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Resolution No. 88131 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 RESOLUTION NO. 8813 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND MCHALE PERFORMANCE FOR PERFORMANCE TESTING NECESSARY FOR THE COMMISSIONING OF THE MALBURG GENERATING STATION WHEREAS, the City of Vernon ( "City ") is constructing a 134 MW Combined Cycle Power Plant, the Malburg Generating Station (the "Malburg Project "), for the purpose of installing additional generating capacity that will yield an efficient, cost - effective, and reliable source of electric generation to the City's inhabitants; and WHEREAS, on July 16, 2003, the City Council of the City of Vernon adopted Resolution No. 8252 with the intention of expediting the purchase of supplies and services for the Malburg Project; and WHEREAS, in order to meet the California Energy Commission guidelines for Plant Certification, the City has determined that it needs a consultant to perform a third party test to measure plant performance to ensure that the plant will deliver the energy needed to satisfy all of the contractual obligations engaged in by the City (collectively, the "Performance Testing Services "); and WHEREAS, by memo dated July 13, 2005, Donal O'Callaghan, Acting Director of Light & Power, recommended that the City retain the services of McHale Performance to provide the Performance Testing Services for the Malburg Project; and WHEREAS, the City has determined that McHale & Associates, Inc. ( "McHale ") possesses the technical knowledge and expertise to furnish the Performance Testing Services required by the City; and 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 WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into an agreement with McHale. 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 authorizes the City Attorney, or his designee, to take all steps necessary and appropriate to enter into an agreement with McHale to provide the Performance Testing Services for the Malburg Project. SECTION 3: The City Council of the City of Vernon hereby authorizes the City Attorney, or his authorized designee, to execute said contract services agreement for, and on behalf of, the City of Vernon. 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: / / / McHale & Associates, Inc. Attn. Patrick M. McHale, P.E., President 1635 235th Avenue SE Sammamish, WA 98075 -8115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The 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: / 4_ d... 0 --. c LEONIS C. BURG, Mayor BRUCE V. MALKENHORST, Acting City Cle , 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 STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES I, BRUCE V. MALKENHORST, Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8813, 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) BRUCE V. MALK HORST JR., ACTING CITY CLER SUPPORTING DOCUMENTS SERVICES AGREEMENT This AGREEMENT ( "Agreement ") is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes, as of this/2111 day of- August, 2005, in the City of Vernon, County of Los Angeles, California. ;tier- BY AND BETWEEN AND CITY OF VERNON, a municipal corporation, hereinafter referred to as the "City" 4305 Santa Fe Avenue Vernon, California 90058 McHALE & ASSOCIATES, INC., an independent contractor, hereinafter referred to as the "Contractor" 1635 235th Avenue SE Sammamish, Washington 98075 -8115 RECITALS WHEREAS, the City has determined to retain the services of an independent contractor to perform a third party test to measure the Malburg Generating Station's performance in order for the City to meet the California Energy Commission guidelines for Plant Certification; and WHEREAS, Contractor has prepared a proposal dated April 13, 2005, for the Services, a copy of which is attached hereto as Exhibit A and incorporated by this reference (the "Proposal "); and WHEREAS, Contractor represents that it is qualified and capable of furnishing the labor, materials and expertise necessary to perform the Services that the City requires, as set forth in this Agreement, and is willing to do so on the terms and conditions set forth below; and WHEREAS, the plant performance test has been bid, and Contractor's cost proposal is acceptable to the City; and WHEREAS, the City desires to enter into an agreement with Contractor to provide the plant performance test for the Malburg Generating Station on a contract basis as defined in the terms and conditions set forth below. Page 1 of 19 NOW, THEREFORE, IT IS AGREED AS FOLLOWS: SECTION 1. TERM OF CONTRACT 1.01. This Agreement will become effective on cF.prEnvsFe. IS ZO 5 , and will continue in effect until such time as the City receives a final report of the plant performance test for the Malburg Generating Station or until terminated as provided in this Agreement. SECTION 2. DEFINITION OF TERMS 2.01. Whenever used in the Agreement, the following terms shall mean: A. "Agreement" shall mean that formally executed Agreement or Contract which includes the Contract Documents attached. The Agreement constitutes the entire agreement between the parties relating to its subject matter. B. "City" shall mean the City of Vernon, California, the entity which has executed the Agreement and, where applicable, its affiliated companies, and its officers, directors, employees, representatives and agents. "Contractor" shall mean McHale & Associates, Inc. and where applicable, its affiliated companies, and its officers, directors, employees, representatives and agents. D. "Contract Documents" shall include any inquiry, invitation to bid, or proposal which may have, but not necessarily, preceded execution of the Agreement, and including the General Provisions and all exhibits and schedules attached to the Agreement and all plans and specifications identified in the Contract Documents. E. "Contract Price" shall mean the compensation set forth or provided for in Section 4.01 of this Agreement. Whether it expressly provides for the reimbursement of costs incurred by Contractor or simply for the payment of a lump sum of money, it is intended to be the full and complete payment for satisfactory completion of the Work and, unless otherwise stated, to cover all costs whether for materials, equipment, tools, labor, services and taxes and all overhead, rentals and profit or fee, if any. F. "General Provisions" or "General Conditions" shall mean the General Provisions as set forth in this Agreement. Page 2 of 19 G. "Premises" shall mean the physical premises under City's control or ownership where Work hereunder is to be performed. H. "Proprietary Information" and "Confidential Information" shall mean all information, whether written or oral, which Contractor acquires from, through or on behalf of City, directly or indirectly, or which arises out of the Work, concerning the Work or proprietary processes involved in the Work including, without limitation, information concerning past, present or future business plans of City, information about the operations of City's Premises, and other City information or know -how obtained during the Work, except information falling into any of the following categories: 1. Information which, at the time of disclosure hereunder, is in the public domain; 2. Information which, after disclosure hereunder, enters the public domain, except where such entry is the result of Contractor's, or any entity within Contractor's control, breach of this Agreement; 3. Information which, prior to disclosure hereunder, was already in Contractor's possession without limitation regarding disclosure to others; or 4. Information which, subsequent to disclosure hereunder, is obtained by Contractor from a third party who is lawfully in possession of such information and not subject to a contractual or fiduciary relationship to City with respect to said information and who does not require Contractor to agree to refrain from disclosing such information to others. I. "Subcontractor" shall mean any first or lower -tier subcontractor and its employees, representatives, agents, subcontractors or other personnel who have been approved in the manner required by this Agreement. J. 