A2472.SR.DD
CITY OF SIMI VALLEY
MEMORANDUM
A
ugust 19, 2024
TO
: City Council
Board of Directors, Ventura County Waterworks District No. 8 F
ROM: Department of Public Works
SUBJECT: AUTHORIZATION TO WAIVE THE BIDDING PROCESS PURSUANT TO
THE SIMI VALLEY MUNICIPAL CODE, AND AWARD OF CONTRACT TO ROYAL INDUSTRIAL SOLUTIONS, INC . FOR THE PURCHASE OF
ROCKWELL AUTOMATION SOFTWARE, EQUIPM ENT, AND
PRODUCTS AND AUTHORIZE THE CITY/DISTRICT MANA GER TO
APPROVE ANY SUBSEQUENT CONTRACT AMENDMENTS
STAFF RECOMMENDATION
I
t is recommended the City Council/Board of Directors:
1. W
aive the bidding process in accordance with Simi Valley Municipal Code (SVMC ) section 2-9.201(e); and,
2. Aw
ard a contract to Royal Industrial Solutions, Inc. (Royal), page 4, in the amount of $300,000 for the period of two (2) years retroactively from July 22, 2024, through June 30, 2026, for the purchase of Rockwell A utomation software, equipment, and products; and,
3. 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 term s (not to exceed a total of 6 years) in accordance with the contract terms.
BACKGROUND AND OVERVIEW
The
City’s Sanitation and Waterworks divisions use Rockwell Automation’s Allen- Bradley Motor Control Centers (MCCs), Allen Bradley Programmable Logic Controllers (PLCs), Breakers, Allen Bradley Variable Frequency Drives (VFDs), Allen Bradley Smart Motor Controllers (SMCs), replacement parts, components, and a variety of data equipment and software for the Supervisory Control and Data Acquisitions (SCADA) to ensure reliable and safe operations and compliance.
Since 2017, the City has purchased a total of $964,754.09 of Rockwell Automation software, equipment, and products for the City’s Sanitation and Waterworks divisions from Royal. City Council/Board of Directors approval is required for purchases exceeding $175,000 over the life of the contract, therefore Public Works AGENDA ITEM NO.
Consent (7)
A2472.SR.DD
requests approval for this contract with Royal. Staff recommends that the City Council/Board of Directors waive bidding requirements under the SVMC section 2-
9.201(e) exempting the competitive bids process due to standardization of City equipment that would result in cost savings ensuring the City’s Sanitation and Waterworks divisions can continue purchasing equipment necessary for safe operation and maintenance of facilities and infrastructure, and award a contract to Rockwell Industrial Solutions Inc. for the purchase of Rockwell automation software, equipment, and products.
FINDINGS AND ALTERNATIVES
T
he Allen -Bradley brand name, from Rockwell Automation, is widely known in North America for their production of quality HMI (human- machine interface) equipment, sensors, drives, drive motors, as well as a variety of peripheral devices used by the City’s Sanitation and Waterworks Divisions. In addition to making a variety of durable and reliable PLCs and related equipment, switching from Rockwell Automation to another brand can be a complex and costly process associated with hardware and software changes given the level of customization required. Using and integrating alternative brands would require redundant software licensing fees and training to effectively use and maintain the new systems. The process of converting and integrating the existing Rockwell system to a different brand would require significant engineering effort. This includes reprogramming PLCs, configuring HMIs, and ensuring all components communicate correctly. During a brand transition, systems may need to be offline which could result in treatment upset and NPDES permit violations.
R
ockwell Automation products can only be purchased through the local distributor for this area, Royal Industrial Solutions, Inc., located in the City of San Fernando, CA.
T
he Sanitation budget (Fund 700) includes $75,000 and the Waterworks Fund (Fund 761) includes $75,000 for operating supplies in FY 2024- 25 and a similar amount will be requested in future years. Funding for the proposed contract with Royal is contingent upon City Council/Board of Directors approval of the proposed FY 2025- 26 through FY 2029-30 Public Works operating budget.
T
he following alternatives are available to the City Council:
1. W
aive the bidding process in accordance with S imi Valley Municipal Code (SVMC) section 2-9.201(e);
2. A
ward the attached contract to Royal in the amount of $3 00,000 for the period of two (2) years r etroactively from July 22, 2024, through June 30, 2026, for the purchase of Rockwell Automation software, equipment, and products;
3. 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; 2 A2472.SR.DD
4. Do not award a contract at this time and provide staff with further direction.
Staff recommends Alternative Nos. 1, 2, and 3.
SUGGESTED CITY COUNCIL MOTION
I move to waive the bidding requirements pursuant to the SVMC section 2-9.201(e), award a contract to Royal for the purchase of Rockwell Automation software, equipment, and products in the amount of $3 00,000 beginning retroactively from July 22 , 2024, through June 30 , 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 Rockwell Automation equipment and support services from Royal for safe and reliable operation of facilities and infrastructure within the Sanitation and Waterworks divisions. Switching to an alternative brand of equipment would require costly setup, support, and training. Royal is the local distributor of Rockwell Automation supplies and support . The City’s purchasing procedures require the City Council/Board of Director’s approval based on the length of time and aggregate total spent with Royal since 2017.
