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HomeMy WebLinkAboutC-4036 - M/RSA for Citywide Generator Preventative Maitnenace and as Needed RepairMAINTENANCE AND REPAIR SERVICES AGREEMENT WITH GLOBAL POWER GROUP, INC. FOR CITYWIDE GENERATOR PREVENTATIVE MAINTENANCE AND AS NEEDED REPAIRS THIS MAINTENANCE AND REPAIR SERVICES AGREEMENT ( "Agreement ") is made and entered into as of this day of August, 2010, by and between the CITY OF NEWPORT BEACH, a California Municipal corporation and Charter City ( "City "), and GLOBAL POWER GROUP, INC., a California corporation, whose principal place of business is 202 Greenfield Dr., Suite C, El Cajon, CA 92020 ( "Contractor "), 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 California and the Charter of City. B. City requires preventative maintenance and as- needed generator repair services for the fifteen (15) generators maintained by the Utilities Department. C. City desires to engage Contractor to provide preventative maintenance and as- needed generator repair services for the City's 15 generators located at various locations within the City ( "Project "). D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by the City for the Project, and is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the prices specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall be for a period of three (3) years, and shall commence on the above written date, and shall terminate on the _ day of August, 2013, unless terminated earlier as set forth herein. 2. SCOPE OF SERVICES 2.1 Preventative Maintenance Services: Contractor shall provide quarterly and annual preventative maintenance; load bank testing; fuel polishing; and switch gear and automatic transfer switch inspection services as further described in Exhibit A services ( "Services" or "Work ") attached hereto and incorporated by reference for the City's fifteen (15) generators located at the Utilities Yard, Big Canyon Reservoir, City Hall, Newport Pier and the Police Department. City shall have the right to alter the frequency of maintenance as necessary. 2.2 Additional Services: Contractor shall provide "Emergency on -call' and "as- needed" repair and maintenance services as further described in the Scope of Services attached hereto as Exhibit A. For purposes of this Agreement, all Additional Work performed will be classified as: 1) "as- needed;' 2) "urgent ;" or 3) "emergency" Work: 2.3.1 As- Needed Work: Upon verbal or written request from the Project Administrator (as defined in Section 6 below), Contractor shall provide a letter proposal for Services requested by the City. The letter proposal shall include the following: 1. A detailed description of the Services to be provided; 2. The position of each person to be assigned to perform the Services, and the name of the individuals to be assigned, if available; 3. The estimated number of hours and cost to complete the Services; and 4. The time needed to finish the specific project. No Services shall be provided until the Project Administrator, as defined in Section 6, has provided written acceptance of the letter proposal. The Project Administrator shall be authorized to provide written acceptance of letter proposals for Services up to $30,000. Letter Proposals for Services estimated at equal to or greater than $30,000 shall be authorized in writing by the City Manager. Once authorized to proceed, Contractor shall diligently perform the duties in the approved letter proposal. Work that is outside of the scope of Work described in the letter proposal shall not be performed without written authorization. 2.3.2 Urgent On -Call Work: Urgent On -Call Work shall be defined as Work deemed by the, Utilities Director or his designee, to be of urgent necessity for the preservation of life, health or property prior to the availability of the City Manager to provide written authorization. The same procedures outlined in section 2.3.1 for submittal and acceptance of letter proposals shall be followed, except Services may be requested and authorized by the Utilities Director. 2.3.3 Emergency On -Call Work Procedures: "Local emergency' or "Emergency" shall be defined as the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the City caused by such conditions as air pollution, fire, flood, storm, tsunami, drought, sudden and severe energy shortage, plant or animal infestation or disease, the Governor's warning of an earthquake or volcanic eruption, riot, or other conditions, except those resulting from a labor controversy, which are, or are likely to be, beyond the control of the Services, personnel, equipment and facilities of the City, and the control of which requires the combined forces of this City with other political subdivisions (NBMC § 2.20.020). If the authorization for Services is necessary in circumstances of an Emergency, the City's Emergency Procedures shall be followed, as defined by the EOC plan. 3. WORKMANSHIP, SUPERVISION, AND EQUIPMENT A. The Contractor shall provide a work force sufficient to perform the Services and all members of the work force shall be legally authorized to work in California. B. All Services shall be performed by competent and experienced employees. Contractor shall be responsible for actions of its employees while performing Services. Contractor shall be responsible for compliance with all local, state, and federal laws and regulations. Contractor shall employ or retain, at its sole cost and expense, all professional and technical personnel necessary to properly perform Services. C. The Contractor shall establish, implement and maintain written operating procedures designed to ensure the work forces' utilization of techniques generally accepted for cities of the size and nature of the City of Newport Beach. A current copy of the operating procedures shall be provided to the City's Utilities Department Ed Burt, Utilities Operations Manager. D. The Contractor's work force shall include a thoroughly skilled, experienced, and competent supervisor ( "Contractor's Supervisor ") who shall be responsible for adherence to the specifications by directly overseeing the operations. All supervisory personnel must be able to communicate effectively in English (both orally and in writing). Any order given to supervisory personnel by City shall be deemed delivered to the Contractor. The supervisor assigned must be identified by name to ensure coordination and continuity. E. If the City's Administrator (as defined in Section 7) determines that any person employed by the Contractor has failed or refused to carry out the terms of this Agreement, appears to be incompetent, acts in a disorderly, improper, or unsafe manner, or shows signs of intoxication or other impairment, instead of initiating termination for breach, the City Administrator may notify Contractor, who shall take immediate remedial action, which may include removing the employee from the job site. Prior to returning a removed Employee to work within the City, the Contractor shall provide in writing the reason for the individual's behavior and the means used to prevent this behavior from occurring again. In no event shall Contractor fail to prevent, prohibit, or resolve problems with its Employees working after receiving notice of same from the City. Violation of this section by Contractor shall be a material breach of this Agreement and may result in the City terminating the Agreement or temporarily suspending services hereunder, with Contractor being liable for any resulting costs incurred by the City. No action to terminate or suspend shall be taken by City until after Contractor is provided notice and afforded an opportunity to respond or refute the allegations, except that the City's Administrator may immediately suspend services hereunder if he finds such action reasonably appropriate to protect the public safety, health or welfare. F. 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 Contractor is experienced in performing the Work contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the Work 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. 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. G. The Contractor warrants that it has familiarized itself with the City's generators at the time of commencement of this Agreement. Contractor is also familiar with all existing installations, both public and private, in the area where services shall be performed under this Agreement. Contractor shall provide adequate safeguards to prevent damage to existing structures and improvements. Structures or improvements of any kind, whether public or private, which are removed, damaged or destroyed in the course of Work shall be replaced and/or repaired, at the Contractor's expense, to the original condition and to the satisfaction of the City. Failure to have such damages repaired in a timely manner will result in the City deducting from the Contractor's payment the cost to perform the necessary remedial Work. 4. TIME OF PERFORMANCE Time is of the essence in the performance of Services under this Agreement and the Services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the Services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 4.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator as soon as reasonably possible, but no event later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 4.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 5. COMPENSATION TO CONTRACTOR 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 the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City, except for annual adjustments not to exceed 2.5 percent upon sixty -days prior written notice to City of such annual increase. Contractor's compensation for Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed the fees identified in the individual letter proposals, as approved by the Project Administrator or City Manager, as appropriate. The total amount paid to Contractor by City pursuant to this Agreement shall not exceed One - Hundred Thousand Dollars and No /100 ($100,000.00) per Agreement for all services provided by Contractor, subject to an annual adjustment in the rates paid by the City not to exceed 2.5 percent and only upon sixty -days prior written notice to City of such annual increase. 5.1 Contractor shall submit invoices based on scheduled services or approved repairs to City describing the Work performed the preceding quarter. Contractor's bills shall include the name of the person and /or classification of employee who performed the Work, a brief description of the Services performed and /or the specific task from the letter proposal 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) days after approval of the monthly invoice by City staff. 5.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the letter proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: A. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.3 Contractor shall not receive any compensation for Extra Work without the prior written authorization of City. As used herein, "Extra Work" means any work that is determined by the Project Administrator to be necessary for the proper completion of the Project, but which is not included within the letter proposal and which the City and Contractor did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 6. WORK DEFICIENCIES AND CORRECTIONS 6.1 The Contractor's performance will be evaluated on a regular basis. When problems are identified, the City will notify Contractor. If issues are serious or go unresolved, a "Notice of Deficiency' will be issued to Contractor in writing. This notice will detail the issues and give a cure period to resolve them. 6.2 Failure to correct the deficiencies listed in the Notice of Deficiency within the timeframe specified by the City may, in the City's sole discretion, result in action being taken by the City, including, but not limited to, (a) withholding payment for the subject deficiency until the work is completed; (b) correcting the deficiency (using the City's own Work force and /or by contracting out) and deducting any associated costs plus overhead incurred thereby from the total monthly compensation due the Contractor; (c) contracting with another Vendor to perform the maintenance and other Services required for the remainder of the term of the Contract; (e) terminating the agreement; and /or (f) taking any other action and exercising any other legal remedy available to the City under law. 7. ADMINISTRATION This Agreement will be administered by the City's Utilities Department. Ed Burt, Utilities Operations Manager, shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or an authorized representative shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 8. TYPE AND INSTALLATION OF MATERIALS /STANDARD OF CARE 8.1 All of the Services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and technical personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with Highest 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. By delivery of completed Work, Contractor certifies that the Work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Contractor represents and warrants to City that it has or shall obtain, and shall keep in full force and effect during the term of this Agreement, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Contractor to practice its profession in the State of California. This shall include but not be limited to, a current, valid license with the Contractors State License Board. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Contractor shall use only the standard materials described in Exhibit A, or in the letter proposal for Services in performing Services under this Agreement. Any deviation from the materials described in Exhibit A or the letter proposal shall not be installed unless approved in advance by the Project Administrator. 9. RESPONSIBILITY FOR DAMAGES OR INJURY 9.1 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, tools, equipment 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 workers. 9.2 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 arising from Contractor's work on the Project, or the work of any supplier selected by the Contractor. 9.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Contractor. 9.4 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 be liable for any private or public property damaged during the performance of the Project work. 9.5 To the extent authorized by law, as much of the money due Contractor under and by virtue of the Agreement as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 9.6 The rights and obligations set forth in this Section shall survive the termination of this Contract. 10. INDEPENDENT CONTRACTOR City has retained Contractor as an independent contractor and neither Contractor nor its employees are to be considered employees of the City. The manner and means of conducting the Work are under the control of Contractor, 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. 11. 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. 12. 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. The cost of such insurance shall be included in Contractor's billing rates. A. Coverage and Limit Requirements. i. Workers' Compensation. Contractor shall maintain Workers' Compensation Insurance providing statutory benefits and employer's liability insurance with limits of at least one million dollars ($1,000,000) each type for Contractor's employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor's employees. The insurer issuing the Workers' Compensation insurance shall amend its policy by endorsement to waive all rights of subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers. Contractor shall submit to City, along with the required certificate of insurance, a copy of such waiver of subrogation endorsement. ii. General Liability. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) General Aggregate and two million dollars ($2,000,000) Products and Completed Operations Aggregate for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Coverage shall be at least as broad as that provided by Insurance Services Office form CG 00 01. None of the policies required herein shall be in compliance with these requirements if they include any limiting endorsement that has not been first submitted to City and approved in writing. iii. Automobile Liability. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this 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 for each accident. iv. Builders Risk. For Contracts with Construction /Builders Risk property exposures, Contractor shall maintain Builders Risk insurance or an installation floater as directed by City, covering damages to the Work for "all risk" or special form causes of loss with limits equal to one hundred percent (100 %) of the completed value of contract, with coverage to continue until final acceptance of the Work by City. At the discretion of City, the requirement for such coverage may include additional protection for Earthquake and /or Flood. City shall be included as an insured on such policy, and Contractor shall provide the City with a copy of the policy. B. Other Insurance Provisions or Requirements. i. 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 an additional insured endorsement for general liability. Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current evidence of insurance shall be kept on file with City at all times during the term of this Agreement. All of the executed documents referenced in this Agreement must be returned within ten (10) working days after the date on the "Notification of Award," so that the City may review and approve all insurance and bond documentation. City reserves the right to require complete, certified copies of all required insurance policies, at any time. ii. General liability insurance provisions. Primary and excess or umbrella liability policies are to contain, or be endorsed to contain, the following provisions: 1) City, its elected or appointed officers, agents, officials, employees, and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor, including the insured's general supervision of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected or appointed officers, officials, employees, agents or volunteers. Contractor shall submit to City a copy of the additional insured endorsement along with the required certificates of insurance. 2) Contractor's insurance coverage shall be primary insurance and /or primary source of recovery as respects City, its elected or appointed officers, agents, officials, employees and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or Services provided to the City. Any insurance or self- insurance maintained by City, its officers, officials, employees and volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3) Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. iii. 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. iv. Notice of Cancellation. Contractor agrees to oblige its insurance broker and insurers to provide to City with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage except for builder's risk insurance. The builder's risk policy will contain or be endorsed to contain a provision providing for 30 days written notice to City of cancellation or nonrenewal, except for nonpayment for which ten (10) days notice is required. v. Self- Insured Retentions. Contractor agrees not to self- insure or to use any self- insured retentions on any portion of the insurance required herein and further agrees that it will not allow any indemnifying party to self- insure its obligations to City. If contractor's existing coverage includes a self- insured retention, the self- insured retention must be declared to City. City may review options with the contractor, which may include reduction or elimination of the self- insured retention, substitution of other coverage, or other solutions. Contractor agrees to be responsible for payment of any deductibles on their policies. vi. Timely Notice of Claims. Contractor shall give City prompt and timely notice of any claim made or suit instituted arising out of or resulting from Contractor's performance under this agreement. vii. Waiver. 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 and insurance clauses from each of its subcontractors. viii. Enforcement of Contract Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non - compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. iv. Requirements 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. Specific 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. x. City's Remedies. City shall have the right to order the Contractor to stop Work under this Agreement and /or withhold any payment(s) that become due to Contractor hereunder until Contractor demonstrates compliance with the requirements of this article. In the alternative, City may purchase the required coverage and charge Contractor the cost of the premiums or deduct the cost from Contractor's payments. A. Coverage not Limited. All insurance coverage and limits provided by contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this agreement or any other agreement relating to the city or its operations limits the application of such insurance coverage. xii. Coverage Renewal. Contractor will renew the coverage required here annually as long as Contractor continues to provide any Services under this or any other contract or agreement with the City. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and /or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 13. PREVAILING WAGES Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays and overtime Work for each craft or type of workman needed to execute the Work contemplated under the Agreement shall be paid to all workmen employed on the Work to be done according to the Agreement by the Contractor and any subcontractor. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the Work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Agreement. A copy of said determination is available by calling the prevailing wage hotline number (415) 703 -4774, and requesting one from the Department of Industrial Relations. The Contractor is required to obtain the wage determinations from the Department of Industrial Relations and post at the job site the prevailing rate or per diem wages. It shall be the obligation of the Contractor or any subcontractor under him /her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 14. 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 Contract. 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. 15. CONFLICTS OF INTEREST 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 performed under this Contract, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 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 Contract by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 16. NOTICES 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: Attn: Ed Burt Utilities Department City of Newport Beach 3300 Newport Blvd. PO Box 1768 Newport Beach, CA 92658 Phone: 949 - 718 -3432 Fax: 949 - 646 -5204 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attention: Salvatore Martorana Global Power Group, Inc. 202 Greenfield Drive, Suite C El Cajon, CA 92020 Phone: 619 - 579 -1221, Ext. 205 Fax: 619- 579 -1166 17. TERMINATION 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 two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) 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. 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 performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all materials purchased in performance of this Agreement. 18. 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. 19. WAIVER A waiver by City of any term, covenant, or condition in the Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition. 20. INTEGRATED AGREEMENT 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. 21. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services, the terms of this Agreement shall govern. 22. 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. 23. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Agreement by Contractor is a representation that Contractor has visited the Project Site, 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. 24. 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. 25. 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. 