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Resolution No. 8462Y f` Y 1 2 3 4 5 6 7 8 9 10 low 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8462 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES BY AND BETWEEN THE CITY OF VERNON AND R. W. BECK, INC. FOR TELECOMMUNICATION SERVICES FEASIBILITY STUDY WHEREAS, the City of Vernon has installed a fiber optic backbone ring that traverses the existing City right-of-way; and WHEREAS, the fiber optic ring consists of 96 strands of fiber, fifty percent of which is reserved for the City's use; and WHEREAS, the fiber optic ring is used to connect various City operations; and WHEREAS, on October 23, 2002, the City Council of the City of Vernon adopted Resolution No. 8072 approving an agreement with R. W. Beck, Inc. ("Beck") to perform an evaluation of market potential, a feasibility assessment opinion of broadband technologies, and a financial pro forma analysis; and WHEREAS, Beck is a licensed engineering firm which has specialized knowledge and experience in the areas of energy, water resources, solid waste and telecommunications; and WHEREAS, the City desires to build a telecommunications network that can provide internet access services to interested businesses in Vernon (the "Internet Project") and needs the services of a consultant for Internet Service Provider operations and optical network start-up assistance for the Internet Project; and WHEREAS, the City believes that Beck is the most qualified firm to perform the required services relating to the Internet Project that meets specifications and requirements of the Light & Power 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 Department; and WHEREAS, on June 1, 2004, the Finance Committee considered the recommendation of Bruce V. Malkenhorst, Director of Finance, dated May 26, 2004, that an agreement be entered into with Beck to provide the Internet Project services; 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 an agreement with Beck for the Internet Project to enhance services provided to the Vernon community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: 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 Agreement for Consulting Services with R. W. Beck, Inc., a copy of which is attached hereto and incorporated by reference as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Agreement 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: R. W. Beck, Inc. Attn. Steven Brodsky, Executive Consultant 1801 California St., Ste. 2800 Denver, CO 80202 - 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 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 30th day of June, 2004. ATTEST: r BRUCE V. MALKENHORST, City Clerk EONIS �MALBURayor - 3 - r 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. 8462, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Wednesday, June 30, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 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 AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT is made, entered into and executed in duplicate originals, either copy of which may be considered and used as X the original hereof for all purposes, as of this day of June, 2004, in the City of Vernon, County of Los Angeles, California, BY AND BETWEEN THE CITY OF VERNON, a municipal', corporation, (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058-0805 AND R. W. BECK, INC., a Washington Corporation, (hereinafter referred to as "Consultant") 1801 California St., Ste. 2800 Denver, CO 80202 WHEREAS, the City has installed a fiber optic backbone ring that traverses the existing City right-of-way; and WHEREAS, the fiber optic ring consists of 96 strands of fiber, fifty percent of which is reserved for the City's use; and WHEREAS, the fiber optic ring is used to connect various City operations; and WHEREAS, the City is interested in developing the other half of the fiber optic ring for use by the City's inhabitants; and WHEREAS, Consultant performed for the City an evaluation of market potential, a feasibility assessment opinion of broadband technologies, and a financial pro forma analysis pursuant to an Agreement for Consulting Services dated October 24, 2002; and WHEREAS, the City desires to build a telecommunications network that can provide internet access services to interested X 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 businesses in Vernon (the "Internet Project") and needs the services of a consultant for Internet Service Provider ("ISP") operations and optical network start-up assistance for the Internet Project; and WHEREAS, Consultant submitted a proposal to the City dated April 15, 2004, (hereinafter referred to as the "Proposal"), a copy of which is attached hereto and incorporated by reference as Exhibit A, which includes a description of the proposed services and the costs of said services; and WHEREAS, Partner Communications LLC ("Partner") is a subcontractor and subsidiary of Consultant, which owns ten percent (100) of Partner and is a member of the Board of Directors of Partner; and WHEREAS, Consultant represents that it and its subcontractor, Partner, are qualified to perform such services under this Agreement for Consulting Services (hereinafter referred to as "Agreement"); and WHEREAS, the City desires to engage Consultant for the services hereinafter described. NOW, THEREFORE, BE IT RESOLVED, THE PARTIES HERE DO MUTUALLY AGREE AS SET FORTH HEREIN: 1. SCOPE OF SERVICES. Consultant shall perform its services under the general supervision of the Chief Executive Officer of the Light and Power (Department ("CEO") and Consultant's scope of services shall be assigned by the CEO and include start-up assistance and Continuing Support (Optional), as identified in Exhibit A. It is understood and agreed that in the event of a conflict between the Proposal and this Agreement, the terms of this Agreement (shall prevail. - 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 2. PROGRESS REPORTS. Consultant shall submit progress reports twice a month until the work hereunder is completed. These progress reports will be sent via e-mail with a follow-up conference call. Consultant shall meet with City staff as described in the Proposal, upon City's request, or as needed, in order to provide reports or information concerning the services being performed by Consultant under this Agreement. Any other face-to-face meetings not specified in the Proposal will be compensated on a time and materials basis pursuant to Section 6 of the Agreement. 3. TIME OF PERFORMANCE. Consultant's services shall commence upon the signing of the Agreement by both parties and shall end when Consultant has completed the work on the items according to the work schedule contained in Consultant's Proposal, unless the Agreement is otherwise terminated according to Section 9 of this Agreement or extended upon the written agreement of both parties to this Agreement. Completion of the services to be performed by Consultant is expected to be no later than May 31, 2005. 4. COMPENSATION. A. Consulting Costs. 1. The City shall pay Consultant a total fixed - price not to exceed Thirty -Five Thousand Dollars and No Cents ($35,000.00) for completion of Task 1 (the ISP operations, optical network start-up assistance and technical support services) under this Agreement; and 2. The City shall pay Consultant a price not to exceed Twelve Thousand Dollars and No Cents ($12,000.00) for Optional - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Norm 18 19 20 21 22 23 24 25 26 27 28 Task 2 under this Agreement. The option Task 2 price is evenly divided into six (6) retaining months of services should the City choose to seek the Consultant's services beginning thirty (30) days lafter the completion of Task 1. B. Other Expenses. Any other expenses not identified in the Agreement may only be billed if advance written approval has been obtained from the City Administrator. 5. METHOD OF PAYMENT. A. City agrees to pay Consultant progress payments upon the receipt of invoices following the occurrence of certain activities and City's acceptance of the Network Project as follows: 1. Ten Thousand Five Hundred Dollars and No Cents ($10,500.00), or thirty percent (30%), after full execution of the Agreement; 2. Ten Thousand Five Hundred Dollars and No Cents ($10,500.00), or thirty percent (30%), after the Document and Procedure manual deliverables are completed and accepted by the City; and 3. Fourteen Thousand Dollars and No Cents ($14,000.00), or forty percent (40%), after Consultant has received the City's acceptance of the completed Network Project. The City agrees to pay Consultant within thirty (30) days after City's receipt and acceptance of the Network Project tasks and the City's receipt of an invoice from Consultant. B. With respect to Continuing Support, Consultant shall submit within thirty (30) days after the last day of any month in which services have been performed or costs incurred hereunder an invoice to City for payment. Consultant shall be responsible for paying any subcontractors - 4 - 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 used in the performance of this Agreement. Subcontractors shall not bill City directly. Payment of each invoice shall be made after acceptance and approval by City within thirty (30) days of receipt. City's approval of the invoice shall not be unreasonably withheld. 6. CHANGES AND EXTRA SERVICES. The City reserves the right to request changes in the services to be performed by Consultant. All such changes shall be incorporated in written change orders executed by the City and Consultant that shall specify the changes ordered and the parties shall mutually negotiate an adjustment of compensation and completion time if required. Any services added to the scope of this Agreement by a change order shall be executed under all applicable conditions of this Agreement. No claim for additional compensation for services or extension of time shall be recognized unless contained in a duly executed change order. If Consultant is delayed in performing its services under the Force Majeure provisions of this Agreement, then the Agreement may be equitably adjusted, if necessary, to compensate Consultant for any additional costs due to the delay. 7. STANDARD OF CARE. Consultant and/or its subcontractor shall perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same or similar services. 8. PRODUCTS OF CONSULTING. All reports, plans, data, studies, maps, drawings, models, - 5 - 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 photographs, documents and other writings prepared by and for Consultant, its officers, employees, agents and subcontractors in the course of implementing this Agreement, with the exception of working notes, internal documents and Confidential Information provided by 1businesses located in City, shall be considered the property of City. lConsultant shall deliver such documents and materials to the City as they are generated; however, Consultant may take and retain copies of said documents and materials that are not Confidential Information, as identified by City. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the City to the public and Consultant agrees that such documents shall not be available to any individual or organization without the written consent of the City prior to such release. No reports, maps, or other documents produced in whole or in part under this Agreement, with the exception of the survey forms, shall be the subject of an application for copyright by or on behalf of Consultant. If City, its officers, agents or employees, release Consultant -prepared documents to a third party without Consultant's prior written consent, or changes or uses the Work Products other than as intended hereunder, (a) City does so at its sole risk and discretion, (b) Consultant shall not be liable for any claims or damages resulting from the change or use or connected with the release or any third party's use of the documents and (c) City shall indemnify, defend and hold Consultant harmless from any and all claims or damages related to the release, change or reuse. - 6 - 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 9. TERMINATION. This Agreement may be terminated by the City without cause on thirty (30) days written notice to Consultant. Consultant shall be entitled to the compensation earned by it prior to the date of the termination notice, computed pro rata up to and including that date, plus compensation for work performed during the thirty (30) day notice period and authorized in the termination notice. Consultant may terminate this Agreement on ten (10) days written notice to the City if the City fails to pay Consultant's invoice within forty-five (45) days of receipt by City; provided, that the Agreement shall not be terminated if the City issues payment within said ten (10) day notice period. In the event of termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by Consultant under this Agreement shall, at the option of City, become its property. Notwithstanding the foregoing, Consultant shall not be relieved of liability to the City for damage sustained by City by virtue of any breach of this Agreement by Consultant. 10. 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 Consultant: R. W. BECK, INC. ATTN: STEVEN BRODSKY, EXECUTIVE CONSULTANT 1801 CALIFORNIA STREET, SUITE 2800 DENVER, CO 80202 - 7 - 1 2 3 4 5 6 ri RE 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11. CONFIDENTIAL INFORMATION. A. Access to Confidential Information. The City may provide Consultant and/or its subcontractor with, or allow Consultant access to, certain information deemed relevant by City, not available to the public concerning the City, or businesses located in the City. The information may include company information, taxes, sales, value of assets, utility usage, or other such information. All such information shall be known as "Confidential Information" and shall not be used to circumvent the responsibility of either party to this Agreement. B. No Disclosure. Except as expressly permitted, Consultant and/or its subcontractor shall not disclose, permit the disclosure of, release, disseminate, or transfer, whether orally or by any other means, any part of such Confidential Information to any other person or entity, whether corporate, governmental, or individual, without the express prior written consent of an authorized representative of the City. Consultant and/or its subcontractor shall return any and all written Confidential Information and all copies made of such items to the City upon the City's written request, but in any event not later than the date that Consultant and/or its subcontractor has performed all services to be performed pursuant to this Agreement. However, Consultant may retain one copy of the Confidential Information for its legal records. Consultant hereby agrees that such Confidential Information and any documents provided may be used by Consultant and/or its subcontractor only as authorized by the City. Consultant's contracts with subcontractors shall include