Resolution No. 77731
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RESOLUTION NO. 7773
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ACCEPTING THE BID OF STEWART & STEVENSON ON
BID NO. 1408 FOR THE PURCHASE OF A BACKUP POWER
GENERATION SYSTEM AND APPROVING AND AUTHORIZING THE
EXECUTION OF AN EQUIPMENT PURCHASE CONTRACT AND THE
ISSUANCE OF A PURCHASE ORDER RESPECTING SAID BID
WHEREAS, the Community Services & Water Department is
requesting that the City purchase one backup power generation system
for Well No. 19; and
WHEREAS, pursuant to Resolution No. 7713 adopted by the City
Council of the City of Vernon on February 21, 2001, the City Clerk was
directed to give notice inviting sealed proposals or bids for the
purchase and installation of one (1) backup power generation system in
accordance with Bid No. 1408; and
WHEREAS, Bid No. 1408 was approved by the City Council of
the City of Vernon pursuant to Resolution No. 7713, and sealed bids
were opened on May 9, 2001; and
WHEREAS, the following bids were received on Bid No. 1408:
Stewart & Stevenson bid a total of Fifty -Four Thousand Five Hundred
Seventy -Six Dollars and Sixty -Eight Cents ($54,576.68); Duthie Power
Services bid a total of Seventy -Three Thousand Nine Hundred Three
Dollars and No Cents ($73,903.00); and Gammill Electric, Inc. bid a
total of Seventy —Three Thousand Nine Hundred Thirty -Seven Dollars and
Eighty Cents ($73,937.80); and
WHEREAS, the bids were reviewed by the Community Services
and Water Department; and
WHEREAS, by letter dated May 17, 2001, Bruce V. Malkenhorst,
City Administrator/City Clerk, recommended that Bid No. 1408 be
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awarded to Stewart & Stevenson, the lowest responsible bidder meeting
the requirements of Bid No. 1408, a contract be approved and a
purchase order issued for the purchase of the backup system.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
awards Bid No. 1408 to Stewart & Stevenson and accepts and approves
the Equipment Purchase Contract, a copy of which is attached hereto as
Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute the Equipment
Purchase Contract on behalf of the City and authorizes the issuance of
a purchase order for the backup power generation system pursuant to
Bid No. 1408.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send one fully executed
Contract to:
Stewart & Stevenson
Attn: James Myers
215 Jason Court
Corona, CA 92879
SECTION 5: All other bids in connection with Bid No. 1408
are rejected, subject to execution of the aforesaid contract documents
from Stewart & Stevenson accompanied by all required certificates.
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 23rd day of May, 2001.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MAkBURG, M yor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7773, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
May 23, 2001, and thereafter was duly signed by the Mayor of the City
of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
1 EQUIPMENT PURCHASE CONTRACT
2
3 THIS CONTRACT is made, entered into and executed in duplicate originals, either copy of
4 which may be considered and used as the original hereof for all purposes, as of this _ day of May,
5 2001, in the City of Vernon, County of Los Angeles,
6 BY AND BETWEEN THE CITY OF VERNON (hereinafter
referred to as the "City")
7 4305 Santa Fe Avenue
Vernon, CA 90058
8
AND STEWART & STEVENSON
9 (hereinafter referred to as "STEWART")
215 Jason Court
10 Corona, CA 92879
11
12 WHEREAS, on April 24, 2001, the City requested proposals or bids for the purchase and
13 installation of one (1) backup power generation system for Well No. 19 (Bid No. 1408) needed by the
14 City's Department of Community Services and Water; and
15 WHEREAS, on or before May 9, 2001, at 2 p.m., the City received various proposals for
16 the purchase and installation of one (1) backup power generation system identified in Bid No. 1408; and
17 WHEREAS, on May 8, 2001, Stewart submitted a bid for the purchase and installation of
18 the backup power generation system at the City pursuant to Bid No. 1408 which was received by the City
19 on May 9, 2001, at 10:01 a.m.; and
20 WHEREAS, the City desires to purchase the backup generation system as further identified
21 in Items 1-12 in the request for proposals on Bid No. 1408.
22 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
23 FORTH HEREIN:
24 1. Purchase. Stewart agrees to sell and deliver to the City and install the backup
25 generation system for Well No. 19, as identified in Stewart's May 8, 2001 bid and which meet the
26 specifications contained in City of Vernon Bid No. 1408, (hereinafter referred to as the "Bid
27 Documents"). A copy of the Bid Documents are attached hereto as Exhibit "A" and incorporated herein
28 by reference.