3O Contractor shall keep records and invoices in connection with the Work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Contractor shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 27. CLAIMS The Contractor and the City expressly agree that in addition to any claims filing requirements set forth in the Contract and Contract documents, the Contractor shall be required to file any claim the Contractor may have against the City in strict conformance with the California Government Tort Claims Act (Government Code sections 900 et seg.). 28. 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 or age. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY cv. Leonie Mulvihill Assistant City Attorney ATTEST: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California Municipal Corporation Keith D. Curry Mayor CONTRACTOR: Global Power Gro Im By: Salv artorana P' nt P res' By: olt Sal a or Ceballos Chi f Financial Officer Attachments: Exhibit A — Scope of Services Exhibit B — Billing Rates Global Power GROUP, INC. Detailed Breakdown of Planned Maintenance Proposal For City of Newport Beach July 23, 2010 Attention: Terresa Moritz Quarterly invoice is broken down as follows Location Name Contract Price per Quarter City Hall $305.33 $305.33 Utilities Dept Building #2 Unit # 5573 $255.66 Utilities Dept Building #2 Unit # 5592 $275.86 Utilities Dept Building #2 Unit # 5593 $262.39 Utilities Dept Building #2 Unit # 5594 $262.39 Utilities Dept Building #2 Unit # 5595 $262.39 Utilities Dept Building #2 Unit # 5596 $262.39 Utilities Dept Building #2 Unit # 5597 $305.33 Water Department/unit#5576 $255.66 Water Department/unit#5591 $275.86 $2,417.92 Zone 5 $428.36 Utilities Dept. Building #8 Unit#9291 $305.33 Water Department/Resevoit $408.16 Water Department/Zone 4 $192.67 Water Department/corn 3 pump $913.72 $2,248.24 Total per quarter $4971.49 Annually $19,885.96 "EXHIBIT A" Division Electrical Electrical Total "OUR BUSINESS IS POWERING YOUR BUSINESS" --2-- Wastewater Wastewater Wastewater Wastewater Wastewater Wastewater Wastewater Wastewater Wastewater Wastewater Total Water Water Water Water Water Water Total "EXHIBIT A" Global Power GROUP, INC. Quarterly Preventative Maintenance 1. Inspect enclosure for debris and corrosion, we will clean and spot paint to prevent corrosion. 2. Starting batteries will be cleaned and electrolyte levels and specific gravity will be checked. 3. Battery charging system will be checked for proper operation. 4. Inspect fuel, oil, and coolant systems for leaks. 5. All fluid levels will be checked and topped -off as necessary (fuel at an additional cost). 6. Governor system and linkage will be checked for binding and proper operation. 7. Air cleaners will be checked and if necessary recommendations made for replacement. 8. Engine block heater(s) and associated plumbing will be checked for proper operation. 9. All belts will be checked for proper tension, signs of age and wear. 10. Radiator will be checked externally for debris, leaks, or corrosion. 11. Coolant will be tested with a coolant test strip. 12. Radiator will be pressure tested and cap and seal will be checked for cracks and wear. 13. All cooling system hoses will be checked for defects. 14. Check all electrical connections, switches, gauges, and bulbs for proper operation. 15. Equipment will be checked for abnormal speed, operation, vibration, and noises. 16. Automatic transfer switches will be visually inspected for defects. 17. Check automatic transfer switch and generator for bad connections with an infrared gun. 18. Upon owners approval, we will simulate power failure and test the system for proper operation. 19. GPG Service Technicians will enter generator start and stop dune in logbook. "OUR BUSINESS IS POWERING YOUR BUSINESS" --3-- "EXHIBIT A" Global Power GROUP, INC. Annual Maintenance Services (Once per year) 1. Perform the inspections noted above. 2. Change engine lubricating oil and oil filters. 3. Change engine fuel filters. 4. Change engine air cleaner element(s). 5. Change coolant filters. 6. Obtain oil and coolant sample for analysis by fluid testing laboratories. 7. Dispose of hazardous wastes from our maintenance service. Additional Services Additional services are performed as applicable to each piece of equipment. Load Bank Test All units are load banks tested at the manufactures recommendation of once per year in which the generator is tested on full load for one hour and monitored to ensure proper operation. Fuel Polishing Fuel polishing is a procedure performed at the annual service that removes water, bacteria, and sediment from your fuel tank. These contaminants occur naturally over time and may also be caused by poor fuel quality. We take a sample of your fuel to determine the condition of the fuel. If to much water is present the water will be pumped out first. The polishing equipment circulates the fuel through a filtering system at a high rate of speed. During the procedure we are sampling the fuel to ensure a proper polish. Switch Gear and Automatic Transfer Switch Inspection Services The automatic transfer switch is the most critical piece of equipment in your emergency power system. It's the device that connects your facility to your emergency generator. This device is inspected once per year to ensure proper operation. "OUR BUSINESS IS POWERING YOUR BUSINESS" --4-- "EXHIBIT A" Global Power GROUP, INC. Planned Maintenance Proposal — Terms and Conditions This agreement provides that GPG will perform the aforementioned service items that should enhance the service life of the equipment and avoid the premature failure of your equipment. This assumes that there were no material defects or manufacturing flaws in design and/or production of your equipment when this agreement is initiated. This Planned Maintenance Agreement is neither a contract of performance nor a guarantee that the equipment identified in this proposal will operate to its specific performance standards 100% of the time while under the care of GPG. To initiate the above Planned Maintenance Agreement, please sign below and return one copy to GPG. Keep the other copy for your files. Unless otherwise agreed, this agreement shall remain in effect for a minimum of one year and will automatically renew annually, with a 3% increase. A written 30 -day notice is required for a price change above 3%, or for cancellation of services. All prices quoted in this proposal are valid for thirty (30) days. At the customers' request, GPG shall provide evidence of insurance coverage for general liability (including an additional insured endorsement in favor of owner) and workers' compensation. Unless otherwise stated, all invoices will be mailed to the billing address after PM services are completed. All invoices are due net 30 days from invoice, with approval of credit. I fully understand the responsibilities contained within the above proposal and accept the terms, conditions and owner/operator's responsibilities of the above agreement. By signing below the undersigned authorizes Global Power Group, Inc. to make such inquiries as are necessary to obtain credit information and authorizes banks or suppliers to release information regarding their account. Accepted By: Signature Print Full Name on this day of 20 PO# Ext.201 - Dispatch....................................................................... Service and Fuel Scheduling Issues Ext.205 — Sal Martorana.......................................................Equipment Sales, Installations and Rentals Ext. 208 — Mike Luna............................................................................................Service Manager Ext.203 —Juan Mercado- Accounts Manager ....................................................Service and PM Agreements Ext.202 — Gerry Lafargue — Service Contracts Manager......................................Service and PM Agreements Ext.207 — Chuck Knez -................................................................ Parts Department and Service Sales Emergency Generator 24 Hour Hotline, Dial Main Number (866) 547-6937. "OUR BUSINESS IS POWERING YOUR BUSINESS" --5-- "EXHIBIT A" Global Power GROUP, INC. Other Convenient Services Offered Generator Monitoring Service Expedites emergency response time. A stand alone system with internal battery back-up. Web based security system which monitors building power, generator power, and generator faults. Exclusive customer driven interactive web page containing equipment run log and service information. Low monthly maintenance fee. Diesel Fuel Delivery EPA approved California Red Dye #2 low sulfur diesel fuel. Fuel rates quoted daily. Please call for current pricing. Additional charge for legally inaccessible fuel tanks. Generator Rentals 20kW to 2 Megawatt for special events or planned outages. Delivery and installation, including cable and temp -power boxes. Infrared Scanning Services Equipment is owned not rented, provides competitive pricing. Level Two Thermographer on staff. This service can be used to save electricity, prevent unpredicted circuit failure, and bench mark all equipment. Troubleshooting is more accurate and allows the owner to predict future maintenance needs. Electrical Services Turn- key installations, UPS systems, consulting and design, system upgrades, and electrical system troubleshooting by our state certified electricians. Note: If at any time you are not completely satisfied with our services please do not hesitate to call me and discuss any problem with the terms of this contract or the performance of our staff. Sincerely, Salvatore Martorana Global Power Group, Inc. 202 Greenfield Drive, Suite C, El Cajon ,CA 92020 "OUR BUSINESS IS POWERING YOUR BUSINESS" --6-- "EXHIBIT B" O O O O LO O O O O O O O O O O Ln O O r- O O (D LO 0) O O LO O Ln f-- O Ln Lo Lo Lo N Ln N O p m O Ln r N c- M O OD It V . OO N OA 0) O L M (r) P m W R U H - C O Z L (�0 Z O a fA ca EA H-3 (H EA Ef} Og 613 v4 6n, of (fl c M O O O O Ln O O O O O O O O O tf O Ln O O N O O O LL) O O O LO O m N O LO - LO O Ln (D -Ln r- O Lo 6 N O O CF) OO O OO N f- Ln CA �t 0 01} CV • L - L .Q L U — O m O Z o U 0 � M EA EA (A (fl 60, (f) (fl (fl Efl Efl (f} (A K3 O� Y d E * O N E o N v L > m (n Lo L Q L � c w a) L ,,m^ 1 O °6OL F- i o vi in O 0n = cn O o n cn N i :' ai aNi ami aNi ayi > > > a O O O o = t m a m > d > m > m > m > w o m 0 m 0 w m v~i t - V a) a) w N d L L L L U •L 0 Q Q Q Q .O .0 .Q O d d m a) m c C C O mJ J J J I- (n (n w LL. LL tL U. LL W W W "EXHIBIT B" • • C -qa-3� PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL POWER GROUP, INC. FOR ON -CALL GENERATOR MAINTENANCE AND REPAIR SERVICES THIS AGREEMENT is made and entered into as of this 9"' day of April, 2008, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"), and GLOBAL POWER GROUP, INC., a California corporation whose address is 202 Greenfield Drive, Suite C, El Cajon, California 92020 ( "Contractor"), 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 California and the Charter of City. B. City has a need for on -call assistance for Generator Maintenance and Repair Service. C. City desires to engage Contractor to perform on -call generator maintenance and repair services in various locations and for various City facilities. D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal members of this firm for purposes of contact shall be Salvatore Martorana ( President), and Len Prowse (National Account Manager). F. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor 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: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 10th day of March, 2010, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Contractor shall provide "On -Call" generator maintenance and repair services as described in the Statement of Qualifications attached as Exhibit "A." Upon 0 0 verbal or written request from the Project Administrator, Contractor shall provide a letter proposal for services requested by the City (hereinafter referred to as the "Letter Proposal "). The Letter Proposal shall include the following: A. A detailed description of the services to be provided; B. The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; C. The estimated number of hours and cost to complete the services; and D. The time needed to finish the specific project. No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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 the Schedule of Billing Rates attached hereto as Exhibit "B" and incorporated herein by reference. 