HomeMy WebLinkAboutE-04 Staff Report - Preventive Mobile Extension of Fleet Maint ContractCONSENT ITEM
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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: NOVEMBER 19, 2018
SUBJECT: APPROVAL OF FIRST AMENDMENT TO AGREEMENT FOR FLEET
MAINTENANCE SERVICES BETWEEN THE CITY OF AZUSA AND
PREVENTIVE MOBILE
BACKGROUND:
The City has contracted with Preventive Mobile for fleet maintenance services for over six years. The
current contract, which was approved by City Council on December 7, 2015, is set to expire on
December 7, 2018. Staff would like to exercise one of the one-year extensions available. The proposed
action approves a one-year extension with Preventive Mobile for the Fleet Maintenance Service
Contract.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1)Approve the First Amendment to Fleet Maintenance Services Agreement between the City of
Azusa and Preventive Mobile for fleet maintenance services.
2) Authorize the City Manager to execute an amendment to the contract, in a form acceptable to the
City Attorney, on behalf of the City.
ANALYSIS:
On December 7th, 2015, City Council awarded fleet maintenances services with the exception of Light
and Water and the Police Department, to Preventive Mobile. This contract is effective through
December 7, 2018, with two potential one-year extensions available. With the original contract expiring
December 7, 2018, the City purchasing policy requires a one-year extension of the contract be
considered by the City Council. As part of the extension, Staff and the vendor agreed on an adjustment
to the rate per hour to make it consistent with rates charged for other vehicles.
APPROVED
CITY COUNCIL
11/19/2018
First Amendment to Fleet Maintenance Contract
November 19, 2018
Page 2
Currently, Tier 1 vehicles (Passenger Cars, Light Trucks and similar misc equipment) have a standard
hourly rate of $95.00. Tier 2 vehicles (Medium Duty Trucks & similar misc equipment) have a standard
hourly rate of $105.00 per hour. Tier 3 vehicles (Heavy Duty Trucks and Transit Buses) already have a
standard hourly rate of $110.00 per hour. The vendor has agreed to keep the Tier 3 rate at $110.00 per
hour while increasing the rates of Tiers 1 and 2 to $110.00.
Preventive Mobile has been providing quality fleet maintenance services for over six years.
Additionally, Preventive Maintenance provides fleet maintenance services for the Light and Water and
Police Departments under separate contracts. This First Amendment extends the contract through
December 7, 2019 and sets the standard hourly rate to $110 per hour for all vehicles/equipment.
FISCAL IMPACT:
The proposed recommendation approves a one-year extension with Preventive Mobile. The current not-
to-exceed contract amount with Preventive Mobile is $104,200. While the hourly rates for Tier 1 and
Tier 2 vehicles will increase as part of this extension, only a small percentage of the services are
performed on Tier 1 and Tier 2 vehicles. Thus, the annual amount of the one-year extension will remain
at $104,200. The nominal increase in hourly rates will be covered by the amount included in the FY
2018-19 approved budget.
Prepared by: Fiscal Impact Reviewed:
Nikki Rosales Talika M. Johnson
Senior Management Analyst Director of Finance
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) First Amendment to Fleet Services
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FIRST AMENDMENT TO MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
PREVENTIVE MOBILE
FOR FLEET MAINTENANCE SERVICES
ARTICLE 1. PARTIES AND DATE
This first amendment to the Fleet Maintenance Services Agreement (“Second
Amendment”) is entered this 8th day of December, 2018, by and between the City of Azusa
(“City”) and Preventive Mobile (“Contractor”).
ARTICLE 2. RECITALS
2.1 WHEREAS, the City and Contractor entered into a three year Fleet Maintenance
Services Agreement dated December 8, 2015 (“Agreement”) for Contractor to provide fleet
maintenance services (“Services”) to the City of Azusa; and
2.2 WHEREAS, Section 3.1.2 of Agreement requires written approval of an
extension of the original three year term; and
2.3 WHEREAS, the City and Contractor have mutually agreed to extend the contract
for one year or until December 7, 2019; and
2.4 WHEREAS, Section 3.3.1 of Agreement requires written approval of changes to
the rates set for in Exhibit C; and
2.5 WHEREAS, the City desires to increase certain hourly rates for service provided;
and
NOW, THEREFORE, THE PARTIES DO HEREBY AGREE TO THE FOLLOWING:
1. 3.1. Scope of Services and Terms. The first paragraph of Section 3.1.2 is
hereby replaced, in its entirety, with the following:
3.1.2 Term. The term of this Agreement shall be from December 8, 2015 to
December 7, 2019, as allowed by adding one additional year extension, unless earlier terminated
as provided herein. One additional one-year extension may be granted. Contractor shall
complete the Services within the term of this Agreement, and shall meet any other established
schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this
Agreement if necessary to complete the Services.
