terminated, Contractor shall be liable for actual and consequential damages to the City of Aspen arising out of Professional's violation of Subsection 8-17.5-102, C.R.S. (ix) If Professional operates as a sole proprietor, Professional hereby swears or affirms under penalty of perjury that the Professional (1) is a citizen of the United States or otherwise lawfully present in the United States pursuant to federal law, (2) shall comply with the provisions of CRS 24-76.5-101 et seq., and (3) shall produce one of the forms of identification required by CRS 24-76.5-103 prior to the effective date of this Agreement. 21. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. (a) Professional warrants that no person or selling agency has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Professional for the purpose of securing business. (b) Professional agrees not to give any employee of the City a gratuity or any offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. (c) Professional represents that no official, officer, employee or representative of the City during the term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof, except those that may have been disclosed at the time City Council approved the execution of this Agreement. (d) In addition to other remedies it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: Agreement for Procurement and Professional Services Page 7 1. Cancel this Purchase Agreement without any liability by the City; 2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor under City contracts; 3. Deduct from the contract price or consideration, or otherwise recover, the value of anything transferred or received by the Professional; and 4. Recover such value from the offending parties. 22. Fund Availability. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. 23. General Terms. (a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. (b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. (d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. Agreement for Procurement and Professional Services Page 8 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in three copies each of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: PROFESSIONAL: [Signature] [Signature] By: By: [Name] [Name] Title: Title: Date: Date: Approved as to form: City Attorney's Office • 1PW-4/16/2012-6568448-NId city\purchasingATemplates\Procurement&Prof ServVProcurement&Prof Serv.doc Agreement for Procurement and Professional Services Page 9 IN WITNESS WHEREOF,the parties hereto have executed,or caused to be executed by their duly authorized officials, this Agreement in three copies each of which shall be deemed an original on the date first written above. CITY,OF ASP ,COLORADO: PROFESSIONAL: y ` « eV, A. _ . [Signature] [SC,c ] By: By: ��l A / ame] t l [Name] Title: Title: 7lP� Date: Cl" ' Z cc.—/L Date: d� 0 Approved as to form: City Attorney's Office • JPW-4/1 6/2 012-656844 8-M:\city\purchasing\Templates\Procurement&Prof Sery\Procurement&Prof Sery doe Agreement for Procurement and Professional Services Page 9 EXHIBIT A Scope of Work See proposal Agreement for Procurement and Professional Services Page 10 EXHIBIT B Hourly Fee Schedule N/A Agreement for Procurement and Professional Services Page 11 AN INSURANCE PROPOSAL Prepared for City of Aspen for the Burlingame Ranch Phase II Project Lockton Companies thanksyou for the opportunity'to discussyour insurance and risk management program. This summary it a beef overview of that program and is based on the exposure informationyou provided. Please refer to the policies for complete terms, conditions,&imitation definitions,and exclusions. Higher limits may be available upon request. Lockton Companies does not guarantee.or make airy representation in regard to,and expressly-disclaims reponsibib'ljy for,the financial condition of insurance companies with which we place business. Airy rating information contained in this document has been obtained G a third-party rating agent',and we do not represent or warrant its acaracy. Lockton©Companies 8110 East Union Avenue, Suite 700 Denver, CO 80237-2966 Phone(303) 414-6000 it Fax (303) 865-6000 TABLE OF CONTENTS Page Account Management Team 3 Important Issues 4 Acknowledgement 6 Summary of OCIP Quotes 7 Lockton Administration and General Services 8 Commercial General Liability 11 Excess Liability 18 Contractors Environmental Impairment Liability 20 Builders Risk (including Earthquake and Flood) 24 45559_AC'-Gq of Aspen AProposals and Summaries/prop 1412.docn- Gip of Aspen/April 12,21112-2 ACCOUNT MANAGEMENT TEAM • Lockton Companies 8110 East Union Ave.,Suite 700 Denver, CO 80237 Phone(303) 414-6000 W Fax (303) 865-6000 EXECUTIVE VICE PRESIDENT, PRODUCER: Marc Beasley (303) 414-6406 E-mail address: marc.beasley @lockton.com VICE PRESIDENT, OCIP ACCOUNT EXECUTIVE: Stacy Pocrass (303) 414-6174 E-mail address: stacy.pocrass @lockton.com OCIP ACCOUNT MANAGER: Matt Goss (303) 414-6215 E-mail address: matt.goss @lockton.com OCIP ACCOUNT ADMINISTRATOR: Emmy Jennings (303) 414-6483 E-mail address: emmy.jennings @lockton.com OCIP ADMINISTRATOR: Sandy Gibbons (303) 414-6011 E-mail address: sandy.gibbons @lockton.com OCIP ADMINISTRATOR: Diane Gibbons (303) 414-6408 E-mail address: diane.gibbons @lockton.com 48569:'9-c,t),of AspenAProposals and Sumnunes\prop 0113doe. Coy of Aspen/April 12,2012-3 IMPORTANT ISSUES Lockton Companies thanks you for the opportunity to handle your insurance and risk management program. This insurance proposal provides an overview of that program and is based on the exposure information you provided. Please refer to the policies