HomeMy WebLinkAboutC-4336 - On-Call RSA for Repair of Electric Motors for Water Wells and PumpsI" ,�
ON -CALL REPAIR SERVICES AGREEMENT
WITH R. A. REED ELECTRIC COMPANY
THIS ON -CALL 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 R. A. REED ELECTRIC
COMPANY, a California Corporation, whose principal place of business is 5503 S.
Boyle Avenue, Los Angeles, California 90058 -3997 ( "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 on -call repair services for the repair of electric motors that drive
wells and booster pumps.
C. City desires to engage Contractor to perform on -call repairs of electric motors on
an as- needed basis ( "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 price 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 commence on the above written date, and shall
terminate on the 30th day of June 2012, unless terminated earlier as set forth herein.
2. SCOPE OF SERVICES
Contractor shall provide "On -Call" repair services as described in the Scope of Services
attached hereto as Exhibit 'A' and incorporated herein by this reference (the "Services"
or "Work "). 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, equipment and all utility and
transportation services necessary for the Project.
Upon verbal or written request from the City's Project Administrator (as defined in
Section 6 below), 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 estimated number of hours and cost to complete the Services; and
C. The time needed to finish the specific project.
No Services shall be provided until the Project Administrator has provided written
authorization to proceed with the Services as described in the Letter Proposal. Once
authorized to proceed, Contractor shall diligently perform the Work described 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.
On -Call Services Agreement Page 2
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, 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. Total compensation paid to
Contractor during the Term of this Agreement shall not exceed Thirty Thousand Dollars
and No Cents ($30,000.00) without written amendment to the Agreement.
4.1 Contractor shall submit monthly invoices to City describing the Work
performed the preceding month. Contractor's invoices 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
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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. 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 Project Administrator 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. WORK DEFICIENCIES AND CORRECTIONS
5.1 The Contractor's performance will be evaluated on a regular basis. When
problems are identified, the Project Administrator will notify Contractor. If
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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.
5.2 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) wor orce an o
(c) r en or o pe orm the maintenance an o er
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terminating the agreement; and /or (f) taking any other action and
exercising any other legal remedy available to the City under law.
6. ADMINISTRATION
This Agreement will be administered by the Utilities Department. Steffen Catron, Water
Production Supervisor or his designee shall be the Project Administrator and shall have
the authority to act for City under this Agreement. The Project Administrator or his
authorized representative shall represent City in all matters pertaining to the Services to
be rendered pursuant to this Agreement.
7. TYPE AND INSTALLATION OF MATERIALS /STANDARD OF CARE
7.1 Contractor shall use only the standard materials described in Exhibit 'A' in
performing Services under this Agreement. Any deviation from the
materials described in Exhibit 'A' shall not be installed unless approved in
advance by the Project Administrator.
7.2 All of the Services shall be performed by Contractor or under Contractor's
supervision. Contractor represents that it possesses the personnel
required to perform the Services required by this Agreement, and that it
will perform all Services in a manner commensurate with 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.
8. RESPONSIBILITY FOR DAMAGES OR INJURY
8.1 City and all officers, employees and representatives thereof shall not be
responsible in any manner for any loss or damage to any of the materials
or other things used or employed in performing the Project or for injury to
or death of any person as a result of Contractor's performance of the
Services required hereunder; or for damage to property from any cause
arising from the performance of the Project by Contractor, or its workers.
On -Call Services Agreement Page 4
8.2 Contractor shall be responsible for any liability imposed by law and for
injuries to or death of any person or damage to property resulting from
defects, obstructions or from any cause arising from Contractor's work on
the Project, or the work of any supplier selected by the Contractor.
8.3 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.
8.4 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 Work.
8.5 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.
On -Call Services Agreement Page 5
8.6 The rights and obligations set forth in this Section shall survive the
termination of this Agreement.
9. INDEPENDENT CONTRACTOR
City has retained Contractor as an independent contractor and neither Contractor nor its
employees 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.
10. COOPERATION
Contractor agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the Work
to be performed. City agrees to cooperate with the Contractor on the Project.
11. INSURANCE
Without limiting Contractor's indemnification of City, and prior to commencement of
work, Contractor shall obtain, provide and maintain at its own expense during the term
of this Agreement, 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.
1. Coverage and Limit Requirements.
a. 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.
b. 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,
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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.
c. 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.
d. 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.
2. Other Insurance Provisions or Requirements
a. Evidence of Insurance. Contractor shall provide certificates of insurance
to City as evidence of the insurance coverage required herein, along with
a waiver of subrogation endorsement for workers' compensation and 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.
b. General liability insurance provisions. Primary and excess or umbrella
liability policies are to contain, or be endorsed to contain, the following
provisions:
i. 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
On -Call Services Agreement Page 7
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.
ii. 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.
iii. 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.
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. Notice of Cancellation. Contractor agrees to oblige its insurance broker and
insurers to provide to City with 30 days notice of cancellation (except for
nonpayment for which 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.
e. 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.
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f. 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.
g. 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.
h. 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.
i. 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.
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.
k. 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.
I. 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
On -Call Services Agreement Page 9
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.
12. 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.
13. 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 shall 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.
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.
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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: Steffen Catron
Utilities Department
City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658
Phone: 949 - 718 -3422
Fax: 949 - 646 -5204
All notices, demands, requests or approvals from City to Contractor shall be addressed
to Contractor at:
Attention: John Richard
R. A. Reed Electric Company
5503 Boyle Avenue
Los Angeles, CA 90058 -3997
Phone: 323 - 587 -2284
Fax: 323 - 587 -2128
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
On -Call Services Agreement Page 11
(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.
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.
On -Call Services Agreement Page 12
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
Proposal for On -Call Services 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. 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.
26. WARRANTY
Contractor agrees that the repairs made pursuant to this Agreement shall be covered as
outlined in the Warranty Information, attached hereto as Exhibit C and incorporated in
full by this reference.
