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NV5, Inc. - 2014 Agreement - Amendment No. 4FIRST AMENDMENT TO NV5- PROVIDE WATER MAIN DESIGN SERVICES FOR SWANSTON LANE AND CASEY STREET WHEREAS, the City of Gilroy, a municipal corporation ( "City "), and NV5, Inc. entered into that certain agreement entitled Provide Water Main Design Services for Swanston Lane and Casey Street, effective on 03/07/2014, hereinafter referred to as "Original Agreement "; and WHEREAS, City and NV5, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. The additional scope to investigate and redevelop Well 7 for the City of Gilroy and fees identified in the October 21, 2015 letter to Dan Aldridge, Operations Services Supervisor, Community Services from Patrick Dunn, Hydrogeologist and Nona Espinosa, Senior Engineer, NV5, Inc. to be included as part of the Original Agreement. 2. This Amendment shall be effective on 11/06/2015. 3. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 4. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF GILROY By: [signature] J. E ward Tewes [employee name] Interim City Administrator [titic'department] r Date: Z — 7 " /D 4845- 8215 -55400 MDOLINGER\04706083 NV5, Inc. By: �- -�--� [signature] Dave Richard Vice President [title) Date: Approved as to Form ity Attorney 4845 - 8215 -55400 _2_ MDOLINGER104706083 N V 5 October 21, 2015 Mr. Dan Aldridge City of Gilroy 613 Old Gilroy St Gilroy, CA 95020 Subject: Proposal to Investigate and Redevelop Well 7 for the City of Gilroy, Gilroy, CA Dear Dan Aldridge, NV5 is pleased to present this proposal to the City of Gilroy (City) to complete the well investigation and prepare an alternative assessment to address the ground water quality concerns for the referenced Well 7 in Gilroy. PROJECT APPROACH AND SCOPE OF WORK In response to our meeting and discussions with the driller, our hydrogeological and engineering staff are ready to begin helping assess the future use of Well 7 that has had reported elevated nitrate as NO3 concentrations and warrants redevelopment or rehabilitation work. We are confident that the available information and data to be collected as described under Tasks 1 and 2 can be used to develop a cost - effective, long- term solution. This existing 16 -inch cased well was completed to 410 feet in 1977. Three screened intervals were installed from 130 to 150 feet, 200 to 350 feet and 380 to 400 feet below ground surface (bgs). Gravel pack was installed from 50 to 410 feet bgs. Key issues to be considered for continued use are: • Assessment of options related to the nitrate as NO3 concentrations recorded in the referenced well. • Hydrogeologic setting is dominated by flood plain alluvial deposits with an aquitard separating the unconfined shallow aquifer from the deeper confined aquifer. General domestic well depth in the area is shallow, less than 250 feet bgs. Municipal and irrigation well depth is slightly deeper, averaging approximately 590 feet bgs. 2025 GATEWAY PLACE, SUITE 1545 1 SAN JOSE. CA 951 10 1 WWW.NV5.CO4 I OFFlCE 408.392.7200 1 FAX 405.392.01 O I CONSTRUCTION OUALRY ASSURANCE - INFRASTRUCTURE - ENERGY - PROGRAM MANAGEMENT - ENVFRONMENTAL Mr. Dan Aldridge October 21, 2015 Page 2 • Understanding of water well capacity and aquifer sustainability (safe yield) related to the well screen lengths. • Understanding condition and variation of water quality of the existing well screens. • Assessing compliance with the California Code of Regulations (CCR) Title 22 Water Quality Requirements. • Water quality has shown impacts due to scaling and corrosion and potential shallow aquifer contamination. As discussed in the meeting, the following information has been made available to NV5 for review: • Well completion report. • Video log summary report from 2004. • Well level summary. • CCR Title 22 water quality testing information (collected from the USGS GAMA database and the City). The purpose of this preliminary investigation is to gather information on the well, determine if the well's water quality can be improved with modifications, determine