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Resolution No. 8809 I' ~~ j,M 1 2 3 RESOLUTION NO. 8809 4' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN THE CITY OF VERNON AND ANTHONY J. BALDERE FOR PLANNING, DEVELOPMENT, LICENSING AND CONSTRUCTION OF LIGHT & POWER CAPITAL PROJECTS 5 6 7 8 WHEREAS, the City of Vernon is building the Malburg 9 Generating Station and is in the process of obtaining a permit for the 10 Vernon Power Plant Project; and 11 WHEREAS, the City has determined that it needs the services 12 of a contract administrator and project controls manager to assist the 13 City with the Vernon Power Plant and the Malburg Generating Station 14 projects and other miscellaneous planning, coordination and contract 15 administrative services for these and other capital projects of the 16 City of Vernon (collectively, the "Services"); and 17 WHEREAS, the City has determined that Anthony J. Baldere 18 ("Baldere") possesses the technical knowledge and expertise to furnish 19 the Services required by the City; and 20 WHEREAS, by letter dated July 14, 2005, Donal O'Callaghan, 21 Acting Director of Light & Power, recommended that an agreement with 22 Baldere, be approved and executed; and 23 WHEREAS, the City Council of the City of Vernon has 24 determined that, pursuant to the provisions of subsection (a) of 25 Section 2.27 of the Vernon City Code, it is in the public interest and 26 necessity to enter into an agreement with Baldere. 27 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 28 CITY OF VERNON AS FOLLOWS: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .' . .. ." . ,1 1 SECTION 1: The City Council of the City of Vernon hereby 2 finds and determines that the recitals contained hereinabove are true 3 and correct. 4 SECTION 2: The City Council of the City of Vernon hereby 5 approves the Agreement for Professional Services with Baldere, in 6 substantially the same form as the copy which is attached hereto as 7 Exhibit A and incorporated by reference. 8 SECTION 3: The City Council of the City of Vernon hereby 9 authorizes the Mayor to execute said Agreement for, and on behalf of, 10 the City of Vernon and the Acting City Clerk is hereby authorized to 11 attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one fully executed Agreement to: Anthony J. Baldere 53 LaCrosse Drive Morgan Hill, CA 95037 SECTION 5: The Acting 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 July, 2005. , ~~ '--.. ATTEST: BRUCE V. MALKENHORST JR. / 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 .. . It. '~ . .. STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss I, BRUCE V. MALKENHORST, Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8809, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, July 20; 2005, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) EXHIBIT A / . ..~ C.l .. .., AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE ~ .... .1 ... AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE This agreement for the performance of professional project general management services ("Agreement") is made and entered into on this 20th day of July, 2005 ("Effective Date"), by and between Anthony J. Baldere, an individual sole proprietor ("Contractor"), and the City of Vernon, California, a chartered California Municipal Corporation, ("City"). City and Contractor may be referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement." RECITALS A. City desires to secure professional services more fully described in this Agreement to assist the City in all aspects of planning, development, licensing and construction of a gas turbine electric generation facility, to be located in the City of Vernon; B. Contractor has represented to the City that he has considerable knowledge and experience in the power plant construction industry and that he possesses the professional qualifications, expertise, and desire, necesSary to provide the required professional services of the quality and type which meet the City's requirements; and, C. The Parties have specified in this Agreement the terms and conditions under which such professional project management services will be provided and the terms and conditions of compensation for such services. Contractor and City agree as follows: AGREEMENT PROVISIONS 1. SERVICES TO BE PROVIDED Based representations made by the Contractor to the City that he has required knowledge and experience in the power plant construction industry, that he possesses the professional qualifications, expertise, and desire, and is available to perform the tasks required to assist the City in constructing a combined cycle gas turbine electric generation facility (the "Project") to be located in the City of Vemon, City hereby enters into this Agreement with Contractor to perform the specified services (the "Services"). Such Services are more fully described in Exhibit A, entitled "SCOPE OF SERVICES," attached and incorporated by this reference. Such Services shall include, but not be limited to, the necessary technical and professional services, including any required labor, materials, equipment, transportation, supervision and expertise necessary to satisfactorily complete the Project at his own risk and expense. Agreement for Professional Services / Anthony 1. Baldere Typed: Page I of II . . , ' ! " 2. TERM OF AGREEMENT Unless earlier terminated pursuant to the terms of this Agreement, or subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on August 1, 2005 and terminate at the end of day on July 31, 2006 (the "Term"). Contractor shall begin performing the Services after receiving confirmation from the City to proceed with the Services. 3. COMPENSATION AND PAYMENT In consideration for Contractor's complete performance of the Services, City shall pay Contractor as outlined in Exhibit B, entitled "SCHEDULE OF FEES," attached and incorporated by this reference. 