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Otis Elevator Company Extended Warranty Program SOY irri-`6,1,1/ RI C C a/ft' ct 47- ‘6/4/t/ g 01111RECEIVED CltyofRanchopalosverdesci)O DATE: February 21,2006 MAR 2 3 2006 M TO: FROM: ---i Rancho Palos Verdes City Hall Otis Elevator Company CITYrn OFFICE 30940 Hawthorne Blvd 711 E Ball Road Z Palos Verdes Estates,CA 90275 Suite 200 Attn: LarryStill Anaheim, CA 92805 rn EQUIPMENT LOCATION: Rancho Palos Verdes City Hall 30940 Hawthorne Blvd Palos Verdes Estates,CA 90275 7:1 ' WARRANTY NUMBER: SAN444891 WARRANTY DATE: April 1,2006 77) EQUIPMENT DESCRIPTION: Number of Units Type of Units Machine Numbers One Hydraulic 446048 1:37:1 6")0 We propose this Otis Extended Warranty Program to take effect as of the Warranty Date. Under this extended warranty we will employ SM D p oy the Otis Maintenance Management System (OMMS)maintenance program to deliver service tailored to your building needs. Equipment type, usage,component life,equipment and p building environment will be taken into account by the OMMS scheduled system,which will be used to plan maintenance activities in advance. As part of this Warranty we shall examine the Units using trained personnel directly employed and supervised by us. The examinations will include inspection,lubrication,adjustment,cleaning,and if conditions or usage warrant,repair or replace components as required in the OMMS program. Only genuine parts and supplies as used in the manufacture and installation of the original equipment shall be provided. All work,including minor adjustment callbacks will be performed by trained employees during regular working hours of regular working days. All maintenance procedures and repairs will be performed during our regular working hours of our regular working days for the examiners who perform the service. All lamp and signal replacements will be performed during regular examinations. If overtime examinations,repairs or emergency minor adjustment callback services are later requested by you,you agree to pay extra for the overtime bonus hours at our regular billing rates. There will be no extra charge for the straight time portion. We will periodically examine the safety devices and governors of the traction and roped hydraulic Units. We will conduct an annual no load test and perform at each fifth year a full load,full speed test of the safety mechanisms, overspeed governors,and car and counterweight buffers. If required,the governor will be recalibrated and sealed for proper tripping speed,and elevator car balances will be checked. We will conduct an annual no load pressure relief valve test for hydraulic units. ©OTIS ELEVATOR COMPANY,1995,1998 All Rights Reserved Impact Fonn MNT-EWP(1/03) Proposal# Page 1 of 3 111 CLARIFICATIONS This warranty shall not cover adjustments,repairs or replacement of parts due to negligence,misuse,abuse or accidents caused by persons other than Otis. In addition this Warranty does not cover car enclosures(including,but not limited to,wall panels,door panels,car gates,plenum chambers,hung ceilings, lighting,light diffusers,light tubes and bulbs,handrails,mirrors and floor coverings),rail alignment when affected by building compression or shifting, hoistway enclosures,hoistway gates,hoistway inserts and brackets,mainline disconnect switches,doors,door frames,sills,swing door hinges and closing CI) devices,below ground or unexposed hydraulic cylinders and plungers,buried or unexposed piping,escalator balustrades,escalator lighting or wedge guards.Without affecting our obligation to provide service under this Warranty,you agree to permit us to train our personnel on the Units. This Warranty does not cover computer and microcomputer devices,such as terminal keyboards and display units,that are not exclusively dedicated to the elevator system. This Warranty does not cover telephones,intercoms,heat sensors,smoke sensors,communications equipment,or safety signaling equipment not installed X by Otis,or instructions or warnings in connection with use by passengers. Payments will be made on a quarterly basis,due on or before the last day of the month prior to the billing period,beginning on the Commencement Date. m The work shall be performed for the agreed price plus any applicable sales,excise or similar taxes as required by law. In addition to the agreedPri ice,you Z shall pay to us any future applicable tax imposed on us,our suppliers or you in connection with the performance of the work described. You agree to provide us unrestricted ready and safe access to all areas of the building in which any part of the Units are located and to keep all machine m rooms and pit areas free from water,stored materials,and debris. You agree to provide a safe work place for our personnel,and to remove and remediate any waste or hazardous materials in accordance with applicable laws and regulations. If any Unit is malfunctioning or is in a dangerous condition,you agree to immediately notify us using the 24-hour OTISLINE®service.Until the problem is corrected,you agree to remove the Unit from service and take all necessary precautions to prevent access