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HomeMy WebLinkAbout6/4/2003 - STAFF REPORTS DATE: June 4, 2003 TO: City Council FROM: Executive Director-Airports CONVENTION CENTER PHASE II EXPANSION - PRE-PURCHASE OF MAJOR EQUIPMENT AND SUPPLY CHAIN MANAGEMENT SERVICES RECOMMENDATION. It is recommended that City Council approve a professional services agreement with Turner Logistics, LLC to provide Equipment Supply Chain Management Services for the Second Phase Convention Center expansion project for a fee of 11.5% of the actual cost of equipment purchases. SUMMARY: This action would hire Turner Logistics, LLC to manage the purchase, direct from manufacturers, of large equipment for the Convention Center expansion project. BACKGROUND: The Phase 2 Convention Center expansion project design effort has struggled to meet the minimum needs of the Center while staying within a fixed capital budget. At the completion of Schematic Design, the project was reported to be $4.2 million over budget. A Value Engineering exercise was conducted by the design team which brought the project back within budget. One of the items to reduce cost had nothing to do with the design, but rather the way in which the City procures the larger equipment. On this project, it is estimated that there is $2 million worth of large equipment. The normal chain of purchase of this equipment would be via the trade contractors in their bids. The trade contractors procure the equipment from suppliers,who in turn procure it from manufacturers. At each step of the procurement chain, the equipment is marked up. There are a few firms out there that purchase very large volumes of equipment for construction projects each year. Because of that volume purchasing, those contractors can purchase directly from the manufacturer and are able to avoid the distribution and trade contractor markups and receive a volume discount. Asummary of potential savings by buying direct is as follows: Savings Range Item From To Volume Discount (5%) (8%) Remove DistributorsNdholesalers (7%) (17%) Remove Trade Contractors 1( 0%1 L15M Total Potential Savings (money) (22%) (40%) Equipment Supply Chain Management Services June 4, 2003 - Page Two The direct purchase process can also provide for time savings during the construction process. Typical savings are as follows: Item Savings Range Bid period - direct to manufacturers 1 - 2 weeks Award based on in-place manufacturing agreements 2 - 4 weeks Shop drawings/submittal review 3 -4 weeks Preferential manufacturing slots 2 - 6 weeks Total Potential Savings (time) 8 - 16 weeks The items which can be purchased direct from the manufacturer,with the assistance Of a firm that has direct manufacturer access, are: carpet, chillers, cooling towers, air handling units, lightfixtures,switchgear,emergency generator and automatic transfer switches. Because of the City's long standing relationship with Turner Construction,who is one of those contracting firms that does hundreds of millions of dollars of direct purchasing,we are able to gain access to Turner Logistics, LLC. This sister company does all of Turner Construction's procurement and can provide similar services to the City. The normal fee for theservice is 10% to 15% of the purchase price. Staff has negotiated a fee of 11.5%for the Convention Center project. Taking the 11.5% fee from the potential savings range created by the direct purchase results in savings to the Convention Center of between 10.5% and 28.5%; Turner Logistics believes 10- 15% is a reasonable expectation. The selection of Turner Logistics to provide these services will provide an additional value added benefit. In the traditional bid process, the design specs often unavoidably or unintentionally favor a specific manufacturer of major equipment. With Turner's early involvement in pre-purchasing the major equipment, design criteria which would limit competition can be identified and corrected early enough se that the trade bid for the installation of the equipment can be structured to either specifically accommodate the pre-procured item or be profiled to accommodate multiple manufacturers. No other provider would be strategically situated to provide this value added service. It is also a service which cannot be duplicated by City staff if the City were to pre-purchase and assign the major equipment items with its own staff. Attached to this report are the Standard Agreement exhibits which clearly detail the work that is to be accomplished by Turner Logistics. Based on estimated equipment value of$2 million,the fee to Turner Logistics would be $230,000. It should be noted that should the City decide to abandon the project at any time up until actual purchase of the equipment (which will be timed to correspond with receipt of all the Trade Contractor bids on the project) then no fee is due. Equipment Supply Chain Management Services June 4, 2003 - Page Three Funds for this contract will be provided via the Bond Issue yet to be sold for the project. A Minute Order approving the agreement subject to final City Attorney review is attached for consideration. ALLEN F. SMOOT, AAE HAROLD E, GOOD, CPPO Executive Director-Airports Director of Procurement & Contracting APPROVE D�� r� i City Manager ATTACHMENTS- 1. Minute Order 2, Contract REVIEWED 6Y DEPT. OF FINANCE ,e 2A3 CITY OF PALM SPRINGS CONTRACT SERVICE AGREEMENT for CONVENTION CENTER PHASE II EXPANSION MAJOR EQUIPMENT PROCUREMENT & SUPPLY CHAIN MANAGEMENT THIS CONTRACT SERVICES AGREEMENT(herein "Agreement"), is made and entered into this day of , 20_, by and between the CITY OF PALM SPRINGS, a municipal corporation, (herein "City") and TURNER LOGISTICS, LLC, (herein "Contractor"). The term Contractor includes professionals performing in a consulting capacity. The parties hereto agree as follows. 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, which services may be referred to herein as the "services" or "work" hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 12 Contractor's Proposal. The Scope of Service shall include the Contractor's proposal or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement,the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 1.4 Licenses Permits Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary forthe Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees,assessments,taxes, penalties or interest levied,assessed or imposed against City hereunder. 