HomeMy WebLinkAboutContracts & Agreements_153-2014_CCv0001.pdf AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of services associated with Fleet Management
Consulting Services ("Agreement') is made and entered in this August 19, 2014 ("EfTective
Date"), by and between the City of Redlands. a municipal corporation ("City)" and Mercury
Associates. Inc. ("Consultant'). City and Consultant are sometimes individually referred to
herein as a "Party" and. together, as the "Parties." In consideration of the mutual promises
contained herein. City and Consultant agree as follows:
ARTICLE I - ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to provide Fleet Management Consulting services for
City's Quality of Life Department Equipment Maintenance Division (the "Services.")
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of Services.
ARTICLE '-' - SERVICES OF CONSULTANT
2.1 The Services that Consultant shall perform are more particularly described in Exhibit
"A," entitled "Scope of Services,'' which is attached hereto and incorporated herein by
reference.
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in
the performance of this Agreement including, but not limited to, State prevailing wage
laws.
ARTICLE-3 - RESPONSIBILITIES OF CITY
3.1 City shall make available to Consultant information in its possession that may assist
Consultant in performing the Services.
3.2 City designates Fred Cardenas. Director of Quality of Life, as City's representative with
respect to performance o1' the Services. and such person shall have the authority to
transmit instructions, receive information, interpret and define City's policies and
decisions with respect to performance of the Services.
AR'T'ICLE 4- PERFORMANCE OF SERVICES
4.1 Consultant shall perform and complete the Services in a prompt and diligent manner in
accordance with the schedule set forth in Exhibit "B," entitled "Project Schedule." which
is attached hereto and 'incorporated herein by reference. The Services shall commence
within ten (10) days of the Effective Date of this A�ereement.
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4.2 If Consultant's Services include deliverable electronic visual presentation materials. such
materials shall be delivered in a form, and made available to the City, consistent with
City Council adopted policy for the same. It shall be the obligation of Consultant to
obtain a copy of such policy from City staff.
ARTICLE 5 — PAYMENTS TO CONSULTANT
5.1 The total compensation for Consultant's performance of the Services shall not exceed the
amount of Twenty Ei,lnt Thousand Eight hundred dollars ($28.800.00). City shall pay
Consultant on a time and materials basis up to the not to exceed amount, in accordance
with Exhibit "C," entitled "Project Costs and Hourly Rates," which is attached hereto and
incorporated herein by this reference.
5.2 Consultant shall submit monthly invoices to City describing the Services performed
during the preceding= month. Consultant's invoices shall include a brief description of the
Services performed.. the dates the Services were performed, the number of hours spent and
by whom, and a description of any reimbursable expenses. City shall pay Consultant
no later than thirty (30) days after receipt and approval by City of Consultant's invoice.
5.3 All notices shall be given in writing by personal delivery or by mail. Notices sent by mail
should be addressed as follows:
Citv Consultant
Fred Cardenas. Director Mercury Associates, Inc.
Quality of Life Department Randy Oven. Senior Vice President
City of Redlands 9411 Stonemark Drive
35 Cajon Street. Suite 222 Charlotte. NC 23277
PO. Box 3005 (mailing)
Redlands, CA 92373
When so addressed, such notices shall be deemed �,iven upon deposit in the United States
Mail. Changes may be made in the names and addresses of the person to whom notices
and payments are to be given by giving notice pursuant to this section 5.3.
ARTICLE 6 — INSURANCE AND INDEMNIFICATION
6.1 Insurance required by this Agreement shall be maintained by Consultant for the duration
of its performance of the Services. Consultant shall not perform any Services unless and
until the required insurance listed belo«• is obtained by Consultant. Consultant shall
provide City with certificates of insurance and endorsements evidencing such insurance
prior to commencement of the Services. Insurance policies shall include a provision
prohibiting cancellation or modification of the policy except upon thirty (30) days prior
written notice to City.
6.2 Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
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City that Consultant is self-insured or exempt from the workers' compensation laws of
the State of California. Consultant shall provide City with Exhibit "D," entitled
"Workers' Compensation Insurance Certification," which is attached hereto and
incorporated herein by this reference prior to commencement of the services.
6.3 Consultant shall secure and maintain comprehensive general liability insurance with
carriers acceptable to City. Minimum coverage of One Million Dollars ($1,000,000) per
occurrence and Two Million Dollars ($2,000.000) aggregate for public liability, property
damage and personal injury is required. City shall be named as an additional insured and
such insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City.
6.4 Consultant shall secure and maintain professional liability insurance throughout the term
of this Agreement in the amount of One Million Dollars($1,000,000) per claim made.
6.5 Consultant shall have business auto liability coverage. with minimum limits of One
Million Dollars ($1.000,000) per occurrence, combined single limit bodily injury liability
and property damage liability. This coverage shall include all Consultant owned vehicles
used in connection with Consultant's provision of the Services, hired and non-owned
vehicles, and employee non-ownership vehicles. City shall be named as an additional
insured and such insurance shall be primary and non-contributing to any insurance or self
insurance maintained by City.
6.6 Consultant shall defend, indemnify and hold harmless City and its elected officials.
employees and agents from and against any and all claims, losses or liability, including
attorneys' fees. arising from injury or dead; to persons or damage to property occasioned
by any negligent act or omission by, or the willful misconduct of, Consultant, or its
officers, employees and agents in performing the Services.
ARTICLE 7 —CONFLICTS OF INTEREST
7.1 Consultant covenants and represents that it does not have any investment or interest in
any real property that may be the SUbJect of this Agreement or any other source of
income, interest in real property, or investment that would be affected in any manner or
degree by the performance of Consultant's Services. Consultant further covenants and
represents that in the performance of its duties hereunder. no person having any such
interest shall perform any Services under this Agreement..
7.2 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law;
(ii) issue, deny, suspend oi• revoke any City permit, license. application,
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certification, approval, order or similar authorization or entitlement,
(iii) authorize the City to enter into, modify or renew a contract;
(iv) grant City approval to a contract that requires City approval and to which City
is a party, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item;
(vi) adopt or grant City approval of': policies. standards or guidelines for City or
For anv subdivision thereof.
B. Does not serve in a staff capacity with City- and in that capacity, participate in making
a governmental decision or otherwise perform the same or substantially the same duties
for City that Would otherwise be performed by an individual holding a position specified
in City's Conflict of Interest Code under Government Code section 87302.
7.3 In the event City officially determines that Consultant must disclose its financial
interests. Consultant shall complete and file a Fair Political Practices Commission Form
700, Statement of Economic Interests. with the City Clerk's office pursuant to the written
instructions provided by the City Clerk.
ARTICLE 8 —GENERAL. CONSIDERATIONS
8.1 In the event any action is commenced to enforce or interpret any of the terms or
conditions of this Agreement the prevailing Party shall, in addition to any costs and other
relief; be entitled to the recovery of its reasonable attorneys' fees, including fees for the
use of in-house counsel by a Party.
8.2 Consultant shall not assign any of the Services, except with the prior written approval of
City and in strict compliance with the terms and conditions of this Agreement.
8.3 Records, drawings. designs, cost estimates, electronic data files, databases and any other
documents developed by Consultant in connection \Kith its performance of the Services,
and any copyright Interest in such documents. shall become the property of City and shall
be delivered to City upon completion of the Services. or upon the request of City. Any
reuse of such documents. and any use of incomplete documents. shall be at City's sole
risk.
8.4 Consultant is for all pui.•poses under this Agreement an independent contractor and shall
perform the Services as all independent contractor. Neither City nor Its agents shall have
control over the conduct of Consultant or Consultant's employees, except as herein set
forth. Consultant shall supply all necessary tools and instrumentalities required to
perform the Services. Assigned personnel employed by Consultant are for its account
only, and in no event shall Consultant or personnel retained by it be deemed to have been
employed by City or engaged by City for the account of. or on behalf of City. Consultant
shall have no authority. express or implied.. to act o11 behalf of City in any capacity
whatsoever as an anent. nor shall Consultant have any authority, express or implied, to
bind City to any obli_ation.
