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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Date: July 14, 2009
Subject: Resolution of the Mayor and
Common Council of the City of San
Bernardino authorizing the execution of
an Agreement and the issuance of an
Annual Purchase Order in the amount of
$95,000 with two (2) one-year
extensions at the City's option to Alexis
Oil Company for automotive, heavy
truck and heavy equipment lubricants to
be utilized by the Public Services
Department, Fleet Division.
From: Ken Fischer, Director
Dept: Public Services
Meeting Date: July 20, 2009
Synopsis of Previous Council Action:
Recommended Motion:
Adopt Resolution.
Contact person: Don Johnson, Fleet Manager
Phone:
5220
Supporting data attached:
Staff Report, Resolution,
Vendor Service Agreement and
Bid Summary.
Ward:
All
Source:
$95,000
635-341-5113
(Motor Fuel &
Lubricants)
FUNDING REQUIREMENTS:
Amount:
Council Notes:
/?so
Finance:
c:2oo '/'_ ~?> 7
Agenda Item No. ILl
1,20..o'f
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 the issuance of an Annual Purchase Order in the amount of
$95,000 with two (2) one-year extensions at the City's option to Alexis Oil Company for
automotive, heavy truck and heavy equipment lubricants to be utilized by the Public
Services Department, Fleet Division.
Background:
On May 13, 2009 notices for bid # RFQ F-09-16 (Lubricants) were sent to nine (9) vendors,
the San Bernardino Area Chamber of Commerce, advertised on the City's Web Page and in
the San Bernardino County Sun Newspaper. Six bids were received, they are:
Vendor
Alexis Oil Company
Southern Counties Lubricants
Poma Distributing Company
Goodspeed Distributing Inc.
Napa Auto Parts
The SoCo Group Inc.
Location
Corona
Orange
Bloomington
Hesperia
San Bernardino
Perris
Quote
$58.83
$60.69
$62.12
incomplete bid
incomplete bid
incomplete bid
Each bidder was asked to bid on the per gallon or per pound price of 10 items. Alexis Oil
Company had the lowest overall pricing. Goodspeed Distributing Company did not bid all
items and the cost for items they bid were 13 percent higher then Alexis Oil Company.
Similarly, the cost for Napa are 47 percent higher and the SoCo Group Inc. costs are 15
percent higher then the low bidder, also based on the incomplete bids received.
The bid specifications cover both Public Services and Fire Department lubricant needs.
However, since the Fire Department's costs for lubricants are anticipated to be $8,500 for
FY 09-10, they will be requesting a separate purchase order using the same bid
specifications. The above quote price includes delivery costs. Attached for your review is
the bid summary for #RFQ F-09-16 (Lubricants) see Attachment 1.
Financial Impact:
Funds have been budgeted in the FY 09-10 Fleet Division Budget, Account No. 635-341-
5113 (Motor Fuel and Lubricants) in the amount of $95,000.
Recommendation:
Adopt Resolution.
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RESOLUTION NO.
(C(Q)[pJl(
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
THE ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
$95,000 WITH TWO (2) ONE.YEAR EXTENSIONS AT THE CITY'S OPTION TO
ALEXIS OIL COMPANY FOR AUTOMOTIVE, HEAVY TRUCK AND HEAVY
EQUIPMENT LUBRICANTS TO BE UTILIZED BY THE PUBLIC SERVICES
DEPARTMENT, FLEET DIVISION.
WHEREAS, Alexis Oil Company submitted the lowest bid for the purchase of
lubricants per RFQ F-09-16; and,
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That 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 Alexis Oil Company, 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. That pursuant to this determination the Director of Finance or her
designee is hereby authorized to issue an Annual Purchase Order to Alexis Oil
Company in the amount of $95,000 for FY 09-10.
SECTION 3. The Annual Purchase Order shall reference this Resolution
Number and shall read, "Alexis Oil Company for lubricants, for a total not to exceed
$95,000" and shall incorporate the terms and conditions of this Resolution.
SECTION 4. The authorization to execute the above referenced Annual
Purchase Order and Agreement is rescinded if it is not executed by both parties within
sixty (60) days of the passage of this resolution.
26 III
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7 -.:70-d7
:1J I L{
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT AND
THE ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
$95,000 WITH TWO (2) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO
ALEXIS OIL COMPANY FOR AUTOMOTIVE, HEAVY TRUCK AND HEAVY
EQUIPMENT LUBRICANTS TO BE UTILIZED BY THE PUBLIC SERVICES
DEPARTMENT, FLEET DIVISION.
