HomeMy WebLinkAboutExhibit B - Draft Sercurity Services Agreement (1)
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CONSULTANT SERVICES AGREEMENT
[Non-Design Professionals]
THIS AGREEMENT (the "Agreement") is made as of , 20XX by
and between the City of Diamond Bar, a municipal corporation ("City") and ___________,
a [Insert the type of entity of the Consultant, e.g., Inc., a California corporation; a
California general partnership; a California limited liability company; a sole
proprietor; etc.] ("Consultant").
1. Consultant's Services.
Subject to the terms and conditions set forth in this Agreement Consultant shall
provide to the reasonable satisfaction of the City the [Describe general type of services,
i.e., graphic design] services set forth in the attached Exhibit "A", which is incorporated
herein by this reference. As a material inducement to the City to enter into this
Agreement, Consultant represents and warrants that it has thoroughly investigated the
work and fully understands the difficulties and restrictions in performing the work.
Consultant represents that it is fully qualified to perform such consulting services by virtue
of its experience and the training, education and expertise of its principals and employees.
[Insert Name and Position] ____________(herein referred to as the “City’s
Project Manager”), shall be the person to whom the Consultant will report for the
performance of services hereunder. It is understood that Consultant shall coordinate its
services hereunder with the City’s Project Manager to the extent required by the City’s
Project Manager, and that all performances required hereunder by Consultant shall be
performed to the satisfaction of the City’s Project Manager and the City Manager
2. Term of Agreement. This Agreement shall take effect ___________, 20XX,
and shall continue until ("Term"), unless earlier terminated pursuant to the
provisions herein.
[Optional Language for Extensions] The City Manager shall have the option to
extend this Agreement for [describe extension option, e.g., two (2) additional two (2)
year terms.], subject to the same terms and conditions contained herein, by giving
Consultant written notice of the exercise of this option at least thirty (30) days prior to the
expiration of the initial Term. In the event the City exercises its option to extend the Term,
Consultant's compensation shall be subject to an adjustment upon the effective date of
extension as follows:
Any increase in compensation will be negotiated between the City and the
Consultant, but in no event shall the increase exceed the amount that the
Consumer Price Index ("CPI") for the Los Angeles -Anaheim-Riverside
metropolitan area for the month immediately preceding the Adjustment Date (the
"Index Month") as reported by the Bureau of La bor Statistics of the United States
Department of Labor, has increased over the CPI for the month one year prior to
the Index Month.
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3. Compensation. City agrees to compensate Consultant for each service
which Consultant performs to the satisfaction of City in compliance with the scope of
services set forth in Exhibit "A". Payment will be made only after submission of proper
invoices in the form specified by City. Total payment to Consultant pursuant to this
Agreement shall not exceed [Spell out dollar amount] ($ ) without the prior written
consent of the City. The above not to exceed amount shall include all costs, including,
but not limited to, all clerical, administrative, overhead, telephone, travel and all related
expenses.
4. Payment.
A. As scheduled services are completed, Consultant shall submit to City an
invoice for the services completed, authorized expenses and authorized extra work
actually performed or incurred.
B. All such invoices shall state the basis for the amount invoiced, including
services completed, the number of hours spent and any extra work performed.
C. City will pay Consultant the amount invoiced the City will pay Consultant the
amount properly invoiced within 35 days of receipt, but may withhold 30% of any invoice
until all work is completed, which sum shall be paid within 35 days of completion of the
work and receipt of all deliverables. [Optional to include withhold-typically would if a
deliverable was involved, such as software or a report ]
D. Payment shall constitute payment in full for all services, authorized costs
and authorized extra work covered by that invoice.
5. Change Orders. No payment for extra services caused by a change in the
scope or complexity of work, or for any other reason, shall be made unless and until such
extra services and a price therefor e have been previously authorized in writing and
approved by the City Manager or his designee as an amendment to this Agreement. The
amendment shall set forth the changes of work, extension of time , if any, and adjustment
of the fee to be paid by City to Consultant.
6. Priority of Documents. In the event of any inconsistency between the
provisions of this Agreement and any attached exhibits, the provisions of this Agreement
shall control. [If more than one exhibit, determine if one should control over other,
i.e. City's Request for Proposal, Consultant Proposal. Language would be along
the following lines: "In the event of any inconsistency between this Agreement and
the attached exhibits, the following order of precedence shall apply: (a) This
Agreement; (b) The City's Request for Proposal, dated _____; and (c) Consultant's
Proposal dated ______.]
