The URL can be used to link to this page

Home My WebLink About09 - Amendment of On-Call Fleet Vehicle Maintenance and Repair Services Agreement (Contract No. 9357-1)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report February 27, 2024 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Kyle Brodowski, Equipment and Facilities Maintenance Superintendent - 949-718-3464 kbrodowski@newportbeachca.gov TITLE: Approval of Amendment No. Two of On -Call Fleet Vehicle Maintenance and Repair Services Agreement with SVT Fleet (Contract No. 9357-1) ABSTRACT: The Public Works Department utilizes an on -call contractor, in addition to its mechanic staff, for repairs and maintenance of heavy trucks and equipment. Services include major engine repairs, routine maintenance, and quarterly inspections. The department seeks to amend the current agreement (Contract No. 9357-1) with SVT Fleet (SVT) to increase the term with a two-year extension and an additional $180,000 for a total not -to -exceed contract amount of $300,000. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. Two of the On -Call Fleet Vehicle Maintenance and Repair Services Agreement with SVT Fleet for as -needed fleet maintenance and repair services with a two-year extension and an additional not -to -exceed amount of $180,000 for a total not -to -exceed amount of $300,000, and authorize the Mayor and City Clerk to execute the agreement. DISCUSSION: The Public Works Department oversees the maintenance and repair of City of Newport Beach owned vehicles and equipment. The fleet is diverse, with 360 active units consisting of emergency Fire Department equipment, heavy duty trucks, off -road tractors, passenger vehicles, and light trucks. The primary function of the Equipment Maintenance Section is to ensure the City fleet is well -maintained, safe for operation, and in a constant state of readiness. Fleet repair staff utilize a variety of service providers to assist in the repair of heavy equipment, especially Fire Department apparatus. On April 19, 2023, the city manager approved an On -Call Maintenance and Repair Services Agreement with SVT for fleet vehicle and maintenance services for a two-year term and a total not -to -exceed amount of $120,000. 9-1 Approval of Amendment No. Two of On -Call Fleet Vehicle Maintenance and Repair Services Agreement with SVT Fleet February 27, 2024 Page 2 The agreement with SVT includes a dedicated division for fire engine and ambulance repairs. SVT employs mechanics with the training and certification required to conduct repairs and maintenance of emergency fire apparatus. During the first six months of this agreement, SVT performed a variety of maintenance work and major repairs to fire apparatus that included the complete diesel engine overhaul of Fire Engine 2402 and the reconstruction of a damaged high pressure water nozzle (deck gun) mounted on Fire Engine 2478. These repairs and other services have consumed nearly 70% of the overall not -to -exceed spending limits. With various preventative maintenance (PM) services scheduled in the next 90 days, staff anticipates spending the remaining not -to -exceed balance. Therefore, staff seeks to amend Contract No. 9357-1 with a two-year extension and an additional $180,000, for a total -not -to exceed amount of $300,000. Services provided by SVT meet or exceed the expectations of City mechanic staff and staff is pleased with the contractor's technical expertise and ability to complete complex repairs within the time estimated for each task. The current agreement with SVT is based upon an hourly rate of $165 per hour and cost-plus mark-up on parts of 15%. SVT has agreed to honor these terms for another two years which staff believes to be competitive and of excellent value. The current agreement with SVT has an available balance of $36,000 and expires May 1, 2025. With a remaining balance of $36,000 and approval of an additional $180,000, staff anticipates a new balance of $216,000 should provide sufficient funding for another two years of service with SVT. Therefore, staff recommends amending the agreement with a two-year extension and additional $180,000 for a total not -to -exceed amount of $300,000. FISCAL IMPACT: The adopted budget includes sufficient funding for this agreement. It will be expensed to the Public Works Department Maintenance Outside Labor account, 7529031-851045, Supplies Auto Parts Expenses account, 7529031-841011, and the Equipment Renovation account, 7529032-911020. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Service Agreement Amendment No. Two with SVT Fleet 9-2 ATTACHMENT A AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH SVT FLEET, LLC FOR ON -CALL FLEET VEHICLE MAINTENANCE AND REPAIR SERVICES THIS AMENDMENT NO. TWO TO ON -CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 27th day of February, 2024 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SVT FLEET, LLC, a California limited liability company ("Contractor"), whose address is 2429 Peck Road, Whittier, CA 90601, and is made with reference to the following: RECITALS A. On April 19, 2023, City and Southern California Fleet Services, Inc., a California corporation, entered into an On -Call Maintenance/Repair Services Agreement for on -call maintenance and/or repair services for City ("Agreement"). B. On January 16, 2024, City and Southern California Fleet Services, Inc., entered into an Assignment and Amendment No. One to the Agreement to (i) assign the rights under the Agreement from Southern California Fleet Services, Inc. to Contractor and (ii) update the Project Manger's contact information, and the notices section. C. The parties desire to enter into this Amendment No. Two to extend the term of the Agreement to May 1, 2027, increase the total compensation, and to amend Exhibit D (Warranty) of the Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on May 1, 2027, unless terminated earlier as set forth herein." 2. COMPENSATION TO CONSULTANT Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Letter Proposal and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Three Hundred Thousand Dollars and 00/100 9-3 ($300,000.00) without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Two, including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Eighty Thousand Dollars and 00/100 ($180,000.00). 3. WARRANTY Exhibit D to the Agreement shall hereby be deleted in its entirety and replaced with Exhibit D, attached hereto and incorporated herein by reference. Any reference to Exhibit D in the Agreement shall hereafter refer to Exhibit D hereto. 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] SVT Fleet, LLC Page 2 9-4 IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: /--I-Z�e CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Y114— By: rotC. H �� vj�-- Will O'Neill CityAttorney Mayor ATTEST: Date - IN Leilani I. Brown City Clerk Attachments: CONSULTANT: SVT Fleet, LLC, a California limited liability company Date: By: Bradley C. Fauvre Co -President and Co -Secretary Date: Bv: Bryan Kobus Chief Financial Officer [END OF SIGNATURES] Exhibit D - Warranty SVT Fleet, LLC Page 3 9-5 EXHIBIT D WARRANTY SVT Fleet, LLC Page D-1 9.6 IW (af=3iil7 WARRANTY SVT Fleet, LLC ("Contractor") will provide a two-year or 24,000 mile warranty, whichever event occurs first (i.e. for as long as Contractor is in business and working for the City of Newport Beach) on labor performed on all City vehicles on or off the premises at Newport Beach. This includes a warranty on: • City vehicles where any service performed were to come loose, break, malfunction or electrical short that Contractor modified or fabricated; and • Any hardware supplied by Contractor. The parts used will be covered by OEM or aftermarket warranty. 9-7