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Resolution No. 77912 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 a's 25 26 27 28 RESOLUTION NO. 7791 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A MAINTENANCE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND LITTLEJOHN-REULAND CORPORATION FOR MACHINERY AT THE VERNON POWER PLANT WHEREAS, the City of Vernon ("Vernon") owns and operates its own electric generation and distribution system for use by its inhabitants; and WHEREAS, Vernon is in the process of developing a Combined Cycle Power Plant to increase the generation capacity of its electric system in order to meet the City's energy needs; and WHEREAS, due to the high demand to.be placed on the diesel units and in order to keep the units running without interruption for repairs, Vernon's Utilities Department needs the services of a vendor to perform electrical preventative maintenance and equipment repair on machinery at the Vernon Power Plant; and WHEREAS, Littlejohn-Reuland Corporation ("Littlejohn") submitted a proposal to Vernon dated May 30, 2001; and WHEREAS, Vernon's Utilities Department advises that Littlejohn is the only local vendor that can provide the preventative maintenance and repair services that meet the Department's specifications and requirements; and WHEREAS, on June 18, 2001, the Finance Committee recommended that the City Council approve the recommendation of Bruce V. Malkenhorst, the Director of Finance, dated June 14, 2001, that the services of Littlejohn be retained to provide electrical preventative maintenance on the machinery at the Vernon Power Plant at an annual 1 cost not to exceed Fifty Thousand Dollars and No Cents($50,000.00); and 2 WHEREAS, the City Council of the City of Vernon has 3 determined that, pursuant to the provisions of Subsection (a) of 4 Section 2.27 of the Vernon City Code, it is in the public interest and 5 necessity to enter into an agreement with Littlejohn for electrical 6 preventative maintenance of machinery at the Vernon Power Plant. 7 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 8 CITY OF VERNON AS FOLLOWS: 9 SECTION 1: The City Council of the City of Vernon hereby 10 finds and determines that the recitals contained hereinabove are true 11 and correct. 12 SECTION 2: The City Council of the City of Vernon hereby 13 approves the Maintenance Agreement with Littlejohn, a copy of which 14 has been presented to the City Council concurrently with this 15 resolution, and the City Council hereby orders said Agreement to be 16 received and filed by the City Clerk. 17 SECTION 3: The City Council of the City of Vernon hereby 18 authorizes the Mayor and the City Clerk to execute said Agreement for, 19 and on behalf of, the City of Vernon. 20 SECTION 4: The City Council of the City of Vernon hereby 21 directs the City Clerk, or his designee, to send one fully executed 22 Agreement to: 23 Littlejohn-Reuland Corporation Attn: Rick Pena, President 24 4575 Pacific Blvd. 25 Los Angeles, CA 90058 26 27 28 2 - 1 � � e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 20th day of June, 2001. ATTEST: X<�' ;"'4� - - BRUCE V. MALKENHORST, City Clerk LEONIS C. MALB RG, Ma r - 3 - 4 R 1 STATE OF CALIFORNIA ) 2 ) ss COUNTY OF LOS ANGELES ) 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do 5 hereby certify that the foregoing Resolution, being Resolution No. 6 7791, was duly adopted by the City Council of the City of Vernon at a 7 regular meeting of the City Council duly held on Wednesday, June 20, 8 2001, and thereafter was duly signed by the Mayor of the City of 9 Vernon. 10 11 BRUCE V. MALKENHORST, City Clerk 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 - EXHIBIT 0 1 2 3 .4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 271 28 MAINTENANCE AGREEMENT THIS AGREEMENT is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes, as of this day of June, 2001, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as the "City") 4305 Santa Fe Avenue Vernon, CA 90058 AND LITTLEJOHN-REULAND CORPORATION (hereinafter referred to as "Littlejohn") 4575 Pacific Boulevard Los Angeles, CA 90058 RECITALS WHEREAS, due to the high demand to be placed on the diesel units, the City's Utilities Department requires the services of a vendor to perform preventative maintenance and repair services in order to keep the units running without interruption; and WHEREAS, Littlejohn submitted a proposal to the City dated May 30, 2001 (the "Proposal") that includes a description of proposed services and a cost estimate for maintenance and repair services; and WHEREAS, Littlejohn represents that it is qualified to perform such services and is willing to render such maintenance and repair services as hereinafter defined; and WHEREAS, the City desires toengagethe services of Littlejohn for maintenance and repair services on the machinery at the Vernon Power Plant. 1 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 2 FORTH HEREIN: 3 1. SCOPE OF SERVICES. 4 Littlejohn shall perform the services outlined in the 5 Proposal, a copy of which is attached hereto as Exhibit "A" and 6 incorporated herein by reference. It is understood and agreed that in 7 the event of a conflict between the Proposal and this Agreement, the 8 terms of this Agreement shall prevail. 9 2. PROGRESS REPORTS. 10 Littlejohn shall,meet with City staff, upon City's request, 11 or as needed, in order to provide reports or information concerning 12 the services being performed by Littlejohn under this Agreement. 13 3. TIME OF PERFORMANCE. 14 Littlejohn's services shall commence on July 1, 2001 and 15 shall continue to June 30, 2002, unless the Agreement is terminated. 16 4. COMPENSATION. 17 A. The City will compensate Littlejohn for 18 maintenance and repair services pursuant to the Proposal. The total 19 annual amount to be paid to Littlejohn under this Agreement shall not 20 exceed an annual total of Fifty Thousand Dollars and No Cents 21 ($50, 000.00) . 22 B. Other Expenses. Other expenses not identified 23 in the Proposal may only be billed if advance written approval has 24 been obtained from the City Administrator. 25 5. METHOD OF PAYMENT. 261 Littlejohn shall submit within thirty (30) days after the 27 last day of any month in which services have been performed or costs 28 incurred hereunder an invoice to the City. Invoices shall contain an - 2 - 1 itemization of services rendered, directly related job expenses and 2 subcontract charges incurred by Littlejohn and for which compensation 3 is due. Littlejohn shall be responsible for paying any subcontractors 4 used in the performance of this Agreement. Subcontractors shall not 5 bill the City directly. 6 Payment of the invoice shall be made after acceptance and 7 approval by the City within thirty (30) days of receipt. The City's 8 approval of the invoice shall not be unreasonably withheld. 9 6. CHANGES AND EXTRA SERVICES. 10 The City reserves the right to request changes in the 11 services to be performed by Littlejohn. All such changes shall be 12 incorporated in written change orders executed by the City and 13 Littlejohn which shall specify the changes ordered and the adjustment 14 of compensation and completion time required thereof. 15 Any services added to the scope of this Agreement by a change 16 order shall be executed under all applicable conditions of this 17 Agreement. No claim for additional compensation or extension of time 18 shall be recognized unless contained in a duly executed change order. 19 7. PRODUCTS OF CONSULTING. 20 All documents, data, databases, studies, surveys, drawings, 21 maps, models, photographs and reports prepared by Littlejohn under 22 this Agreement shall be considered the property of the City. Such 23 documents and materials shall be delivered to the City by Littlejohn 24 as they are generated; however, Littlejohn may take and retain copies 25 of such documents and materials as desired. 26 8. Termination. This Agreement may be terminated by the 27 City without cause on ten (10) days written notice to Littlejohn. In 281 the event of such termination by the City, Littlejohn shall be - 3 - 1 entitled to only the compensation earned by it prior to the date of 2 the termination notice, plus compensation for necessary work performed 3 during the ten (10) day notice period and authorized in the 4 termination notice. 5 9. NOTICES. Notices to the parties, unless otherwise 6 requested in writing, shall be sent to: 7 City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST 8 CITY ADMINISTRATOR 9 4305 SANTA FE AVENUE VERNON, CA 90058-0805 10 Littlejohn: LITTLEJOHN-REULAND CORPORATION 11 ATTN: RICK PENA, PRESIDENT P.O. BOX 58487 12 LOS ANGELES, CA 90058 13 10. CONFIDENTIAL INFORMATION. 14 A. Access to Confidential Information. The City may 15 provide Littlejohn with, or allow Littlejohn access to, certain 16 information not available to the public concerning the City, or 17 businesses located in the City. The information may include company 18 information, taxes, sales, value of assets, or other such information. 19 All such information shall be known as "Confidential Information." 20 B. No Disclosure. Except as expressly permitted, 21 Littlejohn shall not disclose, permit the disclosure of, release, 22 disseminate, or transfer, whether orally or by any other means, any 23 part of such Confidential Information to any other person or entity, 24 whether corporate, governmental, or individual, without the express 25 prior written consent of an authorized representative of the City. 26 Littlejohn shall return any written Confidential Information and all 27 copies made of such items to the City upon the City's written request,' 28 but in any event not later than the date that Littlejohn has performed - 4 - 1 all services to be performed pursuant to this Agreement. Littlejohn 2 hereby agrees that such Confidential Information and any documents 3 provided may be used by Littlejohn only as authorized by the City. 4 Littlejohn shall take reasonable measures to avoid any disclosure of 5 any such Confidential Information to any unauthorized person. 6 C. Court Ordered Disclosure. Littlejohn shall 7 immediately notify the City of any court order or subpoena requiring 8 disclosure of Confidential Information, and shall cooperate with legal 9 counsel in the appeal or challenge of any -such order or subpoena. 10 Recipient may only disclose Confidential Information required to be 11 disclosed pursuant to court order or subpoena after legal counsel has 12 exhausted any lawful and timely appeal or challenge. 13 D. Remedies. In addition to any other remedies that 14 it may have at law or in equity, the City shall be entitled to a 15 temporary and permanent injunction by a court of competent 16 jurisdiction against any breach or threatened breach of the 17 Confidential Information provisions of this Agreement. Littlejohn 18 acknowledges that in case of such breach or threatened breach of said 19 provisions, the City would have no adequate remedy at law. 20 11. GENERAL PROVISIONS. 21 A. Independent Contractor. At all times during the 22 term of this Agreement, Littlejohn shall be an independent contractor 23 and shall not be an employee of the City. The City shall have the 24 right to control Littlejohn only insofar as the results of 25 Littlejohn's services rendered pursuant to this Agreement; however, 26 the City shall not have the right to control the means by which 27 Littlejohn accomplishes services rendered pursuant to the Agreement 28 except to the extent that such services involve the use of City - 5 - 1 property or Confidential Information. 2 B. Littlejohn Not Agent. Except as the City may 3 specify in writing, Littlejohn shall have no authority, express or 4 implied, to act on behalf of the City in any capacity whatsoever as an 5 agent. Littlejohn shall have no authority, expressed or implied, 6 pursuant to this Agreement to bind the City to any obligation 7 whatsoever. 8 C. Indemnification. Littlejohn shall indemnify, 9 defend, protect and hold the City and its officers, agents and 10 employees, free and harmless from and against any and all claims, 11 demands, losses, damages, liabilities, fines, charges, penalties, 12 orders, judgments and all costs and expenses incurred in connection 13 therewith, including reasonable attorney's fees and costs of defense 14 arising out of the negligent services performed under this Agreement, 15 except to the extent arising from or caused by the negligence or 16 willful misconduct of the City, its officers, agents or employees. 17 D. Insurance. Prior to commencing work hereunder, 18 Littlejohn shall provide the City with proof of insurance providing 19 and maintaining the coverages and endorsements set forth in the 20 Insurance Schedule attached hereto as Exhibit "B" and made a part 21 hereof by reference. Said proof of insurance shall also provide that 22 said policy or policies shall not be canceled or materially reduced in 23 coverage without giving at least thirty (30) days prior written notice 24 to the City. Littlejohn shall not permit a subcontractor or vendor to 25 perform work.on City premises unless and until a certificate of 26 insurance is obtained showing that such subcontractor or vendor has 27 worker's compensation coverage. 28 If Littlejohn employs subcontractors as part of the 1 services rendered, Littlejohn's protective coverage is required. 2 Littlejohn may include all subcontractors as insureds under its own 3 policy or shall furnish separate insurance for each subcontractor, 4 meeting the requirements set forth herein. 5 E. Governing Law. The validity, interpretation and 6 performance of this Agreement shall be controlled and construed under 7 the laws of the State of California. 8 F. Assignment and Subcontracting Prohibited. No 9 party to this Agreement may assign or subcontract any right or 10 obligation pursuant to this Agreement except with the express written 11 consent of the other party. Any other attempted or purported 12 assignment of any right or obligation pursuant to this Agreement shall 13 be void and of no effect. 14 G. Amendments. This Agreement may be modified or 15 amended only by a written document executed by both Littlejohn and the 16 City and approved as to form by the City Attorney. 17 H. Entire Agreement. This Agreement is the entire 18 agreement of the parties. Littlejohn represents that in entering into 19 this Agreement, it has not relied on any previous representations or 20 understandings of any kind or nature. 21 1. Benefit of Agreement. This Agreement shall bind 22 and benefit the parties hereto and their heirs, successors, and 23 permitted assigns. 24 J. Forum Selection. Any action brought relating to 25 this Agreement shall be brought and held exclusively in a State Court 26 in the County of Los Angeles, California. 27 K. Recitals. All recitals are incorporated by 28 reference. - 7 1 L. Waiver. Any waiver at any time by either party 2 of its rights with respect to a default under this Agreement, or with 3 respect to any other matters arising in connection with this 4 Agreement, shall not be deemed a waiver with respect to subsequent 5 default or other matter. 6 M. Force Majeure. Neither -Party shall be considered 7 in to be in default in any of its obligations under this Contract when 8 a failure of performance shall be due to an uncontrollable force. The 9 term "uncontrollable force" shall mean any cause beyond the control of 10 the party affected, including, but not restricted to, flood, 11 earthquake, storm, fire, lightening, epidemic, war, riot, civil 12 disturbance or disobedience, labor dispute, labor material shortage, 13 sabotage, federal, state, or municipal action, statute, ordinance, or 14 regulation, embargoes of the United States Government or any other 15 government, which by exercise of due diligence such party could not 16 reasonably have been expected to avoid and by exercise of due 17 diligence has been unable to overcome. Either party rendered unable 18 to fulfill any of its obligations under this Agreement by reason of an 19 uncontrollable force, shall give written notice within five (5) 20 Business Days of such fact to the other party and shall exercise due 21 diligence to remove such inability with all reasonable dispatch. 22 23 24 25 26 27 28 / / / 1 2 3 4 5 6 7'. 81I' 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by and through their authorized officers on the date, month and year first written above. ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: EDUARDO OLIVO, City Attorney CITY OF VERNON By: LEONIS C. MALBURG, Mayor LITTLEJOHN-REULA�NDD CORPORATION BY: Title: By: /ll Title: 6vio .5,ete.c"f�• EXHIBIT n Litt lejohn-Reuland �Corporation�1 Calif. Contractors Established 1926 License 4418-C10 4575 PACIFIC BOULEVARD • P.O. BOX 58487 • LOS ANGELES, CALIFORNIA 90058 TEL. 323/587-5255 • FAX. 323/581-8385 MOTORS AND CONTROL LARGESTOCK NEW AND REBUILT May 30, 2001 GUARANTEED MOTORS AND CONTROL WESTINGHOUSE DISTRIBUTION City of Vernon Department of Light & Power 4305 Santa Fe Avenue Vernon, CA 90058 REWINDING AND Attn: Mr. Manuel G. Garcia, Systems Manager REPAIRING OUR REPAIR SHOP IS COMPLETE 24-HOUR Re: Electrical Capabilities REPAIR SERVICE Dear Mr. Garcia, Littlejohn-Reuland Corporation has been in business since 1926, serving all industries and INDUSTRIAL is one of the largest electric motor rewind and repair facilities on the West Coast, offering POWER & LIGHT the most complete service. WIRING ENGINEERING STAFF ESTIMATORS AND ELECTRICIANS We operate 24 hours a day, 7 days a week, never closing, in order to provide the service AVAILABLE that is necessary for our customers to operate with the minimum downtime. Services We Provide 1. Electric Motor Repair: We pride ourselves on being capable of repairing any type unit, SERVICE DEPARTMENT including pumps, gear units, AC and DC motors, generators, spindle motors, router EXPERT ELECTRICIANS AND REPAIRMAN motors, variable frequency motors, etc. AVAILABLE UR 2. Machine ShM. Complete machine shop facilities on our premises, including dynamic HOURS PER balancing, metal spraying, welding, making new shafts, etc. EVERY DAY OFF THE YEAR 3. Troubleshooting: Outside service crew for electrical trouble -shooting and repair o electrical equipment at your, site. 4. Electrical Contracting;: A fully staffed electrical construction crew and engineering services are available for installation and connection of new and used equipment. Both large and small projects are welcome. 5. New Motor Sales: A large, complete stock of new electric motors, brakes and gear boxes. Distributors for Baldor, Lincoln, Sterling, Century and Reuland. Continued on page 2 City of Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 2 6. New Motor Controls: Motor starters, circuit breakers, relays, conduit, wire, fittings, controls and miscellaneous electrical parts. 7. Delivery and Pick un: All pick ups and deliveries for the City of Vernon will be free of charge. These services are available 24 hours a day, 7 days a week. We have (6) radio dispatched trucks to perform these services. 8. Warranty Service: We provide service and warranty repairs for most major motor manufacturers, including Baldor, Century, ABB, Lincoln, Sterling, U.S., etc. 9. Reportini services: Work and test reports can be furnished for all work which was performed along with the standard cause of failure reports. 10. Vibration Anal Mechanical vibration analysis for virtually any rotating equipment to determine the cause of all vibrations whether they are normal or destructive. 11. Preventative Maintenance: Data collection of vibration and trending can predict bearing failures and misalignment of rotating equipment. 12. Laser Alignment: Alignment of rotating equipment is crucial to the operation of all direct coupled equipment, the closer the tolerance of alignment the less vibration and wear on the bearings. 13. Field Balancing: The balance of rotating machinery is vital to the machines longevity. When it is not practical to remove the equipment we are qualified to perform balancing in the field. 14. Field Testiniz: Service personnel are dispatched to the owner's facility to test electrical motors before they are removed and sent to the repair shop, or for maintenance reasons. List of Equipment (6) Radio Dispatched Trucks, Including an 8,000 lb Cap Crane Truck (3) Vibration Analyzers, Including Laser Alignment and Field Balance (2) Bake Out Ovens (2) Burn Out Ovens (2) VPI Impregnation Systems (14) In House Jib Cranes (1) 5 Ton Capacity Overhead Bridge Crane (1) Computerized Core Loss Tester (1) Baker Surge Tester (5) Coil Winding Machines (4) In House Engine Lathes (1) Vertical Milling Machine (2) In House Balancing Machines with Computer Generated Reports Continued on page 3 r,. City of Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 3 Hourly Rates Straight Time Shop Labor* * $ 65.00 Field Balancing $ 72.00 Laser Alignment (1 Man) $ 72.00 Laser Alignment (2 Men) $ 96.00 Vibration Analysis $ 72.00 Report Writing $ 72.00 Field Mechanical $ 72.00 Electrical Trouble Shooting $ 55.00 Overtime Double Time N/A - N/A $ 108.00 $ 144.00 $ 108.00 $ 144.00 $ 144.00 $ 192.00 $ 108.00 $ 144.00 $ 108.00 $ 144.00 $ 108.00 $ 144.00 $ 82.50 $ 110.00 **No overtime charged at any time at our facility on repair jobs. Overtime - Any work performed in excess of 8 hours, but not more than 12 hours in one day, and any work performed on Saturday, not exceeding 12 hours. Double Time - Any work performed in excess of 12 hours in one day, and any work performed on a Sunday or Holiday. Procedure to Schedule a Service Call If, at any time, you need service - day or night - all that is required is to call our facility at 323-587-5255. The shift foreman will direct personnel accordingly. Response Time Our normal response time is within (1) hour of the time the call is received. Minimum Charges t There is a minimum service call charge of (3) hours. Key Personnel Rick Pena, President 323-816-6040 Greg Manasarian, Plant Supervisor 323-816-6068 Jose Lopez, Sales Engineer 323-816-9410 Continued on page 4 City of Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 4 We currently provide these services on a blanket order basis for: Boeing, Central Plants, City of Los Angeles, City of San Diego, Disneyland, Jefferson Smurfit, Knott's Berry Farm, Pennzoil, TRW, US Gypsum, and UCLA. Thank you for your interest and we look forward to a long and continued relationship. If there are any questions please do not hesitate to call. Yours Truly, LITTLEJOHN-REULAND CORPORATION �Ijase� Jose Lopez Sales Engineer LABOR RATES SHOP MACHINE WORK BALANCE SERVICE CALLS REGULAR TRAVEL LASER ALIGNMENT VIBRATION TRENDING FIELD BALANCING REPORT WRITING MILEAGE .65 PER MILE $60.00 PER HR 65.00 " " 60.00 " " 55.00 PER HR 45.00 44 cc 96.00 " " 72.00 " " 72.00 " " 72.00 " " 72.00 " " CONSTRUCTION 55.00 PER HR EXHIBIT is 1 2 3 4. 