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HomeMy WebLinkAbout25C - AGMT - CAR WASHING SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 4, 2016 TITLE: AGREEMENT WITH ROSE EQUIPMENT REPAIR FOR INSTALLATION AND MAINTENANCE OF CORPORATE YARD WATER WISE VEHICLE WASHING FACILITY AND AS NEEDED MAINTENANCE & SUPPLIES {STRATEGIC PLAN NO. 6,2) {SURPLUS ALLOCATION FUNDING) CITY MANAGER IaFLO% IT, IIn14L,I7�7_[$�L�7<1 CLERK OF COUNCIL USE ONLY: FTUO • -• r ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a three -year agreement from October 4, 2016 through November 1, 2019 with Rose Equipment Repair for the purchase, installation and maintenance of the water -wise vehicle washing facility at the Corporate Yard, along with the annual purchase of routine supplies and maintenance of pressure washers, steam cleaners and pumps as needed in a total amount not to exceed $185,000, subject to non - substantive changes approved by the City Manager and City Attorney. Project in accordance with the Council approved Surplus Allocation Plan as of October 20, 2015. Department: Project: Category I Total Funding: Finance City Water -wise Facility Vehicles Facilities /Assets $125,000 Surplus DISCUSSION The existing vehicle washing facility at the City's Corporate Yard has been in operation for twenty -one years. The facility is utilized by all City departments who operate City vehicles including Police, Public Works, Planning & Building, Parks & Recreation, and Finance. Due to its age and extended use, the facility does not operate properly and is routinely shut down for repairs and experiences a substantial amount of water runoff resulting in high water loss and costs. As a result, there is limited use of the existing facility. The replacement and upgrade of this facility was included in the Surplus Allocation Plan approved by City Council in October, 20, 2015. During May and June 2016, staff prepared and 25C -1 Agreement with Rose Equipment Repair for Water Wise Vehicle Washing Facility October 4, 2016 Page 2 distributed Requests for Proposal (RFP) to install a new water efficient washing system that incorporates a high level of recycled water within the existing building structure. During both instances, staff contacted numerous vendors, in which three participated in the formal job walk. However, no formal proposals were submitted and upon further review, staff determined that the construction requirements and scope exceed the capacity of some vendors. Subsequent research determined that Rose Equipment Repair could meet the requirement and scope that meets our high water savings specifications (Exhibit 1). The proposed purchase of this facility will allow the City to continue meeting its water conservation efforts and provide a cost - effective alternative in maintaining City vehicles. This will reduce the need to use private washing facilities that are more expensive and reduce employee efficiency by long wait times. The vehicle washing system identified recycles approximately 79% of the water used to wash each vehicle, compared to the estimated 5% of recycled water the existing system uses. This results in an anticipated water savings of approximately 20 gallons per wash cycle. The installed equipment comes with a three -year limited warranty with all preventive maintenance costs covered for the first year. In addition, staff is incorporating a $25,000 component to the first year of this agreement to cover as- needed operational supplies for the facility and routine maintenance costs for pressure washer, steam cleaner, and pump repair services that are needed throughout the Corporate Yard and have been provided by Rose Equipment Repair over the past several years. According to Municipal Code Section 2- 807(c) Non -bid purchases, a contract may be exempted from competitive bidding through an open market purchase if no bids were received during a formal bid process. STRATEGIC PLAN ALIGNMENT Approval of this item supports City's efforts to meet Strategic Plan Goal #6 - Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds for this agreement are budgeted and available in FY 2016 -17 as follows: Council Special Projects — Corporate Yard Improvements account (05010023- 66200) - $125,000 Stores & Property Control Improvements account (07610102 66200) - $35,000 Corporation Yard Operations maintenance account (08510138 62320) - $17,000 Corporation Yard Operations supplies account (08510138 63001) - $8,000 25C -2 Agreement with Rose Equipment Repair for Water Wise Vehicle Washing Facility October 4, 2016 Page 3 APPROVED AS TO FUNDS AND ACCOUNTS: ,1-&.