HomeMy WebLinkAbout06864 - MERCURY ASSOC INC CONSULTING SERVICES AGREEMENT
Fleet Management Consulting Services
Mercury Associates, Inc.
THIS AGR EMENT FOR CONSULTING SERVICES ("Agreement") is made and
entered into on , 201�, by and between the City of Palm Springs, a
California charter c m ity and u icipal corporation ("City"), and Mercury Associates, Inc., a
Maryland corporation, ("Consultant"). City and Consultant are individually referred to as
"Party" and are collectively referred to as the "Parties".
RECITALS
A. City requires the services of a professional firm specializing in fleet
management consulting, ("Project").
B. Consultant has submitted to City a proposal to provide fleet management
consulting services to City under the terms of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified and desires to provide the necessary services to City for the Project-
D. City desires to retain the services of Consultant for the Project.
In consideration of these promises and mutual agreements, City agrees as
follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide fleet management consulting services to City as
described in the Scope of Services/Work attached to this Agreement as Exhibit "A" and
incorporated by reference (the "services" or "work"). Exhibit "A" includes the agreed
upon schedule of performance and the schedule of fees. Consultant warrants that all
services and work shall be performed in a competent, professional, and satisfactory
manner consistent with prevailing industry standards. In the event of any inconsistency
between the terms contained in the Scope of Services/Work and the terms set forth in
this Agreement, the terms set forth in this Agreement shall govern.
1.2 Compliance with Law. Consultant services rendered under this
Agreement shall comply with all applicable federal, state, and local laws, statutes and
ordinances and all lawful orders, rules, and regulations.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and
expense such licenses, permits, and approvals as may be required by law for the
performance of the services required by this Agreement.
720599.1 ' ORIGiNAI B1�ed.5/5/16
AND/OR AGREEM
ENT
1.4 Familiarity with Work. By executing this Agreement, Consultant
warrants that it has carefully considered how the work should be performed and fully
understands the facilities, difficulties, and restrictions attending performance of the work
under this Agreement.
2. TIME FOR COMPLETION
The time for completion of the services to be performed by Consultant is an
essential condition of this Agreement. Consultant shall prosecute regularly and
diligently the work of this Agreement according to the agreed upon schedule of
performance set forth in Exhibit "A." Consultant shall not be accountable for delays in
the progress of its work caused by any condition beyond its control and without the fault
or negligence of Consultant. Delays shall not entitle Consultant to any additional
compensation regardless of the party responsible for the delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. Consultant shall be compensated and
reimbursed for the services rendered under this Agreement in accordance with the
schedule of fees set forth in Exhibit "A". The total amount of Compensation shall not
exceed $19,350.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall submit to City an invoice for services rendered prior to the
date of the invoice, no later than the first working day of such month, in the form
approved by City's finance director. Payments shall be based on the hourly rates set
forth in Exhibit "A" for authorized services performed. City shall pay Consultant for all
expenses stated in the invoice that are approved by City and consistent with this
Agreement, within thirty (30) days of receipt of Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of
Services/Work is requested by City, Parties shall execute a written amendment to this
Agreement, specifying all proposed amendments, including, but not limited to, any
additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents, work
product, or work, when required by the enactment or revision of any subsequent law, or
B. To provide for additional services not included in this Agreement or
not customarily furnished in accordance with generally accepted practice in Consultant's
profession.
3.4 Appropriations. This Agreement is subject to, and contingent upon,
funds being appropriated by the City Council of City for each fiscal year. If such
appropriations are not made, this Agreement shall automatically terminate without
penalty to City.
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4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this
Agreement.
4.2 Schedule of Performance. All services rendered under this Agreement
shall be performed under the agreed upon schedule of performance set forth in Exhibit
"A." Any time period extension must be approved in writing by the Contract Officer.
4.3 Force Majeure. The time for performance of services to be rendered
under this Agreement may be extended because of any delays due to unforeseeable
causes beyond the control and without the fault or negligence of Consultant, if
Consultant notifies the Contract Officer within ten (10) days of the commencement of
such condition. Unforeseeable causes include, but are not limited to, acts of God or of
a public enemy, acts of the government, fires, earthquakes, floods, epidemic,
quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather.
After Consultant notification, the Contract Officer shall investigate the facts and the
extent of any necessary delay, and extend the time for performing the services for the
period of the enforced delay when and if, in the Contract Officer's judgment, such delay
is justified. The Contract Officer's determination shall be final and conclusive upon the
parties to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this
Agreement, this Agreement shall continue in full force and effect for a period of 6
months, commencing on June 15. 2016, and ending on December 31. 2016, unless
extended by mutual written agreement of the parties.
4.5 Termination Prior to Expiration of Term. City may terminate this
Agreement at any time, with or without cause, upon thirty (30) days written notice to
Consultant. Where termination is due to the fault of Consultant and constitutes an
immediate danger to health, safety, and general welfare, the period of notice shall be
such shorter time as may be determined by the City. Upon receipt of the notice of
termination, Consultant shall immediately cease all services except such as may be
specifically approved by the Contract Officer. Consultant shall be entitled to
compensation for all services rendered prior to receipt of the notice of termination and
for any services authorized by the Contract Officer after such notice. Consultant may
terminate this Agreement, with or without cause, upon thirty (30) days written notice to
City.
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is
designated as being the principal and representative of Consultant authorized to act and
make all decisions in its behalf with respect to the specified services and work: Randy
Owen, CAFM, Senior Vice President. It is expressly understood that the experience,
knowledge, education, capability, and reputation of the foregoing principal is a
substantial inducement for City to enter into this Agreement. Therefore, the foregoing
3 Revised'.515/16
principal shall be responsible during the term of this Agreement for directing all activities
of Consultant and devoting sufficient time to personally supervise the services under
this Agreement. The foregoing principal may not be changed by Consultant without
prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager or
his/her designee ("Contract Officer"). Consultant shall be responsible for keeping the
Contract Officer fully informed of the progress of the performance of the services.
Consultant shall refer any decisions that must be made by City to the Contract Officer.
Unless otherwise specified, any approval of City shall mean the approval of the Contract
Officer.
5.3 Prohibition Aqainst Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and
employees, were a substantial inducement for City to enter into this Agreement.
Therefore, Consultant shall not contract with any other individual or entity to perform
any services required under this Agreement without the City's express written approval.
In addition, neither this Agreement nor any interest may be assigned or transferred,
voluntarily or by operation of law, without the prior written approval of City.
5.4 Independent Contractor. Neither City nor any of its employees shall
have any control over the manner, mode, or means by which Consultant, its agents or
employees, perform the services required, except as otherwise specified. Consultant
shall perform all required services as an independent contractor of City and shall not be
an employee of City and shall remain at all times as to City a wholly independent
contractor with only such obligations as are consistent with that role, however, City shall
have the right to review Consultant's work product, result, and advice. Consultant shall
not at any time or in any manner represent that it or any of its agents or employees are
agents or employees of City.
5.5 Personnel. Consultant agrees to assign the following individuals to
perform the services in this Agreement. Consultant shall not alter the assignment of the
following personnel without the prior written approval of the Contract Officer. Acting
through the City Manager, the City shall have the unrestricted right to order the removal
of any personnel assigned by Consultant by providing written notice to Consultant.
Name: Title:
Richard Simon Senior Consultant
Steve Saltzgiver Manager
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of
insurance as set forth in the attached Exhibit "B", incorporated herein by reference.