It is recommended that the City Council/Board of Directors waive the bidding process pursuant to the Simi Valley Municipal Code section 2-9.201(e) exempting the competitive bids process due to standardization of City equipment that would result in cost savings and award the attached contract to Royal for the purchase of Rockwell Automation supplies and support in the amount of $300,000 beginning retroactively from of July 22, 2024 through June 30, 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.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Matt Mckenna, Senior Management Analyst
INDEX
Page
Contract .............................................................................................. 4
3 2-Contract 8/14/24
AGREEMENT NO. 3250004
Services Agreement
CONTRACTOR: Royal Industrial Solutions, Inc. DATE MAILED: 08/19/2024 Below you will find a checklist relating to Insurance and other requirements that are required for doing business with the Ci ty of Simi Valley. Only those items checked- off are MANDATORY, however if your standard policies exceed the minimum requirements please include. Commercial general liability insurance must meet or exceed the requirements of ISO -CGL Form No. CG 00 01 11 85 or 88, or equivalent. The amount of insurance set forth below 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 the 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 the City will be excess thereto. Such insurance must 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 the City.
Comprehensive General Liability, including coverage for premises, products and completed operations, independent contractors, personal injury and contractual obligations with combined single limits of coverage of at least $2,000,000 per occurrence. Auto Liability, including owned, non-owned and hired vehicles with at least:
$500,000 per occurrence.
$1,000,000 per occurrence.
As required by State Statutes. A copy of your current policy must be submitted naming yourself and or your company. Workers’ Compensation Insurance: as required by State Statutes. (Not needed if Self -employed with no employees and CONTRACTOR signs statement to this effect.)
Errors & Omissions or Malpractice or Professional Liability: depending on type of contract/service. At least $500,000 per occurrence. Business License: The CONTRACTOR must have a current City of Simi Valley license on file at City Hall or purchase said license (at no cost to the City).
PLEASE NOTE: ALL APPLICABLE INFORMATION LISTED ABOVE MUST BE OBTAINED AND ON FILE, PRIOR TO THE ISSUANCE OF A CITY
PURCHASE ORDER BEING SENT TO YOU (VIA EMAIL OR HARD COPY) BY THE RISK MANAGER/PURCHASING AGENT, THUS AUTHORIZING COMMENCEMENT OF WORK FOR THE CITY.
Submitted by (complete all blanks): COLOR COPY REQUIRED BACK TO THE CITY Company Name:
Royal Industrial Solutions, Inc.
By (Print name & title):
Tyler Brubaker – District Manager
Company Street Address:
1920 Westridge Drive
Vendor’s Authorized Signature required:
City, State, Zip:
Irving, TX 75038
Date signed:
Phone:
(661) 713-0236
Agreement Date & Expiration Date:
07/22/2024 through 06/30/2026
Services Rendered:
Purchase of Rockwell Automation Products
Agreement Amount
$300,000
Originator/Department Contact: Date initiated:
Department Head Review: City Manager Approval :
Return the original fully executed form to the City Clerk's office
Attach: Scope of Work and/or Quotes
4 A2472.CON.DD
1.GENERALLY. The materials, supplies, or services (collectively, “Purchase”) covered by this purchase order (“order”) must be furnished by Seller subject to all the terms and conditions contained in this order whic h Seller, in accepting this order, agrees to be bound by and comply with in all particulars. No other terms or conditions are binding upon the parties unless subsequently agreed to in writing. Written acceptance or shipment of all or any portion of the Purchase covered by this order constitutes unqualified acceptance of all terms and conditions in this order. The terms of any proposal referred to in this order are included and made a part of the order only to the extent it specified the Purchase ordered, the price, and the delivery, and then only to the extent that such terms are consistent with the terms and conditions of this order.
2.INSPECTION. The Purchase furnished must be exactly as specified in this order, free from all defects in Seller’s performance, design, workmanship, and materials, and, except as otherwise provided, is subject to inspection and test by City at all times and places. If, before final acceptance, any Purchase is found to be incomplete, or not as specified, City may reject it, require Seller to correct it without charge, or require delivery of such Purchase at a reduction in price that is equitable under the circumstances. If seller is unable or refuses to correct such items within a time deemed reasonable by City, City may terminate the order in whole or in part. Seller bears all risks as to rejected Purchases and, in addition to any costs for which Seller may become liable to City under other provisions of this order, must reimburse City for all transportation costs, other related costs incurred, or payments to Seller in accordance with the terms of this order for unaccepted Purchases. Notwithstanding City’s acceptance of any Purchase, Seller is liable for latent defects, fraud, or such gross mistakes as constitute fraud.
