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CITY OF SAN BERNARDINO _ REQUEST FOR COUNCIL Ac021 G \ N A L
Date: June 11, 2009
Subject: Resolution of the Mayor and
Common Council of the City of San
Bernardino authorizing the execution of
an Agreement and issuance of a
Purchase Order in the amount of
$140,000 to Zumar Industries,
Incorporated for the purchase of traffic
signs.
From: Ken Fischer, Director
Dept: Public Services
Meeting Date: July 6, 2009
Synopsis of Previous Council Action:
April 20, 2009 - Resolution No. 2009-90 - The Mayor and Common Council authorized
the execution of an amendment to the Agreement and an increase to Purchase Order
302330 by an additional $20,000 to Zumar Industries, Incorporated for the purchase of
additional traffic signs located throughout the City of San Bernardino.
Recommended Motion:
Adopt Resolution.
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Contact person: Ken Fischer, Director
Phone:
5140
Supporting data attached:
Staff Report, Resolution,
Vendor Service Agreement and
Attachment" 1" and "2"
Ward:
All
Source:
$140,000
FY 09-10
001-408-5111
(Materials & Supplies)
FUNDING REQUIREMENTS:
Amount:
Council Notes:
,/:J
K es c)
Finance:
0;009- /9"/
Agenda Item No. 31
1...{ f)" n4
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing
the execution of an Agreement and issuance of a Purchase Order in the amount of
$140,000 to Zumar Industries, Incorporated for the purchase of traffic signs.
Background:
The Public Services Department, Street Division is responsible for the Sign Maintenance
Program. Staff manufactures a small portion of the signs and an outside vendor supplies
the majority of all other signs located throughout the City.
On October 16, 2006, per Resolution 2006-372, the Mayor and Common Council
authorized the execution of an agreement with Zumar Industries Incorporate for the
purchase of traffic signs in the amount of $86,897. The contract term was for one year
with the ability to renew up to four years, per Bid Specifications SB# 1-06 (Attachment "1 ").
On July 16, 2007, per Resolution 2007-311, staff exercised option year one for FY 07-08
and increased the amount to $120,000. On August 4, 2008, per Resolution 2008-317,
staff exercised option year two for FY 08-09 in the amount of $120,000. On April 20, 2009,
per Resolution No. 2009-90, the Mayor and Common Council authorized the execution of
an amendment to the Agreement and an increase to Purchase Order 302330 by an
additional $20,000 for FY 08-09. Staff has been and continues to identify a number of old
signs that have been vandalized by graffiti that cannot be repaired. These older signs do
not have anti-graffiti sheeting so it is very difficult to remove the graffiti without damaging
the signs.
On March 2, 2009, Zumar Industries sent the City of San Bernardino a letter stating that
they would like to extend the contract for year 3 from, July 1, 2009 through June 30, 2010
without changing the pricing or terms of their contract (See Attachment "2").
Staff recommends acceptance of the third contract renewal year for FY 09-10. Zumar has
been very responsive to our sign requirements. Staff recommends that the Mayor and
Common Council authorize the execution of an Agreement and issuance of a Purchase
Order in the amount of $140,000 to Zumar Industries, Incorporated for purchase of traffic
signs located through the City of San Bernardino.
The sign system is a critical link for the control of vehicular traffic and enforcing of all traffic
laws. The sign system is made up of Regulatory signs, Warning signs, and Guide signs.
The Sign Maintenance Program is essential to keep the traffic sign system in working
order.
Financial Impact:
Funds have been budgeted in the FY 09-10 Budget, Account No. 001-408-5111 (Materials
and Supplies) in the amount of $140,000.
Recommendation:
Adopt Resolution.
(CQ)~Y
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $140,000 TO ZUMAR
INDUSTRIES, INCORPORATED FOR THE PURCHASE OF TRAFFIC SIGNS.
WHEREAS, Zumar Industries, Incorporated previously submitted the lowest bid
for the purchase of traffic signs per SB# 1-06; and,
WHEREAS, by execution of the Agreement hereby adopted, the parties wish to
exercise the third option to extend their original agreement as set forth in Bid
Specification SB# 1-06 for the period of July 6, 2009 to June 3D, 2010 and to
otherwise amend the original agreement to conform; and,
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager 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 Zumar Industries Incorporated, a copy of which is attached hereto,
marked as Exhibit "A", and incorporated herein by this reference as fully as though set
forth at length.
SECTION 2. That pursuant to this determination the Director of Finance or her
designee is hereby authorized to issue a purchase order to Zumar Industries, Inc. in
SECTION 3. The Purchase Order shall reference this Resolution Number and
shall read, "Zumar Industries, Inc. for traffic sign materials. Agreement not to exceed
25 $140,000" and shall incorporate the terms and conditions of the agreement.
