HomeMy WebLinkAboutC-3041 - Fleet Maintenance & Procurement Study, BA-042 (tied in with commuting vehicles?)F- 1
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AGENDA ITEM NO. 27
CITY OF NEWPORT BEACH
Office of the City Manager
November 12, 1996
TO: Honorable Mayor and Members of the City Council
FROM: Kevin J. Murphy, City Manager
SUBJECT: COMMUTING VEHICLES
'^ Lit,
BACKGROUND
On October 28th the City Council continued discussion of this matter to
November 12th. The general topic is the number of vehicles within the City's
vehicle fleet which are permitted to be utilized for commuting to and from work,
in addition to their primary use during the workday. The City currently has no
formal written policies in this regard, but based on recent City Council
discussion of this issue, the number of vehicles permitted to be utilized for
commuting purposes has been reduced from 59 to 38. In most instances the
reduction has occurred as a result of retirement, resignation or conversion to an
auto allowance which has been folded into an employee's salary. Today, there
are six employees who remain with the City who converted the use of a City
vehicle to an allowance /salary. In addition to the 38 commuting vehicles, there
are five vehicles utilized for car pooling which are part of our current AQMD
Rideshare Plan. The carpooling requirement is also a requirement of a Coastal
Development Permit issued by the Coastal Commission to the City in 1990 in
conjunction with the widening of Newport Boulevard between 32nd and Via -�
Lido. / b 96gL
This matter was continued to receive a final report from Arroyo Associates, Inc. a 7
consultant reviewing the City's fleet maintenance procurement practices. The
report is still in draft final form and in review by the multi - department task force
to guarantee accuracy of the information and assumptions prior to presentation
to the City Council. The internal review of the draft final is focused on several
areas identified by the consultant for improvement; however, the
recommendation regarding commuting vehicles is not an area of further review.
The Arroyo Associates report will recommend that... "a take home policy should
be developed that precludes the taking home of City equipment unless that
position is on paid call -back status. In lieu of assigned vehicles, the City may
wish to consider providing automobile allowance or mileage reimbursement for
travel on City business. Implementation of this recommendation would reduce
-2-
the City's need for this equipment, thereby reducing the cost of maintenance
and replacement."
For additional reference for the City Council, I have attached several prior
documents including a June 26, 1995 memorandum and a more recent
September 23, 1996 memorandum on this subject.
DISCUSSION
As stated above, the City has been reducing the number of City vehicles
permitted to be utilized for commuting to and from work by City employees over
the past four years. The ultimate objective is to reduce the number of
employees absolutely needing vehicles for after hours response. While this has
been an informal and unstated policy which has resulted in the phase out of 21
commuting vehicles, if the City Council wishes to accelerate the reduction of
commuting vehicles it would be appropriate to give City staff further direction
and policy guidance.
City staff is currently in the process of creating an Administrative Policy Manual
to pull together past and present administrative directives on a variety of
subjects. By January 1 st the Policy Manual will be issued, incorporating a wide
variety of policies on internal administrative processes and procedures. A •
policy on the use of City vehicles will be included within the Administrative
Policy Manual, including restrictions on the number of vehicles permitted to be
used for commuting purposes, in addition to their primary workday use.
PROPOSED CITY POLICY
In creating a City Administrative Policy on City vehicle usage, it is proposed that
the policy provide that City vehicles be permitted to be utilized for commuting
purposes only by:
A. On -call emergency response personnel; and
B. Key executive Management staff
On -call emergency personnel would include first responders from Fire /Marine,
General Services, Public Works (Utilities Division) and Police. Key executive
management would include the City Manager, City Attorney, Police Chief,
Fire /Marine Chief, General Services Director and Public Works Director.
This new policy will require the City staff, by State law, to meet and confer with
all of the City employee groups as agreements are negotiated in the coming
months. This policy will also require discussion with unrepresented employees
who received authorization prior to 1992 to utilize City vehicles for commuting
purposes in conjunction with compensation adjustments. The policy will also
require the staff to examine storage facilities for certain vehicles and additional
-3-
parking spaces for the increased number of vehicles at the City Hall complex
and Police Station.
As the number of commuting vehicles is reduced, it isn't anticipated that the total
number of City vehicles will be reduced since these vehicles are now widely
utilized during the workday. However, the elimination of commuting miles will
reduce the amount of fuel used, number of miles driven per year, extend the
useful life of the vehicle, reduce City liability exposure during use in the
commute to and from work and bring the City into conformity with other public
and private employers on the number of vehicles utilized for commuting
purposes.
RECOMMENDATION
The City Council direct the City Manager to:
1. Implement an Administrative Policy reducing the number of City
vehicles utilized for commuting purposes to on -call emergency
• personnel and key executive management staff; and
2. Meet and confer with employee associations and key and
management personnel as necessary to implement the policy.
•
AGE NDA_ITEK+NO.
• CITY OF NEWPORT BEACH
Office of the City Manager
October 28, 1996
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: Kevin J. Murphy, City Manager
SUBJECT: COMMUTING VEHICLES
On the September 23rd City Council agenda, the City Council directed that this
matter return with the results of the study on the City's fleet and fleet
maintenance. This study was distributed on October 22nd in Preliminary Draft
form to the City Department Directors who are participating as the Task Force
Study Group.
The Preliminary Draft has provided less detail and recommendations than
anticipated on the issue of commuting vehicles and we have asked the
consultant to revisit the issue and provide recommendations that are
comprehensive and thoroughly researched anticipating that the City Council is
looking for complete staff and consultant effort on this matter.
The work on this has commenced by the consultant and we will have the item
for the City Council on November 12th for your review and consideration.
RECOMMENDATION
The City Council continue the discussion on Commuting Vehicles to November
12, 1996.
40
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CITY OF NEWPORT BEACH
• Office of the City Manager
July 12, 1995
TO: Administrative Services Director
Assistant City Manager, Planning and Building
Community Services Director
Fire /Marine Chief
General Services Director
Police Chief
Public Works Director
FROM: Kevin J. Murphy, City Manager
SUBJECT: COMMUTER VEHICLES AND AUTO ALLOWANCES
As you know, the City Council has asked staff to review the current practices of
the City on commuting vehicles and auto allowances and report back to them
for further consideration of this issue. If you didn't see my earlier report to the
City Council with the Budget Checklist items, I've attached it for your
• information.
