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PURCHASE OF SERVICE AGREEMENT-FOURTH OF JULY PARADE
THIS AGREEMENT is made and entered into this Oday of -3-0 e, , 2012,by and
between the CITY OF ELGIN, Illinois, a municipal corporation(hereinafter referred to as the"City"),
and Downtown Neighborhood Association of Elgin, a not-for-profit corporation organized and existing
under the laws of the State of Illinois (hereinafter referred to as the "Service Provider").
WHEREAS,the City has determined that it would serve a beneficial public purpose to enter into
an agreement with the Service Provider for the Service Provider to provide certain contract services as
described in this agreement; and
WHEREAS,the Service Provider represents that it has the necessary expertise and experience to
furnish the Subject Services upon the terms and conditions set forth in this agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,
the sufficiency of which is hereby acknowledged,the parties hereto hereby agree as follows:
1. The Service Provider shall provide all of the services pursuant to the terms and
conditions and on the dates and times as described in the document entitled Fourth of July Parade -
Scope of Services for 201 Purchase of Service Agreement, attached hereto as Exhibit A and made a
part hereof(such services including the terms,conditions, dates and times are hereinafter referred to as
the "Subject Services"). In the event of any conflict between the provisions of this agreement and the
provisions in Exhibit A,the provisions of this agreement shall control. The Service Provider represents
and warrants that the Service Provider has the skills and knowledge necessary to conduct the Subject
Services provided for in Exhibit A and that the Subject Services set forth in Exhibit A are integral parts
of this agreement and may not be modified, amended or altered except by a written amendment to this
agreement agreed to and executed by both parties hereto.
2. The Service Provider shall address all inquiries and requests made pursuant to this
agreement to the Assistant City Manager of the City or his designee.
3. In connection with the Subject Services to be performed on other than City properties,the
Service Provider warrants and agrees to maintain all facilities and equipment used in the performing of
the Subject Services in a clean, sanitary and safe condition and free from defects of every kind
whatsoever. Service Provider agrees and warrants that the Service Provider will periodically inspect all
of such facilities and equipment for such purposes. Service Provider also warrants that the Service
Provider and the Service Provider's facilities and equipment used in the performing of the Subject
Services are not now,nor shall be during the term of this agreement in violation of any health,building,
fire or zoning code or regulation or other applicable requirements of law. In connection with the Subject
Services on properties owned or controlled by the City, Service Provider agrees and warrants to use, and
to cause persons participating in the Subject Services to use,through proper supervision and control, all
facilities with due care,and to report all defects in or damage to any such facilities, and the cause
thereof, if known, immediately to the Assistant City Manager of the City.
4. The City shall reimburse the Service Provider for the Subject Services under this agreement the
total amount of Ten Thousand($10,000). Such payment by the City to the Service
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Provider shall be made in one installment of Ten Thousand($10,000)within 30 days of the date of this
agreement. However,the payment shall not be made prior to 8 days after the Service Provider's
submission of the budget document and audited financial statement documents referred to in paragraph 6
of this agreement.
5. The Service Provider shall apply the monies to be paid by the City to the Service
Provider pursuant to the proceeding paragraph hereof to expenses included in Exhibit A and the
proposed budget submitted by DNA.
6. The Service Provider shall complete, maintain and submit to the Assistant City
Manager of the City, or his designee, any and all records, reports and forms relating to the Subject
Services in this agreement as requested by the City. Without limiting the foregoing, the parties further
agree as follows:
A. The Service Provider shall provide a budget to the City which shall reflect the
projected distribution of funds received from the City pursuant to this agreement during
the term of this agreement. The budget shall be submitted to the Assistant City Manager
of the City prior to any payment by the City.
B. The Service Provider shall provide written performance reports detailing the
disbursements of the monies to be paid by the City to the Service Provider pursuant to
this agreement. This report shall be provided to the City on September 12, 2012.
C. The City has the right to review all accounting records of the Service Provider
related to the use of the monies to be paid by the City to the Service Provider pursuant to
this agreement upon 72 hours advance notice from the City to the Service Provider.
