Agreement with Balar Holding Corp

City of Glendale — Regular Meeting (2026-04-28)

Extracted text (via ocr_local) 37664 characters

LINING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
BALAR HOLDING CORP. DBA BALAR EQUIPMENT

This Linking Agreement (“Agreement”) is entered into as of this day of , 2026, between the
City of Glendale, an Arizona municipal corporation (“City”), and Balar Holding Corp. dba Balar Equipment,
an Arizona corporation, authorized to do business in Arizona (“Contractor”), collectively, the “Parties.”

RECITALS

A. On November 1, 2023, the City of Phoenix, 2 member of the S.A.V.E. Cooperative Purchasing
Agreement, entered into a contract with Contractor to purchase the goods and services described
in. the Original Equipment Manufacturer (OEM) Parts and Service Contract No. 161205--0 (RFA
24-F31-028) (“Cooperative Agreement”), which is attached hereto as Exhibit A. The Cooperative
Agreement allows its cooperative use by other governmental agencies, including the City.

B. Section 2-149 of the City’s Procurement Code permits the Finance Director to procure goods and
services by participating with other governmental units in cooperative purchasing agreements when
the best interests of the City would be served.

C. Section 2-149 also provides that the Finance Director may enter into such cooperative agreements
without meeting the formal or informal solicitation and bid requirements of Glendale City Code
Sections 2-145 and 2-146.

b ‘The City wishes to contract with Contractor for supplies or services identical to those being provided
to other units of government under the Cooperative Agreement. Contractor consents to the City’s
cooperative use of the terms and conditions of the Cooperative Agreement, and agrees to provide
the supplies and services set forth in the Statement of Work appended hereto as Exhibit B.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated by reference, and
the covenants and promises contained in this Linking Agreement, the parties agree as follows:

1. Term of Agreement.

A. As provided in the Cooperative Agreement, purchases can be made by governmental entities
from the date of award, which was November 1, 2023, until the date the contract terminates
on October 31, 2026, unless the term is extended by mutual agreement of the parties to the
Cooperative Agreement. The Cooperative Agreement, however, may not be extended
beyond October 31, 2028. The initial period of this Agreement is the period from the
Effective Date of this Agreement until October 31, 2026.

B. The City may extend the term of this Agreement for two (2) one-year periods if the
Cooperative Agreement is likewise extended and the City gives the Contractor notice that it
is exercising its option to extend this Agreement 30 days prior to the anniversary of the
Effective Date. Glendale extensions are not automatic and shall only occur if the City
affirmatively exercises its right to extend this Agreement.

1
01/28/2025

Scope of Work: Terms, Conditions, and Specifications.

A. Contractor shall provide City the supplies and/or services identified in the Scope of Work
attached as Exhibit B.

B. Contractor agrees to comply with all the terms, conditions and specifications of the
Cooperative Purchasing Agreement. Such terms, conditions and specifications are
specifically incorporated into and are an enforceable part of this Agreement.

Compensation.

A. City shall pay Contractor compensation at the same rate and on the same schedule as
provided in the Cooperative Purchasing Agreement, which is attached hereto as Exhibit C.

B. The total purchase price for the supplies and/or services purchased under this Agreement
shall not exceed four hundred fifty thousand dollars ($450,000) for the entire term of the
Agreement (initial term plus any extensions).

Cancellation. This Agreement may be cancelled pursuant to A.RS. § 38-511.

Non-discrimination. Contractor must not discriminate against any employee or applicant for
employment on the basis of race, color, religion, sex, national origin, age, marital status, sexual
orientation, gender identity or expression, genetic characteristics, familial status, U.S. military veteran
status or any disability. Contractor will require any Sub-contractor to be bound to the same
requirements as stated within this section. Contractor, and on behalf of any subcontractors, warrants
compliance with this section.

Insurance Certificate. A certificate of insurance applying to this Agreement must be provided to the
City prior to the Effective Date.

E-verify, Contractor complies with A.R.S. § 23-214 and agrees to comply with the requirements of
ARS. § 41-4401.

No Boycott of Israel. To the extent A.R.S § 35-393 through § 35-393.03 are applicable, the parties
hereby certify that they are not currently engaged in, and agree for the duration of the Agreement to
not engage in, a boycott of goods or services from Israel, as that term is defined in A.R.S § 35-393.

Uyghur Forced Labor Prevention Act (UFLPA). Contractor certifies that it does not currently, and

during the term of this Agreement, will not use:
the forced labor of ethnic Uyghurs in the People’s Republic of China;

b. any goods or services produced by the forced labor of ethnic Uyghurs in the People’s
Republic of China; and

c. any contractors, subcontractors or suppliers that use the forced labor or any goods
ot services produced by the forced labor of ethnic Uyghurs in the People’s Republic
of China.

