HomeMy WebLinkAbout22- Public Services ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Ken Fischer, Director Subject: Resolution of the Mayor and
Common Council of the City of San
Dept: Public Services Bernardino authorizing the execution of
an Agreement and issuance of an
Date: July 23, 2009 Annual Purchase Order in the amount of
$116,000 with three (3) one-year
extensions at the City's option to
Fairview Ford Sales Incorporated of San
Bernardino for specific Ford parts and
supplies to support the City's light and
heavy vehicle fleet.
Meeting Date: August 17, 2009
Synopsis of Previous Council Action:
Reso 2000-88 4/17/00 Increase PO by $21,000 —2 single year options
Reso 2003-186 7/07/03 Annual PO — three single year renewal options
Reso 2005-174 6/20/05 Annual PO with increase of$26,000
Reso 2006-113 4/17/06 Annual PO with increase of$10,000
Recommended Motion:
Adopt Resolution.
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Signature
Contact person: Don Johnson, Fleet Manager Phone: 5220
Supporting data attached:
Staff Report, Resolution and Ward: All
Vendor Service Agreement
FUNDING REQUIREMENTS: Amount: $116,000
Source: FY 09-10
$110,000 from Account No. 635-
341-5111 (Materials & Supplies)
and $6,000 from Account No.
635-341-5173 (Outside Vehicle
Maintenance)
Finance:
Council Notes: �eso 02009- a91,
Agenda Item No. *2Z
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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 an Annual Purchase Order in the
amount of $116,000 with three (3) one-year extensions at the City's option to Fairview
Ford Sales Incorporated of San Bernardino for specific Ford parts and supplies to
support the City's light and heavy vehicle fleet.
Background:
The City's fleet contains over three hundred (300) Ford Motor Products. Generally, all
Ford dealerships offer similar pricing for parts and services. Fairview Ford Sales
Incorporated is the only local Ford dealership in the City of San Bernardino that
maintains sufficient parts inventories to support the City's fleet operations. They
specialize in Police Interceptor parts to support the City's Police Department. Critical
parts for these vehicles are kept in stock. The Public Services, Fleet Division
occasionally uses Fairview Ford Sales Incorporated for diagnostic services as well. The
diagnostic service helps discover problems in the City's fight vehicles.
Fairview Ford Sales Incorporated was awarded a sole source Annual Purchase Order
on July 1, 2008, in the amount of $106,000 for FY 08-09. The Public Services
Department, Fleet Division staff is requesting a sole source Annual Purchase Order with
three single year renewal options, for a total amount not to exceed $116,000 for FY 09-
10. The additional $10,000 is due to eight (8) added vehicles and price increases. The
added vehicles include 1 mall security unit, 4 graffiti trucks and 3 asset forfeitures.
Fairview Ford Sales Incorporated is also an authorized Bendix dealer. All 85 IWM
trucks and other heavy-duty vehicles in the City's fleet use Bendix air brake valves and
related parts. Having Fairview Ford Safes Incorporated support our need for Bendix
parts is an added benefit to this proposed Agreement.
Staff is requesting that the purchase be made pursuant to Municipal Code Section
3.04.010-63, "Purchases approved by the Mayor and Common Council." Staff
submitted the memorandum to the City Manager's office on August 3, 2009. Staff
recommends that the Mayor and Common Council authorize the execution of an
Agreement and issuance of an Annual Purchase Order in the amount of $116,000 to
Fairview Ford Sale Incorporated of San Bernardino for specific Ford parts and supplies
to support the City's light vehicle fleet.
Financial Impact:
Funds for this purchase have been budgeted in the FY 09-10 Budget, Account No. 635-
341-5111 (Materials & Supplies) in the amount of $110,000 and Account No. 635-341-
5173 (Outside Vehicle Maintenance) in the amount of$6,000.
Recommendation:
Adopt Resolution.
CITY OF SAN BERNARDINO
OFFICE OF THE PUBLIC SERVICES DIRECTOR
INTER-OFFICE MEMORANDUM
TO: Charles McNeeley, City Manager
FROM: Don Johnson, Public Services Fleet Division
DATE: August 13, 2009
SUBJECT: City Manager's Approval of Process — Purchases made pursuant to
Section 3.04.010(8)(3) and Section 3.04.075 of the City's Municipal
Code (Purchases approved by the Mayor and Common Council
and emergency purchases approved by the City Manager). DDL
Number 82.
COPIES: Ken Fischer, Director of Public Services
Fairview Ford Sales Incorporated was selected as a Sole Source for the following
reasons:
1. Fairview Ford Sales Incorporated is the only local Ford dealership in the City
of San Bernardino that maintains sufficient parts inventories to support the
City's fleet operations.
2. They specialize in Police Interceptor parts to support the City's Police
Department.
3. Fairview Ford Sales new discount schedule exceeds the City's request for a 5
percent discount. Staff currently receives dealer cost plus 10 percent. All
pricing is based on the current Ford Motor Company price list in effect at the
time of purchase.
A Request for Council Action has been submitted and placed on the August 17th
agenda calendar for review and approval.
Don W. Johnson
Fleet Services Division Manager
Approved By:
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Charles cNeeley
City Manager
RESOLUTION NO. \t�J PQ i.l
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $116,000
3 WITH THREE (3) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO FAIRVIEW
FORD SALES INCORPORATED OF SAN BERNARDINO FOR SPECIFIC FORD
4
PARTS AND SUPPLIES TO SUPPORT THE CITY'S LIGHT AND HEAVY VEHICLE
5 FLEET. -
6 WHEREAS, Fairview Ford Sales Incorporated is the only authorized dealership
7 for Ford parts in the City of San Bernardino.
8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
9 OF SAN BERNARDINO AS FOLLOWS:
10 SECTION 1. The City Manager of the City of San Bernardino is hereby
11 authorized to execute on behalf of said City an Agreement between the City of San
12 Bernardino and Fairview Ford Sales Incorporated, a copy of which is attached hereto,
13
marked as Exhibit "A", and incorporated herein by this reference as fully set forth at
14
15 length.
16 SECTION 2. That pursuant to this determination the Director of Finance or her
17 designee is hereby authorized to issue an Annual Purchase Order to Fairview Ford
18 Sales Incorporated for a total amount not to exceed $116,000.
19 SECTION 3. The Purchase Order shall reference this Resolution Number and
20
shall read, "Fairview Ford Sales Incorporated for Ford manufactured parts and service.
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22 Agreement not to exceed $116,000 for FY 09-10" and shall incorporate the terms and
23 conditions of the agreement.
24 SECTION 4. That this purchase is exempt from the formal contract procedures
25 of Section 3.04.010 of the Municipal Code, pursuant to Section 3.040.010 B.3 of said
26 Code, 'Purchases approved by the Mayor and Common Council".
Q 27
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
1
ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $116,000
2 WITH THREE (3) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO FAIRVIEW
FORD SALES INCORPORATED OF SAN BERNARDINO FOR SPECIFIC FORD
3 PARTS AND SUPPLIES TO SUPPORT THE CITY'S LIGHT AND HEAVY VEHICLE
FLEET.
4
5 SECTION 5. The authorization to execute the above referenced Annual
6 Purchase Order and Agreement is rescinded if it is not executed by both parties within
7 sixty (60) 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
1
ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $116,000
2 WITH THREE (3) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO FAIRVIEW
FORD SALES INCORPORATED OF SAN BERNARDINO FOR SPECIFIC FORD
3 PARTS AND SUPPLIES TO SUPPORT THE CITY'S LIGHT AND HEAVY VEHICLE
FLEET.
4
5 1 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 2009, by the
8 following vote, to wit:
9 Council Members: AYES NAYS ABSTAIN ABSENT
10
ESTRADA
11
12 BAXTER
13 BRINKER
( 14 SHORETT
15 KELLEY
16 JOHNSON
17 MCCAMMACK
18
19
20
21 Rachel G. Clark, City Clerk
22 The foregoing resolution is hereby approved this day of
23 2009.
24
Patrick J. Morris, Mayor
25 City of San Bernardino
Approved as to Form:
26
a�mes F. Penman
28 City Attorney
1 VENDOR SERVICE AGREEMENT
2 This Vendor Service Agreement is entered into this 17th day of August 2009, by and
3 between Fairview Ford Sales Incorporated ("VENDOR") and the City of San Bernardino
4 ("CITY"or"San 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 specific Ford manufactured parts and
g services for the City's light and heavy vehicles; and
10 WHEREAS, the Vendor is the only authorized local dealer to provide said services to
11 City; and,
12 WHEREAS, this new Agreement supersedes all previous Agreements with the vendor;
13
NOW, THEREFORE, the parties hereto agree as follows:
14
15 1. SCOPE OF SERVICES.
16 For the remuneration stipulated in Section 2, San Bernardino hereby engages the
17 services of VENDOR to provide specific Ford manufactured parts and services for the City's
18 light and heavy vehicles. Pricing is dealer cost plus 10 percent. All pricing is based on the
19 current Ford Motor Company price list in effect at the time of purchase as per Attachment 1, a
20
copy of which is attached hereto as Attachment "1" and incorporated by this reference.
