SAN2439.SR.MG.v2
CITY OF SIMI VALLEY
MEMORANDUM
S
eptember 9, 2024
TO: City Council
F
ROM: Department of Public Works
S
UBJECT: ADOPT A RESOLUTION TO WAIVE THE BID PROCESS PURSUANT TO
THE PUBLIC CONTRACT CODE, AND AWARD OF CONTRACT TO
ATLAS COPCO COMPRESSORS LLC FOR COMPRESSOR
MAINTENANCE AND REPAIRS AT THE CITY’S WATER QUALITY
CONTROL PLANT AND AUTHORIZE THE CITY MANAGER TO
APPROVE ANY SUBSEQUENT CONTRACT AMENDMENTS
STAFF RECOMMENDATION
I
t is recommended that the City Council consider:
1. A
dopt Resolution No. 2024- 36 (page 4) waiving the bid requirements under the Public Contract Code and award a five year contract (page 6) to Atlas Copco Compressors LLC (Atlas) in the amount of $79,785 for compressor maintenance and repairs; and
2. A
uthorize the City Manager to approve subsequent contract amendments to incorporate budgeted funds into the contract amount and extend the agreement term for one additional five year term, not to exceed a total term of 10 years.
BACKGROUND AND OVERVIEW
A
tlas compressors are the critical main functioning components for an anoxic mixing system that control part of the biological nutrient removal (BNR) processes at the City’s Water Quality Control Plant (WQCP) . To provide process improvements and energy efficient mixing, the compressors were selected during the design engineering for the Schneider Electric (ESCO) project. On July 1, 2021, the compressors and mixing system were put into service and have been maintained by Schneider Electric under a service agreement with Atlas. Atlas compressor parts and materials are offered exclusively by Atlas Copco Compressors LLC in California.
FINDINGS AND ALTERNATIVES
Atlas is the original equipment manufacturer (OEM) for parts, materials, repairs, and maintenance services. No division of any other company is authorized to perform OEM maintenance and repair services for Atlas within California. Use of non-Atlas OEM trained technicians and non- factory parts and materials would result in failures and void warranties on these newly installed Atlas Compressors resulting in significant operational impacts.
AGENDA ITEM NO.
Consent (5)
SAN2439.SR.MG.v2
Atlas is the exclusive distributor for the sales, aftermarket sales, and service of all Atlas Compressor products for which the WQCP is designed to use (see letter dated June 11, 2024, Attachment A, Page 25). Atlas submitted a proposal for five years with a total cost of $79,785, which includes quarterly preventative maintenance (PM) of the three WQCP Atlas compressors. The PM visits will include all necessary maintenance and services to ensure safe and reliable operation of the compressors and extend their useful life.
The City would ordinarily need to comply with the competitive bidding requirements of the California Public Contracts C ode for this project. H owever, Atlas is the only vendor in California authorized to provide Atlas Compressor products, maintenance, and repair services. Atlas has the proprietary training, specialized tooling, and testing processes to maintain compressor warranties.
The following alternatives are available to the City Council:
1. Adopt Resolution No. 2024- 36 waiving the bid requirements under the Public Contract Code and award a five year contract to Atlas Copco Compressors LLC in the amount of $79,785 for compressor maintenance and repairs;
2. Authorize the City Manager to approve subsequent contract amendments to incorporate budgeted funds into the contract amount and extend the agreement term for one additional five year term, not to exceed a total term of 10 years;
3. Provide staff with further direction.
Staff recommends Alternatives No. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to adopt Resolution No. 2024- 36 waiving the bid requirements under the Public Contract Code and award a five year contract to Atlas Copco Compressors LLC in the amount of $79,785 for compressor maintenance and repairs, and authorize the City Manager to approve subsequent contract amendments to incorporate budgeted funds into the contract amount and extend the agreement term for one additional five year term, not to exceed a total term of 10 years.