for complete terms,conditions, limitations,definitions,and exclusions. Higher limits may be available upon request. As part of our commitment to you,the following provides a summary of important information you should know: Broker Disclosure Lockton represents you as an insurance broker in soliciting insurance coverage proposals from insurers and placing insurance contracts on your behalf. Lockton may be eligible to receive the following types of compensation as a result of the sale of insurance to you: C. Base commission (may differ depending on the product,insurer,and/or other intermediary) C. Additional compensation based upon other factors,such as premium volume placed with a particular insurer or through a particular intermediary and loss or claims experience C. Interest or investment income on premiums or return premiums temporarily held by Lockton C. Service fees or other compensation from premium finance companies for administrative services provided to, or on behalf of,the premium finance companies relative to the financing of client insurance premiums Communication Any requests that you make to confirm,bind, or alter your insurance program through e-mail,voice mail,or other automated systems will not take effect until you receive written communication from your Lockton representative. Claim Reporting Requirements Changing market conditions have had an adverse effect on many carriers'claim reporting terms and conditions. Many policy forms now include verbiage that severely restricts or negates coverage should a carrier not be immediately notified of a claim or potential claim. Refer to your policies for a more complete explanation of your carrier's reporting requirements. FEMA Flood Zone Information This proposal is based on information regarding the FEMA flood zone determination for your property that is currently available to Lockton. Such determinations are subject to change at any time and Lockton cannot be held responsible for any changes in the flood zone determination reflected herein subsequent to the date of this proposal. State Assessments and Surcharges Your policy may be subject to state assessments and surcharges that may alter your base premium. Although we routinely try to gather this information in the quotation process,it is not always available. 48369:\X--City of Aspen\Proposals and Summaries\prop 0112.docx City of Aspen/April 13,2012-4 IMPORTANT ISSUES Nonadmitted Carriers (Surplus Lines) This is to inform you that some of your policies may have been placed with a nonadmitted carrier. If all or part of your coverage is written through a nonadmitted carrier,it will be so indicated in the individual coverage section. Nonadmitted carriers are neither licensed by nor under the supervision of the state department of insurance. If a nonadmitted carrier becomes insolvent,it is unlikely that the State Guaranty Fund will respond (State Guaranty Funds typically only apply to admitted carriers and provide limited,if any,coverage). For an overview of each state's provisions,go to: http://ncigE org/GF-laws-and-summaries-by-state 48569:AY-City of Aspen Proposals and SummadcsAprop 11412.docc Clp of Aspen/April 12,2012-5 ACKNOWLEDGEMENT Proposal Acknowledgement Please let us know if you have any questions concerning any definitions,terms, conditions, or exclusions contained in this proposal. I have read the proposal and acknowledge that the terms,limits of liability,and exposures are accurate. This proposal must be accepted by May 15,2012,otherwise it may be subject to renegotiation and may result in different terms or conditions for which Lockton Companies cannot be responsible. Acknowledgement Signed Title Company 4S569T:Ay City of AspenA Proposals and Summaries\prop 0112.docx City of Aspen/April 12,2012-6 N E ri M O N C i a � a1p+ `o 0 en m �� —° N o°o 'l v CV V, o O o N yc i LS $ � �en 4. LA-MU n < 9 M M M C en O N E l c a. c o_ dl N S d c E an 0 • I A c la ✓ n Cl ° a, c o 0 O m .c. 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U L 0 0 0 0 O H H H H Q.a T c ho c 1p ca" La°0 c aw > c I- , u >.° X v°i o Ea nV Ea w o E ¢ Y 'c 0 . ,n ° ' Ev° c ° n t¢ 0 • c, me= c Q Uc C E d "= oE c . z '° rsz � asZS 0. = Q � 0' N v o � o n a t ma d Q a u - 0 1- U a . C O R % .4 m u J qJ O 7 � a G cQ N p 7 q C O V N y A W L Z C q q J V- O N u 0. L q 3.S u3 3 a a . •`• ., U O I LOCKTON ADMINISTRATIVE AND GENERAL SERVICES General Services Burlingame Ranch Phase II Project Services for which Lockton receives commission Program Marketing/Management A. Market the (General Liability,Excess Liability,Builders Risk and Contractor Pollution Liability) coverage based on die project's needs in conjunction with Client Risk Management parameters. 1. Prepare insurance coverage specifications. 2. Compile underwriting data and prepare market submission 3. Analyze carrier proposals and present recommendations 4. Bind coverage as directed by Client 5. Review policies for compliance with terms and conditions bound B. Process changes,endorsements and premium invoices. C. Issue required certificates of insurance in a timely manner. D. Review premium audits for accuracy and correctness. E. Conduct Client meetings as necessary. F. Provide periodic reports relative to the bound program including a description of open items. G. Provide research and advice in response to Client questions as needed. II. Claims Management Services A. Act as client claims advocate for all claims. B. Establish claims service standards with carrier(s). C. Review loss runs for accuracy and resolve any incorrectness with carrier. D. Review denied claims for correct application of coverage. E. Process claim notifications to appropriate insurance carriers. III. Loss Control Services A. Provide Loss Control consulting as needed. 