HomeMy WebLinkAbout05.V- Public Works RESOLUTION (ID #3331) DOC ID: 3331 D
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Purchase Order
From: Tony Frossard M/CC Meeting Date: 08/04/2014
Prepared by: Adrienne Loa,
Dept: Public Works Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of a Vendor Service Agreement and Issuance of an Annual Purchase Order Not to
Exceed $35,000 with Two One-Year Extensions at the City's Option to Cummins Pacific for
Service and Parts for Cummins Engines. (#3331)
Current Business Registration Certificate: No
Financial Impact:
Account Budgeted Amount: $479,900
Account Description: 635-400-0100-5173 " Outside Vehicle Maintenance"
Balance as of July 23, 2014: $354,705
Amount to be Encumbered: $20,000
Balance after approval of this item: $334,705
Account Budgeted Amount: $1,232,200
Account Description: 635-400-0100-5111 "Materials and Supplies"
Balance as of July 23, 2014: $287,000
Amount to be Encumbered: $15,000
Balance after approval of this item: $272,000
Please note this balance does not indicate available funding. It does not include non-encumbered
reccurring expenses or expenses incurred, but not yet processed.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
None.
Background:
The Fleet Management Division is responsible for the maintenance of the heavy truck fleets. The
majority of Integrated Waste Management (IWM) and Operations & Maintenance (O&M)
Divisions heavy truck fleets are powered by Commercial Alternative Fueled Cummings engines.
The City is required by South Coast Air Quality Management District Rule 1193 to reduce
pollutants from the refuse fleet and other trucks by the purchase of alternative-fuel vehicles. The
IWM heavy truck fleet is used for removing residential, commercial and construction refuse.
The O&M heavy truck fleet is utilized for sewer cleaning and the repair of City streets. As the
heavy truck fleets age more parts and repairs are necessary to keep the trucks on the road.
i Tndated: 7/28/2014 by Jolena E.Grider D I Packet Pg. 271
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3331
The Fleet Management Division has been doing business with Cummins Pacific since 1999.
Fleet Management Division has classified Cummins Pacific as a Sole Source Vendor because
Cummins is the only manufacturer of commercial alternative fuel engines and Cummins Pacific
is a local distributor of the Cummins engines, parts and service. Staff recommends that the
Mayor and Common Council authorize the execution of a vendor service agreement and issuance
of an Annual Purchase Order in the amount of$35,000 with two (2) one-year extensions at the
City's option to Cummins Pacific for Cummins engines,parts and service.
City Attorney Review:
Supporting Documents:
reso 3331 (PDF)
agrmt 3331 (PDF)
Updated: 7/28/2014 byJolena E.Grider D Packet Pg. 272
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A VENDOR
3 SERVICE AGREEMENT AND ISSUANCE OF AN ANNUAL PURCHASE ORDER
4 NOT TO EXCEED $35,000 WITH TWO ONE-YEAR EXTENSIONS AT THE CITY'S
OPTION TO CUMMINS PACIFIC FOR SERVICE AND PARTS FOR CUMMINS
5 ENGINES.
6 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
7 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
8 SECTION 1. The City Manager is hereby authorized and directed to execute on
9 behalf of said City an Agreement between the City of San Bernardino and Cummins Pacific, a v
10 copy of which is attached hereto marked Exhibit "A" and incorporated herein by reference as in
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11 fully as though set forth at length.
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SECTION 2. This purchase is exempt from the formal contract procedure of Sections c
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14 3.04.010 of the Municipal Code, pursuant to Sections 3.04.010 B.3 of said Code "Purchases
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15 approved by the Mayor and Common Council." M
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16 SECTION 3. That pursuant to this determination, the Director of Finance or designee M
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17 is hereby authorized to issue an Annual Purchase Order to Cummins Pacific in the amount not
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to exceed $35,000 with two (2) one-year extensions at the City's option.
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20 SECTION 4. The Purchase Order shall reference this Resolution Number and shall w
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21 read, "Cummins Pacific for Cummins engine repair service and parts. Agreement not to
22 exceed $35,000" and shall incorporate the terms and conditions of the Agreement.
23 SECTION 5. The authorization to execute the above-referenced Agreement is
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rescinded if it is not executed by both parties within sixty (60) days of the passage of this
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Resolution.
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FPacket Pg.273
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
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OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A VENDOR
2 SERVICE AGREEMENT AND ISSUANCE OF AN ANNUAL PURCHASE ORDER
NOT TO EXCEED $35,000 WITH TWO ONE-YEAR EXTENSIONS AT THE CITY'S
3 OPTION TO CUMMINS PACIFIC FOR SERVICE AND PARTS FOR CUMMINS
4 ENGINES.
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a meeting
7 thereof, held on the_ day of , 2014, by the following vote,to wit:
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9 Council Members: AYES NAYS ABSTAIN ABSENT
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10 MARQUEZ
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11 BARRIOS N
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12 VALDIVIA
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SHORETT E
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16 JOHNSON
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17 MULV I IILL 0
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Georgeann Hanna, City Clerk
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The foregoing resolution is hereby approved this __ day of _ _, 2014.
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23 R. Carey Davis, Mayor
City of San Bernardino
24 Approved as to form:
25 Gary D. Saenz, City Attorney
26 By:
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VENDOR SERVICE AGREEMENT BETWEEEN THE CITY OF SAN BERNARDINO
AND CUMMINS PACIFIC FOR SERVICE AND PARTS FOR CUMMINS ENGINES
This Vendor Service Agreement is entered into this day of 2014, by an(
between Cummins Pacific ("VENDOR") and the City of San Bernardino ("CITY" or "Sat
Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageou,
and in the best interest of the CITY to contract for Cummins engine repairs including purchasf
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of various related parts; and ?
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WHEREAS, the Vendor is the only manufacturer of commercial alternative fue: 06
engines and are a distributor of Cummins engines , parts and service; and, a
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WHEREAS, this new Agreement supersedes all previous Agreements with the E
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VENDOR;
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NOW, THEREFORE,the parties hereto agree as follows:
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1. SCOPE OF SERVICES.
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For the remuneration stipulated in Section 2,the City of San Bernardino hereby engages M
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the services of VENDOR to provide repairs, services on Cummins engines and supply certified E
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Cummins parts. r
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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$35,000 for specific Cummins manufactured
parts and service for the City's commercial alternative fuel engines.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
Exhibit"A"
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3. TERM; TERIVIINATION.
f this agreement shall be from August 8, 2014 through June 30, 2015, wit]
The term n g g g
two one-year extensions at the City's option. Option year one, if exercised, shall be effective
July 1, 2015 through June 30, 2016. Option year two, if exercised, shall be effective July 1
2016 through June 30,2017.
This Agreement may be terminated at any time by thirty (30) days prior written noticf
by either party. The terms of this Agreement shall remain in force unless amended by writtei
agreement of the parties executed on or before date of expiration of current term of the
agreement. cn
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4. WARRANTY a
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Vendor expressly warrants that all products and services supplied to City by Vendo: 'E
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under this Agreement shall conform to the specifications, drawings or other description upon
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which this purchase is based, shall be fit and sufficient for the purpose intended, merchantable M
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of good material and workmanship, free from defects and fee and clear of all liens o
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encumbrances. Inspection, testing, acceptance or use of the goods by the City shall not affec m
Vendor's obligations under this warranty, and such warranty shall survive inspection, testing
acceptance and use. Vendor agrees to replace or correct promptly defects of any goods o r
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services not conforming to the foregoing warranty without expense to the City, when notifies
of such non-conformity by City. If Vendor fails to correct the defects in or replace non
conforming goods or services promptly, City may, after reasonable notice to Vendor, makt
such corrections or effect cover, or cure, at Vendor's expense. "Reasonable notice" fo:
purposes of this section shall not be deemed to require more than 60 calendars days noticf
Exhibit"A"
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Packet Pg. 276
before commencement of efforts by the City to effect cover or a cure except upon written
agreement of the Parties.
