A2397.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
July 31, 2023
TO: City Co uncil
FROM: Department o f Public Works
SUBJECT: AWARD OF CO NTRACT F OR THE P URCHASE OF NEW T IRES (VARIOUS), SPECIFICATION NO. SV 23-31
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. Aw
ard the attached contract to Daniels Tire Service, Inc., for the purchase of new tires (various) pursuant to Specification No. SV 23-31 in the amount of $39,475.50 through June 30, 2024; and
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to grant up to four (4) one-year extensions.
BACKGROUND AND OVERVIEW
S
taff is recommending that the City Council award a one -year contract to Daniels Tire Service, Inc., with the option for four (4) additional one-year terms. Staff is also recommending that the City Manager be authorized to approve each of the four (4) additional one-year terms and increase compensation under the contract consistent with City Council-approved future budgeted funds.
FINDINGS AND ALTERNATIVES
On
May 31, 2023, a Notice Inviting Bids was mailed to ten vendors, including six local vendors, and posted on the City’s website.
O
n June 27, 2023, the bid opening date, four (4) bids were received and the results are shown in the table below:
Vendor Total Bid Amount
Jim’s Tire Center
Simi Valley, CA $32,754.71*
Daniels Tire Service, Inc.
Santa Fe Springs, CA $39,475.50*
Santa Maria Tires
Oxnard, CA $42,267.66
Southern Tire Mart, LLC
Columbia, MS $43,729.36*
*Bid amount adjusted due to incorrect calculation on bid sheet.
AGENDA ITEM NO.
Consent (8)
A2397.SR.JD
Jim’s Tire Center is the lowest bidder after adjustment to incorrect calculation on the bid sheet, however, they are considered non-responsive for not completing required areas on the bid document including items that could affect overall cost as well as specific ti re information.
Staff reviewed the bid submitted by Daniels Tire Services and determined that the bid was responsive and cost competitive.
Sufficient funding is available in the FY 2023-24 Public Works budget.
The following alternatives are available to the City Council:
1. Award the attached contract to Daniels Tire Service, Inc. for the purchase of new tires (various) per Specification No. SV 23- 31 in the amount of $39,475.50 through June 30, 2024; and
2. Authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount or to grant up to four (4) one-year extensions.
3. Do not award the contract at this time and provide other direction to staff.
Staff recommends alternatives Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to award the contract to Daniels Tire Service , Inc., for the purchase of new tires pursuant to Specification No. SV 23- 31 in the amount of $ 39,475.50 through June 30, 2024 and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount and grant up to four (4) one-year extensions.
SUMMARY
One May 31, 2023, the Public Works Department solicited bids for the purchase of new tires (various), Specification No. SV 23- 31. On June 27, 2023, the City received four (4) bids with Daniels Tire Service, Inc. submitting the lowest responsive and responsible bid.
Therefore, it is recommended that the City Council award a contract to Daniels Tire Service, Inc. in the amount of $39,475.50 for the purchase of new tires, and authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount and grant up to four (4) one-year extensions.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Dylan Gunning, Senior Management Analyst
INDEX Page
Contract ............................................................................................ 3 2 A2397.CON.JD
Specification No. SV 23-21
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
DANIELS TIRE SERVICE, INC. FOR PURCHASE OF NEW
TIRES (VARIOUS), SPECIFICATION NO. SV 23-31
THIS CONTRACT is made and entered into in the Ci ty of Simi Valley on this 31 st day of July 2023, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and DANIELS TIRE SERVICE, INC., a California Corporation, hereinafter referred to as CONTRACTOR, each a “ Party” and collectively, “Parties”.
RECITALS
WHEREAS, on May 31, 2023, CITY invited bids for the purchase of Purchase of New Tires (various) per Specification No. SV 23-31; and
WHEREAS, pursuant to the bid invitation, CONTRACTOR submitted a bid which was accepted by CITY for the equipment
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
AGREEMENT
1. Recitals. The foregoing recitals are true and correct and are a part of this CONTRACT.
2. Term. The term of this CONTRACT shall be from July 31, 2023 to June 30, 2024. The term of the contract may be extended for up to four (4) one (1) year extensions upon mutual written consent of the Parties . Unit prices may be adjusted in accordance with the percentage change in the Consumer Price Index (CPI) for the Los Angeles County, Riverside County, and Orange County Area for the previous 12- month period (March to March).
3. Description of Supplies, Equipment, Materials, or Services. This CONTRACT is for the purchase of New Tires. CONTRACTOR agrees to supply the item(s) more specifically set forth in the “Bid Specifications” attached hereto and incorporated herein as Exhibit “A”.
