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HomeMy WebLinkAbout2003-06-24; City Council; 17208; Amendment to Agmt with GVP Consultants4B# 17,208 IIITG. 6/24/03 IEPT. ENG RECOMMENDED ACTION: TITLE: APPROVAL OF AMENDMENT NO. 4 TO MASTER AGREEMENT FOR WITH GVP CONSULTANTS PROFESSIONAL ENGINEERING SERVICES CITY ATT CITY MGR. Adopt Resolution No. 2003-159 GVP Consultants for professional engineering services. approving Amendment No. 4 to the master agreement with ITEM EXPLANATION: In June of 2001, City Council approved an agreement with GVP Consultants to provide professional engineering services to the City. Pursuant to its terms, the agreement was extended for two of its three one-year periods allowed. This amendment will increase its not-to-exceed amount from $250,000 to $325,000 for the 2002-2003 fiscal year. It would also extend the agreement for an additional one (I) year period at a not-to exceed amount of $250,000. The agreement will then expire June 30, 2004. The Engineering Department has had an increased need for GVP Consultants services in order to maintain continuity for the planchecking of large projects received this fiscal year and capital projects being processed by the City. Staff is recommending that the City continue to contract with GVP Consultants to assist staff, on an as-needed basis, with planchecking services, facility planning, project management, review and recommendation of cost reports and studies and assessment engineering. Selection of this firm was previously based on the consultant's expertise in the areas needed and past experience working with the City on similar projects. Staff believes the experience gained by the consultant over the past years under the existing contract has only enhanced his ability to provide the professional engineering services required by the City. An agreement with this firm will provide continuity in work that needs to be accomplished. As with all Master Agreements for professional engineering services prepared by the City, payment for services will be made from the specific plancheck service's and capital project's accounts as work is completed by the consultant. FISCAL IMPACT: Cost for professional engineering services will be charged to the plancheck services and various capital projects as part of the available funding. The maximum amount payable to the consultant for fiscal year 2002-2003 will not exceed $325,000 and for fiscal year 2003-2004 will not exceed $250,000. EXHIBITS: 1. Resolution No. 2003-159 approving Amendment No. 4 to the master agreement with GVP Consultants for professional engineering services. 2. Amendment No. 4 with GVP Consultants. I I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-159 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 4 TO AN AGREEMENT WITH GVP CONSULTANTS FOR PROFESSIONAL ENGINEERING SERVICES. WHEREAS, the City Council of the City of Carlsbad, California, has reviewed and determined the need for the utilization of engineering consultant services on an ongoing, as-needed basis in order to maintain service levels; and WHEREAS, the City Council has further determined GVP Consultants has the necessary skills to fulfill the City’s need for professional engineering services; and WHEREAS, the City Council has further determined that GVP Consultants is uniquely qualified to provide professional engineering services because of their experience with City policy and procedures; and WHEREAS, the City Council recognizes the need to maintain the continuity of work in progress by utilizing GVP Consultants, to provide professional engineering services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Amendment No. 4 with GVP Consultants, a copy of which is attached as Exhibit A, and made a part hereof increasing the not-to-exceed amount from $250,000 to b325,000 for fiscal year 2002-2003 and $250,000 for fiscal year 2003-2004 is hereby approved. 3. SVP Consultants. That the City Manager is hereby authorized to execute the amendment with PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council ield on the 24th dayof JUNE , 2003 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard NOES: Nop ITTEST .ORMINE M. WUOD, City Cleik 4 (SEAL) AMENDMENT NO. 4 TO EXTEND AND AMEND AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES (GVP CONSULTANTS) This Amendment No. 4 is entered into and effective as of the 274 day of , 2003, extending the agreement dated June 10, 2001 (the “Agreement”) by and between the City of Carlsbad, a municipal corporation, (“City”), and GVP Consultants (“Contractor”) (collectively, the “Parties”). RECITALS A. On April 12, 2002, the Parties executed Amendment No. 1 to the Agreement which