overall well condition, and better determine the likelihood of a new on -site well yielding favorable hydrogeologic data. A video well survey was completed by Newman Well Surveys in May 2004. The video indicates that the casing is in an acceptable condition for its age, with several casing joints showing slight separation and allowing in water and three small holes in the casing. Significant scaling was observed from 350 feet to the bottom of the well, 413.7 feet. The video log notes indicate that the small holes were caused by corrosion and the casing joint separation suggests that the welds are incomplete or failing. No oil was observed at the water level interface, which indicates the well is breaking suction. The well condition with depth may be more competent; however, it is also likely that the considerable scaling may be covering additional well defects, such as holes or casing joint separation. Based on available nitrate as NO3 data from the Groundwater Ambient Monitoring Assessment Program (GAMA) and the City, Well 7 nitrate concentrations have ranged from 3.8 mg/L to 44 mg/L from 1986 through 2015, with an average concentration of 33 mg/L. Recent data, from 1997 through 2014 shows a generally stable overall trend around 35 to 40 mg/L with fluctuations of up to 16 mg/L between sampling events. For a brief period from 2004 through 2006, following light brushing of the screened NIM OMCES NATIONWIDE CowsTRucT10N OuALrrY AssuRANCE - INFRASTRUCTURE - ENERGY - PROGRAM MANAGEMENT - ENVIRONMENTAL Mr. Dan Aldridge October 21, 2015 Page 3 intervals, nitrate concentrations had stabilized around 31 to 32 mg/L with slight fluctuations between monitoring events. Information supports a favorable response from redevelopment in 2004. After 2006, nitrate concentrations resumed large fluctuations between sampling events and the overall average concentration increased to approximately 35 mg/L, with isolated concentrations as elevated as 44 mg/L and eight detections at or above 40 mg/L. In early 2015, Well 7 water quality exceeded Nitrate MCL once. The well was taken out of operation as a precaution. The water level data from Well 7 indicates seasonal fluctuations of over 20 feet. This well is located at the City margins and water levels are influenced by area agricultural use. Task 1 -Well 7 Investigation and Redevelopment Assistance 1.1 Data Compilation NV5, along with the City, will request and review information on nearby water providers related to water quality and well driller logs for comparative purposes. NV5 will prepare a request for DWR well data to refine work under Task 1. NV5 will evaluate the data provided and will investigate, from existing and readily available documents, local geologic features that may impact local groundwater trends. NV5 will review historical water quality records and summary information provided on surrounding wells to identify historical and geological trends or patterns. NV5 will include information on nearby system water quality and groundwater trends to support future options. NV5 staff will work in conjunction with other subcontractors who will perform pump removal and replacement, video logging, spinner logging, and redevelopment. For the periods of time when work requires that the water source be temporarily removed from service, we understand that the well is a backup and is not needed at this time. Future efforts may include extensive screen shutter, jetting and rehabilitation. Recommendations may be reserved for a second phase of activity, following swage repair efforts on the well. NV5 has contacted local well pump contactors to facilitate gathering budgetary costs contained in this proposal. If requested, we can prepare a request for bids (RFS) and distribute to companies that perform the well investigation services below. Following a NIYI5 OFFICES NATIONWME CONSTRUCTION OUALfTT ASSURANCE - 1WRASTRUCTURL - ENERaY - PROORAM MANAOEMERT - EvonwmMENTAL Mr. Dan Aldridge October 21, 2015 Page 4 receipt of bids, NV5 or the City may contract with the firm(s) to