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HomeMy WebLinkAbout28- Public Services ORIGINAL CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION From: Randy Kuettle, Acting Director Subject: A Resolution of the Mayor and Common Council of the City of San Dept: Public Services Bernardino authorizing an amendment to an agreement and increase to an Date: March 11, 2010 annual purchase order in the amount of $30,000 with "Y" Tires of Los Angeles. Meeting Date: April 5, 2010 Synopsis of Previous Council Action April 16, 2007 Reso 2007-126 Annual PO with increase of $30,000 Oct. 6, 2008 Reso 2008-392 Annual PO with increase of $65,000 July 6, 2009 Reso 2009-194 Annual PO three single year renewals Recommended Motion: Adopt Resolution. atu Contact person Don Johnson, Fleet Manager one: 5220 Supporting data attached: Staff report, Resolution, Amendment Ward: All and Agreement. FUNDING REQUIREMENTS: Amount: $30,000 Source: 635-341-5111 Material and Supplies Finance: Co�ur1✓Fil Notes: ' rl�so 2o/6—G7 7 R2�<a7,�st� Agenda Item No. 1Q 4-S-2oto CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report Subject: A Resolution of the Mayor and Common Council of the City of San Bernardino authorizing an amendment to an agreement and increase to an annual purchase order in the amount of$30,000 with "Y" Tires of Los Angeles. Background: The City purchases a variety of tires for use on refuse equipment, light vehicles, certified pursuit tires for police vehicles, and road equipment. Heavy-duty truck tires may be recapped up to eight times before the tire carcass is worn out. Recapping involves replacing the tread face of the tire. The use of recapped tires provides cost savings over the use of new tires. On July 6, 2009 the Mayor and Common Council approved Resolution 2009-194 authorizing $345,000 for an annual purchase order with an option for three single year renewals, to "Y" Tires of Los Angeles, which had submitted the lowest price on Bid No. F- 09-01. The Public Services Department, Fleet Division staff is requesting an increase of $30,000 to the purchase order for the remainder of FY 09/10, for a total amount not to exceed $375,000. This increase is needed due to several factors: A 28% overall increase to the "net state pricing schedule" effective March 1, 2010. This is the discounted pricing schedule that all Government agencies are offered by tire manufacturers for new tires and does not affect recaps. The recaps increased by 5% due to an increase in raw material prices and the Police Department has acquired some specialty vehicles through asset forfeiture that call for tires not on our current bid list. Some tires have been discontinued and the replacement tire is more expensive. Attached for review is a listing of tires used by the City Fleet comparing the former and current prices (see attachment 2). Tire usage for both the Police and Refuse fleets have increased from last year. Financial Impact: Funds are available for this increase of $30,000 in Fleet's materials and supplies expenditure account (635-341-5111). 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 Refuse Fund and Police Department as they are directly related, so the Refuse and Police budgets will be amended accordingly. Account Number 635-341-5111 Budgeted Amount: $1,116.300 Balance as of March 5, 2010: $105,462 Balance after approval of this item: $75,462 Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred but not yet processed. Recommendation Adopt Resolution. RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COIINCIC&' THE ChfY OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO AN AGREEMENT AND 3 INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000 WITH "Y" TIRES OF LOS ANGELES. 4 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The City Manager of the City of San Bernardino is hereby 7 authorized to execute on behalf of said City amendment number one to the Vendor 8 9 Service Agreement between the City of San Bernardino and "Y" Tires of Los Angeles, 10 a copy of which is attached hereto, marked as Exhibit "A", and incorporated herein by 11 this reference as fully set forth at length. 