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HomeMy WebLinkAboutHarris & Associates Inc; 2026-03-17; Page 1 City Attorney Approved Version 9/3/2025 AGREEMENT FOR ASSESSMENT DISTRICT ADMINISTRATION AND ENGINEERING SERVICES HARRIS & ASSOCIATES, INC. THIS AGREEMENT (“Agreement”) is made and entered into as of the ______________ day of _________________________, 20___, by and between the City of Carlsbad, California, a municipal corporation ("City") and Harris & Associates, Inc., a California corporation ("Contractor" or “Harris”). RECITALS A. City requires the professional services of an engineering firm that is experienced in providing assessment district administration and engineering services. B. Contractor has the necessary experience in providing assessment district administration and engineering services. C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such services. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained in this Agreement, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services ("Services") that are defined in attached Exhibit "A," which is incorporated by this reference in accordance with this Agreement’s terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of three (3) years from the date first above written. The parties may extend the Agreement for up to an additional two (2) years. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the Agreement term shall not exceed ninety- nine thousand five hundred thirty dollars ($99,530), with the amount for each Agreement year as further described in Exhibit “A” and subject to the annual appropriation of funds by the City Council. If the Agreement is extended, the fee payable for the Services will be adjusted for inflation as further described in Exhibit “A” and subject to the annual appropriation of funds by the City Council. No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. Payment terms are Net 30 unless otherwise provided in Exhibit “A” or agreed to in writing by the parties. City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A."             Page 2 City Attorney Approved Version 9/3/2025 Incremental payments, if applicable, should be made as outlined in attached Exhibit "A." 