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Item 10AGENDA ITEM NO. 10 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: June 21, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF A BUDGET AMENDMENT AND AGREEMENT WITH PERFORMANCE TRUCK REPAIR FOR FIRE EQUIPMENT MAINTENANCE RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Authorize the City Manager to execute the First Amendment to the Maintenance Services Agreement with Performance Truck Repair, Inc. (PTR) for fire apparatus service and repairs. 2. Authorize the City Manager to negotiate and execute future amendments to the Agreement exercising the extension options. 3. Adopt the following resolution: RESOLUTION NO. 2022-63 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 (FIRE FLEET REPAIR) BACKGROUND: The West Covina Fire Department serves the community by responding from five strategically located fire stations. Emergency operations are the core of the Department's fire and life safety protection services responding to incidents such as medical emergencies, public assistance, hazardous conditions, mutual aid calls, and structure fires. Emergency operations are 24 hours a day, 365 days a year provided by five paramedic assessment fire pumper engine companies, one paramedic assessment ladder truck, three paramedic ambulances, and one Assistant Fire Chief vehicle. Emergency personnel respond quickly and are able to mitigate and solve problems efficiently regardless of the nature of the emergency. A rigorous inspection and preventive maintenance program is an essential element of equipment management. Preventive maintenance reduces operating and maintenance costs, minimizes time out of service, and increases vehicle life. Only certified fire apparatus mechanics are allowed to repair or work on fire apparatus. The West Covina Fire Department has eight fire pumper engines, two fire ladder trucks, six ambulances and two support vehicles. Due to the age and condition of the Fire Department fleet, the apparatus require preventative maintenance services including routine inspections, servicing, repairs, and replacement of equipment components on a regular basis to facilitate operations with minimal downtime. Existing Fleet Maintenance Contracts Account Number Dept/Account Description Current Budget Proposed Amended Amendment Budget Expenditures 110.32.3210.8104 lVehicle Maintenance Charges 1 253,900 (110,100)1 143,805 110.32.3210.6329 10ther Vehicle Sublet Repairs 1 6,0001 185,1001 191,100 Subtotal Expendituresi 259,900 75,000 334,900 Revenue 110.32.4630 lFire Plan Check/Insp. Fees 1 167,0001 75,0001 242,000 Subtotal Revenul 167,0001 75,0001 242,000 Revenue Less Expenditures (92,900) (92,900) Attachments Attachment No. 1 - First Amendment to Agreement with PTR Attachment_2_-_West_Covi na_Maintenance_Services_Ag reement_-_Performance_Truck_Repai r,_I nc. Attachment No. 3 - Resolution No. 2022-63 CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety Enhance City Image and Effectiveness ATTACHMENT NO. 1 FIRST AMENDMENT TO CITY OF WEST COVINA MAINTENANCE SERVICES AGREEMENT WITH PERFORMANCE TRUCK REPAIR, INC. FOR FIRE DEPARTMENT FLEET MAINTENANCE. SERVICE AND REPAIR THIS FIRST AMENDMENT ("Amendment") is made and entered into as of June 21, 2022 ("Effective Date") by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and PERFORMANCE TRUCK REPAIR, INC., a California corporation ("Contractor'). WHEREAS, City and Contractor entered into a Maintenance Services Agreement dated December 7, 2021 for Contractor to provide emergency apparatus maintenance, service and repair for the Fire Department fleet (the "Original Agreement"); and WHEREAS, City requires more services from Contractor than initially contemplated; and WHEREAS, City desires to amend Section 2.1 of the Original Agreement as set forth herein. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Section 2.1 of the Original Agreement shall be amended to read as follows: 2.1. Compensation. Contractor shall be paid in accordance with the fee schedule set forth in Exhibit T," attached hereto and made a part of this Agreement (the "Fee Schedule"). 2. All terms not defined herein shall have the same meaning and use as set forth in the Original Agreement. 3. All other terms, conditions, and provisions of the Original Agreement not in conflict with this Amendment shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS.] Performance Truck Repair, Inc. First Amendment IN WITNESS WHEREOF, City and Contractor have executed this Amendment as of the date set forth above. CITY OF WEST COVINA David Carmany City Manager ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Helen Tran Human Resources and Risk Management Director 2 CONTRACTOR David Killackey, Sr. President Performance Truck Repair, Inc. First Amendment ATTACHMENT NO. 2 CITY OF WEST COVINA MAINTENANCE SERVICES AGREEMENT WITH PERFORMANCE TRUCK REPAIR, INC. FOR FIRE DEPARTMENT FLEET MAINTENANCE, SERVICE AND REPAIR THIS MAINTENANCE SERVICES AGREEMENT is made and entered into this 7th day of December, 2021 ("Effective