perform the investigation work. 1.2 Pump Contractor Mobilization, Pump Removal and Redevelopment Efforts NV5 will provide oversight during redevelopment efforts on the well, including bailing, brush and swab. Airlifting with depth, adjacent to the significant scaling, may be performed to attempt to remove the scaling, but this decision will be dependent on subcontractor recommendations and observations. Airlift development efforts may be delayed until swage repairs are completed on the well to patch holes and repair separated joints. Water samples will be collected for nitrate analysis before and after redevelopment. 1.3 Well Video Completion and Review NV5 will review the well video provided by others following the redevelopment efforts. The video is anticipated to extend the entire well depth to determine the condition of well's interior, including perforations, sanding, damage, offsets, and other features. The video, removal, and replacement of submersible pumps /motors will be completed by others. This video will be used to assess the need for other geophysical tools and general condition of the well. 1.4 Review Flow/Temp Logging to Verify Flow and Seal Competence Spinner logging will be used to confirm flow horizons within existing streams. The log will be provided to NV5 for review. NV5 will provide specifications to scope, contract, and schedule and coordinate with the efforts by others. Task 2 - Investigation and Redevelopment Technical Memorandum NV5 will summarize Task 1 findings in a draft technical memorandum (TM) with subcontractor data presented in appendices. In addition, the draft TM will include detailed recommendations for follow -up efforts, which may include discrete zone sampling, further redevelopment using other methods, installation of swage liners that will isolate poor quality water zones, pump upgrades and /or constructing a new well. The draft TM will be submitted to City staff for review. One review meeting with City staff is anticipated. Comments will be incorporated and a final TM will be submitted. NiV15 OF:KE9 NATIONW10C CONSTRucno% OUAUTY A93URANGE - INFRASTRUCTURE - ENERGY - PROGRAM MANAGEMENT - ENVIRONMENTAL Mr. Dan Aldridge October 21, 2015 Page 5 FEE ESTIMATE NV5 proposes to perform the tasks above on a time and materials basis, as directed by the City, for a fee described below. Information from two pump contractors is also included for reference: Task 1— Well 7 Investigation and Redevelopment Assistance NV5 - $5,500 o Mobilization, Pump Removal/Replacement, and Redevelopment Subcontractor Cost - $7,800 o Video Camera Logging (pre and post additional development) Subcontractor Cost - $3,600 o Install/Remove Test Pump Spinner Logging Subcontractor Cost - $10,000 Task 2 — Investigation and Redevelopment TM NV5 - $4,500 The fee estimate above does not include handling and disposal of water discharged during investigation and redevelopment. Discharge permitting assistance is also excluded. We look forward to assisting you with this important project, please feel free to contact Pat Dunn at 916/641 -9207 or David Zensius at 209/824 -3239 if you have any questions. We appreciate the opportunity. Sincerely, NV5, Inc. Patrick F. Dunn, M.S., P.G., C.Hg. Hydrogeologist Nona F. Espinosa, P.E. Senior Engineer NIVIS OFFICES NATIONWIDE CoNsTvIu now OuAuTY AssuwwcE - 4wRASTRucTuRE - ENERDV - PROGRAM MANAGEMENT - ENVIRONMIENTAL A� °® CERTIFICATE OF LIABILITY INSURANCE -DATE 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(les) must 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 rights to the certificate holder in lieu of such endorsement(s). PRODUCER NAME: CT Certificate Department PHONE FAX 619- 234 -6848 A/C N :619- 234 -8601 Cavignac & Associates 450 B Street, Suite 1800 San Diego., CA 92101 -8005 E-MAIL ADDRESS: certificates ®cavi ac.com INSURERS AFFORDING COVERAGE NAIC# License No. OA99520 INSURER A 5/1/2016 EACH OCCURRENCE INSURED INSURERS: TRAVELERS IND CO OF CT 2568 INSURER C: TRAVELERS PROP CAS CO OF AMER 25674 NV5 Holdings, Inc.; NV5, Inc. 15070 Avenue of Science, ,Suite 100 San Diego, CA 92128 United States INSURERD: HUDSON INS CO 25054 INSURER E: $ 1,000,000 MED EXP (An one person) INSURER F: PERSONAL BADVINJURY $ 1,000,000 COVERAGES CERTIFICATE NUMBER: 344494 REVISION NUMBER: 345369 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. INSR LTR TYPE OF INSURANCE ADDL SUER POLICY NUMBER POLICY MM%DD� LIMITS B GENERAL LIABILITY 6806897547A 5/1/2015 5/1/2016 EACH OCCURRENCE $ 1,000,000 X 'COMMERCIAL GENERAL LIABILITY CLAIMS -MADE %❑ OCCUR DAMAGE TO RENi- PREMISES Ea occurrence $ 1,000,000 MED EXP (An one person) $ 10,000 PERSONAL BADVINJURY $ 1,000,000 X Cross Liab /Sev of Int X GENERAL AGGREGATE $ 2,000,000 Gli AGGREGATE LIMIT APPLIES PEFt PRODUCTS - COMP/OP AGG $ 2,000,000 Deductible $ 0 P0LIi PRO LOC A AUTOMOBILE LIABILITY 810927K6534 5/1/2015 5/1/2016 (Ea gciden EDSINGLELIMIT 1,000,000 X •ci BODILY INJURY (Per person) is ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS R BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ NON -OWNED HIRED AUTOS AUTOS $ UMBRELLA LIAR OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED RETENTION $ $ C WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANY PROPRIETOR/PARTNER/EXECUTIVE UB3893T615 5/1/2015 5/1/2016 X WCSTMIT OTH- E.L. EACH. ACCIDENT $ 1,000,000 OFFICERIMEMBER EXCLUDED? ❑ NIA E.L. DISEASE - EA EMPLOYEE $ 1,000,000 (MandalidiNMI Myes describe under DESCRIPTION OF OPERATIONS below I E.L. DISEASE - POLICY li $ 11000,000 D Professional Liability E7246005 5/1/2015 5/1/2016 Ea. Claim $5,.000,0.00 Aggreg $10,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space Is required) Re: Well 7, Waterline Agreement for Services. Additional Insured coverage applies to General and Automobile Liability for City of Gilroy, its officers, representatives, agents and employees per policy form. Prof. Liab. - Claims made, defense costs included within limit; Pollution Liability is included in policy form #ADI0510002. Cavignac & Associates will provide 30 days notice of cancellation to the Certificate Holder in the event of policy cancellation. GtK 1 IIi l r- NULIJCK UANLA:l i IJUN City of Gilroy 7351 Rosanna Street SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Gilroy, CA 95020 THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN United States I ACCORDANCE WITH THE POLICY PROVISIONS. HORIZED REPRESENTATIVE frey W. Cavignac w4iAcl ©1988 -2010 ACORD CORPORATION_ All rights reserved ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD EXIGIS - CAVIGNAC 8 ASSOCIATES 345369 Page 2 of 5 Policy No. 810927K6534 COMMERCIAL AUTO THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AUTO COVERAGE PLUS ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modi- fied by the endorsement. GENERAL DESCRIPTION OF COVERAGE —This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to the Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general cover- age description only. Limitations and exclusions may apply to these coverages. Read all the provisions of this en- dorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered. A. BLANKET ADDITIONAL INSURED H. AUDIO, VISUAL AND DATA ELECTRONIC B: EMPLOYEE HIRED AUTO C. EMPLOYEES AS INSURED D. SUPPLEMENTARY PAYMENTS — INCREASED LIMITS E. TRAILERS — INCREASED LOAD CAPACITY F. HIRED AUTO PHYSICAL DAMAGE G. PHYSICAL DAMAGE — TRANSPORTATION EXPENSES — INCREASED LIMIT A. BLANKET ADDITIONAL INSURED The following is added to Paragraph A.1., Who Is An Insured, of SECTION II — LIABILITY COV- ERAGE: Any person or organization who is required under a written contract or agreement between you and that person or organization, that is signed and executed by you before the "bodily injury" or "property damage" occurs and that is in effect during the policy period, to be named as an addi- tional insured is an "insured" for Liability Cover- age, but only for damages to which this insurance applies and only to the extent that person or or- ganization qualifies as an "insured" under the Who Is An Insured provision contained in Section II. B. EMPLOYEE HIRED AUTO 1. The following is added to Paragraph A.1., Who Is An Insured, of SECTION II — LI- ABILITY COVERAGE: EQUIPMENT — INCREASED LIMIT I. WAIVER OF DEDUCTIBLE —GLASS J. PERSONAL EFFECTS K. AIRBAGS L. AUTO LOAN LEASE GAP M. BLANKET WAIVER OF SUBROGATION performing duties related to the conduct of your business. 2. The following replaces Paragraph b. in B.5., Other Insurance, of SECTION IV — BUSI- NESS AUTO CONDITIONS: b. For Hired Auto Physical Damage Cover- age, the following are deemed to be cov- ered "autos" you own: (1) Any covered "auto" you lease, hire, rent or borrow; and (2) Any covered "auto" hired or rented by your "employee" under a contract in that individual "employee's" name, With your permission, while perform- ing duties related to the conduct of your business. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto ". An "employee" of yours is an "insured" while C. EMPLOYEES AS INSURED operating a covered "auto" hired or rented The following is added to Paragraph A.1., Who Is under a contract or agreement in that "em- An Insured, of SECTION II — LIABILITY COV- ployee's" name, with your permission, while ERAGE: CA T4 20 0710 C 2010 The Travelers Indemnity Company. Al rights reserved. Page 1 of 3 Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 3of5 Policy No. 810927K6534 COMMERCIAL AUTO Any "employee" of yours is an "insured" while us- ing a covered "auto" you don't own, hire or borrow in your business or your personal affairs. D. SUPPLEMENTARY PAYMENTS — INCREASED LIMITS 1. The following replaces Paragraph A.2.a.(2) of SECTION II — LIABILITY COVERAGE: (2) Up to $3,000 for cost of bail bonds (in- cluding bonds for related traffic law viola- tions) required because of an "accident" we cover. We do not have to furnish these bonds. 2. The following replaces Paragraph A.2.a.(4) of SECTION II — LIABILITY COVERAGE: (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day be- cause of time off from work. E. TRAILERS — INCREASED LOAD CAPACITY The following replaces Paragraph C.1. of SEC- TION I —COVERED AUTOS: 1. "Trailers" with a load capacity of 3,000 pounds or less designed primarily for travel on public roads. F. HIRED AUTO PHYSICAL DAMAGE The following is added to Paragraph AA., Cover- age Extensions, of SECTION III — PHYSICAL DAMAGE COVERAGE: Hired Auto Physical Damage Coverage If hired "autos" are covered "autos" for Liability Coverage but not covered "autos" for Physical Damage Coverage, and this policy also provides Physical Damage Coverage for an owned "auto ", . then the Physical Damage Coverage is extended to "autos" that you hire, rent or borrow subject to the following: (1) The most we will pay for "loss" in any one "accident" to a hired, rented or borrowed "auto" is the lesser of: (a) $50,000; (b) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (c) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. (3) If a repair or replacement results in better than like kind or quality, we will not pay for the amount of betterment. (4) A deductible equal to the highest Physical Damage deductible applicable to any owned covered "auto ". (5) This Coverage Extension does not apply to: (a) Any "auto" that is hired, rented or bor- rowed with a driver, or (b) Any "auto" that is hired, rented or bor- rowed from your "employee ". G. PHYSICAL DAMAGE — TRANSPORTATION EXPENSES —INCREASED LIMIT The following replaces the first sentence in Para- graph A.4.a., Transportation Expenses, of SECTION 111 — PHYSICAL DAMAGE COVER- AGE: We will pay up to $50 per day to a maximum of $1,500 for temporary transportation expense in- curved by you because of the total theft of a cov- ered "auto" of the private passenger type. H. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT— INCREASED LIMIT Paragraph C.2.. Limit Of Insurance, of SEC- TION III — PHYSICAL DAMAGE COVERAGE is deleted. 