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HomeMy WebLinkAboutResponsible & Compliant Retail Blackstone LLC - Imdemnification Agreement - 3-9-2023Ljuuuol II CI IV CIVpC ILJ. %.'FLJV I I I I-VDVOVGD,+ lri! I INDEMNIFICATION AGREEMENT THIS AGREEMENT (Agreement) is entered into on 3/9/2023 by and between the CITY OF FRESNO, a municipal corporation (City), and RESPONSIBLE AND COMPLIANT RETAIL BLACKSTONE LLC (Applicant). RECITALS WHEREAS, Applicant has applied to City for a Cannabis Conditional Use Permit (Permit) for a retail or commercial cannabis business; and WHEREAS, litigation challenging the granting or issuance of Permit approvals by governmental bodies is proliferating, and such litigation exposes City to potential liability for damages, costs, and attorney's fees; and, WHEREAS, City incurs great expense in the active defense of such litigation and, if unsuccessful, may also be required to pay the prevailing party's attorney's fees and costs; and, WHEREAS, fairness and sound fiscal policy require that the person or entity receiving the benefits of Permit should also bear the burden of the liability for potential injuries and the expense of such litigation and claims: and, WHEREAS, Applicant and City mutually desire to enter into this Indemnification Agreement, by which Applicant shall indemnify, (at City's request) defend, save and hold City harmless, in order that City shall bear no fiscal or financial burden whatsoever resulting from any litigation challenging the City's grant or issuance of land use approvals to Applicant, subject to the provisions of Section 2, below. LD HARMLESS AND INDEMNIFICATION To the furthest extent allowed by law, Applicant shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort .or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees, litigation expenses and cost to enforce this agreement), arising or alleged to have arisen directly or indirectly out of performance of this Agreement. Applicant's obligations under the preceding sentence shall apply regardless of whether City or any of its officers, officials, employees, agents or volunteers are negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. This section shall survive termination or expiration of this Agreement. 2. INSURANCE REQUIREMENTS (a) Throughout the life of this Agreement, Applicant shall pay for and maintain in full force and effect all insurance as required herein with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated no less than "A-VII" in the Best's Insurance Rating Guide, or (ii) as DEV-B Indemnity Agt (08-19-21) UUI:UJII9.II Cl IVCIUFIC IU. l-,'#UU I I IV-D4Jl-'-FrrJ-.7lJD 1-UD000GDV IM/ I may be authorized in writing by City's Risk Manager or designee at any time and in its discretion. The required policies of insurance as stated herein shall maintain limits of liability of not less than those amounts stated therein. However, the insurance limits available to City, its officers, officials, employees, agents, and volunteers as additional insureds, shall be the greater of the minimum limits specified therein or the full limit of any insurance proceeds to the named insured. (b) If at any time during the life of the Agreement or any extension, Applicant fail to maintain any required insurance in full force and effect, all terms under this Agreement shall be discontinued immediately until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No action taken by City pursuant to this section shall in any way relieve Applicant of its responsibilities under this Agreement. The phrase "fail to maintain any required insurance" shall include, without limitation, notification received by City that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent. (c) The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, vendors, suppliers, invitees, contractors, sub- contractors, consultants, or anyone employed directly or indirectly by any of them. Coverage shall be at least as broad as: 1. The most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01, providing liability coverage arising out of your business operations. The Commercial General Liability policy shall be written on an occurrence form and shall provide coverage for "bodily injury," "property damage" and "personal and advertising injury" with coverage for premises and operations (including the use of owned and non - owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Agreement) with limits of liability not less than those set forth under "Minimum Limits of Insurance." 2. The most current version of ISO Commercial Auto Coverage Form CA 00 01, providing liability coverage arising out of the ownership, maintenance or use of automobiles in the course of your business operations. The Automobile Policy shall be written on an occurrence form and shall provide coverage for all owned, hired, and non -owned automobiles or other licensed vehicles (Code 1- Any Auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. DEV-B Indemnity Agt (08-19-21) 2 u uuuJ I I�f. II CI IVCluptC IU. I+VUV I I IV-D4J/-'#rl-J-MID I-UDVOVLD'# I/'1/ I MINIMUM LIMITS OF INSURANCE Applicant shall procure and maintain for the duration of the agreement, insurance with limits of liability not less than those set forth below. However, insurance limits available to City, its officers, officials, employees, agents, and volunteers as additional insureds, shall be the greater of the minimum limits specified herein or the full limit of any insurance proceeds available to the named insured: 1. COMMERCIAL GENERAL LIABILITY (i) $1,000,000 per occurrence for bodily injury and property damage; (ii) $1,000,000 per occurrence for personal and advertising injury; (iii) $2,000,000 aggregate for products and completed operations; and, (iv) $2,000,000 general aggregate applying separately to the work performed under the Agreement. 