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HomeMy WebLinkAboutProfessional Service Agreement with CH2M HILL for Plant Operational Assistance;_.;. 0;,. AGREEMENT FOR PROFESSIONALSERVICES This Agreement is by and between Operations Management International, Inc. (DMI) and the Client identified below (collectively, the "Parties"). OMI's Office Address: Client: Client's Office Address Project Name: Project Location: Client Project Number: 9193 S. Jamaica Street, Suite 400, Englewood, Colorado 80112 City of Meridian Idaho 660 E. Watertower, Suite 200 Meridian, ID 83642 Plant Operational Assistance Meridian, Idaho OMI Project Number: 1 SCOPE OF SERVICES OMI will perform the Scope of Scrvices set forth in Attachment A. 2 COMPENSATION Client will compensate OMI as set forth in Attachment B. Work performed under this AGREEMENT may be performed using labor from affiliated companies of OMI. Such labor will be billed to Client under the same billing terms applicable to OMI's employees, 3' INVOICES AND TERMS OF PAYMENT 3.1 Unless otherwise agreed, to by the Parties in Attachment B hereto, monthly invoices will be issued by OMI for all Work performed under this Agreement_ 3.2 Invoices are due and payable on receipt. Interest at a rate of 1-1/2 percent per month, or that permitted by law if lesser, will be charged on all past -due amounts starting 30 days after date of invoice. Payments will first be credited to interest and then to principal. In the event of a disputed or contested billing, only that portion so contested shall be withheld from payment, and the undisputed portion shall be paid. Interest shall accrue on any contested portion of the billing and shall be payable immediately if the contested billing is resolved in favor of OMI. 3.3 In the event of a disputed billing, only the disputed portion will be withheld from payment, and Client shall pay the undisputed portion. Client will exercise reasonableness in disputing any bill or portion thereof. No interest will accrue on any disputed portion of the billing until mutually resolved. 3.4 If Client fails to make payment in full within 30 days of the date due for any undisputed billing, OMI may, after giving 7 days' written notice to Client, suspend se.vices under this AGREEMENT until paid in full, including interest. In the event of suspension of services, OMI will have no liability to.Client for delays or damages caused by Client because of such suspension. 4 OBLIGATIONS OF OMI 4.1 Standard of Care The standard of care applicable to OMI's services will be the degree of skill and diligence normally employed by professionals performing the same or similar services at the time OMI's services are performed. 4.2 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the PROJECT, OMI has no control over cost or price of labor and materia ls;'unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time. or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, OMI makes no warranty that Client's actual PROJECT costs, financial aspects, economic feasibility, or schedules will not vary from OMI's opinions, analyses, projections, or estimates. If Client wishes greater assurance as to any clement of PROJECT cost, feasibility, or PROFESSIONAL SERVICES AGREEMENT- REV, 09/2006 PAGE 1 OF 13 schedule, Client will employ an independent cost estimator, contractor, or other appropriate advisor. 4.3 OMI's Insurance OMI will maintain throughout this AGREEMENT the following insurance` Worker's compensation and employer's liability insurance as required by the state where the work is performed. 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 - Commercial general liability insurance covering claims' for injuries to members of the public or .damage to property of others arising out of any covered negligent act or omission of OMI or of any of its employees, agents, or subcontractors, with $1,000,000 per occurrence and in the , aggregate. Client will be named as an additional insured with respect to OMI's liabilities hereunder in insurance coverages identified above (except with respect to worker's compensation and employer's liability insurance) and OMI waives subrogation against Client as to said policies. 4.4 Warranties and Completion 4.4.1 OMI warrants that all materials and equipment furnished under this Agreement will be new, unless otherwise specified, of good quality and free from defective workmanship and materials. Warranties shall commence on the date of Completion as determined by OMI. 4.4.2 OMI will pass through to Client the warranty extended by the manufacturer for all , - products, equipment, systems or materials. There are no warranties that extend beyond the description on the face thereof. 4.4.3 All other warranties, express or implied, including any warranty of - merchantability and any warranty of fitness for a particular purpose are expressly disclaimed. 5 OBLIGATIONS OF Client 5.1 Client -Furnished Data Client will provide to UMI all data in Client's possession relating to CMI's services on the PROJECT. OMI will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by C;lierit- 5.2 Access to Facilities and Property Client will make its facilities accessible to OMI as required for OMI's performance of its services and will provide labor and safety equipment as required by OMI for such access. Client will perform, at no cost to OMI, . such tests of equipment; machinery, pipelines, and other components of Client's facilities as may be required in connection with OMI's services. 