altered the fees to be paid to Contractor by increasing the not-to-exceed amount from one hundred fifty thousand dollars ($1 50,000) to two hundred thousand dollars ($200,000) per year; and B. On June 11, 2002, the Parties executed Amendment No. 2 to the Agreement extending the term of the Agreement for one (1) year ending on June 30,2003; and C. On January 22,2003, the Parties executed Amendment No. 3 to the Agreement which altered the fees to be paid to Contractor by increasing the not-to-exceed amount from two hundred thousand dollars ($200,000) to two hundred fifty thousand dollars ($250,000) per year; and D. The Parties desire to alter the Agreement’s fees to be paid to the Contractor for the remainder of fiscal year 2002-2003 only, and effective as of the executed date of this amendment by increasing the not-to-exceed amount from two hundred fifty thousand dollars ($250,000) to three hundred twenty-five thousand dollars ($325,000); and E. The Parties desire to extend the Agreement for a period of one (1) year ending on June 30, 2004 at a not-to-exceed amount of two hundred fifty thousand dollars ($250,000) for the 2003-2004 fiscal year. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contactor agree as follows: 1. City will pay Contractor for all work associated with those services described in the original Agreement on a time and materials basis not-to-exceed three hundred twenty-five thousand dollars ($325,000) for the remainder of fiscal year 2002-2003, effective on the executed date of this amendment. Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include completed plan checks, fee basis, hours performed, hourly rates, and related activities and costs for review and approval by the City. 2. That the agreement, as may have been amended from time to time, is hereby extended for a period of one (1) year ending on June 30, 2004 on a time and materials basis not-to-exceed two hundred fifty thousand dollars ($250,000). The not-to-exceed rate will revert from three hundred twenty five thousand dollars ($325,000) to two hundred fifty thousand dollars ($250,000) per fiscal year effective July 1, 2003. City Attorney Approved Version #05.22.01 1 3. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 4. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 5. The individuals executing this Amendment 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 Amendment. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California ’ (sign here) _Ll/;u, -7 /L !!!A ATTEST: **By: (print namdtitle) (sign here) City Clerk (print namekitle) 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. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(@ signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney City Attorney Approved Version M5.22.01 2 State of California ) ) County of San Diego ) On, June 4, 2003, before me, Belinda R. Guzman, Notary Public, personally appeared Glen K. Van Peski, personally known me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal Signature of Notary L' (This area for official notary seal) Title or Type of Document Amendment No. 4 to Extend and Amend Agreement for Professional Engineering Services (GVP Consultants) Date of Document 6/04/03 No. of Pages 2 Signer(s) other than named above none ACoRDTM CERTIFICATE OF ClABiLlTY INSURANCE DATE (MMIDDNY) DEC 6 02 COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAME0 ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING 4NY REQUIREMENT. TERM OR CONDITION Of ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR WAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AN0 CONDITIONS OF SUCH WJLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCE0 BY PAID CLAIMS. PRODUCER MICHAEL J. HALL 81 COMPANY NE INSURANCE SERVICES 19578 1OTH AVENUE N.E. POULSBO WA 98370 PHONE: (360) 598-3700 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AN0 CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. I Agency Lit#: 0792445 FAX: (360) 598-3703 INSURED GVP CONSULTANTS 3764CAVERN PLACE CARLSBAD CA 92008 EXCESS I UMBERELLA LIAMLITY OCCUR CIAIMSMADE b INSURERS AFFORDING COVERAGE NAlC # INSURER A: LUMBERMENS MUTUAL CASUALN COMPANY I $. INSURER B: AMERICAN MANUFACTURERS INSURAN c& INSURER C: INSURER D: INSURER E: - - TYPE OF INSURANCE NSd LTR - GENERAL UABILITY x COMMERCIAL GENERAL LlABlLlM 1 CLAIMS MADE 13 OCCUR = ___ - ~~ - GENL AGGREGATE LIMIT APPLIES PER - CT i nr. AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS - LIMITS WUCY EFFECTIVE POLICY wimnon DATE IMMlDDrm DATE (MMmDrWl POLICY NUMBER IRE82309640 OCT21 02 OCT 21 03 EACH OCCURRENCE s i,ooo,ooa s 1oo,ooa 10,000 PERSONAL B ADV INJURY $ 1,000,000 GENERAL AGGREGATE s 2,000,000 PRODUCTS-COMPX)P