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RESOLUTION (ID # 3643) DOC ID: 3643 G
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Tony Frossard M/CC Meeting Date: 03/16/2015
Prepared by: Adrienne Loa,
Dept: Public Works Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing
the Execution of a First Amendment to the Vendor Service Agreement Between McCray
Enterprises and the City of San Bernardino and Authorizing the Increase to Annual
Purchase Order to $155,200. (#3643)
Current Business Registration Certificate: Yes
Financial Impact:
Account Budgeted Amount: $118,731
Account No. 635-400-0100*5173
Account Description: Outside Vehicle Maintenance
Balance as of: February 21, 2015
Balance after approval of this item: $43,731
Apo, Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
01/08/01 Resolution No. 2001-2 was adopted approving an Annual Purchase Order to
McCray Enterprises with 2-year renewal options.
07/06/04 Resolution No. 2004-221 was adopted approving an Annual Purchase Order
to McCray Enterprises with 2- year renewal options.
04/16/07 Resolutions No. 2007-122 was adopted approving a $32,000 increase to
McCray Enterprises.
08/16/10 Resolution No. 2010-285 was adopted approving an Annual Purchase Order
to McCray Enterprises with 3-year renewal options.
07/07/14 Resolution No. 2014-261 was adopted approving an Annual Purchase Order
to
McCray Enterprises with Two (2) One - Year Extension
Background:
One of the primary responsibilities of the Fleet Division is to maintain and repair the City
of San Bernardino's Fleet. The Fleet Division must ensure that the City's Fleet complies
with all State and Federal regulations.
McCray Enterprises is an independent heavy-equipment repair facility that has provided
outstanding support to the Fleet Division for the past 19 years and is classified as a
Sole Source Vendor. The majority of the City's heavy-duty trucks have Cummins Diesel
or Natural Gas engines. McCray Enterprises is the only authorized Cummins engine
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3643
warranty dealer located in the City.
The Fleet Division is requesting an increase to the current Purchase Order because, the
City does not have the necessary funds to support a vehicle replacement program, and
presently, 49 of the 79 refuse trucks in Integrated Waste's fleet have exceeded the 7-8
year useful life expectancy for these vehicles. The age of the fleet has made the trucks
subject to major engine and shift differential repairs. A single major engine repair can
cost between $10,000 and $12,000. Shift differential repairs can cost from $3,000 to
$6,500 per truck.
The advanced age of these vehicles make it difficult to predict when failures will occur,
but when they do, retaining an adequately funded Purchase Order with McCray
Enterprises is crucial to ensure that the trucks necessary to service the residents of San
Bernardino are fully operational and that Waste Management services are not
disrupted.
City Attorney Review:
Supporting Documents:
Mc Crays Increase VSA Amendment (DOC)
Mc Crays P.O. Increase Resolution (DOC)
agrmt 3643 (PDF)
Mc Crays Reso 2014-261 (PDF)
Mc Crays VSA 2014 (PDF)
Undated: 3/11/2015 by Georaeann "Giai" Hanna G Packet Pg. 329
S.K.a
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
3 ADMENDMENT TO THE VENDOR SERVICE AGREEMENT BETWEEN MCCRAY
4 ENTERPRISES AND THE CITY OF SAN BERNARDINO AND AUTHORIZING THE
INCREASE TO ANNUAL PURCHASE ORDER TO $155,200.
5
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
6 CITY OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The City Manager is hereby authorized to execute a First Amendment v
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to the Vendor Service Agreement between McCray Enterprises and the City of San
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Bernardino, attached hereto as Exhibit "A" and incorporated herein.
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11 SECTION 2. The Director of Finance, or designee is hereby authorized and directed
12 to increase Purchase Order No. 2014-00000866 by $80,200 to McCray Enterprises for an
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13 amount not to exceed $155,200 for FY 2014-2015 0
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SECTION 3. The Purchase Order shall reference this Resolution and shall read "P.O. o
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2014-00000866 not to exceed $155,200 for heavy duty truck repairs. N
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SECTION 4. The authorization to execute the First Amendment to the Vendor
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18 Service Agreement is rescinded if not signed and returned to the City Clerk within sixty (60) a
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19 days of the passage of this resolution. v
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5.K.a
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
2 ADMENDMENT TO THE VENDOR SERVICE AGREEMENT BETWEEN MCCRAY
ENTERPRISES AND THE CITY OF SAN BERNARDINO AND AUTHORIZING THE
3 INCREASE TO ANNUAL PURCHASE ORDER TO $155,200.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
5
6 and Common Council of the City of San Bernardino at a meeting
7 thereof, held on the day of , 2015, by the following vote, to wit:
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Council Members: AYES NAYS ABSTAIN ABSENT ¢
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MARQUEZ c
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11 BARRIOS
12 VALDIVIA
13 SHORETT
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NICKEL c
15
JOHNSON
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17 MULVIHILL
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19 Georgeann Hanna, City Clerk L
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21 The foregoing Resolution is hereby approved this day of 12015.