4 devised-515,16
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent permitted by law, Consultant shall
defend (at Consultant's sole cost and expense), indemnify, protect, and hold harmless
City, its elected officials, officers, employees, agents, and volunteers (collectively the
"Indemnified Parties"), from and against any and all liabilities, actions, suits, claims,
demands, losses, costs, judgments, arbitration awards, settlements, damages,
demands, orders, penalties, and expenses including legal costs and attorney fees
(collectively "Claims"), including but not limited to Claims arising from injuries to or death
of persons (Consultant's employees included), for damage to property, including
property owned by City, from any violation of any federal, state, or local law or
ordinance, and from errors and omissions committed by Consultant, its officers,
employees, representatives, and agents, that arise out of or relate to Consultant's
performance under this Agreement. This indemnification clause excludes Claims
arising from the sole negligence or willful misconduct of the City, its elected officials,
officers, employees, agents, and volunteers. Under no circumstances shall the
insurance requirements and limits set forth in this Agreement be construed to limit
Consultant's indemnification obligation or other liability under this Agreement.
Consultant's indemnification obligation shall survive the expiration or earlier termination
of this Agreement until all actions against the Indemnified Parties for such matters
indemnified are fully and finally barred by the applicable statute of limitations or, if an
action is timely filed, until such action is final. This provision is intended for the benefit
of third party Indemnified Parties not otherwise a party to this Agreement.
7.2 Desian Professional Services Indemnification and Reimbursement. If
the Agreement is determined to be a "design professional services agreement" and
Consultant is a "design professional" under California Civil Code Section 2782.8, then:
A. To the fullest extent permitted by law, Consultant shall indemnify,
defend (at Consultant's sole cost and expense), protect and hold harmless City and its
elected officials, officers, employees, agents and volunteers and all other public
agencies whose approval of the project is required, (individually "Indemnified Party";
collectively "Indemnified Parties") against any and all liabilities, claims, judgments,
arbitration awards, settlements, costs, demands, orders and penalties (collectively
"Claims"), including but not limited to Claims arising from injuries or death of persons
(Consultant's employees included) and damage to property, which Claims arise out of,
pertain to, or are related to the negligence, recklessness or willful misconduct of
Consultant, its agents, employees, or subcontractors, or arise from Consultant's
negligent, reckless or willful performance of or failure to perform any term, provision,
covenant or condition of this Agreement ("Indemnified Claims'), but Consultant's liability
for Indemnified Claims shall be reduced to the extent such Claims arise from the
negligence, recklessness or willful misconduct of the City and its elected officials,
officers, employees, agents and volunteers.
B. The Consultant shall require all non-design-professional sub-
contractors, used or sub-contracted by Consultant to perform the Services or Work
required under this Agreement, to execute an Indemnification Agreement adopting the
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720599.1
indemnity provisions in sub-section 7.1 in favor of the Indemnified Parties. In addition,
Consultant shall require all non-design-professional sub-contractors, used or sub-
contracted by Consultant to perform the Services or Work required under this
Agreement, to obtain insurance that is consistent with the Insurance provisions as set
forth in this Agreement, as well as any other insurance that may be required by Contract
Officer.
8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract
Officer reports concerning the performance of the services required by this Agreement,
or as the Contract Officer shall require.
8.2 Records. Consultant shall keep complete, accurate, and detailed
accounts of all time, costs, expenses, and expenditures pertaining in any way to this
Agreement. Consultant shall keep such books and records as shall be necessary to
properly perform the services required by this Agreement and enable the Contract
Officer to evaluate the performance of such services. The Contract Officer shall have
full and free access to such books and records at all reasonable times, including the
right to inspect, copy, audit, and make records and transcripts from such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this
Agreement shall be the property of City. Consultant shall deliver all above-referenced
documents to City upon request of the Contract Officer or upon the termination of this
Agreement. Consultant shall have no claim for further employment or additional
compensation as a result of the exercise by City of its full rights or ownership of the
documents and materials. Consultant may retain copies of such documents for
Consultant's own use. Consultant shall have an unrestricted right to use the concepts
embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services
under this Agreement shall not be released publicly without the prior written approval of
the Contract Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers,
employee time sheets, accounting records, and other evidence pertaining to costs
incurred while performing under this Agreement. Consultant shall make such materials
available at its offices at all reasonable times during the term of this Agreement and for
three (3) years from the date of final payment for inspection by City and copies shall be
promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both
as to validity and to performance of the parties in accordance with the laws of the State
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of California. Legal actions concerning any dispute, claim, or matter arising out of or in
relation to this Agreement shall be instituted in the Superior Court of the County of
Riverside. State of California, or any other appropriate court in such county, and
Consultant covenants and agrees to submit to the personal jurisdiction of such court in
the event of such action.
9.2 Interpretation. This Agreement shall be construed as a whole according
to its fair language and common meaning to achieve the objectives and purposes of the
Parties. The terms of this Agreement are contractual and the result of negotiation
between the Parties. Accordingly, any rule of construction of contracts (including,
without limitation, California Civil Code Section 1654) that ambiguities are to be
construed against the drafting party, shall not be employed in the interpretation of this
Agreement. The caption headings of the various sections and paragraphs of this
Agreement are for convenience and identification purposes only and shall not be
deemed to limit, expand, or define the contents of the respective sections or
paragraphs.
9.3 Waiver. No delay or omission in the exercise of any right or remedy of a
non-defaulting party on any default shall impair such right or remedy or be construed as
a waiver. No consent or approval of City shall be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of Consultant. Any
waiver by either party of any default must be in writing. No such waiver shall be a
waiver of any other default concerning the same or any other provision of this
Agreement.
9.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies
of the parties are cumulative. The exercise by either party of one or more of such rights
or remedies shall not preclude the exercise by it, at the same or different times, of any
other rights or remedies for the same default or any other default by the other party.
9.5 Legal Action. In addition to any other rights or remedies, either party
may take legal action, in law or in equity, to cure, correct, or remedy any default, to
recover damages for any default, to compel specific performance of this Agreement, to
obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the
purposes of this Agreement.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee
of City shall be personally liable to the Consultant, or any successor-in-interest, in the
event of any default or breach by City or for any amount which may become due to the
Consultant or its successor, or for breach of any obligation of the terms of this
Agreement.
10.2 Conflict of Interest. Contractor acknowledges that no officer or
employee of the City has or shall have any direct or indirect financial interest in this
Revised 515/16
720599.1
Agreement nor shall Contractor enter into any agreement of any kind with any such
officer or employee during the term of this Agreement and for one year thereafter.
Contractor warrants that Contractor has not paid or given, and will not pay or give, any
third party any money or other consideration in exchange for obtaining this Agreement.
10.3 Covenant Against Discrimination. Consultant covenants that, by and
for itself, its heirs, executors, assigns, and all persons claiming under or through them,
that there shall be no discrimination or segregation in the performance of or in
connection with this Agreement regarding any person or group of persons on account of
race, color, creed, religion, sex, marital status, disability, sexual orientation, gender
identity, gender expression, national origin, physical or mental disability, medical
condition, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or
communication that either party desires, or is required to give to the other party or any
other person shall be in writing and either served personally or sent by pre-paid, first-
class mail to the address set forth below. Notice shall be deemed communicated
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
Either party may change its address by notifying the other party of the change of
address in writing.
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: Randy Owen
Mercury Associates, Inc.
7361 Calhoun Place, Suite 680
Rockville, MD 20855
301-519-0535
rowen@mercury-assoc.com
11.2 Integrated Agreement. This Agreement contains all of the agreements of
the parties and supersedes all other written agreements.
11.3 Amendment. No amendments or other modifications of this Agreement
shall be binding unless through written agreement by all Parties.
