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Resolution No. 95551 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 RESOLUTION NO. 9555 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN EQUIPMENT PURCHASE AND SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND ADVANCED ELECTRONICS, INC. FOR FIBER OPTIC CONVERSION OF POLICE AND FIRE RADIO COMMUNICATION SYSTEMS WHEREAS, the Fire Department desires to purchase five (5) single mode fiber TX, 2 Channel Receivers, five (5) single mode fiber RX, 2 channel receivers, one (1) fiber optic rack shelf together with necessary parts, accessories, hardware, installation and testing (hereinafter collectively referred to as the "Equipment") to convert the Police and Fire radio communication systems to a fiber optic system; Iand WHEREAS, the purchase of the Equipment will improve the Fire and Police Department's effectiveness and the Fire and Police Department's operation and services provided to citizens, residents and businesses within the Vernon community; and WHEREAS, the Police Department has purchased equipment and services from Advanced Electronics, Inc. ("Advanced") in the past, Advanced is familiar with the City's requirements and currently maintains various equipment for the Fire and Police Departments; and WHEREAS, on February 12, 2008, the Finance Committee Section of the City Council recommended the purchase of the Equipment and services, subject to the approval of an agreement; and WHEREAS, the City Council of the City 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 Advanced. 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 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Equipment Purchase and Services Agreement, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City hereby authorizes the City Administrator, or his designee, to make whatever non - substantive, administrative and/or text changes, upon advice of counsel, to the Agreement. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a fully executed Agreement to: Advanced Electronics, Inc. Attn.: Robert W. Conrey, President 2601 Manhattan Beach Blvd. Redondo Beach, CA 90278-1604 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 6: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 19th day of February, 2008. ATTEST: MAN E A GIRON, Cit Clerk Name: Leonis C. Malburg Title: Mayor or ro- e - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9555, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, February 19, 2008, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) 7 MANUELA GIRO , City Clerk - 4 - EXHIBIT A EQUIPMENT PURCHASE AND 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 19t" day of February, 2008, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN CITY OF VERNON, a municipal corporation, hereinafter referred to as the "City" 4305 Santa Fe Avenue Vernon, California 90058 AND Advanced Electronics, Inc., hereinafter referred as "Contractor," 2601 Manhattan Beach Blvd. Redondo Beach, CA 90278-1604 RECITALS WHEREAS, the City's Fire Department desires to convert the connectivity of its existing radio communication system to a fiber optic system, which conversion will also include the radio communication system of the Police Department; and WHEREAS, the City's Fire Department desires to purchase five (5) single mode fiber TX, 2 Channel Receivers, five (5) single mode fiber RX, 2 channel receivers, one (1) fiber optic rack shelf together with necessary parts, accessories, hardware, installation and testing (hereinafter collectively referred to as the "Equipment") to convert the Police and Fire radio communication systems to a fiber optic system; and WHEREAS, the purchase of the Equipment will improve the effectiveness of both the Police and Fire Department's operations and services provided to citizens, residents and businesses within the Vernon community; and WHEREAS, both the Police and Fire Departments have purchased equipment and services from Contractor, Contractor currently maintains various equipment within the Departments and Contractor is familiar with the City's requirements; and WHEREAS, Contractor submitted a quote for the purchase of the Equipment dated October 3, 2007 for the purchase of the Equipment and installation and testing services (hereinafter collectively referred to as the "Proposal"), a copy of which is attached hereto as Exhibit A and incorporated by reference; and Page 1 of 20 WHEREAS, the Proposal includes a description of the Equipment and services to be performed by Contractor and the attendant costs; and WHEREAS, Contractor has advised the City that it is qualified and capable of providing the Equipment and services described in Exhibit A, and is willing to do so on the terms and conditions set forth below; and WHEREAS, the City desires to enter into an agreement with Contractor to provide for the purchase and delivery of Equipment, material and the labor to install and test the Equipment on a contractual basis as defined in the terms and conditions set forth below. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: SECTION 1. PURCHASE OF EQUIPMENT 1.01. Contractor agrees to sell, deliver, install and test the Equipment, including all material, and the City agrees to purchase the Equipment and installation and testing services as identified in Exhibit A. 1.02. Delivery. Contractor shall obtain and sell, deliver and test the Equipment at the City of Vernon, F.O.B. Job Site. Contractor is responsible for all costs of full freight, including insurance, to Job Site. Risk of loss shall pass to the City upon delivery F.O.B. Job Site. SECTION 2. TERM OF CONTRACT 2.01. This Agreement will become effective upon issuance of a Purchase Order, and will continue in effect until such time as the City approves the scope of work completed pursuant to the Proposal or until terminated as provided in this Agreement. SECTION 3. DEFINITION OF TERMS 3.01. 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. Page 2 of 20 C. "Contractor" shall mean Advanced Electronics, 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 5.01 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. "Equipment" shall mean the equipment identified in Exhibit A. G. "General Provisions" or "General Conditions" shall mean the General Provisions as set forth in this Agreement. H. "Owner" shall mean City of Vernon, California, and where applicable, their affiliated companies, directors, officers, employees, agents, and representatives. "Premises" shall mean the physical premises under City's control or ownership where Work hereunder is to be performed. J. "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: Information which, at the time of disclosure hereunder, is in the public domain; 2. Information which, after disclosure hereunder, enters the public Page 3 of 20 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. K. "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. L. "Work" or "Services" shall mean the work performed by Contractor and required to be performed from time to time by City under this Agreement. SECTION 4. SERVICES TO BE PERFORMED BY CONTRACTOR Specific Services 4.01. Contractor's Services shall include, but will not be limited to, testing the Equipment and training on the Equipment. The Contractor's Services are more specifically detailed in the Proposal attached hereto as Exhibit "A" and incorporated herein by this reference. Change of Services 4.02. City may at any time, by written change order executed by the City, make changes in the scope of Work, to extend the Work duration and/or total compensation of Contractor's Work. 4.03. City may make "Changes" by increasing, reducing or deviating from the requirements of the scope of Work. A form of Change Order is set forth in Exhibit B attached hereto and incorporated by reference. Timing of Services 4.04. Contractor's Services shall commence upon the execution of this Agreement by Page 4 of 20 both parties and award by the City Council and shall end when Contractor has completed the work according to the Proposal, unless this Agreement is otherwise terminated according to Section 7 of this Agreement or extended according to the conditions and terms set forth in this Agreement. Delivery is 4.05. 