4. NO ASSIGNMENT OF AGREEMENT City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement is for individual professional services and shall not be assigned or transferred without the prior written approval of the Parties. 5. NO THIRD PARTY BENEFICIARY This Agreement shall not be construed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action under this Agreement. 6. INDEPENDENT CONTRACTOR Contractor is an independent contractor and at no time during the Term of this Agreement shall he act as an agent or employee of City. Contractor has full rights to manage his employees, if any, in their performance of Services under this Agreement. Contractor is not authorized to bind City to any contracts or other obligations. 7. SUBCONTRACTING None of the Services provided by the Contractor under this Agreement shall be performed by subcontractors, unless the Contractor specifically identifies such subcontractors in writing and City pre-approves the performance of Services by such subcontractors in writing. Contractor shall be as fully responsible to City for the acts and omissions of such subcontractors, and of any persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by the Contractor. Agreement for Professional Services I Anthony J. Baldere Typed: Page 2 of 11 ". . . 8. USE OF CITY NAME OR EMBLEM Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade journal, newspaper, film or other medium without the prior express written consent of City. 9. AUDITS City, through its authorized representatives, has the right during the term of this Agreement, and for three (3) years from the date of final payment for goods and/or Services provided under this Agreement, Contractor's records regarding matters covered by this Agreement. Contractor agrees to maintain accurate records in accordance with generally accepted accounting principles. Any expenses not so recorded shall be disallowed by City. Contractor agrees to help City meet any reporting requirements with respect to Contractor's Services if requested by City in writing. 10. QUALIFICATIONS OF CONTRACTOR Contractor represents that he is qualified to furnish Services of the type and quality which City requires. City expressly relies on Contractor's representations regarding his skills, knowledge and experience. Contractor shall promptly perform all Services requested by City in a safe manner and in accordance with all federal, state, and local laws and regulations. Contractor shall work closely with the City in this regard. Contractor shall also perform all Services in accordance with generally accepted business practices and performance standards of the industry. 11. MONITORING OF SERVICES City may monitor the Services performed under this Agreement to determine whether Contractor's actions conform to City policy and to the terms of this Agreement. City may also monitor the Services to be performed to determine whether Contractor's operations are conducted in accord with applicable City,' county, state, and federal requirements. If any action of Contractor constitutes a breach of such requirements, City may terminate this Agreement pursuant to the provisions described in this Agreement. 12. WARRANTY Contractor expressly warrants that all Services covered by this Agreement are appropriate for the purpose intended and shall conform to the specifications and requirements upon which this Agreement is based. Contractor agrees to promptly correct any incomplete, inaccurate, or defective Services at no further cost to City when defects are due to the negligence, errors and/or omissions of Contractor. 13. FAIR EMPLOYMENT Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, condition of physical handicap, religion, ethnic background, or marital status, in violation of state or federal law. Agreement for Professional Services / Anthony J. Baldere Typed: Page3 of 11 14. HOLD CITY HARMLESSIINDEMNIFICATION To the extent permitted by law, Contractor agrees to indemnify, protect, defend, and hold harmless City, its City Council, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim, arising from Contractor's negligent, reckless or wrongful acts, errors, or omissions with respect to, or in any way connected with, the performance of the Services by Contractor, its agents, subcontractors and/or assigns under this Agreement. City agrees to indemnify the Contractor from claims arising from his professional errors and omissions or malpractice arising from the Services provided by Contractor to City under the terms of this Agreement. 15. INSURANCE REQUIREMENTS During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall purchase and maintain in full force and effect, all insurance policies required to cover the Contractor's performance of Services under this Agreement, with coverage amounts, required endorsements, certificates of insurance, and coverage verifications as defined in Exhibit C, attached and incorporated by this reference. City shall reimburse Contractor for the premiums related to such insurance policies as set forth in Exhibit B. 16. AMENDMENTS This Agreement may be amended only with the written consent of both Parties. 