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HomeMy WebLinkAbout09 - Traffic Signal Modernization ProjectCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 9 June 23, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Brad Sommers 949 -644 -3326 or bsommers @city.newport- beach.ca.us SUBJECT: Traffic Signal Modernization Project - Approval of Amendment 1 to the Purchase Contract with Econolite Control Products, Inc. RECOMMENDATION: Approve Amendment No. 1 to the Phase 1 Purchase Contract with Econolite Control Products, Inc. of Anaheim, California, for purchase and installation of advanced traffic signal management equipment for Phases 2 and 3 of the Traffic Signal Modernization Project, at a not to exceed price of $307,337.70 and authorize the Mayor and City Clerk to execute the Agreement. DISCUSSION: On March 23, 2008, the City entered into an agreement with Econolite, Inc. to provide equipment, services, and Econolite Icons Traffic Management Software as part of the first phase of the Traffic Signal Modernization Project. The project included procurement and installation of an Econolite Icons Traffic Management System, computer equipment, Econolite traffic signal control equipment, Ethernet communication equipment and Closed Circuit Television (CCTV) equipment. During the initial design of the Citywide Traffic Signal Moderization project, staff completed a selection process to determine the best qualified vendor for the traffic signal controller hardware and software. Staff interviewed each vendor and completed an extensive evaluation of the products and services of seven different manufacturers and suppliers of traffic control equipment. Staff reviewed each firm's qualifications, past experience on similar projects, and availability before selecting Econolite as the best qualified firm to provide the hardware and software for our City -wide Traffic Signal Modernization project. Upon selection, staff negotiated with Econolite to provide the necessary equipment and services for our Phase One project for a fee of $584,610. Phase One is now complete and we are now proceeding to construct Phases Two and Phase Three. Traffic Signal Modernization— Approval of Amendment 1 Purchase Contract with Econolite Control Products, Inc. June 23, 2009 Page 2 Phases Two and Three have been combined to expedite construction. These Phases include installation of fiber optic communications, 13 CCTV cameras, and new traffic signal control equipment at 27 existing signalized intersections along the Jamboree Road Corridor (Phase 2) and within the Airport Area (Phase 2). Econolite, Inc. has prepared a proposal to provide advanced traffic management equipment and installation necessary to upgrade the traffic signals to be compatible with the recently - completed Traffic Management Center and Econolite Icons Traffic Management Software. The Econolite Proposal has provisions for the following: 1. Furnish 29 Econolite ASC /3 Advanced Traffic Signal Controllers (includes two spare controllers); 2. Furnish Econolite Traffic Signal Management Equipment; 3. Furnish six Traffic Signal Control Cabinets for intersection requiring replacement; 4. Provide installation and modification labor for provided Econolite Equipment; 5. Provide support to City Staff for the integration of the modernized intersections; 6. Provide an additional five CCTV licenses for the Icons Traffic Management Software. The Econolite Icons traffic management system requires Econolite traffic signal control equipment, such as the Econolite ASC /3 traffic signal controllers, to operate efficiently and access the system's utilities. As Econolite has been selected as the vendor for these products, staff will continue to purchase equipment directly from Econolite to buildout and maintain the system. On April 14, 2009 the City entered into a contract with CT &F, Inc. to construct the fiber optic infrastructure for the project. A second contract, the contract amendment with Econolite, Inc., will furnish and install traffic signal control equipment. A final purchase contract will procure Ethernet communication equipment. A vendor for this service has not yet been chosen. Environmental Review: Categorically Exempt under Chapter 3, Article 19, Section 15301, Class 1 (c) of the Title 14 California Code of Regulations. This exemption covers maintenance, repair, and upgrades of existing traffic signal facilities. Traffic Signal Modernization — Approval of Amendment 1 Purchase Contract with Econol@e Control Products, Inc. June 23, 2009 Page 3 Funding Availability: There are sufficient funds available in the following accounts for the project: Account Description Account Number Amount Measure M Turnback 7281- C3002002 $ 307,337.70 Prepared by: Brad Sommers Senior Civil En neer Attachment: Purchase Contract Total: $ 307,337.70 ECONOLITE CONTROL PRODUCTS, INC. 3360 East La Palma Avenue Anaheim, CA 92806 Tel (714) 630 -3700 FAX (714) 630 -5120 Proposal Date: May 26, 2009 To: City of Newport Beach Attn: Brad Sommers From: Gina Prohaska Email: gprohaska0econolite.com Re: City of Newport Beach Traffic Signal Modernization Project Phase 2 and 3. Proposal based on field review We are offering the following products at prices and conditions set forth on this form. Item Qty Description Unit Price Extended Price '1 `Option: Icons System Integration (1 $9700.00 $9700.00 week of system integration) The standard charge for Integration services is $185 per hour. For the requested quote for up to one week of optional integration support, this would come to $7400. Any travel required would come to a flat fee of $2300 including airfare, food, lodging and ground transportation. Should a remote connection be provided by the City whereby our support team can perform their services from the Colorado Springs office, the travel cost can be eliminated. 24 ASC /3 -2100 Controllers with 110VAC, Data $2,380.00 $57,120.00 Key and Ethernet Module Part Number: ASC321010100000 4 ASC13 Programming Manual $42.00 $168.00 ASC13 Operations Manual 6 ASC13RM Controllers with C1 Series, 110 $2,633.00 $15,798.00 VAC, Data Key and Ethernet Module Part Number ASC3RM21110100000 Locations: Jamboree & Bristol Street South Jamboree & Bristol Street North Bristol Street & North Bristol Street & South Bayview Place & Bristol South 17 Field Modification Equipment to existing $2,468.00 $41,956.00 NEMA traffic signal cabinets per City furnished list (As done in Phase 1 of project) to include: MMU, D panel, Connecting cables, Filtered Convenience Outlet, Terminal Block and Telephone Brackets, Ped Isolation boards, Push button switches, Door switch brackets, SDLC cable from ASC /3 to MMU and resistor panel assembly for pedestrian yellows Locations: Jamboree and Island Lagoon Drive Jamboree and Santa Barbara Drive Jamboree and San Joaquin Hills Road Jamboree and Ford Road Jamboree and Bison Avenue Jamboree and University Drive Jamboree and Bayview Way Jamboree and MacArthur Blvd Santa Barbara and San Clemente Drive Bison Avenue and Country Club Bison Avenue and Bayswater MacArthur Blvd and Newport Place MacArthur Blvd and Birch Street Campus Drive and Airport Way Campus Drive and Quail Street Birch Street and Dove Street Bayview Place and Bayview Circle 5A 17 Field Modification Labor for Nema locations $1,600.00 $27,200.00 noted in line item #5 (Work to be accomplished at night) Hourly labor rate $200.00 x 8 hours per location. 6 5 Field Modification Equipment to existing 170 $1454.00 $7270.00 traffic signal cabinets per City furnished list (As done in Phase 1 of project) Furnishing of ancillary traffic signal equipment such as 2010 EDI Monitor, Telephone Block and Bracket, 16 channel Red Monitor kit, Push Button Switch, including Output file as required Locations: Jamboree and Bristol Street South Jamboree and Bristol Street North Birch Street and Bristol Street North Birch Street and Bristol Street South Bristol Street and Bayview Circle 6A 5 Field Modification Labor for 170 locations $1200.00 $6000.00 noted in line item# 6 (Work to be accomplished at night) Hourly labor rate $200.00 x 6 hours per location. 