Before reporting back to the City Council, I'd like to receive your input on the
vehicles which are now used for on -duty activities and commuting purposes. If
the City Council were to eliminate all vehicles now commuting to work, I'd
specifically like to know your thoughts on the impact. If the City Council were to
eliminate commuting vehicles and replace them with auto allowances, how
would this impact your operation during the workday, if at all?
If the City Council were to phase out the use of commuter vehicles, how would
you propose that it take place? I realize that we've spoken about this issue
many times, but I believe that the City Council will deal with this issue in the next
few weeks. If this issue had an easy solution that would be perceived fair by all,
it would have been resolved long ago. As you know, it is my hope over time to
eliminate nearly all commuting vehicles and auto allowances. I have embarked
on that course over the last three years and will continue that practice provided
the City Council concurs with this direction.
If you could consider this issue and forward to me a brief (one or two pages)
memo on the matter by July 18th, it would help me formulate a response to the
City Council for our meeting on the 24th. Thanks for your help and assistance.
KJM:kf
Attachment
CITY OF NEWPORT BEACH
Office of the City Manager •
June 26, 1995
TO: Honorable Mayor And Members Of The City Council
FROM: Kevin J. Murphy, City Manager /kA.
SUBJECT: COMMUTER VEHICLES /BUDGET CHECKLIST
BACKGROUND
Following the City Council meeting on June 19th, Councilmember Norma
Glover clarified her request for placement of an item related to employees
utilizing City vehicles for on- the -job use and commuting purposes on the City
Budget Checklist for straw voting on June 26th. Specifically, Councilmember
Glover has requested that the City Council consider the elimination of non -
safety employees utilizing vehicles for commuting purposes. Below is a
summary of information related to this item and the various issues associated
with its implementation.
DISCUSSION •
The City staff has been reviewing the number of City employees utilizing City
vehicles for business and commuting purposes for the last three years. During
that time period, various proposals to reduce the number of vehicles used for
commuting purposes have been reviewed but none implemented nor formally
presented to the City Council for action or authorization to meet and confer as
necessary with impacted represented or unrepresented employees.
As additional information, it has been indicated that prior to the passage of
Proposition 13 in 1978 an extensive number of City staff members utilized
vehicles for commuting purposes to permit emergency response after normal
business hours and as a fringe benefit. Furthermore, after the passage of
Proposition 13 the City Council substantially reduced the number of vehicles
that were permitted to be used for commuting purposes; however, over the
passage of time the number increased to the point that in 1992 there were a
total of 59 vehicles identified that were permitted for commuting purposes.
Of this number, 23 vehicles (sedans and motorcycles) were utilized by Police
and Fire Department personnel. Of the remaining 36, four were utilized in a
carpooling program to assist the City in meeting its Rideshare goals as required
by the Air Quality Management District.
0 0
• Since the original survey in mid -1992, the number of commuting vehicles has
been gradually reduced in the non - safety group from 36 to today's level of 18.
This has been accomplished through normal attrition, wherein as new
employees have been hired to replace former occupants of commuter vehicles
the benefit has not been extended or in the case of six employees they have
converted to an auto allowance. Of these six, two will be retiring from the
organization in the next three months, and one within the next six months. In
replacing these employee positions there will be no vehicle utilized for
commuting purposes or allowances offered. A list of the current employees
utilizing vehicles for commuting purposes is attached with the name of the
department and position.
Approximately five years ago the City Council permitted several employees who
had been utilizing commuting vehicles to convert their vehicles to auto
allowances. In fact, there is no separate payment of an allowance since the
payment of $325 per month was added to an employees base salary. As part of
the 1995 -96 Budget, two commuters will be turning in their cars and opting for
the allowance.
ISSUES
If the City Council would choose to eliminate the use of City vehicles for
commuting purposes for the remaining eighteen employees, there are several
. issues and options. First the issues:
1. Of the remaining eighteen employees, two have provisions in their
employment agreements with the City permitting the use of vehicles for
commuting purposes.
2. There are four employees utilizing vehicles for commuting purposes who
are represented by employee associations, and prior to any change in
current practices it would require the City to meet and confer in good faith
prior to implementing any changes.
3. Ten of the eighteen employees utilize their City vehicles with regularity to
respond to City emergencies or after hours activities requiring their
presence.
4. If there are vehicles eliminated for commuting purposes and not replaced
with the allowance, then there will be situations with employees in the
same department at the same level, some with and some without
vehicles or allowances.
5. Several of the employees utilizing City vehicles for commuting purposes
are on call and frequently utilize their City vehicle for after hours
responses or City events.
0
OPTIONS
1) Eliminate all non- safety employees utilizing City vehicles for commuting •
purposes. Estimating the savings is difficult, but has been estimated at
$25,000 initially and $90,000 to $100,000 overtime, assuming that fewer
total vehicles are required in the City fleet.
2) Eliminate all non - safety employees utilizing City vehicles for commuting
purposes and replace them all with allowances consistent with past
allowances. As the individuals in these positions retire or leave City
service, eliminate the allowance in positions that can utilize pool vehicles
during the business day. Again, estimating the savings is difficult, but if
allowances are utilized and all or a substantial portion of the current cars
are converted to pool vehicles or auctioned out of the fleet, there may be
minimal savings initially and $90,000 - $100,000 per year over time.
3) Continue the current practice of eliminating the vehicles as individuals
leave City service. There would be no savings initially and $90,000 to
$100,000 over time. In three years, 50% of the non - safety commuter
vehicles have been eliminated and it is possible that over the course of
the next three to five years, a fair number of remaining vehicles could be
eliminated as commuters.
Each option would require the renegotiation of two City employee employment
agreements and an obligation to meet and confer with the affected employee •
groups.
U
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is
City Manager
City Attorney
Community Development
Community Development
Community Development
Community Development
Community Development
Administration Services
General Services
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
City Manager
City Attorney
Assistant City Manager
Chief Building Inspector
Chief Plan Checker
Sr. Code Enforcement officer
Advanced Planning Manager
Revenue Manager
General Services Director
Public Works Director /City Engineer
Public Works Inspector
Public Works Inspector
Public Works Inspector
Civil Engineer
Traffic Engineer
Acting Utilities Director
Utilities Superintendent
Utilities Superintendent
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AGENDA ITEM NO. 22
• CITY OF NEWPORT BEACH
Office of the City Manager
September 23, 1996
TO: Honorable Mayor and Members of the City Council
FROM: Kevin J. Murphy, City Manager I
SUBJECT: COMMUTER VEHICLES
BACKGROUND
Mayor Hedges has requested that the City's current practice of permitting a limited
number of employees to utilize City vehicles for commuting purposes be agendized.
