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HomeMy WebLinkAboutOrdinance 4995 ORDINANCE NO. 4995 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND APPROVING A CONTRACT WITH POWER SECURE, INC. FOR THE PURCHASE OF BACK-UP POWER GENERATION EQUIPMENT AND INSTALLATION SERVICES FOR THE WEST SIDE WASTEWATER TREATMENT PLANT AND THE HAMESTRING SEWER LIFT STATION IN THE AMOUNT OF $ 1 ,986,786.68; AND APPROVING A 2% CONTINGENCY OF $403000.00. WHEREAS, due to the unique and proprietary nature of the switch gear equipment involved, the long delivery times for generators and replacement . parts, and the requirement that power management for all three major wastewater facilities be overseen by a single entity, it is essential that all three back-up generators be of the same manufacture. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, waives the requirements of formal competitive bidding for back-up power generation equipment and installation services, and approves a contract with Power Secure, Inc. for the purchase of back-up power generation equipment and installation services for the West Side Wastewater Treatment Plant and the Hamestring Sewer Lift Station in the amount of $ 1 ,986,786.68. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a 2% contingency of $40,000.00. �• F,FK/TR64 , ., c G� SG. PASSED and APPROVED this 20'h day of March, 2007. ^U G APPROVE : ATTEST: 'c : FAYETTEVILLE� By: By: DAN COODY, Mayor S NDRA E. SMITH, City Clerk/Treasurer a AGREEMENT This contract executed this Mday of IgAV )4 2007, between the City of Fayetteville, Arkansas and PowerSecure, Inc. In consideration of the mutual covenants contained herein, the parties agree as follows: 1 . PowerSecure, at its own cost and expense shall furnish all labor, materials, supplies, machinery, equipment, tools, supervision, bonds, insurance, tax permits, and all other accessories and services necessary to complete the work described in the proposal for PowerSecure Interactive Distributed Generation' Services, Westside Wastewater Treatment Facility, Fayetteville, AR, and the work described in the proposal for PowerSecure Interactive Distributed Generation' Services, Hamestring Lift Station, Fayetteville, AR, and in accordance with specifications attached hereto and made a part hereof under, all included herein as if spelled out word for word. 2. The City of Fayetteville shall pay PowerSecure based on their proposal in an amount not to exceed $ 1,986,786.68. Payments will be made after approval and acceptance of work and submission of invoice. Payments will be made approximately 30 days after receipt of invoice. 3. The Contract documents which comprise the contract between the City of Fayetteville and PowerSecure consist of this Contract and the following documents attached hereto, and made a part hereof: A. Contract General Provisions B. Exhibit A PowerSecure Interactive Distributed Generation' Services, Westside Wastewater Treatment Facility, Fayetteville, AR. C. Westside 2000kW Drawings.PDF D. Exhibit B PowerSecure Interactive Distributed Generation' Services, Hamestring Lift Station, Fayetteville, AR. E. Hamestring 2000kW Drawings.PDF 4. Freedom of Information Act: City of Fayetteville contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, the contractor will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. 25-19-101 et. Seq.). Only legally authorized photo coping costs pursuant to the FOIA, /may be assessed for this compliance. WITNESS OUR HANDS THIS dSI DAY OF U , 2007. CITY OF FAYETTEVILLE, FAYETTEVILLE, ARKANSAS DAN COODY, Mayor Agree t Page 1 of 2 AGREEMENT Attest: _ ; FAYETTEVILLE ; _? �z0 9RkANSP��2,s SONDRA SMITH, City Clerkitty C1l�eMrk�k POWERSECURE, INC. 1 i BYS , d+1ee4intrl FCes;den"r4- U j NAME AND TITLE i Attest: i i I COMPANY SECRETARY I BUSINESS ADDRESS Agreement Page 2 of 2 CONTRACT GENERAL PROVISIONS ARTICLE 1 . INVOICING AND TERMS OF PAYMENT 1 .1 CITY OF FAYETTEVILLE shall pay POWERSECURE the price specified in paragraph 2 of the agreement in accordance with the following schedule: % of Contract Price POW ERSECURE's Receipt of 15 IDG® System Purchase Order Equipment Ship Dale to 30 project site Substantial Completion of 30 Installation Final Commissioning/Start-up Commissioning/Start-up25 1 .2 Any work beyond the scope of Work described herein requested of and performed by POWERSECURE ("Additional Work") shall be billed to CITY OF FAYETTEVILLE at mutually agreed to rates. Prior to performing any Additional Work POWERSECURE will notify CITY OF FAYETTEVILLE in writing of the Additional Work requested, the reason for such request and the rates