11.4 Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such a manner as to be effective and valid under applicable law. In the
event that any one or more of the phrases, sentences, clauses, paragraphs, or sections
contained in this Agreement shall be declared invalid or unenforceable by valid
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judgment or decree of a court of competent jurisdiction, such invalidity or
unenforceability shall not affect any of the remaining phrases, sentences, clauses,
paragraphs, or sections of this Agreement, which shall be interpreted to carry out the
intent of the parties.
11.5 Successors in Interest. This Agreement shall be binding upon and inure
to the benefit of the Parties' successors and assignees.
11.6 Third Party Beneficiary. Except as may be expressly provided for in this
Agreement, nothing contained in this Agreement is intended to confer, nor shall this
Agreement be construed as conferring, any rights, including, without limitation, any
rights as a third-party beneficiary or otherwise, upon any entity or person not a party to
this Agreement. .,,,,,,___
11.7 Recitals. The above-referenced Recitals are hereby incorporated into the
Agreement as though fully set forth in this Agreement and each Party acknowledges
and agrees that such Party is bound, for purposes of this Agreement, by the same.
11.8 Authority. The persons executing this Agreement on behalf of the Parties
warrant that they are duly authorized to execute this Agreement on behalf of Parties and
that by so executing this Agreement the Parties are formally bound to the provisions of
this Agreement.
y Revised 5/5/16
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
dates stated below.
"CITY"
City of Palm Springs
Date: Q�
David H. Ready �—
City Manager APPROVED BY Off MArER
APPROVED AS TO FORM: ATTEST
By: d�44-14C By:
Dougl s C. Holland, James Thompson,
City Attorney City Clerk
"CONSULTANT"
Mercury Associates, Inc.
Date: r I l By : a"-,
Randy Owen
Senior Vice President
Date:
(name)
(secretary)
da
Not to Exceed $
Without The Express Written
Authorization Of The City
Manager
10 Revised:5/5/16
720599.1
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720599.1
EXHIBIT "A"
CONSULTANT'S
SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of erformance.;
12 Revi"d:515116
Proposal to Provide
Fleet Management
Consulting Services
to the City of
eA M
CALIFQRNIA
like no dace else.
June 2016
MERCURY ASSOCIATES, INC .
MMUMMMI
June 14, 2016
Mr. Marcus L. Fuller, MPA, PE, PLS
Assistant City Manager/City Engineer
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Dear Mr. Fuller:
Mercury Associates, Inc. is pleased to submit this proposal to provide fleet management
consulting services to the City of Palm Springs. As the largest and most experienced
fleet management consulting firm in North America, we have unmatched expertise and
capacity to ensure the success of this project for the City.
In the body of our proposal we have provided a suggested work plan, a proposed
budget, an overview of the qualifications of our firm and proposed project team, and
references from recent projects. As requested, information on our cooperative
purchasing agreement with the State of California can be found at the following web
address (http://www.dgs.ca.ciov/pd/Programs/Leveraged/CMAS.asr)x). Our CMAS
contract number is 4-08-03 0341A. We also have a GSA Schedule that clients have
used to access our services. Please let me know if I can provide any details about these
contracts.
I will be the principal point of contact for all matters relating to this proposal and can be
reached at 704 906 8898 or at rowen@mercury-assoc.com. Please do not hesitate to
contact me if I can answer any questions.
Very truly yours,
44W JA, 0 V40%.
Randy Owen
Senior Vice President
Mercury Associates, Inc. •www.mercury-assoc.com
7361 Calhoun Place, Suite 680 • Rockville, MD 20855 • 301 519 0535
i \ttt1 ;''[IftI�r Proposal to Provide Fleet
CAIIf ORMIAI Management Consulting Services
TABLE OF CONTENTS
PROJECT APPROACH AND UNDERSTANDING.......................................................... 1
PROJECT UNDERSTANDING .................................................................................... 1
ProjectApproach ......................................................................................................... 1
PROPOSED PROJECT WORK PLAN............................................................................ 5
PHASE 1: ASSESS PARTS OPERATIONS ................................................................ 5
QUALIFICATIONS AND EXPERIENCE.......................................................................... 5
COMPANY DESCRIPTION ......................................................................................... 5
PROJECT STAFFING RESOURCES.......................................................................... 7
ASSIGNED RESPONSIBILITIES................................................................................. 8
REFERENCES.............................................................................................................. 10
PROJECTBUDGET...................................................................................................... 11
FEES.......................................................................................................................... 11
PROJECT SCHEDULE................................................................................................. 12
APPENDIX...................................................................................................................... 1
CLIENTS SERVED BY MERCURY ASSOCIATES ..................................................... 1
"T IAM 100
1�71 �K �41f i( M Proposal to Provide Fleet
cwLofoxwu Management Consulting Services
L .no plot..1.e'
PROJECT APPROACH AND UNDERSTANDING
This proposal is submitted to City of Palm Springs by Mercury Associates, Inc., an
employee-owned fleet management consulting firm incorporated and headquartered in
Maryland. We have more than two-dozen employees located throughout the United
States and in Canada, many of whom served as professional fleet managers in the
public and/or private sector prior to commencing their consulting careers. One of our
Associates, Richard Simon, resides in Palm Desert. Mercury's mission is to assist
organizations in improving the management and operation of their fleets. Our 600 past
clients include federal agencies, states, cities and counties, utilities, schools, and private
companies.
PROJECT UNDERSTANDING
We understand the City is interested in engaging a firm to perform a review of the Fleet
Management Division, including parts practices, inventory processes and security, and
internal controls.
We understand the current fiscal year budget is $3.4 million for operating expenses with
an additional $2.4 million for capital. We understand the fleet division has 8 total staff: 1
Manager, 1 Parts Specialist, 1 office assistant, and 5 fleet maintenance technicians who
maintain 438 pieces of equipment/vehicles.
PROJECT APPROACH
Mercury's approach to conducting all of our consulting engagements is highly inclusive,
interactive, and results oriented. Whether we are conducting a comprehensive review of
a fleet operation or a tightly focused analysis of a single issue or problem, our ultimate
goal as management consultants is for our clients to implement our recommendations.
This requires that the organizations with which we work not only understand the
analytical results and reasoning behind these recommendations, but actually take
ownership of proposed organizational, business process, and other changes. This
requires, in turn, that we work closely with various stakeholder groups in the City of
Palm Springs from the outset of the study.
While you will have a team of experts working on your project, there will be one Project
Manager (a Principal of the Company) and one Project Lead who will be the contact for
day-to-day activities. The Project Lead will coordinate the work of other consultants in
various functional areas. The entire team will meet regularly to share findings,
brainstorm and arrive at coordinated recommendations.
In evaluating the City's fleet management practices and identifying opportunities to
reduce costs and improve business practices, our project team will be guided by four
key principles that we have found to be critical to managing and operating a fleet of any
size and composition effectively and efficiently. Each of these is discussed briefly below.
Quality Matters. The quality of the services provided by fleet management
organizations is of paramount importance because, without vehicle and equipment
users, there would be no need for such organizations. In a word, meeting the needs of
VIVAUN iSM 1
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c71 lK 4 jl y Proposal to Provide Fleet
CAUFORNIA J Management Consulting Services
14,m pla<.aim'
City agencies for vehicles and equipment is the raison d'etre of the organization. Thus,
the most important indicators of its performance pertain to the results or outputs of its
fleet management efforts, namely, the safety, availability, suitability, reliability,
efficiency, and environmental soundness of the vehicles, equipment, and related goods
and services City agencies use to perform their missions. We recognize the potential
risk of emphasizing the importance of asset and service quality in a proposal to perform
a study whose major goals may include reducing fleet costs, but the single-minded
pursuit of cost savings absent a full understanding of the impact of cost reductions on
fleet quality would not only ignore the fundamental purpose of a fleet management
organization but run the risk of actually increasing the overall costs of the City's fleet.