D. The Service Provider shall have an audit performed on its financial statements for
the year ending December 31,2011. The audit must be performed by an independent
certified public accountant recognized in good standing by the American Institute of
Certified Public Accountants and licensed in the State of Illinois. The Service Provider
shall provide the City with two copies of the said audited financial statement along with
the management letter and any other correspondence related to internal control matters on
or before July 14, 2012. These statements shall be submitted to the Assistant City
Manager at City Hall, 150 Dexter Court, Elgin, Illinois 60120-5555.
7. In the event this agreement is terminated, or in the event the Subject Services for which
the City funds provided herein are to be applied are discontinued, or the Service Provider ceases its
operations prior to December 31, 2012 the Service Provider shall refund to the City on a prorated per
diem basis the funds paid hereunder for the portion of the year remaining after any such termination or
for the portion of the year the Subject Services were not conducted.
8. Service Provider agrees and warrants that notwithstanding any other provision of this
Agreement that in connection with the performance and/or providing of the Subject Services in this
Agreement that the Service Provider shall comply with all applicable federal, state, city and other
requirements of law, including, but not limited to,any applicable requirements regarding prevailing
wages,minimum wage, workplace safety and legal status of employees. Without limiting the foregoing,
Service Provider hereby certifies,represents and warrants to the City that all of the Service Provider's
employees and/or agents who will be performing and/or providing the Subject Services with respect to
this Agreement shall be legal residents of the United States. Service Provider shall also at its expense
secure all permits and licenses,pay all charges and fees and give all notices necessary and incident to
the due and lawful performance of the Subject Services to be provided for in this Agreement. Service
Provider shall also perform and provide the Subject Services with due care. The City shall have the right
to audit any records in the possession of control of the Service Provider to determine the Service
Provider's compliance with the provisions of this section. In the event the City proceeds with such an
audit,the Service Provider shall make available to the City the Service Provider's relevant records at no
cost to the City.
9. The City of Elgin shall be recognized as a sponsor of the Service Provider and shall
receive the benefits of sponsorship consistent with the level of support provided in this agreement.
At a minimum,the City's support shall be acknowledged on all print materials promoting the Service
Provider's organization,press releases,radio advertising,web page information and event program(s)
through the following mandatory funding identification statement: "Funding for the organization is
provided in part through the City of Elgin". Three samples of this acknowledgement shall be provided to
the City. A logo provided by the City to the Service Provider shall be used for this purpose.
10. In all printed materials in which a City seal or logo is deemed appropriate, approval by
the Assistant to the City Manager for Community Engagement of the City is required prior to printing.
11. The term of this agreement shall commence from the date of the execution hereof and
continue through December 31, 2012.
12. This agreement shall not be construed so as to create a partnership,joint venture,
employment or other agency relationship between the parties hereto. Service Provider understands and
agrees that the relationship of the Service Provider to the City arising out of this agreement shall be that
of an independent contractor. It is expressly agreed and understood that the Service Provider and the
Service Provider's officers, employees and agents are not employees of the City and are not entitled to
any benefits or insurance provided to employees of the City.
13. If either party violates or breaches any term of this agreement, such violation or breach
shall be deemed to constitute a default, and the other party has the right to seek administrative
contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either
party by reason of any default, fails to within fifteen(15) days after notice thereof by the other party to
comply with the conditions of the agreement,the other party may terminate this agreement. In the event
any legal action is brought by the City for the enforcement of any of the obligations of the Service
Provider in this agreement and the City is the prevailing party in such action,the City shall also be
entitled to recover from the Service Provider reasonable interest and reasonable attorney's fees.
14. Notwithstanding any other provision hereof,the City may terminate this agreement at any
time upon thirty(30)days prior written notice to the Service Provider. In the event this agreement is so
terminated,the Service Provider shall be paid for services actually performed, and reimbursable
expenses actually incurred prior to termination, except that reimbursement shall not in any event exceed
the total amount set forth under paragraph 4 above. Additionally, in the event this agreement is so
terminated,the Service Provider shall immediately cease the expenditure of any funds paid to the
Service Provider by the City and shall refund to the City any unearned or unexpended funds.
15. To the fullest extent permitted by law, Service Provider agrees to indemnify, defend and
hold harmless the City, its officers, employees, agents,boards and commissions from and against any
and all claims, suits,judgments, costs, attorney's fees,damages or other relief, including but not limited
to worker's compensation claims, in any way resulting from or arising out of negligent actions or
omissions of the Service Provider in connection herewith, including negligence or omissions or agents
of the Service Provider arising out of the performance of this agreement and/or the Subject Services. In
the event of any action against the City, its officers, employees, agents,boards or commissions covered
by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal
counsel of the City's choosing. The provisions of this section shall survive any expiration, completion
and/or termination of this agreement.
16. The Service Provider shall provide,pay for and maintain in effect,during the term of this
agreement, comprehensive automobile liability insurance covering all owned,non-owned and hired
motor vehicles used in connection with the Subject Services with limits of not less than$500,000 per
occurrence for damages to persons or property. The Service Provider shall also provide,pay for and
maintain in effect, during the term of this agreement,worker's compensation insurance in amounts
required under the laws of the State of Illinois. At the request of the City the Service Provider shall
provide to the City certificates of insurance regarding the insurance required in this paragraph.
17. No official, director, officer, agent or employee of the City shall be charged personally or
held contractually liable under any term or provision of this Agreement or because of their execution,
approval or attempted execution of this Agreement.
18. In all hiring or employment made possible or resulting from this Agreement,there shall
be no discrimination against any employee or applicant for employment because of sex, age, race, color,
creed, national origin,marital status, of the presence of any sensory, mental or physical handicap, unless
based upon a bona fide occupational qualification, and this requirement shall apply to,but not be limited
to,the following: employment advertising, layoff or termination,rates of pay or other forms of
compensation and selection for training, including apprenticeship.
19. No person shall be denied or subjected to discrimination in receipt of the benefit of any
services or activities made possible by or resulting from this Agreement on the grounds of sex, race,
color, creed,national origin, age except minimum age and retirement provisions, marital status or the
presence of any sensory, mental or physical handicap. Any violation of this provision shall be
considered a violation of a material provision of this Agreement and shall be grounds for cancellation,
termination or suspension, in whole or in part, of the Agreement by the City.
20. The parties intend and agreed that, if any paragraph, sub-paragraph,phrase, clause or
other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise
unenforceable, all other portions of this Agreement shall remain in full force and effect.
21. This Agreement and its exhibits constitutes the entire Agreement of the parties on the
subject matter hereof and may not be changed, modified, discharged or extended except by written
amendment duly executed by the parties. Each party agrees that no representations or warranties shall be
binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof.
22. This Agreement shall be deemed to have been made in, and shall be construed in
accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the
enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County,
Illinois.
23. The Service Provider certifies hereby that it is not barred from bidding on a public
contact as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute
regarding bid rigging.
24. As a condition of this contract,the Service Provider shall have written sexual harassment
policies that include, at a minimum,the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment,utilizing examples;
D. the vendor's internal complaint process including penalties;
E. the legal recourse, investigative and complaint process available through the Illinois
Department of Human Rights,and the Illinois Human Rights Commission;
F. directions on how to contact the department and commission;
G. protection against retaliation as provided by Section 6-101 of the Human Rights Act.
A copy of the policies must be provided to the Department of Human Rights upon
request(775 ILCS 5/2-105).
25. As a condition of this agreement,the Service Provider shall have in place a written
substance abuse prevention program which meets or exceeds the program requirements in the
Substance Abuse Prevention Public Works Act at 820 ILCS 265/1 et seq. A copy of such policy shall be
provided to the City's Assistant City Manager prior to the entry and execution of this agreement.
26. Notwithstanding any other provision in this agreement, it is expressly agreed and
understood that in connection with the performance of this agreement the Service Provider shall comply
with all applicable federal, state, city and other requirements of law including, but not limited to, any
applicable requirements regarding prevailing wages,minimum wage, workplace safety and legal status
of employees. Without limiting the foregoing,the Service Provider hereby certifies,represents and
warrants to the City that all of Service Provider's employees and/or agents who will be providing
products, and/or services with respect to this agreement shall be legal residents of the United States.
Service Provider shall also at its expense secure all permits and licenses,pay all charges and fees and
give all notices necessary and incident to the due and lawful prosecution of the work,and/or the
products and/or services to be provided pursuant to this agreement. City shall have the right to audit any
records in the possession or control of the Service Provider to determine the Service Provider's
compliance with the provisions of this section. In the event the City proceeds with such an audit,the
Service Provider shall make available to the City the City's relevant records at no cost to the City. The
provisions of this section shall survive any expiration, completion and/or termination of this agreement.
