HomeMy WebLinkAboutC-6432 - Purchase and Installation Agreement for Solar Shades at the Marina Park Community Center;.1
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PURCHASE AND INSTALLATION AGREEMENT
WITH BUDGET BLINDS OF IRVINE FOR SOLAR SHADES AT
THE MARINA PARK COMMUNITY CENTER
THIS PURCHASE AND INSTALLATION AGREEMENT ("Agreement") is made and
entered into as of this 11t day of January, 2016 ("Effective Date") by and between the
CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"),
and Kevin and Stacy Kearney, a married couple doing business as ("DBA") Budget Blinds
of Irvine ("Contractor"), whose principal place of business is 14252 Culver Drive #A574,
Irvine, CA 92604, and is made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws of
the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of Califomia and the Charter of City.
B. City desires to engage Contractor to provide and install solar shades and anodized
fascia as detailed in the Scope of Work and Schedule of Billing Rates attached
hereto as Exhibit "A" ("Project").
C. Contractor has examined the location of all proposed work, carefully reviewed and
evaluated the specifications set forth by the City for the Project, is familiar with all
conditions relevant to the performance of services and has committed to perform all
work required for the price specified in this Agreement.
D. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
SCOPE OF WORK
1.1 Contractor shall provide all tangible items and perform all the services
described in the Scope of Work attached hereto as Exhibit "A" and incorporated herein by
reference. As a material inducement to the City entering into this Agreement, Contractor
represents and warrants that Contractor is a provider of first class work and services and
Contractor is experienced in performing the work and services contemplated herein and, in
light of such status and experience, Contractor covenants that is shall follow the highest
professional standards in performing the work and services required hereunder and that all
materials will be of good quality. For purposes of this Agreement, the phrase "highest
professional standards" shall mean those standards of practice recognized by one or more
first-class firms performing similar work under similar circumstances.
Budget Blinds of Irvine Page 1
1.2 Contractor shall perform everything required to be performed, and shall
provide and furnish all the labor, materials, necessary tools, expendable equipment and all
utility and transportation services necessary for the Project.
1.3 In consideration of the payment of the Purchase Price and subject to all the
terms and conditions hereof, Contractor shall: provide and install solar shades and
anodized fascia (hereinafter referred to as "Products"), as listed and set forth in the Scope
of Work attached hereto as Exhibit "A" and incorporated in full by this reference.
2. TIME OF PERFORMANCE
2.1 Time is of the essence in the performance of services under this Agreement
and Contractor shall complete the Project installation, implementation and acceptance
testing within the time set forth in Exhibit "A". The failure by Contractor to meet this
schedule may result in termination of this Agreement by City as outlined in Section 16
below.
2.2 Force Majeure. The time period(s) specified in Exhibit "A" for performance
of services rendered pursuant to this Agreement shall be extended because of any delays
due to unforeseeable causes beyond the control and without the fault or negligence of
Contractor, including but not restricted to acts of God or of the public enemy, unusually
severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes,
freight embargoes, wars, and/or acts of any governmental agency, including the City, if
Contractor shall within ten (10) days of the commencement of such delay notify City in
writing of the cause of the delay. City shall ascertain the facts and extent of delay, and
extend the time for performing the services for the period of the enforced delay when and if
in the judgment of the City such delay is justified. City's determination shall be final and
conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to
recover damages against City for any delay in performance of this Agreement, however
caused, Contractor's sole remedy being extension of the Agreement pursuant to this
Section.
3. TERM
Unless earlier terminated in accordance with Section 16 of this Agreement, this
Agreement shall continue in full force and effect until completion of the services agreed to
herein or until March 25, 2016, whichever occurs first.
4. COMPENSATION
4.1 City shall pay Contractor for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and Exhibit "A" which is
incorporated herein by reference. Contractor's compensation for all Work performed in
accordance with this Agreement, including all reimbursable items and subcontractor fees,
shall not exceed Five Thousand Dollars and 00/100 ($5,000.00), without prior written
authorization from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City.
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4.2 Contractor shall submit monthly invoices to City describing the Work
performed the preceding month. Contractors bills shall include the name of the person
who performed the Work, a brief description of the Services performed and/or the specific
task in the Scope of Services to which it relates, the date the Services were performed, the
number of hours spent on all Work billed on an hourly basis, and a description of any
reimbursable expenditures. City shall pay Contractor no later than thirty (30) calendar
days after approval of the monthly invoice by City staff.
4.3 City shall reimburse Contractor only for those costs or expenses specifically
identified in Exhibit "A" to this Agreement or specifically approved in writing in advance by
City.
4.4 Contractor shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion of the Project,
but which is not included within the Scope of Services and which the parties did not
reasonably anticipate would be necessary at the execution of this Agreement.
Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit "A".
4.5 Contractor shall provide City with a minimum fourteen (14) days' notice of its
dates of installation to enable the City to prepare the installation sites for the Products in
accordance with the instructions of Contractor. The City shall complete site preparation
prior to the date of installation of the Products, and the site shall thereafter be available for
inspection and approval. All costs and expenses related to the site preparation shall be at
the sole expense of City.
5. PROJECT MANAGER
Contractor shall designate a Project Manager, who shall coordinate all phases of
the Project. This Project Manager shall be available to City at all reasonable times during
the term of the Agreement. Contractor has designated Kevin and/or Stacy Kearney to be
its Project Manager. Contractor shall not remove or reassign the Project Manager without
the prior written consent of City. City's approval shall not be unreasonably withheld.
6. ADMINISTRATION
This Agreement will be administered by the Recreation & Senior Services
Department. City's Recreation Manager or designee shall be the Project Administrator
and shall have the authority to act for City under this Agreement.
7. TYPE AND INSTALLATION OF MATERIALS/STANDARD OF CARE
7.1 Contractor shall use only the standard materials described in Exhibit "A" in
performing services under this Agreement. Any deviation from the materials described in
Exhibit "A" shall not be installed unless approved in advance by the City Project
Administrator.
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7.2 All of the services shall be performed by Contractor or under Contractor's
supervision. Contractor represents that it possesses the personnel required to perform the
services required by this Agreement, and that it will perform all services in a manner
commensurate with community professional standards. All services shall be performed by
qualified and experienced personnel who are not employed by City, nor have any
contractual relationship with City.
8. RESPONSIBILITY FOR DAMAGES OR INJURY
8.1 City and all officers, employees and representatives thereof shall not be
responsible in any manner for any loss or damage to any of the materials or other things
used or employed in performing the Project or for injury to or death of any person as a
result of Contractor's performance of the services required hereunder, or for damage to
property from any cause arising from the performance of the Project by Contractor, or its
subcontractors, or its workers, or anyone employed by either of them, unless caused by
the Citys negligent acts, omissions, or willful misconduct.
8.2 Contractor shall be responsible for any liability imposed by law and for
injuries to or death of any person or damage to property resulting from defects,
obstructions or from any cause to the extent arising from the negligent acts, omissions, or
willful misconduct of the Contractor or any subcontractor or supplier selected by the
Contractor.
8.3 Contractor shall indemnify, hold harmless, and defend City, its officers,
employees, agents, officers, representatives, employees and City Council, boards and
commissions, from and against: (1) any and all loss, damages, liability, claims, allegations
of liability, suits, costs and expenses for damages of any nature whatsoever, including, but
not limited to, bodily injury, death, personal injury, property damage, or any other claims to
the extent arising from any and all negligent acts or omissions or willful misconduct of
Contractor, its employees, agents or subcontractors in the performance of services or
work conducted or performed pursuant to this Agreement; (2) use of improper materials in
performing this Project including, without limitation, defects in workmanship or materials
and/or design defects; and/or (3) any and all claims asserted by Contractor's
subcontractors or suppliers on the Project, and shall include reasonable attorneys' fees
and all other costs incurred in defending any such claim. Contractors liability in this
Subsection shall be limited to the maximum amount of its insurance coverage for claims
arising out non -negligent and non -intentional acts performed under this Agreement.
Contractor shall not be held responsible for consequential or special damages, or claims
made to City for such consequential or special damages. Nothing herein shall require
Contractor to indemnify City from the negligence or willful misconduct of City, its officers or
employees.
8.4 intellectual Property Indemnity - Contractor shall defend, indemnify and hold
City, its agents, officers, representatives, employees and City Council, boards and
commissions harmless from any proceeding brought against City for any intentional or
unintentional violation of the intellectual property rights of any third party with respect to
Products deliverables purchased in this Agreement This indemnification shall include, but
is not limited to, infringement of any United States' letters patent, trademark, or copyright
Budget Blinds of Irvine Page 4
infringement, including costs, contained in Contractor's deliverables provided under this
Agreement.
8.5 Contractor shall perform all Project work in a manner to minimize public
inconvenience and possible hazard, to restore other work areas to their original condition
and former usefulness as soon as possible, and to protect public and private property.