Date"), by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and PERFORMANCE TRUCK REPAIR, INC., a California corporation ("Contractor'). WITNESSETH: WHEREAS, City proposes to utilize the services of Contractor as an independent contractor to City to provide emergency apparatus maintenance, service and repair for the Fire Department fleet, as requested by the Fire Department; and WHEREAS, Contractor represents that it has the experience and expertise to properly perform such services and holds all necessary licenses to practice and perform the services; and WHEREAS, Contractor was the successful bidder for a contract with the City of Alhambra and has made the same bid to the City, and the Purchasing Officer has found that the City of Alhambra originally obtained the bid pursuant to formal contract procedures at least as rigorous as the City; and WHEREAS, City and Contractor desire to contract for the specific services described herein and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONTRACTOR 1.1. Scope of Services. Contractor shall provide emergency apparatus maintenance, service and repair for the Fire Department apparatus listed in Exhibit "A," attached hereto and incorproatd herein. Contractor's services shall be provided in accordance with Contractor's Proposal, attached hereto as Exhibit "B" and incorporated herein. 1.2. Performance to Satisfaction of City. Contractor agrees to perform all the work to the complete satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Contractor to review the quality of the work and resolve the Performance Truck Repair, Inc. Form Updated September 2021 matters of concern; (b) Require Contractor to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Compliance with Applicable Law. Contractor shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Contractor shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above -mentioned laws, which may be incurred by reason of Contractor's performance under this Agreement. 1.5. Non-discrimination. In performing this Agreement, Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or mental disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, sexual orientation, or military or veteran status, except as permitted pursuant to Section 12940 of the Government Code. 1.6. Non -Exclusive Agreement. Contractor acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Public Records Act Disclosure. Contractor has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Contractor, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in California Government Code Section 6254.7, and of which Contractor informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the court. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Contractor shall be paid in accordance with the fee schedule set forth in Exhibit "C," attached hereto and made a part of this Agreement (the "Fee Schedule"). Contractor's annual compensation shall not exceed One Hundred Thousand Dollars ($100,000.00). 2.2. Additional Services. Contractor shall not receive compensation for any services provided outside the scope of services unless the City, prior to Contractor performing the 2 Performance Truck Repair, Inc. Form Revised September 2021 additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Method of Billing. Contractor may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Contractor's services which have been completed to City's sole satisfaction. City shall pay Contractor's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Contractor's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. The services shall be performed in strict compliance with the project schedule agreed to by City and Contractor, which may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Contractor is encountered, a time extension may be mutually agreed upon in writing by the City and the Contractor. The Contractor shall present documentation satisfactory to the City to substantiate any request for a time extension. 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue through June 30, 2624, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. Thereafter, this Agreement may be extended for a maximum of two (2) successive one (1) year periods. Such extensions, if any, will be evidenced by a written amendment to this Agreement. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Contractor. In the event of such termination, Contractor shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. If the Contractor defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in 3 Performance Truck Repair, Inc. Form Revised September 2021 which to cure the default by rendering a satisfactory performance. In the event that the Contractor fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement. The City also shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Contractor, if the latter should: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; C. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. 