5. 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 o
any kind and nature arising from bodily injury, including death, or property damage, based o:
asserted upon any or alleged act or omission of Vendor, its employees, agents, o:
subcontractors, relating to or in any way connected with the accomplishment of the work o
performance of service under this Agreement, unless the bodily injury or property damage wa
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actually caused by the sole negligence of the City, its elected officials, employees, agents o
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representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at it:
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own expense, including attorney's fees the City, its elected officials, employees, agents o v
on such actual or alleged acts o M
representatives from any and all legal actions based up g M
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omissions. Vendor hereby waives any and all rights to any types of express or implies M
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indemnity against the City, its elected officials, employees, agents or representatives, witl E
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respect to third party claims against the Vendor relating to or in any way connected with th{
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accomplishment of the work or performance of services under this Agreement.
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6. 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 automobil
liability insurance, in the amount of $1,000,000.00 combined single limit, and statutor:
worker's compensation coverage, and shall file copies of said policies with the CITY's Ris'
Manager prior to undertaking any work under this Agreement. CITY shall be set forth as a
f insurance provided hereunder. The Certificate e
additional named insured m each policy o p
Exhibit"A"
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Packet Pg.277
Insurance furnished to the CITY shall require the insurer to notify CITY of any change ol.
termination in the policy.
7. 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 ox
sexual orientation, or any other status protected by law. v
8. INDEPENDENT CONTRACTOR. cn
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VENDOR shall perform work tasks provided by this Agreement, but for all intents and
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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 v
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Income Tax, Social Security, State Disability Insurance Compensation, Unemployment M
Compensation, and other payroll deductions for VENDOR and its officers, agents, and
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employees, and all business licenses, if any are required, in connection with the services to be
performed hereunder. c
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9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain, and maintain a business registration Q
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.
10. 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:
Exhibit"A"
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TO THE CITY: Public Works Director
300 North"D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR: Cummins Pacific
3061 S. Riverside
Bloomington CA 92316
Telephone: (909) 877-0433
Contact:
11. ATTORNEYS' FEES.
In the event that litigation is brought by any party in connection with this Agreement
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the prevailing party shall be entitled to recover from the opposing party all costs and expenses
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including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any o «s
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its rights or remedies hereunder or the enforcement of any of the terms, conditions o a
provisions hereof. The costs, salary and expenses of the City Attorney and members of hi E
office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys
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fees" for the purposes of this paragraph.
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12. ASSIGNMENT.
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VENDOR, shall not voluntarily or by operation of law assign, transfer, sublet o
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encumber all or any part of the VENDOR's interest in this Agreement without CITY's prio E
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written consent. Any attempted assignment, transfer, subletting or encumbrance shall be voi, Q
and shall constitute a breach of this Agreement and cause for the termination of thi
Agreement. Regardless of CITY's consent, no subletting or assignment shall release VENDOl
of VENDOR's obligation to perform all other obligations to be performed by VENDOI
hereunder for the term of this Agreement.
Exhibit"A"
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13. VENUE.
agree that all actions or proceedings arising in connection with this
The parties hereto agr p g g
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.
14. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
15. SUCCESSORS AND ASSIGNS. in
This Agreement shall be binding on and inure to the benefit of the parties to this
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Agreement and their respective heirs,representatives, successors, and assigns. r-
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16. HEADINGS. v
The subject headings of the sections of this Agreement are included for the purposes of M
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convenience only and shall not affect the construction or the interpretation of any of its M
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provisions. E
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17. SEVERABILITY.
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If any provision of this Agreement is determined by a court of competent jurisdiction to
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be invalid or unenforceable for any reason, such determination shall not affect the validity or
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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.
18. ENTIRE AGREEMENT; MODIFICATION.
This Agreement constitutes the entire agreement and the understanding between the
s relating to the subject manner
parties, and supersedes any poor agreements and understanding g }
Exhibit"A"
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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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Exhibit "A"
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VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND CUMMINS PACIFIC FOR SERVICE AND PARTS FOR CUMMINS ENGINES
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: , 2014 CUMMINS PACIFIC
By:
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Dated ,2014 CITY OF SAN BERNARDINO 2
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By: 06
Alien J. Parker, City Manager L
Approved as to Form: °'
Gary D. Saenz, City Attorney
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By:
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Exhibit"A."
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