HomeMy WebLinkAboutPR 15290: G&K SERVICES - RENTAL SERVICESMemorandum
City of Port Arthur, Texas
Purchasing Division
TO: Stephen Fitzgibbons, City Manager
FROM: Tom Kestranek, Transit Manager ~ ~'
DATE: July 22, 2009
SUBJECT: Proposed Resolution No. 15290
RECOMMENDATION
The Transit Department recommends City Council to authorize the City Manager to enter into a
three (3) year service agreement with G & K Services of Houston, Texas through BuyBoard for the
rental services of uniforms, place mats, and various maintenance services for an estimated amount
of $31,024.68 (which includes a one time charge of $990.00 for the embroidery of the "PAT" logo
on the uniform shirts).
BACKGROUND
The Transit Department employees are in need of new uniforms. It is more cost effective to rent
the service from G & K Services because there is no additional cost to replace damaged or wom
uniforms. G & K Services of Houston's service agreement costs aze estimated as follows:
FstimatPd f nct Fm}.rn:do..., !'....• r_a:~_a_~ m_._L ~
Year One (1)
$10,011.56 L
$990.00 JLLL~L6LGU lUlAl 1CQII ~.V~
$11,001.56
Year Two (2) $10,011.56 $0 $10,011.56
Year Three (3) $10,011.56 $0 $10,011.56
Estimated Total Cost $31,024.68
BUDGETARY AND FISCAL EFFECT
Funds will be allocated from Accounts #401-1501-561.26-00, 401-1502-561.26-00, and 401-1505-
561.26-00.
STAFFING EFFECT
None
SUMMARY
The Transit Department recommends City Council to authorize the City of Port Arthur to enter
into a three (3) year service agreement with G & K Services of Houston, Texas through BuyBoard
for the rental services of uniforms, place mats, and various maintenance services for an estimated
total of $31,024.68 (which includes a one time charge of $990.00 for the embroidery of the "PAT"
logo on the uniform shirts).
PR 15290
P. R. N0.15290
07/22/09 DF
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A THREE (3) YEAR RENTAL SERVICE
AGREEMENT THROUGH BUYBOARD WITH G & K SERVICES
OF HOUSTON, TEXAS FOR UNIFORMS, PLACE MATS, AND
VARIOUS MAINTENANCE SERVICES FOR AN ESTIMATED
A1IIOUNT OF $31,024.68.
WHEREAS, the Transit Department is recommending City Council authorize the City
Manager to enter into a three (3) year rental service agreement for the rental of uniforms, place
mats, and various maintenance services through BuyBoazd with G & K Services of Houston,
Texas; and
WHEREAS, the estimated cost of the rental services for three (3) years is $31,024.68; and
WHEREAS, yeaz one's (1) estimate is $10,011.56 plus a one time cost of $990.00 for the
embroidery of the "PAT" logo on the uniform shirts for a total of $11,001.56, yeaz two's (2)
estimate is in the amount of $10,011.56 and yeaz three's (3) estimate is in the amount of
$10,011.56; and
WHEREAS, it is more cost effective to rent the service because there is no additional cost
to replace damaged or worn uniforms; and
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1. That, the facts and opinions in the preamble aze true and correct.
Section 2. That, the City Council hereby authorizes the City Manager to enter into a
three (3) year rental service contract through BuyBoazd with G & K Services of Houston, Texas in
the amount of $31,024.68 in substantially the same form as attached hereto as Exhibit "A".
PR 15290
Section 3. That, a copy of the caption of this Resolution be spread upon the Minutes of
the City Council.
READ, ADOPTED, AND APPROVED, this day of July
2009, A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the
following Vote:
AYES: Mayor:
Council members:
NOES:
Mayor
PR 15290
ATTEST:
Terri Hanks, City Secretary
A\PP~ROVED AS TO FORM:
MarkSokolow,~- yAttomey ~,~ ~~~,~~ ~J~
APPROVED FOR ADMINISTRATION:
Steve Fitzgibbons, City Manager
PR 15290
APPROVED AS TO FUND AVAILABILITY:
"EXHIBIT A"
PR 15290
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GLR ;EII`1CE5
G&K Services
BdOd Lmvndale Ave.
Houston, TX 770'12
G&K SERVICES (G&K) ADDENDUM
TO SERVICE AGREEMENT s¢axce>o¢~H¢nrnu~m¢a
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MPAfJV NAM (us:omeQ '-"'~°"'
Port Arthur Transit
AD
111 Fort Worth Street
Port Arthur, Texas 77642
Pfpn¢ Number
409-983-8767
Customer and G8K agree That Merchandise/Service Items listed above shall be governed b
the
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Service Agreement hetween Customer antl GBK, which provisions are incorporatetl by reference i
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Addendum.