4.3. Compensation. In the event of termination, City shall pay Contractor for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City's written notice of termination, within forty-five (45) days after the effective date of the notice of termination or the final invoice of the Contractor, whichever occurs last. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Contractor in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Contractor shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best's rating of no less than A:VII, and approved by City: (a) Broad -form commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00), 4 Performance Truck Repair, Inc. Form Revised September 2021 combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per accident for bodily injury and property damage. (c) Workers' compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Contractor agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Contractor for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. By execution of this Agreement, the Contractor certifies as follows: I am aware of, and will comply Code, requiring every employer Workers' Compensation or to commencing any of the work. with, Section 3700 of the Labor to be insured against liability of undertake self-insurance before The Contractor shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the consultant to comply with this section. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence or claim, and Two Million Dollars ($2,000,000.00) aggregate. Architects' and engineers' coverage shall be endorsed to include contractual liability. If the policy is written as a "claims made" policy, the retroactivity date shall be prior to the start of the work set forth herein. Contractor shall obtain and maintain said E&O liability insurance during the life of this Agreement and for five (5) years after completion of the work hereunder. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Agreement, Contractor shall purchase "extended reporting" coverage for a minimum of five (5) years after completion of the work. If the Contractor maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified 5 Performance Truck Repair, Inc. Form Revised September 2021 minimum limits of insurance and coverage shall be available to the City. 5.2. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions: (a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Contractor pursuant to its contract with the City; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; automobiles owned, leased, hired, or borrowed by the Contractor. (b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Contractor's insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. (e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. (f) Coverage Applies Separately: The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. 5.4. Certificates of Insurance. Contractor shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 6 Performance Truck Repair, Inc. Form Revised September 2021 5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Contractor shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Contractor called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Proiect Managers. City shall designate a Project Manager to work directly with Contractor in the performance of this Agreement. Contractor shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Contractor or its Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile or by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: Performance Truck Repair, Inc. 892 W. Tenth Street Azusa, CA 91702 Tel: (626) 393-6003 Email: davidsr@ptrcorp.com Attn: David Killackey, Sr., President IF TO CITY: City of West Covina 1444 West Garvey Ave. South West Covina, CA 91790 Tel: (626) 939-8824 Email: vcapelle@westcovina.org Attn: Vincent Capelle, Fire Chief 6.5. Attorneys' Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 7 Performance Truck Repair, Inc. Form Revised September 2021 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 6.7. Assignment. Contractor shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Contractor's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Contractor of Contractor's obligation to perform all other obligations to be performed by Contractor hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Contractor agrees to defend, with counsel of City's choosing, indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Contractor's sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Contractor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Contractor, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Contractor, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Contractor, its employees, and/or authorized subcontractors under this Agreement, whether or not the Contractor, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Contractor shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Contractor's Proposal, which shall be of no force and effect. 6.9. Independent Contractor. Contractor is and shall be acting at all times as an independent contractor and not as an employee of City. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor's employees, except as set forth in this Agreement. Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Contractor shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Contractor and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Contractor shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor further agrees to indemnify and hold City harmless from any failure of Contractor to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of 8 Performance Truck Repair, Inc. Form Revised September 2021 Contractor's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.10. PERS Eligibility Indemnification. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.11. Cooperation. In the event any claim or action is brought against City relating to Contractor's performance or services rendered under this Agreement, Contractor shall render any reasonable assistance and cooperation which City might require. 6.12. Conflict of Interest. Contractor and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Contractor's services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Contractor covenants that none of Contractor's officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be used by Contractor as an officer, employee, agent, or subconsultant. Contractor further covenants that Contractor has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Contractor and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement. 6.13. Prohibited Employment. Contractor will not employ any regular employee of City while this Agreement is in effect. 6.14. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.15. Costs. Each party shall bear its own costs and fees incurred in the preparation 9 Performance Truck Repair, Inc. Form Revised September 2021 and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.16. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.17. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.18. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.19. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.20. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.21. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.22. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. 6.23. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 10 Performance Truck Repair, Inc. Form Revised September 2021 6.24. Taxpayer Identification Number. Contractor shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF WEST COVINA, A municipal corporation Date David Carmany City Manager CONTRACTOR Date Signature Name and Title ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Date: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Helen Tran Human Resources and Risk Management Director 11 Date: Performance Truck Repair, Inc. Form Revised September 2021 EXHIBIT A LIST OF FIRE DEPARTMENT APPARATUS Type of Apparatus Description Unit No. Fleet No. Fire Engine 2016 Pierce E-1 F-13 Fire Engine 2003 Saulsbury E-505 F-23 Fire Truck 2000Saulsbury T-502 F-5 Fire Truck 2016 Pierce Q-2 F-4 Fire Engine 2016 Pierce E-3 F-14 Fire Engine 2002 Saulsbury E-501 F-20 Fire Engine 2006 Pierce E-0 F-24 Fire Engine 2002 Saulsbury E-5 F-21 Fire Engine 2002 Saulsbury E-503 F-22 Rescue Ambulance 2014 North Star RA-1 F-35 Rescue Ambulance 2004 Leader RA-501 F-30 Rescue Ambulance 2004 Leader RA-502 F-32 Rescue Ambulance 2017 Leader RA-2 F-37 Rescue Ambulance 2008 North Star RA-503 F-34 Rescue Ambulance 2014 North Star RA-4 F-36 Light/Air 2002 Freightliner LA 4 F-18 Command Unit 2016 Dodge Pick-up AC-1 F-10 Command Unit 2001 Ford Expedition AC-501 F-2 r4-i - -: CONTRACTOR'S PROPOSAL On February 18, 2020, City Council approved the award of bids for fire and heavy equipment maintenance and repairs issued by Public Services, Fleet Services division. Awarded for fire fleet was Southern California Fleet Services and South Coast Fire Equipment. These two vendors were unable to make and schedule repair needs resulting in having to send apparatus to another vendor further delaying the apparatus being returned to service. As a result, on July 26, 2021, an emergency purchase order for Performance Truck Repair, Inc. ("PTR") was issued. PTR is a local vendor and has mobile mechanics capabilities resulting in little to no delay in apparatus being out of service. It is a well -established and reputable emergency vehicle maintenance company that has provided quality service to the West Covina Fire Department in the past. Additionally, they have performed vehicle maintenance and repair services for multiple governmental agencies including U.S. Forest Service, Cal Fire, US Marine Corps, and several Los Angeles area jurisdictions such as the Cities of Alhambra, Arcadia, Azusa, Bellflower, Beverly Hills, Carson, Duarte, Los Angeles. Additionally, Council approved an agreement on December 7, 2021 (Attachment 2) with PTR for vehicle maintenance and repair services, that provides for an initial term through June 30, 2024, with the option to extend the term for two additional one-year periods. Currently, fleet maintenance repairs are spread across all three vendors as