17. INTEGRATED DOCUMENT This Agreement represents the entire agreement between City and Contractor. No other understanding, agreements, conversations, or otherwise, with any representative of City prior to execution of this Agreement shall affect or modify any of the terms or obligations of this Agreement. Any verbal agreement shall be considered unofficial information and is not binding upon City. 18. SEVERABILITY CLAUSE In case anyone or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect. 19. LAW GOVERNING CONTRACT This Agreement shall be governed and interpreted using the laws of the State of California. Agreement for Professional Services / Anthony 1. Baldere Typed: Page 4 of 11 t. 20. DISPUTE RESOLUTION A. Any controversies or claims between Contractor and City regarding this Agreement must first be put in writing and delivered to the other Party. The Parties will meet in good faith to attempt to resolve the issue in question. If the Parties fail to come to an agreement on the resolution of the issue, all required administrative procedures must be followed. If all administrative procedures are exhausted and the Parties are unable to resolve the issue; the matter must be submitted to mediation within thirty (30) calendar days after the written request for mediation is delivered by one of the Parties to the other Party. B. The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request that the Superior Court of Orange County appoint a mediator. The mediation meeting shall not exceed one work day [eight (8) hours]. The Parties may agree to extend the time allowed for mediation under this Agreement. C. Mediation under this section is a condition precedent to filing an action in any court. In the event litigation or mediation arises out of any dispute related to this Agreement, the Parties shall each pay their respective attorneys' fees, expert witness costs and cost of suit, regardless of the outcome of the litigation. D. Only after both the administrative dispute resolution procedure and the mediation procedure have failed to resolve a dispute between the Parties shall be settled by arbitration before three arbitrators, pursuant to the commercial arbitration rules of the American Arbitration Association, in San Francisco, California; provided however, that any award pursuant to such arbitration shall be accompanied by a written opinion of the arbitrators giving the reasons for the award. The arbitrators shall be selected by the joint agreement of City and Contractor, but if they do not so agree within thirty (30) days of the date of request for arbitration, the selection shall be made pursuant to the rules of such Association. The award rendered by the arbitrators shall be conclusive and binding upon the Parties, and judgment upon the award may be entered in any court having jurisdiction or application may be made to such court for a judicial acceptance of the award and an order of enforcement. Each party shall pay its own expenses of arbitration and the expenses of the arbitrators (including their compensation) shall be equally shared; except that, if any matter of dispute raised by a Party or any defense or objection thereto was unreasonable, the arbitrators may assess, as part of their award, all or any part of the arbitration expenses (including reasonable attorneys' fees) of the other Party and of the arbitrators against the Party raising such unreasonable matter of dispute or defense or objection. Nothing in this Agreement shall prevent City and Contractor from settling any dispute by mutual agreement at any time or from agreeing to have any arbitration conducted by a single arbitrator. Agreement for Professional Services / Anthony J. Baldere Typed: Page 5 of 11 21. VENUE The venue of any suit filed by either Party shall be vested in the state courts of Orange County, or if appropriate, in the United States District Court, Los Angeles, California. 22. ELECTION OF REMEDIES The pursuit by any Party of any specific remedy shall not exclude any other remedy available to the Party. 23. CONFLICT OF INTERESTS This Agreement does not prevent either Party from entering into similar agreements with other parties. To prevent a conflict of interest, Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code Section 87100 and following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises. 24. TERMINATION OF THE AGREEMENT A. Termination Without Cause Either Party may terminate this Agreement without cause by giving the other Party written notice ("Notice of Termination") which clearly expresses that Party's intent to terminate the Agreement. Pursuant to this type of Notice of Termination, such termination shall become effective no less than thirty (30) calendar days after a Party receives such notice. After receipt of such notice from either Party terminating the Agreement, Contractor shall discontinue providing any further Services as of the effective date of termination. City shall pay Contractor for all Services satisfactorily performed up to such date. B. Termination For Cause Nothing in this Agreement shall be construed to prevent the termination of the Agreement by City at any time for "cause." For purposes of this Agreement, "cause" shall mean the failure of Contractor to observe or perform (other than by reason of illness, injury or incapacity) any of the material terms or provisions of this Agreement "Cause" may include dishonesty, willful misconduct, conviction of a felony or other crime involving moral turpitude, misappropriation of funds, habitual insobriety, substance abuse, any action on the part of Contractor involving willful and deliberate malfeasance or gross negligence in the performance of his duties and responsibilities under this Agreement. Agreement for Professional Services / Anthony J. Baldere Typed: Page 6 of 11 . ' . . Should either Party default in the performance of this Agreement or materially breach any of its provisions, the nondefaulting Party may terminate this Agreement for Cause by giving five (5) days written Notice of Termination to the defaulting Party. For purposes of this Agreement, the term "material breach" or "default" shall mean the failure of any Party to perform any material obligation in the time and manner provided by this Agreement. Pursuant to this type Notice of Termination, such termination shall become effective no less than five (5) calendar days after