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HomeMy WebLinkAboutE-5 Staff Report - First Amendment for Fleet Maintenance ServicesCONSENT ITEM E-5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., PUBLIC WORKS DIRECTOR/ CITY ENGINEER DATE: NOVEMBER 20, 2023 SUBJECT: APPROVAL OF FIRST AMENDMENT TO AGREEMENT WITH SOUTHERN CALIFORNIA FLEET SERVICES, INC. FOR FLEET MAINTENANCE SERVICES BACKGROUND: The City has contracted with Southern California Fleet Services, Inc. for fleet maintenance services since December 7, 2020. The current contract, which was approved by City Council on November 16, 2020, is set to expire on December 7, 2023. Staff would like to exercise the first of two, one-year extensions to the fleet maintenance service contract. RECOMMENDATION: Staff recommends the City Council take the following actions: 1) Approve the First Amendment to the Fleet Maintenance Service Agreement between the City of Azusa and Southern California Fleet Services, Inc.; and 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 November 16, 2020, the City Council awarded a fleet maintenance services agreement to Southern California Fleet Services, Inc. The contract is affective December 7, 2020 to December 7, 2023, with the option for two one-year extensions. The City purchasing policy requires that the additional one-year extension of a contract be considered by the City Council. This First Amendment extends the contract through December 7, 2024. Since 2020, Southern California Fleet has reassessed their service costs. Due to an increase in labor, equipment, and material costs, they are requesting an increase to the annual contract price. The previous Approved City Council November 20, 2023 First Amendment to Fleet Maintenance Service Agreement November 20, 2023 Page 2 agreement was set at a not-to-exceed annual amount of $101,920. Based on the rate increase, the City is proposing a not-to exceed annual amount of $130,000 for the extended agreement. FISCAL IMPACT: The proposed recommendations would approve an agreement with Southern California Fleet Services, Inc. for a not-to-exceed annual amount of $130,000, funded with Proposition A, Proposition C, Sewer, Gas Tax, and General Fund. The increase cost of fleet maintenance services has been projected, and budgeted in the Fiscal Year 2023-2024 and 2024-2025 operations budget. Prepared by: Reviewed and Approved: Natalie Reagan Robert Delgadillo, P.E Management Analyst Public Works Director/ City Engineer Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) First Amendment to Southern California Fleet Services, Inc. Maintenance Agreement 45635.01000\31368292.1 - 1 - CITY OF AZUSA FIRST AMENDMENT TO AGREEMENT FOR MAINTENANCE SERVICES 1.PARTIES AND DATE. This First Amendment to the Agreement for Professional Services (“First Amendment”) is entered into on the 20th day of November 2023, by and between the City of Azusa (hereinafter referred to as the “City”) and Southern California Fleet Services, Inc. (hereinafter referred to as the “Contractor”). City and Contractor are sometimes collectively referred to herein as the “Parties.” 2.RECITALS. 2.1 Agreement. The Parties entered into that certain Agreement for Fleet Maintenance Services dated November 16, 2020 (“Agreement”). 2.2 First Amendment. The Parties now desire to amend the Agreement in order to extend the Agreement for an additional one-year term and increase the annual contract compensation for a total not-to-exceed $130,000, per the revised pricing proposal in “Exhibit C.” 3.TERMS. 3.1 Term. Pursuant to Section 3.1.2 of the Agreement, the City hereby exercises the option to renew the Agreement and extend the term of the Agreement for 12 months from December 7, 2023 to December 7, 2024, unless earlier terminated as provided in the Agreement. 3.2 Fees and Payment. 3.3.1 Compensation. The Agreement shall be read as follows “Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in the revised Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred Thirty Thousand Dollars ($130,000) without written approval of the City Council. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.” 3.5 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect. Attachment 1 45635.01000\31368292.1 - 2 - IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement on this 20th day of November, 2023. CITY OF AZUSA Southern California Fleet Services, Inc. By: Sergio Gonzales City Manager By: Tom Franchina President ATTEST: By: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney APPENDIX C PRICING PROPOSAL FORM FLEET MANAGEMENT SERVICES PRICING LIST 1. Cost proposal for all items listed in this Request for Proposals to include all parts (including any markup), labor, management fees, environmental fees, PMs as described in the Scope of Work and Specifications and all other items as listed in the specifications. Total Cost Proposal for PM - A. Tier I – Passenger Cars, Light Trucks and similar misc equipment ..............................$__________ Tier II – Medium Duty Trucks (1 ton & below) & similar misc equipment ....................$__________ Tier III – Heavy Duty Trucks, Transit Buses, and Similar misc equipment .................................................................................$__________ Total Cost Proposal for PM - B. Tier I – Passenger Cars, Light Trucks and similar misc equipment ................................$__________ Tier II – Medium Duty Trucks (1 ton & below) & similar misc equipment ....................$__________ Tier III – Heavy Duty Trucks, Transit Buses, and Similar misc equipment .................................................................................$__________ Total Cost Proposal for PM - C. Tier I – Passenger Cars, Light Trucks and similar misc equipment ...............................$__________ Tier II – Medium Duty Trucks (1 ton & below) & similar misc equipment ....................$__________ Tier III – Heavy Duty Trucks, Transit Buses, and Similar misc equipment .................................................................................$__________ 2. Cost proposal for directed work items such as mechanical repairs, component replacement and reconditioning. Bidder to provide written description of procedures of repairs not included in the PM specifications. Tier I - Standard Hourly Rate ..........................................................................................$__________ Tier II - Standard Hourly Rate .........................................................................................$__________ Tier III - Standard Hourly Rate........................................................................................$__________ Tier I – Overtime Hourly Rate .........................................................................................$__________ Tier II – Overtime Hourly Rate .......................................................................................$__________ Tier III – Overtime Hourly Rate ......................................................................................$__________ 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...................................................................$___________ Tier II – Emergency Call HourlyRate ...................................................................$___________ Tier III – Emergency Call Hourly Rate ................................................................$___________ 4. Hourly Rate for Fabrication …………………………………………………$ _________ 5. Hourly Rate for Additional Fleet Services …………………………………..$ _________ Employee Hourly Rate Hours worked Total Cost Overtime rate $ $ $ $ $ $ Total Estimated Annual Price: $_______________________________