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Resolution No. 8579in 9 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8579 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 COMSERCO, INC. WHEREAS, the Vernon Fire Department has determined that it needs a new mobile laptop computer with all the necessary installation hardware to be placed on the USAR vehicle plus additional sets of hardware for installing three existing mobile laptop computers on Fire Engine Nos. E12, E13 and the Reserve Command Vehicle (collectively the "Equipment") in order to complete the installation of the new computer system into all of the Fire engines; and WHEREAS, the purchase of the Equipment is needed in order to receive emergency information from the dispatch CAD system using Vision Mobile software; and WHEREAS, Comserco, Inc. installed all the mobile computers currently in use and based on their expertise and familiarity with the City's apparatuses and the communication industry, it should be able to provide the Equipment and installation services now required by the City in a more efficient and effective manner; and WHEREAS, on June 1, 2004, the Finance Committee considered the recommendation of Bruce V. Malkenhorst, Director of Finance, dated May 26, 2004, that a contract be approved and executed for purchase of the Equipment from Comserco; 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 Comserco for the purchase of 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 the Equipment. 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 Equipment Purchase Contract with Comserco, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. 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 Contract to: Comserco Attn. Jerry Moskal 2020 Iowa Riveside, CA 92507 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 20th day of October, 2004. c'' x fLEONIS C. MALBURG, Aayor ATTEST: BRUCE V. MALKENHORST, City Clerk - 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 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. 8579, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, October 20, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 3 - EXHIBIT 0 EQUIPMENT PURCHASE CONTRACT THIS 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 original hereof for all purposes, as of this 20`h day of October, 2004, in the City of Vernon, County of Los Angeles, State of California BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058 AND COMSERCO, INC. (hereinafter referred to as "Comserco") 2020 Iowa Riverside, CA 92507 RECITALS WHEREAS, the City's Fire Department is requesting the purchase of one new mobile laptop computer with all the necessary installation hardware to be placed on the USAR Vehicle and three additional sets of hardware for installing three existing mobile laptop computers on the new Fire Engine Nos. E12, E13 and the Reserve Command Vehicle (collectively the "Equipment"); and WHEREAS, Comserco has prepared a quotation dated on or about February, 13, 2004 for the sale, delivery and installation of the Equipment, a copy of which is attached hereto as Exhibit A and incorporated by this reference (the "Proposal"); and WHEREAS, Comserco represents that it is qualified and capable of providing the Equipment described in Exhibit A on the terms and conditions set forth below; and WHEREAS, the City desires to enter into an agreement with Comserco to provide for the purchase, delivery, and installation of the Equipment on the terms and conditions set forth below. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Purchase and Sale of the Equipment. 1.1 Equipment. Comserco shall sell and deliver, and the City shall purchase the Equipment described in the Proposal. In the event of a conflict between the terms of this Contract and the Proposal, the terms of this Contract shall control. 1.2 Delivery and Installation. Comserco shall obtain and sell, deliver and install the Equipment at the City of Vernon, F.O.B. Job Site. Comserco is responsible for all costs of full freight, including insurance, to Job Site. Risk of loss shall pass to the City upon delivery F.O.B. Job Site. 2. Time of Performance. Comserco shall commence and complete the delivery and installation of the Equipment as follows: 2.1 Time Schedule. Comserco shall begin to obtain the Equipment upon the later of the full execution of this Contract and the City's issuance of a Purchase Order (the "Commencement Date"). Comserco shall complete delivery of the Equipment no later than weeks from the Commencement Date (the "Delivery Time"). Unless performance is excused, as set forth in Paragraph 2.2, Comserco's failure to deliver the Equipment within the Delivery Time shall constitute a material default of this Contract, and, among other remedies available to it, the City shall have the option of terminating this Contract. 2.2 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 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, 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 parry 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 Contract 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. The Delivery Time shall be extended by Change Order by the number of days of delay caused by the uncontrollable force, as the City may reasonably determine. An extension of the Delivery Time by reason of an 2 uncontrollable force shall not justify extra compensation for Comserco for administrative or other costs or expenses; provided, however, that if the time for achieving delivery is materially extended by reason of uncontrollable force through no fault of Comserco, Comserco shall be entitled to an increase in the Contract Sum, but only in any amount equal to the increase in Comserco' direct cost resulting from such delay. 3. Contract Sum. The purchase price for the Equipment is Thirty -One Thousand Five Hundred Fifteen Dollars and No Cents ($31,515.00), plus applicable sales tax, freight and installation totaling the sum of Forty -Two Thousand Four Hundred Ninety -One Dollars and Seventy -One Cents ($42,491.71) (the "Contract Sum"). 4. Payment Terms. 4.1 Payment. One hundred percent (100%) of the Contract Sum shall be paid within thirty (30) days after (a) the City's receipt, testing, and approval of the Equipment; (b) the City's receipt of all required documentation (including, without limitation, warranties provided by the manufacturers, and operating manuals, specifications, and other documentation necessary and appropriate for the installation, operation, and maintenance, and repair of the Equipment; collectively, the "Documentation"); (c) the City's receipt of an invoice in a form reasonably acceptable to the City from Comserco; (d) the City's receipt of fully executed assignments of all manufacturers' warranties and guarantees in favor of the City in form and substance reasonably acceptable to the City; and (e) the City's receipt of evidence of Comserco' payment of all of its obligations in connection with this Contract. 4.2 Billings for Change Orders. Any billings for Change Orders, as defined in Paragraph 7 below, must be billed by separate invoice, with a copy of the applicable Change Order signed by the City attached to the invoice. 4.3 Payment Holds. Notwithstanding anything to the contrary contained herein, the City shall not be obligated to make any payment to Comserco if Comserco is in default of any of its obligations under this Contract; any portion of the Equipment is defective or not in accordance with the terms of this Contract (provided, however, that payment shall be made as to any portion of the Equipment that is acceptable to the City); or the conditions required for payment as set forth in Paragraph 4.1 above have not been satisfied. 3 4.4 Payment is Not Acceptance. Neither payment by the City nor use of the Equipment by the City shall constitute an acceptance of any Equipment not in accordance with the terms of this Contract. 5. Comserco' Representations, Warranties, and Covenants. 5.1 Capability. Comserco represents to the City that it is qualified, willing, and able to obtain, sell, deliver and install the Equipment. 5.2 Testing. Comserco shall inspect the Equipment as it is received by Comserco for delivery to the City, and will reject any Equipment that is defective, with the cost of repair or replacement being the responsibility of Comserco. The City reserves the right to test the Equipment, regardless of the results of Comserco' testing. 5.3 Assignment of Warranties; Delivery of Documentation. Comserco shall assign to the City at the time of delivery of the Equipment all manufacturers' warranties for the Equipment and Comserco shall assemble and deliver to the City complete copies of all warranties, guaranties, and operating and maintenance data and all other Documentation (as defined in Paragraph 4.1) from all manufacturers whose Equipment is delivered to the City pursuant to this Contract. 5.4 Compliance with Law. Comserco shall strictly observe and comply with all applicable federal, state, and local laws, ordinances, and regulations governing the sale and delivery of the Equipment, including, but not limited to any permit or license requirements of the United States Department of Commerce. 5.5 Authorizations. Comserco is authorized to do business in California and properly licensed and registered by all governmental authorities having jurisdiction over it. 5.6 Title to City. Comserco warrants that title to Equipment will pass to the City either by incorporation in the construction or upon the receipt of payment by Comserco, whichever occurs first, free and clear of all liens, claims, security interests or encumbrances, and that no seller of any Equipment or any portion thereof will retain an interest therein or an encumbrance thereon. 5.7 Payments to Third Parties. Comserco shall promptly pay all bills for labor and materials furnished by others in connection with this Contract. 0 5.8 Warran 5.8.1 Comserco' Warranties. Comserco warrants that all Equipment will be new and free from defects in materials and workmanship, comply with the specifications provided by the manufacturers, be of good quality and merchantability, and fit for their intended purposes, and conform to all applicable governmental regulations, statutes, and ordinances. Any Equipment not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. In the event that the test results obtained by either Comserco or the City reveals that any portion of the Equipment does not meet the City's specifications or the City identifies any defects in or damage to the Equipment, Comserco shall promptly repair or replace any defective Equipment; provided, however, that if, in the City's reasonable discretion, the quantity or quality of the defects are substantial, the City shall have the option of rejecting the entire shipment of Equipment from that vendor, and obtaining another vendor to provide that Equipment. Comserco shall be responsible for all direct and indirect costs that may be incurred by the City in connection with the rejection and/or replacement of damaged or defective Equipment, including any damage caused to the City's existing Equipment and the Vernon Substation or the Malburg Project by the installation or use of defective Equipment provided by Comserco. 5.8.2 Manufacturers' Warranties. Comserco shall obtain for the benefit of the City, and assign to the City, commercially reasonable manufacturers' warranties for parts and labor, which shall commence one (1) year from the date of installation of the Equipment being purchased by the City under this Contract or the City's acceptance of the Equipment being purchased hereunder, whichever occurs first. Comserco shall assist the City in the enforcement of all such warranties. 