a Party receives such notice. Such Notice of Termination for cause shall include a statement by the terminating Party setting forth grounds for determination of default under the Agreement. In the event this Agreement is terminated for cause as set forth under this section, City shall pay Contractor for all Services, (excluding any performance incentives), satisfactorily performed up to the date of the Notice of Termination. City may deduct from such payment the amount of actual damage, if any, sustained by City due to Contractor's failure to perform the Services or for breach of this Agreement. Thereafter, City shall have no further liability or obligation to Contractor. C. Opportunity to Cure Default Upon receipt of a Notice of Termination by a Party arising from its default under this Agreement, the defaulting Party shall have five (5) days from the receipt of such notice to cure the default by making such payment or performing the required obligation. If the default is cured to the mutual satisfaction of the Parties, the Agreement shall remain in effect upon written acceptance of the cure by the Party who issued the Notice of Termination for cause. D. Termination on Occurrence of Stated Events This Agreement shall automatically terminate upon the occurrence of any of the following events: 1. Partial or Total Disability. If, in the judgment of the City, Contractor is unable to perform his duties and responsibilities under this Agreement by reason of illness, injury or incapacity for three consecutive months, or for more than three months in the aggregate during any period of twelve (12) calendar months, during which time City shall continue to compensate Contractor (with such compensation to be reduced by the amount of any payments due Contractor for this time period under any applicable disability benefit programs, including Social Security disability, workers' compensation and/or disability retirement benefits), this Agreement may be terminated by City. In that event, City shall have no further liability or obligation to Contractor except for (i) unpaid compensation accrued to the date of termination (excluding any other severance benefits or payments), and (ii) a pro rata portion of any performance incentives, referred to in Exhibit B, which was earned during the period prior to the date on which Contractor first became disabled. Contractor agrees, in the event of any dispute regarding this Agreement for Professional Services I Anthony J. Baldere Typed: Page 7 of 11 . . Section and if requested by City, to submit to a physical examination by a licensed physician mutually agreed upon by the Parties, the cost of such examination to be paid by City. 2. Death. In the event that Contractor dies during the Term of this Agreement, City shall pay to his executors, administrators or personal representatives, as appropriate, an amount equal to the installment of his compensation payable for the month in which he dies. Thereafter, City shall have no further liability or obligation to Contractor's executors, administrators, personal repre- sentatives, heirs, assigns or any other person claiming under or through him, except for a pro rata portion of any performance incentives, referred to in Exhibit B earned during the period prior to the date on which Contractor died. 3. Theft, fraud embezzlement, dishonesty or other similar behavior by Contractor; or 4. Any habitual neglect of duty of Contractor in discharging any of his duties under this Agreement. E. Termination for Failure to Make Agreed-Upon Payments Should City fail to pay Contractor all or any part of the compensation set forth in this Agreement on the date due, Contractor, at the Contractor's option, may terminate this Agreement if the failure is not remedied by City within thirty (30) days from the date payment is due. 25. CONFIDENTIALITY OF DATA AND MATERIAL A. All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Such data information or reports may be viewed by or distributed to third parties only after prior written approval of City. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential. B. Contractor shall take reasonable efforts to safeguard any and all City property entrusted to Contractor's custody or control; however, Contractor shall not be liable to City for any loss, damage, or destruction of any such property unless Contractor's actions constitute negligence or reckless disregard of City's property. Agreement for Professional Services / Anthony J. Baldere Typed: Page 8 of 11 : . '. . C. A Party disclosing information to the other which it considers to be Confidential Information, shall clearly label that information "Confidential" before disclosing it to the other Party. Confidential Information means information which is of a non-public, proprietary or confidential nature belonging to the Disclosing Party, including without limitation, all reports and analyses, technical and economic data, studies, forecasts, trade secrets, research or business strategies, financial or contractual information, gas or coal reserve information, rates, loads, energy requirements, certain sales market information, research, developmental, engineering, manufacturing, technical, marketing, sales, financial, operating, performance, cost, business and process information or data, know-how, and computer programming or other written or oral information. Confidential Information may be in any form whatsoever, including without limitation writings, recordings, electronic or oral data, computer programs, logic diagrams, component specifications, drawings or other media. D. Contractor acknowledges that City is a public agency subject to the requirements of the California Public Records Act Cal. Gov. Code section 6250 et seq. City acknowledges that Contractor may submit information