HomeMy WebLinkAbout32-Public Services CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
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From: Ken Fischer, Director Subject: Resolution authorizing the
execution of an agreement and increase
Dept: Public Services to an annual purchase order with two
single year renewal options to HREM
Date March 13, 2008 Inc. for the fabrication and repair of
Refuse truck bodies and floors to be
utilized by the Public Services
Department Fleet Division.
Meeting Date: April 7, 2008
Synopsis of Previous Council Action
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 a ' ' nal $25,100 in
outside service costs.
`"" Signature
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Contact person Don Johnson, Fleet Manager Phone: 5220
Supporting data attached: Staff Report,
Resolution, Agreement. Ward: All
FUNDING REQUIREMENTS:
Amount: $25,100
Source: 635-341-5173
Outside Vehicle
Maintenance
Finance:
Council Notes:
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Agenda Item No.
CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution authorizing the execution of an agreement and increase to an annual purchase
order with two single year renewal options to HREM Inc. for the fabrication and repair of
Refuse truck bodies and floors to be utilized by the Public Services Department Fleet
Division.
Background:
HREM Inc. of Colton, Ca. was awarded Annual Purchase Order #208380 on July 1, 2007, in
the amount of $24,900 for FY 2007/2008 for the fabrication and repair of Refuse truck
bodies and floors. The Public Services Department, Fleet Division staff is requesting an
increase of $25,100 to the purchase order, for a total amount not to exceed $50,000 for the
remainder of FY 2007/2008. The requested increase is needed due to staff shortages in the
Fleet Division, the addition of (8) eight Refuse trucks, increased usage of the already aging
Refuse trucks (longer hours and weekends) as well as compliance with the CHP mandated
BIT program. 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
order funds being depleted at a rate higher then originally anticipated.
Financial Impact:
A budget amendment of $25,100 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 $25,100 in outside
SBNIC@ COStS.
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
3 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR
4 RENEWAL OPTIONS TO HREM INC. FOR THE FABRICATION AND REPAIR OF
REFUSE TRUCK BODIES AND FLOORS TO BE UTILIZED BY THE PUBLIC
5 SERVICES DEPARTMENT FLEET DIVISION.
6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
7 OF SAN BERNARDINO AS FOLLOWS:
8 SECTION 1. The City Manager of the City of San Bemardino is hereby
9 authorized to execute on behalf of said City an Agreement between the City of San
10 Bernardino and HREM Inc., which is attached hereto, marked Exhibit "A" and
it
incorporated herein by reference as fully as though set forth at length.
12
13 SECTION 2. This purchase is exempt from the formal contract procedures of
14 Section 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B.3 of said
`~..' 15 Code "Purchases approved by the Mayor and Common Council".
16 SECTION 3. That HREM Inc. provides fabrication and repair of
17 Refuse truck bodies and floors to be utilized by the Public Services Department Fleet
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Division. Pursuant to this determination, the Purchasing Manager is hereby
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authorized to issue an increase of $25,100 to the annual purchase order, to said
20
21 HREM Inc., for a total amount not to exceed $50,000 beginning in
~ Fiscal Year 2007/2008.
23 SECTION 4. The Purchase Order shall reference this Resolution No. 2008-_
~ and shall read, "HREM Inc. for fabrication and repair of refuse truck bodies and floors,
~ P.O. not to exceed $50,000.00" and shall incorporate the terms and conditions of the
26 Agreement.
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March 15, 2008
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR
3 RENEWAL OPTIONS TO HREM INC. FOR THE FABRICATION AND REPAIR OF
REFUSE TRUCK BODIES AND FLOORS TO BE UTILIZED BY THE PUBLIC
4 SERVICES DEPARTMENT FLEET DIVISION.
5 SECTION 5. The authorization to execute the above referenced Purchase
6 Order and a reement is rescinded if not issued within si
g xty (60) days of the passage of
7
this resolution.