2 0 No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Project Administrator. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by per Council Policy F -14. 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and/or classification of employee who performed the work, a brief description of the services performed and /or the specific task in the letter proposal 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: A. The actual costs of subconsultants for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 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 3 6. 7 14 0 0 times during the Agreement term. Contractor has designated Len Prowse to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. If Contractor is performing inspection or construction management services for City, the Project Manager and any other assigned staff shall be equipped with a Nextel Plus type cellular /direct connect unit to communicate with City staff. Consultant's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. ADMINISTRATION This Agreement will be administered by the Utilities Department. George Murdoch shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. CITY'S RESPONSIBILITIES In order to assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's work schedule. B. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and 0 0 0 technical 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, nor have any contractual relationship with City. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8.4 The term Construction Management or Construction Manager does not imply that Contractor is engaged in any aspect of the physical work of construction contracting. Contractor shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor'), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Contractor shall not be responsible for the Contractors' schedules or failure to carry out the work in accordance with the contract documents. Contractor shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the worts. 9. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents 5 0 • and employees (collectively, the "Indemnified Parties') from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Contractor. 10. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the services. 11. 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. i • • 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 14. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation 7 0 0 Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this 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 for each occurrence. 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services 0 0 provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. G. Additional 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. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Contractor is a partnership or joint - venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50 %) or more of the voting power, or twenty-five percent (25 %) or more of the assets of the corporation, partnership or joint-venture. ^. u 16. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon written request. Documents, including drawings and specifications, prepared by Contractor pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Contractor written consent for such changes. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes the release of information. 19. OPINION OF COST Any opinion of the construction cost prepared by Contractor represents his judgment as a design professional and is supplied for the general guidance of City. Since Contractor has no control over the cost of labor and material, or over competitive bidding or market conditions, Contractor does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 10 0 0 20. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 21. WITHHOLDINGS City may withhold payment 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 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. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and/or restoration expense shall be borne by Contractor. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Contractors in connection with the Project. 24. CONFLICTS OF INTEREST 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 performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 11 25. 26. 0 0 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 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. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be when delivered personally, or on the third business day after th e in the United States mail, postage prepaid, first -class mail hereinafter provided. All notices, demands, requests or Contractor to City shall be addressed to City at: George Murdoch Utilities Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949 - 644 -3011 Fax: 949 - 646 -5204 deemed served deposit thereof addressed as approvals from All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Len Prowse National Accounts Manager Global Power Group, Ind. 202 Greenfield Drive, Suite C El Cajon, CA 92020 Phone: 619- 579 -1221 Fax: 619- 579 -1166 TERMINATION 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 two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) 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. Notwithstanding the above provision, 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 12 0 0 termination under this Section, City shall pay Contractor for services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28. 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. 29. 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. 30. 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 govern. 31. 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. 32. 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. 13 • • 33. 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. 34. 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. 35. 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 or age. 14 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By C. Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: LaVonne Harkless, City Clerk U; QR PV tP CITY OF ;EWPO A Mun' Dal Coroc tawara z5encn, Mayor for the City of N CONSULTANT: (Corp6fate Officer) Titlec,•�-C EACH i art Beach Print NameJ�Q,r By: �i� L) (Financial Officer) Title: CR) Print Name: 5awo.4,6Y Attachments: Exhibit A — Statement of Qualifications Exhibit B — Schedule of Billing Rates 15 0 Global Powar GROUP. INC. Monday, March io, 2oo8 Re: Global Power Group, Inc. C -lo # 870741 EXHIBRW I am writing this letter to serve as an introduction to Global Power Group, Inc., briefly outlining our breadth of experience and identifying our capabilities. We are a licensed electrical contractor specializing in commercial electrical installation and stand -by power industry. Global Power Group, Inc. is licensed through the California state contractor's license board and holds a C -io. The company is bonded, has a $t million dollar pollution policy and liability coverage of $11 million dollars, including a $io million dollar umbrella policy. Global Power Group, Inc. is committed to having the most qualified and best trained staff in our industry. All of electricians are state certified our generator technicians are hazmat certified and factory trained. Our staff is comprised of personnel from both generator and electrical companies with an average of 15+ years of experience. We have highly trained generator technician and electrician crews capable of handling our customers' needs for generator and ATS installations, UPS systems, preventative maintenance, repairs, system monitoring, rentals, electrical upgrades, and refueling services. Any commercial electrical needs including j ob site temporary power. To better meet the needs of our customers, our company also provides 24 hour emergency service, including rentals. Our fleet of vehicles includes 4 wheel drive service trucks as well as a 4 wheel drive crane and a i,000 gallon fuel truck, which gives us the ability to respond to any job environment. Our state of the art equipment includes power quality monitors, fuel polishers, load banks, and one of the most advanced infra -red cameras in the industry. We can also provide our customers with instant updates on all projects from the job site via our web -based management system. 0 0 Our goal is to utilize our experience and expertise to provide our customers with the highest quality service available in the industry. Whether you need an emergency fuel delivery or a complete design - build turn -key installation, we can satisfy your needs. Some of our current clients include the following companies: The Augustine Company Vidavich Construction City of Vista Biosite Toys R Us City of Chula Vista Barona Verizon City of Newport Beach Viejas Nextel City of San Diego Adelphia Cingular City of Escondido SDG&E Sempra Energy County of San Diego Hilton Hitachi City of Poway Lowes Motorola Cal Trans Army Navy Golden Acorn Embassy Suites Marriot City of Carlsbad Enernoc Imperial Irrigation District Local health care clients include: Pioneer Hospital Health South El Centro Regional Medical Cntr. Kindred Hospital Alvarado Hospital UTC Surgery Center RE Surgery Center Golden Triangle Surgicenter Sydney Kimmel Cancer Center The background and experience of the Global Power Group, Inc. Corporate Officers, Support Staff, Generator Technicians, and Electricians is vast and varied. Our entire staff is looking forward to the opportunity to be of service to you. Enclosed please find a line card which describes some of the other services we provide. Please give me a call if you would like to meet or if you have any questions or comments. Sincerely, Len Prowse 1prowse ftpgpower.com 619-435-8595 202 Greenfield Drive, Suite C, El Cajon, CA 92020 www.globalpowergroup.net 0 Global Power G R O UP, I N C. To Whom It May Concern: 0 EXHIBIT'S" Power guaranties our labor rates from March 10, 2008 to March 10, 2010. Len Prowse National Accounts Manager Global Power Group Inc. Contract Rate Standard Rate Labor ST $ 85.00 $ 95.00 Labor OT $ 127.50 $ 142.50 Labor DT $ 170.00 $ 190.00 Labor Holiday $ 235.00 $ 255.00 Mileage First $ 1.00 $ 1.25 Shop ST*, OT*, DT* Are Same As Standard Rates $ 95.00 $ 95.00 Electrical $ 80.00 $ 85.00 Fuel Deliveries ST under 50 gal $ 45.00 $ 45.00 Fuel Deliveries ST Over 50 al No Charge No Charge Fuel Deliveries OT & Saturday $ 60.00 $ 60.00 Fuel Deliveries Sunday $75.00 $90 Fuel Deliveries Holiday $ 185.00 $ 235.00 Rentals Delivery ST** $ 75.00 $ 75.00 Rentals Delivery OT** $ 112.50 $ 112.50 Rentals Delivery DT" $ 150.00 $ 150.00 Load Bank Testing (O-IOOkW)*** $ 125.00 $ 175.00 Load Bank Testing 101-60OkWj * ** $ 175.00 $ 225.00 Load Bank Testing 601- 1000kW * ** $ 225.00 $ 275.00 Load Bank Testing 1000- 150OkW * ** $ 275.00 $ 325.00 Load Bank Testing 1501- 25OOkW * ** $ 375.00 1 $ 425,00 Fuel Polish (per hour)**** $ 120.00 $ 120.00 Hazardous Waste Disposal • 3% of all billable parts and labor NTE $30.00 11 -Inter M1dinimim ** No Mileage Charge * ** Per Hour Portal to Portal Per Day, During Normal Business Hours. * * ** The First 2 Filters Are Included Each Additional Filter is $25.00 All Pricing is Per Hour • • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 April 8, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Utilities Department Steve Myrter, Utilities Director 718 -3411 or smyrter (ci)_city.newport- beach. ca. us SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL POWER GROUP, INC. FOR ON -CALL GENERATOR MAINTENANCE AND REPAIR SERVICES RECOMMENDATION: Approve Professional Services Agreements with Global Power Group, Inc. for on -call • repair and maintenance services for generators and authorize the Mayor and City Clerk to execute the Agreements. DISCUSSION: Background: On -call agreements allow staff to retain specialized services that are regularly required for various maintenance and repairs of generators. Global Power Group, Inc. is a power systems specialist that provides service in the fields of installing, maintaining and servicing generators, as well as many other electrical