or use. Escalator Units are designed only for transporting passengers. For escalator Units,you agree to take all necessary measures to prevent other items from being conveyed,so that features designed to protect passengers and prevent property damage are not damaged. You agree toproperlymain andpreserve anyand all instructions or warnings post, �, to passengers in connection with the use of any Units. If those elevator Units provided with firefighters'service are required by code to be tested monthly,you assume responsibility for performing and keeping a record of such tests. Duringthe teen of this Warranty,we will ty, maintain original wiring diagrams for Otis Units. If any part of the Units delivered or installed under this Agreement incorporates computer software,you agree that the transaction is not a sale of such software but a license to use such software solely for operating the Units for which such part was provided. You agree to keep such software in confidence as a trade secret for Otis. Under each license,we authorize you to do only the following: make a backup or archival copy of the software,provided you 'T7 reproduce the copyright notice and any other legend of ownership on the copy. You may not otherwise copy,display,transfer,adapt,modify,distribute, /V reverse assemble,reverse compile,or otherwise translate the software code. You may not sublicense or assign the license for the software nor may you O lease the software or any copy of it. You will not transfer possession of such part or equipment except as part of a transfer of ownership of the Units C") together with an assignment and assumption of rights and obligations under this agreement by the transferee providing that the transferee will be bound by these terms. Assignment will be subject to prior written permission of Otis(which will not be unreasonably withheld). 7:1 Any counters,meters,tools,remote monitoring devices,or communication devices which we may use or install under this Warranty remain our property, solely for the use of Otis employees. Such service equipment is not considered a part of the Units. You grant us the right to store or install such service equipment in your building and to electrically connect it to the Units. You will restrict access to the service equipment to authorized Otisperso nnel. You agree to keep the software resident in the service equipment in confidence as a trade secret for Otis. You will not permit others to use,access,examine, copy,disclose or disassemble the service equipment or the software resident in the service equipment for any purpose whatsoever. If the service is terminated for any reason,we will be given access to your premises to remove the service equipment,including the resident software,at our expense. It is agreed that we do not assume possession or control of the Units,that such Units remain yours solely as owner and operator,lessee,or agent of the owner or lessee,and that you are solely responsible for all requirements imposed by any federal,state,or local law,code,ordinance or regulation. We will not be required:(i)to make any tests other than that as specifically set forth herein,(ii)to make any replacements with parts of a different design or type,(iii)to make any changes in the existing design of the Units,(iv)to alter,update,modernize or install new attachments to any Units,whether or not recommended or directed by insurance companies or by governmental authorities,(v)to make repairs or replacements necessitated by failures detected during or due to testing of buried or unexposed hydraulic cylinders or piping. We will not be required to make any replacements,renewals,or repairs necessitated by any obsolete or discontinued part of the Unit(s)or by reason of any cause beyond our control(except ordinary wear and tear)including, but not limited to,fire,explosion,theft,floods,water,weather,earthquake,vandalism,misuse,abuse,mischief;or repairs by others. We will not be liable for any loss,damage or delay due to any cause beyond our reasonable control including,but not limited to,acts of government,labor disputes,strikes,lockouts,fire,explosion,theft,floods,water,weather,earthquake,riot,civil commotion,war,vandalism,misuse,abuse,mischief or acts of God. You agree to pay a late charge from the date such sums become due of one and one-half percent(1.5%)per month,or the highest legally permitted rate, whichever is less,on any balance past due for more than thirty(30)days,together with all costs (including,but not limited to,attorneys'fees)incurred by us to collect overdue amounts. Failure to pay any sum due by you within sixty(60)days will be a material breach. We may at our option declare all sums due or to become due for the unexpired term immediately due and payable as liquidated damages,and until the same are paid be discharged from further obligations under the Warranty. This proposal,when accepted by you and approved by our authorized representative,will constitute the entire and exclusive Warranty between us for the services to be provided and your authorization to perform as outlined herein. All prior or contemporaneous oral or written