48569:w-City of AspcnAproposal.-and S unnnuves\p=op n;l^_docx City of Aspen/April 12,2012-13 LOCKTON ADMINISTRATIVE AND GENERAL SERVICES OCIP Services Burlingame Ranch Phase II Project Project Specific Lockton shall serve as the OCIP Administrator for the project known as "Burlingame Ranch Phase II Project" I. OCIP Administration A. Provide sample OCIP contract language to the Client and assist the Client's legal counsel in finalizing the contract document. B. Prepare an OCIP Manual that includes claims reporting procedures and enrollment procedures and support the project team in the preparation of all bid packages as relates to the OCIP. C. Provide copies of the OCIP policies upon request by a contractor/subcontractor for review with the approval of the client. D. Ensure enrollment by all contractor and subcontractors required to participate in the OCIP,and verify compliance with the OCIP requirements. E. Obtain (on Acord Form 27) certificates of insurance from enrolled contractors evidencing required coverages and provide certificates of insurance to enrolled contractors evidencing OCIP coverage. F. Maintain Project documentation related to the OCIP. G. Provide reports to Clients summarizing OCIP activities,progress and costs. II. Program Closeout A. Coordinated the insurance carrier(s) audit review. B. Additional close-out activities as dictated by actual program design. 49569:AA Cip•of Aspen Aproposals and Summaries\prop 9412 doe. Cipof Apen/Apnl 12,2012-9 LOCKTON ADMINISTRATIVE AND GENERAL SERVICES Fees Burlingame Ranch Phase II Project FEE FOR SERVICES General Services Lockton will be compensated via commissions that will be a part of the premiums paid for those coverages.All commissions are earned at the inception of the program. OCIP Services General Liability Program Administration and Close-Out $ 5,000 All fees are earned at the inception of the program. Third-Party Peer Review $ 3,000 48564\Y'-City of AspcnAPropoeals and summadcs\prop OH 2.docx City of Aspen/Apra 12,2012 111 COMMERCIAL GENERAL LIABILITY INSURER: Ilouston Casualty Co. (Best's Rating: A+ XIV) ❑ Admitted Carrier D Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: 12 Months LIMITS OF LIABILITY: General Aggregate limit(other than Products aggregate) $ 2,000,000 Products—Completed Operations aggregate limit $ 2,000,000 Personal and Advertising Injury limit $ 2,000,000 Bodily Injury and Property Damage occurrence limit $ 2,000,000 Damages to premises rented to you See Fire Legal Fire Legal Liability limit(any one Fire) $ 50,000 Medical Expense limit (any one person) Excluded DEDUCTIBLE(S): ❑ No deductible applies ❑ Per claim Not Applicable El Per occurrence $ 25,000 ❑ Aggregate Not Applicable El Defense: ❑ Deductible applies to damages only El Deductible applies to damages and defense costs El Deductible applies to: El Bodily Injury only ❑ Both El Property Damage only ❑ Other: El Deductible reduces policy limit DEFENSE: El Inside the limit of liability ❑ Outside the limit of liability PROJECT: Project: Burlingame Ranch Phase II Address: Aspen, Colorado 81611 Sponsor: City of Aspen Description: Site development and walkways,retaining wall which will later become part of the garages during construction of the remaining work Coverage does not apply unless a"✓"appears in the box. 48369-\V-City of Aspen AProposals and summaries\prop 013doe. City of Aspen/Apnl 12,21/12-11 COMMERCIAL GENERAL LIABILITY FORM EXTENDED TO INCLUDE: Q Wrap-up program change endorsement 2 Extend products/completed operations period—statute of limitations or repose,or ten years,whichever is less ❑ Exclusion j,k,and 1 are deleted from CG0001 ▪ Who is an insured includes your enrolled contractors while performing duties related to the covered project El Limits apply for the policy period including the extended completed operations period and do not reinstate ❑ Per project endorsement ❑ Per location endorsement ❑ Blanket additional insured (as required by written contract) ❑ Primary and noncontributory wording applies ❑ Completed operations included;length: not applicable ❑ Additional insureds: ❑ Club members ❑ Volunteers ❑ Users of golfmobiles ❑ Church members ❑ Lessors of leased equipment ❑ Elected and/or appointed officers El State of Politic Subdivisions Permits El Mortgagee,assignee,or receivee ❑ Blanket vendors (as required by written contract) ❑ Fellow employee exclusion deleted ❑ Limited to key personnel—Who: ❑ Pollution exclusion amended to cover: ❑ Building heating equipment ❑ Contractor's site(limited coverage refer to the policy form) ❑ Hostile fire ❑ Products ❑ Other: ❑ Employee benefit liability: ❑ Claims made ❑ Claims made and reported #of days to report claim: N/A Limit: 0 ❑ Per claim ❑ Per employee ❑ Retroactive date: ❑ Aggregate Deductible: 0 ❑ Per claim ❑ Per employee Coverage does not apply unless a "✓" appears in the box. 48569,AC'-City of AspenAproposals and summancs\prop 0412 docx City of Aspen/April 13,2012-12 COMMERCIAL GENERAL LIABILITY FORM EXTENDED TO INCLUDE: CONTINUED ❑ Broad form named insured (# of days N/A) ❑ Worldwide territory ❑ Broad knowledge of occurrence ❑ Unintentional errors and omissions El I-lost liquor ❑ Personal injury—contractual exclusion deleted ❑ Discrimination (non-employment-related only) ❑ Definition of bodily injury includes resultant mental anguish,etc. El Waiver of subrogation (as per written contract and where allowed by law) ❑ Preloss wording ❑ Blanket wording EXPOSURES: State Description Basis Rate Premium CO Units u) 82 Flat $ 90,000 Basis a) Area c) Cost e) Each f) Frontage p) Payroll m) Admissions r) Receipts s) Sales n) Number u) Unit ADDITIONAL INTERESTS/ CERTIFICATE RECIPIENTS: (See attached schedule on file with the company.) NOTES: I ligher limits may be available on request. Coverage does not apply unless a"✓" appears in the box. 48569:AX -City of Aspen Proposals and Sumnaarics\prop onzdocx City of Aspen/April 12,2012-13 COMMERCIAL GENERAL LIABILITY TERM PREMIUM: $ 90,000 Flat premium $_ 2,700 CO surplus lines tax $ 92,700 Total El Minimum and deposit apply—100% • Minimum earned premium applies—25% 2 Optional TRIA quote—4%or$3,600 plus tax OPTIONAL QUOTE FOR VERTICAL CONSTRUCTION: Upon notification from the Insured and prior to the beginning of construction other than what is listed above,we will endorse the policy with the following: • Increase the policy term no longer than five years in total. • Amend Description of Operations and form HPC 040 09 01 12 to include the following wording: Construction of 82 rent-to-own townhomes within seven frame buildings (three stories of frame over concrete pads) for deed restricted city workers. • Form CC; 2153 01 96 will be removed from the policy. • Additional premium charged will be$200,000 plus 3% surplus lines tax. IMPORTANT: Certain contracts that are entered into contain an indemnity or hold-harmless agreement. The contractual liability created by the hold-harmless agreement is the assumption,by contract, of another's liability. The contractual liability coverage part of the Commercial General Liability policy has limitations and exclusions that may apply to portions of the hold-harmless agreement. MONTROSE WORDING: Most Commercial General liability policies now contain what is referred to as "Montrose"wording. Essentially,coverage is precluded if any owner,partner, director, officer,or employee authorized by an insured to give or receive notice of an"occurrence" knew of an occurrence involving"Bodily Injury" or "Property Damage"prior to the policy period. Refer to your policy for complete terms and conditions. Generally,these losses are not covered if they are the subject of"Prior or Claims Litigation." Some"Montrose"endorsements preclude coverage for continuing losses where the per"occurrence" first happened prior to the policy period, regardless of when there was knowledge that the occurrence had taken place or whether a claim or litigation was already pending. Coverage does not apply unless a"✓" appears in the box. 48562\A-City of Aspen A Proposals and summanes\Prop 0412.doo- City of Aspen/ApbI 12,2012-14 COMMERCIAL GENERAL LIABILITY SUBJECT TO: These terms are subject to review of additional documentation at which time pricing is subject to change or quote may be pulled: 1. A completed and signed ACORD and Supplemental Application—required within 15 days of binding 2. Signed terrorism selection form prior to binding. 3. Prior to binding,currently valued company loss runs for the last five years for Haselden Construction. 4. If the Earth Movement Exclusion is removed from the proposal,prior to binding,we need a letter from the geotech engineer stating that they have reviewed the final construction plans and they find the plans acceptable for the site conditions. 5. If the Earth Movement Exclusion is removed from die proposal,prior to binding,we need a letter from the general contractor stating that they will comply with all the written recommendations of the geotechnical engineer. 6. Trades not allowed to be enrolled: environmental remediation contractors and architects and engineers. At Binding: 1. A Risk Review must be conducted within 90 days of binding coverage.You must contact one of the following firms to conduct the risk review and a copy of the completed report must be sent to HCC within 90 days of policy inception.The cost of the risk review is paid by the insured. a. Development Services&Solutions: Doma Brown 818-591-0330 x 101 b. Wrap-Up Resources,LLC: Paula Newton 415-788-9511 c. LIP (LaJolla Pacific):M-L McKinley de Vance 949-336-8903 2. Insured must contract with one of the following providers to perform Contractor Enrollment.The cost of the enrollment is paid by the insured. HCC must be provided with a complete copy of die enrollment document upon completion of the project. a. Development Services&Solutions:Dorna Brown 818-591-0330 x 101 b. Wrap-Up Resources,LLC: Paula Newton 415-788-9511 c. Paladin Risk Management: Sandy Greenstein 888-240-4431 ex 2 3. Prior to the start of construction the insured must contract with an approved provider for third-party engineering services to be performed during the course of construction. We require 100%inspection for all condo or townhome construction and at least 50%inspection for single family homes. Prior to binding,we must review and approve the proposal for third-party engineering services.The cost of the service is paid by the insured. As a condition of coverage,we require receipt of the complete third-party documentation upon completion of the project.Approved providers include: a. LJP (Lajolla Pacific):M-L McKinley de Vance 949-336-8903 b. Builders Protective Group:Adam Shaw 310-356-4840 Coverage does not apply unless a"✓" appears in the box. 48569:Ar-City of AspenAProposals and SummadcAprop 0412.docc City of Aspen/April 12012-15 COMMERCIAL GENERAL LIABILITY MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) Bodily Injury/Property Damage Expected or intended acts • Liquor liability (exclusion applies only if you are in the business of manufacturing,distributing,selling, servicing,or furnishing alcoholic beverages) • Any obligation under a workers'compensation,disability benefits,or unemployment law or similar law C. Bodily injury to any employee(Including a spouse,child,parent,brother,or sister of that employee as a consequence of the above,but does not apply to an insured contract) • Pollution • Bodily injury/property damage arising out of ownership,maintenance,use, or entrustment of any aircraft,automobile,or watercraft owned or operated by or rented or loaned to any insured (except nonowned watercraft under 26 feet) • War C. Property damage to property that you: Own,rent,or occupy(except property damage to premises rented to you for less than seven [7] days—excluding fire damage) • Sold,gave away,or abandoned • Have loaned to you Have in your care, custody,or control .