provisions that bind the subcontractors to this non -disclosure requirement. Consultant shall - 8 - 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 take reasonable measures to avoid any disclosure of any such Confidential Information to any unauthorized person. Consultant will not be prohibited from disclosing or fusing any information which; (1) is or becomes generally available to the public other than as a result of a disclosure by Consultant; (2) was already in Consultant's possession before any disclosure of the Information by the City; (3) has been or is obtained by Consultant from a third party (other than one acting on behalf of the City) who Consultant has no reason to believe is not lawfully in possession of the Confidential Information and who Consultant has no reason to believe is in violation of any contractual, legal or fiduciary obligation to the City with respect to the Confidential Information; or (4) is independently developed by Consultant without breaching confidentiality. C. Court Ordered Disclosure. Consultant shall immediately notify the City of any court order or subpoena or other directive of a court, administrative agency, quasi-judicial body or arbitration panel requiring disclosure of Confidential Information, and shall cooperate with legal counsel in the appeal or challenge of any such order or subpoena and City shall reimburse Consultant for such assistance on a time and materials basis. Consultant may only disclose Confidential Information required to be disclosed pursuant to a valid court order or subpoena after legal counsel has exhausted any lawful and timely appeal or challenge, to the extent that such appeal or challenge does not hinder Consultant from its obligations under (such court order or subpoena. - 9 - 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 D. Remedies. In addition to any other remedies that it may have at law or in equity, City shall be entitled to a temporary and permanent injunction by a court of competent jurisdiction against any breach or threatened breach of the Confidential Information provisions of this Agreement. Consultant acknowledges that in case of such breach or threatened breach of said provisions, the City would have no adequate remedy at law. 12. GENERAL PROVISIONS. A. Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City. The City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement. However, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to the Agreement except to the extent that such services involve the use of City property or Confidential Information. B. Consultant Not Agent. Except as the City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, to bind the City to any obligation whatsoever. C. Indemnification. The Consultant shall indemnify, defend, protect and hold harmless the City and its officers, agents and employees, from any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, orders, or judgments which result in any injury or death, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs - 10 - 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 of defense arising out of or attributable to the negligent or wrongful acts of Consultant or its subcontractors, employees or agents in the performance of services under this Agreement, except to the extent arising from or caused by the active negligence or willful misconduct of the City, its officers, agents or employees. For such matters not involving personal injury or death, Consultant shall not be required to defend the City, but will pay any and all related attorney's fees and costs which the City may incur in defending such matters, if the lConsultant is alleged to have been negligent in the performance of the services under this Agreement. D. Insurance. Prior to commencing work hereunder, Consultant shall provide City with proof of insurance providing and maintaining the coverage and endorsements set forth in the Insurance Schedule attached hereto and incorporated by reference as Exhibit B. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. If Consultant fails to provide proof of insurance coverage as specified above, the City may, at its sole discretion, terminate this Agreement immediately. Consultant shall not permit Partner or any other subcontractor or vendor to perform work on City premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has worker's compensation coverage. It Consultant employs subcontractors as part of the services rendered, Consultant's protective coverage is required. Consultant may include Partner and any other subcontractors as an additional insured under its own policy or shall furnish separate insurance for Partner and any 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 other subcontractor, that meets the requirements set forth herein. E. Limit of Liability. To the extent permitted by law, the total liability of Consultant, its officers, directors, shareholders, employees and subconsultants to City for any and all claims arising out of this Agreement, including attorneys' fees, and whether caused by negligence, errors, omissions, strict liability, breach of contract or contribution, or indemnity claims based on third party claims, shall not exceed One Million Dollars ($1,000,000.00). F. Conseauential Damaaes. In no event and under no circumstances shall Consultant be liable to City for any interest, loss of anticipated revenues, earnings, profits, increased expense of operation or construction, loss by reason of shutdown or non -operation due to late completion or otherwise, or for any other economic, consequential, indirect or general or special damages. G. Governing Law. The validity, interpretation and performance of this Agreement shall be controlled and construed under the laws of the State of California as enacted and in force at the time this Agreement is fully executed. H. Assignment and Subcontractinq Prohibited. With �Ithe exception of the work to be performed by Partner, Consultant may not assign or subcontract any right or obligation pursuant to this Agreement without the express written consent of City. Any other attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. I. Amendments. All changes or modifications to this Agreement shall be in writing stating that it is an amendment to this Agreement and shall be signed by both parties or their duly authorized agents. This Agreement shall not be modified through course of - 12 - 1 2 3 4 5 6 7 8 91 10 11 12 13 NXIM 15 16 17 18 19 20 21 22 23 24 25 26 27 WE (dealing, usage or trade. J. Entire Agreement. This Agreement constitutes the complete and final expression of the agreement of the parties and is intended as a complete and exclusive statement of the terms of their Jagreements and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. All exhibits are incorporated by reference. Consultant represents that in entering into this Agreement, it has not relied on any previous representations or understandings of any kind or nature. K. Benefit of Agreement. This Agreement shall bind and benefit the parties hereto and their heirs, successors, and permitted assigns. L. Forum Selection. Any action brought relating to this Agreement shall be brought and held exclusively in a State Court in the County of Los Angeles, California. M. Recitals. All recitals are incorporated by reference. N. Waiver. Any waiver at any time by either party of its rights with respect to a default under this Agreement, or with respect to_any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to subsequent default or other