2010/06/01 Kosmont and Associates, Inc. Steve Harding Agreement CITY MANAGER -
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT for Professional Services ("Agreement") is made this 1st day of
June, 2010, ("Effective Date") by and between the CITY OF MENIFEE ("City") and Kosmont &
Associates, Inc., doing business as "Kosmont Companies" (Consultant") (together sometimes
referred to the "Parties") in order to provide for interim city manager services to the City on the
terms and conditions set out here.
Section 1. SERVICES. Consultant has specific skills to fill the special assignment of interim
City Manager services on a short-term basis. Subject to the terms and conditions set forth in this
Agreement, Consultant shall provide interim City Manager services as follows: Consultant's
designated contractor, Stephen Harding, shall be present at Menifee City Hall five days per
week (Monday through Friday) at such times as necessary to carry out the provisions of this
Agreement and otherwise shall be available by telephone (including text messaging) and email,
and shall be otherwise available 24/7 in case of emergency. Mr. Harding will attend City events
as requested by the City Council.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date
and shall continue until terminated pursuant to Section 8 of this Agreement.
1.2 Standard of Performance. Consultant shall perform all services required
pursuant to this Agreement to the standards required of city managers and to the
sole satisfaction of the City Council. Consultant shall complete a Form 700 within
30 days of the date of execution of this Agreement and specifically states that
it/he has reviewed the requirements of state law and regulation and has no
conflicts of interest as to any matters within the City or involving individual
Council members of which he is aware at this time. Consultant further states that
it/he has made no campaign contributions to any Council members and that he
will not do so during the term of this Agreement.
1.4 Time. Consultant shall devote such time to the performance of services
pursuant to this Agreement as may necessary to satisfy Consultant's obligations
hereunder.
1.5 Assignment of Personnel. Consultant understands that the selection is based
upon the specific experience and competence of Stephen Harding and that Mr.
Harding shall provide all services hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a fixed monthly
amount of $20,000/month for all services to be performed hereunder and any and all
reimbursable costs of any kind incurred under this Agreement. Reimbursable expenses shall
include the cost of attendance at conferences Consultant is requested to attend on behalf of the
City.
2.1 Invoices/Procedure. Consultant understands that the City Code provides for
the review and approval of all invoices on the warrant register by the City
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Manager or Finance Director. Consultant further understands that the review
and approval of its/his invoices as City Manager raises a potential conflict of
interest issue. Therefore, Consultant discloses such conflict and specifically
agrees that all invoices under this Agreement shall be submitted directly to the
Finance Director and shall be reviewed and approved by her without any input or
influence from Consultant !other than to respond to questions in his capacity as a
Consultant). Further, such invoices shall not be placed on the warrant register for
approval until the Finance Director has confirmed her approval with the City's
Finance Committee. No recommendation by the City Manager for approval of the
warrant register shall be deemed to include the approval of its invoices.
2.2 Monthly Payment. City shall have 30 days from the receipt of an invoice that
complies with all of the requirements above to pay Consultant.
2.7 Payment of Taxes. Consultant is solely responsible for the payment of
employment and any and all other taxes incurred under this Agreement and any
federal or state taxes.
2.8 Payment upon Termination. In the event that the City or Consultant terminates
this Agreement pursuant to Section 8, the City shall compensate the Consultant
for all outstanding amounts owing as of the date of such termination.
Section 3. FACILITIES AND EQUIPMENT. Except as otherwise provided, Consultant shall,
at its sole cost and expense, provide all facilities and equipment necessary to perform the
services required by this Agreement. City shall make available to Consultant only physical
facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary
for Consultant's use while consulting with City employees and reviewing records and the
information in possession of the City. The location, quantity, and time of furnishing those
facilities shall be in the sole discretion of City.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this
Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of
insurance checked below and provide Certificates of Insurance, indicating that Consultant has
obtained or currently maintains insurance that meets the requirements of this section and which
is satisfactory, in all respects, to the City. Consultant shall maintain the insurance policies
required by this section throughout the term of this Agreement. The cost of such insurance shall
be included in the Consultant's compensation. Verification of the required insurance shall be
submitted and made part of this Agreement prior to execution.
4.1 Workers' Compensation. Consultant shall provide City with a certificate of
insurance from its workers compensation carrier, for the purpose of any issues
that arise from Consultant's employees supporting Mr. Harding. Additionally, Mr.
Harding will provide a statement to City, stating that he is self-employed and has
no employees.
4.2 General and Automobile Liability Insurance.
4.2.1 Consultant, at its own cost and expense, shall maintain commercial
general and automobile liability insurance for the term of this Agreement
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in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per
occurrence, combined single limit coverage, for risks associated with the
work contemplated by this Agreement. If a Commercial General Liability
Insurance or an Automobile Liability form or other form with a general
aggregate limit is used, either the general aggregate limit shall apply
separately to the work to be performed under this Agreement or the
general aggregate limit shall be at least twice the required occurrence
limit. Such coverage shall include but shall not be limited to, protection
against claims arising from bodily and personal injury, including death
resulting there from, and damage to property resulting from activities
contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at
least as broad as Insurance Services Office Commercial General Liability
occurrence form CG 0001 or GL 0002 (most recent editions) covering
comprehensive General Liability and Insurance Services Office form
number GL 0404 covering Broad Form Comprehensive General Liability.
Automobile coverage shall be at least as broad as Insurance Services
Office Automobile Liability form CA 0001 (ed. 12/90) Code 8 and 9. No
endorsement shall be attached limiting the coverage.
4.4.3 Notice of Reduction in or Cancellation of Coverage. A certified
endorsement shall be attached to all insurance obtained pursuant to this
Agreement stating that coverage shall not be suspended, voided,
canceled by either party, or reduced in coverage or in limits, except after
thirty (30) days' prior written notice by certified, mail, return receipt
requested, has been given to the City. In the event that any coverage
required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Consultant shall provide written notice to
City at Consultant's earliest possible opportunity and in no case later than
ten (10) working days after Consultant is notified of the change in
coverage.
4.4.4 Additional insured; primary insurance. City and its officers,
employees, agents, and authorized volunteers shall be covered as
additional insureds with respect to each of the following: liability arising
out of activities performed by or on behalf of Consultant, including the
insured's general supervision of Consultant; products and completed
operations of Consultant, as applicable; premises owned, occupied, or
used by Consultant; and automobiles owned, leased, or used by the
Consultant in the course of providing services pursuant to this
Agreement. The coverage shall contain no special limitations on the
scope of protection afforded to City or its officers, employees, agents, or
authorized volunteers.
A certified endorsement must be attached to all policies stating that
coverage is primary insurance with respect to the City and its officers,
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officials, employees and volunteers, and that no insurance or self-
insurance maintained by the City shall be called upon to contribute to a
loss under the coverage.
Section 5. INDEMNIFICATION
Consultant shall indemnify and hold harmless the City and its officials, officers, employees.
agents and authorized volunteers from and against any and all losses, liability, claims, suits,
actions, damages and causes of action arising out of any personal injury, bodily injury, loss of
life or damage to property, to the extent caused, in whole or in part, by the willful misconduct or
negligent acts or omissions of Consultant or its employees, subcontractors or agents, except
when (1) the injury, loss of life, damage to property or violation of law arises wholly from the
negligence or willful misconduct of the City or its officers, employees, agents or authorized
volunteers, other than Consultant's employees.
In no event will Consultant indemnify City for actions brought by parties related to City Council
actions, including but not limited to actions related to the City's denial or approval of a project,
City actions related to processing a project or project application, challenges brought related to
the California Environmental Quality Act, challenges in connection with eminent domain
proceedings and/or actions related to employee discipline, probation or termination.
It is understood by the parties that Mr. Harding is an independent contractor to Consultant, and
is not personally indemnifying City nor personally providing the insurance coverages described
in this Agreement. Consultant, Kosmont & Associates, Inc., is providing the indemnification to
City and the insurance coverages described in this Agreement or as otherwise provided.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement,
Consultant shall be an independent contractor and shall not be an employee of
City. City shall have the right to control Consultant only insofar as the results of
Consultant's services rendered pursuant to this Agreement and assignment of
personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have
the right to control the means by which Consultant accomplishes services
rendered pursuant to this Agreement. Notwithstanding any other City, state, or
federal policy, rule, regulat;on, law, or ordinance to the contrary, Consultant and
any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to any compensation, benefit,
or any incident of employment by City, including but not limited to eligibility to
enroll in the California Public Employees Retirement System (PERS) as an
employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this
Agreement.
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7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall
comply with any and all applicable local, state and federal laws and regulations
applicable to the performance of the work hereunder.