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. Method of Performing Services 4.06. Contractor will determine and is responsible for the method, details, and means of performing the above -described Services. Status of Contractor 4.07. 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. 4.08. 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 4.09. 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. Page 5 of 20 4.10. Payroll taxes including federal, state and' local taxes shall 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. 4.11. 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. SECTION 5. COMPENSATION 5.01. In consideration for the Equipment and Services to be performed by Contractor, described in this Agreement, City agrees to pay Contractor a sum not to exceed Thirty -Six Thousand Eight Hundred Twelve Dollars and Thirty Cents ($36,812.30), which includes installation and testing costs and applicable sales taxes, plus applicable delivery charges (the "Contract Price"). The actual amount will be based on the amount required to furnish the Equipment and perform the services, billed in accordance with Contractor's Proposal attached as Exhibit A. Entire Compensation 5.02. The Contract Price is full and complete compensation, and constitutes the entire compensation due Contractor for the Equipment and Services and any and all of Contractor's obligations hereunder, regardless of difficulty, unforeseen circumstances, hours worked or equipment, materials or personnel required. The Contract Price includes without limitation, 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 5.03. For Equipment and Services rendered under this Agreement, City agrees to pay Contractor the sum set forth in Paragraph 5.01 of this Agreement upon completion of the Services. Contractor shall submit to City an invoice and statement of Services, prepared in accordance with City requirements, upon completion of the Work. City shall make payment to Contractor within thirty (30) days of acceptance and approval of an invoice prepared in accordance with City requirements. Page 6 of 20 5.04. Contractor shall be responsible for paying any subcontractors used in the performance of this Agreement. Subcontractors shall not bill the City directly. Expenses 5.05. 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. Compensation for Changes 5.06. 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 4.02 and 4.03 of this Agreement. Compensation adjustments in each such change order shall be established by one or more of 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 6. OBLIGATIONS OF THE PARTIES 6.01. Contractor is responsible for meeting all conditions of this Agreement and City Standards & Details for all Work performed. Substandard Work, as determined solely by the City, shall be redone at the expense of the Contractor. Products of Consulting 6.02. 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 6.03. 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 Page 7 of 20 not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. 6.04. 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. 6.05. 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. 6.06 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. C. 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. Umbrella or 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 liability 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. Page 8 of 20 6.07. 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. 6.08. 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 under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth above. Representations 6.09. 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. 6.10. 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. 6.11. Contractor represents that it has the qualifications and skills necessary to Page 9 of 20 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. 6.12. Contractor declares and states that it has complied with and will continue to comply with all federal, state, local air pollution control laws and regulations applicable to the Contractor pursuant to Section 2022.1 of Title 13 of California Code of Regulations and local laws regarding business permits and licenses that may be required to carry out the Services to be performed under this Agreement. 6.13. 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. 6.14. 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. 6.15. 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 6.16. 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 Page 10 of 20 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 6.17. During the course of Work being performed, Contractor and any of its subcontractors, shall maintain and retain, not less than three (3) years after 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 6.18. 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 6.19. 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 6.20. 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 Page 11 of 20 receipt of such notice, to assume the defense with counsel reasonably satisfactory to City, or if, in the reasonable judgment of City, a direct or indirect conflict of interest exists between the parties with respect to the claim, or if in the sole judgment of City the assumption and conduct of the defense by 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 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 6.21. 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. 6.22. 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. 6.23. 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 Page 12 of 20 provision in its agreements with subcontractors that binds the subcontractors to this non -disclosure requirement. 6.24. 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 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. 6.25. 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. 6.26. 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 6.27. 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. 6.28. 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. 6.29. 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 6.27 and 6.28 of the Agreement. Page 13 of 20 Progress Reports 6.30. Contractor shall meet with City staff, upon City's request, or as needed, in order to provide reports or information concerning the Services being performed by Contractor under this Agreement. Contractor's License Classification 6.31. Contractor shall possess all appropriate licenses for the duration of this Agreement. Warranties 6.32. Contractor shall assign to the City at the time the Equipment is delivered all manufacturers' warranties and Contractor shall assemble and deliver to the City complete copies of all warranties, guaranties, and operating and maintenance data and all other documentation from all manufacturers pursuant to this Agreement. 6.33. Contractor warrants that title to Equipment will pass to the City either by incorporation in the construction or upon the receipt of payment by Contractor, whichever occurs first, free and clear of all liens, claims, security interests or encumbrances, and that no seller of any Equipment or any portion thereof will retain an interest therein or an encumbrance thereon. 6.34. Contractor warrants that all Equipment will be new and free from defects in materials and workmanship, comply with the specifications provided by the manufacturers, be of good quality and merchantability, and fit for their intended purposes, and conform to all applicable governmental regulations, statutes, and ordinances. Any Equipment not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. In the event that the test results obtained by either Contractor or the City reveals that any portion of the Equipment does not meet the City's specifications or the City identifies any defects in or damage to the Equipment, Contractor shall promptly repair or replace any defective Equipment; provided, however, that if, in the City's reasonable discretion, the quantity or quality of the defects are substantial, the City shall have the option of rejecting the entire shipment of Equipment from Contractor, and obtaining another vendor to provide the Equipment. Contractor shall be responsible for all direct and indirect costs that may be incurred by the City in connection with the rejection and/or replacement of damaged or defective Equipment, including any and all damages caused to the City's existing equipment, storage and/or system by the use of defective Equipment provided by Contractor. Page 14 of 20 6.35. Contractor shall obtain for the benefit of the City, and assign to the City, commercially reasonable manufacturers' warranties, specifically, Contractor warrants the followina. �tuuelve`month lebo.r antl aterral vri'a ra tvAR, ,.beaii� Gity's ac�e,p�ance of the Equlpm11--111 ent. All manufacturers' warranties, any warranties typically provided by Contractor and any other warranties made applicable by law shall apply to the City's purchase of the Equipment. Warranties shall commence from the date the City receives the Equipment under this Agreement or the City's acceptance of the Equipment being purchased hereunder, whichever occurs first. Contractor shall assist the City in the enforcement of all such warranties. 