SUMMARY
The recently installed Atlas compressors at the WQCP are in need of quarterly inspection and PM to aide in maintaining proper WQCP BNR treatment operations and warranty coverage. Atlas is the only company that can reliably and efficiently perform maintenance and repair services on the Atlas compressors. Staff recommends that the City Council adopt a Resolution waiving the bid requirements under the Public Contract Code and award a contract to Atlas Copco Compressors LLC for compressor maintenance and repairs, and authorize the City Manager to execute subsequent contract amendments.
2 SAN2439.SR.MG.v2
___________________________________
Ronald K. Fuchiwaki,
P
ublic Works Director
Pr
epared by: Matt Mckenna, Senior Management Analyst
INDE
X Page
Res
olution No. 2024-36 ................................................................ 4 Maintenance Agreement .............................................................. 6 Attachment A to Staff Report - Sole Source Letter ..................... 25 3
RESOLUTION NO. 2024-36
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
STANDARD PUBLIC WORKS AGREEMENT WITH ATLAS COPCO
COMPRESSORS LLC WITHOUT THE NEED FOR COMPETITIVE BIDDING FOR COMPRESSOR MAINTENANCE IN THE AMOUNT OF $79,785
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On or about 2023, the City made improvements to the Water Quality Control Plant (“WQCP”) via project NO. CP70200032 to install Atlas Copco Compressors (“Atlas”) needed for the biological nutrient removal (“BNR”) process at the WQCP;
B. The Equipment requires ongoing maintenance (the “Project”).
C. Simi Valley Municipal Code (“SVMC”) section 2-9.206 ordinarily requires bidding for maintenance projects. While the City Manager has authority to solicit bids for under $25,000, the City Manager is not authorized to waive bidding requirements;
C. The purpose of bidding requirements is to guard against favoritism, improvidence, extravagance, fraud and corruption, to prevent waste of public funds, and to obtain the best economic result for the public;
D. The facts and circumstances of this Project, however, demonstrate that complying with the bidding requirements set forth in SVMC section 2- 9.206 would be unavailing or would not produce an advantage, and the advertisement for competitive bid would thus be undesirable and impractical for t he following reasons:
1. The Equipment is unique and its maintenance needs are specialized;
2. The Equipment services City operations that are crucial to public health and safety. Consequently, the City must ensure uniformity and continuity by selecting equipment that is only available from Atlas;
3. The successor-in-interest to the original vendor, Atlas, is able and willing to undertake maintenance of the Equipment. Its proposed cost for such maintenance is substantially similar to that of the original vendor and meets the City’s expectations and estimates; and
4. Seeking bids for the Project would not ful fill the intent of California law as to competitive bidding since Atlas is the only manufacturer and supplier of the Equipment.
E. In foregoing additional bidding for the Project, the City Council takes note of the analysis and decisions set forth in Graydon v. Pasadena Redevelopment Agency (1980) Cal.App.3d 631; Hodgeman v. City of San Diego (1942) 53 Cal. App.2nd 4 City of Simi Valley
Resolution No. 2024-36
SAN2439.RES.MG
610; Orange County Water Dist. v. Bennett (1958) 156 Cal. App.2nd 745; and Los Angeles G&E Corp. v. City of Los Angeles (1922) 188 Cal. 307.
SECTION 2. Authorizations. The City Manager is authorized to execute and agreement with Atlas for the Project in a form approved by the City Attorney for an initial five years and, if desirable, an amendment to such an agreement not to exceed a total term of 10 years.
SECTION 3. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 4. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 5. To the extent that any other resolution pertaining to the award of contract for purchase and installation of catch basin connector pipe screens is incorporated into this Resolution, it is superseded in its entirety.
SECTION 6. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Simi Valley , and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 7
. This Resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SIMI VALLEY ON THIS 9TH DAY OF SEPTEMBER, 2024.
Attest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
Ronald K. Fuchiwaki
Public Works Director
5 AGREEMENT NO. 3250012
MAINTENANCE AGREEMENT
BETWEEN
THE CITY OF SIMI VALLEY AND
ATLAS COPCO COMPRESSORS LLC
THIS MAINTENANCE AGREEMENT (“Agreement”) is made and entered into this 9th day of September, 2024, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation (“CITY”) and ATLAS COPCO COMPRESSORS LLC , a California Corporation (“CONTRACTOR”).
