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Resolution No. 098641 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16' 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9864 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT BY AND BETWEEN BURNS AND ROE ENTERPRISES, INC. AND THE CITY OF VERNON WHEREAS, the City of Vernon (the "City") owns and operates a municipal electric system which provides the inhabitants of the City with electric power; and WHEREAS, the Light & Power Department of the City desires to retain the services of Burns and Roe Enterprises, Inc. ("Burns") to provide engineering, design, construction monitoring and related 1consulting services in connection with power and energy projects on a Itask basis; and WHEREAS, the City and Burns desire to enter into a master agreement setting forth the terms and conditions under which Burns shall perform the services requested by the Light & Power Department from time -to -time under a task order mechanism for a period of four (4) 1years; 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 Burns to enhance services provided to the Vernon community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE: CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Professional Engineering Services Task Agreement with Burns, a copy of 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 or Deputy City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send one fully executed Agreement to: Burns and Roe Enterprises, Inc. Attn.: Richard A. Edelman, Project Director 800 Kinderkamack Road Oradell, NJ 07649 SECTION 5: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to execute the task orders and any and all documents as shall be necessary or required to implement and carry out the Agreement and to perform such other acts and deed,s as may be deemed necessary or advisable to effect the purposes of Agreement and the transactions therein authorized. - 2 - 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 23 rd day of February, 2009. ATTEST: MANUELA GIRON,�--ityj-Clerk Name: Leonis C. Malbura Title: Mayor / Ha-yer Pce-T-em - 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. 9864, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, February 23, 2009, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) KANUELA GIROt�',--Ciety Clerk - 4 - w.94, n PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT BY AND BETWEEN BURNS AND ROE ENTERPRISES, INC., "T"kTro THE -CITY OF VERNON This Professional Engineering Services Task Agreement ("this Agreement"), effective as of 2/23/2009 ("EffectiveDate"), is madeby andbetween The City of Vemon("Client"), a California chartered municipafity�with offices located at 4305 S. Santa Fe Avenue, Vernon, CA 90058 and Bums and Roe Enterprises, Inc. (Debtor in Possession) ("Bums and Roe"), a New Jersey corporation with offices located at 800 Kinderkamack Road, Oradell, NJ 07649, WITNESSETH VvTHEREAS, Client desires to engage Bums and Roe to provide engineering, design, construction monitoring and related consulting services on a task basis upon the tenns and conditions hereinafter set forth, and Bums and Roe is prepared to perform such work upon such terms and conditions; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: Article I - Term of Agreement This Agreement shall be effective as of the date executed, and continue to be in effect for a period of forty-eight (48) months, unless otherwise earlier terminated. Article 11 - Scope of Work Bums and Roe will perform the Services (the "Services") as may be requested by the Client in connection with power and energy projects, which will be identified in individual Task Orders to be issued by the Client. The Client will issue to Bums and Roe written Task Order assignments describing the project, the scope and schedule of services to be famished and other material considerations, including budgetary limitations, if any. A sample Task Order to be used by the Client to approve and authorize Bums and Roe to proceed with the work is contained in Exhibit A. Article III - Compensation As compensation for the Services rendered hereunder, Bun -is and Roe will be compensated as set forth in the individual Task Orders in accordance with the hourly rates set forth in Exhibit B hereto plus approved out-of-pocket expenses. Professional Service Agreement Page 1 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article IV - Payment Bums and Roe will submit invoices covering monthly periods for the work performed and expenses incurred. Payment shall be due within thirty (30) days after receipt of the invoice in a forinat acceptable to Client. Late payments shall bear interest at the rate of 1 1/2% per month from said due date. In the event Client takes exception to any invoiced item, Client shall short -pay the invoices, deducting the excepted amount (s) from the invoice total, and pay the balance. Client shall promptly notify Bums and Roe, in writing, setting forth the reasons for the exception. Article V - Relationship of Parties Bums and Roe, and anyone it may engage to perform any part of the Work hereunder are independent contractors, and not employees or agents of Client. Article VI - Mutual Indemnity To the fullest extent pern-fitted by law, Bums and Roe agrees to indemnify, defend and hold harmless Client, its officers, agents and employees, against all third party claims against Client for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of Bums and Roe, its officers, a� ents or employees, in the 9 execution or perfomiance of this Agreement. To the fullest extent permitted by law, Client agrees to inden-mify, defend and hold harmless Bums and Roe, its officers, agents and employees, against all third party claims against Bums and Roe for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of the Client, its officers, agents or employees, in the execution or performance of this Agreement. Said agreement by each Party to indemnify the other, and its officers, agents and employees shall continue in full force and effect until the expiration of one (1) year after Completion of the Work.. Article Vil - Insurance As a minimum, Bums and Roe will maintain Workers' Compensation Insurance as required by law and Comprehensive General and Automobile Liability Insurance with combined bodily injury and property damage limits in accordance with Exhibit C. Article Vill - Termination Either Party may terminate this Agreement upon written notification to the other party, such termination to become effective upon receipt of notification. Client shall pay Bums and Roe for all Services perforiried up to the effective date of termination, plus all reasonable costs associated with the orderly close-out of the Services unless Bums and Roe is ten-ninated for a default under the terms of this Agreement, at which point Client shall pay Bums and Roe for all Services perforn-ied up to the effective date of termination. Article IX - Warranty Bums and Roe warrants that it shall perform its Services in accordance with the same Professional Service Agreement Page 2 of 9 12/18/2008 Burns and Roe Enterprises, Inc. degree of skill and care ordinarily used by members of the engineering profession, practicing under the same conditions, at the same time and locality of the project, and that the Work will be free from errors or defects. If any of Bums and Roe's Services or Work do not conforin to such standards, Bums and Roe's sole liability, in respect thereof, shall be limited to re -performing such nonconfon-ning Services, or correcting the Work at no additional cost to Client. It is understood that time is of the essence as to the commencement of re -performing Services or correcting the Work and any such rework/corrections shall be perfornied in an expedited manner so as not to impact the project as a whole. Should Bums and Roe delay the re -performance of the Work beyond what is deemed reasonable by the Client, the Client shall notify Bums and Roe in writing, If Bums and Roe fails to commence re-perfom-iance within five (5) business days of receipt of this notice, then Client may subcontract the re-perforined Work at Bums and Roe's expense. All claims of nonconforming Sei vices must be specified in writing and received by Bums and Roe no later than one (1) year after Completion of the applicable assignment. If any Work is modified by Bums and Roe after Completion, or if any Work is corrected, repaired, replaced and/or re-perfornied by Bums and Roe during the primary Warranty Period, the warranty under this Article shall apply to such Work for a period of twelve (12) months from the date of such modification, correction, repair, replacement or re - performance. However, in no event shall the total Warranty Period extend beyond twenty four (24) months after Completion. THIS WARRANTY IS THE ONLY WARRANTY OFFERED BY BURNS AND ROE, AND IS EXPRESSLY OFFERED IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER WARRANTY EXPRESS OR IMPLIED, AGAINST DEFECTS, LATENT OR OTHERWISE. Article X - Changes Client shall have the right to make changes, within the general scope of this Agreement, in the Services to be performed or their sequence, schedule, or duration. Changes in the Services may also result from changes in the project, changes in vendor inforination, suspension or other delays not caused by Bums and Roe, actions or omissions of contractors, regulatory authorities, including but not limited to the California Energy Commission, or other governmental agencies, court decisions, legislation and other events beyond the control of Bums and Roe as defined in Article XII . If any such change involves an increase or decrease in the scope of Services under this Agreement or the cost thereof, or requires that Services previously accomplished be redone, or affects the time required for the perforniance of any part of the Services, Bums and Roe shall so notify Client, in writing, within ten (10) business days and if the change is deemed to be a material change to the Bums and Roe scope of work, Bums and Roe shall be entitled to an equitable adjustment to the price, schedule of performance or both or to any other affected provisions of this Agreement. Bun -is and Roe shall not proceed with any change unless Bums and Roe has clearly defined the full impact(s) of the change to the Client, and the Client has provided written authorization to proceed. Professional Service Agreement Page 3 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article X11 - Compliance With Laws Bums and Roe and Client shall comply with the requirements of applicable laws, regulations and standards in effect as of the Effective Date of this Agreement. Changes to these requirements after the Effective Date of this Agreement may be the basis for modifications to Client's responsibilities, or to Bums and Roe's scope of services, time of performance or compensation. Bums and Roe must comply with all CEC / CBO requirements as part of the base scope of services. Article X11 - Events Beyond the Control of Burns and Roe Bums and Roe shall not be responsible for any delay or failure in performance of the Services or for any delay or deficiency in any project for which it provides Services, if and to the extent that such delay, failure or deficiency is beyond the control of Bums and Roe and which Bums and Roe could not have reasonably foreseen and caused by such events as: acts of God, fire, flood, explosion, strikes, sabotage acts of the public enemy, civil insurrection, riot, acts of terrorism, court orders, injunctions, changes in applicable laws, acts of any nation, , contractors, subcontractors, suppliers, agents of Client and labor disputes, work stoppages or slowdowns, freight embargoes, unusually severe weather, equipment failure, or any other cause or event beyond the control of Bums and Roe. Article X111 - Cost Estimates Bums and Roe has no control over the cost of labor, materials or equipment or any contractor's method of detern-fining prices or other competitive bidding or market conditions. Any of Bums and Roe's cost estimates prepared under this Agreement for the construction, equipment, materials or supplies provided by others, are made solely on the basis of Bums and Roe's experience and information furnished to it and represent its best judgment as a consulting professional familiar with the construction industry, but Bums and Roe cannot and does not guarantee that actual costs will not vary from Bums and Roe's cost estimate. Article XIV - Ownership of Documents All technical materials, including documents, drawings, prints, calculations, models, electronic data, etc., prepared specifically for Client in connection with the Services of Bums and Roe hereunder shall become the property of Client and shall be turned over, upon written request, to Client upon completion of the Services and final payment therefore. In the event drawings and specifications are prepared in Computerized Assisted Drafting and Design (CADD) form for Client due to the potential that inforn-iation set forth on computer disks and/or magnetic tapes can be modified by Client, unintentionally or otherwise, Bums and Roe reserves the right to remove all indicia of its ownership and/or involvement from each electronic display. For documentation purposes, the original CADD disk will be retained by Bums and Roe. Bums and Roe will also retain one reproducible copy of all materials as instruments of service and shall have the unrestricted right to use such documents. Client agrees that all documents furnished to it by Bums and Roe will be used solely in connection with the particular purpose for which such documents were prepared or furnished. Client assumes full responsibility for any Professional Service Agreement Page 4 of 9 12/18/2008 Burns and Roe Enterprises, Inc. unauthorized use of any such materials and hereby indemnifies and holds Bums and Roe ham-iless from all claims, damages, losses or expenses, including without limitation, counsel fees and expenses and all costs of investigating and defending against claims resulting therefrom. All other materials prepared or used by Bums and Roe in connection with the Services generally, but not specifically prepared for Client, shall remain the sole property of Bums and Roe and shall, if deemed appropriate by Bums and Roe, be designated as proprietary to Bums and Roe. Article XV - Client's Responsibilities Client shall throughout the performance of this Agreement cooperate with Bums and Roe Client shall perform its own responsibilities, obligations and services, including: (i) making timely payments; (h) providing Bums and Roe with access to jobsites, necessary documents and drawings; (iii) providing timely review and approval of Bums and Roe's submissions, so as not to delay Bums and Roe's perforinance of its obligations under this Agreement, Article XVI - Information Furnished by Client Bums and Roe shall have the right to rely upon the accuracy, currentness and sufficiency of all inforination, data, materials and services furnished by Client or any of its contractors, vendors, consultants, employees or agents. Article XVII - Construction Management / Field Consulting Engineering Services In the event construction management services or field consulting engineering assignments are included as part of Bums and Roe's scope of Services, it is expressly understood that Bums and Roe's sole responsibility, acting as agent of Client in the performance of the construction management or field consulting assignment responsibilities hereunder in connection with the work of construction contractors, will be to evaluate, for the sole benefit of Client, the construction contractors' work to deterinine technical compliance with the contract documents. Accordingly, Bums and Roe will not be responsible for the construction contractors' means, methods, techniques, sequences or procedures of construction, or their safety precautions and programs nor for any failure to perform the work in full accordance with their contract documents. Furthermore, any inspection, review, supervision, direction, observation or comment made by Bums and Roe shall be as re -presentative of and on sole behalf of Client. Article XVIII - Entire Agreement This Agreement, including all its Attachments, constitutes the entire Agreement between the Parties. It supersedes all prior contemporaneous corim-lunications, representations or agreements, whether oral or written, with respect to the subject matter hereof and has been induced by no representation, promises or agreements other than those expressed herein. Client is in no way relying upon any representations beyond those made in this Agreement In the event Client authorizes the Services by issuance of a purchase order, any pre-printed terms contained therein shall be void and of no effect. Professional Service Agreement Page 5 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XIX - No Third Party Beneficiary This Agreement and all rights hereunder are intended for the sole benefit of the parties hereto and shall not imply or create any rights on the part of, or obligations to, any other entity not a party to this Agreement. Article XX - Limitation of Liability Bums and Roe, including any of its employees, agents, consultants contractors or vendors, shall not be liable under this Agreement to Client, any of its agents, contractors, vendors or third parties, whether in contract, tort or otherwise, for the payment of any special, indirect, consequential or similar damages. Notwithstanding anything contained in this Agreement to the contrary, Burns and Roe's aggregate liability for any and all claims arising out of this Agreement, or out of any goods or services furnished under this Agreement, whether based in contract, negligence, strict liability, agency, warranty, trespass, indemnity or any other theory of liability including, pollution, environmental damage, occupational disease and toxic torts, shall be limited to one hundred percent (100%) of the total contract value, as amended. Unless specified to the contrary within this Agreement, all liability of Bums and Roe to Client, arising out of or connected with the subject matter of this Agreement, shall terminate and cease no later than the expiration of the warranties provided by Bums and Roe. Article XXI - Dispute Resolution In the event a dispute arises between Client and Bun -is and Roe regarding any matter hereunder, each Party agrees to refer the matter to a senior executive of its respective corporation. Said executives shall meet, and attempt to negotiate a good faith resolution of the dispute. Should the executives be unable to obtain a resolution within thirty (30) days after commencement of negotiation, either Party may then, by notice to the other, submit the dispute to JAMS for resolution under its rules then in effect. In no event shall the arbitrator(s) have jurisdiction to consider (i) claims for consequential damages or damages beyond the limitations of liability contained in this Agreement or (ii) any challenge to the limitation of liability contained in this Agreement. The decision of the arbitrator(s) shall be final and binding upon the parties without the right of appeal to the courts. The prevailing Party, shall be entitled to reimbursement of its expenses, including reasonable attorney's fees. Pending final resolution of any dispute, Client and Bums and Roe shall continue to fulfill their respective obligations hereunder. Article XXII - Assignment This Agreement may not be assigned or otherwise transferred by either Party in whole or in part without the express prior written consent of the other Party, which consent shall not unreasonably be withheld. This consent requirement shall not apply in the event either Party shall change its corporate name or merge with another corporation. This Agreement shall benefit and be binding upon the successors and assigns of the Parties hereto. Professional Service Agreement Page 6 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXIII - Governing Law This Agreement shall be governed by, and construed in, accordance with the laws of the State of California, without regard to principles of conflicts of laws. Any lawsuit which may arise with respect to this Agreement shall be brought only in a court of competent jurisdiction located within Los Angeles County in the State of California. Article XXIV - Amendments and Modifications No amendments or modifications of this Agreement shall be valid unless evidenced in writing and signed by duly authorized representatives of both Parties. Article XXV - Notices Any notice or other communication, including change of address, or of the person to be notified, given under this Agreement to any Party shall be in writing and mailed by certified or registered mail, return receipt requested, to the address and to the attention of the representatives listed below: Burns and Roe: Client: Name: —Mr. Richard A. Edelman Title: Project Director Address: 800 Kinderkamack Road Oradell, NJ 07649 Name: Mr. Donal O'Callaghan Title: Director of Light & Power Address: 4305 S. Sante Fe Street Telephone No.: 201-986 4300 Telephone No.: Facsimile No. 201-986 4193 Facsimile No. e-mail Address redelman@roe.com e-mail Address: Vemon, CA 90058 323-826-3611 323-587-7596 docallaghanp.ei.vemon.ca.us Such notices shall be effective on the day received at the addresses specified above. Either Pal ty by like notice, may designate in writing, another address or office to which notices shall be given pursuant to this Agreement. Article XXVI - No Waiver The failure of either Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be construed as a waiver or deprive that Party of the right to insist upon strict adherence to that term. or any other term of this Agreement. Any waiver must be in writing and signed by the Party making the waiver. Article XXVII - Survival and Severability All express representations, warranties, indemnifications, and limits of liability included in this Agreement will survive its completion or ten-nination for any reason. If any provision of this Agreement shall be held invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. The remaining provisions shall remain in full force and effect, as if the unenforceable provision had been deleted. Professional Service Agreement Page 7 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXVIII - Definitions "Completion" is defined as the date on which Bums and Roe's Services are complete with no outstanding issues or deliverables. (Continued on Page 9 of 9) Professional Service Agreement Page 8 of 9 12/18/2008 Burns and Roe Enterprises, Inc. The parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the parties that this Agreement shall become operative when executed. CLIENT: City of Vernon Leonis C. Malburg, Mayor APPROVED AS TO FORM: By: Jeff A. Harrison, City Attorney Date: Attest: **afty Giron, City Clerk Manuela. BURNS AND ROE ENTERPRISES, INC.: Debtor in Possesssion Attest: 41* By: 'v " , By Albert M. Ferrer Vice President, Power Consulting Date: Richard A. Edelman Project Director Professional Service Agreement Page 9 of 9 12/18/2008 Burns and Roe Enterprises, Inc. EXHIBIT A EXHIBIT A TASK ORDER NO. TO PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT DATED BETWEEN. BURNS AND ROE ENTERPRISES, INC. AND THE CITY OF VERNON, CA. Date of Task Order: Scope of Task Order: Bums and Roe Estimated Man-hours: Bums and Roe Estimated Cost: Bums and Roe Schedule: Authorized by: Signature Name Title Burns and Roe Enterprises, Inc. Accepted by: Signature OMIT$ - Title Exhibit B Page I of 1 12/18/2008 EXHIBIT B EXHIBIT B BURNS AND ROE ENTERPRISES, INC. 2008 HOURLY RATES Hourly Rate Division Manager / Principal 191.00 Dept. Manager/Senior Prej. Mgr. / Chief Engr / Senior Consultant 164.00 Project Manager / Assistant Chief Engineer 160.00 Project Engineer/Senior Principal Engineer 154.00 Startup Manager (Field) (1) 11315. 0 0 Construction Manager (Field) (1) 135.00 Senior Site Engineer (Field) (1) 124.00 Site Engineer/Constr-uctlon Supv. (Field) (1) 112.00 Engineering Specialist — Geotechnical, Stress Analysis 132.00 Principal Discipline Engineer 11 142.00 Principal Discipline Engineer 1 126.00 Senior Discipline Engineer 11 115.00 Senior Discipline Engineer 1 109.00 Discipline Engineer 97.00 Manager, Planning and Scheduling 141.00 Cost Estimator 115.00 Procurement/Buyer 126.00 Senior Planning & Scheduling 130.00 Planning & Scheduling 109.00 Project Controls 97.00 Senior Financial Analyst 112.00 Plant Design Supervisor 115.00 CADD Designer 109.00 CADD Drafter 75.00 Administrative Assistant 62.00 Secretary / Word Processing 52.00 Notes: 1. Field office rates apply for assignments of longer than 3 months. Expenses • A 10% fee will be added to Subcontractor costs to cover handling and administration. • A surcharge of $2.25/hour of engineering and design labor will be applied as a Computer Aided Engineering (CAE) charge. • A surcharge of $2.15/hour for all home office labor will be applied for reproductions and communi cations. • Rates subject to annual adjustment and escalation. Exhibit B Page I of 1 12/18/2008 EXHIBIT C EXHIBIT C Professional Service Amement - Insurance Requirements Bums and Roe 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. The insurance coverage as listed herein, shall be properly endorsed to include those contractual obligations which may be identified further within this Agreement and, with the exception of Workers' Compensation and Professional Liability, shall be endorsed to provide City and Client all the rights and privileges of an additional insured. Bums and Roe shall cause its insurers to issue Certificates of Insurance evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. Bums and Roe shall ensure its Subcontractor (s), if any, maintain those insurance requirements as specified in this Exhibit C and such insurance shall be endorsed to provide City and Client all the rights and privileges of an additional insured. Bums and Roe and its Subcontractor (s), if any, shall maintain in effect the following minimum insurance coverages: A. Workers' Compensation within the statutory limits and, if necessary, Longshoremen and Harbor Workers and Jones Act, including occupational illness or disease coverage in accordance with the laws of the nation, state, territory, or province exercising jurisdiction over the Employees. Workers' Compensation and Employer's Liability Insurance shall have a minimum limit of $ 1,000,000 per occurrence. 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 limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. 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. Professional Liability Insurance with limits of $10,000,000. Such evidence of insurance can either be through the primary insurance coverages or through an excess liability policy. The policy can be written on a claims made basis provided any excess Professional Liability insurance policy conditions are as broad as those required in the primary insurance. - End of Exhibit C - Exhibit C Page I of 1 12/18/2008 E ri I 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 4, 2009 Burns and Roe Enterprises, Inc. Attn: Richard A. Edelman, Project Director 800 Kinderkamack Road Oradell, NJ 07649 Re: Services Task Agreement Dear Mr. Edelman: The insurance requirements have been met. Transmitted herewith is a fully executed agreement, as referenced above, approved by City Council on February 23, 2009, through Resolution No. 9864. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan at 323/583-8811 ext. 834. Very truly yours, Ne -yv Gil n City Clerk NG: dj c: D. O'Callaghan Purchasing Department Resolution No. 9864 Agreement File No. 09-032 Eo,-cfusivefy industriaf PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT BY AND BETWEEN BURNS AND ROE ENTERPRISES, INC., AND THE CITY OF VERNON This Professional Engineering Services Task Agreement ("this Agreement"), effective as of 2/23/2009� ("Effective Date"), is madeby andbetween The City of Vemon("Client"), a California chartered municipality_with offices located at 4305 S. Santa Fe Avenue, Vernon, CA 90058 and Bums and Roe Enterprises, Inc. (Debtor in Possession) ("Bums and Roe"), a New Jersey corporation with offices located at 800 Kinderkamack Road, Oradell, NJ 07649. WITNESSETH WHEREAS, Client desires to engage Bums and Roe to provide engineering, design, construction monitoring and related consulting services on a task basis upon the ternis and conditions hereinafter set forth, and Bums and Roe is prepared to perfon-n such work upon such terms and conditions; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: Article I - Term of Agreement This Agreement shall be effective as of the date executed, and continue to be in effect for a period of forty-eight (48) months, unless otherwise earlier terminated. Article 11 - Scope of Work Bums and Roe will perform the Services (the "Services") as may be requested by the Client in connection with power and energy projects, which will be identified in individual Task Orders to be issued by the Client. The Client will issue to Bums and Roe written Task Order assignments describing the project, the scope and schedule of services to be famished and other material considerations, including budgetary limitations, if any. A sample Task Order to be used by the Client to approve and authorize Bums and Roe to proceed with the work is contained in Exhibit A. Article III - Compensation As compensation for the Services rendered hereunder, Bums and Roe will be compensated as set forth in the individual Task Orders in accordance with the hourly rates set forth in Exhibit B hereto plus approved out-of-pocket expenses. Professional Service Agreement Page 1 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article IV - Payment Bums and Roe will submit invoices covering monthly periods for the work performed and expenses incurred. Payment shall be due within thirty (30) days after receipt of the invoice in a format acceptable to Client. Late payments shall bear interest at the rate of 1 1/2% per month from said due date. In the event Client takes exception to any invoiced item, Client shall short -pay the invoices, deducting the excepted amount (s) from the invoice total, and pay the balance. Client shall promptly notify Bums and Roe, in writing, setting forth the reasons for the excep�tion. Article V - Relationship of Parties Bums and Roe, and anyone it may engage to perform any part of the Work hereunder are independent contractors, and not employees or agents of Client. Article VI - Mutual Indemnity To the fullest extent permitted by law, Bums and Roe agrees to indemnify, defend and hold harmless Client,,its officers, agents and employees, against all third party claims against Client for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of Bums and Roe, its officers, agents or employees, in the execution or performance of this Agreement. To the fullest extent permitted by law, Client agrees to indemnify, defend and hold harmless Bums and Roe, its officers, agents and employees, against all third party claims against Bums and Roe for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of the Client, its officers, agents or employees, in the execution or performance of this Agreement. Said agreement by each Party to indemnify the other, and its officers, agents and employees shall continue in full force and effect until the expiration of one (1) year after Completion of the Work.. Article Vil - Insurance As a minimum, Bums and Roe will maintain Workers' Compensation Insurance as required by law and Comprehensive General and Automobile Liability Insurance with combined bodily injury and property damage limits in accordance with Exhibit C. Article VIII - Termination Either Party may terminate this Agreement upon written notification to the other party, such termination to become effective upon receipt of notification. Client shall pay Bums and Roe for all Services performed up to the effective date of termination, plus all reasonable costs associated with the orderly close-out of the Services unless Bums and Roe is tenninated for a default under the terms of this Agreement, at which point Client shall pay Bums and Roe for all Services perfom-ied up to the effective date of termination. Article IX - Warranty Bums and Roe warrants that it shall perform its Services in accordance with the same Professional Service Agreement Page 2 of 9 12/18/2008 Burns and Roe Enterprises, Inc. degree of skill and care ordinarily used by members of the engineering profession, practicing under the same conditions, at the same time and locality of the project, and that the Work will be free from errors or defects. If any of Bums and Roe's Services or Work do not conform to such standards, Bums and Roe's sole liability, in respect thereof, shall be limited to re -performing such nonconforming Services, or correcting the Work at no additional cost to Client. It is understood that time is of the essence as to the commencement of re -performing Services or correcting the Work and any such rework/corrections shall be perforn-led in an expedited manner so as not to impact the project as a whole. Should Bums and Roe delay the re -performance of the Work beyond what is deemed reasonable by the Client, the Client shall notify Bums and Roe in writing, If Bums and Roe fails to corrimence re-perforniance within five (5) business days of receipt of this notice, then Client may subcontract the re -performed Work at Bums and Roe's expense. All claims of nonconforming Services must be specified in writing and received by Bums and Roe no later than one (1) year after Completion of the applicable assignment. If any Work is modified by Bums and Roe after Completion, or if any Work is corrected, repaired, replaced and/or re -performed by Bums and Roe during the primary