HomeMy WebLinkAboutCC 8 EQUIP SHARING AG 03-07-83AGENDA
FEBRUARY 28, 1983
CONSENT CALENDAR
NO. 8
3-7-83
Inter-Corn
fROM:
$ US,~ ({:1':
WILLIAM HUSTON, CITY MANAGER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS~CITY ENGINEER
COOPERATIVE EQUIPMENT SHARING AGREEMENT
RECOMMENDATION:
That the Tustin City Council, at their meeting of March 7, 1983, authorize the
Mayor to execute the attached Cooperative Equipment Sharing Agreement in behalf of
the City of Tustin.
BACKGROUND:
The Orange County City Engineer's Association has initiated a proposal for the
cities within Orange County to enter into an Equipment Sharing Agreement which
could save cities the cost of purchasing specialized equipment that ~ight be
under-utilized.
The steering committee of the Orange County Division of the League of California
Cities has solicited comments from both the City Manager's Association'and the
City Attorhe~s Association on the attached agreement. The League introduced a
resolution late in l~82.encouragi~ all Or.angeCount~ cities to adopC the attached
Equipment Sharing Agreement.
DISCUSSION:
This.agreement provides for the participating cities, on a mutual aid basis, to
rent to and between each city certain equipment. A uniform rental rate is
established within'the agreement and takes into account the following factors:
a. Present replacement cost of equipment
b. Service life of equipment
c. Salvage value
d. Annual maintenance cost of equip~nt
e. Number of working days per year that equipment is utilized
Provisions exist within the agreement for complete indemnification by the renting
city and to hold all cities harmless from any loss, liability, claim, suit or
judgement resulting from work or acts done or ommitted by the.renting city.
This agreement has a withdrawal clause which requires a 30 day written notice to
each of the other participating parties.
The Cit~ Attorneg has reviewed this agreement with respect to form and content and
has approved same.
DIRECTOR OF PUBLIC WORKS/
CITY ENGINEER
?OOPERATIVE EQUIPMENT SHARING ~ ~,EMENT
THIS AGREEMENT entered into by and among the Cities approving the
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AGREEMENT by Resolution are all municipal corporations organized and
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operating under the laws of the State of California, and shall hereinafter be
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referred to jointly as "CITIES" and individually as "CITY".
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RECITALS
1. CITIES are geographically located in close proximity to each
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other in the County of Orange.
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2. CITIES, and each of them, own certain equipment and desire to
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cooperate with each other to increase the utilization of this
individually-owned equipment to cover overhead charges d~ring periods when
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said equipment is not being used.
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3. CITIES desire to assist each other by providing convenient
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~ources for said equipment at rel. atively Iow cost..
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i AGREEMENT
THE CITIES HUTUALLY AGREE AS FOLLOWS:
4. Rental: CITIES agree, on a mutual aid basis, to rent to and
between each other certain equipment according to the terms of this
AGREEHENT.
5. Rates and Procedures: Rental rates may be established
CITIES using the following formula as a guideline:
R = [ (_~)+ M
R = Rental rate in dollars per day.
C = Present replacement cost of equipment.
N = Service life of equipment in years.
S ~ Salvage Value.
=Annual maintenance cost in dollars per year.
D = Equipment utilization in working days per year.
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The minimum rental rate shall be Ten Dollars ($10.00) per day and
all rates calculated shall be rounded off to the nearest One Dollar ($1.00)
per day.
Cities shall be responsible for compiling a list of equipment and
rates for the rental of said equipment and shall submit it to
Secretary-Treasurer of the City Engineers Association of Orange County by the
first Monday in April of each year. The rental rates shall be published and
distributed prior to and become effective on July 1 of the same calendar
year.. In the event a CITY fails to submit an updated list of rental rates
for equipment prior to the first Monday in April, the most recent submitted
rental rates shall apply.
The owning CITY shall establish the procedure for billing as
equipment is rented.
6. Employee/operator: CITIES reserve the' right to determine when
an ~mployee/operator 'shall be required 'to. acc6mpany and operate any' 'equipment
rented. CITIES agree that in the event an employee/operator 'accompanies and
operates any equipment, CITY owning that equipment and employing that
employee/operator shall in no manner be construed to be performing work for
renting CITY, but, rather, shall be deemed to be acting as a renter of said
equipment only.
CITIES agree that renting CITY shall pay owning CITY for the rental
rate of the equipment plus the labor rate of the employee/operator. CITIES
agree that the labor rate shall include the employee/operator's hourly rate
of pa~, the cost of all fringe benefits to which such emplo~ee/operator' is
entitled and a fifteen percent (154) administrative charge.
Notwithstanding the fact that an employee/operator that accompanies
and operates a particular piece of equipment ma~ come under the temporary
direction, supervision, and control of officers and employees of renting CITY
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thereby creating a special employment relationship between said
employee/operator and renting CITY, CITIES agree that, in accordance with
Section 1163 of the California Insurance Code, CITY owning the equipment and
generally employing the employee/operator shall be solely liable for said
employee/operator including but not limited to compensation payable on
account of injury occurring in the course of and arising out of general and
special employments unless renting CITY had the employee/operator on its
8 payroll at the time of the injury in which case renting CITY shall be solely
9 liable. For the purpose of this AGREEMENT, an employee/operator shall be
10 deemed to be on the payroll of owning CITY notwithstanding the fact that
11 ranting CITY is paying a sum equal to said employee/operator's salary plus
12 benefits to owning CITY.
13 7. Condition of Equipmant: CITIES agree that all equipment shall
14 be in good operating order and shall include all normal accessories such as
15 hand tools required for operation at ~e time.said'equipment is rented~ .
16 Renting CITY agrees to maintain equipment in good operating order and to
17 immediately notify owning CITY of 'any malfunction or breakdown of rented
]8 equipment while in possession of renting CITY. Further, renting CITY agrees
19 to be responsible for all costs of towing and repairing any equipment which
20 malfunctions or becomes damaged from any cause while in possession of renting
21 CITY.
22 If the equipment is motorized, CITIES agree that the equipment
23 shall contain a full t~,k of fuel to be provided by owning CITY at the time
24 the equipment leaves the home base of owning CITY, and that renting CITY
25 shall be responsible for providing subsequant fuel requirements including a
26 full tank of fuel as is practical whan the equipment is returned to owning
27 CITY. CITIES agree that the rental rate does not include the supplying of
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1 8. Security and Checkout Procedures'. CITIES agree to use their
2 best efforts to provide for security and to prevent the loss, theft, or
3 damage to equipment. To this end, CITIES agree to abide by the checkout
4 procedures mutually agreed upon by owning and renting CITY. Further, CITIES
5 agree tha~ renting CITY shall be responsible for ~ransportation to and from
6 owning CITY and that owning CITY has no dut~ or obligation to deliver
7 equipment to renting CITY. Further, renting CITY shall provide safe storage
8 of equipment when retained overnight and at all other times when equipment is
9 not in use.
10 9. Availabilit~ of Equipment: CITIES agree that they retain the
11 right to refuse the rental of equipment at an~ time. Further, CITIES agree
]2 that owning CITY shall have the right to recall any equipment at an~ time.
13 i0. Inspection: CITIES agree that owning CITY shall have the
14. right to inspect its equip~ent'at an~ time 'while in.possession of renting
16 CITY.' Owning CITY shall ha'~ the right to recall the equipment'.if it
16 determines that the equipment is being misused, abused, or is in need of
17 maintenance or repairs.
18 i1. Indemnification and Liability: CITIES, their officers and
19 employees, shall not be deemed to assume an~ liabilitw for the negligence of
20 renting CITY or of any officer or employee thereof, nor for any defective or
21 dangerous condition of the streets, property, or equipment of renting CITY,
22 and renting CITY shall hold CITIES, their officers and employees harmless
23 from, and shall defend CITIES and the officers and employees thereof against
24 any claim for damages resulting therefrom. Further, renting CITY shall
25 protect and save CITIES, their officers and employees, harmless from all
26 claims, damages and costs, and shall assume the defense of all actions for
27 any such damages or injuries alleged to have arisen out of the use of CITIES'
28 equipment while being used by renting CITY whether operated by an employee of
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1 renting CITY or by an employee~operator from CITIES except that an owning
2 CITY shall be responsible for damage or injuries resulting from the willful
3 misconduct of its employee/operator.
4 Renting CITY agrees to indemnify and hold CITIES harmless from any
5 loss, libility, claim, suit or judgment resulting from work or acts done or
8 omitted by renting CITY in carrying out this AGREEHENT.
? Renting CITY agrees that it shall be liable to CITIES on account of
8 loss of rented equipment by fire, theft, and natural disaster.
These provisions are included in accordancs with Government Code
lO Section 895.4 and appl~ to all parties herein.
~ 1 12. Failure to Return Equipment: Renting CITY shall return a
12 piece of rented equipment to owning CITY from which the equipment was rented
13 within 24 hours following written demand upon the Public Works Director,
14 Public Services Dikector, Public Maintenance Director, or equivalent
15 supervisorial position of renting 'CITY by owning CITY. Renting. CITY agrees
18. that as penalty for failing to timely return a piece of rented equipment, it
17 shall pay to owning city all costs for similar equipment necessarily rented
18 by owning CITY in the open rental market plus 154 of said amount as
19 a~m~nistrative costs.
20 13. Violations of Law: Renting CITY shall hold owning CITY
21 harmless for all fines, penalties, and forfeitures imposed for parking or
22 traffic violations including reasonable attorney's fees, which are incurred
23 while any rented motorized equipment is in possession of renting CITY.
24 14. Use of Equipment: CITIES agree that equipment rented shall be
25 used by and solely for the benefit of renting CITY and shall be used and
28 operated solely by officers and employees of renting CITY who are qualified
27 to operate it, unless an employee/operator accompanies said equipment in
28 which case said employee/operator shall be the sole operator of said
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equipment.
15. Supplementary Conditions: Nothing in this AGREEMENT shall
restrict renting CITY and owning CITY from agreeing to additional conditions
4 necessary to resolve a special situation.
5 16. Withdrawal from Agreement: Any CITY which is a party to this
6 AGREEMENT may withdraw at any time, upon 30 days written notice to each of
7 the other parties, and thereafter, such withdrawing CITY shall no longer be a
81 party to this AGREEMENT b~t this AGREEMENT shall continue to exist a~ong the
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13 ATTEST:
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remaining CITIES.
1 7. Effective Date of Agreement: This AGREEMENT shall become
effective as between the contracting CITIES upon their approval of this
City Clerk, City of Tustin
APPROVED AS TO FORJ4:
19 City Attorney, City of Tustin
EXECUTED BY:
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Hayor, City of Tustin
Date
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