AGO. t 2,000,000 (Ea acudent) 1,000,000 MYAGE TO RENTED PREMISES E8 oeprrc-I MED. UP (Any One Person) 7RE823096-00 OCT21 02 OCT 21 03 COMBINED SINGLE LIMIT BODILY INJURY BODILY INJURY (Per accidenl) PROPERTY DAMAGE I 1 IESCRIPTION OF OPERATlONSlLOCATlONNEHlCLES/EXCLUSlONS ADDED ENDORSEMENT] SPECIAL PROVISIONS II GARAGE LIABILITY ANY AUTO - AUTO ONLY - EA ACCIDENT OTHER THAN EAACC s AUTO ONLY: AGG ;EE SUPPLEMENTAL CERTIFICATE INFORMATION I CITY OF CARLSBAD ENGINEERING DEPT 1635 FARADAY AVENUE CARLSBAD, CA 92008 Attention: DONNA HARVEY EACH OCCURRENCE AGGREGATE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED, OR MATERIALLY- CHANGED. BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. s s s AUTHORIZED REPRESENTATIVE & /z 70 DEDUCTIBLE RETENTION WORKERS COMPENSATION AN0 EMPLOYERS LIABILITI ANY PROPRIETDRIPARTNERIOIECUnVE OFFICEWYAMMR EXCLUDED7 H yvs. dwscnk undmr SPECIAL PROVISIONS b.lw OTHER PROFESSIONAL LIABILITY , CLAIMS MADE FORM I ACORD 25 (2001108) Certificate # 16165 ASHLEY HURD f s WC STATU- I TORY LIMITS I loTHER - E L EACH ACCIDENT s EL CISEASE-G1 EMPLO IEE 5 EL DISEASE-WLICY LIMIT S QL018938-00 DEC 1 01 DEC 1 04 $1,000,000 EACH CLAIM Si ,000,000 AGGREGATE s CERTIFICATE HOLDER x ADDITIONAL INSURED INSURER LETTER: - CANCELMTlON POLICY NUMBER: 7RE823096-00 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED-OWNERS, LESSEES OR CONTRACTORS (Form B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COMMERCIAL AUTO LIABILITY SCHEDULE Name of Person or Organization; CITY OF CARLSBAD, (AND/OR IF APPLICABLE-THE CITY OF CARLSBAD REDEVELOPMENT AGENCY, HOUSING AUTHORlrY OR CARLSBAD MUNICIPAL WATER DISTRICT) ITS OFFICIALS, EMPLOYEES AND VOLUNTEERS (If no entry appears above. information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work' for that insured by or for you \ CG 20 10 11 85 Copyright. Insurance Services Office, lnc., 1984 Certificate # 16165 POLICY NUMBER: 7RE823096-00 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ THIS CAREFULLY ADDITIONAL INSURED PRIMARY COVERAGE This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART This insurance is primary for the person or organization shown in the schedule, but only with respect to liability arising out of your work or that insured by or for you. Other insurance afforded to that insured will apply as excess and not contribute as primary to the insurance afforded by this endorsement. All other endorsement provisions, conditions and exclusions of this insurance shall remain unchanged and apply to the additional insured and described below. SCHEDULE ADDITIONAL INSURED CONTRACT/PROJECT CARLSBAD REDEVELOPMENT AGENCY, HOUSING AUTHORITY OR CARLSBAD MUNICIPAL WATER DISTRICT) ITS OFFICIALS, EMPLOYEES AND VOLUNTEERS CITY OF CARLSBAD, (AND/OR IF APPLICABLE-THE CITY OF NAMED INSURED GVP CONSULTANTS 3764 CAVERN PLACE CARLSBAD CA 92008 Certificate # 16165 DESCRIPTION OF OPERATlONS/LOCATlONSNEHlCLES/SPECIAL ITEMS PROJECT PLAN CHECKING SERVICES CERTIFICATE HOLDER IS AN ADDITIONAL INSURED ON THE COMMERCIAL GENERAL LIABILITY AND AUTOMOBILE LIABILITY POLICIES AS RESPECTS LIABILITY ARISING OUT OF ACTIVITIES BY, OR ON BEHALF OF THE NAMED INSURED. THIS INSURANCE IS PRIMARY INSURANCE AND ANY OTHER INSURANCE MAINTAINED BY THE ADDITIONAL INSUREDS SHALL BE EXCESS ONLY AND NON CONTRIBUTING WITH THIS INSURANCE. A WAIVER OF SUBROGATION APPLIES TO THE GENERAL LIABILITY & THE AUTO LIABILITY POLICY IN FAVOR OF THE ADDITIONAL INSURED. Certificate # 16165 May. 30 I 2003 12: I BPM No.0287 IMPORTANT NOTICE CONCERNING YOUR RIGHTS UNDER A CUT-THROUGH AGREEMENT NATIONAL INDEMNITY COMPANY lnswance Pollcy (the "Policf) to which this notice applies: QLOl893800 Insurer (the -Company): LUMBERMENS MUTUAL CASUALM CO., Policy Inception Date: 12X)l12001 Pdicy No.: QLO1893800 Named Insured (the "Insured.): GVP Cansultants The Notice Inception Date is 12/01/2001 P' 6/9 For value received, National Indemnity Company (hereinafter refed b as 'National In*mnit)r) agrees that in the event the Company does not pay amounts othmke payable under the Policy as a result of a court of competent jurisdiction or the state insurance regulatory authority in the Company's domiciliary state ('insurance mgufatory authow) issuing an order finding such Company to be irldolvent or entering an order to the Company which legally prohibits the Company from paying Poky amounts othewlse payabb because of the Company's fmancial cornon, then National Indemnity will pay on behalf of the Company 700% of any amount payable by the Company under the Policy that has not been previously paid by the Company, subject always to the other terms, conditions, exclusions and limitations of the Policy. National Indemnity will