5.3 Operations Assistance and Services Client authorizes OMI to operate, modify, inspect and otherwise physically manipulate equipment, furnishings, property and other elements associated with the Work. Client authorizes OMI to take such actions in these respects as OMI considers necessary to meet the objectives of the Work. OMI shall notify Client in writing of any modifications made. 5.4 Advertisements, Permits, and. Access Unless otherwise agreed to in the Scope of Services, Client will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities, and land„ easements, rights-of-way, and access necessary for OMI's services or PROJECT construction. 5.5 Timely Review Client will examine OMI's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond -and financial advisors, and other consultants as Client deems appropriate; and. render in writing decisions required by Client in a timely manner. 5.6 Prompt Notice Client will- give- prompt written notice to OMI whenever Client observes or becomes aware of any development that affects the scope or timing of OMI's Services, or of any defect in the work of OMI. 5.7 Asbestos or Hazardous Substances 5.7.1 If asbestos or hazardous substances in any form are encountered or suspected, OMI will stop its own work in the affected portions of the PROJECT to permit testing and evaluation. 5.7.E If asbestos is suspected, OMI will, if requested, manage the asbestos remediation activities using a qualified 4/1/2000 MERIDIAN, 1DAI 10.- PROFESSIONAL SERVICES AGREEMENT subcontractor at an additional fee and contract terms to be negotiated. 5.7.3 If hazardous substances other than asbestos are suspected, OMI will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.7.4 Client recognizes that OMI assumes no risk and/or liability for a waste or hazardous - waste site originated by other than OMI. 5.8 Client's Insurance. 5.8.1 Client will maintain property insurance on .all pre-existing physical facilities associated in any way with the PROJEC, T. 5.8.2 Client will provide for a waiver of subrogation as to all Client -carried property damage insurance, in favor of OMI, OMI's officers, employees, affiliates, and subcontractors. s.9 Litigation Assistance The Scope of Services does not include costs of OMI :for required or requested assistance to support, prepare, document, bring, defend, or assist -in litigation undertaken or defended by Client. All such Services required or requested of OMI by Client, except for suits or claims between the parties to this AGREEMENT, will be reimbursed as mutually agreed. 5.10 Changes. Client may request changes within the general Scope of Services in this AGREEMENT. If such changes affect OMI's cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT. All requested changes will be made an in writing and are subject to acceptance by OMI. 6 GENERAL LEGAL PROVISIONS 6.1 Authorization to proceed Execution of this Agreement by Client will be authorization for OMI to proceed with the work, unless otherwise provided for in this Agreement. 6.2 Force Majeure OMI is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of UMI. In any such event, OMI'S contract price and schedule shall be equitably adjusted. 6.3 Limitation of Liability OMI's liability for Client's damages, in , the aggregate, shall not exceed the total compensation received by OMI from Client for services provided under this Agreement. OMI's liability to Client under this Agreement specifically excludes any and all indirect or consequential damages arising from the Work contemplated under this Agreement. OMI shall not be liable for fines or civil penalties, which may be imposed by a regulatory agency, which are occasioned by the provision of services under this Agreement - The limitations of liability shall apply whether OMI's liability arises under breach of contract or warranty; tort, including negligence; strict liability; statutory liability; or any other cause, except the limitations shall, not apply to willful misconduct or gross negligence. Said limitations shall apply to OMI's officers, affiliated corporations, employees, and subcontractors. 6.4 Indemnification OMI shall indemnify and hold Client harmless from any and all claims, damages, losses, and expenses, including litigation costs and attorney's fees, to the extent that such are due to the negligent actions of OMI directly related to this Work. Similarly, Client shall indemnify and hold OMI harmless from any and all claims, damages, losses, and expenses, including litigation costs and attorney's fees, to the extent that such are due to actions or inactions of Client directly related to this Work. Client's indemnification of OMI specifically extends to, but is not limited to, the presence, discharge, release, or escape of contaminants of any kind, excepting only such liability as may arise out of the sole negligence of OMI, and limited to the extent that OMI is negligent in the performance of services under this Agreement. 