HomeMy WebLinkAbout12 - CC-8 - Attachment 2 - 8/3/20211
Hinderliter, de Llamas & Associates
Rev. 11-2020
CITY OF COSTA MESA
PROFESSIONAL SERVICES AGREEMENT
WITH
HINDERLITER, DE LLAMAS & ASSOCIATES DBA HDL COMPANIES
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered
into this 3rd day of August, 2021 (“Effective Date”), by and between the CITY OF COSTA MESA,
a municipal corporation (“City”), and HINDERLITER, DE LLAMAS & ASSOCIATES, a California
corporation DBA HDL COMPANIES (“Consultant”).
W I T N E S S E T H :
A. WHEREAS, City proposes to utilize the services of Consultant as an independent
contractor to provide cannabis management services, as more fully described herein; and
B. WHEREAS, Consultant represents that it has that degree of specialized expertise
contemplated within California Government Code section 37103, and holds all necessary licenses
to practice and perform the services herein contemplated; and
C. WHEREAS, City and Consultant desire to contract for the specific services
described in Exhibit “A” and desire to set forth their rights, duties and liabilities in connection with
the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the
provisions of sections 1090-1092 of the California Government Code, in the subject matter of this
Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
1.1. Scope of Services. Consultant shall provide the professional services described
in Consultant’s Proposal, attached hereto as Exhibit “A” and incorporated herein.
1.2. Professional Practices. All professional services to be provided by Consultant
pursuant to this Agreement shall be provided by personnel experienced in their respective fields
and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by
professional consultants in similar fields and circumstances in accordance with sound
professional practices. Consultant also warrants that it is familiar with all laws that may affect its
performance of this Agreement and shall advise City of any changes in any laws that may affect
Consultant’s performance of this Agreement.
1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to
the complete satisfaction of the City. Evaluations of the work will be done by the City Manager or
his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the
matters of concern;
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(b) Require Consultant to repeat the work at no additional fee until it is
satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.
1.4. Warranty. Consultant warrants that it shall perform the services required by this
Agreement in compliance with all applicable Federal and California employment laws, including,
but not limited to, those laws related to minimum hours and wages; occupational health and
safety; fair employment and employment practices; workers’ compensation insurance and safety
in employment; and all other laws and ordinances applicable to the services required under this
Agreement. Consultant shall indemnify and hold harmless City from and against all claims,
demands, payments, suits, actions, proceedings, and judgments of every nature and description
including attorneys’ fees and costs, presented, brought, or recovered against City for, or on
account of any liability under any of the above-mentioned laws, which may be incurred by reason
of Consultant’s performance under this Agreement.
1.5. Non-Discrimination. In performing this Agreement, Consultant shall not engage in,
nor permit its agents to engage in, discrimination in employment of persons because of their race,
religious creed, color, national origin, ancestry, physical disability, mental disability, medical
condition, genetic information, marital status, sex, gender, gender identity, gender expression,
age, sexual orientation, or military or veteran status, except as permitted pursuant to section
12940 of the Government Code.
1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into
agreements with other consultants for services similar to the services that are subject to this
Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
1.7. Delegation and Assignment. This is a personal service contract, and the duties
set forth herein shall not be delegated or assigned to any person or entity without the prior written
consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ
other personnel to perform services contemplated by this Agreement at Consultant’s sole cost
and expense.
1.8. Confidentiality. Employees of Consultant in the course of their duties may have
access to financial, accounting, statistical, and personnel data of private individuals and
employees of City. Consultant covenants that all data, documents, discussion, or other
information developed or received by Consultant or provided for performance of this Agreement
are deemed confidential and shall not be disclosed by Consultant without written authorization by
City. City shall grant such authorization if disclosure is required by law. All City data shall be
returned to City upon the termination of this Agreement. Consultant’s covenant under this Section
shall survive the termination of this Agreement.
2.0. COMPENSATION AND BILLING
2.1. Compensation. City shall pay Consultant in accordance with the fee schedule set
forth in Exhibit A. Consultant’s total compensation per annual financial audit shall not exceed Six
Thousand One Hundred Fifty Dollars ($6,150.00). Consultant’s total compensation per
compliance review shall not exceed One Thousand Two Hundred Seventy-Five Dollars
($1,275.00).
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2.2. Additional Services. Consultant shall not receive compensation for any services
provided outside the scope of services specified in the Consultant’s Proposal unless the City
Manager or designee, prior to Consultant performing the additional services, approves such
additional services in writing. It is specifically understood that oral requests and/or approvals of
such additional services or additional compensation shall be barred and are unenforceable.
