HomeMy WebLinkAboutPR 16060: UNIFORM RENTAL SERVICE AGREEMENT FOR UTILITY OPERATIONS {
MEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO: Stephen Fitzgibbons, City Manager
FROM: Kelly Eldridge, Director of Utility Operations //
DATE: August 24, 2010
SUBJECT: Proposed Resolution No. 16060
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No. 16060, which authorizes the
execution of a three (3) year rental service agreement through BuyBoard with G &K Services of
Houston, Texas for the rental of employee uniform shirts.
BACKGROUND
Over a decade ago, the Utility Operations Department began providing uniforms with name tags and
City emblems to its employees. This effort improved our image, promoted teamwork, provided
protection, improved security, and increased identification and recognition of employees when out in
public. For years, we have simply purchased uniforms and issued them to employees. A few years
ago, we began renting uniforms for our WWTP employees, as a uniform service can provide better
laundering and replace any worn or damaged uniforms. It has worked out very well, even reduced
costs, and we want to extend this type service to other divisions.
BUDGET/FISCAL EFFECT
The Wastewater Conveyance division currently budgets $2,500 /year, with their portion of the cost
actually being just under $2,000 /year. The Water Administration division (mechanical crew)
currently budgets $1,000 /year, with their portion of the cost actually being about $800 /year. The
three (3) year total estimated cost for this service is within our current budget at $8,447.40
($2,815.80 /year). Account nos. 410 - 1251 - 532.26 -00 ($2457) and 410 - 1255 - 532.26 -00 ($5990.40)
STAFF/EMPLOYEE EFFECT
No change.
SUMMARY
Approval of Proposed Resolution No. 16060 is recommended.
P.R. No. 16060
08/24/10
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A THREE YEAR RENTAL SERVICE
AGREEMENT THROUGH BUYBOARD WITH G & K
SERVICES OF HOUSTON, TEXAS FOR AN ESTIMATED
AMOUNT OF $8,447.40. ACCOUNT NOS. 410 -1251- 532.26 -00
& 410- 1255 - 532.26 -00.
WHEREAS, the Utility Operations Department recommends the City Council authorize the
City Manager to enter into a three (3) year rental service agreement for the rental of uniforms through
BuyBoard with G & K Services of Houston, Texas; and,
WHEREAS, the estimated cost of the employee uniform rental services for three (3) years
totals $8,447.40; and,
WHEREAS, it is more cost effective to rent the service because there is no additional cost to
replace damaged or worn uniforms; 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 are true and correct; and,
Section 2. That City Manager of the City of Port Arthur is hereby authorized to execute a
three (3) year rental service agreement on behalf of the City of Port Arthur for employee uniform
rental services through BuyBoard with G & K Services of Houston, Texas in the three (3) year
estimated amount of $8,447.40 (attached as Exhibit A).
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 , 2010 at a
P.R. No. 16060
08/24/10
Page 2
Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor
Councilmembers:
•
NOES:
Deloris Prince
Mayor
ATTEST: APPROVED AS TO FORM:
Terri Hanks Valecia Tizeno
City Secretary City Attorney
APPROVED FOR ADMINISTRATION: APPROVED FOR AVAILABILITY OF
FUNDS:
n �
Stephen Fitzgibbons Deborah Echols
City Manager Director of Finance
4
' oss Blac etter, PE Kelly Flldri
Director of Public Works Director of Utility Operations
EXHIBIT A
AGREEMENT FOR SUPPLY OF G &K SERVICES
FO
G&K SERVICES BUY BOARD MEMBER 6111 o r o4-r Ap L 2_ Lt i U T p 2 —A V 3
cc;ti'v
This Agreement, including the terms below, on the reverse, and on any attached written addenda and any added verbally as described below, all of which are incorporated by
this reference, ( "Agreement ") is entered into between Customer and G &K Services ( "G &K "), as of the Effective Date. Customer and Effective Date are identified below.
1. G &K Agrees With Customer:
• To provide services ( "Services ") and merchandise ( "Merchandise ") listed on any attached Addenda, or added verbally or in a separate writing by Customer.
• To provide G &K Service Guarantees:
o G &K will deliver all Merchandise to Customer, picked -up by G &K on a regularly scheduled delivery day, by the next scheduled delivery day;
o G &K will clean all Merchandise using high standards in laundering methods;
o G &K will inspect, repair and deliver to Customer, on the next scheduled delivery day, all Merchandise needing repair that can reasonably be repaired;
o G &K will deliver to Customer all Merchandise in a clean and useable condition on the next scheduled delivery day;
o G &K will deliver 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 G &K receives the order on a regular delivery day;
o G &K will replace worn -out Merchandise on the next regularly scheduled delivery day with Merchandise meeting G &K's high quality standards, at no
additional charge to Customer except for Merchandise damaged or lost and except for charges for preparation, nametags or emblems, and embroidery;
• To issue a credit to Customer's account equal to the weekly charge for the item of Merchandise affected, to the extent G &K 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 G &K materially fails to provide Services or Merchandise required under this Agreement, Customer will deliver written details of the failure to the G &K office serving
Customer, and G &K then has 60 days to correct it. The failure will be considered corrected unless within 10 days after this sixty -day period Customer delivers to the G &K
facility serving Customer a second written notice showing the failure is continuing. If this Agreement then is cancelled, Customer will pay G &K all amounts then due, return all
rental items to G &K in good and usable condition, and pay the replacement value for all lost, damaged and /or unreturned rental items.