4. Compensation and Payment.
A. The CITY shall be obligated to pay CONTRACTOR based upon the unit and/or lump sum prices bid by CONTRACTOR, multiplied by the actual CITY-authorized quantities received and accepted by CITY; such unit and/or lump sum prices as contained in the “Bid Specification” attached hereto and incorporated herein as Exhibit “A”.
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Specification No. SV 23-21
B. Payments to the CONTRACTOR shall be made within 30
days after receipt of an original invoice from the CONTRACTOR and acceptance of the New Tires by CITY.
C. In no event shall the total amount paid for this CONTRACT exceed $39,475.50 (the “Not-To-Exceed Amount”), unless otherwise agreed to by the Parties in writing.
5. CONTRACTOR Representations and Obligations.
A. CONTRACTOR shall perform as required by this
CONTRACT. CONTRACTOR also warrants on behalf of itself and all subcontractors engaged for the performance of this CONTRACT that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.
B. CONTRACTOR shall obey all Federal, State, local, and special district laws, ordinances, and regulations.
C. CONTRACTOR shall indemnify, defend, and hold CITY
harmless from any claim that prevailing wages should have been paid pursuant to this CONTRACT, including federal prevailing wage requirements under the Davis-Bacon Act, if applicable and shall be liable for the payment of same and any penalties thereon.
D. CONTRACTOR shall abide by the CITY’S Business Tax
Ordinance, of which proof of payment must be obtained prior to performance of this CONTRACT. CONTRACTOR shall maintain a valid Business Tax Certificate for the term of the CONTRACT.
E. The CONTRACTOR shall keep a tally of the cost for the work ordered by CITY. The CONTRACTOR shall not accept work orders from the CITY if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the Parties in writing.
6. Audit
.
A. At any time during normal business hours and as often as the CITY may deem necessary, CONTRACTOR shall make available to CITY for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit CITY to audit, examine and/or reproduce such records. CONTRACTOR will retain such financial records, time sheets, work progress reports, invoices, bills and project records for at least two (2) years after termination or final payment under this CONTRACT. This paragraph shall survive for two (2) years after termination of this CONTRACT.
B. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR.
4 A2397.CON.JD
Specification No. SV 23-21
7. Hold Harmless and Indemnification . CONTRACTOR shall defend, indemnify, and hold harmless CITY, its agents, officials, officers, representatives, and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any manner to any act or omission of CONTRACTOR, its agents, employees, and subcontractors, and employees thereof, pursuant to the performance or non- performance of this CONTRACT. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives, and employees as to any such claims, lawsuits, liabilities, expenses, or damages arising out of this CONTRACT. The CITY shall be included as an Additional Insured in the automobile/ liability insurance policies and endorsements of the CONTRACTOR. The CONTRACTOR must select an attorney acceptable to the CITY who will defend such proceeding and the CITY will control any litigation thereof. Such approval by the CITY will not be unreasonably withheld. This paragraph shall survive the termination of this CONTRACT.
8. Amendments. Any amendments, modifications, or variations from the provisions of this CONTRACT shall be in writing and shall be effective only upon mutual written approval by the Director of Public Works and CONTRACTOR except that any changes to the CONTRACT amount and term of the CONTRACT shall be effective only upon mutual written approval by the City Manager or his designee, and CONTRACTOR.
9. Anti-Discrimination. In the performance of the terms of this CONTRACT, CONTRACTOR shall not engage in, nor permit subcontractors to engage in, discrimination in employment of persons because of the age, race, color, religious creed, sex, sexual orientation, national origin, ancestry, physical disability, mental disability, medical condition, or marital status of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735.
10. Termination. If, during the term of this CONTRACT, CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, CITY may notify CONTRACTOR in writing of such d efect or failure to perform. The notice must give to the CONTRACTOR a ten (10) day period of time thereafter in which to perform the work or cure the deficiency. If CONTRACTOR has not performed the work or cured said deficiency within the ten (10) days s pecified in the notice, such failure shall constitute a breach of this CONTRACT, and CITY may terminate this CONTRACT immediately by written notice to CONTRACTOR. Thereafter, neither Party shall have any further duties, obligations, responsibilities, or rights under this CONTRACT except, however, any and all obligations of CONTRACTOR'S surety shall remain in full force and effect and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In such event, CONTRACTOR shall be entitled to the reasonable value of its services performed from the beginning of the period in which the breach occurs up to the day it received CITY'S Notice of Termination, minus any damages, including liquidated damages if so provided herein, occasioned by such breach. CITY reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall CONTRACTOR be entitled to receive in excess of the CONTRACT amount.