7 1 Jamboree and BackBa Dv rive Type P $19,232.00 $19,232.00 Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built, per City of Newport Beach cabinet specification, minus installation 8 1 Bison Avenue and Camelback Street $18,66100 $18,663.00 Type P Cabinet minus ASC/3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 9 1 Birch Street and Quail Street $18,982.00 $18,982.00 Type P Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 10 1 Campus Drive and Bristol Street North Type $21,403.00 $21,403.00 O Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 11 1 Irvine Avenue and Bristol St. South $20,464.00 $20,464.00 Type O Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 12 1 Jamboree and Bawiew Way $18,213.00 $18,213.00 Type P Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation. Standard two channel detectors provided. Detectors with timing not included per plan Grand Total including line optional line $282,169.00 item #1 Tax 8.75 %on equipment only $20,936.16 Sub -Total with Tax: $303,105.16 Bond (1.5% flat based on pre -tax Total): $4,232.54 Grand Total: $307,337.70 Taxes: Not Included Gina Prohaska F.O.B.: Anaheim Account Manager Terms: Net 30 Delivery: 4 weeks for ASC /3 Controllers, 6 weeks upon receipt of order for field modifications, 12 weeks for cabinets with two additional weeks for outside test. Valid For: 30 Days Freight: Prepaid AMENDMENT NO. 1 TO CONTRACT WITH ECONOLITE CONTROL PRODUCTS, INC. FOR PURCHASE, INSTALLATION AND REPAIR SERVICES OF ICONS ®ADVANCED TRAFFIC MANAGEMENT SYSTEM FOR TRAFFIC SIGNAL MODERNIZATION PROJECT THIS AMENDMENT NO. 1 TO CONTRACT is made and entered into as of this _ day of June, 2009, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City ( "City "), and ECONOLITE CONTROL PRODUCTS, INC., whose principal place of business is 3360 E. La Palma Ave., Anaheim, CA 92806, ( "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 entered into Agreement on February 14, 2008 for the purchase and installation of software and equipment for advanced traffic management at 22 intersections within the City ( "Agreement "). C. Under the Agreement, the City agreed to pay Contractor an amount not to exceed $584,669.12 to perform Phase One of the Project. D. City desires to perform Phase Two and Three of its Traffic Signal Modernization project which will upgrade traffic signal control equipment at 27 existing signalized intersections, install 13 Closed Circuit Television (CCTV) cameras, and install fiber optic communications along the Jamboree Road Corridor and the Airport Area, connecting the upgraded intersections to the recently - complete Traffic Management Center (TMC) at City Hall. ( "Project'). E. City desires to enter into this "AMENDMENT NO. 1" to reflect additional services and equipment required for City to complete Phase Two and Three of the Traffic Signal Modernization project ( "Project "). F. City and Contractor have not entered into any separate amendments to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall extend to June 30, 2010 unless terminated earlier as set forth herein. 2. SCOPE OF WORK Consultant shall diligently deliver all equipment and perform all the services described in the Agreement and the Scope of Services attached hereto as Exhibit A. 3. COMPENSATION As full compensation due Consultant for all equipment purchased and services performed pursuant to this "Amendment No. 1," and the scope of services/ billing rates attached hereto as Exhibit A, including all reimbursable items and subconsultant fees, shall be Three Hundred Seven Thousand Dollars Three Hundred Thirty Seven and 70/100 ($307,337.70)). Contractor shall not receive any additional compensation unless approved in advance by the City in writing. The City shall make progress payments as the Project work proceeds based on the percentage of Project work completed. City shall pay Contractor no later than thirty (30) days after approval of the monthly invoice by City staff. Notwithstanding any other provision of this Agreement, when payments made by City equal 90% of the maximum amount provided for in this Agreement, no further payments shall be made until City has accepted the final work under this Agreement. 4. BONDING Contractor shall obtain, provide and maintain at its own expense during the term of this Contract: a Labor and Materials Payment Bond in the amount of one hundred percent (100 %) of the total amount to be paid Contractor as set forth in this Agreement and in the form attached hereto as Exhibit B which is incorporated herein by this reference; and a Faithful Performance Bond in the amount of one hundred percent (100 %) of the total amount to be paid Contractor as set forth in this Agreement in the form attached hereto as Exhibit C which is incorporated herein by this reference. The Labor and Materials Payment Bond and Faithful Performance Bond shall be issued by an insurance organization or surety (1) currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, (2) listed as an acceptable surety in the latest revision of the Federal Register Circular 570, and (3) assigned a Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide: Property - Casualty. The Contractor shall deliver, concurrently with execution of this Agreement, the Labor and Materials Payment Bond and Faithful Performance Bond, a certified copy of the "Certificate of Authority" of the Insurer or Surety issued by the 2 Insurance Commissioner, which authorizes the Insurer or Surety to transact surety insurance in the State of California. 5. 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, requires or approval from Contractor to City shall be addressed to City at: Attn: Brad Sommers Public Works Department City of Newport Beach 3300 Newport Blvd. P.O. Box 1768 Newport Beach, CA 92658 -8915 Ph: (949) 644 -3326 Fax: (949) 644 -3318 bsommersCilcitv.newoort-beach ca us All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Roy Howard Econolite Control Products, Inc. 3360 E. La Palma Ave. Anaheim, CA 92806 Ph: (719) 471 -9866 ext. 352 Fax: (719) 471 -9063 Rhoward(@econolite.com 6. OTHER MATTERS Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect, Agreement is attached hereto as Exhibit D. 3 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: yne e h mp Assistant Cit ttorney ATTEST: Leilani Brown, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation Edward D. Selich, Mayor ECONOLITE CONTROL PRODUCTS, INC. By: Name: Jeff P. Spinazze Title: Senior Vice President Name: Brian Martin Title: Assistant Secretary Attachments: Exhibit A —Scope of Services/ Billing Rates Exhibit B— Labor and Materials Payment Bond Exhibit C— Faithful Performance Bond Exhibit D-- Original Agreement I ECONOLITE CONTROL PRODUCTS, INC. 3360 East La Palma Avenue Anaheim, CA 92606 Tel (714) 630 -3700 FAX (714) 630 -5120 Proposal Date: May 26, 2009 To: City of Newport Beach Attn: Brad Sommers From: Gina Prohaska Email: pprohaska0econolite.com Re: City of Newport Beach Traffic Signal Modernization Project Phase 2 and 3. Proposal based on field review We are offering the following products at prices and conditions set forth on this form. Item Ofty Description Pnit Price Extended Price `1 *Option: Icons System Integration (1 $9700.00 $9700.00 week of system integration) The standard charge for integration services Is $185 per hour. For the requested quote for up to one week of optional integration support, this would come to $7400. Any travel required would come to a flat fee of $2300 Including airfare, food, lodging and ground transportation. Should a remote connection be provided by the City whereby our support team can perform their services from the Colorado Springs office, the travel cost can be eliminated. 2 24 ASC /3 -2100 Controllers with 110VAC, Data $2,380.00 $57,120.00 Key and Ethernet Module Part Number: ASC321010100000 3 4 ASC/3 Programming Manual $42.00 $168.00 ASC /3 Operations Manual 4 6 ASC/3RM Controllers with C1 Series, 110 $2,633.00 $15,798.00 VAC, Data Key and Ethernet Module Part Number ASC3RM21110100000 Locations: Jamboree & Bristol Street South Jamboree & Bristol Street North Bristol Street & North Bristol Street & South Bayview Place & Bristol South 5 17 Field Modification Equipment to existing $2,468.00 $41,956.00 NEMA traffic signal cabinets per City furnished list (As done in Phase t of project) to include: MMU, D panel, Connecting cables, Filtered Convenience Outlet, Terminal Block and Telephone Brackets, Ped Isolation boards, Push button switches, Door switch brackets, SDLC cable from ASC /3 to MMU and resistor panel assembly for pedestrian yellows Locations: Jamboree and Island Lagoon Drive Jamboree and Santa Barbara Drive Jamboree and San Joaquin Hills Road Jamboree and Ford Road Jamboree and Bison Avenue Jamboree and University Drive Jamboree and Bayview Way Jamboree and MacArthur Blvd Santa Barbara and San Clemente Drive Bison Avenue and Country Club Bison Avenue and Bayswater MacArthur Blvd and Newport Place MacArthur Blvd and Birch Street Campus Drive and Airport Way Campus Drive and Quail Street Birch Street and Dove Street Bayview Place and Bayview Circle 5A 17 Field Modification Labor for Nema locations noted in line item #5 (Work to be accomplished at night) Hourly labor rate $200.00 x 8 hours per location. 