12 SECTION 2. That pursuant to this determination the Director of Finance or 13 his/her designee is hereby authorized to increase the annual Purchase Order to "Y" 14 Tires of Los Angeles by $30,000 for a total not to exceed $375,000. 15 SECTION 3. The Purchase Order shall reference this Resolution Number and 16 17 shall read, ""Y" Tires of Los Angeles for new and recapped tires, tubes, and related 18 repair services, not to exceed $375,000" and shall incorporate the terms and 19 conditions of the agreement. 20 SECTION 4. The authorization to execute the above referenced Amendment is 21 rescinded if it is not executed within sixty (60) days of the passage of this Resolution. 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 1 SAN BERNARDINO AUTHORIZING AN AMENDMENT TO AN AGREEMENT AND 2 INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000 WITH "Y" TIRES OF LOS ANGELES. 3 4 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 5 Mayor and Common Council of the City of San Bernardino at a 6 meeting thereof, held on the day of 2010, by the 7 following vote, to wit: 8 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 MARQUEZ 11 DESJARDIIV`J 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 17 MCCAMMACK 18 19 Rachel G. Clark, City Clerk 20 The foregoing resolution is hereby approved this day of 21 2010. 22 Patrick J. Morris, Mayor 23 City of San Bernardino 24 Ap oved as t0 For 1 25 B �L cz u s t Jam F. Penman 26 City Attorney 27 28 AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y" TIRES OF LOS ANGELES 2 This Amendment No. 1 ("Amendment I") is entered into this 5th day of 3 April 2010, by and between"Y"Tires of Los Angeles ("VENDOR") and the 4 City of San Bernardino ("CITY"or "San Bernardino"). 5 RECITALS 6 A. On July 6, 2009, "Y" Tires of Los Angeles and the City of San Bernardino entered into a Vendor Services Agreement("Agreement") for the purchase of new 7 and recapped tires, tubes and related repair services for a not-to-exceed amount of 8 $345,000, a copy of which is attached hereto as "Attachment 1" and incorporated 9 by this reference. 10 B. The CITY and VENDOR now desire to amend the Agreement to increase the i1 amount of the Agreement by $30,000 for a total not-to-exceed purchase price of 12 $375,000 for new and recapped tires,tubes and related repair services. 13 AGREEMENT 14 In consideration of the mutual promises contained in the Vendor Services 15 Agreement, the parties agree as follows: 16 1. Paragraph I and 2 of the Agreement dated July 6, 2009, attached here to as 17 Attachment 1, is amended to incorporate the terms and conditions of this 18 Amendment. 19 2. The total Agreement price shall be increased by $30,000, for a not-to-exceed amount of$375,000. 20 3. Pricing may increase during the term of this Agreement if the "Net State Price 21 Schedule" is adjusted in the future. 22 4. The other provisions of the written contract are reaffirmed as originally stated. 23 24 25 26 27 28 Exhibit"A" 1 AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y"TIRES OF LOS ANGELES 2 3 4 IN WITNESS THEREOF, the parties hereto have executed the Agreement on the day and date first above written. 5 G Dated: 2010 "Y"TIRES OF LOS ANGELES 7 g By: 9 10 11 Dated: , 2010 CITY OF SAN BERNARDINO 12 13 14 By: Charles E. McNeely, City Manager 15 16 ATTEST: 17 18 Rachel Clark, City Clerk 19 20 21 Approved as to form: 22 James F. Penman 23 City Attorney 24 By: 25 26 27 28 Exhibit"A!' 2 AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y" TIRES OF LOS ANGELES 2 This Amendment No. I ("Amendment 1") is entered into this 5th day of 3 April 2010,by and between"Y"Tires of Los Angeles ("VENDOR") and the 4 City of San Bernardino ("CITY" or "San Bernardino"). 5 RECITALS 6 A. On July 6, 2009, "Y" Tires of Los Angeles and the City of San Bernardino entered into a Vendor Services Agreement ("Agreement") for the purchase of new 7 and recapped tires, tubes and related repair services for a not-to-exceed amount of 8 $345,000, a copy of which is attached hereto as "Attachment 1" and incorporated 9 by this reference. 