2. Customer Agrees With G &K:
• Customer has no commitment to any other company for Services or Merchandise described in or otherwise covered under this Agreement, the individual signing for
Customer is authorized to enter into this Agreement on Customer's behalf, and this Agreement, when signed on behalf of Customer will constitute a legal binding
obligation of Customer, enforceable against Customer;
• To order from G &K all its requirements for the type of Merchandise and Services covered under this Agreement during the time this Agreement is in effect;
• To pay the fees for all Merchandise and Services supplied by G &K under this Agreement, based on 52 weeks per year of service, as follows:
o In cash on the regular delivery day or, if G &K has approved credit for Customer, within 10 days after the date of each invoice delivered; provided that G &K
may, at any time, convert any account to a cash on delivery basis;
o Annual increases in prices as invoiced by G &K for Merchandise and Services at the rate of 2% each June 1'`
o All charges shown on G &K invoices for additional items, such as additional orders for Merchandise and Service, charges for any embroidery, seasonal
changeovers, exchanges, outsizes, automatic replacement, Image Guard program, special services programs, replacement values for Merchandise lost or
damaged (ordinary wear and tear excepted) while in possession of Customer.
o At any time while this Agreement is in effect, a minimum of 75% of the average weekly fees invoiced by G &K to Customer during (a) the first 8 week period
under this 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 by law; and
o G &K's then current replacement values for all embroidered or permanently embellished, non-standard and /or unreturned Merchandise provided to Customer
by G &K under this Agreement at the time this Agreement expires or is terminated for any reason.
• To notify G &K in advance of service of anything that may pose a health or environmental hazard, as for example Merchandise containing lead or blood borne
pathogens, except as approved in advance by G &K in writing;
• To be responsible for and hold G &K 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 over by another party, and to notify G &K in writing of any assignment.
3. Term: Renewal: Early Termination.
• This Agreement takes 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 G &K
first delivers Merchandise to Customer, and then renews automatically and continuously for successive periods of 12 months each ( "Renewal Term "), unless either
party gives the other party written notice of non - renewal at least 90 days, but no more than 180 days, prior to expiration of the Initial Term or any Renewal Term.
Notwithstanding the foregoing, each Customer that signs a local service agreement with G &K will be subject to the minimum term 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 instructions.
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 G &K MANAGEMENT BELOW.
Customer N ��t� EE •
j am41( 1 t" 1 L p f t ' /' `F--rtAu k ('�'� G &K SERVICES 1 • ' / / /
(
Address I I ( r1 l.) Iv `, �J T�-� Sales Signature '°. t j it4 ,f' .. 1. l,(0 ,
Accepted ByK Printed Name and Title! 11)(11 7 r V l 1/ 1(.1
Name and Title (printed) Management Signature
Printed Name and Title
Effective Date , 200 Route , Day Customer Number:
Enhancing Image & Safety through Innovation
A. EARLY TERMINATION.
Customer may terminate this Agreement for his own convenience at any time, provided that Customer must give written notice to G &K at least 90 days, but no more than 180
days, prior to the effective 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 to provide to G &K 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 date of termination by either (a) an amount equal to 50% of the average weekly
amounts invoiced by G &K to Customer during 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 to 50% of average weekly invoices for any lesser period of time. In the event Customer fails in any of
its commitments under this Agreement, G &K may suspend its performance or terminate 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.
B. CUSTOMER ACKNOWLEDGES THAT G &K HAS INVESTED IN MERCHANDISE AND PERSONNEL IN RELIANCE ON THIS AGREEMENT, THAT G &K IS ENTITLED
TO A RETURN ON THIS INVESTMENT, AND THAT THE PAYMENT OF FEES AND CHARGES, INCLUDING THE EARLY TERMINATION FEE, REPRESENT THIS
RETURN ON INVESTMENT OVER THE TERM OF THIS AGREEMENT.
C. All rental Merchandise supplied to Customer under this Agreement remains the property solely of G &K.
D. G &K MAKES NO WARRANTIES, INCLUDING, BUT NOT LIMITED TO, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE
MERCHANDISE OR THE SERVICES SUPPLIED UNDER THIS AGREEMENT OTHER THAN THOSE SPECIFICALLY DESCRIBED IN THIS AGREEMENT. CUSTOMER
ACCEPTS SOLE RESPONSIBILITY FOR SELECTING THE TYPE AND AMOUNT OF MERCHANDISE 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. G &K MAY NOT BE THE MANUFACUTRER OF THE MERCHANDISE AND HAS NOT MADE AND DOES
NOT MAKE ANY REPRESENTATION, WARRANTY OR CONVENANT, EXPRESS OR IMPLIED, REGARDING THE QUALITY, SAFETY OR SUITABILITY OF THIS
MERCHANDISE 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 value 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,
without limitation, all accounts receivable, replacement value for all lost or damaged Merchandise, plus, if applicable, the Early Termination Fee.