5I 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21'' 22 23 24 25 26 27 28 EXHIBIT B INSURANCE SCHEDULE (LITTLEJOHN) Littlejohn shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I Coverage and Limits Bodily InjurX Property Damage Hazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 _Non -Owned Automobiles $ 500,000 -$1,000,000 $ 500,000 Workers' Compensation $ Statutory Employers' Liability $1,000,000 per employer II. General and Professional Liability General Liability $1,000,000 $2,000,000 .$1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contract Liability $1,000,000 $2,000,000 $1,000,000 Professional Liability $2,000,000 $2,000,000 $2,000,000 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: l . An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may, be required by addendum hereto. b. In addition to the standard certificate of insurance, proof of general and professional liability coverage shall be furnished in the form checked below. Certification of the following proofs by the insurance agent or broker will not be accepted: X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true and correct and that the signator is an officer authorized to so certify. A copy of each policy certified by an officer of the underwriter or carrier and notarized. EXHIBIT SUPPORTING DOCUMENTS 1 MAINTENANCE AGREEMENT 2 3 THIS AGREEMENT is made, entered into and executed in 4 duplicate originals, either copy of which may be considered and used 5 as the original hereof for all purposes, as of this day of June, 6 2001, in the City of Vernon, County of Los Angeles, California 7 BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as 8 the "City") 4305 Santa Fe Avenue 9 Vernon, CA 90058 10 AND LITTLEJOHN-REULAND CORPORATION (hereinafter referred to as 11 "Littlejohn") 4575 Pacific Boulevard 12 Los Angeles, CA 90058 13 RECITALS 14 WHEREAS, due to the high demand to be placed on the diesel 15 units, the City's Utilities Department requires the services of a 16 vendor to perform preventative maintenance and repair services in 17 order to keep the units running without interruption; and 18 WHEREAS, Littlejohn submitted a proposal to the City dated 19 May 30, 2001 (the "Proposal") that includes a description of proposed 20 services and a cost estimate.for maintenance and repair services; and 21 WHEREAS, Littlejohn represents that it is qualified to 22 perform such services and is willing to render such maintenance and 23 repair services as hereinafter defined; and 24 WHEREAS, the City desires to engage the services of 25 Littlejohn for maintenance and repair services on the machinery at the 26 Vernon Power Plant. 27 28 / / / 1 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 2 FORTH HEREIN: 3 1. SCOPE OF SERVICES. 4 Littlejohn shall perform the services outlined in the 5 Proposal, a copy of which is attached hereto as Exhibit "A" and 6 incorporated herein by reference. It is understood and agreed that in 7 the event of a conflict between the Proposal and this Agreement, the 8 terms of this Agreement shall prevail. 9 2. PROGRESS REPORTS. 10 Littlejohn shall meet with City staff, upon City's request, 11 or as needed, in order to provide reports or information concerning 12 the services being performed by Littlejohn under this Agreement. 13 3. TIME OF PERFORMANCE. 14 Littlejohn's services shall commence on July 1, 2001 and 15 shall continue to June 30, 2002, unless the Agreement is terminated. 16 4. COMPENSATION. 17 A. The City will compensate Littlejohn for 18 maintenance and repair services pursuant to the Proposal. The total 19 annual amount to be paid to Littlejohn under this Agreement shall not 20 exceed an annual total of Fifty Thousand Dollars and No Cents 21 ($50, 000.00) . 22 B. Other Expenses. Other expenses not identified 23 in the Proposal may only be billed if advance written approval has 24 been obtained from the City Administrator. 25 5. METHOD OF PAYMENT. 26 Littlejohn shall submit within thirty (30) days after the 27 last day of any month in which services have been performed or costs 28 incurred hereunder an invoice to the City. Invoices shall contain an - 2 - 1 itemization of services rendered, directly related job expenses and 2 subcontract charges incurred by Littlejohn and for which compensation 3 is due. Littlejohn shall be responsible for paying any subcontractors 4 used in the performance of this Agreement. Subcontractors shall not 5 bill the City directly. 6 Payment of the invoice shall be made after acceptance and 7 approval by the City within thirty (30) days of receipt. The City's 8 approval of the invoice shall not be unreasonably withheld. 9 6. CHANGES AND EXTRA SERVICES. 10 The City reserves the right to request changes in the 11 services to be performed by Littlejohn. All such changes shall be 12 incorporated in written change orders executed by the City and 13 Littlejohn which shall specify the changes ordered and the adjustment 14 of compensation and completion time required thereof. 15 Any services added to the scope of this Agreement by a change 16 order shall be executed under all applicable conditions of this 17 Agreement. No claim for additional compensation or extension of time 18 shall be recognized unless contained in a duly executed change order. 