10 B. The CITY and VENDOR now desire to amend the Agreement to increase the 11 amount of the Agreement by $30,000 for a total not-to-exceed purchase price of 12 $375,000 for new and recapped tires, tubes and related repair services. 13 AGREEMENT 14 In consideration of the mutual promises contained in the Vendor Services 15 Agreement,the parties agree as follows: 16 1. Paragraph 1 and 2 of the Agreement dated July 6, 2009, attached here to as 17 Attachment 1, is amended to incorporate the terms and conditions of this 18 Amendment. 19 ?. The total Agreement price shall be increased by$30,000, for a not-to-exceed amount of$375,000. 20 3 Pricing may increase during the term of this Agreement if the "Net State Price 21 Schedule" is adjusted in the future. 22 4. The other provisions of the written contract are reaffirmed as originally stated. 23 24 25 26 27 28 1 AMENDMENT NO. I TO VENDOR SERVICES AGREEMENT 1 "Y" TIRES OF LOS ANGELES 2 3 4 IN WITNESS THEREOF,the parties hereto have executed the Agreement on the day and date first above written. 5 6 Dated: 2010 "Y" TIRES OF LOS ANGELES 7 8 By: 9 10 11 Dated: 2010 CITY OF SAN BERNARDINO 12 13 14 By: Charles E. McNeely, City Manager 15 16 -ATTEST: 17 18 Rachel Clark, City Clerk 19 20 21 Approved as to form: 22 James F. Penman 23 City Attorney 24 By:' t �L- 25 26 27 28 2 2009-194 1%L�,n V CU Attachment "1" JUL 21 2009 1 PURCHASE AGREEMENT FLEET DIVISION 2 This Purchase Agreement is entered into this 6' day of July, 2009, 3 by and between "Y" Tire Sales ("Vendor") and the City of San Bernardino ("City" or "San 4 Bernardino"). s WITNESSETH: 6 WHEREAS, the Mayor and Common Council has determined that it is advantageous and 7 in the best interest of the City to contract for new and recapped tires,tubes and related repair services 8 for City vehicles and equipment; and, 9 WHEREAS,The City of San Bernardino did solicit and accept bids from available vendors lo for new and recapped tires, tubes and related repair services for City vehicles and equipment; and, 11 WHEREAS, Vendor is the lowest responsive bidder to provide said goods and services to 12 City; and 13 WHEREAS, this new Agreement supersedes all previous Agreements with the Vendor; 14 NOW, THEREFORE, the parties hereto agree as follows: 15 1. SCOPE OF SERVICES. 16 For the remuneration stipulated, San Bernardino hereby engages Vendor to provide those 17 products and services as set forth in Bid Specifications No. RFQ F-09-01, for new and recapped 1 e tires, tubes and related repair services for City vehicles and equipment. 19 2. COMPENSATION AND EXPENSES. 20 A. For the products and/or services delineated above, the City, upon presentation of an 21 invoice, shall pay the Vendor pursuant to the bid summary sheet for vendor, attached hereto as 22 Attachment "I" and by this reference made a part hereof made a part hereto, an amount not to 23 exceed$345,000 for FY 09-10 . 24 B. No other expenditures made by Vendor shall be reimbursed by City. 25 3. TERM; TERMINATION. 26 The term of this Agreement shall be from July 6,2009,through June 30,2010,with three(3) 27 one-year extensions at the City's option on the same terms as to scope of service, price and as 28 otherwise set forth herein. Option year one,if exercised,shall be effective July 1,2010 through June 2009-194 1 30, 2011. Option year two, if exercised, shall be effective July 1, 2011 through June 30, 2012. 2 Option year three, if exercised, shall be effective July 1, 2012 through June 30, 2013. 3 This Agreement may be terminated at any time by thirty(30) days' prior written notice by 4 either party. The terms of this Agreement shall remain in force unless amended by written s agreement of the parties executed on or before the date of expiration of the current term of the 6 Agreement. 7 4. WARRANTY 8 Vendor expressly warrants that all products and services supplied to City by Vendor 9 under this Agreement shall conform to the specifications, drawings or other description upon 10 which this purchase is based, shall be fit and sufficient for the purpose intended, merchantable, of 11 good material and workmanship, free from defects and fee and clear of all liens or encumbrances. 