The Parties agree as follows:
1. CONSIDERATION.
A. As partial consideration, CONTRACTOR agrees to perform the work listed in the SCOPE OF SERVICES, below;
B. As additional consideration, CONTRACTOR and CITY agree to abide by the terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONTRACTOR for CONTRACTOR’s services not to exceed a total of $ 79,785 for the work.
CITY will pay for work on the basis of the hourly rates and cost reimbursement rates as specified in the attached Exhibit “A,” which is incorporated by reference.
2. TERM. The term of this Agreement will be from October 1, 2024 to September 30, 2029. The Agreement may be renewed for an additional five year term at CITY’s option, not to exceed a total term of 10 years.
3. SCOPE OF SERVICES.
A. This Agreement may be used for “maintenance services” which include the following:
i. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes.
ii. Minor repainting.
iii. Resurfacing of streets and highways at less than one inch.
iv. Landscape maintenance.
6 City of Simi Valley
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SAN2439.CON.MG 20220201MP – Maintenance Agreement
v. Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems and electrical transmission lines of 230,000 volts and higher.
vi. Carpentry, electrical, plumbing, glazing, and other craftwork;
B. CONTRACTOR will perform the maintenance services listed in the attached Exhibit “A,” which is incorporated by reference. The provisions contained in this Agreement supersede any conflicting provisions in Exhibit A.
C. Maintenance services required by CITY will be provided on an as -needed basis with CITY determining and advising CONTRACTOR as to when specific services are required to be performed or completed by CONTRACTOR. Requests must be memorialized using a notice to proceed that may be in the form of a purchase order. The provisions contained in this Agreement supersede any conflicting provisions in a purchase order issued for maintenance services.
D. CONTRACTOR will, in a workmanlike manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONTRACTOR by this Agreement.
4. PREVAILING WAGES.
A. Pursuant to Labor Code § 1720, and as specified in 8 California Code of Regulations § 16000, CONTRACTOR must pay its workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and implement any prevailing wage requirements and CONTRACTOR agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws.
B. In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem wages are available upon request from CITY’s Engineering Division or the website for State of California Prevailing wage determination at http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the prevailing rate of per diem wages at the job site.
C. CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the employment of apprentices by CONTRACTOR or any subcontractor.
7 City of Simi Valley
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D. Labor Code § 1777.5 requires CONTRACTOR or subcontractor employing tradesmen in any apprenticeship occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate must also fix the ratio o f apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases will not be less than one to five except:
i. When employment in the area of coverage by the joint appren - ticeship committee has exceeded an average of 15 percent in the 90 days before the request for certificate, or
ii. When the number of apprentices in training in the area exceeds a ratio of one to five, or
iii. When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state-wide or locally, or
iv. When CONTRACTOR provides evidence that CONTRACTOR
employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen.
v. CONTRACTOR is required to make contributions to funds estab- lished for the administration of apprenticeship programs if CONTRACTOR employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contract ors on the public works site are making such contributions.
vi. CONTRACTOR and any subcontractor must comply with Labor Code §§ 1777.5 and 1777.6 in the employment of apprentices.
vii. Information relative to apprenticeship standards, wage schedules and other req uirements may be obtained from the Director of Industrial Relations, ex -officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
E. CONTRACTOR and its subcontractors must keep an accurate certified payroll records showing the name, occupation, and the actual per diem wages paid to each worker employed in connection with this Agreement.
The record will be kept open at all reasonable hours to the inspection of the 8 City of Simi Valley
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body awarding the contract and to the Division of Labor Law Enforcement.
If requested by CITY, CONTRACTOR must provide copies of the records at its cost.
5. PAYMENTS.
A. For CITY to pay CONTRACTOR as specified by this Agreement, CONTRACTOR must submit a detailed invoice to CITY.
B. CITY’s City Manager may make payments up to $95,215 for special items of work not included in the project scope of work and services. Payments for special work will only be made after CITY issues a written notice to proceed for the specific special tasks. A written scope of work, an agreed upon additional fee, a schedule for starting and completing the special tasks, and an agreed upon extension of the time for performance, if needed to complete the special work, will be required before CITY issues a notice to proceed for special work. All special work will be subject to all other terms and provisions of this Agreement.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONTRACTOR represents that CONTRACTOR has
i. Thoroughly investigated and considered the scope of services to be performed;
ii. Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.