19 7. PRODUCTS OF CONSULTING. 20 All documents, data, databases, studies, surveys, drawings, 21 maps, models, photographs and reports prepared by Littlejohn under 22 this Agreement shall be considered the property of the City. Such 23 documents and materials shall be delivered to the City by Littlejohn 24 as they are generated; however, Littlejohn may take and retain copies 25 of such documents and materials as desired. 26 8. Termination. This Agreement may be terminated by the 271 City without cause on ten (10) days written notice to Littlejohn. In 28 the event of such termination by the City, Littlejohn shall be - 3 - 1 entitled to only the compensation earned by it prior to the date of 2 the termination notice, plus compensation for necessary work performed 3 during the ten (10) day notice period and authorized in the 4 termination notice. 5 9. NOTICES. Notices to the parties, unless otherwise 6 requested in writing, shall be sent to- 7 City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST 8 CITY ADMINISTRATOR 4305 SANTA FE AVENUE 9 VERNON, CA 90058-0805 10 Littlejohn: LITTLEJOHN-REULAND CORPORATION 11 ATTN: RICK PENA, PRESIDENT P.O. BOX 58487 12 LOS ANGELES, CA 90058 13 10. CONFIDENTIAL INFORMATION. 14 A. Access to Confidential Information. The City may 15 provide Littlejohn with, or allow Littlejohn access to, certain 16 information not available to the public concerning the City, or 17 businesses located in the City. The information may include company 18 information, taxes, sales, value of assets, or other such information. 19 All such information shall be known as "Confidential Information." 20 B. No Disclosure. Except as expressly permitted, 21 Littlejohn shall not disclose, permit the disclosure of, release, 22 disseminate, or transfer, whether orally or by any other means, any 23 part of such Confidential Information to any other person or entity, 24 whether corporate, governmental, or individual, without the express 25 prior written consent of an authorized representative of the City. 26 Littlejohn shall return any written Confidential Information and all 27 copies made of such items to the City upon the City's written request, 28 but in any event not later than the date that Littlejohn has performed - 4 - .1 all services to be performed pursuant to this Agreement. Littlejohn 2 hereby agrees that such Confidential Information and any documents 3 provided may be used by Littlejohn only as authorized by the City. 4 Littlejohn shall take reasonable measures to avoid any disclosure of 5 any such Confidential Information to any unauthorized person. 6 C. Court Ordered Disclosure. Littlejohn shall 7 immediately notify the City of any court order or subpoena requiring 8 disclosure of Confidential Information, and shall cooperate with legal 9. counsel in the appeal or challenge of any such order or subpoena. 10 Recipient may only disclose Confidential Information required to be 11 disclosed pursuant to court order or subpoena after legal counsel has 12 exhausted any lawful and timely appeal or challenge. 13 D. Remedies. In addition to any other remedies that 14 it may have at law or inequity, the City shall be entitled to a 15 temporary and permanent injunction by a court of competent 16 jurisdiction against any breach or threatened breach of the 17 Confidential Information provisions of this -Agreement. Littlejohn 18 acknowledges that in case of such breach or threatened breach of said 19 provisions, the City would have no adequate remedy at law. 20 11. GENERAL PROVISIONS. 21 A. Independent Contractor. At all times during the 22 term of this Agreement, Littlejohn shall be an independent contractor 23 and shall not be an employee of the City. The City shall have the 24 right to control Littlejohn only insofar as the results of 25 Littlejohn's services rendered pursuant to this Agreement; however, 26 the City shall not have the right to control the means by which 27 Littlejohn accomplishes services rendered pursuant to the Agreement 28 except to the extent that such services involve the use of City - 5 = 1 property or Confidential Information. 2 B. Littlejohn Not Agent. Except as the City may 3 specify in writing, Littlejohn shall have no authority, express or 4 implied, to act on behalf of the City in any capacity whatsoever as an 5 agent. Littlejohn shall have no authority, expressed or implied, 6 pursuant to this Agreement to bind the City -to any obligation 7 whatsoever-. 8 C. Indemnification. Littlejohn shall indemnify, 9 defend, protect and hold the City and its officers, agents and 10 employees, free and harmless from and against any and all claims, 11 demands, losses, damages, liabilities, fines, charges, penalties, 12 orders, judgments and all costs and expenses incurred in connection 13 therewith, including reasonable attorney's fees and costs of defense 14 arising out of the negligent services performed under this Agreement, 15 except to the extent arising from or caused by the negligence or 16 willful misconduct of the City, its officers, agents or employees. 17 D. Insurance. Prior to commencing work hereunder, 18 Littlejohn shall provide the City with proof of insurance providing 19 and maintaining the coverages and endorsements set forth in the 20 Insurance Schedule attached hereto as Exhibit "B" and made a part 21 hereof by reference. Said proof of insurance shall also provide that 22 said policy or policies shall not be canceled or materially reduced in 23 coverage without giving at least thirty (30) days prior written notice 24 to the City. Littlejohn shall not permit a subcontractor or vendor to 25 perform work.on City premises unless and until a certificate of 26 insurance is obtained showing that such subcontractor or vendor has 27 worker's compensation coverage. 