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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
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8 thereof, held on the
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day of
vote, to wit:
10 Council Members:
AYES
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ESTRADA
BAXTER
BRINKER
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15 SHORETT
16 KELLEY
17 JOHNSON
18 MCCAMMACK
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, 2009, by the following
NAYS
ABSTAIN ABSENT
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
,2009.
day of
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26 Approved as to Form:
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9- ' &-'"
es F. Penman, City Attorney
Patrick J. Morris, Mayor
City of San Bernardino
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VENDOR SERVICE AGREEMENT
This Vendor Service Agreement is entered into this 20th day of July 2009, by an
between Alexis Oil Company ("VENDOR") and the City of San Bernardino
Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageo
and in the best interest of the CITY to contract for automotive, heavy truck and heavy equipmen
lubricants; and
WHEREAS, the City of San Bernardino did solicit and accept quotes from availabl
vendors for automotive, heavy truck and heavy equipment lubricants per RFQ F-09-16.
NOW, THEREFORE, the parties hereto agree as follows:
14 1.
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SCOPE OF SERVICES.
For the remuneration stipulated, San Bernardino hereby engages the services 0
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VENDOR to provide those products and services as set forth in RFQ F-09-16 for lubricants
per the bid summary sheet attached hereto as Attachment" I" and by this reference made a p
hereof.
2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shal
pay the VENDOR the not to exceed amount of $95,000 for automotive, heavy truc
and heavy equipment lubricants as per Attachment I.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
III
III
E):HIBIT "A"
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TERM.
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The term of this agreement shall be from July 20,2009 through June 30, 2010 with tw
(2) one-year extensions at the City's option. Option year one, if exercised, shall be effective Jul
1,2010 through June 30, 2011. Option year two, if exercised, shall be effective July 1,2011
through June 30, 2012. Exercise of any option shall be on the same terms and conditio
including price. A lower price may be negotiated prior to exercise of any option.
This Agreement may be terminated at any time by thirty (30) days' written notice b
either party. The terms of this Agreement shall remain in force unless amended by writte
agreement of the parties executed on or before the date of expiration of current term of th
agreement.
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4. WARRANTY
Vendor expressly warrants that all products and services supplied to City by Vendo
under this Agreement shall conform to the specifications, drawings or other description upo
which this purchase is based, shall be fit and sufficient for the purpose intended, merchantable
of good material and workmanship, free from defects and free and clear of all liens 0
encumbrances. Inspection, testing, acceptance or use of the goods by the City shall not affec
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 0
services not conforming to the foregoing warranty without expense to the City, when notified 0
such non-conformity by City. If Vendor fails to correct the defects in or replace non-conformin
goods or services promptly, City may, after reasonable notice to Vendor, make such correction
or effect cover, or cure, at Vendor's expense. "Reasonable notice" for purposes of this sectio
shall not be deemed to require more than 60 calendars days notice before commencement 0
efforts by the City to effect cover or a cure except upon written agreement of the Parties.
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1 5.
INDEMNITY.
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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 0
any kind and nature arising from bodily injury, including death, or property damage, based 0
asserted upon any or alleged act or omission of Vendor, its employees, agents, or subcontractors
relating to or in any way connected with the accomplishment of the work or performance 0
service under this Agreement, unless the bodily injury or property damage was actually cause
by the sole negligence of the City, its elected officials, employees, agents or representatives. A
part of the foregoing indemnity, Vendor agrees to protect and defend at its own expense
including attorney's fees the City, its elected officials, employees, agents or representatives fro
any and all legal actions based upon such actual or alleged acts or omissions. Vendor hereb
waives any and all rights to any types of express or implied indemnity against the City, i
elected officials, employees, agents or representatives, with respect to third party claims agains
the Vendor relating to or in any way connected with the accomplishment of the work 0
performance of services under this Agreement.
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 statutory worker'
compensation coverage, and shall file copies of said policies with the CITY's Risk Manage
prior to undertaking any work under this Agreement. CITY shall be set forth as an additiona
named insured in each policy of insurance provided hereunder. The Certificate of Insuranc
furnished to the CITY shall require the insurer to notify CITY of any change or termination i
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the policy. Insurer shall give CITY 30 days notice prior to enactment and any change 0
termination of 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 0
sexual orientation, or any other status protected by law.
8.
INDEPENDENT CONTRACTOR.
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VENDOR shall perform work tasks provided by this Agreement, but for all intents an
purposes VENDOR shall be an independent contractor and not an agent or employee of th
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment 0
Income Tax, Social Security, State Disability Insurance Compensation, Unemploymen
Compensation, and other payroll deductions for VENDOR and its officers, agents, an
employees, and all business licenses, if any are required, in connection with the services to b
performed hereunder.
