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Resolution No. 82391 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ON 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8239 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN EQUIPMENT PURCHASE CONTRACT BY AND BETWEEN THE CITY OF VERNON AND GRAYBAR ELECTRIC COMPANY, INC. WHEREAS, the City of Vernon has installed a fiber optic backbone ring that traverses the existing City right-of-way to connect various City operations and facilitate the establishment of an alternate communications system among its buildings and facilities; and WHEREAS, the City of Vernon is interested in expanding its existing multiplexing network to connect its remote facilities to its control and monitoring center (the "Fiber Optic Network Extension"); and WHEREAS, the Community Services & Water Department believes International Fiber Systems ("IFS") to be the leading manufacturer of fiber optic transceivers and the only manufacturer of media converter transceivers that provide lifetime warranty on its products; and WHEREAS, the Community Services & Water Department is requesting the purchase of (a) point-to-point data transceivers manufactured by IFS (b) self -healing ring/fault-tolerant data transceivers manufactured by IFS; and (c) rack -mount card cages with 26-plates manufactured by IFS (collectively referred to as "Fiber Optic Transceivers"); and WHEREAS, the Community Services & Water Department sought informal quotes from distributors of IFS products for the purchase of the Fiber Optic Transceivers; and WHEREAS, the Community Services & Water Department believes 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 Graybar Electric Company, Inc. ("Graybar") to be the only supplier of the Fiber Optic Transceivers who can provide the equipment that meets the Department's specifications and requirements; and WHEREAS, by letter dated June 26, 2003, Bruce V. Malkenhorst, City Administrator/City Clerk, recommended that Graybar be retained to provide the optical transceivers manufactured by IFS needed for the Fiber Optic Network Extension; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into a contract with Graybar for the purchase of the Fiber Optic Transceivers. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION l: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Equipment Purchase Contract, with Graybar Electric Company, Inc., a copy of which is attached hereto as Exhibit "A" and made a part hereof. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Contract for, and on behalf of, the City of Vernon. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to send one fully executed Agreement to: - 2 - 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 Graybar Electric Company, Inc. Attn. Karla Marquis 383 S. Cheryl Lane Walnut, CA 91789 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 2"d day of July, 2003. ATTEST: BRUCE V. MALKENHORST, City Clerk EONIS C. MA BURG, Aayor - 3 - 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 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8239, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, July 2, 2003, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City erk - 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 27 28 EQUIPMENT PURCHASE CONTRACT THIS CONTRACT is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the Tu1r original hereof for all purposes, as of this day of Pamy, 2003, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN �_� THE CITY OF VERNON (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058 GRAYBAR ELECTRIC COMPANY, INC. (hereinafter referred to as "Graybar") 383 S. Cheryl Lane Walnut, CA 91789 WHEREAS, the City has installed a fiber optic backbone ring that traverses the existing City right-of-way to facilitate the establishment of an alternate communications system among its buildings and facilities; and WHEREAS, the fiber optic ring is used to connect various City operations; and WHEREAS, City is interested in expanding its existing multiplexing network to connect the control center and remote City facilities in the City to its fiber network (hereinafter referred to as "Fiber Optic Network Extension"); and WHEREAS, International Fiber Systems ("IFS") is a leading manufacturer of fiber optic transceivers and the only manufacturer of media converter transceivers that provide lifetime warranty on its products; and I WHEREAS, the City's Community Services & Water Department 2 has determined that, in order to facilitate the Fiber Optic Network 3 Extension, the City needs to purchase: (a) thirty (30) point-to-point 4 Data Transceivers manufactured by IFS; (b) twelve (12) RS-232 Self- 5 healing Ring/Fault-Tolerant Data Transceivers manufactured by IFS; 6 and, (c) three (3) 19" rack -mount card cages with twenty-six (26) 7 plates manufactured by IFS (hereinafter collectively referred to as 8 "Fiber Optic Transceivers"); and 9 WHEREAS, Graybar prepared a Quotation (Project No. 154- 10 02330414") dated April 4, 2003 (hereinafter the "Quotation"), a copy 11 of which is attached hereto as Exhibit "A" and made a part hereof; and 12 WHEREAS, Graybar is a distributor of IFS products; and 13 WHEREAS, Graybar represents that it is qualified and capable 14 of furnishing Fiber Optic Transceivers meeting the specifications and 15 requirements of the Community Services & Water Department, as provided 16 for in the Quotation, and is willing to do so on the terms and conditions set forth below; and 17 WHEREAS, the City desires to enter into an agreement with 18 Graybar to provide for the purchase and delivery to the City of the 19 Fiber Optic Transceivers. 20 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 21 FORTH HEREIN: 22 1. Purchase. Graybar agrees to sell and deliver the Fiber 23 Optic Transceivers meeting the specifications and requirements of the 24 Community Services & Water Department as described in detail in the 25 attached Exhibit "A." In the event of a conflict between the Quotation 26 and this Contract, the terms of this Contract shall prevail. 27 2. Time of Performance. Graybar's performance as 28 identified herein shall commence upon the signing of this Contract by -2- I both parties and shall end when Graybar has completed the transaction 2 as set forth herein, unless otherwise terminated or extended. 