27. Notwithstanding anything to the contrary in this agreement, with the sole exception of the
monies the City has agreed to pay the Service Provider pursuant to Section 4 hereof, no action shall be
commenced by the Service Provider, any related persons or entities, and/or any of their successors
and/or assigns, against the City for monetary damages. The provisions of this section shall survive any
expiration, completion and/or termination of this agreement.
28. All notices, reports and documents required under this Agreement shall be in writing and
shall be mailed by First Class Mail,postage prepaid, addressed as follows:
As to the City: As to Service Provider:
City of Elgin Downtown Neighborhood Association
150 Dexter Court 2 Douglas Avenue
Elgin, IL 60120-5555 Elgin, IL 60120
Attention: Rick Kozal Attention: Jason Pawlowski
Assistant City Manager Acting Executive Director
With a copy to:
William A. Cogley, Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
29. This agreement is and shall be deemed to construe to be a joint and collective work
product of the City and the Service Provider and, as such,this agreement shall not be construed against
the other party, as the otherwise purported drafter of same,by any court of competent jurisdiction in
order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, of the terms and provisions
contained herein.
30. This agreement shall be binding on the parties hereto and their respective successors and
permitted assigns. This agreement and the obligations herein may not be assigned by the Service
Provider without the express written consent of the City which consent may be withheld at the sole
discretion of the City.
IN WITNESS WHEREOF,the undersigned have entered into executed this agreement on the date and
year first written above.
CITY OF ELGIN, a municipal Downtown Neighborhood Association
corporation
By: .^!ger By:
Ci anager
• EXHIBIT A
FOURTH OF JULY PARADE—SCOPE OF SERVICES
FOR 2ollyu HASE OF SERVICE AGREEMENT
1. DNA shall spend the budgeted ount for entertainment purposes as outlined in the attached
2012 Fourth of July Parade Proposed Budget.
2. The City of Elgin's Special Event and Community Engagement Coordinator shall serve as a
member of the committee for the Fourth of July Parade.
3. The City's support shall be acknowledged as the main sponsor of the Event and shall receive the
benefits of sponsorship consistent with the level of support provided in this agreement. The City's
support shall be acknowledged on all print materials as a main sponsor promoting the Event in press
releases, radio advertising,web page information and event program(s)through the following mandatory
funding identification statement: "The City of Elgin and the Downtown Neighborhood Association
Present the Annual Fourth of July Parade." Three samples of this acknowledgement shall be provided to
the City. A logo provided by the City to the Service Provider shall be used for this purpose.
4. In all printed materials in which a City seal or logo is deemed appropriate, approval by the
Assistant to the City Manager for Community Engagement of the City is required prior to printing.
5. DNA shall provide all services for organizing and conducting the Event and all activities
associated therewith such as registration and mailing material, soliciting participants and/or
entertainment, securing event insurance and waivers from participants, coordinating volunteers,media
packet, coordination of the lineup the day of Event, and general coordination with appropriate City
departments and other entities.
6. DNA shall provide the marketing and promotion for the Event including but not limited to
graphic design of ad and poster,placement of ads in local media, Facebook and printing of posters.
7. City shall provide marketing and promotion for the event including but not limited to electronic
scroll board, Channel 17, and website.
8. The Event shall be conducted in the City of Elgin on July 4, 2012, commencing at 9:00 a.m. at
Douglas and Slade Avenues, continuing south on Douglas Avenue and ending at Highland Avenue,
Elgin, Illinois.
9. DNA shall provide,without cost to the City,the insurance required pursuant to Elgin
Municipal Code Section 13.25.070 naming the City as primary,non-contributory coinsured with the
limits of not less than$1,000,000 combined single limit per occurrence for bodily injury and property
damage with a general aggregate limit of not less than$2,000,000. This insurance shall apply as primary
insurance with respect to any other insurance or self-insurance to make it excess over other available
insurance; alternatively, if the insurance states that it is excess or pro rata, it shall be endorsed so as to be
primary respect to the City.
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10. City shall be responsible for 2 buses/vans with drivers, installation of barricades, street sweeping,
set-up and tear down of the truss, sound equipment and staff technicians, and police officers to assist
with the security of the Event.
11. DNA shall make the best effort attempt to provide all event information to the City to assist in
answering requests by both participants and/or residents.