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under the control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to this Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At City’s election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to defend (with counsel approved by City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described in this Agreement caused by any negligence, recklessness, or willful misconduct of Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under California Civil Code Section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated in this Agreement, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed Contractor’s proportionate percentage of fault.          Page 3 City Attorney Approved Version 9/3/2025 The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or on behalf of an injured employee under City’s self-administered workers’ compensation program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal and advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to City.          Page 4 City Attorney Approved Version 9/3/2025 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 If Contractor maintains higher limits than the minimums shown above, City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to City. 10.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City.          Page 5 City Attorney Approved Version 9/3/2025 15. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are: For City: For Contractor: Name Roxanne Muhlmeister Name Diana Sheng Title Assistant Finance Director Title Project Manager Dept Finance Department Address 101 Progress, Suite 250 CITY OF CARLSBAD Irvine CA 92618 Address 1635 Faraday Avenue Phone 949-536-2514 Carlsbad CA 92008 Email Diana.Sheng@WeAreHarris.com Phone 442-339-2417 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code. Yes ☐ No ܈ If yes, list the contact information below for all individuals required to file: Name Email Phone Number 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.          City Attorney Approved Version 10/23/2025 Page 6 19. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets. 20. DISCRIMINATION, HARASSMENT, AND RETALIATION PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation. 21. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 22. TERMINATION In the event of Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 23. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this          City Attorney Approved Version 10/23/2025 Page 7 Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 24. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code Sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 25. JURISDICTION AND VENUE This Agreement shall be interpreted in accordance with the laws of the State of California without regard to, or application of, choice of law rules or principles. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 26. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 27. THIRD PARTY RIGHTS Nothing in this Agreement should be construed to give any rights or benefits to any party other than City and Contractor. 28. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. This Agreement may be executed in counterparts.          City Attorney Approved Version 10/23/2025 Page 8 29. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. Executed by Contractor this___________ day of _______________________, 20____. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California Harris & Associates, Inc., a California corporation By: By: (sign here) Zach Korah, Finance Director Donna Segura, Director, Municipal & District Finance (print name/title) ATTEST: By: SHERRY FREISINGER, City Clerk (sign here) By: Deputy / Assistant City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: _____________________________ Deputy / Assistant City Attorney            ,ĂƌƌŝƐΘƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘„ŝƚLJŽĨĂƌůƐďĂĚƐƐĞƐƐŵĞŶƚŝƐƚƌŝĐƚĚŵŝŶŝƐƚƌĂƚŝŽŶŶŐŝŶĞĞƌŝŶŐ^ĞƌǀŝĐĞƐϭŽĨϯ ^KWK&^Zs/^ ^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ dĂƐŬϭͲ<ŝĐŬŽĨĨDĞĞƚŝŶŐĂŶĚŶŶƵĂů>ĞǀLJdŝŵĞůŝŶĞ ,ĂƌƌŝƐǁŝůůĐŽŽƌĚŝŶĂƚĞĂŶĂŶŶƵĂůŬŝĐŬͲŽĨĨŵĞĞƚŝŶŐǁŝƚŚŝƚLJƐƚĂĨĨƚŽƌĞǀŝĞǁƚŚĞĂŶŶƵĂůůĞǀLJƚŝŵĞůŝŶĞĂŶĚĚŝƐĐƵƐƐĂŶLJĐŚĂŶŐĞƐ ŝŶƚŚĞĂŶŶƵĂůĂĚŵŝŶŝƐƚƌĂƚŝŽŶƉƌŽĐĞƐƐ͘dŚŝƐǁŝůůŝŶĐůƵĚĞĂĚŝƐĐƵƐƐŝŽŶŽĨĂŶƚŝĐŝƉĂƚĞĚŵĂŝŶƚĞŶĂŶĐĞĞdžƉĞŶƐĞƐĨŽƌƚŚĞĐŽŵŝŶŐ LJĞĂƌĂŶĚƌĞǀŝĞǁŽĨƌĞĐĞŶƚŽƌƉĞŶĚŝŶŐůĞŐŝƐůĂƚŝǀĞĐŚĂŶŐĞƐ͘ ĞůŝǀĞƌĂďůĞ͗ĞƚĂŝůĞĚƐĐŚĞĚƵůĞŽĨƚĂƐŬƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞĂŶŶƵĂůƵƉĚĂƚĞƉƌŽĐĞƐƐ͕ŝŶĐůƵĚŝŶŐĚĂƚĞƐĨŽƌƚŚĞƐƵďŵŝƚƚĂůŽĨĚƌĂĨƚ ĚŽĐƵŵĞŶƚƐĨŽƌŝƚLJƌĞǀŝĞǁĂŶĚƐƵďŵŝƚƚĂůĚĂƚĞƐĨŽƌĨŝŶĂůĚŽĐƵŵĞŶƚƐďĂƐĞĚƵƉŽŶƚŚĞŝƚLJůĞƌŬ͛ƐƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶŽĨŽƵŶĐŝůĂŐĞŶĚĂƉĂĐŬĂŐĞƐĂŶĚƉƵďůŝĐĂƚŝŽŶĚĂƚĞƐ͘ dĂƐŬϮͲhƉĚĂƚĞWĂƌĐĞůĂƚĂďĂƐĞͬ^ƉƌĞĂĚƐŚĞĞƚƐ ,ĂƌƌŝƐǁŝůůƵƉĚĂƚĞƚŚĞĚĂƚĂďĂƐĞĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚďĂƐĞĚŽŶŝŶĨŽƌŵĂƚŝŽŶƐŚŽǁŶŽŶƚŚĞůĂƚĞƐƚŽƵŶƚLJdĂdžZŽůůĂŶĚƐƐĞƐƐŽƌ͛Ɛ ĚĂƚĂ͘,ĂƌƌŝƐǁŝůůƵƚŝůŝnjĞŽƚŚĞƌĚĂƚĂƐŽƵƌĐĞƐƚŽƉƌŽǀŝĚĞŵŽƌĞĐƵƌƌĞŶƚŝŶĨŽƌŵĂƚŝŽŶǁŚĞŶĂǀĂŝůĂďůĞ͘tŚĞƌĞƌĞƋƵŝƌĞĚƚŽ ĂĐĐƵƌĂƚĞůLJƌĞĨůĞĐƚƚŚĞĐƵƌƌĞŶƚĚĞǀĞůŽƉŵĞŶƚƐƚĂƚƵƐŽĨƉĂƌĐĞůƐƉƌŝŽƌƚŽƚŚĞĐĂůĐƵůĂƚŝŽŶŽĨƚŚĞĂŶŶƵĂůůĞǀLJ͕,ĂƌƌŝƐ͛ƉƌŽũĞĐƚƚĞĂŵ ǁŝůůƌĞƐĞĂƌĐŚŝƚLJďƵŝůĚŝŶŐƉĞƌŵŝƚĂŶĚĞƌƚŝĨŝĐĂƚĞŽĨKĐĐƵƉĂŶĐLJĚĂƚĂ͘dŚŝƐǁŝůůƉƌŽǀŝĚĞƚŚĞŵĂdžŝŵƵŵƌĞǀĞŶƵĞƐƚŽƚŚĞŝƚLJ͘/Ŷ ƵƉĚĂƚŝŶŐƚŚĞƉĂƌĐĞůĚĂƚĂďĂƐĞ͕,ĂƌƌŝƐŵĂŝŶƚĂŝŶƐĂĐůĞĂƌ͞ĂƵĚŝƚ͟ƚƌĂŝů;ƉĂƌĞŶƚͬĐŚŝůĚƌĞůĂƚŝŽŶƐŚŝƉͿĂŶĚǁŝůůƉƌŽǀŝĚĞĂƐƵŵŵĂƌLJ ƌĞƉŽƌƚŽĨƉĂƌĐĞůĐŚĂŶŐĞƐŝŶĞĂĐŚĚŝƐƚƌŝĐƚĨƌŽŵƚŚĞƉƌŝŽƌLJĞĂƌ͘ŶLJ͞ŽǀĞƌͲƌŝĚĞƐ͟ŽĨƚŚĞŽƵŶƚLJƐƐĞƐƐŽƌ͛ƐĚĂƚĂǁŝůůĂůƐŽďĞ ƚƌĂĐŬĞĚĂŶĚŝŶĐůƵĚĞĚŝŶƚŚĞƐƵŵŵĂƌLJƌĞƉŽƌƚƐƐŽƚŚĂƚƚŚĞƌĞŝƐĂĐůĞĂƌƚƌĂŝůŽĨƚŚĞďĂƐŝƐƚŚĂƚǁĂƐƵƐĞĚĨŽƌƚŚĞĐĂůĐƵůĂƚŝŽŶŽĨ ƚŚĞĂŶŶƵĂůĂƐƐĞƐƐŵĞŶƚŽŶƉĂƌĐĞůƐ͘ ĞůŝǀĞƌĂďůĞ͗ƵƌƌĞŶƚĚĂƚĂďĂƐĞĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚ͕ǁŚŝĐŚĐĂŶďĞƉƌŽǀŝĚĞĚƚŽƚŚĞŝƚLJŝŶĂǀŝĞǁĂďůĞĨŽƌŵĂƚƚŽĨĂĐŝůŝƚĂƚĞƉĂƌĐĞů ůŽŽŬƵƉƐ͘dŚĞĚĂƚĂďĂƐĞǁŝůůďĞƐĞĂƌĐŚĂďůĞďLJďŽƚŚWEĂŶĚƐŝƚƵƐĂĚĚƌĞƐƐ͘ZĞƐĞĂƌĐŚĨŽƌĂŶLJŵŝƐƐŝŶŐƉĂƌĐĞůĚĂƚĂ;ĂĐƌĞĂŐĞ͕ ůĂŶĚƵƐĞ͕ĞƚĐ͘Ϳ͘WĂƌĐĞůĐŚĂŶŐĞƌĞƉŽƌƚĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚƚŚĂƚƉƌŽǀŝĚĞƐĂƐƵŵŵĂƌLJŽĨƉĂƌĐĞůĐŚĂŶŐĞƐĂŶĚƵƉĚĂƚĞƐ͘ dĂƐŬϯͲŶŶƵĂůƵĚŐĞƚWƌĞƉĂƌĂƚŝŽŶ^ƵƉƉŽƌƚ ,ĂƌƌŝƐǁŝůůĂƐƐŝƐƚƚŚĞŝƚLJŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨĂŶŶƵĂůďƵĚŐĞƚƐĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚ͘dŚŝƐǁŝůůŝŶĐůƵĚĞƌĞǀŝĞǁŝŶŐŚŝƐƚŽƌŝĐĂůĐŽƐƚƐ͕ ƉƌŽũĞĐƚĞĚĨƵŶĚďĂůĂŶĐĞƐ͕/WďƵĚŐĞƚƐĂŶĚƌĞƉůĂĐĞŵĞŶƚͬƌĞŚĂďŝůŝƚĂƚŝŽŶŶĞĞĚƐ͘dŚŝƐǁŝůůĂůůŽǁƚŚĞŝƚLJƚŽĞǀĂůƵĂƚĞƚŚĞ ƉŽƚĞŶƚŝĂůŶĞĞĚĨŽƌĨƵƚƵƌĞŝŶĐƌĞĂƐĞƐƚŽĚĞƚĞƌŵŝŶĞŝĨWƌŽƉŽƐŝƚŝŽŶϮϭϴƉƌŽĐĞĞĚŝŶŐƐŵĂLJďĞƌĞƋƵŝƌĞĚ͘ ĞůŝǀĞƌĂďůĞ͗ƵĚŐĞƚƐĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚ͘ dĂƐŬϰͲWƌĞƉĂƌĞŶŶƵĂůŶŐŝŶĞĞƌ͛ƐZĞƉŽƌƚƐ ŶŶŶƵĂůŶŐŝŶĞĞƌ͛ƐZĞƉŽƌƚǁŝůůďĞƉƌĞƉĂƌĞĚĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚďĂƐĞĚƵƉŽŶƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ>ĂŶĚƐĐĂƉŝŶŐĂŶĚ >ŝŐŚƚŝŶŐĐƚŽĨϭϵϳϮĂŶĚƌƚŝĐůĞy///ŽĨƚŚĞĂůŝĨŽƌŶŝĂŽŶƐƚŝƚƵƚŝŽŶ͘dŚĞƐĞƌĞƉŽƌƚƐǁŝůůďĞƉƌĞƉĂƌĞĚƵŶĚĞƌƚŚĞĚŝƌĞĐƚŝŽŶŽĨ ƚŚĞƐƐĞƐƐŵĞŶƚŶŐŝŶĞĞƌĂƐƚŚĞƌĞŐŝƐƚĞƌĞĚƉƌŽĨĞƐƐŝŽŶĂůĞŶŐŝŶĞĞƌƌĞƐƉŽŶƐŝďůĞĨŽƌƐŝŐŶŝŶŐĞĂĐŚƌĞƉŽƌƚ͘ ĞůŝǀĞƌĂďůĞ͗ŶƵƉĚĂƚĞĚŶŐŝŶĞĞƌ͛ƐZĞƉŽƌƚĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚƉƌĞƉĂƌĞĚƵŶĚĞƌƚŚĞĚŝƌĞĐƚŝŽŶŽĨƚŚĞƐƐĞƐƐŵĞŶƚŶŐŝŶĞĞƌ;ƚǁŽ ĐŽƉŝĞƐŽĨƚŚĞĨƵůůƌĞƉŽƌƚƐǁŝƚŚƐƐĞƐƐŵĞŶƚZŽůůƐĂŶĚŽŶĞĞůĞĐƚƌŽŶŝĐĐŽƉLJŽĨƚŚĞƌĞƉŽƌƚƐͿ͘ dĂƐŬϱͲWƌĞƉĂƌĂƚŝŽŶŽĨƉƉƌŽǀĂůŽĐƵŵĞŶƚƐ ,ĂƌƌŝƐǁŝůůƉƌĞƉĂƌĞƌĞƋƵŝƌĞĚƌĞƐŽůƵƚŝŽŶƐ͕ŝƚLJŽƵŶĐŝůƌĞƉŽƌƚƐĂŶĚŽƚŚĞƌĚŽĐƵŵĞŶƚƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞĂŶŶƵĂůƌĞŶĞǁĂůŽĨƚŚĞ ŵĂŝŶƚĞŶĂŶĐĞĂŶĚƐƉĞĐŝĂůƐĞƌǀŝĐĞƐĚŝƐƚƌŝĐƚƐ͘dŚĞƐĞǁŝůůďĞƉƌĞƉĂƌĞĚŝŶĚƌĂĨƚĨŽƌŵĨŽƌƌĞǀŝĞǁďLJŝƚLJƐƚĂĨĨŝŶĐůƵĚŝŶŐƚŚĞŝƚLJ ƚƚŽƌŶĞLJ͘ůůĚŽĐƵŵĞŶƚƐǁŝůůďĞƉƌĞƉĂƌĞĚŝŶĂĚǀĂŶĐĞŽĨƚŚĞŝƚLJůĞƌŬ͛ƐĚĂƚĞĨŽƌĂŐĞŶĚĂŝƚĞŵƐ͘ ĞůŝǀĞƌĂďůĞ͗ZĞǀŝĞǁŽĨŝƚLJŽƵŶĐŝůƌĞƐŽůƵƚŝŽŶƐ͕ƐƚĂĨĨƌĞƉŽƌƚƐ͕ŶŽƚŝĐĞƐĂŶĚĚŽĐƵŵĞŶƚƐŶĞĞĚĞĚĨŽƌƚŚĞĂŶŶƵĂůƌĞŶĞǁĂůŽĨƚŚĞ ĚŝƐƚƌŝĐƚƐ͘ džŚŝďŝƚ         ,ĂƌƌŝƐΘƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘„ŝƚLJŽĨĂƌůƐďĂĚƐƐĞƐƐŵĞŶƚŝƐƚƌŝĐƚĚŵŝŶŝƐƚƌĂƚŝŽŶŶŐŝŶĞĞƌŝŶŐ^ĞƌǀŝĐĞƐϮŽĨϯ dĂƐŬϲͲDĞĞƚŝŶŐƚƚĞŶĚĂŶĐĞ ,ĂƌƌŝƐ͛ƌĞƉƌĞƐĞŶƚĂƚŝǀĞǁŝůůĂƚƚĞŶĚƵƉƚŽƚǁŽŝƚLJŽƵŶĐŝůŵĞĞƚŝŶŐƐĚƵƌŝŶŐƚŚĞĂŶŶƵĂůƵƉĚĂƚĞƉƌŽĐĞƐƐĂƚƚŚĞƌĞƋƵĞƐƚŽĨŝƚLJ ƐƚĂĨĨ͘ ĞůŝǀĞƌĂďůĞ͗ƚƚĞŶĚƚǁŽŝƚLJŽƵŶĐŝůŵĞĞƚŝŶŐƐ͘ dĂƐŬϳͲWƌĞƉĂƌĞĂŶĚ^ƵďŵŝƚŶŶƵĂůƐƐĞƐƐŵĞŶƚƐ ŽŵƉŝůĞĂŶĚƚƌĂŶƐŵŝƚĂĐŽŵƉůĞƚĞůŝƐƚŽĨƚŚĞĂƐƐĞƐƐŵĞŶƚĨŽƌĞĂĐŚĂƐƐĞƐƐŽƌ͛ƐƉĂƌĐĞůƚŽƚŚĞŽƵŶƚLJ͘^ŝŶĐĞƚŚĞƌĞĂƌĞƐĞƉĂƌĂƚĞ ĨƵŶĚŶƵŵďĞƌƐĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚ͕ƐĞƉĂƌĂƚĞƐƵďŵŝƚƚĂůƐǁŝůůďĞŵĂĚĞĨŽƌĞĂĐŚůĞǀLJ͘,ĂƌƌŝƐǁŝůůƌĞƐĞĂƌĐŚĂŶLJĞdžĐĞƉƚŝŽŶƐ͕ƌĞƐŽůǀĞ ĚŝƐĐƌĞƉĂŶĐŝĞƐ͕ƌĞƐƵďŵŝƚĚĂƚĂƚŽŽƵŶƚLJĂŶĚĐŽŶĨŝƌŵĂĐĐĞƉƚĂŶĐĞŽĨƚŚĞƵƉĚĂƚĞĚůĞǀŝĞƐƉƌŝŽƌƚŽƚŚĞĚĞĂĚůŝŶĞ͘ ĞůŝǀĞƌĂďůĞ͗ŶŶƵĂůůĞǀLJƐƵďŵŝƚƚĂůĚŽĐƵŵĞŶƚƐĂŶĚĚĂƚĂ͘hƉĚĂƚĞĚƉĂƌĐĞůĚĂƚĂƌĞĨůĞĐƚŝŶŐĐŚĂŶŐĞƐƌĞĨůĞĐƚĞĚŝŶĨŝŶĂůůĞǀLJ ƐƵďŵŝƚƚĂů͘>ĞǀLJƐƵďŵŝƚƚĂůƐƵŵŵĂƌLJƌĞƉŽƌƚƐŚŽǁŝŶŐĨŝŶĂůĂŵŽƵŶƚƚŽďĞƉůĂĐĞĚŽŶƚŚĞƉƌŽƉĞƌƚLJƚĂdžƌŽůůĨŽƌĐŽůůĞĐƚŝŽŶ͕ĂŶĚ ĚĞƐĐƌŝƉƚŝŽŶŽĨĂŶLJǀĂƌŝĂŶĐĞŝŶƌĞƉŽƌƚƐ;ŝ͘Ğ͘ƉƵďůŝĐůLJŽǁŶĞĚŽƌ^ƉĂƌĐĞůƐͿ͘ dĂƐŬϴͲ,ĂŶĚŝůůŝŶŐ ĞƌƚĂŝŶƉĂƌĐĞůƐǁŝƚŚŝŶƚŚĞŝƚLJĐĂŶŶŽƚŚĂǀĞĐŚĂƌŐĞƐƉůĂĐĞĚŽŶƚŽƚŚĞƉƌŽƉĞƌƚLJƚĂdžƌŽůůƐĚƵĞƚŽƚŚĞŽǁŶĞƌƐŚŝƉŽĨƚŚĞƉĂƌĐĞů͘ dŚĞƐĞŵĂLJŝŶĐůƵĚĞƉƵďůŝĐůLJŽǁŶĞĚƉĂƌĐĞůƐ͕ĐŽŵŵŽŶĂƌĞĂƉĂƌĐĞůƐŽƌƉĂƌĐĞůƐǁŝƚŚůŝƚƚůĞŽƌŶŽĂƐƐĞƐƐĞĚǀĂůƵĞ͘ ĞůŝǀĞƌĂďůĞ͗WƌĞƉĂƌĞĂůŝƐƚŽĨƉĂƌĐĞůƐƚŽďĞŚĂŶĚďŝůůĞĚĨŽƌĞĂĐŚŽĨƚŚĞƐĞƌǀŝĐĞƐ͘dŚŝƐůŝƐƚǁŝůůďĞƉƌŽǀŝĚĞĚƚŽƚŚĞŝƚLJĨŽƌ ƌĞǀŝĞǁĂŶĚĐŽŵŵĞŶƚĂŶĚǁŝůůĐŽŶƚĂŝŶƐƵĐŚŝŶĨŽƌŵĂƚŝŽŶƐŽƚŚĂƚƚŚĞŝƚLJĐĂŶŐĞŶĞƌĂƚĞĂŶĚĚĞůŝǀĞƌĂŚĂŶĚďŝůůƚŽƚŚŽƐĞ ƉĂƌƚŝĐƵůĂƌƉĂƌĐĞůƐ͕ŽƌĂƚƚŚĞŝƚLJ͛ƐƌĞƋƵĞƐƚ͕,ĂƌƌŝƐĐĂŶƉƌĞƉĂƌĞƚŚĞŚĂŶĚďŝůůƐĂŶĚŝƐƐƵĞƚŚĞŵĂŶŶƵĂůůLJŽŶĂƐĐŚĞĚƵůĞƐŝŵŝůĂƌ ƚŽƚŚĞŽƵŶƚLJ͛ƐƉƌŽƉĞƌƚLJƚĂdžƐĐŚĞĚƵůĞ͘ dĂƐŬϵͲZĞƐƉŽŶĚƚŽWƌŽƉĞƌƚLJKǁŶĞƌƐ͛/ŶƋƵŝƌŝĞƐ ,ĂƌƌŝƐǁŝůůƉƌŽǀŝĚĞĂƚŽůůͲĨƌĞĞƚĞůĞƉŚŽŶĞŶƵŵďĞƌƚŽďĞŝŶĐůƵĚĞĚŽŶƚŚĞŽƵŶƚLJ͛ƐƉƌŽƉĞƌƚLJƚĂdžďŝůůƐ͘,ĂƌƌŝƐǁŝůůƌĞƐƉŽŶĚƚŽ ƉƌŽƉĞƌƚLJŽǁŶĞƌŝŶƋƵŝƌĞƐĂŶĚŵĂŝŶƚĂŝŶĂůŽŐŽĨĂůůĐĂůůƐƌĞĐĞŝǀĞĚ͕ƚŚĞŶĂƚƵƌĞŽĨƚŚĞĐĂůůĂŶĚĂŶLJƌĞĐŽŵŵĞŶĚĞĚĂĐƚŝŽŶƐ͕ĂŶĚ ƉƌŽǀŝĚĞƚŚĞŝƚLJǁŝƚŚĂŵŽŶƚŚůLJƐƵŵŵĂƌLJŽĨƚŚĞĐĂůůƐƌĞĐĞŝǀĞĚ͘ůůĐĂůůƐǁŝůůďĞƌĞƚƵƌŶĞĚǁŝƚŚŝŶŽŶĞďƵƐŝŶĞƐƐĚĂLJŝĨŶŽƚ ĂŶƐǁĞƌĞĚĂƚƚŚĞƚŝŵĞŽĨƚŚĞĐĂůů͘,ĂƌƌŝƐǁŝůůƉƌŽǀŝĚĞďŝůŝŶŐƵĂůƐƵƉƉŽƌƚŝĨƌĞƋƵĞƐƚĞĚ͘ ĞůŝǀĞƌĂďůĞ͗DŽŶƚŚůLJƌĞƉŽƌƚŽŶŝŶƋƵŝƌŝĞƐĂŶĚĐĂůůĂĐƚŝǀŝƚLJ͘ ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐŽĨƚŚĞŝƚLJ •ŝƚLJƚŽĚĞƐŝŐŶĂƚĞĂƌĞƐƉŽŶƐŝďůĞŽĨĨŝĐŝĂůƚŽŵĂŶĂŐĞĂŶĚĐŽŽƌĚŝŶĂƚĞƚŚĞƉƌŽũĞĐƚ͘ •DĂŬĞĂǀĂŝůĂďůĞƚŽ,ĂƌƌŝƐĂůůĂǀĂŝůĂďůĞĚĂƚĂ͕ŝŶĨŽƌŵĂƚŝŽŶ͕ƌĞƉŽƌƚƐ͕ŵĂƉƐ͕ƉůĂŶƐ͕ƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͕ĐŽƐƚĞƐƚŝŵĂƚĞƐĂŶĚ ŽƚŚĞƌƌĞĂƐŽŶĂďůĞŝŶĨŽƌŵĂƚŝŽŶĨŽƌƚŚĞƉƌŽƉĞƌƉĞƌĨŽƌŵĂŶĐĞĨŽƌ,ĂƌƌŝƐ͛ƐĞƌǀŝĐĞƐ͘ •WƌĞƉĂƌĞĂůůƌĞƐŽůƵƚŝŽŶƐĂŶĚŶŽƚŝĐĞƐŽĨƉƵďůŝĐŚĞĂƌŝŶŐƐŽƌŽƚŚĞƌŵĞĞƚŝŶŐƐƚŽďĞƉƵďůŝƐŚĞĚďLJŝƚLJůĞƌŬ͕ĂŶĚƐĐŚĞĚƵůĞ ĂŶĚĂŐĞŶŝnjĞĚŝƚLJŵĞĞƚŝŶŐƐĂŶĚŚĞĂƌŝŶŐƐĂƐƌĞƋƵŝƌĞĚďLJůĂǁ͘ •WƌŽǀŝĚĞƋƵĂůŝĨŝĞĚůĞŐĂůĐŽƵŶƐĞůƚŽĚƌĂĨƚůĞŐĂůŶŽƚŝĐĞƐ͕ƌĞǀŝĞǁƌĞƐŽůƵƚŝŽŶƐ͕ĞƚĐ͕͘ĂŶĚƚŽƉƌŽǀŝĚĞůĞŐĂůĂĚǀŝĐĞƚŽŝƚLJ ƐƚĂĨĨĂŶĚƚŽƚŚĞƐƐĞƐƐŵĞŶƚŶŐŝŶĞĞƌĂƐƌĞƋƵŝƌĞĚ͘ WZK:ddD ĂĐŚŽĨŽƵƌƚĞĂŵŵĞŵďĞƌƐŚĂƐĞdžƚĞŶƐŝǀĞĂƐƐĞƐƐŵĞŶƚĞŶŐŝŶĞĞƌŝŶŐĂŶĚƐƉĞĐŝĂůĨŝŶĂŶĐŝŶŐĞdžƉĞƌŝĞŶĐĞ͘dŚĞLJƚŚŽƌŽƵŐŚůLJ ƵŶĚĞƌƐƚĂŶĚƚŚĞƉƌŽǀŝƐŝŽŶƐĂŶĚŝŵƉůŝĐĂƚŝŽŶƐŽĨWƌŽƉ͘Ϯϭϴ͕ĂŶĚŚĂǀĞƉƌŽǀŝĚĞĚƐƉĞĐŝĂůĂŶĚŐĞŶĞƌĂůďĞŶĞĨŝƚĂŶĂůLJƐĞƐĨŽƌĂůů