to City that Contractor considers confidential, proprietary, or trade secret information pursuant the Uniform Trade Secrets Act (Cal. Civ. Code section 3426 et seq.), or otherwise protected from disclosure pursuant to an exemptions to "the California Public Records Act (Government Code sections 6254 and 6255). Contractor acknowledges that City may submit to Contractor information that City considers confidential or proprietary or protected from disclosure pursuant to an exemptions to the California Public Records Act (Government Code sections 6254 and 6255). Upon request or demand of any third person or entity not a party to this Agreement ("Requestor") for production, inspection and/or copying of information designated by a Disclosing Party as Confidential Information, the Receiving Party as soon practical but within three (3) days of receipt of the request, shall notify the Disclosing Party that such request has been made by telephone call, letter sent via facsimile and/or by US Mail to the address and facsimile number listed at the end of the Agreement. The Disclosing Party shall be solely responsible for taking whatever legal steps are necessary to protect information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the Receiving Party. If the Disclosing Party takes no such action, after receiving the foregoing notice from the Receiving Party, the Receiving Party shall be permitted to comply with the Requestor's demand and is not required to defend against it. E. The Receiving Party may cooperate with the Disclosing Party in any efforts to prevent release of the Confidential Information; however, the Receiving Party shall not be required to expend any monies in excess of the cost of notifying the Disclosing Party by telephone, facsimile and/or mail of the pendency of a demand for the Confidential Information. So long as the Receiving Party complies with the provisions of notification set forth in this Agreement, the Receiving Party shall not be liable for, and Customer and City hereby release each other from, any liability for any Agreement for Professional Services / Anthony J. Baldere Typed: Page 9 of 11 .' damages arising from any requirement under the law that the Receiving Party release Confidential Information to a Requestor, and such release includes the officers, commissioners, employees, agents, council members, and directors, as those terms may apply to each Party hereto, without limitation. F. The Receiving Party may, at its sole expense, institute, or intervene in any proceeding, in order to protect the Confidential Information from disclosure, and if the Disclosing Party requests and agrees in writing to indemnify the Receiving Party from any expense or liability for expenses, the Receiving Party may cooperate actively in any such action or proceeding; provided, however, that the Receiving Party shall have no duty to the Disclosing Party to actively cooperate, notwithstanding an offer by the Receiving Party to provide a complete indemnity. 26. NOTICES All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows: City of Vernon Attn. Acting City Clerk 4305 Santa Fe Ave. Vernon, CA 90058 And to Contractor address as follows: Anthony J. Baldere 53 LaCrosse Drive Morgan Hill, CA 95037 27. COMPLIANCE WITH ETHICAL STANDARDS Contractor shall: a. read Exhibit D, entitled "ETHICAL STANDARDS FOR CONTRACTORS SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF VERNON, CALIFORNIA," attached and incorporated by this reference; and, III III III III III III Agreement for Professional Services / Anthony J. Baldere Typed: Page 10 of II b. execute Exhibit E, entitled "AFFIDAVIT OF COMPLIANCE WITH ETHICAL STANDARDS" attached and incorporated by this reference. The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date. CITY OF VERNON, CALIFORNIA a chartered California municipal corporation CITY OF VERNON By: LEONIS C. MALBURG, Mayor ATTEST: BRUCE V. MALKENHORST, Acting City Clerk APPROVED AS TO FORM: ERIC T. FRESCH, City Attorney Address: 4305 Santa Fe Ave. Vernon, CA 90058 "City" ANTHONY J. BALDERE, an individual sole proprietor By: Anthony J. Baldere Address: 53 LaCrosse Drive Morgan Hill, CA 95037 Telephone: Facsimile: E-mail: (408) 776-9196 N/A tony. tracey@verizon.net "Contractor" Agreement for Professional Services I Anthony 1. Baldere Typed: Page II oft I AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE EXHIBIT A SCOPE OF SERVICES Section 1. Scope of Services to be performed by the Contractor For the Term of this Agreement, Contractor shall supply the required Project Management Services to the City, to assist the City in all aspects of planning, developing, licensing, erection, and commissioning of a gas turbine facility to be located in the City of Vernon (the "Project"). Contractor shall utilize all or his internal processes, procedures, skill sets, and experience. The specific services will be delivered under the following position description: Position Description: Reportinl! to: Project Controls / Contracts Manager Director of Light & Power As an independent contractor, Contractor will determine the method, detail~, and means of performing the above-described Services. Method of Performing Services Section 2. Specific Duties, Responsibilities and Services During the Term of this Agreement Pursuant to all applicable City policies and procedures, Contractor will provide the Services, of Project Controls Manager. As directed by the Director of the Utility, Contractor shall be responsible for performing all required services, including but not limited to, the following: · Manage the bidding, award, and the closeout of all equipment procurement and public works contracts. · Support the effort of obtaining the permits necessary to construct and operate an electric generating facility. · Assist in the development and maintenance of the overall Project schedule identifying all major Project milestones, critical path construction activities, major equipment deliveries, utility interconnection deliverables, and key permit requirements. Agreement for Professional Services / Anthony J. Baldere Scope of Services Exhibit A Page 1 of2 .. " ~ .,' . Maintain an accurate account of the overall Project costs. . Develop and submit periodic financial reports as required by the local municipality and/or regulatory agencies. . Manage the development of regular Project status reports. . Manage the internal and external contract administration functions. . Implement the Project administration requirements including document control, invoices, and City Council approvals. . Other activities as required by the Director ofthe Utility. Section 3. Time Devoted to Work In the performance of Contractor's services, the services and the hours Contractor is to work on any given day will be entirely within Contractor's control. Contractor will perform its Services for City in a workmanlike manner and in accordance with applicable industry standards. Section 4. Place of Work Unless otherwise informed by the City to the contrary, Contractor shall perform the Services required by this Agreement at any place or location, as Contractor shall determine. Page 2 o~2 Agreement for Professional Services / Anthony 1. Baldere Scope of Services Exhibit A " . .' AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE EXHIBIT B SCHEDULE OF FEES In no event shall the amount billed to City by Contractor for services under this Agreement exceed three hundred dollars ($300,000.00) dollars, subject to budget appropriations. 1. Base Compensation In consideration for Services rendered, the City shall pay the Contractor a fee of sixteen ($16,000) for each month worked by Contractor from August 1, 2005 through July 31, 2006 based upon a standard forty-hour (40-hr) workweek, Monday thru Friday. Hours worked in excess of the standard forty-hour (40-hr) workweek shall be compensated on an equivalent hourly basis. Such amount shall fully compensate Contractor and no other incidental and ancillary employee benefits shall be paid associated with the Contractor's Services. Payment of this sum shall be due and payable within twenty (20) days of receipt by the City of an invoice from Contractor. 2. Expense Reimbursement A. Per Diem Rate During the term of this Agreement, the City will pay Contractor a monthly Per Diem rate equal to five thousand ($5,000.00) dollars. Such rate shall commence on the first date of travel to site and will be all inclusive of local living expenses, lodging, transportation, meals, and incidental expenses. B. Project Related Expenses During the term of this Agreement, the City will reimburse Contractor for project related expenses, including but not limited to, the following: insurance premiums to the limits outlined in Exhibit C, travel to project required meetings, airfare, lodging and food. Such expenses shall be limited to ten thousand ($10,000.00) dollars. (1) Upon submission of itemized written monthly invoices, the City shall reimburse the Contractor specified out of pocket expenses for the following: a. Reimbursable out of pocket expenses shall include travel expenses at cost, with no mark-up. Airfare shall be reimbursed at economy Agreement for Professional Services / Anthony J. Baldere Schedule of Fees Exhibit B Page lof2 . .' class, unless economy class seating is unavailable through no fault of the Contractor. Reasonable attempts shall be made to make air travel reservations in advance in order to take advantage of lower fares. In the event that travel plans must be canceled or re- scheduled due no fault of the Contractor, then the City shall pay for any costs associated therewith; if the travel is canceled or re- scheduled due to the fault of the Contractor, then the Traveling Party shall bear the expense. Invoices for travel expenses shall be supported by receipts, and shall be reimbursed in accordance with this Agreement. 3. State and Federal Taxes Because Contractor is not City's employee, Contractor is solely responsible for paying all state and federal taxes or contributions or certain insurance policies, including but not limited to, the following: . City will not withhold FICA (Social Security) from Contractor's payments; . City will not make state or federal unemployment insurance contributions on Contractor's behalf; . City will not withhold state or federal income tax from payment to Contractor; . City will not make disability insurance contributions on behalf of Contractor; and . City will not obtain or pay for workers' compensation insurance on behalf of Contractor. 4. Vacation, Holidays, and Home Leave This position is considered a salaried consulting position. Normal City observed holidays and accrued vacation time will be paid. Vacation will be accrued at one week for each 4 months on assignment. Agreement for Professional Services / Anthony J. Baldere Schedule of Fees ExhibitB Page 2 of2 . ,..... AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE EXHIBIT C STANDARD INSURANCE REQillREMENTS Contractor, and its subcontractor(s), if any, shall purchase and maintain the insurance policies set forth below on all of its operations under this Agreement. Such policies shall be maintained for the full term of this Agreement and the related warranty period (if applicable). For purposes of the insurance policies required under this Agreement, the term "City" shall include the duly elected or appointed council members, commissioners, officers, agents, employees, and volunteers of the City of Vernon, California, individually or collectively. 1. MINIMUM SCOPE AND LIMITS OF REQillRED INSURANCE POLICIES The following policies shall be maintained with insurers authorized to do business in the State of California and shall be issued under forms of policies satisfactory to the City: a. COMMERCIAL GENERAL LIABILITY INSURANCE POLICY (CGL). Policy shall include coverage at least as broad as set forth in Insurance Services Office (herein "ISO") Commercial General Liability coverage. (Occurrence Form CG 0001) with policy limits not less than the following: $1,000,000 each occurrence (combined single limit); $1,000,000 for personal injury liability; $1,000,000 aggregate for products-completed operations; and, $1,000,000 general aggregate applying separately to this project. b. AUTOMOBILE LIABILITY POLICY (AL). This policy shall include a minimum combined single limit of not less than one million ($1,000,000) dollars for each accident, for bodily injury and/or property damage. c. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE POLICY (WCIEL). Agreement for Professional Services / Anthony J. Baldere Standard Insurance Requirements Exhibit C Page 1 of3 " . . ,. A Worker's Compensation Policy is required only if Contractor has employees or volunteers. These policies shall include at least the following coverages and policy limits: 1. Workers' Compensation insurance as required by the laws of the State of California; and 2. Employer's Liability InsuraJ1ce with coverage amounts not less than one million ($1,000,000) dollars each accident/Bodily Injury (herein "BI"); one million ($1,000,000) dollars policy limit BI by disease; and, one million ($1,000,000) dollars each employee BI by disease. 2. DEDUCTIBLES AND SELF-INSURANCE RETENTIONS Any deductibles and/or self insured retentions which apply to any of the insurance policies referred to above shall be declared in writing by Contractor and approved by the City before work is begun pursuant to this Agreement. At the option of the City, Contractor shall either reduce or eliminate such deductibles or self-insured retentions as respect the City, its City Council, commissions, officers, employees, volunteers and agents, or shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and/or defense expenses. 3. ENDORSEMENTS All of the following clauses and endorsements, or similar provisions, are required to be made a part of. the required insurance policies indicated in. parentheses below: a. Additional Insureds The City of Vernon, its City Council, commissions, officers and employees are hereby added as additional insureds in respect to all liability arising out of the Contractor's work for the City, providing coverage at least as broad as Insurance Services Office (ISO) Endorsement CG 2010, 1985 Edition, or insurer's equivalent (CGL); b. Primary Insurance This policy shall be considered primary insurance in respect to any other valid and collectible insurance City may possess, including any self-insured retention City may have, and, any other insurance City does possess shall be considered excess insurance only and shall not be called upon to contribute with this insurance (CGL & BAL); c. Notice of Cancellation No cancellation shall be effective until written notice has been given at least thirty (30) days prior to the effective date of such cancellation to City at the address set forth below, except the insurer Agreement for Professional Services I Anthony J. Baldere Standard Insurance Requirements Exhibit C Page 2 of3 may give ten (10) days notice for nonpayment of premium (CGL, BAL, WC/EL &PL); and 4. ABSENCE OF INSURANCE COVERAGE City may direct Contractor to immediately cease all activities with respect to this Agreement if it determines that Contractor fails to carry, in full force and effect, all insurance policies with coverages at or above the limits specified in this Agreement. Any delays of expense caused due to stopping of work and change of insurance shall be considered Contractor's delay and expense. At the City's discretion, under conditions of lapse, City may purchase appropriate insurance and charge all costs related to such policy to Contractor. 5. PROOF OF INSURANCE VERIFICATION COVERAGE AND COVERAGE A Certificate of Insurance, on an Accord form, and implementing endorsements shall be provided to city by each of Contractor's insurance companies as evidence of . the stipulated coverages prior to commencement of work "under this Agreement, and annually thereafter at least ten (10) days prior to termination of existing coverage for the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by this Agreement at any time. All of the insurance companies providing insurance for Contractor shall have, and provide evidence of, a Best Rating Service rate of "A VI" or above. The Certificate of Insurance and coverage verification and all other notices related to cancellation shall be mailed to: Office of the City Clerk Attn. Risk Management 4305 Santa Fe Avenue Vernon, CA 90058 Agreement for Professional Services I Anthony J. Baldere Standard Insurance Requirements Exhibit C Page 3 of3 . '. AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE EXHIBIT D ETHICAL STANDARDS FOR CONTRACTORS SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF VERNON, CALIFORNIA Termination of Agreement for Certain Acts A. The City may, at its sole discretion, terminate this Agreement in the event anyone or more of the following occurs: 1. If a Contractorl does any of the following: a. Is convicted2 of operating a business in violation of any Federal, State or local law or regulation; b. Is convicted of a crime punishable as a felony involving dishonesty.3; c. Is convicted of an offense involving dishonesty or is convicted of fraud or a criminal offense in connection with: (1) obtaining; (2) attempting to obtain; or, (3) performing a public contract or subcontract; d. Is convicted of any offense which indicates a lack of business integrity or business honesty which seriously and directly affects the present responsibility of a City contractor or subcontractor; and/or, For purposes of this Agreement, the word "Contractor" (whether a person or a legal entity) means any of the following: an owner or co-owner of a sole proprietorship; a person who controls or who has the power to control a business entity; a general partner of a partnership; a principal in a joint venture; or a primary corporate stockholder [i.e., a person who owns more than ten percent (10%) of the outstanding stock of a corporation] and who is active in the day to day operations of that corporation. 