A2424.SR.DD
C
ITY OF SIMI VALLEY
MEMORANDUM
Ma
rch 18, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: AWARD OF CONTRACT FOR THE PURCHASE AND SERVICE OF
VACTOR TRUCK EQUIPMENT
STAFF RECOMMENDATION
1. Aw
ard the attached contract (page 4) to Haaker Equipment Company (Haaker) in the amount of $150,000 for the period of two (2) years from March 18, 2024, through March 17, 2026, for the purchase and service of Vactor truck equipment;
2. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by up to two (2) additional two-year terms in accordance with the contract terms.
BACKGROUND AND OVERVIEW
V
actor Inc. is the manufacturer of high pressure sewer cleaning equipment that are mounted on large, heavy -duty trucks. Haaker Equipment Company is a seller of trucks with Vactor equipment installed as well as a supplier of parts and servicer of Vactor equipment. Public Works has used Haaker for the purchase and service of Vactor truck equipment since 2014. From 201 4 to the present, the City has purchased a total of $359,550.22 of Vactor truck parts and service through Haaker.
The City desires continued use of Haaker equipment and service to keep its trucks operational and available for the Sanitation Division’s use throughout the City. The Vactor trucks perform an essential function in the health and safety of the City’s residents when spillages and overflows occur . Public Works requests the City Council approve a contract with Haaker as their approval is required for purchases exceeding $175,000 over the life of the contract.
FINDINGS AND ALTERNATIVES
O
n February 15, 2022, and in accordance with the City’s Purchasing Ordinance, the City determined that bidding was not required for Haaker parts and services since their purchase was not suitable to the bid procedure. Vactor truck replacement parts are sold only through authorized Vactor distributors, such as Haaker. As this time, Haaker is the only authorized distributor in Southern California for Vactor parts and service. Moreover, Haaker has proprietary equipment that is not interchangeable in the trucks and service is AGENDA ITEM NO.
Consent (7)
A2424.SR.DD
only possible through Haaker. Haaker is based in La Verne, CA which makes them easily accessible for emergency repairs and parts.
The Sanitation Division uses Vactor Sewer Cleaner equipped trucks to clean and remove debris, clear blockages and remove sewer overflows when they occur. The Vactor trucks must be readily available when called out to address a problem. Haaker materials and services are essential in keeping the sewer system operating continuously in order to meet health and safety concerns as stated in County, State, and Federal requirements and for maintaining the City’s streets. As such, the City desires to continue to use Haaker as their provider of parts and services for the next two years with the option to extend the agreement for two (2) additional two-year terms.
Staff recommends that the City Council award a contract to Haaker for the purchase and service of Vactor truck equipment.
The following alternatives are available to the City Council:
1. Award the attached contract to Haaker in the amount of $150,000 for the period of two (2) years from March 18, 2024, through March 17, 2026, for the purchase and service of Vactor truck equipment;
2. Authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by up to two (2) additional two-year terms in accordance with the contract terms;
3. Do not award a contract at this time and provide staff with further direction.
Staff recommends Alternative No. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to award a contract with Haaker for the purchase and service of Vactor truck equipment in the amount of $150,000 for the period of March 18, 2024 through March 17, 2026, and further authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract term.
SUMMARY
Public Works purchases replacement parts and services from Haaker for reliable and efficient operation of the City’s Sanitation Vactor trucks. Haaker has been designated the sole distributor for Vactor parts and service. The City’s purchasing procedures require City Council’s approval based on the aggregate total spent with Haaker since 2014. It is recommended that the City Council approve the attached contract with Haaker for the purchase and service of Vactor truck equipment in the amount of $150,000 for the period of March 18, 2024, through March 17, 2026, and further authorize the City Manager to 2 A2424.SR.DD
approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract term.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Matt Mckenna, Senior Management Analyst
INDEX
Page
Contract .............................................................................................. 4 3 A2424.CON.DD
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
HAAKER EQUIPMENT COMPANY FOR THE PURCHASE OF
VACTOR TRUCK PARTS AND SERVICE
THIS CONTRACT is made and entered into in the City of Simi Valley on this 18th day of March 2024, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and HAAKER EQUIPMENT COMPANY , a California corporation, hereinafter referred to as CONTRACTOR , each a “ Party” and collectively, “Parties”.
RECITALS
WHEREAS, the CITY wishes to purchase Vactor Truck Parts and Service; and
WHEREAS, Haaker Equipment Company, is the authorized dealer for Vactor, Inc.
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 the date this CONTRACT is made and entered, as first written above, until the 17th day of Mar ch 2026.
This CONTRACT may be extended for two additional two-year terms upon mutual consent of the City Manager and the CONTRACTOR. Unit prices may be adjusted for each extension at an amoun t not to exceed the increase in the Los Angeles -Long Beach-Anaheim, CA Consumer Price Index (CPI) for the prior year ending in March.