2.3. Method of Billing. Consultant may submit invoices to the City for approval on a
progress basis, but no more often than two times a month. Said invoice shall be based on the
total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall
pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each
invoice shall describe in detail, the services performed, the date of performance, and the
associated time for completion. Any additional services approved and performed pursuant to this
Agreement shall be designated as “Additional Services” and shall identify the number of the
authorized change order, where applicable, on all invoices.
2.4. Records and Audits. Records of Consultant’s services relating to this Agreement
shall be maintained in accordance with generally recognized accounting principles and shall be
made available to City or its Project Manager for inspection and/or audit at mutually convenient
times from the Effective Date until three (3) years after termination of this Agreement.
3.0. TIME OF PERFORMANCE
3.1. Commencement and Completion of Work. Unless otherwise agreed to in writing
by the parties, the professional services to be performed pursuant to this Agreement shall
commence within five (5) days from the Effective Date of this Agreement. Failure to commence
work in a timely manner and/or diligently pursue work to completion may be grounds for
termination of this Agreement.
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of
performance resulting from acts beyond the reasonable control of the party or parties. Such acts
shall include, but not be limited to, acts of God, fire, strikes, pandemics, material shortages,
compliance with laws or regulations, riots, acts of war, or any other conditions beyond the
reasonable control of a party (each, a “Force Majeure Event”). If a party experiences a Force
Majeure Event, the party shall, within five (5) days of the occurrence of the Force Majeure Event,
give written notice to the other party stating the nature of the Force Majeure Event, its anticipated
duration and any action being taken to avoid or minimize its effect. Any suspension of
performance shall be of no greater scope and of no longer duration than is reasonably required
and the party experiencing the Force Majeure Event shall use best efforts without being obligated
to incur any material expenditure to remedy its inability to perform; provided, however, if the
suspension of performance continues for sixty (60) days after the date of the occurrence and such
failure to perform would constitute a material breach of this Agreement in the absence of such
Force Majeure Event, the parties shall meet and discuss in good faith any amendments to this
Agreement to permit the other party to exercise its rights under this Agreement. If the parties are
not able to agree on such amendments within thirty (30) days and if suspension of performance
continues, such other party may terminate this Agreement immediately by written notice to the
party experiencing the Force Majeure Event, in which case neither party shall have any liability to
the other except for those rights and liabilities that accrued prior to the date of termination.
4.0. TERM AND TERMINATION
4.1. Term. This Agreement shall commence on the Effective Date and continue for a
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period of one (1) year, ending on August 2, 2022, unless previously terminated as provided herein
or as otherwise agreed to in writing by the parties. This Agreement may be extended by four (4)
additional one (1) year periods upon mutual written agreement of both parties.
4.2. Notice of Termination. The City reserves and has the right and privilege of
canceling, suspending or abandoning the execution of all or any part of the work contemplated
by this Agreement, with or without cause, at any time, by providing written notice to Consultant.
The termination of this Agreement shall be deemed effective upon receipt of the notice of
termination. In the event of such termination, Consultant shall immediately stop rendering services
under this Agreement unless directed otherwise by the City.
4.3. Compensation. In the event of termination, City shall pay Consultant for
reasonable costs incurred and professional services satisfactorily performed up to and including
the date of City’s written notice of termination. Compensation for work in progress shall be
prorated based on the percentage of work completed as of the effective date of termination in
accordance with the fees set forth herein. In ascertaining the professional services actually
rendered hereunder up to the effective date of termination of this Agreement, consideration shall
be given to both completed work and work in progress, to complete and incomplete drawings,
and to other documents pertaining to the services contemplated herein whether delivered to the
City or in the possession of the Consultant.
4.4. Documents. In the event of termination of this Agreement, all documents prepared
by Consultant in its performance of this Agreement including, but not limited to, finished or
unfinished design, development and construction documents, data studies, drawings, maps and
reports, shall be delivered to the City within ten (10) days of delivery of termination notice to
Consultant, at no cost to City. Any use of uncompleted documents without specific written
authorization from Consultant shall be at City’s sole risk and without liability or legal expense to
Consultant.
