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HomeMy WebLinkAboutModern Machinery, Inc. - 042516�tEEMENT FOR THE PURCHASE OF � n�:OD � SWEEPER WITH FRONT -MOUNTED BROOM lel: - EI LL Modern Machinery, Inc. ("Contractor") and Jefferson County ("County"), a political subdivision of the State of Washington, for good and valuable consideration bargained for and exchanged, hereto do agree as follows: 1. General The Contractor will provide and one used 2012 Rosco SweePro mechanical sweeper with front -mounted broom, serial number 489079849, for use by the County's Department of Public Works. The complete unit must be supplied and delivered by one company responsible for the performance, warranty, parts, and service as specified. All integral components and parts must work together as a complete and balanced unit. The mechanical sweeper is currently in possession of the County under a rental agreement and shall remain in possession of the County during execution of this agreement. Contractor shall cease charging rental fees on March 21, 2016, pending execution of this agreement and transfer of title for the mechanical sweeper to the County. 2. Compensation The County shall pay the Contractor $29,162.00 plus state and local sales taxes. 3. Manuals, Certificates, Applications Operator's manuals must be provided with all installed components. Technical Service Bulletins (TSBs) must be forwarded directly to the Fleet Services Division as they are issued. One complete technical service manual set must be provided, preferably electronically on CD or DVD but partially or fully in hard copy where electronic manuals are not available. The following paperwork must be provided at the time of delivery: 1. An invoice matching the pricing and other terms of this contract; 2. A Certificate of Origin (Manufacturer's Statement of Origin) assigned properly so as to document the complete chain of ownership from the unit's manufacturing to its sale to the County with the Contractor being the owner most proximate to the County and otherwise processed in accordance with WAC 308-56A- 110; 3. All applicable warranty certificates and applications for delayed warranty start dates; and 4. Completed State of Washington Department of Licensing Vehicle Certificate of Ownership Application. All title and ownership paperwork must include the following information for the owner to be registered: Jefferson County PO Box 1200 Port Hadlock, WA 98339 4. Delivery The mechanical sweeper is currently in possession of the County under a rental agreement and shall remain in possession of the County. Within seven days of the execution of this agreement, the Contractor shall deliver title and related paperwork to the County at the following address: Fleet Services Division Jefferson County 371 Chimacum Road / PO Box 1200 Port Hadlock, WA 98339 PURCHASE OF USED MECHANICAL SWEEPER WITH FRONT -MOUNTED BROOM, PAGE l OF 8 5. Insurance Prior to commencing work, the Contractor shall obtain at its own cost and expense the following insurance from companies licensed in the State with a Best's rating of no less than A:VII. The Contractor shall provide to the County Risk Manager certificates of insurance with original endorsements affecting insurance required by this clause prior to the commencement of work to be performed. The insurance policies required shall provide that thirty (30) days prior to cancellation, suspension, reduction or material change in the policy, notice of same shall be given to the County Risk Manager by registered mail, return receipt requested, for all of the following stated insurance policies. If any of the insurance requirements imposed on the Contractor by the Contract are not complied with at the renewal date of the insurance policy, payments to the Contractor shall be withheld until all such requirements have been met, or at the option of the County, the County may pay the renewal premium and withhold such payments from the moneys due the Contractor. All notices shall name the Contractor and identify the agreement by contract number or some other form of identification necessary to inform the County of the particular contract affected. Workers Compensation and Employers Liability Insurance. The Contractor shall procure and maintain for the life of the contract, Workers Compensation Insurance, including Employers Liability Coverage, in accordance with the laws of the State of Washington. General Liability (1) - with a minimum limit per occurrence of one million dollars ($1,000,000) and an aggregate of not less than two million dollars ($2,000,000) for bodily injury, death and property damage unless otherwise specified in the contract specifications. This insurance coverage shall contain no limitations on the scope of the protection provided and indicate on the certificate of insurance the following coverage: a. Broad Form Property Damage with no employee exclusion; b. Personal Injury Liability, including extended bodily injury; c. Broad Form Contractual/Commercial Liability including completed operations (contractors only); d. Premises - Operations Liability (M&C); e. Independent Contractors and Subcontractors; and f. Blanket Contractual Liability. Automobile (2) - with a minimum limit per occurrence of $1,000,000 for bodily injury, death and property damage unless otherwise specified in the contract specifications. This insurance shall indicate on the certificate of insurance the following coverage: g. Owned automobiles; h. Hired automobiles; and, i. Non -owned automobiles. Garagekeepers Legal Liability Insurance. The Contractor must provide Garage Liability Insurance with limits of not less than $500,000 per occurrence, combined single limit, for bodily injury and property damage. (1) Note: The County shall be named as an additional insured party on a primary, non-contributory basis under this policy. (2) Note: The County shall be named as an additional insured party on a primary, non-contributory basis under this policy. Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the contract by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention or The Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. PURCHASE OF USED MECHANICAL SWEEPER WITH FRONT -MOUNTED BROOM, PAGE 2 O 8 The Contractor shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the requirements stated herein. Failure of The Contractor to take out and/or maintain any required insurance shall not relieve The Contractor from any liability under the Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any form of policy. It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be assumed by and be at the sole risk of the Contractor. It is agreed by the parties that judgments for which the County may be liable, in excess of insured amounts provided herein, or any portion thereof, may be withheld from payment due, or to become due, to The Contractor until such time as the Contractor shall furnish additional security covering such judgment as may be determined by the County. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. Any insurance coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any policy of insurance the Contractor must provide in order to comply with this Agreement. If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the Contractor refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Contractor to obtain the full text of that endorsement and forward that full text to the County. The County may, upon the Contractor's failure to comply with all provisions of this contract relating to insurance, withhold payment or compensation that would otherwise be due to the Contractor. The Contractor is responsible for all loss or damage to County property including the vehicles or equipment full replacement cost while in Contractor's care, custody and control. The Contractor is responsible for all loss or damage to personal property (including materials, equipment, tools and supplies) owned, rented or used by Contractor. The insurance Contractor is obligated to obtain and maintain under this Contract shall not in any manner limit or qualify the liabilities or obligations of the Contractor under this Agreement or to an injured third party. 6. Promise to Employ The County of Jefferson hereby promises and agrees with the Contractor to employ, and does employ the Contractor to furnish the goods and equipment described and to furnish the same according to the attached specifications and the terms and conditions herein contained, and hereby contracts to pay for the same according to the attached specifications and the schedule of unit or itemized prices hereto attached, at the time and in the manner and upon the condition provided for in this contract. The County further agrees to employ the Contractor to perform any alterations in or additions to the work provided for in this contract that may be ordered and memorialized in a change or work order executed by the Manager or his designee and to pay for the same under the terms of this contract and the attached specifications at the time and in the manner and upon the conditions provided for in this contract. 7. Promise to Perform The Contractor for himself, and for his heirs, executor, administrators, successors, and assigns, does hereby agree to the full performance of all the covenants herein contained upon the part of the Contractor. PURCHASE OF USED MECHANICAL SWEEPER WITH FRONT -MOUNTED BROOM, PAGE 3 OF 8 8. Compliance with Laws The Contractor shall comply with all Federal, State, and local laws and ordinances applicable to the work to be done under this Agreement. This Agreement shall be interpreted and construed in accord with the laws of the State of Washington and venue shall be in Jefferson County, Washington. 9. Indemnification The Contractor shall indemnify and hold the County, and its officers, employees, and agents harmless from and shall process and defend at its own expense, including all costs, attorney fees and expenses relating thereto, all claims, demands, or suits at law or equity arising in whole or in part, directly or indirectly, from the Contractor's negligence or breach of any of its obligations under this Agreement; provided that nothing herein shall require a Contractor to indemnify the County against and hold harmless the County from claims, demands or suits based solely upon the conduct of the County, its officers, employees and agents, and; provided further that if the claims or suits are caused by or result from the concurrent negligence of. (a) the Contractor's agents or employees; and, (b) the County, its officers, employees and agents, this indemnity provision with respect to claims or suits based upon such negligence, and/or the costs to the County of defending such claims and suits, etc., shall be valid and enforceable only to the extent of the Contractor's negligence, or the negligence of the Contractor's agents or employees. Claims against the County shall include, but not be limited to assertions that the use and transfer of any software, book, document, report, film, tape, or sound reproduction of material of any kind, delivered hereunder, constitutes an infringement of any copyright, patent, trademark, trade name, or otherwise results in an unfair trade practice or an unlawful restraint of competition. The Contractor specifically assumes potential liability for actions brought against the County by Contractor's employees, including all other persons engaged in the performance of any work or service required of the Contractor under this Agreement and, solely for the purpose of this indemnification and defense, the Contractor specifically waives any immunity under the state industrial insurance law, Title 51 R.C.W. The Contractor recognizes that this waiver was specifically entered into pursuant to provisions of R.C.W. 4.24.115 and was subject of mutual negotiation. 