1.5 FamiliaritV with Work. By executing this Contract, Contractor warrants that Contractor(a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has, or will, investigate the site and is or will be fully acquainted with the conditions there existing, prior to 3& commencement of services hereunder. Should the Contractor discover any latent or unknown conditions,which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer. 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages,to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. 1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other- 1-8 Additional Services. City shall have the right at any time during the performance of the services,without invalidating this Agreement,to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to five percent (5%) of the Contract Sum or $25,000; whichever is less, or in the time to perform of up to one hundred eighty (180) days may be approved by the Contract Officer. Any greater increases,taken either separately or cumulatively must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore. 1.9 Special Requirements. Additional terms and conditions of this Agreement, if any,which are made a part hereof are set forth in the"Special Requirements"attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "B" and any other provisions of this Agreement, the provisions in Exhibit "B" shall govern. 2.0 COMPENSATION 2A Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of Two Hundred Thirty Thousand Dollars ($230,000) or 11.5% of total purchase price of all equipment procured,whichever is greater, (herein"Contract Sum"), except as provided in Section I.S. The method of compensation may include(i)a lump sum payment upon completion, (ii) payment in accordance with the percentage of completion of the services, (iii) payment for time and materials based upon the Contractor's rates as specified in the Schedule of Compensation, but not exceeding the Contract Sum or (iv) such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense approved by the �5A� and no other expenses and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City;Contractorshall not be entitled to any additional compensation forattending said meetings. 2.2 Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation, in any month in which Contractor wishes to receive payment, no later than the first (1s') working day of such month, Contractor shall submit to the City in the form approved by the City's Director of Finance, an invoice for services rendered prior to the date of the invoice. Except as provided in Section 7.3, City shall pay Contractor for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s)established in the "Schedule of Performance" attached hereto as Exhibit "D", if any, and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Majeure. The time period(s)specified in the Schedule of Performance for performance of the services rendered pursuantto this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather,fires,earthquakes,floods, epidemics,quarantine restrictions, riots, strikes,freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractorshall within ten(10)days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain thefacts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement,however caused,Contractor's sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Section 7.8 of this Agreement,this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit "D"). 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith.- Turner Logistics, LLC 555 West 5th Street, Suite 3700 Los Angeles, CA 90013 Attn: Brian Arthur It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the foregoing principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the' Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor,its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated orencumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise,without the prior written approve IofCity- Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent(25%)of the present ownership and/or control of Contractor,taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. The City's policy is to encourage the awarding of subcontracts to persons or entities with offices located within the jurisdictional boundaries of the City of Palm Springs and, if none are available,to persons or entities with offices located in the Coachella Valley("Local Subcontractors"), Contractor hereby agrees to use good faith efforts to award subcontracts to Local Subcontractors, if Local Subcontractors are qualified to perform the work required. In requesting for the City to consent to a subcontract with a person or entity that is not a Local Subcontractor, the Contractor shall submit evidence to the City that such good faith efforts have been made or that no Local Subcontractors are qualified to perform the work. Said good faith efforts may be evidenced by placing advertisements inviting proposals or by sending requests for proposals to selected Local Subcontractors. The City may consider Contractor's efforts in determining whether it will consent to a particular subcontractor. Contractor shall keep evidence of such good faith efforts and copies of all contracts and subcontracts hereunder for the period specified in Section 6.2. - n W 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control overthe manner,mode or means by which Contractor,its agents or employees,perform the services required herein, except as otherwise set forth herein. City shall have no voicein the selection, discharge, supervision or control of Contractor's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractorof City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractorin its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. &0 INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. The Contractor shall procure and maintain,at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Commercial General Liability Insurance. A policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least $1,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations. The Commercial General Liability Policy shall name the City of Palm Springs as additional insured in accordance with standard ISO additional insured endorsement form CG2010(1185) or equivalent language. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in an amount which fully complies with the statutory requirements of the State of California and which includes $1,000,000 employer's liability. (c) Business Automobile Insurance. A policy of business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of $1,000,000 bodily and property damage. Said policy shall include coverage for owned, non- owned, leased and hired cars. (d) Additional Insurance. Additional limits and coverages, which may include professional liability insurance, will be specified in Exhibit "B", All of the above policies of insurance shall be primary insurance and issued by companies whose rating satisfies the requirements in Section 5.4 of this agreement. The insurer shall waive all rights of subrogation and contribution it may have againstthe City, its officers,employees and agents, and their respective insurers. In the event any of said policies of insurance are canceled, the Contractorshall, priortothe cancellation date,submit newevidence of insurance in conformancewith this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance,endorsements or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance, endorsements, or binders are approved by the City. The contractor agrees that the provisions of this Section 5.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or person for which the Contractor is otherwise responsible. W In the event the Contractor subcontracts any portion of the work in compliance with Section 4.3 of this Agreement the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same polices of insurance that the Contractor is required to maintain pursuant to this Section. 5.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and employees against, and will hold and save them, and each of them, harmless from any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein"claims or liabilities")that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, whether or not there is concurrent passive or active negligence on the part of the City, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or employees, who are directly responsible to the City, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers,agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees are made a party to any action or proceeding filed or prosecuted against Contractorfor such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees. 5.3 Performance Bond. Concurrently with execution of this Agreement,Contractor shall deliver to City a performance bond in the sum of the amount of this Agreement, in the form provided by the City, which secures the faithful performance of this Agreement, unless such requirement is waived by the Contract Officer- The bond shall contain the original,notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. 5.4 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best 's Key Rating Guide or in the Federal Register, unless such requirements are waived by the City Manager or designee of the City Manager due to unique circumstances. In the event the City Manager determines that the work or services to be performed under this Agreement create an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond �[�/ required by this Section 5 may be changed accordingly upon receipt of written notice from the City Manager or designee; provided that the Contractor shall have the right to appeal a determination of increased coverage by the City Manager to the City Council of City within ten (10) days of receipt of notice from the City Manager. 6.0 REPORTS AND RECORDS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services,the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed- 6-2 Records. Contractor shall keep, and require subcontractors to keep, such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required 6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement.Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractorwill be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all damages resulting therefrom. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City any documents or materials prepared by them,and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. 6A Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California,or any other appropriate court in such county. Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 01410 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party, in writing, of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten(10)days of service of such notice and completes the cure of such default within forty-five(45) days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate dangerto the health, safety and general welfare, such immediate action may be necessary. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's or the Contractor's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate Cityfor any losses, costs, liabilities,or damages suffered by City, and (ii) all amounts forwhich City may be liable to third parties, by reason of Contractor's acts or omissions in performing or failing to perform Contractor's obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. No delay or omission in the exercise of any right or remedy by a non- defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement,the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it,at the same or differenttimes, of any other rights or remedies forthe same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Liquidated Damages, Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of ($-0-)as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance(Exhibit"D"). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. 7.8 Termination Prior to Expiration Of Term, This Section shall govern any termination of this Agreement except as specifically provided in the following Section for termination Z A I I for cause. The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty(30)days written notice to Contractor, except that where termination is due to the fault of the Contractor,the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination,the Contractorshall be entitled to compensation only forthe reasonable value ofthework product actually produced hereunder. In the event of termination without cause pursuant to this Section,the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 7.9 Termination for Default of Contractor. If termination is due to the failure of the Contractorto fulfill its obligations under this Agreement,City may,aftercompliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.10 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement,the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8A Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or thefinancial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, Its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, 0/H creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractorshall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer,CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263, In the case of the Contractor, it should be addressed to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. 