B. If services involve work upon any site, CONTRACTOR warrants that CONTRACTOR has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONTRACTOR discover any latent or unknown conditions that may materially affect the performance of the services, CONTRACTOR will immediately inform CITY of such fact and will not proceed except at CONTRACTOR’s own risk until written instructions are received from CITY.
7. INSURANCE.
A. Before commencing performance under this Agreement, and at all other 9 City of Simi Valley
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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: $ 2M
Business automobile liability $ 1M
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.
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.
8. TIME FOR PERFORMANCE . CONTRACTOR will not perform any work under this Agreement until:
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A. CONTRACTOR furnishes proof of insurance as required under Section 7 of this Agreement; and
B. CITY gives CONTRACTOR a written notice to proceed.
C. Should CONTRACTOR begin work in advance of receiving written authorization to proceed, any such professional servic es are at CONTRACTOR’s own risk.
9. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. Notice of termination will be in writing.
B. CONTRACTOR may terminate this Agreement upon providing written notice to CITY at least thirty (30) days before the effective termination date.
C. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated.
D. By executing this document, CONTRACTOR waives any and all claims for damages that might otherwise arise from CITY’s termination under this Section.
10. INDEMNIFICATION.
A. CONTRACTOR indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of this Agreement, or its performance. 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 this Agreem ent, or its performance, CONTRACTOR will defend CITY (at CITY’s request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise.
B. For purposes of this section “CITY ” includes CITY’s officers, officials, employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement.
11. INDEPENDENT CONTRACTOR. CITY and CONTRACT OR agree that CONTRACTOR will act as an independent contractor and will have control of all work and the manner in which is it performed. CONTRACTOR will be free to contract for similar service to be performed for other employers while under contract with CITY. 11 City of Simi Valley
Agreement No. 3250012
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SAN2439.CON.MG 20220201MP – Maintenance Agreement
CONTRACTOR 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 Agreement that may appear to give CITY the right to dir ect CONTRACTOR as to the details of doing the work or to exercise a measure of control over the work means that CONTRACTOR will follow the direction of the CITY as to end results of the work only.
12. NOTICES.
A. All notices given or required to be given pursuant to this Agreement will be in writing and may be given by personal delivery or by mail. Such noticing does not include day -to-day communications between CITY’s and CONTRACTOR’s project managers. Notice sent by mail will be addressed as follows:
To CITY: Department of Public Works
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Jason Denison
Plant Maintenance Supervisor
(805) 583-6460
To CONTRACTOR: Atlas Copco Compressor LLC
13438 Alondra Blvd
Cerritos, CA 90703
Attention: Ryan Diaz
(562) 322-8692
B. When addressed in accordance with this paragraph, notices will be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices will be deemed given at the time of actual delivery.
C. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
13. TAXPAYER IDENTIFICATION NUMBER. CONTRA CTOR will provide CITY with a Taxpayer Identification Number.
14. WAIVER. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement 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 Agreement, whether of the same or different character.
12 City of Simi Valley
Agreement No. 3250012
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SAN2439.CON.MG 20220201MP – Maintenance Agreement
15. CONSTRUCTION. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party.
16. SEVERABLE. If any portion of this Agreement is declared by a court of c ompetent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.
17. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement.
18. WAIVER. Waiver of any provision of this Agreement will not be deemed to constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver.
19. 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.
20. AUTHORITY/MODIFICATION. This Agreement may be subject to and conditioned upon approval and ratification by the Simi Valley City Council. This Agreement is not binding upon CITY until executed by the City Manager. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written agreement. CITY’s City Manager may execute any such amendment on behalf of CITY.