6 5 Field Modification Equipment to existing 170 traffic signal cabinets per City furnished list (As done in Phase 1 of project) Furnishing of ancillary traffic signal equipment such as 2010 ED[ Monitor, Telephone Block and Bracket, 16 channel Red Monitor kit, Push Button Switch, including Output file as required Locations: Jamboree and Bristol Street South Jamboree and Bristol Street North Birch Street and Bristol Street North Birch Street and Bristol Street South Bristol Street and Bayview Circle 6A 5 Field Modification Labor for 170 locations noted in line item# 6 (Work to be accomplished at night) Hourly labor rate $200.00 x 6 hours per location. 7 1 Jamboree and BackBav Drive Type P Cabinet minus ASC/3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation $1,600.00 $1454.00 $1200.00 $19,232.00 $27,200.00 $7270.00 $6000.00 $19,232.00 8 1 Bison Avenue and Camelback Street $18,663.00 $18,663.00 Type P Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 9 1 Birch Street and Quail Street $18,982.00 $18,982.00 Type P Cabinet minus ASCI3 Contro44er as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 10 1 Campus Drive and Bristol Street North Type $21,403.00 $21,403.00 O Cabinet minus ASC/3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 11 1 Irvine Avenue and Bristol St. South $20,464.00 $20,464.00 Type O Cabinet minus ASC /3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation 12 1 Jamboree and Bawiew Wav $18,213.00 $18,213.00 Type P Cabinet minus ASC/3 Controller as shown in line item #2. Cabinet built per City of Newport Beach cabinet specification, minus installation. Standard two channel detectors provided. Detectors with timing not included per plan Grand Total Including line optional line $282,169.00 item #1 Tax 8.75% on equipment only $20,936.16 Sub -Total with Tax: $303,105.16 Bond (1.5% flat based on pre -tax Total): $4.232.54 Grand Total: $307,337.70 Taxes: Not Included Gina Prohaska F.O.B.: Anaheim Account Manager Terms: Net 30 Delivery: 4 weeks for ASC/3 Controllers, 6 weeks upon receipt of order for field modifications, 12 weeks for cabinets with two additional weeks for outside test. Valid For: 30 Days Freight: Prepaid EXHIBIT B CITY OF NEWPORT BEACH BOND NO. LABOR AND MATERIALS PAYMENT BOND WHEREAS, the City of Newport Beach, State of California, has awarded to ECONOLITE CONTROL PRODUCTS, INC., hereinafter designated as the "Principal," a contract for the , located at in the City of Newport Beach, in strict conformity with the Contract on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Contract and the terms thereof require the furnishing of a bond, providing that if Principal or any of Principal's subcontractors, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the work agreed to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same to the extent hereinafter set forth. NOW, THEREFORE, We the undersigned Principal, and, duly authorized to transact business under the laws of the State of California, as Surety, (referred to herein as "Surety") are held firmly bound unto the City of Newport Beach, in the sum of ($ ) lawful money of the United States of America, said sum being equal to 100% of the estimated amount payable by the City of Newport Beach under the terms of the Contract; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal or the Principal's subcontractors, fail to pay for any materials, provisions, or other supplies, implements or machinery used in, upon, for, or about the performance of the work contracted to be done, or for any other work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the Surety will pay for the same, in an amount not exceeding the sum specified in this Bond, and also, in case suit is brought to enforce the obligations of this Bond, a reasonable attorney's fee, to be fixed by the Court as required by the provisions of Section 3250 of the Civil Code of the State of California. The Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Section 3181 of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this Bond, as required by and in accordance with the provisions of Sections 3247 et. seq. of the Civil Code of the State of California. And Surety, for value received, hereby stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Contract or to the work to be performed thereunder shall in any wise affect its obligations on this Bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the Contract or to the work or to the specifications. In the event that any principal above named executed this Bond as an individual, it is agreed that the death of any such principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the above named Principal and Surety, on the day of 2009. Name of Contractor (Principal) Authorized Signature/Title Name of Surety Address of Surety Telephone Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED 2 EXHIBIT C CITY OF NEWPORT BEACH BOND NO. FAITHFUL PERFORMANCE BOND The premium charges on this Bond is $ being at the rate of $ price. thousand of the Contract WHEREAS, the City of Newport Beach, State of California, has awarded to ECONOLITE CONTROL PRODUCTS, INC., hereinafter designated as the "Principal," a contract for the , located at in the City of Newport Beach, in strict conformity with the Contract on file with the office of the City Clerk of the City of Newport Beach, which is incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute the Contract and the terms thereof require the furnishing of a Bond for the faithful performance of the Contract. NOW, THEREFORE, we, the Principal, and ' duly authorized to transact business under the laws of the State of California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport Beach, in the sum of ($ ) lawful money of the United States of America, said sum being equal to 100% of the estimated amount of the Contract, to be paid to the City of Newport Beach, its successors, and assigns; for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these present. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, or the Principal's heirs, executors, administrators, successors, or assigns, fail to abide by, and well and truly keep and perform any or all the work, covenants, conditions, and agreements in the Contract Documents and any alteration thereof made as therein provided on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to its true intent and meaning, or fails to indemnify, defend, and save harmless the City of Newport Beach, its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the same, in an amount not exceeding the sum specified in this Bond; otherwise this obligation shall become null and void. As a part of the obligation secured hereby, and in addition to the face amount specified in this Performance Bond, there shall be included costs and reasonable expenses and fees, including reasonable attorneys fees, incurred by the City, only in the event the City is required to bring an action in law or equity against Surety to enforce the obligations of this Bond. Surety, for value received, stipulates and agrees that no change, extension of time, alterations or additions to the terms of the Contract or to the work to be performed thereunder shall in any way affect its obligations on this Bond, and it does hereby waive notice of any such change, extension of time, alterations or additions of the Contract or to the work or to the specifications. This Faithful Performance Bond shall be extended and maintained by the Principal in full force and effect for one (1) year following the date of formal acceptance of the Project by the City. In the event that the Principal executed this bond as an individual, it is agreed that the death of any such Principal shall not exonerate the Surety from its obligations under this Bond. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the day of 2009. Name of Contractor (Principal) Name of Surety Address of Surety Telephone Authorized Signature/Title Authorized Agent Signature Print Name and Title NOTARY ACKNOWLEDGMENTS OF CONTRACTOR AND SURETY MUST BE ATTACHED I'll l C -3�f54 CONTRACT WITH ECONOLITE CONTROL PRODUCTS, INC. FOR PURCHASE, INSTALLATION, MAfNTENANCE AND REPAIR SERVICES OF!cons® ADVANCED TRAFRC MANAGEMENT SYSTEM th THIS CONTRACT Is made and entered Into as of this kday of Febroery, 2008, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City (CIty"), and ECONOLITE CONTROL PRODUCTS, INC. a Ceffomfa corporation whose principal place of business Is 3360 E. La Palms Ave., Anaheim. CA 82808, ('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. S, Crty Is planning to perform Phase One of its Traffic Signal Modernization project ( "Project'), which will provide advanced traffic management at 22 Intersections within the City. C. City desires to purchase necessary software and equipment from Contractor, to engage Contractor to Install all necessary equipment and software, to provide advanced traffic management at 22 Intersections within the City, and to configure thst system to provide automating capability for up to 150 Intersections at a later date. City also wishes to engage Contractor to provide training to City staff who wig be Involved in operation of the noon® Advanced Traffic Management System. (All such software and equipment purchases, installation, and training shall be hereinafter referred to as "Projecf). Contractor has agreed to Perform the Project over a 120 day period, commencing upon receiving Notice to Proceed. D. The !cons® Advanced Traffic Management System shall provide coordination and enhanced operation at 22 traffic signals for Phase One of the Traffic Signal Modernization Project and which Is capable of being expanded to tnft signals throughout the City In future project phases N agreed to by City and Contactor. Additionally, Ise foonslP Advanced Traffic Management System will provide advanced traffic signal observation and response from City Hag through has interface with closed circuit television cameras (CCTV) and direct communication with Individual Intersections, creating oentragted control for the connected intersections as needed from the Treffio Division of the City's Public Worirs Department _ E. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by the City for the Project, is famgfar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified In this Agreement. C) Q F. Contractor to a manufacturer and Supplier of traffic control equipment, advanced traffic management systems and traffic controller firmware. 0. Contractor, alone and in partnership with others, has developed proprietary software systems, Including the communication and control system registered as •/eons.' NOW, THEREFORE, B Is mutually agreed by and between the undersigned parties as followa: 1. SCOPE OF WORK Contractor shall provide all tangible iteme and perform all the sarvtces described In the Scope of Work attached hereto as Exhibit A and Incorporated herein by this reference.. As a material Inducement, to the City entering IMO this Agreement. Contractor represents and warrants that Contractor is a provider W first class work and services and Contractor is experienced in, perfomdng the we* and services contemplated herein and, In light of such stetus and experience, Contractor revenants that H shag follow the highest professional standards In performing the wwk and services required hereunder and that all materials will be of good quality. For purposes of fhis Agreement, the phrase •hlghest professional standards• shag 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 famish ail the labor, materials, necessary tools, expendable equipment and an udll y and transportation services neaesaaryforthe Project In consideration of the payment of the Purchase Price and subject to an the tense and conditions hereof, Contractor shall: (a) Sell to City, and Instati, , the software, hardware, devices, conneedonb and .equipment (herelnattar referred to as 'the as ched Schedule hereto ule A and incorporated in fug by Us reference. (b) Supply to City under license the'software components of the icons® system, described In detail In Schedule A Including any necessary licensed software products and related materials. (0) operate the S nchro® Interface Module software N hardware to (d) Provide the tasting and training serrtcee as setfarth In Elthtbk A. . 2. TIME OF PERFORMANCE Time Is of the essence in the performance of services under this Agreement and Contractor shall complete the Project Installation, implementation and S. 0 acceptance testing within the time set forth In Exhibit A. The failure by equipment to the City, and/or movement of the hardware to the prepared site Contractor to most this schedule may result In termination of this Agreement by within the City. Contractor shall also be responsible for removal of all debris City as outlined In Section 16. and pacidng materials from the City are resulting aom the (WAILation of the 2.1 Force Melaur equipment, hardware and software. B. Contractor shag provide City with a minimum 14 days notice of Its dates of The time parlod(s) specified in Exhibit A for performance of services rendered Installation to enable the City to prepare the Installation sites for the Hardware pursuant to this Agreement shall be extended because of any delays due to delays due in accordance wttin the InaVUUlons of Contractor. The City shat/ complete she unforeseeable causes beyond the control and without the fault or of Preparation prim to /lie date of of the hardware, and the sits shall Contractor, Including but not restricted to ads of Gad or of the public enemy, thereafter Inspection and approval Ai meta and available for Ineshelf unusually severe weather, tires, earthquakes, floods, epidemics, quarantine to Contractor related the afte shelf b the sole expense of qty. Contractor restrictions, riots, strikes, freight embargoes, were, and/or ads of any provide staff for complete on.elte framing of City personnel as set forth In i r complete a ra governmental agency, Including the City, If Contractor shall within tan (10) days Exhibit of the commencement of such delay ratify City in writing of the cause of the delay. delay. City shall ascertain the fads and extent of delay, and extend the time for G. Payments shag be made in accordance with this Section and the schedule performing the services for the period of the enforced delay when and If in the set forth In ExhdbftA. Judgment of the City such delay Is jusUtied. Chy's determination shall be Mal and conclusive upon the parties to No Agreement. In no event shall Contractor D. Extra Work. Contractor shop not receive any compensation forExbe Work be entitled to recover damages against City for any delay In performance of this without the prior written authorization of the qty. As used herein,'F!rtra WOW Agreemen4 however caused. Contra tots sole remedy being extension of the means any work that Is determined by the qty to be necessary for the proper Agreement pursuant to this Section. completion of the Project but which Is not included In the Purchase Price u 2 2 1= In Exhibit A, and which patties did not reasonably anticipate vwWd be necessary. Compensation for any authorked Exb`a Work shag be paid in necessary. Unless eMlar terminated In acowdafae with Section 17 of this Agreement, this accordance with the hourly rates act forth In Wbft A Agrooment shall continue In full tone and effect urdll completion of the services 4., • agreed to herein. ,ADMINISTRATION COMPENSATION. This Agreement will be administered by the Public Works Department Anthony . Brine shall be the Project Adminlatretor and shall have the authority to act for As full compensation for the performance are completion of the Project as City under this Agreement, required by the Scope of Work, City shag pay to Contractor and Contractor accepts T S. TYPE AND INSTALLATION OF MAIIERIALSISTANDARD OF CARE the full Purchase PAC: the aura of Fiva Hundred Etahiy -Four Thousand. Six Hundred Slxtv-Ninq Dollars and 12H00 (9564.869.121. Contractor snail not 5.1 Contractor shall use only the standard materiels described In Exhibit A In receive any additional compensation unless approved in advance by the City In performing scribed under this Agreement Arty deviation from She writing. The City shall make monthly progress payments for labor as the Project materials described In Exhibit A shag not be installed unless approved N work proceeds based on the fee schedule set forth in Exhibit A Payment for advance by the City Project AdmlMauamr. by software, hardware and equipment stall become due upon shipment a and receipt of such software, hardware and equipment to City. City shall pay 5.2 All of the services shag be performed by Contractor or under Contractor's Contractor ninety percent (90%) of each approved Invoice amount no later than supervision. Contractor represents that It possesses this personnel thirty (30) days after approval of on Invoice by City staff. The remaining ten required to perform the services required by this Agreement. and that it percent (10%) of each approved Invoice shag be paid by City upon Final System Will perform all services In a manner commensurate with Communriy Acceptance, as defined In Subsection 6.1 of this Agreement prolesslonal standards. All services chap be performed by qualified and A.. All shipping and Insurance costs to and from the Installation sites are I