- 1 - Rev. October 2023
Agreement No. 11584 (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Agreement”), entered into as of _________________ (“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and ACCO ENGINEERED SYSTEMS, INC. (“ACCO Engineered Systems”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. ACCO Engineered Systems is qualified to do business, and is doing business, in the State of California. ACCO Engineered Systems represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Agreement.
C. The City and ACCO Engineered Systems desire to enter into an agreement for the ACCO Engineered Systems to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term. This Agreement begins on the Execution Date and terminates three calendar years after the Execution Date, unless sooner terminated in accordance with Section 14.
1.1 Option To Extend. The City, in its sole and complete discretion, shall have the option to renew this agreement for up to one (1) additional one (1) year period (“Extension Term”), in accordance with the pricing set forth in Exhibit B.
2. ACCO Engineered Systems Services. ACCO Engineered Systems will perform all of the services (“Services”) described in Exhibit A, Scope of Services. ACCO Engineered Systems will complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
3.1 Make available to ACCO Engineered Systems any currently existing documents, data or information required for the performance of the Services.
3.2 Designate a representative authorized to act on behalf of City.
3.3 Promptly examine and render findings on all documents submitted for staff review by ACCO Engineered Systems.
4. Compensation. The City will compensate ACCO Engineered Systems for the Services performed in an amount not to exceed FIVE MILLION DOLLARS ($5,000,000) as set forth in Exhibit B.
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB 8/13/2024
- 2 - Rev. October 2023
4.1 Total Amount Not To Exceed. In the event the City exercises the (1) additional (1) year renewal option, the total amount for the Term and Extension Term shall not exceed SIX MILLION FIVE HUNDRED THOUSAND DOLLAR ($6,500,000), as set forth in Exhibit B.
5. Invoices. ACCO Engineered Systems will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Facilities Maintenance Division
City of Santa Monica
2500 Michigan Avenue
Santa Monica, California 90404
Attention: Shidan Adlparvar
Re: Agreement No. 11584
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Agreement No. 11584
6.2 All notices, demands, requests or approvals to ACCO Engineered Systems:
ACCO Engineered Systems, Inc.
888 East Walnut Street
Pasadena, CA 91101
Attention: John Reuter
[email protected] (818) 244-6571
Re: Agreement No. 11584
7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another. Neither the City nor its officers or employees will have any control over the conduct of ACCO Engineered Systems or any of ACCO Engineered Systems’s agents, employees, or subcontractors, except as otherwise provided in this Agreement.
8. Integrated Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB - 3 - Rev. October 2023
be held to vary the provisions of this Agreement. This Agreement may be modified only by written agreement signed by City and ACCO Engineered Systems and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, ACCO Engineered Systems must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by ACCO Engineered Systems or ACCO Engineered Systems’s agents, representatives, employees or subcontractors for the duration of this Agreement. ACCO Engineered Systems must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
10.1 ACCO Engineered Systems agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of ACCO Engineered Systems, or ACCO Engineered Systems’s employees, agents, officers, and subcontractors. ACCO Engineered Systems’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of ACCO Engineered Systems its employees, agents or officers, or subcontractors; provided, however, that ACCO Engineered Systems’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding ACCO Engineered Systems’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from ACCO Engineered Systems if City chooses to do so.
10.2 Enforcement Costs. ACCO Engineered Systems agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section
10.1. 11. Prohibition Against Transfers.
11.1 ACCO Engineered Systems may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of ACCO Engineered Systems or of any general partner or joint venturer or syndicate member of ACCO Engineered Systems if a partnership or joint venture or syndicate exists, which results in changing the control of ACCO Engineered Systems will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB - 4 - Rev. October 2023
12. Permits and Licenses. ACCO Engineered Systems at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
14. Default and Termination.
14.1 If ACCO Engineered Systems fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to ACCO Engineered Systems.
14.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to ACCO Engineered Systems. Upon termination of this Agreement, City will pay ACCO Engineered Systems any compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. ACCO Engineered Systems must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City including, but not limited to, Articles 2 and 3, Division 2, Part 7, Chapter 1 of the Labor Code, State of California related to prevailing wage, apprentices, penalties, and certified payroll.
16. Notice of Registration Requirements with and Compliance Monitoring and Enforcement by the Department of Industrial Relations. ACCO Engineered Systems hereby acknowledges and agrees that:
16.1 No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
16.2 No contractor or subcontractor may be awarded an agreement for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.
16.3 This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
17. Discrimination. ACCO Engineered Systems may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
18. Nuisance. ACCO Engineered Systems may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
19. Records.
19.1 ACCO Engineered Systems must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subcontractor costs, or other direct costs. ACCO Engineered Systems must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB - 5 - Rev. October 2023
19.2 ACCO Engineered Systems must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles.
ACCO Engineered Systems must clearly identify all records and make them readily accessible to the City. At the City’s request, ACCO Engineered Systems must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
19.3 ACCO Engineered Systems must allow the City to have free access to ACCO Engineered Systems’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit ACCO Engineered Systems’s records, and ACCO Engineered Systems agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by ACCO Engineered Systems agrees to pay the cost of the City’s audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.
20. Work Product; Reports.
20.1 Any work product prepared or caused to be prepared by ACCO Engineered Systems or any subcontractor for this Agreement will be the exclusive property of City. No work product given to or prepared by ACCO Engineered Systems or any subcontractor pursuant to this Agreement may be made available to any individual or organization by ACCO Engineered Systems without prior written approval by City.
20.2 At the City’s request, ACCO Engineered Systems must furnish reports concerning the status of the Services.
21. Standard of Care. ACCO Engineered Systems agrees to provide all Services, including services performed by any subcontractor, in a manner consistent with the level of care and skill ordinarily exercised by members of ACCO Engineered Systems’s profession currently practicing in the same locality under similar conditions.
22. Subcontractors.
22.1 If ACCO Engineered Systems proposes to have any subcontractor perform any part of the Services, ACCO Engineered Systems must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subcontractor, and the total price or hourly rates used in preparing an estimated cost for the subcontractor’s services. The City, in its sole discretion, may grant or deny the request.
22.2 ACCO Engineered Systems will be responsible for the quality of any subcontractor’s work.
Every subcontract or agreement of any kind entered into between ACCO Engineered Systems and any subcontractor (or between any subcontractor and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 11584 (CCS) entered into between the City of Santa Monica and ACCO Engineered Systems on^^____________________.
23. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
24. Venue and Jurisdiction. The City and ACCO Engineered Systems agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB 8/13/2024
- 6 - Rev. October 2023
either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
25. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
26. Execution in Counterparts. This Agreement may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single Agreement. Any signature to this Agreement transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
///
///
///
///
///
///
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB - 7 - Rev. October 2023
27. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
Acco Engineered SystemsCorporation
#VENDOR
By: ________________________________
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB 8/8/2024
DOUGLAS SLOAN
City Attorney
ACCO Engineered Systems, Inc.
Assistant Secretary
Carlton Seyforth
8/13/2024
City Manager
8/13/2024
Nikima Newsome David White
City Clerk
8/14/2024
Exhibit A
Scope of Services
1. GENERAL. ACCO Engineered Systems shall provide heating, ventilation and air conditioning (HVAC) services as follows:
1.1 Santa Monica Airport. ACCO Engineered Systems shall provide preventative maintenance every three (3) months, or four (4) visits per year. Preventative maintenance shall include in-depth inspections, diagnoses and cleaning of equipment and systems covered herein this agreement (Attachment A). ACCO Engineered Systems shall provide a detailed report of any findings at the conclusion of each inspection including specific recommendations for remedy.
1.2 Fire Stations and Fire Drill Tower. ACCO Engineered Systems shall provide preventative maintenance every three (3) months, or four (4) visits per year. Preventative maintenance shall include in-depth inspections, diagnoses and cleaning of equipment and systems covered herein this agreement (Attachment B). ACCO Engineered Systems shall provide a detailed report of any findings at the conclusion of each inspection including specific recommendations for remedy.
1.3 Main Library. ACCO Engineered Systems shall provide preventative maintenance every thirty (30) days, or twelve (12) visits per year. Preventative maintenance shall include in-depth inspections, diagnoses and cleaning of the equipment and systems covered herein this agreement (Attachment C). ACCO Engineered Systems shall provide a detailed report of any findings at the conclusion of each inspection including specific recommendations for remedy.
1.4 Citywide. ACCO Engineered Services shall provide as needed repairs and installation citywide.
Work may include, but is not limited to replacements / installations repairs of various HVAC systems including cooling / heating units, condensers, condensate lines/pans, ductwork, thermostats and other related items. Jobs shall be quoted individually and requested as required (no guaranteed usage).
2. APPROVAL OF WORK. ACCO Engineered Systems shall provide a written proposal with pricing for approval for all as needed jobs requested by Facilities Maintenance staff. The HVAC Crew Leader, Facilities Supervisor or Facilities Services Administrator must authorize all work under this contract. City staff shall approve all jobs in writing prior to the start of work (generally in the form of an e-mail approval) with the exception of emergency work requested by staff to address a clear and present hazard to the public, City staff, the environment and/or City property (e.g. repairs of leaks, server room A/C failures or other items). A written proposal or invoice shall be submitted to the City with accurate cost information as soon as is practicable after emergency work approval based on a verbally provided cost estimate.
3. CONTRACTORS LICENSE / REGISTRATION WITH THE STATE OF CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS. ACCO Engineered Systems shall maintain a valid C20 Warm-Air Heating, Ventilating and Air-Conditioning California State Contractors License during the term of this agreement. ACCO Engineered System shall maintain a valid registration as a Public Works contractor on the Department of Industrial Relations website: http://www.dir.ca.gov/PublicWorks/PublicWorks.html
4. PERFORMANCE OF WORK. Work dates / times shall be coordinated in advance with a Facilities Maintenance Supervisor or HVAC Crew Lead who shall facilitate access to City locations. The City may opt to provide materials and/or labor to assist with various work.
5. PREVAILING WAGE / CERTIFIED PAYROLL RECORDS. ACCO Engineered Systems shall perform all services under this contract under prevailing wage. Certified payroll records shall be Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB submitted electronically via the State Department of Industrial Relations’ electronic Certified Payroll Reporting (eCPR) system, and if requested, to Facilities Maintenance staff.
6. WASTE MATERIALS DISPOSAL. ACCO Engineered Systems shall remove any hazardous waste materials generated by work performed under this contract per Environmental Protection Agency (EPA) regulations. It is ACCO Engineered Systems’ sole responsibility to ensure that all hazardous waste materials are either recycled safely and effectively or treated and disposed of in landfills or incinerators per EPA guidelines.
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB Exhibit B
Budget
Pricing for Work Orders as Requested per bid SP2694
Line
Item
Labor Rates Years 1-3 (Term) Quantity Unit of
Measure
Unit Cost Total
1 Hourly Labor Rate 1 $ $ 130.00 $ 130.00
2 OT/After-Hourly Labor Rate 1 $ $ 168.00 $ 168.00
3 % Discount/Mark-up Offered on
Materials
1 % $ 20.00 $ 20.00
4 Minimum Call-out Charge 1 $ $ 450.00 $ 450.00
Line Item Labor Rates Year 4 (Extended
Term)
Quantity Unit of
Measure
Unit Cost Total
1 Hourly Labor Rate 1 $ $ 135.20 $ 135.20
2 OT/After-Hourly Labor Rate 1 $ $ 174.72 $ 174.72
3 % Discount/Mark-up Offered
on Materials
1 % $ 20.00 $ 20.00
4 Minimum Call-out Charge 1 $ $ 468.00 $ 468.00
1. Total Amount Not To Exceed. In the event the City exercises the (1) additional (1) year renewal option, the total amount for the Term and Extension Term shall not exceed SIX MILLION FIVE HUNDRED THOUSAND DOLLAR ($6,500,000).
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If the Contractor maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37).
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB b. Primary Coverage: For any claims related to this Agreement, the Contractor’s insurance shall be primary coverage as least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica. d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Contractor may acquire against the City of Santa Monica by virtue of payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Contractor to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the selfinsured retention may be satisfied by either the name insured or the City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M.
Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Contractor resulting from said breach.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does not have employees. The Contractor must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
Docusign Envelope ID: 82C5FD08-2370-425F-9150-05C8A3179ECB