On -Call Services Agreement Page 13
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
BO I A ,1,,4w
Leonie Mulvihill �t
Assistant City Attorney fj\t
ATTEST:
By:
Leilani I. Brown tA)A --
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
By.
�e�o a Murdoch
Utilities Department Director
CONTRACTOR:
R. A. REED ELECTRIC COMPANY:
By: u
J2tb,Wichard
President
By:\
Alex Wong
Controller
Attachments: Exhibit A — Scope of Services
Exhibit B — Billing Rates
Exhibit C — Warranty Information
A08 -00093 revised 5.11.10 Form On -Call Maintenance Repair Services
On -Call Services Agreement Page 14
5503 S.Boyle Avenue' Los Angeles, CA 90058
Telephone: 323 - 587 -2284' Fax: 323 -587 -2128
E -mail: Service @Reed- Electft.com
Statement of Qualifications
With an 80 -year history, Reed Electric offers you a team of professional experienced personnel. You will be
dealing with an established company that has the proper equipment and experience to produce the quality
work you desire.
Reed has long -term experience in many market places, including:
Paper' Chemical * Heavy Manufacturing * Utility & Cogeneration * Sanitation & Water Districts
Refineries * Studios * Cement Manufacturing * Elevator Service * Steep* Food
Repairs:
➢ Experienced in the repairs of all types and brands of motors and generators, both AC and DC.
➢ An authorized U.L. plant for the rebuilds of explosion -proof motors
➢ Repair of transformer up to 10 MVA.
➢ Rebuild all types of driven equipment including fans, pumps, blowers, gearboxes and magnetic
drives, allowing single source warranty and responsibility.
➢ Complete machine shop in house with skilled machinist and welders on duty. Equipment
includes a 72" Vertical Boring Mill and 106" Swing Lathe.
➢ Computerized balancing, capable of handling rotors up to 45001b and rotor swing diameter up
63 inches. Schenck Balancer Model # H5U hard bearing balancer
➢ 8Ft. ID Vacuum Pressure Impregnation (VPI) System. VPI process provides maximum
penetration of resin throughout the tums of individual coils.
➢ Reed Electric uses high temperature Class H (180 degrees) and Class R (210 degrees)
insulation, assuring you of long thermal life and inverter duty wire.
➢ Stringent testing procedures previous to and following all rebuilds.
➢ Testing performed on steel base.
Field Services:
• Field Repairs: On request, can provide full removal and reinstall. On -site turning and
undercutting of commutators, cleaning, and other minor electrical and mechanical repairs.
• Electrical Parameter Analysis: For predicting winding failures without removal of equipment,
Reed can perform surge, polarization index (PI), and Hi pot tests in the field. Full reports
included.
• Vibration Analysis: Training programs — Diagnostics. Including resonant tests, transient
analysis, and startup /coastdown analysis.
• Field Laser Alignment., Using laser alignment technology with multi -plane and multi -speed
capability. Reports include graphical summary, including corrections and tolerances. Motor
thermal growth included, if requested.
• Field Balancing.- Dynamic, multi -plane field balancing available.
• Warranty Certification. Verify specification standards for new equipment performance. Studies
show that nearly 10% of new parts have defects or flaws. By detecting problems immediately,
warranty is protected and flaws do not shorten normal life expectancy.
New Motor and Equipment Sales:
➢ Motors AC & DC up to 12500HP
➢ Generators
➢ Transformers
• Pumps
• Submersibles
• Gearboxes
• Clutches
➢ Brakes
➢
Electronic Drives
➢
Lifting Magnets
—➢
➢
Varidrives
➢
VDF's
Master Stocking Distributor & Authorized Manufacturer Warranty:
➢ US Motors
➢ Teco
• Toshiba
• Emerson
• Baldor
➢
Reliance
➢
GE
➢
Siemens
➢
Hitachi
➢
Wag
➢
Leeson
➢
A.O.Smith
➢
Lincoln
➢
Bell & Gossett
Key Personnel:
Robert Martinez. Plant Manager and Laser Align Specialist
0 20 years in motor business
0 Positions in the business:
• Machine Shop Foreman
• Machinist
• Field Service Manager
0 Various CSI Vibration Courses
Elmer Cadenas, Second Shift Foreman:
0 16 years in motor business
0 Positions held:
• A/C and D/C Mechanic
• Balancer
• Service Manager
• QA Tester
• Trainer
• Weekend Supervisor
2
Pump Rebuild Trainer
Various Pump Factory Training Programs
Jim Frassett, Major Account Manager
30 years in motor business
Positions held:
• Senior Sales Engineer
• West Coast Sales Manager
• Account Manager
Various Pump Training Programs & Reed Training
John Richard. President:
— -- —' - -- ° 11 — arsjnlhefiek
a Positions held:
• Gofer
• Steam cleaner
• Expediter
• Mechanic
• Machinist
• Field Sales
• Buyer
• Service Manager
• Controller,
• General Manager
• A.S. Mechanical Technician
• CSI Vibration Courses
• EASA School
• IRD Training
• Baldor Courses
• Emerson School
Oscar Perez. Service Manaaer
5 years in the field
a Positions held:
• Accounts Payable Manager
• Mechanic
• Field Sales
• Expediter
a Various Reed Schools
Mel Dawson. Technical Service Manager
a 31 years in the field
a Service Coordinator:
• U.S. Motors Factory
• Emerson Service
• Lucas Aerospace
• Plant Foreman
• Expediter
• Outside Sales
Ed Kramer, Buyer:
37 years in the motor business
o Positions:
• Service Manager
• Sales Manager
• General Manager
• Emerson School
• EASA Application Schools
Other Plant Key Technicians:
• Manuel Ochoa, head D/C mechanic:
o 22 years in the field
• Raul Hernandez, winder foreman:
o 17 years in the field
0 16 years in the field
o EASA Application Schools
r {
—� l/ -LgwjGE4
5503 S.Boyle Avenue `Los Angeles, CA 90058
Telephone: 323. 587- 2284' Fax: 323 -587 -2128
E -mail: Service @Reed- Electdc.com
SHOP LABOR RATE SCHEDULE
Mechanic $65.00/HR
Machine Work $75.00/HR
Balancing
$80.00/HR
Winding
$60.00/HR
Expediting
$50.00/HR
Overtime Multipliers: Saturday 12:00 AM -11:59 PM = Above x 1.25
Sunday & Holidays 12:00 AM -11:59 PM = Above x 1.50
Note: No overtime charge for Monday (12:00 AM) thru Friday (11:59 PM)
work due to regular 3 Shift (24 hour) operation during this time period.