meke such payment directly to the Insured (or to its mortgagees, assignees or loss payees, as their interests may appear) in the event of first-party coverages, or directly to the claimant or claimants to whom the Insured is legally liable fn lhe event of third-party coverages. As a condltbn of Nationaf lndemnws payment obligation. the Insurea, after receiving actual notice of 'the receivership or lnsolvtficy of the Gompany, shall provide prompt written notke to National Indemnity, attention: Kempr Cut-Through, at its statutq Home Office as on record with the National Association of Insurance Commissioners, of any claim or suit for which National Indemnity may be liable by reason of this agreement herein. As a condition precedent to payment hereunder, National Indemnity shall be deemed to have all the rights of the Company and be submgated to all the tights of the Insured to the extent of such payment. In the case of third-party liability coverages, payment shall be due hereunder only after any one of the following three conditions is met: (1) the claimant obtains a judgment against the Insured or the Company after actual trial by a courl of competent jurisdiction; or (2) the claimant enters into a sefflement with the Insured or the Company approved by Natlonal Indemnity; or (3) the claimant enters into a settlement with the Insured or the Company approved by the Company prior to it being declared insolvent or prohibhed from paying amounts due under the Policy. None of these conditions shall apply to first-party coverages, including but not limited to any state workers' compensation or similar federal compensation coverages that may be provided by the Policy. IL 80 38 (Ed. 12 02) Page 1 of 2 Prlntd in U.S.A. Mav.30- 2003 12:19PM Upon the Company being declared insolvent or being legally prohibfled from paying Policy amounts ohbwise payable because of the Company's financial condition by a court of competent jurisdiction or insurance regulatory authority or upon any insurance regulator assuming any control over the Companfs claims handling process, National Indemnity has the right, but not the duty. to assume any obligation the Company may have to provide a defense to the Insured, if such an obligation is created by the Policy. If National Indemnity does not assume such obllgation, it wlll reimburse he Insured for the reasonable cost of such defense to the extent hat the Company would have been obliged to pay such cost under its obligation to defend. Naknal Indemnity and the Insured will cooperate in the selection of defense courtsel at me Commencement of Itligation. Nothing herein shall make National Indemnity the Insurer under the Policy. National Indemnity's digation hereunder is limited to the Company's obligations under the Poky and shall not include any payment arising under claims of bad faith, extra contractual obli@Wms or payments in excess of policy limits. In the event the Notice Inception Date is later than the Polby Inception Date. then this Notice does not apply b my damages, offense or loss of any nature for which coverage ie otherwise provided under the Policy if such damages, offense or loss BOornmBncee' in whole or in part pdor to the Notice Inception Date, even if such damages, offense or (OSS continues, is alleged to mtinua, or is deemed to continue on or after the Notice Imption Oats. For the purposes of this Notice only, %omma)nces' shd mean: (i) first occurs, is affeged to first occur or Is deemed to first ooour; w (ii) incepts, is alleged to incept or is deemed to incept or (ili) first manifests, is alleged to have rirst manifested, or is deemed to have first manifested. "Cmmence' is the earliest point in time of (i), (ii) or (lir). National Indemnity has no liabilii to make payments or reimburse any person for paynents If the payments wem incurred in connwtion with or were in any way related to such excluded damaoes, offense or loss NATIONAL INDEMNITY COMPANY IL 80 38 (Ed. 12 02) LUMBERMENS MUTUAL CASUALTY GO. President Chairman and Chief Executive Officer Pege 2 of 2 Printed in U,S,A. Mav.30. 