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HomeMy WebLinkAbout12 - OASIS Senior Center Fitness EquipmentCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 12 March 23, 2010 TO: HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL FROM: RECREATION & SENIOR SERVICES DEPARTMENT Laura Detweiler, Director 644 -3157, Idetweiler(a)newportbeachca.gov Celeste Jardine -Haug, Senior Services Manager 644 -3247, chaug(a)newportbeachca.gov SUBJECT: OASIS SENIOR CENTER — FITNESS EQUIPMENT AWARD OF CONTRACT TO TECHNOGYM, USA CORPORATION ISSUE: Should the City Council approve the award of contract to TechnoGym USA, Corporation for the purchase, delivery and set -up of exercise equipment for the OASIS Senior Center? RECOMMENDATION: 1. Approve the proposal for purchase of fitness equipment and service agreement. 2. Award Contract No.4414 to TechnoGym USA, Corporation for the total proposal price of $157,026.43 and authorize the Mayor and the City Clerk to execute the contract. DISCUSSION: As the new OASIS Senior Center building construction moves towards 50% completion, staff has begun to identify and purchase furniture, fixtures and equipment (FF &E) necessary to complete and occupy the new facility. A large component of the facility's FF &E is the exercise equipment for the fitness center. Fitness equipment proposals were due to the purchasing office on December 2, 2009, and were reviewed for content by department staff. Companies were allowed to submit more than one proposal with different combinations of equipment. During careful review of all submitted proposals, the following factors were taken into consideration for selection of the appropriate equipment: • The specific pieces of equipment being proposed and their applicability for the senior population to include ease of use; • Vendor's past experience with furnishing senior fitness facilities; • Site visit assessments made by City staff, senior participants, and the project architect; • After market service and maintenance of the equipment; • The total cost of the equipment being proposed; OASIS Senior Center Fitness Equipment —Award of Contract No. 4414 March 23, 2010 Page 2 Interested Companies were provided a list of desired equipment, and the quantities of each piece needed, a CAD drawing of the space, and a description of the facility's needs. Companies who chose to submit more than one proposal are indicated with multiple cost options for the equipment. The proposals were ranked in order based on the list of described factors and are shown in order from highest to lowest score. TechnoGym received the highest ranking and is being recommended for award of contract in the amount of $157,026.43 which includes equipment, tax, shipping, installation and a two year service plan. Companies that submitted proposals included: Ranking 1. TechnoGym 2. Advanced Exercise Equipment 3. Advantage Fitness 4. The Dumbellman 5. Promaxima 6. USA Fitness 7. Legend Fitness ENVIRONMENTAL REVIEW: Total Cost of Equipment A - $157,026.43 A - $188,248.47 B - $172,689.92 $164,462.57 B - $164,245.07 C - $124,715.53 A - $154,638.69 $108,640 B - $82,492 A - $100,292.51 B - $84,807 A - $114,803.93 On December 9, 2009, the City Council approved Mitigated Negative Declaration ND2008- 002 for the New OASIS Senior Center and the temporary trailer complex constructed in the parking lot off 5th Street across from the site. PUBLIC NOTICE: The Public Notice requesting proposals was advertised on the City's website. FUNDING AVAILABILITY: There are sufficient funds available in the following account for the project: Account Description General Fund Proposed uses are as follows: Vendor TechnoGym TechnoGym Account Number Amount 7453- C1002007 $ 157,026.43 Total: $ 157,026.43 Purpose Amount Exercise Equipment $ 140,062.88 Transport and Installation $ 16,963.55 Total: $ 157,026.43 Prepared by: &oL�� Celeste Jar ine -Haug Senior Services Manager Attachment: Purchase Agreement OASIS Senior Center Fitness Equipment — Award of Contract No. 4414 March 23, 2010 Page 3 CONTRACT WITH TECHNOGYM USA CORPORATION FOR PURCHASE, INSTALLATION AND MAINTENANCE OF FITNESS EQUIPMENT AT THE OASIS SENIOR CENTER THIS CONTRACT is made and entered into as of this d3"dday