12 Inspection, testing, acceptance or use of the goods by the City shall not affect 13 Vendor's obligations under this warranty, and such warranty shall survive inspection, testing, 14 acceptance and use. Vendor agrees to replace or correct promptly defects of any goods or 1s services not conforming to the foregoing warranty without expenseto the City,whennotified ofsuch 16 non-conformity by City. If Vendor fails to correct the defects in or replace non-conforming goods 17 or services promptly, City may, after reasonable notice to Vendor, make such corrections or effect 18 cover, or cure, at Vendor's expense. "Reasonable notice" for purposes of this section shall not be 19 deemed to require more than 60 calendars days notice before commencement of efforts by the City 20 to effect cover or a cure except upon written agreement of the Parties. 21 5. INDEMNITY. 22 Vendor agrees to and shall indemnify and hold the City, its elected officials, employees, 23 agents or representatives, free and harmless from all claims, actions,damages and liabilities of any 24 kind and nature arising from bodily injury, including death, or property damage, based or asserted 25 upon any actual or alleged act or omission of Vendor, its employees, agents, or subcontractors, 26 relating to or in any way connected with the accomplishment of the work or performance of services 27 under this Agreement, unless the bodily injury or property damage was actually caused by the sole 28 negligence of the City, its elected officials, employees, agents or representatives. As part of the 2009-194 1 foregoing indemnity,Vendor agrees to protect and defend at its own expense,including attorney's 2 fees,the City,its elected officials,employees,agents or representatives from any and all legal actions 3 based upon such actual or alleged acts or omissions. Vendor hereby waives any and all rights to any 4 types of express or implied indemnity against the City, its elected officials, employees, agents or s representatives, with respect to third party claims against the Vendor relating to or in any way 6 connected with the accomplishment of the work or performance of services under this Agreement. 7 6.- INSURANCE. - s While not restricting or limiting the foregoing, during the term of this Agreement, Vendor 9 shall maintain in effect policies of comprehensive public,general and automobile liability insurance, to in the amount of $1,000,000.00 combined single limit, and statutory worker's compensation 11 coverage,and shall file copies of said policies with the City's Risk Managerprior to undertaking any 12 work under this Agreement. City shall be set forth as an additional named insured in each policy of 13 insurance provided hereunder. The Certificate of Insurance famished to the City shall require the 14 insurer to notify City of any change or termination in the policy. is 7. NON-DISCRIMINATION. 16 In the performance of this Agreement and in the hiring and recruitment of employees,Vendor 17 shall not engage in, nor permit its officers, employees or agents to engage in, discrimination in 18 employment of persons because of their race,religion,color,national origin, ancestry,age, mental 19 or physical disability,medical condition,marital status, sexual gender or sexual orientation,or any 20 other status protected by law, except as permitted pursuant to Section 12940 of the California 21 Government Code. 22 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS. 23 Vendor warrants that it shall comply with any and all business registration requirements of 24 the City's Municipal Code,and any other license,permits,qualifications,insurance and approval of 25 whatever nature that are legally required of Vendor to practice its business or profession. 26 9. NOTICES. 