23-007 David Wellhouse Amendment #1 dated 5-21-25 Annual State Mandated Cost Claiming Services (SB 90)1
FIRST AMENDMENT TO AGREEMENT 659 BETWEEN
THE CITY OF CUPERTINO AND DAVID WELLHOUSE
& ASSOCIATES INC FOR PREPARATION AND FILING
OF THE CITY'S ANNUAL CLAIMS FOR STATE
MANDATED COST REIMBURSEMENT UNDER SB 90
This First Amendment to Agreement 659 is by and between the City of Cupertino, a
municipal corporation (hereinafter "City") and David Wellhouse & Associates, Inc., a (“Contractor”)
whose address is 3609 Bradshaw Rd., Ste. H-382, Sacramento, CA 95827, and is made with
reference to the following:
RECITALS:
A. On January 26, 2023, Agreement 659 (“Agreement”) was entered into by and between
City and Contractor for preparation and filing of the City's annual claims for state mandated
cost reimbursement under SB 90.
B. City and Contractor desire to modify the Agreement on the terms and conditions set
forth herein.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Paragraph 2 of the Agreement is modified to read as follows: Contractor agrees to provide the
services and perform the tasks (“Services”) set forth in detail in the Scope of Services, attached
here and incorporated as Exhibit A-1.
Exhibit A to the Agreement is replaced with Exhibit A-1, attached hereto.
2. Paragraph 3.1 of the Agreement is modified to read as follows:
3.1 This Agreement begins on the Effective Date and ends on June 30, 2028 (“Contract
Time”), unless terminated earlier as provided herein. Contractor’s Services shall begin on the
effective date and shall be completed by June 30, 2028.
Exhibit B to the Agreement is replaced with Exhibit B-1, attached hereto.
3. Paragraph 4.1 of the Agreement is modified to read as follows:
Maximum Compensation. City will pay Contractor for satisfactory performance of the
Services an amount that will be based on actual costs but that will be capped so as not to
exceed $24,000.00 (“Contract Price”), based upon the scope of services in Exhibit A-1 and the
budget and rates included in Exhibit C-1. The maximum compensation includes all expenses
and reimbursements and will remain in place even if Contractor’s actual costs exceed the
capped amount. No extra work or payment is permitted without prior written approval of City.
Exhibit C to the Agreement is replaced with Exhibit C-1, attached hereto.
2
4. Except as expressly modified herein, all other terms and covenants set forth in the
Agreement shall remain the same and shall be in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement
to be executed.
CITY OF CUPERTINO
By
Title
Date
APPROVED AS TO FORM
Senior Assistant City Attorney
ATTEST:
City Clerk
Date
DAVID WELLHOUSE & ASSOCIATES, INC
By
Title
Date
EXPENDITURE DISTRIBUTION
Item PO Number Amount
Original Agreement 2024-264 12,000.00
First Amendment 2024-264 12,000.00
TOTAL 2024-264 24,000.00
Renee M. Wellhouse
President
05/16/2025
Acting City Manager
05/20/2025
05/21/2025
Exhibit A-1
Scope of Work
Claims to be Filed: CONSULTANT shall prepare and file with the State Controller's Office on
behalf of CITY, the following state mandated cost (SB90} claims during the 2024/2025,
2025/2026, and 2026 /2027 fiscal year.
A.February 2026 Annual Claims for fiscal year 2024 /2025 to be prepared and filed on or
before February 15, 2026, as required by the State Controller's Claiming Instructions.
February 2027 Annual Claims for fiscal year 2025 /2026 to be prepared and filed on or
before February 15, 2027, as required by the State Controller's Claiming Instructions.
February 2028 Annual Claims for fiscal year 2026/2027 to be prepared and filed on or
before February 15, 2028, as required by the State Controller's Claiming Instructions.
CITY acknowledges that CONSULTANT does not warrant that claims will be filed for all the
mandates listed in Scope of Work . CONSULTANT shall only prepare and file claims for those
mandates listed in Scope of Work, of which the CITY has reimbursable costs.
The claims and services described in Section 1 shall hereinafter referred to as "Project"
CONSULTANT hereby designates Renee Wellhouse to be sole contact and agent in all
consultations with CITY during the performance of services as stated in the PROJECT.
Time For Performance: CONSULTANT shall file all claims in accordance with the State
Controller's claim filing deadline contained in the applicable State Controller's Claiming
Instructions.
CITY ASSISTANCE: CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this agreement. CITY shall provide CONSULTANT with requested information in
a timely manner, pursuant to PROJECT. CITY represents and warrants that all financial
documents and other information provided are accurate and correct . CONSULTANT shall not be
liable for claims that are not filed or incorrectly filed due to inaccurate or untimely data .
I
Exhibit B-1
Schedule of Performance
Time For Performance CONSULTANT shall file all claims in accordance with the State Controller's
claim filing deadline contained in the applicable State Controller's Claiming Instructions.
•February 2026 Annual Claims for fiscal year 2024/2025 to be prepared and filed on or
before February 15, 2026, as required by the State Controller's Office Claiming
Instructions.
•February 2027 Annual Claims for fiscal year 2025/2026 to be prepared and filed on or
before February 15, 2027, as required by the State Controller's Office Claiming
Instructions.
•February 2028 Annual Claims for fiscal year 2026/2027 to be prepared and filed on or
before February 15, 2028, as required by the State Controller's Office Claiming
Instructions.
Disposition of Documents: CONSULTANT shall furnish to CITY copies of all claims filed with the
State Controller's Office within thirty {30) days after filing.
Exhibit C-1
Contract Cost
Compensation: CITY agrees to pay CONSULTANT a fixed fee in the amount of $4,000.00 for
claims filed for the February 2026 claims for claims in fiscal year 2024/2025, $4,000.00 for
claims filed for fiscal year 2025/2026, and $4,000.00 for claims filed for fiscal year 2026/2027, as
required by the State Controller's Office Claiming Instructions. Cost will not exceed $12,000.00
in total.
Indirect Costs: CONSULTANT shall make every effort to prepare departmental Indirect Cost Rate
Proposals for claims submitted, provided CITY financial information and departmental costs
support such rates. CONSULTATANT may utilize the ten percent (10) indirect rate allowed by the
State Controller if financial in formation and departmental costs do not support a higher rate.
Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts
1
Version: April 2025
Consultant shall procure prior to commencement of Services and maintain for the duration of the contract, at its
own cost and expense, the following insurance policies and coverage with companies doing business in California
and acceptable to City.
INSURANCE POLICIES AND MINIMUMS REQUIRED
1. Commercial General Liability (CGL) with coverage at least as broad as Insurance Services Office
(ISO) Form CG 00 01, with limits no less than $2,000,000 per occurrence and $2,000,000 general
aggregate. The policy shall include a per project or per location general aggregate endorsement as
broad as CG 25 03 or CG 24 04. If a per project/location endorsement is not available, the limit of
the general aggregate shall be doubled.
a. It shall be a requirement that any available insurance proceeds broader than or in excess of the
specified minimum insurance coverage requirements and/or limits shall be made available to the
Additional Insured and shall be (i) the minimum coverage/limits specified in this agreement; or (ii) the
broader coverage and maximum limits of coverage of any insurance policy, whichever is greater.
b. Additional Insured coverage under Consultant's policy shall allow and be endorsed "primary and
non-contributory," will not seek contribution from City’s insurance/self-insurance, and shall be at least
as broad as the most recent edition of ISO Form CG 20 01.
c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess
liability insurance, provided each policy follows form of the underlying policy and complies with the
requirements set forth in this Contract. Any umbrella or excess insurance shall contain or be endorsed to
contain a provision that such coverage shall also apply on a primary basis for the benefit of City. The
City’s own insurance or self-insurance shall not be called upon.
2. Automobile Liability: Coverage shall be provided using ISO CA 00 01 covering any auto (including
owned, hired, and non-owned autos) with limits no less than $1,000,000 each accident for bodily injury
and property damage.
Not required. Consultant shall be fully remote and not use automobiles to provide the service.
In the event Consultant uses an automobile or automobiles in the operation of its business to provide
services under this Agreement, the Consultant shall, prior to such use, provide the City with evidence
of Business Automobile Liability insurance coverage in the amount required under this Section 2 for
owned, non-owned and hired autos (any auto-Symbol 1), or if Consultant does not own autos (hired
autos-Symbol 8 and non-owned autos-Symbol 9). Evidence shall be provided with a Certificate of
Insurance, along with an additional insured endorsement in favor of the City, primary and non-
contributory coverage and endorsement, and waiver of subrogation coverage and endorsement under
the policy prior to the use of any automobile.
Consultant has provided written confirmation that it does not own any autos. Consultant shall provide
coverage for hired autos-Symbol 8 and non-owned autos-Symbol 9. Primary and Non-Contributory
coverage and Waiver of Subrogation coverage is waived under the Automobile Liability hired and
non-owned only coverage. In the event Consultant uses an owned automobile or automobiles in the
operation of its business to provide services under this Agreement, the Consultant shall, prior to such
use, provide the City with evidence of Business Automobile Liability insurance coverage in the
amount required under this Section 2 for owned, non-owned and hired autos (any auto-Symbol 1).
EXHIBIT D
Insurance Requirements
Design Professionals & Consultants Contracts
Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts
2
Version: April 2025
In lieu of Business Automobile Liability, Consultant shall maintain throughout the term of this
Agreement and provide the City with evidence (including the policy Declarations Page) of personal
automobile insurance coverage in accordance with the laws of the State of California. As available
under the policy, evidence shall be provided with the Certificate of Insurance, along with an additional
insured endorsement in favor of the City, primary and non-contributory coverage and endorsement,
and waiver of subrogation coverage and endorsement. City approval of coverage is required prior to
commencement of services.
3. Workers’ Compensation: As required by the State of California, with Statutory Limits and Employer’s
Liability Insurance of no less than $1,000,000 each accident/ disease.
Not required. Consultant has provided written verification of no employees.
4. Professional Liability for professional acts, errors and omissions, if applicable and as appropriate to
Consultant’s profession, with limits no less than $2,000,000 per occurrence or claim, $2,000,000
aggregate. If written on a claims-made basis form:
a. The Retroactive Date must be shown and must be before the Effective Date of the Contract.
b. Insurance must be maintained for at least five (5) years after completion of the Services.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a
Retroactive Date prior to the Contract Effective Date, the Consultant must purchase “extended
reporting” coverage for a minimum of five (5) years after completion of the Services.
OTHER INSURANCE PROVISIONS
The aforementioned insurance policies shall contain, be endorsed and have all the following conditions and
provisions:
Additional Insured Status
The City of Cupertino, its City Council, officers, officials, employees, agents, and volunteers (“Additional
Insureds”) are to be covered and endorsed as additional insureds on Consultant’s CGL and automobile liability
policies. General Liability coverage can be provided in the form of an endorsement to Consultant’s insurance
(at least as broad as ISO Form CG 20 10 (11/ 85) or if not available, through the addition of both CG 20 10 and
CG 20 37 forms, if later editions are used).
Primary and Non-Contributory Coverage
Except Workers Compensation, coverage afforded to City/Additional Insureds shall allow and be endorsed
primary insurance. Any insurance or self-insurance maintained by City, its officers, officials, employees, or
volunteers shall be excess of Consultant’s insurance and shall not contribute to it.
Notice of Cancellation
Each insurance policy shall state that coverage shall not be canceled or allowed to expire, except with written
notice to City 30 days in advance or 10 days in advance if due to non-payment of premiums. If a carrier will
not provide the required notice of cancellation or policy modification, the Consultant shall provide written
notice to the City of a cancellation or policy modification no later than five (5) business days before
cancellation or policy modification.
Waiver of Subrogation
Consultant waives any right to subrogation against City/Additional Insureds for recovery of damages to the
extent said losses are covered by the insurance policies required herein. Specifically, the General Liability,
Automobile Liability and Workers’ Compensation policies shall allow and be endorsed with a waiver of
subrogation in favor of City, its employees, agents and volunteers. This provision applies regardless of whether
or not the City has received a waiver of subrogation endorsement from the insurer.
Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts
3
Version: April 2025
Deductibles and Self-Insured Retentions
Any deductible or self-insured retention must be declared to and approved by the City (Insert on the Certificate
of Insurance, if zero, insert “$0”). At City’s option, either: the insurer must reduce or eliminate the deductible
or self-insured retentions as respects the City/Additional Insureds; or Consultant must show proof of ability to
pay losses and costs related investigations, claim administration and defense expenses. The policy shall provide,
or be endorsed to provide, that the self-insured retention may be satisfied by either the insured or the City.
Acceptability of Insurers
Insurance shall be placed with insurers admitted in the State of California and with an AM Best rating of A-
VII or higher.
Verification of Coverage
Consultant must furnish acceptable insurance certificates and amendatory endorsements (or copies of the policies
effecting the coverage required by this Contract), including a copy of the Declarations and Endorsement Page
of the CGL policy listing all policy endorsements prior to commencement of the Contract. City retains the right
to demand verification of compliance at any time during the Contract term.
Subconsultants
Consultant shall require and verify that all subconsultants maintain insurance that meet the requirements of this
Contract, including indemnification, defense, and naming the City as an additional insured on subconsultant’s
insurance policies.
Higher Insurance Limits
If Consultant maintains broader coverage and/or higher limits than the minimums shown above, City shall be
entitled to coverage for the higher insurance limits maintained by Consultant.
Adequacy of Coverage
City reserves the right to modify these insurance requirements/coverage based on the nature of the risk, prior
experience, insurer or other special circumstances, with not less than ninety (90) days prior written notice.
Annual State Mandated Cost Claiming Services
(SB 90)
Final Audit Report 2025-05-21
Created:2025-05-15
By:Webmaster Admin (webmaster@cupertino.org)
Status:Signed
Transaction ID:CBJCHBCAABAA1ZnaJVB9CLYqRESxiKs_omNYMXBO-nMt
"Annual State Mandated Cost Claiming Services (SB 90)" Histor
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