3. Description of Supplies, Equipment, Materials, or Service s. This CONTRACT is for the purchase of Vactor Truck Parts and Service. CONTRACTOR agrees to supply the item(s) more specifically set forth in “Service Department Labor Rates” 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 CON TRACTOR, multiplied by the actual CITY - authorized quantities received and accepted by CITY; such unit and/or lump sum prices as contained in the “Service Department Labor Rates” attached hereto and incorporated herein as Exhibit “A”.
B. Payments to the CONTRACTOR shall be made within 30 days after receipt of an original invoice from the CONTRACTOR and acceptance of the Vactor Parts and Service by CITY.
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C. In no event shall the total amount paid for this CONTRACT exceed $150,000 (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 t he 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.
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 5 A2424.CON.DD
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.
1. 8. Insurance. INSURANCE.
A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONTRACTOR will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below:
Type of Insurance Limits (combined single)
Commercial general liability: $ 2 Million
Business automobile liability $ 1 Million
Workers compensation Statutory requirement.
B. Commercial general liability insurance will meet or exceed the requirements of ISO-CGL Form No. CG 00 01 11 85 or 88. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name City, its officials, and employees as “additional insureds” under said insurance coverage and to state that such insurance will be deemed “primary” such that any other insurance that may be carried by City will be excess thereto. Such insurance will be on an “occurrence,” not a “claims made,” basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to City.
C. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto).
D. CONTRACTOR will furnish to City duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, endorsements as required herein, and such other evidence of insurance or copies of policies as may be reasonably required by City from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of “A:VII.” Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage. CONTRACTOR will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
6 A2424.CON.DD
E. Should CONTRACTOR, for any reason, fail to obtain and maintain the insurance required by this Agreement, City may obtain such coverage at CONTRACTOR’s expense and deduct the cost of such insurance from payments due to CONTRACTOR under this Agreement or terminate.
Amendments. Any amendments, modifications, or variations from the provisions of this CONTRACT shall be in writing and s hall be effective only upon mutual written approval by the Director of Public Works and CON TRACTOR 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 defect or failure to perform. The notice must give to the CONTRACTO R 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 specified 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.
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 7 A2424.CON.DD
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. 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.
16. 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.
17. Taxpayer Identification Number. CONTRACTOR shall provide CITY with a complete Request for Taxpayer Identification Number and Cer tification, form W -9 (latest revision), as issued by the Internal Revenue Service.
18. 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.
19. 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.
20. 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 Department of Public Works
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: John Willoughby
Maintenance Superintendent
(805) 583-6489
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CONTRACTOR Haaker Equipment Company
2070 North White Avenue
La Verne, CA 91750
Attn: Michael Eatmon, Service Manager
(909) 598-2706 x141
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: Haaker Equipment Company
By:
Algeria R. Ford, 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
9 A2424.CON.DD
EXHIBIT “A”
SERVICE DEPARTMENT LABOR RATES
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
HAAKER EQUIPMENT COMPANY FOR THE PURC HASE OF
VACTOR TRUCK PARTS AND SERVICE
10 La Verne Shop
Haaker Equipment Company
Service Department Labor Rates Shop/Field Effective 01/01/24 A. Shop Repairs - Installation, Maintenance, Trouble Shooting Price per Hour
1. Straight Time Rate: 204
Monday - Friday 6:00 am - 4:00 pm
Call out 2hr minimum
2. Overtime Rate: 245
Monday - Friday After 4:00 pm
Call out 2hr min./ 4hr max.
Saturday 6:00 am - 5:00 pm
Call out 4hr min. / 8hr max.
3. Double Time Rate: 294
Monday - Friday After 12 hours
Saturday After 12 hours
Sundays and Holidays Call out 4 hr minimum
B. Field Repairs - Installation, Maintenance, Trouble Shooting
1. Straight Time Rate: 218
Monday - Friday 6:00 am - 4:00 pm
Call out 2hr minimum
2. Overtime Rate: 262
Monday - Friday After 4:00pm
Call out 2hr min./ 4hr max.
Saturday 6:00 am - 5:00 pm
Call out 4hr min./ 8hr max.
3. Double Time Rate: 314
Monday - Friday After 12 hours
Saturday After 12 hours
Sunday and Holidays Call out 4hr minimum
11 C. Welding and Fabrication
1. Straight Time: 204
Monday - Friday 6:00 am - 4:00 pm
Call out 2hr minimum
2. Overtime Rate: 245
Monday - Friday After 4:00 pm
Call out 2hr min/ 4hr max.
Saturday 6:00 am - 5:00 pm
Call out 4hr min./ 8hr max.
3. Double Time Rate: 294
Monday - Friday After 12 hours
Saturday After 12 hours
Sunday and Holidays Call out 4hr minimum
Terms and conditions:
1. Travel Time:
Travel time will be charged at $175 per hour, to include round trip from HEC to destination.
2. Per Diem expenses:
Hotels, meals and other living expenses will be charged at HEC cost plus 15% for overnight travel.
3. Shift Times:
Shift starting time on overnight service calls are at customer option: i.e. first 8 hours Monday thru Friday is at straight time labor rate.
4.Shift Length:
For safety reasons, we must limit a shift to a maximum of 16 hours in one 24 hour period.
There will also be a break between shifts of 8 hours or more.
12