10. Contractor's Relationship to the County The Contractor's relation to the County shall be at all times as an independent Contractor, and nothing herein contained shall be construed to create a relationship of employer-employee or master -servant, and any and all employees of the Contractor or other persons engaged in the performance of any work or service required of the Contractor under this Agreement shall be considered employees of the Contractor only and any claims that may arise on behalf of or against said employees shall be the sole obligation and responsibility of the Contractor. I I .Assignment The Contractor shall not sublet or assign any of the services covered by this contract without the express written consent of the County or its authorized representative. Assignment does not include printing or other customary reimbursable expenses that may be provided in an agreement. No part of the goods, work, or services to be provided under this Contract may be subcontracted without the prior written consent of the Manager; but in no case will such consent relieve the Contractor from its obligations, or change the terms of the Contract. The Contractor must notify the Manager of the names of all Subcontractors to be used and shall not employ any that the Manager has not approved. Subcontracting of the services or work or any portion of the Contract without the prior written consent of the Manager is null and void. Further, the Contractor will not make any substitution of a previously approved Subcontractor without the prior written consent of the Manager; any substitution of a Subcontractor without the prior written consent of the Manager is null and void. The Contractor will only subcontract with competent and responsible Subcontractors. If, in the judgment of the Manager, any Subcontractor is careless, incompetent, violates safety or security rules, obstructs the progress of the services or work, acts contrary to instructions, acts improperly, is not responsible, is unfit, is incompetent, violates any laws applicable to this Contract, or fails to follow the requirements of this Contract, then the Contractor will, PURCHASE OF USED MECHANICAL SWEEPER WITH FRONT -MOUNTED BROOM, PAGE 4 OF 8 Department of Central Services O Consent Agenda Page 1 of 1 Jefferson County Board of Commissioners Agenda Request To: Board of Commissioners Philip Morley, County Administrator From: Matt Stewart, Manager, Fleet Services Division Agenda Date: April 25, 2016 Subject: Purchase of rental sweeper Statement of Issue: Award of contract for the discounted purchase of a sweeper that has been rented by the county for several months since a county -owned sweeper was lost to fire caused by hydraulic malfunction. Analysis/Strategic Goals/Pros Et Cons: The recommendation of the Fleet Services Manager is to consider this a sole -source purchase and to execute the attached contract for the purchase of the rental sweeper. No competitive bid or quote process can realistically be performed because this is an uncommonly available piece of equipment. No new sweeper of this type can be purchased in the immediate future: The manufacturer has been slow to implement measures to comply with more stringent EPA emissions restrictions and has stated through its dealer that it will be unable to build new sweepers of this type until sometime in 2017. Fiscal Impact/Cost Benefit Analysis: The purchase price of $29,162 is far below the $52,000 book value of the sweeper when we began renting it and below the $78,730 national -contract price of the most similar model that could be purchased at this time. The purchase is financially advantageous to continuing to rent this sweeper until a new one could be built. The sweeper in use now and proposed for purchase was revealed by an extensive search following the June 2015 fire to be the only one of its function and type available to rent in the state. Recommendation: Execute the attached contract. Department Contact: Matt Stewart, Manager of Fleet Services, 344-9713 Reed By: Philip Morle unty Ad� inistr for Date CONTRACT REVIEW FORM CONTRACT WITH: Modern Machinery Inc. (Contractor) CONTRACT FOR: Equipment purchase COUNTY DEPARTMENT: For More Information Contact: Contact Phone: ext 713 RETURN TO: Renee Central Services Matt Stewart TERM: RETURN BY: 3/31/16 AMOUNT: 29,162.00 PROCESS: Revenue: Expenditure: Matching Funds Required: Source(s) of Matching Funds: Step 1: REVIEW BY RISK MA G Review, by: 4 Date Reviewed: R APPROVED FORM Returned for revision (see comments) ents: Step 2: REVIEW BY PROSECUTING ATTORNEY Review by: 1L � Exempt from Bid Process Consultant Selection Process Cooperative Purchase Competitive Sealed Bid Small Works Roster Vendor List Bid Sole Source Date Reviewed: 2 -Cf, 119 APPROVED AS TO FORM Returned for revision (See comments) mm ts:� Step 3: DEPARTMENT MAKES REVISIONS Have contractor sign appropriate number of originals. Step 4: SUBMIT TO PROSECUTING ATTORNEY FOR FINAL SIGN OFF Step 5: SUBMIT TO BOCC FOR APPROVAL Submit original Contract and Agenda Request Form along with 6 copies of Contract and Review Form. Place "Sign Here" markers on all places the BOCC needs to sign. MUST be submitted to BOCC Office by 5 p.m. TUESDAY for the following Monday's agenda. (This form to stay with contract throughout the contract review process.) SON COG Department of Central Services IN ��sko Jefferson County, Washington P.O. Box 1200 Port Hadlock, WA 98339 Phone: (360) 385-0890 Fax_ (360) 385-3408 Date: April 20, 2016 To: File CC: Philip Morley, County Administrator From: --'� ..