28 If Littlejohn employs subcontractors as part of the 1 services rendered, Littlejohn's protective coverage is required. 2 Littlejohn may include all subcontractors as insureds under its own 3 policy or shall furnish separate insurance for each subcontractor, 4 meeting the requirements set forth herein. 5 E. Governing Law. The validity, interpretation and 6 performance of this Agreement shall be controlled and construed under 7 the laws of the State of California. 8 F. Assignment and Subcontracting Prohibited. No 9 party to this Agreement may assign or subcontract any right or 10 obligation pursuant to this Agreement except with the express written 11 consent of the other party. Any other attempted or purported 12 assignment of any right or obligation pursuant to this Agreement shall 13 be void and'of no effect. 14 G. Amendments. This Agreement may be modified or 15 amended only by a written document executed by both Littlejohn and the 16 City and approved as to form by the City Attorney. 17 H. Entire Agreement. This Agreement is the entire 18 agreement of the parties. Littlejohn represents that in entering into 19 this Agreement, it has not relied on any previous representations or 20 understandings of any kind or nature. 21 I. Benefit of Agreement. -This Agreement shall bind 22 and benefit the parties hereto and their heirs, successors, and 23 permitted assigns. 24 J. Forum Selection. Any action brought relating to 25 this Agreement shall be brought and held exclusively in a State Court 26 in the County of Los Angeles, California.. 27 K. Recitals. All recitals are incorporated by 28 reference. - 7 - f 1 L. Waiver. Any waiver at any time by either party 2 of its rights with respect to a default under. this Agreement, or with 3 respect to any other matters arising in connection with this 4 Agreement, shall not be deemed a waiver with respect to subsequent 5 default or other matter. 6 M. Force Ma-ieure. Neither Party shall be considered 7 in to be in default in any of its obligations under this Contract when 8 a failure of performance shall be due to an uncontrollable force. The 9 term "uncontrollable force" shall mean any cause beyond the control of 10 the party affected, including, but not restricted to, flood, 11 earthquake, storm, fire, lightening, epidemic, war, riot, civil 12 disturbance or disobedience, labor dispute, labor material shortage, 13 sabotage, federal, state, or municipal action, statute, ordinance, or 14 regulation, embargoes of the United States Government or any other 15 government, which by exercise of due diligence such party could not 16 reasonably have been expected to avoid and by exercise of due 17 diligence has been unable to overcome. Either party rendered unable 18 to fulfill any of its obligations under this Agreement by reason of an 19 uncontrollable force, shall give written notice within five (5) 20 Business Days of such fact to the other party and'shall exercise due 21 diligence to remove such inability with all reasonable dispatch. 22 23 24 25 26 27 28 1 IN WITNESS WHEREOF, the parties have caused this Agreement to 2 be executed by and through their authorized officers on the date, 3 month and year first written above. 4 5 CITY OF VERNON 6 gy; EONIS C. MAL RG, May r 7 8 ATTEST: 9 BRUCE V. MALKENHORST, City Clerk 10 11 APPROVED AS TO FORM: 12 <f , dA4,.'� EDUARDO OLIVO, City Attorney 13 LITTLEJOHN-REULAND CORPORATION 14 �. By: �.��.•� 15 Title: 1�'.�fs�.a�.✓7" 16 1�= 17 B y : 18 Title: 19 20 21 22 23 24 25 26 27 28 Littlejohn-Reu land Corporation Calif. Contractors Established 1926 License 4418-C10 4575 PACIFIC BOULEVARD • P.O. BOX 58487 • LOS ANGELES, CALIFORNIA 90058 TEL. 323/587-5255 9 FAX. 323/581-8385 MOTORS AND CONTROL LARGE STOCK NEW AND REBUILT GUARANTEED MOTORS AND CONTROL WESTINGHOUSE DISTRIBUTION City of Vernon Department of Light & Power 4305 Santa Fe Avenue Vernon, CA 90058 REWINDING AND Attn: Mr. Manuel G. Garcia, Systems Manager REPAIRING OUR REPAIR SHOP IS COMPLETE 24•HOUR Re: Electrical Capabilities REPAIR SERVICE May 30, 2001 Dear Mr. Garcia, Littlejohn-Reuland Corporation has been in business since 1926, serving all industries and is one of the largest electric motor rewind and repair facilities on the West Coast, offering INDUSTRIAL POWER s LIGHT the most complete service. WIRING ENGINEERING STAFF ESTIMATORS AND ELECTRICIANS We operate 24 hours a day, 7 days a week, never closing, in order to provide the service AVAILABLE that is necessary for our customers to operate with the minimum downtime. Services We Provide SERVICE 1. Electric Motor Repair: We pride ourselves on being capable of repairing any type unit, DEPARTMENT including pumps, gear units, AC and DC motors, generators, spindle motors, router EXPERT ELECTRICIANS AND REPAIRMAN motors, variable frequency motors, etc. AVAILABLETTOUR 2. Machine Shon: Complete machine shop facilities on our premises, including dynamic HOURS P EVERY DAYOF Y balancing, metal spraying, welding, making new shafts, etc. THE YEAR I. Troubleshooting: Outside service crew for electrical trouble -shooting and repair of electrical equipment at your. site. 4. Electrical Contracting: A fully staffed electrical construction crew and engineering services are available for installation and connection of new and used equipment. Both large and small projects are welcome. 