5.0. INSURANCE
5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and
keep in full force and effect during the life of this Agreement all of the following minimum scope
of insurance coverages with an insurance company admitted to do business in California, rated
“A,” Class X, or better in the most recent Best’s Key Insurance Rating Guide, and approved by
City:
(a) Commercial general liability, including premises-operations,
products/completed operations, broad form property damage, blanket
contractual liability, independent contractors, personal injury or bodily injury
with a policy limit of not less than One Million Dollars ($1,000,000.00),
combined single limits, per occurrence. If such insurance contains a
general aggregate limit, it shall apply separately to this Agreement or shall
be twice the required occurrence limit.
(b) Business automobile liability for owned vehicles, hired, and non-owned
vehicles, with a policy limit of not less than One Million Dollars
($1,000,000.00), combined single limits, per occurrence for bodily injury
and property damage.
(c) Workers’ compensation insurance as required by the State of California.
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Consultant agrees to waive, and to obtain endorsements from its workers’
compensation insurer waiving subrogation rights under its workers’
compensation insurance policy against the City, its officers, agents,
employees, and volunteers arising from work performed by Consultant for
the City and to require each of its subcontractors, if any, to do likewise
under their workers’ compensation insurance policies.
(d) Professional errors and omissions (“E&O”) liability insurance with policy
limits of not less than One Million Dollars ($1,000,000.00), combined single
limits, per occurrence and aggregate. Architects’ and engineers’ coverage
shall be endorsed to include contractual liability. If the policy is written as a
“claims made” policy, the retro date shall be prior to the start of the contract
work. Consultant shall obtain and maintain, said E&O liability insurance
during the life of this Agreement and for three years after completion of the
work hereunder.
5.2. Endorsements. The commercial general liability insurance policy and business
automobile liability policy shall contain or be endorsed to contain the following provisions:
(a) Additional insureds: “The City of Costa Mesa and its elected and appointed
boards, officers, officials, agents, employees, and volunteers are additional
insureds with respect to: liability arising out of activities performed by or on
behalf of the Consultant pursuant to its contract with the City; products and
completed operations of the Consultant; premises owned, occupied or
used by the Consultant; automobiles owned, leased, hired, or borrowed by
the Consultant.”
(b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall
it be cancelled, nor the coverage or limits reduced, until thirty (30) days
after written notice is given to City.”
(c) Other insurance: “The Consultant’s insurance coverage shall be primary
insurance as respects the City of Costa Mesa, its officers, officials, agents,
employees, and volunteers. Any other insurance maintained by the City of
Costa Mesa shall be excess and not contributing with the insurance
provided by this policy.”
(d) Any failure to comply with the reporting provisions of the policies shall not
affect coverage provided to the City of Costa Mesa, its officers, officials,
agents, employees, and volunteers.
(e) The Consultant’s insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of
the insurer’s liability.
5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible
or self-insured retention to provide such coverage, the amount of such deductible or self-insured
retention shall be approved in advance by City. No policy of insurance issued as to which the City
is an additional insured shall contain a provision which requires that no insured except the named
insured can satisfy any such deductible or self-insured retention.
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5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance
showing the insurance coverages and required endorsements described above, in a form and
content approved by City, prior to performing any services under this Agreement.
5.5. Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the
indemnification provision contained in this Agreement, or the extent to which Consultant may be
held responsible for payments of damages to persons or property.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to any matter referenced herein and supersedes any and all other prior
writings and oral negotiations. This Agreement may be modified only in writing, and signed by the
parties in interest at the time of such modification. The terms of this Agreement shall prevail over
any inconsistent provision in any other contract document appurtenant hereto, including exhibits
to this Agreement.
6.2. Representatives. The City Manager or his or her designee shall be the
representative of City for purposes of this Agreement and may issue all consents, approvals,
directives and agreements on behalf of the City, called for by this Agreement, except as otherwise
expressly provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who
shall be authorized to issue all consents, approvals, directives and agreements on behalf of
Consultant called for by this Agreement, except as otherwise expressly provided in this
Agreement.
6.3. Project Managers. City shall designate a Project Manager to work directly with
Consultant in the performance of this Agreement.
Consultant shall designate a Project Manager who shall represent it and be its
agent in all consultations with City during the term of this Agreement. Consultant or its Project
Manager shall attend and assist in all coordination meetings called by City.
6.4. Notices. Any notices, documents, correspondence or other communications
concerning this Agreement or the work hereunder may be provided by personal delivery or mail
and shall be addressed as set forth below. Such communication shall be deemed served or
delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b)
48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such
communication is sent through regular United States mail.