27 Any notices to be given pursuant to this Agreement shall be deposited with the United States 28 Postal Service,postage prepaid and addressed as follows: 2009-194 1 TO THE City: Public Services Directorr 300 North"D" Street 2 San Bernardino, CA 92418 Telephone: (909) 384-5140 3 TO THE Vendor: "Y"Tire Sales 4 1941 N. Marianna Ave. Los Angeles, CA 90032 5 Telephone: (323) 223-1391 Contact: Jack Shoemaker 6 10. ATTORNEYS' FEES In the event that litigation is brought by any party in connection with this Agreement, the e prevailingparty shall be entitled to recover from the opposing party all costs and expenses,including 9 reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or 10 remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The 11 costs, salary and expenses of the City Attorney and members of his office in enforcing this 12 Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this 13 paragraph. 14 11. ASSIGNMENT. 15 Vendor shall not voluntarily or by operation of law assign, transfer, sublet or encumber all 16 or any part of the Vendor's interest in this Agreement without City's prior written consent. Any 17 attempted assignment,transfer,subletting or encumbrance shall be void and shall constitute abreach 18 of this Agreement and cause for the termination of this Agreement. Regardless of City's consent, 19 no subletting or assignment shall release Vendor of Vendor's obligation to perform all other 20 obligations to be performed by Vendor hereunder for the term of this Agreement. 21 12. VENUE. 22 The parties hereto agree that all actions or proceedings arising in connection with this 23 Agreement shall be tried and litigated either in the State courts located in the County of San 24 Bernardino, State of California or the U.S. District Court for the Central District of California, 25 Riverside Division. The aforementioned choice of venue is intended by the parties to be mandatory 26 and not permissive in nature. 27 13. GOVERNING LAW. 2e This Agreement shall be governed by the laws of the State of California. 2009-194 1 14. SUCCESSORS AND ASSIGNS. 2 This Agreement shall be binding on and inure to the benefit of the parties to this Agreement 3 and their respective heirs;representatives, successors, and-assigns. 4 15. HEADINGS. 5 The subject headings of the sections of this Agreement are included for the purposes of 6 convenience only and shall not affect the construction or the interpretation of any of its provisions. 7 16. SEVERABILITY. 8 If any provision of this Agreement is determined by a court of competent jurisdiction to be 9 invalid or unenforceable for any reason, such determination shall not affect the validity or io enforceability of the remaining terms and provisions hereof or ofthe offending provision in any other 11 circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 12 17. ENTIRE AGREEMENT; MODIFICATION. 13 This Agreement constitutes the entire agreement and the understanding between the parties, 14 and supersedes any other agreements and understandings relating to the subject manner of this is Agreement. This Agreement may be modified or amended only by a written instrument executed 16 by all parties to this Agreement. 17 IN WITNESS THEREOF,the parties hereto have executed this Agreement on the day and 18 date set fo below. 19 Dated: 2Y 2009 Dated: 11e l , 2009 20 CITY OF AN BERNARDINO "Y"TIRE SALES 21 I zz By: By Charles . cNee 23 City Manager 24 25 Approved as to Form: James F. Penman, City Attorney 26 27 By: P 28 Attachment 112" CITY OF SAN BERNARDINO BID SPECIFICATION NO. F-09-01 07/01/09-6/30/10 Y TIRE SALES INC. TIVE EFFE IVE 3/1/09-2128110 3/1110-2128/11 PART# PRODUCTCODE SIZE DESCRIPTION FORMER CURRENT COMMENTS AUTO PRICE PRICE 21-029 402 705 436 P205175R15 GOODYEAR INTERGITY $47.78 $53.68 21-030 780 064 404 P195/65R14 GOODYEAR ULTRA GRIP $61.46 $61.46 21-031 402 827 047 P195/70R14 GOODYEAR INTERGITY $43.54 $48.92 21-033 402406477 P205/65R15 GOODYEAR INTERGITY $52.66 $58.67 21-034 402 102 477 P18517OR14 GOODYEAR INTERGITY $37.57 $42.26 21.035 1402645436 P195/75R14 GOODYEAR INTERGITY $40.92 $46.01 21-036 187 359 026 P215/70R14 GOODYEAR REGATTA 2 $52.93 $52.93 21-038 766 387 405 P155/80R13 