6.5 Consequential Damages To the maximum extent permitted by law, OMI and OMI's affiliated corporations, officers, employees, and subcontractors shall not be liable for Client's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect OMI against indirect liability or third -party proceedings, Client will indemnify OMI for any such damages. 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT 6.6 Termination For Cause: If, through any cause, OMI, its officers, employees, or agents fails to fulfill in a timely and proper manner its obligations under this Agreement, violates any of the covenants, agreements, or stipulations of this Agreement, intentionally falsifies any record or document required to be prepared under this Agreement, engages in fraud, dishonesty, or any other act of misconduct in the performance of this Agreement, the Client may immediately terminate this Agreement with notice to OMI. An accounting pursuant to this Agreement can then occur to assure that proper payments or credits are accomplished. Without Cause: If the Mayor and the City Council determine that termination of this Agreement is in the best interest of City, the Client shall thereupon have the right to terminate this Agreement by giving written notice to OMI of such termination and specifying the effective date thereof at least thirty (30) calendar days before the effective date of such termination. The City Council may also unanimously, without the consent of the Mayor, terminate this Agreement without cause subject these provisions. OMI may also terminate this agreement at any time by giving at least thirty (30) calendar days notice to Client. If the termination is within a calendar month the period of time shall extend to the end of the month beyond the thirty days. In the event of any termination of this Agreement, all finished or unfinished documents, data, and reports prepared by OMI. under this Agreement shall, at the option of the Client, become the Client's property, and OMI shall be entitled to receive just and equitable compensation for any work satisfactorily complete hereunder. This shall include a pro -rated portion of the contract to the end of the termination period. If termination is for convenience, OMI shall be paid termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. Notwithstanding the above, OMI shall not be relieved of liability to the Client for damages sustained by the Client by virtue of any breach of this Agreement by OMI. This provision shall. survive the termination of this Agreement and shall not relieve OMI of its liability to the Client for damages 6.7 Severability and Survival If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability indemnities and other express representations shall survive termination of this Agreement. 6.8 No Conflict of Interest for Future Work The Work performed by OMI under this Agreement does not preclude OMI from proposing on or providing such services to Client in the future. Information and knowledge gained by OMI in providing services under this contract shall not constitute a uunflict of interest in proposing on or providing full contract operations, full contract maintenance, or full contract utility management. 6.9 Jurisdiction The law of the State where the Scope of Services is being performed shall govern the validity of this Agreement, its interpretation and performance, and any other claims related to it. 6.10Third Party Beneficiaries and Scope of Services . This Agreement gives no rights or benefits to anvone other than Client and OMI and has no third party beneficiaries. The Work to be performed for Client by OMI is defined solely by this Agreement, and not by any other contract or agreement that may be associated with the Work. 6.11 Materials and Samples , Any items, substances, materials, or samples removed from the project site for testing, analysis, or other evaluation will be returned to the project site within 60 days of close-out unless agreed to otherwise. Exceptions to this clause are items subjected to destructive testing or samples with nominal intrinsic value, such as samples of liquid, solid or gaseous materials that are non -,hazardous. Client recognizes and agrees that OMI is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.12Assignments This is a bilateral personal services Agreement. 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 Agreement, whether arising in tort, contract or otherwise, without the written consent of the other party, 4/1/2008 MFRIr)IAN, InAHO : PROFESSIONAL SFRVICES AGREEMENT Any unauthorized assignment is void and _ unenforceable. These conditions and the entire Ayreernent are binding on the heirs, successors, and assigns of the parties hereto. -6.13 Dispute Resolution " _ - The parties will use their best efforts. to resolve amicably any dispute, including use of alternative dispute resolution options. 