21. ACCEPTANCE OF ELECTRONIC SIGNATURES. This Agreement may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
22. EFFECT OF CONFLICT. In the event of any conflict , inconsistency, or incongruity between any provision of this Agreement, its attachments, the purchase order, or notice to proceed, the provisions of this Agreement will govern and control.
23. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement.
24. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, war, terrorist act, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other.
13 City of Simi Valley
Agreement No. 3250012
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SAN2439.CON.MG 20220201MP – Maintenance Agreement
25. ENTIRE AGREEMENT. This Agreement and its one attachment constitutes the sole agreement between CONTRACTOR and CITY respecting compressor maintenance services. To the extent that there are additional terms and conditions contained in Exhibit “A” that are not in conflict with this Agreement, those terms are incorporated as if fully set forth above. There are no other understandings, terms or other agreements expressed or implied, oral or written.
IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove 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: Atlas Copco Compressor LLC
By:
Algeria R. Ford, City Attorney
Print Name: Jack Gusciora
Approved as to Content: Title:
Regional Services Sales Manager
By:
Samantha C. Argabrite, City Manager
Title: Service Sales Manager
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
14 City of Simi Valley
Agreement No. 3250012
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SAN2439.CON.MG 20220201MP – Maintenance Agreement
EXHIBIT “A”
PROPOSAL
15 Atlas Copco Compressor Services
CITY OF SIMI VALLEY
Attn: Jason Denison
Quote no: 60794431
Created: 06/20/24
Expiration: 08/04/24
16 Quote number: 60794431
Created on: 06/20/2024
2/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
CITY OF SIMI VALLEY Atlas Copco Compressor Services
Attn to: Jason Denison Contact person: Ryan Diaz
2929 TAPO CANYON RD
SIMI VALLEY, CA 93063-2117
13438 Alondra Blvd
Cerritos, CA 90703
Phone: 805-583-6460 Phone: 562-322-8692
Email: [email protected] Email: [email protected]
Jason,
We appreciate your invitation to quote our service proposal, rest assured we will do our best to meet your expectations.
Our Plans are specifically designed to increase compressor equipment uptime, energy savings and administration efficiency at the minimum overall costs.
With our Parts Plan the genuine parts and lubricants, which are specifically selected and tested in our laboratories and research centres for your compressor needs, are reserved in stock for you to arrive in-time.
With Preventive Maintenance package Atlas Copco will relieve you of the burden of maintenance planning and will take over the responsibility for the regular servicing of your equipment:
o We will be happy to support your business assuring continuous on-time maintenance operation. o When service is due, you will be notified and a maintenance visit upon agreed time will be arranged. o Our service technicians are always up to date with the maintenance standards and will provide the best service for your compressor equipment.
This proactive maintenance combined with genuine parts are proved to significantly reduce the chances of a breakdown. You are not just buying a service; you obtain a reliable partner, and we are grateful for your trust.
In case you need additional information on this quotation or other service products, please do not hesitate to contact me at any time.
Ryan Diaz
Service Sales Manager
Atlas Copco Compressors LLC
Southern California Customer Center
13438 Alondra Blvd
Cerritos, CA 90703
Email: [email protected]
Mobile: 562-322-8692
24 Hour Dispatch: 800-872-3870
17 Quote number: 60794431
Created on: 06/20/2024
3/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Service Plans Overview
Preventive
Maintenance
(PM)
Parts, lubricants, and other disposables
Machine Oil & Filters ✓
All the Standard Service kits and disposables ✓
Automated parts/lubricants ordering and shipping ✓
Expert labor and machine service specialists
Filters and Oil service or replacements ✓
Preventive Maintenance visits (travel and mileage included, oil testing) ✓ Scheduled Machine Inspections with report and recommendations ✓ SPM or Vibrations’ measurement (when applicable) ✓
Automated visit scheduling ✓
SMART services **
SMARTLINK Uptime ✓
** Upgrade or installation of electronical hardware, including but not limited to SMARTBOX, SMART-CLAMP, SPM Sensor, Elektronikon might be required. Please verify with your Atlas Copco contact person.