• Property damage to your product or your work arising out of or any part of it(except coverage is excess for work performed for you by subcontractors) o Property damage to impaired property arising from a defect,deficiency, inadequacy,or dangerous condition in"your product or work" or a delay • Withdrawal,recall, etc. C. Contractual (except as provided below): • Lease of premises • Sidetrack agreement Any other easement except in connection with construction or demolition operations of or within 50 feet of railroad • Indemnification of a municipality as required by ordinance,except in connection with work for municipality • Elevator maintenance agreement • (TORT LIABILITY) coverage will apply for liability assumed in a contract for a third party. Tort liability is a civil wrong. Personal Injury and Advertising Injury • By or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict personal and advertising injury •:• Oral and/or written publication known falsity Prior publication (prior to inception date) • Criminal act committed by or at the direction of the insured • Willful violation of statute Coverage does not apply unless a"✓"appears in the box. 45562VC City of AxpenAproposals and summaries\erne 0112docx (np-of Aspen/Aped 12,2 1)12-16 COMMERCIAL GENERAL LIABILITY MAJOR EXCLUSIONS: CONTINUED Personal Injury and Advertising Injury Continued • Contractual except tort liability • Breach of contract except an implied contract to use another's advertising ideas in your advertisement • Failure to conform to advertised quality and/or performance • Wrong description of price and/or goods,etc. • Any offense if the insured is in the business of advertising,broadcasting,or telecasting Medical Payments • Bodily injury to insured • Bodily injury to person hired to work for the insured • Bodily injury to a person injured on that part of premises you own or rent that the person normally occupies • Workers'compensation • Taking place in athletics .• Exclusions as shown in bodily injury/property damage • War •.• In products and/or completed operations hazard Other 4. Terrorism • Mold, fungi, etc. • Exterior insulation finishing systems (EIFS) C. Silica • Subsidence • Violation of economic and trade sanctions C. Violation of statutes in connection with sending,transmitting,or communicating any material or information (unless otherwise provided) • Asbestos • Arsenic • Wrap-up cross suits • Lead • Sulfates • Coverage C—medical payments • Employment-related practices C. Total pollution • Designated exclusion: any vertical construction • Construction management errors and omissions C. Engineers, architects,or surveyors professional liability + Real estate errors or omissions The above narrative is intended only as a guideline. Policy provisions determine coverage. Coverage does not apply unless a "✓"appears in the box. 4s369:AC-Ciq of Aspen AProposals and Summaries\p°'p 0412 does Cov of Aspen/April 12,210 2-17 EXCESS LIABILITY INSURER: Ironshore Specialty Insurance Co. (Best's Rating: A-XIII) ❑ Admitted Carrier Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: 12 Months LIMITS: Combined bodily injury and property damage Each occurrence $ 10,000,000 Annual aggregate (single general and products/completed operations aggregate—no aggregate reinstatements) $ 10,000,000 UNDERLYING LIMITS: Combined bodily injury and property damage Each occurrence $ 2,000,000 Aggregates $ 2,000,000 UNDERLYING INSURER: Houston Casualty Co. DEFENSE: El Inside the limit of liability ❑ Outside the limit of liability FORM: El Pay on behalf ❑ Indemnity ❑ Follow form of primary general liability ❑ "Per job"aggregate applies ❑ "Per location"aggregate applies MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) • Nuclear energy liability • Pollution • Asbestos • Terrorism (unless otherwise provided) • Mold, fungi,etc. • Exclusions listed in underlying policies Coverage does not apply unless a"✓"appears in the box. 4856$\A'-City of Aspen Proposals and Summaries Aprop 0412.doca City of Aspcn/April 12,2012-18 EXCESS LIABILITY MAJOR EXCLUSIONS: CONTINUED C. Crisis management exclusion C. War or military C. Other laws NOTE: Higher limits may be available on request. TERM PREMIUM: $ 100,000 Premium $ 3 000 CO surplus lines tax $ 103,000 Total O Minimum and deposit apply— 100% 2 Minimum earned premium applies—25% Optional TRIA quote—$1,000 plus CO surplus lines tax OPTIONAL QUOTE: Add vertical construction—82 rent-to-own townhomes within seven frame buildings (three stories of frame over concrete pads) for deed restricted city workers. Policy term to be increased to a maximum of five years total. Notification must be provided prior to April 15,2013 with all work to be completed by 60 months. ($75,000 AP plus 3% surplus lines tax.) SUBJECT TO: Due at time of binding: 1. Signed TRIM form 2. Signed and dated wrap application 