3 3. Price. Consistent with the Quotation, Graybar agrees 4 to sell and deliver to the City (a) thirty (30) point-to-point Data 5 Transceivers manufactured by IFS; (b) twelve (12) RS-232 Self -healing 6 Ring/Fault-Tolerant Data Transceivers manufactured by IFS; and (c) 7 three (3) 19" rack -mount card cages with twenty-six (26) plates 8 manufactured by IFS for the total not to exceed sum of Forty -Six 9 Thousand Nine Hundred Three Dollars and Twenty -Five Cents ($46,903.25) 10 plus tax and shipping. 11 4. Payment Terms. City agrees to pay Graybar net thirty 12 (30) days after City's receipt of an invoice, delivery, and City's 13 acceptance of the Fiber Optic Transceivers, the total amount due under 14 the Contract. 15 5. Change and Extra Services. City reserves the right to 16 request changes in the equipment design, delivery dates, or additions 17 to or deletions from the equipment purchased from Graybar. All such 18 changes shall be incorporated in written change orders executed by 19 City and Graybar and shall specify the changes ordered and the 20 adjustment of prices, delivery schedules and warranties. Any 21 equipment or services added under this section shall be executed under 22 all applicable conditions of this Contract. No claim for additional 23 compensation or extension of time shall be recognized unless contained 24 in a duly executed change order. 25 6. Cancellation/Default. In the event that Graybar 26 commits a breach of a material condition of this Contract, City shall 27 notify Graybar in writing of said breach and if Graybar has not cured 28 or begun reasonable efforts to cure after fifteen (15) days of receipt -3- I of said notice, and fails to diligently pursue corrective action, City 2 shall have the right to cancel this Contract for cause based on 3 Graybar's default. Graybar shall be responsible for any direct costs 4 due to City's re -procurement of the equivalent of the equipment or 5 services cancelled from Graybar. Graybar's liability for these excess 6 costs shall not exceed the value of the Purchase Order. 7 7. Confidential Information. 8 A. Access to Confidential Information. City may 9 provide Graybar and/or its subcontractor with, or allow Graybar access 10 to, certain information not available to the public concerning City, 11 or businesses located in City. The information may include company 12 information, taxes, sales, value of assets, or other such information. 13 All such information shall be known as "Confidential Information" and 14 may not be used to circumvent the responsibility of either party to 15 this Contract. 16 B. No Disclosure. Except as expressly permitted, 17 Graybar and/or its subcontractor shall not disclose, permit the 18 disclosure of, release, disseminate, or transfer, whether orally or by 19 any other means,.any part of such Confidential Information to any 20 other person or entity, whether corporate, governmental, or 21 individual, without the express prior written consent of an authorized 22 representative of City. Graybar and/or its subcontractor shall return 23 any written Confidential Information and all copies made of such items 24 to City upon City's written request, but in any event not later than 25 the date that Graybar has performed all services to be performed 26 pursuant to this Contract. Graybar hereby agrees that such 27 Confidential Information and any documents provided may be used by 28 Graybar and/or its subcontractor only as authorized by the City. -4- I Graybar shall include a contract provision in its contract with 2 subcontractors that binds the subcontractors to this non -disclosure 3 requirement. Graybar shall take reasonable measures to avoid any 4 disclosure of any such Confidential Information to any unauthorized 5 person. 6 C. Court Ordered Disclosure. Graybar shall 7 immediately notify City of any court order or subpoena requiring 8 disclosure of Confidential Information, and shall cooperate with 9 City's legal counsel in responding to any such order or subpoena. 10 Graybar 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, City shall be entitled to a temporary 15 and permanent injunction by a court of competent jurisdiction against 16 any breach or threatened breach of the Confidential Information 17 provisions of this Agreement. Graybar acknowledges that in case of 18 such breach or threatened breach of said provisions, City would have' 19 no adequate remedy at law. 20 8. Warranties. Graybar warrants title to the Fiber Optic 21 Transceivers purchased hereunder and any part thereof to be free of 22 any claim of any security interest, lien or any encumbrance. Graybar 23 also warrants that the equipment will be delivered new and shall be 24 free from defects in material and workmanship. All manufacturers' 25 lifetime warranties, any warranties typically provided by IFS, and any 26 other warranties made applicable by law shall apply to the City's 27 purchase of the Fiber Optic Transceivers. 28 9. Compliance with Laws. Graybar shall strictly observe -5- I and comply with all applicable federal, state, and local laws, 2 ordinances and regulations governing this sale, including but not 3 limited to any permit or license requirements of the United States 4 Department of Commerce, as well as any laws of the United States of 5 America. 6 10. Governing Law. The validity, interpretation and 7 performance of this Contract shall be controlled and construed under 8 the laws of the State of California. 9 11. Forum Selection. Any action brought relating to this 10 Contract shall be brought and held exclusively in a State Court in the 11 County of Los Angeles, California. 12 12. Notices. Notices to the parties, unless otherwise 13 requested in writing, shall be sent to: 14 City: THE CITY OF VERNON 15 ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 16 4305 SANTA FE AVENUE VERNON, CA 90058-0805 17 18 Graybar: GRAYBAR ELECTRIC COMPANY, INC. ATTN: KARLA MARQUIS 19 383 S. CHERYL LANE WALNUT, CA 91789 20 13. General Provisions. 21 22 A. Independent Contractor. At all times during the 23 term of this Contract, Graybar shall be an independent contractor and shall not be an employee of the City. The City shall have the right 24 25 to control Graybar only insofar as the results of Graybar's services 26 rendered pursuant to this Contract; however, the City shall not have 27 the right to control the means by which Graybar accomplishes services 28 rendered pursuant to the Contract except to the extent that such 9Me I services involve the use of City property or Confidential Information. 2 B. Graybar Not Agent. Except as the City may specify 3 in writing, Graybar shall have no authority, express or implied, to 4 act on behalf of the City in any capacity whatsoever as an agent. 5 Graybar shall have no authority, expressed or implied, pursuant to 6 this Contract to bind the City to any obligation whatsoever. 7 C. Indemnification. Graybar shall indemnify, defend, 8 protect and hold the City and its officers, agents and employees, free 9 and harmless from and against any and all claims, demands, losses, 10 damages, liabilities, fines, charges, penalties, orders, judgments and 11 all costs -and expenses incurred in connection therewith, including 12 reasonable attorney's fees and costs of defense arising out of or 13 attributable to the negligent or wrongful acts of Graybar or its 14 subcontractors, employees or agents in the performance of services 15 under this Contract, except to the extent arising from or caused by 16 the sole negligence or willful misconduct of the City, its officers, 17 agents or employees. 18 D. Insurance. Graybar agrees to provide insurance in 19 the amounts and forms specified in Exhibit "B," which is attached 20 hereto.and made a part hereof by reference. Comparable coverage shall 21 be provided for each subcontractor used in the performance of this 22 Contract. Graybar shall submit to the City documentation indicating 23 compliance with these minimum requirements no less than one (1) day 24 prior to the beginning of performance under this Contract. Graybar 25 shall not commence performance of its services under this Contract 26 until the above insurance has been obtained and proof of insurance has 27 been filed with and approved by the City. 28 E. Assignment and Subcontracting Prohibited. No -7- I party to this Contract may assign or subcontract any right or 2 obligation pursuant to this Contract except as provided for in the 3 Quotation or with the express written consent of the other party. Any 4 other attempted or purported assignment of any right or obligation 5 pursuant to this Contract shall be void and of no effect. 6 F. Entire Agreement. This Contract constitutes the 7 complete and final expression of the agreement of the parties and is 8 intended as a complete and exclusive statement of the terms of their 9 agreement and supersedes all prior and contemporaneous offers, 10 promises, representations, negotiations, discussions, communications 11 and agreements which may have been made in connection with the subject 12 matter hereof. All exhibits are incorporated by reference. Graybar 13 represents that in entering into this Contract it has not relied on 14 any previous representations.or understandings of any kind or nature. 15 G. Partial Invalidity. Wherever possible, each 16 provision hereof will be interpreted in such manner as to be effective 17 and valid under applicable law, but in case any one or more of the 18 provisions contained herein will, for any reason, be held to be 19 invalid, illegal or unenforceable in any respect, such provision will 20 be ineffective to the extent, but only to the extent of such 21 invalidity, illegality or unenforceability without invalidating the 22 remainder of such provision or provisions or any other provision 23 hereof, unless such a construction would be unreasonable or contrary 24 to the parties' intent as expressed in this Contract. 25 H. Time of the Essence. Time is of the essence in 26 the performance of this Contract and of each and every provision 27 hereof. 28 I. Risk of Loss. Risk of loss or damage shall pass MI-M I to the City upon delivery FOB the City. 2 J. Benefit of Agreement. This Contract shall bind 3 and benefit the parties hereto and their heirs, successors, and 4 permitted assigns. 5 K. Waiver. Any waiver at any time by either party of 6 its rights with respect to a default under this Contract, or with 7 respect to any other matters arising in connection with this Contract, 8 shall not be deemed a waiver with respect to subsequent default or 9 other matter. 10 L. Amendment. All changes or modifications to this 11 Contract shall be in writing stating that it is an amendment to this 12 Contract and shall be signed by both parties or their duly authorized 13 agents. This Contract shall not be modified through course of 14 dealing, usage or trade. 15 M. Force Majeure. Neither party shall be considered 16 to be in default in any of its obligations under this Contract when a 17 failure of performance shall be due to an uncontrollable force. The 18 terms "uncontrollable force" shall mean any cause beyond the control 19 of the party affected, including, but not restricted to, flood, 20 earthquake, storm, fire, lightening, epidemic, war, riot, civil 21 disturbance or disobedience, sabotage, federal, state, or municipal 22 action, statute, ordinance, or regulation, embargoes or the United 23 States Government or any other government, which by exercise of due 24 diligence such party could not reasonably have been expected to avoid 25 and by exercise to due diligence has been unable to overcome. Either 26 party rendered unable to fulfill any of its obligations under this 27 Contract by reason of an uncontrollable force, shall give written 28 notice within five (5) business days of such fact to the other party I and shall exercise due diligence to remove such inability with all 2 reasonable dispatch. 3 IN WITNESS WHEREOF, the parties have caused this Contract to 4 be executed by and through their authorized officers on the date, 5 month and year first written above. 6 CITY OF VERNON 7 By: LEONIS C. MALBURG, Mayor 8 ATTEST: 9 10 BRUCE V. MALKENHORST, City Clerk 11 APPROVED AS TO FORM: 12 EDUARDO OLIVO, City Attorney GRAYBAR ELECTRIC COMPANY, INC. 13 14 By: 15 T t1e : 1W eV,[.� Aloe/ " iV' a 16 By:_ +.n W� t 17 Title: 18 19 20 21 22 23 24 25 26 27 28 -10- THOMAS F. Dowo VICE PRESIDENT -SECRETARY AND GENERAL COUNSEL TEL: 314-512.9221 FAX: 314-512-9445 Gray IT—aR 34 NORTH MERAMEG AVENUE P.O. BOX 7231 ST. LOUIS, MO 63177 SECRETARY'S CERTIFICATE I, T. F. Dowd, hereby certify that I am Secretary of Graybar Electric Company, Inc., a New York corporation, with its principal office at Clayton, Missouri; that as such I am custodian of the records and official seal of said Corporation, and that the following is a true and correct copy of a resolution duly adopted by the Board of Directors of said Corporation at a meeting held in Glendale Heights, Illinois on September 12,1996: Upon motion duly made and seconded, the following resolution was unanimously adopted: "RESOLVED, that the Area Manager, Branch Manager, Manager-Comm/Data Sales or Manager -Customer Service is hereby authorized to sign and/or execute in the name and on behalf of the Corporation: 1) Formal Contracts, including applicable performance bonds, arising from invitation, bid, and acceptance forms which become orders upon acceptance by buyer on which the total amount does not exceed $200,000. 2) Other Proposals and Bids where the amount does not exceed $400,000." Further, that the foregoing meeting was convened and the proceedings held in accordance with the law and the charter and by-laws of said Corporation, and have not been revoked, annulled, or amended. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Corporation the 4th day of September, 2001. Secretary of GRAYBAR ELECTRIC COMPANY, INC. 5-20 (Rev. 9/12/96) (Branch - Contracts, Bids, etc.) EXHIBIT 0 Page: 1 of 1 383 S CHERYL LANE WALNUT, CA 91789 Phone:916-787-3423 Fax:916-787-3599 To: VERNON, CITY OF Attn : Ali Nour Phone: 323-583-8811 Fax: 323-826-1435 Email : ANour@ci.vemon.ca.us Date: 4/4/2003 Project Name: INTL FIBER SYSTEMS Graybar Project # : 154-02330414 Reference : Quoted Date: 4/4/2003 Quotation Expires In : 30 DAYS Graybar Contact: ARLETA WILKINSON Email : arleta.wilkinson@gbe.com Proposal We Appreciate Your Inquiry And Take Pleasure In Responding As Follows: REM QTY SUPPLIER CATALOG # DESCRIPTION CD UNIT PRICE TOTAL Miscellaneous Section 15 (IFS) D9130E-13 N 852.27 E 12,784.05 * 15 (IFS) D9130E-R3 N 795.45 E 11,931.75 * 2 (IFS) D19130SHR-R3 N 1,704.55 E 3,409.10 * 10 (IFS) D19130SHR N 1,704.55 E 17.045.50 * 3 (IFS) R3 RACK N 454.55 E 1,363.65 * 26 (IFS) R3-13P N 14.20 E 369.20 * Miscellaneous Sub -total: 46,903.25 FOB: Shipping point unless noted. Estimated freight cost of $SIGNED 300 to ship UPS Ground. Delivery : FINANCING OPTIONS Tax at 8.25% : 3,869.52 TOTAL: 50,772.77 $1,586.27 per month for 36 months $1,051.10 per month for 60 months The monthly payments shown are an estimated cost to finance the listed material through Graybar Financial Services (GFS) and may not Include applicable taxes, installation and freight. Two payments are required in advance. The material may be purchased for $1 at lease termination. Subject to GFS credit approval. Rates may change after 90 days from the date of this quote. Call GFS @ 1-800-241-7408 for other financing options. 24 HOUR EMERGENCY WWW.GRAYBAR.com PHONE # 1-800-GRAYBAR ' - Taxable Items Graybar Electric Company's Standard Terms and Conditions of Sale Apply -Terms and Conditions are Available Upon Request VISA DISCOVER MASTER CARD AMERICAN EXPRESS Page: 1 of 1 ' GRAYBAR TERMS AND CONDITIONS: 1. ACCEPTANCE OF ORDER; TERMINATION - Acceptance of any order is subject to credit approval and acceptance of order by Seller and Seller's supplier. If Buyer's credit becomes unsatisfactory to Seller, Seller reserves the right to terminate upon notice to Buyer and without liability to Seller. 2. PRICES AND SHIPMENTS - Unless otherwise quoted, prices shall be those in effect at time of shipment 3. PAYMENT TERMS - All discountable invoices are eligible for castrdiscount if paid by the 10th of the month following billing date. All net invoices are due on the 15th of month following billing. As a condition of the sales agreement, a monthly service charge of the lesser of 1-1/2% or the maximum permitted by law may be added to all accounts not paid by net due date. Pro Card, Visa, Mastercard, American Express and Discover credit cards are accepted for payment at the point of purchase only. 4. RETURN OF GOODS - Credit will be allowed for goods returned with prior approval. A deduction will be made from credits issued to cover cost of handling. 5. TAXES - Prices shown do not include sales or other taxes imposed on the sale of goods. Taxes now or hereafter imposed upon sales or shipments will be added to the purchase price. Buyer agrees to reimburse Seller for any such tax or provide Seller with acceptable tax exemption certificate. 6. DELAY IN DELIVERY - Seller is not to be accountable for delays in delivery occasioned by acts of God or other circumstances over which Seller has no direct control. Factory shipment or delivery dates are the best estimates of our suppliers, and in no case shall Seller be liable for any consequential or special damages arising from any delay in delivery. 7. WARRANTIES - Seller warrants that all goods sold are free of any security interest and will make available to Buyer all transferable warranties made to Seller by the manufacturer of the goods. SELLER MAKES NO OTHER EXPRESS OR IMPLIED WARRANTIES, AND SPECIFICALLY MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PURPOSE: UNLESS OTHERWISE AGREED IN WRITING BY AN AUTHORIZED REPRESENTATIVE OF SELLER, PRODUCTS SOLD HEREUNDER ARE NOT INTENDED FOR USE IN OR IN CONNECTION WITH A NUCLEAR FACILITY. 8. LIMITATION OF aeuers naomry snap De mmnea to either repair or replacement o or -rbTfind of the purchase price, all at Seller's option, and in no case shall Seller be liable for incidental or consequential damage. In addition, claims for shortages, other than loss in transit, must be made in writing not more than five (5) days after receipt of shipment. 9. WAIVER - The failure of Seller to insist upon the performance of any of the terms or conditions of this contract or to exercise any right hereunder shall not be deemed to be a waiver of such terms, conditions or rights in the future, nor shall it be deemed to be a waiver of any other term, condition, or right under this contract. 11. REELS - When the Seller ships returnable reels, a reel deposit will be included in the invoice. The Buyer should contact the nearest Graybar service location to return reels. EXHIBIT 1 EXHIBIT B 2 INSURANCE SCHEDULE 3 Graybar shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): 4 I. Coverage and Limits 5 Bodily Injury Property Damag 6 Hazards Each Person Each Accident Each Accident 7 Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 8 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 9 Workers' Compensation $ Statutory 10 Employers' Liability $1,000,000 per employer 11 II. General 12 General Liability $1,000,000 $2,000,000 $1,000,000 13 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000 14 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 15 Contractual Liability $1,000,000 $2,000,000 $1,000,000 16 Umbrella Liability $2,000M0 $2,000,000 $2,000,000 17 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 18 1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds 19 under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material 20 reduction of coverage. 