matter. O. Attorney's Fees. In the event that it becomes necessary for either party to this Agreement to enforce any of the provisions of this Agreement, the parties agree that a court of competent jurisdiction may determine and fix reasonable attorney's fees to be paid to the successful litigant. - 13 - l P. Force Majeure. Neither Party shall be considered 2 in to be in default in any of its obligations under this Contract when 3 a failure of performance shall be due to an uncontrollable force. The 4 term "uncontrollable force" shall mean any cause beyond the control of 5 the party affected, including, but not restricted to, flood, 6 earthquake, storm, fire, lightening, epidemic, war, riot, civil 7 disturbance or disobedience, labor dispute, labor material shortage, 8 sabotage, federal, state, or municipal action, statute, ordinance, or 9 regulation, embargoes of the United States Government or any other 10 government, which by exercise of due diligence such party could not 11 reasonably have been expected to avoid and by exercise of due 12 diligence has been unable to overcome. Either party rendered unable 13 to fulfill any of its obligations under this Agreement by reason of an 14 uncontrollable force, shall give written notice within five (5) 15 Business Days of such fact to the other party and shall exercise due 16 diligence to remove such inability with all reasonable dispatch. 17 Q. Information Provided by Others. City shall 18 provide to Consultant in a timely manner any information Consultant 19 indicates is needed to perform the services hereunder. Consultant may 20 rely on the accuracy of information provided by City and its 21 representatives. 22 R. Opinions of Cost. Consultant does not control the 23 cost of labor, materials, equipment or services furnished by others, 24 nor does it control pricing factors used by others to accommodate 25 inflation, competitive bidding or market conditions. Consultant 26 estimates of operation expenses or construction costs represent its 27 best judgment as an experienced and qualified professional and are not 28 a guarantee of cost. This section does not apply to the cost of 14 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 Consultant performing the scope of services. 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: ERIC T. FRESCH, City Attorney By: CITY OF VERNON LEONIS C. MALBURG, Mayor R. W. BECK, INC. B By :e_' Title: The signatures required of a corporation are as follows: X First Signature - the chairman of the board, the president or any vice president; an X Second Signature - the corporate secretary, any assistant secretary, the chief financial officer or any assistant treasurer. If a person holds more than one office, e.g., vice president and secretary, that person can sign the agreement twice if both capacities are identified. - 15 - EXHIBIT It" R. W. BECK, INC. CERTIFICATION 1. I certify that on March 30, 2004, R. W. Beck, Inc. though its Board of Directors adopted its Amended Authorizations Policy for delegation of authority to commit the Corporation and to execute documents for the Corporation. 2. All officers of the Corporation are authorized within the scope of their designated or delegated authority, as defined in the Amended Authorizations Policy, to execute or delegate the execution of documents to bind the Corporation. 3. Keith J. Platte was appointed Vice President of R. W. Beck, Inc. on December 1, 1997 and as part of his delegated authority under the Amended Authorizations Policy he may co-sign contracts valued up to $500,000. 4. Joseph A. Mancinelli was appointed Client Services Director of R. W. Beck, Inc. and as part of his delegated authority under the Amended Authorizations Policy he may co-sign contracts valued up to $500,000. DATED: June 21, 2004. R. W. BECK, INC. by Everette E. Chartier, Vice President April 15 2004 via Federal Express Mr. Ali Nourmohamadian, P.E. Fiber Optic & Traffic Systems Manager City of Vernon 4305 South Santa Fe Avenue Vernon, CA 90058 Subject: Proposal for ISP Operations and Optical Network Start-up Assistance Dear Mr. Nourmohamadian: R. W. Beck, Inc. ("R. W. Beck'), along with its sub -consultant Partner Communications LLC, is pleased to offer the following proposal for consulting services for Internet Service Provider ("ISP") operations and optical network start-up assistance to the City of Vernon ("City"). Scope of Work Start Up Assistance The primary deliverable for this engagement is the ongoing support and assistance the City will need as the project unfolds, from the time the City enters into an agreement with R. W. Beck to 30 days after the City signs off on the acceptance (with the vendor) of the project.. This specifically includes the following assistance: ■ Provision of technical and operational support for all issues that may come up during the implementation and installation of the network ■ Development of the ISP product pricing ■ Development of policies including but not limited to Service Level Agreements ("SLA') ■ Assistance in negotiations and technical support with the prime vendor (SBC) ■ Assistance in negotiations and technical support with upstream ISPs and/or LADPW This task includes four consultant visits to the City: 1) two days for the initial vendor kick-off/coordination meeting, 2) three days for document and procedure manual deliveries as well as mid -project vendor status verification, and 3) two days for vendor project completion verification and customer project acceptance. In addition to the three scheduled visits, a fourth visit (two days) will be included providing that it is scheduled at least one week in advance. Deliverables ■ Unlimited phone/email support for the entire installation phase ending after 30 days from the date the City signs off on the acceptance (with the vendor) of the project. J:\ BD-STDS\PRO\CONS\2007-VERNON, CITY OF\3P2007_041504.DOC 1801 California Street, Suite 2800 Denver, CO 80202 Phone (303) 299-5200 Fax (303) 297-2811 Ft Mr. Ali Nourmohamadian, P.E. April 15, 2004 Page 2 • Development of the ISP product pricing (DUE DATE is 30 days after the main vendor contract is established). ■ Development of policies including but not limited to SLAs (DUE DATE is 30 days after the main vendor contract is established). ■ ISP general procedures manual (DUE DATE is 30 days after the main vendor contract is established) ■ IP Addressing documentation (DUE DATE is 30 days after the main vendor contract is established) ■ Router/Switch provisioning procedures(DUE DATE is 30 days after the main vendor contract is established) Project Pricing and Terms ISP operations and optical network startup assistance Price: $35,000 fixed fee This price includes all travel and per diem costs for the scheduled on -site visit. Payment Terms: ■ 30 percent after contract signing ■ 30 percent after the Document and Procedure manual deliverables are completed. ■ 40 percent 30 days after the main vendor has received the City's sign -off on the completed project004 Continuing support (OPTIONAL) Should the City of Vernon wish to continue receiving technical support beyond 30 days after project acceptance, R. W Beck, via Partner Communications, will continue to furnish the same level of unlimited phone and email technical support for up to six months for an additional fee of $2,000 per month. Contract To expedite delivery of services, R. W. Beck would be pleased to sign a contract with the City with the same wording as our November 5, 2002 contract with the following substitutions and additions: 1. Substitution of the scope of services indicated above. 