HomeMy WebLinkAbout04/04/1995, C-3 - AWARD OF CONTRACT FOR THE PURCHASE OF TWO TRANSIT COACHES MTV
► INlll ��lll city of San LUIS OBISPO _(R
COUNCIL AGENDA REPORT '�""NUMBER:
cou C•
FROM: Michael D. McCluskey - Director of Public Wor
Prepared by: Harry Watson - Transit Manager
SUBJECT. Award of Contract for the Purchase of Two Transit Coaches
CAO RECOMIM ENDATION:
1. Approve and authorize the Mayor to execute a contract for the construction and
acquisition of two CNG powered transit coaches with the firm of 'The Flxible
Corporation" in the amount of $568,934.
2. Approve an appropriation from the Transit Fund balance in the amount of $70,000
to be applied toward this purchase.
DISCUSSION:
Background
The City is administering an approved Section 9 Federal transit Administration (FTA)
Grant for the purchase of two buses, one for Regional Transit and one for SLO Transit.
The current City budget contains this replacement bus. Regional Transit also programmed
one bus in it's budget. SLO Transit is administering the grant and purchasing the bus for
Regional Transit in the spirit of cooperation.
This purchase uses a "cooperative purchasing" acquisition, via an existing public advertised
contract by the City of Oxnard. The process has been reviewed and approved by the FTA.
The City bus will replace one that has been in service for eleven years. It is 35' in length
(5' shorter than our most recent additions) and will be fueled by compressed natural gas.
It has many of the same comfort features as the most recent additions to the fleet.
FISCAL IMPACT.
The cost of the buses is : $532,486
Tax 36.448
$568,934
A combination of funds will be used for this purchase, they are:
Federal amount $486,000
Local Match - City 25,000
Local Match - SLORTA 42,934
The Gas Co. 15.000
$568,934
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Purchase Coaches
Page Two
The Federal amount is contained in our approved Program of Projects. These acquisitions
were approved in the 1993/94 financial plan on pages E-7 and E-18. There is $500,000
rema mg in the project account. Therefore the $70,000 is to close the gap between
budgeted amount and the construction cost (reimbursements from SLORTA and the Gas
Co will result in the City's net cost of $25,000). The SLORTA match is contained in their
approved 1994-95 budget and will rollover into their 1995-96 budget. The City has a letter
of agreement from SLORTA for their match which is to be paid upon demand. The Gas Co.
match was verbally re-confirmed 3/17/95. Sufficient'funds exist in the carryover balance of
the Transit Fund for the City's local match.
CONCURRENCE: .
The Mass Transportation Committee has endorsed this purchase.
Attachments: 1. The Flxible Corporation offer letter
2. Contract
3. The Oxnard specifications are available in the council office for
review.
CNGapol
01 194 17:18 FLXIBLE 614 362 2658 P•2
The Flxlble Corporation
December 1, 1994
Mr. Harry Watson
Transit Manager
QTY OF SAN LUIS OBISPO
955 Morro Street
San Luis Obispo, CA 93401
Dear Harry:
In response to your letter of October 21,the following proposal is submitted for your review.
The price to provide two (2) 35' x 102' CNG-powered transit buses would be$266,243. each,
delivered. This price is based on a delivery in the third quarter of 1995, and includes the changes
requested in your letter of 10/21.
This price does not, however,"Include taxes. To calculate your taxes, you should reduce the taxable
price by the value of delivery and the ADA/E&H equipment, which totals $23,259.
In addition to the changes that you requested, a number of revisions were made by Oxnard following
contract award, that are reflected in your proposal price. The changes requested by Oxnardresulted
in a redaction in price of$1,566. from the 35' bid price of$266,424. This bid price was also
exclusive ot.=y state or local taxes. A_summary of the changes incorporated in the Oxnard contract,
and a confirming summary of those requested for your bus is attacfxed for your review. If you find
that any of-the Oxnard changes are unacceptable, those can be negotiated separately.
Flxile appreciates your interest in our line of CNG-powered Advanced Design Buses, and this
opportunity to deliver our first order to the City. I hope that the delay in developing final costing has
not been an inconvenience for you. It was necessary, however, to complete our change order
negotiations with Oxnard before responding to your request. Please call me with any questions
regarding this proposal. I look forward to your favorable reply at your earliest convenience.
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Direcpasaimt—
on Mark ales
ce: ' G. Chornak
J. Kinkier
D. Kossler
E. Kravitz
D. Vavro
S. Young
TLL 94 Correspondence
970 Pittsburgh Drive• Delaware,Ohio 43015.2859• U.SA •Telephone:(614)362-2600
520 North Spring Street•Loudonville,Ohio 44842-1290•U.SA •Telephone:(419)994-414 1 •Teie)c 271708 FLX LOON
AGREEMENT
THIS AGREEMENT is made and entered into the City of San Luis Obispo on this
day of ,1995, by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as CITY, and The Flxible Corporation, hereinafter
referred to as SUPPLIER
WITNESSETH
WHEREAS, on December 1, 1994, CITY requested and received permission to join the
procurement of two heavy duty transit buses, as additions to the City of Oxnard,
California's procurement and Oxnard's specifications.
WHEREAS, pursuant to said procurement by Oxnard, SUPPLIER submitted a proposal
which was accepted by the CITY for said equipment.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and
covenants hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of the Agreement shall be from the date this Agreement is
made and entered, as first written above, until acceptance of said equipment
(approximately December 31, 1995).
2. INCORPORATION BY REFERENCE. The Request for Proposals, Technical
Specifications, instructions to bidders and December 1, 1994 offer letter to San
Luis Obispo are hereby incorporated in and made part of this Agreement
(Attachment A).
3. CITY'S OBLIGATIONS. For furnishing equipment as specified in this
Agreement, CITY will pay and SUPPLIER shall receive therefore compensation
in a total sum not to exceed $532,486 plus tax. Payment to the SUPPLIER shall
be made within 30 days after receipt of an original invoice from SUPPLIER and
acceptance of equipment by CTTY.
4. SUPPLIER'S OBLIGATIONS. For and in consideration of the payments and
agreements hereinafter mentioned to be made and performed by CITY,
SUPPLIER agrees to furnish CITY with two 35' compressed natural gas fueled
transit coaches as described in Attachment A, and to do everything required by
this Agreement and the said specifications. Without limiting the generality of the
foregoing, SUPPLIER warrants on behalf of itself and all subcontractors engaged
for the performance of this Agreement that only persons authorized to work in
the United States pursuant to the Immigration Reform and Control Act of 1985
and other applicable laws shall be employed in-the performance of the work
hereunder. As this purchase is funded through a grant from the Federal Transit
Administration (FTA), SUPPLIER will conform to all provisions and
requirements of FTA funded buses.
5. HOLD HARMLESS AND INDEMNIFY. SUPPLIER agrees to defend, indemnify,
and hold harmless CITY, its officials, officers, employees, representatives, and agents
from and against all claims, lawsuits, liabilities, or damages of whatsoever nature
arising out of or in connection with, or relating in any manner to any act or omission
of SUPPLIER, its agents, employees, and subcontractors of any tier and employees
thereof in connection with the performance or non-performance of the Agreement.
The SUPPLIER shall thoroughly investigate any and all claims and indemnify the
CITY and do whatever is necessary to protect the CITY, its officials, officers,
employees, representatives, and agents as to any such claims, lawsuits, liabilities,
expenses, or damages.
6. AMENDMENTS. Any amendment, modification, or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the
Director of Finance.
7 TERMINATION. If during the term of this Agreement, the CITY determines that
the SUPPLIER is not faithfully abiding by any term or condition contained herein,
CITY may notify SUPPLIER in writing of such defect or failure to perform; which
notice must give SUPPLIER a ten day period of time whereafter in which to perform
said work or cure the deficiency. If SUPPLIER has not performed the work or
cured the deficiency within the ten days specified in the notice, such shall constitute a
breach of this Agreement and CITY may terminate this agreement immediately by
written notice to SUPPLIER to said effect. Thereafter, neither party shall remain in
full force and effect and shall not be extinguished, reduced, or in any manner waived
by the termination hereof. In said event, SUPPLIER shall be entitled to the
reasonable value of its services performed from the beginning of the period in which
the breach occurs up to the day it received CITY'S Notice of Termination, minus any
off-set from such payment representing the CITY's damages from such breach. CITY
reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined at the CITY's sole discretion, so
as to permit a full and complete accounting of costs. In no event, however, shall
SUPPLIER be entitled to receive in excess of the compensation quoted in its bid.
8. COMPLETE AGREEMENT. This written Agreement, including all writings
specifically incorporated herein by reference, shall constitute the complete agreement
between the parties hereto. No oral agreement, understanding, or representation not
reduced to writing and specifically incorporated herein shall be of any force or effect,
nor shall any such oral agreement, understanding, or representation be binding upon
the parties hereto.
9. ANTI-DISCRIMINATION. In the performance of the terms of this Agreement,
SUPPLIER agrees that it will not engage in nor permit such subcontractors as it may
employ to engage in discrimination in employment of persons because of age, race,
color, sex, national origin or ancestry, or relation of such persons. Violation of this
provision may result in the imposition of penalties referred to in Labor Code Section
1735.
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10. AUDIT. CITY shall have the option of inspecting and/or auditing all records and
other written materials used by SUPPLIER in preparing its statement to CITY as
condition precedent to any payment to SUPPLIER.
11. NOTICE. All written notices to the parties hereto shall be sent by United States
Postal Service, postage prepaid by registered mail addressed as follows:
CITY: City Clerk
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
SUPPLIER: The Flxible Corporation
970 Pittsburg Drive
Delaware, Ohio 93015-1290
Attention: Terry Leedy
12. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and SUPPLIER do
covenant that each individual executing this Agreement on behalf of each party is a
person duly authorized and empowered to execute Agreements for such party.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed the day and year first above written.
CITY OF SAN LUIS OBISPO
MAYOR ALLEN SETTLE
ATTEST:
City Clerk
SUPPLIER
APPROVED AS TO FORM:
i tto e
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INSURANCE REQUIREMENTS FOR SUPPLIERS
Vendor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons
or damages to property which may arise from or in connection with the products and materials supplied to the City.
The cost of such insurance shall be borne by the Vendor.
Minimum Scone of insurance
Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage
('occurrence' form CG 0001).
Minimum Limits of Insurance
Vendor shall maintain limits no less than$1,000,000 per occurrence for bodily injury,personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the
required occurrence limit.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City,
either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its
officers, officials, employees and volunteers; or the Vendor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
1. The City,its officers,officials,employees,agents and volunteers are to be covered as insureds as respects:
products and completed operations of the Vendor. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials, employees, agents or.volunteers.
2. The Vendor's insurance coverage shall be primary insurance as respects the City, its officers, officials,
employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers,
officials,employees,agents or volunteers shall be excess of the Vendor's insurance and shall not contribute
with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties
shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Vendor's insurance shall apply separately to each insured against whom claim is made or suit is
brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended,voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days'
prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII.
Verification of Cove
Vendor shall famish the City with original endorsements effecting coverage required by this clause. The
endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All
endorsements are to be received and approved by the City before the lease commences.
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