6.36. Contractor, at its cost, shall promptly repair or replace or cause the manufacturer to repair or replace (provided, however, that the City shall cooperate in working with the manufacturers if the warranties have been assigned to the City) Equipment rejected by the City as defective or as failing to conform to this Agreement if reported to Contractor within the Warranty Period. The Warranty Period shall commence from the date Equipment is delivered hereunder or from the date of the City's acceptance of the Equipment being purchased hereunder, whichever occurs first; or (b) such longer period of time as may be prescribed by law or by the terms of the applicable manufacturers' warranty. The City shall give such notice promptly after discovery of a defective condition. A new Warranty Period shall commence for replaced Equipment on the date the replacement was made. Contractor's obligations hereunder shall include the obligation to repair any damage to other property caused by the defective Equipment or the repair thereof. Contractor shall indemnify the City from and hold the City harmless against any and all claims, liabilities, liens, damages, losses, costs, and expenses, including reasonable attorneys' fees and all costs of defense, arising out of or relating (a) to any such Equipment found to be defective or not in accordance with this Agreement, or (b) the correction of any such Equipment. The foregoing representations, warranties, covenants, and agreements shall survive any termination of this Agreement and final completion of the delivery of the Equipment and are in addition to, and not in lieu of, any and all other liability imposed upon Contractor by law with respect to Contractor's duties, obligations and performance hereunder. SECTION 7. TERMINATION OF AGREEMENT 7.01. Unless otherwise terminated as provided in this Section, this Agreement will continue in effect until such time as the City receives a final comprehensive report summarizing the Services, analysis of tests and results, unless otherwise extended according to the terms and conditions set forth in this Agreement. Page 15 of 20 Non -Default Termination 7.02. 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. 7.03. 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. Termination on Occurrence of Stated Events 7.04. 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 7.05. 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 Page 16 of 20 B. Contractor's material breach of any obligation or provision contained in Section 5 of this Agreement. 7.06. 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. 7.07. 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 loss of profits for the unexecuted portion of the Work or any other damages because of such termination or reduction. SECTION 8. GENERAL PROVISIONS Notices 8.01. All notices, approvals, consents and other communications between the parties shall be in writing, and shall be sent by fax or by certified mail (return 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: Advanced Electronics, Inc. City - City of Vernon Attn: Robert W. Conrey, President Attn: City Administrator 2601 Manhattan Beach Blvd. 4305 Santa Fe Avenue Redondo Beach, CA 90278-1604 Vernon, CA 90058 Fax: 310-643-8167 Telephone: 310-725-0410 Fax: 323-826-1438 Telephone: 323-583-8811 ext 260 Entire Agreement of the Parties 8.02. 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 Page 17 of 20 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. 8.03. 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 8.04. 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 8.05. 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, Page 18 of 20 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. 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 8.06. 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. 8.07. 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 Page 19 of 20 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. 8.08. Except as may otherwise be specifically provided herein, this Agreement may be modified or amended only by a written document executed by both Contractor and the City and approved as to form by the City Attorney. 8.09. 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. 8.10. 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. City: City of Vernon Name: Title: Date: ATTEST: Manuela Giron, City Clerk APPROVED AS TO FORM: Jeff A. Harrison, City Attorney Contractor: Advanced Electronics, Inc. Name: Title: Date: Name: Title: Date: Page 20 of 20 EXHIBIT A Quote rage: I Advanced Electronics Inc. 2601 Manhattan Beach Blvd., Redondo .Beach; CA. 90278 * 31:0-725-0410 * Fax 31t)-643-51.67 255 Lambert S.t., Unit 10, Oxnard, CA 93036 * 805-604-91.6.E * Fax 805.-604-9199 865 S. Milliken Ave., Sulle. C & D, Ontarlo, CA 91761 * 909.390-0460 *lax 909-937-712 OJR.Djf)R DATE: IOW007 1plvl+.C:LST();WIVIt NO.: 1296501 riIL TU: VPMNON, CITY OF vm(?i1=8apn; Cl'TY ov A"1°LN: 1)I IyAK1'tvftlNl' T?. 4305 mmA IFE AVENUE 4305 SAN1'A 173 AVENUE VERNON, CA 90058 VERNON, CA 90058 (). l�a CONTACT: vI;RN 1V-1"t),F'I�, C:1'r` OF ctJTAC►!I iF PIJO F-. 323-583-8811 1'Elf)iYC : 323-583-881 i. ORDER :NO P.O. NO. $111P VIA FOU TERMS SATX$VIWS'ON 0003Z18 OUIi `11tl.IC:`K NET 30 ADVANCIN)1:LfiC:'I'R()NiC'S ITEM DESCRIPTION O'1'Y' UNr•1'PRICE EX'I'6:NDED CONVI RT POLIC1 AND FIRE RADIO CONTROL 1..lNI�.S'I'C) FII)Iil; ()1>"1'I('. 5YS'I'IsArl, CUSTOMER ISTO 11ROVIDE' POINT TO POINI SIN L MODE; I`I0I-,R C0NN1;CT1V[TY FR()M C1:NT11ALPUI:N1 IN PI)'1'I;sl.,L'Y1fC)NI; ROOM ANJAC'I"NTIT) RADIO P"OU'IPMENT ROOM M HA:SUMENl' TO LAC H REMOTE POINTAS FOLLOWS: I. RQUIPMEN'( ROOM RE INF.AT11 WATf-,R'mNk 01HIND FIRE, S`1'ATCON 3. 2. COMPUTT-A MAINFItAM)" AT r_ RE' STATION I. 3. FI.RE STATION 4 EAU CIRCUIT `1'O (; AU'vS1.ST OP NOT L&SS "1"LIMN 2 S'f'RANDS. IIOMIz Jli )N T'O 1'.I:). CC.IS'I'OMlil.;'1'O1'f;R.1k11NA1'1:1-.ACH RU'eNANf) PROVIDEJACK ADVANCED 1=LECTRONICS TO PROVil)1•; RACK iMOUNC 1 NC:lMUR1.'. ANT) 4 )( CI IVEWS ATM), S'.I'AN17.�1..ON.1 "1`RAN51v11'1".PCiRS AT FS 1, FS4, ANC.) WAT.1 R TOWfiR. ONEBACI-1 START: TRANSis WITR AND RRC1;fVI"sR ADVANCIn If�l?C:"7'f3cJNICS �Vll...l:: PR(1Vll�l ANO INSTALL DUPLEX F1f ,"R JUMPERS B TW1ilaN JACtti.RELDS AND INC)ti11h1ifiN'f,'II Rl411NAT'1; F113fiR L;NI`fS r1.N1J l7P'T'IAAI"l.l: l.,fNls 1„C?VIa:S. 14 SINGLE. MODE PIIIEWI'N, 2 CHANNU 15 SIN61.1.: MODF FB R RX 2 CIIANNG 1G RACK SHELF, FIBR OPTIC, POWER 5"Dp 5.00 1.00 2,943.00 2,943.00 1.197.00 14:715.00 14.713,00 1,197.00 17 JUMPER, DUPl.[n?(S17 IYfI.1 R ti(:-S'1' f.00 6SA0 585.00 18 N41SCSUT111.1F..