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9 111
10 III
11 111
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111
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18 111
19 111
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March 15, 2008
I
~, 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
3 INCREASE TO AN ANNUAL PURCHASE ORDER WITH TWO SINGLE YEAR
RENEWAL OPTIONS TO HREM INC. FOR THE FABRICATION AND REPAIR OF
4 REFUSE TRUCK BODIES AND FLOORS TO BE UTILIZED BY THE PUBLIC
5 SERVICES DEPARTMENT FLEET DIVISION.
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
7 Mayor and Common Council of the City of San Bemardino at a
8 meeting thereof, held on the day of , 2008, by the
9 following vote, to wit:
10 Council Members: AYES NAYS ABSTAIN ABSENT
I1
ESTRADA
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13 BAXTER
~-- 14 BRINKER
~,~
15 DERRY
16 KELLEY
17 JOHNSON
18
MCCAMMACK
19
20 Rachel G. Clark, City Clerk
21 The foregoing resolution is hereby approved this day of
~ , 2008.
23
~ Patrick J. Morris, Mayor
City of San Bernardino
~ Ap roved as to f rm:
26
27 J mes F. Penman, City Attorney
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March 15, 2008
1 VENDOR SERVICE AGREEMENT
2 This Vendor Service Agreement is entered into this 70' day of April 2008, by and
3 between HREM Inc. ("VENDOR") and the City of San Bernardino ("CITY" or "San
4 Bernardino").
5 WITNESSETH:
6
WHEREAS, the Mayor and Common Council has determined that it is advantageous
7
8 and in the best interest of the CITY to contract for fabrication and repair of refuse truck bodies
9 and floors utilized by the Public Services Department, Fleet Division; and
10 WHEREAS, the City of San Bernazdino did solicit and accept bids from a number of
11 vendors for fabrication and repair of refuse truck bodies and floors.
12 NOW, THEREFORE, the parties hereto agree as follows:
13
1. SCOPE OF SERVICES.
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a. For the remuneration stipulated, San Bernardino hereby engages the services of
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16 VENDOR to provide fabrication and repair of refuse truck bodies and floors per bid
17 specification RFQ F-07-42.
18 2. COMPENSATION AND EXPENSES.
19 b. For the services delineated above, the CITY, upon presentation of an invoice, shall
20 pay the VENDOR, up to the amount of $50,000.00 for fabrication and repair of
21
refuse truck bodies and floors.
22
~ c. No other expenditures made by VENDOR shall be reimbursed by CITY.
~ 3. TERM.
~ This Agreement will be effective on July I, 2007 through June 30, 2009 with two (2)
26 one-yeaz extensions at the City's option. Option yeaz one, if exercised, shall be effective July
27 I, 2009 through June 30, 2010. Option year two, if exercised, shall be effective July 1, 2010
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1 through June 30, 2011. Actual option year pricing shall be negotiated with VENDOR prior to
2 exercising any given option yeaz.
3 This Agreement may be terminated at any time by thirty (30) days' written notice by
4 either party. The terms of this Agreement shall remain in force unless mutually amended. The
5 duration of this Agreement may be extended with the written consent of both parties.
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4. INDEMNITY.
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CITY agrees to indemnify and hold hazmless VENDOR, its officers, agents and
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9 volunteers from any and all claims, actions, or losses, damages and/or liability resulting from
10 CITY's negligent acts or omissions arising from the CITY's performance of its obligations
11 under the Agreement.
12 VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and
13 volunteers from any and all claim, actions, or losses, damages and/or liability resulting from
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VENDOR'S ne li ent acts or omissions arisin from the VENDOR'S performance of its
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16 obligations under the agreement.
17 In the event the CITY and/or the VENDOR is found to be comparatively at fault for any
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1$ claim, action, loss, or damage which results from their respective obligations under the
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19 Agreement, the CITY and/or VENDOR shall indemnify the other to the extent of this
I; 20 compazative fault.
21
5. INSURANCE.
22
~ While not restricting or limiting the foregoing, during the term of this Agreement,
24 VENDOR shall maintain in effect policies of comprehensive public, general and automobile
~r liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory
26 worker's compensation coverage, and shall file copies of said policies with the CITY'S Risk
27 Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an
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0325/08
1 additional named insured in each policy of insurance provided hereunder. The Certificate of
2 Insurance furnished to the CITY shall require the insurer to notify CITY of any change or
3 termination in the policy.
4 6. NON-DISCRIMINATION.
5 In the performance of this Agreement and in the hiring and recruitment of employees,
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VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
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discrimination in employment of persons because of their race, religion, color, national origin,
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9 ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
10 sexual orientation, or any other status protected by law, except as permitted pursuant to Section
11 12940 of the California Govenunent Code.
12 7. INDEPENDENT CONTRACTOR
13 VENDOR shall perform work tasks provided by this Agreement, but for all intents and
t~ 14
~+•- of the
purposes VENDOR shall be an independent contractor and not an agent or employee
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16 CITY' VENDOR shall secure, at its expense, and be responsible for any and all payment of
17 Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
~' 18 Compensation, and other payroll deductions for VENDOR and its officers, agents, and
19 employees, and all business licenses, if any are required, in connection with the services to be
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performed hereunder.
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21 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
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VENDOR warrants that it possesses or shall obtain, and maintain a business registration
23
~ certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits,
~r qualifications, insurance and approval of whatever nature that are legally required of VENDOR
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26 to practice its business or profession.
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1 9. NOTICES.
2 Any notices to be given pursuant to this Agreement shall be deposited with the United
3 States Postal Service, postage prepaid and addressed as follows:
4 TO THE CITY: Public Services Director
5 300 North "D" Street
San Bemazdino, CA 92418
6 Telephone: (909) 384-5140
7 TO THE VENDOR: HREM Inc.
1465 Miller Drive.
8 Colton, CA 92324
9 Telephone: (909) 872-1195
Attn: Tony Cuevas
10
10. ATTORNEYS' FEES.
it
In the event that litigation is brought by any party in connection with this Agreement,
12
13 the prevailing party shall be entitled to recover from the opposing party all costs and expenses,
'~ 14 including reasonable attomeys' fees, incurred by the prevailing party in the exercise of any of
15 its rights or remedies hereunder or the enforcement of any of the terms, conditions or
16 provisions hereof. The costs, salary and expenses of the City Attorney and members of his
17
office in enforcing this Agreement on behalf of the CITY shall be considered as "attomeys'
18
fees" for the purposes of this pazagraph.
19
20 11. ASSIGNMENT.
21 VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
22 ~ 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
25
Agreement. Regazdless of CITY'S consent, no subletting or assignment shall release VENDOR
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~-- 1 of VENDOR's obligation to perform all other obligations to be performed by VENDOR
~' 2 hereunder for the term of this Agreement.
3 12. VENUE.
4 The parties hereto agree that all actions or proceedings arising in connection with this
5 Agreement shall be tried and litigated either in the State courts located in the County of San
6
Bemazdino, State of California or the U.S. District Court for the Central District of California,
7
Riverside Division. The aforementioned choice of venue is intended by the parties to be
8
9 mandatory and not permissive in nature.
10 13. GOVERNING LAW.
11 This Agreement shall be governed by the laws of the State of California.
12 14. SUCCESSORS AND ASSIGNS.
13 This Agreement shall be binding on and inure to the benefit of the parties to this
`"~ 14
~ Agreement and their respective heirs, representatives, successors, and assigns.
15
16 15. HEADINGS.
17 The subject headings of the sections of this Agreement are included for the purposes of
I$ convenience only and shall not affect the construction or the interpretation of any of its
19 provisions.
20 16. ENTIRE AGREEMENT; MODIFICATION.
21
This Agreement constitutes the entire agreement and the understanding between the
22
parties, and supercedes any prior agreements and understandings relating to the subject manner
23
~ of this Agreement. This Agreement may be modified or amended only by a written instrument
~r executed by all parties to this Agreement.
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1 VENDOR SERVICE AGREEMENT
HREM INC.
2
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
3
and date set forth below.
4
5 Dated: , 2008 VENDOR
6 By:
7 Its:
8 Dated , 2008 CITY OF SAN BERNARDINO
9 By:
10 Fred Wilson, City Manager
11
12 Approved as to Form:
13
r^ 14 Bye
J es F. Penman, City Attorney
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