21 3. An endorsement providing coverage for all operations under this Contract. 4. Such other endorsement as may be required by addendum hereto. 22 b. In addition to the standard certificate of insurance, proof of general and professional liability coverage 23 shall be furnished in the form checked below. Only certification of the following_ proofs will be 24 accepted: 25 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 26 the signator is an officer authorized to so certify. 27 _ A copy of each policy certified by an officer of the underwriter or carrier and notarized. 28 EXHIBIT B SUPPORTING DOCUMENTS ----6TY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro—Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman - CITY HALF � 0.ARDO OLIVO City Attorney l FAX: (562) 869-1883 \\ KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE V. MALKENHORST BRUCE W. OLSON City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief FAX (323) 826-1438 TELEPHONE (323) 583-8811 FAX: (323) 826-1481 r tn June 26, 2003 6��� City Council �,�j City of Vernon-'\�� Honorable Members: In order to continue with the Fiber Optic Network extension into City facilities the following firms need to be retained for completion of this project: • VCI Telecom, Inc., to provide construction services at a cost not -to -exceed $273,729.00. • Pirelli Cable to provide the necessary fiber optic cable for the extension at an approximate cost of $90,800.20. • RFL Electronics to provide optical multiplexing components and configuration services at an approximate cost of $26,636.00. • Graybar Electric to provide optical transceivers manufactured by IFS at an approximate cost of $46,903.25. This has been reviewed by the Director of Community Services and Water and the City Attorney. It is hereby recommended that the aforementioned firms be retained for the Vernon Fiber Optic Network Extension Project. Very truly yours, Bruce V. Malkenhorst City Administrator/City Clerk BVM/gm CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 July 8, 2003 Graybar Electric Company, Inc. 383 S. Cheryl Lane Walnut, CA 91789 Attn: Karla Marquis Re: Equipment Purchase Contract Dear Ms. Marquis: EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 In accordance with Section 13.D of said contract, you are to furnish the City with proof of Insurance as set forth in the Insurance Schedule, Exhibit "B" of the agreement. Please submit your proof of insurance to Joan Francone, Risk Manager, for review and approval. Upon receipt of said documentation this office will forward to you a fully executed duplicate original agreement. If you should have any questions, please contact Joan Francone at ext. 322. Very truly yours, za-,(,ro o a Orosco Chief Deputy City Clerk GJO/gm cc: Joan Francone Kevin Wilson Dolores Fonseca Resolution No. 8239 Agreement File No. 03-059 CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. "BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 Graybar Electric Company, Inc. 383 S. Cheryl Lane Walnut, CA 91789 Attn: Karla Marquis Re: Equipment Purchase Contract Dear Mrs. Marquis: EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 September 17, 2003 KENNETH J. DeDARIO Director of Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 Transmitted herewith is an original of the above referenced contract approved by the Vernon City Council on July 2, 2003. If you have any questions regarding this matter, please call Mr. Kevin Wilson at (323) 583-8811 ext. 245. Very truly yours, lor'a J. Oro cc Chief Deputy City Clerk GJO/gm CC: Kevin Wilson Dolores Fonseca Resolution No. 8239 Agreement No. 03-059 T . , . e 1 EQUIPMENT PURCHASE CONTRACT 2 --3 THIS CONTRACT is made, entered into and executed in duplicate 4 originals, either copy of which may be considered and used as the �• Tarr 5 original hereof for all purposes, as of this Pi day of Me}, 2003, 6 in the City of Vernon, County of Los Angeles, California 71 BY AND BETWEEN THE CITY OF VERNON 8 (hereinafter referred to as "City") 9 4305 Santa Fe Avenue Vernon, CA 90058 10 AND GRAYBAR ELECTRIC COMPANY, INC. 11 (hereinafter referred to as "Graybar") 12 383 S. Cheryl Lane Walnut, CA 91789 13 14 RECITALS 15 WHEREAS, the City has installed a fiber optic backbone ring 16 that traverses the existing City right-of-way to facilitate the 17 establishment of an alternate communications system among its 18 buildings and facilities; and 19 WHEREAS, the fiber optic ring is used to connect various 20 City operations; and 21 WHEREAS, City is interested in expanding its existing 22 multiplexing network to connect the control center and remote City 23 facilities in the City to its fiber network (hereinafter referred to 24 as "Fiber Optic Network Extension"); and 25 WHEREAS, International Fiber Systems ("IFS") is a leading 26 manufacturer of fiber optic transceivers and the only manufacturer of 27 media converter transceivers that provide lifetime warranty on its 28products; and t a 1 y I WHEREAS, the City's Community Services & Water Department 2 has determined that, in order to facilitate the Fiber Optic Network 3 Extension, the City needs to purchase: (a) thirty (30) point-to-point 4 Data Transceivers manufactured by IFS; (b) twelve (12) RS-232 Self- 5 healing Ring/Fault-Tolerant Data Transceivers manufactured by IFS; 6 and, (c) three (3) 19" rack -mount card cages with twenty-six (26) 7 plates manufactured by IFS (hereinafter collectively referred to as 8 "Fiber Optic Transceivers"); and 9 WHEREAS, Graybar prepared a Quotation (Project No. 154- 10 02330414") dated April 4, 2003 (hereinafter the "Quotation"), a copy 11 of which is attached hereto as Exhibit "A" and made a part.hereof; and 12 WHEREAS, Graybar is a distributor of IFS products; and 13 WHEREAS, Graybar represents that it is qualified and capable 14 of furnishing Fiber Optic Transceivers meeting the specifications and 15 requirements of the Community Services & Water Department, as provided I fin the Quotation, and is willing to do so on the terms and conditions set forth below; and 17. 18 WHEREAS, the City desires to enter into an agreement with Graybar to provide for the purchase and delivery to the City of the 19 Fiber Optic Transceivers. 20 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 21 FORTH HEREIN: 22 1. Purchase. Graybar agrees to sell and deliver the Fiber 23 Optic Transceivers meeting the specifications and requirements of the 24 Community Services & Water Department as described in detail in the 25 attached Exhibit "A." In the event of a conflict between the Quotation 26 and this Contract, the terms of this Contract shall prevail. 