Costs Must Be Controlled. Any organization can provide high-quality goods and
services if cost control is no object. Few of us, alas, have the luxury of working for
organizations — whether in the public or private sectors — in which this is the case.
Managing the costs of the vehicles and services provided by an organization is
important for two reasons. First, all public-sector organizations have a fundamental
fiduciary responsibility to use taxpayers' money wisely, regardless of whether they
deliver a high-profile, "front-line" service such as law enforcement, or a behind-the-
scenes, "support" service such as fleet management. Second, in contrast to a lot of the
activities performed by City employees, many fleet management activities are capable
of being outsourced to the private sector if they cannot be performed cost effectively in
house. Consequently, the need to provide services that are competitive in cost as well
as quality with those offered by contractors and vendors is an inescapable reality of
public-sector fleet management today. This is not an endorsement of outsourcing;
simply a recognition of the fact that the private sector is a ready source of fleet
management services and, hence, cost benchmarks which many taxpayers and elected
officials will not hesitate to use to judge the performance of an in-house fleet
management program.
Fleet Management Is Not Just About Vehicles. Fleet management organizations
have always had to perform many different asset management activities: specifying and
acquiring vehicles; scheduling vehicles for maintenance and repair services, assigning
work orders to mechanics, farming out certain vehicle repair jobs to vendors, ordering
parts, replenishing fuel stocks, submitting warranty claims, and so forth. Over the last 20
years, however, technological, regulatory, environmental, and other developments and
trends have steadily increased the complexity of fleet management endeavors —
especially in areas that have nothing to do with vehicles and equipment per se. Effective
fleet management organizations are multi-faceted and multi-talented; fully conversant
with political objectives, regulations, policies, and procedures associated not only with
acquiring, caring for, and disposing of vehicles and equipment, but with sourcing and
supply chain management, risk management, human resources management, facility
management, information management, customer relationship management, and
financial management. For this reason, an effective fleet management evaluation and
reengineering study such as this one must examine a large number and broad array of
enterprise management practices that extend well beyond the realm of what many "lay
persons" might consider to be fleet-related functions and practices.
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A Strategic Approach Is Essential To Success. A strategic approach to fleet
management is one in which the interrelationships among and between the many asset
management and enterprise management functions that the City must perform to
optimize fleet performance and costs is both understood and managed. For example,
optimizing fleet performance requires effective vehicle acquisition, operation,
maintenance, and replacement processes. Deficiencies in any one of these areas can
undermine fleet performance no matter how good an organization's practices are in the
other areas. Moreover, effective performance in each of these areas requires
collaboration or, at a minimum, coordination with non-fleet management organizations.
It is difficult to maximize mechanic performance, for instance, if a fleet maintenance
organization is hamstrung b employee classification, compensation, evaluation, and
9 9 YP
other policies and procedures that create disincentives for employees to seek out
opportunities for training and professional advancement. Similarly, it is difficult to ensure
a high degree of vehicle reliability or availability, no matter how skilled or motivated
mechanics are, if budget and finance organizations cannot ensure that there is sufficient
funding to replace all vehicles in a timely manner. A strategic perspective is critical for
tying together the myriad, interdisciplinary and inter-departmental responsibilities,
authority, policies, and procedures that collectively determine the efficiency and
effectiveness of a large municipal fleet operation.
In formulating findings and recommendations, Mercury Associates utilizes best practice
information collection and analysis techniques that fall into two broad categories:
quantitative performance measurement and benchmarking, and business process
mapping and gap analysis. Having conducted best management practices evaluations
for literally hundreds of fleet operations, our project team members understand both the
importance of, and the best techniques for, collecting information efficiently and with
minimal disruption to day-to-day client work activities. The primary techniques we will
use in this project are the following.
Written Information Request. We begin all program evaluation projects like this one
by providing the client with a detailed checklist specifying the types of documentary
material (e.g., organization charts, policy and procedure statements, etc.) and
quantitative data (e.g., work order and parts transaction data, vehicle meter readings,
revolving fund revenues and expenditures, etc.) we would like to review in evaluating
fleet management practices and costs. This request will serve as an initial blueprint for
Fleet Services and other City staff to follow in assembling information for our review
before we commence site visits and interviews; this allows our project team to "hit the
ground running." It also will give us some initial insights into the soundness of the City's
fleet management practices. For example, an organization that cannot provide any
documentation of its maintenance quality assurance program probably does not have a
very good one.
Questionnaires. In evaluating fleet management practices, we believe it is essential to
incorporate input from many different stakeholders. Since it would be prohibitively
expensive to interview every individual involved in some aspect of the City's fleet
operation, we often employ surveys to gather certain types of information from certain
groups of employees. We have conducted surveys of literally tens of thousands of
vehicle operators and mechanics over the years. Such surveys not only serve as an
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efficient means of collecting information from large numbers of individuals, but also help
minimize opposition to recommended changes that can arise when certain groups of
stakeholders feel that they have not been afforded the opportunity to make their needs,
objectives, and concerns known. We also use surveys, where appropriate, to gather
information from peer organizations, such as other municipal fleet management
programs.
Interviews and Focus Group Sessions. While surveys are a valuable tool for
gathering information from large groups of people, largely quantitative survey data lack
the details, anecdotes, and individual perspectives that can only be gleaned from face-
to-face conversation. For this reason, employee interviews and focus group discussions
are staples of our consulting approach. Even in the case of employee groups that
complete questionnaires, we often conduct follow-up interviews in order to help interpret
and flesh out survey results.
Site Visits. No amount of second-hand information can substitute for first-hand
inspection of facilities and vehicles, and observation of day-to-day work activities.
Simply walking through maintenance facilities and yards and observing the number,
condition, and appearance of vehicles waiting for service and/or waiting to be picked up
by customers; the layout, age, condition, orderliness, and cleanliness of the facility; and
the general level of employee activity all provide clues about the performance of a fleet
management organization that give direction to our interviews, process mapping, and
data analysis efforts.
Performance Measurement and Benchmarking. Data availability permitting, we
employ quantitative performance measurement techniques in every best management
practices assessment we conduct, interpreting the resulting performance statistics using
suitable internal and industry benchmarks. In addition to serving as a valuable
diagnostic tool that helps us home in on potential problem areas and avoid devoting
unnecessary scrutiny to areas in which current practices are strong, performance
measurement adds objectivity and consistency to our evaluation, and hence, credibility
to our findings and conclusions.
Business Process Mapping and Gap Analysis. The other key method we use to
evaluate fleet management practices and identify opportunities to improve quality and
lower costs is process mapping and gap analysis. This involves ascertaining 1) if and
how specific management and operating processes are formally defined; 2) the
soundness of their design — e.g., their logic, thoroughness, compliance with applicable
regulations, responsibility and authority for execution, and so forth; 3) their consistency
with industry best practices; and 4) the nature of their actual execution, which is a
function of how they are communicated (e.g., through a policy and procedure manual)
and how employees are held accountable for using them.
We gain these insights primarily from the review of documentary material such as policy
and procedure statements and the conduct of interviews and focus group sessions with
employees of the fleet management, fleet user, and associated support (e.g., budget
and finance, risk management, IT, etc.) organizations. In order to ensure that we cover
each functional area of vehicle and business management thoroughly, we employ a
detailed, 40-page Process and Practice Review Checklist that allows us to gauge the
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soundness of current practices in each area of endeavor. This typically is the most
labor-intensive, but also the most revealing, aspect of any fleet management program
review or efficiency study.