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23 R. Carey Davis, Mayor
24 City of San Bernardino
25 Approved as to form:
26 Gary D. Saenz, City Attorney
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By.
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1 FIRST AMENDMENT TO VENDOR SERVICE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND MCCRAY ENTERPRISES FOR HEAVY
2 DUTY EQUIPMENT AND TRUCK REPAIRS SERVICES.
3 This First Amendment to Vendor Service Agreement with McCray Enterprises for
4 Heavy Duty Truck Repairs is entered into this 16th day of March, 2015 and between Mc Cray
Enterprises ("VENDOR") and the City of San Bernardino ("CITY"),
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WITNESSETH:
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7 WHEREAS, The Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to contract for Heavy Equipment Repairs series;
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and
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11 WHEREAS, VENDOR is a Sole Source Vendor and was awarded a contract
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12 by the Mayor and Common Council on July 7, 2014, Resolution 2014-261, in the >
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13 amount of$75,000
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WHEREAS, the parties now desire to increase the amount of the Agreement by
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$80,200.00
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17 NOW, THEREFORE, the parties hereto agree as follows: M
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18 1. Section 2, Compensation and Expenses, of the Agreement is hereby amended to rn
19 increase the amount to a total not to exceed $155,200
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20 2. All other terms and conditions of the Agreement shall remain in full force and y
21 a
effect.
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2 FIRST AMENDMENT TO VENDOR SERVICE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND MCCRAY ENTERPRISES FOR HEAVY
3 DUTY EQUIPMENT AND TRUCK REPAIRS SERVICES.
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5 IN WITNESS THEREOF, the parties hereto have executed this on the day and date
6 set forth below.
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9 Dated: Mc Cray Enterprises
10 By:
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Its: Q
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Dated: CITY OF SAN BENARDINO
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14 By:
Allen J. Parker, City Manger
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17 APPROVED AS TO FORM: M
Gary D. Saenz, City Attorney E
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1 RESOLUTION NO. 2014-261
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
3 AND ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
4 $75,000 WITH TWO (2) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO
McCRAY ENTERPRISES OF SAN BERNARDINO, PURSUANT TO SECTION
,5 3.04.010-113 OF THE MUNICIPAL CODE FOR MEDIUM AND HEAVVY-DUTY
EQUIPMENT AND TRUCK REPAIR, INCLUDING PURCHASE OF VARIOUS
6 RELATED PARTS.
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7 WHEREAS, McCray Enterprises is an independent heavy equipment repair facility in v
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the City of San Berardino, who has provided outstanding support to the Fleet Management
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10 Division for over eighteen(18)years. N
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11 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5
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13 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized M
_ 14 to execute on behalf of said City an Agreement between the City of San Bernardino and Mc N
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15 Cray Enterprises, a copy of which is attached hereto, marked Exhibit "A" and incorporated o
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herein by reference as fully as though set forth at length.
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SECTION 2. This purchase is exempt from the formal contract procedures of Section
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3.04.010 of the Municipal Code, pursuant to Section 3.04.010 B.3 of said Code "Purchases
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20 approved by the Mayor and Common Council."
21 SECTION 3. The Purchase Order shall reference this Resolution number and shall
22 read "McCray Enterprises for medium and heavy-duty equipment and truck repair, including
23 purchase of various related parts. Agreement not to exceed$75,000"and shall incorporate the
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terms and conditions of the Agreement.
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26 SECTION 4. The authorization to execute the above-referenced Agreement and