GOODYEAR ULTRA GRIP $41.18 $41.18 21-039 402 268 047 P17517OR14 GOODYEAR INTERGITY $38.49 $43.28 21-044 402431436 P215/70R15 GOODYEAR INTERGITY $50.11 $56.31 DISCONTINUED 21-046 732 807 500 P235/70R15 GOODYEAR EAGLE RSA $75.60 $76.76 21-048 732 478 500 P22517OR15 GOODYEAR EAGLE RSA $73.36 $74.74 21-049 732 354 500 P225/60R16 GOODYEAR EAGLE RSA $71.06 $75.25 21-050 732 002 500 P235/55R17 GOODYEAR EAGLE RSA $92.99 $92.99 21-060 736 276 571 P21516DR16 GOODYEAR ASSURANCE $69.63 $69.63 LIGHT TRUCK 055 744 826 802 LT235/75R15 GOODYEAR WRANG RSA $85.36 N/A DISCONTINUED 748 511 169 LT235175R15 GOODYEAR SLT ARMR $86.60 $95.24 21-061 749353434 LT245/75R76 GOODYEAR WRL RTS $102.56 N/A DISCONTINUED 748 747 189 LT245/75R16 GOODYEAR SLT ARMR $117.12 $124.23 21-067 744 725 502 LT235185R16 GOODYEAR WRL HTS $107.71 N/A DISCONTINUED 748 745 188. LT235/85R16 GOODYEAR SLT ARMR $106.39 $117.74 21-068 411 037 177 LT215/85Ri6 GOODYEAR WRL ATS $117.52 NIA I DISCONTINUED .748517188 LT215/85R16 GOODYEAR SLT ARMR $109.38 $118.16 21-064 748 518 189 LT26517OR17 GOODYEAR SLT ARMR $140.59 $140.59 NEW TIRESIZE 21-065 748 636 189 LT245175R17 GOODYEAR SLT ARMR $136.37 $145.00 MEDIUM RADIAL 21-128 138179919 11 R22.5 GOODYEAR G149 $247.45 N/A DISCONTINUED 138 179 337 11 R22.5 GOODYEAR G661 $361.54 NEW TIRE TYPE 21-129 756 246 567 215/701117.5 GOODYEAR G114 $176.98 $185.90 21-130 139 418 053 225170R19.5 GOODYEAR G647 $231.32 $242.89 SPECIALTY 21-022 '2 1 31X13.5X15 CARLISLE TURF FRONT $198.75 $342.36 21-021 303 455 294 5 23X10.50X12 NANCO 4 PLY TURF $52.45 $75.75 RETREADS 21-119 256 760 188 315/801122.5 REFUSE RIB 24/32 $145.26 $152.90 21-116 1254096072 315/80R22.5 GDYR G177 LUG 32132 $178.94 $167.62 TREAD PRICES INCLUDE ALL REPAIRS 04/5/2010, Item No. 28 Item History Backup distributed on 3/15/10, Item No. 17 15. Resolution of the City of San Bernardino authorizing the submittal of a grant application and authorizing the Police Department to administer the Alcohol Beverage Control Grant Funds in accordance with the grant expenditure plan. (See Attached) (No Cost to the City - $100,000 from Alcohol Beverage Control Grant Funds) All Wards Approved MOTION: That said resolution be adopted. Adopted 2010-46 Public Services 16. Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an amendment and increase to Purchase Order Number 302895 by $5,200 to All American Truck & Auto Body in order to completely repair refuse unit 07176. (See Attached) (Cost to the City - $5,200 from IWM Division/Equipment Maintenance) Approved MOTION: That said resolution be adopted. 2 Adopted 2010-47 XXXXXXXXXXXXXXXXXXXXX XXX 17. Resolution of the Mayor and Common Council of the City of San Bernardino authorizing an amendment to an agreement and increase to an annual purchase order in the amount of $30,000 with "Y" Tires of Los Angeles. (See Attached) (Cost to the City - $30,000 from Fleet Services/Materials and Supplies) (Resolution not available at time of printing.) All Wards No Action Taken MOTION: That said resolution be adopted. Approved MOTION: That the matter be continued to April 5, 2010. XXXXXXXXXXXXXXXXXXXXXXXXXXRILYXXXXXXXXXXXILi7IXXXXXXX 1 7 03/15/2010 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Randy Kuettle, Acting Director Subject: A Resolution of the Mayor and Common Council of the City of San Dept: Public Services Bernardino authorizing an amendment to an agreement and increase to an Date March 11, 2010 annual purchase order in the amount of $30,000 with "Y" Tires of Los Angeles. Meeting Date: March 15, 2010 Synopsis of Previous Council Action April 16, 2007 Reso 2007-126 Annual PO with increase of $30,000 Oct. 6, 2008 Reso 2008-392 Annual PO with increase of $65,000 July 6, 2009 Reso 2009-194 Annual PO three single year renewals Recommended Motion: Adopt Resolution. Signature Contact person Don Johnson, Fleet Manager Phone: 5220 Supporting data attached: Staff report, Ward: All Resolution, Amendment, Agreement. FUNDING REQUIREMENTS: Amount: $30,000 Source: 635-341-5111 Material and Supplies Finance: Council Notes: Agenda Item No. I 3-t5- �0 