F. Any claim or dispute between the parties, arising from, or relating to, this 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 court, the parties will first attempt in good faith to promptly
resolve the claim or dispute, including by negotiation at agreed time(s) and location(s). All negotiations are confidential and will be treated as settlement negotiations. If the
parties are unable to resolve the dispute through negotiation, then G &K may elect to require a mediation of the dispute through a neutral party under rules of an established
mediation center. Each provision of this paragraph is enforceable by any court having jurisdiction over the parties, and either party may seek injunctive relief for this purpose.
Customer will reimburse G &K for all costs, including attorneys' fees, incurred by G &K to enforce the commitments of Customer under this Agreement and this paragraph.
G. Any interruption of G &K's usual operations, or delay or termination of service provided in this Agreement, by reason of acts of God, fires, explosions, strikes, or other
industrial disturbances, or any cause beyond the reasonable control of G &K, will not be 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, G &K'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 G &K'S GUARANTEE. G &K IS NOT LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL (INCLUDING, WITHOUT
LIMITATION, 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 court of competent jurisdiction to be invalid, the remaining terms and conditions will remain in full force and effect.
This Agreement constitutes the entire agreement and supersedes all prior oral or written agreements between the parties regarding the matters 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 to this Agreement will be binding
unless in writing signed by representatives of both parties having the apparent authority to do so or as otherwise indicated in this Agreement.
J. All notices permitted or required under this Agreement must be in writing and transmitted by personal delivery, a nationally recognized overnight courier service, certified or
registered mail, returned receipt requested, or facsimile (with confirmation). Notices shall be sent to the addresses specified on the first page of this Agreement or to such
other address as either party may specify in writing.
Page 3
kikkairir Bid No. 264 -07\
N Rental Agreement term, 36 months. On June 1" of each year, prices will be increased by 2 %.
N' All garments will have the steam tunnel finish, with the exception of the Executive Shirts & Executive
Pants, they are pressed.
Nl Shirts are available in long or short sleeves (unless noted), both at the same price.
Ai Customers can choose to have any or all garments pressed, there will be an additional cost of $0.25
per garment.
\I There will be a design fee to create a Direct Embroidery logo.
N' Direct embroidery per garment = $6.00
Ai 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.
Ai Minimum Stop $35.00
\I No charge for Prep, Emblems, or name tags.
\I No charge for Environmental, waste water or energy charge (additional service charge)
Ai 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 31, 2008
J G&K SERVICES (G &K) SERVICE AGREEMENT NUMBER
ADDENDUM TO SERVICE AGREEMENT
CO PANY NAME (Custom (�
G &K SERVICES A ES 0��" P 'GA Imo- vv � Vti.__ Li
G &K Services 1 1 1 N. O. till u--c: P o BMX 1 o 1
8404 Lawndale Avenue �J /� -7-110
Houston, TX 77012 PD P--1 /-'C" - -}-ti. t 14- ( -- ( 029
PHONE MBEI3_,
4C — 1 - )3 -- �3
MERCHANDISE I SERVICE ITEMS (ITEMS)
ITEM NUMBER OF INVENTORY PER CHARGE PER SERVICE CURRENT UNIT REPLACEMENT
DESCRIPTION PERSONS /QTY. PERSON /ITEM CHANGE /ITEM FREQUENCY OR LOSS /DAMAGE VALUE
LTA/1(W thi a C Si iii s S/I I , 2_ a I lo (05
. -;hcik.t h;/\& j Pa vi 1 G 6/1 I , 3z v'\) 10- (a
g bin T cVP __ C I
Z �� 1,
Sol I I cc ,I� --e (G - 10 r -1- V\,J 3 I I. 05
1
13(tY . fit,'e 5'1I N`kk ,t& - .let v\j
CC +1 co Co Ve,(l'( (( I c .;4 1A)
t- c, I � j l ( i fry n C. `V-e c i ( a (v k4./
CHARGE' CHARGE'
*OutsizeS i CHARGE'
*Prep
*Nametag � *Special Cuts / � I. r � / ��L' Invoice Minimum 75%
/ 0 A — 35 y > SAL_
*Emblem .- *Auto Replacement ._ g, ..
*Embroidery ; DO *Environmental Charge
*Changeovers _ *Energy Charge ,e-
J
*Exchanges — *Image Guard
* Prices are subject to change as described in the Service Agreement
COMMENTS
Customer and G &K agree that Merchandise /Service Items listed above shall be governed by the provisions of the
Service Agreement between Customer and G &K, which provisions are incorporated by reference into this Addendum.
Customer Name G &K SERVICES
Address Sales Signature l / :Od C (a ' L /
Accepted Byx Printed Name and Title /L*'.0 i it /4"L/ Z5 7
J/ t
Name and Title (printed) g Management Signature
Printed Name and Title
Effective Date , 200
07.200E loo` 'tsroa ;'= Form SER -002A 7/06
G&K ORGiNL COPY