3. Loss experience of General Contractor—losses of five years,excluding expiring year,including loss valuation dates 4. Copies of Soil Engineering Reports 5. Details of Risk Management and Wrap Administration 6. Details of Quality Assurance 7. Applicable tax forms if bound Coverage does not apply unless a "✓" appears in the box. -16369-AC-City of Aspen AProposals and Summadcs\pmp 0412.docn Car of Aspas/Apnl 12,2012-19 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY INSURER: Chartis Specialty Insurance Co. (Best's Rating: A XV) ❑ Admitted Carrier D Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: Five years COVERAGE: Covers loss that an insured is legally obligated to pay as a result of an environmental impairment from a covered operation and includes,if so indicated, completed operations. FORM: ❑ Claims made ❑ Claims made and reported S Occurrence O Pay on behalf El Project-specific ❑ Indemnity DEFENSE: E. Inside the limit of liability—after claim expenses reach$750,000 O Outside the limit of liability—until claim expenses reach 25%of aggregate (or$750,000) DEDUCTIBLE(S): $ 25,000 O LAE*inside the deductible—after claim expenses reach$750,000 El LAE*outside the deductible until claim expenses reach 25%of aggregate(or $750,000) *Loss-adjustment expenses RETROACTIVE DATE: Not Applicable COVERED OPERATIONS: + Burlingame Ranch Phase II 130 S. Galena St.,Aspen, CO 81611 C. Construction of townhomes Seven buildings, 82 units Coverage does not apply unless a "✓" appears in the box. 48569-AC-City of AmenAproposals and SummariesAprop Oiildocx City ofARmn/April 12,2012-20 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY LIMITS OF LIABILITY*: Per loss $ 3,000,000 Per policy $ 3,000,000 Emergency response costs $ 230,000 * Limits do not reinstate on an annual basis for multi-year policy terms unless specifically stated. TERRITORY: The United States,its territories or possessions,or Canada,its provinces or territories MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) • Prior impairment,if any officer,director,partner,or employee responsible for environmental affairs knew or could have reasonably foreseen • Claims seeking injunctive or equitable relief • Arising out of the ownership or operation of an offshore facility • Workers'compensation,etc. • Bodily injury to any employee or spouse, etc. .• Contractual (except when indicated below) • Cleanup costs (except when indicated below) Ownership,maintenance,use,operation,loading,and/or unloading of any automobile, aircraft,watercraft,or rolling stock (covers mobile equipment) . Nuclear • Arising out of goods and/or products manufactured, sold,etc. • Bodily injury and/or property damage to products manufactured, sold,etc. .• Intentional noncompliance with any statute, regulation,etc. . Acid rain . War • Asbestos (except when indicated below) :• Disposal, transportation,etc. (except when indicated below) • Underground storage tanks,including repair and maintenance • Taxes,assessments,punitive damages,etc. • Rendering or failing to render professional services • Sites deemed as "superfund"or that are on the National Priorities List • Terrorism (unless otherwise provided) • Mold, fungi,etc. (unless specifically covered) Lead-based paint(except when indicated below) Coverage does not apply unless a"✓" appears in the box. 48569-IX'-City of Aspen AProposals and SummancsAprop 0412.docc Gay of Aspen/April 12,2012-21 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY EXTENDED REPORTING CONDITIONS: Number of days to purchase Not Applicable Length of"tail" Not Applicable Additional premium ❑ Yes ❑ No Limit reinstated ❑ Yes ❑ No Premium fully earned ❑ Yes ❑ No Insured can purchase irrespective of who cancels or nonrenews ❑ Yes ❑ No FORM EXTENDED TO INCLUDE: 0 Contractual exclusion amended to cover: ❑ Scheduled contracts ❑ Blanket contractual when required by written contract O Limited to contacts between named insured and their clients Q Definition of bodily injury includes mental anguish, shock, and emotional distress O Natural resource damage ❑ Definition of bodily injury includes medical monitoring Q Definition of pollutant includes mold, fungi,and bacteria (microbial matter) ❑ Claims made ❑ Retro date: Q Occurrence Q Definition of pollutant includes legionella Q Definition of pollutant includes electromagnetic fields O Nonowned disposal sites for three years after expiration Q Blanket ❑ Scheduled Q Transportation Q First party ❑ Contingent third party ❑ Including illicit abandonment Q Includes insured locations—first-patty clean up Q Waiver of subrogation Q Covers punitive damages, fines,and penalties (silent) Q Additional defense costs outside of the limit Not Covered ❑ Limited asbestos/lead coverage clean-up in soil/ groundwater ❑ Third-party bodily injury for asbestos/lead Q Owner Controlled Insurance Program Endorsement Q Covers contractor and subs Q Covers owned property Q Project Protect Project Owner Controlled Endorsement O Completed operations—eight years Coverage does not apply unless a "✓" appears in the box. 4i369:11 -City of Aspen AProposals and Summaries prop OA^_.docx Cnp of Asper/April 12,21112-22 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY NOTE: Higher limits may be available on request. TERM PREMIUM: $ 69,943 Premium $ 2,098 3% CO surplus lines tax $ 72,041 Total ❑ Minimum and deposit apply ❑ Minimum earned premium applies ❑ Subject to audit Rate: • TRIA—additional$629 plus 3% surplus lines tax ❑ Surplus lines tax El 50%of premium due at inception, 50%due 12 months thereafter SUB]ECTIVITIES: In addition to the above-mentioned documentation,this indication is