2. Substitution of the pricing and payment terms indicated above. l:\ BD-STDS\PRO\CONS\2007-VERNON, CITY OMP2007 041504.DOC Mr. Ali Nourmohamadian, P.E. April 15, 2004 Page 3 3. In the opening recitals, the addition of our subcontractor Partner Communications to the sixth recital. This would now read, "WHEREAS, Consultant represents that it and its subcontractor Partner Communications LLC are qualified to perform such services under this Agreement for Consulting Services. Please call me on (303) 299-5345 if you have any questions on this proposal. We look forward to continuing to assist the City of Vernon in this exciting telecommunications deployment! Sincerely, PL W. BECK, INC. J eph A. Manc' Client Services Director WTW/hm Wendy T. Warner Senior Director — Telecommunications ]:\ BD-STDS\PRO�CONS\2007-VERNON, CITY OF13P2007 041504.DOC EXHIBIT 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 EXHIBIT B INSURANCE SCHEDULE (CONSULTANT) Consultant 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 Hazards Automobile Liability Bodily Injury Property Damage Each Person Each Accident Each Accident 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. Liabilitv 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 Professional Liability $1,000,000 $1,000,000 $1,000,000 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 Agreement. 4. Such other endorsement as may be required by addendum hereto. EXHIBIT "B' SUPPORTING DOCUMENTS r 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 AGREEMENT FOR CONSULTING SERVICES 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 30t1+ day of June, 2004, in the City of Vernon, County of Los Angeles, California, BY AND BETWEEN THE CITY OF VERNON, a municipal corporation, (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058-0805 AND R. W. BECK, INC., a Washington Corporation, (hereinafter referred to as "Consultant") 1801 California St., Ste. 2800 Denver, CO 80202 T "T -M- - WHEREAS, the City has installed a fiber optic backbone ring that traverses the existing City right-of-way; and WHEREAS, the fiber optic ring consists of 96 strands of fiber, fifty percent of which is reserved for the City's use; and WHEREAS, the fiber optic ring is used to connect various City operations; and WHEREAS, the City is interested in developing the other half of the fiber optic ring for use by the City's inhabitants; and WHEREAS, Consultant performed for the City an evaluation of market potential, a feasibility assessment opinion of broadband technologies, and a financial pro forma analysis pursuant to an Agreement for Consulting Services dated October 24, 2002; and WHEREAS, the City desires to build a telecommunications network that can provide internet access services to interested 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 businesses in Vernon (the "Internet Project") and needs the services of a consultant for Internet Service Provider ("ISP") operations and optical network start-up assistance for the Internet Project; and WHEREAS, Consultant submitted a proposal to the City dated April 15, 2004, (hereinafter referred to as the "Proposal"), a copy of which is attached hereto and incorporated by reference as Exhibit A, which includes a description of the proposed services and the costs of said services; and WHEREAS, Partner Communications LLC ("Partner") is a 11subcontractor and subsidiary of Consultant, which owns ten percent (100) of Partner and is a member of the Board of Directors of Partner; 11 and WHEREAS, Consultant represents that it and its subcontractor, Partner, are qualified to perform such services under this Agreement for Consulting Services (hereinafter referred to as "Agreement"); and WHEREAS, the City desires to engage Consultant for the services hereinafter described. NOW, THEREFORE, BE IT RESOLVED, THE PARTIES HERE DO MUTUALLY (AGREE AS SET FORTH HEREIN: 1. SCOPE OF SERVICES. Consultant shall perform its services under the general supervision of the Chief Executive Officer of the Light and Power Department ("CEO") and Consultant's scope of services shall be assigned) by the CEO and include start-up assistance and Continuing Support (Optional), as identified in Exhibit A. It is understood and agreed that in the event of a conflict )between the Proposal and this Agreement, the terms of this Agreement shall prevail. - 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 2. PROGRESS REPORTS. Consultant shall submit progress reports twice a month until the work hereunder is completed. These progress reports will be sent via e-mail with a follow-up conference call. Consultant shall meet with City staff as described in the Proposal, upon City's request, or as needed, in order to provide reports or information concerning the services being performed by Consultant under this Agreement. Any other face-to-face meetings not specified in the Proposal will be compensated on a time and materials basis pursuant to Section 6 of the IlAgreement. 3. TIME OF PERFORMANCE. Consultant's services shall commence upon the signing of the Agreement by both parties and shall end when Consultant has completed the work on the items according to the work schedule contained in Consultant's Proposal, unless the Agreement is otherwise terminated according to Section 9 of this Agreement or extended upon the written agreement of both parties to this Agreement. Completion of the services to be performed by Consultant is expected to be no later than May 31, 2005. 4. COMPENSATION. A. Consulting Costs. 1. The City shall pay Consultant a total fixed - price not to exceed Thirty -Five Thousand Dollars and No Cents ($35,000.00) for completion of Task l (the ISP operations, optical network start-up assistance and technical support services) under this jAgreement; and 2. The City shall pay Consultant a price not to exceed Twelve Thousand Dollars and No Cents ($12,000.00) for Optional - 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 Task 2 under this Agreement. The option Task 2 price is evenly divided into six (6) retaining months of services should the City choose to seek the Consultant's services beginning thirty (30) days 11after the completion of Task 1. B. Other Expenses. Any other expenses not identified in the Agreement may only be billed if advance written approval has been obtained from the City Administrator. 5 METHOD OF PAYMENT. A. City agrees to pay Consultant progress payments upon the receipt of invoices following the occurrence of certain activities and City's acceptance of the Network Project as follows: 1. Ten Thousand Five Hundred Dollars and No Cents II($10,500.00), or thirty percent (30%), after full execution of the Agreement; 2. Ten Thousand Five Hundred Dollars and No Cents ($10,500.00), or thirty percent (30%), after the Document and Procedure manual deliverables are completed and accepted by the City; and 3. Fourteen Thousand Dollars and No Cents ($14,000.00), or forty percent (40%), after Consultant has received the City's acceptance of the completed Network Project. The City agrees to pay Consultant within thirty (30) days after City's receipt and acceptance of the Network Project tasks and the City's receipt of an invoice from Consultant. B. With respect to Continuing Support, Consultant shall submit within thirty (30) days after the last day of any month in which services have been performed or costs incurred hereunder an invoice to City for payment. Consultant shall be responsible for paying any subcontractors - 4 - 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 Fused in the performance of this Agreement. Subcontractors shall not Ilbill City directly. Payment of each invoice shall be made after acceptance and approval by City within thirty (30) days of receipt. City's approval of the invoice shall not be unreasonably withheld. 6. CHANGES AND EXTRA SERVICES. The City reserves the right to request changes in the services to be performed by Consultant. All such changes shall be incorporated in written change orders executed by the City and Consultant that shall specify the changes ordered and the parties shall mutually negotiate an adjustment of compensation and completion time if required. Any services added to the scope of this Agreement by a change order shall be executed under all applicable conditions of this Agreement. No claim for additional compensation for services or extension of time shall be recognized unless contained in a duly executed change order. If Consultant is delayed in performing its services under the Force Majeure provisions of this Agreement, then the Agreement may be equitably adjusted, if necessary, to compensate Consultant for any additional costs due to the delay. 7. STANDARD OF CARE. Consultant and/or its subcontractor shall perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same or similar services. 8. PRODUCTS OF CONSULTING. All reports, plans, data, studies, maps, drawings, models, - 5 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 photographs, documents and other writings prepared by and for Consultant, its officers, employees, agents and subcontractors in the course of implementing this Agreement, with the exception of working notes, internal documents and Confidential Information provided by businesses located in City, shall be considered the property of City. Consultant shall deliver such documents and materials to the City as they are generated; however, Consultant may take and retain copies of said documents and materials that are not Confidential Information, as identified by City. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the City to the public and Consultant agrees that such documents shall not be available to any individual or organization without the written consent of the City prior to such release. No reports, maps, or other documents produced in whole or in part under this Agreement, with the exception of the survey forms, shall be the subject of an application for copyright by or on behalf of Consultant. If City, its officers, agents or employees, release Consultant -prepared documents to a third party without Consultant's prior written consent, or changes or uses the Work Products other than as intended hereunder, (a) City does so at its sole risk and discretion, (b) Consultant shall not be liable for any claims or damages resulting from the change or use or connected with the release or any third party's use of the documents and (c) City shall indemnify, defend and hold Consultant harmless from any and all claims or damages related to the release, change or reuse. - 6 - 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 9. TERMINATION. This Agreement may be terminated by the City without cause on thirty (30) days written notice to Consultant. Consultant shall be entitled to the compensation earned by it prior to the date of the termination notice, computed pro rata up to and including that date, plus compensation for work performed during the thirty (30) day notice period and authorized in the termination notice. Consultant may terminate this Agreement on ten (10) days written notice to the City if the City fails to pay. Consultant's invoice within forty-five (45) days of receipt by City; provided, that the Agreement shall not be terminated if the City issues payment within said ten (10) day notice period. In the event of termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by Consultant under this Agreement shall, at the option of City, become its property. Notwithstanding the foregoing, Consultant shall not be relieved of liability to the City for damage sustained by City by virtue of any breach of this Agreement by Consultant. 10. NOTICES. Notices to the parties, unless otherwise requested in writing, shall be sent to: I city: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 4305 SANTA FE AVENUE VERNON, CA 90058-0805 Consultant: R. W. BECK, INC. ATTN: STEVEN BRODSKY, EXECUTIVE CONSULTANT 1801 CALIFORNIA STREET, SUITE 2800 DENVER, CO 80202 - 7 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 KM 11. CONFIDENTIAL INFORMATION. A. Access to Confidential Information. The City may provide Consultant and/or its subcontractor with, or allow Consultant access to, certain information deemed relevant by City, not available to the public concerning the City, or businesses located in the City. The information may include company information, taxes, sales, value of assets, utility usage, or other such information. All such information shall be known as "Confidential Information" and shall note be used to circumvent the responsibility of either party to this Agreement. B. No Disclosure. Except as expressly permitted, Consultant and/or its subcontractor shall not disclose, permit the disclosure of, release, disseminate, or transfer, whether orally or by any other means, any part of such Confidential Information to any other person or entity, whether corporate, governmental, or individual, without the express prior written consent of an authorized representative of the City. Consultant and/or its subcontractor shall return any and all written Confidential Information and all copies made of such items to the City upon the City's written request, but in any event not later than the date that Consultant and/or its subcontractor has performed all services to be performed pursuant to this Agreement. However, Consultant may retain one copy of the lConfidential Information for its legal records. Consultant hereby agrees that such Confidential Information and any documents provided may be used by Consultant and/or its subcontractor only as authorized by the City. Consultant's contracts with subcontractors shall include provisions that bind the subcontractors to this non -disclosure requirement. Consultant shall - 8 - 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 take reasonable measures to avoid any disclosure of any such Confidential Information to any unauthorized person. Consultant will not be prohibited from disclosing or using any information which; (1) is or becomes generally available to the public other than as a result of a disclosure by Consultant; (2) was already in Consultant's possession before any disclosure of the Information by the City; (3) has been or is obtained by Consultant from a third party (other than one acting on behalf of the City) who Consultant has no reason to believe is not lawfully in possession of the Confidential Information and who Consultant has no reason to believe is in violation of any contractual, legal or fiduciary obligation to the City with respect to the Confidential Information; or (4) is independently developed by Consultant without breaching confidentiality. C. Court Ordered Disclosure. Consultant shall immediately notify the City of any court order or subpoena or other directive of a court, administrative agency, quasi-judicial body or arbitration panel requiring disclosure of Confidential Information, and shall cooperate with legal counsel in the appeal or challenge of any such order or subpoena and City shall reimburse Consultant for such assistance on a time and materials basis. Consultant may only disclose Confidential Information required to be disclosed pursuant to a valid court order or subpoena after legal counsel has exhausted any lawful and timely appeal or challenge, to the extent that such appeal or challenge does not hinder Consultant from its obligations under isuch court order or subpoena. - 9 - 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 D. Remedies. In addition to any other remedies that 11it may have at law or in equity, City shall be entitled to a temporary and permanent injunction by a court of competent jurisdiction against any breach or threatened breach of the Confidential Information provisions of this Agreement. Consultant acknowledges that in case of such breach or threatened breach of said provisions, the City would have no adequate remedy at law. 12. GENERAL PROVISIONS. A. Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City. The City shall have the right to control Consultant only insofar as the results of lConsultant's services rendered pursuant to this Agreement. However, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to the Agreement except to the extent that such services involve the use of City property or Confidential Information. B. Consultant Not Agent. Except as the City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, to bind the City to any obligation whatsoever. C. Indemnification. The Consultant shall indemnify, defend, protect and hold harmless the City and its officers, agents and employees, from any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, orders, or judgments which result in any injury or death, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs - 10 - 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 of defense arising out of or attributable to the negligent or wrongful acts of Consultant or its subcontractors, employees or agents in the performance of services under this Agreement, except to the extent arising from or caused by the active negligence or willful misconduct of the City, its officers, agents or employees. For such matters not involving personal injury or death, Consultant shall not be required to defend the City, but will pay any and all related attorney's fees and costs which the City may incur in defending such matters, if the Consultant is alleged to have been negligent in the performance of the services under this Agreement. D. Insurance. Prior to commencing work hereunder, Consultant shall provide City with proof of insurance providing and maintaining the coverage and endorsements set forth in the Insurance Schedule attached hereto and incorporated by reference as Exhibit B. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. If Consultant fails to provide proof of insurance coverage as specified above, the City may, at its sole discretion, terminate this Agreement immediately. Consultant shall not permit Partner or any other subcontractor or vendor to perform work on City premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has worker's compensation coverage. If Consultant employs subcontractors as part of the services rendered, Consultant's protective coverage is required. Consultant may include Partner and any other subcontractors as an additional insured under fits own policy or shall furnish separate insurance for Partner and any - 11 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 other subcontractor, that meets the requirements set forth herein. E. Limit of Liability. To the extent permitted by law, the total liability of Consultant, its officers, directors, shareholders, employees and subconsultants to City for any and all claims arising out of this Agreement, including attorneys, fees, and whether caused by negligence, errors, omissions, strict liability, breach of contract or contribution, or indemnity claims based on third party claims, shall not exceed One Million Dollars ($1,000,000.00). F. Consequential Damages. In no event and under no circumstances shall Consultant be liable to City for any interest, loss of anticipated revenues, earnings, profits, increased expense of operation or construction, loss by reason of shutdown or non -operation due to late completion or otherwise, or for any other economic, consequential, indirect or general or special damages. G. Governing Law. The validity, interpretation and performance of this Agreement shall be controlled and construed under the laws of the State of California as enacted and in force at the time this Agreement is fully executed. H. Assignment and Subcontracting Prohibited. With the exception of the work to be performed by Partner, Consultant may not assign or subcontract any right or obligation pursuant to this Agreement without the express written consent of City. Any other attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. I. Amendments. All changes or modifications to this Agreement shall be in writing stating that it is an amendment to this Agreement and shall be signed by both parties or their duly authorized agents. This Agreement shall not be modified through course of - 12 - 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 Idealing, usage or trade. J. Entire Agreement. This Agreement constitutes the complete and final expression of the agreement of the parties and is intended as a complete and exclusive statement of the terms of their agreements and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. All exhibits are incorporated by reference. Consultant represents that in entering into this Agreement, it has not relied on any previous representations or understandings of any kind or nature. K. Benefit of Agreement. This Agreement shall bind and benefit the parties hereto and their heirs, successors, and permitted assigns. L. Forum Selection. Any action brought relating to this Agreement shall be brought and held exclusively in a State Court in the County of Los Angeles, California. M. Recitals. All recitals are incorporated by reference. N. Waiver. Any waiver at any time by either party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to subsequent default or other matter. O. Attorney's Fees. In the event that it becomes necessary for either party to this Agreement to enforce any of the provisions of this Agreement, the parties agree that a court of competent jurisdiction may determine and fix reasonable attorney's fees to be paid to the successful litigant. - 13 - 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 P. Force Majeure. Neither Party shall be considered in 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 term "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, labor dispute, labor material shortage, sabotage, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of 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 of due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force, shall give written notice within five (5) Business Days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. Q. Information Provided by Others. City shall provide to Consultant in a timely manner any information Consultant indicates is needed to perform the services hereunder. Consultant may rely on the accuracy of information provided by City and its representatives. R. Opinions of Cost. Consultant does not control the cost of labor, materials, equipment or services furnished by others, nor does it control pricing factors used by others to accommodate inflation, competitive bidding or market conditions. Consultant estimates of operation expenses or construction costs represent its best judgment as an experienced and qualified professional and are not a guarantee of cost. This section does not apply to the cost of - 14 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 (Consultant performing the scope of services. 