7. Status as Independent Contractor.
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A. Consultant is, and shall at all times remain as to City, a wholly independent
contractor. Consultant shall have no power to incur any debt, obligation, or liability on
behalf of City or otherwise act on behalf of City as an agent , except as specifically
provided herein. Neither City nor any of its agents shall have control over the conduct of
Consultant or any of Consultant's employees, except as set forth in this Agreement.
Consultant shall not, at any time, or in any manner, represent that it or any of its agents
or employees are in any manner employees of City.
B. Consultant agrees to pay all required taxes on amounts paid to Consultant
under this Agreement, and to indemnify and hold City harmless from any and all taxes,
assessments, penalties, and interest asserted against City by reason of the independent
contractor relationship created by this Agreement. In the event that City is audited by any
Federal or State agency regarding the independent contractor status of Consultant and
the audit in any way fails to sustain the validity of a wholly independent contrac tor
relationship between City and Consultant, then Consultant agrees to reimburse City for
all costs, including accounting and attorney's fees, arising out of such audit and any
appeals relating thereto.
C. Consultant shall fully comply with Workers' Compensation laws regarding
Consultant and Consultant's employees. Consultant further agrees to indemnify and hold
City harmless from any failure of Consultant to comply with applicable Worker's
Compensation laws.
D. Consultant shall, at Consultant’s sole cost and expense fully secure and
comply with all federal, state and local governmental permit or licensing requirements,
including but not limited to the City of Diamond Bar, South Coast Air Quality Management
District, and California Air Resources Board.
E. In addition to any other remedies it may have, City shall have the right to
offset against the amount of any fees due to Consultant under this Agreement any amount
due to City from Consultant as a result of Consultant's failure to promptly pay to City a ny
reimbursement or indemnification required by this Agreement or for any amount or
penalty levied against the City for Consultant’s failure to comply with this Section.
8. Standard of Performance. Consultant shall perform all work at the
standard of care and skill ordinarily exercised by members of the profession under similar
conditions and represents that it and any subcontractors it may engage, possess any and
all licenses which are required to perform the work contemplated by this Agreement and
shall maintain all appropriate licenses during the perfo rmance of the work.
9. Indemnification.
Consultant shall indemnify, defend with counsel approved by City, and hold
harmless City, its officers, officials, employees and volunteers ("Indemnitees") from and
against all liability, loss, damage, expense, cost (including without limitation reasonable
attorneys' fees, expert fees and all other costs and fees of litigation) of every nature
arising out of or in connection with:
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(1) Any and all claims under Workers’ Compensation Act and other
employee benefit acts with respect to Consultant’s employees or Consultant’s
contractor’s employees arising out of Consultant’s work under this Agreement; and
(2) Any and all claims arising out of Consultant 's performance of work
hereunder or its failure to comply with any of its obligations contained in this
Agreement, regardless of City’s passive negligence, but excepting such loss or
damage which is caused by the sole active negligence or willful misconduct of the
City. Should City in its sole discretion find Consultant’s legal counsel
unacceptable, then Consultant shall reimburse the City its costs of defense,
including without limitation reasonable attorne ys' fees, expert fees and all other
costs and fees of litigation. The Consultant shall promptly pay any final judgment
rendered against the Indemnitees. It is expressly understood and agreed that the
foregoing provisions are intended to be as broad and inclusive as is permitted by
the law of the State of California and will survive termination of this Agreement.
Except for the Indemnitees, this Agreement shall not be construed to extend to any
third party indemnification rights of any kind.
(3) The Consultant's obligations to indemnify, defend and hold harmless
the City shall survive termination of this Agreement.
10. Insurance.
A. Consultant shall at all times during the term of this Agreement carry,
maintain, and keep in full force and effect, with an insurance company authorized to do
business in the State of California and approved by the City the following insurance:
(1) a policy or policies of broad-form comprehensive general liability
insurance written on an occurrence basis with minimum limits of $1,000,000.00
combined single limit coverage against any injury, death, loss or damage as a
result of wrongful or negligent acts by Consultant, its officers, employees, agents,
and independent contractors in performance of services under this Agreement;
(2) property damage insurance with a minimum limit of $500,000.00 per
occurrence;
(3) automotive liability insurance written on an occurrence basis covering
all owned, non-owned and hired automobiles, with minimum combined single limits
coverage of $1,000,000.00; and
(4) Worker's Compensation insurance when required by law, with a
minimum limit of $500,000.00 or the amount required by law, whichever is greater .
[Note: Does not apply to a sole proprietor, i.e., a Consultant with no
employees but can leave in as it states "when required by law ."]
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B. The City, its officers, employees, agents, and volunteers shall be named as
additional insureds on the policies as to comprehensive general liability, property
damage, and automotive liability. The policies as to comprehensive general liability,
property damage, and automobile liability shall provide that they are primary, and that any
insurance maintained by the City shall be excess insurance only. [If Consultant's work
does not require Consultant to come onto City property except for perhaps site
visits and meetings, City can be flexible with insurance, including need to be
additional insureds and with cancellation provision in Section 10.C below. If
Consultant works off-site and simply delivers a report or produ ct, insurance may
be waived altogether, except for Workers' Compensation ]
C. All insurance policies shall provide that the insurance coverage shall not be
non-renewed, canceled, reduced, or otherwise modified (except through the addition of
additional insureds to the policy) by the insurance carrier without the insurance carrier
giving City at least ten (10) days prior written notice thereof. Consultant agrees that it will
not cancel, reduce or otherwise modify the insurance coverage and in the event of any of
the same by the insurer to immediately notify the City.
D. All policies of insurance shall cover the obligations of Consultant pursuant
to the terms of this Agreement and shall be issued by an insurance company which is
authorized to do business in the State of California or which is approved in writing by the
City; and shall be placed have a current A.M. Best's rating of no less than A -, VII.
E. Consultant shall submit to City (1) insurance certificates indicating
compliance with the minimum insurance requirements above, and (2) insurance policy
endorsements or a copy of the insurance policy evidencing the additional insured
requirements in this Agreement, in a form acceptable to the City.
F. Self-Insured Retention/Deductibles. All policies required by this Agreement
shall allow City, as additional insured, to satisfy the self -insured retention (“SIR”) and/or
deductible of the policy in lieu of the Consultant (as the named insured) should Consultant
fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall
be subject to the approval of the City. Consultant understands and agrees that
satisfaction of this requirement is an express condition precedent to the e ffectiveness of
this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible
constitutes a material breach of this Agreement. Should City pay the SIR or deductible
on Consultant’s due to such failure in order to secure defense and indemnification as an
additional insured under the policy, City may include such amounts as damages in any
action against Consultant for breach of this Agreement in addition to any other damages
incurred by City due to the breach.
G. Subrogation. With respect to any Workers' Compensation Insurance or
Employer's Liability Insurance, the insurer shall waive all rights of subrogation and
contribution it may have against the Indemnitees.
H. Failure to Maintain Insurance. If Consultant fails to keep the insurance
required under this Agreement in full force and effect, City may take out the necessary
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insurance and any premiums paid, plus 10% administrative overhead, shall be paid by
Consultant, which amounts may be deducted from any payments due Con sultant.
I. Consultant shall include all subcontractors, if any, as insureds under its
policies or shall furnish separate certificates and endorsements for each subcontractor to
the City for review and approval. All insurance for subcontractors shall be subject to all
of the requirements stated herein.
11. Confidentiality. Consultant in the course of its duties may have access to
confidential data of City, private individuals, or employees of the City. Consultant
covenants that all data, documents, discussion, or other information developed or
received by Consultant or pr ovided for performance of this Agreement are deemed
confidential and shall not be disclosed by Consultant without written authorization by City.
City shall grant such authorization if disclosure is required by law. All City data shall be
returned to City upon the termination of this Agreement. Consultant's covenant under
this section shall survive the termination of this Agreement. Notwithstanding the
foregoing, to the extent Consultant prepares reports of a proprietary nature specif ically
for and in connection with certain projects, the City shall not, except with Consultant's
prior written consent, use the same for other unrelated projects.
12. Ownership of Materials. Except as specifically provided in this
Agreement, all materials provided by Consultant in the performance of this Agreement
shall be and remain the property of City without restriction or limitation upon its use or
dissemination by City. Consultant may, however, make and retain such copies of said
documents and materials as Consultant may desire.
13. Maintenance and Inspection of Records . In accordance with generally
accepted accounting principles, Consultant and its subcontractors shall maintain
reasonably full and complete books, documents, papers, accounting records, and other
information (collectively, the “records”) pertaining to th e costs of and completion of
services performed under this Agreement. The City and any of their authorized
representatives shall have access to and the right to audit and reproduce any of
Consultant's records regarding the services provided under this Agr eement. Consultant
shall maintain all such records for a period of at least three (3) years after termination or
completion of this Agreement. Consultant agrees to make available all such records for
inspection or audit at its offices during normal busin ess hours and upon three (3) days'
notice from the City, and copies thereof shall be furnished if requested.
