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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Ken Fischer, Director
Subject: Resolution authorizing the
execution of an agreement amendment
and increase to an Annual Purchase
Order to McCray Enterprises of San
Bernardino for medium and heavy duty
equipment and truck repair, including
purchase of various related parts.
Dept: Public Services
Date March 20, 2008
Meeting Date: April 7, 2008
Synopsis of Previous Council Action
Reso 2001-2 January 8,2001 Annual PO with (2) year renewal options
Reso 2004-221 July 6, 2004 Annual PO with (2) year renewal options
Reso 2007-122 April 16,2007 Increase Annual PO $32,000
Reso 2007-353 August 20,2007 Annual PO with (2) year renewal options
Recommended Motion:
#1: Adopt Resolution.
#2: Authorize the Director of Finance to amend the FY 07/08 Fleet and IWM budgets
as discussed in this staff report to reflect the additional $30,000 in service and
p,rts 00,," Ji:J..-.7 ~
, ignature
Contact person Don Johnson, Fleet Manager
Phone: 5220
Supporting data attached: Staff report,
Resolution, Amendment No.1 and
Attachment "1"
Ward: All
FUNDING REQUIREMENTS:
Amount:
$30,000
Source: FY 07-08
635-341-5173
(Outside Vehicle Maintenance)
Finance:
Council Notes:
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Agenda Item No. 1(,
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
A resolution authorizing the execution of an agreement amendment and increase to an
Annual Purchase Order to McCray Enterprises of San Bernardino for medium and heavy-
duty equipment and truck repair including purchase of various related parts.
Background: .
McCray Enterprises of San Bernardino was awarded a selected source Annual Purchase
Order on August 20,2007, with two single year renewal options, in the amount of $75,000
for FY 2007/2008. The Public Services Department, Fleet Division staff is requesting an
increase of $30,000 to the purchase order, for a total amount not-to-exceed $105,000 for
the remainder FY 2007/2008. The requested increase is needed due to staff shortages in
the Fleet Division, the addition of (8) eight Refuse trucks, increased usage of the already
aging Refuse trucks (longer hours and weekends) as well as compliance with the CHP
mandated BIT program. These factors have contributed to the purchase order funds being
depleted.
McCray Enterprises is an independent heavy equipment repair facility that has provided
1'- outstanding support to the Fleet Division for over twelve (12) years. Services provided have
\.- been of quality workmanship, cost effective, and timely. McCray Enterprises is located in
San Bernardino and provides top priority of equipment return.
Financial Impact:
In order to fund this purchase order increase, a budget amendment of $30,000 increasing
Fleet's outside vehicle maintenance account (635-341-5173) is requested. 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 IWM Division, as they are directly related to the operation, so the IWM Division
budget will also be amended accordingly.
Recommendation:
Motion #1 : Adopt Resolution.
Motion #2: Authorize the Director of Finance to amend the FY 07/08 Fleet and IWM
Division budgets as discussed in this staff report to reflect the additional
$30,000 in service and parts costs.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
AMENDMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER TO MCCRAY
ENTERPRISES OF SAN BERNARDINO FOR MEDIUM AND HEAVY-DUTY
EQUIPMENT AND TRUCK REPAIR, INCLUDING PURCHASE OF VARIOUS
RELATED PARTS FOR THE CITY'S FLEET.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager of the City of San Bernardino is hereby
authorized to execute on behalf of said City an Amendment No. 1 to an Agreement
between the City of San Bernardino and McCray Enterprises, 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".
SECTION 3. That McCray Enterprises of San Bernardino provides repair
services for medium and heavy-duty trucks and equipment to be utilized by the
Fleet Division. Pursuant to this determination, the Director of Finance or hislher
designee is hereby authorized to issue an increase of $30,000 to the annual purchase
order, to said McCray Enterprises, for a total amount not-to-exceed $105,000 in Fiscal
Year 2007/2008.
