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TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Len Gorecki, Assistant City Manager/Director of Public Works Wangsu Lee, Management Analyst
SUBJECT: Consideration and possible action to authorize City Manager to execute Amendment No. 1 to Agreement File No. 553.2, in a form approved by the City Attorney, with First Vehicle Services, Inc. to extend the term.
DATE: November 27, 2023
EXECUTIVE SUMMARY
This action would authorize the City Manager to execute Amendment No. 1 to Agreement File No. 553.2 with First Vehicle Services, Inc. (“Contractor”) to amend the term of the Agreement to November 13, 2018, through November 12, 2024, with the option to extend up to two (2) successive one-year terms.
RECOMMENDATION TO CITY COUNCIL
2) Authorize the City Manager to execute Amendment No. 1 to Agreement file No. 553.2, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Amendment No. 1 to Agreement File No. 553.2 will increase the annual maximum contract cost by $12,241.79, to a total not-to-exceed amount of $257,077.58. Funds for the maintenance and repair services for the City’s fleet vehicles and equipment are budgeted in Account Nos. 010-42054-3100 and 100-42054-3520.
DISCUSSION
On November 13, 2018, the City entered into Agreement File No. 553.2 with First Vehicle Services, Inc. for maintenance and repair services for the City’s fleet vehicles and equipment. Agreement File No. 553.2 was for a three (3) year term with the option to extend up to two (2) successive one-year terms. As the current agreement between City and Contractor is set to expire, Amendment No. 1 to Agreement File No. 553.2 will amend the term of the Agreement from November 13, 2018, through November 12, 2024, with the option to extend up to two (2) successive one-year terms. Annual rate increases will be implemented based on guidelines set forth in the Agreement.
ATTACHMENT:
Amendment No. 1 to Agreement File No. 553.2 .............................................................. 2 -1-
AMENDMENT NO. 1 TO
AGREEMENT FILE NO. 553.2 BETWEEN
THE CITY OF BELLFLOWER AND
FIRST VEHICLE SERVICES, INC.
FOR MAINTENANCE AND REPAIR SERVICES FOR THE CITY’S
FLEET VEHICLES AND EQUIPMENT
THIS AMENDMENT No. 1 (“Amendment”) is made and entered into this 27th day of November 2023, by and between the CITY OF BELLFLOWER, a general law city and municipal corporation (“CITY”), and FIRST VEHICLE SERVICES, INC. a California corporation (“CONTRACTOR”).
SECTION 1. Pursuant to Section 3 of Exhibit A (“CHANGES”) of Agreement File No. 553.2 (“Agreement”), Section 1 of Exhibit B (“STATEMENT OF WORK”) and Section 8 of Exhibit A (“PAYMENT”) are amended to read as follows:
“1. STATEMENT OF WORK. The term of this Agreement will be from November 13, 2018, to November 12, 2024. This Agreement will automatically renew up to (2) successive one-year terms under the same terms and conditions unless sooner terminated by either party as specified in the Agreement. The CONTRACTOR will provide scheduled preventative maintenance as stated herein, remedial repairs, towing, parts acquisition, inventory and management and other associated fleet management services required to ensure the continuity of effective and economical operation of City vehicles and equipment listed in Exhibit F and G.
Minor work which may not be specifically mentioned, but which may be reasonably assumed as necessary for completion of this work, will be performed by the CONTRACTOR as if described in this document or sections mentioned.”
“8. PAYMENT. CITY will pay CONTRACTOR after receiving acceptable invoices for materials and supplies delivered and accepted or services rendered and accepted. City will not pay cartage, shipping, packaging, or boxing expenses unless specified in this order. Drafts will not be honored. As additional consideration, CITY agrees to pay CONTRACTOR for CONTRACTOR’s services a sum not to exceed $257,077.58. CITY may modify this amount as set forth below.
Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit “C” which is incorporated by reference.”
SECTION 2. Exhibit C (“FEE SCHEDULE”) of the Agreement is replaced with the attached Exhibit “C,” which is incorporated by reference.
SECTION 3. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
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City of Bellflower
Agreement File No. 553.2 - Amendment No. 1
First Vehicle Services, Inc.
SECTION 4. SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
SECTION 5. Except as modified by this Amendment, all other terms, and conditions of Agreement File No. 553.2 remain the same.
IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF BELLFLOWER FIRST VEHICLE SERVICES, INC.
_________________________________ ____________________________ Jeffrey L. Stewart, City Manager George Cavelle, Regional Vice-President
ATTEST:
_____________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
_________________________________
Karl H. Berger, City Attorney
Taxpayer ID No. 20-0441528
Attachment:
Exhibit C – Fee Schedule
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EXHIBIT C
FIRST VEHICLE SERVICES, INC.
FEE SCHEDULE FOR FLEET AND EQUIPMENT REPAIR AND MAINTENANCE
SERVICES
“The term of the Agreement is from November 13, 2018 – November 12, 2024, with the option for two (2) successive one-year automatic renewals. Line item “A” constitutes the fixed fee for the Scope of Services Outlined in the Agreement. Line items 5-8 below will be charged separately to the City and are not included in the CONTRACTOR’s proposed fixed annual cost. The annual cost for the fiscal year 2023-2024 is a fixed cost as listed below. If additional optional years are granted, as stated in Section 1, any cost adjustment will be based on the change in the Consumer Price Index, All Urban Consumers Price Index (CPI-U), Transportation, Motor Vehicle Maintenance and Repair category in the Los Angeles, Riverside, and Orange Counties for the prior year and shall not exceed 5% under any circumstances.”
CONTRACTOR to be compensated in accordance with the fee schedule listed below:
Cost Item Annual Cost
1. Personnel Costs $107,781.99
2. Parts/Fluids/Supplies $73,102.28
3. Overhead Expenses $22,397.96
4. Administrative Costs and
Management Fees
$47,683.30
A. Total Fixed Annual Cost Proposal $250,965.53
Additional Costs Annual Cost
5. Capital Expenditures -
6. Outsourced Services $6,112.05
7. Extra Work/ Extraordinary Costs &
Repairs
-
8. Additional Reimbursable Items -
B. Total estimated Additional Costs $6,112.05
Hourly Non-Contract Labor Rate - $34.11/Hour
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