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Resolution No. 93031 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9303 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING THE PURCHASE OF ONE 2008 FORD ESCAPE HYBRID SPORT UTILITY VEHICLE BY JOINING ON THE STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES, PROCUREMENT DIVISION, CONTRACT NO. 1-07- 23-11 AWARDED TO HOBLIT MOTORS AND AUTHORIZING THE TERMINATION OF A LEASE AGREEMENT WITH TOYOTA LEASE TRUST WHEREAS, the State of California, Department of General Services, Procurement Division, has entered into Contract No. 1-07-23- 11 with Hoblit Motors for the provision of hybrid vehicles (2007 and 2008 model years) to local agencies (the "State Contract"); and WHEREAS, on March 19, 2007, the City Council of the City of Vernon adopted Resolution No. 9273 authorizing notice inviting sealed proposals or bids for the purchase of one 2008 Ford Escape Hybrid vehicle (the "Vehicle") for the Health & Environmental Control Department; and WHEREAS, subsequent to the adoption of Resolution No. 9273, but prior to the issuance of bids for the Vehicle, the Purchasing Section ascertained that, because of the extensive bidding processing already done by the State for hybrid vehicles, it was more economically feasible to join on the State Contract for the purchase of the Vehicle; and WHEREAS, on May 3, 2006, the City Council of the City of Vernon approved Resolution No. 9032 approving two Closed End Motor Vehicle Lease Extension Agreements (the "Lease Agreements") for two 2002 Toyota RAV 4 Electric Vehicles from July 16, 2006 to July 16, 2007; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 WHEREAS, the Director of Health & Environmental Control has recommended that following the purchase of the Vehicle that one of the IlLease Agreements be terminated; and WHEREAS, there is no longer a State mandate requiring municipalities to provide a percentage of clean air fuel vehicles in their fleet, there are no incentives or other funding available from State agencies for zero emission vehicles, Toyota is no longer manufacturing zero emission vehicles, and there is a concern about the future availability of parts as the City's electric vehicles are over five (5) years old; and WHEREAS, the City of Vernon has been given the opportunity to purchase the Vehicle from Hoblit Motors under Contract No. 1-07-23- 111; and WHEREAS, on April 24, 2007, the Finance Committee considered the recommendation of the Director of Finance that the Vehicle be purchased from Hoblit Motors (Commodity No. 2320-000-0045-2, Supplier No. 186026) at an approximate base cost of Twenty -Four Thousand Eighty Dollars and No Cents ($24,080.00) less vendor discount if payment is received within 20 days after delivery and plus tire fees, service charge, delivery charge and sales tax. 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 authorizes the Purchasing Agent, or her designee, to purchase one (1) 2008 Ford Escape Sport Utility Hybrid Vehicle ((Commodity No. 2320- - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 000-0045-2, Supplier No. 186026) from Hoblit Motors by issuance of a purchase order and authorizes the City Administrator, or his designee, to sign and deliver any and all documents necessary in connection therewith for, and on behalf of, the City of Vernon. SECTION 3: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to execute any documents or take any action deemed necessary after the purchase of the 2008 Ford Escape Hybrid vehicle to terminate one of the Lease Agreements to implement and carry out the purposes of this resolution. SECTION 4: Any resolutions or parts of resolutions not consistent with or in conflict with this resolution, specifically Resolution No. 9273, are hereby repealed. SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 7th day of May, 2007. IATTEST: ELA GIRON, City Clerk YEaKXRkgXX MMX NXXX HILARIO 'GONZALES,, :Mayor. -Pro-Tem - 3 - 1 2 3 4 5 6i 7, 8'' 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9303, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, May 7, 2007, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) ANUELA G ON, City Clerk - 4 - SUPPORTING DOCUMENTS lJU UVU 177L r. uu 1/uuu' ' r a A �. �o M E S SAGE ❑ ❑ ❑ ® ❑ ❑ ❑ ■ ❑ ❑ ® ❑ ❑ ❑ Fes=e>A= CITY OF VERNON FAX: 13238261433 From: Dwane Galatti Hoblit Fleet Group FAX: 530 666 7992 TEL : 530 666 7931 ❑ ■ ❑ ■ ❑ ■ ❑ ■ ❑ ■ ❑ mono ■ ❑ ■ ❑ ■ ❑ ■ ❑ ■ ❑ ■ ❑ ■ STATE HYBRID CONTRACT ITEM 12 F.O.B. LOS ANGELES IS $24,080.00 PLUS SALES TAX AND TIRE FEE ADD $15.00 TO DELIVER TO CITY OF VERNON. THIS VEHICLE IS A 2008 MODEL ON THE 2007 CONTRACT. 