subject to the receipt and satisfactory review and acceptance of the following items prior to binding,unless otherwise specified: • The original signed Chartis COPS, CPO,CPL application including all applicable attachments. • Completed and signed Broker Responsible for Surplus Lines Filing form, including the SL number for the state of Colorado. • Written confirmation from broker if insured declines terrorism coverage (email is okay.) o Written evidence of mold awareness training. ❑ Five years of general liability loss runs form the General Contractor. Coverage does not apply unless a "7"appears in the box. 18569:Ay-(dy of Aspen Proposals and SummariesAprop o412.doex City of Aspen/Apnl 12,2012-23 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) INSURER: ACE American Insurance Co. (Best's Rating: A+XV) Q Admitted Carrier ❑ Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: 12 Months COVERAGE: 2 Builders Risk: Covers buildings, structures,or projects under construction and,if so indicated,extends to include property that will become a permanent part of the building while in transit or at a temporary location. PERILS INSURED: Q Special form TERRITORY: Fifty states of the United States of America,including the District of Columbia and Canada. Property in transit from Hawaii or Alaska is not covered. WARNING: (Refer to your policy for complete terms and conditions.) Policy language dictates "when coverage ceases"on a per project basis. MAJOR EXCLUSIONS: (Refer to the policy for complete terms and conditions.) Increased cost of construction • Wear and tear . Dishonest acts Inadequate or defective planning or design • Delay C. Freezing • Testing C. Mechanical breakdown + Existing structures + Occupancy • Flood and earthquake unless shown as covered above Terrorism (unless otherwise provided) • Mold, fungi,etc. (unless specifically covered) + Exterior Insulation Finishing Systems (EIFS) (unless specifically covered) Coverage does not apply unless a"✓" appears in the box. 45569.11-City of Aspen AProposals and Summaries\prop I 412.docx Uy-of Aspen/Apnl 12,2012-24 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) LIMITS OF LIABILITY: Per job-site limit $ 7,000,000 Flood sublimit(annual aggregate) (except Zone A) $ 7,000,000 Earthquake sublimit(annual aggregate) $ 7,000,000 Transit limit $ 500,000 Catastrophe limit $ 7,000,000 Temporary location limit $ 500,000 Water damage(other than flood) sublimit $ 7,000,000 Windstorm (other than named) sublimit $ 7,000,000 DESCRIPTION: Infrastructure work for planned townhome community, Burlingame Ranch Phase II,Aspen,CO DEDUCTIBLES: All other perils $ 10,000 Flood $ 25,000 Earthquake $ 25,000 Water damage $ 25,000 Soft costs/rental income # of days 15 COINSURANCE: None VALUATION: ❑ Actual cash value O Replacement cost FORM: 0 Completed value ❑ Reporting form ❑ Monthly ❑ Quarterly (Reports must be submitted within days of the last day of the month. Failure to do so may result in a coinsurance penalty.) OPTIONAL COVERAGES: 0 Waiver of subrogation (as per written contract and where allowed by law) - Covered O Definition of flood includes: O Backup of sewer and drain O Standard deductible ❑ Flood deductible O Surface water ❑ Standard deductible 9 Flood deductible ❑ Mudflow Coverage does not apply unless a"✓"appears in the box. •15369-IX'-City of Aspen Proposal.and Summaries prop 0412.don CUT of Aspcn/ApnI 12,2012-25 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) OPTIONAL COVERAGES: CONTINUED O Definition of earthquake includes: a Subsidence Mud flow ▪ Volcanic activity El Glass Covered a Testing—cold testing only Covered O Freezing(except damage to landscaping) Covered ❑ Soft costs Not Covered Describe: O Covers interest of owners,subs,and sub's subs ❑ Loss of income/rents Not Covered ❑ Riggers Not Covered ❑ No legal liability requirement El Partial occupancy allowed for purposes intended for this project El Scaffolding, form, falsework Included a Land exclusion deleted (excavation cost covered) ❑ Waterborne coverage Not Covered ❑ Property located underground Not Covered ❑ Increased cost of construction Not Covered El Debris removal 25%of Loss El Pollution $ 100,000 El Faulty design and/or workmanship exclusion amended to cover resultant damage by a covered peril El Artificial current exclusion amended to cover resultant damage by a covered peril El Rust,corrosion,etc., exclusion modified to cover resultant damage by a covered peril ❑ Mechanical breakdown exclusion modified to cover resultant damage by covered peril Not Covered ❑ Covers building material after it has become part of the building(installation floater only) Not Covered ❑ "\V/hen interest ceases" section modified to: El When financial interest ceases Q You abandon with no intent to complete ❑ 90 days after completion NOTE: Iligher limits may be available on request. Coverage does not apply unless a"✓" appears in the box. 48369:AA-City of Aspen Proposals and Summaries\prop 0413doee City of Aspen/April 12,2011-26 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) ESTIMATED ANNUAL PREMIUM: $ 4,900 ($7,000,000 hard costs x.07 term rate)/100 El Minimum and deposit apply—100% El Minimum earned premium applies—$1,225 o Subject to audit—.07 annual rate El Optional TRIA—3% or$147 ▪ Future values and vertical work will be reviewed annually as additional coverage and policies are needed Coverage does not apply unless a"✓" appears in the box. 48569:AC'-City of AspenVproposals and Summanc`Apmp 0412.doca Ory of Aspen/April 12,2012-27 i Insurance PrO01am Financial Estimate As of 4/12/1012 ProtectAgdress: Aspen CO 81611(at the end of Harmony Rd andlmmedalely to the west of the Burlingame Ranch Phase It Prolect Rating Base Construction of Townhomes Total Construction Value for Infastructsor 07,000,000 Total Construction Value for2013 0 2014/52 units): 516,000,000 Total Construction Value for 2015(30 units) 08.000 000 Son Costs $2 500 000 Total Construction Values: 035500.000 Construction/Coverage Term for InlasiruRUre 0 Months 14/152012 to 12115/20121 Construction/Coverage Term for 2013 62014 i52 units) 14 Months(4/12013 to 0412014) Construction/Coverage Term Ion 201$(20 units) 8 Months(4/1/2015 to 12/12015/ No of Units. 