of r cLr IL� 2010, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City ( "City "), and TECHNOGYM USA CORPORATION a Washington corporation, whose principal place of business is 830 Fourth Avenue South, #300, Seattle, WA 98134 ( "Contractor "), 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 issued a request for proposals (RFP) for the purchase and installation of fitness equipment specific to the senior population for the new Oasis Senior Center. C. City desires to engage Contractor for the purchase, installation and maintenance of fitness equipment ( "Equipment'). Contractor has agreed to deliver, set -up and service the fitness equipment the week of August 2, 2010 ('Project'). D. Contractor has examined the plans of all proposed work, 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 The term of this Agreement shall commence on the above written date, and shall terminate on the 315t day of August 2012, unless terminated earlier as set forth herein. 2. SCOPE OF WORK Contractor shall perform all the services described in the Proposal attached hereto as Exhibit A and incorporated herein by this reference. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality. 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. Contractor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. , 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and Contractor shall complete the Work within the time set forth in this Section. The failure by Contractor to meet this deadline may result in termination of this Agreement by City. Contractor has agreed to deliver, set -up and service fitness equipment the week of August 2, 2010. One Half Day Training shall be provided to City staff upon completion of installation. Equipment service shall be provided in accordance with the schedule outlined in the Proposal attached as Exhibit A. 3.1 The parties agree that it is extremely difficult and impractical to determine and fix the actual damages that City will sustain should the Contractor fail to complete the Project within the time allowed. Should Contractor fail to complete the work called for in this Agreement on the date outlined above, Contractor agrees to the deduction of liquidated damages in the sum of One Hundred Dollars and no /100 ($100.00) for each calendar day beyond the date scheduled for completion provided in Section 2 of this Agreement assuming that the Contractor has access to the space the week of August 2, 2010 as described herein. Execution of this Agreement shall constitute agreement by the City and Contractor that One Hundred Dollars and no /100 ($100.00) per calendar day is the minimum value of the costs and actual damage caused by the failure of the Contractor to complete the work within the allotted time. Such sum is liquidated damages and shall not be construed as a penalty, and may be deducted from payments due the Contractor if such delay occurs. 4. COMPENSATION As full compensation for the equipment, delivery, installation and applicable sales tax for completion of the Project as required by the Scope of Work, City shall pay to Contractor and Contractor accepts as full payment the sum of One Hundred and Fifty -Seven .Thousand Twenty Six Dollars and Forty -Three Cents ($157,026.43) ( "Contract Price ") and will be paid to the Contractor no later than thirty (30) days after delivery of fitness equipment. Contractor shall not receive any additional compensation unless approved in advance by the City in writing.. TECHNOGYM USA COPORATION 2 5. ADMINISTRATION This Agreement will be administered by the Recreation & Senior Services Department. CELESTE JARDINE -HAUG 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. 6. TYPE AND INSTALLATION OF MATERIALS /STANDARD OF CARE 6.1 Contractor 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 installed unless approved in advance by the Project Administrator. 6.2 All of the services shall be performed by Contractor or under Contractor's supervision. Contractor 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 community 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 Contractor's performance of the services required hereunder; or for damage to property from any cause arising from the performance of the Project by Contractor, or its subconcontractors, or its workers, or anyone employed by either of them. 7.2 Contractor 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 Contractor's work on the Project, or the work of any subcontractor or supplier selected by the Contractor. 