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8.5 Unless earlier terminated as provided for below, this Agreement shall terminate upon
completion and acceptance of'the Services by City. This Agreement may be terminated
by City, in its sole discretion, by providing not less than five (5) days prior written notice
to Consultant (delivered by certified mail. return receipt requested) of City's intent to
terminate. If this Agreement is terminated by City, an adjustment to Consultant's
compensation shall be made, but (I) no amount shall be allowed for anticipated profit or
unperformed Services.. and (2) any payment due Consultant at the time of termination
may be adjusted to the extent of any additional costs to City occasioned by any default by
Consultant. Upon receipt of a termination notice, Consultant shall immediately
discontinue its provision of the Services and, within five (5) days of the date of the
termination notice, deliver or otherwise make available to City, copies (in both hard copy
and electronic form., where applicable) of project related data, design calculations,
drawings. specifications, reports, estimates,. summaries and such other information and
materials as may have been accumulated by Consultant in performing the Services.
Consultant shall be compensated on a pro-rata basis for Services completed up to the date
of termination.
8.6 Consultant shall maintain books, ledgers. invoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer period required by law. from the date of final payment to
Consultant pursuant to this Agreement. Such books shall be available at reasonable times
for examination by City at the office of Consultant.
8.7 This A-reement, including the Exhibits incorporated herein by reference.. represents the
entire agreement and understanding between the Parties as to the matters contained
herein, and any prior negotiations, written proposals or verbal agreements relating to such
matters are superseded by this Agreement. Except as otherwise provided for herein, an
amendment to this Agreement shall be in writing, approved by City and signed by City
and Consultant.
8.8 This Agreement shall be governed by and construed in accordance with the laws of the
State of California.
8.9 If' one or more of the sentences, clauses. paragraphs or sections contained in this
Agreement is declared invalid, void or unenforceable by a court of competent
jurisdiction, the same shall be deemed severable from the remainder of this Agreement
and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or
sections contained herein, unless to do so Would deprive a Party of a material benefit of
its baq,ain under this Agreement.
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IN " I I Nf""ISS %\ I 11"AH-W. dLdatithorized tvpresematives (4'0tN or su-I tam haNc sigmxf
in confirmation ofthis Agn-ccmem,
('I I Y ()I- RLDLA,N,I)S k-11-R( IAN' ASSOCIA ILS, I V".
Tina Kumfiz. H11.111ce JAI'ectol, cl ior V, President
ATTEST:
By:
anne Donaldson, Deputy City Clerk
6
: X BIT " "
Proposal to Provide
" xr Isar w,*Iar
_ Fbrat Mara yyrrrern t Consulting Services
EXECUTIVE
This proposal l is submitted by Mercury ury Associates, Inc- ars employee-owned fleet management
consulting firm incorporated in 2002 and headquartered in Maryland, We have more than 30
rnployes located throughout the United States and in Canada, marry of whom served a
professional fleet managers rs rry the public and or private sector prior to commencing their'
srrltrrrp careers, Mercury's mission is to assist organizations in improving inn th management
ent
and operation of thei r fleets, We do not manage fleets or sell any other company's products or
services to fleet owners. Contact information for the firm is provided below
Mercury Associa es Inc,
7361 Calhoun Placa. Suite 680
Rockville, MD 20855
dttt 5190535
www,r r rcury-ask .corn
Mr, Randy Owen, Senior Vice-President and a principal in the firm- is our representative
authorized to exeCLJte a contract with the tarty. He will also serve as the principal point of contact
and manage protect activities with the City, lir, Owens contact information is provided b to
Mr. Randy Owen
94 11 , tr remark Drina
Drradottd, NC 28277
704-906-8898
r wer?@ni rr ury-ass es.r;om
APPROACH AND METHODOLOGY
We understand the City is seeking a qualrfi d consulting firm to conduct on independent stud
and analysis of the City's current fuel management software r (Gasboy. C Fuel Management
Package for` Wr`ndotew PCCFN.sxe V1,p 17 12), We understand the existing system is
antiquated and dries a port lots of collecting mileage at the fuel island The City rs now
keeping trek of mileage separately by manually checking odometers,
We understand the City has 444 pieces of vehicles and pieces of equipment/vehicles and
tries are 150 employees who use vehicles, `her are also 20 external customers that use
the City fuel site to accesss CNG and pay with a credit card,
We understand all fueling is centralized at the corporation yard. There are six punips with two
dispensers per pump (,six diesel and six unleaded) as well as two CNG drsp ns rs and two
LNG dispensers,
Below give, provide details on our proposed approach and work plait.
APPROACH
Our approach to conducling the stud 'will be inclusive, interactive, and r'nsults onenf d, Our
ultimate coal as management Consultants is for our clients to improve their fleet management
practices by taking action on our recommendations,airy endations, This requires that the r cornniarydations be
practical and appropnate to the challenges and opportunities facing a specific organization at
Proposal to Provide
Fleet Management C'onstdting Services
specific point in tirire It also requires that stakeholders not oraly Understand the analytical
methods findings, and conclusions on which such recommendations are based, but actually
take ownership of proposed organizational, policy. business process, and other changes, This
requires, in turn, that we interact with and secure the confidence of senior management and
where appropriate other stakeholder groups on a project We this one, We typically accomph5h
this through regular progress reports and periodic progress meetings rn which we grief
appropriate officials and stakeholders on project progress: relevant best management ement practices♦and preliminary findings. conclusions; and recommendations,
Our project management approach starts with one of the owners of the firm serving in a
Principal in Charge role. In this role, our principal is ultimately, responsible to the client: for
successful completion of the protect, for meeting our contractUal obligations, and for maintaining
our consistent history of providing high quality services, On all projects we also have a staff
person serve the role of Project Manager, This role is responsible for corn mumcating with our
client,; coordinating activities with project team members, and adherence to agreed upon
schedules, We also utilize a commercial protect management software program that our staff
arses to keep protects on track and to monitor budgets.
We will start the project with a project startup consultation meeting whose primary goal will be to
develop an initial understanding of the City's fleet management and operating practices,
Secondary objectives will be to introduce the key members of the City and MercuryAssociates'
project teams to one another and to confirm both parties" understanding of key study
paramet rs, including but not necessarily limited to, project goals and objectives~ scope,
tirneline, critical success factors, and deliverables, We also will discuss logistical procedures
such as key points of contact and work location when members of OUr project team are oil site
QUALITY C
Mercury Associates approach to ensuring the quality of our consulting work includes several
components of which we would like the proposal evaluation tears to be aware:
• Employing experienced professionals, Cour Professional staff consists almost entirely of
experienced fleet management and management consulting professionals, the majority of
whom have td to 30 or snore years of experience in the field. Unlike some large
management consulting firma, we do not employ inexperienced or ""generalist" Consultants
who are n,iore likely to be educated by, than to educate. their clients in challenges and
intricacies of managing and operating a fleet,,
• Standardized methodologies and analytical fools. Having conducted fleet management
studies for as many as 30 years, f emUry's professionals do not "reinvent the wheel" eery,
time they conduct, a new client engagement, We have a number of standardized,
methodologies and arralybcal tools that enable us to conduct many consulting tasks with, a
high degree of efficiency, consistency, and accuracy, These include quantitative data
collection templates and documentary material request checklists. a comprehensive set of
flea management function definitions, objective statements, best practrce examples, and
key performance indicators standardized report and presentation formats tin Microsoft Word
and Powe-Point) software for conducting fleet managerrtent program activity-based cost.
analyses and developing charge-back rates, software for determining optimal vehicle
replacement cycles using life cycle costing techniques" software for developing multi-year
fleet replacement plans and quantifying costs and funding rea urrements under several
different capital financing ng approachhes, including a fleet replacement reserve or revolving
v ,�
Proposal to Provide
Fleet Managernent Consuffing Services
fund and orrstol ri ed cornmercr l off-they-shelf oh-line r rrestior n ire softroare for conducting
surveys of vehicle users lin conducting fleet n htdroinl studies),
Quality contr f review of project deliverables. Progress reports are submitted monthly,
so that any unexpected delays in the completion of individual project work plan tasks can b
flagged and the:o uses of and mitigation of thea can be discussed with the client, Progress
ress
reviews of analytical work typically are accomplished by means of face-to-face dor 'FedEx
presentations, All project deliverables are reviewed by the project director before being
subrnitted to the client All deliverables are submitted electromc lly to the client in draft fora
for review and comment, and revisions thereto are made on the basis of avrrlten feedback
received from the client whenever practicable,,
WORK PLAN
Below we have provided details on carr proposed work rk plan for this project.
Task In th Analysis of Current and rsf Fuel Management Needs
We propose to provide a needs and re uvements assessment to identify the current and future
fuel management needs of the City by reviewing CUrrent fuel policies, operational procedures,
nfrastrtrcture and management systems and providing comparison to accepted industry
standards for public sector fuel management operations
Task 2— Develop 3 Charts - l Transactions, Bllll n , and Management)
In this task we will conduct a data review and-dnalysls of PCCFN — GASBOY fuel m nag n ent
database concentrating on identifying data availability, integrity and included attributes,
We will extract and categorize data frorn the City provided GASBOY database for inclusion in
three reports, or charts to identify;
t. Detailed fuel transaction report by unit including these attributes,
a. Vehicle Department
at
b. Vehicle ICT
c; Fueling Location
d. Transaction NUmber
e, Date'of transaction
f "Time of transaction
g, Employee Number
h.:- Fuel quantity dispensed
i; if where available... recorded odometer or, hour meter reading will be included in
the report,
ya
Description of department and/or vehicle will be provided where available
Proposal to Provide
Fleet Management Consulting S(,,rvices
Billing detail by deparlment including
a, Department
b, Number of transactions for the period
aTotal number a vehicles fueled for tree period
d, Total quantity dispensed grouped by fuel type by department (summary)
a. Total cast grouped by fuel type (summary) by department
Management nage ent Repeat including
a. Fuel Consumption and test comparison by Department
It, verap fuel consumption by vehicle class (classes to be determined)
Comparative MPG outliers by class (top t 0% lowest 10% to conduct diagnostic
and validation aback ars mfleage and consumption details)
d: Up to p additional performance metrics to be developed based on management
requirements (dependent on avadable data to produce analysis)
Furthermore we propose to compare subsets of sample transactions between the G S O"
and RTA databases to Identify consistency of data capture and Identify a baseline for
reconciliation and validabon errors of imported transactions
We as urge that all repaired data elements to produce the above proposed reports, charts and
analysis are available in electronic format and will be provided by the City from the source
systems ( p t, RTA and other data sources) as either a copy of the production databases, or as
a complete extract into Excel format of the required datasets;
Task Recommend Compatible Foal Management Software
We propose to use the needs assessment completed in Task "l to provide an overview and
ratings- of the existing fuel s stern or recommendations for replacement of the existing fuel
management system, to support existing and future needs and meet compatibility (where
possible) with existing infrastructure, operations and fleet management software, The reviews
will include systems overview, features and functions, budgetary oast ranges and
implementation concerns of rip to 3 available Reel management systems
I <
EXHIBIT B
SCHEDULE
PRELIMINARY IMPLEMENTATION PLAN
Task Name Start Date Finish Resource
1 Contract Award/NTP Wed 8/20/14 Wed 8/20/14 City
2 Agreement Execution Wed 8/20/14 Wed 8/20/14 Both
3 Kick Off Meeting Wed 8/27/14 Wed 8/27/14 Both
4 Develop initial project program Fri 8/29/14 Fri 8/29/14 Both
5 Obtain necessary Database information Tue 9/2/14 Tue 9/2/14 City
Task 1 Analysis of current and forecasted
6 fuel management needs Tue 9/2/14 Tue 9/2/14 Mercury
Task 2 Develop 3 charts: Fuel
7 Transactions, Billing,Management Thurs 9/11/14 Thurs 9/11/14 Mercury
Task 3: Recommend Compatible Fuel
8 Management Software Mon 9/15/14 Mon 9/15/14 Mercury
Provide analysis of findings and
9 recommendations Mon 9/29/14 Mon 9/29/14 Mercury
EXHIBIT "C
COST PROPOSAL TO PROVIDE
FLEET MANAGEMENT
CONSULTING SERVICES
(Project No.Q6201411)
To the
City of Redlands
Quality of Life Department
01ty Orw,w
"ACHY119WORKS"
-gem
June 26, 2014
i
,1, AQVL
MERCURY
u
,P INC,
Exhibit "C" Page 1 of 2
t-
t r r'l it tt err COST PROPOSAL T PROVIDE
Fleet Management Consulting Services
COSTPROPOSAL
Our proposed firm fixed price for conducting this project is $28,800 inclusive of all professional
fees and travel expenses. This proposed budget is based on an average professional billing
rate of $180 per hour, whish is a blend of the rates for the staff assigned to this project. The
breakdown of the budget by task is provided bel m r
180f
...240 $7,200..