82 Coamge Description Luci.n Indications Preferred Option Infrastructure Venice)Construction Infrastructure Ventral Construction Primary General Llebilrty(Optional Tenonsm l $100 000 5250000 596.408 0214 240 Excess Liability 575.000 5195000 5100 030 570023 Contractor's Pollution Liability(Optional Terrorism} 075.000 50 537,639 $34,972 Other Insurance Program Costs $5.000 552 800 18 000 561000 Builders Risk[Optional Terrorism) $20.000 070000 10.047 0])250 Subtotals-includes taxes,Ms and Terrorism $270,000 5587,400 5251.184 5465,404 Program Premium Total III-Includes taxes,lees and Terrorism 5845,600 0716,680 Lcckton Indications Houston Casualty General Liability mmatrusture I Vertical Canstrumon Infrastructure I Vertical COnabuction Primary Limits $2M/52M/52M $2M/$2M22M Poly Term 60 Months 12 Months 148 Additional Months Deductible 510000-525 000 025.000 Hard Costs 57,000000 I 524,000,000 333,500000 Rate-Term Flat Rate Flat Rate Fixed Costs(premium) 5100,000 $250,000 390,000 5200.000 Fees 8 Taxes 52.]00 50.000 TRIPRA(Optional Terrorism/ 03.708 38 240 Subtotal 5100.000 5260.000 686,400 $214,240 Total Premium,Feet 6 Taxes including Terrorism 5350.000 $310,648 Option toendorx wnlde work aMinoreaoe term up to 5.years tots for 5200000 AP_rNrficel,m must ee given prior to 4/152013 2511 minimum earned at inception 100%after 12 months/100%minimum and depose eb$96408 is due at binding and lm%o 15214240 is due when notification elwmda work is provided SubRG la ceolech and GC letter staling writ comply and hawreviawed mnsuuouon plans and geotech rea.Risk renew and 3rd Party ONAC,wed epplicallon Lnckon Indications Ironsle Ore s�e�la ray Excess Liability Infrastructure I Verb.'Construction InhesincNre Ifs'ed'ICal Constructon Excess Limits 510 000.000 $10,000,000 Policy Conn fiO Months 5100,000 qB Additional 575.000 MOnfhs Fixed Costs axes(premium) f]5,0.'V 5195 000 3550000 22 Fees 0 ITerr 55.000 $2230 TRIPRA m) 51 030 5273 subtotal 515,000 5195,000 5104,030 6]6,02) Total Premlum Fees 6 Taxes Including Op 3162.05) Optien r 1 . isdu oak and increase term up to so total tor 5]Spm o n must be gwen prior to 41151113 lW%or 31 0W,03 o is due at binding and I OU% hs,s do e when anti n on radicle w eM;¢provded of 2514 minimum earned et rid Wo% ei 12 montan mi um and decoy/ Subject le awned application and details of Risk Management and Dueley A¢¢onnce Lookton Indications Chanis Contractors Pollution LIabIIMy Infrastructure I Verpcel Construction Infrastructure I Vertical Construction CPL Limes 53.000000 53 000 000 Policy Term 60 Months 60 Months Deductible $25 000 525 000 Completed Operations Period 0 Pears 8 Veers Rate-Term 52.24 52.17 Fixed Costs(premium) 575,000 534,972 $34,972 Fees$Taxes 52098 50 TRIPRA(Opdonal Terrorism) 0e29 50 Subtotal 337,690 $34,972 Total Premium,Fees 4 Taxes including Terrorism $75,000 $]2,6]0 Lockton Indications Locktnn Other Insurance Costs Infrastructure Vertical Construction InhaStruclure Vertical Construction Cantu Protect Rise Review 53000 50 $2.000 50 oe Adm;nslmlie Fees 131-Term 40 months $5000 520.000 55.000 520.000 •3rd Party OA/OC(2) 30 532,000 50 541.000 Total Other Ina.Program Costs 50.000 _ 552,800 $1,000 $61,000 Lcckron Illpnion• ACE Policy tar Each Phase/)Total Builders Rick Infrastructure Vertical Construction Infrastructure INDICATION ONLY Rd',Term 8 Months 36 Months 12 Months TOD Hard Costs 57.000000 524.000.000 $]000000 324.000.000 _ Soh Costs Included Included Included $2 500.503 Total Limit 57.000000 024000.000 57,500,CW 520,500,000 Earthquake Limit 510.000000 57.000 000 526 500.000 Flood Limit 510000.003 57.000000 526.500.030 Deductibles Physical Damage All Other Losses $10,000-525000 510.000-525000 010.000 510.000 Water Damage 525.000-550.000 $25000-550000 525.000 325000 Earthquake $2E 000-$50 000 525.000-050 000 550 000 $50000 Flood $25,000-550.330 525000-550000 550.300 300.000 Delay in Completion Soft Costs 15 Day, 15 Days Rate-Annual Blended $0.00 50.02 30.36 Fixed Costs(premium) 520,000 570,000 $4,900 575000 Deposit Premium 34.903 575.000 Fees 8 Taxes 50 50 _ TRIPRA(Optional Tenonsm) 5147 52 250 Subtotal 520,000 570,000 55,047 5]],250 Total Premium,Fees B Taxes including Terrorism $90000 2_ 562.29] ACE•OUmedInfrastructure.but can only provide an indroton for VeNde construction -100%of premium due at mcepoonadlwted at en of poky penod,25%minimum earned -IM ated n y than market Such •Premium is estimated based onprovided phased censuuctionschedub and nudger Notes: 1.Does not include estimated losses paid within the deduct,ple. 2.00 is recommended an estimate of the cost for would be 5500 per door. 3.Lookton has been approved to p/oxide admlmstrabon on wrap-ups.Loopon will provide an Administrative Fee for services Agreement for splreture by the Owner. 4.Contractors Ponupon oabdoy more detailed quotations are provided on separate page. 5.A favorable Loss Control Survey is required within 45 days of binding. 'Note.Lackton will receive commission from the rimer on any issued policy.This 6,n addmon to our Adm,msinme Fee for Service.