under which the Work will be performed. Changes, modifications, or amendments in scope, price or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 1 .3 The prices for the Work and any Additional Work are inclusive of federal, state, municipal or other sales or use tax. The invoice will include a line item for sales tax. 1 .4 Payment for all Work, Additional Work or other services, if any, shall be due and payable by CITY OF FAYETTEVILLE within thirty (30) days from CITY OF FAYETTEVILLE's receipt of the invoice for such Work, Additional Work or other services. POWER SECURE will, upon completion of the WORK and before final payment is due, furnish CITY OF FAYETTEVILLE with reasonable evidence that all services, labor, materials, and equipment have been paid in full and agrees to execute the Lien Waiver attached hereto as Exhibit B. 1 .5 If CITY OF FAYETTEVILLE fails to pay any invoice by the due date, CITY OF FAYETTEVILLE shall liable to POWERSECURE for any attorney fees incurred in collection of any amount due and shall pay interest to POWERSECURE on the amount past due in the amount of 1 .5% per month. ARTICLE 2. OBLIGATIONS OF POWER SECURE 2.1 Independent Power Secure POWER SECURE is an independent CONTRACTOR and will maintain complete control of and responsibility for its employees, SUBCONTRACTORS, and agents. POWER SECURE shall also be solely responsible for the means and methods for carrying out the Scope of Services and for the safety of its employees. 2.2 Lower-Tier Contractors 2.2. 1 Within 30 working days after the execution of this AGREEMENT, POWER SECURE will submit to CITY OF FAYETTEVILLE the names of all Lower-Tier Contractors proposed for the Work. POWER SECURE will not employ any Lower-Tier Contractors that CITY OF FAYETTEVILLE may object to as lacking capability to properly perform. No changes will be allowed from the approved Lower-Tier Contractor list without the prior written approval of CITY OF FAYETTEVILLE. 2.2.2 POWER SECURE agrees that it is as fully responsible to CITY OF FAYETTEVILLE for the acts and omissions of its Lower-Tier Power Secures and of persons either directly or indirectly employed by them as it is for the acts and omissions of persons directly employed by POWER SECURE. 2.2.3 Nothing contained in this CONTRACT will be construed to create any contractual relationship between any Lower-Tier Contractor and CITY OF FAYETTEVILLE. 1 of 9 CONTRACT GENERAL PROVISIONS 2.2.4 POWER SECURE will provide certification that the Lower-Tier Contractor has the necessary permits and licenses for the Work proposed. 2.3 Differing Site Conditions 2.3. 1 POWER SECURE will promptly, and before such conditions are substantially disturbed, notify CITY OF FAYETTEVILLE in writing of: •(a) Subsurface or latent physical conditions at the site differing materially from those indicated in this CONTRACT. •(b) Physical conditions at the site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in the Work. 2.3.2 Upon notice CITY OF FAYETTEVILLE will promptly investigate the conditions. If the conditions do materially differ and cause an increase or decrease in POWER SECURE's cost of, or the time required for, performing any part of the Work, CITY OF FAYETTEVILLE will make an equitable adjustment and modify this CONTRACT in writing. 2.3.3 No claim of POWER SECURE under this clause will be allowed unless POWER SECURE has given the notice required above. 2.4 Rejected Material Any material rejected by CITY OF FAYETTEVILLE because of nonconformity with this CONTRACT will be removed at once from the vicinity of the Work by POWER SECURE at its own expense. 2.5 Warranty 2.5.1 The Warranty period for equipment will be for a period of five (5) years commencing on the acceptance date and the Warranty period for services will be for a period of one (1 ) year commencing on the acceptance date. 2.5.2 POWERSECURE warrants that: 2.5.2.1 Services will be performed in a professional and workmanlike manner consistent with industry standards; 2.5.2.2 Its agents, and employees, are qualified and competent to perform the Work and Additional Work, if any, and that all tools and equipment furnished by POWERSECURE in its performance of the Work and Additional Work are, and shall be, kept in good working order. 2.5.2.3 All equipment will be free from defects in material and workmanship and will function in accordance with the specifications; 2.5.2.4 That it has the requisite authority to sell the equipment; 2.5.2.5 There are no pending or threatened claims or causes of action that would have an adverse effect on POW ERSECURE's ability to perform its obligations under this Contract or upon the City of Fayetteville of Fayetteville's ability to use the equipment; 2.5.2.6 The equipment and services will not infringe on any patent, trademark or copyright; 2.5.3 In the event that CITY OF FAYETTEVILLE or the City of Fayetteville of Fayetteville notifies POWERSECURE of any defect in materials or workmanship during the applicable warranty period, POWERSECURE shall cored the defect at its own expense. POWERSECURE shall not be responsible for any problems or defects attributable to improper operation, maintenance, or use of the Work or any Additional Work. 2.5.4 THE WARRANTIES SET FORTH IN THIS CONTRACT ARE EXCLUSIVE, AND NO OTHER WARRANTIES OR REMEDIES OF ANY KIND, WHETHER STATUTORY, WRITTEN, ORAL, EXPRESS, OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF 2of9 CONTRACT GENERAL PROVISIONS INFRINGMENT, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE, SHALL APPLY. TO THE MAXIMUM EXTENT PERMITTED, POWERSECURE HEREBY ASSIGNS TO CITY OF FAYETTEVILLE ALL EXPRESS AND IMPLIED WARRANTIES FROM THE MANUFACTURER OF ANY PARTS AND EQUIPMENT INSTALLED BY POWERSECURE AS A PART OF THE WORK (see Manufacturer's warranties for details). Except as provided in Section 2.2, POWERSECURE shall not be responsible for any work done by others or for any loss, damage, cost or expense arising out of or resulting from such work, unless authorized by POWERSECURE in advance. 2.6 Insurance 2.6.1 POWER SECURE will maintain throughout this CONTRACT the following insurance: (a) Worker's compensation insurance in the statutory amount and employees liability insurance in an amount not less than $500,000 for all employees engaged in the Work. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, non-owned, or hired vehicles, with $1 ,000,000 combined single limits. (c) Commercial general liability insurance covering claims for injuries of members of the public or damage to property of others arising out of any covered act or omission of POWER SECURE or of any of its employees, agents, or Power Secures, with $5,000,000 per occurrence and in the aggregate. (d) Any other insurance required by law (e.g., U.S. Longshoreman and Harbors Act coverage, when harbor operations, offshore operations, or operations on navigable waterways are involved). 2.6.2 Insurance coverage in Items (b) and (c) above will name CITY OF FAYETTEVILLE as additional insured. Such insurance will be the primary coverage to CITY OF FAYETTEVILLE. 2.6.3 Before commencing Work under this contract, POWER SECURE will furnish CITY OF FAYETTEVILLE with certificates of insurance verifying coverage's and additional insureds. Certificates also will state that the insurance carrier will give CITY OF FAYETTEVILLE thirty (30) days notice of any insurance cancellation or material alteration. 2.7 Indemnity 2.7.1 To the maximum extent permitted by law, POWER SECURE will indemnify CITY OF FAYETTEVILLE and its officers, Contractors, affiliated corporations, and employees from all claims, damages, losses, and costs, including litigation expenses and attorney's fees, arising out of or resulting from, or alleged to have resulted from, the performance of the Work, including any act or omission of POWER SECURE, any Lower-Tier Contractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The foregoing will not apply in the event that the claim, damages, losses, or expenses are caused by the sole negligence of CITY OF FAYETTEVILLE but will apply to losses caused by the concurrent fault or negligence of CITY OF FAYETTEVILLE and POWER SECURE. 2.7.2 This indemnification obligation shall not be limited in any way by any limitation on the amount of compensation, damages or benefits payable under workers compensation, disability benefit or other employee benefit acts. 2.8 Codes, Laws, and Regulations POWER SECURE will comply with all applicable codes, laws, regulations, standards, and ordinances in force during the term of this CONTRACT. 3of9 CONTRACT GENERAL PROVISIONS 2.9 Permits, Licenses, and Fees POWER SECURE will obtain and pay for all permits and licenses required by law that are associated with the Work. 2.10 Safety POWER SECURE is solely responsible for health and safety of its employees and its SUBCONTRACTORS. POWER SECURE shall have a health and safety plan fully compliant with health and safety laws and consistent with CITY OF FAYETTEVILLE health and safety plans. POWER SECURE shall provide all applicable safety training and equipment required in the health and safety plans. POWER SECURE is responsible for ensuring that its SUBCONTRACTORS comply with this provision. Visits and observations made by CITY OF FAYETTEVILLE will not relieve the POWER SECURE of its obligation to conduct comprehensive safety inspections of the site and provide adequate safety in conformance with this CONTRACT. 