Warranty Period, the warranty under this Article shall apply to such Work for a period of twelve (12) months from the date of such modification, correction, repair, replacement or re - performance. However, in no event shall the total Warranty Period extend beyond twenty four (24) months after Completion. THIS WARRANTY IS THE ONLY WARRANTY OFFERED BY BURNS AND ROE, AND IS EXPRESSLY OFFERED IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER WARRANTY EXPRESS OR IMPLIED, AGAINST DEFECTS, LATENT OR OTHERWISE. Article X - Changes Client shall have the right to make changes, within the general scope of this Agreement, in the Services to be performed or their sequence, schedule, or duration. Changes in the Services may also result from changes in the project, ehanges in vendor inforination, suspension or other delays not caused by Bums and Roe, actions or omissions of contractors, regulatory authorities, including but not limited to the California Energy Commission, or other governmental agencies, court decisions, legislation and other events beyond the control of Bums and Roe as defined in Article XII . If any such change involves an increase or decrease in the scope of Services under this Agreement or the cost thereof, or requires that Services previously accomplished be redone, or affects the time required for the performance of any part of the Services, Bums and Roe shall so notify Client, in writing, within ten (10) business days and if the change is deemed to be a material change to the Bums and Roe scope of work, Bums and Roe shall be entitled to an equitable adjustment to the price, schedule of performance or both or to any other affected provisions of this Agreement. Bun -is and Roe shall not proceed with any change unless Bums and Roe has clearly defined the full impact(s) of the change to the Client, and the Client has provided written authorization to proceed. Professional Service Agreement Page 3 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article X1 - Compliance With Laws Bums and Roe and Client shall comply with the requirements of applicable laws, regulations and standards in effect as of the Effective Date of this Agreement. Changes to these requirements after the Effective Date of this Agreement may be the basis for modifications to Client's responsibilities, or to Bums and Roe's scope of services, time of perforniance or compensation. Bums and Roe must comply with all CEC / CBO requirements as part of the base scope of services. Article X11 - Events Beyond the Control of Burns and Roe Bums and Roe shall not be responsible for any delay or failure in performance of the Services or for any delay or deficiency in any project for which it provides Services, if and to the extent that such delay, failure or deficiency is beyond the control of Bums and Roe and which Bums and Roe could not have reasonably foreseen and caused by such events as: acts of God, fire, flood, explosion, strikes, sabotage acts of the public enemy, civil insurrection, riot, acts of terrorism, court orders, injunctions, changes in applicable laws, acts of any nation, , contractors, subcontractors, suppliers, agents of Client and labor disputes, work stoppages or slowdowns, freight embargoes, unusually severe weather, equipment failure, or any other cause or event beyond the control of Bums and Roe. Article Xill - Cost Estimates Bums and Roe has no control over the cost of labor, materials or equipment or any contractor's method of determining prices or other competitive bidding or market conditions. Any of Bums and Roe's cost estimates prepared under this Agreement for the construction, equipment, materials or supplies provided by others, are made solely on the basis of Bums and Roe's experience and information furnished to it and represent its best judgment as a consulting professional familiar with the construction industry, but Bums and Roe cannot and does not guarantee that actual costs will not vary from Bums and Roe's cost estimate. Article XIV - Ownership of Documents All technical materials, including documents, drawings, prints, calculations, models, electronic data, etc., prepared specifically for Client in conriection with the Services of Bums and Roe hereunder shall become the property of Client and shall be turned over, upon written request, to Client upon completion of the Services and final payment therefore. In the event drawings and specifications are prepared in Computerized Assisted Drafting and Design (CADD) forin for Client due to the potential that inforn-iation set forth on computer disks and/or magnetic tapes can be modified by Client, unintentionally or otherwise, Bums and Roe reserves the right to remove all indicia of its ownership and/or involvement from each electronic display. For documentation purposes, the original CADD disk will be retained by Bums and Roe. Bums and Roe will also retain one reproducible copy of all materials as instruments of service and shall have the unrestricted right to use such documents. Client agrees that all documents furnished to it by Bums and Roe will be used solely in connection with the particular purpose for which such documents were prepared or furnished. Client assumes full responsibility for any Professional Service Agreement Page 4 of 9 12/18/2008 Burns and Roe Enterprises, Inc. unauthorized use of any such materials and hereby indemnifies and holds Bums and Roe harinless from all claims, damages, losses or expenses, including without limitation, counsel fees and expenses and all costs of investigating and defending against claims resulting therefrom. All other materials prepared or used by Bums and Roe in connection with the Services generally, but not specifically prepared for Client, shall remain the sole property of Bums and Roe and shall, if deemed appropriate by Bums and Roe, be designated as proprietary to Bums and Roe. Article XV - Client's Responsibilities Client shall throughout the perfomiance of this Agreement cooperate with Bums and Roe. Client shall perform its own responsibilities, obligations and services, including: (i) making timely payments; (ii) providing Bums and Roe with access to jobsites, necessary documents and drawings; (iii) providing timely review and approval of Bums and Roe's submissions, so as not to delay Bums and Roe's perforn'lance of its obligations under this Agreement. Article XVI - Information Furnished by Client Bums and Roe shall have the right to rely upon the accuracy, currentness and sufficiency of all information, data, materials and services furnished by Client or any of its contractors, vendors, consultants, employees or agents. Article XVII - Construction Management / Field Consulting Engineering Services In the event construction management services or field consulting engineering assignments are included as part of Bums and Roe's scope of Services, it is expressly understood that Bums and Roe's sole responsibility, acting as agent of Client in the performance of the construction management or field consulting assignment responsibilities hereunder in connection with the work of construction contractors, will be to evaluate, for the sole benefit of Client, the construction contractors' work to determine technical compliance with the contract documents. Accordingly, Bums and Roe will not be responsible for the construction contractors' means, methods, techniques, sequences or procedures of construction, or their safety precautions and programs nor for any failure to perform the work in full accordance with their contract documents. Furthermore, any inspection, review, supervision, direction, observation or comment made by Bums and Roe shall be as representative of and on sole behalf of Client. Article XVIII - Entire Agreement This Agreement, including all its Attachments, constitutes the entire Agreement between the Parties. It supersedes all prior contemporaneous communications, representations or agreements, whether oral or written, with respect to the subject matter hereof and has been induced by no representation, promises, or agreements other than those expressed herein. Client is in no way relying upon any representations beyond those made in this Agreement. In the event Client authorizes the Services by issuance of a purchase order, any pre-printed terms contained therein shall be void and of no effect. Professional Service Agreement Page 5 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XIX - No Third Party Beneficiary This Agreement and all rights hereunder are intended for the sole benefit of the parties hereto and shall not imply or create any rights on the part of, or obligations to, any other entity not a party to this Agreement. Article XX - Limitation of Liability Bums and Roe, including any of its employees, agents, consultants contractors or vendors, shall not be liable under this Agreement to Client, any of its agents, contractors, vendors or third parties, whether in contract, tort or otherwise, for the payment of any special, indirect, consequential or similar damages. Notwithstanding anything contained in this Agreement to the contrary, Bums and Roe's aggregate liability for any and all claims arising out of this Agreement, or out of any goods or services famished under this Agreement, whether based in contract, negligence, strict liability, agency, warranty, trespass, indemnity or any other theory of liability including, pollution, environmental damage, occupational disease and toxic torts, shall be limited to one hundred percent (100%) of the total contract value, as amended. Unless specified to the contrary within this Agreement, all liability of Bums and Roe to Client, arising out of or connected with the subject matter of this Agreement, shall terminate and, cease no later than the expiration of the warranties provided by Bun -is and Roe. Article XXII - Dispute Resolution In the event a dispute arises between Client and Bums and Roe regarding any matter hereunder, each Party agrees to refer the matter to a senior executive of its respective corporation. Said executives shall meet, and attempt to negotiate a good faith resolution of the dispute. Should the executives be unable to obtain a resolution within thirty (30) days after commencement of negotiation, either Party may then, by notice to the other, submit the dispute to JAMS for resolution under its rules then in effect. In no event shall the arbitrator(s) have jurisdiction to consider (i) claims for consequential damages or damages beyond the limitations of liability contained in this Agreement or (ii) any challenge to the limitation of liability contained in this Agreement. The decision of the arbitrator(s) shall be final and binding upon the parties without the right of appeal to the courts. The prevailing Party, shall be entitled to reimbursement of its expenses, including reasonable attorney's fees. Pending final resolution of any dispute, Client and Bums and Roe shall continue to fulfill their respective obligations hereunder. Article XXII - Assignment This Agreement may not be assigned or otherwise transferred by either Party in whole or in part without the express prior written consent of the other Party, which consent shall not unreasonably be withheld. This consent requirement shall not apply in the event either Party shall change its corporate name or merge with another corporation. This Agreement shall benefit and be binding upon the successors and assigns of the Par -ties hereto. Professional Service Agreement Page 6 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXIII - Governing Law This Agreement shall be governed by, and construed in accordance with the laws of the State of California, without regard to principles of conflicts of laws. Any lawsuit which may arise with respect to this Agreement shall be brought only in a court of competent jurisdiction located within Los Angeles County in the State of California. Article XXIV - Amendments and Modifications No amendments or modifications of this Agreement shall be valid unless evidenced in writing and signed by duly authorized representatives of both Parties. Article XXV - Notices Any notice or other communication, including change of address, or of the person to be notified, given under this Agreement to any Party shall be in writing and mailed by certified or registered mail, return receipt requested, to the address and to the attention of the representatives listed below: Burns and Roe: Client: Name: —Mr. Richard A. Edelman Title: Project Director Address: 800 Kinderkamack Road Oradell, NJ 07649 Name: Mr. Donal O'Callaghan Title: Director of Light & Power Address: 4305 S. Sante Fe Street Telephone No.: 201-986 4300 Telephone No.: Facsimile No. 201-986 4193 Facsimile No. e-mail Address redelmanproe.com e-mail Address Vernon, CA 90058 323-826-3611 323-587-7596 docallaghanp,ci.vemon.ca.us Such notices shall be effective on the day received at the addresses specified above. Either Party by like notice, may designate in writing, another address or office to which notices shall be given pursuant to this Agreement. Article XXVI - No Waiver The failure of either Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be construed as a waiver or deprive that Party of the right to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing and signed by the Party making the waiver. Article XXVII - Survival and Severability All express representations, warranties, indemnifications, and limits of liability included in this Agreement will survive its completion or tem-iination for any reason. If any provision of this Agreement shall be held invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. The remaining provisions shall remain in full force and effect, as if the unenforceable provision had been deleted. Professional Service Agreement Page 7 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXVIII - Definitions "Completion" is defined as the date on which Bums and Roe's Services are complete with no outstanding issues or deliverables. (Continued on Page 9 of 9) Professional Service Agreement Page 8 of 9 12/18/2008 Burns and Roe Enterprises, Inc. The parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the parties that this Agreement shall become operative when executed. CLIENT: City of Vernon U�ois C. Malburg, **yor APPROVED AS TO FORM: By: _ Jeff A. Date: 21lY10 City Attorney Attest: tway Giron, City Clerk Manuela. BURNS AND ROE ENTERPRISES, INC.: Debtor in Possesssion Attest: By: /7z� By: Albert M. Ferrer Vice President, Power Consulting Date: _ZZ, 00�� Richard A. Edelman Project Director M-- Professional Service Agreement Page 9 of 9 12/18/2008 Burns and Roe Enterprises, Inc. 1061-201 EXHIBIT A' TASK ORDER NO. TO PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT DATED BETWEEN. BURNS AND ROE ENTERPRISES, INC. AND THE CITY OF VERNON, CA. Date of Task Order: Scope of Task Order: Bums and Roe Estimated Man-hours: Bums and Roe Estimated Cost: Bums and Roe Schedule: Authorized by: Signature Name Title Burns and Roe Enterprises, Inc. Accepted by: Signature Name Title Exhibit B Page I of 1 12/18/2008 EXHIBIT B EXHIBIT B BURNS AND ROE ENTERPRISES, INC. 2008 HOURLY RATES Hourly Rate Division Manager / Principal 191.00 Dept. Manager/Senior Proj. Mgr. / Chief Engr / Senior Consultant 164.00 Project Manager / Assistant Chief Engineer 160.00 Project Engineer/Senior Principal Engineer 154.00 Startup Manager (Field) (1) 135.00 Construction Manager (Field) (1) 135.00 Senior Site Engineer (Field) (1) 124.00 Site Engineer/Construction Supv. (Field) (1) 112.00 Engineering Specialist — Geotechnical, Stress Analysis 132.00 Principal Discipline Engineer 11 142.00 Principal Discipline Engineer 1 126.00 Senior Discipline Engineer 11 115.00 Senior Discipline Engineer 1 109.00 Discipline Engineer 97.00 Manager, Planning and Scheduling 141.00 Cost Estimator 115.00 Procurement/Buyer 126.00 Senior Planning & Scheduling 130.00 Planning & Scheduling 109.00 Project Controls 97.00 Senior Financial Analyst 112.00 Plant Design Supervisor 115.00 CADD Designer 109.00 CADD Drafter 75.00 Administrative Assistant 62.00 Secretary / Word Processing 52.00 Notes: 1. Field office rates apply for assignments of longer than 3 months. Expenses • A 10% fee will be added to Subcontractor costs to cover handling and administration. • A surcharge of $2.25/hour of engineering and design labor will be applied as a Computer Aided Engineering (CAE) charge. • A surcharge of $2.15/hour for all home office labor will be applied for reproductions and comiriuni cations. • Rates subject to annual adjustment and escalation. Exbibit B Page I of 1 12/18/2008 EXHIBIT C EXHIBIT C Professional Service Allreement - Insurance Requirements Bums and Roe 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. The insurance coverage as listed herein, shall be properly endorsed to include those contractual obligations which may be identified further within this Agreement and, with the exception of Workers' Compensation and Professional Liability, shall be endorsed to provide City and Client all the rights and privileges of an additional insured. Bums and Roe shall cause its insurers to issue Certificates of Insurance evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. Bums and Roe shall ensure its Subcontractor (s), if any, maintain those insurance requirements as specified in this Exhibit C and such insurance shall be endorsed to provide City and Client all the rights and privileges of an additional insure-d. Bums and Roe and its Subcontractor (s), if any, shall maintain in effect the following minimum insurance coverages: A. Workers' Compensation within the statutory limits and, if necessary, Longshoremen and Harbor Workers and Jones Act, including occupational illness or disease coverage in accordance with the laws of the nation, state, terTitory, or province exercising jurisdiction over the Employees. Workers' Compensation and Employer's Liability Insurance shall have a minimum limit of $ 1,000,000 per occurrence. 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 limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. 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. Professional Liability Insurance with limits of $10,000,000. Such evidence of insurance can either be through the primary insurance coverages or through an excess liability policy. The policy can be written on a claims made basis provided any excess Professional Liability insurance policy conditions are as broad as those required in the primary insurance. - End of Exhibit C - Exhibit C Page 1 of 1 12/18/2008 RISKMANk=MBNT UNTER-DEPARTMENT MXM09AMtM DATE: February 19, 2049 TO: Nelly Giron City Clerk FROM: Willard G. )�amaguchi Risk Manager V�6' RE: Burns and Roe Enterpri'ses, Inc. Please be advised that the above referenced has acceptable insurance coverage on file. Attached for your retention are insurance certificates and related policies, declarations and/or endorsements for the above -referenced. insured that' were issued by: # Hartford Fire Insurance company (General Liabilityand Automobile) o American Home Assurance Company (Workers, Compensation) * Lexington insurance Company (Professional Liability) This concerns insurance coverage for the Professional Engineering Services Ta,,gk Agreement tobe requested by the City which will be identified in individual task orders, in connection with power and energy projects, WY/ab C: Judy. Lehr MARSH CERTIFICATE OF INSURANCE CERTIFICATE NUMBER NYC-002428862-17 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT AXEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. PRODUCER MARSH USA Inc. 44 WHIPPANY ROAD PO BOX 1966 FAX: (203) 229-M3 E-MAIL: MORRISTOWN.CERTREQUEST@MARSH.COM COMPANIES AFFORDING COVERAGE MORRISTOWN, NJ 07962-1966 COMPANY J06970—GAWX-08-Gg A Hartford Fire Insurance Co COMPANY INWRED BURNS AND ROE ENTERPRISES. INC. ATTN: DOROTHY MAY B American Horne Assurance Co 800 KINDERKAMACK ROAD COMPANY ORADELL, NJ 07649 C Liberty Mutual Insurance Company COMPANY COVERAGES This certificate supersedes and replaces any previously Issued certificate for the policy period noted below. 4 THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED, N07WTHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLANS. co TYPE OF INSURANCE LTR I POUCYNUM13ER Poucygrmcme POLICY1104RATION UL4UTS DATEIMWDDfYY) DATE (MIAIDOM) GENERAL LIAMLITY GENERAL AGGREGATE 2,000,000 A X COMMERCIAL GENERAL LIABILITY r--I ICLAIKSMADE JA JOCCUR 13ECSOA4709 05MI/08 05/Q1/09 PRO AG _ .�DUCTS-COMPIOP G_ PERSONAL & ADV INJURY $ — 2.000,OW $ 1,0W,000 $ 1,000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE -X SJ R- VALUE SID 000 FIRE DAMAGE IAny om rffe)_ $ 500,000 MED EXP lAny one Perm) $ 10,000 A AUTOMOBILE X LIABILITY ANY AUTO 13 UEN TG2680 05/01/08 05101/09 COMBINED SINGLE LIMIT $ 1,000,000 BODILY INJURY (Per pemon) $ ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per=ldent) $ HIRM AUTOS NON -OWNED AUTOS PROPERTY DAMAGE $ GARA136 LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN AUTO ONLY: ANY AUTO EACH ACCIDENT $ —1 AGGREGATE $ c EXCESS LIABILITY TH2-631-506772-018 05101108 05/01/09 EAC OCCURRENCE $ 1,000,000 AGGREGATE $ UMBRELLA FORM OTHER THAN UMBRELLA FORM a B WORKERS COMPEN"YlON AND EMPLOYERS' LIABILITY WC-9844477 (AOS) WC-9M"78 (CA) 07/01/08 07101/08 05101109 05101/09 WC STATU x I TORY UMI% EL EACH ACCIDENT $ 1,000,OOD THE PROPRIETORJ F—V-1 PARTNERSI'EXECUTIVE INCL OFFICERS ARE: N EXCL EL DISEASEPOLICY UMIT 1$ 11.0mom EL DISEASE -EACH EMPLOYEE1 $ 11.000.0m UTIMILK DESCRIPTION OF OPF.RATIONSM=ATIONSMHICLESISPECIAL ITEMS RE: PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT, THE CITY OF VERNON IS INCLUDED AS AN ADDITIONAL INSURED ON GENERAL LIABILITY AND AUTOMOBILE LIABILITY POLICIES. CERTIFICATE.HOLDEW CANCELLAMON SMXJLD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE UARATWN DArE n4MOF. THE INSURER AFFORDINO COVERAGE WILL ENDEAVOR TO MAIL -M DAYS vmrrreN NOTICE TO THE THE CITY OF VERNON ATTN: ANA BARCIA COMFY -ATE HOLM NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE SIO.U. IMPOSE NO 08UGATM OR 4305S . SANTA FIE AVENUE L"11MOIF ANY KIND UPON TKE INSURER AFF4oRDNa commm. rrSAOENT3 OR REPRESENTAT11JES. OR THE VERNON,CA 90058 ISSUER OFTIUSCERTIFICATE- AMOMM REPREWITATIVE ofMomhUSAInp. BY. Mary Radaszewski MM11(3102).: VAUD AS OF:07102/08 -ACORD. CERTIFICATE OF LIABILITY INSURANCE �PRODUCER DATE IMMIDWffM 1 04/28/2009 (201)26Z-1200 FAX (201)262-7820 Fenner & Esler Agency, Inc. 467 Kinderkamack Road P. 0. Box 60 Oradell, NJ 07649-0060 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAJC # INSURED Burns & Roe Group, Inc. Burns & Roe Enterprises, Inc. Attn: Dorothy May 800 Kinderkamack Road Oradell, NJ 07649 INSUREIRA; Lexington Insurance Company INSURER 8: INSURER C: INSURER a. INSURER E: PnUCOACIO-52 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR I TO AGO ,,.A TYPE OF INSURANCE POLICY NUMBER POLICY E;M N& LIMITS GENEIRALLMILITY COM MERCIAL GENERAL LIABILITY CLAIMS MADE C] OCCUR EACH OCCURRENCE $ DAMAGE TO RENTED M�) - NMD EXP (Arry one person) S PERSONAL & AOV INJURY $ GENERAL AGGREGATE 5 LGr-En AGGREGATE LIMIT APPLIES PER: L POUCY r-j PRI F-1 LOC i jECT PRODUCTS. COMPIOPAGG S— AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTO$ SCHEDULED AUTOS HIRED AUTOS NOWOWNED AUTOS COMBINED SINGLE LIMIT (Ea acdclard) BODILY INJURY (Par Person) BODILY INJURY (Per aomer.1) PROPERTYDAMAGE (Per acoldent) $ LGARAGE UA131LITY HANYAUTO AUTO ONLY, EA ACCIDENT S OTHER THAN EAACC AUTO ONLY: AGG 3 S EXCESSIUMBIRELLA LLABILITY OCCUR CLAIMS MADE DEDUCTIBLE RETENTION S EACH OCCURRENCE 3 AGGREGATE s S WORKERS COMPENSATION AND EMPLOYERS'LIABILIrY ANY PROPIRIETORIPARTNERIEXECUTIVE OFFICERIMEMBER EXCLUDED? Mdesorbe taWer IAL PROVISIONS below WC STATU- OTH. I TORY I IMITS1 I FR E.L. EACH ACCIDE14T III E.L. DISEASE - EA EMn2A S E.L. DISEASE - POLICY LIMIT I S A OTH roVelssional Liability laims Made Form 0859333 04/30/2008 04/30/2009 Per Claim/Aggregate 10,000,000 vEsMPTION OF OPERATIONS I LOCATIONSI VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS The City of Vernon Risk Management Department Attn: Anthony Baldere 4305 S. Santa Fe Avenue Vernon, CA 90058 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE To THE CERTLqCATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY AUTHORIM REPIRESENTATAM *0 Timothv Esler/3EAN ACORD 25 (2001108) (DACORD CORPORATION 1988 Best's Rating Center - Company Information for Hartford Fire Insurance Company Page I of I Vi— RatirW: Elimcki-Stueth InuLCf9ft %man Advancod,%=h OmervvebCenten: Sewone a T . .1 Hartford Fire Insurance Company L%ftrilthispage (a nv.%tiv of Hiinloj This fMM9 IS 0459nod to *s1b A14,1kalf:02231 =1112r21F!r;1N1V.' 0043113750 COMWOS h opmWW. 0 5�� 4�� to Adftu: One Hartford Plaza Phone: 860-647-5000 ftW thail W4" ON-gal-Onis Hartford, CT 081166 Fax: 8M6474343 to polic)ft web: YMY.fthaq[Kd&W �Wyraaw I Best's Ratings Shogured Finance HOW . to . oe . I Rated Strong = Rating: A+ jSuporl Carbd an Analyst Affiliation Code: p th Ratings VWtftnftjtjm Issuer Credit Ratings Wxj;sffWlwm or) (Pooled) Lano-Torm: aa- Outlook: Negative Financial Sim Category: XV ($2 Billion or greater) Action: Affirmed Outlook; Negattvo Date: Decombor 23. 2008 Action: Affirmad Effective Date: December 23, 2008 * Denotes Under Review Rating& See rating definitions. Reports and News Visit out NowaRoom for the latest Me fOrthis company and Its AN, Best Group. AMB-Crod[Lftmd---IasummtaoiasslanaUMnablidoM (fonedykno" as easrs CorripanyRepon) - Includes Sears Financial Strength Rating and rationale along with comprehensive anaVWI commentery, detailed business overview and key financlall data. Roport Revision Date: 12123/2008 (represents ft kurit sigriftant &.srwy Historical Reports are available In AMU Credit Report - InsuranceRigifeAgo Bost"s Executive Summary Reports (Financial Overview) - available in three versions. these presentation style reports feature balance shoot, Income statement key financial performance losts IWuding profitability. liquidity and reserve analysis. Data Status: 2008 Sears Statement File - PIC, US. Contains date compiled as of 1/26/2009 (ouaoty Cross Chedted). • SJOWD-C"p;iny - five years of financial data specifically on this company. • QQmpadsQn - sido-by-side financial analysis of this company with a poor group of up to five other companies you selea s; CDigaizab - evaluate this company's financials against a pow group composite. Report displays both the average and total Composite of your selected poor group. r--- AMD Cmdlt R provides three years of key financial data presented with coloinfulclitartis nd tables. Each report also features the latest Beare Ratings, Rating Rationale and an excerpt tam our Business Review common". Palo Status: Contains data compiled as of 112(U2000 (ovoiuy Crou ChedLed). Rgsj�Lft-Rattn"uldo Pros prilation Repoll - Includes Bests Financial Strength Rating and financial data as provided In Sears Key Rating Guide products. Data Status: 2007 Financial Data (Qualay Cross Cheded). Financial and Analytical Products sr PrOMWLCallatittly Cell1aL-?-wm1.vmDjW-A Re Besfs Key Rating GuWa - P/C- US A Canada Best's Statement File - P/C. U Sears Statement File - Global Best's Insurance Reports - PIC- US & Canadi Nara State Line - PIC-.US 8est'sinsurartc, Expense Exhlbh(IEE)- PIC, U Bosrs Schedule F (Ritinsurance) - P/C. U RalliELScImitule D (Mun Lot Bonda) - US Besmstwu mWSWs)--us Posts Sch duW-P-(ELafond-61v.IQ --V.S, Bases Schedule P (I= Resen2sl - PIC, US Sears Schedule D CustomerServi IPMdUCISuppo I Mamber Center I Cv=cUafa I CAM= About AM Res I fi L18-M-321 PrivaGY PPY I Sewrity I Terms of Use I Lanni ?! Ucensin Copyrtght 0 2009 A,M. Bast Company, =Inc. Af rt@hts reserved. AM. Best WorldwAdo Headquarters. Ambest Road. . Now Jensoy. 08856, U.S A http://www3.ambest.com/ratings/FullProfile.asp?BI=O&AM13Num--223 I &AItSrc=... 2/19/2009 I Best's Rating Center - Company Information for Lexington Insurance Company Page I of I C-fcr -- 0�� Vle- Ratings: Financial Strength lasuaLCtadft Sotudlftts AghMaWLSAArch 01W Web Centm: Set Ord Methodology — yRwwch Print (his page a Dofkdkm P — Lexington Insurance Company i Basis Ratings: (a Me m�wwa cat A " � , awal Graud) Trwal-q a A.M.941tt.0235a NAICOASUT FEINC 2311494H coffW-36 Rele 60iftman "CODO.V abuy to d Products mdma: 100 Summer street Pftne: 017-WO-1100 Mat OW GrQWV ftbg~4 A-M-V-117 Boston, MA 02110 Web: M_ftatgQM to pokyf~% y a Regional y Risk Sest's Ratings sedFhM_ Financial Strength Ratings yiawpannitient Issuer Credit Ratings Witw-DtIfialflant )0d Rating: A lExcellarkt) Long -Term: a t an Ainalyst AIRRIation Code p (Pooled) Outlook: Negative Financial Size Category: XV ($2 Billion or greater) Action: Affirmed Oudook: Nogativo Date: November 10, 2008 Acton: Affirmed Effective Data: November 10. 2000 Donates Under Review Ratings. See rating derinitions. mgm9r� Reports and News �BIESFJW-�j VM our NeWSRoorn for 11116 latest naMA"fess-peteases for this company and its A.M. Best Group. AMS-CmdMvpod (knnerty kno- as 80srs Carroafty Rwn) - Wud0s .tp Basra Financial Strength Rating and rationale along with comprehensive artalytical commentary, detailed Y"'A business overview and key financial data. Y Report Revision Date: 11110/200B (reprazents ft unt solowt dow). Historical Reports are available In AMB Credit Report - r--*t- Bear$ Executive Summary Reports (Financial Overview) - available In three versions, these presentation ,V-W- style reports feature balance sheet. Income Statement key financial performance tests Including prolitability, liquidity and reserve analysis. 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Financial and Analytical Products ftsQP-awdYLCasuaJbf Center - Prom uruLData.&AepoiU S-&Cp naft Sears Statement Fi a - PIC, US Sest!q 5AWMAftLEW---QQba1 Sears InstrEance Reports - PIC, US & Canada Best's State Line - PLC. US Ses[ Insurance r=xpQnse Exhibit (lEE) - PIC, U Bears Schedule F 1RelnsumacAL-2&,M5 Basra ScheduIftSLjMjunWjpatBWds) - U Belits Sch dule D (Common Stocks) - US Besra Q=rale Changes and Rellreme Is-P/ JMCN Basra &hedufa P (Loss Resmesl - PIC, US Sears Schedule D - tUrld - PIC & UH, U Customer service I 2rQdugLW=jj I Member Cent r I ConlaCt-Infa I QWAQ MqutAM-Ret I SUMPP I Efivat:O-ofty I S-Qw* I Ilumu-IM I LeQajA-IJW$iQg Copyright 0 2000 A. M. Bost Company. Inc. AU rights reserved. A M. Best WwWwtdo Headquarters. Ambesi Road. Cftvvick, Now Jamey. 088W, U. SA, h"://www3.ambest.com/ratings/FullProfile.asp?BI=O&AMBNum=2350&AItSrc=... 2/19/2009 V"t,�Olxl (19�64 L=� � i U L APPI3,0VED Al-:9, 2 '3 '09 Cl-"? :`— -C�F�' LIGHT & POWER DEPARTMENT Donal O'Callaghan, Director of Light & Power January 26, 2009 Mr. Richard Edelman Burns and Roe Enterprises, Inc. 800 Kinderkamack Road Oradell, New Jersey 07649 Dear Mr. Edelman: 0 2 2009 , f L i 4-6 (f 7�1 I 1C)q Subject: Professional Engineering Services Task Agreement By and Between Burns and Roe Enterprises, Inc., and the City of Vernon Enclosed herewith for your signature is the Professional Engineering Services Task Agreement By and Between Burns and Roe Enterprises, Inc., and the City of Vernon Please execute and return the agreement to the attention of the undersigned. Once this Agreement is properly executed and returned, it will be signed by the City of Vernon and a fully executed Agreement will be returned to you for your records. Thanking you in advance for your attention to this matter. Sincerely, CITY OF VERNON Light & Power Department al 0 allaghan Director, Light & Power DO:rmt Enclosure cc: Project Control Document Control 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 Fax (323) 826-1425 Ercfusivefy Industriaf PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT BY AND BETWEEN BURNS AND ROE ENTERPRISES, INC., AND THE CITY OF VERNON This Professional Engineering Services Task Agreement ("this Agreement"), effective as of ("Effective Date"), is made by and between The City of Vemon("Client"), a California chartered municipality -with offices located at 4305 S. Santa Fe Avenue, Vernon, CA 90058 and Bums and Roe Enterprises, Inc. (Debtor in Possession) ("Bums and Roe"), a New Jersey corporation with offices located at 800 Kinderkamack Road, Oradell, NJ 07649. WITNESSETH WHEREAS, Client desires to engage Bums and Roe to provide engineering, design, construction monitoring and related consulting services on a task basis upon the terms and conditions hereinafter set forth, and Bums and Roe is prepared to perform such work upon such terms and conditions; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: Article I - Term of Agreement This Agreement shall be effective as of the date executed, and continue to be in effect for a period of forty-eight (48) months, unless otherwise earlier terminated. Article 11 - Scope of Work Bums and Roe will perform the Services (the "Services") as may be requested by the Client in connection with power and energy projects, which will be identified in individual Task Orders to be issued by the Client. The Client will issue to Bums and Roe written Task Order assignments describing the project, the scope and schedule of services to be furnished and other material considerations, including budgetary limitations, if any. A sample Task Order to be used by the Client to approve and authorize Bums and Roe to proceed with the work is contained in Exhibit A. Article III - Compensation As compensation for the Services rendered hereunder, Bums and Roe will be compensated as set forth in the individual Task Orders in accordance with the hourly rates set forth in Exhibit B hereto plus approved out-of-pocket expenses. Professional Service Agreement Page 1 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article IV - Payment Bums and Roe will submit invoices covering monthly periods for the work performed and expenses incurred. Payment shall be due within thirty (30) days after receipt of the invoice in a fori-nat acceptable to Client. Late payments shall bear interest