services. Their staff is comprised of personnel from both generator and electrical companies with an average of 15+ years of experience. Global Power also provides 2417 hour emergency repair service, including rentals. Services will be performed and billed on a time and material basis, as per the rate sheet shown in Exhibit B. Global Power Group, Inc. has provided maintenance and repair service for the City's generators for the approximately the last 3 years. Environmental Review: . This action requires no environmental review, as it is not a project pursuant to CEQA. Repair *Maintenance of Generators — Approval Professional Services Agreement April 8, 2008 Page 2 Funding Availability: Funding is available in Maintenance and Repair 5300 -8160; 5600 -8160 and Prof. & Tech. 5500 -8080. Expenditures more than $30,000 for an individual repair project will require a separate City Council action in accordance with Policy F -14. Prepared by: "- RJ�Aq Cindy Asher, Orninistrative Manager Submitted by: Steve Myrter, U IIit s (rector Attachments: Agreement with Global Power Group, Inc. • 11 F— -I LJ • PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL POWER GROUP, INC. FOR ON -CALL GENERATOR MAINTENANCE AND REPAIR SERVICES THIS AGREEMENT is made and entered into as of this 9"' day of April, 2008, 'by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ("City"), and GLOBAL POWER GROUP, INC., a California corporation whose address is 202 Greenfield Drive, Suite C, El Cajon, California 92020 ( "Contractor"), 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 California and the Charter of City. B. City has a need for on -call assistance for Generator Maintenance and Repair Service. C. City desires to engage Contractor to perform on -call generator maintenance and repair services in various locations and for various City facilities. • D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal members of this firm for purposes of contact shall be Salvatore Martorana ( President), and Len Prowse (National Account Manager). F. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor 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: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 10th day of March, 2010, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED • Contractor shall provide "On -Call" generator maintenance and repair services as described in the Statement of Qualifications attached as Exhibit "A." Upon verbal or written request from the Project Administrator, Contractor shall provide • a letter proposal for services requested by the City (hereinafter referred to as the "Letter Proposal "). The Letter Proposal shall include the following: A. A detailed description of the services to be provided; B. The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; C. The estimated number of hours and cost to complete the services; and D. The time needed to finish the specific project. No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. • Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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 the Schedule of Billing Rates attached hereto as Exhibit `B" and incorporated herein by • reference. 9 0 • No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Project Administrator. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by per Council Policy F -14. 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and/or classification of employee who performed the work, a brief description of the services performed and /or the specific task in the letter proposal 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically, approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor. • A. The actual costs of subconsultants for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 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 3 • .. ... 0 times during the Agreement term. Contractor has designated Len Prowse to be • its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement_ If Contractor is performing inspection or construction management services for City, the Project Manager and any -other assigned staff shall be equipped with a Nextel Plus type cellular /direct connect unit to communicate with City staff. Consultant's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. 6. ADMINISTRATION This Agreement will be administered by the Utilities Department. George Murdoch shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her authorized • representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to. assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's work schedule. B. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's • supervision. Contractor represents that it possesses the professional and Q 0 0 technical 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, nor have any contractual relationship with City. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by • reason of strikes,. lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8.4 The term Construction Management or Construction Manager does not imply that Contractor is engaged in any aspect of the physical work of construction contracting. Contractor shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor"), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Contractor shall not be responsible for the Contractors' schedules or failure to cant' out the work in accordance with the contract documents. Contractor shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the work. 9. HOLD HARMLESS • To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents 5 0 0 and employees (collectively, the "Indemnified Parties ") from and against any and Is claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Contractor. 10. INDEPENDENT CONTRACTOR . It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall, have the responsibility for and control over the means of performing the work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the services. 11. 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. r 1 U �] • 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 14. 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 tern of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certficates of Insurance. Contractor shall provide certificates of • insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of • the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation 7 • Insurance and Employer's Liability Insurance in accordance with • the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with • work to be performed under this 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 for each occurrence. 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising • directly or indirectly from the Contractor's operations or services U 0 • • provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either parry except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. • F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractors performance under this Agreement. • G. Additional 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. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be Provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Contractor is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50 %) or more of the voting power, or twenty-five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. E • E 16. SUBCONTRACTING • The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon written request. Documents, including drawings and specifications, prepared by Contractor Pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written • authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons .other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Contractor written consent for such changes. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes the release of information. 19. OPINION OF COST Any opinion of the construction cost prepared by Contractor represents his judgment as a design professional and is supplied for the general guidance of City. Since Contractor has no control over the cost of labor and material, or over competitive bidding or market conditions, Contractor does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. • {V 0 9 20. RECORDS 0 Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor. to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 21. WITHHOLDINGS City may withhold payment 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 designee with respect to 40 withheld 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. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and /or restoration expense shall be bome by Contractor. Nothing in this paragraph is intended to limit City s rights under any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Contractors in connection with the Project. 24. CONFLICTS OF INTEREST 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 performed under this Agreement, and (2) prohibits such . persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 11 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 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. 25. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, 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: George Murdoch Utilities Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949- 6443011 Fax: 949 - 646 -5204 All notices, demands, requests or approvals from City to Contractor shall be • addressed to Contractor at: Len Prowse National Accounts Manager Global Power Group, Ind. 202 Greenfield Drive, Suite C El Cajon, CA 92020 Phone: 619 - 579 -1221 Fax: 619 - 579 -1166 26. TERMINATION 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. It such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) 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. Notwithstanding the above provision, 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 12 0 0 termination under this Section, City shall pay Contractor for services satisfactorily • performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28. 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. • 29. 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. 30. 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 govern. 31. 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. 32. 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. 13 L 33. 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. 34. CONTROLLING LAW AND VENUE The laws of the State of California shall govem 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. 35. 