The last time this matter was discussed by the City Council was June 26, 1995 when a
report was prepared in conjunction with the 1995 -96 Budget. A copy of that report and
the minutes from the meeting are attached. At the conclusion of that discussion, the
City Council directed staff to prepare a review of the issue and return with a policy on
the matter.
• From the City Council discussion in 1995, and as far back as 1992, it is apparent the
City Council wishes to reduce the number of City vehicles which are permitted to be
used for commuting purposes. In recognition of that direction, the number of
commuting vehicles has been reduced from 59 in 1992 to 38. The reduction from 59
to 38 has been accomplished through normal attrition and turnover in employees. For
example, the City's recently hired Assistant City Manager and Assistant to the City
Manager do not utilize a City vehicle, nor do they receive a vehicle allowance. When
a City pool car isn't available for their use, they are reimbursed on a mileage basis for
the use of their personal vehicle.
An explanation and breakdown of the remaining 38 is helpful to gain a greater
appreciation of the issue. Twenty -one (21) of the vehicles are utilized by Police and
Fire /Marine personnel, including eight (8) motor officers. Eleven (11) of the vehicles
are Public Works employees, including the Director and five (5) staff members who are
first responders to water, sewer or electrical problems seven days a week/twenty -four
hours a day. There are six (6) commuting vehicles utilized by executive or department
director level employees, including the City Manager, City Attorney, Police Chief, Fire
and Marine Chief, General Services Director and Public Works Director
DISCUSSION
In 1995, the City Council directed staff to prepare a policy regarding commuting
vehicles. To comply with City Council direction, City staff incorporated this work into a
study on the City's fleet and fleet maintenance. The study, now in preparation by the
Arroyo Group, covers the City's fleet maintenance program and operation, including a
• review of the number of commuting vehicles and will be making recommendations in
this area.
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A first draft of the Arroyo Group's study is due for delivery to the multi- department task
force coordinating this study on September 30th, and after review will be presented to
the City Council. Understanding that Mayor Hedges requested that this be on the
September 23rd agenda, we contacted the Arroyo Group to see if the study would be
completed early. Unfortunately, the consultant is in the final stages of preparing his
recommendations and will not have them available until the end of the month.
ALTERNATIVES
The City Council may wish to:
1. Receive the report of the Arroyo Group and review the recommendations on all
fleet issues, including commuting vehicles within sixty days;
mo
2. Direct staff to continue the practice of reducing the number of commuting
vehicles as normal turnover in staff occurs;
m
3. Direct the staff to eliminate the practice of permitting any vehicles to be used for
commuting vehicles (other than emergency on -call and stand -by personnel) •
and direct the City Manager to prepare a list of steps necessary to implement
this directive within 30 days.
Under Option 1 the staff would return with a comprehensive report on the City's total
fleet and ways the operation and maintenance of the fleet can be made more cost
efficient and effective for City departments. A minor, but important, component of this
study has been commuting vehicles. Staff anticipates a series of recommendations
including commuting vehicle policies.
Under Option 2 the staff would continue to phase out the number of commuting
vehicles. Since last year 3 of 18 non - safety commuting vehicles have been
eliminated, bringing the number down to 15. In 1992 the number of non - safety
commuting vehicles was 36.
Under Option 3 the staff would identify the actions necessary to achieve the phase -out
of all vehicles. As identified in 1995, this includes the amendment of current
employment agreements with individual employees and employee associations. It
may necessitate at some locations (Police facility) the creation of additional parking
spaces on -site or off -site. If the City Council selects Option 1, the same actions may be
necessary to the same or lesser degree, depending on the recommendations of the
study.
RECOMMENDATION .
The City staff recommends the City Council review the alternatives and provide
appropriate direction.
I'
0 0
CITY OF NEWPORT BEACH
• Office of the City Manager
June 26, 1995
TO: Honorable Mayor And Members Of The City Council
FROM: Kevin J. Murphy, City Manager
SUBJECT: COMMUTER VEHICLES /BUDGET CHECKLIST
BACKGROUND
Following the City Council meeting on June 19th, Councilmember Norma
Glover clarified her request for placement of an item related to employees
utilizing City vehicles for on- the -job use and commuting purposes on the City
Budget Checklist for straw voting on June 26th. Specifically, Councilmember
Glover has requested that the City Council consider the elimination of non -
safety employees utilizing vehicles for commuting purposes. Below is a
summary of information related to this item and the various issues associated
with its implementation.
DISCUSSION
The City staff has been reviewing the number of City employees utilizing City
vehicles for business and commuting purposes for the last three years. During
that time period, various proposals to reduce the number of vehicles used for
commuting purposes have been reviewed but none implemented nor formally
presented to the City Council for action or authorization to meet and confer as
necessary with impacted represented or unrepresented employees.
As additional information, it has been indicated that prior to the passage of
Proposition 13 in 1978 an extensive number of City staff members utilized
vehicles for commuting purposes to permit emergency response after normal
business hours and as a fringe benefit. Furthermore, after the passage of
Proposition 13 the City Council substantially reduced the number of vehicles
that were permitted to be used for commuting purposes; however, over the
passage of time the number increased to the point that in 1992 there were a
total of 59 vehicles identified that were permitted for commuting purposes.
Of this number, 23 vehicles (sedans and motorcycles) were utilized by Police
and Fire Department personnel. Of the remaining 36, four were utilized in a
carpooling program to assist the City in meeting its Rideshare goals as required
40 by the Air Quality Management District.
0 0
Since the original survey in mid -1992, the number of commuting vehicles has •
been gradually reduced in the non- safety group from 36 to today's level of 18.