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Specification No. SV 23-21
11. Complete CONTRACT . This CONTRACT and its accompanying exhibits shall constitute the complete CONTRACT between the Parties hereto. No verbal agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the Parties hereto.
12. Time of Performance. Time is of the essence in this CONTRACT.
13. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto; provided, however, that no Party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without the prior written consent of the other Party, and any such assignment without said consent shall be void.
14. Authority to Execute Contract. Both CITY and CONTRACTOR do covenant that each individual executing this CONTRACT on behalf of each Party is a person duly authorized and empowered to execute contracts for such Party.
15. Insurance. CONTRACTOR shall, at CONTRACTOR’S sole cost and expense, provide insurance as contained in Exhibit “ B”, incorporated herein.
CONTRACTOR shall not commence work on the Services to be performed, until it submits proof of all insurance coverage as required.
16. Jurisdiction and Venue . Jurisdiction is in an appropriate court in the State of California and venue lies in Ventura County, and the Parties do not consent to arbitration. In the event of any dispute, each Party shall bear its own fees and costs (including attorneys’ fees). This CONTRACT shall be governed by California law, without regard to conflict of law principles.
17. Non-Appropriation of Funds . Payments due and payable to CONTRACTOR for current goods and/or services are within the current budget and within an available, unexhausted and unencumbered appropriation of CITY. In the event CITY has not appropriated sufficient funds for payment of goods and/or services beyond the current fiscal year, this CONTRACT shall cover only those costs incurred up to the conclusion of the current fiscal year.
18. Taxpayer Identification Number . CONTRACTOR shall provide CITY with a complete Request for Taxpayer Identification Number and Certification, form W-9 (latest revision), as issued by the Internal Revenue Service.
19. Permits and Licenses . CONTRACTOR, at its sole cost and expense, shall obtain and maintain during the term of this CONTRACT, all appropriate permits, licenses, and certificates that may be required in connection with the performance of this CONTRACT.
6 A2397.CON.JD
Specification No. SV 23-21
20. Waivers. The waiver by one Party of any term or condition of this CONTRACT, or any breach thereof, shall not be construed to be a general waiver by said Party or as a waiver of any other term or breach.
21. Notices. All written notices required by, or related to this CONTRACT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither Party to this CONTRACT shall refuse to accept such mail; the Parties to this CONTRACT shall promptly inform the other Party of any change of address. All notices required by this CONTRACT are effective on the day of receipt, unless otherwise indicated herein. The mailing address of each Party to this CONTRACT is as follows:
CITY Ronald K. Fuchiwaki
Public Works Director
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contract: John Willoughby, Maintenance Superintendent (805) 583-6489
7 A2397.CON.JD
Specification No. SV 23-21
CONTRACTOR Daniels Tire Service, Inc.
11850 Slauson Ave
Santa Fe Springs, CA 90670
Staff Contract: Rob Wood
Vice President
(562) 321-1279
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Daniels Tire Service, Inc.
By:
David L. Caceres, City Attorney
Print Name:
Approved as to Content: Title:
By:
Brian Paul Gabler, City Manager
Print Name:
Title:
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
8 A2397.CON.JD
Specification No. SV 23-21
EXHIBIT “A”
BID SPECIFICATIONS
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
DANIELS TIRE SERVICE, INC. FOR PURCHASE OF NEW
TIRES (VARIOUS), SPECIFICATION NO. SV 23-31
9 A2397.CON.JD
Specification No. SV 23-21
10 A2397.CON.JD
Specification No. SV 23-21
EXHIBIT “B”
INSURANCE REQUIREMENTS
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
DANIELS TIRE SERVICE, INC. FOR PURCHASE OF NEW
TIRES (VARIOUS), SPECIFICATION NO. SV 23-31
Insurance - Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor , its agents, representatives, or employees.
Minimum Scope and Limit of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. Contractor hereby certifies that it is aware of the provisions of Section 3700 et seq., of the Labor Code which require every employer to be insured against liability for Workers' Compensation.
4. Contractor’s Pollution Liability applicable to the work being performed, with a limit no less than $2,000,000 per claim or occurrence and $2,000,000 aggregate per policy period.
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor . Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
- The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Simi Valley, its Boards, Officers, Agents, Officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor ’s insurance 11 A2397.CON.JD
Specification No. SV 23-21
(at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this project/contract, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its Boards, Officers, Agents, Officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its Boards, Officers, Agents, Officials, employees, and volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall state that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy lang uage shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non- renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Verification of Coverage
Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, 12 A2397.CON.JD
Specification No. SV 23-21
failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that the City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
13