27 2. Time of Performance. Graybar's performance as 28 identified herein shall commence upon the signing of this Contract by -2- l both parties and shall end when Graybar has completed the transaction 2 as set forth herein, unless otherwise terminated or extended. 3 3. Price. Consistent with the Quotation, Graybar agrees 4 to sell and deliver to the City (a) thirty (30) point-to-point Data 5 Transceivers manufactured by IFS; (b) twelve (12) RS-232 Self -healing 61 Ring/Fault-Tolerant Data Transceivers manufactured by IFS; and (c) 7 three (3) 19" rack -mount card cages with twenty-six (26) plates 8 manufactured by IFS for the total not to exceed sum of Forty -Six 9 Thousand Nine Hundred Three Dollars and Twenty -Five Cents ($46,903.25) 10 plus tax and shipping. 11 4. Payment Terms. City agrees to pay Graybar net thirty 12 (30) days after City's receipt of an invoice, delivery, and City's 13 acceptance of the Fiber Optic Transceivers, the total amount due under 14 the Contract. 15 5. Change and Extra Services. City reserves the right to 16 request changes in the equipment design, delivery dates, or additions 17 to or deletions from the equipment purchased from Graybar. All such 18 changes shall be incorporated in written change orders executed by 19 City and Graybar and shall specify the changes ordered and the 20 adjustment of prices, delivery schedules and warranties. Any 21 equipment or services added under this section shall be executed under 22 all applicable conditions of this Contract. No claim for additional 23 compensation or extension of time shall be recognized unless contained 24 in a duly executed change order. 25 6. Cancellation/Default. In the event that Graybar 26 commits a breach of a material condition of this Contract, City shall 27notify Graybar in writing of said breach and if Graybar has not cured 28 or begun reasonable efforts to cure after fifteen (15) days of receipt -3- I of said notice, and fails to diligently pursue corrective action, City 2 shall have the right to cancel this Contract for cause based on 3 Graybar's default. Graybar shall be responsible for any direct costs 4 due to City's re -procurement of the equivalent of the equipment or 5 services cancelled from Graybar. Graybar's liability for these excess 6 costs shall not exceed the value of the Purchase Order. 7 7. Confidential Information. 8 A. Access to Confidential Information. City may 9 provide Graybar and/or its subcontractor with, or allow Graybar access 10 to, certain information not available to the public concerning City, 11 or businesses located in City. The information may include company 12 information, taxes, sales, value of assets, or other such information. 13 All such information shall be known as "Confidential Information" and 14 may not be used to circumvent the responsibility of either party to 15 this Contract. 16 B. No Disclosure. Except as expressly permitted, 17 Graybar and/or its subcontractor shall not disclose, permit the 18 disclosure of, release, disseminate, or transfer, whether orally or by 19 any other means,.any part of such Confidential Information to any 20 other person or entity, whether corporate, governmental, or 21 individual, without the express prior written consent of an authorized 22 representative of City. Graybar and/or its subcontractor shall return 23 any written Confidential Information and all copies made of such items 24 to City upon City's written request, but in any event not later than 25 the date that Graybar has performed all services to be performed 26 pursuant to this Contract. Graybar hereby agrees that such 27 Confidential Information and any documents provided may be used by 28 Graybar and/or its subcontractor only as authorized by the City. -4- I Graybar shall include a contract provision in its contract with 2 subcontractors that binds the subcontractors to this non -disclosure 3 requirement. Graybar shall take reasonable measures to avoid any 4 disclosure of any such Confidential Information to any unauthorized 5 person. 6 C. Court Ordered Disclosure. Graybar shall 7 immediately notify City of any court order or subpoena requiring 8 disclosure of Confidential Information, and shall cooperate with 9 City's legal counsel in responding to any such order or subpoena. 10 Graybar may only disclose Confidential Information required to be III disclosed pursuant to court order or subpoena after legal counsel has 121 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, City shall be entitled to a temporary 15 and permanent injunction by a court of competent jurisdiction against .161 any breach or threatened breach of the Confidential Information 171 provisions of this Agreement. Graybar acknowledges that in case of 18 such breach or threatened breach of said provisions, City would have 19 no adequate remedy at law. 20 8. Warranties. Graybar warrants title to the Fiber Optic 21 Transceivers purchased hereunder and any part thereof to be free of 22 any claim of any security interest, lien or any encumbrance. Graybar 23 also warrants that the equipment will be delivered new and shall be 24 free from defects in material and workmanship. All manufacturers' 25 lifetime warranties, any warranties typically provided by IFS, and any 26 other warranties made applicable by law shall apply to the City's 27 purchase of the Fiber Optic Transceivers. 28 9. Compliance with Laws. Graybar shall strictly observe -5- and comply with all applicable federal, state, and local laws, ordinances and regulations governing this sale, including but not limited to any permit or license requirements of the United States Department of Commerce, as well as any laws of the United States of America. 10. Governing Law. The validity, interpretation and performance of this Contract shall be controlled and construed under the laws of the State of California. 11. Forum Selection. Any action brought relating to this Contract shall be brought and held exclusively in a State Court in the County of Los Angeles, California. 