HomeMy WebLinkAbout24-Public Services
c
c
c
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
Bernardino authorizing the execution of
an Agreement and increase to Contract
Purchase Order Number 08-070 by an
additional $75,000 to Applied LNG
Technologies pursuant to Section
3.04.010 B-3, ofthe Municipal Code for
the purchase of LNG fuel.
. Dept: Public Services
Date: January 22, 2008
Meeting Date: February 4, 2008
Synopsis of Previous Council Action
Recommended Motion:
Adopt Resolution.
Contact person Don Johnson, Fleet Manager
Phone:
5220
Supporting data attached:
Staff Report, Resolution and
Vendor Services Agreement
Ward: All
FUNDING REQUIREMENTS:
$75,000
635-341-5113
Motor Fuel &
Lubricants
Amount:
Source:
Finance:
Council Notes:
ilfi/M-
Agenda Item No. ~ 'I
C 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 increase to Contract Purchase Order Number 08-
070 by an additional $75,000 to Applied LNG Technologies pursuant to Section
3.04.010 B-3, of the Municipal Code for the purchase of LNG fuel.
Background:
Applied LNG Technologies is the company that supplied the first load of fuel to our new
LNG station (Station). Since Applied LNG Technologies is most familiar with our
Station, staff issued an interim contract purchase order in the amount of $24,900 to
purchase LNG fuel until staff could seek bids for a long-term contract. Unfortunately, it
is taking longer than anticipated to resolve the minor technical issues associated with
the construction and commissioning of the Station.
c
The most critical issue to resolve is the activation of the Station credit card reader. A
long-term fuel supply contract is not possible until this system is fully operational. Staff
expects this issue to be resolved in the next few weeks. Therefore, in order to allow the
City vehicles to fuel without interruption at our Station, staff is seeking approval of an
agreement and an increase to the purchase order amount by an additional $75,000 for
a total of $99,900. This increase will provide about eight (8) weeks of fuel and more
importantly, the additional time to address outstanding technical issues with Station
operation.
Financial Impact:
Funds for this purchase are available in the FY 07-08 Account No. 635-341-5113,
Motor Fuel & Lubricants.
Recommendation:
Adopt Resolution.
c
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
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
INCREASE TO CONTRACT PURCHASE ORDER NUMBER OS-070 BY AN
ADDITIONAL $75,000 TO APPLIED LNG TECHNOLOGIES PURSUANT TO
SECTION 3.04.010 B-3, OF THE MUNICIPAL CODE FOR THE PURCHASE OF LNG
FUEL.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
WHEREAS, the current Contract Purchase Order of $24,900 needs to be
increased to $99,900 in order to fuel the LNG station.
SECTION 1. The City Manager 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 Applied LNG Technologies, 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. The Mayor and Common Council hereby authorize the Director of
Finance or his/her designee to increase Contract Purchase Order No. 08-070 by an
additional $75,000 for a total of $99,900.
SECTION 3. 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".
SECTION 4. The Purchase Order shall reference this Resolution No. 2008-_
and shall read, "Applied LNG Technologies for the purchase of LNG fuel" and shall
incorporate the terms and conditions of the Agreement.
/II
-if: J. Cf
January 31, 2008
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 CONTRACT PURCHASE ORDER NUMBER 08~70 BY AN
ADDITIONAL $75,000 TO APPLIED LNG TECHNOLOGIES PURSUANT TO
SECTION 3.04.010 B-3, OF THE MUNICIPAL CODE FOR THE PURCHASE OF LNG
FUEL.
SECTION 5. The authorization to execute the above referenced Purchase
5
6
7 this resolution.
Order and agreement is rescinded if not issued within sixty (60) days of the passage of
8 1//
9
III
10
11
12 III
13 III
14
III
III
15
16 III
17
18
19 III
20 1//
21
22 III
23 1//
24
25
26 III
27 1//
28
III
1//
III
III
January 31. 2008
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
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
INCREASE TO CONTRACT PURCHASE ORDER NUMBER OS-070 BY AN
ADDITIONAL $75,000 TO APPLIED LNG TECHNOLOGIES PURSUANT TO
SECTION 3.04.010 B-3, OF THE MUNICIPAL CODE FOR THE PURCHASE OF LNG
FUEL.
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 thereof, held on the
day of
, 2008, by the
following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
BAXTER
BRINKER
DERRY
KELLEY
JOHNSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
,2008.
day of
Patrick J. Morris, Mayor
City of San Bernardino
Ap roved as to form:
,f~
es F. Penman, City Attorney
January 31, 2008
VENDOR SERVICE AGREEMENT
1
2 This Vendor Service Agreement is entered into this 4th day of February
3 2008, by and between Applied LNG Technologies ("VENDOR") and the City of San
4 Bernardino ("CITY" or "San Bernardino").
5
WITNESSETH:
6
7
8
9
10
11
12
13
14
15
16
17 VENDOR to provide LNG fuel.
18 2. COMPENSATION AND EXPENSES.
19 a. For the services delineated above, the CITY, upon presentation of an invoice, shall pay the
20
21
22
23 3.
24
25
26
27
28
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to purchase LNG fuel in order to continue to fuel its new
LNG station; and
WHEREAS, the City of San Bernardino did not solicit and accept quotes from vendors
for the purchase of LNG fuel since minor technical issues still need to be resolved before bid
specifications can be established.
NOW, THEREFORE, the parties hereto agree as follows:
1.
SCOPE OF SERVICES.
For the remuneration stipulated, San Bernardino hereby engages the services of
VENDOR up to the amount of $99,900 for the purchase of LNG fuel.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
TERM.
The term of this Agreement shall be for a period of one year.
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.
Exhibit "A"
Oli31/08
1 4. INDEMNITY.
2 CITY agrees to indemnifY and hold harmless VENDOR, its officers, agents and
3 volunteers from any and all claims, actions, or losses, damages and/or liability resulting from
4 CITY's negligent acts or omissions arising from the CITY's performance of its obligations
5
under the Agreement.
6
VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and
7
8 volunteers from any and all claim, actions, or losses, damages and/or liability resulting from
9 VENDOR's negligent acts or omissions arising from the VENDOR's performance of its
10 obligations under the agreement.
11 In the event the CITY and/or the VENDOR is found to be comparatively at fault for any
12 claim, action, loss, or damage which results from their respective obligations under the
13
Agreement, the CITY and/or VENDOR shall indemnify the other to the extent of this
14
comparative fault.
15
16 5. INSURANCE.
17
18
19
20
21
22
23
24
25
26 III
27
28
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
Insurance furnished to the CITY shall require the insurer to notifY CITY of any change or
termination in the policy.
Exhibit "A"
01/31/08
6. NON-DISCRIMINATION.
1
2 In the performance of this Agreement and in the hiring and recruitment of employees,
3 VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
4 discrimination in employment of persons because of their race, religion, color, national origin,
5
6
7
8
9 7. INDEPENDENT CONTRACTOR.
10
11
12
13
14
15
16 employees, and all business licenses, if any are required, in connection with the services to be
17 performed hereunder.
18 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
19
20
21
22
to practice its business or profession.
23
24 III
25 III
26 III
27
28
ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
sexual orientation, or any other status protected by law, except as permitted pursuant to Section
12940 of the California Government Code.
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
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 licenses, permits,
qualifications, insurance and approval of whatever nature that are legally required of VENDOR
Exhibit "A"
01131108
1
2
3
4
5
6
7
8
9
10
9. 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:
TO THE CITY:
City of San Bernardino
Ken Fischer, Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR:
Applied LNG Technologies
3001 Knox St.
Dallas, TX 75205
Telephone: (214) 697-0391
Attn: Kevin W. Markey
11 10. ATTORNEYS' FEES.