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O VA a-4 r-i � 2320-06BS-017R1 STATE OF CALIFORNIA Bid Specification Sport Utility Vehicle, Four Wheel Drive, 4 Door, Less than 10,000 Lb. GVWR 1.0 SCOPE This specification covers the State of California minimum requirements for four-wheel drive, 4-door, fully enclosed, sport utility vehicles having a Gross Vehicle Weight Rating (GVWR) less than 10,000- Ibs. These vehicles will be primarily used to transport people and cargo in the State of California on typical State highways and city/county roads and shall be designed to operate under typical ambient temperatures and weather conditions encountered in the State. 2.0 CLASSIFICATION Sport utility vehicles shall be grouped as follows. Only vehicles identified.and published by the U.S. Environmental Protection Agency as a sport -utility vehicle in their "Fuel Economy Guide" are acceptable. All table values are listed as minimums unless otherwise specified. Vehicles offered must meet or exceed these values as established by group. Group 1 Group II Group III Sport Utility (4x4) (Small) (Mid Size) (Full Size) Wheelbase 103" 109" 116" Seating Capacity 4 5 5 Engine Horsepower N/A N/A N/A # Cylinders 4 6 8 Curb Weight 3,300-lb. 4,200-lb. 5,000-lb. GVWR 4,450-lb. 5,400-lb. 6,600-lb. Towing Package No No Yes N/A — Not Applicable 3.0 APPLICABLE SPECIFICATIONS Specifications and standards referenced in this document in effect on the opening of the Invitation for Bid form a part of this specification where referenced. Each vehicle delivered shall be fully compliant with all Federal and State regulations for sport utility vehicles in effect as of the date of manufacture. 3.1 Safety: Each vehicle delivered shall conform to the Federal Motor Vehicle Safety Standards (FMVSS) and the California Vehicle Code (CVC) requirements for sport utility vehicles in effect as of the date of manufacture. 3.2 Emission Control: Vehicles having a GVWR of 8,500 lbs. or less shall meet or exceed the Ultra -Low Emission Vehicle 1 (ULEV 1) requirements for sport utility vehicles as established by the California Air Resources Board (CARB) as of the date of bid opening. Clinton, A Page 1 of 4 September, 2006 1062320 2006 Fleet Utility 2310-06BS-002 r 2 STATE OF CALIFORNIA Bid Specification Hybrid -Electric Vehicle 1.0 SCOPE This specification supplements the series of specifications for Automobiles, Passenger, 4-Door, Light Truck, Pickup Body, 4x2 and 44, Less than 10,000-lb. GVWR, Sport Utility Vehicle, Four Wheel Drive, 4 Door, Less than 10,000-lb. GVWR. This specification is intended only to describe the unique requirements of the fuel system and its related equipment and performance as they relate to hybrid -electric vehicles powered by a gasoline -fueled internal combustion engine with electric motor power assist. Please refer to the standard. specifications for general requirements of the base vehicle. 2.0 CLASSIFICATION The classifications used are consistent with those published by the U.S. Environmental Protection Agency in their"Fuel Economy Guide." Vehicles shall meet the minimum criteria pertaining to passenger and cargo volume, and number of passengers as specified below: Passenger Number of And Cargo Classification Passengers Volume (cu. ft.) Compact 5 101 Midsize 5 112-114 Sport Utility Vehicle 5 N/A Standard Pickup Truck 3 N/A 2.0 SPECIFICATIONS AND STANDARDS Areas where the hybrid -electric power systems impact the standard specifications (for gasoline/diesel fueled vehicles) may be waived for this contract. This includes such things as: gross vehicle weight rating, payload, engine displacement, emission rating, cargo volume and others directly affected by the fuel system modifications. The bidder may be required to substantiate the reasons for downgrading the base requirement. The base vehicle shall comply with all other specifications and be of the size and type indicated for each line item in the solicitation. The bidder shall clearly indicate, as part of his bid, any requirement of the standard specifications the vehicle does