PROPOSED PROJECT WORK PLAN
PHASE 1: ASSESS PARTS OPERATIONS
In this phase of the project we will conduct an in-depth assessment of the effectiveness
of the City's fleet parts operations including internal controls, inventory management,
record keeping, supplier management, security, etc.
Areas of the parts program that we will assess include:
• Contracting practices including criteria for selection of suppliers
• Financial controls including tracking of contracts, use of blanket purchase orders,
and use of purchase cards
• Reporting practices
• Order receipt practices including separation of essential duties
• Parts issue practices including use of internal parts request documents
• Parts transaction recoding and tracking in the fleet system
• Security of the parts room including provision for after hours issue of parts
• Inventory control procedures
• Practices for analyzing the effectiveness and cost of parts operations
During our assessment we will conduct a physical inventory of a sample of parts lines
and compare results to the last inventory and available records in the fleet system. If
records of a past inventory do not exist, we will focus our review on purchases and
issues of parts that are subject to abuse such as tire and batteries.
We will complete this phase by providing the City with a report on our findings and
recommendations to improve the effectiveness of parts operations.
QUALIFICATIONS AND EXPERIENCE
COMPANY DESCRIPTION
Mercury Associates, Inc. is a Maryland corporation with its headquarters office located
in Rockville, a suburb of Washington, DC. We are a fleet management consulting firm
that assists organizations in improving the management and operation of their vehicle
and equipment fleets. We have been providing consulting, training, recruiting, analytical
and other types of management support services, and software development and
hosting services since commencing operations in 2002. Collectively, the firm's three
owners possess more than 65 years of professional fleet management and fleet
management consulting experience. Mercury's staff consists of approximately 30 full
and part-time employees (including the owners), several of whom were professional
fleet managers, full-time fleet management consultants, or both, prior to joining the firm.
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Mercury's consulting services touch on virtually every facet of fleet management and
operation, ranging from broad-based assessments of fleet management organizational
structures, staffing levels, facilities and equipment, and business practices, to tightly
focused analyses of a single issue or opportunity such as "Can we reduce the size of
our fleet?" "Should we replace our fleet management information system?" "How can
we reduce our maintenance and repair expenditures?" and "Should we lease or buy
vehicles?" We also provide many different types of implementation and management
support services to fleet owners such as information system specification, selection,
implementation, and hosting; RFP development; custom software development;
business process redesign; charge-back rate development; policy and procedure
development; management training; and executive recruiting.
Mercury's principals and employees have worked with a wide array of public and
private-sector organizations around the world — primarily in the United States and
Canada and primarily with governmental jurisdictions — with fleets ranging in size from
fewer than 100 to more than 55,000 vehicles and pieces of equipment.
Clients Served By Mercury Associates
As befits the largest fleet management-consulting firm in North America, our client list is
longer and more diverse than any other firm working in this industry.
Of particular relevance to the proposed project is Mercury Associates' experience
working with large metro-area public-sector fleet management organizations. Mercury's
principals have worked with 35 of the 50 largest cities in the U.S., including the 10
largest municipalities and conducting separate consulting assignments for multiple
government jurisdictions in many major metro areas in the U.S. and Canada. In addition
to local government organizations, Mercury has served a diversity of other clients.
Rather than list all 600 or so organizations that members of our firm have served, a list
of the most prominent and relevant to this project is provided in the appendix.
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PROJECT STAFFING RESOURCES
Mercury has full-time staff headquartered in Washington, DC and Houston. This gives
us the expertise and depth to involve technical analysts and support personnel as
required.
Our consultants are the strength of our firm and are among the foremost experts in the
fleet management field. They tackle challenges that require a degree of technical
sophistication and analytical rigor that simply cannot be found anywhere else. Our
consultants are recognized industry experts in virtually every area of fleet management
including operations, finance, leasing, maintenance, information technology, fuel
including alternative fuels, and safety, among others. Moreover, since most of our
consultants have spent decades actually managing fleets, we offer clients practical
advice and solutions that work in real world situations - not just on paper.
Previous Government Experience
Mercury's principals and employees have worked with more than 600 clients. We have
extensive experience working with a wide array of fleet organizations, including the US
federal government, state and local municipalities, public and private utilities, and
corporations of all sizes throughout Canada and the United States.
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Of particular relevance to the City of Palm Springs is Mercury Associates' experience
working with local government fleets, which includes projects with many of the largest
cities and counties in the US. In the past three years our municipal government clients
include one or more entities in Baltimore, Boston, Chicago, Colorado Springs; Dallas,
Houston, Las Vegas, New York, Oakland (CA), Orlando, Philadelphia, Phoenix,
Sacramento, Saint Louis, Salt Lake, San Antonio, San Francisco, Seattle, Tampa, Palm
Springs (BC), and Washington, DC.
We also have provided fleet management consulting services to numerous clients in
California including several projects for the State of California; counties including Los
Angeles, Orange, Ventura, Santa Clara, and Sacramento; cities including Los Angeles,
San Francisco, San Diego, Long Beach, Pasadena, Palo Alto, San Clemente,
Redlands, and Sacramento; as well as other organizations such as universities (UCLA,
U.C. Davis, Cal Poly San Luis Obispo), transit agencies (Los Angeles Metro, Foothill
Transit), utilities (Southern California Edison, PG&E, Southern California Gas), and
private companies (Intel, Genentech, the Rand Corporation).
ASSIGNED RESPONSIBILITIES
The staff organization that we are proposing for this engagement is shown in the table
below along with a brief description of each team member's qualifications. Other
members of our firm may also participate in this engagement depending on when the
project starts and the issues that need to be addressed. Mercury can confirm that the
individuals below are available to work on this project.
Staff Member Title Functional Responsibility
Project Manager- Contract negotiation and execution;
Randy Owen, CAFM Senior Vice project oversight. Participation in key progress meetings and
President presentations to stakeholders; and quality assurance review
of project deliverables.
Project Lead-Site visits and interviews focusing on best
Richard Simon Senior practice. Participation in all key progress meetings and
Consultant presentations to upper management and other stakeholders;
and preparation of written project deliverables.
Project Analyst-Site visits and interviews focusing on best
Steve Saltzgiver, Manager practice. Participation in all key progress meetings and
CAFM presentations to upper management and other stakeholders;
and preparation of written project deliverables.
Data Analysts-Data collection and analysis, performance
Various Consultant measurement and benchmarking; development of exhibits for
reports.
Two of the three members of the project team hold current (recertification required
every five years) NAFA Fleet Management Association's designation of Certified
Automotive Fleet Managers. The CAFM certification is the only accredited fleet
management certification available today. The third member of our team (Richard
���,�'Simo��rn))i�is��an��e��rrxperienced public sector accountantlauditor and fleet manager who has
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specific experience reviewing fleet parts operations. He also resides in the Coachella
Valley.
Randy Owen, CAFM is Senior Vice President of Mercury Associates and is located in
our Charlotte, NC office. He has 20 years of experience as a fleet
manager and fleet management consultant, and is a nationally recognized
expert in fleet management best practices and in the areas of fleet
management outsourcing and managed competition. His areas of
expertise also include fleet utilization analysis and rightsizing, and
performance measurement and benchmarking. Before co-founding
Mercury Associates, Mr. Owen was a Senior Manager in Maximus, Inc. Prior to this he
served as the fleet manager for the City of Charlotte and for the Los Angeles County
Department of Public Works and worked as an independent consultant. He holds a
Master's Degree in Political Science from the University of California at Los Angeles.
Mr. Owen has extensive experience working in the field of alternative fuels. While Fleet
Manager for Los Angeles County he served on several technical advisory committees
for the South Coast Air Quality Management District. He also teaches the alternative
fuel subject at seminars for NAFA, the largest fleet management association in the
world. Among many projects, he managed our recent large engagement with the City of
San Antonio to assess the feasibility of switching to AFVs and our fleet sustainability
project for Santa Clara County.
Richard Simon, Senior Consultant, has over 24 years' experience as a , -
public-sector fleet manager with Santa Clara County, California. He has an
effective working knowledge in the areas of fleet management, general
accounting services, grant writing, vehicle purchasing and specification
writing, alternate fuels, labor relations, law enforcement, budgeting,
auctions/disposal, internal service funds, rate development, fleet systems,
customer service, facility development, vehicle maintenance, employee communications
and emergency services logistics. As a Fleet Manager for the County he was
responsible for directing the $17 million fleet operations department serving all county
departments and contract agencies. The fleet included 2,400 vehicles and a full time
staff of 95 employees. The department included four maintenance and fuel facilities,
paint and body shop, emergency vehicle installation shop and administration. Before his
position as fleet manager, Mr. Simon worked five years as Accountant III for the
General Services Department Divisions of Fleet Management, Emergency
Communications, Printing and Building Operations. He also served as Transportation
Officer for the County Emergency Services Logistics Team and was appointed Trustee
for the County's deferred compensation plan by the Board of Supervisors. Mr. Simon
holds a Bachelor's Degree in Accounting from San Jose State University and is a
USMC veteran.
Steve Saltzgiver, CAFM is a Manager with Mercury Associates, Inc.
Over his extensive career, he has held various roles ranging from
technician to vice president of fleet management for two Fortune 500
companies (Coca Cola and Republic Industries) with fleets of over 40,000
assets and annual operating budgets exceeding $1 billion dollars. He also
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has served as Fleet Manager for two states: Georgia and Utah, leading process
improvement teams and cost reduction initiatives; optimizing complex maintenance
operations, and executing comprehensive talent management programs. He has taught
workshops and best practice seminars on a wide array of topics throughout the US,
Canada and Europe. Recognized as a change advocate who has supervised the
implementation of several Fleet and ERP data systems, Mr. Saltzgiver is skilled in data
analysis, benchmarking for continuous improvement, fleet cost reductions, sustainable
fleet planning and telematics technology deployment.
Complete resumes for members of our project team are available upon request.
REFERENCES
While we could provide the City with hundreds of project descriptions and references,
we have focused on providing the following five that demonstrate the range of issues we
deal with:
Client and Dates Client Contact Information
Description of Work Performed
City of Salinas, CA(2015 - present) Larry Oda, Maintenance Supt
Mercury conducted a best practices study of Salinas' fleet Department of Public Works
operations to assess several options for future management of the 831-758-7107
program including centralizing or outsourcing fleet activities.We larryo@ci.salinas.ca.us
also developed a long-range capital plan for renewal of the fleet.
We have recently been engaged to assist with implementation of
some of our recommendations including development of a
centralization plan and acquisition of a new fleet system.
City of Tacoma,WA(2001 - present) Deanna Pollard, Fleet Services
Mercury has conducted several projects for Tacoma over the past Department of Public Works
decade including a police vehicle take-home cost/benefit analysis, a 253-591-5866
fleet rightsizing review, a fleet system requirements analysis, and a ddollard�ci.tacoma.wa.us
fleet replacement plan (our most current project, completed last
year). We have currently been engaged to develop a revised
replacement plan to fit available funding levels and to assess shop
staffing needs.
State of California (2015-present) Keith C. Leech Jr.
Mercury has conducted projects for several agencies in the State of Fleet Analysis and Reporting
California including the Department of General Services (DGS), Manager
Caltrans (the State's department of transportation), the California Office of Fleet and Asset
Conservation Corps, and the California Lottery. We are currently Management
developing a replacement plan for California's light-duty fleet Department of General Services
(30,000 vehicles) based on a quantitative analysis of life-cycle 916-928-6855
costs. This project includes a projection of the costs to replace Keith.leechOdas.ca.gov
current vehicle types with new zero emission vehicles as required
by Governor Brown's environmental initiatives. In 2011, we
performed a fleet rightsizing study for the entire State fleet of more
than 48,000 vehicles and pieces of equipment that resulted in
agreements to eliminate more than 8,000 vehicles from the fleet
1�a/nd yielded used vehicle sales proceeds alone of more than $5
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Proposal to Provide Fleet
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million. Recurring savings from this single consulting project are
expected to approach $60 million in the first 6 years year. In 2005
we were engaged by DGS to compare the costs of the assigned
and short-term rental vehicles furnished to State agencies by the
Office of Fleet Administration against those of comparable states,
commercial fleet leasing companies, and commercial vehicle rental
companies. Subsequently, we were engaged to analyze internal
business practices and provide DGS with recommendations for
improving various facets of the management and operation of the
State fleet.
City of San Francisco, CA(2009- 2014) Mr. Tom Fung, Director
In 2009 MAI concluded a major study for San Francisco that Fleet Management/Central Shops
included general government fleet operations as well as those of 916-928-9865
several semi-independent enterprise departments including Public tom.fung@sfgov.org
Utilities,Transit, Port of San Francisco, and San Francisco
International Airport. The review covered all areas of fleet
operations with a particular focus on opportunities to centralize
activities, fleet system requirements, and fleet utilization.
Subsequently we develop a facility master plan for the fleet
operation focusing on shop space needs and locations.
City of Sacramento, CA(2012—present) Keith Leech, Fleet Manager
Fleet cost containment and efficiency improvement study for the Department of General Services
Department of General Services, whose Fleet Management Division City of Sacramento
manages and maintains a fleet of approximately 2,400 units. The 916-808-5869
scope of the project included conducting a cost of service analysis KLeech@cityofsacramento.org
and evaluation of current charge-back rates relative to actual costs;
an evaluation of long-term fleet replacement costs and alternative
approaches to financing them; an evaluation of fleet-related
procurement and services delivery practices; and the determination
of optimal replacement cycles for key types of vehicles in the fleet,
all aimed at identifying both immediate and long-term cost savings.
PROJECT BUDGET
FEES
Our proposed firm fixed price to complete an in-depth assessment to advise City staff of
the effectiveness of the City's fleet parts operations including internal controls, inventory
management, record keeping, supplier management, security to be identified in a draft
briefing report is $19,350, to be compensated at the following budgeted hours and rates
for the following staff:
Randy Cowen, 26 hours @ $225 per hour
Richard Simon, 60 hours @ $225 per hour
Total for the first phase will not to exceed $19,350
Progress payments shall be made on a monthly basis for work performed in accordance
with invoices submitted to the City and approved for payment. Final payment shall
require submittal of written report of findings.
rc71t4'nN{Ih Proposal to Provide Fleet
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PROJECT SCHEDULE
We anticipate that the draft report associated with this proposed scope of work can be
delivered in approximately 8 weeks of receiving all of the requested data and
information or the date of the initial project visit, whichever is later. Our firm has a well-
established track record of completing projects on time and within budget. Our large
staff of permanent, full-time consultants provides us with unparalleled capacity to meet
our client's timeline requirements and to move additional resources as dictated by
circumstances.
Key determinants of the timetable will be the speed with which the City is able to
provide the information and data we will need to conduct the project, the availability of
staff to meet with us, and turnaround time for review of draft deliverables.
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APPENDIX
CLIENTS SERVED BY MERCURY ASSOCIATES
As befits the largest fleet management-consulting firm in North America, our client list is
longer and more diverse than any other firm working in this industry. As the following list
indicates, Mercury principals have conducted separate consulting assignments for
multiple government jurisdictions in many major metro areas in the U.S. and Canada.
CITY GOVERNMENTS
Albuquerque • General Services Department
Anchorage • Public Works Department
Alaska Railroad
Atlanta • Fleet Services
■ Gwinnett County Public Services Department
Austin ■ Fleet Services
■ Austin Water System
Baltimore ■ Department of Public Works
• Baltimore Efficiency and Economy Foundation
Boston • Public Works Department
■ Fire Department
■ Police Department
Calgary • Police Services
Charlotte ■ Business Support Services Department
Mecklenburg County Manager's Office
Chicago • Office of Budget and Management
Department of Fleet Management
■ Chicago Transit Authority
Chicago Park District
■ Metra
■ Kane County
• Village of Buffalo Grove
• Village of Glenview
■ City of Naperville
Dallas ■ Department of Equipment and Building Services
■ Dallas Fort Worth Airport Authority
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• City of Fort Worth
■ City of Arlington
Denver ■ City of Boulder Department of Public Works
• City of Arvada Department of Public Works
• Jefferson County Department of Admin Services
■ Boulder County Department of Public Works
Arapahoe County Board of County Commissioners
Detroit ■ Department of Transportation
• City of Dearborn
District of Columbia • Board of Supervisors
■ Department of Public Works
■ Fleet Services Department
• Metropolitan Police Department
• Water and Sewer Authority
• Washington Metropolitan Transit Authority
• City of Hyattsville, MD
■ Fairfax County, VA
• Board of Supervisors
• Fleet services Department
• Loudoun County, VA
• Dept. of General Services
• Public Schools
• Transit
Montgomery County, MD
Fire and Rescue Services
Honolulu • Department of Public Works
■ Hawaii Dept. of Business and Economic Development
Hawaiian Electric Company
Houston • Mayor's Office
■ Department of Finance and Administration
Houston Port Authority
■ Harris County
• Director of Management Services and Budget
• Fleet Services Department
• Flood Control District
Precincts 1, 2 and 3
• Department of Social Services
• Hospital District
Kansas City ■ Parks and Recreation Commission
■ Internal Auditor
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• Department of Public Works
■ Unified Government of Wyandotte County-
Kansas City, KS
Department of Public Works
Las Vegas • Office of the Internal Auditor
• City of North Las Vegas Dept. of Public Works
Los Angeles ■ Office of the Chief Administrative Officer
• Department of General Services
■ Board of Public Works
• Department of Water and Power
■ City of Huntington Beach
• City of Long Beach Dept. of General Services
• City of Pasadena
• City of Redlands
■ City of Rialto
■ City of San Bernardino
• Los Angeles County
• Department of Public Works
• Internal Services Department
■ Los Angeles Metropolitan Transportation Authority
• Orange County
• General Services Agency
• Public Facilities & Resources Department
■ San Bernardino County
• Southern California Gas Company
• Southern California Edison
■ UCLA
Memphis • Shelby County Department of Public Works
Miami/Ft. Lauderdale • Broward County Sheriff's Office
■ City of Ft. Lauderdale
• Jackson Health Care System
■ Miami-Dade County Water and Sewer Department
• Miami-Dade County Transit
Milwaukee ■ Department of Public Works
Minneapolis • Department of Public Works
Nashville • Nashville-Davidson County Dept. of Public Works
• Nashville-Davidson Public Schools
• Nashville Electric Company
New Orleans ■ City Administrative Office
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■ New Orleans Public Service, Inc.
New York ■ Department of Citywide Administrative Services
■ Port Authority of New York and New Jersey
■ Brooklyn Union Gas Company
■ Public Service Electric & Gas Company
Orlando ■ Administrative Services Department
■ Orlando Utilities Commission
■ Orange County Fire and Rescue
Philadelphia ■ Office of Fleet Management
Phoenix ■ Department of Public Works
■ City of Scottsdale Department of Public Works
■ City of Peoria Department of Public Works
■ City of Glendale Department of Public Works
Sacramento ■ California Department of General Services
■ Department of Public Works
■ Sacramento County
St. Louis ■ St Louis County Office of the County Executive
■ Metropolitan Water and Sewer District
■ City of University City
Salt Lake City ■ Department of Public Services
■ Salt Lake County Department of Public Works
■ University of Utah
San Antonio ■ Department of Purchasing and General Services
■ Fleet Operations and Management Department
■ Fire Department
■ San Antonio Water System
■ Bexar County
San Diego ■ Office of the City Manager
■ Water Department
■ San Diego County Department of Public Works
San Jose ■ Santa Clara County
■ City of Palo Alto
San Francisco ■ Office of the City Administrator
■ General Services Agency
■ Recreation and Park Department
■ Oakland Port Authority
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Seattle/Tacoma Fleets and Facilities Department
• Public Utilities Department
• City of Tacoma
■ City of Kent Fire Authority
Tampa/St. Petersburg ■ City of Clearwater Finance Department
• City of Largo Public Works Department
■ City of Tampa Department of Public Works
• Hillsborough County
• Office of the County Administrator
• Fleet Management Department
■ Pinellas County
• Office of the County Administrator
• Fleet Management Department
• Sarasota County
Toronto, ON ■ Fleet Services
Vancouver, BC Fire Department
■ Metro Palm Springs
• City of Port Moody
In addition to local government organizations, Mercury has served a diversity of other
clients as summarized in the tables below:
STATE GOVERNMENTS
• Alabama ■ Illinois • Oregon
■ Alaska • Iowa • Pennsylvania
• Arizona • Michigan • Rhode Island
• California • Minnesota • South Carolina
• Colorado Missouri ■ Tennessee
■ Connecticut • Nevada • Texas
• Delaware New Jersey • Utah
■ District of New Mexico ■ Virginia
Columbia New York ■ Virgin Islands
• Florida North Carolina • Washington
• Georgia Ohio ■ Wisconsin
• Hawaii
FEDERAL AGENCIES
• Defense Logistics Agency
■ Department of Agriculture — Natural Resources Conservation Service
• Department of Defense Headquarters
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FEDERAL AGENCIES
• Department of Defense — US Marine Corps
• Department of Energy — Idaho National Lab
• Department of Energy — Bonneville Power Administration
• Department of Homeland Security Headquarters (DHS)
■ DHS — Immigration and Customs Enforcement
• DHS — Customs & Border Protection
• Department of the Interior— National Park Service
■ Department of the Interior — US Fish & Wildlife Service
■ Department of State
• Department of Transportation
• Department of Veteran's Affairs
■ General Services Administration
■ NASA Headquarters
• NASA Kennedy Space Center
• NASA Langley Air Research Center
• Smithsonian Institution
■ US Postal Service — Office of Inspector General
PRIVATE COMPANIES
• 3M • Intel
• 4Sight Technologies • Johnson and Johnson
■ Absolute Service, Inc. Kofola
• Air Products Laidlaw Education Services
■ ALLETE Mathews International
• Alyeska Pipeline Service Company Mulzer Crushed Stone
• ARAMARK National Express Corporation
■ AT&T New Pig Corporation
■ Automotive Information Network The Nielsen Company
• Bedminster Capital Nutramax Laboratories
• Bell Canada Polaris Wireless
• Benchmark Assisted Living Praxair
• Biogen Pricelock
■ BP Alaska Pridemark Ambulance
• Bracco Diagnostics Quanta Services
■ Britt Hunt Company Schindler Elevator
• Burlington Northern Santa Fe Schneider Electric
Railway Shell Canada
• Cartesian Capital Group Siemens Medical Systems
■ Chrome Systems Skookum Contract Services
■ CITGO • Source American (formerly NISH)
■ Coinmach Services • Spencer Task Ventures
• Comme-it-Faut • Sprint
• Community EMS Starbucks
• Computer Sciences Corporation St. Leonard's Assisted Living
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PRIVATE COMPANIES
• Conoco-Phillips • Suncor Energy
■ Cox Enterprises ■ Symyx Technologies
■ EMD Serono ■ Terra Renewal
■ ExxonMobil ■ Time-Warner
■ Fleet Lease Disposal ■ Tillery Capital
• Flint Hill Resources • Toyota Tsusho
■ Genentech ■ Transportation Concepts, Inc.