'Work" or "Services" shall mean the work performed by Contractor and required to be performed from time to time by City under this Agreement. Page 3of19 SECTION 3. SERVICES TO BE PERFORMED BY CONTRACTOR Specific Services 3.01. Contractor's Services shall include, but will not be limited to performing a third party test to measure the Malburg Generating Station's performance in order for the City to meet the California Energy Commission guidelines for Plant Certification. The Contractor's Services are more specifically detailed in the Proposal attached hereto as Exhibit "A" and incorporated herein by this reference. 3.02. Contractor shall be responsible for traffic control on the Work site when necessary and shall take all precautions to ensure the safety of pedestrians, vehicular traffic, and personnel. Change of Services 3.03. City may at any time, by written change order executed by the City Clerk, make changes only to extend the Work duration and total compensation of Contractor's Work. Changes in the scope of Work, or duties and obligations, shall be authorized only by the City. 3.04. City may make "Changes" by increasing, reducing or deviating from the requirements of the scope of Work. Contractor is entitled to a Change Order only if City imposed Changes materially affect the performance of the Work. A form of Change Order is set forth in Exhibit "B" attached hereto and incorporated by reference. Timing of Services 3.05. Contractor's Services shall commence upon the execution of this Agreement by both parties and award by the City Council and shall end at such time as the City receives a final report, in a form acceptable to the City, of the third party test to measure the Malburg Generating Station's performance in order for the City to meet the California Energy Commission guidelines for Plant Certification, unless this Agreement is otherwise terminated according to Section 6 of this Agreement or extended according to the conditions and terms set forth in this Agreement. 3.06. Time is of the essence for all Work contemplated by this Agreement. Contractor shall start performing Services under this Agreement only after notification by the City. Page 4 of 19 Method of Performing Services 3.07. Contractor will determine and is responsible for the method, details, and means of performing the above- described Services. Status of Contractor 3.08. Contractor enters into this Agreement, and will remain throughout the term of this Agreement, as an independent contractor. Contractor agrees that it is not and will not become an employee, partner, agent, or principal of City while this Agreement is in effect. Contractor agrees it is not entitled to the rights or benefits afforded to City's employees, including disability or unemployment insurance, workers' compensation, medical insurance, sick leave, or any other employment benefit. Contractor is responsible for providing, at its own expense, disability, unemployment, and other insurance, worker's compensation, training, permits, and licenses for itself and for its employees and subcontractors. Contractor shall have complete and sole control over its employees, the details of the Services and methods by which the Services are accomplished, it being understood that City is interested only in the results to be obtained by Contractor. 3.09. Contractor has no authority to enter contracts or agreements on behalf of City. This Agreement does not create a partnership or joint venture between the parties. Payment of Taxes 3.10. Contractor is responsible for paying when due all income taxes, including estimated taxes, incurred as a result of the compensation paid by City to the Contractor for Services under this Agreement. Contractor agrees to indemnify City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor's failure to comply with this provision. 3.11. Payroll taxes including federal, state and local taxes shalt not be withheld or paid by City on behalf of Contractor or for the employees of the Contractor. Contractor shall not be treated as an employee with respect to the Services performed hereunder for federal or state tax purposes. Contractor shall be responsible to pay taxes mandated by law. 3.12. Since Contractor is not an employee of City, Contractor is not eligible for and shall not participate in any employee benefit of City, including pension, health or other fringe benefits. Page 5 of 19 SECTION 4. COMPENSATION 4.01. In consideration for the Services to be performed by Contractor, described in Section 3 of this Agreement, City agrees to pay Contractor the sum of Eight Two Thousand Six Hundred Twenty and no /100 Dollars ($82,620.00) (the "Contract Price "). Entire Compensation & 4.02. The Contract Price is full and complete compensation, and con titutes the entire compensation due Contractor for the Services and any and all f Contractor's obligations hereunder, regardless of difficulty, unforeseen cir mstances, hours worked or equipment, materials or personnel required. The ontract Price includes without limitation compensation for applicable taxe , customs duties, fees, overhead, profit, travel time to and from the Premises and all other direct and indirect costs incurred or to be incurred by Contractor hereunder. The Contract Price set forth above is not subject to escalation for any reason except as expressly set forth in this Agreement. No adjustments in compensation shall be made as a result of changes in the value of any currency. The Contract Price shall only be adjusted by formal, written Change Order or amendment to this Agreement. Payment of Compensation 4.03. For Services rendered under Section 3 of this Agreement, City agrees to pay Contractor the sum set forth in Paragraph 4.01 of this Agreement on completion of Work and within forty -five (45) days of aesegtanee- el- of an invo. prepared in accordance with City requirements. rEe 441,,77 / f 4.04. Contractor shall be responsible for paying any subcontractors used in the `-- performance of this Agreement. Subcontractors shall not bill the City directly. Expenses 4.05. City shall not be liable to Contractor for any expenses paid or incurred by Contractor. Expenses may only be billed if advance written approval has been obtained from the City Clerk. Compensation for Changes 4.06. The compensation due Contractor, or the credit due City, for changes may not be established verbally, and shall be established in a written change order signed by City as described in Sections 3.03 and 3.04 of this Agreement. Compensation adjustments in each such change order shall be established by one or more of Page 6 of 19 the following bases, as determined by City: (a) a lump sum price to be negotiated between the parties; or (b) Work unit rates to be negotiated between the parties. Once established, the amount of the compensation due Contractor or credit due City for a change shall not be subject to adjustment for any reason, including changes in the value of any currency. SECTION 5. OBLIGATIONS OF THE PARTIES 5.01. Contractor is responsible for meeting all conditions of this Agreement and of the City for all Work performed. Substandard Work, as determined solely by the City, shall be redone at the expense of the Contractor. Products of Consulting 5.02. All products of consulting services including, but not limited to, manuals, documents and /or computer software, shall become the property of the City and shall be delivered to the City before the end of the performance of this Agreement. Basic notes and sketches, charts, computations and other data shall be made available to City without restriction or limitation on their use. Liability Insurance 5.03. Contractor and its subcontractor(s), if any, shall, prior to commencement of any Work and for the duration of this Agreement, obtain and maintain at its own expense, those minimum levels of insurance coverage as set forth below. Prior to commencing Work hereunder, Contractor shall provide the City with proof of insurance providing and maintaining the coverages and endorsements set forth below. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. 5.04. The insurance coverage as listed herein, shall be properly endorsed to include those contractual obligations which may be identified further within this Agreement and shall be endorsed to provide City all the rights and privileges of an additional insured. 5.05. Contractor shall cause its insurers to issue, including but not limited to, Certificates of Insurance or, upon request, certified copies of the insurance policies evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. Page 7of19 5.06. Contractor shall ensure its subcontractor(s), if any, maintain those insurance requirements as specified in this Agreement and are endorsed as additional insured(s) on all required Contractor insurance coverages. Contractor and its subcontractor(s), if any, shall maintain in effect the following minimum insurance coverages on an Occurrence Form Policy: A. Workers Compensation within the statutory limits, including occupational illness or disease coverage in accordance with the laws of the nation, state, territory, or province exercising jurisdiction over Contractor's employees. Workers Compensation and Employers Liability Insurance shall have a minimum limit of $1,000,000 per occurrence. Contractor further agrees to hold harmless and indemnify City for any and all claims arising out of an injury, disability, or death of any of Contractor's employees or agents. B. Comprehensive General Liability Insurance, including, but not limited to, Contractual Liability, Products and Completed Operations Liability, Broad Form Property Damage and Bodily Injury Liability, and Explosion, Collapse and Underground Liability, with a minimum combined single limit of $2,000,000 per occurrence. Comprehensive Automobile Insurance, including, but not limited to, all owned, non -owned or hired vehicles with a minimum combined single limit of $1,000,000 per occurrence for bodily injury and property damage. D. Excess Liability Insurance with limits of $2,000,000. Such evidence of insurance can either be through the primary insurance coverages or through an excess policy. Such insurance shall at all times be on an occurrence form and provide policy conditions as broad as those required in the primary insurance. 5.07. Contractor agrees to provide insurance in the amounts and forms specified above. Contractor 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 Agreement. Contractor shall not commence performance of its Work under this Agreement until the above insurance has been obtained and proof of insurance has been filed with and approved by the City. 5.08. Contractor shall not permit a subcontractor or vendor to perform work on City premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has worker's compensation coverage. If Contractor employs subcontractors as part of the Services rendered, Contractor's protective coverage is required. Contractor may include all subcontractors as insureds Page 8 of 19 under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth above. Representations 5.09. To the fullest extent permitted by law, Contractor 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 attorney's fees and all costs of defense, arising out of or attributable to the negligent or wrongful acts of Contractor or its employees or agents under this Agreement, 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 Agreement. The obligations in this Paragraph are in addition to Contractor's duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Contractor. 5.10. Contractor and City represent that each has read and understands the Agreement and Contract Documents. The Contractor represents it understands the City's regulations concerning Premises access, badges, parking, security, safety, fire, prohibited drugs and alcohol, and smoking and other rules, and that Contractor has visited Premises where the Work is to be done and is familiar with the local conditions under which it is to be done. Contractor also represents that it is experienced in performing and competent and qualified to perform the kind of tasks or assignments included in the Work and employs or has available for employment in sufficient numbers all unskilled, skilled, administrative, supervisory, professional and managerial or other personnel required to perform the Work as required by this Agreement. 5.11. Contractor represents that it has the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of City. This means Contractor is able to fulfill the requirements of this Agreement. Failure to perform all the Services required under this Agreement constitutes a material breach of the Agreement. Contractor has complete and sole discretion for the manner in which the Work under this Agreement will be performed. Page 9 of 19 5.12. Contractor declares and states that is has complied with and will continue to comply with all federal, state and local laws regarding business permits and licenses that may be required to carry out the Services to be performed under this Agreement. 5.13. Contractor agrees to indemnify, defend, and hold City free and harmless from all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties, attorney's fees and costs, that City may incur as a result of a breach by Contractor of any representation or provision contained in this Agreement or any negligent or intentional acts or omissions by Contractor, it subcontractors, agents, and employees or based on any claim that any software program or other product used or furnished by Contractor in the performance of this Agreement constitutes an infringement of any United States patent or copyright. 