This has been accomplished through normal attrition, wherein as new
employees have been hired to replace former occupants of commuter vehicles
the benefit has not been extended or in the case of six employees they have
converted to an auto allowance. Of these six, two will be retiring from the
organization in the next three months, and one within the next six months. In
replacing these employee positions there will be no vehicle utilized for
commuting purposes or allowances offered. A list of the current employees
utilizing vehicles for commuting purposes is attached with the name of the
department and position.
Approximately five years ago the City Council permitted several employees who
had been utilizing commuting vehicles to convert their vehicles to auto
allowances. In fact, there is no separate payment of an allowance since the
payment of $325 per month was added to an employees base salary. As part of
the 1995 -96 Budget, two commuters will be turning in their cars and opting for
the allowance.
ISSUES
If the City Council would choose to eliminate the use of City vehicles for
commuting purposes for the remaining eighteen employees, there are several
issues and options. First the issues: •
1. Of the remaining eighteen employees, two have provisions in their
employment agreements with the City permitting the use of vehicles for
commuting purposes.
2. There are four employees utilizing vehicles for commuting purposes who
are represented by employee associations, and prior to any change in
current practices it would require the City to meet and confer in good faith
prior to implementing any changes.
3. Ten of the eighteen employees utilize their City vehicles with regularity to
respond to City emergencies or after hours activities requiring their
presence.
4. If there are vehicles eliminated for commuting purposes and not replaced
with the allowance, then there will be situations with employees in the
same department at the same level, some with and some without
vehicles or allowances.
5. Several of the employees utilizing City vehicles for commuting purposes
are on call and frequently utilize their City vehicle for after hours
responses or City events.
i
0
• OPTIONS
0
1) Eliminate all non - safety employees utilizing City vehicles for commuting
purposes. Estimating the savings is difficult, but has been estimated at
$25,000 initially and $90,000 to $100,000 overtime, assuming that fewer
total vehicles are required in the City fleet.
2) Eliminate all non - safety employees utilizing City vehicles for commuting
purposes and replace them all with allowances consistent with past
allowances. As the individuals in these positions retire or leave City
service, eliminate the allowance in positions that can utilize pool vehicles
during the business day. Again, estimating the savings is difficult, but if
allowances are utilized and all or a substantial portion of the current cars
are converted to pool vehicles or auctioned out of the fleet, there may be
minimal savings initially and $90,000 - $100,000 per year over time.
3) Continue the current practice of eliminating the vehicles as individuals
leave City service. There would be no savings initially and $90,000 to
$100,000 over time. In three years, 50% of the non - safety commuter
vehicles have been eliminated and it is possible that over the course of
the next three to five years, a fair number of remaining vehicles could be
eliminated as commuters.
• Each option would require the renegotiation of two City employee employment
agreements and an obligation to meet and confer with the affected employee
groups.
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l/ /9 96 -
CURRENT COMMUTING VEHICLES
City Manager City Manager
City Attorney City Attorney
Community Development Chief Building Inspector
Community Development Chief Plan Checker
Community Development Sr. Code Enforcement officer
General Services
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
General Services Director
Public Works Director /City Engineer
Public Works Inspector
Public Works Inspector
Public Works Inspector
Civil Engineer
Traffic Engineer
Acting Utilities Director
Utilities Superintendent
Utilities Superintendent
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CITY OF NEWPORT 3EACH
MINUTES
ROLL
CALL
3��ox'oz
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June 26, 1995
INDEX
Mayor Pro Tern Debay stated she respects Council
Badget
Member Glover's concern with respect to
providing basic service, but noted that the libraries
in Costa Mesa, Laguna Beach and Irvine only
provide service four days a week.
Council Member Cox stated he was not going to
support Mayor Hedges' motion because he does
not think it is right for the Council to dictate a
policy to the Library Board, and felt that Council
Member Edwards' motion was more appropriate
of this time.
Ayes
x
x
The substitute, substitute motion made by Mayor
Noes
x
x
x
x
x
Hedges was voted on and FAILED.
Ayes
x
x
x
x
x
The substitute motion made by Council Member
Noes
x
x
Edwards was voted on and carried.
• COMMUTER VEHICLES - $25,000
The City Manager stated this item was placed on
the checklist by Council Member Glover, and
noted that the City in 1992 had 59 vehicles that
were being utilized for commuting purposes to and
from work, with the vast majority being used by the
Police Department; this number has been reduced
over the years, and to -date, there are IS vehicles
being utilized by employees for commuting
purposes. Also, six additional vehicles have been
converted to auto allowances and combined with
that employee's salary, two of which will be
eliminated within the next few months. He stated
he has attempted to reduce the number of
commuter vehicles, as well as the automobile
allowance, as those positions are vacated. If the
Council were to eliminate all non -safety
employees utilizing City vehicles for commuting
purposes, the estimated reduction is $25.000 initially
and $90,000 to $100,000 over time, assuming fewer
total vehicles are required in the City fleet. If the
Council were to reduce the number of commuter
vehicles, he would request that the staff be
directed to meet with the appropriate employee
groups.
Council Member Glover stated that as part of the
"long -time culture" at City Hall, some of the non -
safety employees have been given City vehicles to
commute to and from work. However, there is also
a pool of cars available to employees as well as a
monthly automobile allowance of $325 given to
certain employees who have turned in their City
vehicle as an added salary incentive. She stated
she felt it is time for the City to make a "cultural
Volume 49 - Page 278
l 1 l Y UP iNh VVrtj tc l JhAl i
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June 26, 1995
IND X
change" and no longer provide employees with
Budget
City vehicles or vehicle allowance. She also felt
that a message needs to be sent to the community
that the City is coming into the nineties with some
of their practices.
Motion
x
Mayor Hedges moved to eliminate all commuting
vehicles, safety and non - safety, and all automobile
allowance, except for those employees under
specific contract, and that the staff be directed to
meet and confer with the appropriate employee
groups.
Council Member Cox stated he will not support
Mayor Hedges' motion because of the
methodology being proposed. He stated he
agrees with Council Member Glover that a
"cultural" change is needed at City Hall, but he
does not feel this is the appropriate approach and
that it would only cause more problems.
Council Member Edwards indicated he felt this
issue needed further review inasmuch as it includes
safety as well as non - safety commuter vehicles.
Motion
x
Council Member Cox stated he felt it was
dangerous to "attack" the budget in this matter,
•
and therefore, made a substitute motion to leave
the $25,000 In the budget as recommended, but
that staff be directed to come back with an In-
depth review and proposed policy for all safety
and non - safety commuter vhelcles.