5.8.3 Warran1y Period. Comserco, at its cost, shall promptly repair or replace or cause the manufacturer to repair or replace (provided, however, that the City shall cooperate in working with the manufacturers if the warranties have been assigned to the City) Equipment rejected by the City as defective or as failing to conform to this Contract if reported to Comserco within the Warranty Period. The Warranty Period shall be the period of (a) one (1) year from the date of installation of Equipment being purchased hereunder or from the date of the City's acceptance of the Equipment being purchased hereunder, whichever occurs first; or (b) such longer period of time as may be prescribed by law or by the terms of the applicable manufacturers' warranty. The City shall give such notice promptly after discovery of a defective condition. A new one year Warranty Period shall commence for repaired or replaced Equipment on the date the repair or replacement was made. Comserco' obligations hereunder shall include the obligation to repair any damage to other property caused by the defective Equipment or the repair thereof. Comserco shall indemnify the City from and hold the City harmless against any and all claims, liabilities, liens, damages, losses, costs, and expenses, including reasonable attorneys' fees and all costs of defense, arising out of or relating (a) to any such Equipment found to be defective or not in accordance with this Contract, or (b) the correction of any such Equipment. The foregoing representations, warranties, covenants, and agreements shall survive any termination of this Contract and final completion of the delivery of the Equipment and are in addition to, and not in lieu of, any and all other liability imposed upon Comserco by law with respect to Comserco' duties, obligations and performance hereunder. 6. Indemnification. 6.1 Comserco' Indemnity. To the fullest extent permitted by law, Comserco shall defend, indemnify and hold harmless City and its elected officials, officers, agents and employees from all claims, suits, actions, demands, damages, liabilities, expenses, judgments, settlements and penalties, losses, fines, and all costs and expenses incurred in connection therewith, including reasonable attorneys' fees and all costs of defense, arising out of or attributable to the negligent or wrongful acts of Comserco or its employees or agents in the delivery of Equipment under this Contract, except to the extent arising from or caused by the sole negligence or willful misconduct of the City, its officers, agents or employees. The terms of this indemnity shall survive the termination of this Contract. The obligations in this Paragraph are in addition to Comserco'duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Comserco, 6.2 Indemnity Process. The City shall notify Comserco in writing of any suits, claims or demands covered by this indemnity. Promptly after receipt of such notice, Comserco Col shall assume the defense of such claim with counsel reasonably satisfactory to City. If Comserco fails, within a reasonable time after receipt of such notice, to assume the defense with counsel reasonably satisfactory to City, or if, in the reasonable judgment of City, a direct or indirect conflict of interest exists between the parties with respect to the claim, or if in the sole judgment of City the assumption and conduct of the defense by Comserco would materially and adversely affect City in any manner or prejudice its ability to conduct a successful defense, then the City shall have the right to undertake the defense, compromise and settlement of such claim for the account and at the expense of Comserco. Notwithstanding the above, if the City in its sole discretion so elects, City may also participate in the defense of such actions by employing counsel at its expense, without waiving the City's obligations to indemnify or defend. Comserco shall not settle or compromise any claim or consent to the entry of any judgment without the prior written consent of the City and without an unconditional release of all liability by each claimant or plaintiff to the City. 7. Change Orders. The City reserves the right to make additions to or deletions from the Equipment being purchased under this Contract. All such changes shall be incorporated in written change orders executed by the City. The Change Orders shall specify the changes ordered and the adjustment of prices, delivery schedules and warranties. Any Equipment or services added to this Contract under a Change Order shall be subject to all of the terms and conditions of this Contract, except as otherwise set forth in the Change Order. No claim for additional compensation or extension of time shall be valid or recognized unless contained in a Change Order signed by the Project Manager, as defined in Paragraph 11.7 below. 8. Termination of the Contract. 8.1 Right of Termination. This Contract may be terminated by the City, with or without cause, upon at least fifteen (15) calendar days' written notice delivered to Comserco. 8.2 Termination by City Without Cause. In the event of termination by the City without cause, Comserco shall be compensated for all Equipment delivered prior to the date of delivery of the termination notice, plus compensation for (i) necessary work performed during the notice period and authorized in the termination notice, and (ii) all costs reasonably and necessarily incurred by Comserco directly attributable to termination which could not reasonably 7 have been avoided and for which Comserco is not otherwise compensated that are incurred through the date of the termination and in effectuating the termination (the "Termination Expenses"). Termination Expenses shall not include lost profits, lost opportunities, consequential damages, or the like. 8.3 Termination by the City for Cause or by Comserco without Cause. If Comserco breaches this Contract, the City shall notify Comserco in writing of said breach and if Comserco has not cured or begun reasonable efforts to cure within fifteen (15) calendar days of delivery of said notice, and fails to diligently pursue corrective action, the City shall have the right to cancel this Contract on the 15th day following delivery of notice to Comserco for cause. Comserco shall be responsible for all direct and indirect costs due to the City's re -procurement of the equivalent of the Equipment cancelled pursuant to this Paragraph 8.3. If this Contract is terminated by the City with cause, or terminated by Comserco without cause, the City shall pay Comserco for all Equipment delivered prior to the date of delivery of the termination notice, subject to the right of the City to withhold such unpaid amounts pending resolution of damages incurred by the City as a result of Comserco's default and for any reason described as a justification for a payment hold as set forth in Paragraph 4.3. 