18 Quote number: 60794431
Created on: 06/20/2024
4/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Service Plan is our commitment to success
19 Quote number: 60794431
Created on: 06/20/2024
5/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
SMARTLINK Services
SMARTLINK gathers, compares, and analyzes data from your Compressor equipment on the fly. When needed, it sends out warnings, both to our Central Command Center and to your cell phone or email, allowing us to predict and prevent potential negative events:
SMARTLINK also can provide performance and energy reports allowing you to monitor and tune your system’s energy efficiency. Choose the following SMART subscriptions with your Service Plan:
High Data Modes (1 data sync / 5 minutes, warning
events immediately) Uptime License
Machine Overview… ✓
Service status, history & visit reports… ✓
Documentation (instruction book, partslist, …)… ✓
Basic events (machine warnings & shutdowns)… ✓
Basic Event push notifications (mobile app)… ✓
Monthly Service overview report… ✓
Smart Health Assessment… ✓
Advanced notifications (24/7 via push, SMS, email) ✓
Uptime KPI’s & Quarterly report… ✓
Recommendations for Uptime… ✓
Sensor data graphs & data export… ✓
Energy/CO2 calculations & Quarterly report…
Recommendations for energy…
Energy reporting & benchmarking (ISO50001)…
Energy parameter trending & data export…
External API… ✓
SPM overview of the rotating components…
SPM KPI’s and trend (with normalization)…
SPM recommendations to avoid downtime…
20 Quote number: 60794431
Created on: 06/20/2024
6/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Service Plan(s) pricing and summary
# Serial Nbr Description Plan Planned Service
Jobs Per year Oil Type
Duration,
Years
Price
Per Year3
1 API335615 GA30 FF #1 PM Quarterly Visits RotoXtend 5 $ 5,319.00 2 API335618 GA30 FF #2 PM Quarterly Visits RotoXtend 5 $ 5,319.00 3 API335617 GA30 FF #3 PM Quarterly Visits RotoXtend 5 $ 5,319.00 Total Price Per Year (without tax): $ 15,957.00
1 yr PO 3 yrs PO 5 yrs PO Savings with a longer Purchase Order (PO)
The Price can be fixed for the duration of the PO with an exception to major inflation (see more information in the ‘Price and billing policy’ of the ‘Commercial T&C’s’).
By standard the price is subject to yearly indexation every 12 months anniversary of the agreement, and it is reviewed during every Purchase Order (PO) renewal.
1st year $ 15,957.00 $ 15,957.00 $ 15,957.00
2nd year $ 17,073.99 $ 15,957.00 $ 15,957.00
3rd year $ 18,269.17 $ 15,957.00 $ 15,957.00
4th year $ 19,548.01 $ 19,548.01 $ 15,957.00
5th year $ 20,916.37 $ 19,548.01 $ 15,957.00
Total $ 91,764.54 $ 86,967.02 $ 79,785.00
Savings over 5 years
$ 4,797.52 $ 11,979.54
5% 13%
21 Quote number: 60794431
Created on: 06/20/2024
7/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Service Plan(s) Visits
Line
No
Service
Plan Visits Schedule* per Agreement Year
1 2 3 4 5
1 API335615 GA30 FF #1
✓ PM IAIA IBIA IAIA IBIA IAIA
2 API335618 GA30 FF #2
✓ PM IAIA IBIA IAIA IBIA IAIA
3 API335617 GA30 FF #3
✓ PM IAIA IBIA IAIA IBIA IAIA
* The Visits schedule is estimated based on the agreed running hours and working environment, changes in schedule and cost might apply.
The exact allocation of Visits can also differ depending on the starting month after Purchase Order for the period is provided.
Atlas Copco reserves the right to change the actual Visits schedule for Service Plans with Risk Coverage upon necessity to assure equipment efficiency, uptime performance and to avoid breakdowns.
D&E visits are only performed if technically required to keep uptime performance and to avoid breakdowns, they cannot be requested with reference to the schedule in the table above if there is no necessity.
22 Quote number: 60794431
Created on: 06/20/2024
8/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Activities List per Visit
Equipment: GA30 FF- API335615, API335618, and API335617
Visit Type I A B
Follow Customer Specific Safety Rules x x x
Change air filter element(s) x x
Inspect cooling fan hub/blades x x x
Check cooling air flow x x x
Check Elektronikon functions x x x
Test pressure relief valves x x x
Check for air- water- & oil leakage x x x
Check Coupling/Belts x x x
Check rotation x x x
Check fastenings x x x
Check electrical components x x x
Clean air filter housing x x x
Clean compressor x x x
Change compressor oil filter x x
Oil change x
Oil sample analysis x x
Check/clean scavenge line x
Overhaul moisture trap x
Overhaul min. press valve x
Overhaul unloader valve x
Change oil separator element x x
Replace cubicle filters x x x
Test regulating system x x x
Check function of after cooler x x x
Function test moisture trap x x x
Check operation min.press valve x x x
Check oil level x x x
Check oil- & aftercooler,clean extern x x x
23 Quote number: 60794431
Created on: 06/20/2024
9/9
Atlas Copco Compressors LLC
300 Technology Center Way
Ste. 550
Rock Hill, SC 29730, USA
Phone: +1 866-472-1013
www.atlascopco.com/service-usa
www.atlascopco.com/air-usa
Commercial Terms and Conditions of Service
1. To be signed by 2. Agreement start date 3. Agreement end date _____________________ 07/01/2024 06/30/2029
4. Reference PO Nr 5. Purchase Order renewal 6. Billing frequency 7. Payment terms _______________ 30 days before PO expiration Quarterly within 30 days after the invoice date
8. Transportation, other costs 9. Price policy 10. Service plan termination Freight included. Expedit ing at extra
charge.
Forklift and/or other lifting equipment with
qualified operator are to be provided by
customer. It can be provided by Atlas
Copco for an extra charge if notified at least
30 days before the visit.
Overhauls and other services are
performed on site, otherwise freight costs
and other costs may apply.
Extra costs apply if work is performed
outside normal working hours (8:00am -
5:00pm, Monday through Friday).
Oil and waste disposal are not included.
Quoted prices exclude applicable tax. Taxes are listed in the invoice. Invoices are issued at the beginning of the billing period.
Prices are fixed for the PO duration and are subject to 7% increase year -over-year at every PO renewal. Price is
requoted when multi-year PO is expired.
In case of major inflation, when CPI ( Consumer Price
Index published by U.S. Bureau of Labor Statistics)
increase exceeds 7%, Atlas Copco reserves the right to
match the price increase to CPI at any contract
anniversary even for multi-year PO’s.
Price is subject to requote at contract anniversary if
equipment yearly running hours exceed the agreed hours
by 1000 or in case of change in operating environment or installation.
May be terminated by either party with 30 days written notice.
Seller is entitled to compensation for services and products that were provided before the termination, but not fully paid.
Customer is entitled to a refund for any services that have not been performed but already paid in full.
Customer is responsible for the general list price of any general overhaul, maintenance or repair of a major component (elements involved in air compression or control of air quality, gas purity; drivetrain; motor; VSD; cooler) performed under the Service Plan, that Customer seeks to terminate prior to the defined term.
Service Plan may be cancelled by Atlas Copco in the absence of a valid PO.
Preliminary service plan termination may result in disrupted maintenance schedule and voided warranty.
11. Service plan(-s) scope and definitions:
Service plan is a package of services allocated to a particular equipment unit with Seral Nr. It can include regular maintenance (parts, consumables, components, and expert labor), digital services and risk management solutions. The scope of standard Service Plans is defined below:
Plan Parts and
consumables
Professional
Service
Maintenance of
major components
when needed
Repairs and risk management
(it requires SMARTLINK &
Remote Diagnostics)
Comments
Parts Plan (PP) Included Not Included Not Included Not applicable Service kits and lubricants Preventive maintenance (PM) Included Included Not Included Only Standard Warranty Warranty requirement
Any work outside the standard scope and activities would be billed on a Time & Materials basis after written approval; service and repair of non-Atlas Copco external starters are not included. Compression elements replaced under Service plan or Warranty are to be returned to Atlas Copco.
12. Customer responsibilities 13. Liability and Limitations on Service Keep equipment in clean condition, free of any corrosive contaminants and acceptable working environment. Perform general cleaning of main and supporting equipment and parts (including regular cooler cleaning), unless otherwise explicitly agreed in writing by Atlas Copco.
Use only genuine Atlas Copco Parts and Lubricants approved by Atlas Copco. No changes to equipment or installation are allowed unless authorized by Atlas Copco.
Take necessary actions on Atlas Copco recommendations regarding service and required changes to installation or working environment of the compressor equipment.
Perform daily and weekly inspection on the compressor equipment . Inform Atlas Copco of any changes in compressor operational conditions, changes in the equipment installation and disconnected from SMARTLINK network status.
NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT
NOT LIMITED TO, LOSS OF TOTAL OR PARTIAL USE OF EQUIPMENT, DOWNTIME COST, LOSS OF PROFITS OR REVENUES. ATLAS COPCO’S TOTAL
LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE YEARLY VALUE OF THE SERVICE PLAN FOR THE PARTICULAR EQUIPMENT UNIT.
Repairs and any form of compensation are not provided if caused by negligence, abuse, vandalism, force majeure, ignorance of customer responsibilities, operation outside specified parameters (incl. but not limited to cooling water, ventilation, electrical supply, ambient temperature, dust, corrosive environment, humidity) and in case of overdue maintenance beyond 60 days.
Inability to provide parts, components, and related services in case of obsolescence due to equipment age. In such a case the cost of undelivered service will be credited to the customer.
‘ATLAS COPCO GENERAL TERMS AND CONDITIONS OF SERVICE’ ARE ALSO PART OF THE AGREEMENT AND CAN BE CONSULTED FOLLOWING THE LINK OR PRINTED AND APPENDED TO THE AGREEMENT UPON REQUEST. ALL OTHER TERMS ARE SPECIFIED IN THE ‘SERVICE PLAN(S) PRICING AND SUMMARY’.
THIS DOCUMENT, AND ANY PART OF IS CONFIDENTIAL AND MUST BE HANDLED IN ACCORDANCE WITH CONFIDENTIALITY OBLIGATIONS OF THE ‘GENERAL TERMS AND CONDITIONS OF SERVICE’, AND THEY CANNOT BE SHARED WITH A THIRD PARTY WITHOUT AN EXPLICIT WRITTEN CONSENT OF ATLAS COPCO By signing this document, we agree to all the stated terms and conditions, and you are authorizing ‘Atlas Copco Compressors LLC’ to automatically invoice as detailed above.
GENERAL T&C OF SERVICE
Atlas Copco Compressors LLC CITY OF SIMI VALLEY
Signature ____________________________ Signature ____________________________ Date _______________ (MM/DD/YYYY) Date _______________ (MM/DD/YYYY) Printed Name ____________________________ Printed Name ____________________________ Title ____________________________ Title ____________________________
24 Atlas Copco Compressors LLC
Southern California Customer Center Telephone: 800-872-3870 13438 Alondra Blvd
Cerritos, CA 90703
atlascopco.com
City of Simi Valley
600 W Los Angeles Ave.
Simi Valley, CA 93065
Attention: Jason Denison
(805) 583-6460
[email protected]
Date: June 11, 2024
RE: Sole Source Letter
To Whom It May Concern,
This letter is to confirm that authorized Atlas Copco CTS Services are a sole source product, offered exclusively by Atlas Copco Compressors LLC in California. No division of any other company is authorized to perform OEM services for Atlas Copco within California. This product must be purchased directly by institutions from Atlas Copco at address 13438 Alondra Blvd, Cerritos, CA 90703. There are no agents or dealers authorized to represent this product.
Additionally, competition is precluded by the existence of an agreement with the manufacturer, who has given us an exclusive right to market this OEM service. There is no other like item(s) or product(s) available for purchase that would serve the same purpose or function and there is only one price for the services and maintenance agreements because of exclusive distribution or marketing rights.
All the best,
Ryan Diaz | Service Sales Manager
Email: [email protected]
Mobile: (562) 322-8692
ATTACHMENT A
25