Contractor shall perform work as specified in Exhibit "A" to limit impacts to traffic during the
system installation period. Contractor shall be liable for any private or public property
damaged during the performance of the Project work.
8.6 Contractor shall provide traffic control and access in accordance with
Section 7-10 of the State Standard Specifications and the latest edition of the Work Area
Traffic Control Handbook (WATCH), as published by Building News, Inc.
8.7 Traffic control and detours shall at a minimum meet the following
requirements:
8.7.1 Emergency vehicle access shall be maintained at all times
8.7.2 The locations and wordings of all barricades, signs, delineators,
lights, warning devices, parking restrictions, and any other required details shall ensure
that all pedestrian and vehicular traffic will be handled in a safe manner with a minimum of
inconvenience to the public.
8.7.3 All advanced warning sign installations shall be reflectorized and/or
lighted.
8.7.4 Traffic signal system shutdown or planned "red flash" shall be limited
to 4 -hour periods between the hours of 9:00 a.m. and 3:00 p.m. on weekdays (Monday
through Thursday), except as authorized by the Project Administrator.
8.7.5 "STOP AHEAD" and "STOP" signs shall be furnished by the
Contractor and shall conform to the provisions in Section 12-3.06, "Construction Area
Signs," of the State Standard Specifications except that the base material for the signs
shall not be plywood. Two "STOP AHEAD" signs and two "STOP" signs shall be placed
for each direction of traffic. Locations of the signs shall be per the WATCH manual.
8.8 Nothing in this Section shall be construed as authorizing any award of
attorney's fees in any action to enforce the terms of this Agreement, except to the extent
provided in Section 8.3 above.
8.9 The rights and obligations set forth in this Section shall survive the
termination of this Agreement.
9. INDEPENDENT CONTRACTOR
City has retained Contractor as an independent contractor and neither Contractor
nor its employees, nor any of its subcontractors, are to be considered employees of the
City. The manner and means of conducting the work are under the control of Contractor,
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except to the extent they are limited by statute, rule or regulation and the express terms of
this Agreement. No civil service status or other right of employment shall accrue to
Contractor or its employees.
10. COOPERATION
Contractor agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the work to
be performed. City agrees to cooperate with the Contractor on the Project.
11. INSURANCE
Without limiting Contractor's indemnification of City, and prior to commencement of
work, Contractor shall obtain, provide and maintain at its own expense during the term of
this Agreement or for other periods as specified in this Agreement, policies of insurance of
the type, amounts, terms and conditions described in the Insurance Requirements
attached hereto as Exhibit B, and incorporated herein by reference.
12. SUBCONTRACTING
The subcontractors authorized by City, if any, to perform work on this Project are
identified in Exhibit "A". Contractor shall be fully responsible to City for all acts and
omissions of any subcontractor. Nothing in this Agreement shall create any contractual
relationship between City and any subcontractor nor shall it create any obligation on the
part of City to pay or to see to the payment of any monies due to any such subcontractor
other than as otherwise required by law. City is an intended beneficiary of any work
performed by the subcontractor for purposes of establishing a duty of care between the
subcontractor and City. Except as specifically authorized herein, the services to be
provided under this Agreement shall not be otherwise assigned, transferred, contracted or
subcontracted out without the prior written approval of City.
13. WITHHOLDINGS
City may withhold payment to Contractor of any disputed sums until satisfaction of
the dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Contractor shall not
discontinue work as a result of such withholding. Contractor shall have an immediate right
to appeal to the City Manager or his/her designee with respect to such disputed sums.
Contractor shall be entitled to receive interest on any withheld sums at the rate of return
that City earned on its investments during the time period, from the date of withholding of
any amounts found to have been improperly withheld.
14. CONFLICTS OF INTEREST
14.1 The Contractor or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the work
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performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeably financially affect such interest.
14.2 If subject to the Act, Contractor shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for immediate termination of
this Agreement by City. Contractor shall indemnify and hold harmless City for any and all
claims for damages resulting from Contractor's violation of this Section.