-,S 19 LABOR TO INSTALL AND TUST 1.0(1 1G,t)(f 125.00 175,00 L25,0p 2,800.0t) ONTINUED (r a 20 TRAV1:HAIMP, 1,00 90.00 90,00 This quote is valid for 330 clays unless an extension is requested and grantod in Writing. N1i: f OROF R: 34.22100 hi_"�tLAC HT: 0,00 SAIAS TAX: 2.585.30 Authorized Signature Authorized Printed Nam(; Late By signing this document, you have agreed to the terms and e(SnditiUft$ Attached, Trr'nili and C.00di(lolls 0JR-DFRS AND FTRIVI ORU.E'RS; By placing its Order nail executing Ill sales Order form (referred to herein its "ASrecmanl" ar "Farm."), Customer aCkn.Uw1L(I eS its ajrLCmCn1 to purchase ogufpment anti scrvicO describtzd (in th@ "Sales Order" form and uny altaahmants ref4renced thereon subjoet In the terms and conditions which follow,. RUah sales order corm must (1) be 91tjI1Cd by an uuthitilized.representati.ve ol'Cu.slomer, (2) aceornpanied by a written purchase order (where Customer procvduresacquire the same far such puTeha.3es.), asd (3) be a0companlcd by the payment, Or deposit required as Yet forth on tine sales ardor fOrili..To be h.indin salsa order each Accost comply with all requirements forth herein and be acccpled in w-riting by an authorized represcntativu OI' Advanced Electronics, Inc, (*'Advanced"). Upotl the written acceptance by Advanced, each sales order becomes a *ITlit;lg ORDER."' E()UIIr,MFNT, LAiIO.R AN AVAILA UILITY: Advanced will hold equipment and labor pricing For 30 days from the data or file sales order, after which pricing iind availability Inny chat go wil:hgnt ndiice.. G:quipmCnt availability, installation scheduling altd service scheduling is a:lwt)ys Subject to the manufficiures ability to deliver Irquipmont and purls. F.RF QUENC_IFy, LICEN:SYS AND 81TRVICL� I'ROVIl1fXRSt All fretlucncics and syt.ielch codes are lO bp supplied by Customer tt.pon expelition or -this Agrealricnl unless Advanced has 4(ircirically a.ccept(td rnsppnsi.bi.lity to provide cite samg on the sales e In writin order. Customer accepts full responsibility Ibr the .acsuricy of such r.nformatlun and will be respousibiq lilt any reslocking fcc, additional ports, and/or lobt)x rsrtt:uu'c(l (tile to inoolnplel.o, incorrect and /or invalid fltformati.on provided by Customer. Clist(z.mcr is so9uly responsible for obtaining ally licenses Or other aulhnrfzatians roquired by the Federal Communications Colnntrssion ("FCC") and for complying with I-C'C rates, and with the rules Lail regulations Of tiny other fedora], state or local regulyWry agency, Neither Advanced nor any 01' Its employees are agents or ropm.9witatives or file Customer oa FCC mutter; Or olherwlsu. If applranhlu, Customer acknovvledge5 that it has selected it rtidto _ conlmilcarrier III Provide service which utilizes, radio freotl1 O0 ies authorized acid controlled by the FCC Advanced has no control over gliulily, coverage Or reliability of service prpviticd by other parties. Customer acknowledges that Rh si.guttls are subject to dead spoils, power autaygcs, all"Osplicric conditions ,:rod other problems wlllell may of unto interfere with normal coal in tinioations I'AVMIFN V TERMS A..IV.I) LA` E. PAYMENT CIiARG.VS: full pnyrnotw is re(lufred with eneh order unless ancci arrangements Aire ntnd.e rind ;set forth Otl talc soles order forin. it, the olygnt that III(' IUII porehase price or equiplrlcrlt and services called for in this Agreement is not paid at the linl.e or CIANlamef'g Order, the unpaid belanct is due upon dcllvcry al" the t tulpnluru tO Advanced Pram ttll'aclurer. All paytncnts will by by tt(tmpany chick,. cashiars' check, money ordoi, Visit or Master Card. Arrangoolents can Ile he man Olady in udvanae orurder it) Pay fly Cilstlloicr Company check or chal�Cd to iln rlpsn C'usl,omLr aciOunl. All Cuslamcrs Paying by C.olopully GIIGek or charging to in Open account must have leceived prior nuthori allon iherOlbre by lowing nl(a Advanreo's credit quallficallans prior to Ilse jplitceilleM of any Order. No employee Or Advanced Is permitted to accepi cast, it, he PlIv rielrl of ally Obligation due A'dvane:ctl. If any payment of llrly sum clue from C;ustontcr is not received by Advanced within rive (5) days aflu.r such payment is due, then such Overdue a11101Mls shall Ile subject o delinquency chltrge (IiguidalLd darnages inldur California Civil Code Soution 1671) at rile rule Or inlelesl equal to l8°1 per annoill from the date such overdue. amounts were. ncluaHv due until the (Into actually received 03, Advanced CilaOmer sackuowledges that such delinqutlney ohnrp; is rcasonalble under all the circtnmsutnccs existillf, ,al tilt time this Agteemcni w;n made, C"uailomcr i ­roas that acceplam:c ()fall or any portion of such drltriqu °ncy charge by Advanced will nut cOrtvrltute n walver by A(lviruce(l Of Customer's def;lfill wilh respect Iti smc)Y overdue om(nuils, not will it prcvel A dvariectl 1'1'OnY' uxcrclattlg any,, all other rights ur remedies which A(I +.arced ma.y have. Any delinquency ehar,�,c. (I iscoulYt (ale is and/or interew rate set i'orth It1•1611 shall br Chulticd or 1lppllod at the rate sel lurth hurein or Ihr: :11LINimull, rate allowed fly law, whichever lower RE'r1 RN ppLACY: All returns to Advanced, ror tiny reason, Inllsl show to <:lezu'I} legible an(I valid #clurn hlcrchtindise Mllhor'""On ("It A•t A.') nuulhcr On the outside Of the slifppinl' box NO returns will be acc•epled w'ilhout a valid R.M-A number, A I )t Iv1-A returns slululd tic Neill fright 1 repaid, Repair ur replacement will be solely at Advancecl's "Pit()" I'o obtain an R NI A ,lumber it is necessary to call Advanced's service ccnler with [lie Ibllowing information: O) '1'lie invoice humber and dilie of Purchase; (2) ')'lie purohnse Order numhcl. (3) The make, model nunibcr find scriul number of the e(jillpolent It) ill± re(tIrtled, Cllefor ilofdeottfictulun No equipmen4fl'i61rrICSI Ifll' exeft(Illge Or Credit trill bC ucecpred +aithor.ltall manuals, eohlus, Paris and oiiu.mal fnCl(lry packaging. CA NC I:LLA' (ON C..H k]ZG thS: [f this Aercuriteol is Canceled by Customer prior to delivery forOlhrr (fan lliv default of Advanced, Customer shall pay Advanced thirty pcleLf, (701io) ul'the t(lhil puce for all product, ucccssor cs, illatalfauon and scrvlcct+ livlcd i>n tile, sales Order to defray restockutg find a.dininlstrative costs involved in the stile as liquidaled donl;lgcs;told not as a pcnakv I UUIPYI ENT ,NOT FOR .RLSALE: C"ustorner acknowledge-s that said equipment on the salts cider' is NOT for resale and that the C usll aut is the vole "t,rrd user' Of th(! egtlipmenr (Icscrlbed hLrcin, unless slated differently On rile ;.ales Order and agrCccl to in writing by U «Ill d Steed rldvo-lnced o1'1acer Custom cr f1grees and warrants thttl it will NOT Offer this equipmennl I'Or Resale, or for lrxport out of the Untied Sfiilfes. "' LINIIl,E1) W 1ItR:ANTY; All lgoipmclrt +valranucs and Speei icnrians are proviciod by the manufaettrr<r of rile equipment. Advanced wantrnla its sorvtces Iry be pfoperly pal-rornit+(1 ltrid to be free Ordefeels in cvoikinan.s'llip ror ;l) days, unles's;,ttlted otherwise: art the sales Order . Damage tin(il nuCidCni, nil+.lee; rnl".5e. 11cgIi9cncc, cxircllle e(1ndlliOrIN hulnitltt;y; so vivo from another service p Y'iDY ldar; 1"C Of unapprovCl, trYLolrcct Of faulty service, parts andipt `aceessorio' will yoil'l till wlierall ties. 01wilnlr or otherwise. I.amperirl& with I:he aquipinum, including tlpkrading or repair, by unOulhorizCd personncl will tllso raid all w;lrranlics This linlilcd warranty is void ifCusYomur rcloctite. fliv equipment. has tilt installation or cqutpnrcOr wenkLd on by anyone Olilrrt.ban Advane(xl ar urlachcs equipment Oraeccssories not plovided by Advi(ilued. Advancctl's wairunly shall nnl he cnlnrged iuld no ubligalion or liability strati r Nvr out F Adshed. rl's rcnduring of (et lrnical advice, fttcililics nr serviec in connection will, Customer's ptu'chasc ofthe prntluul and/u.rscrviccs Furnished. EXHIBIT B EXHIBIT B Form Change Order CHANGE Contract Number: Change Number: The requirements of the above -designated Agreement are changed as follows: City and Contractor agree that Contractor's compensation shall be adjusted as follows: City and Contractor agree that Contractor's schedule shall be adjusted as follows: This adjustment covers the entire compensation for the Change set forth above and includes, but is not limited to compensation for all engineering, material, equipment, subcontracts, labor, overhead, profit, changes in scheduling and delays resulting, directly or indirectly, from the Change, as further detailed in the Agreement. Contractor: City: Advanced Electronics, Inc. City of Vernon By By Date Date INSTRUCTIONS TO CONTRACTOR Contract Number: Instruction to Contractor: Date: Specific Instructions to Contractor: In accordance with the Terms and Conditions of the Agreement, the City classifies these instructions as: Supplementary instructions, not involving a Change (Should these instructions be, in the opinion of Contractor, a "Change", written notice thereof must be given to City within 10 days of the receipt of these instructions. If such written notice is given, Contractor shall not commence with the work so ordered until written agreement is reached on the classification of these instructions and on the resulting adjustment in contract compensation, if any.) In the event that City and Contractor fail to agree on the classification of these instructions or resulting adjustment in contract compensation, if any, refer to the Changes Section of the Agreement. A Change (Contractor shall, within 10 days of the receipt of these instructions, furnish City a statement of its proposal for adjustment in contract compensation occasioned hereby. Contractor shall not commence with the work so ordered until written agreement is reached on the resulting adjustment in contract compensation, if any.) In the event that City and Contractor fail to agree on the classification of these instructions or resulting adjustments in contract compensation, if any, refer to the Changes Sections of the Agreement. City Representative Please acknowledge receipt of this instruction by returning one copy signed in the space provided below. Contractor's signature hereon does not indicate his acceptance of the classification assigned hereto by City. Contractor's Representative IM Date Date 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 24, 2008 Advanced Electronics, Inc. Attn: Robert W. Conrey, President 2601 Manhattan Beach Blvd. Redondo Beach, CA 90278-1604 Re: Equipment Purchase and Services Agreement Dear Mr. Conrey: The insurance requirements have been met. Transmitted herewith is a fully executed agreement, as referenced above, approved by City Council on February 19, 2008, through Resolution No. 9555. if you have any questions regarding this matter, please call Mr. Mark Whitworth at 323/583-8811 ext. 280. Very truly yours, L Ne mly Gi o City Clerk NG:dr c: Mark Whitworth D. O'Callaghan S. Kevin Wilson Dolores Jaunzemis Resolution No. 9555 Agreement File No. 08-023 E�,-cfusivefy Industriaf EQUIPMENT PURCHASE AND 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 19t" day of February, 2008, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN CITY OF VERNON, a municipal corporation, hereinafter referred to as the "City" 4305 Santa Fe Avenue Vernon, California 90058 AND Advanced Electronics, Inc., hereinafter referred as "Contractor," 2601 Manhattan Beach Blvd. Redondo Beach, CA 90278-1604 RECITALS WHEREAS, the City's Fire Department desires to convert the connectivity of its existing radio communication system to a fiber optic system, which conversion will also include the radio communication system of the Police Department; and WHEREAS, the City's Fire Department desires to purchase five (5) single mode fiber TX, 2 Channel Receivers, five (5) single mode fiber RX, 2 channel receivers, one (1) fiber optic rack shelf together with necessary parts, accessories, hardware, installation and testing (hereinafter collectively referred to as the "Equipment") to convert the Police and Fire radio communication systems to a fiber optic system; and WHEREAS, the purchase of the Equipment will improve the effectiveness of both the Police and Fire Department's operations and services provided to citizens, residents and businesses within the Vernon community; and WHEREAS, both the Police and Fire Departments have purchased equipment and services from Contractor, Contractor currently maintains various equipment within the Departments and Contractor is familiar with the City's requirements; and WHEREAS, Contractor submitted a quote for the purchase of the Equipment dated October 3, 2007 for the purchase of the Equipment and installation and testing services (hereinafter collectively referred to as the "Proposal"), a copy of which is attached hereto as Exhibit A and incorporated by reference; and Page 1 of 20 WHEREAS, the Proposal includes a description of the Equipment and services to be performed by Contractor and the attendant costs; and WHEREAS, Contractor has advised the City that it is qualified and capable of providing the Equipment and services described in Exhibit A, and is willing to do so on the terms and conditions set forth below; and WHEREAS, the City desires to enter into an agreement with Contractor to provide for the purchase and delivery of Equipment, material and the labor to install and test the Equipment on a contractual basis as defined in the terms and conditions set forth below. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: SECTION 1. PURCHASE OF EQUIPMENT 1.01. Contractor agrees to sell, deliver, install and test the Equipment, including all material, and the City agrees to purchase the Equipment and installation and testing services as identified in Exhibit A. 1.02. Delivery. Contractor shall obtain and sell, deliver and test the Equipment at the City of Vernon, F.O.B. Job Site. Contractor is responsible for all costs of full freight, including insurance, to Job Site. Risk of loss shall pass to the City upon delivery F.O.B. Job Site. SECTION 2. TERM OF CONTRACT 2.01. This Agreement will become effective upon issuance of a Purchase Order, and will continue in effect until such time as the City approves the scope of work completed pursuant to the Proposal or until terminated as provided in this Agreement. SECTION 3. DEFINITION OF TERMS 3.01. 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. Page 2 of 20 C. "Contractor" shall mean Advanced Electronics, 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 5.01 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. "Equipment" shall mean the equipment identified in Exhibit A. G. "General Provisions" or "General Conditions" shall mean the General Provisions as set forth in this Agreement. H. "Owner" shall mean City of Vernon, California, and where applicable, their affiliated companies, directors, officers, employees, agents, and representatives. "Premises" shall mean the physical premises under City's control or ownership where Work hereunder is to be performed. J. "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: Information which, at the time of disclosure hereunder, is in the public domain; 2. Information which, after disclosure hereunder, enters the public Page 3 of 20 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. K. "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. L. "Work" or "Services" shall mean the work performed by Contractor and required to be performed from time to time by City under this Agreement. SECTION 4. SERVICES TO BE PERFORMED BY CONTRACTOR Specific Services 4.01. Contractor's Services shall include, but will not be limited to, testing the Equipment and training on the Equipment. The Contractor's Services are more specifically detailed in the Proposal attached hereto as Exhibit "A" and incorporated herein by this reference. Change of Services 4.02. City may at any time, by written change order executed by the City, make changes in the scope of Work, to extend the Work duration and/or total compensation of Contractor's Work. 4.03. City may make "Changes" by increasing, reducing or deviating from the requirements of the scope of Work. A form of Change Order is set forth in Exhibit B attached hereto and incorporated by reference. Timing of Services 4.04. Contractor's Services shall commence upon the execution of this Agreement by Page 4 of 20 both parties and award by the City Council and shall end when Contractor has completed the work according to the Proposal, unless this Agreement is otherwise terminated according to Section 7 of this Agreement or extended according to the conditions and terms set forth in this Agreement. Delivery is expected to be completed no later than thirty (30) from the issuance of City's Purchase Order. Completion of the services to be performed by Contractor is expected to be no later than sixty (60) days after delivery. 4.05. 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. Method of Performing Services 4.06. Contractor will determine and is responsible for the method, details, and means of performing the above -described Services. Status of Contractor 4.07. 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. 4.08. 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 4.09. 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. Page 5 of 20 4.10. Payroll taxes including federal, state and local taxes shall 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. 4.11. 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. SECTION 5. COMPENSATION 5.01. In consideration for the Equipment and Services to be performed by Contractor, described in this Agreement, City agrees to pay Contractor a sum not to exceed Thirty -Six Thousand Eight Hundred Twelve Dollars and Thirty Cents ($36,812.30), which includes installation, testing and freight costs and applicable sales taxes (the "Contract Price"). The actual amount will be based on the amount required to furnish the Equipment and perform the services, billed in accordance with Contractor's Proposal attached as Exhibit A. Entire Compensation 5.02. The Contract Price is full and complete compensation, and constitutes the entire compensation due Contractor for the Equipment and Services and any and all of Contractor's obligations hereunder, regardless of difficulty, unforeseen circumstances, hours worked or equipment, materials or personnel required. The Contract Price includes without limitation, 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 5.03. For Equipment and Services rendered under this Agreement, City agrees to pay Contractor the sum set forth in Paragraph 5.01 of this Agreement upon completion of the Services. Contractor shall submit to City an invoice and statement of Services, prepared in accordance with City requirements, upon completion of the Work. City shall make payment to Contractor within thirty (30) days of acceptance and approval of an invoice prepared in accordance with City requirements. Page 6 of 20 5.04. Contractor shall be responsible for paying any subcontractors used in the performance of this Agreement. Subcontractors shall not bill the City directly. Expenses 5.05. 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. Compensation for Changes 5.06. 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 4.02 and 4.03 of this Agreement. Compensation adjustments in each such change order shall be established by one or more of 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 6. OBLIGATIONS OF THE PARTIES 6.01. Contractor is responsible for meeting all conditions of this Agreement and City Standards & Details for all Work performed. Substandard Work, as determined solely by the City, shall be redone at the expense of the Contractor. Products of Consulting 6.02. 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 6.03. 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 Page 7 of 20 not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. 6.04. 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. 6.05. 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. 6.06 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. C. 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. Umbrella or 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 liability 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. Page 8 of 20 6.07. 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. 6.08. 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 under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth above. Representations 6.09. 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. 6.10. 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. 6.11. Contractor represents that it has the qualifications and skills necessary to Page 9 of 20 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. 6.12. Contractor declares and states that it has complied with and will continue to comply with all federal, state, local air pollution control laws and regulations applicable to the Contractor pursuant to Section 2022.1 of Title 13 of California Code of Regulations and local laws regarding business permits and licenses that may be required to carry out the Services to be performed under this Agreement. 6.13. 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. 6.14. 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. 6.15. 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 6.16. 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 Page 10 of 20 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 6.17. During the course of Work being performed, Contractor and any of its subcontractors, shall maintain and retain, not less than three (3) years after 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 6.18. 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 6.19. 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 6.20. 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 Page 11 of 20 receipt of such notice, to assume the defense with counsel reasonably satisfactory to City, or if, in the reasonable judgment of City, a direct or indirect conflict of interest exists between the parties with respect to the claim, or if in the sole judgment of City the assumption and conduct of the defense by 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 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 6.21. 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. 6.22. 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. 6.23. 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 Page 12 of 20 provision in its agreements with subcontractors that binds the subcontractors to this non -disclosure requirement. 6.24. 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 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. 6.25. 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. 6.26. 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 6.27. 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. 6.28. 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. 6.29. 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 6.27 and 6.28 of the Agreement. Page 13 of 20 Progress Reports 6.30. Contractor shall meet with City staff, upon City's request, or as needed, in order to provide reports or information concerning the Services being performed by Contractor under this Agreement. Contractor's License Classification 6.31. Contractor shall possess all appropriate licenses for the duration of this Agreement. Warranties 6.32. Contractor shall assign to the City at the time the Equipment is delivered all manufacturers' warranties and Contractor shall assemble and deliver to the City complete copies of all warranties, guaranties, and operating and maintenance data and all other documentation from all manufacturers pursuant to this Agreement. 6.33. Contractor warrants that title to Equipment will pass to the City either by incorporation in the construction or upon the receipt of payment by Contractor, whichever occurs first, free and clear of all liens, claims, security interests or encumbrances, and that no seller of any Equipment or any portion thereof will retain an interest therein or an encumbrance thereon. 6.34. Contractor warrants that all Equipment will be new and free from defects in materials and workmanship, comply with the specifications provided by the manufacturers, be of good quality and merchantability, and fit for their intended purposes, and conform to all applicable governmental regulations, statutes, and ordinances. Any Equipment not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. In the event that the test results obtained by either Contractor or the City reveals that any portion of the Equipment does not meet the City's specifications or the City identifies any defects in or damage to the Equipment, Contractor shall promptly repair or replace any defective Equipment; provided, however, that if, in the City's reasonable discretion, the quantity or quality of the defects are substantial, the City shall have the option of rejecting the entire shipment of Equipment from Contractor, and obtaining another vendor to provide the Equipment. Contractor shall be responsible for all direct and indirect costs that may be incurred by the City in connection with the rejection and/or replacement of damaged or defective Equipment, including any and all damages caused to the City's existing equipment, storage and/or system by the use of defective Equipment provided by Contractor. Page 14 of 20 6.35. Contractor shall obtain for the benefit of the City, and assign to the City, commercially reasonable manufacturers' warranties, specifically, Contractor warrants the following: a thirty (30) day labor and material warranty to begin upon City's acceptance of the Equipment. All manufacturers' warranties, any warranties typically provided by Contractor and any other warranties made applicable by law shall apply to the City's purchase of the Equipment. Warranties shall commence from the date the City receives the Equipment under this Agreement or the City's acceptance of the Equipment being purchased hereunder, whichever occurs first. Contractor shall assist the City in the enforcement of all such warranties. 