�3 v40
$7,200,, .,
Totals 160 $28,800 k
We are prepared to start on this project immediately and estimate that a draft report will take 60
to 90 days to complete after all requested information and data have been received, please
mote this timeline assumes that we receive access to individuals for interviews:and meetings in
a timely manner. We propose to invoice the City on a monthly basis for actual work completed
and expenses incurred, We will provide appropriate details on study progress to support each>
invoice submitted.
OPTIONAL VIS
As indicated previously in this proposal, Mercury Associates is the preeminent fleet
management consulting firm in North America, As such, we can provide the City of Redlands
with a wide-array of services that will lower costs and/or improve ve servioa 1evs1s, Sample s5vices
that the City may be interested in include
. Fleet Rightsizing, Govemment fleets tend to'creep*upwards in size overtime, Reversing
this tread can produce significant savings, For instances our project for the State of
California in 2011 produced a redaction in flet size of f and annual savings of tg
million, For a fleet the size of the City's a rightsizing project would cost $45,000, Based
on our experience doing dozens of these type of projects„ we aro confidant that savings
would be 5 tires this project budget,
.- Fleet Replacement Plan, In our experience, organizations tend to keep their vehicles'too
long. There are defined points a replacing vehicles produces the lowest cost of
ownership for an organization Completing a life-cycle cost analysis and fleet
replacement plan for the City would cost $40,000 and result in millions in savings over
the life of vehicles in the fteet.
Bost Practices Review, There aro defused I practices industry best management
practices that produoe the optimal r s fats for government fleet organizations, In orris;
these practices produce higher service levels and lower costs. In this task we would
conduct an assessment of the City's fleet program across all major functional areas and
recommend changes that would produce material improvements ments in fleet program
performance, For sire City, a study of this type would_ cost$25,000.
Exhibit "C" Rage 2 of
EXHIBIT "D"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer. except the State, shall secure the payment of compensation in one or more of
the following ways:
(a) By being insured against liability to pay compensation by one or more insurers
duly authorized to write compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self-insure. either as an individual employer. or as one employer in a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self-insure and to pay any compensation that
may become due to his or her employees.
CHECK ONE
Xploy
f am aware of the provisions of Section 3700 of the Labor Code which requires every
er to be insured against liability for Workers' Compensation or to undertake self-
insurance in accordance with the provisions of that Code. and i will comply with such provisions
before commencing the performance of the work and activities required or permitted under this
Agr ei ent. (Labor Code §1861).
affirm that at all times, in performing the work and activities required or permitted under
ii Agreement, 1 shall not employ any person in any manner such that I become subject to the
workers' compensation laws of California. However, at any time, if I employ any person such
that I become subject to the %vorkers' compensation laws of California, immediately I shall
provide the City with a certificate of consent to self-insure, or a certification of workers'
compensation insurance.
I certify under penalty of perjur)- under the laws of the State of California that the information
and representations made in this certificate are true and correct.
Mercury Associ,1'ts. Inc. Date: 4&0 X
q.
adv Omen, "enior ice President
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