12. Notices. Notices to the parties, unless otherwise requested in writing, shall be sent to: City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 4305 SANTA FE AVENUE VERNON, CA 90058-0805 Graybar: GRAYBAR ELECTRIC COMPANY, INC. ATTN: KARLA MARQUIS 383 S. CHERYL LANE WALNUT, CA 91789 13. General Provisions. A. Independent Contractor. At all times during the term of this Contract, Graybar shall be an independent contractor and shall not be an employee of the City. The City shall have the right to control Graybar only insofar as the results of Graybar's services rendered pursuant to this Contract; however, the City shall not have the right to control the means by which Graybar accomplishes services rendered pursuant to the Contract except to the extent that such I services involve the use of City property or Confidential Information. 2 B. Graybar Not Agent. Except as the City may specify 3 in writing, Graybar shall have no authority, express or implied, to 4 act on behalf of the City in any capacity whatsoever as an agent. 5 Graybar shall have no authority, expressed or implied, pursuant to 6 this Contract to bind the City to any obligation whatsoever. 7 C. Indemnification. Graybar shall indemnify, defend, 8 protect and hold the City and its officers, agents and employees, free 9 and harmless from and against any and all claims, demands, losses, 10 damages, liabilities, fines, charges, penalties, orders, judgments and 11 all costs -and expenses incurred in connection therewith, including 12 reasonable attorney's fees and costs of defense arising out of or 13 attributable to the negligent or wrongful acts of Graybar or its 14 subcontractors, employees or agents in the -performance of services 15 under this Contract, except to the extent arising from or caused by 16 the sole negligence or willful misconduct of the City, its officers, 17 agents or employees. 18 D. Insurance. Graybar agrees to provide insurance in 19 the amounts and forms specified in Exhibit "B," which is attached 20 hereto.and made a part hereof by reference. Comparable coverage shall 21 be provided for each subcontractor used in the performance of this 22 Contract. Graybar shall submit to the City documentation indicating 23 compliance with these minimum requirements no less than one (1) day 24 prior to the beginning of performance under this Contract. Graybar 25 shall not commence performance of its services under this Contract 26 until the above insurance has been obtained and proof of insurance has 27 been filed with and approved by the City. 28 E. Assignment and Subcontracting Prohibited. No -7- I party to this Contract may assign or subcontract any right or 2 obligation pursuant to this Contract except as provided for in the 3 Quotation or with the express written consent of the other party. Any 4 other attempted or purported assignment of any right or obligation 5 pursuant to this Contract shall be void and of no effect. 6 F. Entire Agreement. This Contract constitutes the 7 complete and final expression of the agreement of the parties and is 8 intended as a complete and exclusive statement of the terms of their 91 agreement and supersedes all prior and contemporaneous offers, 10 promises, representations, negotiations, discussions, communications 11 and agreements which may have been made in connection with the subject 12 matter hereof. All exhibits are incorporated by reference. Graybar 13 represents that in entering into this Contract it has not relied on 14 any previous representations or understandings of any kind or nature. 15 G. Partial Invalidity. Wherever possible, each. 16 provision hereof will be interpreted in such manner as to be effective 17 and valid under applicable law, but in case any one or more of the 18 provisions contained herein will, for any reason, be held to be 19 invalid, illegal or unenforceable in any respect, such provision will 20 be ineffective to the extent, but only to the extent of such 21 invalidity, illegality or unenforceability without invalidating the 22 remainder of such provision or provisions or any other provision 23 hereof, unless such a construction would be unreasonable or contrary 24 to the parties' intent as expressed in this Contract. 25 H. Time of the Essence. Time is of the essence in 26 the performance of this Contract and of each and every provision 27 hereof. 28 I. Risk of Loss. Risk of loss or damage shall pass -8- 2 3 4 5 6 8 9 10 11 12 13I 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to the City upon delivery FOB the City. J. Benefit of Agreement. This Contract shall bind and benefit the parties hereto and their heirs, successors, and permitted assigns. K. Waiver. Any waiver at any time by either party of its rights with respect to a default under this Contract, or with respect to any other matters arising in connection with this Contract, shall not be deemed a waiver with respect to subsequent default or other matter. L. Amendment. All changes or modifications to this Contract shall be in writing stating that it is an amendment to this Contract and shall be signed by both parties or their duly authorized agents. This Contract shall not be modified through course of dealing, usage or trade. M. Force Majeure. Neither party shall be considered to be in default in any of its obligations under this Contract when a failure of performance shall be due to an uncontrollable force. The terms "uncontrollable force" shall mean any cause beyond the control of the party affected, including, but not restricted to, flood, earthquake, storm, fire, lightening, epidemic, war, riot, civil disturbance or disobedience, sabotage, federal, state, or municipal action, statute, ordinance, or regulation, embargoes or the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by exercise to due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Contract by reason of an uncontrollable force, shall give written notice within five (5) business days of such fact to the other party 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 and shall exercise due diligence to remove such inability with all reasonable dispatch. IN WITNESS WHEREOF, the parties have caused this Contract 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 orney CITY OF VERNON L ONIS C. MALBtJRG, M yor GRAYBAR ELECTRIC COMPANY, INC. By: itle:Grt/1 Title: -10- THOMAS F. DowD VICE PRESIDENT -SECRETARY AND GENERAL COUNSEL TEL: 314-512-9221 FAX: 314-512-9445 Gray U —a R 34 NORTH MERAMEC AVENUE P.O. BOX 7231 ST. LOUIS, MO 63177 SECRETARY'S CERTIFICATE I, T. F. Dowd, hereby certify that I am Secretary of Graybar Electric Company, Inc., a New York corporation, with its principal office at Clayton, Missouri; that as such I am custodian of the records and official seal of said Corporation, and that the following is a true and correct copy of a resolution duly adopted by the Board of Directors of said Corporation at a meeting held in Glendale Heights, Illinois on September 12, 1996: Upon motion duly made and seconded, the following resolution was unanimously adopted: "RESOLVED, that the Area Manager, Branch Manager, Manager-Comm/Data Sales or Manager -Customer Service is hereby authorized to sign and/or execute in the name and on behalf of the Corporation: 1) Formal Contracts, including applicable performance bonds, arising from invitation, bid, and acceptance forms which become orders upon acceptance by buyer on which the total amount does not exceed $200,000. 