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HomeMy WebLinkAbout19-Public Services e e e CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Ken Fischer, Director Subject: Resolution authorizing an agreement and increase of an annual purchase order, with three (3) single year renewal options, to Arata Equipment Co. for the purchase of specific equipment parts and supplies for the Public Services Refuse fleet utilized by the Public Services Department Fleet Division. Dept: Public Services Date March 26, 2007 Meeting Date: April 16, 2007 Synopsis of Previous Council Action Reso 2005-172 June 20,2005 Approved annual PO with (3) renewal options Reso 2006-108 April 17,2006 Approved increase of $40,000 to annual PO Recommended Motion: Motion #1: Adopt resolution Motion #2: Authorize the Director of Finance to amend the FY 06/07 Fleet and Refuse budgets as discussed in this staff report to reflect the additional $ 00 in supplies and parts costs. Contact person Don Johnson, Fleet Manager Phone: 5220 Supporting data attached: Staff Report, Resolution, Agreement. Ward: All FUNDING REQUIREMENTS: Amount: $30,000 Source: 635-341-5111 Materials and Supplies Finance: Council Notes: IfjJl#}01 Agenda Item NO.1!1.--- tit tit tit 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 the execution of an agreement and increase to an annual purchase order, with three (3) single year renewal options, to Arata Equipment for the purchase of specific Labrie equipment parts and supplies utilized by the Public Services Fleet Division. Background: The City Fleet Division has thirty-four (34) Labrie refuse trucks, which includes twenty- eight (28) automated side loaders and six (6) front loaders. Arata Equipment is the authorized dealership that furnishes specific equipment parts and supplies for the Refuse fleet: therefore, it is considered a sole source supplier. An assessment by staff found no local vendors authorized to supply Labrie parts and supplies. During FY2005/2006 Annual Purchase Order No. 206061 was issued to Arata Equipment for $60,000. On April 17, 2006 the Mayor and Council approved an increase to the annual Purchase Order in the amount of $40,000 for a total of $100,000. Due to staffing and equipment shortages the Refuse trucks have been used longer hours and on weekends making their usage rate much higher than originally expected. This has contributed to additional wear on an already aging fleet of trucks. Also, price increases for specific Labrie Refuse body parts have contributed to the purchase order being depleted. The Fleet Division projects that an additional $30,000 is needed to cover costs for FY2006/2007. Therefore, an increase of $30,000 to the annual Purchase Order is requested, for a total amount not to exceed $130,000. Financial Impact: A budget amendment of $30,000 increasing Fleet's materials and supplies expenditure account is requested (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 as they are directly related to the Refuse operation, so the Refuse budget will also be amended accordingly. Recommendation: 1.) Adopt resolution; 2.) Authorize the Director of Finance to amend the FY 06-07 Fleet and Refuse budgets as discussed in this staff report to reflect the additional $30,000 in supplies and parts costs. e e e 1 2 3 4 5 6 7 8 9 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000, WITH THREE (3) SINGLE YEAR RENEWAL OPTIONS, TO ARATA EQUIPMENT COMPANY FOR THE PURCHASE OF SPECIFIC LABRIE EQUIPMENT PARTS AND SUPPLIES UTILIZED BY THE PUBLIC SERVICES FLEET DIVISION. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor 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 10 Arata Equipment Co., a copy of which is attached hereto, marked Exhibit "A" and 11 12 13 incorporated herein by reference as fully as though set forth at length. SECTION 2. This purchase is exempt from the formal contract procedures of 14 15 16 17 18 Section 3.04.010 of the Municipal Code, pursuant to Section 3.04.010. B.3 of said Code "Purchases approved by the Mayor and Common Council". SECTION 3. That Arata Equipment Co. furnishes specific Labrie equipment parts and supplies for the public services refuse fleet utilized by the public services department fleet division. Pursuant to this determination, the Purchasing Manager is 19 20 21 22 23 24 25 26 conditions of the Contract. 27 28 hereby authorized to issue an increase of $30,000 to the annual purchase order, to said Arata Equipment Co., for a total amount not to exceed $130,000 beginning in Fiscal Year 2006/2007. SECTION 4. The Purchase Order shall reference this Resolution No. 2007- and shall read, "Authorized Labrie Front and Side loader parts and supplies" P.O. No. 207061 not to exceed $130,000 and shall incorporate the terms and No,lq Lf/llPJD7. April 10, 2007 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF e 2 SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000, 3 WITH THREE (3) SINGLE YEAR RENEWAL OPTIONS, TO ARATA EQUIPMENT COMPANY FOR THE PURCHASE OF SPECIFIC LABRIE EQUIPMENT PARTS 4 AND SUPPLIES UTILIZED BY THE PUBLIC SERVICES FLEET DIVISION. 5 SECTION 5. The Agreement shall reference this Resolution No. 2007 6 and shall read, "Authorized Labrie Front and Side loader parts and supplies" 7 Agreement not to exceed $30,000.00 and shall incorporate the terms and conditions of 8 9 the agreement. 