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Home My WebLink About12/4/2002 - STAFF REPORTS (4) DATE: December 4, 2002 TO: City Council FROM: Director, Department of Parks, Recreation and Facilities VEHICLE/FLEET MAINTENANCE SERVICE AGREEMENT WITH BALBOA MEDICAL SERVICES, INC. RECOMMENDATION: That the City Council authorize the execution of a Vehicle/Fleet Maintenance Service Agreement for providing maintenance and repair services by the City of Palm Springs Fleet Operations Division to medical transport vehicles owned and operated by Balboa Medical Services, Inc. SUMMARY: This item is a recommendation that a Vehicle/Fleet Maintenance Service Agreement be entered into between the City of Palm Springs and Balboa Medical Services, Inc. (BMS).The City's Fleet Operations Division will provide maintenance and repair services to medical transport vehicles owned and operated by BMS, thereby increasing revenue from outside sources to the City. BACKGROUND: The City's Fleet Operations Division began providing vehicle fleet maintenance services to outside agencies in 1992. It has continued to provide services to the County of Riverside, Tenet Healthcare, and the City of Cathedral City, the original customers. To maximize the use of available resources and supplement the cost of providing services,the acceptance of additional external customers is desirable. Providing these services to outside agencies has resulted in the development of an additional revenue stream.This additional revenue offsets and lowers the cost of providing these services internally. Consequently,the increase of revenue from outside sources directly reduces the tax burden on Palm Springs residents. There are no additional costs associated with the execution of this agreement. However, there will be an increased level of revenue, to be determined by the extent of services requested. �o OTT MIKESELL, Director HAROLD E. GOOD, CPPO, Director Department of Parks, Recreation and Facilities Procurement and Contracting APPROVED,. "" City Manager n r ATTACHMENT: 1. Agreement for Vehicle/Fleet Maintenance Services 2. Minute Order n AGREEMENT FOR VEHICLE FLEET MAINTENANCE SERVICES THIS AGREEMENT FOR VEHICLE / FLEET MAINTENANCE SERVICES (AGREEMENT) is made and entered into this day of 2002, between the CITY OF PALM SPRINGS (CITY) and BALBOA MEDICAL SERVICES, INC (BMS), Mailing address: P.O. Box 600061, San Diego, CA 92160. Corporate Offices: 6340 Riverdale Street, San Diego, CA 92120. RECITALS A. BALBOA MEDICAL SERVICES, INC. (BMS) owns, operates, and maintains vehicles (MEDICAL TRANSPORT VEHICLES) in the Palm Springs area. B. BMS has no facility in the Palm Springs area capable of maintaining the MEDICAL TRANSPORT VEHICLES. C. CITY owns and operates a City Yard in the City of Palm Springs, which includes a full-service vehicle maintenance and repair facility (MAINTENANCE FACILITY). D. BMS desires to contract with CITY and CITY desires to contract with BMS for CITY to provide MEDICAL TRANSPORT VEHICLES with maintenance services at the MAINTENANCE FACILITY. IRV 925273 v2 -1- AGREEMENT CITY and BMS agree as follows: CITY shall provide and BMS shall purchase, maintenance services for MEDICAL TRANSPORT VEHICLES pursuant to the following terms and conditions: 1.0 MAINTENANCE SERVICES 1.1 Provision of Maintenance Services. CITY shall provide maintenance services to BMS EQUIPMENT at CITY'S MAINTENANCE FACILITY, together with road services in the Palm Springs Area. 1.2 Scope of Maintenance Services. CITY shall provide maintenance services as set forth on the attached Exhibit"A", which is incorporated into this AGREEMENT by this reference. 1.3 Schedule of Routine Maintenance Services. Concurrently with the execution of this Agreement and on or before each succeeding year, BMS shall provide CITY a list of MEDICAL TRANSPORT VEHICLES subject to service. The nature of routine maintenance services to be provided for those vehicle shall be coordinated by CITY and with the schedule of CITY and of any other users of CITY maintenance services. The final schedules will be completed by CITY in cormection with its annual budget review process. IRV P25273 v2 �� 3 2.0 AVAILABILITY OF MAINTENANCE SERVICES 2.1 Maintenance Facility Hours of O ern ation. The MAINTENANCE FACILITY is presently operated five (5) days per week, eight and one-half(8 %) hours per day, between 7:00 A.M. and 3:30 P.M., Monday through Friday. 2.2 Changes in Hours of O eration. CITY makes no representation that the MAINTENANCE FACILITY will continue to he operating at the schedules presently in effect. CITY expressly reserves the right to set any hours of operation for the MAINTENANCE FACILITY which CITY deems to be convenient for itself. 3.0 BILLING AND PAYMENT RATES. 3.1 Rates. Rates shall be established annually after receiving the list of equipment subject to the Agreement. Rates may be adjusted by CITY at its sole discretion with thirty (30) days notice to BMS. The current schedule is attached as Exhibit "B" for reference. 3.2 Billine. CITY shall prepare and present to BMS, on or before the 10°i day of each month that this AGREEMENT is in effect, a bill and statement for maintenance services performed on MEDICAL TRANSPORT VEHICLES during the previous month. 3.3 Payment. BMS shall make full and complete payment of each bill on or before the last day of the month in which the hill was presented. IRV 825273 v2 -3- a,4� 4.0 COORDINATION OF WORK. 4.1 Representative of City. Fleet Manager is hereby designated as being the principal and representative of CITY authorized to act in its behalf with respect to the work and services specified herein and make all decisions in comiection therewith. Representatives may be changed with written notice. 4.2 Representative of BMS. Steven George is hereby designated as being the representative the BMS authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith. 5.0 GENERAL PROVISIONS. 5.1 Liability Insurance. During the entire term of this AGREEMENT each party agrees to procure and maintain public liability at its sole expense or to maintain sufficient reserves in any program of self-insurance to protect against loss from liability imposed by law for damage on account of bodily injury, including death suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of that party or any person acting for that party or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities or that party or any person acting for or under that party's control or direction. The public liability and property damage insurance shall also provide for and protect the other party against incurring any legal costs in defending claims for alleged loss. The public liability and property damage insurance shall be maintained in full force and IRV 425273 v2 -4- 02� 5`- effect throughout the term of this AGREEMENT in the following minimum limits: Bodily Injury $ 500,000 each person $ 1,000,000 each occurrence Property Damage $ 500,000 each occurrence $ 1,000,000 aggregate A combined single limit policy with aggregate limits in the amount of$1,000,000 will be considered equivalent to the required minimum limits. All insurance provided pursuant to this AGREEMENT shall be primary insurance and shall name the other party as an additional insured. Each party agrees that provisions of this Paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which a party may be held responsible for the payment of damages to persons or property resulting from its activities, or in the activities of any person or persons for which that party is otherwise responsible. 5.2 Hold Harmless. Each party to this AGREEMENT agrees to defend, and indemnify and hold harmless the other party, its officers, agents and employees, from and against any and all liability, darnages, costs, losses, claims and expenses, however, caused, resulting directly or indirectly from or connected with the indemnifying party's performance of this AGREEMENT. IRV#25273 v2 -7 4 6 5.3 Service of Notice. Any notice to a party to this AGREEMENT shall be mailed, postage prepaid and with return receipt personally, delivered or sent by telephone facsimile transmission, and addressed as follows: Balboa Medical Services, Inc. 6340 Riverdale Street San Diego, CA 92120 Facsimile: -and- City of Palm Springs Fleet Operations 425 N. Civic Drive Palm Springs, CA 92262 Facsimile: (760) 322-5581 5.4 Entire Agreement: Amendment. This document contains the entire AGREEMENT between the parties and shall not be changed in any way except by written amendment property executed by the parties. 5.5 Termination of Agreement. This AGREEMENT shall continue in frill force and effect unless and until terminated by either party, with or without cause, upon thirty (30) days written notice. Upon receipt of the notice of termination, CITY shall cease all work and services as of the date specified in the termination notice. CITY shall be entitled to compensation for all services rendered prior to the effective date in the notice of tennination. 5.6 Corporate Authority. The persons executing this AGREEMENT on behalf of the parties hereto warrant that (i) such [party is duly organized and existing, (ii) they are duly authorized to execute ad deliver this AGREEMENT, on behalf of said party, (iii) by so executing this AGREEMENT, such party is formally bound to IRV#25273 v2 a ,4 � the provisions of this AGREEMENT, and (iv)the entering into this AGREEMENT does not violate any provision of any other Agreement to which said party is bound 5.7 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 5.8 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 5.9 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. IRV 925273 v2 aA � 5.10 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 5.11 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees, whether or not the matter proceeds to judgment. IN WITNESS WHEREOF, the parties have executed and entered into this AGREEMENT as of this date first written above. Date ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk City Manager APPROVED AS TO FORM: City Attorney IRV#25273 v2 _8_ /Ay- CONTRACTOR (Check One: individual, partnership, corporation) (NOTARIZED) By: Signature Print Name and Title (NOTARIZED) By: Signature Print Narne and Title Mailing Address: (Corporations require two signatures; one f om each of the following: A. Chairman of Board, President, any Vice President;AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer). END OF SIGNATURES 1RV#25273 v2 -9- aA�o EXHIBIT "A" SCOPE OF MAINTENANCE SERVICES Services Provided Repairs Light Duty Equipment- $65.00 per hour Heavy Duty Equipment- $75.00 per hour Travel Time on Road Calls: $25.00 per hour (Clock starts when tech leaves the shop and ends when tech reaches equipment location. Clock starts again when tech leaves location and ends when tech returns to shop) Preventative Maintenance Adjusted flat rate, based on agreed level of service. (Initial costs will be based on written estimates - subject to customer approval) Parts Cost plus 20% (We currently enjoy a 40%to 60% discount off retail. Original cost information will be provided) IRV#25273 v2 A-1 a �/ EXHIBIT "A" SCOPE OF MAINTENANCE SERVICES Services Provided Available Repairs Diagnosis of any problem. General repair of engine, frame, body, drive train, electrical systems, accessories, and related components. Body and Fender work, painting, glass, transmission, custom fabrication, and wheel alignments may be sublet to an outside vendor. Road service is only available during working hours and within a 30-mile radius of Palm Springs. Preventive Maintenance After receiving a list of vehicles and/or equipment proposed for service, a recommended schedule will be developed and provided to the customer. A time and material study of unique, emergency, or complicated equipment will be conducted over a minimum of three services to determine a flat rate for future preventive maintenance service. Written estimates will be submitted for customer approval prior to beginning work until a flat rate is developed and agreed upon by both parties. Parts Parts will be located, purchased, and received by the City of Palm Springs Fleet Operations Division. Any delays or difficulties with obtaining parts will be communicated to the customer immediately. i a�- i3 EXHIBIT "B" RATE SCHEDULE Light Duty Shop = $65.00 per hour Heavy Duty Shop = $75.00 per hour Travel Time (Road Service) _ $25.00 per hour Travel time clock starts when the technician leaves shop and ends when technician arrives at equipment location. Clock starts again when technician leaves equipment location and ends when technician returns to shop. Parts Cost plus 20% We currently receive 40% to 60% discounts off retail. Original cost information will be provided. ag iy MINUTE ORDER NO. AUTHORIZING THE EXECUTION OF A VEHICLE/FLEET MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND BALBOA MEDICAL SERVICES, INC. I HEREBY CERTIFY that this Minute Order, authorizing the execution of a Vehicle/Fleet Maintenance Services Agreement between the City of Palm Springs and Balboa Medical Services, Inc., was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 411 day of December, 2002. BY: PATRICIA A. SANDERS City Clerk a6