CUSTOMER AUTNORIZATION GdK SERVICES AUTHORIZATION
Port Arthur Transit Authori[ ~~ - = I c I
PRINTED NAlAE
PRINTED NAME
TITLE
TITLE Ramona L Cavazos District sales Manager
GBK MGMT SIGNATURE MGMT ACCEPTANCE GATE
SERVICE AGREEMENT DATE G&K MGMi PRINTED NAME TITLE
8n GBK ORifwnl rnw
i
C^J -'a AGREEMENT FOR SUPPLY OF G8K SERVICES
FOR
cer s[ev¢ss BUY 60ARD MEMBER Port Arthur Transit Authority
This Agreement, including the terms below, on the reverse, and on any attached written addenda antl any added verbally as described below, all of which are inwrperaled by
this reference, ("agreement") is enleretl into between Customer and G8K Services ("G8K"), as of the Effective Daf?. Customer and Effective Date are identified below.
1. G8K Agrees W'th Custom
• To provide services ("Services') and merchandise ("Merchandise") listed on any attached Addenda, or added verbally or in a separate writing by Customer.
• To provide G8K Service Guarantees'
o G&K will deliver all Merchandise to Customer, picked-up by G8K on a regularly scheduled delivery day, by the next scheduled delivery day;
o G8K will clean all Merchandise using high standards ir, laundering methods;
o G8K will inspect, repair and deliver to Customer, on the next scheduled delivery day, all Merchandise needing repair that can reasonably be repaired;
o G8K will tleliver to Customer all Merchandise in a clean and useable condition on the nex; scheduled delivery day;
o G8K will tleliver to Customer, on the next regularly scheduled delivery day, replacement or additional uniforms ordered of a similar size and color as
those in service at Customer, provided G8K receives the order on a regular delivery day;
o G8K will replace wornout Merchandise on the next regularly scheduled delivery day with Merchandise meeting G8K's high quality standards, al no
• additional charge to Customer except for Merchandise damaged or lost and except for charges for preparation, nametags or emblems, and embroitlery,
To issue a credit to Customer's account equal to the weekly charge for the item of Merchandise affected, to the extent G8K Service Guarantees are unmet.
• To review with Customer its account for Services and Merchandise as needed or upon request.
• To remain committed to meeting or exceeding Customer's needs, and to respond to any Customer service request or concern within 48 business hours after receipt
by a G&K representative.
If G8K materially fails ;o provide Services or Merchandise required under this Agreement, Customer will deliver written details of the failure to the G8K office serving
Customer, and G8K then has 60 days to coned it. The failure will be considered wrreded unless within 10 days after this sixty4ay period Customer delivers to the G8K
facility serving Customer a second written notice showing the failure is continuing. If Ihis Agreement then is cancelletl, Customer will pay G8K all amounts then due, return all
rental items to G8K in good and usable condition, and pay the replacement value for all lost, damaged and/or unretumed rental items.
2. Customer Agrees W'th G8K'
• Customer has no commitment to any other Company for Services or Merchandise described in or Dlherwise wvered under Ihis Agreement, the intlividual signing for
Customer is authorized to enter into this Agreement on Customefs behalf, and this Agreement, when signed on behalf of Customer will constitute a legal binding
obligation of Customer, enforceable against Customer;
• To order from G8K all its requirements for the type of Merchandise and Services coveretl under this Agreement during the time this Agreement is in effect;
• To pay the fees for all Merchandise and Services supplied by G8K under Ihis Agreement, based on 52 weeks per year of service, as follows:
o In wsh on the regular delivery day or, if G8K has approved credit for Customer, within 10 days after the date of each invoice delivered; provided that G8K
may, at any time, convert any account to a cash on delivery hosts;
a Annual increases in prices as invoiced by G8K for Merchandise and Services a[ the rate of 2 % each June 1"
o All charges shown on G8K invoices for additional items, such as additional ortlers fpr Merchandise and Service, charges for any embroidery, seasonal
changeovers, exchanges, outs¢es, automatic replacement, Image Guard program, special services programs, replacement values for Merchandise lost or
damaged (ordinary wear antl tear excepted) while in possession of Customer.
o At any time while Ihis Agreement is in effect, a minimum of 75% of the average weekly fees invoiced by G8K to Customer during (a) the first 8 week period
under Ihis Agreement, or (b) any lesser period from commencement of this Agreement if Customer has not yet had 8 weeks of weekly invoices;
o A monthly service charge on all past due amounts equal to the lesser of 18 % per annum or the highest rate permitted bylaw; and
o G8K's then current replacement values for all emhroidered or permanently embellished, non-standard and/or unrelurned Merchandise provided to Customer
by G8K under this Agreement at the lime this Agreement expires or is terminated for any reason.