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11/
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
1 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
2 ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $140,000 TO ZUMAR
INDUSTRIES, INCORPORATED FOR THE PURCHASE OF TRAFFIC SIGNS.
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SECTION 4. The authorization to execute the above referenced Purchase
5 Order and Agreement is rescinded if it is not executed by both parties within sixty (60)
6 days of the passage of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $140,000 TO ZUMAR
INDUSTRIES, INCORPORATED FOR THE PURCHASE OF TRAFFIC SIGNS.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
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7 following vote, to wit:
, 2009, by the
day of
meeting thereof, held on the
8 Council Members:
AYES
NAYS
ABSTAIN ABSENT
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12 BRINKER
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ESTRADA
BAXTER
SHORETT
14 KELLEY
15 JOHNSON
16 MCCAMMACK
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Rachel G. Clark, City Clerk
day of
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The foregoing resolution is hereby approved this
,2009.
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24 Approved as to Form:
Patrick J. Morris, Mayor
City of San Bernardino
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VENDOR SERVICE AGREEMENT
This Vendor Service Agreement is entered into this 6th day of July 2009, by and
between Zumar Industries, Incorporated ("VENDOR") and the City of San Bernardino
("CITY" or "San Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to acquire traffic sign and related items; and
WHEREAS, the City of San Bernardino did solicit and accept bids from available
vendors for such sign materials per SB#I-06; and,
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 SB#I-06, for traffic signs,
dated August 9, 2006, Attached hereto as Attachment "I" and incorporated herein by this
reference. This Agreement supersedes any inconsiste1).l provision of any prior Agreement
between the parties respecting the goods and services to be delivered hereunder.
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$140,000, for the purchase of traffic signs.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
3. TERM; TERMINATION.
The term of this agreement shall be from July 6,2009 through June 30, 2010.
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 amended by written
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agreement of the parties executed on or before the date of expiration of current term of the
agreement.
4. INDEMNITY.
Vendor agrees to and shall indemnify and hold the City, its elected officials, employees,
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
any kind and nature arising from bodily injury, including death, or property damage, based or
asserted upon any or alleged act or omission of Vendor, its employees, agents, or
subcontractors, relating to or in any way connected with the accomplishment of the work or
performance of service under this Agreement, unless the bodily injury or property damage was
actually caused by the sole negligence of the City, its elected officials, employees, agents or
representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its
own expense, including attorney's fees the City, its elected officials, employees, agents or
representatives from any and all legal actions based upon such actual or alleged acts or
omissions. Vendor hereby waives any and all rights to any types of express or implied
indemnity against the City, its elected officials, employees, agents or representatives, with
respect to third party claims against the Vendor relating to or in any way connected with the
accomplishment of the work or performance of services under this Agreement.
5. INSURANCE.
While not restricting or limiting the foregoing, 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
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Insurance furnished to the CITY shall require the insurer to notify CITY of any change or
termination in the policy. Insurer shall give CITY 30 days notice prior to enactment and any
change or termination of policy.
6. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
sexual orientation, or any other status protected by law.
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 licenses, 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 licenses, permits,
qualifications, insurance and approval of whatever nature that are legally required of VENDOR
to practice its business or profession.
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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:
TO THE CITY:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR:
Zumar Industries, Incorporated
9719 Santa Fe Springs Road
Santa Fe Springs, CA 90670
Telephone: (962) 941-4633
Contact: Erik Gustafson
9. 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.
10. 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
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of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
11. 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
mandatory and not permissive in nature.
12. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
13. 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.
14. HEADINGS.
The subj ect 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.
15. SEVERABILITY.
If any provision of this Agreement is determined by a court of competent jurisdiction to
be invalid or unenforceable for any reason, such determination shall not affect the validity or
enforceability of the remaining terms and provisions hereof or of the offending provision in any
other circumstance, and the remaining provisions of this Agreement shall remain in full force
and effect.
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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.
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VENDORSER~CEAGREEMENT
ZUMAR INDUSTRIES, INCORPORATED
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and
date set forth below.
,2009
VENDOR.
Dated:
By:
,2009
CITY OF SAN BERNARDINO
Dated
By:
Charles E. McNeely, City Manager
Approved as to Form:
7
ATTACHMENT "1"
Page' or'
City of San Bernardino
TECHNICAL SPECIFICATIONS
BID SPECIFICATION NO. SB #1-06
TRAFFIC SIGNS
NOTICE: "SPECIAL INSTRUCTIONS TO THE BIDDER"
Requirements:
Bidder shan complete right-hand column indicating brief reasoning for
exceptions to requirements when Dot acceptable. State "Acceptable" if
requirements are agreeable as set forth in left-hand column and the cost of
each item
Description:
The City of San Bernardino Public Services Department is taking bids for
Manufactured traffic signs and sign faces. The contract term win be a one
Year contract with the ability to renew up to four years.