2003 12:19PM No.0287 P. 819 IMPORTANT NOTICE CONCERNING YOUR RIGHTS UNDER A CUT-THROUGH AGREEMENT NATIONAL INDEMNITY COMPANY Insurance Poky (the “Policy“) to which thls notice applies: 7RE823096-00 ’ Insurer (ahe Ybrnpanf): AMERICAN MANUFACIURERS MUTUAL Policy Inception Date: 1~1/2002 Policy No.: 7REB23096-00 Named Insured (the “Insured”): GLEN VAN PESKl DBA: The Notice Inception Date is 12/23/2002 For value received, National Indemnity Company (hereinafbr &erred to as ‘National Indemnity‘) agrees that in the went the Company daas not pay amounts otherwise payable under the Policy as a result of a court of competent jurisdiction or the state Insurance regulatory authority in the Company’s domiciliary state (“insurance regulatory auth0rit)r) issuing an order finding such Company to be insolvent or entering an order to the Company which legally prohibits the Company from paying Policy BmountS otherwise payable because of the COmpanfs financial condition, then Natlonal Indemnity will pay on behalf of the Company 300% of any amount payable by the Company under the Policy that has not been previously paid by the Company, subject always to the other terms, condiions, exclusions and limitations of the Policy. National Indemnity will make such payment directly to me Insured (or to rts mortgagees, assignees or toss payees, as their interests may appear) in the event of first-party ooverages. or directly to the claimant or claimants to whom the Insured is legally liable in the event of third-party coverages. As a condition of National Indemnity‘s payment obligation, the Insured, after receiving actual notic8 of the receivership or insolvency of the Company, shall provide prompt wdlten notice to National Indemnity, attention: Kempar Cut-Through. at A statutory Home Office as on record with the National Association of Insurance Commissioners, of any dah or suit for which NdiOMil Indemnity may be liable by reason of this agreement herein. As a oondltlon precedent to payment hereunder, National Indemnity shall be deemed to have all the rights of the Company and be subrogated to all the rights of the Insured to the extent of such payment In the case of hidparty liabdity coverages, payment shall be due hereunder only after any one of the following three conditions is met: (1) the claimant obtains a judgment against the Insured or the Company after actual trial by a court of competent jurisdictlon; or (2) the claimant enters into a settfement with tha Insured or the Company approved by National Indemnity: or (3) the claimant enters into a dement with the insured or the Company approved by the Company prior to it being declared insolvent or prohibited from paying amounts due under the Policy. None of these condi9ons shall apply to first-party coverages, Including but not limited lo any state workers’ compensation or similar federal compensation coverages that may be provided by the Policy. IL 80 38 (Ed. V2 02) Page 1 of 2 Printed in U.S.A. Ma Y 30. 2003 12:19PM 919 Upon the Company being declared insotvent or being legally prohibited from paying Policy amounts otherwise payable because of the Company's financial condition by a court of competent jurisdiction or insurance regulatory authority or upon any insurance regulator assuming any control over the Companfs claims handling process, National Indemnity has the right, but not the duty, to assume any obfigation the Company may have to provide a defense to the Insured, if such an obligation is created by the Policy. If National Indemnity does not assume such obligation, it will reimburse the Insured for the reasonable cost of such defense to the extent that the Company would have been obUged to pay such cost under its obligation to defend. National Inffamnity and the Insured will coopeme In the selection of defense counsel at the commencement of litigation Nothing herein shall make National Indemnity ?he insurer under the Policy. National Indemnity's obligation hereunder is llmited to the Company's obligations under the Policy and shall not include any payment arising under claims of bad faith, extra contractual obligations or payments in excess of poky limits. In (he event tho No&e Inceptlon Date is later than the Policy IncepUon Dare, then this Notice does not apply to any damages. offense or loss of any nature for which caverage is othennrfso provided under the Policy if such damages, offense or loss 'commences" in whde or in part prior to the Notice Inception Date, even if such damages. offense or loss continues, is alleged to continue, or Is deemed to continue on or after the Notice tnceptlon Date. For the purposes of this NotiGe only, 'commences' shall mean: (i) first occurs. is alleged to ffrst occur or Is deemed to first occur; or (ii) incepts, is alleged to incept or is deemed to incepc or (i) fiM manifests, Is alleged to have first manifested, or is deemed to have first manifested. yCommence" is the earliest point in time of (i), (ii) or Oii). National Indemnity has no liabili to make payments or rehnburse any person for payments if the peyments were incurred rn connection with or were in any way related to such excluded damages, offense vr Ioss. NATIONAL INDEMNITY COMPANY AMERICAN MANUFACTURERS MUTUAL President Chairman and Chlef Exscutive Officer IL 80 38 (Ed. 12 02) Pane 3 nt 9