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: A Resolution of the Mayor and Common Council of the City of San Bernardino authorizing an amendment to an agreement and increase to an annual purchase order in the amount of$30,000 with "Y" Tires of Los Angeles. Background: The City purchases a variety of tires for use on refuse equipment, light vehicles, certified pursuit tires for police vehicles, and road equipment. Heavy-duty truck tires may be recapped up to eight times before the tire carcass is worn out. Recapping involves replacing the tread face of the tire. The use of recapped tires provides cost savings over the use of new tires. On July 6, 2009 the Mayor and Common Council approved Resolution 2009-194 authorizing $345,000 for an annual purchase order with an option for three single year renewals, to "Y" Tires of Los Angeles, which had submitted the lowest price on Bid No. F- 09-01. The Public Services Department, Fleet Division staff is requesting an increase of $30,000 to the purchase order for the remainder of FY 09/10, for a total amount not to exceed $375,000. This increase is needed due to several factors: A 28% overall increase to the "net state pricing schedule" effective March 1, 2010. This is the discounted pricing schedule that all Government agencies are offered by tire manufacturers for new tires and does not affect recaps. The recaps increased by 5% due to an increase in raw material prices and the Police Department has acquired some specialty vehicles through asset forfeiture that call for tires not on our current bid list. Some tires have been discontinued and the replacement tire is more expensive. Attached for review is a listing of tires used by the City Fleet comparing the former and current prices (see attachment 2). Tire usage for both the Police and Refuse fleets have increased from last year. Financial Impact: Funds are available for this increase of $30,000 in Fleet's materials and supplies expenditure account (635-341-5111). 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 Refuse Fund and Police Department as they are directly related, so the Refuse and Police budgets will be amended accordingly. Account Number 635-341-5111 Budgeted Amount: $1,116,300 Balance as of March 5, 2010: $105,462 Balance after approval of this item: $75,462 Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred but not yet processed. Recommendation Adopt Resolution. 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO AN AGREEMENT AND 3 INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000 WITH "Y" TIRES OF LOS ANGELES. 4 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The City Manager of the City of San Bernardino is hereby 7 authorized to execute on behalf of said City amendment number one to the Vendor 8 9 Service Agreement between the City of San Bernardino and "Y" Tires of Los Angeles, 10 a copy of which is attached hereto, marked as Exhibit "A", and incorporated herein by 11 this reference as fully set forth at length. 12II SECTION 2. That pursuant to this determination the Director of Finance or 13 his/her designee is hereby authorized to increase the annual Purchase Order to "Y" 14 Tires of Los Angeles by $30,000 for a total not to exceed $375,000. 15 SECTION 3. The Purchase Order shall reference this Resolution Number and 16 17 shall read, ""Y" Tires of Los Angeles for new and recapped tires, tubes, and related 18 repair services, not to exceed $375,000" and shall incorporate the terms and 19 conditions of the agreement. 20 SECTION 4. The authorization to execute the above referenced Amendment is 21 rescinded if it is not executed within sixty (60) days of the passage of this Resolution. 22 23 24 25 26 27 28 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 1 SAN BERNARDINO AUTHORIZING AN AMENDMENT TO AN AGREEMENT AND 2 INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000 WITH "Y" TIRES OF LOS ANGELES. 