not meet. if the manufacturer does not manufacture a hybrid vehicle with the specified component, an alternative component may be acceptable (e.g. leather seats offered in lieu of cloth seats when vehicle not manufactured with cloth seats). The bidder may be required to substantiate the reason for the offer of an alternative component Clinton, A Page 1 of 2 July, 2006 1062310 2006 Fleet Hybrid Electric Vehicle 2320-06BS-017R1 inch receiver type hitch and a 7-wire, trailer electrical harness. The hitch shall be rated as a minimum SAE class II for small (group 1) utility vehicles and SAE class III for mid -size and full size, and (groups II — III) utility vehicles. A receiver insert, ball, and trailer electrical plug are not required. 4.11 Fuel Tank: Each vehicle shall be equipped with the manufacturer's standard fuel tank. 4.12 Air Conditioning: Each vehicle shall be equipped with the manufacturer's standard, factory installed, CFC free, dehumidifying/all weather air -conditioner. The air conditioning system shall include, but shall not be limited to, necessary insulation, increased engine cooling capacity, including recovery system, plus increased alternator and battery capacity. Vehicles ordered with a third row rear seat shall also be equipped with rear air conditioning system as available from the manufacturer. 4.13 Body/Cab: The basic vehicle body shall be manufacturer's standard, 4-door, fully enclosed, utility type body with a hard top. Each vehicle shall incorporate the manufacturer's standard rear door, hatch, or gate. Full size sport utilities (groups III) shall be equipped with rear panel type doors, if available. Driver and front passenger seat shall be high -back bucket style with integral head restraints not less than 27.5" above the seating reference point as specified in FMVSS 571.202, or seats shall have head restraint. A second row, bench style seat is required for all groups. A third row seat may be ordered as an option if available from the manufacturer. 4.14 Exterior Color: The exterior color shall be the manufacturer's standard production colors. Individual vehicle color may vary and should be specified on the purchase order. If the exterior color is not specified, the ordering dealer shall contact the purchase order provider and verify the vehicle color being requested. 4.15 Interior/Seat Upholstery: The interior color shall be the manufacturer's standard color supplied with the exterior color specified on the order. Seat upholstery shall be all cloth. Vehicles ordered with a third row "jump" seat may be equipped with a vinyl jump seat if cloth is not available. 4.16 Miscellaneous Equipment: The following items, supplementing if necessary those items already cataloged as standard equipment, shall be furnished and in place. • Multi -speed fresh air ventilator with heater and windshield defogger system. • Seat belts for all seating positions. • Full floor covering. • Sun visors for both driver and passenger positions. • Dome light, activated by each door. • Inside hood release. • Right and left side exterior rear view mirrors shall be manufacturer's standard break -a -way or fold - a -way type. • Rear window defroster. • Manufacturer's standard AM/FM radio with antenna. • Intermittent, multi -speed windshield wipers with washers. • Tilt steering. • Inside rearview mirror, day/night. • Standard tool kit including wheel -changing tools and jack adequate to safely lift the vehicle when loaded to rated capacity. • Owner's Manual. • Warranty certificate and/or card. Clinton, A Page 3 of 4 September, 2006 1062320 2006 Fleet Utility STATE OF CALIFORNIA DEPARTWNf OF GENERAL SERVICES - PROCUREMENT DIVISION CONTRACT NOTIFICATION ""'MANDATORY ""' CONTRACT NUMBER: 1-07-23-11 DESCRIPTION: HYBRID VEHICLES (2007 MODEL YEAR) CONTRACTOR: . VARIOUS EFFECTIVE DATES: 1/ 4/2007 THROUGH END OF THE 2007 MODEL YEAR SUPERSEDES CONTRACT NO.: NONE AREA: STATEWIDE DISTRIBUTION: STATE & LOCAL AGENCIES * TAX: Add appropriate sales and use tax. Exempt from Federal Excise Tax. j • *Food contracts are tax exempt. RITA HAMILTON, Deputy Director Use of this agreement by all agencies is mandatory with monetary exceptions stated herein or contained in State Administrative Manual. To obtain assistance or report non-compliance by supplier, or for any suggestions or recommendations write: Department of General Services, Procurement Division, P.O. Box 989054, W. Sacramento, CA 95798-9054, or call: Contract Administrator, JEFF JONES 916-375-4434, CALNET 4W4434 STATE OF CALIFORNIA page 3 DEPARTMENT OF GENERAL SERVICES PROCUREMENT DIVISION Contract (Mandatory): 1-07-23-11 PRICE: All prices are maximum for the contract period, subject to the State receiving full benefit of all manufacturer price declines effective on the date of manufacturer's general public announcement. All prices are FOB destination zone (city). Prices are exclusive of Federal Excise Tax. DELIVERY: Within 150 days after receipt of order by the dealer. FOB POINT: The dealer is required to deliver vehicles to agencies located in the area in which they receive an award. Deliveries to agencies located outside of the area will be FOB the dealer's location in the area shown on the bid. For agencies located outside of the area, the preferred method of delivery is to pick up the vehicles from the dealer. If this is not possible, the agency may request to have the vehicles shipped FOB the delivery area. If the release order indicates a delivery location other than the FOB point, the dealer will deliver the vehicle and show the delivery charge as a separate item on the invoice. "Area" for the purpose of this contract is defined as the city limits for the city identified as the FOB point. This applies to all State agencies and California local agencies. State agencies requesting delivery outside the F.O.B. area must contact the Office of Transportation Management for freight rate comparisons if the dealer is delivering the vehicle. These delivery instructions will be provided on the purchase order (Std. 65). Dealers receiving a purchase order without specific transportation instructions must contact the ordering agency. Local agencies requesting delivery outside the F.O.B. area will make their own delivery arrangements. ORDERING PROCEDURE: State and local agencies may now order vehicles directly from contract dealers for the appropriate FOB point. (1) The vehicle can be a standard contract vehicle or a contract vehicle with modifications or additional options. (2) State agencies may order direct from the dealer and must use a Contract/ Delegation Purchase Order (STD 65) listing all model changes, options and/or deletions. (3) Contract/Delegation Orders (STD 65) must be sent to DGS/Fleet Administration Division for approval Prior to sending them to the dealer. After approval, orders will be returned to the originating agency, who then forwards the orders to the appropriate contract dealer's): (4) Local agencies will submit a purchase order directly to the contract dealership. Immediately after release of the order to the dealer, a copy must be forwarded to Procurement Division/Master Contracts. DGS Procurement Division will then invoice for the_1.98% service charge for use of the contract. The service charge is based on the purchase order total before tax or cash discounts, with a maximum charge of 0500.00 for all orders. (5) For both State and Local Agency purchase orders, the order must indicate the agency's State Bill Code Number. Orders without the State Bill Code Number will not be processed until the State Bill Code Number is obtained. To confirm or request a State Bill Code Number, State agencies should contact their accounting offices. Local agencies may contact DGS Procurement Division via e-mailat Marilyn.Ebert@dgs.ca.gov and Wilson.Lee@dgs.ca.gov. The complete name and address of the agency should be provided along with a billing contact name and phone number in the e-mail. STATE OF CALIFORNIA page 5 DEPARTMENT OF GENERAL SERVICES PROCUREMENT DIVISION Contract (Mandatory): 1-07-23-11 INSPECTION: State agency vehicles will be inspected for compliance by a Department of General Services Inspector of Automotive Equipment at the dealer's place of business prior to delivery. It will be the responsibility of the dealer to ask for inspection when vehicle is ready for delivery. Local agencies will be responsible for inspecting their vehicles prior to accepting delivery. Inspection will be at dealer's delivery location or delivery point, as requested by the agency. Vehicles shall be delivered to the accepting agency within two (2) working days of inspection acceptance. The State Department of General Services, Fleet Administration