ƚLJƉĞƐŽĨŝŵƉƌŽǀĞŵĞŶƚƐ͘          ,ĂƌƌŝƐΘƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘„ŝƚLJŽĨĂƌůƐďĂĚƐƐĞƐƐŵĞŶƚŝƐƚƌŝĐƚĚŵŝŶŝƐƚƌĂƚŝŽŶŶŐŝŶĞĞƌŝŶŐ^ĞƌǀŝĐĞƐϯŽĨϯ WƌŽũĞĐƚŝƌĞĐƚŽƌʹŽŶŶĂ^ĞŐƵƌĂͲŽŶŶĂŝƐĂŝƌĞĐƚŽƌŝŶŽƵƌDƵŶŝĐŝƉĂůĂŶĚŝƐƚƌŝĐƚ&ŝŶĂŶĐĞƚĞĂŵĂŶĚůĞĂĚƐƚŚĞĚŝƐƚƌŝĐƚ ĨŽƌŵĂƚŝŽŶĂŶĚĂĚŵŝŶŝƐƚƌĂƚŝŽŶƚĞĂŵ͘^ŚĞŚĂƐŽǀĞƌϮϰLJĞĂƌƐŽĨƐƉĞĐŝĂůĚŝƐƚƌŝĐƚĨŽƌŵĂƚŝŽŶĂŶĚĂĚŵŝŶŝƐƚƌĂƚŝŽŶĞdžƉĞƌŝĞŶĐĞ ĐŽŶƐƵůƚŝŶŐƚŽĐŝƚŝĞƐ͕ĐŽƵŶƚŝĞƐ͕ĂŶĚƐƉĞĐŝĂůĚŝƐƚƌŝĐƚƐƚŚƌŽƵŐŚŽƵƚƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͘^ŚĞŚĂƐĂƐƐŝƐƚĞĚĂŐĞŶĐŝĞƐǁŝƚŚƚŚĞ ĂŶĂůLJƐŝƐŽĨƐƉĞĐŝĂůďĞŶĞĨŝƚĨƌŽŵǀĂƌŝŽƵƐƚLJƉĞƐŽĨŝŵƉƌŽǀĞŵĞŶƚƐ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƌƚŝĐůĞy///ŽĨƚŚĞ ĂůŝĨŽƌŶŝĂ^ƚĂƚĞŽŶƐƚŝƚƵƚŝŽŶ;WƌŽƉŽƐŝƚŝŽŶϮϭϴͿ͘^ŚĞŚĂƐĂůƐŽƉĞƌĨŽƌŵĞĚĨŽƌŵĂƚŝŽŶĂŶĚĂŶŶƵĂůĂĚŵŝŶŝƐƚƌĂƚŝŽŶƐĞƌǀŝĐĞƐĨŽƌ DĞůůŽͲZŽŽƐŽŵŵƵŶŝƚLJ&ĂĐŝůŝƚŝĞƐŝƐƚƌŝĐƚƐ͕ĂŶĚǀĂƌŝŽƵƐŽƚŚĞƌĨĞĞĂŶĚƐƉĞĐŝĂůƚĂdžĚŝƐƚƌŝĐƚƐ͘ 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ĂŶĚ&ŝŶĂůŶŐŝŶĞĞƌ͛ƐZĞƉŽƌƚƐ͕ŵĂŶĂŐĞƚŚĞĂŶŶƵĂůůĞǀLJƉƌŽĐĞƐƐ͕ĂŶĚĚŝƌĞĐƚƐƚĂĨĨŝŶƵƉĚĂƚŝŶŐƉĂƌĐĞůĚĂƚĂďĂƐĞƐĂŶĚǀĞƌŝĨLJŝŶŐ ĂƐƐĞƐƐŵĞŶƚĐĂůĐƵůĂƚŝŽŶƐĂŶĚĐŽŽƌĚŝŶĂƚŝŶŐǁŝƚŚƚŚĞŽƵŶƚLJƵĚŝƚŽƌͲŽŶƚƌŽůůĞƌ͛ƐŽĨĨŝĐĞƐĨŽƌĂƐƐĞƐƐŵĞŶƚƐƵďŵŝƚƚĂůƐĨŽƌ ŝŶĐůƵƐŝŽŶŽŶƚŚĞƉƌŽƉĞƌƚLJƚĂdžďŝůůƐ͘DƐ͘^ŚĞŶŐŚĂƐŽǀĞƌϭϵLJĞĂƌƐŽĨĞdžƉĞƌŝĞŶĐĞŵĂŶĂŐŝŶŐWƵďůŝĐ&ŝŶĂŶĐŝŶŐŝƐƚƌŝĐƚƐƵŶĚĞƌƚŚĞ >ĂŶĚƐĐĂƉĞĂŶĚ>ŝŐŚƚŝŶŐĐƚŽĨϭϵϳϮ͕ŝŶĐůƵĚŝŶŐϱLJĞĂƌƐŝŶĂƐƐŝƐƚŝŶŐŝŶƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨƚŚĞŝƚLJ͛Ɛ>>͛Ɛ͘ dŚĞƉƌŽũĞĐƚƚĞĂŵǁŝůůďĞƐƵƉƉŽƌƚĞĚďLJĂĚĚŝƚŝŽŶĂůŵĞŵďĞƌƐŽĨ,ĂƌƌŝƐ͛DƵŶŝĐŝƉĂůнŝƐƚƌŝĐƚ&ŝŶĂŶĐĞƚĞĂŵĂƐŶĞĞĚĞĚ͘ WZKWK^&^ ĂƐĞĚƵƉŽŶŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞƐĐŽƉĞŽĨƐĞƌǀŝĐĞƐĂŶĚŽƵƌĞdžƉĞƌŝĞŶĐĞŽŶƐŝŵŝůĂƌƉƌŽũĞĐƚƐ͕ƚŚĞĨŽůůŽǁŝŶŐŝƐŽƵƌůƵŵƉ ƐƵŵĨĞĞĨŽƌĞĂĐŚĚŝƐƚƌŝĐƚĨŽƌ&zϮϬϮϲͲϮϳƚŚƌŽƵŐŚ&zϮϬϮϴͲϮϵ͘ ;ϭͿ /ĨƚŚĞŝƚLJŽƉƚƐƚŽĞdžƚĞŶĚƚŚĞĐŽŶƚƌĂĐƚĨŽƌĂŶĂĚĚŝƚŝŽŶĂůϭͲLJĞĂƌƉĞƌŝŽĚ͕ƚŚĞ&ĞĞƐƐŚĂůůŝŶĐƌĞĂƐĞĂŶŶƵĂůůLJĨŽƌŝŶĨůĂƚŝŽŶďLJƚŚĞ ĂŶŶƵĂůĐŚĂŶŐĞŝŶƚŚĞĂŶŶƵĂůŽŶƐƵŵĞƌWƌŝĐĞ/ŶĚĞdž;W/Ϳ͕ĚƵƌŝŶŐƚŚĞƉƌĞĐĞĚŝŶŐĐĂůĞŶĚĂƌLJĞĂƌ͕ĨŽƌĂůůhƌďĂŶŽŶƐƵŵĞƌƐ͕ĨŽƌ ƚŚĞ^ĂŶŝĞŐŽĂƌĞĂ͕ĂƐƉƵďůŝƐŚĞĚďLJƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌ͕ƵƌĞĂƵŽĨ>ĂďŽƌ^ƚĂƚŝƐƚŝĐƐ͘^ŚŽƵůĚƚŚĞƐƚĂƚĞĚ ŝŶĚĞdžďĞĚŝƐĐŽŶƚŝŶƵĞĚ͕ĂƌĞĂƐŽŶĂďůLJĞƋƵŝǀĂůĞŶƚŝŶĚĞdžƐŚŽƵůĚďĞƵƚŝůŝnjĞĚĂŶŶƵĂůůLJ͘ dŚĞŶŶƵĂů&ĞĞĂďŽǀĞŝŶĐůƵĚĞƐĂůůŝŶĚŝƌĞĐƚĞdžƉĞŶƐĞƐ;ƐƵĐŚĂƐƚƌĂǀĞů͕ŵŝůĞĂŐĞ͕ĂŶĚĚƵƉůŝĐĂƚŝŶŐ͕ĞƚĐ͘ͿďƵƚĞdžĐůƵĚĞƐĂŶŶĞdžĂƚŝŽŶ ƐĞƌǀŝĐĞƐ͘ŶŶĞdžĂƚŝŽŶŽĨĂĚĚŝƚŝŽŶĂůnjŽŶĞƐǁŽƵůĚďĞĂƐĞƉĂƌĂƚĞĨĞĞ͘  /ŶǀŽŝĐĞƐĨŽƌƚŚĞƐĞƐĞƌǀŝĐĞƐǁŝůůďĞƐƵďŵŝƚƚĞĚŵŽŶƚŚůLJĨŽƌƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚĂŶĚƐŚĂůůďĞƉĂŝĚǁŝƚŚŝŶ ϯϬĚĂLJƐŽĨƌĞĐĞŝƉƚ͘ &zϮϬϮϲͲϮϳ &zϮϬϮϳͲϮϴ &zϮϬϮϴͲϮϵ dŽƚĂůϯͲzĞĂƌ ŝƐƚƌŝĐƚ ŶŶƵĂů&ĞĞ ŶŶƵĂů&ĞĞ ŶŶƵĂů&ĞĞ ŽŶƚƌĂĐƚ;ϭͿ ^ƚƌĞĞƚ>ŝŐŚƚŝŶŐĂŶĚ>ĂŶĚƐĐĂƉŝŶŐŝƐƚƌŝĐƚEŽ͘ϭ ^ƚƌĞĞƚ>ŝŐŚƚŝŶŐ/ŵƉƌŽǀĞŵĞŶƚŽŶĞ ϳ͕ϴϬϬ͘ϬϬΨ  ϴ͕Ϭϯϱ͘ϬϬΨ  ϴ͕Ϯϳϱ͘ϬϬΨ  Ϯϰ͕ϭϭϬ͘ϬϬΨ  ^ƚƌĞĞƚdƌĞĞ/ŵƉƌŽǀĞŵĞŶƚŽŶĞ ϯ͕ϮϬϬ͘ϬϬΨ  ϯ͕Ϯϵϱ͘ϬϬΨ  ϯ͕ϯϵϱ͘ϬϬΨ  ϵ͕ϴϵϬ͘ϬϬΨ  DĞĚŝĂŶ>ĂŶĚƐĐĂƉŝŶŐ/ŵƉƌŽǀĞŵĞŶƚŽŶĞ ϳ͕ϴϬϬ͘ϬϬΨ  ϴ͕Ϭϯϱ͘ϬϬΨ  ϴ͕Ϯϳϱ͘ϬϬΨ  Ϯϰ͕ϭϭϬ͘ϬϬΨ  ^ƚƌĞĞƚ>ŝŐŚƚŝŶŐĂŶĚ>ĂŶĚĐƐĂƉŝŶŐŝƐƚƌŝĐƚEŽ͘Ϯ DƵůƚŝƉůĞ/ŵƉƌŽǀĞŵĞŶƚŽŶĞƐϵ͕ϲϬϬ͘ϬϬΨ  ϵ͕ϴϵϬ͘ϬϬΨ  ϭϬ͕ϭϴϱ͘ϬϬΨ  Ϯϵ͕ϲϳϱ͘ϬϬΨ  ƵĞŶĂsŝƐƚĂŚĂŶŶĞůDĂŝŶƚĞŶĂŶĐĞŝƐƚƌŝĐƚ ĞŶĞĨŝƚƌĞĂEŽ͘ϭ ϯ͕ϴϬϬ͘ϬϬΨ  ϯ͕ϵϭϱ͘ϬϬΨ  ϰ͕ϬϯϬ͘ϬϬΨ  ϭϭ͕ϳϰϱ͘ϬϬΨ  ϯϮ͕ϮϬϬ͘ϬϬΨ  ϯϯ͕ϭϳϬ͘ϬϬΨ  ϯϰ͕ϭϲϬ͘ϬϬΨ ϵϵ͕ϱϯϬ͘ϬϬΨ           1401 Willow Pass Road, Suite 500, Concord, CA 94520 „ p: 925.827.4900 „ f: 866.356.0998 „ WeAreHarris.com Delegation of Authority Letter By means of this letter, I, Alison Bouley, Vice President for Municipal & District Finance, delegate the authority herein described to Donna Segura, Director, Municipal & District Finance, on the following terms and conditions: 1. Donna Segura may review and execute, on my behalf, proposals and contracts in an amount and duration not to exceed $250,000 through December 31, 2026. 2. The proposals and contracts subject to this delegation are those relating to Municipal & District Finance. 3. The effective date of this delegation is January 1, 2026. It shall run until such delegation is revoked, the delegate is no longer serving in the position described in this delegation, or the end of the calendar year, whichever comes first. 4. The authority delegated in this document shall not be sub-delegated. Signature of Delegating Official: __________________________________________________ Name and Title Printed: Alison Bouley, Vice President, Municipal & District Finance Date_________________ Acknowledged and agreed: Signature of Delegate: __________________________________________________________ Name and Title Printed: Donna Segura, Director, Municipal & District Finance Date_________________ Approved: (CEO or Division President) Signature: _____________________________________________________________________ Name and Title Printed: Diane Sandman, Division President, Consulting Division Date_________________                          INSR ADDLSUBRLTRINSRWVD DATE (MM/DD/YYYY) PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext): E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY)(MM/DD/YYYY) COMMERCIAL GENERAL LIABILITY AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE INSURER(S) AFFORDING COVERAGE NAIC # Y / N N / A (Mandatory in NH) ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? EACH OCCURRENCE $ DAMAGE TO RENTED $PREMISES (Ea occurrence)CLAIMS-MADE OCCUR MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ $ PRO- OTHER: LOCJECT COMBINED SINGLE LIMIT $(Ea accident) BODILY INJURY (Per person)$ANY AUTO OWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS ONLY AUTOS AUTOS ONLYHIRED PROPERTY DAMAGE $AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE $ CLAIMS-MADE AGGREGATE $ DED RETENTION $$ PER OTH- STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below POLICY NON-OWNED SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORDACORD 25 (2016/03) ACORDTM CERTIFICATE OF LIABILITY INSURANCE Continental Insurance Company American Casualty Company of Reading PA Allied World Surplus Lines Insurance Co 2/17/2026 USI Insurance Services, LLC Lic # OG11911 10940 White Rock Rd 2nd Fl Rancho Cordova, CA 95670 Lindsay Murphey lindsay.murphey@usi.com Harris & Associates, Inc. 1401 Willow Pass Rd Ste 500 Concord, CA 94520-7964 35289 20427 24319 A X X X Ded: 0 X X X X 7092556540 08/01/2025 08/01/2026 2,000,000 1,000,000 15,000 2,000,000 4,000,000 4,000,000 B X X X X X BUA7092547367 08/01/2025 08/01/2026 1,000,000 A X X X 10000 7092552522 08/01/2025 08/01/2026 10,000,000 10,000,000 B N X 792555985 08/01/2025 08/01/2026 X 1,000,000 1,000,000 1,000,000 C Prof/Poll Liab. Claims-Made 03147924 08/01/2025 08/01/2026 $5,000,000 Each Claim $10,000,000 Aggregate Ded: $500,000 RE: MSA procurement The General Liability, Commercial Auto policy(s) includes an automatic Additional Insured endorsement that provides Additional Insured status to the City of Carlsbad and any other party when there is a written contract that requires such status, and only with regards to work performed by or on behalf of the named insured. The General Liability, Commercial Auto policy(s) contains a special endorsement with "Primary and (See Attached Descriptions) 1230021000 City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 1 of 2 #S52952469/M50714965 HARRIASS5Client#: 2039770 RYMJ5 SAGITTA 25.3 (2016/03) DESCRIPTIONS (Continued from Page 1) Noncontributory" wording, when required by written contract. The General Liability, Commercial Auto, and Workers Compensation policy(s) provide a Blanket Waiver of Subrogation when required by written contract, except as prohibited by law. The Excess/Umbrella coverage limits are in addition to those provided by the: General Liability, Commercial Auto, Workers Compensation. Excess Coverage is follow form. 30 days notice of cancellation will be given except for non-payment of premium will be 10 days. 2 of 2 #S52952469/M50714965