FIELD REPAIRS
LASER ALIGNMENT
FIELD BALANCING
SERVICE CALL LABOR RATE
STRAIGHT TIME
$ 95.00 per hour
$ 95.00 per hour
$ 95.00 per hour
OVERTIME
$118.75 per hour
$118.75 per hour
$118.75 per hour
DOUBLE TIME
$142.50 per hour
$142.50 per hour
$142.50 per hour
VIBRATION TROUBLE SHOOTING $ 95.00 per hour $118.75 per hour $142.50 per hour
SERVICE CALL OVERTIME:
3:30PM— 11:00PM, or any crew beyond 8hrs in a day, or Saturday.
11:00PM — 7:00AM, or any crew beyond 12hrs in a day, or Sunday/Holiday.
Note: Above rates are portal to portal. 4hr. minimum callout.
TERMS AND CONDITIONS
WARRANTY:
1. Any apparatus accepted by R.A. Reed Electric for complete rebuilding and rewinding , such as may be required in the
judgment of R.A. Reed Electric in order to put the apparatus in good working order, will be guaranteed for a period as long as
the original guarantee by the manufacturer on the labor and materials only, not exceeding one year duration. Provided,
however, that such guarantee by R.A. Reed Electric shall be void unless such apparatus is operated with competent
supervision under normal load, usage and conditions.
2. Any apparatus accepted by R.A. Reed Electric for less than complete repairs, or for the repair or replacement of specific
parts or malfunctions only, will be guaranteed as to labor and materials only, for a period as long as the original guarantee by
the manufacturer, but each guarantee shall extend only to such repairs and parts. Provided, however that such a guarantee by
R.A. Reed Electric shall be void unless such apparatus is operated with competent supervision under normal load, usage and
conditions.
3. The foregoing warranties will not apply to defects, occurring within the warranty period, resulting from the misuse by
customer of from improper installation, application, circuit protection, assembly or repair of the apparatus performed by others
subsequent to the repair, rebuilding, rewinding or reconditioning by R.A. Reed Electric. The liability of R.A. Reed Electric shall
be limited to the furnishing of parts and labor for such repair, rebuilding, rewinding or reconditioning, at the place of business of
R.A. Reed Electric during regular business hours. Transportation of the apparatus, if required, will be paid for by the customer.
4. R.A. Reed Electric shall comply with the Fair Labor Standards Act , the Equal Opportunity Clause quoted in Section 202 of
Executive Order No. 11246 and shall upon request, furnish to Buyer a certificate to such effect.
5. R.A. Reed Electric hereby disclaims any and all others express or implied warranties, except as set forth herein, including,
without limitation, all implied warranties of merchantability or fitness for the purpose intended, any warranty that the apparatus
as repaired comply with the standards of O.S.H.A., and warranties against latent defects, pertaining to such repairs or parts.
The foregoing obligation to repair or replace parts shall be the sole and exclusive remedy of the customer, agents, or
employees or users of any such apparatus or parts for the breach of any warranty specified herein. R.A. Reed Electric shall
have no obligation to repair or replace parts unless written notice is delivered to R.A. Reed Electric at this office in Reno,
Nevada, within the above mentioned warranty period.
6. Except as specified in the foregoing paragraphs entitled °WARRANTY" R.A. Reed Electric shall have no obligation or
liability whatsoever to the customer, including, without limitation, any claims for consequential damages or labor costs, by
reason of any breach of the express warranty described herein. The purchaser further hereby agrees to indemnify and hold the
Company harmless from and against all loses, damages, obligation, liabilities, suits and causes of action (other than the cost of
repairing the apparatus as specified in the foregoing paragraph) arising directly or indirectly from the acts, omissions, or
negligence of the customer, its agents or employees, in connection with or 'arising out of the testing, use, operation,
replacement or repair of any apparatus.
7. R.A. Reed Electric shall not be responsible for unavoidable delay in delivery schedule caused by acts of God, strikes,
inability to obtain material or parts, accidents, or other causes beyond our control.
... WAIT
• • gj7�-G
ON -CALL REPAIR SERVICES AGREEMENT WITH
R. A. REED ELECTRIC COMPANY FOR
REPAIR OF ELECTRIC MOTORS FOR WATER WELLS AND PUMPS
THIS AGREEMENT is made and entered into as of this 11th day of August, 2009, by
and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"), and R. A.
REED ELECTRIC COMPANY, a California Corporation, whose address is 5503 S. Boyle
Avenue, Los Angeles, California 90058 ( "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 repair of electric motors that drive the wells and booster
pumps.
C. City desires to engage Contractor to perform on -call repair of electric motors ranging
from 30 horsepower to 400 horsepower on an as need basis ( "Project").
D. Contractor possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Contractor for purposes of Project shall be Robert
Martinez.
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 Nreement shall commence on the above written date, and shall
terminate on the 30 day of June, 2010, unless terminated earlier asset forth herein.
2. SERVICES TO BE PERFORMED
Contractor shall provide "On -Call" repair services of electric motors for water wells
and pumps as described in the Statement of Qualifications attached as Exhibit "A."
Upon verbal or written request from the Project Administrator, Contractor shall
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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 estimated number of hours and cost to complete the services;
(c) 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.
No rate changes shall be made during the term of this Agreement without the prior
written approval of the City. Contractors 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
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Repair /Maintenance Service Agreement approved by the City in accordance with
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. 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 Robert Martinez to be its
Project Manager. Contractor warrants that it will continuously furnish the necessary
personnel to complete the Project on a timely basis as contemplated by this
Agreement.