�A'- Francisco Gutierrez 00 Executive Director Finance and Management Services Agency EXHIBIT: 1. Agreement 25C -3 25C -4 EXHIBIT 1 • THIS AGREEMENT is made and entered into this 41h day of October 2016 by and between Rose Equipment Repair, an S corporation (hereinafter "Contractor") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City "). RECITALS A. The City desires to retain a Contractor having special skill and knowledge in the field of car wash equipment removal, installation and maintenance. B. Contractor represents that Contractor is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting company in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1, SCOPE OF SERVICES Contractor shall perform those services as set forth in the proposal submitted by Contractor dated August 23, 2016, attached hereto and incorporated herein as Exhibit A to this Agreement. Such services shall include removal of existing car wash equipment at the City Corporate Yard, installation of new car wash equipment with a very high water recycling percentage (Water Wise), including electrical, plumbing and set -up to existing facilities, as well as three (3) years of maintenance and servicing. Contractor shall also provide as- needed operational supplies for the facility and routine maintenance for pressure washer, steam cleaner and pump repair services that are needed throughout the Corporate Yard as set forth in Exhibit B. 2. COMPENSATION City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit 25C -5 A. The total sum to be expended pursuant to this Agreement shall not exceed $185,000.00 during the term of this Agreement, with $160,000.00 for the new car wash equipment and maintenance /servicing, and $25,000.00 allocated for the operational supplies and routine maintenance at the Corporate Yard referenced in Exhibit B. City shall pay Contractor in installments as set forth in Exhibit A: 50% down payment upon order placement; 25% progress payment upon completion and permit sign -off by City; and, 25% retention to be held by City for two (2) months, payable to Contractor after verification by City that the Water Wise equipment meets the expectations of City. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 8. TERM This Agreement shall commence on the date first written above and terminate three (3) years after installation of the new car wash equipment on November 1, 2019, unless terminated earlier in accordance with Section 15, below. The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer- employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non - exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or 25C -6 caused to be prepared by Contractor under this Agreement ( "Documents & Data "). Contractor shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Contractor shall supply City with a fully executed additional insured endorsement in substantially the form attached hereto as Exhibit C upon execution of this Agreement. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non - owned automobiles. c. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self- insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. 25C -7 If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 7. INDEMNIFICATION Contractor agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, Contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the direct or indirect operations of the Contractor or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have 25C -8 been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Contractor shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Contractor to the City pursuant to this Agreement. Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 10. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and /or proprietary, Contractor agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and /or agent of the other party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure shall not apply to any information that (a) has been 25C -9 disclosed in publicly available sources; (b) is, through no fault of the Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M -30) P.O. Box 1988 Santa Ana, CA 92702 -1988 Fax 714- 647 -6956 With courtesy copies to: Executive Director — Finance & Management Services Agency City of Santa Ana 20 Civic Center Plaza (M -17) P.O. Box 1988 Santa Ana, California 92702 Fax 714 -647 -5414 25C -10 W To Contractor: City Attorney City of Santa Ana 20 Civic Center Plaza (M -29) P.O. Sox 1988 Santa Ana, California 92702 Fax 71 4- 647 -6515 Rose Equipment Repair 8218 Sorensen Ave. Santa Fe Springs, CA 90670 (562) 789- 9906 / (562) 803 -0817 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty -four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed asset forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior 25C -11 written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. DISCRIMINATION Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations, This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for 25C -12 the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 19. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. (Signatures on Following Page) 25C -13 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Francisco Gutierrez, Executive Director Finance & Management Services Agency 10 25C -14 CITY OF SANTA ANA DAVID CAVAZOS City Manager CONTRACTOR John Rose President Tax ID# August 23, 2016 New Car Wash Equipment Proposal *Revised* Automate Model AMDT -100 (DT) Drive -Thru Car Wash Equipment Package Car Wash Equipment Package Includes: Model AMDT -100 (DT) Automate Custom Hybrid Vehicle Wash with 3600 Wrap- Around Side Brushes, Full Carousel Bearing -Free Mitter and Hybrid Pad Design, 4" x 4" Aluminum Construction, 7.5 HP Hydraulic Power Pack, 96" or more Vehicle Height Clearance #ARA -UNI On -board Presoak Arch, All Aluminum Construction, includes 15 Spray Nozzles with Check Valves, Stainless Steel Water Valves and 96" or more Vehicle Height Clearance #DTGR -30 Drive Thru Guide Rails (Stainless Steel) #FR -UNI On -board Final Rinse Arch, All Aluminum Construction, includesl5 Spray Nozzles with Check Valves, Stainless Steel Water Valves, and 96" or more Vehicle Height Clearance #PM -45 Premier Triple Head 45 HP Blower, 3 15 HP Enclosed Fans with elephant truck attachments that generate winds in excess of 190 MPH, All Aluminum Construction, 100% Welded Housings and Welded Steel Fans, 90" or more Vehicle Height Clearance #B -MS Blower - Triple Motor Starter with Controller Model PW100 -5MAS PurWater 30 GPM Water Revocery System with 3 HP Pump, 5 micron quality water, PLC controls, HMI Interface, and continuous sparging recirculation Car Wash Banner Display to promote Water -Wise Car Wash System Additional Optional Equipment: 9225 -VAC Commercial Vacuum, 2 Motors, Push Button Start and Timer, Small Stainless Steel Dome, 1 ' /z° x 25 FT Suction Hose, Removable Dust Bin , "1110 J Annual PM Service — 36 Month Contract ($1,800/ year) $5,400.00/ 3 years PM Service Contract Includes: A single monthly inspection visit for proper equipment functions and a second monthly visit for PM Service. PM Service Contract will include the following discounts: Months 1 -12 Fully covered parts and labor Months 13 -24 Fully covered parts, Labor is billable Months 25 -36 35% parts discount, Labor is billable Removal of Existing Equipment: All existing equipment will be removed by Rose Equipment Repair. City of Santa Ana will be responsible for the disposal of this equipment. New Equipment installation: New Car Wash Equipment Package will be completely installed including electrical, plumbing, and set -up to existing services. Equipment Cost Breakdown: Car Wash Equipment Package $ 130,000.00 36 -Month Maintenance Contract $ 5,400.00 Removal and Installation $ 10,000.00 Shipping and Handling $ 3,250.00 Sales Tax (8.0 %) $ 10,543.92 Commercial Vacuum *Optional* CompensationTerms: Payment schedule for equipment and services as follows: Total $ 159,193.92 $ 1,799.00 Total with Vacuum Option $ 160,992.92 50% down payment upon order placement $79,596.96 25% payment during progress of project $39,798.48 25% payment (balance) within 60 days of completion of services $39,798.48 This payment schedule shall be effective upon acceptance of this proposal. (Dollar amounts shown reflect Total without optional vacuum.) 25C -16 oil Additional Information: DIR Registration # 1000041649 Rose Equipment Repair, Inc. is fully compliant with the State of California's prevailing wage requirements. Rose Equipment Repair, Inc. provides the following services for the City of Santa Ana on an as needed basis: 1. Pressure Washer Maintenance and Repairs 2. Steam Cleaner Maintenance and Repairs 1 Wash Rack Sump Maintenance and Repairs 4. Graco /Aro Diaphragm Pumps Maintenance and Repairs 5. Car Wash Detergents and Wax 6. Fleet Wash Detergents 7, Industrial Degreaser and Floor Cleaning Solutions Price levels for services provided as follows: 1. Labor for Maintenance and Repairs *Parts used during Maintenance or Repair Services are not included and are added to invoice as a separate charge. 2. Maxi Suds Car Wash Soap 4. Car Wash Wax 5. Fleet Brite 6. Degreaser 7. Floor Kleen $. Trip Charge $90.00 per hour $220.00 each 55 Gal Drum $250.00 each 55 Gal Drum $231.00 each 55 Gal Drum $247.50 each 55 Gal Drum $247.50 each 55 Gal Drum $20.00 r NO EXHIBIT C Insurance Company This endorsement modifies such insurance as is afforded by the provisions of Policy # relating to the following: 1. The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92702; its officers, employees, agents and volunteers are named as additional insureds ( "additional insureds ") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be canceled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92702. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective Policy # Issued to Named Insured Date: Countersigned by this endorsement form as a part of Authorized Representative of Insurer Or Insurance Agent 25C -19 25C -20