5. New Motor Sales: A large, complete stock of new electric motors, brakes and gear boxes. Distributors for Baldor, Lincoln, Sterling, Century and Reuland. Continued on page 2 City of Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 2 6. New Motor Controls: Motor starters, circuit breakers, relays, conduit, wire, fittings, controls and miscellaneous electrical parts. 7. Delivery and Pick u . All pick ups and deliveries for the City of Vernon will be free of charge. These services are available 24 hours a day, 7 days a week. We have (6) radio dispatched trucks to perform these services. 8. Warranty_ Service: We provide service and warranty repairs for most major motor manufacturers, including Baldor, Century, ABB, Lincoln, Sterling, U.S., etc. 9. Reporting services: Work and test reports can be furnished for all work which was performed along with the standard cause of failure reports. 10. Vibration Analysis: Mechanical vibration analysis for virtually any rotating equipment to determine the cause of all vibrations whether they are normal or destructive. 11. Preventative Maintenance: Data collection of vibration and trending can predict bearing failures and misalignment of rotating equipment. 12. Laser Alignment: Alignment of rotating equipment is crucial to the operation of all direct coupled equipment, the closer the tolerance of alignment the less vibration and wear on the bearings. 13. Field Balancing: The balance of rotating machinery is vital to the machines longevity. When it is not practical to remove the equipment we are qualified to perform balancing in the field. 14. Field Testing_ Service personnel are dispatched to the owner's facility to test electrical motors before they are removed and sent to the repair shop, or for maintenance reasons. List of Equipment (6) Radio Dispatched Trucks, Including an 8,000 lb Cap Crane Truck (3) Vibration Analyzers, Including Laser Alignment and Field Balance (2) Bake Out Ovens (2) Burn Out Ovens (2) VPI Impregnation Systems (14) In House Jib Cranes (1) 5 Ton Capacity Overhead Bridge Crane (1) Computerized Core Loss Tester (1) Baker Surge Tester (5) Coil Winding Machines (4) In House Engine Lathes (1) Vertical Milling Machine (2) In House Balancing Machines with Computer Generated Reports Continued on page 3 City of Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 3 Hourly Rates_ Straight Time Overtime Double Time Shop Labor* * $ 65.00 N/A - N/A Field Balancing $ 72.00 $ 108.00 $ 144.00 Laser Alignment (1 Man) $ 72.00 $ 108.00 $ 144.00 Laser Alignment (2 Men) $ 96.00 $ 144.00 $ 192.00 Vibration Analysis $ 72.00 $ 108.00 $ 144.00 Report Writing $ 72.00 $ 108.00 $ 144.00 Field Mechanical $ 72.00 $ 108.00 $ 144.00 Electrical Trouble Shooting $ 55.00 $ 82.50 $ 110.00 **No overtime charged at any time at our facility on repair jobs. Overtime - Any work performed in excess of 8 hours, but not more than 12 hours in one day, and any work performed on Saturday, not exceeding 12 hours. Double Time - Any work performed in excess of 12 hours in one day, and any work performed on a Sunday or Holiday. Procedure to Schedule a Service Call If, at any time, you need service - day or night - all that is required is to call our facility at 323-587-5255. The shift foreman will direct personnel accordingly. Response Time Our normal response time is within (1) hour of the time the call is received. MinimuM Charges There is a minimum service call charge of (3) hours. Key Personnel Rick Pena, President 323-816-6040 Greg Manasarian, Plant Supervisor. 323-816-6068 Jose Lopez, Sales Engineer 323-816-9410 Continued on page 4 City of. Vernon Attn: Mr. Manuel G. Garcia May 30, 2001 - Page 4 We currently provide these services on a blanket order basis for: Boeing, Central Plants, City of Los Angeles, City of San Diego, Disneyland, Jefferson Smurfit, Knott's Berry Farm, Pennzoil, TRW, US Gypsum, and UCLA. Thank you for your interest and we look forward to a long and continued relationship. If there are any questions please do not hesitate to call. Yours Truly, LITTLEJOHN-REULAND CORPORATION cios e Jose Lopez Sales Engineer Y+ LABOR RATES SHOP $60.00 PER HR MACHINE WORK 65.00 " BALANCE 60.00 " SERVICE CALLS REGULAR 55.00 PER HR TRAVEL 45.00 " " LASER ALIGNMENT 96.00 " " VIBRATION 72.00 " " TRENDING 72.00 " " FIELD BALANCING 72.00 " " REPORT WRITING 72.00 46" MILEAGE .65 PER MILE CONSTRUCTION 55.00 PER HR 26 A copy of each policy certified by an officer of the underwriter or carrier and notarized. 27 281 ICITY -OF VERNON, CALIFORNIA PURCHASE REQUISITION 09204 DEPARTMENT: UTILITIES REQUESTOR NAME: KENNETH J. DEDARIO DATE: 6/5/01 SUGGESTED VENDOR: LITTLEJOHN-REULAND CORPORATION PHONE No.:(323 )587-5255 VENDOR ADDRESS: 4575 PACIFIC BLVD., P. 0. BOX 58487, LOS ANGELES, CA 90058 FAX #: 323-581-8385 CONTACT PERSON: SEE BELOW REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 2715 E . 50TH STREET \,ACCOUNT NO.: 055- -8200_ b5R--x 4q NIMS BUDGETED YES X * NO FOR THE PERIOD OF JULY 1, 2001 THROUGH JUNE 30, 2002 PROVIDE SERVICES FOR PREVENTATIVE MAINTENANCE, EQUIPMENT REPAIRS, AS SET FORTH IN ATTACHED LETTER TO THE POWER PLANT FACILITY. NOT TO EXCEED $50,000 ANNUALLY KEY PERSONNEL: RICK PENA, PRESIDENT 323-816-6040 GREG MANASARIAN, PLANT SUPV- 323-816-6068 JOSE LOPEZ, SALES ENGINEER 323-816-9410 MINIMUM SERVICE CALL CHARGE OF (3) HOURS. lvt l�e✓h® � SCHEDULED DELIVERY DATJ:; �r IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF RE UE EL SUBMIT MEMORANDUM. RAr uinu(c na ll 0 U� �br serve cam, I hereby certify that the above items are necessary for the operation of this Department ment Head or Authorized Person ISSUED BY DATE RECEIVED BY PURCHASING DEPARTMENT DATE PURCHASE ORDER NUMBER