7.3 Contractor shall indemnify, hold harmless, and defend City, its officers and employees from and against: (1) any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damage, or any other claims arising from any and all acts or omissions of Contractor, its employees, agents or subcontractors in the performance of services or work conducted or performed pursuant to this Agreement; (2) use of improper materials in performing this Project including, without limitation, defects in TECHNOGYM USA COPORATION workmanship or materials and /or design defects; and /or (3) any and all claims asserted by Contractor's subconcontractors or suppliers on the Project, and shall include reasonable attorneys' fees and all other costs incurred in defending any such claim. However, nothing herein shall require Contractor to indemnify City from the sole negligence or willful misconduct of City, ifs officers or employees. 7.4 Contractor 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. Contractor 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 Contractor 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 Nothing in this section shall be construed as authorizing any award of attorney's fees in any action to enforce the terms of this Agreement, except to the extent provided in Section 6.3 above. 7.7 The rights and obligations set forth in this Section shall survive the termination of this Contract. 8. INDEPENDENT CONTRACTOR City has retained Contractor as an independent contractor and neither Contractor nor its employees are to be considered employees of the City. The manner and means of conducting the work are under the control of Contractor, 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 Contractor or its employees. 9. COOPERATION Contractor 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 Contractor on the Project. 10. INSURANCE Without limiting Contractor's indemnification of City, and prior to commencement of work. Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk TECHNOGYM USA COPORATION 4 Manager prior to commencement of performance or issuance of any permit or performance of any work. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. Workers' Compensation Coverage. Contractor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. ii. General Liability Coveraqe. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor 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 for each occurrence. TECHNOGYM USA COPORATION 5 E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Contractor's performance under this Contract. G. Additional Insurance. Contractor 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. SUBCONTRACTING City and Contractor agree that subcontractors may be used to complete the work outlined in the Scope of Services provided the Contractor obtains City approval prior to the subcontractor performing any work. Contractor shall be fully responsible to City for TECHNOGYM USA COPORATION 6 all acts and omissions of the subcontractors. Nothing in this Contract 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. 12. WITHHOLDINGS City may withhold payment to Contractor 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 Contract. Contractor shall not discontinue work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Contractor 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. 13. CONFLICTS OF INTEREST The Contractor 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 Contract, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Contract by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 14. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Contractor 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 Contractor to City shall be addressed to City at: Attn: Celeste Jardine -Haug Recreation & senior Services Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949- 644 -3247 Fax: 949 - 640 -7364 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: TECHNOGYM USA COPORATION Attn:Brian Greene TECHNOGYM USA CORPORATION 830 Fourth Avenue South, #300 Seattle, WA 98134 Phone: 800 - 804 -0952 Fax: 484 - 733 -4712 15. 