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HomeMy WebLinkAboutE-12 Staff Report - Second Amendement with SVT Fleet LLCCONSENT ITEM E-12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: JANUARY 16, 2024 SUBJECT: APPROVAL OF SECOND AMENDMENT FOR FLEET MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF AZUSA AND SVT FLEET LLC BACKGROUND: The City has contracted with Southern California Fleet Services, Inc. for fleet maintenance services since December 7, 2020. The First Amendment to the agreement was approved on November 20, 2023 by the City Council for a one-year extension to December 7, 2024. As of December 29, 2023, Southern California Fleet Services Inc. has been purchased by SVT Fleet LLC. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Approve the Second Amendment to the Maintenance Services Agreement between the City of Azusa and SVT Fleet LLC., formerly Southern California Fleet Services, Inc., for fleet maintenance services; and 2)Authorize the City Manager to execute the contract amendment, 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. On November 20, 2023 the First Amendment to the Agreement was made to allow a for a one-year extension, extending the agreement to December 7, 2024. As of December 29, 2023, Southern California Fleet Services, Inc. has been purchased by SVT Fleet LLC. SVT Fleet will continue to utilize the same staff and operate out of the same local facility. Approved City Council January 16, 2024 Second Amendment to Fleet Maintenance Agreement – SVT Fleet LLC January 16, 2024 Page 2 FISCAL IMPACT: There is no fiscal impact for the above recommendations. 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 Attachments: 1) Second Amendment to Fleet Maintenance Services Agreement 2) Notice of Acquisition – SVT Fleet LLC 45635.01000\31368292.1 -1 - CITY OF AZUSA SECOND AMENDMENT TO AGREEMENT FOR MAINTENANCE SERVICES 1.PARTIES AND DATE. This Second Amendment to the Agreement for Fleet Maintenance Services (“Second Amendment”) is entered into on the 16th day of January 2024, by and between the City of Azusa (hereinafter referred to as the “City”) and SVT Fleet LLC, formerly 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 amended the Agreement on November 20, 2023 to extend the Agreement for an additional one-year term and increase the annual contract compensation for a total not-to-exceed $130,000. 2.3 Second Amendment. The following changes shall be made to the first paragraph of Section 1: A.“Southern California Fleet Services, Inc., with its principal place of business at 2855 Sampson Avenue, Corona, California 92879” to be replaced with “SVT Fleet LLC, with its principal place of business at 2429 S. Peck Road, Whittier, CA 90601. 3.TERMS. 3.1 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this Second 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 Second Amendment to Agreement on this 16th day of January, 2024. CITY OF AZUSA SVT FLEET, LLC By: Sergio Gonzales City Manager By: Name: Title: ATTEST: By: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney Thomas Franchina Attachment 2