15. NOTICES
15.1 All notices, demands, requests or approvals to be given under the terms of
this Agreement shall be given in writing, to City by Contractor and conclusively shall be
deemed served when delivered personally, or on the third business day after the deposit
thereof in the United States mail, postage prepaid, first-class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from Contractor to City
shall be addressed to City at:
Attention: Recreation Manager
Recreation & Senior Services Department
City of Newport Beach
100 Civic Center Drive
P.O. Box 1768
Newport Beach, CA 92658
15.2 All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
Attention: Kevin & Stacy Kearney
Budget Blinds of Irvine
14252 Culver Drive, #A574
Irvine, CA 92604
16. TERMINATION
16.1 Tennination With Cause - In the event that either party fails or refuses to
perform any of the provisions of this Agreement at the time and in the manner required,
that party shall be deemed in default in the performance of this Agreement. If such default
is not cured within a period of five (5) calendar days, or if more than five (5) calendar days
are reasonably required to cure the default and the. defaulting party fails to give adequate
assurance of due performance within five (5) calendar days after receipt of written notice
of default, specifying the nature of such default and the steps necessary to cure such
default, the non -defaulting party may terminate the Agreement forthwith by giving to the
defaulting party written notice thereof.
16.2 Termination Without Cause. Notwithstanding the above provisions, City
shall have the right, at its sole discretion and without cause, of terminating this Agreement
at any time by giving seven (7) calendar days prior written notice to Contractor. In the
event of termination under this Section, City shall pay Contractor for services satisfactorily
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performed and costs incurred in the performance of such services up to the effective date
of termination for which Contractor has not previously been paid. In the event of
termination under this Section, City shall also pay Contractor for all Products, associated
materials, and hardware delivered to City site under this Agreement that City deems
usable.
17. EFFECT OF CONTRACTOR'S EXECUTION
Execution of this Agreement by Contractor is a representation that Contractor has
visited the Project site(s), has become familiar with the local conditions under which the
work is to be performed, and has taken into consideration these factors in submitting its
Project proposal and Scope of Work.
18. WARRANTY
18.1 Contractor warrants to City that all Products to be delivered hereunder will
be free from defects in material or workmanship and will be of the kind and quality
designated or specified by Contractor in Exhibit "A". The warranty shall apply only to
defects appearing within two years from the date of final acceptance by City for hardware
products not manufactured by the Contractor, and two years from the date of final
acceptance by City for hardware products manufactured by Contractor. If Contractor
installs the Products and associated hardware and materials, or supplies technical
directions of installation by Agreement, the warranty period shall run from the date of final
acceptance of installation by City, provided same is not unreasonably delayed by City.
18.2 If Contractor -manufactured equipment delivered hereunder does not meet
the above warranty, and if City promptly notifies Contractor in writing, Contractor shall
thereupon correct any defect, including non-conformance with the specifications, either (at
its option) by repairing any defective or damaged parts of the equipment, or by making
available any necessary replacement parts, delivered and installed without additional
charge to City within seven (7) working days. City will return the defective product to
Contractor, at Contractor's expense. Contractor shall repair or replace the defective item
and return it to City, shipping costs prepaid. Contractor shall perform any necessary
testing, hardware and equipment removal, repair, replacement, certification, and
installation at no cost to the City during the warranty period, using Contractor's equipment.
18.3 The foregoing warranty is exclusive and in lieu of all other warranties,
whether written, oral, implied or statutory. Contractor does not warrant any equipment of
other manufacture designated by City.
19. REPRESENTATIONS
19.1 Non -infringement. Contractor represents that to the best of its knowledge
the technology embodied in the products sold herein does not infringe upon a United
States patent or United States copyright in effect as of the Effective Date.
19.2 Authod . Each party represents as follows: (a) that it has full power and
authority to execute, deliver and perform its obligations under this Agreement; (b) that
there are no actions, proceedings or investigations, pending or, to the best of each party's
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knowledge, threatened against such party which may in any manner whatsoever
materially affect the enforceability of this Agreement or the rights, duties and obligations of
the parties hereunder, and (c) that the execution, delivery and performance of this
Agreement will not constitute a breach or default under any agreement, law or court order
under which such party is a party or may be bound or affected by or which may affect the
rights, duties and obligations hereunder.
19.3 No Other Representations. Each party acknowledges and agrees that it is
relying on no representation of the other party except as expressly set forth herein.
20. CONFIDENTIAL INFORMATION.
20.1 Confidential Information. In the performance of this Agreement or in
contemplation thereof, the parties and their respective employees and agents may have
access to private or confidential information owned or controlled by the other party and
such information may contain proprietary details and disclosures. All information and data
identified in writing as proprietary or confidential by either party ("Confidential Information")
and so acquired by the other party or its employees or agents under this Agreement or in
contemplation thereof shall be and shall remain the disclosing party's exclusive property.