1. WAIVER OF DEDUCTIBLE — GLASS The following is added to Paragraph D., Deducti- ble, of SECTION III — PHYSICAL D_ AMAGE COVERAGE: No deductible for a covered "auto" will apply to glass damage if the glass is repaired rather than replaced. J. PERSONAL EFFECTS The following is added to Paragraph AA., Cover- age Extensions, of SECTION III — PHYSICAL DAMAGE COVERAGE: Personal Effects Coverage We will pay up to $400 for "loss" to wearing ap- parel and other personal effects which are: (1) Owned by an "insured "; and (2) In or on your covered "auto ". This coverage only applies in the event of a total theft of your covered "auto ". No deductibles apply to Personal Effects cover- (2) An adjustment for depreciation and physical age. condition will be made in determining actual cash value in the event of a total "loss ". Page 2 of 3 © 2010 The Travelers Indemnity Company. All rights reserved. Includes copyrighted material of Insurance Services Office, Inc. with its permission. CA T4 20 07 10 Page 4 of 5 Policy No. 810927K6534 K. AIRBAGS The following is added to Paragraph B.3., Exclu- sions, of SECTION III — PHYSICAL DAMAGE COVERAGE: Exclusion 3.a. does not apply to "loss" to one or more airbags in a covered "auto" you own that in- flate due to a cause other than a cause of "loss" set forth in Paragraphs A.1.b. and A.1.c., but only: a. If that "auto" is a covered "auto" for Compre- hensive Coverage under this policy; b. The airbags are not covered under any war- ranty; and c.. The airbags were not intentionally inflated. We will pay up to a maximum of $1,000 for any one 'loss ". L. AUTO LOAN LEASE GAP The following is added to Paragraph AA., Cover- age Extensions, of SECTION 111 — PHYSICAL DAMAGE COVERAGE: Auto Loan Lease Gap Coverage for Private Passenger Type Vehicles In the event of a total "loss" to a covered "auto" of the private passenger type shown in the Schedule or Declarations for which Physical Damage Cov- erage is provided, we will pay any unpaid amount due on the lease or loan for such covered "auto" less the following: (1) The amount paid under the Physical Damage Coverage Section of the policy for that "auto "; and COMMERCIAL AUTO (2) Any: (a) Overdue lease or loan payments at the time of the "loss'; (b) Financial penalties imposed under a lease for excessive use, abnormal wear and tear or high mileage; (c) Security deposits not returned by the les- sor; (d) Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease; and (e) Carry-over balances from previous loans or leases. M. BLANKET WAIVER OF SUBROGATION The following replaces Paragraph A.S., Transfer Of Rights Of Recovery Against Others To Us, of SECTION IV — BUSINESS AUTO CONDI- TIONS: 5. Transfer Of Rights Of Recovery Against Others To Us We waive any right of recovery we may have against any person or organization to the ex- tent required of you by a written contract exe- cuted prior to any "accident" or "loss ", pro- vided that the "accident" or "loss" arises out of the operations contemplated by such con- tract. The waiver applies only to the person or organization designated in such contract. CA T4 20 07 10 © 2010 The Travelers Indemnity Company. All rights reserved. Page 3 of 3 Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 5 of 5 POLICY NUMBER: 6806697547A COMMERCIAL GENERAL LIABILITY CG 20 12 07 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - STATE OR POLITICAL SUBDIVISIONS - PERMITS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE State Or Political Subdivision: City of Gilroy, its officers, representatives, agents and employees 7351 Rosanna Street Gilroy, CA 95020 (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) Section II — Who Is An Insured is amended to include as an insured any state or political subdivi- sion shown in the Schedule, subject to the following provisions: 1. This insurance applies only with respect to op- erations performed by you or on your behalf for which the state or political subdivision has issued a permit. 2. This insurance does not apply to: a. 'Bodily injury," "property damage" or "per- sonal and advertising 'injury" arising out of operations performed for the state or munici- pality; or b. 'Bodily injury" or "property damage" included within the "products- completed operations hazard ". CG 2012 07 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 E3