8.4 Actions Subsequent to Termination. Following the termination date, regardless of whether the Contract is terminated with or without cause, and subject only to the payments described in Paragraphs 8.2 or 8.3, as applicable, the City shall have no further rights, duties, liabilities or obligations whatsoever under this Contract. Upon a termination of this Contract, except for its obligations under Paragraph 12.5 below, Comserco shall have no further rights, duties, liabilities or obligations whatsoever under this Contract. Notwithstanding anything in this Contract, including the foregoing, to the contrary, Paragraphs 5, 6, 8, 9, 10, 11.2, 11.3, 11.4, and 11.11 shall survive the termination of this Contract. 8.5 Delivery of Work Product and Documentation. Within three (3) business days after any termination of this Contract, Comserco shall deliver to the City all Work Product (as defined in Paragraph 9) and all Documentation (as defined in Paragraph 4.1) pertaining to this Contract and any and all copies thereof, whether in the possession of Comserco or a party engaged by Comserco; provided, however, that solely for its internal auditing purposes, Comserco may, at its sole expense, make and retain copies of Work Product materials, subject to the confidentiality provisions of Paragraph 10. Comserco shall also furnish all such information, take all such other action and shall cooperate with the City as the City shall reasonably require in order to effectuate an orderly and systematic termination of Comserco's duties and activities hereunder. 9. Work Product. All finished or unfinished documents, plans, designs, drawings, data, databases, studies, surveys, maps, models, photographs, reports and other materials, in whatever form or medium, prepared by or for Comserco, its officers, employees, agents in the course of performing the obtaining, delivering, and selling to the City the Equipment sold under this Contract (collectively, the "Work Product"), but excluding working notes and internal documents, shall be the property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Comserco or to any other party. Work Product materials shall be delivered to City by Comserco as they are generated. 10. Confidential Information. 10.1 Access to Confidential Information. The City may provide Comserco or allow Comserco access to certain information not available to the public concerning the City or businesses located in the City. The information may include information regarding companies located in the City, tax information, utility usage, and information concerning various company's sales, value of assets, or other confidential information about companies dealing with the City. All such non-public information shall be known as "Confidential Information" and may not be by Comserco for any purpose other than to perform its duties hereunder. 10.2 No Disclosure. Except as expressly permitted by prior written consent of the City, Comserco 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, without the express prior written consent of an authorized representative of the City. Comserco shall return any 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 Comserco has delivered all Equipment to be delivered pursuant to this Contract. Comserco 7 hereby agrees that such Confidential Information and any documents provided may be used by Comserco only as authorized by the City. 10.3 Court Ordered Disclosure. Comserco shall immediately notify the City of any court order or subpoena requiring disclosure of Confidential Information, and shall cooperate with the City's legal counsel in responding to any such order or subpoena. Comserco may only disclose Confidential Information required to be disclosed pursuant to court order or subpoena after legal counsel has exhausted any lawful and timely appeal or challenge. 10.4 Exceptions to Confidentiality. The foregoing obligations shall not apply to any Confidential Information lawfully in Comserco's possession prior to its acquisition from the City; received in good faith from a third party not subject to any confidential obligation to the City; or that now is or later becomes publicly known through no breach of confidential obligation by Comserco. 10.5 Remedies. In addition to any other remedies that it may have at law or in equity, the City shall be entitled to a temporary and permanent injunction by a court of competent jurisdiction against any breach or threatened breach of any of the provisions of this Paragraph 10. Comserco acknowledges that in case of such breach or threatened breach of said provisions, the City would have no adequate remedy at law, and the City shall not be required to post a bond or other security or to prove damages. 11. General Provisions. 11.1 Entire Agreement. This Contract, with Exhibits A and B, each of which is attached hereto and incorporated herein by this reference, represents the entire and integrated agreement between the parties hereto, and supersedes and replaces all prior and contemporaneous negotiations, representations, discussions, or agreements between the parties related to the matters set forth in this Contract. This Contract may be amended or modified only by a written amendment signed by the parties. 11.2 Forum Selection. Any action brought relating to this Contract shall be brought and held exclusively in a Court in or serving the County of Los Angeles, California. 11.3 Attorneys' Fees. If either party institutes an action or legal proceeding arising out of or related to this Contract or the relationship of the parties or their rights or duties 10 in connection with the matters set forth in this Contract, whether sounding in tort, contract, or otherwise, the prevailing party in such action or proceeding shall be entitled to recover from the other party all costs and expenses, including all costs and reasonable attorneys' fees, in addition to any other remedy awarded by the court. 