2.11 Protection of Work and Property 2.11 .1 POWER SECURE will at all times safely guard and protect from damage the Work and adjacent property. All loss or damages arising out of the nature of the Work to be done under this AGREEMENT, including, but not limited to, action of the elements, will be the responsibility of POWER SECURE. 2.11 .2 POWER SECURE will confine its equipment, the storage of materials, and the operation of its workers to limits shown on the Drawings or indicated by law, ordinances, permits, or directions of CITY OF FAYETTEVILLE and will not unreasonably encumber the premises with its materials. 2.12 Responsibility of Power Secure to Act in Emergency In emergencies affecting the safety of persons, work or property at the site and adjacent thereto, POWER SECURE will act, without previous instructions from CITY OF FAYETTEVILLE, as the situation warrants. POWER SECURE will notify CITY OF FAYETTEVILLE immediately thereafter. POWER SECURE will submit the name, address, and phone number of a responsible individual or individuals who will be available on a 24-hour basis to handle emergency problems in connection with the Work. 2.13 Equipment, Materials, and Appliances 2. 13.1 Unless otherwise stipulated, POWER SECURE will provide and pay for all materials, labor, water, tools, equipment, heat, light, power, transportation, telephone, temporary facilities, and other facilities, and incidentals necessary for the execution and completion of the Work. Unless otherwise specified, all materials will be new, and both workmanship and materials will be of good quality. 2. 13.2 In selecting and/or approving equipment for installation in the project, POWER SECURE assumes all responsibility for injury or claims resulting from failure of the equipment to comply with applicable national, state, and local safety codes or requirements, or the safety requirements of a recognized agency, or POWER SECURE's defective workmanship or materials. 2.14 Schedules and Progress Reports 2.14.1 The POWER SECURE must meet the schedule specified in the Scope of Services. When requested by CITY OF FAYETTEVILLE and within 10 days prior to the start of the Work, POWER SECURE will prepare and submit to CITY OF FAYETTEVILLE a progress schedule identifying the completion of the Work outlined in this CONTRACT, within the deadlines and milestones established herein. 2.14.2 During the progress of the Work, POWER SECURE will maintain material deliveries and employ sufficient workers and equipment to accomplish the Work in conformance with the submitted schedule or deadlines and milestones established. 2.14.3 If requested by CITY OF FAYETTEVILLE, POWER SECURE will forward to CITY OF FAYETTEVILLE on the 20th day of each month, a summary report of the progress of the various parts of the Work, slating the existing status, rale of progress, estimated time of completion, and cause of delay, if any. 4of9 CONTRACT GENERAL PROVISIONS 2.14.4 If the completion of any part of the Work or the delivery of materials is behind the schedule, POWER SECURE will submit in writing a plan for bringing the Work within the schedule. CITY OF FAYETTEVILLE may require that one or more of the following courses of action be taken by POWER SECURE to accelerate the schedule: (a) Increase the working week to 6 or 7 days (b) Increase the labor force (c) Provide and utilize additional equipment (d) Increase the working day to 10 hours or more. 2.14.5 POWER SECURE will remain on such accelerated work schedule until such time as, in the opinion of CITY OF FAYETTEVILLE, the degree of completion of the Work complies with the original schedule. All extra costs of any accelerated work schedule will be bome by POWER SECURE. 2.14.6 Failure to comply with such an accelerated work schedule may result in no further monthly progress payments until such time as the degree of completion of the Work complies with the approved schedule or a revised schedule has been approved by CITY OF FAYETTEVILLE. 2.15 Hazardous or Toxic Substances If the Work under this AGREEMENT involves hazardous or toxic substances, POWER SECURE will strictly comply with all safety or training requirements promulgated by law or regulation. 2.16 Publicity POWER SECURE will not disclose the nature of its Work on the PROJECT or engage in any other publicity public media disclosures with respect to this PROJECT without the prior written consent of CITY OF FAYETTEVILLE. 