experienced personnel who are rat employed by Cif. car have any contractual relationship with City. Included In the purchaea price of the Project, as listed In Exhibit A All payments to shipping agents and for insurance fees shall be made directly by Contractor and the City shall make no payments to any firm concerning the S. ACCEPTANCE TESTING AND ACCEPTANCE shipment, Installation, and delivery of hardware which Is not a part of this Agreement and for which exact payments are not described. Contractor shag g,t -Final System Acceptance' shag mean the latest of the dates on which (a) be responsible for all arrengemants for the shipment of software, hardware and a0 phases of the system have been used in Ilya onshe operations for a 1162 e.9 period of at least seven M continuous days without significant error tonovft successful completion of the seven (T) day System Acceptance Test described below, and (b) at remaining punch list Items have been addressed and completed. Contractor shat follow the System Acceptance Teat Pion (hereinafter 'ATP') developed In consultation with the City containing Acceptance Criteria that satabtshes teat procedures and test cdOeda, for.evaluatlng system capabilities, hmctions, and features along with a problem.reporting matrod'for use in the system testing. The ATP is attached hereto as Exhibit B. Upon completion of the Installation of the hardware, Contractor will notily City that such hardware, as described In Exhibit A, has successfully been bstafletl. Hardware shat not be deemed to have been accepted by City until Final System Acceptance. LKAW .I.%,.^. 6.5 Once all phases of the pro)ect have commenced simultaneous live operations, a &even (7) day period of acceptance testing for the entire system, Including all Interfaces and dollvaables provided under this Agreement, shall begin. System Acceptance Testing shall occur In a IWe emvkonment. Any significant error of devloWns from the ATP, or the error, deviation or follum of any pan or component of the System not manufactured but provided by Contractor, shall be reported to City, and Contractor shat provide In wptng an action plan for resolution of such error, dwtadon or failure within two (2) working days. The System Acceptance Teat shall be deemed completed upon completion of a continuous swan (7) day period during which no material failure to meet the criteds set forts In Me ATP or significant errors remain unresolved to the satisfaction of the Cly. System Acceptance. Test shat not be unreasonably delayed due to actions of C y or is agents, contractors or subcontractors not retained by or through Contractor. A. Failure Prior to Final $,yyg(gm Acceptance. Upon any fanure of the System Acceptance Teat, Contractor than have an additional seven (7) days In which make necessary equipment repairs, replacements andfar software fixes without additional cost to qty, after which the System Acceptance Teat shall be repeated without additional coat to Clay. If more than seven (7) days are reasonably required to make the aforementioned repairs, replacement$ or software axes, Contractor shall provide a written action plan Met Includes a timeline for resolution based on Ma scope of work Involved, and.City may authorize a longer rep* or resolution o c� period In coding. Panora a< the System m rsfoat or euxead a second System Acceptltrtoe Test, or failure to provide seven (7) days of continuous live operation without etgniticant arras after any addtlonai System Acceptance Test, dtati consWAO a talkae tp euamasfuny complete Contractors obligations under ibis Agreement and Contractor shall be considered in default of a material obligation. qty shah be entitled to a refund of the full amcunt of the fees pall for Contrac0ora senicas. City $bell abo bp wood tD full refunri software, hardware and QVW system comparems Purchaasedainy prasuant to this; Agreemartt that Is deemed unusable by the City. Any removal of the system w@ be at Contractors cola cost and expense. B. Fatyl„reARer Ft. net &v$tam Conceder and qty agree that upon system feSlure, time u of to essence for necessary system equipment rapahs of replacements, amt time Is of the essence for addressing any software detects which cause tallures classified as Severity Level Ono and Seventy Level Two, below. Upon any fanure of the System or lts hardware or software components, the Warranty pmhdebns of Exhfift A'and Section 25 of ft Agreement shall apply. During the warranty period, If hardware or equipment pumnasa under this Ageament from Contractor than fA Contractor shelf repair or replace the hodwam or equipment within swan (7) wodit days for ON but Sevedy Level One failures. In the event of a Severity Level One hardware or equipment f fl ur% repair an id'repiecement shall occur xAWn 24 hours of notfketion of such faHaae to Contradict by M. If fallura Is due to a software defect of failure, the 14"W" ha• Contractor response and defer# resolution bebw shall apply. t.. Savedy level One (Crd WX Failure that causes an Intersection to.be In flesh or dark, orfenase of safety features such ere emergency vehicle preemption or railroad preemption. In the went of a Severity, Leval Oro failure, Contractor response shah be- kanodteh, and Contractor shelf provide a fir solution or workaround within 24 tours of ratification of wah failure to Contractor by qty. 2. Severity Level Two (HIgt*- Failure or bug M systern that results in dogradalion of ttatto signal ax*d and communication system function to a mpdarate m aartdus dogma under normal or mawrlable operating conditlane. Sevady, Leval Two falhnes shall include but are not limited to failure or severe degradation of cocrdinatton belwean bdersectona, Wmmunlcatat between the central system at City Hag and the field elements. and fie ability to upload and download data to the abnitlr demonstrahad as part of the ATP. In the event of a Seventy Level Two fanure. Contractor shall respond,whit a..wctmn plan of action to address the failure wtHn live (5) business days of notitratlon by City. Contractor shat provide a Ox of solution for any Level Two failure within no later than forty-five (45) calendar days of notification of failure by Clty. 3. Severity Level Three (Moderate to Low): Failure or bug In system that creates aesthetic or user preference Issues, unrelated to the operation of the system. Severity Level Three Issues shaft be addressed through regular system upgrade releases on an as- needed basis. RESPONSIBILITY FOR DAMAGES OR INJVRY 7.1 Cty and all officers, employees and representatives thereof shall not be responsible In any manner for any loss of 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 saMoss 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 Indemniy, . hold harmless, end 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 clalms 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 perfonntng this Project Including, without limitation, defects In workmanship or materials and/or design defects; and /or (3) any and all claims asserted by Contractors subconcontredors or suppliers on the Project, and shall include reasonable attorneys' foes and all other costs Incurred In defending any such claim. Contractors liability In this Subsection shall be limited to the maximurm amount of Its Insurance coverage for claims arising out non - negligent and non4nientlonal acts performed under this Agreement. Contractor shall not be held responsible for consequential or spacial damages, or claims made to City for such consequential or special damages. Nothing herein shall require Contractor to Indemnify City from the sole negligence or willful misconduct of Cly, Its officers or employees. laWugdual Property Indemnity - Contractor shat defend, Indemnify and hold City, Us agents, officers, representatives, employees and City Council, boards and commissions harmless from any proceeding brought against City for any Intentional or unintentlonal violation of the Intellectual Q U property rights of any third party with respect to equipment and software deliverables purchased in this Agreement This Indamri fication shall Include, but Is not limited to, Infnngemsrtt of any United. States' letters Contractor's Provided under this Agreement, contained In The City agrees to keep confidential all material and documentation relating to the Software and any modification thereto, to the axterd that such materials are not subject to disclosure under the California Public Records Act or Freedom of Information Act The Ctly will not make available or distribute any program code or descripilon associated wi with !cons® System In any farts whatsoever to third parties, written approval of Contractor. 