11.4 Notices. All notices required or permitted by this Contract shall be in writing and may be delivered in person (by hand or by messenger or courier service) or may be sent by certified or registered mail, return receipt requested, or by facsimile transmission during normal business hours, if delivery is confirmed and provided a copy is also delivered via delivery or mail, and shall be deemed effective upon delivery or refusal to accept delivery, if served in a manner specified in this Paragraph 11.4 to the recipient as set forth below. If a notice is delivered on a Saturday, Sunday, or holiday, it shall be deemed delivered on the next business day. Notices to the parties shall be sent to the addresses set forth below, or such other address as is provided by one party to the other in writing. CITY: THE CITY OF VERNON Attn: Bruce V. Malkenhorst City Administrator 4305 Santa Fe Avenue Vernon, CA 90058-0805 COMSERCO: COMSERCO, INC. 2020 Iowa Riverside, CA 92507 Attn: Jerry Moskal 11.5 Status of Comserco. At all times during the term of this Contract, Comserco shall be an independent contractor. Except as the City may specify in writing, Comserco shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. Comserco shall have no authority, expressed or implied, pursuant to this Contract to bind the City to any obligation whatsoever. 11.6 Insurance. Comserco agrees to provide insurance in the amounts and forms specified in Exhibit B, which is attached hereto and incorporated by reference. Comserco shall submit to the City documentation indicating compliance with these minimum requirements no less than one (1) day prior to the beginning of performance under this Contract. Comserco 11 shall not commence performance of its work under this Contract until the above insurance has been obtained and proof of insurance has been filed with and approved by the City. 11.7 Assignment Prohibited. No party to this Contract may assign any right or obligation except with the express written consent of the other party; provided, however, that Comserco may purchase from other vendors and manufacturers the Equipment to be delivered by Comserco hereunder, and Comserco may by written request assign any right to receive monies earned hereunder. 11.8 Partial Invalidity. Wherever possible, each provision hereof will be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be limited to the extent required to make such provision valid and enforceable, and if necessary, severed from this Contract. All other terms and conditions shall remain in full force and effect. Contract. 11.9 Time of the Essence. Time is of the essence in the performance of this 11.10 Rights and Remedies. The City's rights and remedies under the Contract are cumulative with and in addition to all other legal and equitable rights and remedies which the City may have under applicable law. I/% 12 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 Eric T. Fresch, City Attorney 13 CITY OF VERNON By: LEONIS C. MALBURG, Mayor COMSERCO, INC. By: Typed Name: Title: By: Typed Name: Title: EXHIBIT _ 05/20/2004 07:02 FAX 323 581 7924 CITY OF VERNON J LEHR 0 014 ComSerCo Coii ml= ivatimis, 1,11a Jerty Moskal ._a Yam~ 4,o~. ` 2020 Iowa Riverside, Ca 92507 Customer # V388110 800-453.9880 Ext 213 Customer I Bill to City of Vernon Rre Department Sales Tax Code Order Date Address : 4305 Santa Fe Ave. 5 Q2/13/04Q City l St. / Zip Vernon, Ca. 90058 8.25% Sales Order; Contact: Bat Chief Kirnes Contact Title Phone # : (323) 583-4821 x 511 Batt. Chief PO # Fax #• End User Contact Phone Number Company Ultimate Dest. Zip Address : lCity / St. / zip REV 08.06.03 Quotation Valid For 30 Days Quote Number Item Qt [ Model Description unn rnve cxl[. rnue 1 1 CF29CPPGZDM Panasonic CF29, 1.2Ghz Centrino, 13.3 $5,779.00 $5,779.00 Transmissive Touch Screen, 600B HD, 512 MB Ram, 56K/Lan, FDD, Intel Pro Wireless Lan, Win 2000 1a 1 CFVKBL01M Backlit Keyboard $599.00 $599.00 1b 1 898-36228 Keyboard Integration $75,00 $75.00 1c 4 CFVDL02MKBS Panasonic PDRC w/12,1" Touch Screen $2,350.00 $11,400.00 w/Glide Pad ld 4 CFWE0273 Port ReplicatorwMireless Pass Thru $799.00 $3,196.00 le 1 CFVDR282U DVD/Rom&Cd/R/RW Drive $355.00 $365.00 2 8 CSC256 Lind Power Adapter $198.00 $1,584.00 3 8 NP-12 NavPak Vehicle UPS $409.00 $3,272.OQ 4 3 CSC327 CF29 Computer Mount w/articulated arm $481.00 $1,443.00 5 4 CSC328 PCRC Mount w/Tilt and Swivel' $326.00 $1,304�10 6 1 CSC329 CF28 Computer Mount w/Tilt & Swivel $335.00 $335.00 6 7 CFVZSU18BU CF 28 Li -ion Battery $309.00 $2,163.00 APPROVED Equipment Total $31,515.00 I.T. Division Freight $472.73 Sales Tax $2,638.99 Installation $7,865.00 RC # ) S $�-z�isz 5, z Grand Total $42,491.71 Down Payment �> rt�� fga Balance Due $42,491.71 -sic rie-)n F)atP - --. Sales Payment Terms Paid In Pull w/ order C.O_D Net 10 Days Net 30 Days Before signing, please read attachment 'W of this sales order and any applicable warranties and licenses_ YOUR SIGNATURE IS AN OFFER TO PURCHASE the products listed above which, if accepted by ComSerCo, Inc., will be a purchase Contract with the Terms and Conditions on the attachment "A", (attached) including warranty disclaimers and limitations of ComSerCo liability. Authorized Customer Signature Date EXHIBIT EXHIBIT B INSURANCE SCHEDULE Comserco 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 InjurX 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. Liabili General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Independent Contractor $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 $5,000,000 $5,000,000 $5,000,000 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 City. b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. 