2.17 Key Personnel POWER SECURE will provide qualified personnel to perform its Work. Within 10 days of execution of this CONTRACT or receipt of a written authorization to proceed, POWER SECURE will submit a list of key personnel, including a designated project manager or superintendent, if requested by CITY OF FAYETTEVILLE. POWER SECURE will not change or reassign any of the designated key personnel without the written approval of CITY OF FAYETTEVILLE. 2.18 Copies of Data One legible copy each of all notes, field notes, drilling logs, sample classifications, drawings, including record drawings, prints, plans, and other applicable documents prepared under the terms of this CONTRACT will be delivered by POWER SECURE to CITY OF FAYETTEVILLE upon completion of the Work and prior to final payment under 1 .3 above. 2.20 Access to Records POWER SECURE will maintain accounting records, in accordance with generally accepted accounting principles and practices, to substantiate all invoiced amounts. Said records will be available for examination by CITY OF FAYETTEVILLE during POWER SECURE's normal business hours for a period of 3 years after POWER SECURE's final payment to the extent required to verify the costs incurred hereunder. 2.21 Suspension of Work POWER SECURE will, upon written notice from CITY OF FAYETTEVILLE, suspend, delay or interrupt all or a part of the Work. In such event, POWER SECURE will resume the Work upon written notice from CITY OF FAYETTEVILLE, and an extension of time and/or an equitable adjustment in compensation, if appropriate, will be mutually agreed upon. 2.22 Performance and Payment Bonds 5of9 CONTRACT GENERAL PROVISIONS POWER SECURE will furnish Performance and Payment Bonds; each in an amount equal to the total compensation under this CONTRACT, as security for compliance with the provisions of this AGREEMENT. All bonds will remain in effect for at least a year after final payment and will be in a form and from a bonding company acceptable to CITY OF FAYETTEVILLE. All .bonds will be filed with the County Clerk's office for Washington County, Arkansas before beginning work on the project. ARTICLE 3. OBLIGATIONS OF CITY OF FAYETTEVILLE 3.1 Changes 3.1 .1 CITY OF FAYETTEVILLE may, by written order, make changes, revisions, additions, deletions (collectively hereinafter called "changes") in the Work. POWER SECURE will not proceed with any proposed changes unless notified to proceed in writing by CITY OF FAYETTEVILLE. 3.1 .2 Nothing herein will be construed as relieving POWER SECURE of its obligations to perform the Work, including without limitation the failure of the parties to agree upon POWER SECURE's entitlement to, or the amount of, any adjustment in time or compensation. 3.1 .3 Any claim by POWER SECURE for an adjustment under this Article must be asserted in writing, fully supported by factual information, to CITY OF FAYETTEVILLE within 30 days from the date of receipt by POWER SECURE of the written change authorization from CITY OF FAYETTEVILLE or within such extension of that 30-day period as CITY OF FAYETTEVILLE, in its sole discretion, may grant in writing at POWER SECURE's request prior to expiration of said period.. 3. 1 .4 If the Work is reduced by changes, such action will not constitute a claim for damages based on loss of anticipated profits. 3.2 Observation of the Work CITY OF FAYETTEVILLE reserves the right, but not the obligation, to inspect or otherwise evaluate the Work during the various stages to observe the progress and quality of the Work and to determine, in general, if the Work is proceeding in accordance with the intent of this CONTRACT. CITY OF FAYETTEVILLE will not be required to make comprehensive or continuous inspections to check quality or quantity of the Work. Visits and observations made by CITY OF FAYETTEVILLE will not relieve POWER SECURE of its obligation to conduct comprehensive inspections of the Work, to furnish materials, to perforin acceptable Work, and to provide adequate safety precautions in conformance with this CONTRACT. 3.3 Limitations of CITY OF FAYETTEVILLE's Responsibilities CITY OF FAYETTEVILLE will not be responsible for POWER SECURE's means, methods, techniques, sequences or procedures of the Work, or the safety precautions including compliance with the programs incident thereto. CITY OF FAYETTEVILLE will not be responsible for POWER-SECURE's failure to perform the Work in accordance with this CONTRACT. 3.4 CITY OF FAYETTEVILLE's Right to do Work If POWER SECURE, in the opinion of CITY OF FAYETTEVILLE, neglects to prosecute the Work properly or neglects or refuses at its own cost to take up and replace Work rejected by CITY OF FAYETTEVILLE, then CITY OF FAYETTEVILLE will, without prejudice to any other right which CITY OF FAYETTEVILLE may have under this CONTRACT, take over that portion of the Work which has been improperly executed and make good the deficiencies and deduct the cost thereof from the payments then or thereafter due POWER SECURE. 3.5 Furnished Data CITY OF FAYETTEVILLE will provide POWER SECURE technical data in its possession, including, but not limited to, previous reports, maps, surveys, borings, and other information relating to POWER SECURE's Scope of Work. POWER SECURE may reasonably rely upon the accuracy of the information provided by CITY OF FAYETTEVILLE. Nothing in this clause relieves POWER SECURE of its responsibility to obtain any other data required for the execution of the Work. ARTICLE 4. GENERAL LEGAL PROVISIONS 6of9 CONTRACT GENERAL PROVISIONS 4.1 Proprietary Information Except as otherwise authorized in writing by CITY OF FAYETTEVILLE, all drawings, specifications, technical data, and other information furnished to POWER SECURE or developed by POWER SECURE or others in connection with the Scope of Work are, and will remain, the property of CITY OF FAYETTEVILLE, and may not be copied or otherwise reproduced or used in any way except in connection with the Scope of Work, or disclosed to third parties or used in any manner detrimental to the interest of CITY OF FAYETTEVILLE. 4.2 Claims for Extra Work In any case where POWER SECURE deems additional compensation will become due, POWER SECURE will notify CITY OF FAYETTEVILLE, in writing, of its intention to make claim for such compensation before it begins the Extra Work on which it bases the claim. If such notification is not given or POWER SECURE fails to keep strict account of actual cost, then POWER SECURE hereby agrees to waive the claim for such additional compensation. Such notice by POWER SECURE, and the fact that CITY OF FAYETTEVILLE has kept account of the cost, will not be construed as proving the validity of the claim. Claims for additional compensation will be made in detail and submitted, in writing, to CITY OF FAYETTEVILLE within 10 days following completion of that portion of the Extra Work for which POWER SECURE bases its claim. In case the claim is found to be just, it will be allowed and paid for as provided in this CONTRACT. 4.3 Assignment Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this CONTRACT , whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire CONTRACT are binding on the heirs, successors, and assigns of the parties hereto. 4.4 Termination 4.4.1 Termination for Convenience All or part of this CONTRACT may be terminated by CITY OF FAYETTEVILLE for its convenience. In such event, POWER SECURE will be entitled to compensation for Work competently performed up to the date of termination and reasonable termination expenses as determined within the discretion of CITY OF FAYETTEVILLE. POWER SECURE will not be entitled to compensation or profit on Work not performed. 4.4.2 Termination for Default CITY OF FAYETTEVILLE may, by written notice, terminate the whole or any part of this CONTRACT for default in the event that POWER SECURE fails to perform any of the provisions of this CONTRACT, or fails to make progress as to endanger performance of this CONTRACT in accordance with its terms, or, in the opinion of CITY OF FAYETTEVILLE, becomes financially or legally incapable of completing the Work and does not correct such to CITY OF FAYETTEVILLE's reasonable satisfaction within a period of 7 days after receipt of notice from CITY OF FAYETTEVILLE specifying such failure. If, after notice of termination, it is determined for any reason that POWER SECURE was not in default or that the default was excusable, the rights and obligations of the parties will be the same as if the notice of termination had been issued pursuant to "TERMINATION FOR CONVENIENCE" In the event of termination for default, POWER SECURE will not be entitled to termination expenses. 4.4.3 Regardless of the cause of termination, the POWER SECURE shall deliver to CITY OF FAYETTEVILLE legible copies of all completed or partially completed work products and instruments of service and all materials and equipment previously paid for by CITY OF FAYETTEVILLE. 4.4.4 The rights and remedies of CITY OF FAYETTEVILLE provided in this Article will not be exclusive and are in addition to any other rights and remedies provided by law or equity or under this CONTRACT. 