Mayor Pro Tern Deboy stated she thinks the
philosophy to change the "culture" at City Hall is
good; however, pursuant to previous agreements
made with various employees and employee
groups regarding City vehicles and vehicle
allowance, she will support Council Member Cox's
motion.
Mayor Hedges stated he will not support the
substitute motion because this is an issue that has
come up the last three years and is still not
resolved.
Ayes
x
x
x
x
x
x
The substitute motion made by Council Member
Noes
x
Cox was voted on and carried.
• TRAVEL AND MEETINGS - $82,680
The City Manager noted that the travel and
meetings account in the various departments does
not include specilized training (or post - training for
the Police Department(.
Motion
x
Motion was made by Council Member Cox to
approved the recommended allocation.
•
Volume 49 - Page 279
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AGENDA ITEM NO. 28
CITY OF NEWPORT BEACH
Office of the City Manager
October 28, 1996
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: Kevin J. Murphy, City Manager �14
SUBJECT: COMMUTING VEHICLES
On the September 23rd City Council agenda, the City Council directed that this
matter return with the results of the study on the City's fleet and fleet
maintenance. This study was distributed on October 22nd in Preliminary Draft
form to the City Department Directors who are participating as the Task Force
Study Group.
The Preliminary Draft has provided less detail and recommendations than
anticipated on the issue of commuting vehicles and we have asked the
consultant to revisit the issue and provide recommendations that are
comprehensive and thoroughly researched anticipating that the City Council is
looking for complete staff and consultant effort on this matter.
The work on this has commenced by the consultant and we will have the item
for the City Council on November 12th for your review and consideration.
RECOMMENDATION
The City Council continue the discussion on Commuting Vehicles to November
12, 1996.
r
TO: Mayor and City Council
FROM: General Services Director
SUBJECT: Fleet Maintenance and Procurement Study
Recommendation
City Council Agenda
Item No. 14
April 22, 1996
Direct staff to complete an agreement for services with Arroyo Associates, Inc. to
conduct a Fleet Maintenance and Procurement Study at a cost of $30,000.
Approve a budget amendment transferring funds from the Internal Service Fund for
equipment maintenance and replacement to an appropriate expenditure account.
Background
An Internal Service Fund (ISF) was established on July 1, 1993 in an effort to
identify actual fleet maintenance and replacement costs and promote more efficient
management of fleet assets. The General Services Department was designated the
managing department of the $3.5 million fund using existing City staffing levels.
• The ISF is managed through the use of an automated data collection system.
Monthly maintenance and replacement rates are set by the General Services
Department on an annual basis for each City vehicle or item of equipment, with each
department paying into a central fund that combines both maintenance and
replacement funding.
Prior to the formation of the ISF, the staff of the various City departments managed,
on an individual basis, the replacement of their own units. Maintenance activities
were accounted for by an hourly service fee that was calculated on an annual basis.
Capital improvements, depreciation, and overhead costs of the equipment
maintenance and replacement programs were not accounted for under the previous
system.
The advent of the ISF occurred at a time of budget cuts, and although all
departments were given credit for the increased costs in their respective budgets, the
overall costs were higher than the previous decentralized system, as all direct and
indirect costs of operating the system were identified and included in the rates.
Naturally, this has not made the program terribly popular among City departments,
particularly in combination with other reductions which have taken place and the
lengthening of the replacement schedule for equipment. Partly as a result of the
requirement for individual departments to pay the full maintenance and replacement
costs of operating the fleet, the size of the fleet has decreased from 504 units in FY
• 92 -93 to 429 presently.
On April 25, 1995, the Police Department completed a report that included a
recommendation that the equipment maintenance effort at their facility, which
consists of three mechanics and a small repair facility, be transferred to Police
Department management. In addition, the report recommended the use of leased
vehicles.
The Police Department recommendations were reviewed by the General Services
Department with a resultant report forwarded to the City Manager on April 28, 1995.
As a result of the continued scrutiny of the management of the ISF and as a means
to properly assess the Police Department proposal, a fleet maintenance study by an
outside consultant was commissioned by the Council on July 10, 1995 at a cost of
$15,300.
The study, which was to analyze the current management of the ISF and fleet
maintenance operations, was conducted by a private consultant, ETS Consulting of
Oak Harbor, Washington. The study, which was to be conducted in three phases,
commenced on August 4, 1995 with interviews of each of the departments.
The consultant became ill near the start of the individual department assessment
briefings and left early. In the following month of September, he developed a rough
draft of his findings based on his limited interviews, which was reviewed by the City
staff and returned to the contractor, with numerous comments.
Further delays in the completion of the report consumed the months of October and
November. Due to the delays and the continued acute illness of the consultant, the
project was terminated by City staff on November 22, 1995. The consultant was
paid a total of $5,000 upon receipt of a final draft report. Various consultant
recommendations have been evaluated and implemented.
On December 13, 1995, staff prepared a report for the Council on the termination of
the contract as well as the intent to resume the project. Shortly thereafter, staff
began the search for another consultant.
In January, 1996 a steering committee, composed of primarily department directors,
was formed to prepare a Request for Proposal (RFP) for a subsequent fleet
maintenance study. The RFP was sent to eight pre - qualified consultants on
February 12, 1996.
Three of the consultants, David M. Griffith and Associates LTD., Spectrum
Consultants Inc., and Arroyo Associates Inc., responded with bids of $53,000,
$43,850, and $30,000 respectively. Each of the consultants was interviewed by the
steering committee. The low bidder, Arroyo Associates, Inc., was unanimously
selected by committee as the best qualified consultant on April 3, 1996.
Discussion
ISF rates for vehicle and equipment maintenance and replacement are determined by
an analysis of the data collected on a daily basis. During the past year, maintenance
costs have decreased in excess of $125K, primarily due to various programs or
actions initiated by staff. As a residt, the maintenance rates for FY 96 -97 have been
conservatively decreased by 4.5 %. The replacement rates are based upon the
estimated replacement cost of each piece of equipment and have steadily increased
for the past two years as manufacturers have increased prices by 2% to 20%
annually.
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An in -depth study of equipment maintenance and replacement activities by an
outside consultant would accomplish three important tasks: one, it would provide
recommendations to ensure the City operation is efficient and cost effective; two, it
would form the basis for the credibility of the management of the ISF; and three, it
would allow an independent appraisal of the Police Department proposals to
decentralize maintenance and replacement management and consider use of leased
police vehicles.
Study Description
The study would be focused on the following areas:
a. Evaluate employee utilization and staffing efficiency
b. Review equipment maintenance policies
c. Analyze the reporting and the use of management information system
d. Review fleet utilization and replacement practices
e. Analyze the Police Department proposal to decentralize equipment maintenance
and replacement and use of leased vehicles
f. Evaluate the financial aspects of the ISF
The study would be conducted in accordance with the attached work plan provided by
Arroyo Associates. The estimated start -up date would be April 22, with completion
no later than July 15. A final report would be presented to the Council by the
consultant.
• The maximum cost of the study is $30,000. The consultant has stipulated that if the
study can be completed with fewer man hours than estimated, the cost will be
adjusted accordingly. Funds are available in the ISF as a result of the reduced costs
of vehicle maintenance during FY 95 -96 that was mentioned earlier in this report.
Approval of the attached budget amendment would facilitate the transfer of funds.
Summary
The study, while described as a Fleet Maintenance and Procurement Study, would
also consider the privatization of the Equipment Maintenance Division. Costs of local
maintenance functions would be compared with City costs. Best management
practices would be compared to City management activities to ensure the City is
operating as efficiently as possible. The consultant is confident that his fee will be
recovered by the City in lowered operating costs. Finally, it is important that all City
departments have confidence in the ISF and its management. Only an outside,
independent study would be capable of doing this.
Very respectfully,
David E. Niederhaus
DEN /mhl
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Cit4UDGET of Newport Beach NO. BA- 042
AMENDMENT
1995 -96 AMOUNT: 530,000.00
EFFECT ON BUDGETARY FUND BALANCE:
X Increase Revenue Estimates Increase in Budgetary Fund Balance
Increase Budget Appropriations AND Decrease in Budgetary Fund Balanc
It�1 Transfer Budget Appropriations X No effect on Budgetary Fund Balanc
SOURCE:
from existing budget appropriations
from additional estimated revenues
X s
from unappropriated fund balance
FYPI AMATIMI-
}} YY- S p
This budget amendment is requested to provide for the following:
To appropriate $30,000 to complete the study of Fleet Maintenance and Procurement with Arroyo
Associates, Inc. The funds will come from the sale of vehicles.
ACCOUNTING ENTRY:
Amount
BUDGETARY FUND BALANCE Debit Credit
Fund Account Description
General Fun 010 3605 Fund Balance Control
�EVENUE APPROPRIATIONS (3601)
Fund/Qiv Account Description
610 6830 Sale of Vehicles $30,000.00
EXPENDITURE APPROPRIATIONS (3603)
Description
Divisio Number 6110 Equipment Maintenance - Maintenance
Accoun Number 8080 Services - Professional and Technical $30,000.00
Divisio Number
Accoun Number
Divisio Number
Accoun Number
Divisio Number
Accoun Number
Project Number
Automatic System Entry.
Signed:
Financial Ap roval: Fina ce Director Date
Signed: ,
Admi is rative Ap rov : City Manager Date
Signed:
City Council Approval: City Clerk Date
• CITY OF NEWPORT BEACH•
REQUESTS FOR FUNDS
Date April 15, 1996
TO: Administrative Services Director
FROM: General Services Director
SUBJECT: REQUEST FOR FUNDS
Request for additional funds, $
Funds are not available in the current budget.
Additional appropriation to Account No.
is requested.
Additional funds are needed for:
r�
U
Request for transfer of funds, 30,000. •
Transfer from Account No. 610 -6830 to No. 6110 -8080.
Funds are available in the current budget.
Transfer of funds is needed for:
Department Head
Approved:
City Manager
Administrative Services Director
•
E
THIS AGREEMENT, entered into this 44 day of
19q�, by and between CITY OF NEWPORT BEACH , a Municipal
Corporation (hereinafter referred to as "City "), and Arroyo
Associates, Inc. whose address is 234 North E1 Molino Avenue,
Suite 20, Pasadena, CA (hereinafter referred to as "Consultant "),
is made with reference to the following:
A. City is a Municipal Corporation duly organized and
validly existing under the laws of the State of California with
the power to carry on its business as it is now being conducted
under the statutes of the State of California and the Charter of
the City.
B. The principal member of Consultant is Mr. Nicolas
Conway, Project Manager.
C. City desires to engage Consultant to conduct a
Fleet Maintenance and Procurement Study upon the terms and
conditions contained in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the
undersigned parties as follows:
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1. TERM
The Term of this Agreement shall commence on the 4,Vk day of
'j., L , 1914, and shall terminate on the 411\ day of
�, 19`6, unless terminated
earlier as set forth herein.
2. SERVICES TO BE PERFORMED
Consultant shall perform the tasks set forth in Exhibit "A ",
attached hereto and incorporated herein by this reference.
3. COMPENSATION TO CONSULTANT
Consultant shall be compensated for services performed
pursuant to this Agreement in the amount and manner set forth in
Exhibit "A ", attached hereto and incorporated herein by this
reference.
4. STANDARD OF CARE
All of the work shall be performed by Consultant or under
Consultant's supervision. Consultant represents that it possesses
the professional and technical personnel required to perform the
services required by this Agreement and that it will perform all
services in a manner commensurate with the community professional
standards. All services shall be performed by qualified and
experienced personnel who are not employed by City nor have any
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contractual relationship with City. Consultant represents and
warrants to City that it has or shall obtain all licenses,
permits, qualifications and approvals required of its profession.
Consultant further represents and warrants that it shall keep in
effect all such licenses, permits and other approvals during the
term of this Agreement.
5. INDEPENDENT PARTIES
City retains Consultant on an independent contractor basis
and Consultant is not an employee of the City. The manner and
means of conducting the work are under the control of Consultant,
except to the extent they are limited by statute, rule or
regulation and the express terms of this Agreement. No civil
service status or other right of employment with City will be
acquired by virtue of Consultant's services. None of the benefits
provided by City to its employees, including, but not limited to,
unemployment insurance, worker's compensation plans, vacation and
sick leave, are available from City to Consultant, its employees
or agent. Deductions shall not be made for any state or federal
taxes, FICA payments, PERS payments or other purposes normally
associated with an employer - employee relationship from any fees
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0
0
due Consultant. Payments of the above items, if required, are the
responsibility of Consultant.