7A Contractor shall perform all Project work In a manner to minlmize public Inconvenience and possible hazani, to restore otter work &rase to their cdgMel condition and former usefulness sa scan aspossible, and to prated publle and private Property. Contractor shall perform work as $Pacified U . Exhibit A to limit Impacts to traffic during the system lnstalladon period. Contractor shag be liable for any private or public props" damaged during the performance of the Project work 7.5 Section 7.10 off the State Standard control edOcatio In the Iaccordance st edition of the yfork A a Tramio Control - Handbook (WATCH), as published. by Building News, Inc. if necessary, traffic control plans for field work will be provided by City, or with two weeks prior written notice, by Contractor. Traffic control services to the City separat from monthly progress payments. 0rtd wtl be billed At the request of the City, the Contractor shall submit to the Engineer a traffic control plan and detour plan for each street and sidewalk within the project area. The Contractor shall be responsible for processing and obtaining approval of a be fic control plan from the Cltys Traffic Engineer. The Oontrador shall adhere to the conditions of the !raffia control Plan: Traffic control plans shot be prepared, signed, and sealed by a California licensed Ci�AI Engineer or Traffic Engineer, as directed by the City Traffic Engineer, and conform to the provisions of the WORK ARP& TRAFFld ¢L.HANDSOOK (W A.T.CJq, Latest Edition. Traffic control and datours shall at a minimum most the following requirements: A. Emergency vehicle access shall be maintained at all times... . a. The locations and wordings of all barricades, signs, detneatore, lights, warning devices, parking restdctons, and any other required detats $hall ensure thavall pedestrlen, and vehicular traffic will be handled In a safe manner with a minimum of Inconvenience to the public. C. All advanced warning sign Installations shall be reflectorized and/or lighted. Traffic signal system shutdown or planned 'red flesh' shag be limited to 4 hour periods between the hours of 9:00 AM and 3:00 PM on weekdays (Monday through Thursday), excoPt as authorzed by the Engineer. 'STOP AHEAD' and "STOP" signs shall be furnished by the contractor and shall conform to the provisions In Section 12 -3.06, 'Construction Area Signs," of the State Standard Specifications except that the base material for the signs shall not be plywood, Two 'STOP AHEAD- signs and Iwo STOP' signs shall be placed for each direction of traffic. Locations of the signs shall be per the WATCH manual. 7.6 Nothing In this section shag be construed as authorWng any award of attorneys fees in any action to enforce the terms of this Agreement, except to the extend provided In Section 7.3 above. 7.7 The rights and obfigations set forth In this Section shall survive the termination of this Agreement 8. INDEPENDENT CONTRACTOR City has retained Contractor as an Independent contractor and neither Contractor nor its employees, nor any of b subcontractors, 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 shag 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 Protect. 10. INSURANCE Without limiting Contractors indemnification of City, and odor tp commenc�maM Of work Contractor $hall 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 forth satisfactory to City. A. CeM9cetes o1 ( nsurance 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 1 c Clty'a Risk Manager prior to commencement of parformanoa or lesuanca of any permit or performance of any wont. Current certification of Insurance shall be kept on flle with City at all times during the term of this Agreement B. attlitgu8. A person authorized by the'Insufer to bind coverage on Its behalf shall sign cartiflWtbn of all required pollcles. C. A e Insurers. All Insurance pollcles shall be Issued by an Insurance company currently authorized by the Insurance Commissioner to transact business of Insurance in the State of CaVomia, with an assigned policyholders' Rating of 'A (or higher) and Financial Size Category Class VII (or larger) In accordance with the latest edition of Sears Key Rating Guide, unless otherwise approved by the Citya Risk Manager. • ,4,:,: i I: II:If L Who rare' cgZattl aill Coverage. Contractor shall maklteb} Workers' Compensation Insurance and Employers Llebliiry, 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 Wodte a Compensation Insurance and Employees Liability Insurance In accordance with the laws of the State of Califomie for all of the subcontractors employees. Any notice of cancellation or norrenawal of all Workers' Compensation'pogdes must be receMad by Cry at Issat thirty (30) calendar days (10 calendar days written notice of non- payment of preMum) prior to such change. The insurer shag agree to waive all rights of subrogation against Cfy, as omoers, agents, employees and volunteers for losses arising from work performed by Contractor far City. II. •enemi rsbJiity Drees. Contractor shall maintain commercial general gabllliy Insurance In an amount not less than two million dollars ($2,000,000) per occurrence for bodily Injury, personal Injury, and property damage. Including without llm islon, - contractual liability. If commerelal general Ilabliy, 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 flrit shag be at least twice the required occurrence Ilmit 111. • Automobile LlabiJJjy, 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 ranted vehicles. In an amount not lase than one million dollars ($1,000,000) combined single limit for each occurrenco. . 10 )in. cyneas LiebillN Caverece. Contractor shall maintain insurance covering axeea6 Ilablihy In the amount of nine million dollars ($9,000,000) for all activities of the Contractor arising out of or in connection with work to be performed under this Agreement, E. Endorsements. Each general liability and automobile liability Insurance policy shall be endorsed with the following speolAe language: I. The City, he elected or appointed officers, officiate, employees, agents and volunteers are to be covered as addltlonal insureds with respect to liability arising out of work performed by or on behalf of the Contractor. R. This policy shall be considered primary Insurance as respects to City, Its elected or appointed officers, officials, employees, agents and volunteers as respects to a0 claims, losses, or liability arising directly or Indirectly from the Contractors operations or services provided to City. Any Insurance maintained by City, Including any set- Insured retention City may have, shall be considered excess Insurance only and not contributory with the Insurance provided hereunder. In. This Insurance shall act for each Insured and additional Insured as though a separate policy had been written lot 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 Omvwdns 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 Pmlts, 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. 77me(y No((ga of Clams. Contractor shall give City prompt and timely notice of otalm made or suit instituted arising out of or resulting from Contractors performance under this Contract. G. Addefonal Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional Wide of insurance, which In Its own Judgment may be necessary for its proper protection and prosecution of the work. 11. BONDING 11 Contractor shall obtain, provide and maintain at Its own expense dudrg the term of this Contract a Labor and Materials Payment Bond In the amount of one hundred percent (100%) of the total amount to be paid Contractor ae set forth in this Agreement and in the form attached hereto as Exhibit 8 which B Incorporated herein by this reference; and a Faithful Performance Bond In the amount of one hundred percent (100%) of the total amount to be paid Contractor as set forth In this Agreement In the form attached hereto as Exhibits C which is Incorporated herein by this reference. The Latin and Materials Payment Bond and FaflMul Performance, Bond shag be Issued. by an Insurance oryoribma n or surety (1) currently authorized by the Insurance Commissioner to transact business of Insurance In the State of California, (2) listed as an acceptable surety In the latest revision of the Federal Register Circular 670, and (3) assigned a PoPcyholdere' Reting A (or higher) and Financial Size Category Class VII (or larger) In accordance with the latest edition of Bests Kav stns ow, - =itv. The Contractor shall deliver, concuren0y with execution of this Agreement the Labor and Materials Payment Bond and FaIMA Performance Bond, a cartlfted copy of the 'Certificate of Authority' of the Insurer or Surety Issued by the Insurance Commissioner, which auMorizes the Insurer or Surety to transact surety Insurance In the Sate of California. ik ml[7klaT`PML` r_L #'7 Pursuant to the applicable provisions of the Labor Code of the State of Cast ntla, not lass than the general preve6ing rate of per diem wages Including legal holidays and overtime work for each craft or We of worlonan needed to execute the vrorik contemplated under the Agreement shall be paid to all v4odonen employed on the work to be done according to the Agreement by the Contractor and any subcontractor. In accordance with the California Labor Code (Sections 1770 at seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages In the loeaAty In which the work is to be patformed for each craft clasaiticatlon, or type of workmen or mechanic needed to execute the Agreement. A copy of sold determination Is available by calling the prevailing wage hotline number (416) 703.4774, and tequeaftng.ons from the Depatbnant of Industrial Relations. The Contractor Is requited to obtain the wage determinations from the Department of Industrial Relations and post at rite job site the prevaiing rate or per diem wages, it shall be the obligation of the Contractor of arty subcontractor under hirNher to comply with all Stab of Calffomla labor laws, rules and reputations and the pardes agree 0tat the qty shall not.be -Pablo for any violation thereof. 13. SUBCONTRACTING City and Contractor agree that subcontractors hey be used to complete the work outlined In the Scope of Services provided the CvftrAor obtabai City approval In writing prior to the subcontractor pertorming any work: Contractor shall be fully responsible to City for ail acts and omissions of the subcon0actore. Nothing In this Contract shall create any oomractual retaPonship between City and subcontractor nor shall it create any obligation on the part of City to pay at to see 12 to the payment of any monles due to any such subcontractor other than as otherwise required by law. 14, WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such wpluwlding shag not be deemed to constitute a failure to pay according to the terms of this Contract. Contractor shaltnot 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 rasped to such disputed sums. Contractor shall be entitled to receive Interest on any withheld sums at the rate of realm that City earned on Its investments during the time period, from the date of withholding of any amounts found to have been Improperly withheld. 15. 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 pertormed under this Contract, and (2) prohibits such persons effect king,interesrrticipating In making, decisions that will foreseeably laly O 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 resufing from Contractor's violation of this Section. 16. NOTICES All noticea, demands, requests or approvals to be given under the tars 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 afar the deposit thereof In the United States mall, postage prepaid, first -class mall, addressed as hereinafter provided. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Anthony Brine Public Works Department City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92660 Phone: 949644 -3329 Fax 949.644 -3318 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at Attention: Jason Hann Econolito Control Products, Inc. 3360 E. La Palma Avo. Anaheim, CA 92WO Phone: (719) 471 -98ee eA 360 Fax (719) 471.9063 , 17., TERMINATION JQM1%atigA.A'f Cause • In the event that either party falls or refuses to Perform any of the provisions of Oft 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 five (5) calendar days, or O more than fire (5) calendar days are reasonably required to cure y1a default and the defaulting party, falls to give adequate assurance of due performance within five (5) calendar days after receipt of written notice of defauk sped fying 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 nonce thereof. j�ermination ,,, ( out sae - Notwithstanding the above provisions, City shag have the right at its sole discre8on and without muse, 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 shell pay Contractor for services satisfactorily performed and costs Incurred In the performance of such services up to the effective date of termination for which Contractor has not previously been paid. In the event of termination under this Section, City shall also pay Contractor for all software, hardware, and equipment delivered to City site under this Agreement that City deems usable. 18. COMPLIANCE WITH ALL LAWS Contractor shag at Its own cost and expense comply wlth all stetufas, ordinances, regulations and requirements of all governmental antlges, Including federal, state, county or municipal, whether now in force or heleNatter enacted 19. WAIVER A waiver by City of any term, covenard, 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 oroo difloru 20. INTEGRATED AGREEMENT This Agreement represents the full and complete understanding of every kind or nature whatsbever between the parties hereto, and all prefmbnary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal Agreement or implied covenant III be held to vary the . provisions herein, 21. CONFLICTS OR INCONSISTENCIES - 13 .14 U U In the event there are any conflicts or Inconsistencies between this Agreement and the Scope of Services or product warranties, Including Software and Hardware warranties contained In the Scope of Services or delivered to City after execution of this Agreement, the terms of this Agreement shall govern. 22. 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. 23. EFFECT OF CONTRACTOR'S EXECUTION Execution of this Agreement by Contractor is a representation that Contractor has visited the Project She, 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 24. CONTROLUNO 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. 25. 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 perry by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 26. WARRANTY Contractor warants to City that all software and equipment to be delivered hereunder will be free from defects In material or workmanship and will be of the kind and quality designated or specifled by Contractor in Exhibit A. The warranty shall apply only to defects appearing within one year from the date of Final System Acceptance of Project by City for software products, two years from the date of Final System Acceptance by City for hardware products not manufactured by the Contractor, and two years from the date of Final System Acceptance by City for hardware products manufactured by Contractor. If Contractor installs the equipment and software, or supplies technical directions of Installation by cDmrs" the warranty period shall run from the date of Final System Acceptance by City, provided same Is not unreasonably delayed by City. If Contractor- manufactured equipment delivered hereunder does not meet the above warranty, and If City promptly nodfles Contractor in writing, Contractor shall thereupon correct any defect, Including non- conformance with the specifications, either (at Its option) by repairing any defective or damaged parts of the equipment, or by making available any necessary replacement parts, CU delivered and installed without additional charge to City within seven (7) working days, unless the failure is of Severity Level One, as defined by Section S.b(B) of this Agreement City will realm the defective product to Contractor, at Contractor's expense. Contractor shall repair or replace the defeo0ve Rom and return it to City, shipping costs prepaid. Contactor shall perform anynecessary diagnostic work, software, hardware and equipment removal, repair, replacement, cartificallon. and installation at no cost to the City durfng the warranty period, using Contractor's equipment If loons® software, or other proprietary software products licensed by Contractor and delivered hereunder as part of the System, do not meet the above warranty, the Contractor response and resolution times specl lod In Section SgB) of this Agreement shall apply. The foregoing warranty Is exclust" and In lieu of all other warranties, whather written, oral, imphad or statutory, Contractor does not warrant any equipment of other manufacture designated by City. Contractor shall supply to City In a timely manner any software revisions or, upgrades of the standard loons® software modules to correct •bugs' or deficiencies, which would appear within one (1) year from the date of Final System Acceptance of the standard loons® traffic, management system. 