Cities Index.
Purchase and Sale Contract

Emeryville City Council
June 18, 2024

Document
Purchase and Sale Contract
Meeting
June 18, 2024
Body
Emeryville City Council
Pages
13
Original file
541 KB
Text extracted from the city's file for reading and search. Open the original on emeryville.legistar1.com. That file is the official record.

CALIFORNIA

PURCHASE AND SALE CONTRACT BETWEEN CITY OF

EMERYVILLE AND GOLDEN STATE FIRE APPARATUS

FOR CITY USE ONLY
Contract No. CIP No.

Resolution No. Project No. REV02/2024
THIS PURCHASE AND SALE CONTRACT (“Contract”) is entered by and between THE CITY OF EMERYVILLE, a municipal corporation, (“City”) and GOLDEN STATE FIRE APPARATUS INC., a California corporation (“Seller” or “GSFA”), individually referred to as a “Party” and collectively as the “Parties”. This Contract shall be effective on the date it becomes fully executed by the Parties hereto (“Effective Date”).

WITNESSETH THAT
WHEREAS, the City desires to purchase from GSFA, and GSFA desires to sell to the City, two (2) Pierce Manufacturing, Inc. Enforcer 1500 GPM Type 1 Engines; and WHEREAS, the City finds that GSFA possesses specialized knowledge, skills, and experience as a supplier of fire apparatus and equipment to local agencies in Central and Northern California, and such knowledge, skills, and experience are necessary to carry out the obligations contemplated under this Contract; and WHEREAS, the City has determined that GSFA also specializes in the sales of fire apparatus and equipment manufactured by Pierce Manufacturing, Inc.; and WHEREAS, the City has determined that the products and services contemplated in this Contract are only available from a single source; and WHEREAS, the public interest will be served by this Contract; and NOW, THEREFORE, the Parties hereto do mutually agree as follows:

1. PRODUCT DESCRIPTION, PURCHASE AND SALE OF PRODUCTS, AND

TERMINATION DATE

1.1 Description of Products, Warranties, and Dealer Supplied Products/Services
The City shall purchase from GSFA, and GSFA shall sell to the City, two (2) Pierce Manufacturing, Inc. Enforcer 1500 GPM Type 1 Engines (the “Products”), as described in the Proposal, attached hereto as Exhibit A. The Products shall conform to the Product Specifications in Exhibit B of the Proposal. Warranties for the Products are set forth and shall be governed by Exhibit C of the Proposal. Dealer Supplied Products/Services are identified and defined by Exhibit D of the Proposal. The Proposal and the exhibits attached thereto are incorporated by reference. There shall be no substitutions of products or services without the prior written authorization of the City. 












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1.2 Purchase and Sale
The City’s purchase, and GSFA’s sale, of the Products shall be subject to and governed by the terms, conditions, and specifications set forth herein, and the terms, conditions, and specifications in the Proposal, attached hereto as Exhibit A, which is incorporated by reference. To the extent there is a conflict between the Proposal, and the terms, conditions, and specifications set forth herein, the terms, conditions, and specifications set forth herein shall govern.

1.3 Termination Date
The termination date of this Contract shall be the earlier of twelve (12) months after the delivery or pick up of the Products or five (5) years from the Effective Date.

2. CHANGE ORDERS

2.1 Change Orders
The City reserves the right to order changes in the Products (“Change Order”) by altering, adding to or deducting from the Proposal. All such changes shall be incorporated in amendments executed by GSFA and the City. Such amendments shall specify the changes ordered and any necessary adjustment of compensation and completion time and shall comply with the requirements in Section 8.a of the Proposal.

The City shall be responsible for any balance due as a result of any Change Order so long as the Maximum Amount allowed to be paid under this Contract, as set forth and defined in Section 3.2 below is not exceeded. For any Change Order that will cause the amount paid by the City to GSFA to exceed the Maximum Amount, GSFA will notify the City in writing and the Parties shall negotiate in good faith to determine responsibility for the amount in excess of the Maximum Amount. The City may increase the Maximum Amount subject to approval by Emeryville City Council and memorialization in a written amendment executed by both Parties. GSFA shall not implement such Change Order until the City has approved the increase to the Maximum Amount and the Parties have executed an amendment reflecting same.

2.2 Additions or Changes
Any additions or changes to this Contract or to the Proposal shall be by an amendment executed under all the applicable conditions of this Contract. No claim for additional compensation or extension of time shall be recognized unless contained in an amendment duly executed on behalf of the City and the Seller.

2.3 City Manager Execution
The City Manager has authority to execute without further action of the Emeryville City Council, any number of amendments so long as their total effect does not materially alter the terms of this Contract or exceed the Maximum Amount, as set forth and defined in Section 3.2 below.













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3. PURCHASE PRICE AND MAXIMUM AMOUNT OF COMPENSATION

3.1 Purchase Price
The purchase price for the Products shall be TWO MILLION THREE HUNDRED TWENTY FIVE THOUSAND ONE HUNDRED FOUR DOLLARS and no/100 DOLLARS ($2,325,104.00) (“Purchase Price”). Such Purchase Price includes all applicable discounts, sales taxes, fees, and bonds. The Purchase Price may be subject to adjustments or updates as set forth in Section 3.2 below.

The City agrees to pay the Purchase Price to GSFA for the Products no later than the time of delivery or pickup of the Products. All invoices for payment must be transmitted to the City no later than (20) twenty calendar days before the time of delivery or pickup.

The Purchase Price is payable in U.S. dollars.

3.2 Maximum Compensation Amount and Adjustments
The Maximum Amount allowed to be paid under this Contract is TWO MILLION THREE HUNDRED EIGHTY-FIVE THOUSAND DOLLARS AND NO CENTS ($2,385,000.00).

The City’s payment(s) to GSFA under this Contract shall not exceed the Maximum Amount.

The Parties acknowledge and agree if the Producer Price Index of Components for Manufacturing [www.bls.gov Series ID: WPUID6112] (“PPI”) has increased at a compounded annual growth rate of five percent (5.0%) or more, as measured between the month Pierce Manufacturing, Inc. accepts the order for the Products (“Order Month”) and the month that is fourteen (14) months prior to the then-current estimated Product completion date (“Evaluation Month”), then the Purchase Price may be updated in an amount equal to the increase in PPI over 5.0% for each year or fractional year between the Order Month and the Evaluation Month. GSFA shall document any such updated price for the City’s written approval before proceeding and provide an option to the City to cancel its order for the Products and terminate this Contract.

The City shall be responsible for the cost of state sales tax associated with, or attributable to, the Products. The taxes stated in the Proposal are subject to adjustment for the applicable state sales tax rate in effect at the time of delivery. Therefore, the sales tax set forth on the Proposal is only an estimate of such taxes and will be increased or decreased at the time of delivery if a change in the applicable sales tax rate has occurred, in which case the City shall pay GSFA (or be refunded by GSFA) the difference in the applicable sales tax.

For any increase or adjustment that will cause the amount paid by the City to GSFA to exceed the Maximum Amount, GSFA will notify the City in writing. The City may increase the Maximum Amount subject to approval by Emeryville City Council and memorialization in a written amendment executed by both Parties. 












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4. COVENANTS OF SELLER

4.1 Indemnification
To the fullest extent permitted by law, Seller shall indemnify, defend, and hold harmless City and City’s members, officers, agents, employees and volunteers, from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including without limitation injury to or death of an employee of Seller or subcontractors as well as any claim by any employee, agent, or independent contractor hired or employed by Seller that such persons or individuals are entitled to any benefit otherwise provided to employees of the City, including coverage under the California Public Employee Retirement System), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, reasonable attorneys’ fees, litigation expenses, and fees of expert contractors or expert witnesses (“Damages”) incurred in connection therewith and the costs of investigation, arising out of, pertaining to, or relating to, directly or indirectly, in whole or in part, GSFA’s breach of the Contract and/or the negligence, recklessness, or willful misconduct of GSFA, any subcontractor, anyone directly or indirectly employed by them or anyone that they control. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Seller.

If Seller’s obligation to defend, indemnify, and/or hold harmless arises out of Seller’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Seller’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Seller, and, upon Seller obtaining a final adjudication by a court of competent jurisdiction, Seller’s liability for such claim, including the cost to defend, shall not exceed the Seller’s proportionate percentage of fault.

The City shall indemnify, defend, and hold harmless GSFA, its agents, servants, successors and assigns from and against any Damages to the extent such Damages arise out of or in connection with: (i) the City’s breach of the Contract, or (ii) the City’s use, storage, or operation of the Products following delivery, regardless of where, how, and by whom operated (excluding any negligent operation by GSFA).

The indemnification and assumptions of liability and obligations herein provided shall continue in full force and effect notwithstanding the termination of the Contract, whether by expiration of time, by operation of law or otherwise. This Section is not intended to and shall not constitute the exclusive remedy of the Parties under the Contract; the Parties may seek indemnity from one another under other legal principles, whether based in equity or law, so long as they do not nullify or cancel the effects of this Section. 












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4.2 Independent Contractor
The Seller hereby covenants and declares that it is engaged in an independent business and agrees to perform its obligations under this Contract as an independent contractor and not as the agent or employee of the City. The Seller agrees to be solely responsible for its own matters relating to the time and place its obligations are performed; the instrumentalities, tools, supplies and/or materials necessary to complete its obligations; hiring of contractors, agents or employees to complete its obligations; and the payment of employees, including compliance with Social Security, withholding and all other regulations governing such matters. The Seller agrees to be solely responsible for its own acts and those of its subordinates and employees during the term of this Contract. Nothing herein shall be construed to create a partnership or joint venture between the City and Seller.

4.3 Insurance
Seller shall not perform any of its obligations under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under Exhibit B: “Product Specifications” of the Proposal, attached hereto and incorporated herein by reference.

4.4 Records, Reports and Audits

4.4.1 Records

1. Records shall be established and maintained by the Seller in accordance with requirements prescribed by the City with respect to all matters covered by this Contract. Except as otherwise authorized, such records shall be maintained for a period of three years from the date that final payment is made under this Contract.

Furthermore, records that are the subject of audit findings shall be retained for three years or until such audit findings have been resolved, whichever is later.

2. All costs shall be supported by properly executed payrolls, time records, invoices, contracts, or vouchers, or other official documentation evidencing in proper detail the nature and propriety of the charges. All checks, payrolls, invoices, contracts, vouchers, orders or other accounting documents pertaining in whole or in part to this Contract shall be clearly identified and readily accessible.

4.4.2 Reports and Information
Upon request, the Seller shall furnish to the City any and all statements, records, reports, data and information related to matters covered by this Contract in the form requested by the City.













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4.4.3 Audits and Inspections
At any time during normal business hours and as often as the City may deem necessary, there shall be made available to the City for examination all records with respect to all matters covered by this Contract. The Seller will permit the City to audit, examine, and make excerpts or transcripts from such records, and to audit all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and or data relating to all matters covered by this Contract.

4.5 Conflicts of Interest
The Seller covenants and declares that, other than this Contract, it has no holdings or interests within the City of Emeryville, nor business holdings, contracts or agreements with any official, employee or other representative of the City. For the duration of this Contract, in the event the Seller or its principals, agents or employees acquire such a holding, interest, contract, or agreement within the City of Emeryville or with any official, employee or representative of the City in the future, the Seller will immediately notify the City of such holding, interest, contract, or agreement in writing.

4.6 Discrimination Prohibited
The Seller covenants and agrees that in performing its obligations under this Contract, the Seller shall not discriminate against any person on the basis of race, color, religion, sex, sexual orientation, gender identity, marital status, national origin or ancestry, age or disability, except as provided in section 12940 of the Government Code.

4.7 Licenses, Certifications and Permits
The Seller covenants and declares that it has obtained all diplomas, certificates, licenses, permits or the like required of the Seller by any and all national, state, regional, county, city or local boards, agencies, commissions, committees or other regulatory bodies in order to perform its obligations under this Contract. All work performed by Seller under this Contract shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily expected of competent professionals.

4.8 Authority to Contract
The Seller covenants and declares that it has obtained all necessary approvals of its board of directors, stockholders, general partners, limited partners or similar authorities to simultaneously execute and bind Seller to the terms of this Contract, if applicable.

4.9 California Labor Requirements

4.9.1 Prevailing Wage Requirements
Seller is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the Seller’s obligations are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Seller agrees to fully comply with such 












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Prevailing Wage Laws. Seller shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Seller and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

4.9.2 Registration
If the Seller’s obligations are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Seller and all subcontractors performing such obligations must be registered with the Department of Industrial Relations. Seller shall maintain registration for the duration of the Contract and require the same of any subcontractors, as applicable.

Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

4.9.3 Labor Compliance Oversight
This Contract may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Seller’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Seller or any subcontractor that affect Seller’s performance of Services, including any delay, shall be Seller’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Seller caused delay and shall not be compensable by the City. Seller shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Seller or any subcontractor.

4.9.4 Workers’ Compensation
Pursuant to the requirements of section 1860 of the California Labor Code, Seller will be required to secure the payment of workers’ compensation to his employees in accordance with the provisions of section 3700 of the Labor Code. By signing this Contract, Seller certifies the following:
“I am aware of the provisions of section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake 












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self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

4.9.5 Event of Default
Failure by Seller to comply with any provision of this Section shall constitute an Event of Default and shall be grounds for termination as provided in this Contract.

5. TERMINATION

5.1 By City
City may terminate a Product order identified in the Proposal or terminate a Change Order by providing written notice to GSFA in accordance with Section 13 below. If the City elects to terminate a Product order, the City shall pay GSFA a cancellation fee as follows: (a) after the Product order is accepted and entered by GSFA, 10% of the portion of the Purchase Price applicable to such Product (including all associated taxes, fees and costs) (such amount, the “Product Price”); (b) after completion of the preconstruction phase of the order process, 20% of the Product Price; and (c) after the requisition of any materials or commencement of any manufacturing or assembly of the Product by either GSFA or Pierce Manufacturing Inc. (“Manufacturer”), 50% of the Product Price.

If the applicable tier of cancellation fee is not sufficient to cover all actual costs and fees incurred by GSFA with Manufacturer in connection with the City’s termination of the Product order (“Manufacturer Termination Fees”), then in addition to such cancellation fee the City shall pay the balance of all Manufacturer Termination Fees. The tier of cancellation fee applicable to any cancellation, as well as the determination of whether a Product has reached substantial completion, shall be at the discretion of GSFA with input from the City. The City may request a fee waiver, and GSFA, in its sole discretion, may agree to waive and/or adjust such fee. GSFA will return the balance of the Purchase Price or Product Price, as applicable, within thirty (30) calendar days of the effective date of the cancellation of the Product order or termination of the Contract.

The City may terminate the Contract for an Event of Default by GSFA (as defined in Section 6 below) after providing GSFA with written notice in accordance with Section 13 below (which notice shall describe with reasonably particularity the Event of Default justifying such termination) and if such Event of Default remains uncured (if capable of cure) thirty (30) calendar days following GSFA’s receipt of such notice; provided, however, that the foregoing cure period shall continue if and for so long as GSFA has commenced and is continuing to undertake commercially reasonable efforts to cure such Event of Default as promptly as reasonably practicable.

5.2 By GSFA
GSFA may terminate the Contract for an Event of Default (as defined in Section 6 below) by the City after providing the City with written notice in accordance with Section 












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13 (which notice shall describe with reasonably particularity the Event of Default justifying such termination) and if such Event of Default remains uncured (if capable of cure) thirty (30) calendar days following the City’s receipt of such notice; provided, however, that the foregoing cure period shall continue if and for so long as the City has commenced and is continuing to undertake commercially reasonable efforts to cure such Event of Default as promptly as reasonably practicable. Notwithstanding the foregoing, GSFA may terminate the Contract effective immediately upon written notice to the City for the City’s failure to pay any amount owed under the Contract when due.

Notwithstanding any other provision in the Contract, if the City terminates a Product order in accordance with Section 5.1 above, GSFA may elect to instead terminate the Contract upon notice to the City in accordance with Section 13 below; but upon such termination of the Contract by GSFA, the City shall not be liable for any cancellation fees for any Product(s).

5.3 Based on Discontinuation or Cancellation by Manufacturer.

In the event that Manufacturer cancels a Product order (provided that such cancellation is not the result of an act by the City in violation of the Contract) or discontinues the manufacture of a Product prior to its completion and delivery: (i) if such Product is the only Product contemplated under the Contract, then the Contract shall terminate; or (ii) if additional Products are contemplated under the Contract, then only the Product order for the applicable cancelled or discontinued Product shall be terminated. Such Contract termination or Product termination, as applicable, shall be effective upon GSFA’s written notice to the City of such cancellation or discontinuance in accordance with Section 13 below. GSFA’s only obligation to the City in such event shall be the return of any prepayment paid by the City for the cancelled or discontinued Product. For the avoidance of doubt, the cancellation fees contemplated in Section 5.1 above shall not apply in the event of a termination pursuant to this Section 5.3.

6. EVENT OF DEFAULT
The occurrence of one or more of the following events (each, an “Event of Default”) shall constitute a default under the Contract: (a) the City’s failure to pay any amounts due or to perform any of its obligations under the Contract; (b) GSFA’s failure to perform any of its obligations under the Contract; (c) either Party becoming insolvent or becoming subject to bankruptcy or insolvency proceedings; (d) any representation made by either Party under the Contract which is false in any material respect; or (e) any other material breach of the terms of the Contract by a Party.

7. NO PERSONAL LIABILITY
No member, official or employee of the City shall be personally liable to the Seller or any successor in interest in the event of any default or breach by the City or for any amount which may become due to the Seller or successor or on any obligation under the terms of this Contract.













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8. ENTIRE AGREEMENT
This Contract and its exhibits constitute the complete agreement between the Parties and supersedes any and all other agreements, either oral or in writing, between the Parties with respect to the subject matter of this Contract. No other agreement, statement or promise relating to the subject matter of this Contract not contained in this Contract shall be valid or binding. This Contract may be modified or amended only by a written document signed by representatives of both Parties with appropriate authorization.

9. SUCCESSORS AND ASSIGNS
Subject to the provisions of this Contract regarding assignment, this Contract shall be binding on the heirs, executors, administrators, successors and assigns of the respective Parties.

10. APPLICABLE LAW AND ATTORNEY’S FEES; VENUE
If any action at law or in equity is brought to enforce or interpret the provisions of this Contract, the rules, regulations, statutes and laws of the State of California will control.

The prevailing party shall be entitled to reasonable attorney's fees in addition to any other relief to which said party may be entitled. The exclusive venue for any legal action taken pursuant to this Contract shall be the State of California Superior Court for the County of Alameda or the United States District Court for the Northern District of California

11. SEVERABILITY
The caption or headnote on articles or sections of this Contract are intended for convenience and reference purposes only and in no way define, limit or describe the scope or intent thereof, or of this Contract nor in any way affect this Contract. Should any article(s) or section(s), or any part thereof, later be deemed unenforceable by a court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect to the extent possible.

12. BUSINESS TAX CERTIFICATE
Prior to commencement of the Services to be provided hereunder, Seller shall apply to the City of Emeryville Finance Department for a business tax certificate, pay the applicable business tax and maintain said business tax certificate during the term of this Contract, as provided in Article 1 of Chapter 1 of Title 3 of the Emeryville Municipal Code.

13. NOTICES
Any notices, requests, consents, claims, demands, waivers and other communications required or permitted to be given under this Contract and/or the Proposal must be given in writing at the address of each Party set forth below, or to such other address as either 












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Party may substitute by written notice to the other in accordance with this Section 13, by one of the following methods: hand delivery; registered, express, or certified mail, return receipt requested, postage prepaid; or nationally recognized private express courier. All such communications will be deemed to have been given: (i) when delivered by hand (with written confirmation of receipt); (ii) on the third (3rd) calendar day after the date mailed, by registered, express or certified mail; or (iii) when delivered by the addressee if sent by a nationally recognized private express courier.

GSFA:

Golden State Fire Apparatus Inc.
7400 Reese Road
Sacramento, CA 95828
Attn: Ryan Wright, President
Phone No: 209-330-1638
E-Mail: [email protected]
CITY OF EMERYVILLE:

Pedro Jimenez
Assistant City Manager
City of Emeryville
1333 Park Avenue
Emeryville, CA 94608
Phone No: 510-596-3770
E-Mail: [email protected]
With copy to:

John I. Kennedy
City Attorney
City of Emeryville
1333 Park Avenue
Emeryville, CA 94608
Phone No: 510-596-4381
E-Mail:

[email protected]

14. COUNTERPARTS
This Contract may be signed in counterparts, each of which shall constitute an original. It is expressly agreed that each Party to this Contract shall be bound by its own telecopied, scanned, electronic or digital signature and shall accept the telecopied, scanned, electronic or digital signature of the other Party to this Contract.

15. NO THIRD-PARTY BENEFICIARIES
Except to the extent expressly provided for herein, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

16. NON-EXCLUSIVITY
City reserves right to employ other contractors in connection with the products and services covered under this Contract.













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17. ASSIGNMENT OR TRANSFER
Neither Party shall assign, hypothecate or transfer, either directly or by operation of law, this Contract or any rights, obligations, or interests herein without the prior written consent of the other Party. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

18. WAIVER
The City’s failure to enforce any provision of this Contract or the waiver in a particular instance shall not be construed as a general waiver of any future breach or default.

SIGNATURES ON FOLLOWING PAGE













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19. SIGNATURE PAGE TO PURCHASE AND SALE CONTRACT
IN WITNESS WHEREOF the City and the Seller have executed this Contract, which shall become effective on the date it becomes fully executed by the Parties hereto .

Approved As To Form:

City Attorney
Dated: CITY OF EMERYVILLE
City Manager
Dated: GOLDEN STATE FIRE APPARATUS INC.
(Signature)
Ryan Wright, President
Attach:

W-9 Form
Attach:

Business License Certificate













  

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