14 SUPPORTING DOCUMENTS IF EQUIPMENT PURCHASE CONTRACT • THIS 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 original hereof for all purposes, as of this 3 day of , 2005, in the City of Vernon, County of Los Angeles, State of California BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058 AND COMSERCO, INC. (hereinafter referred to as "Comserco") 2020 Iowa, Suite 100 Riverside, CA 92507 RECITALS WHEREAS, the City's Fire Department is requesting the purchase of one new mobile laptop computer with all the necessary installation hardware to be placed on the USAR Vehicle and three additional sets of hardware for installing three existing mobile laptop computers on the new Fire Engine Nos. E12, E13 and the Reserve Command Vehicle (collectively the "Equipment"); and WHEREAS, Comserco has prepared a quotation dated on or about February 13, 2004 for the sale, delivery and installation of the Equipment, a copy of which is attached hereto as Exhibit A and incorporated by this reference (the "Proposal"); and WHEREAS, Comserco represents that it is qualified and capable of providing the Equipment described in Exhibit A on the terms and conditions set forth below; and WHEREAS, the City desires to enter into an agreement with Comserco to provide for the purchase, delivery, and installation of the Equipment on the terms and conditions set forth below. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: Purchase and Sale of the Equipment. 1.1 Equipment. Comserco shall sell and deliver, and the City shall purchase the Equipment described in the Proposal. In the event of a conflict between the terms of this Contract and the Proposal, the terms of this Contract shall control. 1.2 Delivery and Installation. Comserco shall obtain and sell, deliver and install the Equipment at the City of Vernon, F.O.B. Job Site. Comserco is responsible for all costs of full freight, including insurance, to Job Site_ Risk of loss shall pass to the City upon delivery F.O.B. Job Site. 2. Time of Performance. "Comserco shall commence and complete the delivery and installation of the Equipment as follows: 2.1 Time Schedule. Comserco shall begin to obtain the Equipment upon the later of the full execution of this Contract and the City's issuance of a Purchase Order (the "Commencement Date"). Comserco shall complete delivery of the Equipment no later than six (6) weeks from the Commencement Date (the "Delivery Time"). Unless performance is excused, as set forth in Paragraph 2.2, Comserco's failure to deliver the Equipment within the Delivery Time shall constitute a material default of this Contract, and, among other remedies available to it, the City shall have the option of terminating this Contract. 2.2 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 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, 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 Contract 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. The Delivery Time shall be extended by Change Order by the number of days of delay caused by the uncontrollable force, as the City may reasonably determine. An extension of the Delivery Time by reason of an uncontrollable force r Shzlll not ,tlstltb cNtl- comllensatioll tol- 1. oInset"co lol adlllir)lstratr e or other costs or expenses; provided, ho,vever, that if the time for achie ,ing. delivery is materially extended by reason of uncontrollable force through no fault of Comserco, Corserco shall be entitled to an increase HI the Contract Sum, but only 111 any amount equal to the increase In Coinserco7 direct Cost reSltltln" from such delay. 3, rchase price for the Equipment is Thirty -One Thousand Contract Surn. The pu Five Hundred Fifteen Dollars and No Cents ($31,515.00), plus applicable sales tax; freight and installation totaling the Sinn of Forty -Two Thousand Four Hundred Ninety -One Dollars and Seventy -One Cents ($42,491.71) (the "Contract Surn"). 4. Payment Terms. 4.1 Payment. One hundred percent (100%) of the Contract Sum shall be paid within thirty (30) days after (a) the City's receipt, testing, and approval of the Equipment; (b) the City's receipt of all required documentation (including, without limitation, warranties provided by the manufacturers, and operating manuals, specifications, and other documentation necessary and appropriate for the installation, operation, and maintenance, and repair of the Equipment, collectively, the "Documentation"); (c) the City's receipt of an invoice in a form reasonably acceptable to the City from Comserco; (d) the City's receipt of fully executed assignments of all manufacturers' warranties and guarantees in favor of the City in form and substance reasonably acceptable to the City. 4.2 Billings for Change Orders. Any billings for Change Orders, as defined in Paragraph 7 below, must be billed by separate invoice, with a copy of the applicable Change Order signed by the City attached to the invoice. 4.3 Payment Holds. Notwithstanding anything to the contrary contained herein, the City shall not be obligated to make any payment to Comserco if Comserco is in default of any of its obligations under this Contract; any portion of the Equipment is defective or not in accordance with the terms of this Contract (provided, however, that payment shall be made as to any portion of the Equipment that is acceptable to the City); or the conditions required for payment as set foI th in Paragraph 4.1 abo\ e ha\ e not been satisfied. 3 4.4 Pnment is Not Acceptance. Neither payment by the City nor use of the Equipment by the City shall constitute an acceptance of any Equipment not in accordance with the terms of this Contract. 5. Comserco' Representations, Warranties, and Covenants. 5.1 Capability. Comserco represents to the City that it is qualified, willing, and able to obtain, sell, deliver and install the Equipment. 5.2 Testing. Comserco shall inspect the Equipment as it is received by Comserco for delivery to the City, and will reject any Equipment that is defective, with the cost of repair or replacement being the responsibility of Comserco. The City reserves the right to test the Equipment, regardless of the results of Comserco' testing. 5.3 Assignment of Warranties, Delivery of Documentation. Comserco shall assign to the City at the time of delivery of the Equipment all manufacturers' warranties for the Equipment and Comserco shall assemble and deliver to the City complete copies of all warranties, guaranties, and operating and maintenance data and all other Documentation (as defined in Paragraph 4.1) from all manufacturers whose Equipment is delivered to the City pursuant to this Contract. 5.4 Compliance with Law. Comserco shall strictly observe and comply with all applicable federal, state, and local laws, ordinances, and regulations governing the sale and delivery of the Equipment, including, but not limited to any permit or license requirements of the United States Department of Commerce. 5.5 Authorizations. Comserco is authorized to do business in California and properly licensed and registered by all governmental authorities having jurisdiction over it. 5.6 Title to City. Comserco warrants that title to Equipment will pass to the City either by incorporation in the construction or upon the receipt of payment by Comserco, whichever occurs first, free and clear of all liens, claims, security interests or encumbrances, and that no seller of any Equipment or any portion thereof will retain an interest therein or an encumbrance thereon. 5.7 Payments to Third Parties. Comserco shall promptly pay all bills for labor and materials furnished by others in connection with this Contract. M 5.8 Warranty. 5.8.1 Comserco' Warranties. Comserco warrants that all Equipment will be new and free from defects in materials and workmanship, comply with the specifications provided by the manufacturers, be of good quality and merchantability, and fit for their intended purposes, and conform to all applicable governmental regulations, statutes, and ordinances. Any Equipment not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. In the event that the test results obtained by either Comserco or the City reveals that any portion of the Equipment does not meet the City's specifications or the City identifies any defects in or damage to the Equipment, Comserco shall promptly repair or replace any defective Equipment; provided, however, that if, in the City's reasonable discretion, the quantity or quality of the defects are substantial, the City shall have the option of rejecting the entire shipment of Equipment from that vendor, and obtaining another vendor to provide that Equipment. Comserco shall be responsible for all direct and indirect costs that may be incurred by the City in connection with the rejection and/or replacement of damaged or defective Equipment, including any damage caused to the City's existing Equipment and the Vernon Substation or the Malburg Project by the installation or use of defective Equipment provided by Comserco. 5.8.2 Manufacturers' Warranties. Comserco shall obtain for the benefit of the City, and assign to the City, commercially reasonable manufacturers' warranties for parts and labor, which shall commence one (1) year from the date of installation of the Equipment being purchased by the City under this Contract or the City's acceptance of the Equipment being purchased hereunder, whichever occurs first. Comserco shall assist the City in the enforcement of all such warranties. 5.8.3 Warranty Period. Comserco, at its cost, shall promptly repair or replace or cause the manufacturer to repair or replace (provided, however, that the City shall cooperate in working with the manufacturers if the warranties have been assigned to the City) Equipment rejected by the City as defective or as failing to conform to this Contract if reported to Comserco within the Warranty Period. The Warranty Period shall be the period of (a) one (1) year from the date of installation of Equipment being purchased hereunder or from the date of the City's acceptance of the Equipment being purchased hereunder, whichever occurs first; or (b) such longer period of time as may be prescribed by law or by the terms of the applicable manufacturers' warranty. The City shall give such notice promptly after discovery of a defective condition. A new one year Warranty Period shall commence for repaired or replaced Equipment on the date the repair or replacement was made. Comserco' obligations hereunder shall include the obligation to repair any damage to other property caused by the defective Equipment or the repair thereof. Comserco shall indemnify the City from and hold the City harmless against any and all claims, liabilities, liens, damages, losses, costs, and expenses, including reasonable attorneys' fees and all costs of defense, arising out of or relating (a) to any such Equipment found to be defective or not in accordance with this Contract, or (b) the correction of any such Equipment. The foregoing representations, warranties, covenants, and agreements shall survive any termination of this Contract and final completion of the delivery of the Equipment and are in addition to, and not in lieu of, any and all other liability imposed upon Comserco by law with respect to Comserco' duties, obligations and performance hereunder. 6. Indemnification. 6.1 Comserco' Indemnity. To the fullest extent permitted by law, Comserco shall defend, indemnify and hold harmless City and its elected officials, officers, agents and employees from all claims, suits, actions, demands, damages, liabilities, expenses, judgments, settlements and penalties, losses, fines, and all costs and expenses incurred in connection therewith, including reasonable attorneys' fees and all costs of defense, arising out of or attributable to the negligent or wrongful acts of Comserco or its employees or agents in the delivery of Equipment under this Contract, except to the extent arising from or caused by the sole negligence or willful misconduct of the City, its officers, agents or employees. The terms of this indemnity shall survive the termination of this Contract. The obligations in this Paragraph are in addition to Comserco'duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Comserco. 6.2 Indemnity Process. The City shall notify Comserco in writing of any suits, claims or demands covered by this indemnity. Promptly after receipt of such notice, Comserco 6 have been avoided and for which Comserco is not otherwise compensated that are incurred through the date of the termination and in effectuating the termination (the "Termination Expenses"). Termination Expenses shall not include lost profits, lost opportunities, consequential damages, or the like. 8.3 Termination by the City for Cause or by Comserco without Cause. If Comserco breaches this Contract, the City shall notify Comserco in writing of said breach and if Comserco has not cured or begun reasonable efforts to cure within fifteen (1.5) calendar days of delivery of said notice, and fails to diligently pursue corrective action, the City shall have the right to cancel this Contract on the 15a' day following delivery of notice to Comserco for cause. Comserco shall be responsible for all direct and indirect costs due to the City's re -procurement of the equivalent of the Equipment cancelled pursuant to this Paragraph 83. If this Contract is terminated by the City with cause, or terminated by Comserco without cause, the City shall pay Comserco for all Equipment delivered prior to the date of delivery of the termination notice, subject to the right of the City to withhold such unpaid amounts pending resolution of damages incurred by the City as a result of Comserco's default and for any reason described as a justification for a payment hold as set forth in Paragraph 4.3. 8.4 Actions Subsequent to Termination. Following the termination date, regardless of whether the Contract is terminated with or without cause, and subject only to the payments described in Paragraphs 8.2 or 8.3, as applicable, the City shall have no further rights, duties, liabilities or obligations whatsoever under this Contract. Upon a termination of this Contract, except for its obligations under Paragraph 12.5 below, Comserco shall have no further rights, duties, liabilities or obligations whatsoever under this Contract. Notwithstanding anything in this Contract, including the foregoing, to the contrary, Paragraphs 5, 6, 8, 9, 10, 11.2, 11.3, 11.4, and 11.11 shall survive the termination of this Contract. 8.5 Delivery of Work Product and Documentation. Within three (3) business days after any termination of this Contract, Comserco shall deliver to the City all Work Product (as defined in Paragraph 9) and all Documentation (as defined in Paragraph 4.1) pertaining to this Contract and any and all copies thereof, whether in the possession of Comserco or a party engaged by Comserco; provided, however, that solely for its internal auditing purposes, shall not commence performance of its work under this Contract until the above insurance has been obtained and proof of insurance has been tiled with and approved by the City. 11.7 Assignment Prohibited. No party to this Contract may assign any right or obligation except with the express written consent of the other party; provided, however, that Comserco may purchase from other vendors and manufacturers the Equipment to be delivered by Comserco hereunder, and Comserco may by written request assign any right to receive monies earned hereunder. 11.8 Partial Invalidity. Wherever possible, each provision hereof will be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be limited to the extent required to make such provision valid and enforceable, and if necessary, severed from this Contract. All other terms and conditions shall remain in full force and effect. 11.9 Time of the Essence. Time is of the essence in the performance of this Contract. 1.1.10 Rights and Remedies. The City's rights and remedies under the Contract are cumulative with and in addition to all other legal and equitable rights and remedies which the City may have under applicable law. I//J I2 IN WITNESS "HEREOF, 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 ec' :Z� Eric T. Fresch, City AORey 13 CITY OF VERNON Bv_ = ALE NIS C. MALAURG, mayor 'NCO-MSSERRCO, INC. By-_4 •�'� y Typed Nre: IVA4729i S. Title: V14tF IQG-5 i D&x37- By: Typed Name: GJ�9c.T S• ft'.9Dt/ Title: Ce r�lc.�ICrIL /H�'t/�//9`'� z ComSerCo Conunx ttic coons, lice Customer / Bill to Address : City / St. / Zip Contact Phone # : Fax #: End User Contact Company Address : ern Qtyt Model 1 1 CF29EWPGEKM 1a . 4 CFVDL02MKBS 1b 4 CF-WEB2912 1c 1 CF-VDM292U 2 8 CSC256 3 8 NP-12 4 3 CSSC327 5 4 CSC328 6 1 CSC329 7 7 CF-VZSU18BU Instructions: Sales Payment Terms Paid In Full w/ order C.O.D Lease Net 10 Days Net 30 Days Cust. Terms Approval V388110 City of Vernon Fire Department 4305 Santa Fe Ave. Vernon, Ca. 90058 Bata Chief Kimes (323) 583-4821 x 511 Description Panasonic CF29, 1.3Ghz Centrino, 13.3 Transmissive Touch Screen, 60GB HD, 512 MB Ram,, FDD, Backlit Sealed Key- board, Wireless 802.11 a,b,g, GPRS AT&T1 and WIN XP Pro SP2 Panasonic PDRC w/12.1" Touch Screen, Backlit Sealed Keyboard, No Gid. Pad Port Replicator w/Wreless Pass Thru DVD Multi DRV for CF29 Lind Power Adapter NavPak Vehicle UPS CF29 Computer Mount w/articulated arm PDRC Mount w/tilt and Swivel CF28 Computer Mount w/Tilt & Swivel CF 28 Li -ion Battery Jerry Moskal 2020 Iowa Riverside, Ca 92507 800-453-9880 Ext 213 Sales Tax Code I Order Date 5 Q2/13/04Q Contact Title Batt. Chief Phone Number Ultimate Dest. Zip REV Quote Number Unit Price $6,453.00 $2,850.00 $799.00 $365.00 $198.00 $409.00 $481.00 $326.00 $335.00 $309.00 Equipment Total Freight Sales Tax Installation Grand Total Down Payment Balance Due $11,400.00 $3,1 $1,584.00 $3,272.00 $1,443.00 $1,304.00 $335.00 $2,163.00 $31,615. $472. $7,865 $42,491 $42,491.71 Before signing, please read attachment "A" of this sales order and any applicable warranties and licenses. YOUR SIGNATURE IS AN OFFER TO PURCHASE the products listed above which, if accepted by ComSerCo, Inc., will be a purchase contract with the Terms and Conditions on the attachment "A", (attached) including warranty disclaimers and limitations of ComSerCo liability. Authorized Customer uate County Code Rate Exempt 1 0.00% Los Angeles 2 8.00% Kern Ventura 3 7.00% All other So Cal Counties 4 7.50% Los Angeles 5 8.25% Kern Ventura 6 7.25% All other So Cal Counties 7 7.75% EXHIBIT B INSURANCE SCHEDULE Comserco 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 employ II. Liabilitv General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Independent Contractor $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 1. $2,000,000 $2,000,000 $2,000,000 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: l . An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by City. b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. 14