5.14. Contractor's rights under this Agreement may not be assigned nor may its duties be delegated or subcontracted without the prior written consent of City. Any assignment or delegation or subcontract in violation of this Section shall, at City's sole discretion, be void. Consent by City shall not relieve Contractor of responsibility for performance of Contractor's obligations hereunder. City may assign all or any part of this Agreement at any time effective immediately upon written notification to Contractor. 5.15. At all times while Work is being performed on the Premises each party shall be represented thereon by a designated representative. Each party may notify the other in writing of the identity of such persons from time to time Work Injury 5.16. The treatment and care of injuries sustained by Contractor's employees, subcontractors, representatives or other personnel shall be and remain the responsibility of Contractor. City's first aid facilities, if any, however, will be made available to Contractor's employees in emergency cases which are the direct result of accidents occurring on the Premises. City shall incur no liability for, and Contractor hereby agrees to indemnify City against, any causes of action, claim, liability or costs, including attorney's fees, arising in whole or part out of the furnishing of such first aid facilities or assistance to Contractor's employees, subcontractors, representatives or other personnel, or out of the failure to furnish such facilities or assistance. Records, inspection and Audit 5.17. During the course of Work being performed, Contractor and any of its subcontractors, shall maintain and retain, not less than three (3) years after Page 10 of 19 completion thereof, complete and accurate records of the Contractor's costs which are chargeable to the City under this Agreement. City or its designated, authorized representatives, shall have the right during this three (3) year period, upon written reasonable notice, to inspect and audit those records. Such records to be maintained and retained by the Contractor shall include: (a) payroll record accounting for the total time distribution of the Contractor's employees working full or part time on the Work (to permit tracing to payroll payments in cash); (b) invoices for purchases, receiving and issuing documents, and all the other unit - inventory records for the Contractor's stores, stock or capital items; (c) paid invoices and canceled checks for material purchased and for the subcontractor's and any other third parties' charges; and (d) any other documentation City deems necessary to support costs and charges under this Agreement. Corporate Conduct 5.18. Contractor, its employees, agents or representatives shall not offer or give to an officer, official or employee of City gifts, entertainment, payments, loans or other gratuities, to influence the award of a contract or obtain favorable treatment under this Agreement or any other contract. Standard of Care 5.19. Contractor agrees that all Services provided will be conducted by the principal and competent staff members, if any, under the supervision of the principal, and that Services will be performed and rendered diligently. Contractor represents that it has, or shall secure, at its own expense, all personnel required to perform Contractor's Services under this Agreement, but at all times shall be responsible for the Services of such personnel. Contractor may not employ any subcontractor without the prior written approval of the City. Indemnity Process 5.20. The City shall notify Contractor in writing of any suits, claims or demands covered by any indemnity contained in this Agreement. Promptly after receipt of such notice, Contractor shall assume the defense of such claim with counsel reasonably satisfactory to City. If Contractor 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 director 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 Contractor 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 Contractor. Notwithstanding the above, if the City in its sole Page 11 of 19 discretion so elects, City may also participate in the defense of such actions by employing counsel at its expense, without waiving the Contractor's obligations to indemnify or defend. Contractor 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. Treatment of Confidential and Proprietary Information 5.21. For ten (10) years after the effective date of this Agreement, Contractor shall refrain from using any Confidential or Proprietary Information except in connection with the Work or from disclosing it to any third party other than to employees of Contractor who require it in performance of the Work and except to such other third persons as City may authorize in writing. If disclosure to such an employee or to other third persons is so authorized, Contractor shall enter into with said party a confidentiality agreement containing provisions with respect to use and disclosure of Proprietary Information substantially the same as those contained in this Agreement. 5.22. Contractor shall take reasonable precautions to safeguard any documents containing Proprietary Information which City may supply to Contractor hereunder. Contractor may copy, in whole or part, such documents to the extent necessary for the performance of the Work, and Contractor shall return to City upon the completion of the Work or request by City all such documents and copies. 5.23. Except as expressly permitted by prior written consent of the City, Contractor and /or its subcontractors 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. Contractor and /or its subcontractors 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 Contractor has performed all Work to be performed pursuant to this Agreement. Contractor hereby agrees that such Confidential Information and any documents provided may be used by Contractor and /or its subcontractors only as authorized by the City. Contractor shall include a provision in its agreements with subcontractors that binds the subcontractors to this non - disclosure requirement. 5.24. All reports, plans, data, studies, maps, drawings, models, photographs, documents and other writings prepared by and for Contractor, its officers, employees, agents and subcontractors in the course of implementing this Agreement, with the exception of working notes, internal documents and Confidential Information provided by businesses located in City, shall be Page 12 of 19 considered the property of City. Contractor shall deliver such documents and materials to the City as they are generated; however, Contractor may take and retain copies of said documents and materials that are not Confidential Information, as desired. 5.25. All reports, information, data and exhibits prepared or assembled by Contractor in connection with the performance of its Services pursuant to this Agreement are confidential until released by the City to the public and Contractor agrees that such documents shall not be available to any individual or organization without the written consent of the City prior to such release. 5.26. No reports, maps, or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of Contractor. Compliance with Authority 5.27. Contractor shall comply with all laws, regulations, executive orders and other applicable requirements of any governmental agencies having jurisdiction including the Fair Labor Standards Act, the Occupational Safety and Health Act and all those relating in any way to employment practices and protection of the environment. Contractor shall not discriminate against any employee or any applicant for employment for reasons of race, color, creed, religion, sex, sexual preference, age or national origin. 5.28. Contractor shall make timely payment of all employment taxes and of all social security and other contributions of every kind required to be made with respect to or measured by the wages and salaries of persons employed by Contractor. 5.29. Contractor shall indemnify City against, and hold City harmless from, any liability or loss including liability or loss from fines or penalties arising out of Contractor's failure to perform the obligations imposed upon it by Sections 5.28 and 5.29 of the Agreement. Progress Reports 5.30. Upon City's request, or as needed, Contractor shall meet with City staff and supply periodic written progress reports in order to provide information concerning the current status of Services being performed by Contractor under this Agreement. Page 13 of 19 Contractor's License Classification 5.31. Contractor shall possess all appropriate licenses for the duration of this Agreement. SECTION 6. TERMINATION OF AGREEMENT 6.01. Unless otherwise terminated as provided in this Section, this Agreement will continue in effect until such time as the City receives a final report of the third party test to measure the Malburg Generating Station's performance in order for the City to meet the California Energy Commission guidelines for Plant Certification, unless otherwise extended according to the terms and conditions set forth in this Agreement. Non- Default Termination 6.02. City, at its sole discretion, may terminate this Agreement upon thirty (30) days written notice to Contractor and such termination shall be effective in the manner specified in such notice and shall be without prejudice to any claim that either party may have against the other. During the thirty (30) day period after such notice is sent, the parties shall continue to act toward each other in good faith. 6.03. In the event of any such termination, in full and complete settlement for the termination of the Work, City shall pay Contractor for those Services performed 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 Contractor directly attributable to termination which could not reasonably have been avoided and for which Contractor is not otherwise compensated that are incurred through the date of termination and effectuating the termination ( "Termination Expenses "). Termination Expenses shall not include lost profits, lost opportunities, consequential damages, or the like. In no event shall total payment exceed the Contract Price. Page 14 of 19 Termination on Occurrence of Stated Events 6.04. This Agreement will terminate automatically on the occurrence of any of the following events: A. Bankruptcy or insolvency of either party; or B. Sale of the Contractor; or C. Assignment of this Agreement by Contractor without City's written consent. Termination for Default 6.05. If Contractor defaults in the performance of this Agreement or materially breaches any of its provisions, City may immediately terminate this Agreement by giving written notification to Contractor indicating the effective date of such termination. Termination will take effect immediately upon the date specified in the notification. For the purposes of this paragraph, material breach of this Agreement includes, but is not limited to, the following: A. Contractor's failure to perform, in a manner satisfactory to the City in its sole discretion, the Services specified in Section 3 of this Agreement; or B. Contractor's material breach of any obligation or provision contained in Section 5 of this Agreement. 6.06. The waiver by either party of a breach or default by the other party shall not be deemed a waiver of any different or later breach; nor shall any delay or omission by either party to exercise any right it may have hereunder operate as a waiver of any breach or default of such a right. The failure of either party to this Agreement to exercise any of its rights under this Agreement does not constitute a breach thereof and shall not be deemed to be a waiver of such rights or a waiver of any subsequent breach. 6.07. In the event of any termination of this Agreement or reduction in the scope of the Work, Contractor shall not be entitled to damages for Toss of profits for the unexecuted portion of the Work or any other damages because of such termination or reduction. Page 15 of 19 SECTION 7. GENERAL PROVISIONS Notices 7.01. All notices, approvals, consents and other communications between the parties shall be in writing, and shall be sent by fax or by certified mail (retum receipt requested) to the respective addresses set forth below, or at such other address as may be furnished by either party to the other in writing. Faxed notices, confirmed by copy thereof, shall be deemed communicated as of the day the facsimile was sent. Mailed notices will be deemed communicated as of the day of receipt or the third (3rd) day after mailing, whichever occurs first. Contractor — McHale & Associates, Inc. Attn: Michael P. McHale 1635 235th Avenue SE Sammamish, WA 98075 Fax: 425- 557 -8377 Telephone: 425 - 557 -8758 City - City of Vernon Attn: Bruce V. Malkenhorst, Jr. Acting City Clerk 4305 Santa Fe Avenue Vernon, CA 90058 Fax: 323 - 826 -1438 Telephone: 323- 583 -8811 ext 260 Entire Agreement of the Parties 7.02. This Agreement supercedes any and all agreements, either oral or written, between the parties with respect to the rendering of Services by Contractor for City and contains all of the representations, covenants, and agreements between the parties with respect to the subject matter of this Agreement and the rendering of those Services. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not contained in this Agreement, and that no other agreement, statement, or promise not contained in this Agreement or a subsequent amendment or change order shall be valid or binding. No amendment or change in the provisions of this Agreement shall be made, except in a formal written amendment signed by Contractor and an authorized representative of the City, or in a written change order. Contractor expressly waives all claims for compensation based upon quantum merit, implied contract or oral contract. Each party represents and warrants that it has read and fully familiarized itself with this Agreement, and that such party has been fully authorized to sign this Agreement. Page 16 of 19 7.03. This Agreement shall be comprised of these included provisions, together with Exhibits "A" and "B," which are all attached. In the event of conflict between this Agreement and any of the exhibits, including the Proposal, this Agreement shall prevail. Partial Invalidity 7.04. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will continue in full force and effect without being impaired or invalidated in any way. Law and Arbitration 7.05. All disputes arising out of or related to this Agreement, the conduct of either party in connection with this Agreement, and the relationship and rights of the parties in connection with this Agreement, whether characterized as breach of contract, tort, or otherwise (except for those requesting injunctive relief) shall be determined by binding arbitration in accordance with the terms of this Section. The submittal of all matters to arbitration in accordance with the terms of this Section is the sole and exclusive method, means and procedure to resolve any and all claims, disputes or disagreements arising under this Agreement, except for claims by either party which seek injunctive relief, which claims shall be resolved by suit filed in the Superior Court of Los Angeles County, California, the decision of which court shall be subject to appeal pursuant to applicable law. The parties hereby irrevocably waive any and all rights to the contrary and shall at all times conduct themselves in accordance with the terms of this Section, relying on arbitration as the sole means of resolution of disputes. Arbitration of all matters required to be arbitrated hereunder shall take place before a panel of three retired judges of the Superior Court of the State of California (the "Arbitrators ") under the auspices of Judicial Arbitration & Mediation Services, Inc. ( "JAMS "). Such arbitration shall be initiated by the parties, or either of them, within ten (10) calendar days after either party sends notice of a demand to arbitrate (the "Arbitration Notice ") to the other party and to JAMS. The Arbitration Notice shall contain a description of the subject matter of the arbitration, the dispute with respect thereto, the amount involved, if any, and the remedy or determination sought. Each party shall select a retired judge from the JAMS panel, and the two selected judges shall mutually agree on the third retired judge from the JAMS panel. If one of the parties does not select a retired judge from the JAMS panel within fourteen (14) calendar days after receipt of the Arbitration Notice, JAMS will select the second judge, and the judge selected by JAMS and the judge selected by the other party will select the third judge for the panel. The third judge is to be selected within ten (10) calendar days following the selection of the first two judges. The three judges will together serve as the Arbitrators. Page 17 of 19 The arbitration shall be conducted in Los Angeles, California. Any party may be represented by counsel and /or other authorized representative. In rendering a decision(s), the Arbitrators shall determine the rights and obligations of the parties according to the substantive and procedural laws of the State of California and the terms of this Agreement. The decision of the Arbitrators shall be based on the evidence introduced at the hearing and accompanied by a written statement of decision as to each of the principal controverted issues. The agreement of two of the three Arbitrators as to the resolution of the dispute shall be a conclusive resolution. The Arbitrators shall deliver the written decision to the parties within thirty (30) calendar days following the date of the selection of the last of the Arbitrators. The decision shall be conclusive and binding, and it may thereafter be confirmed as a judgment by the Superior Court of the State of California, subject only to challenge on the grounds set forth in the California Code of Civil Procedure Section 1286.2. The validity and enforceability of the decision of the Arbitrators is to be determined exclusively by the California courts. Attorney's Fees 7.06. In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys' fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition to any other relief which is obtained. 7.07. Neither party shall be considered in default in any of its obligations under this Agreement 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, lightning, 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 Agreement by reason of an uncontrollable force shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. 7.08. Except as may otherwise be specifically provided herein, this Agreement may modified or amended only by a written document executed by both Contractor and the City and approved as to form by the City Attorney. Page 18 of 19 7.09. The captions used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of the Agreement or any part thereof. 7.10. City reserves the right to award similar contracts to multiple contractors to ensure the City has adequate services. IN WITNESS WHEREOF, the parties have executed the Agreement on the dates shown below. Executed at , California, on City: City of Vernon ATTEST: Name: Leonis C. Malburg, Mayor Date: APPROVED AS TO FORM: Eric T. Fresch, City Attorney Contractor: McHale & Associated, Inc. Bruce V. Malkenhorst, Jr., Acting City Clerk Named t'€ Nat ie IM (' !'1J A £r Title: Title: S'( Date: ' Date: / G' Page 19of19 RISK MANAGEMENT OFFICE INTER - DEPARTMENT MEMORANDUM DATE: November 10, 2005 TO: Nelly Giron, Deputy City Clerk FROM: Willard G. Yamaguchi, Acting Risk Manager RE: McHale & Associates, Inc. Please be advised that the above referenced has provided acceptable insurance. Attached for your retention are original insurance certificates and related policies, declarations and /or endorsements for the above - referenced insured that were "issued by: • James River Insurance (General Liability & Excess /Umbrella Liability) • Hartford Insurance Group (Automobile Liability) • ACE Property & Casualty Ins Co (Worker's Compensation) This concerns Resolution No. 8813, Agreement File No. 05 -088. WY /kr cc: Donal O'Callaghan ACORD. CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDDIYYYY) 11/07/2005 PRODUCER (425)454 -3386 FAX (425)451 -3716 Arthur 3 Gal 1 agher Ri sk Management Services, Inc P.0. Box 367 Bellevue, WA 98009 -0367 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERT FICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POIJCIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED McHale & Associates, Inc. 1635 235th Avenue SE Sammami sh, WA 98705 INSURER A: James River Insurance POLICY EXPIRATION DATE IMMIDWYYI INSURER B: Hartford Insurance Group A INSURER C: Ace Property & Casualty Ins Co GENERAL INSURER D: 00010757 INSURER E: 07/01/2006 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDIN ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. — LTR AD RG TYPE OF INSURANCE POLICY NUMBER EFFECTIVE DATE IMINDDIYYI POLICY EXPIRATION DATE IMMIDWYYI u S A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY 00010757 07/01/2005 07/01/2006 EACH occuRRENCE $ 1,000,000 DAMAGE TO RENTED PREMISES (Ea nceurenrn) $ 50,000 X ICLAIMS MADE I X I OCCUR MED EXP (My one Iron) $ Excluded PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY I—I !EC (-I LOC PRODUCTS - COMP/OP AGG $ 2 ,000 ,000 —1 B AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 52UECTQ7605 07/01/2005 07/01/2006 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ X BODILY INJURY (Per accident) X X PROPERTY DAMAGE (Per accident) $ GARAGE LABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ A EXCESSIUMBRELLA LI*BIUTY 00010741 07/01/2005 07/01/2006 EACH OCCURRENCE $ 5,000,000 AGGREGATE $ 5 ,000 ,000 —I OCCUR CLAIMS MADE $ DEDUCTIBLE RETENTION $ $ $ E WORKERS EMPLOYERS' ANY OFFICER/MEMBER I SPECIAL COMPENSATION AND LIABILITY PROPRIETOR/PARTNER/EXECUTIVE EXCLUDED? describe under PROVISIONS below C43 79839A 07/31/2005 07/31/2006 X 1 ToRV uMITS 1 rER E.L. EACH ACCIDENT $ 1,000 ,000 E.L DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE - POLICY LIMB $ 1,000,000 OTHER DESCRIPTION The the by OF OPERATIONS 1 LOCATIONS 1 VEHICLES 1 EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS City of Vernon is included as an additional insured but only as respects the operation of named insured per policy endorsement AP2009US 06 -05 Additional Insured as Required Contract - copy attached. GtK 1 II-ILA 1 t I1UwtKC City of Vernon Attn: Risk Management Attn: 4305 Santa Fe Avenue Vernon, CA 90058 �^••��• • •••••■ SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Julie Epperson /JOANNE ACORD 25 (2001/08) IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED AS REQUIRED BY WRITTEN CONTRACT This endorsement modifies insurance provided under the following: ALL COVERAGE PARTS SECTION 11- Who Is An Insured is amended to include any person or organization you are required to include as an additional insured on this policy by written contract or written agreement in effect during this policy period and executed prior to the "occurrence" of the "bodily injury" or "property damage." The insurance provided to the Additional Insured under this endorsement is limited as follows: 1. The person or organization is only an additional insured with respect to liability arising solely out of "your work" or "your product" which is imputed to the Additional Insured. 2. In the event that the Limits of Insurance provided by this policy exceed the Limits of Insurance required by the written contract or written agreement, the insurance provided by this endorsement shall be limited to the Limits of Insurance required by the written contract or written agreement. This endorsement shall not increase the Limits of Insurance stated in the Declarations. 3. This insurance does not apply to "bodily injury" or "property damage" arising out of "your work" or "your product" included in the "products — completed operations hazard" unless you are required to provide such coverage by written contract or written agreement but only for the period of time required by the written contract or written agreement and only for "bodily injury" or "property damage" that occurs during the policy period arising out of "your work" or "your product ". 4. Any coverage provided by this endorsement to an Additional Insured shall be excess over any other valid and collectible insurance available to the Additional Insured whether primary, excess, contingent or on any other basis unless a written contract or written agreement specifically requires that this insurance apply on a primary or noncontributory basis. 5. Where no coverage shall apply herein for the Named Insured, no coverage or defense shall be afforded to the Additional Insured. 6. This insurance does not apply to "bodily injury" or "property damage" arising out of the sole negligence of the Additional Insured. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. AP2009US 06-05 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGES - MIDTERM CHANGES POLICY NUMBER 00010757 -0 POLICY CHANGES COMPANY EFFECTIVE 7/25/2005 12:01 AM Standard Time at the address of the Named Insured Policy Change Number 02 James River Insurance Company NAMED INSURED AUTHORIZED REPRESENTATIVE McHale & Associates Inc Michael P. Kehoe COVERAGE PARTS AFFECTED ALL COVERAGE PARTS CHANGES In consideration of a fully- earned additional premium of $2,500.00, it is hereby understood and agreed that the following forms are added to this policy: AP2009US 06 -05 - Additional Insured As. Required By Written Contract AP5004US 12 -03 — Waiver of Subrogation As Required By Contract AP5012US 12 -03 — Policy Limitation Amended Aggregate Limits of Insurance Per Project ALL OTHER TERMS & CONDITIONS OF THE POLICY REMAIN UNCHANGED. Authorized Representative Signature Fee -= Tex 7- i;tping Fee I, ;:,sction Fee IL 12 01M 04 -03 Page 1 of 1 SCHEDULE A FORMS AND ENDORSEMENTS THAT APPLY TO THIS POLICY: POLICY NO. 00010757 -0 FORM NUMBER DESCRIPTION „MC0001 US -0403 „GC0001 US -0304 ZG0001 -1001 ,AP01000S -0403 ■AP2022US -0405 ;,AP2103US -0504 ,AP2104US -0403 ;AP2105US -1103 vAP2107US -0403 LAP2108US -0403 .4e(P2111 U S -0403 AP2112US -0804 \AP2115US -1103 ,AP2117US -0205 tAP23000S -0604 ;AP5018US -0604 CG0435-0202 ,CG2134 -0187 £G2136 -0196 LCG2154 -0196 ,CG2167 -0402 ;£2288 -0798 ,GC2131 US -0403 AL0021 -0702 11L0998R -0504 MC2105US -0403 AC2113US -0403 41C2120US -0403 IC2126US -0403 vMC2137US -0403 ., MC2139US -0403 LMC2162US -0403 :,MC2239US -1004 Commercial General Liability Declarations Schedule A Commercial General Liability Coverage Form Privacy Policy Malware Exclusion Minimum Policy Premium Common Policy Conditions Combined General Endorsement Binding Arbitration Defense Within Limits of Insurance Exclusion - Punitive Damages Terrorism Exclusion Punitive Damage - Alabama Exclusion Hot Work Endorsement Composite Rate Endorsement Exclusion - Work Performed in New York State Employee Benefits Liability Coverage Exclusion - Designated Work Exclusion - New Entities Exclusion - Designated Operations Covered By A Consolidated (Wrap -Up) Insurance Program Fungi or Bacteria Exclusion Professional Liability Exclusion - Electronic Data Processing Services and Computer Consulting or Programming Services Fiduciary Exclusion Nuclear Energy Liability Exclusion Endorsement (Broad Form) Terrorism Disclosure of Premium Through 12/31/05 for Certified Acts of Terrorism Coverage (Reject) Deductible Endorsement Exclusion - Employees of Independent Contractors Exclusion - Subsidence Premium Base Endorsement Exclusion - Explosion, Collapse adn Underground Property Damage Hazard (Specified Operations) Exclusion - Coverage C - Medical Payments Stop Gap Liability Coverage Endorsement Exclusion - Welding GC0001US 03-04 1 of 1 COMMERCIAL GENERAL LIABILITY DECLARATIONS JAMES RIVER INSURANCE COMPANY 7130 GLEN FOREST DRIVE, SUITE 210 RICHMOND, VA 23226 -3754 1. NAMED INSURED AND MAILING ADDRESS: McHale & Associates Inc 1635 235th Ave SE Sammamish, WA 98075 POLICY NUMBER 00010757 -0 PRODUCER: 14392 Swett & Crawford (Seattle) _ 600 Stewart Street;. St{tt6 is registered and detiered as a surpi. Seattle, WA he coverage under me insurance code of he stc'` 4 98101 `•: ushingcr:. enacted in 1947. R is not issuea by c ormpany regulated by Ine washington State Insaru . C_;mrnissioner and is not protected by any Wcsnh, g Stn`s Guaranty Fund Law." 2. POLICY PERIOD: From 07/01/2005 to 07/01/2006 12:01 A.M. Standard Time at W8iv674#94i9dress above. IN RETURN FOR THE PAYMENT OF THE PREMIUM, IN RELIANCE UPON THE STATEMENTS IN THE APPLICATION(S) AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. Service Fee coz.1'. OD State Tcv< An--5° LIMITS OF INSURANCE $ $ EACH OCCURRENCE LIMIT DAMAGE TO PREMISES RENTED TO YOU LIMIT MEDICAL EXPENSE LIMIT MEDICAL EXPENSE AGGREGATE PERSONAL & ADVERTISING INJURY LIMIT GENERAL AGGREGATE LIMIT IPRODUCTS /COMPLETED OPERATIONS AGGREGATE LIMIT 1,000,000 50,000 Any one premises Excluded Any one person Excluded Stcrnping Fee cEz3 9b Inspection Fee 9'! °6 Any one person or organize- 1,000,000 ton 2,000,000 1,000,000 "SERVICE FE- RETROACTIVE DATE (CG 00 02 ONLY) THIS POLICY IS ON A CLAIMS -MADE AND REPORTED BASIS WHICH PROVIDES LIABILITY COVERAGE ONLY IF A CLAIM IS FIRST MADE AND REPORTED DURING THE POLICY PERIOD OR ANY APPLICABLE EXTENDED REPORTING PERIOD. THIS INSURANCE DOES NOT APPLY TO "BODILY INJURY", "PROPERTY DAMAGE" OR "PERSONAL AND ADVERTISING INJURY" WHICH OCCURS BEFORE THE RETROACTIVE DATE, IF ANY, SHOWN BELOW. RETROACTIVE DATE: (ENTER DATE OR "NONE" IF NO RETROACTIVE DATE APPLIES) DESCRIPTION OF BUSINESS FORM OF BUSINESS: Corporation BUSINESS DESCRIPTION: Engineering & consulting firm that has some equipment rental operations MC0001 US 04 -03 Page 1 of 3 RECEIVED JUL 21 2005 COMMERCIAL EXCESS LIABILITY POLICAJG & CO OF WA DECLARATIONS JAMES RIVER INSURANCE COMPANY 7130 GLEN FOREST DRIVE, SUITE 210 RICHMOND, VA 23226-3754 ITEM 1. NAMED INSURED AND MAILING ADDRESS: McHale & Associates Inc 1635 235th Ave SE Sammamish, WA 98075 POLICY NUMBER: 00010741-0 PRODUCER: 14392 Swett & Crawford (Seethe) 600 Stewart Street, Suite 300 Seattle, WA 98101 ITEM 2. POLICY PERIOD: From: 07/01/2005 12:01 A.M. Standard Time at your mailing address ITEM 3. BUSINESS DESCRIPTION: Corporation ITEM 4. LIMITS OF INSURANCE: To: 07/01/2006 A. Each Occurrence $ 4,000,000 B. Annual Aggregate $ 4,000,000 ITEM 5. SCHEDULE OF UNDERLYING INSURANCE: See attached Schedule B — Schedule of Underlying Insurance ITEM 6. PREMIUM COMPUTATION: Annual Premium $ 10,500.00 Policy Minimum Premium $ 2,625.00 ITEM 7. ENDORSEMENTS ATTACHED TO THE POLICY AT INCEPTION: See attached Schedule A — Schedule of Forms ITEM 8. RETROACTIVE DATE: N/A accdract is registered and delioered as o surpL Ine coverage under the tsixince code of the Statr .1 .vfx.nington, enacted in 1947. II is not issued by a c..P pow regulated by the Washington State Insurana, C.11,mr-zsioner ono is not protected by any Washington Slue Guaranty Fund Law." SWETT & CRAWFORD XC0001US 05-04 Page 1 of 1 Service Fee State Tax 12-6, Stamping Fee Inspection Fee "SERVICE FEE FULLY r: ,L. • r'"r:D THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGES Policy Change Number 1 POLICY NUMBER 00010741 -0 POLICY CHANGES EFFECTIVE 07/01/05 12:01 AM Standard Time at the address of the Named Insured COMPANY ` James River Insurance Company NAMED INSURED AUTHORIZED REPRESENTATIVE McHale & Associates Inc Michael P. Kehoe COVERAGE PARTS AFFECTED ALL COVERAGE PARTS CHANGES In consideration of an additional premium of $ 1,500, it is hereby understood and agreed that form XC0001 US 04-03, Commercial Excess Liability Policy Declarations is amended as follows: Item 4. Limits of Insurance: A. Each Occurrence - $ 5,000,000 B. Annual Aggregate - $ 5,000,000 All other terms and conditions of the policy remain unchanged. 1 . .::::......_ . ..:..........:...:. State Tcix Stamping Fee Inspection Fee 10201 04-03 Page 1 of 1 Authorized Representative Signature RECEIVED JUL 21 2005 AJG &CO OF WA Best's Rating Center - Company Information for James River Insurance Company Page 1 of 2 Ratite Center Rating Methodology bolt ts#t y Research Ratirtgs Deitnt+ons Search its Ratio Press Releases Related Proc ix s &'Regal', Country Risk Mark for Secure -Rated revs Underst fl iin_ Best's Patnys View Ratings: Financial Strength Issuer Credit Securities Advanced Search Other Web Centel James River Insurance Company (a member of James River Insurance Group) A.M.Best #: 12604 NAIC #:12203 FEIN 8: 222824607 Address: 7130 Glen Forest Drive, Suite 210 Richmond, VA 23226 Assigned to companies that have, in our opinion, an Phone: 804-289-2700 excellent g ability o meet their ongoing obligations to Fax: 804-289-2703 policyholders. Web: www.jamesriverins.com Best's Ratings Financial Strength Ratings View Definitions Rating: A- (Excellent) Financial Size Category: VII ($50 million to $100 million) Outlook: Stable Action: Affirmed Effective Date: June 16, 2005 * Denotes Under Review Best's Ratings Reports and News Visit our NewsRoom for the latest news and press releases for this company and its A.M. Best Grout Best's Company Report - indudes Best's Financial Strength Rating and rationale along witl analytical commentary, detailed business overview and key financial data. Report Revision Date: 06/20/2005 (represents the latest significant change). Historical Reports are available in Best's Company Report Archive. Best's Executive Summary Reports (Financial Overview) - available in three versions, thi style reports feature balance sheet, income statement, key financial performance tests induc liquidity and reserve analysis_ Data Status: 2005 Best's Statement File - P /C, US. Contains data compiled as of 10/2/2005 Checked). • Single Company - five years of financial data specifically on this company. • Comparison - side -by -side financial analysis of this company with a peer group of up to companies you select. • Composite - evaluate this company's financials against a peer group composite. Report average and total composite of your selected peer group. Note: Adobe Reader is required to view the reports listed above. This software is available ft Systems Inc. An Excel export option is also available once the report has been opened usinc, etBest's Key Rating Guide Presentation Report - indudes Best's Financial Strength Rating as provided in Bests Key Rating Guide products. Data Status: 2003 Financial Data (Quatity Cross Checked). Financial and Analytical Products Best's Property /Casualty Center - Premium Data & Reports Best's Key Rating Guide - PIC, US & Canada Best's Statement File - P /C, US Best's Statement File - Global http:// www3 .ambest.com/ratings/FullProfile. asp? B1 =0 &AMBNum = 12604 &A1tSrc= l &Alt... 11/3/2005 CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. "BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman November 15, 2005 SOL BENUDIZ Police Chief MARK C. WHITWORTH Acting Fire Chief LEWIS J. POZZEBON Director of Environmental Health S. KEVIN WILSON Director of Community Services 4305 Santa Fe Avenue, Vernon, California 90058 SHARON L. DUCKWORTH Acting City Treasurer telephone (323) 583 -8811 McHale & Associates, Inc. Attn: Patrick M. McHale, P.E., President 1635 235th Avenue SE Sammamish, WA 98075 -8115 Re: Services Agreement Dear Mr. McHale: The insurance requirements have been met. Transmitted herewith is a fully executed contract as referenced above, approved by City Council on July 20, 2005, through Resolution No. 8813. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan at 323/583 -8811 ext. 834. NG:dr CC: Donal O'Callaghan Dolores Jaunzemis Resolution No. 8813 Agreement File No. 05 -088 truly yours, Nelly Gi'o Deputy City Clerk TxctugiveIi Wndugtrii[ 7.09. The captions used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of the Agreement or any part thereof. 7.10. City reserves the right to award similar contracts to multiple contractors to ensure the City has adequate services. IN WITNESS WHEREOF, the parties have executed the Agreement on the dates shown below. Executed at Vernon City: City of Vemon , California, on am - : Leonis C. Malbirg, May Date: 10/2oloS APPR VED AS TO ORM: Eric T. Fres , City Attor Contractor: McHale & Associates, Ir}� Name:%)1 /Y9t Title: 11e Date: Y//:-Or- ATTEST: Bruce V. Malkenhorst, Jr., Acting City Clerk ame: Title: Date: Page 19 of 19