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 Contractor. In the event of termination under this Section, City shall pay Contractor for services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all materials purchased in performance of this Agreement. 16. COMPLIANCE WITH ALL LAWS Contractor 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. 17. 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. 18. 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. The terms of this Agreement shall control and preempt any conflict in terms between this Agreement and the terms set forth in Exhibit A. TECHNOGYM USA COPORATION 19. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services, the terms of this Agreement shall govern. 20. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 21. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Agreement by Contractor is a representation that Contractor has reviewed the CAAD drawings of the Fitness Center, has become familiar with the local conditions under which the work is to be performed, and has taken into consideration these factors in submitting its Project Proposal and Scope of Work. 22. 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. 23. 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. 24. WARRANTY Contractor agrees to the delivery, set -up and service of fitness equipment pursuant to this Agreement as outlined in the TECHNOGYM CUSTOMER AGREEMENT attached as Exhibit B. 25. SERVICE OF FITNESS EQUIPMENT Contractor agrees to three (3) preventative maintenance visits per year for cardio equipment and two (2) preventative maintenance visits per year for strength equipment for two (2) years at no charge as noted in comment section of Exhibit A. TECHNOGYM USA COPORATION IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: By: nett ou amp Assistant City' orney ATTEST: By: Leilani Brown, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation Keith D. Curry Mayor CONTRACTOR: TECHNOGYM USA CORPORATION By: Name: Title: By: Name: Title: Attachments: Exhibit A — TECHNOGYM USA Proposal Exhibit B — Service Components Warranty Exhibit C — Training / Delivery Information Exhibit D — Certificate of Liability Insurance from TECHNOGYM f: \temp100 rss contractsltechnogym.docx TECHNOGYM USA COPORATION 10 t GL C �r� f i1 A TECHNOGYM USA Toll Free: (800) 804-0952 PROPOSAL 830 Fourth Avenue S Office: (206) 623 -1A88 Suite 300 eFax: (484) 733 -4712 Seattle, WA 98134 Date 03/05/10 www.technogymusa.com email: info @technogymusa.com Proposal #: 00970047 Customer #: Bill To: Ship To: City of Newport Beach OASIS Senior Center City of Newport Beach OASIS Senior Center 800 Marguerite Avenue 800 Marguerite Avenue Newport Beach, CA 92625 Newport Beach, CA 92625 Celeste Jardine -Haug Celeste Jardine -Haug +1 949 6443244 +1 949 6443247 Requested Delivery Date: Payment Terms 08/02/10 Net 30 P.O. Number: RSD: Steven Be Cotte Quantity Item Description Unit Price Amount 7 DAK3UCIALOOGAOOU Excite Run Jog 700 Visio - Visio - iPod +USB - 8,095.00 56,665.00 Silver - Flint Grey 3 DA533CIALOOGAOOU Synchro Excite 700 WTV - Powered - Visio - 7,895.00 23,685.00 iPOd +USB - Silver - Flint Grey 1 DA983CIALOOGAOOU Cardio Wave 700 - Powered - Visio - iPod +USB - 7,695.00 7,695.00 Silver - Flint Grey 3 DAD73CIALMOGA000 Recline Excite 700 - Powered - Visio - iPod +USB 5,395.00 16,185.00 - Silver - Flint Grey - Bordeaux 2 DAC73CIALMOGAOOU Bike Excite 700 - Powered - Visio - iPod +USB - 5,195.00 10,390.00 Silver - Flint Grey - Bordeaux 1 DA773LNALOOGOUSU Tap Excite 700 - Powered - LED - None - Silver - 5,195.00 5,195.00 Flint Grey 1 A0000368 -M ERGO SEAT w /out Back Rest - Bordeaux 550.00 550.00 Upholstery 1 MB203CO- ALMOGGJL Element + Chest Press - Silver Frame Color - 2,795.00 2,795.00 Bordeaux Upholstery Color - iPac Guard Color This PROPOSAL becomes a valid PURCHASE ORDER with authorized signature, signed Terms and Conditions of Sale, and applicable deposit received at our corporate office (See address listed above). DELIVERY 9-12 weeks after receipt of valid PURCHASE