9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain, and maintain a business registratio
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 VENDO
to practice its business or profession.
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III
III
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1 10. NOTICES.
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Any notices to be given pursuant to this Agreement shall be deposited with the Unite
States Postal Service, postage prepaid and addressed as follows:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
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TO THE CITY:
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TO THE VENDOR:
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Alexis Oil Company
219 Blider Circle
Corona, CA 92881
Telephone: (951) 453-8269
Contact: Stacey Poirier
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11. ATTORNEYS' FEES
In the event that litigation is brought by any party in connection with this Agreement, th
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 i
rights or remedies hereunder or the enforcement of any of the terms, conditions or provision
hereof. The costs, salary and expenses of the City Attorney and members of his office i
enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for th
purposes of this paragraph.
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ASSIGNMENT.
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VENDOR shall not voluntarily or by operation of law asSign, transfer, sublet 0
encumber all or any part of the VENDOR's interest in this Agreement without CITY's prio
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written consent. Any attempted assignment, transfer, subletting or encumbrance shall be voi
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 0
VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunde
for the term of this Agreement.
13. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with thi
Agreement shall be tried and litigated either in the State courts located in the County of S
Bernardino, State of California or the U.S. District Court for the Central District of Californi
Riverside Division. The aforementioned choice of venue is intended by the parties to be th
mandatory and not permissive in nature.
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GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to thi
Agreement and their respective heirs, representatives, successors, and assigns.
15.
16. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes 0
convenience only and shall not affect the construction or the interpretation of any of it
provisions.
17.
ENTIRE AGREEMENT; MODIFICATION.
24 This Agreement constitutes the entire agreement and the understanding between th
25 parties, and supersedes any prior agreements and understandings relating to the subject matter
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VENDOR SERVICE AGREEMENT
ALEXIS OIL COMPANY
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of this Agreement. This Agreement may be modified or amended only by a written instrurnen
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executed by all parties to this Agreement.
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IN WITNESS THEREOF, the parties hereto have executed this Agreement on the da
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and date set forth below.
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Dated:
,2009
VENDOR.
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By:
CITY OF SAN BERNARDINO
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Dated
,2009
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By:
Charles E. McNeely, City Manager
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Approved as to Form:
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By:
James F. Penman, City Attorney
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VENDOR SERVICE AGREEMENT
This Vendor Service Agreement is entered into this 20th day of July 2009, by an
between Alexis Oil Company ("VENDOR") and the City of San Bernardino
Bernardino").
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WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageou
and in the best interest of the CITY to contract for automotive, heavy truck and heavy equipmen
lubricants; and
WHEREAS, the City of San Bernardino did solicit and accept quotes from availabl
vendors for automotive, heavy truck and heavy equipment lubricants per RFQ F-09-16.
NOW, THEREFORE, the parties hereto agree as follows:
14 1.
SCOPE OF SERVICES.
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For the remuneration stipulated, San Bernardino hereby engages the services 0
VENDOR to provide those products and services as set forth in RFQ F-09-16 for lubricants
per the bid summary sheet attached hereto as Attachment" I" and by this reference made a p
hereof.
2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shal
pay the VENDOR the not to exceed amount of $95,000 for automotive, heavy truc
and heavy equipment lubricants as per Attachment I.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
III
III
1
1 3.
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TERM.
The term of this agreement shall be from July 20, 2009 through June 30, 20 I 0 with tw
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(2) one-year extensions at the City's option. Option year one, if exercised, shall be effective Jul
1,2010 through June 30, 2011. Option year two, if exercised, shall be effective July 1,2011
through June 30, 2012. Exercise of any option shall be on the same terms and condition
including price. A lower price may be negotiated prior to exercise of any option.
This Agreement may be terminated at any time by thirty (30) days' written notice b
either party. The terms of this Agreement shall remain in force unless amended by writte
agreement of the parties executed on or before the date of expiration of current term of th
agreement.
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12 4.
WARRANTY
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Vendor expressly warrants that all products and services supplied to City by Vendo
under this Agreement shall conform to the specifications, drawings or other description upo
which this purchase is based, shall be fit and sufficient for the purpose intended, merchantable
of good material and workmanship, free from defects and free and clear of all liens 0
encumbrances. Inspection, testing, acceptance or use of the goods by the City shall not affec
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 0
services not conforming to the foregoing warranty without expense to the City, when notified 0
such non-conformity by City. If Vendor fails to correct the defects in or replace non-conformin
goods or services promptly, City may, after reasonable notice to Vendor, make such correction
or effect cover, or cure, at Vendor's expense. "Reasonable notice" for purposes of this sectio
shall not be deemed to require more than 60 calendars days notice before commencement 0
efforts by the City to effect cover or a cure except upon written agreement of the Parties.