SECTION 4. The Purchase Order shall reference this Resolution No. 2008-_
and shall read, "Medium and heavy-duty equipment and truck repair including
purchase of various related parts, P.O. not to exceed $105,000" and shall incorporate
C. 27 the terms and conditions of the Agreement.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
AMENDMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER TO MCCRAY
ENTERPRISES OF SAN BERNARDINO FOR MEDIUM AND HEAVY-DUTY
EQUIPMENT AND TRUCK REPAIR, INCLUDING PURCHASE OF VARIOUS
RELATED PARTS FOR THE CITY'S FLEET.
SECTION 5. The authorization to execute the above referenced Purchase
Order and Amendment No. 1 is rescinded if not issued within 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
AMENDMENT AND INCREASE TO AN ANNUAL PURCHASE ORDER TO MCCRAY
ENTERPRISES OF SAN BERNARDINO FOR MEDIUM AND HEAVY-DUTY
EQUIPMENT AND TRUCK REPAIR, INCLUDING PURCHASE OF VARIOUS
RELATED PARTS FOR THE CITY'S FLEET.
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8 following vote, to wit:
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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
Council Members:
AYES
NAYS
ABSTAIN
ABSENT
ESTRADA
BAXTER
BRINKER
DERRY
KELLEY
JOHNSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is
,2008.
hereby approved this
day of
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to form:
mes F. Penman
ity Attorney
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AMENDMENT NO. 1 TO VENDOR SERVICE AGREEMENT
This Agreement is entered into this 7th day of April 2008, by and between
McCray Enterprises ("VENDOR") and the City of San Bernardino ("CITY" or
"San Bernardino").
RECITALS
A. On August 20, 2007, McCray Enterprises and the City of San Bernardino entered
into a Vendor Services Agreement for medium and heavy-duty equipment and
truck repair including purchase of various related parts for a not-to-exceed
amount of $75,000 a copy of which is attached hereto as Attachment "I" and
incorporated by this reference.
B. The CITY and VENDOR now desire to alter the Agreement to increase the
amount of the Agreement by $30,000 for a total not-to-exceed purchase price of
$105,000 annually.
AGREEMENT
In consideration of the mutual promises contained in the Vendor Services
Agreement, the parties agree as follows:
The total Agreement price shall be increased by $30,000, to a not-to-exceed
amount of$105,000 annually.
The term of this Agreement shall be for a period of one-year with two single
year renewals at the City's option.
The other provisions of the written contract are reaffirmed as originally stated.
C 1 AMENDMENT NO.1 TO VENDOR SERVICE AGREEMENT
2 MCCRAY ENTERPRISES
3 IN WITNESS THEREOF, the parties hereto have executed the Agreement on the day
~ and date first above written.
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6 Dated: ,2008 MCCRAY ENTERPRISES
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By:
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11 Dated: ,2008 CITY OF SAN BERNARDINO
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C By: Fred Wilson, City Manager
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15 ATTEST:
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19 Rachel Clark, City Clerk
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22 Approved as to form:
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24 James F. Penman
City Attorney
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2007-353
ATIACHMENT 1
VENDOR SERVICE AGREEMENT
This Vendor Service Agreement is entered into this 20th day of August
2007, by and between McCray Enterprises ("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 medium and heavy-duty equipment and
truck repair including purchase of various related parts; and
WHEREAS, the City of San Bernardino did solicit and receive quotes from available
vendors for medium and heavy-duty equipment and truck repair including purchase of various
related parts.
NOW, mEREFORE, 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 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 total amount of $75,000.00 for medium and heavy-duty
equipment and truck repair, including purchase of various related parts.
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 with two single year
renewals at the City's option.
ATTACHMENT "1"
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2007-353
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 arising from the performance of 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
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2007-353
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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 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 of the California Government Code.
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 licenses, 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.
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2007-353
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:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR:
McCray Enterprises
24268 5th Street
San Bernardino, CA 92410
Telephone: (909) 381-1964
Attn: Rick McCray
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 connection with that litigation 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
of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
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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
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.
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2007-353
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
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and date set forth below.
Dated: Q.,-,!l 'b ,2007
Dated t-::?~ -i3 ,2007
Approved as to Form:
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VENDOR.
By:~~
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By: