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Contract No. 1150 <br />PROFESSIONAL SERVICES AGREEMENT <br />THIS AGREEMENT is made this 5th day of November, 1996, between HENWOOD <br />ENERGY SERVICES, INC., a California corporation, (hereinafter referred to as "Consultant") <br />and the City of Colton Electric Department, (hereinafter referred to as "Client"). Client and <br />Consultant are hereinafter referred to individually as "Party" and jointly as "Parties". <br />Article 1. Services to be Performed by Consultant <br />Section 1.01. Consultant agrees to perform the services described in Exhibit A. Upon request of <br />the Client and mutual agreement of the Parties, which agreement shall be documented by <br />Consultant, additional tasks and services shall be performed by Consultant. <br />Section 1.02. Consistent with industry practice and in conjunction with Client and Client's other <br />contractors (if any), Consultant will determine the method, details and means of performing the <br />above-described services. <br />Section 1.03. Consultant shall not discuss the subject matter of this Agreement with any party <br />without prior approval of Client. <br />Article 2. Term of Agreement <br />Section 2.01. This Agreement shall become effective when executed and shall remain in effect <br />until terminated as provided herein, but shall not remain in effect beyond June 30, 1997. This <br />Agreement may be terminated by either party on sixty (60) days written notice. In the event that <br />Client terminates this Agreement, Consultant agrees to use reasonable efforts to mitigate its <br />expenses and obligations hereunder. Client shall pay for all services performed by Consultant <br />and services and/or equipment procured by Consultant, on behalf of the Client, prior to <br />termination of this Agreement. <br />Section 2.02. Should Client fail to pay Consultant all or any part of the compensation set forth in <br />Article 3 of this Agreement on the date due, Consultant, at Consultant's option, may terminate <br />this Agreement if the failure to pay is not remedied by Client within ten (10) days from the date <br />notice is given to Client that payment is past due. <br />Article 3. Compensation <br />Section 3.01. In consideration for the services to be performed by Consultant, Client shall pay <br />Consultant for its labor hours pursuant to the rate schedule which is attached as Exhibit B, or its <br />successor which shall be applicable after calendar year 1996. <br />Section 3.02. Client shall also pay, pursuant to Exhibit B or its successor, any and all reasonable <br />and necessary expenses incurred by Consultant on behalf of Client in connection with the <br />services described in Exhibit A of this Agreement. Such expenses include, but are not limited to, <br />travel, telephone, reproduction, licensing fees, and rental of specialized equipment. Such <br />expenses will also include the professional fees and expenses billed to Consultant by its <br />Page 1 <br />