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<br />replacements in connection with the work are, in the opinion of the City Engineer, <br />rendered necessary as a result of the use of inferior or defective materials, equipment or <br />workmanship, Contractor agrees, upon receipt of notice from City, and without expense to <br />City, to promptly repair or replace such material or workmanship and/or correct any and <br />all defects therein. If Contractor, after such notice, fails to proceed promptly to comply <br />with the terms of this guarantee, City may perform the work necessary to effectuate such <br />correction and recover the cost thereof from Contractor or his sureties, <br /> <br />Any and all other special guarantees which may be applicable to definite parts of the work <br />under this Agreement shall be considered as an additional guarantee and shall not reduce <br />or limit the guarantee as provided by Contractor pursuant to this paragraph during the first <br />year of the life of such guarantee, <br /> <br />7. Contractor hereby agrees to indemnify and save harmless City, its Council, officers, <br />boards, commissions, agents and employees of and from any and all claims, suits or <br />actions of every name, kind and description which may be brought against City, its <br />Council, officers, boards, commissions, agents, or employees by reason of any injury to or <br />death of any person or damage suffered or sustained by any person or corporation, <br />caused by, or alleged to have been caused by, any act or omission to act, negligent or <br />otherwise, of Contractor, its officers, agents or employees in the performance of any work <br />required of Contractor by this Agreement. <br /> <br />The duty of Contractor to indemnify and save harmless, as set forth herein, shall include a <br />duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, <br />that nothing herein shall be construed to require Contractor to indemnify City, its Council, <br />officers, boards, commissions, agents and employees against any responsibility or liability <br />in contravention of Section 2782 of the California Civil Code. <br /> <br />8. Contractor, at its sole cost and expense, shall acquire and maintain in full force and effect <br />throughout the term of this Agreement Workers' Compensation, employer's liability, <br />commercial general liability, and owned, non-owned and hired automobile liability <br />insurance coverage relating to Contractor's Work to be performed hereunder covering <br />City's risks in form subject to the approval of the City Attorney, The minimum amounts of <br />coverage corresponding to the aforesaid categories of insurance per <br /> <br />Insurance Cateaorv <br /> <br />Workers' Compensation <br />Employer's Liability <br /> <br />Commercial General Liability <br /> <br />Minimum Limits <br /> <br />Statutory minimum. <br />$1,000,000.00 per accident for <br />bodily injury or disease. <br />$1,000,000.00 per occurrence, <br />$2,000,000.00 for bodily injury, person <br />injury and property damage. <br />$1,000,000.00 per accident, <br />$2,000,000.00 for bodily injury and <br />property damage (coverage required to <br />the extent applicable to Contractor's <br />vehicle usage in performing work <br />hereunder). <br />5 <br /> <br />Automobile Liability <br /> <br />Agmt-378 <br />DES:djk <br />F: ISh ared/Redw ood/ Coun c iJ <br />07/27/00 <br />