6. ADMINISTRATION
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• s
This Agreement will be administered by the Utilities Department. Kent Russell 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.
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. 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
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promptly, or delay or faulty performance by City, contractors, or governmental
agencies.
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 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, 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.
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11. COOPERATION
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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 Contractors 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.
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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 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 one million
dollars ($1,000,000) 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.
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.
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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 orjoint- venture.
16. 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
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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.
17. SUBCONTRACTING
City and Contractor agree that subcontractors may be used to complete the work
outlined in the Scope of Services. Contractor shall be fully responsible to City for all
acts and omissions of the subcontractor. Nothing in this Agreement shall create any
contractual relationship between City and subcontractor nor shall it create any
obligation on the part of City to pay or to see to the payment of any monies due to
any such subcontractor other than as otherwise required by law. The City is an
intended beneficiary of any work performed by the subcontractor for purposes of
establishing a duty of care between the subcontractor and the City. Except as
specifically authorized herein, the services to be provided under this Agreement
shall not be otherwise assigned, transferred, contracted or subcontracted out
without the prior written approval of City.
18. 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.
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19. 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.
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. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS
City reserves the right to employ other Contractors in connection with the Project.
23. 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
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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.
24. 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:
Kent Russell
City of Newport Beach, Utilities Department
3300 Newport Boulevard
Newport Beach, CA, 92658 -8915
Phone: 949 - 644 -3010
Fax: 949 - 646 -5204
All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
John Richard R °fir yaRTiNEZ
R. A. Reed Electric Company AqA__
5503 Boyle Avenue
Los Angeles, CA 90058
Phone: (323) 587 -2284
Fax: (323) 587 -2128
25. 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
11
0 0
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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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.
31. 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.
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• 0
32. 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.
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.
35. WARRANTY
Contractor agrees that any apparatus accepted for complete rebuilding and
rewinding, such as may be required in the judgment of contractor in order to put the
apparatus in good working order, will be guaranteed for a period as long as the
original guarantee by the manufacturer on the labor and materials only, not
exceeding one year duration. Provided, however, that such guarantee by contractor
shall be void unless such apparatus is operated with competent supervision under
normal load, usage and conditions as outlined in the Warranty Information, attached
hereto as Exhibit C and incorporated in full by this reference.
13
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 CITY ATTORNEY:
By: X4��
MyrAtte . Beauc m ,
Assistant City Attorney
ATTEST:
By: � /�,WM K,
Leilani Brown,
City Clerk NF-',
O
� L10 R N�
CITY OF f�EWPORT
A Muni al C por;
By: 4
Ed and Selich,
Mayor
CONTRACTOR:
R. A. REED ELECTRIC COMPANY:
By: —1
(Corporate Officer)
Title: President
Print Name: John Richard
B \'�\
By:
(Financial Off i er)
Title: Controller
Print Name: Alex Wong
Attachments: Exhibit A – Statement of Qualifications
Exhibit B - Schedule of Billing Rates
Exhibit C – Warranty Information
14
• MUM'
WLE E op F 0LTSE Fit VICE
5503 S.Boyle Avenue' Los Angeles, CA 90058
Telephone: 323 -587 -2284 * Fax: 323 - 587 -2128
E -mail: Service@Reed- Electric.com
Statement of Qualifications
With an 80 -year history, Reed Electric offers you a team of professional experienced personnel. You will be
dealing with an established company that has the proper equipment and experience to produce the quality
work you desire.
Reed has long -term experience in many market places, including:
Paper * Chemical * Heavy Manufacturing * Utility & Cogeneration * Sanitation & Water Districts
Refineries * Studios * Cement Manufacturing * Elevator Service * Steel * Food
Repairs:
➢ Experienced in the repairs of all types and brands of motors and generators, both AC and DC.
➢ An authorized U.L. plant for the rebuilds of explosion -proof motors
➢ Repair of transformer up to 10 MVA.
➢ Rebuild all types of driven equipment including fans, pumps, blowers, gearboxes and magnetic
drives, allowing single source warranty and responsibility.
➢ Complete machine shop in house with skilled machinist and welders on duty. Equipment
includes a 72" Vertical Boring Mill and 106" Swing Lathe.
➢ Computerized balancing, capable of handling rotors up to 45001b and rotor swing diameter up
63 inches. Schenck Balancer Model # H5U hard bearing balancer
➢ 8Ft. ID Vacuum Pressure Impregnation (VPI) System. VPI process provides maximum
penetration of resin throughout the turns of individual coils.
➢ Reed Electric uses high temperature Class H (180 degrees) and Class R (210 degrees)
insulation, assuring you of long thermal life and inverter duty wire.
➢ Stringent testing procedures previous to and following all rebuilds.
➢ Testing performed on steel base.
Field Services:
➢ Field Repairs: On request, can provide full removal and reinstall. On -site turning and
undercutting of commutators, cleaning, and other minor electrical and mechanical repairs.
➢ Electrical Parameter Analysis: For predicting winding failures without removal of equipment,
Reed can perform surge, polarization index (PI), and Hi pot tests in the field. Full reports
included.
➢ Vibration Analysis: Training programs — Diagnostics. Including resonant tests, transient
analysis, and startupicoastdown analysis.
➢ Field Laser Alignment: Using laser alignment technology with muki -plane and multi-speed
capability. Reports include graphical summary, including corrections and tolerances. Motor
thermal growth included, if requested.
➢ Field Balancing: Dynamic, multi -plane field balancing available.
➢ Warranty Certification. Verify specification standards for new equipment performance. Studies
show that nearly 10% of new parts have defects or flaws. By detecting problems immediately,
warranty is protected and flaws do not shorten normal life expectancy.