2.Exhibit C – Compensation is hereby replaced in its entirety with the following
(changes from original Agreement identified by italics):
Attachment 1
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EXHIBIT C
Compensation
PRICING PROPOSAL FORM
FLEET MANAGEMENT SERVICES PRICING LIST
1. Cost proposal for all items listed in this Request for Proposals to include all parts (including
any markup), labor, management fees, environmental fees, PMs as described in the Scope of
Work and Specifications and all other items as listed in the specifications.
Total Cost Proposal for PM-A.
Tier I – Passenger Cars, Light Trucks and similar misc equipment $84.95
Tier II – Medium Duty Trucks (1 ton & below) and similar misc equipment $214.95
Tier III – Heavy Duty Truck, Transit Buses, and similar misc equipment $539.95
Total Cost Proposal for PM-B
Tier I – Passenger Cars, Light Trucks and similar misc equipment $149.95
Tier II – Medium Duty Trucks (1 ton & below) and similar misc equipment $276.95
Tier III – Heavy Duty Trucks, Transit Buses, and similar misc equipment $539.95
Total Cost Proposal for PM-C
Tier I – Passenger Cars, Light Trucks and similar misc equipment $495.95
Tier II – Medium Duty Trucks (1 ton & below) and similar misc equipment $709.95
Tier III – Heavy Duty Trucks, Transit Buses, and similar misc equipment $1,289.95
2. Cost proposal for directed work items such as mechanical repairs, component replacement
and reconditioning. Bidder to provide written description of repairs not included in the PM
specifications.
Tier I – Standard Hourly Rate $110.00
Tier II – Standard Hourly Rate $110.00
Tier III – Standard Hourly Rate $110.00
Tier I – Overtime Hourly Rate $165.00
Tier II – Overtime Hourly Rate $165.00
Tier III – Overtime Hourly Rate $165.00
3. Cost proposal for emergency conditions (after hours) work items such as mechanical repairs,
component replacement and reconditioning. Proposer to provide written description of
emergency conditions procedures and hours for applications of stated rates.
Tier I – Emergency Call Hourly Rate $110.00
Tier II – Emergency Call Hourly Rate $110.00
Tier III – Emergency Call Hourly Rate $110.00
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4. Hourly Rate for Fabrication $110.00
5. Hourly Rate for Additional Fleet Services $110.00
Employee Hourly Rate Hours Worked Total Cost Overtime Rate
Mario Martinez $29.65 40/wk 1186/wk $44.47
Patricia
Martinez
$16.32 36/wk 587.52/wk $24.48
Total Estimated Annual Price: $104,200.00
Total Estimated Annual Price with PMI Schedule: $54,000.00
3. Continuing Effect of Agreement: Except as amended by this First Amendment,
all provisions of the Agreement as amended by the First Amendment shall remain unchanged
and in full force and effect. From and after the date of this First Amendment, whenever the term
“Agreement” appears in the Agreement, it shall mean the Agreement as amended by the First
Amendment.
4. Adequate Consideration: The Parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this Second Amendment.
5. Counterparts: This First Amendment may be executed in duplicate originals,
each of which is deemed to be an original, but when taken together shall constitute but one and
the same instrument.
SIGNATURES ON NEXT PAGE
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IN WITNESS WHEREOF, City and Contractor have executed this First Amendment as
of the date first written above.
CITY OF AZUSA PREVENTIVE MOBILE
By: By:
Sergio Gonzalez Mario Martinez
City Manager President
Attest:
By:
Jeffrey Lawrence Cornejo, Jr.
City Clerk
Approved as to Form:
By:
Best Best & Krieger LLP
City Attorney