ORDER. For product procurement reasons and logistics planning, the agreed payment terms survive any modification in delivery date. Freight and Installation charges are an estimate and may be subject to change based upon location specifications. DELAYS IN DELIVERY AT CUSTOMER REQUEST MAY RESULT IN STORAGE FEES PRICING valid for 30 days Authorized Signature Date Page 1 of 3 TECHNOGYM USA Toll Free: (800) 804-0952 PROPOSAL 830 Fourth Avenue S Office: (206) 623 -1488 Suite 300 eFax: (484) 733 -4712 Seattle, WA 98134 Date 03/05/10 www.technogymusa.com email: info@technogymusa.com Proposal #: 00970047 Customer #: 1 MB703CO- ALMOGGJL Element + Pectoral - Silver Frame Color - 2,795.00 2,795.00 Bordeaux Upholstery Color - iPac Guard Color 1 MB252CO- ALMOGGJL Element + Vertical Traction - Silver Frame Color 2,795.00 2,795.00 - Bordeaux Upholstery Color - iPac Guard Color 1 MB602CO- ALMOGGJL Element + Arm Extension - Silver Frame Color - 2,695.00 2,695.00 Bordeaux Upholstery Color - iPac Guard Color 1 MB552CO- ALMOGGJL Element + Arm Curl - Silver Frame Color - 2,695.00 2,695.00 Bordeaux Upholstery Color - pac Guard Color 1 M96730 -ALML Selection Multi Hip - Silver Frame Color - 3,695.00 3,695.00 Bordeaux Seat Color 1 MB953CO- ALMOGGJL Element + Low Row - Silver Frame Color - 2,695.00 2,695.00 Bordeaux Upholstery Color - pac Guard Color 1 MBSOONO- ALMOGGJL Element + Seated Leg Press - Silver Frame Color 4,995.00 4,995.00 - - Bordeaux Upholstery Color - iPac Guard Color 1 MB302CO- ALMOGGJL Element + Seated Leg Extension ROM - Silver 2,695.00 2,695.00 Frame Color - Bordeaux Upholstery Color - iPac Guard Color 1 MB352CO- ALMOGGJL Element + Seated Leg Curl ROM - Silver Frame 2,695.00 2,695.00 Color - Bordeaux Upholstery Color - iPac Guard Color 1 MB450O0- ALMOGGJL Element + Lower Back - Silver Frame Color - 2,695.00 2,695.00 Bordeaux Upholstery Color - iPac Guard Color 1 MB65000- ALMOGGJL Element + Abdominal Crunch - Silver Frame 2,695.00 2,695.00 Color - Bordeaux Upholstery Color - iPac Guard Color This PROPOSAL becomes a valid PURCHASE ORDER with authorized signature, signed Terms and Conditions of Sale, and applicable deposit received at our corporate office (See address listed above). DELIVERY 9 -12 weeks after receipt of valid PURCHASE ORDER. For product procurement reasons and logistics planning, the agreed payment terms survive any modification in delivery date. Freight and Installation charges are an estimate and may be subject to change based upon location specifications. DELAYS IN DELIVERY AT CUSTOMER REQUEST MAY RESULT IN STORAGE FEES PRICING valid for 30 days Authorized Signature Date Page 2 of 3 TECHNOGYM USA Toll Free: (800) 804-0952 3,595.00 PROPOSAL 830 Fourth Avenue S Office: (206) 623 -1488 Suite 300 eFax: (484) 733 -4712 845.00 845.00 Seattle, WA 98134 - Bordeaux Upholstery Color Date 03/05/10 www.technogymusa.com email: info@technogymum.com Proposal #: 00970047 1 ME05- ALMOGGOO FLEXibility - Anterior (Q1P) - Silver Frame Color - Customer #: 1,995.00 1 M95030 -ALML Selection Rotary Torso - Silver Frame Color - 3,595.00 3,595.00 Bordeaux Seat Color 1 PA04- ALMOGG Element + Adjustable Bench - Silver Frame Color 845.00 845.00 - - Bordeaux Upholstery Color 1 M5800- AN19GZ Kinesis - Kl - Aluminum /Black Wall Color 12,450.00 12,450.00 1 ME05- ALMOGGOO FLEXibility - Anterior (Q1P) - Silver Frame Color - 1,995.00 1,995.00 Bordeaux Seat Color 1 ME10- ALMOGG00 FLEXibility - Posterior (Q1P) - Silver Frame Color 2,995.00 2,995.00 - Bordeaux Seat Color Comment(s): 3 PM Visits per year for cardio for 2 years /no charge 2 PM Visits per year for Strength for 2 years /no charge Quote Subtotal 178,185.00 USD Discount - 48,196.01 USD Transport and Installation 15,663.39 USD Sales Tax @ 8.75% $11,374.04 USD Quote Total 157,026.43 USD Sales tax amount subject to change based on rate at invoicing. This PROPOSAL becomes a valid PURCHASE ORDER with authorized signature, signed Terms and Conditions of Sale, and applicable deposit received at our corporate office (See address listed above). DELIVERY 942 weeks after receipt of valid PURCHASE ORDER. For product procurement reasons and logistics planning, the agreed payment terms survive any modification in delivery date. Freight and Installation charges are an estimate and may be subject to change based upon location specifications. DELAYS IN DELIVERY AT CUSTOMER REQUEST MAY RESULT IN STORAGE FEES PRICING valid for 30 days Authorized Signature Date Page 3 of 3 Exhibit- B Service Component Warranty i Technogym warrants that all products purchased by the City of Newport Beach shall be ( new, free from defects in material, workmanship and design, and shall conform to all 1 applicable safety specifications of the country in which they will be installed. 