HomeMy WebLinkAboutReso 1983-11322
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RESOLUTION NO.
11322
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUL^
VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHUU\
VISTA AND MAINSTEM, INC. FOR AN EQUIPMENT MAINTENANCE
MANAGE!1ENT SYSTEM SERVICE
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AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
,
The City Council of the City of Chula Vista does: hereby
resolve as follows:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista that that certain agreement between TJ:iE CITY
OF CHULA VISTA, a municipal corporation, and MAINSTEM, INC. for
an equipment maintenance management system service i
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dated' the 19th day of July , 1983, a copy of which i,,;
attached hereto and incorporated herein, the same as thougl~ full y
set forth herein be, and the same is hereby approved.
BE IT FURTHER RESOLVED that the ~layor of the Ci ty of
Chula vista be, and he is hereby authorized and directed :to
execute said agreement for and on behalf of the City of Chu12
vista.
Approved as to form by
flt? :
~~..J~.~
omas J. Harron, Acting
City Attorney !
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 19th day of July
19 83 , by the following vote, to-wit:
AYES: Councilmen McCand1iss, Malcolm, Cox, Moore
. None
NAYES: Councilmen
ABSTAIN: Councilmen None
ABSENT: Councilmen Scott
ATTEST
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STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
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) 55.
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/, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
)0 HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 11322
,and that the same has not been amended or repealed.
!
)ATED
City Clerk
(seal)
CC-660
MAlNSTEM
201 College'Rood East
Post Office Box 2
Princeton. New Jersey 08540
ADDENDUM TO
EQUIPMENT MAINTENANCE MANAGEMENT SYSTEM SERVICES AGREEMENT
BETWEEN MAINSTEM CORPORATION AND
CITY OF CHULA VISTA
ORIGINAL CONTRACT DATE:
August, 1971
1. The term of this Agreement shall be from July 1, 1983 through
June 30, 1984 and priced in accordance with option ~ below:'
Pricing Options and Minimum Monthly Charges are:
A. Month to month term from date of first full month of processing - $ 1,114
per month.
B. One (1) year term from date of first full month of processing r- Discounted
price at 9%: $1,014 per month.
C. Two (2) year term from date of first full month of processingj- Discounted
price at 12%: $ 980 per month.
D. Three (3) year term from date of first full month of processing - Discounted
at 15%: $ 946 per month.
2. Basis for Monthly Fees:
A. A Service Fee shall be invoiced and payable at the commencement of
,
each Reporting Period, as determined by the term plan selected by the
CLIENT.
B. The Service Fee is based upon the following CLIENT parameters:
1. CLIENT'S Equipment Inventory is composed of 312 Powered Vehicles
and 12 Non-Powered Vehicles.
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2. CLIENT'S Maintenance Operation is composed of 1 Maintenance
Facilities and 0 Commerical Facilities.
3.
CLIENT requires
Oil Imprinters.
1 Repair Order Imprinters and 2 Fuel and Add-
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R-11322
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R-113^A
C. Expansion of CLIENT'S operation during,the term of the Agreement
shall be reflected by adjustments in and supplemental billing of the
fees for any period in which the parameters above are excee:ded, at
the following rates:
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1. Additional vehicles added to Equipment Inventory:
Powered: $3.00 per vehicle, per month,
Non-Powered: $0.50 per vehicle, per month.
2. Data submitted on vehicles not included in CLIENT'S Equipment
Inventory shall be invoiced at the rate of $0.50 per vehicle, per
month.
3. Additional Facilities:
$50.00 per major facility, per month,
$10.00 per minor, commercial or fueling facility.
4. Additional Imprinters:
Repair Orders: $10.00 per imprinter, per month,
Fuel and Add-Oil: $10.00 per imprinter, per month.
3. For clients selecting Options LB. through 1.D. above, the following three provisions
apply:
A. After the first year of the agreement, Mainstem may increase prices
by an amount not to exceed the percentage increase of the "Official
Consumer Price Index U.S. Average, All Items" published by the Bureau
of Labor Statistics, U.S. Department of Labor (1967). The starting CPI
shall be the CPI National Average Schedule W for the month immediately
prior to the date of this Agreement. In the event the Bureau of Labor
Statistics should cease to publish the aforesaid index in its present form
and calculated on the present basis, a similar index or an index reflecting
similar changes in the cost of living shall be chosen by agreement of the
parties.
B. Following the first year of this agreement, the CLIENT may elect to
terminate this Agreement prior to the completion of the agreed upon
term. In this event, the CLIENT shall pay MAINSTEM the lesser of:
(i) The remaining Monthly Fee Charges, adjusted for the actual Cost
of Living Index Increases times the number of remaining months,
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and '
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(ii) All prior service billing shall be recalculated to reflect pricing
as though the CLIENT had originally contracted for the shortened
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term and lower discount. The additional amount due IV1AINSTEM
will also reflect a 1.5% per month finance charge for having paid
lower amounts over the actual contract term.
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C. At the completion of the agreed upon term, all contracts will autolT)aticaliy
renew for one (1) year unless cancelled by either party in writing 90
days prior to the date of expiration. This. automatic renewal applies
on each succeeding anniversary date.
4. CLIENT'S Calendar Year consists of 12 "Monthly" Reporting Periods with the
First Reporting Period applicable to this agreement being period O~, July,
1983. '
5. CLIENT shall receive periodic Fleet Advisory visits.
If there are any conflicts between this agreement and the original ~ontract,
this agreement will survive.
IN WITNESS WHEREOF, the parties hereto have d~y executed this Agreement
on this 19th day of July , 1983.
Accepted by:
MAINSTEM CORPORATION
Signa ture
James M. Pettit
Name
Vice President, Finance
Title
rOo
R. Cox
Name
Mayor of the City of Chula Vista
Title . I
R- 117:L 1-
MAlNSTEM
201 COllege I<ood Easi,P~s1 Office Box 2. Princeton. New Jersey 08540 (609) 452-1300
. : A PHH GROUP COMPANY ~
June 3, 1983
Mr. John Alden
City of Chula Vista
Equipment Maintenance Supervisor
276 Fourth Avenue
Chula Vista, CA 12010
Dear Mr. Alden:
Enclosed are two (2) continuation agreements between City of Chula Vista
and Mainstem Corporation. Please sign and return both copies of the agre'ement
to me. We will return an accepted copy for your files. :
We ask you to study the agreement carefully, since it allows you an opportunity
to save a portion of your cost by committing to use our service over a fix~d periOd
or time. You can reduce your cost for Fleetscan 1 by up to 15% in exchange for
a Iring-term contract with Mainstem. ' ,
Please note two other items. In addition to long-term price reduction, our new
agreement provides additional protections and flexibility for you: ;
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If you extend your contract for one year or more, i
(1) . . . f I
Mamstem guarantees not to raIse prices or twelve months. At
that time the price increase percentage will be no more than the
percentage increase in the Consumer Price Index during the previous
twelve months.
(2)
If you desire to terminate the contract prior to the stated corri-
pletion date, you can do so by paying a defined termination charge.
In the event of an early termination, the contract will be repriced
based on the shortened term (and the then appropriate discount) and
you pay the difference between the current contracted rate and the
recalculated rate, plus a finance charge on any difference of 11.5%.
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As a governmental client who is restricted from committing funds iri succeeding
budget years, we wish to offer you an opportunity for the term benefits under the
condition "subject to the availability of funds." Our governmental clients:will be
allowed to take the two year agreement and will not incur any contract termination
fee if the budget for any computerized fleet maintenance cannot be approved.
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We at Mainstem value your business and look forward to continuing ~o provide
you with the best service possible. If you have any questions regarding this matter,
please feel free to contact me or your fleet advisor. Should you decide t~ continue
with Option LA. from the Addendum, no notification to Mainstem is required and you
will be billed in accordance with the amount noted under Option LA. beginning in
July, 1983. i
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illiam C. Dunham i
Vice President, Marketing
WCD:sj
Encl.
cc: H. Krock
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