6.36. Contractor, at its cost, shall promptly repair or replace or cause the manufacturer to repair or replace (provided, however, that the City shall cooperate in working with the manufacturers if the warranties have been assigned to the City) Equipment rejected by the City as defective or as failing to conform to this Agreement if reported to Contractor within the Warranty Period. The Warranty Period shall commence from the date Equipment is delivered hereunder or from the date of the City's acceptance of the Equipment being purchased hereunder, whichever occurs first; or (b) such longer period of time as may be prescribed by law or by the terms of the applicable manufacturers' warranty. The City shall give such notice promptly after discovery of a defective condition. A new Warranty Period shall commence for -replaced Equipment on the date the replacement was made. Contractor's obligations hereunder shall include the obligation to repair any damage to other property caused by the defective Equipment or the repair thereof. Contractor shall indemnify the City from and hold the City harmless against any and all claims, liabilities, liens, damages, losses, costs, and expenses, including reasonable attorneys' fees and all costs of defense, arising out of or relating (a) to any such Equipment found to be defective or not in accordance with this Agreement, or (b) the correction of any such Equipment. The foregoing representations, warranties, covenants, and agreements shall survive any termination of this Agreement and final completion of the delivery of the Equipment and are in addition to, and not in lieu of, any and all other liability imposed upon Contractor by law with respect to Contractor's duties, obligations and performance hereunder. SECTION 7. TERMINATION OF AGREEMENT 7.01. Unless otherwise terminated as provided in this Section, this Agreement will continue in effect until such time as the City receives a final comprehensive report summarizing the Services, analysis of tests and results, unless otherwise extended according to the terms and conditions set forth in this Agreement. Page 15 of 20 Non -Default Termination 7.02. 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. 7.03. 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. Termination on Occurrence of Stated Events 7.04. 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 7.05. 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 Page 16 of 20 B. Contractor's material breach of any obligation or provision contained in Section 5 of this Agreement. 7.06. 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. 7.07. 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 loss of profits for the unexecuted portion of the Work or any other damages because of such termination or reduction. SECTION 8. GENERAL PROVISIONS Notices 8.01. All notices, approvals, consents and other communications between the parties shall be in writing, and shall be sent by fax or by certified mail (return 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: Advanced Electronics, Inc. City - City of Vernon Attn: Robert W. Conrey, President Attn: City Administrator 2601 Manhattan Beach Blvd. 4305 Santa Fe Avenue Redondo Beach, CA 90278-1604 Vernon, CA 90058 Fax: 310-643-8167 Telephone: 310-725-0410 Fax: 323-826-1438 Telephone: 323-583-8811 ext 260 Entire Agreement of the Parties 8.02. 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 Page 17 of 20 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. 8.03. 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 8.04. 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 8.05. 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, Page 18 of 20 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. 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 8.06. 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. 8.07. 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 Page 19 of 20 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. 8.08. Except as may otherwise be specifically provided herein, this Agreement may be modified or amended only by a written document executed by both Contractor and the City and approved as to form by the City Attorney. 8.09. 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. 8.10. 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. City: City of Vernon r�����V ��•C if/4 Nam : Leon i s C . l bu rg' Title: Mayor Dater ATTEST: anuela Giron, City Clerk APPROVED! AS TO FORM: HAflson, City Attorney Contractor: Advanced Electronics, Inc. Name: fo 6eii A Lb,✓�c'fy Title: t,fd r Date: AAa,y /d , 20Y � UQ-� Name: 13i AtA, 0—i Title: G Fi�, Date: Page 20 of 20 EXHIBIT A UAA o4 .. 0* 2601 Manhattan Beach Blvd., Redondo Beach, CA 90278 * 31 0-725-0410 * Fax 310-643-8167 255 Lambert St., Unit 10, Oxnard, CA 93,036 * 805-604.9166 * Fax 805-604R91,99 $65 S. Milliken Ave., Suite C & D, Ontario, CA 91.761 * 909-390-0460 * Fax 909-937-712 1013/2007 www, advanecdelectronics, coin CUSTONIERNO.: 1296501 Bit 'J., TO; VERNON, CITY OF ATTN: DEPARTMENTI) 4305 SANTA I is AVENIJF VI-RNON. CA 90058 Quote Advanced Electronics Inc. 81111"m VFRNON-PD VD, CITY Q17 4305 SANTA FEAVENUE, VII�ANON, CA 90058 Page: i & -5� co CONTACT: V1.':.RNON-PID.r`D, (-IT' OF -0 NI A C.1 -L.L, PlION1,": 323-583-8811 PHONE: 323-583-8811 1,M A I L ; EAMAJU URDER NO P, 0, NO, Sill P V [A Foll TERMS SALESPERSON 0003218 OURTHIJICK ITEIM DESCRIPTION CONWRTPOLICE AND 1ARE RADIO CONTROI, 11INI"STO I-IIIIER ()I'll(' SYS] km. C'USTOWR NTOPROVIDL POINTTO I)0IN'I SIN(?I.X I'VIOD)l- FIBER CONINI:CTIVITY P'Ro�j C)"NTRAL P0JNTIN I'D ITI FTI fOW ROOM ADJA(TNTT) RADIO F,QUII',%1UNTR001N4 M."T30 ADVANCF0 ELECTRONICS QTV EXTENDE'D I. I`QI UPINIFNIFFROOK4 IIIINEATH \kA'I+',kTANK 131:1 [IND 111U STATION 3. 1 CONIN 11 ITR MAINI'RAMI: A'I FIRJ`� STA-110N I I"IRE'STA1 ION it. I-ACH CIRCUITTO CAONYS I (*No'] I I:SS FI IAN 2.YrRAN,DS.110MI.RUN 11) 111). C( 1STOMI;R TOTI"RNHINA ITE-ACI I RUN AN41) PROVIDI:JACK 1,111I.D. ADVANCH) FLIFCTRONICST() PROVIDI'l RACK 4 RlIXTIVI"IRS ATI10. STAND ALONE 'l RANSNI-11-H Flkl`~ AT I'SI, FS-1. AND WAJT�'R'IOWER, ONE" FACI-I ANID RI-'1CUJVf,,1( I NCLU DF 1). AI)VANCIIS1)1,"Ll-'C'l'RO..141(,SWll,..[ PRiA114" AIND [INSTALL D1,11111"X pjiRS IIE . "TWUN JACK FIELDS AND EQU I I'M I -,N- 1', 'ITRNII NATI, 1"] BER 1: NUS AND 01"ITNI IZI-- LI N I` I.TVH-S'. 14 SIN6LE NIODE FIB IC FX'.'Cf IANNI- 5 -.00 2,94100 [-4,71 ' 5.00 15 DE F SIN(;1.11;1 NIOIBER RX,'-'(TIANNI. 5.00 2,94100 .110 16 RACK S1 ILLFFII3I'11\ ()IYj'I(', I,()Wfj't I MIJ I . 197,00 17 JUM111"R, Dt'"PLI"X Sm [11i1"R "W-ST 9.00 65X)0 515.01) 18 Loo 125.00 125j)0 19 (.AHOR 1 (1,00 I75M0 2,800,00 CON11NUIA) 20 TRAVEL#¥» 1p Am 400 This quote Rwyr tidays unless wc««i is requested and granted ewalr Atithorind%7wuK AtOorized PrintedName >lSigning, this +e_em.YOU hove agre dml, &nm+dmkai&attached. x!� pEm g; 7A F REIGIIT: mm SALES » ±Sfy " a *C % w7: Trrmsr ward f'ondlllanx ORDERS AND F1IRX1 ORV RV By placing its order and executing the sales Order ' "Form"), Costumer acknlawledges its p recmC.nt to purchase equipment and services dexcrihcd tin the "Sales Order" form and any ultachmcnts rcicronced thcre011 suh}ect to the terms end conditions which follow, Fach sales order form must 0) be signed by an auth:orrzed repreacntai.ive Of Customer. (2) trceom-ponied by a written purchase order (wilmo Customer proceda m require the saute for such purchascO. and 0) he aucompuriNd by rile petyment or deposit required as set forth On the, stiles order form. To he hindin:g each sofas order form must comply with of requirements see forth hercnt and be aecelated in writing by an turf odud rcpmnntativc of Advanced hlectronres, Inc (.'Advanced")_ Upon the written accopmnice by Advanced, each sales Order becomes a "FIRM ORI ERi " EQUIP51 ENT, L.APOR AND AV,AILABILITO Advanced will hold equipment and labor pricing Or 30 days from the date orfhe sales order, after which pricing and availability may change without notice. Equipment availability, installation scheduling and service scheduling I 444s ttuhlem ro the manufactures ability to deliver e"Tritent and putts. 