6.14Confidentiality and Nondisclosure To enable OMI and Client to conduct activities related to the Scope of this Agreement, it may be necessary for OMI to disclose proprietary or .confidential information of Client. In that regard, OMI and Client agrees, for a period of five (5) years from the date of disclosure of information identified .as proprietary or confidential, that OMI will treat the information in strictest confidence and will not disclose it to third parties unless the information: (a) Was part of the public domain when received or becomes a part of the public domain through no action or lack of action by OMI or Client. (b) Prior to disclosure, was already in OMI or Client's possession and not subject to an obligation of confidence imposed in another relationship. (c) Subsequent to disclosure, is obtained from a third party Who is lawfully in possession of the information and not subject to a contractual relationship with OMI or Client with respect to the information. IN WITNESS WHEREOF, the parties execute below: TNI 6.15 Ownership of Work Products and Intellectual Property,. All of the Work products of OMI in executing this Project (including all the .fights related to such Work Products) shall be the sole property of OMI, subject to the rights of the Client, as the case may be. All reports, data, information, documents, specifications, flow -charts, discoveries, know-how, inventions, processes, firmware, computer software, source and object code, and software documentation as well.,as any resulting intellectual property, including but not limited -to, invention disclosures, provisional patent applications, regular patent applications, patents, trade secrets, proprietary information, copyrights, trademarks, .service marks, domain names, trade dress, and moral rights developed during the course of;. or as a -result of, the Project shall be the sole property of OMI, subject to the rights of the Client, as the case may be. 7 ATTACHMENTS, SCHEDULES, AND SIGNATURES This AGREEMENT, including. its attachments and schedules, constitutes the entire ,AGREEMENT, supersedes all ' prior written or oral understandings, ,and may only be changed by a written amendment executed by both parties. The following attachments and schedules are hereby made a part of this AGREEMENT:. Attachment A --Scope of Services Attachment B --Compensation Approved for Client (Print and sign name) . Approved for OMI (Print and sign name) Na Name Roger B. Qua le Title ,- a v Date �`,1lyillllili!!!!,. Title Sr. Vice President Date C!`i III /,;�-r' ce ---- i � 4 a(\ C, LR14 BILL f 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT Description of Scope of Services: _ - OMI will provide qualified onsite personnel for the provision 'of temporary management services on an interim basis for the Wastewater Operations and Maintenance Divisions to provide leadership to staff, plan and prioritize assignments, :and oversee the day-to-day operation of the City of Meridian, Idaho Wastewater Operations and Maintenance Divisions. OMI's Acting Wastewater Operations and Maintenance Plant Manager will provide day-to- day direction, advice and recommendations for operations, process, and regulatory issues as they arise, OMI'S Acting Manager shall also review SOPS, assess current processes and operations, interview staff to ensure operational knowledge,. review permits and make process recommendations related to compliance, provide training as needed, and develop corrective action strategies, action plans, and/or other work plans or documents as needed or directed by CLIENT and agreed to by Consultant. Term: The term of this temporary management support shall be for a period of up to one (1) month, commencing April 2, 2008. The term may be extended upon the mutual written agreement of the parties up to six (6) months. The Client may at their sole discretion discontinue this Task Authorization at any time during the first (1) month period with ten (10) calendar days notice. Project Staffing: OMI will provide the equivalent of one (1) full time, onsite Acting Wastewater Operations and Maintenance Plant Manager. OMI's acting management staff will work closely with Client staff to focus on managing normal routine activities, address the objectives of the performance audit, assist in maintaining compliance, reliability, and efficient delivery of wastewater treatment services -to the Client. Scope Tasks: 1. Chartering Session Chartering session will be held with the Client., OMI Manager shall attend. chartering session. Chartering session will be held at the Public Works Building. CITY shall provide materials for the chartering session. 4/1%2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT'- REV. 04 Deliverables: Meeting notes (provided. electronically). 2. Plant Manager: Wastewater Operations and Maintenance OMI shall provide one staff individual to fulfill the duties of the Project Manager for the Wastewater Operations and Maintenance Divisions on an interim basis for up to seven (7) months, including the extension term. It is anticipated that the OMI's staff will be responsible for the day to day management duties and will work with Client staff.to operate the facility. Beginning on the contract start date, the OMI management team will familiarize themselves with operations and maintenance, helping -to ensure that the facilities provide uninterrupted and efficient service to the community while meeting regulatory objectives and compliance. Through this process, OMI also will identify opportunities to implement changes identified in the previous performance audit that can improve operations. OMI acting. staff will work with Client operations staff to optimize and sustain the overall process. Any suggested modifications to the .operations will be handled as out of scope agreement is not included within the services of this. Agreement. In the operation of any utility, OMI has three (3) primary goals: ❑ Adhere to established City regulations and rules, in order to assist providing employees and visitors a safe work environment ❑ Maintain full compliance with all local, state, and (where applicable) federal regulations ❑ Maintain a culture of continuous improvement in operational efficiency Assigned OMI staff will provide supervision and oversight of the treatment facilities forty (40) hours per week at a schedule to be determined by the,"CLIENT and mutually agreed to by the Consultant during the term of this project, and. assist Client staff in maintaining the optimum level of efficiency in accordance with all applicable permits, regulations, and ordinances. To this end, OMI will employ.;a systematic approach that involves: Meeting with key Client staff to review and confirm OMI's scope of services, We propose that the OMI team meet with the Client project team leads immediately upon commencing this assignment to review and confirm the Client's objectives, communications, and priorities through this transition period. A project familiarization meeting will be held along with weekly senior project management status meeting updates which will be used to guide the parties. throughout the full term of our assignment. We also prupuse to continue with the. Client's currently established meeting . schedule to ensure that OMI always remain in open communications with each other: By taking this approach, all parties involved will clearly understand their respective roles, lines of communication., functional protocols, performance obligations, 'responsibilities, and . objectives. The Client will remain fully engaged and informed as to all of our activities onsite. 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT IL Review pertinent records. and data to establish a baseline of performance and gain an understanding of the facility's process strengths.:as well as its limitations. OMI will hold periodic team staff meetings to' identify opportunities for improvement and then apply suitable suggestions. iv. Assist the Client in determining best direction to provide future management oversight. Assess strengths and training needs of supervisory staff. V. OMI understands the complexity of day-to-day operations and management of wastewater treatment facilities. As such, OMI will be flexible in the type of management oversight and operations assistance OMI will provide and -adapt to the needs of the Client and facility as they arise during this temporary support agreement. vi. OMI will make recommendations to Client to bring .in additional CH21V! HILL OMI resources for the purpose of reviewing different. work areas or training staff. This service will be presented -to the Client as an out--of-scope and, is not included in this scope of service for Management oversight. The OMI shall not be responsible for the following: OMI and OMI's personnel have no authority to .exercise any control over CITY employees, CITY's third party contractors, or other consultants under contract with CITY in connection with their work. By performing -this project, OMI shall not be precluded from pursuing or obtaining work on any other CITY projects and the performance of the task order shall not cause any conflict of interest with other current CITY projects or potential projects OMI shall have no liability whatsoever for any contracts or modifications to any contracts signed by city. The performance of the scope of work'shall be limited to assisting CITY and not having any fiduciary duty toward the CITY or any agency relationship. Deliverable: Weekly Timesheets (provided electronically). 3. Task Management This task allows for the management of the team'necessary to complete the overall Task Authorization requested by the CITY. Items included under this task are: project set-up, billing, and preparation of progress reports. Deliverables: progress letters; invoices, Management Fee: OMI will provide the operating support and management services outlined above per Exhibit A; attached. 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT For purposes of this scope of services, "full time" means five days per week, eight hours per day. Up to 40hours per week will be available for time spent traveling to and from Meridian (every week) if required of the management team. Associated expenses include airfare, lodging, meals, phone, transportation, and miscellaneous employee expenses associated with the temporary assignment related to the services to be provided shall be invoiced per the terms of the Agreement. Additional Terms OMI shall not be required to provide a performance bond for the services outlined herein. 