27 Purchase Order is rescinded if not issued within sixty (60) days of the passage of this
28 Resolution.
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2014-261
1 RESOLUTION NO. 2014-261
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
3 AND ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
4 $75,000 WITH TWO (2) ONE-YEAR EXTENSIONS AT THE CITY'S OPTION TO
McCRAY ENTERPRISES OF SAN BERNARDINO, PURSUANT TO SECTION
5 3.04.010-113 OF THE MUNICIPAL CODE FOR MEDIUM AND HEAVVY DUTY
EQUIPMENT AND TRUCK REPAIR, INCLUDING PURCHASE OF VARIOUS
6 RELATED PARTS.
7 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor v
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and Common Council of the City of San Bernardino at a _jQjitt regular meeting Q
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thereof,held on the 7 th day of July ,2014,by the following vote,to wit: c
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11 Council Members: AYES NAYS ABSTAIN ABSENT
12 MARQUEZ x
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BARRIOS x
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VALDIVIA x v
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16 SHORETT x y
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17 NICKEL x �
18 JOHNSON
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MULVIHILL x
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22 Georg n Hanna,City Clerk a
23 The foregoing resolution is hereby approved this —day of 7u ,2014.
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25 virgin Ma quez, M yor 0 Tem
City of San Bernardino
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Approved as to form:
27 Gary D. Saenz, City Attorney
28 By. 1A
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2014-261
VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND MCCRAY ENTERPRISES FOR HEAVY DUTY EQUIPMENT AND TRUCK
REPAIR SERVICES
This Vendor Service Agreement is entered into this 7th day of July
2014,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
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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 >
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WHEREAS, McCray Enterprises is an independent heavy-equipment repair facility in
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San Bernardino and has provided outstanding support to the Fleet Division for over eighteen
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(18) years and;
WHEREAS, this purchase is exempt from the formal contract procedures of Sections c
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3.04.010.of the Municipal Code, pursuant to Section 3.04.010. B.3 of said Code "Purchases cn
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approved by the Mayor and Common Council."
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NOW,THEREFORE, the parties hereto agree as follows:
1. SCOPE OF SERVICES. E
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For the remuneration stipulated,the CITY hereby engages the services of VENDOR to Q
provide those products and services for heavy duty equipment and truck repair and various
related parts.
2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shall
pay the VENDOR the amount not to exceed f$75,000.00 for medium and heavy-
duty equipment and truck repair,including purchase of various related parts.
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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.
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.
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4. INDEMNITY.
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CITY agrees to indemnify and hold harmless VENDOR, its officers, agents and >
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volunteers from any and all claims, actions, or losses, damages and/or liability resulting from U)
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CITY's negligent acts or omissions arising from the CITY's performance of its obligations c
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under the Agreement.
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VENDOR agrees to indemnify and hold harmless the CITY, its officers, agents, and r
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volunteers from any and all claim, actions, or losses, damages and/or liability resulting from N
VENDOR's negligent acts or omissions arising from the VENDOR's performance of its L
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obligations under the Agreement.
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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 43
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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
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2014-261
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.
6. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
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VENDOR shall not engage in, nor permit its officers, employees or agents to engage in, g
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discrimination in employment of persons because of their race, religion, color, national origin, >
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ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
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sexual orientation, or any other status protected by law, except as permitted pursuant to Section C
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12940 of the California Government Code.
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7. INDEPENDENT CONTRACTOR. c
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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 v
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
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Income Tax, Social Security, State Disability Insurance Compensation, Unemployment E
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Compensation, and other payroll deductions for VENDOR and its officers, agents, and a
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,
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2014-261
qualifications,insurance and approval of whatever nature that are legally required of VENDOR
to practice its business or profession.
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 Works Director
300 North"D" Street
San Bernardino, CA 92418
Telephone: (909)384-5140 iv
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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, M
the prevailing party shall be entitled to recover from the opposing party all costs and expenses, c
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including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of
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its rights or remedies hereunder or the enforcement of any of the terms, conditions or L
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provisions hereof. The costs, salary and expenses of the City Attorney and members of his
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office in connection with that litigation shall be considered as"attorneys' fees"for the purposes E
of this paragraph.
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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
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of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
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
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mandatory and not permissive in nature.
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13. GOVERNING LAW. >
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This Agreement shall be governed by the laws of the State of California.
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14. SUCCESSORS AND ASSIGNS. _
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This Agreement shall be binding on and inure to the benefit of the parties to this M
Agreement and their respective heirs,representatives,successors,and assigns. o
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15. HEADINGS. N
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The subject headings of the sections of this Agreement are included for the purposes of L
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convenience only and shall not affect the construction or the interpretation of any of its Eu
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provisions. E
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16. ENTIRE AGREEMENT; MODIFICATION.
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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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2014-261
VENDOR SERVICE AGREEMENT OR HEAVY DUTY CITY OF SAN EQUIPMENT �TRUCK
AND MCCRAY ENTERPRISES
SERVICES
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: `7 - t a ,2014 McCRAY ENTERPRISES
By: �' ..� t
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Dated d ,2014 CITY OF SAN BE ARDINO`
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By: L
Alle+ arker,City Manager
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Approved as to Form: �
Gary D. Saenz, City Attorney o
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