1'rtEQUk NC:IES, LICENSES AND SERVICE i'Rt)A IDERS: All frequencies and squelch codes are to be applied by C°ustomci upon execution ofthis A,gmemom unless Advanced has apcctfic% accepted responsibility to preividp the some in writing on the settee order. Customer accepts full responcthllay for the anumv of such InfOn"han and will be rewpoIcsable Or any, nalocking tee. additional parts, and/or I;rhUr required dttc to ineampletc, rn4ormet rind ,'or invalid mrormation provided by C'nslomer. Customer is safely r sponsible or obtaining any licenses or other authorizations required by the lrederal (;.GmancalieaU"s Comrn%Kri (" C,,,) and fur cOulplyrnS with r C'C rules, and with the rules Had regulatnanl; or an other federal, stoic or local rePlotury agency. ';dc,ither Advanced nor arty of Ira cmplvAccs arc dents Or rcprtscWaUves oil the Cuswiner on EC;C' matters Or othei'Wise. If applie.trble. Customer acknowledges that it has selco" a radW common causer in larOvule so -vice which ut llres rod, Acquenries outhonzed and vontroINd by the FCC Advanced his 'in contral over quality, ""amge or mhabilky of service provided by other parties. C"uM,,cc acknawlcciges that Rh signals ore subject to dead spots, power otrta es, atmosphent; conditions and outer problems which may at hme interfere with normal Coll] antri ouons PA4'M ENT 'f) RMS AND LATE PA1 AlENT Cr1ARGEY F" payment is requtred with Hach ON, unless cashes tilrzrn t+nrcnts am rntrde and sot robes On the salt, order Arm In file eletst tit at he lull purchaase. lance of etltarl>ment and scrvaees caallcd Or in this Abreernent is not paid at tile, time ol'C`ttstavtacr'x onler, tile, unpaid Eala?tee is due upon delrverp of file egquipmcnt to, Advanocd front ihe manufuclurar All payments win be by Coin pan, check, ;+shiers check, molpy Order, A'asa or A�lastcr C'tud. Arrartgetnents earn ifc made in adva;rcc oforder w pay Q Ctr�tnntatr .oml:aany check of eharg.ed to an Open Customer ;acaSlcrl All t'rmnigers pHein, by company check or chargmg to an ripert account melee have received )tutor authurtcation therci'trr I)v haven _ m t 1_tivtuas pew, credit qua"I'Vrtions ,Haa( to file plrcem"t of any- ortl-,r Net nmployec of Advanced is permitled to accept cash in we payment of ally ?hlagmion clue Advanced Ilan^ payment of any suns due: lion Customer w not received by Advanced within five Q clays sitter such pavmcm rs due, than such Overdue, amn"N shall be subject o delk"enty charge Outdated danrtt�"c, under California Civil C`pdc Secimn 1671 ) at the rate of interest equal It ; g% leer annum from the due such overdue umount were actually due: unul the date actually received by Advanced r t"nimer acknnwled_gev Mal such delinquency cluirge teasonable "noes an Me cireutn,ratan~.€ exa ten)it( the: tarn. tile, Ayrreurent "VI) made t u.,inmer Arv'ev but occv plunce rrt all or any peutiun of such d,hnquener charge bs Advanced %vdl nut tot some €r "y a v r by Advanced eft u° 0mv s detuuh wish re �pcc.t to s,rria avetdrre amraunL`-, riot evil) lart'v�cnl Advanced m excle"M , any ear :all other ir_�hl r rcmc fans whwh A iv an"d may have Inv deLnyucnt:v ilr alto disc at pl Nate ta pa dkir intkre,r rate .let forth Item shall a,, tit u,_ed or ,Ipphod at rho late sel tonic herein or th whichever N anuximurrt title ,t lovvetl try l,ayv. lower RETURN POLKA: An returns to Advanced, rot ,env wayan, must show a r,QW, let;rhli, and vied Rown mcmurnlise Authorization ("R Lt A V number on the uutyidC oftleStpmg box Nn return: wall be o"eppol withoul a %'alyd Is Al A number. A 11 R.M A returrx shou d be scnl NOW Prepaid R" au or replaceurenl well he SAW at Advanced: option fo uhrant an It 'vt A number 0 is neeessary to call Advanced, Nemec center with the 600,winp infurmatton; (1 ) 1" anvuac.i' number end ;md itf porch tee., (?) �I'hc Purchaseorder rnrtnbea 'l'be (3l make. modal nurnbcr .tract serval number sib ihe eqtturpnarnt to I t: �f:turned. :Hull (<t) C Ostu fact Wentatacauon 'Vn egttipmenara leaned for vxch age of .rcdn is di he, accepted 1,ithnrrI an manuals, cables, put, and oricrraal (SCION fr acka iging. C A;` C EI I.A`r1ON CHARGEM It Ibis A rerinew N canceled by Customer prior to dcirvery A" OM" Ihan the: ; efauii ol:\;I"necd. C: ustorncr ;hall pry Advanced ttur v percern (M%) "[be tioaal price for all produ I accc,_csnrie in,.tullntnan anti scrvi;:cs la;tt;d can the salct ardor to defray mmuckbg and admutr.,tran" C,zsts AvONed In IN ale ass liquidated d amupR and not as:a p,,q V,QI`IPNI h NT NOT FOR RESALE; E; Customer ackowictiVs th 1, said equipment on the ti.ale'> order i> NOT for reNale and 01111 the (:'ustOrncr Is the sofa, "end c set" orthe cqurpmew dc.ccriber hctein, unless stated daNantly on be sales order a" a,,,," in w y by an ;rut Hooked Advanced offIce_t t'uslom - a nee and warrants that it wall NOT n'fter the, equipment firs Itcsak or for Px aLars trig the United States out of LLM!TED M'-ARRA\TS A" tqu ra sent warranue,< and slicrnccalions ;are pro"ded by the munuracturcr rff nc� •q,ripmirt Advanced waunnis os scrvm ; to , p,,0,,rly porurmyd :and tea he I ae cf defects in workmanship for qO days_ unlc r ntrrteJ uthcrvvisc. an the salty ON" Drt.r»a_c !runt ucrdcl t a+ru:,e rrriusc ncghgenae; cx renae codaliliurt,, latrm,+lr,y. servpc frond ani,lhcr vrae pruvlder, use Of anu"I'Oved, hues erect or tautly service parts and,or xect ;or:e; will void all ;warranties. {,ipeufnrr of r;;aieivice Walp"Ng with ncc equipanmW incAudoag upgmding or repair, by unauthrrr'ted pcoonnol will also void o wurrentlies "l"lns iilrwh" w-arwrity° A void TCusrOmcr rcicacutes Me equipmew. bus the insiaalotion ur equrpurent worked on b}� anyone Other Man ;+rhisIsicvd its ale achc5 equipment or aceeseora8s not provWed by lAdvanccd Adv anccd's warrant, shod not he erthiTed and ""fiaai on or liability shalt arise Out or Advanced 4 rcndenrip of technical advfee, facilrues nr screw in conneeNoll with C'usitrm is Purchase Ofthe nrncluct and ear sere Ices furnished EXHIBIT B EXHIBIT B Form Change Order CHANGE Contract Number: Change Number: The requirements of the above -designated Agreement are changed as follows: City and Contractor agree that Contractor's compensation shall be adjusted as follows: City and Contractor agree that Contractor's schedule shall be adjusted as follows: This. adjustment covers the entire compensation for the Change set forth above and includes, but is not limited to compensation for all engineering, material, equipment, subcontracts, labor, overhead, profit, changes in scheduling and delays resulting, directly or indirectly, from the Change, as further detailed in the Agreement. Contractor: City: Advanced Electronics, Inc. City of Vernon By By Date Date INSTRUCTIONS TO CONTRACTOR Contract Number: Instruction to Contractor: Date: Specific Instructions to Contractor: In accordance with the Terms and Conditions of the Agreement, the City classifies these instructions as: Supplementary instructions, not involving a Change (Should these instructions be, in the opinion of Contractor, a "Change", written notice thereof must be given to City within 10 days of the receipt of these instructions. If such written notice is given, Contractor shall not commence with the work so ordered until written agreement is reached on the classification of these instructions and on the resulting adjustment in contract compensation, if any.) In the event that City and Contractor fail to agree on the classification of these instructions or resulting adjustment in contract compensation, if any, refer to the Changes Section of the Agreement. A Change (Contractor shall, within 10 days of the receipt of these instructions, furnish City a statement of its proposal for adjustment in contract compensation occasioned hereby. Contractor shall not commence with the work so ordered until written agreement is reached on the resulting adjustment in contract compensation; if any.) In the event that City and Contractor fail to agree on the classification of these instructions or resulting adjustments in contract compensation, if any, refer to the Changes Sections of the Agreement. City Representative Please acknowledge receipt of this instruction by returning one copy signed in the space provided below. Contractor's signature hereon does not indicate his acceptance of the classification assigned hereto by City. Contractor's Representative IN Date Date