7.3 Licenses and Permits. Consultant represents and warrants to City that
Consultant and its employees, agents, and any subcontractors have all licenses,
permits, qualifications, and approvals of whatsoever nature legally required to
practice their respective professions. Consultant represents and warrants to City
that Consultant and its employees, agents, any subcontractors shall, at their sole
cost and expense, keep in effect at all times during the term or this Agreement
any licenses, permits, and approvals that are legally required to practice their
respective professions. In addition to the foregoing, Consultant and any
subcontractors shall obtain and maintain during the term of this Agreement valid
Business Licenses from City.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City or Consultant may terminate this Agreement at any time and
without cause immediately upon written notification to Consultant. Consultant
may terminate this Agreement upon 30 days prior written notice to City.
8.3 Amendments. The parties may amend this Agreement only by a writing signed
by all the parties.
8.4 Assignment and Subcontracting. Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon
a determination of Consultant's unique personal competence, experience, and
specialized personal knowledge. Moreover, a substantial inducement to City for
entering into this Agreement was and is the professional reputation and
competence of Consultant. Consultant may not assign this Agreement or any
interest therein without the prior written approval of the Contract Administrator.
Consultant shall not subcontract any portion of the performance contemplated
and provided for herein, without prior written approval of the Contract
Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall
survive the termination of this Agreement for a period of three years following
termination of this Agreement.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant's Performance. All reports, data,
maps, models, charts, studies, surveys, photographs, memoranda, plans,
studies, specifications, records, files, or any other documents or materials, in
electronic or any other form that Consultant prepares or obtains pursuant to this
Agreement and that relate to the matters covered hereunder shall be the property
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of the City. Consultant hereby agrees to deliver those documents to the City
upon termination of the Agreement. It is understood and agreed that the
documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City
and are not necessarily suitable for any future or other use. City and Consultant
agree that, until final approval by City, all data, plans, specifications, reports and
other documents are confidential and will not be released to third parties without
prior written consent of both parties unless required by law.
9.2 Consultant's Books and Records. Consultant shall maintain any and all
ledgers, books of account, invoices, vouchers, canceled checks, and other
records or documents evidencing or relating to charges for services or
expenditures and disbursements charged to the City under this Agreement for a
minimum of three (3) years, or for any longer period required by law, from the
date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2
of this Agreement requires Consultant to maintain shall be made available for
inspection, audit, and/or copying at any time during regular business hours, upon
oral or written request of, the City. Under California Government Code Section
8546.7, if the amount of public funds expended under this Agreement exceeds
Ten Thousand Dollars ($10,000.00), the Agreement shall be subject to the
examination and audit of the State Auditor, at the request of City or as part of any
audit of the City, for a period of three (3) years after final payment under the
Agreement.
Section 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys' Fees. If either party to this Agreement brings any action, including an
action for declaratory relief, to enforce or interpret the provision of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in
addition to any other relief to which that party may be entitled and expenses.
The court may set such fees in the same action or in a separate action brought
for that purpose.
10.2 Venue. In the event that either party brings any action against the other under
this Agreement, the parties agree that trial of such action shall be venued
exclusively in Riverside County.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision
of this Agreement is invalid, void, or unenforceable, the provisions of this
Agreement not so adjudged shall remain in full force and effect. The invalidity in
whole or in part of any provision of this Agreement shall not void or affect the
validity of any other provision of this Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision
of this Agreement does not constitute a waiver of any other breach of that term or
any other term of this Agreement.
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10.5 Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of and shall apply to and bind the successors and assigns of the parties.
10.5 Notices. Any written notice to Consultant shall be sent to:
Kosmont Companies
Attention: Larry J. Kosmont, President
865 S. Figueroa Street, 35th Floor
Los Angeles, CA 90017
Any written notice to City shall be sent to the City Clerk at City Hall.
10.6 Integration. This Agreement represents the entire and integrated agreement
between City and Consultant and supersedes all prior negotiations,
representations, or agreements, either written or oral.
10.7 Counterparts. This Agreement may be executed in multiple counterparts, each
of which shall be an original and all of which together shall constitute one
agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
CITY OF MENIFEE CONSULTANT
Kosmont & Associates, Inc.
dba "Kosmont Companies"
Wallace Wallace W. Edgerton, Mayor Larry J. Kosmonf, President
Attest:
ArJv? �; -
Kathy Bennett, City Clerk
Approved as to Form:
Karen Feld, City Attorney
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