2) Other Proposals and Bids where the amount does not exceed $400,000." Further, that the foregoing meeting was convened and the proceedings held in accordance with the law and the charter and by-laws of said Corporation, and have not been revoked, annulled, or amended. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Corporation the 4th day of September, 2001. Secretary of GRAYBAR ELECTRIC COMPANY, INC. 5-20 (Rev. 9/12/96) (Branch - Contracts, Bids, etc.) Page: 1 of 1 383 S CHERYL LANE WALNUT, CA 91799 Phone:916-787-3423 Fax:916-787-3599 To: VERNON, CITY OF Attn : Ali Nour Phone: 323-583-8811 Fax: 323-826-1435 Email : ANour@ci.vemon.ca.us Date: 4/4/2003 Project Name: INTL FIBER SYSTEMS Graybar Project # : 154-02330414 Reference : Quoted Date: 4/4/2003 Quotation Expires In : 30 DAYS Graybar Contact: ARLETA WILKINSON Email : arieta.wilkinson@gbe.com Proposal We Appreciate Your Inquiry And Take Pleasure In Responding As Follows: ITEM QTY SUPPLIER CATALOG # DESCRIPTION CD UNIT PRICE TOTAL Miscellaneous Section 15 (IFS) D9130E-B N 852.27 E 12,784.05 * 15 (IFS) D9130E-R3 N 795.45 E 11,931.75 2 (IFS) D19130SHR-R3 N 1,704.55 E 3,409.10 * 10 (IFS) D19130SHR N 1,704.55 E 17,045.50 * 3 (IFS) R3 RACK N 454.55 E 1,363.65 26 (IFS) 113-13P N 14.20 E 369.20 Miscellaneous Sub total: 46,903.25 FOB: Shipping point unless noted. Estimated freight cost of $SIGNED : 300 to ship UPS Ground. Delivery : FINANCING OPTIONS Tax at 8.25% : 3,869.52 TOTAL: 50,772.77 $1,586.27 per month for 36 months $1,051.10 per month for 60 months The monthly payments shown are an estimated cost to finance the listed material through Graybar Financial Services (GFS) and may not include applicable taxes, installation and freight. Two payments are required in advance. The material may be purchased for $1 at lease temtination. Subject to GFS credit approval. Rates may change after 90 days from the date of this quote. Call GFS @ 1-800-241-7408 for other financing options. 24 HOUR EMERGENCY www.GFZAYBAR.com PHONE # 1-800-GRAYBAR ' - Taxable Hems Graybar Electric Company's Standard Terms and Conditions of Sale Apply -Terms and Conditions are Available Upon Request VISA DISCOVER MASTER CARD AMERICAN EXPRESS t Page: 1 of 1 GRAYBAR TERMS AND CONDITIONS: 1. ACCEPTANCE OF ORDER; TERMINATION - Acceptance of any order is subject to credit approval and acceptance of order by Seller and Seller's supplier. If Buyer's credit becomes unsatisfactory to Seller, Seller reserves the right to terminate upon notice to Buyer and without liability to Seller. 2. PRICES AND SHIPMENTS - Unless otherwise quoted, prices shall be those in effect at time of shipment 3. PAYMENT TERMS - All discountable invoices are eligible for cash discount if paid by the 1 Oth of the month following billing date. All net invoices are due on the 15th of month following billing. As a condition of the sales agreement, a monthly service charge of the lesser of 1-1/2% or the maximum permitted by law may be added to all accounts not paid by net -due date. Pro Card, Visa, Mastercard, American Express and Discover credit cards are accepted for payment at the point of purchase only. 4. RETURN OF GOODS - Credit will be allowed for goods returned with prior approval. A deduction will be made from credits issued to cover cost of handling. 5. TAXES - Pries shown do not include sales or other taxes imposed on the sale of goods. Taxes now or hereafter imposed upon sales or shipments will be added to the purchase price. Buyer agrees to reimburse Seller for any such tax or provide Seller with acceptable tax exemption certificate. 6. DELAY IN DELIVERY - Seller is not to be accountable for delays in delivery occasioned by acts of God or other circumstances over which Seller has no direct control. Factory shipment or delivery dates are the best estimates of our suppliers, and in no case shall Seller be liable for any consequential or special damages arising from any delay in delivery. 7. WARRANTIES - Seller warrants that all goods sold are free of any security interest and will make available to Buyer all transferable warranties made to Seller by the manufacturer of the goods. SELLER MAKES NO OTHER EXPRESS OR IMPLIED WARRANTIES, AND SPECIFICALLY MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PURPOSE. UNLESS OTHERWISE AGREED IN WRITING BY AN AUTHORIZED REPRESENTATIVE OF SELLER, PRODUCTS SOLD HEREUNDER ARE NOT INTENDED FOR USE IN OR IN CONNECTION WITH A NUCLEAR FACILITY. -r•- •••�••• �• -•� y�� u�� vulwwsa Price, an at Wieners option, anti In no case shall Seller be liable for incidental or consequential damage. In addition, claims for shortages, other than loss in transit, must be made in writing not more than five (5) days after receipt of shipment. 9. WAIVER - The failure of Seller to insist upon the performance of any of the terms or conditions of this contract or to exercise any right hereunder shall not be deemed to be a waiver of such terms, conditions or rights in the future, nor shall it be deemed to be a waiver of any other term, condition, or right under this contract. 11. REELS - When the Seller ships returnable reels, a reel deposit will be included in the invoice. The Buyer should contact the nearest Graybar service location to return reels. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT B INSURANCE SCHEDULE Graybar 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 BodilyInju!y 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 H. General General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (if applicable) $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 Contractual Liability $1,000,000 $2,000,000 $1,000,000 Umbrella 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: 1. 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 Contract. 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. Only certification of the following proofs will 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 B