01/28/2025

10. ion of PCI lance. When applicable, the Contractor will provide the City annually with
a Payment Card Industry Data Security Standard (PCI DSS) attestation of compliance certificate
signed by an officer of Contractor with oversight responsibility.

11. Notices. Any notices that must be provided under this Agreement shall be sent to the Parties’
respective authorized representatives at the address listed below:

City of Glendale

c/o Fleet Management - Sandy Ressler
6210 W. Myrtle Avenue

Glendale, AZ 85301

and

Balar Holding Corp. dba Balar Equipment
c/o Joey Pellecchia

11023 N. 22"4 Avenue

Phoenix, AZ 85029

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year set
forth above.

“City” “Contractor”
City of Glendale, an Arizona Balar Holding Corp. dba Balar Equipment,
municipal corporation an Arizona corporation
By: By. _a—_
Patrick S, Banger Name: Joeyellecchia
City Manager Title: President
ATTEST:
Julie K. Bower (SEAL)
City Clerk
APPROVED AS TO FORM:
Michael D. Bailey
City Attomey
3

01/28/2025

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
BALAR HOLDING CORP. DBA BALAR EQUIPMENT

EXHIBIT A
CITY OF PHOENIX
CONTRACT NO. 161205--0 (RFA 24-FSD-028)
ORIGINAL EQUIPMENT MANUFACTURER (OEM) PARTS AND SERVICE

ORDINANCE S-50295

AN ORDINANCE AUTHORIZING THE CITY MANAGER TO
ENTER INTO CONTRACTS WITH SEVERAL
CONTRACTORS TO PROVIDE BEST PRICING FOR
PARTS AND SERVICE FOR FLEET SERVICES; AND
FURTHER AUTHORIZING THE CITY CONTROLLER TO
DISBURSE FUNDS.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PHOENIX as
follows:

SECTION 1. The City Manager, or his designee, is authorized to enter
into contracts with RWC International Ltd.; Balar Holding Corp.; Bingham Equipment
Company; Cummins Inc:; Norwood Equipment Inc.; Rush Truck Centers of Arizona Inc.;
Velocity Truck Centers dba Freightliner of Arizona LLC; Empire Southwest, LLC;
Simpson Norton Corporation; Redsky Fire Apparatus LLC; Sonsray Machinery, LLC;
Southwest JCB Inc.; H&E Equipment Services, Inc.; and Hughes Fire Equipment, Inc.
to provide fieet vehicle original parts/equipment associated with things like fire

apparatus, street sweepers, refuse trucks, off-road equipment, and various heavy-duty
trucks and equipment for the Public Works Departments. Each contract term is three

The total combined contract cost will not exceed thirty million nine hundred

forty-nine thousand five hundred ninety dollars ($30,949,590). The contracts may
contain other terms and conditions deemed necessary by City staff.

SECTION 2. The City Controller is authorized to disburse all funds for the
purposes of this ordinance.

PASSED by the Council of the City of Phoenix this 1st day of November,
2023.

ATTEST:

Muar lobdd

DeniselArchibalfi, City Clerk

APPROVED AS TO FORM:
Julie M. Kriegh, City Attorney

—tlennifer Vega

REVIEWED BY:

Jefixfy ion, City Manager

MWM:smb:LF23-2441:1 1/1/23: 2403291_1.doc

2 Ordinance §-50295

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
BALAR HOLDING CORP. DBA BALAR EQUIPMENT

EXHIBIT B
Scope of Work

To provide parts and repair services to heavy-duty vehicles and equipment, on an as-needed basis.

de
City of Phoenix

REQUEST FOR AGREEMENT
RFA 24-FSD-028

ORIGINAL EQUIPMENT MANUFACTURER(OEM)
PARTS AND SERVICE

City of Phoenix
Public Works
200 W. Washington St.
7th Floor
Phoenix, AZ
85003

City of Phoenix
REQUEST FOR AGREEMENT
RFA 24-FSD-028
ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND
SERVICE

STANDARD TERMS AND CONDITIONS .............cccssceccscssesssereessscessusesessesensaceesecsaceeteceasaees 6
SPECIAL TERMS AND CONDITIONG.|..........ccccccccscsesscsessecescscscscesceveesesesacassuacuesasaeacarenenes 18
DEFENSE AND INDEMNIFICATION
INSURANCE REQUIREMENTS ..........cccccscscsssssecscssssesssseseseseseseescsecscssorsesesssececanseeeecetarenes
Attachments:

SUBMITTALS PACKET

NOP WN SB

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

1. Introduction

1.1. Summary

The City of Phoenix invites sealed offers for Original Equipment Manufacturer (OEM) Parts and
Service on an as-needed basis beginning on or about November 1, 2023.

1.2. Contact Information

Brittany Rivera

Contract Specialist |

200 W. Washington St.

7th Floor

Phoenix, AZ 85003

Email: brittany.rivera@phoenix.aov
Phone: (602) 534-9614

Department:
Public Works

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

2. Agreement

2.1. Agreement

THIS AGREEMENT (this “Agreement”), entered into upon signature and recording by the City
Clerk's department, as required by Phoenix City Code, (“Effective Date”), is between the City of
Phoenix, an Arizona municipal corporation (the “City”), and This should reflect each of the Balar
Equipment (“Contractor”), hereafter, the “Parties.”

2.2... Term of Agreement
This Agreement will expire after three-year term, with two option years.

2.3. Compensation
City shall pay Contractor in accordance with the Price Schedule.

2.4. Termination

This Agreement will terminate upon the earliest occurrence of any of the following:
A. reaching the end of the term exercised as set forth in Term of Agreement;
B. completing the service(s) or delivery of goods set forth in the Scope of Work;
C. payment of the maximum compensation; or
D. termination pursuant to the provisions of this Agreement.

2.5. Recitals

The City Manager of the City of Phoenix, Arizona, is authorized by the provisions of the City
Charter to execute agreements for the purchase of goods and services.

The City desires to obtain the goods or services that are specifically set forth in this Agreement.

The City is operating in accordance with the Phoenix City Code and Administrative Regulation
3.10 and enters this agreement under an exception.

Contractor possesses the skills and expertise necessary to provide such goods or services as
desired by the City.

This Agreement is authorized by the City Council 23-2441 on 11/01/2023.

NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by
reference, and the covenants and promises contained herein, the Parties hereby agree as
follows:

Request for Agreement #RFA 24-FSD-028
Title; ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

3. Scope of Work

3.1. Introduction

The City of Phoenix, Public Works Department, Fleet Services Division (FSD) is responsible for
maintaining a fleet of over 7,800 different vehicles and equipment, ranging from light, medium,
and heavy-duty: including refuse collections trucks and various fire apparatus. FSD's mission is
to provide our customers with fleet equipment that is safe, efficient, reliable, sustainable, and
supports their mission in serving the City of Phoenix residents.

This will be considered a 2-tier contract, with tier 1 for OEM repair services, and the tier 2 for the
procurement and delivery of repair / replacement parts. Both Tiers will be on an “as needed” / “if
needed” basis for a period of three (3) years, with two (2) additional (annual) extensions,
beginning after City Council approval, according to the requirements contained herein.
Contractors may be required to sign for terms under Tier 1, Tier 2, or both.

Tier 1 (Service): Contractor(s) will provide all necessary labor, materials, parts, accessories,
assemblies, and/or components to meet OEM (Original Equipment Manufacturer) guidelines
and quality.

Tier 2 (Parts): The Contractor shall provide parts and accessories as required for the City’s
fleet equipment. Contractors shall provide all parts and accessories offered by the
manufacturers which they represent.

3.2. CONTRACTOR REQUIREMENTS
Tier 1 (Service)

All service performed by the Contractor under this contract will be consistent with OEM
specification and will meet all applicable federal, state, and local standards regarding this type
of equipment or operation of equipment. Contractor must also meet all applicable OSHA
regulations to ensure the safety of contractor staff, city employees and residents.

The contractor will maintain a high standard of cleanliness while servicing City vehicles and
equipment.

It is the expectation of the City, as described herein, that the Contractor will provide timely
maintenance and repair service to correct deficiencies and return the equipment within 3-5
business days post pick-up from a respective city shop location; extensions beyond 5 business
days shall be approved by shop management.

The Contractor must have the knowledge and expertise necessary to complete the full scope
and depth of maintenance and repairs to the specific OEM specification.

The Contractor will respond verbally or via electronic communication to all service call requests
within (2) business hours. Business hours are defined as Monday through Friday from 6am to
5pm. Equipment pick-up time from the respective city shop (post verbal or electronic
communication contact) shall be within 48 business hours.

Below is a list of the most common shop locations with addresses; additional locations in the
Phoenix metropolitan area may be added without notice.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