2 For purposes of this Agreement, the words "convicted" or "conviction" mean a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere within the past five (5) years. 3 As used herein, "dishonesty" includes, but is not limited to, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, failure to pay tax obligations, receiving stolen property, collusion or conspiracy. Page 1 of2 Agreement for Professional ServiCes / Anthony J. Baldere Ethical Standards for Contractors Exhibit D . . . T. e. Made (or makes) any false statement(s) or representation(s) with respect to this Agreement. 2. If fraudulent, criminal or other seriously improper conduct of any officer, director, shareholder, partner, employee or other individual associated with the Contractor can be imputed to the Contractor when the conduct occurred in connection with the individual's performance of duties for or on behalf of the Contractor, with the Contractor's knowledge, approval or acquiescence, the Contractor's acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval or acquiescence. B. The City may also terminate this Agreement in the event anyone or more of the following occurs: 1. The City determines that Contractor no longer has the financial capability4 or business experience5 to perform the terms of, or operate under, this Agreement; or, 2. If City determines that the Contractor fails to submit information, or submits false information, which is required to perform or be awarded a contract with City, including, but not limited to, Contractor's failure to maintain a required State issued license, failure to obtain a City business license (if applicable) or failure to purchase and maintain bonds and/or insurance policies required under this Agreement. C. In the event a prospective Contractor (or bidder) is ruled ineligible (debarred) to participate in a contract award process or a contract is terminated pursuant to these provisions, Contractor may appeal the City's action to the City Council by filing a written request with the City Clerk within ten (10) days of the notice given by City to have the matter heard. The matter will be heard within thirty (30) days of the filing of the appeal request with the City Clerk. The Contractor will have the burden of proof on the appeal. The Contractor shall have the opportunity to present evidence, both oral and documentary, and argument. 4 Contractor becomes insolvent, transfers assets in fraud of creditors, makes an assignment for the benefit of creditors, files a petition under any section or chapter of the federal Bankruptcy Code (11 V.S.C.), as amended, or under any similar law or statute of the United States or any state thereof, is adjudged bankrupt or insolvent in proceedings under such laws, or a receiver or trustee is appointed for all or substantially all of the assets of Contractor. Loss of personnel deemed essential by the City for the successful performance of the obligations of the Contractor to the City. 5 Agreement for Professional Services / Anthony J. Baldere Ethical Standards for Contractors Exhibit D Page 2 of2 <<., . . . " '" .. AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF VERNON, CALIFORNIA AND ANTHONYJ.BALDERE EXHIBIT E AFFIDA VIT OF COMPLIANCE WITH ETHICAL STANDARDS [CITY OF VERNON] I, Anthony J. Baldere, an individual sole proprietor, being first duly sworn, depose and say that I have read and understand the language, entitled "ETHICAL STANDARDS FOR CONTRACTORS SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF VERNON, CALIFORNIA" (herein "Ethical Standards") set forth in Exhibit D. I have authority to make these representations on my own behalf or on behalf of the legal entity identified herein. I have examined appropriate business records and I have made inquiry of those individuals potentially included within the definition of "Contractor" contained in the Ethical Standards. Based on my review of the appropriate documents and the necessary inquiry responses, I hereby state that neither the business entity nor any individual(s) belonging to a category identified in footnote #1 of Exhibit D [i.e., owner or co-owner of a sole proprietorship, general partner, person who controls or has power to control a business entity, etc.] has been convicted of anyone or more of the crimes identified in Exhibit D within the past five (5) years. The above assertions are true and correct and are made under penalty of perjury under the laws of the State of California. an individual sole proprietor Anthony J. Baldere NOTARY'S ACKNOWLEDGMENT TO BE ATTACHED Please execute the affidavit and attach a notary public's acknowledgment of execution of the affidavit by the signatory. If the affidavit is on behalf of a corporation, partnership, or other legal entity, the entity's complete legal name and the title of the person signing on behalf of the legal entity shall appear above, Written evidence of the authority of the person executing this affidavit on behalf of a corporation, partllership, joint venture, or any other legal entity, other than a sole proprietorship, shall be attached. Agreement for Professional Services / Anthony J. Baldere Affidavit of Compliance Exhibit E Page 1 of 1