applicable. DISCUSSION: Staff has been able to utilize existing purchase orders with the other two approved vendors, however; they are still unable to perform in a timely manner in comparison to PTR. In order to meet the needs of our fire fleet and continue to provide service to our residents, staff has taken more vehicles to PTR than originally anticipated. Under the Maintenance Services Agreement, PTR's maximum annual compensation is $100,000. Due to necessary unexpected repairs, the $100,000 limit has been reached. Therefore, staff recommends removing the limit to continue to pay PTR in accordance with the fee schedule as set forth in the Agreement. The new limit would be set by the budget appropriation for vehicle maintenance and repairs. LEGAL REVIEW: The City Attorney's Office has reviewed the amendment and resolution and approved them as to form. OPTIONS: The City Council has the following options: 1. Adopt Staff's recommendation; or 2. Provide alternative direction. Prepared by: Vincent A. Capelle Fiscal Impact FISCAL IMPACT: Fleet and maintenance repairs are generally funded through Fleet Management (Fund 365) and charge backed to the departments. In Fire, these expenses are charged to Vehicle Maintenance Charges. Since Fire has contracted these services directly, staff proposes reallocating funding from Vehicle Maintenance Charges to Other Vehicle Sublet Repairs and adding $75,000 in expenditures to fund the necessary repairs. To offset this increase, staff recommends increasing revenue to Fire Plan Check/inspection Fees by $75,000 based on overages received to -date. Overall, the proposed budget amendment has a zero net impact to the City's General Fund. This budget amendment will fund invoices anticipated for all three vendors. TECHNICAL PROPOSAL/EXECUTIVE SUMMARY Thank you for your consideration, Since 1995 Performance Truck Repair. (PTR) has successfully built a company and assembled a team that is second to none in the emergency equipment repair industry. At PTR we pride ourselves in holding the highest qualifications and certifications. In addition to being highly qualified we also have made an enormous investment in our facility and tooling. PTR's willingness to purchase any and all tools necessary to perform inspections and repairs combined with highly educated technicians inside a perfectly constructed and laid out shop make for a repair experience unmatched in So Cal. PTR has the facility, equipment, and experienced crew to tackle any heavy truck overhaul repair. Our technicians are thoroughly trained in Allison transmission overhaul/repair, light -medium vehicle overhaul/repair, major engine overhaul on internal and external componentry, brake assemblies, clutch assemblies, drive -line overhaul/repair, off -highway equipment and aerial device overhaul/repair, just to name a few. That being said we understand that the above mentioned is not always enough. We consider a quick response to the needs of our customers as critical to keeping their fleet in service. Due to our quality of work and response time we have had the privilege of obtaining the fire fleet maintenance contracts with Arcadia fire department, West Covina Fire Department, Alhambra Fire Department and Los Angeles County Fire Department. Accessibility is key therefore we are available to our customers 24/7. In addition to our shop PTR Maintains two service trucks for on -site repairs for regular and after hours repair needs including weekends and holidays. PTR operates a full line machine shop, welding shop and fabrication shop. Our employees have acquired all certifications needed to rebuild and repair all styles of water pump applications (Hale, Waterous, Darley, ect.). We have acquired all certifications in recertifying and testing aerial apparatus as well as certifications with Cummins, Detroit diesel, CAT, Allison, Bendix, Foam Pro, CAFS systems, TAK-4, steering, air brake, electronics, suspension, ect.. PTR is also a service center for Boise Mobile Equipment. PTR is family owned and operated therefore we enjoy the "family" style approach to running our business with not only professionalism and expertise but also a strong sense of concern for the needs of the customers as well as our vendors. Maintaining a sense of urgency throughout the repair process until the equipment is returned to service is critical to both the success of the customer and PTR. As regards to PTR's financial condition, we have never been through a bankruptcy and do not have any outstanding loans. Due to the fact that we pay our bills on time we have developed a strong relationship with our vendors ensuring that we receive parts on a timely manner. PTR personnel has a deep sense of appreciation to the commitment displayed throughout the fire fighter community. We feel it is our duty to contribute all of our efforts in keeping the equipment in proper working condition and do to so in a cost effective manner. CONSULTANT UNDERSTANDING Understanding the scope of work is a key element in proper repair methods. It all begins with training. We have reviewed the