2. OMI shall provide the management services detailed above. These services shall include monitoring and documenting the performance of the Client's operations employees, relaying information about Client's employees to Client, and providing_ any operations efficiencies suggestions to Client- for consideration for implementation. OMI is not responsible for evaluating', disciplining, hiring, terminating, promoting, transferring, or taking any other personnel action regarding Client's employees. 3. OMI shall . provide general input to Client to be used in their discipline of employees. OMI shall not directly discipline any Client employees, nor shall OMI be responsible for making the decision to discipline any of Client's employees. 4, Each OMI employee shall perform such services as an independent supplier and not as an employee or agent of Client. As such, OMI employees shall not be entitled to nor shall they claim any benefits or rights accorded to employees of -Client. OMI will be under the general supervision of a designated Client Representative for oversight of compliance with the terms of this Agreement. OMI shall be solely responsible for all employer obligations including, but not limited to, provision of employee benefits and compliance with state and federal laws including the Fair Labor Standards Act for their employees. The fact that OMI. supervisory employees may provide direct or indirect supervision of Client's employees shall not alter the employment relationship for purposes of workers compensation and unemployment compensation. Under no circumstances are employees of OMI to be coribidered the Client's employees, loaned employees or borrowed servants and vice versa. 5. The Client shall provide all licenses and insurance for Client supplied vehicles and equipment used in connection with the project. OMI may utilize those Client supplied vehicles and equipment as" per the Client's Vehicle Use Policy, contained within the Client's Personnel Procedures & Rules. 6. Client will provide to OMI all data in Client's possession relating to the project. OMI will reasonably rely upon the accuracy and completeness of the information provided by the Client. 7. Client will provide to OMI their employees for the performance of the services and suitable office space, telephone, mobile phone and long distance service, computer 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT ts access, e-mail, . internet and office supplies -to enable them to carry out their responsibilities. 8. OMI shall provide to their employees cell phones and laptops for performance of their services. 9. Each Client employee shall perform such.services as an employee of Client and not as an employee or agent of OMI. As such, Client employees shall not be entitled to nor shall they claim any benefits or rights accorded to employees of OMI. Client shall be solely responsible for all Employer Obligations (as defined in item 10 below) including, but not limited to, provision of employee benefits_ and compliance With state arid federal laws for their employees. 10. Client.will be solely responsible for all Employer Obligations with respect to Client personnel and Client employees. "Employer Obligations" as used in this Agreement means all obligations of any kind imposed customarily or by law or -agreement on persons acting in the capacity of an employer in relation to persons acting in the capacity of an employee. These include, without limitation: (a) -responsibility for hiring, assigning, compensating and terminating Client personnel and Client employees; (b). withholding and paying taxes; (c) verification of employment eligibility; (d) providing workers' compensation insurance and complying with all applicable workers compensation laws; (e) compliance with all federal and state laws (both common and statutory) and regulations relating to employment and the rights of Client personnel and Client employee(s); and all record keeping requirements. 11. Client hereby agrees to indemnify and hold OMI, its directors, officers, agents and employees, harmless from all claims, charges, demands, complaints, damages, losses or liability of any kind (including attorney's fees and reasonable expenses) (collectively, "Liabilities") that arise from orrelatein any way to: 11.1 Client's or Client employees' negligent failure to perform under this Agreement, 11.2 any Client employee's negligent assignment or negligent performance of an assignment under this Agreement to the extent that an underlying claim does not involve negligence on the part of OMI; 11.3 patent, trademark,. trade secret or copyright infringement by Client or its suhcnntractors: 11.4 claims for wages and overtime pay arising under the Employment Standards Act or any other federal, or local labor or wage -hour laws, workers' compensation or unemployment compensation for services performed under this Agreement; 11.5 claims by Client's employees, current and former, ' alleging entitlement to OMI's pension, health and welfare, profit sharing, and other benefit plans, employment-related claims, charges and demands alleged against OMI by Client's employees, current or former, or any applicant for employment with Client as related to the services provided under this Agreement. 