IF TO CONSULTANT: IF TO CITY:
HdL Companies
120 S. State College Blvd. Suite 200
Brea, CA 92821
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: (714) 897-5000 Tel: (714) 754-5062
Attn: David McPherson Attn: Cathleen Serrano
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Courtesy copy to:
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Attn: Finance Dept. | Purchasing
6.5. Drug-Free Workplace Policy. Consultant shall provide a drug-free workplace by
complying with all provisions set forth in City’s Council Policy 100-5, attached hereto as Exhibit
“B” and incorporated herein by reference. Consultant’s failure to conform to the requirements set
forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall be
cause for immediate termination of this Agreement by City.
6.6. Attorneys’ Fees. In the event that litigation is brought by any party in connection
with this Agreement, the prevailing party shall be entitled to recover from the opposing party all
costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the
exercise of any of its rights or remedies hereunder or the enforcement of any of the terms,
conditions, or provisions hereof.
6.7. Governing Law. This Agreement shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to conflict of
laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto
agree that the sole and exclusive venue shall be a court of competent jurisdiction located in
Orange County, California.
6.8. Assignment. Consultant shall not voluntarily or by operation of law assign,
transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without
City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall
be void and shall constitute a breach of this Agreement and cause for termination of this
Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant
of Consultant’s obligation to perform all other obligations to be performed by Consultant
hereunder for the term of this Agreement.
6.9. Indemnification and Hold Harmless. Consultant agrees to defend, indemnify,
hold free and harmless the City, its elected officials, officers, agents and employees, at
Consultant’s sole expense, from and against any and all claims, actions, suits or other legal
proceedings brought against the City, its elected officials, officers, agents and employees arising
out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the
work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall
apply without any advance showing of negligence or wrongdoing by the Consultant, its
employees, and/or authorized subcontractors, but shall be required whenever any claim, action,
complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the
Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action,
complaint or suit asserts liability against the City, its elected officials, officers, agents and
employees based upon the work performed by the Consultant, its employees, and/or authorized
subcontractors under this Agreement, whether or not the Consultant, its employees, and/or
authorized subcontractors are specifically named or otherwise asserted to be liable.
Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification
of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful
misconduct of the City. This provision shall supersede and replace all other indemnity provisions
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contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force
and effect.
6.10. Independent Contractor. Consultant is and shall be acting at all times as an
independent contractor and not as an employee of City. Consultant shall have no power to incur
any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.
Neither City nor any of its agents shall have control over the conduct of Consultant or any of
Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time,
or in any manner, represent that it or any of its agents or employees are in any manner agents or
employees of City. Consultant shall secure, at its sole expense, and be responsible for any and
all payment of Income Tax, Social Security, State Disability Insurance Compensation,
Unemployment Compensation, and other payroll deductions for Consultant and its officers,
agents, and employees, and all business licenses, if any are required, in connection with the
services to be performed hereunder. Consultant shall indemnify and hold City harmless from any
and all taxes, assessments, penalties, and interest asserted against City by reason of the
independent contractor relationship created by this Agreement. Consultant further agrees to
indemnify and hold City harmless from any failure of Consultant to comply with the applicable
worker’s compensation laws. City shall have the right to offset against the amount of any fees due
to Consultant under this Agreement any amount due to City from Consultant as a result of
Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under
this paragraph.
6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee,
agent, or subcontractor of Consultant providing services under this Agreement claims or is
determined by a court of competent jurisdiction or the California Public Employees Retirement
System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer
contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or
ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors
providing service under this Agreement shall not qualify for or become entitled to, and hereby
agree to waive any claims to, any compensation, benefit, or any incident of employment by City,
including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to
any contribution to be paid by City for employer contribution and/or employee contributions for
PERS benefits.
6.12. Cooperation. In the event any claim or action is brought against City relating to
Consultant’s performance or services rendered under this Agreement, Consultant shall render
any reasonable assistance and cooperation which City might require.
6.13. Ownership of Documents. All findings, reports, documents, information and data
including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by
Consultant or any of its subcontractors in the course of performance of this Agreement, shall be
and remain the sole property of City. Consultant agrees that any such documents or information
shall not be made available to any individual or organization without the prior consent of City. Any
use of such documents for other projects not contemplated by this Agreement, and any use of
incomplete documents, shall be at the sole risk of City and without liability or legal exposure to
Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses,
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and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such
documents for other projects not contemplated by this Agreement or use of incomplete documents
furnished by Consultant. Consultant shall deliver to City any findings, reports, documents,
information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes
or any other Project related items as requested by City or its authorized representative, at no
additional cost to the City.
6.14. Public Records Act Disclosure. Consultant has been advised and is aware that
this Agreement and all reports, documents, information and data, including, but not limited to,
computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors,
pursuant to this Agreement and provided to City may be subject to public disclosure as required
by the California Public Records Act (California Government Code section 6250 et seq.).
Exceptions to public disclosure may be those documents or information that qualify as trade
secrets, as that term is defined in the California Government Code section 6254.7, and of which
Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all
information obtained by it that is designated as a trade secret. The City shall not, in any way, be
liable or responsible for the disclosure of any trade secret including, without limitation, those
records so marked if disclosure is deemed to be required by law or by order of the Court.
6.15. Conflict of Interest. Consultant and its officers, employees, associates and
subconsultants, if any, will comply with all conflict of interest statutes of the State of California
applicable to Consultant's services under this agreement, including, but not limited to, the Political
Reform Act (Government Code sections 81000, et seq.) and Government Code section 1090.
During the term of this Agreement, Consultant and its officers, employees, associates and
subconsultants shall not, without the prior written approval of the City Representative, perform
work for another person or entity for whom Consultant is not currently performing work that would
require Consultant or one of its officers, employees, associates or subconsultants to abstain from
a decision under this Agreement pursuant to a conflict of interest statute.
6.16. Responsibility for Errors. Consultant shall be responsible for its work and results
under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation
as may be required by the City’s representative, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attributable to
Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design
drawings, estimates and other Consultant professional services necessary to rectify and correct
the matter to the sole satisfaction of City and to participate in any meeting required with regard to
the correction.
6.17. Prohibited Employment. Consultant will not employ any regular employee of City
while this Agreement is in effect.
6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any
of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent
this Agreement incorporates by reference any provision of any document, such provision shall be
deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and
conditions of this Agreement and those of any such provision or provisions so incorporated by
reference, this Agreement shall govern over the document referenced.
6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation
and negotiation of this Agreement and in the performance of its obligations hereunder except as
expressly provided herein.
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6.20. Binding Effect. This Agreement binds and benefits the parties and their respective
permitted successors and assigns.
6.21. No Third Party Beneficiary Rights. This Agreement is entered into for the sole
benefit of City and Consultant and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall have any right in, under or to this
Agreement.
6.22. Headings. Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain or to be a full or
accurate description of the content thereof and shall not in any way affect the meaning or
interpretation of this Agreement.
6.23. Construction. The parties have participated jointly in the negotiation and drafting
of this Agreement and have had an adequate opportunity to review each and every provision of
the Agreement and submit the same to counsel or other consultants for review and comment. In
the event an ambiguity or question of intent or interpretation arises with respect to this Agreement,
this Agreement shall be construed as if drafted jointly by the parties and in accordance with its
fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party
by virtue of the authorship of any of the provisions of this Agreement.
6.24. Amendments. Only a writing executed by the parties hereto or their respective
successors and assigns may amend this Agreement.
6.25. Waiver. The delay or failure of either party at any time to require performance or
compliance by the other of any of its obligations or agreements shall in no way be deemed a
waiver of those rights to require such performance or compliance. No waiver of any provision of
this Agreement shall be effective unless in writing and signed by a duly authorized representative
of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy
in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in
respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
6.26. Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall not
affect the validity or enforceability of the remaining terms and provisions hereof or of the offending
provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement,
based upon the substantial benefit of the bargain for any party, is materially impaired, which
determination made by the presiding court or arbitrator of competent jurisdiction shall be binding,
then both parties agree to substitute such provision(s) through good faith negotiations.
6.27. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original. All counterparts shall be construed together and shall
constitute one agreement.
6.28. Corporate Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said
parties and that by doing so the parties hereto are formally bound to the provisions of this
Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their respective authorized officers, as of the date first above written.
CONSULTANT
__________________________________ Date: __________________________
Signature
__________________________________
[Name and Title]
CITY OF COSTA MESA
__________________________________ Date: __________________________
Lori Ann Farrell Harrison
City Manager
ATTEST:
__________________________________
Brenda Green
City Clerk
APPROVED AS TO FORM:
__________________________________ Date: __________________________
Kimberly Hall Barlow
City Attorney
APPROVED AS TO INSURANCE:
__________________________________ Date: __________________________
Ruth Wang
Risk Management
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APPROVED AS TO CONTENT:
__________________________________ Date: __________________________
Cathleen Serrano
Project Manager
DEPARTMENTAL APPROVAL:
__________________________________ Date: __________________________
Carol Molina
Finance Director
APPROVED AS TO PURCHASING:
__________________________________ Date: __________________________
Carol Molina
Finance Director
EXHIBIT A
CONSULTANT’S PROPOSAL
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EXHIBIT B
CITY COUNCIL POLICY 100-5
CITY OF COSTA MESA, CALIFORNIA
COUNCIL POLICY
BACKGROUND
Under the Federal Drug-Free Workplace Act of 1988, passed as part of omnibus drug legislation
enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will
provide drug-free workplaces. At the present time, the City of Costa Mesa, as a sub-grantee of
Federal funds under a variety of programs, is required to abide by this Act. The City Council has
expressed its support of the national effort to eradicate drug abuse through the creation of a
Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools and
other activities in support of a drug-free community. This policy is intended to extend that effort
to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs in the
workplace.
PURPOSE
It is the purpose of this Policy to:
1. Clearly state the City of Costa Mesa’s commitment to a drug-free society.
2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving
funds from the City of Costa Mesa share the commitment to a drug-free workplace.
POLICY
The City Manager, under direction by the City Council, shall take the necessary steps to see that
the following provisions are included in all contracts and agreements entered into by the City of
Costa Mesa involving the disbursement of funds.
1. Contractor or Sub-grantee hereby certifies that it will provide a drug-free workplace by:
A. Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited in
Contractor’s and/or sub-grantee’s workplace, specifically the job site or location
included in this contract, and specifying the actions that will be taken against the
employees for violation of such prohibition;
B. Establishing a Drug-Free Awareness Program to inform employees about:
SUBJECT
DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5
EFFECTIVE
DATE
8-8-89
PAGE
1 of 3
SUBJECT
DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5
EFFECTIVE
DATE
8-8-89
PAGE
2 of 3
1. The dangers of drug abuse in the workplace;
2. Contractor’s and/or sub-grantee’s policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation and employee assistance programs;
and
4. The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
C. Making it a requirement that each employee to be engaged in the performance of the
contract be given a copy of the statement required by subparagraph A;
D. Notifying the employee in the statement required by subparagraph 1 A that, as a
condition of employment under the contract, the employee will:
1. Abide by the terms of the statement; and
2. Notify the employer of any criminal drug statute conviction for a violation occurring
in the workplace no later than five (5) days after such conviction;
E. Notifying the City of Costa Mesa within ten (10) days after receiving notice under
subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such
conviction;
F. Taking one of the following actions within thirty (30) days of receiving notice under
subparagraph 1 D 2 with respect to an employee who is so convicted:
1. Taking appropriate personnel action against such an employee, up to and
including termination; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a Federal, State, or local
health agency, law enforcement, or other appropriate agency;
SUBJECT
DRUG-FREE WORKPLACE
POLICY
NUMBER
100-5
EFFECTIVE
DATE
8-8-89
PAGE
3 of 3
G. Making a good faith effort to maintain a drug-free workplace through implementation
of subparagraphs 1 A through 1 F, inclusive.
2. Contractor and/or sub-grantee shall be deemed to be in violation of this Policy if the City
of Costa Mesa determines that:
a. Contractor and/or sub-grantee has made a false certification under paragraph 1
above;
b. Contractor and/or sub-grantee has violated the certification by failing to carry out
the requirements of subparagraphs 1 A through 1 G above;
c. Such number of employees of Contractor and/or sub-grantee have been convicted
of violations of criminal drug statutes for violations occurring in the workplace as
to indicate that the contractor and/or sub-grantee has failed to make a good faith
effort to provide a drug-free workplace.
3. Should any contractor and/or sub-grantee be deemed to be in violation of this Policy
pursuant to the provisions of 2 A, B, and C, a suspension, termination or debarment
proceeding subject to applicable Federal, State, and local laws shall be conducted. Upon
issuance of any final decision under this section requiring debarment of a contractor and/or
sub-grantee, the contractor and/or sub-grantee shall be ineligible for award of any
contract, agreement or grant from the City of Costa Mesa for a period specified in the
decision, not to exceed five (5) years. Upon issuance of any final decision recommending
against debarment of the contractor and/or sub-grantee, the contractor and/or sub-grantee
shall be eligible for compensation as provided by law.