The recipient of Confidential Information shall use all reasonable efforts (which in any
event shall not be less than the efforts the recipient takes to ensure the confidentiality of its
own proprietary and other confidential information) to keep, and have its employees and
agents keep, any and all Confidential Information confidential, and shall not copy, or
publish or disclose it to others, nor authorize its employees, agents or anyone else to copy
or disclose it to others, without the disclosing party's written approval; nor shall the
recipient make use of the Confidential Information except for the purposes of executing its
obligations hereunder, and (except as provided for herein) shall return the Confidential
Information and data to the first party at its request. The City s duty to maintain
confidentiality as described hereunder shall be subject to the laws of the State of
California.
20.2 Excluded Information. The foregoing conditions will not apply to information
or data which is, or which becomes generally known to the public by publication or by any
means other than a breach of duty on the part of the recipient hereunder, is information
previously known to the recipient, is information independently developed by or for the
recipient or is information generally released by the owning party without restriction.
20.3 Riaht to Injunctive Relief. Because of the unique nature of the Confidential
Information, the parties agree that each party may suffer irreparable harm in the event that
the other party fails to comply with any of its obligations under this Section, and that
monetary damages may be inadequate to compensate either party for such breach.
Accordingly, the parties agree that either party will, in addition to any other remedies
available to it at law or in equity, be entitled to seek injunctive relief to enforce the terms of
this Section.
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21. ASSIGNMENT
This Agreement shall not be assigned by any party, or any party substituted,
without prior written consent of the City and the Contractor.
22. STANDARD PROVISIONS
22.1 Recitals. City and Contractor acknowledge that the above Recitals are true
and correct and are hereby incorporated by reference into this Agreement.
22.2 Compliance with all Laws. Contractor shall at its own cost and expense
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Contractor shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be subject
to approval of the Project Administrator and City.
22.3 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether of the
same or a different character.
22.4 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged herein.
No verbal agreement or implied covenant shall be held to vary the provisions herein.
22.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govem.
22.6 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
22.7 Amendments. This Agreement may be modified or amended only by a
written document executed by both Contractor and City and approved as to form by the
City Attorney.
22.8 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
22.9 Controlling Law and Venue. The laws of the State of California shall govern
this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, State of California.
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22.10 Equal Opportunity Employment. Contractor represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex, age or any other impermissible basis under law.
22.11 No Attorneys' Fees. In the event of any dispute or legal action arising under
this Agreement, the prevailing party shall not be entitled to attomeys' fees.
22.12 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one (1) and the same instrument.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
By: 4�'—
Aaron
C. H
City Attorney
ATTEST-
Date:
n 6. /k
Date: ' o -
By:
Leilani I. Brown
City Clerk
o`�
Attachments
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: % - int - 2vl to
DetweilekN
ation & Se r Services Director
CONTRACTOR: Kevin & Stacy Kearney,
a married couple DBA Budget Blinds of
Irvine
Date: S -
By:
Kevin Kearney
Owner
Date: l — 157 1 io
By: '
Stacy Kea ey
Owner
[END OF SIGNATURES]
Exhibit A - Scope of Services and Schedule of Billing Rates
Exhibit B - Insurance Requirements
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EXHIBIT A
SCOPE OF SERVICES AND
SCHEDULE OF BILLING RATES
Budget Blinds of Irvine shall:
• Install 18 Solar Shades — 3% openness factor with anodized fascia at the:
Marina Park Community Center
1600 W Balboa Blvd
Newport Beach, CA 92660
Completion Date:
• On or before March 25, 2016
Materials:
• 18- Solar Shades — 3% openness factor with anodized fascia $ 3,692.00
• Labor $ 200.00
• Sales Tax $__295.36
Total $ 4,187.36
Warranty:
• Manufacturer's warranty is 10 years on the fabric of the solar shades;
• Budget Blinds of Irvine also offer 10 years on installation
Budget Blinds of Irvine Page A-1
EXHIBIT B
INSURANCE REQUIREMENTS
1. Provision of Insurance. Without limiting Contractor's indemnification of City, and
prior to commencement of Work, Contractor shall obtain, provide and maintain at its
own expense during the term of this Agreement, policies of insurance of the type
and amounts described below and in a form satisfactory to City. Contractor agrees
to provide insurance in accordance with requirements set forth here. If Contractor
uses existing coverage to comply and that coverage does not meet these
requirements, Contractor agrees to amend, supplement or endorse the existing
coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact business
of insurance in the State of California, with an assigned policyholders' Rating of A -
(or higher) and Financial Size Category Class VII (or larger) in accordance with the
latest edition of Best's Key Rating Guide, unless otherwise approved by the City's
Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Contractor shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability Insurance
with limits of at least one million dollars ($1,000,000) each accident for bodily
injury by accident and each employee for bodily injury by disease in
accordance with the laws of the State of California, Section 3700 of the Labor
Code.
