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3.2 UPRR agrees to fully and adequately complete all UPRR Work no later than sixty
<br />(60) days after the effective date of the permit or permits allowing construction of the New Track
<br />Project.
<br />3.3 The City promises and agrees to furnish all labor, materials, tools, equipment,
<br />services, and incidental and customary work necessary to fully and adequately perform the City
<br />Work at its sole cost and expense.
<br />3.4 UPRR shall require all prime contractors performing the UPRR Work to provide
<br />occurrence version commercial general liability insurance, business automobile liability insurance
<br />and workers' compensation insurance in forms subject to the approval of the City.
<br />3.4.1 Such insurance shall have limits no less than: (1) General Liability:
<br />$1,000,000 per occurrence for bodily injury, personal injury and property damage. If commercial
<br />general liability insurance or other form with a general aggregate limit is used, either the general
<br />aggregate limit shall apply separately to this MOU or the general aggregate limit shall be twice the
<br />required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and
<br />property damage; and (3) Workers' Compensation and Employer's Liability: Workers'
<br />compensation limits as required by the Labor Code of the State of California. Employers Liability
<br />limits of $1,000,000 per accident for bodily injury or disease.
<br />3.4.2 The general liability and automobile policies shall be endorsed to state
<br />that: (1) the City, its directors, officials, officers, employees and agents shall be covered as
<br />additional insureds with respect to the UPRR Work or operations performed by or on behalf of
<br />UPRR, including materials, parts or equipment furnished in connection with such work; and
<br />(2) the insurance coverage shall be primary insurance as respects the City, its directors,
<br />officials, officers, employees and agents, or if excess, shall stand in an unbroken chain of
<br />coverage excess of the scheduled underlying coverage provided pursuant to this MOU. Any
<br />insurance or self-insurance maintained by the City, its directors, officials, officers, employees
<br />or agents shall be excess of the provided insurance and shall not be called upon to contribute
<br />with it in any way.
<br />3.4.3 All policies shall be endorsed to state that: (1) coverage shall not be
<br />suspended, voided, reduced or canceled except after thirty (30) days prior written notice by
<br />certified mail, return receipt requested, has been given to the City; and (2) any failure to
<br />comply with reporting or other provisions of the policies, including breaches of warranties,
<br />shall not affect coverage provided to the City, its directors, officials, officers, employees and
<br />agents. In addition, all insurance required by this MOU shall contain standard separation of
<br />insureds provisions. Such insurance shall not contain any special limitations on the scope of
<br />protection afforded to the City, its directors, officials, officers, employees and agents.
<br />3.4.4 Insurance is to be placed with insurers with a current A.M. Best's rating
<br />no less than A: VIII, licensed to do business in California, and satisfactory to the City.
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