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HomeMy WebLinkAbout23-Public Services e e e CITY OF SAN BERNARDINO - REQUEST FOR COUNCil ACTION From: Ken Fischer, Director Subject: A resolution authorizing an agreement and increase to an annual purchase order, to Tec of California 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 23, 2007 Meeting Date: April 16, 2007 Synopsis of Previous Council Action Reso 2003-50 Feb.18, 2003 Reso 2004-64 March 1, 2004 Increase PO to $35,000 Increase PO to $67,500 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 $10,000 in parts and supplies costs. Z:;'2~p7 _ 8(g natu re Contact person Don Johnson, Fleet Manager Phone: 5220 Supporting data attached: Staff Report, Resolution, Agreement. Ward: All FUNDING REQUIREMENTS: Amount: $10,000 Source: 635-341-5111 Materials and Supplies Finance: Council Notes: LJ /1/'/fl7 Agenda Item No. 2.3 e e e CITY OF SAN BERNARDINO. REQUEST FOR COUNCIL ACTION Staff Report Subject: A resolution authorizing an agreement and increase to an annual purchase order, to Tec of Califomia for the purchase of specific equipment parts and supplies for the Public Services Refuse fleet utilized by the Public Services Department Fleet Division. Background: During the FY2001/2002 an Annual Purchase Order was issued to ROO Truck Center of Riverside in the amount of $24,500; and in 2002 the company name was changed to Tec of California. Tec of California is the local authorized Volvo White/GMC dealership that furnishes specific equipment parts and supplies for the Refuse fleet; therefore, is considered a sole source supplier. An assessment by staff found no local vendors authorized to supply Volvo White/GMC parts and supplies. On February 18, 2003 the first increase to this annual purchase order was approved by the Mayor and Council with Resolution 2003-50 in the amount of $10,000 for a total amount of $34,500. On March 1, 2004 the Mayor and Council approved Resolution 2004-64 authorizing an increase of $33,000 to the annual Purchase Order for a total amount of $67,500. T ec of California is the nearest authorized dealership for Volvo White/GMC parts. Diversified Truck Center is the nearest authorized dealership for Autocar parts. The Volvo WX64 model chassis makes up the majority of the City's refuse fleet. This chassis model has been sold by Volvo Corporate to Autocar. All of the City's new refuse truck purchases will have Autocar chassis. All of the City's old or existing refuse trucks will still have the Volvo (Tec) chassis. Some of the parts from the new Autocar chassis and the old Volvo (Tec) chassis will be interchangeable and some will not. The City will need to purchase parts for both chassis. During the transition period Autocar and Volvo (Tec) parts will be available from both dealers. For this reason two Purchase orders are needed and the previous amount was split between the two vendors. The Fleet Division projects that an additional $10,000 is needed to cover costs for the remainder of the Fiscal Year 2006/2007. This is due to staffing shortages in the Refuse Division, causing longer hours and weekend usage of the already aging fleet of trucks. Therefore, an increase of $10,000 to the annual Purchase Order is requested, for a total amount not to exceed $34,900. Financial Impact: A budget amendment of $1 0,000 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, so the Refuse budget will be amended accordingly. e e e Recommendation: 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 $10,000 in parts and supplies costs. e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $10,000.00, TO TEC OF CALIFORNIA FOR THE PURCHASE OF SPECIFIC EQUIPMENT PARTS AND SUPPLIES FOR THE PUBLIC SERVICES REFUSE FLEET UTILIZED BY THE PUBLIC SERVICES DEPARTMENT 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 Tec of California Inc., a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. SECTION 2. This purchase is exempt from the formal contract procedures of 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". 16 SECTION 3. That Tec of California Inc. furnishes specific equipment parts 17 and supplies for the public services refuse fleet utilized by the public services 18 department fleet division. Pursuant to this determination, the Purchasing Manager is 19 20 21 22 23 hereby authorized to issue an increase of $1 0,000 to the annual purchase order, to said Tec of California, Inc., for a total amount not to exceed $34,900 beginning in Fiscal Year 2006/2007. SECTION 4. The Purchase Order shall reference this Resolution No. 2007- 24 and shall read, "Authorized Volvo/GMC dealership parts and supplies" P.O. No. 25 207097 not to exceed $34,900 and shall incorporate the terms and conditions of the 26 Contract. 27 28 ND.D Lf/l(p/Dl April 11 , 2007 , e e e 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AGREEMENT AND INCREASE TO AN 2 ANNUAL PURCHASE ORDER IN THE AMOUNT OF $10,000.00, TO TEC OF 3 CALIFORNIA FOR THE PURCHASE OF SPECIFIC EQUIPMENT PARTS AND SUPPLIES FOR THE PUBLIC SERVICES REFUSE FLEET UTILIZED BY THE 4 PUBLIC SERVICES DEPARTMENT FLEET DIVISION. 5 6 SECTION 6. The authorization to execute the above referenced Agreement and 7 Purchase Order is rescinded if not issued within sixty (60) days of the passage of this 8 resolution. 9 10 1/1 11 1/1 12 13 1/1 14 1/1 15 1/1 16 1/1 17 1/1 18 1/1 19 20 21 22 1/1 23 1/1 24 1/1 25 1/1 1/1 1/1 26 27 28 April 11 , 2007 e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AGREEMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF $10,000.00, TO TEC OF CALIFORNIA FOR THE PURCHASE OF SPECIFIC EQUIPMENT PARTS AND SUPPLIES FOR THE PUBLIC SERVICES REFUSE FLEET UTILIZED BY THE PUBLIC SERVICES DEPARTMENT FLEET DIVISION. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a day of , 2007, by the meeting thereof, held on the following vote, to wit: Council Members: ABSTAIN ABSENT AYES NAYS ESTRADA BAXTER BRINKER DERRY KELLEY JOHNSON 18 MCCAMMACK 19 20 Rachel G. Clark, City Clerk 21 22 23 24 25 26 27 28 The foregoing resolution is hereby approved this ,2007. day of Patrick J. Morris, Mayor City of San Bernardino oved as to Form: t h..-. es F. Penman, City Attorney April 11. 2007 J 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 Tec of California Inc. ("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 Volvo/GMC dealership parts and supplies; and WHEREAS, the City of San Bernardino did solicit and accept quotes from available vendors for Authorized Volvo/GMC dealership 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 $10,000.00 for Authorized Volvo/GMC dealership 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 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 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 and/or 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 is 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 24 25 26 27 28 1 9. 2 3 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: 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 TO THE CITY: Public Services Director 300 North "D" Street San Bernardino, CA 92418 Telephone: (909) 384-5140 TO THE VENDOR: Tec of California Inc. 14085 Valley Blvd. Fontana, CA. 92335-5288 Telephone: (909) 349-0200 10. 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. 11. 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 23 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 of VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunder for the term of this Agreement. I 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 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 e e 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: