Downtown building cleaning contracts status update, April 2002

NYC 9/11 Public Portal Document

Giisenan, Michael From: Pecunies, Russ [NYCDEP/QUEENS/RUSSP] Sent: Monday, April 15, 2002 2:40 PM To: ’[email protected]'; '[email protected]'; '[email protected]'; '[email protected]': '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' Cc: Hoffer, Mark; Giisenan, Michael; Radhakrishnan, Krish Subject: Downtown Building Cleaning

To update everyone concerning the downtown building cleaning issue... Bids for all three contracts have been opened and three low bidders have been identified. The contracts have not been awarded pending changes to the insurance specifications and resolution of outstanding issues regarding the letter and license agreement.

I have attached the current drafts of the letter and license agreement. I think the letter is pretty close to being done. Please advise if you have any additional comments.

As for the License Agreement, the new draft incorporates several comments from Steve Levi of NYC Law Dept. You will note that there is no indemnification clause of any kind. This is because I am getting conflicting signals on who needs to be covered by whom and for what. So far it appears that FEMA and SEMO require some kind of language for the City to indemnify NYS from claims arising out of the debris removal so that NYS can indemnify FEMA and Fed Govt from such claims. A question has also been raised as to whether the building owners should be indemnifying NYC. Please provide any and all comments with regard to the issue of indemnification so I can try to pull something together that will satisfy everyone.

Also: FEMA has proposed the addition of the following paragraph:

Licensor shall reimburse Licensee for the removal of the debris accumulations provided for in this License Agreement from any compensation it receives from any other source including, but not limited to, the Small Business Administration, private insurance or any other local, state or federal assistance program. Licensor shall make claim for any applicable insurance coverage for these premises and shall report to Licensee any insurance settlements or other source of funding for debris removal that has been performed at Licensee’s expense.

Please comment.

Finally, as I mentioned above, we are amending the insurance specs which were included in the bid package. Please provide comments as to who (other than NYC, which is already named) should be named as additional insureds.

wtcownerltr.doc BLDGFACD.LIC

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