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• j BRUCE V. MALKENHORST, City Clerk APPROVEDi A T ORM: ERIC T. FRESCH, Attorney CITY OF VERNON By: EONIS C. MALBbRG, Mayor R. W. BECK, INC. B Title: M Title: (1 " 4Z The signatures required of a corporation are as follows: X First Signature - the chairman of the board, the president or any vice president; and X Second Signature - the corporate secretary, any assistant secretary, the chief financial officer or any assistant treasurer. If a person holds more than one office, e.g., vice president and secretary, that person can sign the agreement twice if both capacities are identified. - 15 - R. W. BECK, INC. CERTIFICATION 1. I certify that on March 30, 2004, R. W. Beck, Inc. though its Board of Directors adopted its Amended Authorizations Policy for delegation of authority to commit the Corporation and to execute documents for the Corporation. 2. All officers of the Corporation are authorized within the scope of their designated or delegated authority, as defined in the Amended Authorizations Policy, to execute or delegate the execution of documents to bind the Corporation. 3. Keith J. Platte was appointed Vice President of R. W. Beck, Inc. on December 1, 1997 and as part of his delegated authority under the Amended Authorizations Policy he may co-sign contracts valued up to $500,000. 4. Joseph A. Mancinelli was appointed Client Services Director of R. W. Beck, Inc. and as part of his delegated authority under the Amended Authorizations Policy he may co-sign contracts valued up to $500,000. DATED: June 21, 2004. R. W. BECK, INC. by Everette E. Chartier, Vice President April 15 2004 via Federal Express Mr. Ali Nourmohamadian, P.E. Fiber Optic & Traffic Systems Manager City of Vernon 4305 South Santa Fe Avenue Vernon, CA 90058 Subject: Proposal for ISP Operations and Optical Network Start-up Assistance Dear Mr. Nourmohamadian: R. W. Beck, Inc. ("R. W. Beck'), along with its sub -consultant Partner Communications LLC, is pleased to offer the following proposal for consulting services for Internet Service Provider ("ISP") operations and optical network start-up assistance to the City of Vernon ("City"). Scope of Work Start Up Assistance The primary deliverable for this engagement is the ongoing support and assistance the City will need as the'project unfolds, from the time the City enters into an agreement with R. W. Beck to 30 days after the City signs off on the acceptance (with the vendor) of the project.. This specifically includes the following assistance: ■ Provision of technical and operational support for all issues that may come up during the implementation and installation of the network ■ Development of the ISP product pricing ■ Development of policies including but not limited to Service Level Agreements ("SLA') ■ Assistance in negotiations and technical support with the prime vendor (SBC) ■ Assistance in negotiations and technical support with upstream ISPs and/or LADPW This task includes four consultant visits to the City: 1) two days for the initial vendor kick-off/coordination meeting, 2) three days for document and procedure manual deliveries as well as mid -project vendor status verification, and 3) two days for vendor project completion verification and customer project acceptance. In addition to the three scheduled visits, a fourth visit (two days) will be included providing that it is scheduled at least one week in advance. Deliverables ■ Unlimited phone/email support for the entire installation phase ending after 30 days from the date the City signs off on the acceptance (with the vendor) of the project. I J:\ BD-STDS\PROICONS12007-VERNON, CITY OF\3P2007041504.DOC 1801 California Street, Suite 2800 Denver, CO 80202 Phone (303) 299-5200 Fax (303) 297-2811 0 Mr. Ali Nourmohamadian, P.E. April 15, 2004 Page 2 , ■ Development of the ISP product pricing (DUE DATE is 30 days after the main vendor contract is established). ■ Development of policies including but not limited to SLAs (DUE DATE is 30 days after the main vendor contract is established). ■ ISP general procedures manual (DUE DATE is 30 days after the main vendor contract is established) ■ IP Addressing documentation (DUE DATE is 30 days after the main vendor contract is established) ■ Router/Switch provisioning procedures(DUE DATE is 30 days after the main vendor contract is established) Project Pricing and Terms ISP operations and optical network start-up assistance Price: $35,000 fixed fee This price includes all travel and per diem costs for the scheduled on -site visit. Payment Terms: ■ 30 percent after contract signing ■ 30 percent after the Document and Procedure manual deliverables are completed. ■ 40 percent 30 days after the main vendor has received the City's sign -off on the completed project004 Continuing support (OPTIONAL) Should the City of Vernon wish to continue receiving technical support beyond 30 days after project acceptance, R. W Beck, via Partner Communications, will continue to furnish the same level of unlimited phone and email technical support for up to six months for an additional fee of $2,000 per month. Contract To expedite delivery of services, R. W. Beck would be pleased to sign a contract with the City with the same wording as our November 5, 2002 contract with the following substitutions and additions: 1. Substitution of the scope of services indicated above. 2. Substitution of the pricing and payment terms indicated above. J:\ BD-STDSSPRO\CONS\2007-VERNON, CITY OF\3P2007 041504.DOC 1 : - Mr. Ali Nourmohamadian, P.E. April 15, 2004 Page 3 3. In the opening recitals, the addition of our subcontractor Partner Communications to the sixth recital. This would now read, "WHEREAS, Consultant represents that it and its subcontractor Partner Communications LLC are qualified to perform such services under this Agreement for Consulting Services. Please call me on (303) 299-5345 if you have any questions on this proposal. We look forward to continuing to assist the City of Vernon in this exciting telecommunications deployment! Sincerely, R W. BECK, INC. J eph A. Manc' Client Services Director WTW/hm Wendy T. Warner Senior Director — Telecommunications J:\ BD-STDS\PRO\CONS\2007-VERNON, CITY OF13P2007 041504.DOC 1 EXHIBIT B 2 INSURANCE SCHEDULE (CONSULTANT) 3 Consultant shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): 4 5 I. Coverage and Limits 6 Bodily Injury Property Damage Hazards Each Person Each Accident Each Accident 7 Automobile Liability 8 Owned Automobiles $ 500,000 $1,000,000 $ 500,000 9 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 10 Workers' Compensation $ Statutory 11 Employers' Liability $1,000,000 per employer 12 II. Liabili 13 General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 14 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000 15 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 16 Contractual Liability $1,000,000 $2,000,000 $1 000 000 Professional Liability $1,000,000 $1,000,000 $1,000,000 17 18 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 19 1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 20 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 21 3. An endorsement providing coverage for all operations under this Agreement. 22 4. Such other endorsement as may be required by addendum hereto. 23 24 25 26 27 28 EXHIBIT "B'