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HomeMy WebLinkAbout13 - Junior Lifeguard UniformsCITY OF F NEWPORT REACH City Council Staff Report November 12, 2014 Agenda Item No. 13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Scott L. Poster, Fire Chief— (949) 644 -3101, sposter @nbfd.net PREPARED BY: Angela Crespi, Administrative Manager PHONE: (949) 644 -3352 TITLE: Approval of a Purchase Agreement for Junior Lifeguard Uniforms ABSTRACT: The Junior Lifeguard program has an annual enrollment of approximately 1,400 participants. Each participant pays a program enrollment fee, which the City utilizes to supply the resources and supplies necessary for the facilitation of the program. One of the largest categories of program supplies is the provision of uniform apparel for all participants. Being one of the most notable programs in the City, the participants and their parents have come to expect a high quality uniform product. As such, staff recommends the purchase of uniform supplies from the recommended vendor, Quiksilver, Inc. RECOMMENDATION: Approve a three (3) year Purchasing Agreement with Quiksilver, Inc. for Junior Lifeguard uniform apparel at an annual cost of $181,095 plus tax per contract year, and a total three year cost of $543,285 plus tax. FUNDING REQUIREMENTS: The purchase will be funded from the Fire Department, Junior Guards 2353 -8200 account as revenue becomes available from the annual program enrollment. DISCUSSION: The Fire Department's Junior Lifeguard program is one of the most recognizable programs for the City of Newport Beach, along with being a model for Junior Lifeguard programs throughout the United States. In recent years, the program has served approximately 1,400 annual participants. One of the unique aspects of the program is the superiority of the uniforms supplied to the participants. These uniforms have become a symbol for the City and the program, provide ongoing program promotion, and allow participants and their families to display their accomplishment and pride. In addition to the basic uniform items provided with enrollment, many parents choose to purchase additional items for their children and for themselves. Annual uniform orders are based upon quantity and sizing information gathered during the annual enrollment process. 13 -1 On September 22, 2014, a Request for Proposal (RFP) solicitation was issued by the City's Purchasing staff and publicly distributed. The RFP solicitation generated proposals from four (4) vendors. To properly assess the proposals, an evaluation panel was assembled consisting of staff from the Marine Operations Division of the Fire Department and facilitated by Purchasing staff. As shown in the table below, the proposals were evaluated on criteria that included qualifications and experience, service deployment, recent relevant experience, uniform quality, and proposed project cost. Proposal Evaluation Criteria % of Score Qualifications and Experience of the Proposer 10% Service Deployment 15% Proposer's Recent Experience with Similar Projects 10% Quality of Uniform Samples Provided 25% Proposed Project Costs 40% Total 100% Upon completion of the evaluation process, Quiksilver, Inc. was identified as the top - qualified vendor to provide uniform apparel for the Junior Lifeguard program. In addition to receiving the highest aggregate score, Quiksilver, Inc. offered the lowest annual and three year aggregate cost of $181,095.00 and $543,285.00 respectively. Evaluation Scores Vendor lAggregate Score out of 100) Proposed 3 -Year Cost Ad-Wear & Specialty 56.55 $578,664.90 Quiksilver 95.33 $543,285.00 oes on the Nose 75.06 $690,805.00 o-kom 82.55 $547,125.00 Through their proposal, Quiksilver, Inc. was able to distinguish themselves from the other vendors by providing the highest quality apparel, having a strong presence and experience in the local Orange County area, and providing the most competitive pricing. While not a requirement of the evaluation process, Quiksilver, Inc. also has a total of five years of demonstrated experience successfully providing uniform apparel to the Newport Beach Junior Lifeguard Program. The continuity in vendors will allow the program to utilize some uniform items from year to year, thus reducing surplus and continuous replacement. As a result of the competitive bidding process, the annual cost over the next three contract years will be approximately $4,000 lower than 2014. Overall, the proposed vendor will allow the City to continue providing a recognizable, high - quality, and competitively priced product for the Junior Lifeguard program participants. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 13 -2 ATTACHMENTS: Description Attachment A - Purchase Agreement with Quiksilver. Inc. for Junior Lifeguard Apparel 13 -3 ATTACHMENT A PURCHASE AGREEMENT WITH QUIKSILVER, INC. FOR JUNIOR LIFEGUARD UNIFORM APPAREL THIS PURCHASE AGREEMENT ( "Agreement') is made and entered into as of this 12TH day of November, 2014, by and between the City of Newport Beach, a California municipal corporation and charter city ( "City "), and QUIKSILVER, INC., a Delaware Corporation ( "Vendor"), whose principal place of business is 5600 Argosy Circle, Huntington Beach, California 92649, and is made with reference to the following: RECITALS A. 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 City. B. City conducts an annual Junior Lifeguard Program wherein enrolled participants are supplied with Junior Lifeguard Uniforms and the option to purchase additional apparel with the Junior Lifeguard logo. C. City desires to engage Vendor to supply Junior Lifeguard program uniform apparel including, hats. backpacks, sweatshirts, t- shirts, rash guards, surf caps, beach, towels, trunks and suits on an annual basis for the term of this Agreement ('Project'). D. Vendor has carefully reviewed and evaluated the specifications set forth by the City for the Project, and is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Unless earlier terminated in accordance with Section 16 of this Agreement, the initial term of this Agreement shall be for a period of three (3) years. The term of this Agreement shall commence on the above written date, and shall terminate on November 30. 2017 unless terminated earlier as set forth herein. The term of this Agreement shall be extended for two (2) additional one (1) year terms with the extensions to automatically commence upon the expiration of the initial term or any extended term. City may terminate these automatic one (1) year extensions by notifying the Vendor in writing at least thirty (30) days before the end of the initial term or any extended term, of its intent to terminate this Agreement at the conclusion of the initial term or any extension. This termination provision shall only apply to the automatic extensions; it does not apply to termination of the Agreement as a whole, 13 -4 which is governed by Section 16. The initial term of this Agreement shall not extend beyond three (3) years. Including automatic extensions, the entire term shall not extend beyond five (5) years. 2. SCOPE OF WORK Vendor shall perform all the work and deliver all the goods as described in the Scope of Work attached hereto as Exhibit A and incorporated herein by this reference ( "Services," "Work" or "Goods "). As a material inducement to the City entering into this Agreement, Vendor represents and warrants that Vendor is a provider of first class work and Vendor is experienced in performing the Work contemplated herein and, in light of such status and experience, Vendor covenants that it shall follow the highest professional standards in performing the Work required hereunder and that all materials will be of good quality. 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. Vendor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all transportation services necessary for the Project. 3. TIME OF PERFORMANCE Time of delivery is the essence of this Agreement. The City reserves the right to refuse any Goods and to cancel all or any part of the Goods not conforming to applicable specifications, drawings, samples or descriptions. Acceptance of any part of the order for Goods shall not bind City to accept further shipments, nor deprive City of the right to return goods already accepted, at Vendor's expense. Over shipments and under shipments shall be only as agreed to by the City. Notwithstanding the foregoing, Vendor shall not be responsible for delays due to causes beyond Vendor's reasonable control. However, in the case of any such delay in the Goods to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. Vendor shall submit all requests for extensions of time for delivery in writing to the Project Administrator as soon as reasonably possible, but no event later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Vendor's control. For all time periods not specifically set forth herein, Vendor shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. Quiksilver, Inc. Page 2 13 -5 4. COMPENSATION City shall pay Vendor for the goods on a fixed rate basis, in accordance with the provisions of this Section and the Scope of Services and Schedule of Billing Rates attached hereto as Exhibit A and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City, except for the annual adjustment to the rates in proportion to changes in the Consumer Price Index as more particularly described Section 4.1 below. As full compensation for the performance and completion of the Project as required by the Scope of Work and Schedule of Billing Rates, City shall pay to Vendor and Vendor accepts as full payment the sum of Five Hundred Forty Three Thousand Two Hundred Eighty Five Dollars and 00/100 ($543,285.00), for the initial term of this Agreement, subject to the annual adjustment to the rates in proportion to changes in the Consumer Price Index. Vendor shall not receive any additional compensation unless approved in advance by the City in writing. City shall pay Vendor no later than thirty (30) days after invoice and acceptance of shipments by the City. 4.1 CONSUMER PRICE INDEX. Upon the first anniversary of the Commencement Date and upon each anniversary of the Commencement Date thereafter, the billing rates set forth in Exhibit A ('Billing Rates') shall be adjusted in proportion to changes in the Consumer Price Index, subject to the maximum adjustment set forth below. Such adjustment shall be made by multiplying the Billing Rates in Exhibit A by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made; and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to Effective Date. The Consumer Price Index to be used in such calculation is the "Consumer Price Index, All Items, 1982 -84 =100 for All Urban Consumers (CPI -U) ", for the Los Angeles- Riverside- Orange County Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics. If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. In no event, however, shall the amount payable under this Agreement be reduced below the Billing Rates in effect immediately preceding such adjustment. The maximum adjustment increase to the Billing Rates, for any year where an adjustment is made pursuant to this Section, shall not exceed 2.5% of the Billing Rates in effect immediately preceding such adjustment. 5. ADMINISTRATION This Agreement will be administered by the Fire Department. Lifeguard Operations Assistant Chief, or his /her designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. Quiksilver, Inc. Page 3 13 -6 6. TYPE OF MATERIALS /STANDARD OF CARE 6.1 Vendor shall use only the standard materials described in Exhibit A in performing Services under this Agreement. Any deviation from the materials described in Exhibit A shall not be utilized unless approved in advance by the City Administrator. 6.2 All of the Services shall be performed by Vendor or under Vendor's supervision. Vendor represents that it possesses the personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with highest professional standards. All Services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 7. RESPONSIBILITY FOR DAMAGES OR INJURY 7.1 City and all officers, employees and representatives thereof shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Project or for injury to or death of any person as a result of Vendor's performance of the Services required hereunder; or for damage to property from any cause arising from the performance of the Project by Vendor, or its contractors, consultants, workers, or anyone employed by either of them. 7.2 Vendor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Vendor's Work on the Project, or the Work of any subcontractor or supplier selected by the Vendor. 7.3 To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Vendor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability Quiksilver, Inc. Page 4 13 -7 regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 7.4 Vendor shall perform all Project Work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Vendor shall be liable for any private or public property damaged during the performance of the Project Work. 7.5 To the extent authorized by law, as much of the money due Vendor under and by virtue of the Agreement as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 7.6 The rights and obligations set forth in this Section shall survive the termination of this Agreement. 8. INDEPENDENT CONTRACTOR City has retained Vendor as an independent contractor and neither Vendor nor its employees are to be considered employees of the City. The manner and means of conducting the Work are under the control of Vendor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment shall accrue to Vendor or its employees. Nothing in this Agreement shall be deemed to constitute approval for Vendor or any of Vendor's employees or agents, to be the agents or employees of City. Vendor shall have the responsibility for and control over the means of performing the Work, provided that Vendor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Vendor as to the details of the performance of the Work or to exercise a measure of control over Vendor shall mean only that Vendor shall follow the desires of City with respect to the results of the Services. 9. COOPERATION Vendor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Vendor on the Project. 10. INSURANCE 10.1 Provision of Insurance. Without limiting Vendor's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described below and in a form satisfactory to City. Vendor agrees to provide insurance in accordance with requirements set forth here. If Vendor uses existing coverage to comply and that coverage does not meet these requirements, Vendor agrees to amend, Quiksilver, Inc. Page 5 13 -8 supplement or endorse the existing coverage. The cost of such insurance shall be included in Vendor's bid. 10.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 10.3 Coverage Requirements. 10.3.1 Workers' Compensation Insurance. Vendor shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers. 10.3.2 General Liability Insurance. Vendor shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). 10.3.3 Automobile Liability Insurance. Vendor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. 10.4 Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 10.4.1 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Quiksilver, Inc. Page 6 13 -9 Vendor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subcontractors. 10.4.2 Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City and its officers, officials, employees, and agents shall be included as insureds under such policies. 10.4.3 Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self- insurance maintained by City. 10.4.4 Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation (except for nonpayment for which ten (10) calendar days' notice is required) or nonrenewal of coverage for each required coverage. 10.5 Additional Agreements Between the Parties. The parties hereby agree to the following: 10.5.1 Evidence of Insurance. Vendor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 10.5.2 City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Vendor sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Vendor, City and Vendor may renegotiate Vendor's compensation. 10.5.3 Enforcement of Agreement Provisions. Vendor acknowledges and agrees that any actual or alleged failure on the part of City to inform Vendor of non - compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. Quiksilver, Inc. Page 7 13 -10 10.5.4 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Vendor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Vendor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 10.5.5 Self- insured Retentions. Any self- insured retentions must be declared to and approved by City. City reserves the right to require that self- insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. 10.5.6 City Remedies for Non - Compliance. If Vendor or any subcontractor fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Vendor or reimbursed by Vendor upon demand. 10.5.7 Timely Notice of Claims. Vendor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Vendors performance under this Contract, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 10.5.8 Vendors Insurance. Vendor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 11. CLAIMS Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Vendor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Vendor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and Quiksilver, Inc. Page 8 13 -11 identified by Vendor in writing as unsettled at the time of its final request for payment. Vendor and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Vendor shall be required to file any claim Vendor may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 12. SUBCONTRACTING City and Vendor agree that subcontractors may be used to complete the Work outlined in the Scope of Work provided the Vendor obtains City approval prior to the subcontractor performing any work. Vendor shall be fully responsible to City for all acts and omissions of the subcontractors. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 13. WITHHOLDINGS City may withhold payment to Vendor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Vendor shall not discontinue Work as a result of such withholding. Vendor shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Vendor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 14. CONFLICTS OF INTEREST The Vendor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act'), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Vendor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Vendor shall indemnify and hold harmless City for any and all claims for damages resulting from Vendor's violation of this Section. Quiksilver, Inc. Page 9 13 -12 15. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Vendor and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Vendor to City shall be addressed to City at: Attn: Rob Williams, Lifeguard Operations Assistant Chief Fire Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 All notices, demands, requests or approvals from City to Vendor shall be addressed to Vendor at: Attention: Mike Reilly Quiksilver, Inc. 5600 Argosy Circle Huntington Beach, CA 92649 16. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Vendor. In the event of termination under this Section, City shall pay Vendor for Services satisfactorily performed and costs incurred up to the effective date of termination for which Vendor has not been previously paid. On the effective date of termination, Vendor shall deliver to City all materials purchased in performance of this Agreement. Quiksilver, Inc. Page 10 iR3R1 17. RECITALS City and Vendor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 18. COMPLIANCE WITH ALL LAWS Vendor shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Vendor shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 19. WAIVER A waiver by City of any term, covenant, or condition in the Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 20. INTEGRATED AGREEMENT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal Agreement or implied covenant shall be held to vary the provisions herein. 21. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Work, the terms of this Agreement shall govern. 22. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Vendor and City and approved as to form by the City Attorney. 23. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 24. EFFECT OF VENDOR'S EXECUTION Execution of this Agreement by Vendor is a representation that Vendor accepts the terms and conditions of this Agreement. Quiksilver, Inc. Page 11 13 -14 25. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 26. 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 the Agreement or any other rule of construction which might otherwise apply. 27. EQUAL OPPORTUNITY EMPLOYMENT Vendor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, age or any other impermissible basis under law. 28. NO ATTORNEY'S FEES In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 29. COUNTERPARTS This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Quiksilver, Inc. Page 12 13 -15 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: o /51 la CITY OF NEWPORT BEACH, A California municipal corporation Date: By: 21c� By: Aaro /Harp cAm i'l H Rush N. Hill, II City Attorney Mayor ATTEST: Date: CONSULTANT: QUIKSILVER, INC., a Delaware corporation Date: Bv: Leilani I. Brown Thomas Webster City Clerk Sr. Vice President of Finance By: Rich Shields Chief Financial Officer Attachments: Exhibit A - Scope of Work and Schedule of Billing Rates Quiksilver, Inc. Page 13 13 -16 EXHIBIT A SCOPE OF SERVICES AND SCHEDULE OF BILLING RATES Quiksilver, Inc. Page A -1 13 -17 CITY OF NEWPORT BEACH JUNIOR LIFEGUARD UNIFORM ITEMS All items will have approved Color Scheme with JG Logo. JG Logo may be a Patch, Embroidery, or Screen print. ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE 1. 1,550 BACKPACK Heavy nylon; zipper or draw string closing; at least two compartments for wet /dry inside; outside pouches; padded adjustable straps for safety and comfort; outside adjustable method to secure fins or bike helmet; heavy duty $20.00 $31,000.00 top handle; large enough to carry: fins, lunch, drink, beach towel, sweatshirt and shoes with a small secure personal pocket for valuables ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE 2. 300 Wide Brimmed, Bushman -Style HAT High quality, for sun protection, sturdy brim with material under lining for everyday wear at the beach, $7.00 $2,100.00 ventilation, adjustable nylon cord or elastic fit to fit child and adult 3. 1,550 Baseball or Trucker -Style HAT High quality, sturdy material bill for every day beach use and adjustable $5.00 $7,750.00 back to fit child and adult 4. 300 Visor -Style HAT 13 -18 FREE -] High quality, adjustable, with material on bill, low profile top front, sturdy bill, nylon $6.00 $1,800.00 COLOR — Red, Navy, or approval 5. 800 HAT* High quality, trendy style, for awards /prizes *Other item may be substituted with approval $7.00 $5,600.00 ITEM CITY DESCRIPTION UNIT PRICE EXTENDED PRICE 6. 2,350 LIFEGUARD TRUNK * Boardshort- style, sturdy stretch fabric (with approval), 3- needle heavy stitching throughout, bar tacking at all stress points, fixed reinforced waistband, durable for everyday use, side /back pocket and sand grommet, bar - tacked /cotton tie, wide invisible fly $14.50 $34,075.00 Boys and Men's sizes: 22 " -33 ", 34 ", 36" 38" and 40" waist Girls and Women's sizes: 000 -13 (6x —13) FREE -] ( • Must agree to makeup to 5 trunks for special size 1G's who do not fit into the above sizes) 7. 1,700 SWEATSHIRT 80cotton /20poly, heavyweight, 12 oz. or more, fleece, hooded or crew with $14.50 $24,650.00 hand pockets or zipper pouch, piping or color accent acceptable Sizes: Adult XXS -XXL 8. 2,750 T -SHIRT 100% heavyweight cotton, short sleeve Sizes: Youth S, M, L Adult S, M, L, XL COLOR —White or approval $5.00 $13,750.00 SCREEN PRINT -3 to 5 colorJG Logo front and back ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE 9. 1,400 Monster Mile T -SHIRT 100% heavyweight cotton Sizes: XS — XXL (Unisex) COLOR - approval SCREEN PRINT- 10+ color front and back with Newport Beach Monster Mile $5.00 $7,000.00 design Artwork may be supplied by City of Newport Beach 13 -20 10. 500 RASHGUARD 5.5 oz. or more, nylon lycra short sleeve, pullover top with mock turtle neck collar and SPF Sizes: XXS — XXL $11.00 $5,500.00 COLOR - to match JG uniform on approval SCREEN PRINT -1 to 3 colorJG logo 11. 2,000 BEACH TOWEL Printed logo beach towel, 64" x 38" COLOR —on approval $12.00 $24,000.00 ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE 12. 70 INSTRUCTOR SHIRT Aloha shirt or polo -style for Hot Dog Dinner $11.00 $770.00 Sizes:S —XXL COLOR —Open 13. 1,050 GIRL'S SWIMSUITS One Piece (350) and Two Piece (700) Athletic Cut for Racing Sizes: XXS — XXL COLOR — Red or approval 13 -21 13 -22 One -Piece Suit $16.00 $5,600.00 Two -Piece Suit $20.00 $14,000.00 14. 700 T- SHIRT(S) - COMPETITIONDESIGN (3 -4 different shirts /designs) 100% heavyweight cotton, short sleeve Sizes: Men's S — XXL SCREEN PRINT —4 +color front /back $5.00 $3,500.00 with Newport Beach Artwork may be supplied by City of Newport Beach 15. ART WORK /EMBROIDERY /SCREEN PRINT (IF ANY) $00.00 $00.00 ITEM QTY DESCRIPTION UNIT PRICE EXTENDED PRICE 16. SHIPPING (IF ANY) $00.00 $00.00 17. ADDITIONAL FEES (IF ANY) $00.00 $00.00 TOTAL: $ 181,095.00 13 -22