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 or age. I� C� 14 i • IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: Y Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation By: Edward Selich, Mayor for the City of Newport Beach CONSULTANT: By: (Corporate Officer) Print Name: In (Financial Officer) Title: Print Name: Attachments: Exhibit A — Statement of Qualifications Exhibit B — Schedule of Billing Rates 16 0 Global Power oeour►, rc��. Monday, March 1o, 2008 Re: Global Power Group, Inc. G10 # 870741 0 EXHIBIT W 1 I am writing this letter to serve as an introduction to Global Power Group, Inc., briefly outlining our breadth of experience and identifying our capabilities. We are a licensed electrical contractor specializing in commercial electrical installation and stand -by power industry. Global Power Group, Inc. is licensed through the California state contractor's license board and holds a Cr1o. The company is bonded, has a $1 million dollar pollution policy and liability coverage of $il million dollars, including a $10 million dollar umbrella policy. Global Power Group, Inc. is committed to having the most qualified and best trained staff in our industry. All of electricians are state certified our generator technicians are hazmat certified and factory trained. Our staff is comprised of personnel from both generator and electrical companies with an average of 15+ years of perience. We have highly trained generator technician and electrician crews capable of handling our customers' needs for generator and ATS installations, UPS systems, preventative maintenance, repairs, system monitoring, rentals, electrical upgrades, and refueling services. Any commercial electrical needs including job site temporary power. To better meet the needs of our customers, our company also provides 24 hour emergency service, including rentals. Our fleet of vehicles includes 4 wheel drive service trucks as well as a 4 wheel drive crane and a 1,000 gallon fuel truck, which gives us the ability to respond to any job environment. Our state of the art equipment includes power quality monitors, fuel polishers, load banks, and one of the most advanced infra -red cameras in the industry. We can also provide our customers with instant updates on all projects from the job site via our web -based management system. • U 0 • Our goal is to utilize our experience and expertise to provide our customers with the highest quality service available in the industry. Whether you need an emergency fuel delivery or a complete design - build turn -key installation, we can satisfy your needs. Some of our current clients include the following companies: The Augustine Company Vidavich Construction City of Vista Biosite Toys R Us City of Chula Vista Barona Verizon City of Newport Beach Viejas Nextel City of San Diego Adelphia Cingular City of Escondido SDG&E Sempra Energy County of San Diego Hilton Hitachi City of Poway Lowes Motorola Cal Trans Army Navy Golden Acorn Embassy Suites Marriot City of Carlsbad Enernoc Imperial Irrigation District Local health care clients include: Pioneer Hospital Health South El Centro Regional . Medical Cntr. Kindred Hospital Alvarado Hospital UTC Surgery Center RB Surgery Center Golden Triangle Surgicenter Sydney Kimmel Cancer Center The background and experience of the Global Power Group, Inc. Corporate Officers, Support Staff, Generator Technicians, and Electricians is vast and varied. Our entire staff is looking forward to the opportunity to be of service to you. Enclosed please find a line card which describes some of the other services we provide. Please give me a call if you would like to meet or if you have any questions or comments. Sincerely, Len Prowse 1prowseagpgpower.com 619 - 438-8595 202 Greenfield Drive, Suite C, El Cajon, CA 92020 www.globalpowergroup.net • i EXHIBIT IF • Global Power GROUP. IMC. To Whom It May Concern: Power guaranties our labor rates from March 10, 2008 to March 10, 2010. `�.. • Lerr Pmwse National Accounts Manager Global Power Group Inc. U MIT- Contract Rate Standard Rate Labor ST $ 85.00 95.00 Labor OT $ 127.50 $ 142.50 Labor DT $ IMOO $ 190.00 Labor Holiday $ 235.00 $ 265.00 Mileaaa First $ 1.00 $ 1.25 Shop STk, OT*, Dr Are Same As Standard Rates $ 95.00 $ 95,00 Electrical $ 80.00 $ 85.00 Fuel Deliveries ST under 60 gal $ 45.00 $ 45.00 Fuel Deliveries ST Over 50 al No Charge No Charge Fuel Deliveries OT & Saturday $ 60.00 $ 60.00 Fuel Deliveries Sunday $75.00 $90 Fuel Deliveries Holiday $ 185.00 $ 235m00 Rentals Delivery ST** $ 75.00 $ 76.00 Rentals Delivery Or* $ 11210 $ 112.50 Rentals Delivery DT** $ 150.00 $ 150.00 Load Bank Testing (0-1 OOkW)*** $ 125.00 $ 175.00 , ,7 Load Bank Testing 101.600kW * ** $ 175.00 $ 225.00 Load Bank Testing 601- 1000kW " ** $ 225.00 $ 275.00 Load Bank Testin 1000- 1600kW * "« $ 275.00 $ 325.00 Load Bank Testin 1601- 2600kW * ** $ 375.00 $ 425.00 Fuel Polish (per hour)**** $ 120.00 $ 120.00 Hazardous Waste Disposal * 3% of all billable parts and labor NTE $30.00 1 Llnnr Minimum "* No Mileage Charge Per Hour Portal to Portal Per Day, During Normal Business Hours. The First 2 Filters Are Included: Each Additional Filter is $25.00 All Pricing is Per Hour • PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL POWER GROUP, INC. FOR ON -CALL GENERATOR SERVICES THIS AGREEMENT is made and entered into as of this 1 day of October, 2007, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and GLOBAL POWER GROUP, INC., a California corporation whose address is 202 Greenfield Drive, Suite C, El Cajon, California 92020 ( "Contractor "), 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 California and the Charter of City. B. City has a need for on -call assistance for Generator Service. C. City desires to engage Contractor to perform on -call generator services in various locations and for various City facilities. D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal members of this firm for purposes of contact shall be Salvatore Martorana ( President), and Len Prowse (National Account Manager). F. City has solicited and received a proposal from Contractor, has reviewed the previous experience and evaluated the expertise of Contractor, and desires to retain Contractor 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: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 30th day of March, 2008, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Contractor shall provide "On -Call" generator services as described in the Statement of Qualifications attached as Exhibit "A." Upon verbal or written request from the Project Administrator, Contractor shall provide a letter proposal for services requested by the City (hereinafter referred to as the "Letter Proposal "). The Letter Proposal shall include the following: A. A detailed description of the services to be provided; B. The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; C. The estimated number of hours and cost to complete the services; and D. The time needed to finish the specific project. No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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 the Schedule of Billing Rates attached hereto as Exhibit "B" and incorporated herein by reference. K No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Project Administrator. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by per Council Policy F -14. 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and /or classification of employee who performed the work, a brief description of the services performed and /or the specific task in the letter proposal 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: A. The actual costs of subconsultants for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 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 3 times during the Agreement term. Contractor has designated Len Prowse to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. If Contractor is performing inspection or construction management services for City, the Project Manager and any other assigned staff shall be equipped with a Nextel Plus type cellular /direct connect unit to communicate with City staff. Consultant's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. 6. ADMINISTRATION This Agreement will be administered by the Utilities Department. George Murdoch shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's work schedule. B. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and C! technical 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, nor have any contractual relationship with City. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8.4 The term Construction Management or Construction Manager does not imply that Contractor is engaged in any aspect of the physical work of construction contracting. Contractor shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor "), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Contractor shall not be responsible for the Contractors' schedules or failure to carry out the work in accordance with the contract documents. Contractor shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the work. 9. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Contractor. 10. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the services. 11. 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. 9 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator and /or his /her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 14. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation 7 Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this 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 for each occurrence. 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. G. Additional 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. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Contractor is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. 0 16. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon written request. Documents, including drawings and specifications, prepared by Contractor pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Contractor written consent for such changes. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes the release of information. 19. OPINION OF COST Any opinion of the construction cost prepared by Contractor represents his judgment as a design professional and is supplied for the general guidance of City. Since Contractor has no control over the cost of labor and material, or over competitive bidding or market conditions, Contractor does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 10 20. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 21. WITHHOLDINGS City may withhold payment 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 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. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and /or restoration expense shall be borne by Contractor. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Contractors in connection with the Project. 24. CONFLICTS OF INTEREST 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 performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 11 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 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. 25. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, 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: George Murdoch Utilities Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949 - 644 -3011 Fax: 949 - 646 -5204 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Len Prowse National Accounts Manager Global Power Group, Ind. 202 Greenfield Drive, Suite C El Cajon, CA 92020 Phone: 619- 579 -1221 Fax: 619- 579 -1166 26. TERMINATION 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 two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) 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. Notwithstanding the above provision, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving 12 seven (7) calendar days' prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28. 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. 29. 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. 30. 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 govern. 31. 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. 32. 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. 13 33. 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. 34. 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. 35. 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 or age. 14 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: Aaron`C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: By i LaVonne Harkless, City Clerk CITY OF NI A Municipal Utilities Director for the City of N, CONSULTAN' Beach Attachments: Exhibit A — Statement of Qualifications Exhibit B — Schedule of Billing Rates 15 i September 25, 2007 George Murdoch Operations Manager City of Newport Beach Utilities Department 949 W. 16th Street Newport Beach, CA 92663 RE: Planned Maintenance Agreement Proposal City of Newport Beach Utilities Department - Emergency Power System Dear George, Thank you for allowing Global Power Group Inc. (GPG) the opportunity to provide this proposal for the preventive maintenance at your facilities. GPG offers a more interactive option to the traditional preventive maintenance plan. Our goal is to provide a premium level of preventive maintenance service following standards established by most major generator manufacturers. As a GPG Contract Customer you and your staff will be able to view the current status as well as selected history of your emergency power systems history via a secured Web Based Service Management System. You will be able to view the information on line anywhere you have access to the internet. This feature eliminates the need to contact us for basic account info as well as any fluid sample or equipment operating history. ■ We offer 24 hour service 7 Days a week ■ We deliver #2 EPA diesel fuel with our own diesel fuel delivery truck. ■ We hold a current C -10 Electrical Contractors License. ■ We provide assistance with Engine Emissions information and APCD Registration, ■ We are a certified DOT Drug Free Workplace with random monthly testing. ■ We employ Factory Trained Generator Service Engineers ■ Our technicians are Hazmat Certified to Iegall haul specified amounts of hazardous wastes. ■ We own fully equipped late model service trucks ready to respond at a moments notice. We will work with your staff to keep your Emergency Power System operating as safely and reliably as possible. In addition we will constantly keep you abreast of any changes in local environmental and safety codes and potential problems that could jeopardize the stand -by reliability of your equipment. Please read the contract completely. Note the "Customer Worksheet" and various billing options. Should the terms of this contract meet with your approval, please sign one copy, and return it to the above address. But If you have questions or concerns about this proposal, I would like to meet with you in the near future and provide a proposal that will better meet your needs. Sincerely, Len Prowse National Account Manager Page- 1 - of 20 Planned Maintenance Proposal - Scope of Work For City of Newport Beach Utilities Department Date: September 25, 2007 Attention: George Murdoch This proposal is a Preventive Maintenance Program for the emergency power system at City of Newport Beach Utilities Department. The maintenance will consist of three (3) Quarterly Inspections and one (1) Annual Oil and Filter Change. All of the following Inspections and Services will be performed during regular business hours unless noted otherwise in this agreement.Four (4) times per year during the term that this agreement remains in effect. In between services it is the owner /operator's responsibility to check battery water level, oil level, coolant level, and general condition of the equipment. »»»»»»»»»»»»»» » » » » » » » » » » » » » » » » » » » » » » » » » » » » » »> Quarterly Inspections Enclosure Inspect installation for obstructions or debris Inspect enclosure for corrosion or openings Batteries Starting batteries will be c leaned, Electrolyte levels and specific gravity will be checked Battery load test will be performed Reports made for recharging or replacing Battery charging system will be checked for proper operation. Fuel System Above ground diesel fuel tanks and lines will be inspected for defects. Critical fuel levels will be noted Refueling will be ordered when fuel is below 90% Enoine Check for fuel, oil or coolant leaks All fluid levels will be checked and topped -off as necessary. (Fuel not included) Governor system and linkage will be checked for binding and proper operation Air cleaners will be checked and if necessary recommendations made for replacement. Engine block heater(s) and associated plumbing will be checked for proper operation. All belts will be checked for proper tension, signs of age and wear Cooling System Radiator will be checked externally for debris, leaks or corrosion Coolant will be tested with a coolant test strip Internal condition of cooling system noted Radiator Cap will be checked for proper seal Cooling system hoses will be checked Generator Controller Check electrical connections and wiring for any abrasion or chaffing Check switches and gauges Check panel lights Switch_gear Automatic transfer switches will be visually inspected - 1 - Page - 2 - of 20 Panel lights and displays will be checked Planned Maintenance Proposal - Scope of Work For City of Newport Beach Utilities Department (Continued) Operational Generator Checks GPG Service Engineer will enter running time meter start time in logbook Generator breaker will be opened Generator set will be started Equipment will be checked for abnormal speed, operation, vibration and noises Engine and control gauges will be observed for proper operation Check voltage and frequency outputs All readings will be recorded Electrical and mechanical shutdowns will be tested Generator will be shut down, generator run time log entry made Annual Maintenance Services (Once per year) Perform the inspections noted above Change engine lubricating oil and oil filters Change engine fuel filters Change engine air cleaner element. (s) Change water filters and coolant conditioners when used Obtain oil sample for analysis by fluid testing laboratories Obtain coolant sample for analysis by fluid testing laboratories Dispose of hazardous wastes from our maintenance service Pre — departure Procedure Service engineer will apply touch up paint, if necessary Preserve reasonable overall appearance of equipment Customer representative will be instructed on upkeep procedures Report condition of the components tested to the customer representative Note any recommendations for repairs that are needed If there are any problems encountered during the planned maintenance service visit they will be brought to the attention of the owner /operator. Repairs will only be made after proper authorization from owner /operator is given to the technician. 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FOR ON -CALL GENERATOR SERVICES THIS AGREEMENT is made and entered into as of this 15 day of May, 2006, by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "City "), and GLOBAL POWER GROUP INC., a California corporation whose address is 202 Greenfield Drive Suite C, El Cajon, California 92020, ( "Contractor ") 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 California and the Charter of City. B. City has a need for on -call assistance for Generator Service. C. City desires to engage Contractor to perform on -call generator services in various locations and for various City facilities. D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal members of this firm for purposes of contact, shall be Salvatore Martorana (President), and Len Prowse (National Account Manager). F. City has solicited and received a proposal from the Contractor and have reviewed the previous experience and evaluated the expertise of the Contractor, and desires to retain the Contractor 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: 1. TERM The term of this Agreement shall commence on the above written date, and is open for renewal annually [twelve months from commencement], unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Contractor shall provide "On -Call' generator services as described in the Statement of Qualifications attached as Exhibit "A." Upon verbal or written request from the Project Administrator, Contractor shall provide a letter proposal for services requested by the City (hereinafter referred to as the "Letter Proposal "). The Letter Proposal shall include the following: (a) A detailed description of the services to be provided; (b) The position of each person to be assigned to perform the services, and the name of the individuals to be assigned, if available; (c) The estimated number of hours and cost to complete the services; (d) The time needed to finish the project. No services shall be provided until the Project Administrator has provided written acceptance of the Letter Proposal. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Contractor to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Contractor's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Contractor's control. 3.2 For all time periods not specifically set forth herein, Contractor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONTRACTOR 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 the Schedule of Billing rates attached hereto as Exhibit "B" and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's compensation for services performed in accordance with this Agreement, including all reimbursable items and subcontractor fees, shall not exceed the fees identified in the Letter Proposal, as approved by the Public Works Department. Any Letter Proposal that sets forth fees in excess of Thirty Thousand Dollars and No Cents ($30,000.00) shall require a separate Professional Service Agreement approved by City Council per Council Policy F -14. 4.1 Contractor shall submit monthly invoices to City describing the work performed the preceding month. Contractor's bills shall include the name of the person and /or classification of employee who performed the work, a brief description of the services performed and /or the specific task in the letter proposal 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 K expenditures. City shall pay Contractor no later than thirty (30) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Contractor only for those costs or expenses specifically approved in the Letter Proposal. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: A. The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement and the Letter Proposal, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 4.3 Contractor shall not receive any compensation for Extra Work 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 Letter Proposal and which the parties did not reasonably anticipate would be necessary. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates set forth in Exhibit B. 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 Agreement term. Contractor has designated LEN PROWSE to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. If Contractor is performing inspection or construction management services for City, the Project Manager and any other assigned staff shall be equipped with a Nextel Plus type cellular /direct connect unit to communicate with City staff. Contractor's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. 3 6. ADMINISTRATION This Agreement will be administered by the Utilities Department. GEORGE MURDOCH shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Contractor in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Contractor, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Contractor's work schedule. B. Provide blueprinting and other services through City's reproduction company for bid documents. Contractor will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Contractor and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the professional and technical 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. 8.2 Contractor represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Contractor to practice its profession. Contractor further represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Contractor to practice its profession. Contractor shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Contractor shall not be responsible for delay, nor shall Contractor be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 12 8.4 The term Construction Management or Construction Manager does not imply that Contractor is engaged in any aspect of the physical work of construction contracting. Contractor shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor "), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Contractor shall not be responsible for the Contractors' schedules or failure to carry out the work in accordance with the contract documents. Contractor shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the work. 9. HOLD HARMLESS To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement (including, without limitation, defects in workmanship or materials and /or design defects [if the design originated with Contractor]) or Contractor's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Contractor. 10. INDEPENDENT CONTRACTOR It is understood that City retains Contractor on an independent contractor basis and Contractor is not an agent or employee of City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Contractor or any of Contractor's employees or agents, to be the agents or employees of City. Contractor shall have the responsibility for and control over the means of performing the work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this 5 Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the services. 11. 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. 12. CITY POLICY Contractor shall discuss and review all matters relating to policy and project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Contractor is responsible for keeping the Project Administrator and /or his /her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 14. 