4.5 Time of the Essence 749 CONTRACT GENERAL PROVISIONS Time is of the Essence with respect to POWER SECURE's performance of the Work. 4.6 Delays and Extension of Time 4.6.1 If POWER SECURE intends to file a claim for extension of time for a delay, it will, within 48 hours of the occurrence, give written notice of claim to CITY OF FAYETTEVILLE stating the circum- stances, the possible extension involved, and the reasons for the claim. Within 7 days after the cause of delay has been remedied, POWER SECURE will give written notice to CITY OF FAYETTEVILLE of the actual time extension requested. 4.6.2 Within 15 days after POWER SECURE submits to CITY OF FAYETTEVILLE a specific written request for an extension of time, CITY OF FAYETTEVILLE will make the final decision on the request for extension of time. 4.6.3 No extension of time will be considered for weather conditions normal to the area in which the Work is being performed. Unusual weather conditions, if determined by CITY OF FAYETTEVILLE to be of a severity that would stop all progress of the Work may be considered as cause for an extension of completion time. 4.6.4 Delays in delivery of equipment or material purchased by POWER SECURE or its SUBCONTRACTORS (including CITY OF FAYETTEVILLE-selected equipment) or failure of POWER SECURE or its SUBCONTRACTORS to perform will not be considered as a just cause for delay. POWER SECURE will be fully responsible for the timely ordering, scheduling, expediting, delivery, and installation of all equipment and materials. 4.7 Liquidated Damages Should POWER SECURE fail to complete the Work or any part thereof within any time agreed upon in this CONTRACT, with any authorized extensions, POWER SECURE will reimburse CITY OF FAYETTEVILLE for the additional expense and damage for each calendar day, Sundays and legal holidays excluded, that the Work remains incomplete after the CONTRACT completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the Work is that stipulated in this CONTRACT. The said amount is hereby agreed upon as a reasonable estimate of the damages that will probably ensue or be incurred by the CITY OF FAYETTEVILLE in the event that POWER SECURE fails to meet the completion date. It is expressly understood and agreed that this amount is not to be considered in the nature of a penalty, but as liquidated damages that have accrued against POWER SECURE. CITY OF FAYETTEVILLE will have the right to deduct such damages from any amount due or that may become due POWER SECURE, or the amount of such damages will be due and collectible from POWER SECURE. 4.8 Waivers No waiver by either party of any default by the other party in the performance of any provision of this CONTRACT will operate as or be construed as a waiver of any future default whether like or different in character. 4.9 Jurisdiction The law of the state of Arkansas shall govern the validity of this CONTRACT, its interpretation and performance, and any other claims related to it. 4.10 Severability and Survival If any of the provisions contained in this CONTRACT are held invalid, illegal, or unenforceable, the enforceability of the other remaining provisions shall not be affected or impaired thereby. Limitations of liability, indemnities, and other express representations shall survive termination of this CONTRACT for any cause. 4.11 Force Majeure Neither party to this CONTRACT will be liable to the other party for delays in performing the Work, or for the direct or indirect cost resulting from such delays, that may result from acts of God, acts of governmental authorities, extraordinary weather conditions or other natural catastrophes, or any other cause beyond the 8of9 n CONTRACT GENERAL PROVISIONS reasonable control or contemplation of either party. Each party will take reasonable steps to mitigate the impact of any Force Majeure. 4.12 Authorization to Proceed Execution of this CONTRACT by CITY OF FAYETTEVILLE will be authorization for POWER SECURE to proceed with the Work unless otherwise provided for in this CONTRACT. 4.13 No Third-Party Beneficiaries This AGREEMENT gives no rights or benefits to anyone other than POWER SECURE and CITY OF FAYETTEVILLE, and has no third-party beneficiaries. 4.14 Work The word "Work" will include all material, labor, tools, and all appliances, machinery, and transportation, necessary to perform and complete the Scope of Work, and such additional items not specifically indicated or described that can be reasonably inferred as belonging to the item described or indicated and as required by good practice to provide a complete and satisfactory system. As used herein, "provide" will be understood to mean "furnish and install, complete in-place." 9of9