list of emergency fire apparatus provided by the City and crossed checked the list with our experience and certifications and conclude the list is easily streamlined with our qualifications, facility, Parts inventory and overall experience. The repair process begins with a phone call from the City of West Covina indicating a complaint in the operation of a piece of equipment. Once we received this phone call our typical response time to the fire station in West Covina would be approximately 1 1/2 to 2 hours. Once on scene with the vehicle in question we begin the repair process by interviewing The West Covina city fire personnel member who can best describe the issues at hand. If available we would ask for a history Report of the vehicle in question. With a basic understanding of the complaint, we then go directly to the component most likely associated with the malfunction. First a visual inspection of component, and if applicable we connectyour laptop computer to scan the control area network (CAN) to locate any known active or in active trouble codes. In this example we would then inspect any electronic modules, connectors and wiring for points of failure within those components. If the malfunction is related to non -electronic components, we would begin with the visual inspection followed by exercising the malfunctioning component looking for the exact cause of failure. During the replacement of components, we use only original equipment (OEM) parts. The OEM parts are then installed using methods and techniques required by the OEM parts manufactures and apparatus manufacturers recommendations. There are many examples of proper methods and techniques during repairs, below are just two. 1. One small but important example of proper repair methods would be wiring repairs. We NEVER use crimp -on wire connectors. Instead, we use solderable connectors and heat shrink insulating protectors. 2. Another example of proper methods and techniques is the proper use of silicone sealant. There is indeed a time and place for silicone sealant however during an engine or transmission overhaul would not be one of those times. Silicone sealant can enter into the hydraulic systems of components such as engines, transmissions, water pumps and valving. No doubt the silicone would end up in a place within those components that could cause a catastrophic failure to those assemblies. We have found that there are very few exceptions to the outlines provided by the OEMs regards proper methods and techniques during maintenance and repair to fire apparatus. We strongly adhere to those recommendations. EXHIBIT C FEE SCHEDULE Rates set forth in this fee schedule are inclusive of all labor, shop fees, management fees, and environmental fees. Parts Markup: 10% OEM Cost proposal for directed work items such as maintenance, mechanical repairs, component replacement and reconditioning. Tier 1 — Standard Hourly Rate: $90/hour Tier II — Overtime Hourly Rate: $90/hour Cost proposal for emergency conditions (after hours) work items such as mechanical repairs, component replacement and reconditioning. Tier III — Emergency Call Hourly Rate: $90/hour ATTACHMENT NO.3 RESOLUTION NO.2022-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 (FIRE FLEET REPAIR) WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2021-22; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and on June 15, 2021 adopted a budget for the fiscal year commencing July 1, 2021 and ending June 30, 2022; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Budget Amendment No. 073, attached hereto as Exhibit A, for Fiscal Year 2021-22. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 21st day of June 2022. APPROVED AS TO FORM Thomas P. Duarte City Attorney Dario Castellanos Mayor ATTEST Lisa Sherrick Assistant City Clerk I, LISA SBERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2022-63 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21st day of June, 2022, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk EXHIBIT A BUDGET AMENDMENT CITY OF WEST COVINA BUDGET AMENDMENT Date: 06/21/2022 Requested by: Vincent Capelle, Fire Chief Dept/Div: Fire Department EXPENDITURES BA # 073 Posted By: Date Posted: Fiscal Year: 2021-2022 Amount: 75,000.00 Description: Fire Fleet Repair Account Number Dept/Account Description Current Budget Proposed Amendment Amended Budget 110.32.3210.8104 VEHICLE MAINTENANCE CHARGES 253,900 (110,100) 143,800 110.32.3210.6329 OTHER VEHICLE SUBLET REPAIRS 6,000 185,100 191,100 259,900 75,000 334,900 REVENUES Account Number Account Description Current Budget Proposed Amendment Amended Budget 110.32.4630 FIRE PLAN CHECK/INSP. FEES 167,000 75,000 242,000 167 000 75,000 242 000 2EASON/JUSTIFICATION (Please be specific) -unding is necessary to cover expenditure overages due to necessary repairs to the fire fleet. APPROVALS City Council Approval Date (if required, attach minutes): Dept Head Approval: 06/21/2022 ❑ Approval Not Required Date: -finance Director: Date: -unds Available? ❑ Yes ❑No -ity Manager: Date: if over $100,000) ❑ Approved ❑ Denied