■ GlaxoSmithKline ■ Walt Disney World Company
■ Hovensa ■ Whiting Oil
• Honeywell
UTILITIES
■ Aqua America ■ Miami-Dade Water and Sewer
■ Austin Water System Dept.
■ Bonneville Power ■ Nashville Electric
• Boston Water and Sewer • New Orleans Public Service
Commission ■ New York Power Authority
■ Brooklyn Union Gas ■ Orlando Utility Commission
■ Citizens Utilities ■ Pacific Gas & Electric
■ District of Columbia Water and ■ Public Service Electric & Gas
Sewer Authority ■ San Antonio Water System
■ EPCOR ■ Seattle Public Utilities
• Georgia Power • Southern California Edison
■ Gulf States Utilities • Southern Indiana Gas & Electric
■ Hawaiian Electric ■ Tacoma Public Utilities
■ Hoosier Energy ■ UGI Utilities
■ Los Angeles Dept. of Water and
Power
UNIVERSITIES
• Cal Poly, San Luis Obispo
■ Duke University
■ McMaster University (Toronto)
■ Miami University of Ohio
■ Sam Houston State University
■ The State of Oregon higher education system (7 institutions)
■ The State of South Carolina higher education system (10 institutions)
■ The State of Utah higher education system (9 universities and colleges)
■ The University of Alabama
■ The University of Alaska at Anchorage, Fairbanks and Southeast
■ The University of Arkansas
■ The University of Iowa
• The University of Massachusetts
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UNIVERSITIES
• The University of Western Ontario
• The University of Wisconsin
• UCLA
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EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
13 Revised:5/5/16
INSURANCE
1. Procurement and Maintenance of Insurance. Consultant shall
procure and maintain public liability and property damage insurance against all claims
for injuries against persons or damages to property resulting from Consultant's
performance under this Agreement. Consultant shall procure and maintain all insurance
at its sole cost and expense, in a form and content satisfactory to the City, and submit
concurrently with its execution of this Agreement. Consultant shall also carry workers'
compensation insurance in accordance with California workers' compensation laws.
Such insurance shall be kept in full force and effect during the term of this Agreement,
including any extensions. Such insurance shall not be cancelable without thirty (30)
days advance written notice to City of any proposed cancellation. Certificates of
insurance evidencing the foregoing and designating the City, its elected officials,
officers, employees, agents, and volunteers as additional named insureds by original
endorsement shall be delivered to and approved by City prior to commencement of
services. The procuring of such insurance and the delivery of policies, certificates, and
endorsements evidencing the same shall not be construed as a limitation of
Consultant's obligation to indemnify City, its elected officials, officers, agents,
employees, and volunteers.
2. Minimum Scope of Insurance. The minimum amount of insurance
required under this Agreement shall be as follows:
1. Comprehensive general liability and personal injury with limits of at
least one million dollars ($1,000,000.00) combined single limit coverage per occurrence
and two million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million
dollars ($1,000,000.00) per occurrence;
3. Professional liability (errors and omissions) insurance with limits of
at least one million dollars ($1,000,000.00) per occurrence and two million dollars
($2,000,000) annual aggregate is:
required
X is not required;
4. Workers' Compensation insurance in the statutory amount as
required by the State of California and Employer's Liability Insurance with limits of at
least one million dollars $1 million per occurrence. If Consultant has no employees,
Consultant shall complete the City's Request for Waiver of Workers' Compensation
Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement,
Consultant's insurance coverage shall be primary with respect to the City and its
respective elected officials, officers, employees, agents, and volunteers. Any insurance
or self-insurance maintained by City and its respective elected officials, officers,
14 Revised:5l5/16
720599.1
employees, agents, and volunteers shall be in excess of Consultant's insurance and
shall not contribute with it. For Workers' Compensation and Employer's Liability
Insurance only, the insurer shall waive all rights of subrogation and contribution it may
have against City, its elected officials, officers, employees, agents, and volunteers.
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is
required, and if Consultant provides claims made professional liability insurance,
Consultant shall also agree in writing either (1) to purchase tail insurance in the amount
required by this Agreement to cover claims made within three years of the completion of
Consultant's services under this Agreement, or (2) to maintain professional liability
insurance coverage with the same carrier in the amount required by this Agreement for
at least three years after completion of Consultant's services under this Agreement.
Consultant shall also be required to provide evidence to City of the purchase of the
required tail insurance or continuation of the professional liability policy.
5. Sufficiency of Insurers. Insurance required in this Agreement shall be
provided by authorized insurers in good standing with the State of California. Coverage
shall be provided by insurers admitted in the State of California with an A.M. Best's Key
Rating of B++, Class VII, or better, unless otherwise acceptable to the City.
6. Verification of Coverage. Consultant shall furnish City with both
certificates of insurance and endorsements, including additional insured endorsements,
effecting all of the coverages required by this Agreement. The certificates and
endorsements are to be signed by a person authorized by that insurer to bind coverage
on its behalf. All proof of insurance is to be received and approved by the City before
work commences. City reserves the right to require Consultant's insurers to provide
complete, certified copies of all required insurance policies at any time. Additional
insured endorsements are not required for Errors and Omissions and Workers'
Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General
and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an
acceptable Certificate of Liability Insurance Coverage with an approved Additional
Insured Endorsement with the followingendorsements stated on the certificate:
1. "The City of Palm Springs, its officials, employees, and agents are named
as an additional insured..." ("as respects City of Palm Springs Contract No._" or "for
any and all work performed with the City" may be included in this statement).
2. "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have..." ("as respects City of Palm Springs Contract No._" or
"for any and all work performed with the City" may be included in this statement).
3. "Should any of the above described policies be canceled before the
expiration date thereof, the issuing company will mail 30 days written notice to the
Certificate Holder named." Language such as, "endeavor to" mail and "but failure to mail
15 Revised:5l5/16
720599.1
such notice shall impose no obligation or liability of any kind upon the company, its
agents or representative" is not acceptable and must be crossed out.
4. Both the Workers' Compensation and Employers' Liability policies shall
contain the insurer's waiver of subrogation in favor of City, its elected officials, officers,
employees, agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named
the certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the
City before work commences. All certificates of insurance must be authorized by a
person with authority to bind coverage, whether that is the authorized agent/broker or
insurance underwriter. Failure to obtain the required documents prior to the
commencement of work shall not waive the Consultant's obligation to provide them.
7. Deductibles and Self-Insured Retentions. Any deductibles or self-
insured retentions must be declared to and approved by the City prior to commencing
any work or services under this Agreement. At the option of the City, either (1) the
insurer shall reduce or eliminate such deductibles or self-insured retentions with respect
to the City, its elected officials, officers, employees, agents, and volunteers; or (2)
Consultant shall procure a bond guaranteeing payment of losses and related
investigations, claim administration, and defense expenses. Certificates of Insurance
must include evidence of the amount of any deductible or self-insured retention under
the policy. Consultant guarantees payment of all deductibles and self-insured
retentions.
8. Severability of Interests (Separation of Insureds). This insurance
applies separately to each insured against whom claim is made or suit is brought except
with respect to the limits of the insurer's liability.
16 Revised:515116
7?USF) I