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HomeMy WebLinkAbout21-Public Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION tit From: Ken Fischer, Director Subject: A resolution authorizing an agreement and increase to an Annual Purchase Order, with four single year renewal options to POMA Distributing Company, Inc. for automotive, heavy truck and heavy equipment lubricants. Dept: Public Services Date March 20, 2007 Meeting Date: April 16, 2007 Synopsis of Previous Council Action 2003-133 adopted June 16, 2003 Annual PO $40,000 - with four single year renewal options. 2005-176 adopted June 20,2005 Annual PO $50,000 2006-109 adopted April 17, 2006 Annual PO $60,000 Recommended Motion: Motion #1: Adopt Resolution Motion #2: Authorize the Director of Finance to amend the FY 06/07 Fleet budget as e discussed in this staff report to reflect the additional $20'00~~~ , Signature Contact person Don Johnson, Fleet Manager Phone: 5220 Supporting data attached: Staff Report, Resolution, Agreement. Ward: All FUNDING REQUIREMENTS: Amount: Source: $20,000 635-341-5113 Lubricants Finance: Council Notes: tit 'f /ICI/01 Agenda Item No. ,., e e e CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: A resolution authorizing an agreement and increase to an Annual Purchase Order, with four single year renewal options to POMA Distributing Company, Inc. for automotive, heavy truck and heavy equipment lubricants. Background: POMA Distributing Company Inc. is the vendor supplying automotive, heavy truck and heavy equipment lubricants to the City of San Bernardino, Fleet Division. On June 16, 2003 the Mayor and Council approved Resolution 2003-133, authorizing $40,000 for an annual purchase order, with four single year renewal options, to POMA Distributing Company, which had submitted the lowest price on Bid No. F-04-07. On April 17, 2006 the Mayor and Council approved Resolution 2006-109, authorizing $60,000 for an annual purchase order to POMA Distributing Company. The Public Services Department, Fleet Division staff is requesting an increase of $20,000 to the purchase order, for a total amount not to exceed $80,000. This increase is needed due to higher fuel prices resulting in increased transportation costs for delivery, and a projected price increase of (28%) for petroleum products beginning in April 2007. Also, consumption for both the Refuse and Police fleets is at a higher rate than originally expected. POMA has been furnishing equipment lubricants to the City of San Bernardino satisfactorily for over nine years. Financial Impact: A budget amendment of $20,000 increasing Fleet's Fuel and Lubricants expenditure account is requested (635-341-5113). Because the Fleet Fund operates as an "internal service fund" all of Fleet's expenditures are charged back to city departments based on related usage. These charges will ultimately be charged back to the appropriate departments based on their usage. Recommendation: 1.) Adopt resolution; 2.) Authorize the Director of Finance to amend the FY 06/07 Fleet budget as discussed in this staff report to reflect the additional $20,000 in lubricants costs. e tit e 1 2 3 4 5 6 7 8 9 10 11 12 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $20,000.00, TO POMA DISTRIBUTING COMPANY, INC., FOR AUTOMOTIVE, HEAVY TRUCK AND HEAVY EQUIPMENT LUBRICANTS. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino is hereby authorized to execute on behalf of said City an Agreement between the City of San Bernardino and POMA Distributing Company Inc., a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. SECTION 2. That POMA Distributing Company, Inc. provides lubricants for 13 automotive, heavy truck and heavy equipment. Pursuant to this determination, the 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Purchasing Manager is hereby authorized to issue an increase to the Annual Purchase Order in the amount of $20,000.00, to POMA Distributing Company, Inc., for a total amount not to exceed $80,000 beginning in Fiscal Year 2006/2007 as a result of Bid No. F-04-07. SECTION 3. The Purchase Order shall reference this Resolution No. 2007- and shall read, "Automobile, truck, and heavy equipment lubricants, P.O. No. 207107 not to exceed $80,000.00" and shall incorporate the terms and conditions of the Contract. 1/1 1/1 1/1 No. ~I LRll &; f D1 April 11, 2007 e e e 1 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $20,000.00, TO POMA DISTRIBUTING COMPANY, INC., FOR AUTOMOTIVE, HEAVY TRUCK AND HEAVY EQUIPMENT LUBRICANTS. 3 4 5 6 7 8 III SECTION 4. The authorization to execute the above referenced Purchase Order and Agreement is rescinded if it is not issued within sixty (60) days of the passage of this resolution 9 III 10 III 11 III 12 13 14 III 15 III 16 III 17 III 18 III 19 20 21 22 III 23 III 24 25 26 27 28 III III III April 11, 2007 e e e 1 2 3 4 5 6 7 8 9 10 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $20,000.00, TO POMA DISTRIBUTING COMPANY, INC., FOR AUTOMOTIVE, HEAVY TRUCK AND HEAVY EQUIPMENT LUBRICANTS. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2007, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA 11 12 13 14 15 16 JOHNSON 17 18 19 20 21 22 23 24 25 26 27 28 BAXTER BRINKER DERRY KELLEY MCCAMMACK Rachel G. Clark, City Clerk The foregoing resolution is ,2007. hereby approved this day of Patrick J. Morris, Mayor City of San Bernardino es F. Penman, City Attorney April 11, 2007 e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VENDOR SERVICE AGREEMENT This Vendor Service Agreement is entered into this 16th day of April 2007, by and between POMA Distributing Company Inc. ("VENDOR") and the City of San Bernardino ("CITY" or "San Bernardino"). WITNESSETH: WHEREAS, the Mayor and Common Council has detennined that it is advantageous and in the best interest of the CITY to contract for automotive, heavy truck and heavy equipment lubricants; and WHEREAS, the City of San Bernardino did solicit and accept quotes from available vendors for automotive, heavy truck and heavy equipment lubricants. NOW, THEREFORE, the parties hereto agree as follows: 1. SCOPE OF SERVICES. For the remuneration stipulated, San Bernardino hereby engages the services of VENDOR to provide those products and services as set forth in this purchase agreement. 2. COMPENSATION AND EXPENSES. a. For the services delineated above, the CITY, upon presentation of an invoice, shall pay the VENDOR up to the amount of $20,000.00 for automotive, heavy truck and heavy equipment lubricants. b. No other expenditures made by VENDOR shall be reimbursed by CITY, 3. TERM; SEVERABILITY. The tenn of this Agreement shall be for a period of one year. e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e tit This Agreement may be terminated at any time by thirty (30) days written notice by either party. The terms of this Agreement shall remain in force unless mutually amended. The duration of this Agreement may be extended with the written consent of both parties. 4. INDEMNITY. CITY agrees to indemnify and hold harmless VENDOR, its officers, agents and volunteers from any and all claims, actions, or losses, damages and/or liability resulting from CITY's negligent acts or omissions arising from the CITY's performance of its obligations under the Agreement. VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and volunteers from any and all claim, actions, or losses, damages and/or liability resulting from VENDOR's negligent acts or omissions arising from the VENDOR's performance of its obligations under the Agreement. In the event the CITY and/or the VENDOR is found to be comparatively at fault for any claim, action, loss, or damage which results from their respective obligations under the Agreement, the CITY and/or VENDOR shall indemnify the other to the extent of this comparative fault. 5. INSURANCE. While not restricting or limiting the forgoing, during the term of this Agreement, VENDOR shall maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker's compensation coverage, and shall file copies of said policies with the CITY's Risk Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Insurance furnished to the CITY shall require the insurer to notify CITY of any change or termination in the policy. 6. NON-DISCRIMINATION. In the performance of this Agreement and in the hiring and recruitment of employees, VENDOR shall not discriminate on the basis of race, creed, color, religion, sex, physical handicap, ethnic background or country of origin. 7. INDEPENDENT CONTRACTOR. VENDOR shall perform work tasks provided by this Agreement, but for all intents and purposes VENDOR shall be an independent contractor and not an agent or employee of the CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for VENDOR and its officers, agents, and employees, and all business license, if any are required, in connection with the services to be performed hereunder. 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS. VENDOR warrants that it possesses or shall obtain, and maintain a business registration certificate pursuant to Chapter 5 of the Municipal Code, and any other license, permits, qualifications, insurance and approval of whatever nature that are legally required of VENDOR to practice its business or profession. III III III III e e e 1 9. 2 3 NOTICES. Any notices to be given pursuant to this Agreement shall be deposited with the United States Postal Service, postage prepaid and addressed as follows: 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TO THE CITY: Public Services Director 300 North "D" Street San Bernardino, CA 92418 Telephone: (909) 384-5140 TO THE VENDOR: POMA Distributing Co. Inc. P.O. Box 479 Bloomington, CA 92316-0479 Telephone: (909) 877-2441 10. ATTORNEYS' FEES In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for the purposes of this paragraph. 11. ASSIGNMENT. VENDOR shall not voluntarily or by operation of law aSSign, transfer, sublet or encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of CITY's consent, no subletting or assignment shall release VENDOR of VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunder for the term of this Agreement. e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12. VENUE. The parties hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated either in the State courts located in the County of San Bernardino, State of California or the U.S. District Court for the Central District of California, Riverside Division. The aforementioned choice of venue is intended by the parties to be the mandatory and not permissive in nature. 13. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 14. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure to the benefit of the parties to this Agreement and their respective heirs, representatives, successors, and assigns. 15. HEADINGS. The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its prOVISIOns. 16. ENTIRE AGREEMENT; MODIFICATION. This Agreement constitutes the entire agreement and the understanding between the parties, and supercedes any prior agreements and understandings relating to the subject manner of this Agreement. This Agreement may be modified or amended only by a written instrument executed by all parties to this Agreement. III III III III e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Dated: .2007 VENDOR. By: Its: CITY OF SAN BERNARDINO By: Patrick J. Morris, Mayor Dated ,2007 Approved as to Form: ,~.