CONTRACT 3364G AmendmentAgreement No. 3364G
SEVENTH AMENDMENT TO PROPERTY MANAGEMENT
AGREEMENT BETWEEN THE EL SEGUNDO SENIOR CITIZEN
HOUSING CORPORATION AND CADMAN GROUP, INC.
This SEVENTH AMENDMENT ("Amendment") to the PROPERTY MANAGEMENT
AGREEMENT BETWEEN THE EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION
AND NEIL R. CADMAN DBA CADMAN GROUP (since incorporated as Cadman Group, Inc., a
California Corporation) dated October 1, 2004 ("Agreement") is made and entered into effective as of
the 9th day of October, 2022 (the "Effective Date"), by and between the El Segundo Senior Citizen
Housing Corporation, a California nonprofit public benefit corporation ("Owner") and Cadman Group,
Inc., a California Corporation ("Manager").
WHEREAS, Section 13.2.1.1 of the Agreement obligates Manager to maintain, on behalf of
Owner and at the expense of Owner, a policy of insurance described as "Fire with extended coverage
with coverage on buildings in an amount not less than $4,859,500 and coverage on contents of not less
than $24,100 with a deductible amount not to exceed $1,000;"
WHEREAS, in accordance with Section 13.2.1.1 of the Agreement, Manager has heretofore
maintained the required policy of insurance;
WHEREAS, for the period from October 9, 2020 through October 9, 2021, Manager obtained
a policy of insurance through Topa Insurance Company consistent with the requirements of Section
13.2.1.1 at a cost of $30,208.00;
WHEREAS, for the period from October 9, 2021 through October 9, 2022, Manager obtained
a policy of insurance through Comstar General Insurance Solutions consistent with the requirements of
Section 13.2.1.1 at a cost of $25,149.59;
WHEREAS, on October 4, 2022, five days before the policy was set to expire, Manager was
informed that the renewal rate for the policy would be $62,188.78;
WHEREAS, upon being informed of the sharp increase in the insurance premium, Manager
contacted an insurance broker to price out other carriers for a comparable policy;
WHEREAS, Manager was informed that no other carrier would agree to underwrite the policy
either because the building is government owned or because of its loss history;
WHEREAS, Manager contacted Hank Lu, Risk Manager for the City of El Segundo (the
owner of the Park Vista property) to inquire about alternative insurance options that may be open to
the City at a lower cost;
WHEREAS, the City's Risk Manager informed Manager that the building is covered on an
excess basis though the City's insurance pool (the Independent Cities Risk Management Authority
("ICRMA"));
. .... _..m� �Agreemen#�No. 3364G �.
WHEREAS, the City of El Segundo, through the ICRMA, maintains property coverage for the
Park Vista facility that the City's Risk Manager has deemed adequate;
WHEREAS, the City of El Segundo's securing of property coverage for Park Vista through
the ICRMA obviates the need for Manager to obtain the policy of insurance otherwise required by
Section 13.2.1.1 of the Agreement; and
WHEREAS, the parties wish to amend the Agreement to delete Manager's obligation to
maintain the property insurance policy currently required by Section 13.2.1.1.
NOW, THEREFORE, in exchange for valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
1. Section 13.2.1.1 of the Agreement is hereby amended to read as follows:
"13.2.1.1 Reserved."
2. This Amendment may be executed in any number or counterparts, each of which will
be an original, but all of which together constitute one instrument executed on the same date.
3. Except as otherwise provided herein, all terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS HEREOF, the parties hereto have affixed their respective signatures as of the
Effective Date.
EL SEGUNDO SENIOR CITIZENS
Ltuet P inancai Ulticer
jATT'RNE
S TO FORM:r
CADMAN GR UP, INC.
NEIL R. CA AN,, JBI ENT
Neil P.a nian
Taxpayer ID
Insular o Approval:
Hank L Manager
2