at the rate of 1 112% per month from said due date. In the event Client takes exception to any invoiced item, Client shall short -pay the invoices, deducting the excepted amount (s) from the invoice total, and pay the balance. Client shall promptly notify Bums and Roe, in writing, setting forth the reasons for the exception. Article V - Relationship of Parties Bums and Roe, and anyone it may engage to perform any part of the Work hereunder are independent contractors, and not employees or agents of Client. Article VI - Mutual Indemnity To the fullest extent permitted by law, Bums and Roe agrees to indemnify, defend and hold harmless Client,.its officers, agents and employees, against all third party claims against Client for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of Bums and Roe, its officers, agents or employees, in the execution or performance of this Agreement. To the fullest extent permitted by law, Client agrees to inderrinify, defend and hold harmless Bums and Roe, its officers, agents and employees, against all third party claims against Bums and Roe for personal injury or wrongful death or property damage arising out of any error, omission or negligent act of the Client, its officers, agents or employees, in the execution or performance of this Agreement. Said agreement by each Party to indemnify the other, and its officers, agents and employees shall continue in full force and effect until the expiration of one (1) year after Completion of the Work.. Article VII - Insurance As a minimum, Bums and Roe will maintain Workers' Compensation Insurance as required by law and Comprehensive General and Automobile Liability Insurance with conibined bodily injury and property damage limits in accordance with Exhibit C. Article Vill - Termination Either Party may terminate this Agreement upon written notification to the other party, such termination to become effective upon receipt of notification. Client shall pay Bums and Roe for all Services performed up to the effective date of termination, plus all reasonable costs associated with the orderly close-out of the Services unless Bums and Roe is terminated for a default under the terms of this Agreement, at which point Client shall pay Bums and Roe for all Services performed up to the effective date of termination. Article IX - Warranty Bums and Roe warrants that it shall perforin its Services in accordance with the same Professional Service Agreement Page 2 of 9 12/18/2008 Burns and Roe Enterprises, Inc. degree of skill and care ordinarily used by members of the engineering profession, practicing under the same conditions, at the same time and locality of the project, and that the Work will be free from errors or defects. If any of Bums and Roe's Services or Work do not conform to such standards, Bums and Roe's sole liability, in respect thereof, shall be limited to re -performing such nonconforming Services, or correcting the Work at no additional cost to Client. It is understood that time is of the essence as to the commencement of re -performing Services or correcting,the Work and any such rework/corrections shall be performed in an expedited manner so as not to impact the project as a whole. Should Bums and Roe delay the re -performance of the Work beyond what is deemed reasonable by the Client, the Client shall notify Bums and Roe in writing. If Bums and Roe fails to commence re -performance within five (5) business days of receipt of this notice, then Client may subcontract the re -performed Work at Bums and Roe's expense. All claims of nonconforming Services must be specified in writing and received by Bums and Roe no later than one (1) year after Completion of the applicable assignment. If any Work is modified by Bums and Roe after Completion, or if any Work is corrected, repaired, replaced and/or re -performed by Bums and Roe during the primary Warranty Period, the warranty under this Article shall apply to such Work for a period of twelve (12) months from the date of such modification, correction, repair, replacement or re - performance. However, in no event shall the total Warranty Period extend beyond twenty four (24) months after Completion. THIS WARRANTY IS THE ONLY WARRANTY OFFERED BY BURNS AND ROE, AND IS EXPRESSLY OFFERED IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER WARRANTY EXPRESS OR IMPLIED, AGAINST DEFECTS, LATENT OR OTHERWISE. Article X - Changes Client shall have the right to make changes, within the general scope of this Agreement, in the Services to be performed or their sequence, schedule, or duration. Changes in the Services may also result from changes in the project, changes in vendor information, suspension or other delays not caused by Bums and Roe, actions or omissions of contractors, regulatory authorities, including but not limited to the California Energy Commission, or other governmental agencies, court decisions, legislation and other events beyond the control of Bums and Roe as defined in Article XII . If any such change involves an increase or decrease in the scope of Services under this Agreement or the cost thereof, or requires that Services previously accomplished be redone, or affects the time required for the perforrriance of any part of the Services, Bums and Roe shall so notify Client, in writing, within ten (10) business days and if the change is deemed to be a material change to the Burns and Roe scope of work, Bums and Roe shall be entitled to an equitable adjustment to the price, schedule of performance or both or to any other affected provisions of this Agreement. Bums and Roe shall not proceed with any change unless Bums and Roe has clearly defined the full impact(s) of the change to the Client, and the Client has provided written authorization to proceed. Professional Service Agreement Page 3 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XI - Compliance With Laws Bums and Roe and Client shall comply with the requirements of applicable laws, regulations and standards in effect as of the Effective Date of this Agreement. Changes to these requirements after the Effective Date of this Agreement may be the basis for modifications to Client's responsibilities, or to Burns and Roe's scope of services, time of performance or compensation. Bums and Roe must comply with all CEC / CBO requirements as part of the base scope of services. Article XII - Events Beyond the Control of Burns and Roe Bums and Roe shall not be responsible for any delay or failure in performance of the Services or for any delay or deficiency in any project for which it provides Services, if and to the extent that such delay, failure or deficiency is beyond the control of Bums and Roe and which Bums and Roe could not have reasonably foreseen and caused by such events as: acts of God, fire, flood, explosion, strikes, sabotage acts of the public enemy, civil insurrection, riot, acts of terrorism, court orders, injunctions, changes in applicable laws, acts of any nation, , contractors, subcontractors, suppliers, agents of Client and labor disputes, work stoppages or slowdowns, freight embargoes, unusually severe weather, equipment failure, or any other cause or event beyond the control of Bums and Roe. Article X111 - Cost Estimates Bums and Roe has no control over the cost of labor, materials or equipment or any contractor's method of determining prices or other competitive bidding or market conditions. Any of Bums and Roe's cost estimates prepared under this Agreement for the construction, equipment, materials or supplies provided by others, are made solely on the basis of Bums and Roe's experience and information fumished to it and represent its best judgment as a consulting professional familiar with the construction industry, but Bums and Roe cannot and does not guarantee that actual costs will not vary from Bums and Roe's cost estimate. Article XIV - Ownership of Documents All technical materials, including documents, drawings, prints, calculations, models, electronic data, etc., prepared specifically for Client in connection with the Services of Bums and Roe hereunder shall become the property of Client and shall be turned over, upon written request, to Client upon completion of the Services and final payment therefore. In the event drawings and specifications are prepared in Computerized Assisted Drafting and Design (CADD) form for Client due to the potential that information set forth on computer disks and/or magnetic tapes can be modified by Client, unintentionally or otherwise, Bums and Roe reserves the right to remove all indicia of its ownership and/or involvement from each electronic display. For documentation purposes, the original CADD disk will be retained by Bums and Roe. Bums and Roe will also retain one reproducible copy of all materials as instruments of service and shall have the unrestricted right to use such documents. Client agrees that all documents fumished to it by Bums and Roe will be used solely in connection with the particular purpose for which such documents were prepared or famished. Client assumes full responsibility for any Professional Service Agreement Page 4 of 9 12/18/2008 Burns and Roe Enterprises, Inc. unauthorized use of any such materials and hereby indemnifies and holds Bums and Roe harmless from all claims, damages, losses or expenses, including without limitation, counsel fees and expenses and all costs of investigating and defending against claims resulting therefrom. All other materials prepared or used by Bums and Roe in connection with the Services generally, but not specifically prepared for Client, shall remain the sole property of Bums and Roe and shall, if deemed appropriate by Bums and Roe, be designated as proprietary to Bums and Roe. Article XV - Client's Responsibilities Client shall throughout the perfoririance of this Agreement cooperate with Bums and Roe Client shall perform its own responsibilities, obligations and services, including: (i) making timely payments; (ii) providing Bums and Roe with access to jobsites, necessary documents and drawings; (iii) providing timely review and approval of Bums and Roe's submissions, so as not to delay Bums and Roe's performance of its obligations under this Agreement. Article XVI - Information Furnished by Client Bums and Roe shall have the right to rely upon the accuracy, currentness and sufficiency of all information, data, materials and services furnished by Client or any of its contractors, vendors, consultants, employees or agents. Article XVII - Construction Management / Field Consulting Engineering Services In the event construction management services or field consulting engineering assignments are included as part of Bums and Roe's scope of Services, it is expressly understood that Bums and Roe's sole responsibility, acting as agent of Client in the performance of the construction management or field consulting assignment responsibilities hereunder in connection with the work of construction contractors, will be to evaluate, for the sole benefit of Client, the construction contractors' work to determine technical compliance with the contract documents. Accordingly, Bums and Roe will not be responsible for the construction contractors' means, methods, techniques, sequences or procedures of construction, or their safety precautions and programs