representations or agreements not incorporated herein will be superseded. Any purchase order issued by you in connection with the services to be provided will be deemed to be issued for your administrative or billing identification purposes only,and the parties hereto intend that the terms and conditions contained herein will exclusively govern the services to be provided. We do not give up rights under any existing Warranty until this proposal is fully executed. This Warranty may not be changed,modified,revised or amended unless in writing signed by you and an authorized representative of Otis. Further,any manual changes to this form will not be effective as to Otis unless initialed in the margin by an authorized representative of Otis. ©OTIS ELEVATOR COMPANY,1995,1998 All Rights Reserved IMPACT Form MNT-EWP(1/03) Proposal# Page 2 of 3 FROM :, 0 FAX NO. :5445292 0 Mar. 17 2006 09:45AM P2 EXTENDED WARRANTY PRICE 0 One Hundred Eighty Five and 00/100 Dollars ($185.00) pemonth The 1n-an Price 0 ty will be adjusted annually to reflect m,creases or decreases in material and labor costs. A. Material M X Eighteen and 501100 Dollars ($18.50) of the original Warranty Price will be increased or ""4 decreased by the percent increase or decrease shown by the index of"Producer Commodity Prices for Metals and Metal 111 Products"published by the U.S.Department of Labor,Bureau of Statistics for the price adjustment month compared with mR the index on 12101/05 which was 166.7. 0 B. labor m 0 One Hundred Sixty Six and 501100 Dollars ($166.50) ofthe original WarrantyPrice will be inereasccl or decreased bythe percent increase or time decrease in the straight hourly labor cost for the price adjustment month compared with such straight time hourly labor cost on 0/101/05 which was $ 58.484. Thephrase"straight time hourlylabor cost"moans the sumpaid of the straight time hourly labor rate plus the hourly cost of fringe benefits paid to elevator examiners in the locality where the equipment is to be maintained. 73 73 WARRANTY TERM Beginning on the Effective Date of this Addendum,the Term of the Warranty referred to will be extended for an additional Elva(5) and � . � years, will continue thereafter for additional five(5)year periods unless terminated as follows. Either party may terminate the Warrantyas modified herein '� at the end of the Term or at the cnd of any subsequent five "<1 year period by giving the other party at least ninety(90)day s written notice prior to the end of the then current Term. This proposal,when accepted by you below and approved by our authorized representative,will become binding13 agreement All other terms,conditions, P and obligations in the Warranty referred to are to remain in full force and effect. 73 This quotation is valid f)r ninety(90)days from the proposal date. 0 THE lxPRESS WARRANTIES EXPRESS WARRANTIES CON'TAINF.D HiT3REIN ARE IN LIEU OP ALL OTHER WARRANTIES,EXPRESS OR IMPLIED, 0 TIVt''I.UDING ANY WARRANTIES OF MI;RC'HAATTABti.T'1`Y On FITNESS FORA PARTICULAR PURPOSE.IN ADDITION,UNDER NO CIRCUMSTANCES WILL WE BE LIAM",FOR ANY INDIRECT,SPECIAL OR CONSEQUENTIAL.DAMAGES OF ANY kINn INCLUDING,Bl rr NOT LIMITED TO,IOU73 iSOR PTINALTTES,LOSS OF PROFITS,LOSS OF RENTS,I SS OF GOOD WILL,,LOSS OF BUSINESS OPPORTUNITY,AIDDITIONAL FINANCING COSTS,OR LOSS OF USE OF ANY EQUIPMENT OR PROPERTY,WHET=IN WARRANTY,TORT,INCLUDTWO N13GLIG:, B,WAR• /OR OTI Illi ISE. Submitted by: /./,�! Accepted in Duplicate -•.- - - •- R : Chacon CUSTOMER OTIS ELEVATOR COMPANY Approved by Authorized Representative Approved byAuthorized R.e resentative Date; 1 p 3// ," , - Date: r 3 1 � OC Signed; X e igned: Print Name: L ',s' Faint Name: aliPSOrl ______ Title: _CIL nil h.k. N 1 Title: ______ inialter— Name of.Company: 1,-)444464.0_91, CI Principal,Owner or Authorized Representative of Principal or Owner 4. Agent 4 0.L.2200„,_, Ios Ve thz ( Tante of rineipal or Owner) e OTTS ELEVATOR COMPANY, 1995,1998 All Rights Deserved =PACT Form MNT- ,WP(1/03) Prupoaal## - Page 3 of 3 0 0 Rancho Palos Verdes City Hall — Bld2 ID #444891 Procedure for Placing a Service Call 1. Call 1-800-233-6847 (1-800-ADD-OTIS) 2. Give the Customer Service Representative your Building Identification Number. We have provided you with OTISLINE stickers that have your building ID number. We suggest you place these stickers on or near the phone(s) from which you call for service. 3. The CSR will ask you to confirm your building's name and address. 4. Tell the CSR which elevator requires service (i.e. No. 1, large freight, North Tower, etc.) 5. Give a brief description of the problem (i.e. elevator stuck on 2nd floor, elevator makes a loud noise when it passes the 4th floor, etc.) 6. An OTISLINE representative will page your mechanic promptly. Procedure for placing a call on e*Service 1. Logon to e*Service per e*Service instructions 2. Click"Review building history and performance reports". 3. Click the"Place a call " icon 4. Choose the appropriate building. 5. Choose the appropriate unit. 6. Check the most appropriate condition effecting your elevator 7. Your call is immediately routed to Otis 24-hour Communications Center (OTISLINE)