6. COOPERATION
Consultant agrees to work closely and cooperate fully with
City's designated Project Administrator, and any other agencies
which may have jurisdiction or interest in the work to be
performed. City agrees to cooperate with the Consultant on the
project.
7. PROJECT MANAGER
The Consultant shall assign the project to a Project Manager,
who shall coordinate all phases of the project. This Project
Manager shall be available to the City at all times. The
Consultant has designated Mr. Nick Conway to be its Project
Manager.
8. TIME OF PERFORMANCE
The task to be performed by Consultant under and pursuant to
this Agreement shall be completed within 90 days that the project
estimate is accepted. In accordance with exhibit "II -1" of
exhibit "A" Consultant shall receive no additional compensation if
completion of its obligation under this Agreement requires a time
greater than as set forth herein, unless such extension is caused
solely by the conduct of the City. Each party hereby agrees to
provide timely notice to the other of any violation occurring
under this Section and the cause thereof.
9. CITY POLICY
Consultant will discuss and review all matters relating to
policy and project direction with the Project Administrator in
advance of all critical decision points in order to ensure that
the project proceeds in a manner consistent with City goals and
policies.
10. CONFORMANCE TO APPLICABLE REQUIREMENT
All work prepared by Consultant shall conform to applicable
city, county, state and federal requirements and be subject to
approval of the Project Administrator and City Council.
11. PROGRESS
Consultant is responsible to keep the Project Administrator
and /or his /her duly authorized designee informed on a regular
basis regarding the status and progress of the work, activities
performed and planned, and any meetings that have been scheduled
or are desired.
12. HOLD HARMLESS
Consultant agrees to indemnify, defend, save and hold
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harmless City, its City Council, boards and commissions, officers
and employees from and against any and all loss, damages,
liability, claims, suites, costs and expenses for damages of any
nature whatsoever, including, but not limited to, bodily injury,
death, personal injury, property damages, attorneys fees and court
costs arising from any and all negligent actions of Consultant,
its employees, agents or subcontracts in the performance of
services or work conducted or performed by consultant pursuant to
this Agreement.
Consultant shall indemnify and hold harmless City, its City
Council, boards and commissions, officers and employees from and
against any and all loss, damages, liability, claims, suits, costs
and expenses whatsoever, including reasonable attorneys' fees,
accruing or resulting to any and all persons, firms or
corporations furnishing or supplying work, services, materials,
equipment or supplies arising from or in any manner connected to
the Consultant's negligent performance of services or work
conducted or performed pursuant to this Agreement.
13. INSURANCE
Without limiting consultant's indemnification of City,
Consultant shall obtain and provide and maintain at its own
Pi
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expense during the term of this Agreement policy or policies of
liability insurance of the type and amounts described below and
satisfactory to the City. Such policies shall be signed by a
person authorized by that insurer to bind coverage on its behalf
and must be filed with the City prior to exercising any right or
performing any work pursuant to this Agreement. All insurance
policies shall add as insured the City, it selected officials,
officers and employees for all liability arising from Consultant's
services as described herein.
Prior to the commencement of any services hereunder,
Consultant shall provide to city certificates of insurance from an
insurance company certified to do business in the State of
California, with original endorsements, and copies of policies, if
requested by City, of the following insurance, with Best's Class B
or better carriers:
A. Worker's compensation insurance covering all
employees and principals of the Consultant, per the laws of
the State of California;
B. Commercial general liability insurance covering
third party liability risks, including without limitation,
contractual liability, in a minimum amount of $1 million
-7-
y •
combined single limit per occurrence for bodily injury,
personal injury and property damage. If commercial general
liability insurance or other form with a general aggregate is
used, either the general aggregate shall apply separately to
this project, or the general aggregate limit shall be twice
the occurrence limit;
C. Commercial auto liability and property insurance
covering any owned and rented vehicles of Consultant in a
minimum amount of $1 million combined single limit per
accident for bodily injury and property damage.
Said policy or policies shall be endorsed to state that
coverage shall not be suspended, voided or canceled by either
party, or reduced in coverage or in limits except after thirty
(30) days' prior notice has been given in writing to City.
Consultant shall give to City prompt and timely notice of claim
made or suit instituted arising out of Consultant's operation
hereunder. Consultant shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the work.
Consultant agrees that in the event of loss due to any of the
perils for which it has agreed to provide comprehensive general
and automotive liability insurance, that Consultant shall look
solely to its insurance for recovery. Consultant hereby grants to
City, on behalf of any insurer providing comprehensive general and
automotive liability insurance to either Consultant or City with
respect to the services of Consultant herein, a waiver of any
right of subrogation which any such insurer of said Consultant may
acquire against City by virtue of the payment of any loss under
such insurance.
14. PROHIBITION AGAINST TRANSFERS
Consultant shall not assign, sublease, hypothecate or
transfer this Agreement or any interest in this Agreement,
directly or indirectly, by operation of law or otherwise without
prior written consent of City. Any attempt to do so without
consent of City shall be null and void, and any assignee,
sublessee, hypothecate or transferee shall acquire no right or
interest by reason of an attempted assignment, hypothecation or
transfer.
The sale, assignment, transfer or other disposition of any of
the issued and outstanding capital stock of Consultant, or of the
interest of any general partner or joint venturer or syndicate
member or co- tenant if Consultant is a partnership or joint
venture or syndicate or co- tenancy, which shall result in changing
the control of Consultant, shall be construed as an assignment of
this Agreement. Control means fifty percent (50 %) or more of the
voting power, or twenty -five percent (251) or more of the assets
of the corporation, partnership or joint venture.
15. REPORTS
Each and every report, draft, work product, map, record and
other document reproduces, prepared or caused to be prepared by
Consultant pursuant to or in connection with this Agreement shall
be the exclusive property of City.
No report, information or other data given to or prepared or
assembled by Consultant pursuant to this Agreement shall be made
available to any individual or organization by Consultant without
prior approval by City.
Consultant shall, at such time and in such forms as City may
require, furnish reports concerning the status of services
required under this Agreement.