Division, has an inspection service available for those who require it. You may call Fleet Administration Division at (916) 657-2335 for further information. DOCUMENTS: The following must be delivered with the vehicle when the.unit is offered to the receiving agency for acceptance: 1. Inspection Report 2. Predelivery Checklist 3. Copy of Purchase Order CASH DISCOUNTS: Cash discounts for prompt payment may be taken only if payment is made within the number of days shown after receipt of the vehicle or a properly prepared invoice, whichever is later. Invoices that do not reflect the cash discount should be returned to the dealer immediately for correction. Note that the dollar discounts shown are per vehicle, not per order. For this contract, cash discount time will be defined by the State as beginning only after the vehicle has been inspected, delivered, and accepted by the receiving agency. Normally, acceptance will be accomplished within twenty (20) normal business working hours after vehicles are delivered. INVOICING REQUIREMENTS: The dealer is to render invoices as instructed on individual purchase orders. Invoices shall include the purchase order number, the contract number, the unit price, extension,,,and any cash discount offered. State sales tax is to be shown as a separate item on the invoice. Invoices omitting any of the above,items shall be returned for correction and resubmittal. Sales tax is to be computed on the net price. The Report of Sale shall be submitted to the receiving agency, if possible, upon receipt of the Vehicle Identification Number (VIN). tE LJ d Q� zy Oi J ogo y Q�> U0 GL F- oLu2 wmw QQo waCL W W W w a a a U a, z a a a 0 0 0 0 U w > a E-H H E + Q z z z z cn U U U �+ O O O H a a a z A x H x H x H x w W m �o -aO O r h N N v z Un co ko cV I;r co p OD co ao ci o 0 0 z� o 0 0 C¢ �y o O 0 O 0 C) Q O r a% O I O1 O I 0) O �.� O, rn rn �a U� o N 0 N 0 N f*7 M m N N N Ew- z q4l LO GENERAL TERMS AND CONDITIONS OF PURCHASE (CITY OF VERNON AS BUYER) 1. GENERAL. By signing and delivering this purchase agreement to the City of Vernon ("Buyer"), Seller hereby agrees that Buyer has ordered products from Seller on the terms and conditions set forth herein. The general terms and conditions contained herein shall supersede and prevail over all other terms and conditions of the Seller, unless waived, altered, or modified, in writing by Buyer. Any subsequent, additional, or different terms or conditions provided by Seller shall be deemed an automatic rejection of this agreement of purchase and shall terminate the order upon receipt by Buyer's election. Any variance in the description, quantity, price or delivery schedule of products purchased by Buyer must be in writing and signed by an authorized representative of Buyer. Acceptance shall be deemed effective upon receipt by Buyer of written notification of acceptance by Setter, commencement of work on the product by Seller, confirmation of acceptance by Buyer, or forty-eight (48) hours after Buyer transmits the purchase order to Seller by facsimile or by overnight delivery service or seventy-two (72) hours after the purchase order is posted in the United States mail, regular postage prepaid by Buyer, provided there is no rejection by Seller within said 48-hour period or 72-hour period, as the case may be. 2. TERMINATION. Buyer reserves the right to terminate this order at any time prior to acceptance. Thereafter. Buyer reserves the right to terminate this order and Seller agrees that Buyer shall be liable only for costs of materials actually used. All partially completed work in progress, art work, technical information, engineering, specifications and all other materials, information or technology relative to any order provided by Buyer shall remain and at all times be the property of Buyer and may not be disseminated, sold or liquidated to any other person, party or entity without prior written approval by Buyer. Buyer may terminate any order for cause, which cause shall include: Seller's failure to ship by delivery date scheduled, bankruptcy, assignment for the benefit of creditors, extension agreement of moratorium with Seller's creditors, failure to satisfy a levy or lien within five business days, or any proposed variance in the terms by Seller with respect to quantity, price or delivery schedule. Seller shall be liable to Buyer for any damage or harm suffered as a result of any such cause or termination of order and shall indemnify and hold Buyer harmless from and against any loss or damage incurred by Buyer's customers as a result of any such cause or termination of order. 