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HomeMy WebLinkAbout31-Public Services CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION .-- From: Ken Fischer, Director Subject: Resolution authorizing the execution of an Amendment No. 1 and Dept: Public Services increase to an annual purchase order with two single year renewal options to Date March 25, 2008 HREM Inc. for the manufacture and repair of hydraulic cylinders and supplies to be utilized by the Public Services Department Fleet Division. Meeting Date: April 7, 2008 Synopsis of Previous Council Action: Reso 2007-354 August 20, 2007 Approved annual purchase order with two single year renewal options. Recommended Motion: 1.) Adopt resolution. 2.) Authorize the Director of Finance to amend the FY 07/08 Fleet and IWM Division budgets as discussed in this staff report to reflect the additional $11,000 in service and parts costs. ~ /' ~ •~- ~ ~ Signature Contact person: Don Johnson, Fleet Manager Phone: 5220 Supporting data attached: Staff Report, Resolution, Agreement, Amendment. Ward: All FUNDING REQUIREMENTS: Amount: $11,000 Source: 635-341-5173 Outside Vehicle Maintenance Finance: Council Notes: ~/ 7 7 Agenda Item No. CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION "" Staff Report Subject: Resolution authorizing the execution of an Amendment No. 1 and increase to an annual purchase order with two single year renewal options to HREM Inc. for the manufacture and repair of hydraulic cylinders and supplies to be utilized by the Public Services Department Fleet Division. Background: HREM Inc. of Colton, CA. was awarded an Annual Purchase Order on August 20, 2007, with two single year renewal options, in the amount of $37,000 for FY 2007/2008. The Public Services Department, Fleet Division staff is requesting an increase of $11,000 to the purchase order, for a total amount not to exceed $48,000 for the remainder FY 2007/2008. The requested increase is needed due to the addition of (8) eight Refuse trucks, aging Refuse trucks as well as compliance with the CHP mandated BIT program. These factors have contributed to the purchase order funds being depleted. The increased maintenance of the additional and aging trucks and shortage of maintenance staff to complete these repairs in-house have contributed to the purchase osier funds being depleted at a rate higher then originally anticipated. Financial Impact: A budget amendment of $11,000 increasing Fleet's outside vehicle maintenance account (635-341-5173) is requested. 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 IWM Division, as they are directly related to the operation, so the IWM Division budget will also be amended accordingly. Recommendation: 1.) Adopt resolution. 2.) Authorize the Director of Finance to amend the FY 07/08 Fleet and IWM Division budgets as discussed in this staff report to reflect the additional $11,000 in service and parts costs. 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AMENDMENT AND 3 INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR RENEWAL OPTIONS TO HREM INC. FOR THE MANUFACTURE AND REPAIR OF 4 HYDRAULIC CYLINDERS AND SUPPLIES TO BE UTILIZED BY THE PUBLIC 5 SERVICES DEPARTMENT FLEET DIVISION. li BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 8 SECTION 7. The City Manager of the City of San Bemardino is hereby 9 authorized to execute on behalf of said City an Amendment to the Agreement between 10 the City of San Bernardino and HREM Inc., which is attached hereto, marked Exhibit 11 "A" and incorporated herein by reference as fully as though set forth at length. 12 SECTION 2. This purchase is exempt from the formal contract procedures of 13 Section 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B-3 of said ~"" 14 ~' Code "Purchases approved by the Mayor and Common Council". 15 16 SECTION 3. That HREM Inc. provides manufacture and repair of hydraulic 17 cylinders and supplies to be utilized by the Public Services Department Fleet Division. 18 Pursuant to this determination, the Purchasing Manager is hereby authorized to issue 19 an increase of $11,000 to the annual purchase order, to said HREM Inc., for a total 20 amount not to exceed $48,000 for Fiscal Year 2007/2008. 21 SECTION 4. The Purchase Order shall reference this Resolution No. 2008-_ 22 ~ and shall read, "HREM Inc. for manufacture and repair of hydraulic cylinders, P.O. not ~ to exceed $48,000.00" and shall incorporate the terms and conditions of the •~r Agreement. . 26 /// t,..,. 27 /// 28 March 28, 2008 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AMENDMENT AND 2 INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR RENEWAL OPTIONS TO HREM INC. FOR THE MANUFACTURE AND REPAIR OF 3 HYDRAULIC CYLINDERS AND SUPPLIES TO BE UTILIZED BY THE PUBLIC SERVICES DEPARTMENT FLEET DIVISION. 4 5 SECTION 5. The authorization to execute the above referenced Purchase G Order and agreement is rescinded if not issued within sixty (60) days of the passage of 7 this resolution. 8 /// 9 /// 10 111 11 12 111 13 111 r 14 IlI 15 I!I 16 111 17 111 18 111 19 20 111 21 111 22 111 ~ 111 24 111 25 111 26 ~,~,,, 27 28 March 26, 2008 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AMENDMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR 3 RENEWAL OPTIONS TO HREM INC. FOR THE MANUFACTURE AND REPAIR OF HYDRAULIC CYLINDERS AND SUPPLIES TO BE UTILIZED BY THE PUBLIC 4 SERVICES DEPARTMENT FLEET DIVISION. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 Mayor and Common Council of the City of San Bernardino at a 7 meeting thereof, held on the day of 2008, by the 8 9 following vote, to wit: 10 Council Members: AYES NAYS ABSTAIN ABSENT 11 ESTRADA 12 BAXTER 13 BRINKER 14 DERRY 15 16 KELLEY 17 JOHNSON lg MCCAMMACK 19 20 Rachel G. Clark, City Clerk 21 The foregoing resolution is hereby approved this day of 2008. 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino 2r Ap roved as to for /m 26 r Ja es F. Penman 27 Attorney 28 March 26, 2008 1 2 AMENDMENT NO.1 TO VENDOR SERVICES AGREEMENT 3 4 This Agreement is entered into this 7th day of Apri12008, by and between 5 HREM Inc. ("VENDOR") and the City of San Bemazdino ("CITY" or "San Bemazdino"). 6 7 8 RECITALS 9 10 A. On August 20, 2007, HREM Inc. and the City of San Bernardino entered into a 11 Vendor Services Agreement for the manufacture and repair of hydraulic cylinders and supplies for anot-to-exceed amount of $37,000, a copy of which is attached 12 hereto as "Attachment 1"and incorporated by this reference. 13 B. The CITY and VENDOR now desire to alter the Agreement to increase the l`~ 14 amount of the Agreement by $11,000 for a total not-to-exceed purchase price of \.r 15 $48,000. 16 17 AGREEMENT 18 In consideration of the mutual promises contained in the Vendor Services 19 Agreement, the parties agree as follows: 20 21 1. The total Agreement price shall be increased by $11,000, to snot-to-exceed ~ amount of $48,000. ~ 2. The other provisions of the written contract aze reaffirmed as originally stated. 24 /// ~ /1/ 26 27 28 1 AMENDMENT NO. i TO VENDOR SERVICES AGREEMENT HREM INC. 2 3 4 IN WITNESS THEREOF, the parties hereto have executed the Agreement on the day and date first above written. 5 6 Dated: , 2008 HREM INC. 7 8 By: 9 10 11 Dated: , 2008 CITY OF SAN BERNARDINO 12 13 r^" 14 By: Fred Wilson, City Manager 15 16 1~ ATTEST: 18 19 Rachel Clazk, City Clerk 20 21 ~ Approved as to form: 23 ~ James F. Penman City Attorney 25 ~.., 27 28 ~/