16. CONFIDENTIALITY
The information which results from the services in this
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Agreement is to be kept confidential unless the release of
information is authorized by the City.
17. CITY'S RESPONSIBILITIES
City shall furnish to Consultant base, maps, existing
studies, ordinances, data and other existing information as shall
be requested by Consultant and materials in City's possession
necessary for Consultant to complete the work contemplated by this
Agreement. City further agrees to provide all such materials in a
timely manner so as not to cause delays in Consultant's work
schedule.
18. ADMINISTRATION
This Agreement will be administered by the General Services
Department. The General Services Director or his /her designees
shall be considered the Project Administrator and shall have the
authority act for the City under this Agreement. The Project
Administrator or his /her authorized representative shall represent
the City in all matters pertaining to the services to be rendered
pursuant to this Agreement.
19. EXTRA WORK
Consultant shall receive compensation for extra work
authorized by City in accordance with the schedule of billing
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0
0
rates set forth in Exhibit "A." All extra work must be authorized
in writing by the Project Administrator and Consultant shall not
be entitled to extra compensation without authorization.
20. RECORDS
Consultant shall keep records and invoices in connection with
its work to be performed under this Agreement. Consultant shall
maintain complete and accurate records with respect to the costs
incurred under this Agreement. All such records shall be clearly
identifiable. Consultant shall allow a representative of City
during normal business hours to examine, audit and make
transcripts or copies of such records. Consultant shall allow
inspection of all work, data, documents, proceedings and
activities related to the Agreement for a period of three (3)
years from the date of final payment under this Agreement.
21. REIMBURSEMENT FOR EXPENSES
Consultant shall not be reimbursed for any expenses unless
authorized in writing by City.
22. MONTHLY INVOICES
Consultant shall submit invoices to the City on a monthly
basis in accordance with Consultant's schedule of fees contained
in Exhibit "A" hereof. Each invoice will be itemized. Each
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invoice shall show the number of hours worked per
person /consultant and the nature of the work performed.
23. PAYMENT OF COMPENSATION
City shall make payments to Consultant upon receipt and
approval of a monthly invoice. Final payment will be paid after
final report is presented and accepted by City.
24. NONDISCRIMINATION BY CONSULTANT
Consultant represents and agrees that Consultant, its
affiliates, subsidiaries or holding companies do not and will not
discriminate against any subcontractor, consultant, employee or
applicable for employment because of race, religion, color, sex,
handicap or national origin. Such nondiscrimination shall
include, but not be limited to, the following: employment,
upgrading, demotion, transfers, recruitment, recruitment
advertising, layoff, termination, rates of pay or other forms of
compensation and selection for training, including apprenticeship.
25. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other consultants in
connection with this project.
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26. CONFLICTS OF INTEREST
A. The Consultant or its employees may be subject to the
provisions of the California Political Reform Act of 1974
(the "Act "), which (1) requires such persons to disclose financial
interest that may foreseeable be materially affected by the work
performed under this Agreement, and (2) prohibits such persons
from making, or participating in making, decisions that will
foreseeable financially affect such interest.
B. If subject to the Act, Consultant shall conform to
all requirements of the Act. Failure to do so constitutes a
material breach and is grounds for termination of this Agreement
by the City. The Consultant shall indemnify and hold harmless
the City for any claims for damages resulting from the
Consultant's violation of this Section.
27. SUBCONTRACTING
A. Consultant shall not subcontract any portion of
the work required by this Agreement, except as expressly stated
herein, without prior approval of City.
B. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this
-14-
Agreement.
28. NOTICES
All notices, demands, requests or approvals to be given under
this Agreement shall be given in writing and conclusively shall be
deemed served when delivered personally or on the second business
day after the deposit thereof in the United States mail, postage
prepaid, registered or certified, addressed as hereinafter
provided.
All notices, demands, requests or approvals from Consultant
to City shall be addressed to City at:
City of Newport Beach
3300 Newport Boulevard
P. 0. Box 1768
Newport Beach, CA 92659 -1768
Attention: Mr. David E. Niederhaus
All notices, demands, requests or approvals from City to
Consultant shall be addressed to Consultant at:
Arroyo Associates, Inc.
234 North E1 Molino Avenue, Suite 202
Pasadena, CA 91101 -1675
Attention: Mr. Nick Conway, Project Manager
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29. TERMINATION
In the event Consultant hereto fails or refuses to perform
any of the provisions hereof at the time and in the manner
required hereunder, Consultant shall be deemed in default in the
performance of this Agreement. If such default is not cured
within a period of two (2) days, or if more than two (2) days are
reasonably required to cure the default and Consultant fails to
give adequate assurance of due performance within two (2) days
after receipt by Consultant from City of written notice of
default, specifying the nature of such default and the steps
necessary to cure such default, City may terminate the Agreement
forthwith by giving to the Consultant written notice thereof.
City shall have the option, at its sole discretion and
without cause, of terminating this Agreement without cause by
giving seven (7) days' prior written notice to Consultant as
provided herein. Upon termination of this Agreement, each party
shall pay to the other party that portion of compensation
specified in this Agreement that is earned and unpaid prior to the
effective date of termination.
30. COST OF LITIGATION
swig
If any legal action is necessary to enforce any provision
hereof or for damages by reason for an alleged breach of any
provisions of this Agreement, the prevailing party shall be
entitled to receive from the losing party all costs and expenses
in such amount as the court may adjudge to be reasonable
attorneys' fees.
31. COMPLIANCES
Consultant shall comply with all laws, state or federal and
all ordinances, rules and regulations enacted or issued by City.
32. WAIVER
A waiver by City of any breach of any term, covenant or
condition contained herein shall not be deemed to be a waiver of
any subsequent breach of the same or any other term, covenant or
condition contained herein whether of the same or a different
character.
33. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding
of every kind or nature whatsoever between the parties hereto and
all preliminary negotiations and agreements of whatsoever kind or
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nature are merged herein. No verbal agreement or implied covenant
shall be held to vary the provisions hereon. Any modification of
this Agreement will be effective only by written execution signed
by both City and Consultant.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed on the day and year first written above.
ATTEST:
db" M.
CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY
wb /agr /a,royo.doc
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
CONSULTANT
By. O��O'