27. MAINTENANCE City reserves the right but Is not obligated to, enter a Maintenance Agreement with Contractor for the System at any time during the warranty period. If City provides Contractor of notice of Intent to enter a Maintenance Agreement upon expbation of Contractors one (1) year warranty within thirty (30) days of the expiration of such warranty, City shall have the option to enter a five (5) year Maintenance Agreement with Contractor for maintenance of the System at the coat of $12,500 per year Me Maintenance Fee). The Maintenance Agreement shall take effect on the day the software warranty expires CSOttwam Warranty Explrstion Date'.) if City exa cleei Its option to enter the live -year Maintenance 'Agreement, the annual fee of $12,600 shall be due each year on or before that year's calendar date which corresponds to the day and month of the Software Warranty Expiration Date. If City does not exercise the option to enter the five year Maintenance Agreement, Contractors technical support and service provided beyond the Will warranty periods shall be subject to applicable hourly support rates plus travel and per diem cost at time support Is provided. 28. REPRESENTATIONS N2DJ*DQiimwt ECONOLITE represents that to the best of its knowledge the technology embodied in the products sold herein does not infringe upon a United States patent or United States, copyright In affect as of the Effecttva Data. Authg(lpc. Each party represents as follows: ((a) that d has full power and authority to execute, deliver and perform its oWigatione underthls Agreement; (b) 15 16 that there are no so". proceedings or Investigations, pending or, to the best of each part's knowledge, threatened against such party which may In any manner whatsoever materially affed the enforceability of title Agreement or the rights, duties and obllgations of the partes hereunder, and (c) that the execution, delivery and performance of this Agreement will not constitute a breach or default under any agreement, law or court order under which such party Is a party or may be. bound or affected by or which may affect the rights, dudes and obligations hereunder. No Other Reoresenlatlons. Each party acknowledges and agrees that It Is relying on no representation of the other party except as expressly set forth herein. 29. LICENSES The Contractor grants to the City tot exeuste use in the City a fatty paid non- exclusive, non - transferable Icons® software license for (1) Communications server, (1) FlldApplfcatbno server, (1) Terminal services server and workstation computers. The Communications Server license covers up to 250 Intersections operating from a single communleatkma server computer (expandable beyond 250 Intersections with additional software licenses and hardware). The City $hall be entitled to: a. use the licensed programs but only In machine-readable form on licensed ✓Computers. b. use the support material supplied but only as required to support the use of the Licensed programs c. make only as many back up copies of the Licensed programs In machine readable form as required to support the use of the Licensed programs on each computer. All beck up copies must Include the copyright notice In the original forth as It appears on the licensed programs. The City may not copy, modlty, adept, merge, disassemble, decomplio or distribute the software, Its documentation or create derivative works based upon the software. None of the support material In human readable form Included with the Licensed programs may be copled in any way. The City may print any screen the software will allow, however, no copyright notices may be removed from the printing, The Licensed programs and support material Included with this Agreement are confidential information that Is the property of the Contractor. The Licensed programs, program concepts, or any of the support materials shag not be made available to any other party or organization without the written consent of the Contractor. Title to all intellectual property rights Including patent, trademark, copyright and trade secret rights and title to all ownership rights and all copies of and all media bearing the Licensed programs, support materials and program concept shall remain sole property of the Contractor. 30. CONFIDENTIAL INFORMATION. n. In the performance of this Agreement or In cordemp >bn thereof, the parties and their respective employees and agents may have access to private or confidential Information owned or controlled by the other party and such Information may contaln proprietary detab and dredosurea. All Information and data identified in writing as proprietary or confidential by either parry ('Confidential Informaion') and so acquired by the other party or Its employees or egorffs under this Agreement or In contemplation thereof shag be and shall remain the disclosing partys exclusive property. The recipient of Confidential Information shall use all reasonable of ria (which in any avant shalt not be less than the efforts the recipient takes to ensure the confidandelity of he own •proprietary and other confidential Information) to keep, and have its employees and agents keep, any and all Confidential Information confidefitial, and 'shag not copy, or publish or dleclose It to others, nor authorize Its employees, agents or anyone else to copy or dtecloss it to others, wigwut the disclosing partys written approval; nor shsit the rodplent make use of the Confidential Information except for the purposes of executing go obligations hereunder; and (except as provided for heraln) shell return the Confidential Information and data tb the fiwt party at Its request The City's duty to maintain confidentiality as described hereunder shag be subject to the laws of the State of California. ' Excluded Information: The-foregoing conditions will not apply to Information or data which is, or-which becomes generally known to the public by publication or .. by any means other than a breach of duty on the part of the recipient hereunder, As Information previously known to the recipient, W Information Independently " developed by or for the reciplent or Is Infonnadon generally released by the owning party without rostrlttlon. rant t Igtunctiva Relief, Because of the unique nature of the Confidential Information, the parties some that each patty may $utter Irreparable harm M the event that the other party falls to comply with any of Its obligations under this Ankle, and that.monstary.damages may be Inadequate to compensate either party for such breach, Accordingly, the pestles agree that either party wig, in addigoa to any other remedies available to it at law or In equity, be angled to 'seek Injunctive relief to enforce the terms of this Article. 31. - SOFTWARE UPDATES AND ENHANCEMENTS Software enhancements or hour features added to fcons through new system development for other agencies, .or. as part of the Contrectois ongoing research and development shall be offered to the 04' at a *ad, quoted pdce. The offer shall remain firm tot 90 days from the date of the offer. 32. ASSIGNMENT ' 17 1 18 U u This Agreement shalt riot be assigned by any party, or any party substituted, without pripi of the.0 ty and the Contractor. 33. COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be deemedtan original and all of which shall constitute one and the some Instrument 34. OTHER MATTERS . Sevembil In the event any of the provisidns of this Agreement shall, for any reason, be hold void or unenforceable, the remaining provisions shall remain In full effect and shall control. IWIW . Any provisions of this Agreement prohlbited by the law of any state shag, as to said state, be ineffective to the extern of such prohibition without Invalidating the remaining provisions of this Agreement Except as otherwise provided In this Agreement, no provision of th Agreement Is Intended, nor shall be Interpreted, to provide or create any third party beneficiary rights or any other rights of any kind in any affiliate or subsidiary, and all provisions hereof shall be personal solely between the parries hereto, Heilddincs' Article and Section headings are included solely for convenience, are not to be consic3red a pad of this Agreement nor are they Intended to be full and accurate descriptions of the contents thereof. IN WRNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM:, CITY OF RT B CH, A ;dward IC atW B. Aaron C. Harp, r Assis tant Chy Anomey crr for the City of Newport Beach for the City of Newport Beach `' s ATTEST: B By LaVonne Harldeea,. N a .pl __s_. , City Clerk Tltie: Senior Vice President BYNadVe: of rMnn Title: Assistant Secretary Attachments: Exhibit A- Scope of Services .Fadtiblt 8 — System Acceptance Test Plan Exhibit C - Labor and Materials Payment Bond Exhibft D - Faithful Performance Bond 3] fl