• Talhotlens, exce a avs ace of service of anything that may pose a health or environmental hazard, as for example Merchandise containing lead or blood borne
P 9 pt pproved in atlvance by G8K in writing;
• To he responsible for and hold G8K harmless From any claim arising From use of the Merchandise by Customer, and
• To take whatever steps are necessary to assign this Agreement to any successor to Customer if Customer or Customer's business, assets or capital stock is sold or
taken aver by another pony, and to notify G8K in writing o(any assignment.
3. Term: Renewal' Earl T fo
• Thls Agreement lakes effect as of the Effective Date and continues for the term of 36 months ('Initial Term') from the later of (a) the Effective Date or (b) the date G8K
firs) delivers Merchandise to Customer, and then renews automatically antl wntinuously for successive periods of 12 months each ("Renewal Term ),unless either
party gives the other pady written notice of non-renewal at least 90 days, but no more than 180 days, prior to expiration of the Initial Tem or any Renewal Term.
Notwithstanding the foregoing, each Customer that signs a local service agreement with G&K will be subject to the minimum lertn of service in the applicable service
agreement, which may be no shorter Than thirty-six (36) months subject to the non-appropriations clause as outlined in the proposal instrucGOns.
TERMS AND CONDITIONS ON THE REVERSE SIDE OF THIS AGREEMENT, AND IN ANY ATTACHED ADDENDA, ARE A PART OF THIS AGREEMENT.
THIS AGREEMENT IS NOT BINDING ON G&K UNTIL SIGNED BY G8K MANAGEMENT BELOW.
Customer Name Port Arthur Transit Authority G&K SERVICES
Address _111 Fort Worth Street Port Arthur, TX 77642 Sales Signature
Accepted By
Printed Name and Title
Name and Title (printed)
Management Signature
Effective Date Pnntetl Name and Title
A. EARLY TERMINATION.
Customer may terminate ;his Agreement for his own convenience at any time, provided that Customer must give written notice to G&K at leas) 90 days, but no more than 180
days, prior to the efectve date of termination stated by Customer in the notice, complies with the requirements of Paragraph E below, and pays an Early Termination Fee.
The Early Termination Fee is intended 1o provide to G8K a return on its investment in Customer s image program and shall be calculated, as follows: multiply the number of
weeks remaining in the Initial Term or Renewal Term, as the case may be, following the dale of termination by either (a) an amount equal to 50% of the average weekly
amounts invoiced by G8K to Customer tludng the 8 weeks preceding the date of Customer s notice of termination, or (b) if Customer terminates this Agreement before
Customer has 8 weeks of average weekly invoices, by an amount equal 1o 50 % of average weekly invoices far any lesser period of time. In the event Customer fails in any of
its commitments under this Agreement, G8K may suspend its performance or Ierminale this Agreement within 30 days after the date G&K provides notice to Customer of the
failure, in which case Customer will meet each of the conditions described in this paragraph, including paying G&K the Early Termination Fee.
8. CUSTOMER ACKNOWLEDGES THAT G&K HAS INVESTED IN MERCHANDISE AND PERSGNNEL IN RELIANCE ON THIS AGREEMENT, THAT G&K IS ENTITLED
TO .4 RETURN ON THIS INVESTMENT, AND THAT THE PAYMENT OF FEES AND CHARGES, INCLUDING THE EARLY TERMRJATION FEE, REPRESENT THIS
RETURN ON INVESTMEN f OVER THE TERM OF THIS AGREEMENT.
C. All rental Merchandise supplied ;o Customer under this Agreement remains the property solety of G&K.
U. G&K MAKES NO WARRANTIES, INCLUDING, BUT NOT LIMITED TO, MERCHANTABILITY OR FITNESS FOF A PARTICULAR PURPOSE, REGARDING THE
PoiERCHANDISE OR THE SERVICES SUPPLIED UNDER THIS AGREEMENT OTHER THAN THOSE SPECIFICALLY DESCRIEED IN THIS AGREEMENT. Ct1STGMER
ACCEPTS SOLE RESPONSIBILITY FOR SELECTING THE TYPE AND Ah1OUNT OF PERCHANDISE APPROPRIATE FOR CUSTOMER AND ACKNOWLEDGES THE
MERCHANDISE SUPPLIED UNDER THIS AGREEMENT IS SUPPLIED FOR GENERAL PURPOSES, UNLESS SPECIFICALLY IDENTIFIED AS "FIRE RETARDANT",
'FLAME RESISTANT" OR FOR OTHER SPEICAL PURPOSE. GdK MAY NOT BE THE MANUFACUTRER OF THE MERCHANDISE AND HAS NOT M1fADE AND DOES
IJOT MAKE ANY REPRESENTATION, WARRANTY OR CONVENANT, EXPRESS OR Vv1PLIED, REGARDING THE QUALITY, SAFETY OR SUITABILITY OF THIS
Iv1ERCHANDISE FOR USE BY CUSTOMER.