14. Conflict of Interest.
A. Consultant covenants that it presently has no interest and shall not acquire
any interest, direct or indirect, which may be affected by the services to be performed by
Consultant under this Agreement, or which would conflict in any manner with the
performance of its services hereunder. Consultant further covenants that, in performance
of this Agreement, no person having any such interest shall be employed by it.
Furthermore, Consultant shall avoid the appearance of having any interest which would
conflict in any manner with the performance of its services pursuant to this Agreement.
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B. Consultant covenants not to give or receive any compensation, monetary
or otherwise, to or from the ultimate vendor(s) of hardware or software to City as a result
of the performance of this Agreement. Consultant's covenant under this section shall
survive the termination of this Agreement.
15. Termination. The City may terminate this Agreement with or without cause
upon fifteen (15) days' written notice to Consultant. The effective date of termination shall
be upon the date specified in the notice of termination, or, in the event no date is specified,
upon the fifteenth (15th) day following delivery of the notice. In the event of such
termination, City agrees to pay Consultant for services satisfactorily rendered prior to the
effective date of termination. Immediately upon receiving writt en notice of termination,
Consultant shall discontinue performing services, unless the notice provides otherwise,
except those services reasonably necessary to effectuate the termination. The City shall
be not liable for any claim of lost profits.
16. Personnel/Designated Person. Consultant represents that it has, or will
secure at its own expense, all personnel required to perform the services under this
Agreement. All of the services required under this Agreement will be performed by
Consultant or under it supervision, and all personnel engaged in the work shall be
qualified to perform such services. [Optional for when it is important that a specific
person perform the work include the following ] Except as otherwise authorized by the
City's Project Manager, [If applicable, name of designated person ] shall be the person
who primarily performs the work provided under this Agreement. Except as provided in
this Agreement, Consultant reserves the right to determine the assignment of its own
employees to the performance of Consultant's services under this Agreement, but City
reserves the right in its sole discretion to require Consultant to exclude any employee
from performing services on City's premises.
Note: Most Consulting Services Work does not implicate prevailing wages,
but some does. If so, prevailing wage section must be added here. See form
Maintenance Services Agreement, Section 17, for language to insert.
17. Non-Discrimination and Equal Employment Opportunity.
A. Consultant shall not discriminate as to race, color, creed, religion, sex,
marital status, national origin, ancestry, age, physical or mental handicap, medical
condition, or sexual orientation, in the performance of its services and duties pursuant to
this Agreement, and will comply with all rules and regulations of City relating thereto.
Such nondiscrimination shall include but not be limited to the following: employment,
upgrading, demotion, transfers, recruitment or recruitment advertising; layoff o r
termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship.
B. Consultant will, in all solicitations or advertisements for employees placed
by or on behalf of Consultant state either that it is an equal opportunity employer or that
all qualified applicants will receive consideration for employment without regard to race,
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color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental
handicap, medical condition, or sexual orientation.
C. Consultant will cause the foregoing provisions to be inserted in all
subcontracts for any work covered by this Agreement except contracts or subcontracts
for standard commercial supplies or raw materials.
18. Time of Completion. Consultant agrees to commence the work provided
for in this Agreement within (5) days of being notified by the City to proceed and to
diligently prosecute completion of the work within ________ (__) calendar days from such
date or as may otherwise be agreed to by and between the Project Manager and the
Consultant. [Optional to include time of completion. For instance if the Consultant
is a contract planner, time of completion would not apply]
19. Time Is of the Essence. Time is of the essence in this Agreement.
Consultant shall do all things necessary and incidental to the prosecution of Consultant's
work.
20. Liquidated Damages. Consultant shall pay City, or have withheld from
monies due it, as liquidated damages, the sum of _______ Dollars ($___) per day for
each and every calendar day's delay in finishing the work within the time specified,
including any written extensions which may be granted, in writing, in accordance with this
Agreement. [Optional, include in situations in which untimely delivery of a product
or service would interfere with City's ability to serve its constituents . Must have
Section 18 and 19 to include.]
21. Delays and Extensions of Time. Consultant's sole remedy for delays
outside its control shall be an extension of time. No matter what the cause of the delay,
Consultant must document any delay and request an extension of time in writing at the
time of the delay to the satisfaction of City. Any extensions granted shall be limited to the
length of the delay outside Consultant’s control. If Consultant believes that delays caused
by the City will cause it to incur additional costs, it must specify, in writing, why the delay
has caused additional costs to be incurred and the exact amount of such cost within 10
days of the time the delay occurs. No additional costs can be paid that exceed the not to
exceed amount absent a written amendment to this Agreement. In no event shall the
Consultant be entitled to any claim for lost profits due to any delay, whether caused by
the City or due to some other cause.
22. Assignment. Consultant shall not assign or transfer any interest in this
Agreement nor the performance of any of Consultant's obligations hereunder, without the
prior written consent of City, and any attempt by Consultant to so assign this Agreement
or any rights, duties, or obligations arising hereunder shall be void and of no effect.
23. Compliance with Laws. Consultant shall comply with all applicable laws,
ordinances, codes and regulations of the federal, state, and local governments.
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24. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of
any one or more of the conditions of performance under this Agreement shall not be a
waiver of any other condition of performance under this Agreement. In no event shall the
making by City of any payment to Consultant constitut e or be construed as a waiver by
City of any breach of covenant, or any default which may then exist on the part of
Consultant, and the making of any such payment by City shall in no way impair or
prejudice any right or remedy available to City with regard to such breach or default.
25. Attorney's Fees. In the event that either party to this Agreement shall
commence any legal or equitable action or proceeding to enforce or interpret the
provisions of this Agreement, the prevailing party in such action or proceeding shall be
entitled to recover its costs of suit, including reasonable attorney's fees and costs,
including costs of expert witnesses and consultants. [Optional. Generally do not
include unless Consultant is delivering a finished product.]
26. Mediation. Any dispute or controversy arising under this Agreement, or in
connection with any of the terms and conditions hereof, which cannot be resolved by the
parties, may be referred by the parties hereto for mediation. A third party, neutral
mediation service shall be selected, as agreed upon by the parties and the costs and
expenses thereof shall be borne equally by the parties hereto. The parties agree to utilize
their good faith efforts to resolve any such dispute or controversy so submitted to
mediation. It is specifically understood and agreed by the parties hereto that mutual good
faith efforts to resolve the same any dispute or controversy as provided herein, shall be
a condition precedent to the institution of any action or proceeding, whether at law or in
equity with respect to any such dispute or controversy. [Optional. Generally do not use
if Agreement is for less than $10,000 .]
27. Notices. Any notices, bills, invoices, or reports required by this Agreement
shall be deemed received on (a) the day of delivery if delivered by hand during regular
business hours or by facsimile before or during regular business hours; or (b) on the third
business day following deposit in the United States mail, postage prepaid, to the
addresses heretofore set forth in the Agreement, or to such other addresses as the parties
may, from time to time, designate in writing pursuant to the provisions of this section.
“CONSULTANT” “CITY”
City of Diamond Bar
21810 Copley Drive
Diamond Bar, CA 91765-4178
Attn.: Attn.: _______________
Phone: Phone:
E-Mail: E-mail:
28. Governing Law. This Agreement shall be interpreted, construed and
enforced in accordance with the laws of the State of California. The venue for any action
brought under this Agreement shall be in Los Angeles County.
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29. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be the original, and all of which together
shall constitute one and the same instrument.
30. Entire Agreement. This Agreement, and any other documents
incorporated herein by reference, represent the entire and integrated agreement between
Consultant and City. This Agreement supersedes all prior oral or written negotiations,
representations or agreements. This Agreement may not be amended, nor any provision
or breach hereof waived, except in a writing signed by the parties which expressly refers
to this Agreement. Amendments on behalf of the City will only be valid if signed by a
person duly authorized to do so under the City's Purchasing Ordinance .
IN WITNESS of this Agreement, the parties have executed this Agreement as of
the date first written above.
"Consultant" "City"
[Insert Full Name of Consultant ] CITY OF DIAMOND BAR
By: ______ By: ____
Printed Name: [Insert Name of Person authorized to
Title: sign, i.e., City Manager or Mayor
By: ATTEST:
Printed Name:
Title:
[Name], City Clerk
Approved as to form:
By:____
[Name] City Attorney
*NOTE: If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary,
the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer.
If only one corporate officer exists or one corporate officer holds more than one corporate
office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this
Agreement. A copy of the corporate resolution, certified by the Secretary close in time to
the execution of the Agreement, must be provided to the City.