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. 9 D. Coverage Requirements. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this 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 for each occurrence. 4. Professional Errors and Omissions Insurance. Contractor shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of One Million Dollars ($1,000,000). D. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insured with respect to liability arising out of work performed by or on behalf of the Contractor. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 7 15. 16. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) days written notice has been received by City. A. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. B. Additional 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. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venture or syndicate member or cotenant if Contractor is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Contractor. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Contractor. Assignments of any or all rights, duties or obligations of the Contractor under this Agreement will be permitted only with the express written consent of City. Contractor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. 0 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Contractor, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Contractor or any other party. Contractor shall, at Contractor's expense, provide such Documents to City upon written request. Documents, including drawings and specifications, prepared by Contractor pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Contractor will be at City's sole risk and without liability to Contractor. Further, any and all liability arising out of changes made to Contractor's deliverables under this Agreement by City or persons other than Contractor is waived against Contractor and City assumes full responsibility for such changes unless City has given Contractor prior notice and has received from Contractor written consent for such changes. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes the release of information. 19. OPINION OF COST Any opinion of the construction cost prepared by Contractor represents his judgment as a design professional and is supplied for the general guidance of City. Since Contractor has no control over the cost of labor and material, or over competitive bidding or market conditions, Contractor does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 20. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City to examine, audit and make transcripts or copies of such records during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 9 21. WITHHOLDINGS City may withhold payment 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 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. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Contractor which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Contractor, the additional design, construction and /or restoration expense shall be borne by Contractor. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Project. 24. CONFLICTS OF INTEREST 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 performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 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 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. 25. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, 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: George Murdoch (Acting Operations Manager) Utilities Department City of Newport Beach ire 3300 Newport Boulevard Newport Beach, CA, 92658 -8915 Phone: 949 - 644 -3011 Fax: 949 - 718 -3522 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Len Prowse National Accounts Manager Global Power Group, Inc. 202 Greenfield Drive, Suite C El Cajon, CA. 92020 Phone: 619 - 579 -1221 Fax: 619- 579 -1166 26. TERMINATION 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 two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) 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. Notwithstanding the above provision, 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 performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all reports and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 27. 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, regulations and permit requirements and be subject to approval of the Project Administrator and City. 11 28. 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. 29. 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. 30. 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 govern. 31. 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. 32. 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. 33. 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. 34. 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 or age. 12 35. 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. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: C. Aaron Harp, Assistant City Attorney for the City of Newport Beach ATTEST: Bra: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation By: / a a� ' Pete Antista Director of Utilities for the City of Newport Beach CONTRACTOW By:_ (C e Officer) Title: r\? -�,t S—ev Print Name: (Financial Officer) Title: ao Print Name: G i- ce�x* Attachments: Exhibit A — Statement of Qualifications / Letter Proposal Exhibit B — Schedule of Billing Rates 13 EXHIBIT "A" April 4., 2006' George Murdock qpef-aliens Manager City of Ne�-�poit Beach, Utilifics Deparbment 949 IN 16th Stmet Newport Beach, CA 92663 RE.- Planned MaIntenarice, Aq emerd Pnoposal re CiPl of Newport Beach Utilities Department - Emergency Power System Gear George, Thank you for afloi-Vrig Gfoba I Povve-rG7foiq-, h7c, ((-PG.) the appoftunily to pro vyde thisproposcV Ior Me gr-oventive. Maintenanix all your facAfies.. GP G offers a more interactive apikon to the ftmdificnal preventive traintenaInce plan. Our goof is !t) prowdP a preadurn, fovet, of Preventive tnaintewancta saillice foYawing stuvdarcjs ps-tab4islied by rr?ursi As a (,PG Cantr out cays-,tonipr you and your Staff ;Iefll 0,e atria fe, Vie the cur fcml states at weif as Safecied hislofy of yom- emergency powur systems histor y via a st auLirecl Web Based Service Management System. You -V141 be atwe to view tire inforrysatiory of? fif?e arTw.17ere you have accoss to, u7p intemet. hu's ceature 9.nlninstes ecntsct uc 'or basic accoont.11-efo as iljeff as Pny orequipment Wuuffer 24 hour Fervice i Days aveek in 'rile deaver#2 EPA dicsel fuel wAh our own diesel Fuel Lielivery truck. N "VNC- hold a ourrent C -10 E I ectrical Co r1facto rs License. im 1-,M provOe with En" lire Elli issions information and APGO pegistrarlor'. ■ We arc a certified DOT DTu-o Fre e Wurlkplace with random rnonthly testing, m 'Ate:; crnphoy Factori Train edGcnef ato r Service Engineers w OL, ;r technician-: ure-- Hn7rnat Cert-fied to k�A �alk, hatil specified arnowits of vjas:es. z VVc; c• q,, n,111-y eqLipoeci itat@ -modei se.!,vic- trucks, ready to r-::,,spGnf-.' cii a monlents notice. A,b mif work with your staff to keep yourLinenjency FlavverSy.3tmi? Operating as svklv and roiabiy as pm, sib"a, it? adn"It"011, we "./jfl Constantly keep you abre-ast of c?ny uharqe,43 io focai environmenial and -,;afuty codes and paten fi-af Probbms tbhia" "lle Stand-f,JY refia'N'ity OfyourequiPmenE. Ple;iSf', Se@G' '178 GOPtFaUt VUFTrrjk?!ely Note the -Customer 9t ark5hcet" and various bjffin� options. Shouid tPe,, , 'c and return it to the above address. atif ff m0s of iffis ronfract meet,.?tdth your agoroval, please sign one copy, You halm questfbnc, Gf COMUCT"IS ahnal this flrqpc;saf� 11 -,amjldfik�� M, fneet t-vdth you in ff-,Te ricer FuLturo zmd orovide a !Oa-,-p•ssl that 1,v Vi buttrw ynar needs. Siflcem�rjv, Leii Prowse Natiorial A ccotmt Mewwager kage "D Planned Maintenance Proposal - Scope of Work For City of Newport each Utilities Department Date: April 4.. 2006 Attention: George Mardock TY%is oraoosaNs o Pf evaretivu 'Waintenanice "-Iragawj e.Mr-f-ge;?oy power system AJ City of Newport Bp.ji,-h Utifities Department. The rriuintenim?ce wfil --onsist od t,'?iree ou.-jntetfy 1nsreruors and one (1) Oi Fifier Cfiaf;,t,ja Alf or L'hu kvflovvinq "asper""Oms and :5e1-vfCk--Svvj,.f be pewf'Olnr-n-ed durng regular - e3asmess hour,5 apiless, ,,oted roffier,,vif a iry this agmem, ent. Four (4) :irises lxw yoor durifq the{ fufm Met this L-?,pluemen't remains ir, of W 1)e4�1een �ervices it is ff?e ownef/oper din r'3 re's e C' Nan e r-Ly n ponsihXty to rhecik baffFty -watprievel, off fev .1, ai t,,.v,. a d gen4v.9i cx)r1'Xon T,)f rfhe Enclosure fasofuct instahulibn for o -b-slim-clions or dubr,'s I I ' f"svecLl eock,&urfu Fuf corrusivn oy' cfxming 's Batteries Startin 'a b. fte-rias vvill be mlaap�e'd Shectrofyie -'evehs and, qrav tyvz 'M u,riut;XCIO, j9z'if'efy faad lest wiff be pe6ormed Paporis m2de, for rerhanging rjr rap)armg So-Utery charging system will be checked for pircaper qperallon. Fuel System A icait-6-ei iavals 'J'ail b Grit e noted PuLue-fing itoW be ordered ivhep fuel ;s below 9GIN En-gin Ch eck fr-r fuel, ot; n!- ccoi<--irir haaA,.; .."M fluid I'cv'ois wiff be checked and top ed--o',Lls n9cessar -!e. c P y� t in rvpf -n or sy i e m ao, GI 1rr ika, q e vviil; be checked fc;;- bir. d11713 ; an=y prope, nparpto,, y Ar rn-eEnei� 'xdl ,-r c!�e--ked and ORCOS _Fn vin_ 31 and associated piumbirp- ne ";r"eGk61d A# beaf?,s vvii! sari' heckud :ar-proper iterision. siqns ofage and wear Cooling system RadiuIer vviij be ^hec' !(erf PXtei-nahly i�of- debr"S. lleaksor (3-aciaW be tusled with a GOO"an" test S"Flip f'nternai conaihon of r;ooWr)rjs-ys,.*e,7n • R.dLator Car. 1,wil ha cl?er-kad Coc!ing zqvem 117osps ',will be cnieck-aa Generator Controller "'17P ck Plectfir,-jf coomm;Yons ar?d wiring ilor any abr2cioi7 or chaff Og Cftck Svvitches and ac uce's Ck 00f'.(9 , Is Switchgear AIM'0819DO lr16SJMT ',�w ches btriff be vjsala'�,/ vks�:G�&J Pare[,Vghts and dispjiay�s bu c,,hockud' P@gc - 2 - t_1 ... Planned Maintenance Proposal - SCOPe Of Work For ",f,_ City of Newport Beach Utilities perational Generator Checks G t r P r`r t;di enter r onning Yn-ff" i r e er" Sari ±dd7ie if i 7f]%d ?r�%+ l�d-"�7 �- ri'.+l� .atJrfr�G -r V. d � - Get?emluf 7reaker> fif be opened Gvv ratrjr stmt will be, started �tdt�'!�7 }' 1 [ :r!! be r`!£?GJtf [I i ?r ?f3li�r71 01 Sps, Cj, 57dji t ?2i�t7, 4+':d�fc7irU,fi clrr i ict e - F ?3rr ?t: 3i?ia ,.,jfiTro' �jclidy'P.: �ifddi be ii~:af,�f' .f] ifJf �7r,a} Pr tJs'sefaI P Check voltage and f egijency ocftqtifs ,add be recorded Eectf,ir,rif 9r", rneci"te3r"d!cal i1vtrj0'vnS vvi.I be dtS= f C. Gc ctrator' rrl1 be sh a, Low grey,e -star ru � 'iin ie 3 t't ?tt?' ;rii�u� I'= Annual Ma.nter7a[nccrvdcesn qtr ear F�f tern? the ri ?soections Fart t abnvp (";d7�ri�r. fr,- jrr {drC; d(iS? rf:�!ldi� Ira ar!C� Jdd lidsE'.1 rS' i= �,. a �.'i!gdt ?G rtJrr trlieF," , -hang[ engine air+cIuarrjur it ft,- rnent.(S) ,'hatige 'gvatpr ffltgrs and t:onditiofders wfxv? used Obtain oij sai-n -P.1 or raf?i-iy,,3js v Iiib ratorde.i Obtain cockjrtir S:�ji? A' *Or ai;c7i' {sis �.4' ;it"d t'sti 39 {.� J't ft! �ri�' Di_spr_> t� t t trr�z rrlt�dfs !r. as2 � d'rOrr rrrir tnefritenancea ao.rvia ; pre —departure Pro cedtire y L-s '•.i ?fVlt;t? e.r7�rid7eei "vJi�Ir gN;fJjt� i�. �`_:h ( p i1 ?!�r2, re i?�L�,�.V y Hip -serge rwasonabbk! overVf PPeat-S-F?cc Of Ctdt*) "r ?erlt Clis'Lomef Cr7rosc"I ?kFall'u e will be, insf ict td GO iPIkeeP t` rocedafes pF?t7tJl: C.t]Irtiaitf7!? Ci 2trU c,]Frpr] {77itrrla t Ste 3 2c the cus', xf'"e, r'tsr sS 77t;3i1'v'? !t?tjeadl,i thm2 afp t ?E.9dr:,,, ix t CfF' c.'ft, i7FrrJ tltE:d71e!' ? ?S of ?i'.ountemd during tt?e ,tpdanned fY?cairlmnar) S{:.dviC7t: vt.4.drF il2t -� 4�i�d be d3i�LfC�t''r :'�' ifrt; cliir v[t#!� t17V. Qft is [Jd'r7 i�:7 ir!il�: ! tJ:e ?4iedj2?'r3ttr. Vlf only be 7ad& '�'� e iit %Bi7^d � tds L`rd V £ j 010 t'rit;r s its 39 d7? a2rsr at re:fxspecial" t�rdt X, labor a3te'� t ierro f me s, » > > > > » > > > > ?;> > > > > > > > >>>>> > > » » >> >>>>>>>>? > > >>> > » » > > > >>>> > > > > > > > > > > >5 > >7 »> I N H f� H W } � [ | ( | 9� -- [ ! / 7 a 2 � � ® ® \� �] ; 2: \| � } � � \!