3. DELIVERY. Delivery shall be made in accordance with the terms and conditions set forth on this purchase order. Any increased transportation costs incurred as a result of Seller's branch shall be the sole and exclusive responsibility of Seller. Additional charges must be approved prior to shipment in writing by Buyer. All products delivered by Seller must be delivered in not less than industry standard packing for the type of shipment intended. Seller shall deliver the product at the Buyer, F.O.B. Job Site. Seller is responsible for all costs of full freight, including insurance, to Job Site. Risk of loss shall pass to the Buyer upon delivery F.O.B. Job Site. 4. INSPECTION AND CONFORMITY. Seller agrees that Buyer shall have a commercially reasonable time to inspect all products received from Seller. Failure to inspect shall not relieve Seller of any warranties expressed or implied, including but not limited to warranty of fitness for the use intended. The right is reserved to reject and return at the risk and expense of the Seller such portion of any shipment which may be defective or fail to comply with specifications without invalidating the remainder of the order. Rejected material will be held for disposition at the expense and risk of the Seller. 5. WARRANTIES. In addition to expressed warranties made by Seller with respect to products, including description of the products, affirmation of the facts or promises made by Seller relating to the products, or sample or models used in the preparation of the products, or in negotiation for this purchase, Seller warrants that the products to be furnished hereunder will conform in all respects to any descriptions and specifications set forth in this order, will be merchantable, and will be free from defects. If Seller knows or has reason to know the particular purpose for which Buyer or its assignee intends to use the products, Seller warrants the products will be fit for such particular use and purpose. Seller shall indemnify and hold Buyer harmless relative to any breach of these warranties with no limitations on Buyer's remedies and Seller's documents shall not operate to reduce or otherwise affect the effectiveness, enforceability or coverage of such indemnity. Seller shall extend all warranties it receives from its vendors to Buyer, and Seller's warranty shall extend to Buyer's customers. This warranty is in addition to all warranties provided under the law. B. FORCE MAJEURE. Buyer may delay delivery or acceptance of the products in the event of any unforeseen event. Seller shall hold the products pending Buyer's direction, and Buyer shall be liable only for direct increased cost incurred by Seller by reason of Buyer's instructions. 7. LIMITATION OF BUYER'S LIABILITY. In no event shall Buyer be liable for anticipated profits or for incidental or consequential damages. Buyer's liability on any kind of claim for any loss or damage arising out of, in connection with, or resulting from this agreement, shall in no case exceed the price allocable to the products or unit thereof which gives rise to the claim. Buyer shall not be liable for penalties of any description. 8. ARBITRATION. This Agreement shall be governed by the laws of the State of California. The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. The parties agree that any and all disputes arising out of or in relation to this Agreement, including without limitation any action in tort, shall be resolved exclusively, finally and conclusively by arbitration in Los Angeles County, California under the auspices of and pursuant to the rules of the Judicial Arbitration & Mediation Services Inc. (JAMS). The arbitrator will make the final decision. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the parties. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief. Any and all contracts between -Seller and any subcontractor shall include the same arbitration clause. 