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT 11.6 Client.shall indemnify OMI for all fines, civil penalties or civil actions, which may be imposed by a regulatory agency for violations of the effluent quality requirements specified .by governing regulatory authorities for actions prior to the effective date of this Agreement and after -the effective date of this Agreement unless due to the negligent direction of OMI or UMI employees , or caused by a factor related to the capacity and capability of the plant.. 12. Nothing herein contained shall be construed to imply a joint venture, partnership, principal -agent, or co -employer relationship between Client and OMI, and neither party shall have the right, power or authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to in writing. Additionally, nothing herein should imply or be construed to create any employment. -relationship between Client and any OMI employee or between any Client employee and OMI. 13. CH2M HILL OMI may terminate this Agreement for its convenience, without penalty, upon -the occurrence of any of the following events: 13.1.1 Client not implementing suggested OMI recommendations for safety or compliance items. 13.1.2 Client's failure to take remedial action requested by OMI regarding conditions of employment pertaining to OMI employees. For example, in the event that OMI were to advise Client that Client's employee was sexually harassing OMI's employee, Client's failure to take prompt and effective corrective measures against, Client's employee is cause for the termination of the Agreement. 13.1.3 Client riot implementing suggested OMI recommendations for vulnerability situations, safety, or compliance matters that OMI reasonably determines may cause Client and/or OMI to violate any applicable regulation, laws, codes or permits. 4/1/2008 MERIDIAN,. IDAHO: PROFESSIONAL SERVICES AGREEMENT ATTACHMENT B — COMPENSATION Compensation by Client to OMI for the first month of this service will be as follows: A. COST REIMBURSABLE -MULTIPLIER (TIME AND EXPENSE) For services enumerated in ARTICLE 1, see below: CH2M HILL OMI will provide the operating support and management services outlined above for the following fees: Description Hourly Rate Hours Per month Estimated Monthly Cost Acting Plant Manager 43.26 173:33_ $7,106 Travel Air $1,584 Lodging $2,610 Meals $1,885 Auto Rental $1,698 CH2M HILL Operations Management and Admin Support ;$2,979 TOTAL ESTIMATED COST $17,862 In addition to the above service, CH2M HILL OMI will provide a Senior Technical Advisor for the areas of Process Control, Maintenance, Laboratory, or Quality Training for a period of 4 days. This additional specialized service is not included in the above monthly cost and will be invoiced at a rate of Four Thousand Seven Hundred Thirty Three Dollars ($4,733) per occurrence. CH2M 'HILL OMI will make .recommendations to the Client for these services and must receive approval from the Client for these services 7 days before arriving'on site. If the Client requests CH2M HILL OMI to continue the above outlined scope of service after the first thirty days (30 days), estimated rates will be adjusted to reflect the costs proposed for the remaining months of the agreement up to a total of six (6) months. B. BUDGET A budgetary amount of Seventeen Thousand Eight Hundred Sixty Two Dollars ($17,862), excluding taxes, is hereby established for services in ARTICLE 1. OMI will make reasonable efforts to complete the work within the budget and will keep Client informed of 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT progress toward that end so that the budget or work effort can be adjusted if found necessary. OMI is not obligated to incur costs beyond the indicated budgets, as may be adjusted, nor is Client obligated to pay OMI beyond these limits. When any budget has been increased, OMI's excess costs expended prior to such increase will be allowable to the same extent as if such costs had been incurred after the approved increase. C. DEFINITIONS DIRECT SALARIES Direct Salaries are the amount of wages or salaries paid OMI's employees for work directly performed on the PROJECT, exclusive of all payroll -related taxes, payments, premiums; and benefits. SALAY COSTS Salary Costs are the amount of wages or salaries paid OMI's employees for work directly performed on the PROJECT plus a percentage applied to all such wages or salaries to coverall payroll -related taxes, payment, premiums, and benefits. DIRECT EXPENSES Direct Expenses are those necessary costs and charges incurred for the PROJECT including, but not limited to: (1) the direct costs of transportation, meals and lodging, mail, special Client approved PROJFCT specific insurance, letters of credit, bonds, and equipment and supplies; (2) OMI's current standard rate charges for direct use of OMI's vehicles, laboratory test and analysis, printing and reproduction services, and certain field equipment; and (3) OMI's standard project charges for computing. systems, special health and safety requirements of OSHA, and telecommunications services. 4/1/2008 MERIDIAN, IDAHO: PROFESSIONAL SERVICES AGREEMENT