2
1 5.
INDEMNITY.
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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 0
any kind and nature arising from bodily injury, including death, or property damage, based 0
asserted upon any or alleged act or omission of Vendor, its employees, agents, or subcontractors
relating to or in any way connected with the accomplishment of the work or performance 0
service under this Agreement, unless the bodily injury or property damage was actually cause
by the sole negligence of the City, its elected officials, employees, agents or representatives. A
part of the foregoing indemnity, Vendor agrees to protect and defend at its own expense
including attorney's fees the City, its elected officials, employees, agents or representatives fro
any and all legal actions based upon such actual or alleged acts or omissions. Vendor hereb
waives any and all rights to any types of express or implied indemnity against the City, i
elected officials, employees, agents or representatives, with respect to third party claims agains
the Vendor relating to or in any way connected with the accomplishment of the work 0
performance of services under this Agreement.
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 statutory worker'
compensation coverage, and shall file copies of said policies with the ClTY's Risk Manage
prior to undertaking any work under this Agreement. CITY shall be set forth as an additiona
named insured in each policy of insurance provided hereunder. The Certificate of Insuranc
furnished to the CITY shall require the insurer to notify CITY of any change or termination i
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the policy. Insurer shall gIve CITY 30 days notice prior to enactment and any change 0
termination of policy.
7.
NON-DISCRIMINATION.
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In the performance of this Agreement and in the hiring and recruitment of employees
5
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in
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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 0
sexual orientation, or any other status protected by law.
8.
INDEPENDENT CONTRACTOR.
16
VENDOR shall perform work tasks provided by this Agreement, but for all intents an
purposes VENDOR shall be an independent contractor and not an agent or employee of th
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment 0
Income Tax, Social Security, State Disability Insurance Compensation, Unemploymen
Compensation, and other payroll deductions for. VENDOR and its officers, agents, an
employees, and all business licenses, if any are required, in connection with the services to b
performed hereunder.
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9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain, and maintain a business registratio
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 VENDO
to practice its business or profession.
24
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III
III
4
1 10. NOTICES.
2
3
Any notices to be given pursuant to this Agreement shall be deposited with the Unite
States Postal Service, postage prepaid and addressed as follows:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
Alexis Oil Company
219 Blider Circle
Corona, CA 92881
Telephone: (951) 453-8269
Contact: Stacey Poirier
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11. ATTORNEYS' FEES
In the event that litigation is brought by any party in connection with this Agreement, th
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 it
rights or remedies hereunder or the enforcement of any of the terms, conditions or provisio
hereof. The costs, salary and expenses of the City Attorney and members of his office i
enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for th
purposes of this paragraph.
23 12.
ASSIGNMENT.
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VENDOR shall not voluntarily or by operation of law assign, transfer, sublet 0
encumber all or any part of the VENDOR's interest in this Agreement without CITY's prio
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written consent. Any attempted assignment, transfer, subletting or encumbrance shall be voi
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 0
VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunde
for the term of this Agreement.
13. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with thi
Agreement shall be tried and litigated either in the State courts located in the County of S
Bernardino, State of California or the U.S. District Court for the Central District of Californi
Riverside Division. The aforementioned choice of venue is intended by the parties to be th
mandatory and not permissive in nature.
13 14.
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15
16
17
18
19
20
21
22
23
GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to thi
Agreement and their respective heirs, representatives, successors, and assigns.
15.
16. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes 0
convemence only and shall not affect the construction or the interpretation of any of it
provIsIOns.
17.
ENTIRE AGREEMENT; MODIFICATION.
24 This Agreement constitutes the entire agreement and the understanding between th
25 parties, and supersedes any prior agreements and understandings relating to the subject matter
6
1
2
3
VENDOR SERVICE AGREEMENT
ALEXIS OIL COMPANY
of this Agreement. This Agreement may be modified or amended only by a written instrumen
4
executed by all parties to this Agreement.
5
6
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the da
and date set forth below.
13
,2009
VENDOR.
By:
,2009
CITY OF SAN BERNARDINO
By:
Charles E. McNeely, City Manager
Approved as to Form:
1.4
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_ f' P~v4-.
. Penman, City Attorney
7
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