1 Products are covered by service warranty as stated below- Manufacturer Warranty. All 1 warranted parts would be original and installed by a qualified technician at no charge 6 during the specified warranty period. WARRANTY TERMS (Limited to the original owner only) PRODUCT LABOR PARTS SPECIFICATIONS 10 Yrs. Structural Frame - Coatings Excluded- Weight Stacks and Welded Moving Parts- SELECTION l Yr. 3 Yrs. Guide Rods, Cams and Pulleys 2Yrs. Rotating Bearings, Bushings and Linear Bearings. 6 months W & T: Cables, Upholstery, Springs, Handgrips, Plastic parts and other parts not listed. 10 Yrs. Structural Fra me- Coatings Excluded- Weight Stacks and Welded Moving Parts. ELEMENT 1 Yr. 3 Yrs. Guide Rods, Cams and Pulleys 2 Yrs. Rotating Bearings, Bushings and Linear Bearings. 6 months I W & T: Cables, Upholstery, Springs, Handgrips, Plastic parts and other parts not listed. 10 Yrs. Structural Frame -No paint. (Limited to the original owner only) KINESIS 1 Yr. 3 Yrs. Guide Rods, Cams and Pulleys 2 Yrs. Rotating Bearings, Bushings and Linear Bearings. 6 months W & T: Cables, Upholstery, Springs, Handgrips, Wood Panels, Plastic parts and other parts not listed. 10 Yrs. Structural Frame - Coatings Excluded- and Welded Moving Parts. EXCITE TREADMILLS 1Yr. 5Yrs. Motor and Shock absorbers. 2 Yrs Rotating Bearings, Linear Bearings, Elevation Motor, Electric and Electronic parts. 2 Yrs. or 15,000 miles whichever is first, on Deck and Running belt 6 months W & T: Handgrips, Displays, Plastic parts and other parts not listed. 10 Yrs. Structural Frame -CoatingsExcluded- JOGTREADMILLS 1Yr. 5Yrs. Motor and Shock absorbers. 2 Yrs. Rotating Bearings, Linear Bearings, Elevation Motor, Electricand Electronic parts. 2 Yrs. or 15,000 miles whichever is first, on Deck and Running belt 6 months W & T: Handgrips, Displays, Plastic parts and other parts not listed. 10 Yrs. Structural Frame -CoatingsExcluded- EXCITE ERGOMETERS 1 Yr. 3 Yrs. Pedals, Footplates, Arms and Other Welded Moving parts. 2Yrs. Rotating Bearings, Linear Bearings, Alternators, Electric and Electronic parts. 6 months W &T: Chain, Upholstery, Handgrips, Displays, Plastic parts and other parts not listed. N SCREENS S Yr. 2 Yrs. Touch Screen, Wed reader, Smartkey reader, Electric and Electronic parts. 6 months W &T: External wires, Plastic parts and other parts not listed. 10 Yrs. StructuralFrame -CoatingsExcluded- WARRANTY TERMS SPECIFICATION Products are warranted from the date of installation and for the above specified duration. The Operational Certificate signed by the customer will start the Warranty Terms. Breakages due to misuse or attributable to voluntary action will he excluded. All warranted parts would be installed by a qualified technician at no charge during the "labor Warrants' period. Support Hours are 7:30am to 4:30pm PST Monday to Friday, except for public and company holidays. Atwo -hour max- return response is offered during the weekend by phone or Email. On -site support: If service by telephone is impossible for technical reasons, support will be provided on the facility's premis €s within the following 24 to 72 hours dependent upon time of call and time zone location. Warranty repairs for special (custom) painted equipment frame or special (custom) color of upholstery is confirmed in a mse by case base and is provided with the shortest time possible depending on manufacturing availability. Customer is responsible for normal preventative maintenance, a schedule of which is provided at the time of installation. Failure to comply with the preventative maintenance schedule could result in an increase of breakage due to misuse. Preventative Maintenance The installed facility will be responsible for normal preventative maintenance, a schedule of which will be provided together with the equipment at time of installation. Technogym will set up a City of Newport Beach account in its Service Intranet to interact with the maintenance personnel of the installed facilities. In addition, Technogym will enable mytechnogym.com for use as a support tool for preventative maintenance for all City of Newport Beach Technogym installations. Additional preventative maintenance is not recommended for this facility but is vailable upon request Technical Service Technogym will provide City of Newport Beach installed facilities Technical Support Service as follow: Assisted support hours. Support is available from 7 :30am to 4:30pm PST Monday to Friday, except for public and company holidays. A two -hour maximum return response is offered during the weekend by phone or Email. On -site support. If service by telephone is impossible for technical reasons, support will be provided on the facility's premises within the following 24 to 72 hours dependent upon time of call and time zone location. To place a service call you may contact Technical Support by phone at 1- 800 - 804 -0952 or by email at technicalsupport@technogymusa.com. Parts. We have an on hand parts inventory of over $1,000,000 in our warehouse in Seattle. All parts will be shipped next day air. EXHIBIT C TRAINING / DELIVERY INFORMATION TRAINING — Upon set -up of TECHNOGYM Fitness Equipment, the City of Newport Beach will receive one half day of onsite training by a local TECHNOGYM Representative. In addition, the City of Newport Beach Senior Center staff will be granted access to the TECHNOGYM Wellness Institute online training modules. DELIVERY — TECHNOGYM will deliver fitness equipment the week of August 2, 2010. 1 L lit kt+- Tj rorr Tn 949n7 ACORD,N CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDD/YYYY) 2/19/2010 PRODUCER Aon Private Risk Management - Atlanta 3565 Piedmont Road Suite 700 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Atlanta GA 30305 POLICY NUMBER POLICYEFFECTIVE GATE MMIDD (404) 264 -3225 INSURERS AFFORDING COVERAGE NAIC # INSURED INSURERA: Twin City Fire Insurance Compa 29459 INSURERS: Sentinel Insurance Company Ltd 11000 Technogym USA Corp. INSURERC: Insurance Com an of State of 19429 830 Fourth Avenue South MED EXP (Anyone person ) $ 10,000 Seattle WA 98134 INSURER D: CLAIMS MADE FX OCCUR INSURER E: $ 1,000,000 V V V LI \I"1 V V v THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR D' POLICY NUMBER POLICYEFFECTIVE GATE MMIDD POLICY EXPIRATION MM D LIMITS C GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY GL2264391 1/1/2010 1/1/2011 EACH OCCURRENCE $ 5 1000,000 PREMSES Ea olccurence $ 100,000 MED EXP (Anyone person ) $ 10,000 CLAIMS MADE FX OCCUR PERSONAL &ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 5,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP /OP ASS $ 51000,000 X POLICY D PRO I LOC E AUTOMOBILE LIABILITY ANY AUTO 13UECDO3176 9/11/2009 9/11/2010 COMBINED SINGLE LIMIT (Ea accident) 1,000,000 1,000,000 X ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per person) $ BODILY INJURY (Per accitlenQ $ HIRED AUTOS NON -OWNED AUTOS PROPERTY DAMAGE (Perawdent) $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ ANY AUTO $ AUTO ONLY: AGO EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE $ AGGREGATE $ OCCUR F7 CLAIMS MADE $ DEDUCTIBLE $ RETENTION $ A WORKERS COMPENSATION AND 13WECII7281 3/28/2009 3/28/2010 X 7 WC STATU- OTH- E.L. EACH ACCIDENT $ 1,000,000 EMPLOYERS'LIABILITY ANY PROPRIETORrPARTNERIEXECUTIVE OFPICERIMEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ 1,000,000 EL DISEASE - POLICY LIMIT $ 1,000,000 If yes, describe under SPECIAL PROVISIONS below OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS Cancellation Provision shown herein is subject to shorter or longer time periods depending on the jurisdiction of, and reason for, the cancellation. Evidence of Coverage City of Newport Beach OASIS Senior Center 800 Marguerite Ave Corona Del Mar CA 92625 25 (20011081 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVE �4" © ACORD CORPORATION 1988 2/19 /2010 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. (2001/081