nor for any failure to perforin the work in full accordance with their contract documents. Furthermore, any inspection, review, supervision, direction, observation or comment made by Bums and Roe shall be as representative of and on sole behalf of Client. Article XVIII - Entire Agreement This Agreement, including all its Attachments, constitutes the entire Agreement between the Parties. It supersedes all prior contemporaneous communications, representations or agreements, whether oral or written, with respect to the subject matter hereof and has been induced by no representation, promises or agreements other than those expressed herein. Client is in no way relying upon any representations beyond those made in this Agreement. In the event Client authorizes the Services by issuance of a purchase order, any pre-printed terms contained therein shall be void and of no effect. Professional Service Agreement Page 5 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XIX - No Third Party Beneficiary This Agreement and all rights hereunder are intended for the sole benefit of the parties hereto and shall not imply or create any rights on the part of, or obligations to, any other entity not a party to this Agreement. Article XX - Limitation of Liability Bums and Roe, including any of its employees, agents, consultants contractors or vendors, shall not be liable under this Agreement to Client, any of its agents, contractors, vendors or third parties, whether in contract, tort or otherwise, for the payment of any special, indirect, consequential or similar damages. Notwithstanding anything contained in this Agreement to the contrary, Bums and Roe's aggregate liability for any and all claims arising out of this Agreement, or out of any goods or services furnished under this Agreement, whether based in contract, negligence, strict liability, agency, warranty, trespass, indemnity or any other theory of liability including, pollution, environmental damage, occupational disease and toxic torts, shall be limited to one hundred percent (100%) of the total contract value, as amended. Unless specified to the contrary within this Agreement, all liability of Bums and Roe to Client, arising out of or connected with the subject matter of this Agreement, shall terminate and. cease no later than the expiration of the warranties provided by Bums and Roe. Article XXI - Dispute Resolution In the event a dispute arises between Client and Bums and Roe regarding any matter here -under, each Party agrees to refer the matter to a senior executive of its respective corporation. Said executives shall meet, and attempt to negotiate a good faith resolution of the dispute. Should the executives be unable to obtain a resolution within thirty (30) days after commencement of negotiation, either Party may then, by notice to the other, submit the dispute to JAMS for resolution under its rules then in effect. In no event shall the arbitrator(s) have jurisdiction to consider (i) claims for consequential damages or damages beyond the limitations of liability contained in this Agreement or (ii) any challenge to the limitation of liability contained in this Agreement. The decision of the arbitrator(s) shall be final and binding upon the parties without the right of appeal to the courts. The prevailing Party, shall be entitled to reimbursement of its expenses, including reasonable attorney's fees. Pending final resolution of any dispute, Client and Bums and Roe shall continue to fulfill their respective obligations hereunder. Article XXII - Assignment This Agreement may not be assigned or otherwise transferred by either Party in whole or in part without the express prior written consent of the other Party, which consent shall not unreasonably be withheld. This consent requirement shall not apply in the event either Party shall change its corporate name or merge with another corporation. This Agreement shall benefit and be binding upon the successors and assigns of the Parties hereto. Professional Service Agreement Page 6 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXIII - Governing Law This Agreement shall be governed by, and construed in accordance with the laws of the State of California, without regard to principles of conflicts of laws. Any lawsuit which may arise with respect to this Agreement shall be brought only in a court of competent jurisdiction located within Los Angeles County in the State of California. Article XXIV - Amendments and Modifications No amendments or modifications of this Agreement shall be valid unless evidenced in writing and signed by duly authorized representatives of both Parties. Article XXV - Notices Any notice or other communication, including change of address, or of the person to be notified, given under this Agreement to any Party shall be in writing and mailed by certified or registered mail, return receipt requested, to the address and to the attention of the representatives listed below: Burns and Roe: Name: Title: Address Telephone No Facsimile No. Mr. Richard A. Edelman —Project Director 800 Kinderkamack Road Oradell, NJ 07649 201-986 4300 201-986 4193 Client: Name: Title: Address: Telephone No. Facsimile No. Mr. Donal O'Callaghan Director of Light & Power 4305 S. Sante Fe Street Vernon, CA 90058 323-826-3611 323-587-7596 e-mail Address —redelman@roe.com e-mail Address: docallaghan(a),ci.vemon.ca.us Such notices shall be effective on the day received at the addresses specified above. Either Party by like notice, may designate in writing, another address or office to which notices shall be given pursuant to this Agreement. Article XXVI - No Waiver The failure of either Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be construed as a waiver or deprive that Party of the right to insist upon strict adherence to that tenn or any other term of this Agreement. Any waiver must be in writing and signed by the Party making the waiver. Article XXVII - Survival and Severability All express representations, warranties, inderrinifications, and limits of liability included in this Agreement will survive its completion or termination for any reason. If any provision of this Agreement shall be held invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. The remaining provisions shall remain in full force and effect, as if the unenforceable provision had been deleted. Professional Service Agreement Page 7 of 9 12/18/2008 Burns and Roe Enterprises, Inc. Article XXV111 - Definitions "Completion" is defined as the date on which Bums and Roe's Services are complete with no outstanding issues or deliverables. (Continued on Page 9 of 9) Professional Service Agreement Page 8 of 9 12/18/2008 Burns and Roe Enterprises, Inc. The parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the parties that this Agreement shall become operative when executed. CLIENT: City of Vernon Leonis C. Malburg, Mayor APPROVED AS TO FORM: By: Jeff A. Harrison, City Attorney Date: Attest: Nelly Giron, City Clerk BURNS AND ROE ENTERPRISES, INC.: Debtor in Possesssion Attest: By: By Albert M. Ferrer Vice President, Power Consulting Date: &t44J a - fk&.r� Richard A. Edelman Project Director Professional Service Agreement Page 9 of 9 Burns and Roe Enterprises, Inc. 12/18/2008 EXHIBIT A' TASK ORDER NO. TO PROFESSIONAL ENGINEERING SERVICES TASK AGREEMENT . DATED BETWEEN. BURNS AND ROE ENTERPRISES, INC. AND THE CITY OF VERNON, CA. Date of Task Order: Scope of Task Order: Bums and Roe Estimated Man-hours: Bums and Roe Estimated Cost: Bums and Roe Schedule: Authorized by: Signature Name Title Burns and Roe Enterprises, Inc. Accepted by: Signature Name Title Exhibit B Page I of 1 12/18/2008 EXHIBIT B BURNS AND ROE ENTERPRISES, INC. 2008 HOURLY RATES Hourly Rate Division Manager / Principal 191.00 Dept. Manager/Senior Proj. Mgr. / Chief Engr / Senior Consultant 164.00 Project Manager / Assistant Chief Engineer 160.00 Project Engineer/Senior Principal Engineer 154.00 Startup Manager (Field) (1) 135.00 Construction Manager (Field) (1) 135.00 Senior Site Engineer (Field) (1) 124.00 Site Engineer/Construction Supv. (Field) (1) 112.00 Engineering Specialist — Geotechnical, Stress Analysis 132.00 Principal Discipline Engineer 11 142.00 Principal Discipline Engineer 1 126.00 Senior Discipline Engineer 11 115.00 Senior Discipline Engineer 1 109.00 Discipline Engineer 97.00 Manager, Planning and Scheduling 141.00 Cost Estimator 115.00 Procurement/Buyer 126.00 Senior Planning & Scheduling 130.00 Planning & Scheduling 109.00 Project Controls 97.00 Senior Financial Analyst 112.00 Plant Design Supervisor 115.00 CADD Designer 109.00 CADD Drafter 75.00 Administrative Assistant 62.00 Secretary / Word Processing 52.00 Notes: 1. Field office rates apply for assignments of longer than 3 months. Expenses • A 10% fee will be added to Subcontractor costs to cover handling and administration. * A surcharge of $2.25/hour of engineering and design labor will be applied as a Computer Aided Engineering (CAE) charge. * A surcharge of $2.15/hour for all home office labor will be applied for reproductions and communications. * Rates subject to annual adjustment and escalation. Exhibit B Page I of 1 12/18/2008 EXHIBIT C Professional Service Aareement - Insurance Requirements Bums and Roe 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. The insurance coverage as listed herein, shall be properly endorsed to include those contractual obligations which may be identified further within this Agreement and, with the exception of Workers' Compensation and Professional Liability, shall be endorsed to provide City and Client all the rights and privileges of an additional insured. Bums and Roe shall cause its insurers to issue Certificates of Insurance evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. Bums and Roe shall ensure its Subcontractor (s), if any, maintain those insurance requirements as specified in this Exhibit C and such insurance shall be endorsed to provide City and Client all the rights and privileges of an additional insured. Bums and Roe and its Subcontractor (s), if any, shall maintain in effect the following minimum insurance coverages: A. Workers' Compensation within the statutory limits and, if necessary, Longshoremen and Harbor Workers and Jones Act, including occupational illness or disease coverage in accordance with the laws of the nation, state, territory, or province exercising jurisdiction over the Employees. Workers' Compensation and Employer's Liability Insurance shall have a minimum limit of $1,000,000 per occurrence. B. Comprehensive General Liability Insurance, including, but not limited to, Contractual Liability, Products and Completed Operations Liability, Broad Fom-1 Property Damage and Bodily Injury Liability, and Explosion, Collapse and Underground Liability, with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. 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. Professional Liability Insurance with limits of $10,000,000. Such evidence of insurance can either be through the primary insurance coverages or through an excess liability policy. The policy can be written on a claims made basis provided any excess Professional Liability insurance policy conditions are as broad as those required in the primary insurance. - End of Exhibit C - Exhibit C Page I of 1 12/18/2008