--�► Matt tewart, Manager, Fleet Services Subject: Justification for recommendation of sole -source purchase of rental broom The agenda request for a contract with Modern Machinery, Inc., recommends a sole -source purchase of a 2012 Rosco SweePro mechanical sweeper with front -mounted broom. The sweeper proposed for this purchase is the exact unit that Public Works has been renting and operating since July 9, 2015. The purchase from a sole source based on a single quotation is advisable for these reasons: This type of equipment, a mechanical sweeper broom without a debris -collection mechanism mounted on a custom equipment chassis, is prone to high operational costs and high downtime, yet it (as distinct from what are commonly known as "street sweepers," those larger, more expensive units that both sweep and collect debris from the roadway) is an essential piece of equipment in several Public Works efforts, including chip sealing, storm cleanup and general maintenance. The two sweepers in the fleet are used heavily and have traditionally been expensive and trouble -prone. The make and model used for the last several years proved itself to be by far the most reliable and least expensive option of the several used in recent history. The rental unit is of the same make but a different model and has shown itself to be as reliable as the previous one but without what we believe to be a flaw in its cooling system that exacerbated the severity of the fire. We believe our prudent choices to be (1) purchasing the model that has been used previously and retrofitting it with a fire -suppression system; (2) purchasing a new broom of the model that has been rented without retrofitting it; (3) purchasing the rental unit. The cost for option (1) right now is $78,730 per the national contract, and the fire - suppression system would add several thousand dollars to that cost. Option (2) is unavailable until sometime in 2017 because the manufacturer has not yet updated the model sufficiently to meet the standards required by EPA for its manufacture and sale. Option (3) provides a unique opportunity to purchase the sweeper we need now, thus discontinuing rental expenses, at the $29,162 listed in the recommended contract. 2. We wish to purchase the exact unit that has been rented for these months to recover a portion of the funds expended. With a rental period ending March 21, 2016, per the proposed contract, the unit will have been rented for approximately 8.5 months. At a rate of at $4414.50 per month (tax included), rental costs totaled $37,523.25. That represents a significant payment of accumulated depreciation of the rental unit. The dealership that furnished the rental has taken that significant amount into consideration in offering an appropriately reduced purchase price for the rental unit. Purchasing this exact unit, therefore, represents our best opportunity to recover much of the funding expended on the rental. That alone would be insufficient to justify a sole -source purchase, because the rental itself was sole -source. However, our records show Fleet's concerted effort to rent multiple sweepers from every source to fill the need of our customer after an in -use fire destroyed one of ours. That included contacting every known rental and equipment outlet, taking delivery of every sweeper in the region (one was transported from the Spokane area, others were found more locally). At one point, at least, we had two overlapping rentals in use, per the request of Public Works, but were in the end only able to find one suitable for their operation. The rental search lasted approximately a month, with the first possible rental located on June 1 st and the eventual rental found on June 25I'. Each of the rental sweepers was returned with serious mechanical or safety problems except the one that is the subject of this memo. Again, these reasons would be insufficient themselves to justify a sole -source purchase, because it is the length of the rental period that increased the amount invested in it to the point at which the purchase of the rental unit would be advisable. As to the length of the rental, Fleet staff had little choice. While a replacement identical to the one that burned was available for immediate order on a national, public contract, it would not have been prudent to do so. We worked with the manufacturer for months to attempt to ascertain the cause of the fire and, somewhat separately, the cause of the fire's dangerously quick spread. We could not order a replacement that had not been redesigned to eliminate what we believe to be flaws that caused the fire and hastened its spread. However, prior to the fire, the make and model of sweeper that burned had proven itself to be by far the most reliable and least expensive option of the several used in recent history. We had to continue to rent the only available, sufficiently functional broom until we were able to move ahead with a prudent purchase.