12 In the event that litigation is brought by any party in connection with this Agreement,
13
the prevailing party shall be entitled to recover from the opposing party all costs and expenses,
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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
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
Exhibit "A"
01/31/08
of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
1
2
3 12. VENUE.
4
5
6
7
8
9
10 13. GOVERNING LAW.
11
12
13
14
15
16 15. HEADINGS.
17
18
19 prOVlSlons.
20 16. ENTIRE AGREEMENT; MODIFICATION.
21
22
23
24
25
26 III
27 III
28
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
mandatory and not permissive in nature.
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.
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
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.
Exhibit "A"
01/31/08
1
2
3
4
5 Dated:
VENDORSER~CEAGREEMENT
APPLIED LNG TECHNOLOGIES
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
,2008
VENDOR
6
7
8 Dated
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
By:
Its:
,2008
CITY OF SAN BERNARDINO
By:
Fred Wilson, City Manager
Approved as to Form:
By:
James F. Penman, City Attorney
Exhibit "A"
01/31/08
VENDORSER~CEAGREEMENT
1
2
3 2008, by and between Applied LNG Technologies ("VENDOR") and the City of San
This Vendor Service Agreement is entered into this 4th day of February
4 Bernardino ("CITY" or "San Bernardino").
5 WITNESSETH:
6
7
8
9
10
11
12
13
14
15
16
17 VENDOR to provide LNG fuel.
18 2. COMPENSATION AND EXPENSES.
19 a. For the services delineated above, the CITY, upon presentation of an invoice, shall pay the
20 VENDOR up to the amount of $99,900 for the purchase of LNG fuel.
21
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
22
23
24
25
26
27
28
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to purchase LNG fuel in order to continue to fuel its new
LNG station; and
WHEREAS, the City of San Bernardino did not solicit and accept quotes from vendors
for the purchase of LNG fuel since minor technical issues still need to be resolved before bid
specifications can be established.
NOW, THEREFORE, the parties hereto agree as follows:
1.
SCOPE OF SERVICES.
For the remuneration stipulated, San. Bernardino hereby engages the services of
3.
TERM.
The term of this Agreement shall be for a period of one year.
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.
01/31/08
CITY agrees to indemniry 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 indemniry and hold harmless the CITY, its officers, agents, and
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
Insurance furnished to the CITY shall require the insurer to notiry CITY of any change or
termination in the policy.
01/31/08
6. NON-DISCRIMINATION.
1
2
3
4
5
6
7
8
9 7. INDEPENDENT CONTRACTOR.
10
11
12
13
14
15
16 employees, and all business licenses, if any are required, in connection with the services to be
t 7 performed hereunder.
18 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
19
20
21
22
to practice its business or profession.
23
24 III
25 III
2 III
27
28
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 or
sexual orientation, or any other status protected by law, except as permitted pursuant to Section
12940 ofthe California Government Code.
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
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 licenses, permits,
qualifications, insurance and approval of whatever nature that are legally required of VENDOR
01/31108
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
9. 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:
TO THE CITY:
City of San Bernardino
Ken Fischer, Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR:
Applied LNG Technologies
3001 Knox St.
Dallas, TX 75205
Telephone: (214) 697-0391
Attn: Kevin W. Markey
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
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
01/31/08
of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
1
2
3 12. VENUE.
4
5
6
7
8
9
10 13. GOVERNING LAW.
11
12
13
14
15
16 15. HEADINGS.
17
18
19
20 16. ENTIRE AGREEMENT; MODIFICATION.
21
22
23
24
25 executed by all parties to this Agreement.
26 III
27 III
28
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
mandatory and not permissive in nature.
This Agreement shall be governed by the laws ofthe 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.
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.
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
01/31/08
1
2
3
and date set forth below.
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
APPLIED LNG TECHNOLOGIES
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
Dated:
,2008
Dated
,2008
Approved as to Form:
VENDOR
By:
Its:
CITY OF SAN BERNARDINO
By:
Fred Wilson, City Manager
.f~
01/31/08