9. WAIVER/SEVERABILITY. The terms and conditions of sale as set forth on this page, constitute the entire agreement, and supersede any prior agreement, whether oral or written, between the parties with respect to the subject matter hereof. Buyer's failure to insist on performance of any of the terms or conditions herein or to exercise any right or privilege or Buyer's waiver of any breach hereunder shall not thereafter waive any other terms, conditions, or privileges, whether of the same or similar type. If any provision or application of this agreement is held illegal or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect, and this agreement shall be construed as if the illegal or unenforceable provision or application had never been contained herein or prescribed hereby. 10. INDEMNIFICATION. To the fullest extent permitted by law, Seller shall defend, indemnify and hold harmless Buyer and its elected officials, officers, agents and employees from all claims, suits, actions, demands, damages, liabilities, expenses, judgments, settlements and penalties, losses, fines, and all costs and expenses incurred in connection therewith, including reasonable attorneys' fees and all costs of defense, arising out of or attributable to the negligent or wrongful acts of Seller or its subcontractors, employees or agents in the performance of the work or delivery of products under this agreement, except to the extent arising from or caused by the sole negligence or willful misconduct of the Buyer, its officers, agents or employees. The terms of this indemnity shall survive the termination of this agreement. The obligations in this paragraph are in addition to Seller's duty to provide insurance and shall not be limited by any limitation on the amount or type of insurance coverage carried by Seller. 11. INSURANCE. Seller agrees to provide insurance in the amounts and forms as determined by the Risk Manager. Comparable coverage shall be provided for each subcontractor used in the performance of this agreement. Seller shall submit to Buyer documentation indicating compliance with these requirements not less than one (1) day prior to the beginning of performance under this agreement. Seller shall not commence performance of its work under this agreement until the insurance has been obtained and proof of insurance has been filed with and approved by the Buyer. Seller shall not permit a subcontractor or vendor to perform work on Buyer's premises unless and until a certificate of insurance is obtained showing that such subcontractor or vendor has workers compensation coverage. If Seller employs subcontractors as part of the services rendered, Seller's protective coverage is required. Seller may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth by the Risk Management Department. 12. CONDITIONS OF PURCHASE. Seller shall include the Purchase Order Number on all invoices, shipping tags, and any correspondence regarding this order. Seller shall render invoices in duplicate, promptly following shipment. Invoices must include only items shown on this order. In event any item included on this order is not delivered, please notify the Purchasing Department at once of the reason for delay and the date the item will be delivered. Do not include any item which is back ordered on your invoice. Buyer will not accept changes for any packaging, reels, drums, etc., unless such charges are specified on the order. Seller shall certify that all equipment, materials, and services comply with all Cal OSHA standards and regulations and all applicable government laws and orders. This purchase order is subject to California State and local sales taxes but exempt from federal tax, a Certificate of Exemption will be furnished upon request. CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: June 12,'2007 TO: Lewis Pozzebon, Director of Environmental Health FROM Nelly Giron, City Clerk RE: Resolution No.9303 - A Resolution of the City Council of the City of Vernon Authorizing the Purchase of One 2008 Ford Escape Hybrid Sport Utility Vehicle by Joining on the State of California, Department of General Services, Procurement Division, Contract No. 1-07-23-11 Awarded to Hoblit Motors and Authorizing the Termination of a Lease Agreement with Toyota Lease Trust Transmitted herewith is a copy of Resolution No. 9303 referenced above, which was approved by City Council on May 7, 2007, and a copy of State Contract No. 1-07-23-11. Thank you. NG:dr c: Dolores Jaunzemis Resolution No. 9303 Agreement No. 07-047