3.CHANGES. City may make changes within the general scope of this order in drawings and specifications for specially manufactured supplies, place of delivery, method of shipment or packing of the order by giving notice to Seller and subsequently confirming such changes in writing. If such changes affect the cost of or the time required for performance of this order, an equitable adjustment in the price or delivery or both must be made. No change by Seller is allowed without City’s written approval. Any claim by Seller for an adjustment under this section must be made in writing within thirty (30) days from the date of receipt by Seller of notification of such change unless City waives this condition in writing. Nothing in this section excuses Seller from proceeding with performance of the order as changed.
4. TERMINATION. City may terminate this order at any time, either verbally or in writing, with or without cause. Should termination occur, City will pay Seller as full performance until such termination the unit or pro rata order price for the performed and accepted portion of the Purchase. City may provide written notice of termination for Seller’s default if Seller refuses or fails to comply with this order. If Seller does not cure such failure within a reasonable time period, or fails to perform the Purchase within the time specified (or allowed by extension), Seller will be liable to City for any excess costs incurred by City.
5.TIME EXTENSION. City may extend the time for completion if, in City’s sole determination, Seller was delayed because of causes beyond Seller’s control and without Seller’s fault or negligence. In the event delay was caused by City, Seller’s sole remedy is limited to recovering money actually and necessarily expended by Seller because of the delay; there is no right to recover anticipated profit.
6.REMEDIES CUMULATIVE. City’s rights and remedies under this order are not exclusive and are in addition to any rights and remedies provided by law.
7.TITLE. Title to materials and supplies purchased under this order pass directly from Seller to City upon City’s written acceptance following an actual inspection and City’s opportunity to reject.
8.PAYMENT. City will pay Seller 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.
9.INDEMNIFICATION. Seller agrees to indemnify and hold City harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of the Purchase or the order, or their performance, except for such loss or damage arising from City’s sole negligence or willful misconduct. Should City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the Purchase or order, or their performance, Seller will defend City (at City’s request and with counsel satisfactory to City) and indemnify City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section “City” includes City’s officers, elected officials, and employees. It is expressly understood and agreed that the foregoing provisions will survive termination of this order. The requirements as to the types and limits of insurance coverage to be maintained by Seller, and any approval of such insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Seller pursuant to this order, including, without limitation, to the provisions concerning indemnification.
10.WARRANTY. Seller agrees that the Purchase is covered by the most favorable commercial warranties the Seller gives to any customer for the same or substantially similar supplies or services, or such other more favorable warranties as is specified in this order. Warranties will be effective notwithstanding any inspection or acceptance of the Purchase by City.
11.ASSIGNMENT. City may assign this order. Except as to any payment due under this order, Seller may not assign or subcontract the order without City’s written approval. Should City give consent, it will not relieve Seller from any obligations under this order and any transferee or subcontractor will be considered Seller’s agent.
12.INSURANCE. Seller must provide the insurance indicated on the face sheet of this order.
13.PERMITS. Se ller must procure all necessary permits and licenses, and abide by all federal, state, and local laws, for performing this order.
14.INDEPENDENT CONTRACTOR. City and Seller agree that Seller will act as an independent contractor and will have control of all work and the manner in which is it performed. Seller will be free to contract for similar service to be performed for other employers while under contract with City.
Seller is not an agent or employee of City and is not entitled to participate in any pension plan, insurance, bonus or similar benefits City provides for its employees. Any provision in this order that may appear to give City the right to direct Seller as to the details of doing the work or to exercise a measure of control over the work means that Seller will follow the direction of the City as to end results of the work only.
15.WAIVER. City’s review or acceptance of, or payment for, work product prepared by Seller under this order will not be construed to operate as a waiver of any rights City may have under this Agreement or of any cause of action arising from Seller’s performance. A waiver by City of any breach of any term, covenant, or condition contained in this order will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this order, whether of the same or different character.
16.INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Ventura County.
5 7667 N. San Fernando Rd. Burbank, CA 91505
Phone 818-988-3365 Fax 818-988-2573
1 August 7, 2024
To: - City of Simi Valley
Royal Industrial Solutions in Burbank, CA will supply Rockwell Automation hardware, software and services for the City of Simi Valley. We will also provide our local support team at no charge that includes specialists for PLCs, Software, Variable Frequency Drives, Industrial Control and Process Solutions. The City of Simi Valley’s discounts of 0-25% for Rockwell Automation Hardware and Software will remain in effect for the term of the contract.
Regards,
John Chandler
Account Manager
[email protected]
Royal Industrial Solutions
7667 N. San Fernando Rd.
Burbank, CA 91505
T 818-988-3365
F 818-988-2573
M 818-612-3012
Tyler Brubaker
District Manager | Royal Industrial Solutions
[email protected]
C: 661.713.0236
6