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 2 AGREEMENT by Resolution are all municipal corporations organized and 3 operating under the laws of the State of California, and shall hereinafter be 4 referred to jointly as "CITIES" and individually as "CITY". 5 RECITALS 1. CITIES are geographically located in close proximity to each 7 other in the County of Orange. 8 2. CITIES, and each of them, own certain equipment and desire to 9 cooperate with each other to increase the utilization of this individually-owned equipment to cover overhead charges d~ring periods when 11 said equipment is not being used. 12 3. CITIES desire to assist each other by providing convenient 13 .'15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~ources for said equipment at rel. atively Iow cost.. 14 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. 1 2 '3 4 5 6 7 8 9 10 11 12 13 14 15' 16 17 18 19 20 21 22 23 24 25 26 27 28 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 -2- 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 28 any materials for use with any equipment. -3- 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 -4- 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 -5- 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 9 10 11 12 AGREEMENT. 13 ATTEST: 15 17 18 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: 20 21 22 23 24 25 26 27 28 Hayor, City of Tustin Date -6-