E. As of the effective date of any termination, expiration or cancellation of this Agreement for any reason, Customer will return to G&K all Merchandise in good and usable
condition or pay G&K's replacement valu=for any Merchandise not returned or that is returned in damaged condition, will purchase at G&K's then replacement value all
embroidered, permanently embellished, non-standard or special order Merchandise, and will pay to G&K all amounts owed to that date under This Agreement, including,
v+ithoul limitalioq all accounts receivable, replacement value for all lost or damaged Merchandise, plus, rf applicable, the Early Termination Fee.
F. Any claim or dispute between the pades, arising from, or relating to, [his Agreement will be governed by Minnesota law, without regard to its conflicts of law provisions.
Any claim or dispute must be resolved only as provided in this Section. Prior to filing any legal proceeding in any wort, the parties will first attempt in good faith 1o promptly
resolve the claim or dispute, including 6y negotiation at agreed time(s) and location(s). All negotiations are conTdential and will be Ueated as setllemenf negotiations. If the
parties are unable to resolve the dispute through negotiation, then G8K may elect to require a mediation of the dispute through a neutral party under rules of an established
mediation center. Each provision o(Ihis paragraph is enforceable 6y any court having jurisdiction over the padies, and either party may seek injunctive relief far Ihis purpose.
Customer will reimburse G8K for all vests, indutlino altomeys' fees, incurred by G8K to enforce the commitments of Customer under this Agreement and this paragraph.
G. Any interruption of G8K's usual operations, or delay or termination of service provided in this Agreement, by reason of acts of God, Tres, explosions, strikes, or other
industrial disturbances, or any rouse beyond the reasonable control of GdK, will not 6e considered a failure or a liability under this Agreement.
H. THE REMEDIES FOR CUSTOMER DESCRIBED IN THIS AGREEMENT ARE THE SOLE REMEDIES FOR G&K'S BREACH OF ITS OBLIGATIONS UNDER THIS
AGREEMENT AND, IN ANY EVENT, GSK'S LIABILITY FOR BREACH OF THIS AGREEMENT SHALL NOT EXCEED THE PRICE OF FEE PAID FOR AN ITEM OF
MERCHANDISE THAT FAILS TO COMPLY WITH G8K'S GUARANTEE. G&K IS NOT LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL (INCLUDING, WITHOUT
LItfITATION, LOST WAGES. REVENUE, PROFIT, OPPORTUNITY, DATA OR LOSS OF USE), EXEMPLARY OR PUNITIVE DAMAGES.
I. If any provision of this Agreement is determined by a couA of competent jurisdiction to be invalid, the remaining terms and conditions will remain in full Force and eNecl.
This Agreement constitutes the entire agreement and supersedes all prior oral or written agreements between the padies regarding the mailers covered by this Agreement.
No waivers or statements made by any representative of G&K will be valid unless included in writing in this Agreement. No amendments [e Ihis Agreement will be binding
unless In writing signed by represen[aWes of bath padies having the apparent authority to do so or as otherwise indicated in Ihis Agreement.
J. All notices permitted or required under this Agreement must be in writing and transmitted by personal delivery, a nationally recognized ovemighl courier service, certified or
registered mail, returned receiDl requested, or facsimile (with confirmation). Notices shall be sent to the addresses specified on the fast page of Ihis Agreement or to such
other address as either pally may specify in writing.
Page 3 ,
Bid No. 264-07 G-
~ Rental Agreement term, 36 months. On June 15` of each year, prices will be increased by 2%.
~ All garments will have the steam tunnel finish, with the exception of the Executive Shirts &
Executive Pants, they are pressed.
~ Shirts are available in Fong or short sleeves (unless noted), both at the same price.
d Customers can choose to have any or all garments pressed, there will be an additional cost of
$0.25 per garment.
~1 There will be a design fee to create a Direct Embroidery logo.
~ Direct embroidery per garment = $6.00
~ There will be a Buy Back charge for all garments with Direct Embroidery and there will be a
Buy Back on Executive Shirts & Knit Shirts with emblems, at the current garment replacement
cost.
~l Minimum Stop $35.00
~ No charge for Prep, Emblems, or name tags.
d No charge for Environmental, waste water or energy charge (additional service charge)
til 10% up charge on Oversized garments:
Shirts
Size 2XL to 5XL
(Shirts 6XL and over will have an up charge of 35%)
Sleeve length 36 & over
Long tails
Pants
Men's waist size 44 to 58
Men's lengths 36 and above
(Pants with a waist size of 60 & over will have an up charge of 35%)
Ladies size 22 to 32
(Ladies Pants from 32 and over will have an up charge of 35%)
Customer Acceptance Signature:
Date:
Updated January 37, 2008