FAILURE TO COMPLETE RIGHT HAND COl,UMN WILL INV ALIDA TE BID
CATEGORY I
ACCEPT ABLE I AS SPECIF1ED
\. SCOPE
A. All sheeting's must be match components for each
sign made.
B. Delivery charges are included with every sign order
and should be reflected in each line item bid.
C. All signs and sign faces ordered will have 1160
premium graffiti overlay.
D. All pricing is guaranteed for one year from date of
award of contract.
E. Supplier will supply Public Sen'ices Department with
, signs and supplies during the ensuing fiscal year( s)
and have them available to the Department within
(1 0) working days.
F. The price quote shan be for the fiscal year 2006-
2007.
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ZUMAR INDUSTRIES. INC
9719 SANTA FE SPRINGS RD.
SANTA FE SPRINGS CA 9087('
Bid Spec, # F-OI."
G. All quotes shall be on fonn provided furnished by
Public Services Department.
H. All signs must have date and manufacture screen
printed in right hand comer in 'I." inch letters.
l. Default: The City of San Bernardino by written
notice of default to the contractor, may terminate the
whole or any part of this contract in anyone of the
following circumstances: A If the contractor fuils to
make delivery of the supplies or signs specified in
this contract. B. If contractor fails to perform any of
the provisions of this contract, and fuils to remedy the
situation within a period often (10) days after receipt
of notice.
J. In the event the City'of San Bernardino terminates
this contract in whole or part, the City may procure
supplies or services similar to those terminated, and
contractor shall be liable to the City for and excess
cost for such similar supplies. signs, or services.
K. All aluminum blanks shall be 5052H38 alloy.
Materials SDecifications
Discriotion - Sheeting
1. Diamond Grade type 9 Florescent colors 1,000 Sq. Ft.
2. Diamond Grade type 9 standard colors 3,000Sq. Fl.
3. High Intensity Grade type 4 prismatic 3,000 Sq. Ft.
4. Engineer grade type I 3,000 Sq. Fl
5' /Iu""; /k'f14H..... 4""/ (:/~~6rTl ,.,',"-,-;:,.1Y
Al .. nk ~ Su".,,-=r
ummlm Bla s 5052H38 Alov "6'I'#G' oS Q.(' T.
I. Aluminum .125 3.000 Sq. Ft.
2. Aluminum 0.804,500 Sq. ft,
3. Aluminum 0.63 2,000 Sq. Ft.
4. Extruded Blade 6" X 24" 600 Ln.. Ft.
5. Extruded Blade 6- X 30 " 600 Ln. Ft
:])MJl..R INDUSTRiGS, !Ni~
8719 SN'JTA FE SPRINGS RD.
':::/\:~:I>, r-t' SPF:;\I,-'~ r,to. Q()R7n
Page. of-
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Total Price
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Bid Spec. # F-Ol."
6. Extruded Blade 6" X 36" 600 Ln. Ft.
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7. Extruded Blade 6~ X 42" 600 Lq. Ft.
.l. Su.
8. Extruded Blade 6" X 48" 600 Lq. Ft.
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Please fill in all rilzbl hand columns and sil!n bid sbeer. Mail to:
Cjty of San Bernardino
A TIN; Randy Kuettle
234 S. Mountain View Avenue
San Bernardino, CA 92408
Signed
Please bave bids in by Au us! 10.2006 by 3:00 p.m.
"I.? 11 J
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I I
(Name & Title [Person Prepared the Bill)
-? - ,------;;;---
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(Owner of Business or Designee)
Date
Page. of*
/5/1.ll0
1)>>.00 .
/5?'[;. ,'v
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Signed
Date BA~,~.;;
ZUMAR INDUSTRIES, INC
9719 SANTA. FE SPRINGS AD
r..It...L.S"'/J. ~~'r::pq:r--.i(;~. C.6 t.10f?~1
Bid Spec. # F.Ol."
March 2, 2009
City of San Bernardino
Attn: Randy Kuettle
234 S Mt. View Ave
San Bernardino, CA 92408
Subject Renewal
P.O. #302330
Dear: Randy Kuettle
Attachment "2"
fI!J1JJ1J
Zumar Industries would like to extend the above contract for an
additional year, July 1, 2009 through June 30, 2010. We are pleased
to offer this extension without any change in pricing or terms per the
renewal agreement in the original contract. Zumar has enjoyed a
long and successful relationship with the City of San Bernardino and
look forward to serving your needs in the future.
Sincerely,
Erick Gustafson
Erick Gustafson
Acct. Manager
Zumar Ind.