1 2. Price. Consistent with the Bid Documents, Stewart agrees to sell, deliver and
2 install one (1) backup generation system for Well No. 19 referenced above to the City, and the City
3 agrees to purchase said backup generation system from Stewart for the total sum of Fifty -Four Thousand
4 Five Hundred Seventy -Six Dollars and Sixty -Eight Cents ($54,576.68.00), including sales tax.
5 3. Payment Terms. The City agrees to pay Stewart progress payments as follows:
6 A. Ninety percent (90%) due upon "shipment and installation of the
7 equipment and acceptance of the equipment by the City, calculated as a percent of total invoice that is
8 due and payable to Stewart net thirty (30) days based upon invoice date for shipment and the City's
9 acceptance.
10 B. Balance of the invoice amount will be invoiced upon final testing and
11 completion of installation of the City and will be due net thirty (30) days based upon invoice date.
12 4. Confidential Information.
13 A. Access to Confidential Information. The City may provide Stewart
14 with, or allow Stewart access to, certain information not available to the public concerning, but not
15 limited to the City, or businesses located in the City. The information may include, but is not limited to,
16 company information, taxes, sales, value of assets, utility usage, or other such information. All such
17 information shall be known as "Confidential Information" and may not be used to circumvent the
18 responsibility of either party to this Contract.
19 B. No Disclosure. Except as expressly permitted, Stewart shall not
20 disclose, permit the disclosure of, release, disseminate, or transfer, whether orally or by any other means,
21 any part of such Confidential Information to any other person or entity, whether corporate, governmental,
22 or individual, without the express prior written consent of an authorized representative of the City.
23 Stewart shall return any written Confidential Information, and all copies made of such items, to the City
24 upon the City's written request, but in any event not later than the date that Stewart has performed all
25 services to be performed pursuant to this Contract. Stewart hereby agrees that such Confidential
26 Information and any documents provided may be used by Stewart only as authorized by the City.
27 Stewart shall take reasonable measures to avoid any disclosure of any such Confidential Information to
28 any unauthorized person.
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I C. Court Ordered Disclosure. Stewart shall immediately notify the City of
2 any court order or subpoena requiring disclosure of Confidential Information, and shall cooperate with
3 legal counsel in the appeal or challenge of any such order or subpoena. Recipient may only disclose
4 Confidential Information required to be disclosed pursuant to court order or subpoena after legal counsel
5 has exhausted any lawful and timely appeal or challenge.
6 D. Remedies. In addition to any other remedies that it may have at law or
7 in equity, the City shall be entitled to a temporary and permanent injunction by a court of competent
8 jurisdiction against any breach or threatened breach of the Confidential Information provisions of this
9 Contract. Stewart acknowledges that in case of such breach or threatened breach of said provisions, the
10 City would have no adequate remedy at law.
11 5. Warranties. Stewart shall provide, at a minimum, a one (1) year labor and
12 material warranty to begin upon acceptance of the equipment by the City. All manufacturers' warranties,
13 and any other warranties made applicable by law, shall apply to the City's purchase of the above-
14 referenced equipment.
15 6. General Provisions.
16 A. Independent Contractor. At all times during the term of this Contract,
17 Stewart shall be an independent contractor and shall not be an employee of the City. The City shall have
18 the right to control Stewart only insofar as the results of Stewart's services rendered pursuant to this
19 Contract; however, the City shall not have the right to control the means by which Stewart accomplishes
20 services rendered pursuant to the Contract except to the extent that such services involve the use of City
21 property or confidential information.
22 B. Stewart shall not be eligible for, nor claim any benefits under, the Public
23 Employee's Retirement System, State Unemployment Insurance, Disability Insurance, Workers'
24 Compensation Insurance, or other benefits through the City as such benefits are commonly conferred
25 upon employees of the City; provided, however, that nothing contained herein shall be deemed to affect
26 any benefits which may have accrued to the Stewart while employed by any other public or private
27 employer, whether prior to or after the effective date of this Contract.
28 C. Products of Consulting. All products of consulting services, including
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I but not limited to computer software, shall become the property of the City and shall be delivered to the
2 City before the end of the performance of this Contract. Basic notes and sketches, charts, computations
3 and other data shall be made available to City without restriction or limitation on their use.
4 D. Assignment and Subcontracting Prohibited. No party to this Contract
5 may assign or subcontract any right or obligation pursuant to this Contract except as provided for in the
6 Proposal or with the express written consent of the other party. Any other attempted or purported
7 assignment of any right or obligation pursuant to this Contract shall be void and of no effect.
8 E. Stewart Not Agent. Except as the City may specify in writing, Stewart
9 shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an
10 agent. Stewart shall have no authority, expressed or implied, pursuant to this Contract to bind the City to
11 any obligation whatsoever.
12 F. Governing Law. The laws of the State of California shall govern the
,F
13 rights, obligations, duties and liability of the parties to this Contract and shall also govern the
14 interpretation of this Contract.
15 G. Indemnification. Stewart shall indemnify, defend, protect and hold the
16 City and its officers, agents and employees, free and harmless from and against any and all claims,
17 demands, losses, damages, liabilities, fines, charges, penalties, orders, judgments and all costs and
18 expenses incurred in connection therewith, including reasonable attorney's fees and costs of defense
19 arising out of or attributable to the negligent or wrongful acts of Stewart or its subcontractors, employees
20 or agents in the performance of services under this Contract, except to the extent arising from or caused
21 by the sole negligence or willful misconduct of the City, its officers, agents or employees.
22 H. Insurance. Stewart agrees to provide insurance in the amounts and forms
23 specified in Exhibit `B," which is attached hereto and made a part hereof by reference. Comparable
24 coverage shall be provided for each subcontractor used in the performance of this Contract. Stewart shall
25 submit to the City documentation indicating compliance with these minimum requirements no less than
26 one (1) day prior to the beginning of performance under this Contract. Stewart shall not commence
27 performance of its services under this Contract until the above insurance has been obtained and proof of
28 insurance has been filed with and approved by the City.
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1 I. Notices. Notices to the parties, unless otherwise requested in writing,
2 shall be sent to:
3 City: THE CITY OF VERNON
ATTN: DOLORES FONSECA, PURCHASING
4 CITY ADMINISTRATOR
5 4305 SANTA FE AVENUE
VERNON, CA 90058-0805
6 Stewart: STEWART & STEVENSON
7 ATTN: JAMES MYERS
215 JASON COURT
8 CORONA, CA 92879
9 7. Entire Agreement. This Contract is the entire agreement of the parties, Stewart
10 represents that in entering into this Contract, it has not relied on any previous representations or
l l understandings of any kind or nature. It is understood and agreed that in the event of a conflict between
12 the Bid Documents and this Contract, the terms of this Contract shall prevail.
13 8. Benefit of Agreement. This Contract shall bind and benefit the parties hereto
14 and their heirs, successors, and permitted assigns.
15 9• Forum Selection. Any action brought relating to this Contract shall be brought
16 and held exclusively in a State Court in the County of Los Angeles, California.
17 10. Recitals. All recitals are incorporated by reference.
18 11. Risk of Loss. The risk of loss shall not pass to the City until the City actually
19 receives the equipment at the final site of installation.
20 12. Risk of Loss Insurance. It is agreed that Stewart, at its own expense, will and
21 independently, seek adequate insurance coverage with respect to the goods to be provided. Stewart shall
22 not look to the City for any deficiency in insurance coverage. Stewart agrees that, in the event of
23 calamity or disaster, its sole remedy shall rest with such insurance coverage.
24 13. Waiver. Any waiver at any time by either party of its rights with respect to a
25 default under this Contract, or with respect to any other matters arising in connection with this Contract,
26 shall not be deemed a waiver with respect to subsequent default or other matter.
27 14. Amendment. All changes or modifications to this Contract shall be in writing
28 stating that it is an amendment to this Contract and shall be signed by both parties or their duly
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authorized agents. This Contract shall not be modified through course of dealing, usage or trade.
IN WITNESS WHEREOF, the parties have caused this Contract to be executed by and
through their authorized officers on the date, month and year first written above.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
EDUARDO OLIVO, City Attorney
CITY OF VERNON
By:
LEONIS C. MALBURG, Mayor
STEWART & STEVENSON
By:
Title:
By:_:_
Title: :
WE
EXHIBIT A
05/17/2001 11:07 FAX 323 581 7924
CITY OF VERNON J LEHR IA003
May 8, 2001
City of Vernon Water District
4305 Santa Fe Ave.
Vernon, CA 90058
Subject: Bid No 1403
STEWART & STEVENSON
215 JASON COURT • CORONA, CALIFORNIA 92879
(909) 372-12BB • FAX: (909) 372-1299
On behalf of Stewart & Stevenson, we are pleased to have the opportunity to quote this
project. The quote will include one (1) Generac 275KW diesel generator and one (1)
400A automatic transfer switch.
Scope of Supply
One (1) new Generac SD275 Generator, 275KW standby power rated, 2771480 VAC.
One (1) new 400A automatic transfer switch, manufactured by Generac.
All construction and permitting will be provided to specification.
Price: See attached bid item break down $54576.68
Thank you for the opportunity to quote this project. If you have any questions, please
don't hesitate to call me.
Respectfully Submitted
James Myers
(909) 372-1288
ENGINEERED POWER FOR THE MARINE, AVIATION, POWER GENERATION, DEFENSE. PETROLEUM AND COMPRESSION INDUSTRIES
SSPOO26-29
05/17/2001 11:06 FAX 323 581 7924 CITY OF VERNON
J LEHR 16002
REQUEST'fOR QUOTATIONS
NOT A PURCHASE ORDER
DIRECT ALL INQUIRIES TO
CITY PURCHASING AGENT
TELEPHONE W3) 583-8611
TO STEWART & STEVENSON
215 JASON COURT
CORONA, CA 92879
CITY OF VERNON, CALIFORNIA
PURCHASING DEPARTMENT
CITY HALL
4305 Santa Fe Ave. — Vernon, California 90058
FOR CITY USE ONLY
QUOTATION NO. 1408
DATE MAILED 'Y
/01
REC'O BY CITYj i I0VI
rr 1
OPENED -�
AM: TED HILL
Please quote hereon the lowest net price you can Furnish the articles or services -specified below. Quote an each item separately. Bidder may
qualify quotations as "all or none by stating so on body of form. City reserves the right to accept or reject quotations received on any or all
r-:...I- ce:.J.J_. r :I_ V—A— .1—dA return this farm whether a price is quoted or not.
QUANTITY
DESCRIPTION
NET UNIT PRICE:
TOTAL
1
INSTALLATION OF ONE BACKUP GENERATION SYSTEM AS PER'7�
---•"�
SPECIFICATIONS ATTACHED. -17—a,C" lnCIvd-4
********NOTE********
PLEASE MARK THE P-11) NUMBER ON T1iE OUTSIDE OF THE RETURN
ENVELOPE, OTHERWISE THE BID WILL NOT BE ACCEPTED.
PLEASE FORWARD TOTAL AMOUNT TO THIS FORM -
IF INSUFFIOIEtrrSPACE PROVIDED ABOVE FOR PROPOSAL, ATTACH RIDER OR SUPPLEMENT. CASH DISCOUNTS
QUOTED FOR PERIODS OF LESS THAN 30 DAYS WILL NOT BE CONSIDERED WHEN ORDER IS AWARDED. BIDS
RECEIVED IN RESPONSE TO THIS REQUEST FOR QUOTATION WILL BE OPENED IN CITY PURCHASING AGENTS
OFFICE ON THE Sj DAY OF M T
NOTE: Quote prices exclusive of Sales Tax and Excise Taxes.
A. Indicate Soles Tax in this spaceS----------------------------------------------- B.•Indieate Excise Tax in this gpoce $ -----.--_._-.-..-..-
C. Abovequo tations subjact, to CosA Discountof.................................. %, F.O.B. _.. rro�.Q[�j-a1)d1------------------._-----
D. To be delivered to CITY OF VERNON at-----------------•----------:_.....-------......------•-•-----------------------
We (1) agree to furnish above in .....
DATE.- �1�.�®.L.....•.................
...............days from receipt of haso order at prices specified.
IeS�fJ
FOR....�._._Le.'.�-----•-••---------� ._... 5eC'�Q !_'�-----..... ..---•_-----•
--•-----.••- �Ffrm Name
SIGN HERE.. "4!----7-r.''*.....:.."'-------------------------
MAIL TO PURCHASING DEFT: ''
05/17/2001 11:07 FAX 323 581 7924
CITY OF VERNON ► J LEHR IM 004
~ The following is an itemized list of minimum acceptable features and capacity of the
ideal generation system. Please provide detailed specifications of the proposed equipment
showing how the equipment meets this criteria. The selected vendor will be required to
furnish and install the generator, associated concrete foundations, transfer switch, and all
conduits and cables.
BID ITEMS
ITEM 1: Provide and install a new Generic 275KW diesel generator and 1,850 fuel
tank per attached specifications.
Cost: ---- 7--�`S
ITEM 2: Provide and install a new Generac 400A Automatic Transfer Switch.
Cost: "5"EJQ
ITEM 3: Provide and install new concrete pad approximately 22' x 12' x 6" in size.
.Cost: f12 -7
ITEM 4: Provide and install a 40" block wall around perimeter of generator.
Cost:%
ITEM 5: Provide and install approximately 80' of underground conduit for power
and control from generator to the Automatic Transfer Switch.
Cost:
ITEM 6: Provide and install conduit and wire from Main SwitchGear to Automatic
Transfer Switch
Cost: 4
ITEM 7: Factory startup and testing.
Cost:
ITEM 8: Labor bank rental
Cost: 3 0 0
05/17/2001 11:07 FAX 323 581 7924 CITY OF VERNON
ITEM 9: Labor for load bank test.
ITEM 10: Chart recorder rental.
J LEHR
Cost: 3 00
Cost: 3O
ITEM 1 1 : Include all applicable permit and plan check fees.
Cost: �l `
ITEM 12: Please include sales tax,
Total et-f 07,
19 005
[
n•
EXHIBIT B
I EXHIBIT B
2 INSURANCE SCHEDULE (STEWART)
3 Stewart shall provide proof of insurance, within thirty (30) days of the full execution of this Contract,
4 including a standard certificate of insurance, in at least the following amounts and coverage (combined
single limit permitted):
5
I. Coverage and Limits
6 Bodily Injury Property Damagc
7 Hazards Each Person Each Accident Each Accident
Automobile Liability
8 Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Hired Automobiles $ 500,000 $1,000,000 $ 500,000
9 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Workers' Compensation $ Statutory
i0 Employers' Liability $1,000,000 per employer
11
II. General and Professional Liability
12
General Liability $1,000,000 $2,000,000 $1,000,000
13 Premises Operations $1,000,000 $2,000,000 $1,000,000
14 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000
Independent Contractors .$1,000,000 $2,000,000 $1,000,000
15 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000
Contract Liability $1,000,000 $2,000,000 $1,000,000
16 Professional Liability $2,000,000 $2,000,000 $2,000,000
17 a. The general liability policy shall contain the following special endorsements which shall be noted on or
18 attached to the standard certificate of insurance:
19 1 • An endorsement naming the City of Vernon, its officers, and employees as additional insureds
under the policy.
20 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material
21 reduction of coverage.
3. An endorsement providing coverage for all operations under this Contract.
22 4. Such other endorsement as may be required by addendum hereto.
23 b. In addition to the standard certificate of insurance, proof of general and professional liability coverage
shall be furnished in the form checked below. Certification of the following proofs by the insurance
24 agent or broker will not be accepted:
ted:
25
X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and
26 statements in the standard certificate of insurance (attached thereto) are true and correct and that
27 the signator is an officer authorized to so certify.
28 — A copy of each policy certified by an officer of the underwriter or carrier and notarized.
EXHIBIT B
SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
Stewart & Stevenson
Attn: James Myers
215 Jason Court
Corona, CA 92879
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
June 13, 2001
Re: Equipment Purchase Agreement - Bid No. 1403
Dear James Myers:
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
STEVEN E. PARKER
Fire Chief
FAX: (323)`581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
In accordance with Section 6.H. of said agreement, you are to furnish
the City with proof of insurance as set forth in the Insurance
Schedule, Exhibit "B" of the agreement.
Please submit your proof of insurance to Joan Francone, Risk Manager,
for review and approval. Upon receipt of said documentation this
office will forward to you a fully executed copy of the original
agreement.
If you should have any questions please contact Joan Francone, at ext.
322.
Very truly yours,
Glo is J. osco
Chief Depu y City Clerk
GJO:ng
cc: Dolores Fonseca
Joan Francone -
Resolution File No. 7773
Agreement File No. 01-043