21
2. COMPENSATION AND EXPENSES.
22
23 a. For the services delineated above, the CITY, upon presentation of an invoice, shall
24 pay the VENDOR, up to the amount of$116,000.00 for specific Ford manufactured
25 parts and service for the City's light and heavy vehicles.
26 b. No other expenditures made by VENDOR shall be reimbursed by CITY.
27
28 Exhibit"A"
1
1 3. TERM; TERMINATION.
2 The term of this agreement shall be from August 17, 2009 through June 30, 2010, with
3 three (3) one-year extensions at the City's option. Option year one, if exercised, shall be
4 effective July 1, 2010 through June 30, 2011. Option year two, if exercised, shall be effective
5
July 1, 2011 through June 30, 2012. Option year three, if exercised, shall be effective July 1,
6
7 2012 through June 30, 2013.
8 This Agreement may be terminated at any time by thirty (30) days prior written notice
9 by either party. The terms of this Agreement shall remain in force unless amended by written
10 agreement of the parties executed on or before date of expiration of current term of the
11 agreement.
12
13 4. WARRANTY
14 Vendor expressly warrants that all products and services supplied to City by Vendor under
15 this Agreement shall conform to the specifications, drawings or other description upon which
16 this purchase is based, shall be fit and sufficient for the purpose intended, merchantable, of
17
good material and workmanship, free from defects and fee and clear of all liens or
18
19 encumbrances. Inspection, testing, acceptance or use of the goods by the City shall not affect
20 Vendor's obligations under this warranty, and such warranty shall survive inspection, testing,
21 acceptance and use. Vendor agrees to replace or correct promptly defects of any goods or
22 services not conforming to the foregoing warranty without expense to the City, when notified
23 of such non-conformity by City. If Vendor fails to correct the defects in or replace non-
24 conforming goods or services promptly, City may, after reasonable notice to Vendor, make
25
such corrections or effect cover, or cure, at Vendor's expense. "Reasonable notice" for
26
27 purposes of this section shall not be deemed to require more than 60 calendars days notice
28 Exhibit "A"
2
1 before commencement of efforts by the City to effect cover or a cure except upon written
2 agreement of the Parties.
3 5. INDEMNITY.
4 Vendor agre_es to and shall indemnify and hold the City, its elected officials, employees,
5
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
6
7 any kind and nature arising from bodily injury, including death, or property damage, based or
8 asserted upon any or alleged act or omission of Vendor, its employees, agents, or
9 subcontractors, relating to or in any way connected with the accomplishment of the work or .
10 performance of service under this Agreement, unless the bodily injury or property damage was
11 actually caused by the sole negligence of the City, its elected officials, employees, agents or
12
representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its
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14 own expense, including attorney's fees the City, its elected officials, employees, agents or
15 representatives from any and all legal actions based upon such actual or alleged acts or
16 omissions. Vendor hereby waives any and all rights to any types of express or implied
17 indemnity against the City, its elected officials, employees, agents or representatives, with
18 respect to third party claims against the Vendor relating to or in any way connected with the
19 accomplishment of the work or performance of services under this Agreement.
20
6. INSURANCE.
21
22 While not restricting or limiting the foregoing, during the term of this Agreement,
23 VENDOR shall maintain in effect policies of comprehensive public, general and automobile
24 liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory
25 worker's compensation coverage, and shall file copies of said policies with the CITY's Risk
26 Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an
27
additional named insured in each policy of insurance provided hereunder. The Certificate of
28 Exhibit"A"
3
1 Insurance famished to the CITY shall require the insurer to notify CITY of any change or
2 termination in the policy.
3 7. NON-DISCRIMINATION.
4 In the performance of this Agreement and in the hiring and recruitment of employees,
5 _
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
6
7 discrimination in employment of persons because of their race, religion, color, national origin,
8 ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
9 sexual orientation, or any other status protected by law.
10 8. INDEPENDENT CONTRACTOR.
11 VENDOR shall perform work tasks provided by this Agreement, but for all intents and
12
purposes VENDOR shall be an independent contractor and not an agent or employee of the
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CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
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15 Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
16 Compensation, and other payroll deductions for VENDOR and its officers, agents, and
17 employees, and all business licenses, if any are required, in connection with the services to be
18 performed hereunder.
19 9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
20
VENDOR warrants that it possesses or shall obtain, and maintain a business registration
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22 certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits,
23 qualifications, insurance and approval of whatever nature that are legally required of VENDOR
24 to practice its business or profession.
25 10. NOTICES.
26 Any notices to be given pursuant to this Agreement shall be deposited with the United
27
States Postal Service, postage prepaid and addressed as follows:
28 Exhibit"A"
4
1 TO THE CITY: Public Services Director
300 North"D" Street
2 San Bernardino, CA 92418
Telephone: (909) 384-5140
3
4 TO THE VENDOR: Fairview Ford Sales Incorporated
PO Box 5516
5 San Bernardino,CA 92412
Telephone: (909) 386-0281
6 Contact: Craig Stan Macklin
7 11. ATTORNEYS' FEES.
8 In the event that litigation is brought by any party in connection with this Agreement,
9
the prevailing party shall be entitled to recover from the opposing party all costs and expenses,
10
11 including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of
12 its rights or remedies hereunder or the enforcement of any of the terms, conditions or
13 provisions hereof. The costs, salary and expenses of the City. Attorney and members of his
14 office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys'
15 fees" for the purposes of this paragraph.
16 12. ASSIGNMENT.
17
18 VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
19 encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior
20 written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void
21 and shall constitute a breach of this Agreement and cause for the termination of this
22 Agreement. Regardless of CITY's consent, no subletting or assignment shall release VENDOR
23 of VENDOR's obligation to perform all other obligations to be performed by VENDOR
24
hereunder for the term of this Agreement.
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28 Exhibit "A"
5
1 13. VENUE.
2 The parties hereto agree that all actions or proceedings arising in connection with this
3 Agreement shall be tried and litigated either in the State courts located in the County of San
4 Bernardino, State of California or the U.S. District Court for the Central District of California,
5
Riverside Division. The aforementioned choice of venue is intended by the parties to be
6
7 mandatory and not permissive in nature.
8 14. GOVERNING LAW.
9 This Agreement shall be governed by the laws of the State of California.
10 15. SUCCESSORS AND ASSIGNS.
11 This Agreement shall be binding on and inure to the benefit of the parties to this Agreement
12
and their respective heirs, representatives, successors, and assigns.
13
16. HEADINGS.
14
15 The subject headings of the sections of this Agreement are included for the purposes of
16 convenience only and shall not affect the construction or the interpretation of any of its
17 provisions.
18 17. SEVERABILITY.
19 If any provision of this Agreement is determined by a court of competent jurisdiction to
20
be invalid or unenforceable for any reason, such determination shall not affect the validity or
21
22 enforceability of the remaining terms and provisions hereof or of the offending provision in any
23 other circumstance, and the remaining provisions of this Agreement shall remain in full force
24 and effect.
25 18. ENTIRE AGREEMENT; MODIFICATION.
26 This Agreement constitutes the entire agreement and the understanding between the
27
parties, and supercedes any prior agreements and understandings relating to the subject manner
28 Exhibit "A"
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1 of this Agreement. This Agreement may be modified or amended only by a written instrument
2 executed by all parties to this Agreement.
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28 Exhibit"A"
7
1 VENDOR SERVICE AGREEMENT
FAIRVIEW FORD SALES INCORPORATED
2
3 IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and
4 date set forth below.
5
6 Dated: 12009 VENDOR.
7 By:
8
9
Dated , 2009 CITY OF SAN BERNARDINO
10
By:
11 Charles E. McNeely, City Manager
12 Approved as to Form:
13
By:
14 James F. Penman, City Attorney
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28 Exhibit "A"
8
ATTACHMENT
Fairview Ford Sales, Inc.
P.O.Box 5516
SAN BERNARDINO, CALIF. 92412
Telephone(909) 884-9261
August 12, 2009
City of San Bernardino
182 South Sierra Way
San Bernardino, CA 92408
Re: Parts Pricing Structure for the City of San Bernardino
To Whom It May Concern:
Outlined below is your current pricing structure for parts purchased from Fairview Ford's parts
department.
As of January 2009, we changed your discount from list less 25% to dealer cost plus 10%in order to
comply with your request for an additional 5%discount. Previously you were receiving a 25% discount
off of Dealer List price.
As an example, a part purchased from our parts department with a list price of$16.00 would be
discounted as follows:
Ford List Dealer Cost List -25% Cost+10%
16.00 10.00 12.00 11.00
As shown in the example above your new discount schedule exceeds the additional 5% discount called
for in the request. Pricing is subject to change in accordance with the current Ford Motor Company
Price List. Ford Motor Company adjusts their price list on a quarterly basis. All pricing is based on the
current price list in effect at the time of purchase.
We value your business and we look forward to continuing to serving your Ford Lincoln/Mercury parts
needs. If you have any questions you may contact us at the phone number listed above. Or, if you
prefer, you may contact us via email at parts @fairviewford.com.
Thank You for your Business,
Sincerely,
Don Barman, Parts Manager
f"1 Fairview Ford Parts Department