3 4 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 5 Mayor and Common Council of the City of San Bernardino at a 6 meeting thereof, held on the day of 2010, by the 7 8 following vote, to wit: 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 MARQUEZ 11 DESJARDINS 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 17 MCCAMMACK 18 19 Rachel G. Clark, City Clerk 20 The foregoing resolution is hereby approved this day of 21 , 2010. 22 Patrick J. Morris, Mayor 23 City of San Bernardino 24 Approved as to Form: 25 rsy: James F. Penman 26 City Attorney 27 28 2 AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y"TIRES OF LOS ANGELES 2 This Amendment No. 1 ("Amendment 1") is entered into this 15th day of 3 March 2010, by and between"Y"Tires of Los Angeles ("VENDOR") and the 4 City of San Bernardino ("CITY"or"San Bernardino"). 5 RECITALS 6 A. On July 6, 2009, "Y" Tires of Los Angeles and the City of San Bernardino 7 entered into a Vendor Services Agreement("Agreement") for the purchase of new and recapped tires, tubes and related repair services for a not-to-exceed amount of $345,000, a copy of which is attached hereto as "Attachment 1" and incorporated 9 by this reference. 10 B. The CITY and VENDOR now desire to amend the Agreement to increase the 11 amount of the Agreement by $30,000 for a total not-to-exceed purchase price of 12 $375,000 for new and recapped tires, tubes and related repair services. 13 AGREEMENT 14 In consideration of the mutual promises contained in the Vendor Services 15 Agreement, the parties agree as follows: 16 1. Paragraph 1 and 2 of the Agreement dated July 6, 2009, attached here to as 17 Attachment 1, is amended to incorporate the terms and conditions of this 18 Amendment. 19 2. The total Agreement price shall be increased by $30,000, for a not-to-exceed 20 amount of$375,000. The other provisions of the written contract are reaffirmed as originally stated. 21 22 23 24 25 26 27 28 t AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y"TIRES OF LOS ANGELES 2 3 4 IN WITNESS THEREOF,the parties hereto have executed the Agreement on the day and date first above written. 5 6 Dated: 12010 "Y"TIRES OF LOS ANGELES 7 8 By: 9 10 it Dated: , 2010 CITY OF SAN BERNARDIIVO 12 13 14 By: Charles E. McNeely, City Manager 15 16 ATTEST: 17 18 Rachel Clark, City Clerk 19 20 21 Approved as to form: 22 James F. Penman 23 City Attorney 24 By: 25 26 27 28 AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y" TIRES OF LOS ANGELES 2 This Amendment No. 1 ("Amendment 111) is entered into this 15th day of 3 March 2010,by and between"Y"Tires of Los Angeles ("VENDOR') and the 4 City of San Bernardino ("CITY" or"San Bernardino"). 5 RECITALS 6 A. On July 6, 2009, "Y" Tires of Los Angeles and the City of San Bernardino 7 entered into a Vendor Services Agreement ("Agreement") for the purchase of new and recapped tires,tubes and related repair services for a not-to-exceed amount of $345,000, a copy of which is attached hereto as "Attachment 1" and incorporated 9 by this reference. 10 B. The CITY and VENDOR now desire to amend the Agreement to increase the 11 amount of the Agreement by $30,000 for a total not-to-exceed purchase price of 12 I $375,000 for new and recapped tires,tubes and related repair services. 13 AGREEMENT 14 In consideration of the mutual promises contained in the Vendor Services 15 Agreement,the parties agree as follows: 16 1 Paragraph 1 and 2 of the Agreement dated July 6, 2009, attached here to as 17 Attachment 1, is amended to incorporate the terms and conditions of this 18 Amendment. 19 2. The total Agreement price shall be increased by$30,000, for a not-to-exceed amount of$375,000. 20 3. The other provisions of the written contract are reaffirmed as originally stated. 21 22 23 24 25 26 27 28 i AMENDMENT NO. 1 TO VENDOR SERVICES AGREEMENT 1 "Y" TIRES OF LOS ANGELES 2 3 4 IN WITNESS THEREOF,the parties hereto have executed the Agreement on the day 5 and date first above written. 6 Dated: 12010 "Y"TIRES OF LOS ANGELES 7 8 By: 9 10 11 patcd. ' 2010 CITY OF SAN BERNARDINO 12 13 14 By: Charles E. McNeely, City Manager 15 16 ATTEST: 17 18 Rachel Clark, City Clerk 19 20 21 Approved as to form: 22 James F. Penman 23 City Attorney 24 By: 25 26 27 28 2