10 SECTION 6. The authorization to execute the above referenced Agreement and 11 Purchase Order is rescinded if not issued within sixty (60) days of the passage of this 12 resolution. 13 11/ tit 14 11/ 15 11/ 16 11/ 17 18 11/ 19 11/ 20 11/ 21 11/ 22 11/ 23 11/ 24 25 11/ 26 11/ e 27 28 April 10. 2007 . e e e 1 2 3 4 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $30,000, WITH THREE (3) SINGLE YEAR RENEWAL OPTIONS, TO ARATA EQUIPMENT COMPANY FOR THE PURCHASE OF SPECIFIC LABRIE EQUIPMENT PARTS AND SUPPLIES UTILIZED BY THE PUBLIC SERVICES FLEET DIVISION. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 7 8 9 Council Members: 10 Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2007, by the following vote, to wit: AYES NAYS ABSTAIN ABSENT 11 12 13 14 15 16 17 18 19 ESTRADA BAXTER BRINKER DERRY KELLEY JOHNSON MCCAMMACK Rachel G. Clark, City Clerk 20 21 22 23 24 App ved as to Form: 25 <~ 26 es F. Penman, City Attorney 27 28 The foregoing resolution is ,2007. hereby approved this day of Patrick J. Morris, Mayor City of San Bernardino April 1 O. 2007 e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VENDOR SERVICE AGREEMENT This Vendor Service Agreement is entered into this 16th day of April 2007, by and between Arata Equipment Co. ("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 contract for Authorized Labrie Front and Side loader parts and supplies; and WHEREAS, the City of San Bernardino did solicit and accept quotes from available vendors for Authorized Labrie Front and Side loader parts and supplies. 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 this purchase agreement. 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 $30,000.00 for Authorized Labrie Front and Side loader parts and supplies. b. No other expenditures made by VENDOR shall be reimbursed by CITY, 3. TERM; SEVERABILITY. The term of this Agreement shall be for a period of one year. e tit e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 mutually amended. The duration of this Agreement may be extended with the written consent of both parties. 4. INDEMNITY. CITY agrees to indemnify and hold harmless VENDOR, its officers, agents and volunteers from any and all claims, actions, or losses, damages aillllor liability resulting from CITY's negligent acts or omissions arising from the CITY's performance of its obligations under the Agreement. VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and volunteers from any and all claim, actions, or losses, damages and/or liability resulting from VENDOR's negligent acts or omissions arising from the VENDOR's performance of its obligations under the Agreement. In the event the CITY and/or the VENDOR i~ found to be comparatively at fault for any claim, action, loss, or damage which results from their respective obligations under the Agreement, the CITY and/or VENDOR shall indemnify the other to. the extent of this comparative fault. 5. INSURANCE. While not restricting or limiting the forgoing, 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 e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Insurance furnished to the CITY shall require the insurer to notify CITY of any change or termination in the policy. 6. NON-DISCRIMINATION. In the performance of this Agreement and in the hiring and recruitment of employees, VENDOR shall not discriminate on the basis of race, creed, color, religion, sex, physical handicap, ethnic background or country of origin. 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 license, 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 license, permits, qualifications, insurance and approval of whatever nature that are legally required of VENDOR to practice its business or profession. III III III III e e e 1 9. 2 3 NOTICES. Any notices to be given pursuant to this Agreement shaH be deposited with the United States Postal Service, postage prepaid and addressed as foHows: 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TO THE CITY: Public Services Director 300 North "D" Street San Bernardino, CA 92418 Telephone: (909) 384-5140 TO THE VENDOR: Arata Equipment Co. 1160 Industrial Dr. #12 San Carlos, CA 94070 Telephone: (650) 508-1010 10. ATTORNEYS' FEES In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shaH be entitled to recover from the opposing party aH 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 shaH be considered as "attorneys' fees" for the purposes of this paragraph. 11. ASSIGNMENT. VENDOR shaH not voluntarily or by operation of law assign, transfer, sublet or encumber aH or any part of the VENDOR's interest in this Agreement without CITY's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shaH be void and shaH constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of CITY's consent, no subletting or assignment shaH release VENDOR of VENDOR's obligation to perform aH other obligations to be performed by VENDOR hereunder for the term of this Agreement. e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12. 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 the mandatory and not permissive in nature. 13. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 14. 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. 15. HEADINGS. The subject 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. 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. III III III III e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Dated: ,2007 VENDOR. By: Its: Dated ,2007 CITY OF SAN BERNARDINO By: Patrick J. Morris, Mayor Approved as to Form: