RESOLUTION NO. __24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, APPROVING A CONTRACT WITH OWEN EQUIPMENT SALES
FOR THE OUTSTANDING BALANCE AND SERVICE CHARGES RESULTING FROM COSTS ASSOCIATED FROM THE PURCHASE OF TWO (2) VACTOR
TRUCKS AND FOR THE LEASE OF A STREET SWEEPER FOR A TOTAL AMOUNT NOT TO EXCEED $114,711.782.
WHEREAS, On September 21, 2021, the City Council awarded a contract to Owen Equipment Sales, (Owen) for the purchase of one (1) Vactor Model 2100i with Hydro - Excavation Package in the amount of $529,683.81 and one (1) Vactor Model 2100i without Hydro-Excavation Package in the amount of $525,223.68 for a total purchase price not to exceed $1,054,907.49 which was fully funded and budgeted in FY 2021-2022; and
WHEREAS, the Vactor trucks were not delivered until December 2022 due to an approximate 15 -month construction and delivery timeline. Upon delivery, the total purchase price for the two (2) Vactor trucks amounted to $1,070,976.01, which exceeded the approved contract amount of $1,054,907.49 by $16,068.52; and
WHEREAS, staff requested that Owen Equipment Sales waive the price increase, citing a lack of prior notification. However, Owen Equipment Sales referenced the original agreement, which indicated that potential shipping delays, exacerbated by COVID -19, could result in price increases.
WHEREAS, due to several staffing changes, including the retirement of key personnel, the June 30, 2023 expiration date of the Original Contract passed without notice; and
WHEREAS, in addition to a paying the outstanding purchase balance of $16,068.52 from the purchase of the two (2) Vactor Trucks, City must settle the associated service charges in the amount of $6,212.66; and
WHEREAS, on April 19, 2022, the City Council awarded a nother contract to Owen Equipment Sales to lease one (1) Street Sweeper for a two (2) year lease agreement with one (1) year option to renew at a rate of $10,200 per month, plus tax and environmental fees fully funded and budgeted in FY 2021-2022; and
WHEREAS, due to an administrative staff shortage, the February 28, 2024 expiration date of the Original Contract passed without notice. The City , however, continued to use the sweeper through October 2024. Owen Equipment Sales allowed the City the use of the Street Sweeper with the expectation to be paid in full according to the terms of the previous lease agreement; and
WHEREAS, aside from paying the outs tanding street sweeper lease balance of $79,698.34, the City must settle the associated service charges in the amount of $12,732.26; and
WHEREAS, based on the fees that are due to Owen for the price increase , lease and service charges for the Vactors and the Street Sweepers, the City owes a total of $114,711.782.
SUMMARY
Particulars Invoice Amount
Vactor Trucks – Outstanding Purchase Balance 16,068.52
Vactor Trucks – Service Charges 6,212.66
Street Sweeper – Lease Balance 79,698.34
Street Sweeper – Service Charges 12,732.26
Grand Total $114,711.78
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richmond, as follows:
Section 1. The foregoing recitals are true and correct, and this City Council hereby so finds and determines:
Section 2. The City Council hereby authorizes staff to enter into a contract with Owen Equipment Sales for the increased prices of the Vvactor trucks and the lease of the street sweepers an associated services charged in the amount of $114,7121.78.
Section 3. This resolution shall take effect immediately upon its passage.
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I hereby certify that the foregoing Resolution of the Council of the City of Richmond was duly passed and adopted at a meeting thereof held January February 4, 217, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTION:
___________PAMELA CHRISTIAN___________
CLERK OF THE CITY OF RICHMOND
Approved:
Mayor
Approved as to form:
City Attorney