0
New Motor and Equipment Sales:
➢ Motors AC & DC up to 12500HP
➢ Generators
➢ Transformers
➢ Pumps
➢ Submersibles
➢ Gearboxes
➢ Clutches
➢ Brakes
➢ Electronic Drives
➢ Lifting Magnets
➢ Blowers
Varidrives
➢ VDF's
Master Stocking Distributor & Authorized Manufacturer Warranty:
➢
US Motors
➢
Teco
➢
Toshiba
Emerson
➢
Baldor
➢
Reliance
➢
GE
Siemens
➢
Hitachi
➢
Weg
➢
Leeson
➢
A.O.Smith
➢
Lincoln
➢
Bell & Gossett
Key Personnel:
Robert Martinez. Plant Manager and Laser Align Specialist
• 20 years in motor business
• Positions in the business:
• Machine Shop Foreman
• Machinist
• Field Service Manager
Various CSI Vibration Courses
4 T 7irI1i1{7�i -
•
16 years in motor business
• Positions held:
• A/C and D1C Mechanic
• Balancer
• Service Manager
• QA Tester
• Trainer
• Weekend Supervisor
2
0
• Pump Rebuild Trainer
• Various Pump Factory Training Programs
Jim Frassett, Major Account Manager
• 30 years in motor business
• Positions held:
• Senior Sales Engineer
• West Coast Sales Manager
• Account Manager
• Various Pump Training Programs & Reed Training
John Richard. President:
• 31 years in the field
• Positions held:
• Gofer
• Steam cleaner
• Expediter
• Mechanic
• Machinist
o Field Sales
• Buyer
• Service Manager
• Controller
• General Manager
• A.S. Mechanical Technician
• CSI Vibration Courses
• EASA School
• IRD Training
• Baldor Courses
• Emerson School
Oscar Perez. Service Manaaer.
5 years in the field
• Positions held:
• Accounts Payable Manager
• Mechanic
• Field Sales
• Expediter
• Various Reed Schools
Mel Dawson, Technical Service Manager:
• 31 years in the field
• Service Coordinator:
• U.S. Motors Factory
• Emerson Service
• Lucas Aerospace
• Plant Foreman
• Expediter
• Outside Sales
Ed Kramer, Buver:
• 37 years in the motor business
ftd
0
0
• Positrons:
• Service Manager
• Sales Manager
• General Manager
• Emerson School
• EASA Application Schools
Other Plant Key Technicians:
• Manuel Ochoa, head D/C mechanic:
o 22 years in the field
• Raul Hernandez, winder foreman:
o 17 years in the field
• Ernest Baqueiro, head A/C mechanic:
0 16 years in the field
o EASA Application Schools
0
0 EXHIBIT "B"
Ct E E 00 F I E STS RVICE
5503 S.Boyle Avenue * Los Angeles, CA 90058
Telephone: 323- 587 -2284 * Fax: 323 -587 -2128
E -mail: Service@Reed- Eleclric.com
SHOP LABOR RATE SCHEDULE
Mechanic
$65.00/HR
Machine Work
$75.00/HR
Balancing
$80.00/HR
Winding
$60.00/14t
Expediting
$50.00/HR
Overtime Multipliers: Saturday 12:00 AM -11:59 PM = Above x 1.25
Sunday & Holidays 12:00 AM -11:59 PM = Above x 1.50
Note: No overtime charge for Monday (12:00 AM) thru Friday (11:59 PM)
work due to regular 3 Shift (24 hour) operation during this time period.
FIELD REPAIRS
LASER ALIGNMENT
SERVICE CALL LABOR RATE
STRAIGHT TIME
$ 95.00 per hour
$ 95.00 per hour
OVERTIME
$118.75 per hour
$118.75 per hour
DOUBLE TIME
$142.50 per hour
$142.50 per hour
FIELD BALANCING $ 95.00 per hour $118.75 per hour $142.50 per hour
VIBRATION TROUBLE SHOOTING $ 95.00 per hour $118.75 per hour $142.50 per hour
SERVICE CALL OVERTIME:
3:30PM — 11:OOPM, or any crew beyond 8hrs in a day, or Saturday.
11:00PM — 7:OOAM, or any crew beyond 12hrs in a day, or Sunday/Holiday.
Note: Above rates are portal to portal. 4hr. minimum callout.
• • EXHIBIT "C"
I►� E E D F I EL.UTS RVICE
TERMS AND CONDITIONS
WARRANTY:
1. Any apparatus accepted by R.A. Reed Electric for complete rebuilding and rewinding , such as may be required in the
judgment of R.A. Reed Electric in order to put the apparatus in good working order, will be guaranteed for a period as long as
the original guarantee by the manufacturer on the labor and materials only, not exceeding one year duration. Provided,
however, that such guarantee by R.A. Reed Electric shall be void unless such apparatus is operated with competent
supervision under normal load, usage and conditions.
2. Any apparatus accepted by R.A. Reed Electric for less than complete repairs, or for the repair or replacement of specific
parts or malfunctions only, will be guaranteed as to labor and materials only, for a period as long as the original guarantee by
the manufacturer, but each guarantee shall extend only to such repairs and parts. Provided, however that such a guarantee by
R.A. Reed Electric shall be void unless such apparatus is operated with competent supervision under normal load, usage and
conditions.
3. The foregoing warranties will not apply to defects, occurring within the warranty period, resulting from the misuse by
customer of from improper installation, application, circuit protection, assembly or repair of the apparatus performed by others
subsequent to the repair, rebuilding, rewinding or reconditioning by R.A. Reed Electric. The liability of R.A. Reed Electric shall
be limited to the furnishing of parts and labor for such repair, rebuilding, rewinding or reconditioning, at the place of business of
R.A. Reed Electric during regular business hours. Transportation of the apparatus, if required, will be paid for by the customer.
4. R.A. Reed Electric shall comply with the Fair Labor Standards Act, the Equal Opportunity Clause quoted in Section 202 of
Executive Order No. 11246 and shall upon request, furnish to Buyer a certificate to such effect.
5. R.A. Reed Electric hereby disclaims any and all others express or implied warranties, except as set forth herein, including,
without limitation, all implied warranties of merchantability or fitness for the purpose intended, any warranty that the apparatus
as repaired comply with the standards of O.S.H.A., and warranties against latent defects, pertaining to such repairs or parts.
The foregoing obligation to repair or replace parts shall be the sole and exclusive remedy of the customer, agents, or
employees or users of any such apparatus or parts for the breach of any warranty specified herein. R.A. Reed Electric shall
have no obligation to repair or replace parts unless written notice is delivered to R.A. Reed Electric at this office in Reno,
Nevada, within the above mentioned warranty period.
6. Except as specified in the foregoing paragraphs entitled 'WARRANTY" R.A. Reed Electric shall have no obligation or
liability whatsoever to the customer, including, without limitation, any claims for consequential damages or labor costs, by
reason of any breach of the express warranty described herein. The purchaser further hereby agrees to indemnify and hold the
Company harmless from and against all loses, damages, obligation, liabilities, suits and causes of action (other than the cost of
repairing the apparatus as specified in the foregoing paragraph) arising directly or indirectly from the acts, omissions, or
negligence of the customer, its agents or employees, in connection with or arising out of the testing, use, operation,
replacement or repair of any apparatus.
7. R.A. Reed Electric shall not be responsible for unavoidable delay in delivery schedule caused by acts of God, strikes,
inability to obtain material or parts, accidents, or other causes beyond our control.
ro
1
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 14
August 11, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Cindy Asher, Administrative Manager
949 - 644 -3010 or casher newportbeachca.gov
SUBJECT: APPROVAL OF ON -CALL REPAIR SERVICES AGREEMENT WITH R.
A. REED ELECTRIC COMPANY, INC. FOR REPAIR OF ELECTRIC
MOTORS FOR WATER WELLS AND PUMP STATIONS
RECOMMENDATION:
Approve an On -Call Repair Services Agreement with R. A. Reed Electric Company for
repair of motors for water wells, booster pumps and pump stations and authorize the
Mayor and City Clerk to execute the Agreement.
DISCUSSION:
Background
On -call agreements allow staff to quickly access specialized services that are regularly
required for various repairs of motors for the City's water wells, booster pumps, and
pump stations.
The City's groundwater wells, booster pumps and sewer pump stations provide the
primary source of water and sewer collection system to our residents, businesses, and
visitors. The City has a comprehensive maintenance program to maintain our
groundwater wells, booster pumps and sewer lift stations; however, there are occasions
when unexpected failures occur. There are only a few companies within Southern
California that can perform this kind of work and have proven to provide quality work in
this field.
R. A. Reed Electric Company (RAREC) has 80 years of experience in selling and
rebuilding electric motors. Some of the services they provide are: onsite computerized
balancing, double -laser alignment, remove and re- install, electrical troubleshooting,
pressure cleaning, basic vibration analysis and sleeve bearing replacement. RAREC
provides quick response and reliable electric motor repair services, which is important
R. A. Reed Electric Company
Approval of On -Call Repair Services Agreement
August 11, 2009
Page 2
for keeping the groundwater wells, pumps and pump stations operating for the water
supply and sewer collection to the City. Staff has used the services of RAREC on a
purchase order basis for over 10 years and would like to set up an on -call agreement
with them. The proposed On -Call Repair Services Agreement would be effective for a
one year period through June 30, 2010.
Environmental Review:
This action requires no environmental review, as it is not a project pursuant to CEQA.
Fundinq Availability_
Funding is available in the Wells & Pump Station Maintenance Account — 5500 -8156
and Repair & Maintenance 5600 -8160.
Prepared by:
Submitted by:
P"t-;4, a4M�)j
Cindy Asher,° Administrative Manager eo e Murdoch, Utilities Director
Attachments: On -Call Repair Services Agreement
ON -CALL REPAIR SERVICES AGREEMENT WITH
R. A. REED ELECTRIC COMPANY FOR
REPAIR OF ELECTRIC MOTORS FOR WATER WELLS AND PUMPS
THIS AGREEMENT is made and entered into as of this 11th day of August, 2009, by
and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and R. A.
REED ELECTRIC COMPANY, a California Corporation, whose address is 5503 S. Boyle
Avenue, Los Angeles, California 90058 ( "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 repair of electric motors that drive the wells and booster
pumps.
C. City desires to engage Contractor to perform on -call repair of electric motors ranging
from 30 horsepower to 400 horsepower on an as need basis ( "Project ").
D. Contractor possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Contractor for purposes of Project shall be Robert
Martinez.
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 30t day of June, 2010, unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
Contractor shall provide "On -Call" repair services of electric motors for water wells
and pumps 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 estimated number of hours and cost to complete the services;
(c) 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.
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
2
Repair /Maintenance Service Agreement approved by the City in accordance with
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. 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 Robert Martinez to be its
Project Manager. Contractor warrants that it will continuously furnish the necessary
personnel to complete the Project on a timely basis as contemplated by this
Agreement.
6. ADMINISTRATION
3
This Agreement will be administered by the Utilities Department. Kent Russell 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.
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. 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
M
promptly, or delay or faulty performance by City, contractors, or governmental
agencies.
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 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, 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.
61
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'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.
[01
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 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 one million
dollars ($1,000,000) 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.
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.
7
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.
16. 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.
17. SUBCONTRACTING
City and Contractor agree that subcontractors may be used to complete the work
outlined in the Scope of Services. Contractor shall be fully responsible to City for all
acts and omissions of the subcontractor. Nothing in this Agreement shall create any
contractual relationship between City and subcontractor nor shall it create any
obligation on the part of City to pay or to see to the payment of any monies due to
any such subcontractor other than as otherwise required by law. The City is an
intended beneficiary of any work performed by the subcontractor for purposes of
establishing a duty of care between the subcontractor and the City. Except as
specifically authorized herein, the services to be provided under this Agreement
shall not be otherwise assigned, transferred, contracted or subcontracted out
without the prior written approval of City.
18. 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.
p
19. 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.
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. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS
City reserves the right to employ other Contractors in connection with the Project.
23. 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
10
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.
24. 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:
Kent Russell
City of Newport Beach, Utilities Department
3300 Newport Boulevard
Newport Beach, CA, 92658 -8915
Phone: 949 - 644 -3010
Fax: 949 - 646 -5204
All notices, demands, requests or approvals from City to Contractor shall be
addressed to Contractor at:
John Richard
R. A. Reed Electric Company
5503 Boyle Avenue
Los Angeles, CA 90058
Phone: (323) 587 -2284
Fax: (323) 587 -2128
25. 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
11
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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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.
31. 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.
12
32. 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.
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.
,� ►
Contractor agrees that any apparatus accepted for complete rebuilding and
rewinding, such as may be required in the judgment of contractor in order to put the
apparatus in good working order, will be guaranteed for a period as long as the
original guarantee by the manufacturer on the labor and materials only, not
exceeding one year duration. Provided, however, that such guarantee by contractor
shall be void unless such apparatus is operated with competent supervision under
normal load, usage and conditions as outlined in the Warranty Information, attached
hereto as Exhibit C and incorporated in full by this reference.
13
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 CITY ATTORNEY:
By: _
My tte . c q Beau a p,
Assistant City Attorney
ATTEST:
Leilani Brown,
City Clerk
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
Edward Selich,
Mayor
CONTRACTOR:
R. A. REED ELECTRIC COMPANY:
(Corporate Officer)
Title: President
Print Name: John Richard
(Financial Officer)
Title: Controller
Print Name: Alex Wona
Attachments: Exhibit A — Statement of Qualifications
Exhibit B - Schedule of Billing Rates
Exhibit C — Warranty Information
14
u t�
EXHIBIT
E E F I ELIDTSERVICFEE
5503 S.Boyle Avenue * Los Angeles, CA 90058
Telephone: 323- 587 -2284 * Fax: 323 -587 -2128
E -mail: Service @Reed- Electdc.com
Statement of Qualifications
With an 80 -year history, Reed Electric offers you a team of professional experienced personnel. You will be
dealing with an established company that has the proper equipment and experience to produce the quality
work you desire.
Reed has long -term experience in many market places, including:
Paper * Chemical * Heavy Manufacturing * Utility & Cogeneration * Sanitation & Water Districts
Refineries * Studios * Cement Manufacturing * Elevator Service * Steel * Food
Repairs:
Experienced in the repairs of all types and brands of motors and generators, both AC and DC.
➢ An authorized U.L. plant for the rebuilds of explosion -proof motors
➢ Repair of transformer up to 10 MVA.
➢ Rebuild all types of driven equipment including fans, pumps, blowers, gearboxes and magnetic
drives, allowing single source warranty and responsibility.
➢ Complete machine shop in house with skilled machinist and welders on duty. 'Equipment
includes a 72" Vertical Boring Mill and 106" Swing Lathe.
➢ Computerized balancing, capable of handling rotors up to 45001b and rotor swing diameter up
63 inches. Schenck Balancer Model # H5U hard bearing balancer
➢ 8Ft. ID Vacuum Pressure Impregnation (VPI) System. VPI process provides maximum
penetration of resin throughout the turns of individual coils.
➢ Reed Electric uses high temperature Class H (180 degrees) and Class R (210 degrees)
insulation, assuring you of long thermal life and inverter duty wire.
➢ Stringent testing procedures previous to and following all rebuilds.
➢ Testing performed on steel base.
Field Services:
➢ Field Repairs: On request, can provide full removal and reinstall. On -site turning and
undercutting of commutators, cleaning, and other minor electrical and mechanical repairs.
➢ Electrical Parameter Analysis: For predicting winding failures without removal of equipment,
Reed can perform surge, polarization index (PI), and Hi pot tests in the field. Full reports
included.
➢ Vibration Analysis: Training programs — Diagnostics. Including resonant tests, transient
analysis, and startup /coastdown analysis.
➢ Field Laser Alignment: Using laser alignment technology with multi -plane and multi - speed
capability. Reports include graphical summary, including corrections and tolerances. Motor
thermal growth included, if requested.
➢ Field Balancing: Dynamic, multi -plane field balancing available.
➢ Warranty Certification. Verify specification standards for new equipment performance. Studies
show that nearly 10% of new parts have defects or flaws. By detecting problems immediately,
warranty is protected and flaws do not shorten normal life expectancy.
Now Motor and Equipment Sales:
➢
Motors AC & DC up to 12500HP
➢
Generators
➢
Transformers
➢
Pumps
➢
Submersibles
➢
Gearboxes
➢
Clutches
➢
Brakes
➢
Electronic Drives
➢
Lifting Magnets
— Mowers —-
Leeson
Vaddrives
A.O.Smith
VDF's
Master Stocking Distributor & Authorized Manufacturer Warranty
➢
US Motors
➢
Teco
➢
Toshiba
➢
Emerson
➢
Baldor
➢
Reliance
➢
GE
➢
Siemens
➢
Hitachi
➢
Weg
➢
Leeson
➢
A.O.Smith
➢
Lincoln
➢
Bell & Gossett
Key Personnel:
Robert Martinez, Plant Manager and Laser Alian Specialist:
• 20 years in motor business
• Positions in the business:
• Machine Shop Foreman
• Machinist
• Field Service Manager
• Various CSI Vibration Courses
Elmer_Cadenas, Second Shift Foreman:
• 16 years in motor business
• Positions held:
• A/C and D/C Mechanic
• Balancer
• Service Manager
• QA Tester
• Trainer
• Weekend Supervisor
P)
• Pump Rebuild Trainer
• Various Pump Factory Training Programs
Jim Frassett, Maior Account Manager
• 30 years in motor business
• Positions held:
• Senior Sales Engineer
• West Coast Sales Manager
• Account Manager
• Various Pump Training. Programs & Reed Training.
John Richard, President:
aes- n the field — • Positions held:
• Gofer
• Steam cleaner
• Expediter
• Mechanic
• Machinist
• Field Sales
• Buyer
• Service Manager
• Controller
• General Manager
• A.S. Mechanical Technician
• CSI Vibration Courses
• EASA School
• IRD Training
• Baldor Courses
• Emerson School
Oscar Perez, Service Manager:
• 5 years in the field
Positions held:
• Accounts Payable Manager
• Mechanic
• Field Sales
• Expediter
• Various Reed Schools
Mel Dawson, Technical Service Manaaer:
• 31 years in the field
• Service Coordinator.
• U.S. Motors Factory
• Emerson Service
• Lucas Aerospace
• Plant Foreman
• Expediter
• Outside Sales
Ed Kramer, Buyer:
• 37 years in the motor business
3
• Positions:
• Service Manager
• Sales Manager
• General Manager
• Emerson School
• EASA Application Schools
Outer Plant Key Technicians
• Manuel Ochoa, head D/C mechanic:
o 22 years in the field
• Raub Hernandez, winder foreman:
o 17 years in the field
art�c:
- -- -- - - - - --
0 16 years in the field:
o EASA Application Schools
r
C t- E a.= F I EL TS RVICE
5503 S.Boyle Avenue * Los Angeles, CA 90058
Telephone: 323 - 587 -2284 * Fax: 323 -587 -2128
E -mail: Service @Reed- Electdc.com
This rates are good thru June 30, 2010
SHOP LABOR RATE SCHEDULE
Mechanic $65.00/HR
Machine Work $75.00/HR
Balancing
$80.00/HR
Winding
$60.00/HR
Expediting
$50.004M
Overtime Multipliers: Saturday 12 :00 AM -11:59 PM = Above x 1.25
Sunday & Holidays 12:00 AM -11:59 PM = Above x 1.50
Note: No overtime charge for Monday (12:00 AM) thru Friday (11:59 PM)
work due to regular 3 Shift (24 hour) operation during this time period.
REED ELECTRIC offers free pick up and delivery II
I SERVICE CALL LABOR RATE
FIELD REPAIRS
LASER ALIGNMENT
STRAIGHT TIME
$ 95.00 per hour
$ 95.00 per hour
OVERTIME
$118.75 per hour
$118.75 per hour
DOUBLE TIME
$142.50 per hour
$142.50 per hour
FIELD BALANCING $ 95.00 per hour $118.75 per hour $142.50 per hour
VIBRATION TROUBLE SHOOTING $ 95.00 per hour $118.75 per hour $142.50 per hour
SERVICE CALL OVERTIME:
3:30PM — 11:OOPM, or any crew beyond 8hrs in a day, or Saturday.
11:00PM — 7:OOAM, or any crew beyond 12hrs in a day, or Sunday/11oliday.
Note: Above rates are portal to portal. 4hr. minimum callout.
EXHIBIT "C°
I. zt-_
�E E r� F EL TS RVICE
TERMS AND CONDITIONS
WARRANTY:
1. Any apparatus accepted by R.A. Reed Electric for complete rebuilding and rewinding , such as may be required in the
judgment of R.A. Reed Electric in order to put the apparatus in good working order, will be guaranteed for a period as long as
the original guarantee by the manufacturer on the labor and materials only, not exceeding one year duration. Provided,
however, that such guarantee by R.A. Reed Electric shall be void unless such apparatus is operated with competent
supervision under normal load, usage and conditions.
2. Any apparatus accepted by R.A. Reed Electric for less than complete repairs, or for the repair or replacement of specific
parts or malfunctions only, will be guaranteed as to labor and materials only, for a period as long as the original guarantee by
the manufacturer, but each guarantee shall extend only to such repairs and parts. Provided, however that such a guarantee by
R.A. Reed Electric shall be void unless such apparatus is operated with competent supervision under normal load, usage and
conditions.
3. The foregoing warranties will not apply to defects, occurring within the warranty period, resulting from the misuse by
customer of from improper installation, application, circuit protection, assembly or repair of the apparatus performed by others
subsequent to the repair, rebuilding, rewinding or reconditioning by R.A. Reed Electric. The liability of R.A. Reed Electric shall
be limited to the furnishing of parts and labor for such repair, rebuilding, rewinding or reconditioning, at the place of business of
R.A. Reed Electric during regular business hours. Transportation of the apparatus, if required, will be paid for by the customer.
4. R.A. Reed Electric shall comply with the Fair Labor Standards Act, the Equal Opportunity Clause quoted in Section 202 of
Executive Order No. 11246 and shall upon request, furnish to Buyer a certificate to such effect.
5. R.A. Reed Electric hereby disclaims any and all others express or implied warranties, except as set forth herein, including,
without limitation, all implied warranties of merchantability or fitness for the purpose intended, any warranty that the apparatus
as repaired comply with the standards of O.S.H.A., and warranties against latent defects, pertaining to such repairs or parts.
The foregoing obligation to repair or replace parts shall be the sole and exclusive remedy of the customer, agents, or
employees or users of any such apparatus or parts for the breach of any warranty specified herein. R.A. Reed Electric shall
have no obligation to repair or replace parts unless written notice is delivered to R.A. Reed Electric at this office in Reno,
Nevada, within the above mentioned warranty period.
6. Except as specified in the foregoing paragraphs entitled "WARRANTY" R.A. Reed Electric shall have no obligation or
liability whatsoever to the customer, including, without limitation, any claims for consequential damages or labor costs, by
reason of any breach of the express warranty described herein. The purchaser further hereby agrees to indemnify and hold the
Company harmless from and against all loses, damages, obligation, liabilities, suits and causes of action (other than the cost of
repairing the apparatus as specified in the foregoing paragraph) arising directly or indirectly from the acts, omissions, or
negligence of the customer, its agents or employees, in connection with or arising out of the testing, use, operation,
replacement or repair of any apparatus.
7. R.A. Reed Electric shall not be responsible for unavoidable delay in delivery schedule caused by acts of God, strikes,
inability to obtain material or parts, accidents, or other causes beyond our control.
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