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HomeMy WebLinkAboutCC Resolution 10444 (Vehicle & Equipment Replacement Study)RESOLUTION NO. 10444 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL TO ENTER INTO AN AGREEMENT WITH FLEET COUNSELOR SERVICES, INC. FOR VEHICLE AND EQUIPMENT REPLACEMENT STUDY IN AN AMOUNT NOT TO EXCEED $22,960. BE IT RESOLVED by the Council of the City of San Rafael as follows: WHEREAS, Staff have solicited Requests for Proposals to conduct a vehicle and replacement study; and WHEREAS, Staff have selected the team of Fleet Counselor Services, Inc. as the most qualified; and Staff WHEREAS, ave worked closely with Fleet Counselor Services, Inc. to define the scope of services for this project; and WHEREAS, Staff finds that the cost of the proposal is within industry standards. NOW, THEREFORE, BE IT RESOLVED the Council of the City of San Rafael accepts the proposal from Fleet Counselor Services, Inc. to conduct a vehicle and equipment study in an amount not to exceed $22,960 and authorizes the Mayor to execute the Agreement. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on the 21 st day of June, 1999, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None �'• JEA . LEO Wr,c&tl�y Clerk AGREEMENT WITH FLEET COUNSELOR SERVICES, INC. FOR VEHICLE AND EQUIPMENT REPLACEMENT STUDY This Agreement is made and entered into this 21 IT day of June, 1999, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and Fleet Counselor Services, Inc. (hereinafter "CONSULTANT"). RECITALS WHEREAS, Staff have solicited Requests for Proposals to conduct a vehicle and equipment replacement study; and WHEREAS, Staff have selected the team of Fleet Counselor Services, Inc. as the most qualified; and WHEREAS, Staff have worked closely with Fleet Counselor Services, Inc. to define the scope of services for this project; and WHEREAS, Staff finds that the cost of the proposal is within industry standards. AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: 1. DEFINITIONS. 2. PROJECT COORDINATION. A. CITY. The City Manager shall be the representative of the CITY for all purposes under this Agreement. The Public Works Director is hereby designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the progress and execution of this Agreement. B. CONSULTANT. CONSULTANT shall assign a single PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for CONSULTANT. James Wright is hereby designated as the PROJECT DIRECTOR for CONSULTANT. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute PROJECT DIRECTOR for any reason, the CONSULTANT shall notify the CITY within seven (7) business days of the substitution. 1 3. DUTIES OF CONTRACTOR. CONSULTANT shall perform the duties and/or provide services as follows: as described in Exhibit "A" attached and incorporated herein. Exhibit "A" is entitled "Details of Scope of Services." 4. DUTIES OF CITY. CITY shall perform the duties as follows as described in Exhibit "A" attached and incorporated herein. 5. COMPENSATION. For the full performance of the services described herein by CONSULTANT, CITY shall pay CONSULTANT as described in Exhibit "A" attached and incorporated herein. Payment will be made monthly upon receipt by PROJECT MANAGER of itemized invoices submitted by CONSULTANT. 6. TERM OF AGREEMENT. The term of this Agreement shall be for the entire construction length of said project after a Notice to Proceed is issued. Upon mutual agreement of the parties, and subject to the approval of the Public Works Director, the term of this Agreement shall be extended for an additional period of time. 7. TERMINATION. A. Discretionary. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other party. B. Cause. Either party may terminate this Agreement for cause upon ten (10) days written notice mailed or personally delivered to the other party, and the notified party's failure to cure or correct the cause of the termination, to the reasonable satisfaction of the party giving such notice, within such fifteen (30) day time period. C. Effect of Termination. Upon receipt of notice of termination, neither party shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. D. Return of Documents. Upon termination, any and all CITY documents or materials provided to CONSULTANT and any and all of CONSULTANT's documents and 2 materials prepared for or relating to the performance of its duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. OWNERSHIP OF DOCUMENTS. The written documents and materials prepared by the CONSULTANT in connection with the performance of its duties under this Agreement, shall be the sole property of CITY. CITY may use said property for any purpose, including projects not contemplated by this Agreement. 9. INSPECTION AND AUDIT. Upon reasonable notice, CONSULTANT shall make available to CITY, or its agent, for inspection and audit, all documents and materials maintained by CONSULTANT in connection with its performance of its duties under this Agreement. CONSULTANT shall fully cooperate with CITY or its agent in any such audit or inspection. 10. ASSIGNABILITY. The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. 11. INSURANCE. A. During the term of this Agreement, CONSULTANT shall maintain, at no expense to CITY, the following insurance policies: 1. A comprehensive general liability insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence for death, bodily injury, personal injury, or property damage; 2. An automobile liability (owned, non -owned, and hired vehicles) insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence; 3. If any licensed professional performs any of the services required to be performed under this Agreement, a professional liability insurance policy in the minimum amount of one million($ 1,000,000) dollars to cover any claims arising out of the CONSULTANT's performance of services under this Agreement. B. The insurance coverage required of the CONSULTANT by section 11. A., shall also meet the following requirements: 1. The insurance shall be primary with respect to any insurance or coverage maintained by CITY and shall not call upon CITY's insurance or coverage for any contribution; 2. Except for professional liability insurance, the insurance policies shall be endorsed for contractual liability and personal injury; 3. Except for professional liability insurance, the insurance policies shall be specifically endorsed to include the CITY, its officers, agents, employees, and volunteers, as additionally named insureds under the policies. 4. CONSULTANT shall provide to PROJECT MANAGER, (a) Certificates of Insurance evidencing the insurance coverage required herein, and (b) specific endorsements naming CITY, its officers, agents, employees, and volunteers, as additional named insureds under the policies. 5. The insurance policies shall provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said insurance policies except upon thirty (30) days written notice to CITY's PROJECT MANAGER; 6. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less than five years; 7. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement; 8. The insurance shall be approved as to form and sufficiency by PROJECT MANAGER and the City Attorney. C. If it employs any person, CONSULTANT shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONSULTANT and CITY against all liability for injuries to CONSULTANT's officers and employees. D. Any deductibles or self-insured retentions in CONSULTANT's insurance policies must be declared to and approved by the PROJECT MANAGER and the City Attorney. At CITY's option, the deductibles or self-insured retentions with respect to CITY shall be reduced or eliminated to CITY's satisfaction, or CONSULTANT shall procure a bond guaranteeing payment of losses and related investigations, claims administration, attorney's fees and defense expenses. 12. INDEMNIFICATION. 4 CONSULTANT shall indemnify, release, defend and hold harmless CITY, its officers, agents, employees, and volunteers, against any claim, demand, suit, judgment, loss, liability or expense of any kind, including attorney's fees and administrative costs, arising out of or resulting in any way, in whole or in part, from any acts or omissions, intentional or negligent, of CONSULTANT or CONSULTANT'S officers, agents and employees in the performance of their duties and obligations under this Agreement." 13. NONDISCRIMINATION. CONSULTANT shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 14. COMPLIANCE WITH ALL LAWS. CONSULTANT shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONSULTANT shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONSULTANT shall release, defend, indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities, penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 15. NO THIRD PARTY BENEFICIARIES. CITY and CONSULTANT do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 16. NOTICES. All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY: David M. Bernardi (Project Manager) City of San Rafael 1400 Fifth Ave. (P.O. Box 151560) San Rafael, CA 944915-1560 5 TO CONSULTANT: James Wright (Project Director) Fleet Counselor Services, Inc. 1006 N. Sunnyvale Mesa, AZ 85205 17. INDEPENDENT CONTRACTOR. For the purposes, and for the duration, of this Agreement, CONSULTANT, its officers, agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONSULTANT and CITY expressly intend and agree that the status of CONSULTANT, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 18. ENTIRE AGREEMENT -- AMENDMENTS. A. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONSULTANT and the CITY. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the CONSULTANT and the CITY. E. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 19. SET-OFF AGAINST DEBTS. CONSULTANT agrees that CITY may deduct from any payment due to CONSULTANT under this Agreement, any monies which CONSULTANT owes CITY under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or other amounts. 6 K1 1i1,TKW M4 The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 21. COSTS AND ATTORNEY'S FEES. The prevailing party in any action brought to enforce the terms and conditions of this Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 22. CITY BUSINESS LICENSE / OTHER TAXES. CONSULTANT shall obtain and maintain during the duration of this Agreement, a CITY business license as required by the San Rafael Municipal Code. CONSULTANT shall pay any and all state and federal taxes and any other applicable taxes. CONSULTANT's taxpayer identification number is 84-1416619, and CONSULTANT certifies under penalty of perjury that said taxpayer identification number is correct. 23. APPLICABLE LAW. The laws of the State of California shall govern this Agreement. 7 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month and year first above written. CITY OF SAN RAFAEL CONSULTANT FLEET COUNSELOR SERVICES, INC. r 4ayo4" By: Name: Title: {� ATTEST: • • • • •• •• •• City Clerk Services/Professional Services Contract Form -I (Revised 4/96) ExN,t3j-r " All DETAILS OF SCOPE OF SERVICES The following is a detailed outline of scope of services as listed in the request for proposal. Section One 1.2 Required Scope of Services Task A: Vehicle and Equipment Replacement Program A1: Benchmark City's current fleet replacement program against recognized best fleet management practices in industry. FCS will benchmark the City of San Rafael's replacement program with three other municipal government agencies. FCS will recommend these agencies based upon our knowledge of their operations, their financial stability, and their management of the operations. The benchmark data will include: ♦ Replacement life by class of equipment ♦ Replacement mileage by class of equipment ♦ Average usage by class ♦ Ownership cost, per mile and per financial accounting period ♦ Total cost of ownership including maintenance, ownership, and salvage values A2: Review the current vehicle equipment replacement process and time line, the city's replacement recycling policies and procedures, the salvage and disposal process, the financing methods, and the philosophy of the replacement program. 4 FCS will perform a complete evaluation of the City's current replacement policies, procedures, time lines, salvage and disposal process, financing process, and philosophy for replacing vehicles and equipment. FCS will also bring industry trends to light during the study. Alternatives exist to the standard replacement program used for many years by most agencies. FCS clients are leading the way in implementing most of these new innovative methods of managing fleet replacements. A3: Review vehicle selection policies and procedures including life -cycle consideration and customer needs and other requirements. FCS will evaluate the current selection processes used to acquire replacement vehicles and equipment. Again, FCS has established new and very cost-effective processes for replacing vehicles and equipment in many fleet operations throughout North America. These well- documented processes address technology as part of the replacement evaluation. This ensures that the end user—the customer— has the latest in technology to compete with cost concerns or with the private sector in providing services to the citizens of San Rafael. A4: Review add-on equipment requirements such as light bars, shotgun ranks, flares, and safety equipment. FCS will evaluate the process known as "make ready" for outfitting new vehicles for service. FCS has designed some very specialized applications with the assistance of our staff mechanical consultant, Mr. Joe Lucero. Should the need arise, FCS will ask Joe to come on- site and evaluate these operations more closely. A5: Review the vehicle specification preparation function and roles. FCS is a leader in the development of vehicle and equipment specifications. FCS will evaluate the current process and make recommendations accordingly. FCS uses a process that is performance -oriented and uses the technical specification process itself to eliminate "government bid equipment" usually found to be low bid at purchase time and high maintenance for life. A& Review the methods of purchase to insure acquisition is accomplished through the most effective method (e.g, purchase, rent or lease). FCS will evaluate the "ownership options" available to the City of San Rafael. This evaluation will also be supported by the benchmarking data acquired by FCS's fleet data analyst, Ms. Barb Magill. A7: Review current vehicle retention guidelines considering the needs of the customer and the city's financial condition. FCS will very closely evaluate the amount of time vehicles and equipment are being used for service. This data will be compared to the city's ability to fund replacements and to pay for maintenance. It will also determine what effect downtime has on services and cost of operations. I A8: Review the disposal vehicles and equipment order to maximize resale value and minimize overall life -cycle cost. FCS will evaluate the methods and philosophy used to dispose of replaced vehicles and equipment. The salvage value of reengineered vehicles and equipment may be a hidden treasure of financial opportunity. A9: Review the complete vehicle replacement program, funding methodologies and its alternate fuel plan into the replacement analysis. FCS will evaluate the complete replacement program and its relationship to alternative fueled vehicles and equipment. This evaluation will also include the year -by -year mandated requirements that are in effect up to that point in time of the study. A10: Review current rate in charge back to insure that all fleet costs, including indirect cost allocations, are accounted for and recovered. Examine how the city handles charging back customers for accidents, damage, misuse, and other losses. FCS will perform an activity costing analysis of the fleet operation to identify all costs in the fleet operation and to identify which costs are associated directly with the acquisition and disposal of vehicles and equipment. FCS will also identify how the City manages damage, accident, and operator misuse costs. These will also be included on the benchmarking of other fleet operations. 7 A 11: Evaluate replacement rates to insure that adequate cash reserves are available to purchase a new vehicle when the current one has reached the end of its useful life. Evaluate the adequacy of the current replacement reserve. Make recommendations on managing the fund. FCS will develop a replacement rate model to be used to ensure that sufficient funds are accrued for the replacement of vehicles and equipment. These processes, however, must be performed after the City has evaluated FCS's recommended changes in the current replacement process and has chosen a process for implementation. Summary of Task A requirements FCS will present the city with a replacement program that is both financially feasible and in the best interest of the citizens of San Rafael. Task B: Review the Current Information Technology Used to Monitor and Manage the Fleet. B l: Review available fleet management systems utilizing experience with current systems. Is this the best use of this technology for the city. FCS is considered an industry leader when evaluating fleet management systems. The founder of FCS designed a state-of-the-art system some nine years ago that is still an industry leader. FCS is called upon by many agencies to develop specifications for the acquisition of a fleet system. This process, Technology Needs Assessment, was designed by FCS some 6 years ago to help agencies locate, acquire, and implement a system suited for their agency. Proper size, functionality, and ability of the system to pay for itself are some of the key factors used in the Technology Needs Assessment. FCS will perform a Technology Needs Assessment for the City of San Rafael. 132: Assess the City's current fleet management information system to the extent that the City utilizes the system in meeting the needs of its customers. This process will be completed as part of the Technology Needs Assessment. 133: Identify any of the city's processes that could be reengineered toward better serving the goals of its customers. FCS will conduct a brief Critical 17 Factors of Fleet Management evaluation for the City of San Rafael. This process will outline weak areas in the fleet operation and grade each aspect of the fleet operation using a point grading scale. The grading will then be compared to the industry, other fleet operations, and the private sector. This will not be a complete detailed Critical 17 Factors of Fleet Management evaluation as that process alone would double the cost of this study. However, there will be sufficient detail to implement suggested changes to operations. 134: Review current technology to better streamline operations by evaluating the potential to eliminate redundant data entry in record systems, minimize support staff and paperwork requirements, and develop appropriate information for decision making. Performing the Critical 17 Factors of Fleet Management evaluation will complete this aspect of the study. B5: Review the potential to empower employees and customer users alike with information technology. Performing the Critical 17 Factors of Fleet Management evaluation will complete this aspect of the study. 136: Recommend commercially available fleet management system that will meet requirements of the City of San Rafael. FCS will present a "short list" of fleet management software suppliers to the city with a specific recommended vendor after the Technology Needs Assessment has been completed. Task C: Recommendations Report and Implementation C l: Make recommendations that will improve the city's fleet replacement program and information technology in the form of a fleet management system for its Fleet Counselor Services, Inc. management program. Prepare a report that provides a plan for implementing the recommended improvement opportunities. The Findings and Recommendations Report will be detailed. Each recommendation will include a recommended implementation plan. Each implementation plan will identify resources and possible obstructions that may affect the recommendation. The overall plan will be prioritized according to dependencies and financial benefit to the City of San Rafael. 10 COST DETAIL Project Expenses FCS expects the following expenses for this project. The Principal will make one on- site trip for this project. The Senior Consultant lives in the area and will commute daily as needed. Air fare $ 900 Hotel costs $ 900 Rental car $ 300 Office expenses $ 500 On-site expenses $ 800 Total Estimated Expenses $ 3,400 Principal Fleet Mgmt. Specialist Associate Consultant Data Analyst Task Hours Task Cost Hours Task Cost Hours Task Cost Hours Task Cost Task A 22 $ 40 $ 44 $ 8 $ 2,750 4,000 4,400 560 Task B 22 $ 0 $ - 14 $ 2 $ 2,750 1,400 140 Task C 8 $ 8 $ 12 $ 8 $ 1,000 800 1,200 560 Total 52 $ 48 $ 70 $ 18 $ 6,500 4,800 7,000 1,260 Project Staff Cost Cost Recap Project staff cost $19,560 Project expenses $ 3,400 Total Project $22,960 13 Payment Terms FCS processes invoices in two-week intervals. This project would be subject to progress payments as the project proceeds. Each invoice is accompanied by a detailed listing by classification for each FCS employee, specifically stating time spent to date, remaining time, and receipts to support expenses. No mark-ups for expenses are used. Federal tax ID and insurance information are available upon request. Cost for meals, cleaning, and living expenses is $40.00 per day and no receipts are required. Only actual expenses will be billed. Receipts will accompany all major expenses such as airfare, auto rental, and hotel. Costs for all FCS expenses are never marked -up. Additional FCS Staff Time Outside the Project. Should the City wish FCS to perform work outside the scope of the deliverables herein, the rates that will be in effect for 1999 calendar year are: Principal $125.00 per hour. Senior Consultant $100.00 per hour. Associate Consultant $100.00 per hour. Mechanical Consultant $100.00 per hour. Parts Specialist $80.00 per hour. Fleet Data Analysts $70.00 per hour. Technical Writer $70.00 per hour. FCS can comply with all insurance requirements 14