2. COMMERCIAL AUTOMOBILE LIABILITY $1,000,000 per accident for bodily injury and property damage. 3. Workers' Cow nsati�an Insurance as re aired b the State of California with statutory limits and EMPLOYER'S LIABILITY with limits than: (i) $J+,000,000 each accident for bodily injury; (ii) $1,000,000 disease each employee; and, (iii) $1,000,000 disease policy limit. UMB;RE� OR EXCESS INSURANCE In the event Applicant purchases an Umbrella or Excess insurance policy(ies) to meet the "Minimum Limits of Insurance," this insurance policy(ies) shall "follow form" and afford no less coverage than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-contributory basis for the benefit of the City, its officers, officials, employees, agents, and volunteers. DEDUCTIBLES AND SELF -INSURED RETENTIONS Applicant shall be responsible for payment of any deductibles contained in any insurance policy(ies) required herein and Applicant shall also be responsible for payment of any self -insured retentions. Any self -insured retentions must be declared on the Certificate of Insurance, and approved by, the City's Risk Manager or designee. At the option of the City's Risk Manager or designee, either: (i) The insurer shall reduce or eliminate such self -insured retentions as respects City, its officers, officials, employees, agents, and volunteers; or (ii) Applicant shall provide a financial guarantee, satisfactory to City's Risk Manager or designee, guaranteeing payment of losses and related investigations, claim administration and defense expenses. At no time shall City be responsible for the payment of any deductibles or self -insured retentions. DEV-B Indemnity Agt (08-19-2-1) 3 LIUUUJIIJ.II CIIVCIUpt: IU. l,.r'#L/U I I IU-D'+J I-'+rrJ-.71..D I-UD000LD'# Ir1/ I OTHER INSURANCE PROVISIONS/ENDORSEMENTS (i) All policies of insurance required herein shall be endorsed to provide that the coverage shall not be cancelled, non -renewed, reduced in coverage or in limits except after 30 calendar days' written notice has been given to City, except ten days for nonpayment of premium. Applicant is also responsible for providing written notice to the City under the same terms and conditions. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non -renewal, or reduction in coverage or in limits, Applicant shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for City, Applicant shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar aays prior to the expiration date of the expiring policy. (ii) The Commercial General and Automobile Liability insurance policies shall be written on an occurrence form. (iii) The Commercial General and Automobile Liability insurance policies shall be endorsed to narrie City, i�Ls officers, officials, agents, employees, and volunteers as an additional insured. Applicant shall establish additional insured status for the City and for all ongoing and completed operations under the Commercial General Liability policy by use of ISO Forms or an executed manuscript insurance company endorsement providing additional insured status. The Commercial General endorsements must be as broad as than: contained in ISO Forms: GC 20 10 11 85 or both CG 20 26 or CG 20 '1 2. (iv) The Commercial General and Automobile Liability insurance shall contain, cr be endorsed to contain, that the Applicants' insurance shall be primary tc and require r.o cont ibution from the City. The Commercial General policy is required to include primary and non-contributory coverage in favor of the City for both the ongoing and completed operations coverage. These coverages shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees, agents, and volunteers. If Applicant maintains higher limits of liability than the minimums shown above, City requires and shall be entitled to coverage for the higher limits of liability maintained by Applicant. (v) Should any of these policies provide that the defense costs are paid within the Limits of Liability, thereby reducing the available limits by defense costs, then the requirement for the Limits of Liability of these polices will be twice the above stated limits. (vi) For any claims related to this Agreement, Applicant's insurance coverage shall be primary insurance with respect to the City, its officers, officials, agents, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, agents, employees, and volunteers shall be excess of the Applicant's insurance and shall not contribute with it. DEV-B Indemnity Agi (08-19-21) 4 LJUOU'Dl II CI IVCIUpC ILJ. %-'#LJO I I IU-D-+,D I-'+rrJ-uuo I-UD000GD-+Ilil I (vii) The Workers' Compensation insurance policy shall contain, or be endorsed to contain, a waiver of subrogation as to City, its officers, officials, agents, employees, and volunteers. (viii) The Commercial General and Automobile Liability insurance policies shall contain, or be endorsed to contain, a waiver of subrogation as to City, its officers, officials, agents, employees, and volunteers. PROVIr iNG OF DOCUMENTS - Applicant shall furnish City with all certificate(s) and applicable endorsements effecting coverage required herein. All certificates and applicable endorserne!nt:s are to be received and approved by the City's Risk M-sinager Or designee prier to City's execration of the Agreement and before work commences. All non -ISO endorsements amending policy coverage shall be cxecured y a iicensea and authorized agent or broker. Upon request of City, Applicant shall imrnedia'ieiy furnish City with a complete copy of any insurance policy required under ibis Agreement, including all endorsements, with said copy c6rcified by the underwriter to be a true and correct copy of the original policy. -this requirement shall survive expiration or termination of this Agreement. All sub-appiicarits working unaer the direction of Applicant shall also be required to provide all documents noted 'herein. CLAIM -RJtnAl`'_�� ,:r'0 i"'JES , If any coverage required is written on a claims -made coverag ,-crm- (i) T e refit cactivc- da-�a must to shown, and must be before the effective date o - ilhe Agraal ^ar it or the commencement of work by Applicant. (ii) il^ s F'a ,ca fT.i .5f-.iair,tail .ed and ev;der:ce of insurance must be provided fur a-r -,east five years after completion of the work or termination of the Agireemem, whichever first occurs. i coverage is canceled cr non -renewed, and not replaced with another clairr:s-ri ­:ad2— policy forr:, .with a retroactive date prior to the effective date of {i:a ,",creement_ or work- commencement date, Applicant must purchase "extender; recar?ir~g" period coverage for a minimum of five years after complet-ion of the work or termination of the Agreement, whichever first occurs. (iv) A cony of the claims reporting requirements must be submitted to City for review. (v) These requirements shall survive expiration or termination of the Agreement. 3. NOTIFICATIONS AND COOPLRATION BY CITY. City shall notify Applicant within a reasonable period of time of its receipt of any demand, claim, action, proceeding, or litigation in which City is to be indemnified and held harmless by Applicant. If City requests that Applicant defend City, it shall notify Applicant in writing within a reasonable period of time of its receipt of any such demand, claim, action, proceeding, or litigation and City shall cooperate fully in such defense. DEV-B Indemnity Agt (08-19-21) 5 LlUOUJIIy. II CI IVCIUFIC IU. l -+LJU I I IU-D4O I-4FFO-SI D I-UD000GD1+IN! I City shall have the right to select the attorney or attorneys who will defend the City. In selecting defense counsel, City should consider the prevailing local rates for attorneys with the requisite skills. City should further consider whether a joint defense arrangement utilizing counsel for Applicant will suffice in lieu of separate counsel. City reserves its rights at all times to retain separate defense counsel subject to the provisions of this paragraph, and Applicant agrees to accept such selection. City and Applicant shall at all times cooperate wiih respect to the retention of counsel. Applicant further agrees to be fully responsible for any and ail costs and attorney's fees generated by said attorney(s) in the defense of City in any claim, demand, action, proceeding, or litigation arising out of the Project. 4. CITY'S PARTICIPATING IN DEFENSE. Nothing-colntairied herein shall prohibit City, in its sole discretion, from participating in the defense of any darriand, claim, action, proceeding, or litigation over and above representation by ou'Lside counsel, or from participating in the defense of any demand, claim, action, proceeding; or litigation. if City elects to also defend, it shall do so in good faith. In no event shall City's participation in the defense of any demand claim, action, proceeding, or litigation alfect the obligations imposed upon Applicant in section 2 of this Agreement. 5. REIMBURSEMENT OF CITY'S ;;OSTS RE: ADMINISTRATIVE RECORD. Without Iirniting the Ci-L-y's right -to recover its costs frorn Applicant under paragraph 2 herein above, agi-eas to i-eirriourse the City for its actual cost incurred, including, but not limited to, City staff and attorney time expended for certifying and/or preparing the aC:r�i:r:is. at`ve record ii-i cernecticn �,iit}, any proceedings related to the subject matter of this Indemnification Agreement. Applicant and City agree to work cooperatively wi- r; respecil- to preparation of the adrninistrative record, and Applicant shall ensure that City is fjoy rein-;bursed for, ne costs or preparation before receiving such administrative record. To the extent administrative record reimbursement and related costs are recover: -red it �,,!ny, litigation by _hie City, Applicant shall be reimbursed to the extent any such recovery is made as cost recovery iterns. 6. COVEN �_N',,T N,-„- 2 CUE. (a) Appfl;loa nt on behalf of ;tsar;, and i-ts s6ccessors, and assigns, hereby fully releases Cicy, ,-LS succ--SIscl"s, and a'; G`h6i persol-Is and associations, known or unknown, fr on"n a.�,l claims and causes of aciior, by reason of any damage which has been sustain`.d, ;r ::a %lie sustained, as a result of the above -described Permit and covenants not to sue relating to such claims; excluding gross negligence orwillful misconduct of C fy, as s,e furi;-� irl Section ' , above. (b) A.pl lica^t 2ck,-1aLvicdg;es a:- = ­ess Real. --his release applies to all claims that Applicant may have against City arising out of the above -described Land Use Approval for injuries, damages, or losses to Applicant's person and property, real or personal, whether those injuries, damages, or losses are known or unknown, foreseen or unforeseen, or patent or latent. (c) Applicant certifies that Applicant has read section 1542 of the Civil Code, set out below: DEV-B Indemnity Agt (08-19-21) 6 UUVUJIY[I CIIVCIVFt: ILJ. %.,-+LJOI I II-VDV000D4 I/1/ I A genera! release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. (d) Applicant hereby waives application of section 1542 of the Civil Code. (e) Appiicant understands and acknowledges that the significance and consequence of this waiver of section 1542 of the Civil Code is that even if Applicant should eventually sum -er additional damages arising out of the above described Land Use Approval, Applicant will not be permitted to make any claim for those damages. Furthermore, Applicant acknowledges that Applicant intends these consequences even as to claims for damages that may exist as of the date of this release but which Applicant does not know exist, and which, If known, would materially affect Applicant's decision to execute this release, regardless of whether Applicant's lack of knowledge is the result of ignorance, oversight, error, negligence or any other cause. (f) ApJicant warrants and represents that in executing this release, Applicant has relied on legal advice from the attorney of .Applicant's choice that the terms of this release and its consequences have been cornp!etely read and explained to Applicant by that attorney, and that Applicant fu!!v understands the terms of this release. (g) Acp'icar' acknowledges an:d Warrants that Applicant's execution of this release is free and voi !ntary. (h) ; f,i-elaasa pertains to a disputed Clair,. and does not constitute an admission of I abilliLy by C:fy -or the above-cl ;scribed Parrnit. (i) The provisio; Js 31 sec'ior, 8 'r:erein bal,ow shall not apply to this covenant not to sue. 7. TERM I1,,1 i iON ACRL.EME'-J_i_ . (a) This Indemnification Agreement may be terminated only upon the following conditions: (i) The parties agree to terminate this Indemnification Agreement by their express, or I,e ;applicant peti-iions L'Ii -a City Manager to terminate this Agreement by ;providing to the Council a written opinion of Applicant's legal counsel and the City Miianager, in its so!e disc;ration, determines that termination of this Agreement is ir! the be=t lra:east .o! the public and the City. It is understood and agreed that the City, in making such determination of whether to terminate this Agreement, may reasonaniy rely upon said opinion of Applicant's legal counsel. (b) If tills Agreement is terminated as provided above, the City shall execute a written release cf A.pplicant's oNigations under this Agreement. !t shall be Applicant's responsibility `c record s, cr doc irnent �ritl^ +ha office of the Recorder of the County of Fresno. DEV-B Indemnity Agt (08-19-21) 7 L/UUUJIl�f. 11 CI IVCIUptC IU. lJ'1LJU I I IU-D'TJ!-NrrJ-U%�D 1-UD000GDV I M I I 8. ATTORNEY'S FEES. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses. For the purposes of this agreement, "attorneys' fees" and "legal expenses" include, without limitation, paralegals' fees and expenses, attorneys, consultants fees and expenses, expert witness fees and expenses, and all other expenses incurred by the prevailing party's attorneys in the course of the representation of the prevailing party in anticipation of and/or during the course of litigation, whether or not otherwise recoverable as "attorneys' fees" or as "costs" under California law, and the same may be sought and awarded in accordance with California procedure as pertaining to an award of contractual attorneys' fees. 9. SEVERABILITY. If any provision of this Agreement is determined to be invalid in a final judgment by a court of cornpetentjLlrisdiction, each and every other provision hereof shall remain infull force and effect. 10. CONSTRUCTION OF CONTRACT. The pai=cies hereby acknowledge that they and their respective counsel have cooperated in the drafting and preparation of this Agreement, for which reason this Agreement shali not be construed against any party as the drafter thereof. Mignatures fol!,ow on the next page.] DEV-B Indemnity Agt (08-19-21) 8 L/UI:U'mylI CI IVCIUFJC IU. V-4LJU I I IU-D4Jl--+rrJ-JI'D I-UDUOULD'f IM/ I IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno, California, on the day and year first above written. CITY: CITY OF FRESNO, A California m nicipal corporation SIZ-j ighe By:y. �" 3/9/2023 Georgeanne`'�Nhite City Manager APPROVED AS TO FORM: ANDREW JANS City gR�X by Vt aAA,-06*2023 Materman-Doidge Date Senior Deputy City Attorney II ATTEST: Todd Stermer City Clerk �ocuSigned by: jam, q6W 3/9/2023 LBy: Deputy DEV-B Indemnity Agt (08-19-21) APPLICANT: RESPONSIBLE AND COMPLIANT RET IL,BI�A STONE LLC ocu Igne f ,�,y 3/9/2023 By. Name: Lauren Carpenter Title: Member By: Name: Title: (Parties authorized to sign on behalf of applicant [staff: see AO 4-1]) A