92 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Integration:Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpretthis Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that(i) such party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written below. By: City Manager ATTEST: (Check one: _Individual_ Partnership By: _ Corporation) City Clerk CONTRACTOR: APPROVED AS TO FORM: By: Signature (Notarized) By: City Attorney Print Name & Title By: Signature (Notarized) Corporations require two notarized signatures: One from each ofthefollowing: A Chairman of Board,President,orany Vice President:AND B.Secretary,Assistant Secretary,Treasurer, Assistant Treasurer, or Chief Financial Officer). Print Name &Title Mailing Address- CITY OF PALM SPRINGS, a municipal corporation EXHIBIT "A" SCOPE OF SERVICES Contractorshall provide procurement and equipment supply chain management services for the Palm Springs Convention Center Phase II Expansion Project. At a minimum, the contractor will provide said services forthe following items: Carpet, chillers, cooling towers, air handling units, light fixtures, switchgear, emergency generator and automatic transfer switches. Other items may be added by written consent of both parties to this Agreement. As an added benefit to the City, Contractor agrees to procure other large equipment items for the City for other non-related projects, at the same compensation rate, during the term of this Agreement. Contractor will develop and provide City with a comprehensive Procurement Management program for all new equipment specified for the project. City's procurement program will include three phases: Preconstruction; Bid/Award/Procure, and Supply Chain Management. During the Preconstruction Phase, Contractor will perform the following functions: • Developing the Initial Project Estimate Analyzing Alternate Systems • Determining Value Engineering Opportunities Updating and Managing the Project Estimate During the Bid/Award Procure Phase, Contractor will perform the following functions: Developing Equipment Scopes of Supply and Services • Refining the Equipment Purchase and Installation Process Issuing Bid Packages to Specified and Approved ManufacturersNendors • Aggregating Contractor's Volume to Assure the Best Equipment Value • Evaluating Manufacturer/Vendor Proposals on a Technical and Commercial Basis • Presenting Bid Evaluations to Owners, Architects and Engineers • Making Equipment Recommendations Drafting Purchase Orders for the City • Providing Detailed Equipment Lists and Specifications to the Construction Manager for Use in Installation Contracts During the Supply Chain Management Phase, Contractor will perform the following functions.- Managing the Submittal and Approval Process • Attending and Overseeing Factory Witness Testing and Inspections as Required • Expediting and Coordinating Deliveries of Equipment Troubleshooting Installation Issues Facilitating Startup, Testing and Commissioning • Facilitating Expedient Warrant Resolution and Coordination • Scheduling Owner Training Assembling and Distributing Operation and Maintenance Manuals • Delivering Warranty Statements from Manufacturers and Vendors 0A1 EXHIBIT"B" SPECIAL REQUIREMENTS 1. Section 3.4 Term is hereby modified to reflect a "thirty (30) months from the date hereof..." 2. Section 5.3 Performance Bond is hereby waived. EXHIBIT "C" SCHEDULE OF COMPENSATION Contractor's total compensation shall be based on eleven point five percent (11.5%) of the final purchase price of all equipment procured on behalf of the City by Contractor. For budgeting purposes, a budget of$2 million has been set for major equipment purchases on the Convention Center Phase II expansion project. The total fee due Contractorwould equal $230,000, which will be adjusted based on the actual purchase price of all equipment procured by Contractor. The actual payment schedule shall be as follows: Milestone of Fee Due Shop Drawing Completion 30% Equipment Delivery 60% Startup 10% Total 100% It is specifically acknowledged by Contractor that should this City elect to not proceed with the project for any reason up to the time of formal acquisition of the equipment by City, Contractor shall be due $0 for services rendered to that point in time. It is further acknowledged by Contractor that the 11.5% fee includes all reimbursables or other costs associated with the management of the purchases of large equipment for the project. �A-1�1 EXHIBIT "D" SCHEDULE OF PERFORMANCE Contractor shall provide services in a timely fashion so as to expedite and not delay the progress of the Convention Center Phase II expansion project. Specifically, the following dates shall apply: Item Completion Date Preconstruction Phase By formal plan check submittal of project Plans & Specifications Bid/Award/Procure Phase Bid By the date that Trade Bids are accepted by the City for the project- Award/Procure Within 45 days of City acceptance of pricing Supply Chain Management Phase To ensure timely installation by Trade Contractors through the Notice of Completion or the overall project MINUTE ORDER NO. APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH TURNER LOGISTICS, LLC FOR LARGE EQUIPMENT PROCUREMENT SUPPLY CHAIN MANAGEMENT ON THE CONVENTION CENTER PHASE II EXPANSION FOR A FEE OF 11.5% OF THE ACTUAL EQUIPMENT PURCHASE PRICE ACHIEVED SUBJECT TO FINAL AGREEMENT WORDING APPROVAL OF THE CITY ATTORNEY. I HEREBY CERTIFY that this Minute Order, approving a Professional Services Agreement with Turner Logistics, LLC for Large Equipment Procurement Supply Chain Management on the Convention Center Phase II Expansion fora fee of 11.5%ofthe actual equipment purchase price achieved subject to final agreement wording approval of the City Attorney was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 4" day of June 2003. PATRICIA A. SANDERS City Clerk