Report to Carson Reclamation Authority
Tuesday, May 08, 2018
Discussion
SUBJECT:
Title
APPROVE A SECOND AMENDMENT TO THE AGREEMENT WITH RE|SOLUTIONS, LLC ("RES") LIMITING RES' LIABILITY TO CRA FOR ANY AND ALL CLAIMS ARISING UNDER OR OUT OF THE NEGLIGENT OR IMPROPER DESIGN OF THE PILES, SUBJECT TO CERTAIN LIMITATIONS
Body
I. SUMMARY
For the reasons described below, this requested action limits RES's liability to the CRA for third party pile-design claims (bodily injury, property damage and repair/replacement) to $3 million for any and all claims arising under or out of the negligent or improper design of the piles that are to be installed on the Property. This arises out of the Development Management Agreement with RES, where the CRA is obligated to provide RES with the same liability insurance coverage as the CRA in all policies because of the nature of their work on behalf of CRA, but due to the fact that access to the Owner Protective Professional Indemnity ("OPPI") policy is unavailable to RES because RES is not in fact the property owner. The proposed limitation is a substitute for placing RES on the OPPI (or having to purchase additional insurance coverage for RES), allows CRA and CAM-Carson LLC (Macerich) receive the full benefit of the $25MM OPPI coverage, and provides RES a limited protection for the specific circumstance related to the design of the piles, and thus fulfilling CRA's obligations under the Development Management Agreement. There is no additional out-of-pocket cost to CRA for this arrangement.
II. RECOMMENDATION
Recommendation
1. AUTHORIZE the Executive Director to execute an amendment to the RES Development Management Agreement, in a form acceptable to Authority Counsel, limiting RES's maximum aggregate liability to CRA for any and all claims arising under or out of the negligent or improper design of the piles, and only for such matters, to Three Million Dollars ($3,000,000) provided that this limitation of liability shall no...
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