Contractor shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its officers, agents,
employees and volunteers.
B. General Liability Insurance. Contractor shall maintain commercial general
liability insurance and, if necessary, umbrella liability insurance, with coverage
at least as broad as provided by Insurance Services Office form CG 00 01, in
an amount not less than one million dollars ($1,000,000) per occurrence, two
million dollars ($2,000,000) general aggregate. The policy shall cover liability
arising from premises, operations, products -completed operations, personal
and advertising injury, and liability assumed under an insured contract
(including the tort liability of another assumed in a business contract) with no
endorsement or modification limiting the scope of coverage for liability
assumed under a contract.
C. Automobile Liability Insurance. Contractor shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Contractor
arising out of or in connection with Work to be performed under this
Budget Blinds of Irvine Page B-1
Agreement, including coverage for any owned, hired, non -owned or rented
vehicles, in an amount not less than one million dollars ($1,000,000)
combined single limit each accident.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation against
City, its elected or appointed officers, agents, officials, employees and
volunteers or shall specifically allow Contractor or others providing insurance
evidence in compliance with these requirements to waive their right of
recovery prior to a loss. Contractor hereby waives its own right of recovery
against City, and shall require similar written express waivers from each of its
subconsultants.
B. Additional Insured Status. All liability policies including general liability,
excess liability, pollution liability, and automobile liability, if required, shall
provide or be endorsed to provide that City and its officers, officials,
employees, and agents shall be included as insureds under such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a primary
basis and shall not require contribution from any insurance or self-insurance
maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar
days notice of cancellation (except for nonpayment for which ten (10)
calendar days notice is required) or nonrenewal of coverage for each required
coverage.
Additional Agreements Between the Parties The parties hereby agree to the
following:
A. Evidence of Insurance. Contractor shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation and other
endorsements as specified herein for each coverage. Insurance certificates
and endorsement must be approved by City's Risk Manager prior to
commencement of performance. Current certification of insurance shall be
kept on file with City at all times during the term of this Agreement. City
reserves the right to require complete, certified copies of all required
insurance policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Contractor sixty (60) calendar days advance
written notice of such change. If such change results in substantial additional
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cost to Contractor, City and Contractor may renegotiate Contractor's
compensation.
C. Right to Review Subcontracts. Contractor agrees that upon request, all
agreements with subcontractors or others with whom Contractor enters into
contracts with on behalf of City will be submitted to City for review. Failure of
City to request copies of such agreements will not impose any liability on City,
or its employees.
D. Enforcement of Agreement Provisions. Contractor acknowledges and agrees
that any actual or alleged failure on the part of City to inform Contractor of
non-compliance with any requirement imposes no additional obligations on
City nor does it waive any rights hereunder.
E. Reguirements not Limiting. Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on coverage,
limits or other requirements, or a waiver of any coverage normally provided by
any insurance. Speck reference to a given coverage feature is for purposes
of clarification only as it pertains to a given issue and is not intended by any
party or insured to be all inclusive, or to the exclusion of other coverage, or a
waiver of any type.
F. Self-insured Retentions. Any self-insured retentions must be declared to
and approved by City. City reserves the right to require that self-insured
retentions be eliminated, lowered, or replaced by a deductible. Self-insurance
will not be considered to comply with these requirements unless approved by
City.
G. City Remedies for Non -Compliance If Contractor or any subcontractor
fails to provide and maintain insurance as required herein, then City shall
have the right but not the obligation, to purchase such insurance, to terminate
this Agreement, or to suspend Contractor's right to proceed until proper
evidence of insurance is provided. Any amounts paid by City shall, at City's
sole option, be deducted from amounts payable to Contractor or reimbursed
by Contractor upon demand.
H. Timely Notice of Claims. Contractor shall give City prompt and timely notice
of claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve coverage
under any of the required liability policies. City assumes no obligation or
liability by such notice, but has the right (but not the duty) to monitor the
handling of any such claim or claims if they are likely to involve City.
1. Contractor's Insurance. Contractor shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
Work.
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