Location _ Address
1. 22nd Avenue Service Center _ 2441 South 22nd Avenue, Phoenix, AZ 85009
2. Okemah Service Center, _ 3828 East Anne Street, Phoenix, AZ 85040 _
| 3. Glenrosa Service Center _ 4021 West Glenrosa, Phoenix, AZ 85019
| 4. Union Hills Service Center _138 East Union Hills, Phoenix, AZ 85024 __|
| 5. Fire Operations Service Center 2625 South 19th Avenue, Phoenix, AZ 85009
6. Salt River Service Center 3045 South 22nd Avenue, Phoenix, AZ 85009
| 7. 27th Avenue Transfer Station _ 3060 South 27th Avenue, Phoenix, AZ 85009
8. North Gateway Transfer Station 3025 North Black Canyon Highway, Phoenix AZ
85085
| 9. 91st Avenue Wastewater Treatment 5615 South 91st Avenue, Tolleson, AZ 85353
Plant
10, State Route 85 Landfill __28361 West Patterson Rd., Buckeye, AZ 85326
11. Southern Command Station 3443 South Central Avenue, Phoenix, AZ 85040
12. Black Mountain Precinct 33355 North Cave Creek Road, Cave Creek, AZ
85331
| 13. Cactus Park Precinct _ 12220 North 39th Avenue, Phoenix, AZ 85029
14. Central City Precinct _ 1902 South 16th Street, Phoenix, AZ 85034
18. Desert Horizon Precinct _ 16030 North 56th St, Scottsdale, AZ 85254
16. Estrella Mountain Precinct _ 2111 South 99th Avenue, Tolleson, AZ 85353
17, Maryvale Precinct a 6180 West Encanto Blvd. Phoenix, AZ 85035
18, Mountain View Precinct 2075 East Maryland Avenue, Phoenix, AZ
85016
19, South Mountain Precinct | 400 West Southern Avenue, Phoenix, AZ 85041

Any request for service outside of the defined business hours must be addressed as defined
above shall occur the next business day.

The Contractor will evaluate (diagnose) the request for services and provide a written estimate
of all necessary work activities to return the equipment to an in-service status.

The Contractor shall not begin any work activities without prior written approval, except for 1
hour of diagnosis time to confirm the cause of failure. The Contractor shall gain shop
management approval for any additional diagnostic time. Likewise, shop management shall
approve all subsequent time and material service costs.

The Contractor will provide an itemized listing of estimated costs for each repair/complaint. The
itemized details must include the labor hours, contracted labor rate, labor cost, part number,
part description, part cost, part quantity per each repair activity, along with a description of
services to be performed, including industry standards of Complaint, Cause and Correction. The
Contractor's written estimate will be submitted to the corresponding location via electronic
communication. All estimates must have the ability to show individual job part mark-up or
discounting to verify part pricing, in accordance with submittal section.

If additional supplemental work activities are found outside the original estimate, the Contractor
will provide a written estimate of the supplemental repairs to the corresponding location via
electronic communication for approval.

The Contractor should not commence in performing any work activities until a purchase order
has been received electronically from the corresponding location authorized staff.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

If the repair requires a new part, the replacement part must be available locally or delivered
within forty-eight (48) hours at no additional cost to the City.

Upon completion of all work activities, and prior to the equipment being returned to in-service
status, the contractor must perform a quality assurance inspection.

The City anticipates that most services performed under this contract will take place during
normal business hours. However, there may be a need to provide night, weekend, and holiday
service on an as-needed basis.

Tier 2 (Parts)

The Contractor shall establish and maintain sufficient local product inventory to support the
City's fleet of vehicles and equipment. The Contractor shall guarantee that stock of products,
specified in this agreement, are available locally and shall provide parts delivery or will-call
services, which may include night, weekends, and holidays for equipment utilized to maintain
public health (sanitation) and public safety (Police and Fire).

All parts provided by the Contractor under this contract shall meet or exceed OEM specifications
and will meet all applicable federal, state, and local laws.

Special handling and/or freight charges must be pre-approved. The Contractor will assume all
shipping/delivery charges unless prior authorization from the City is provided. If such
authorization is received, the City will reimburse the Contractor as a pass-through cost on the
invoice with documentation that includes the price the Contractor paid for the special handling or
freight; mark-up on fright will not be permitted.

The Contractor must meet the following fill rates:

The Contractor will make available or deliver a minimum of 85% of all orders within 24-hours
after receipt of order.

The Contractor will make available or deliver all orders within 48 hours after the receipt of order.

For orders requiring more time than allowed, as outlined above, the Contractor will notify the
City authorized representative by email. This notification must include the reason for the delay,
backorder information, and estimated date/time of delivery. The Contractor will provide weekly
status updates on the order until delivered.

If an item cannot be supplied immediately from Contractor's stock, the City reserves the right to
purchase the item from other sources when the City determines that an emergency purchase is
needed.

Contractor must off-load all deliveries and pick up parts cores weekly at no additional cost to
City.

The Contractor may make multiple daily deliveries to multiple locations, as required, to fulfill
orders. Delivery schedules to be determined by ordering location.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

Deliveries will be made to various City locations. Below is a list of the most common delivery
locations with addresses; additional locations in the Phoenix metropolitan area may be added
without notice.

Location — _ Address
1. 22nd Avenue Service Center 2441 South 22nd Avenue, Phoenix, AZ 85009
_2, Okemah Service Center, 3828 East Anne Street, Phoenix, AZ 85040
3._Glenrosa Service Center 4021 West Glenrosa, Phoenix, AZ 85019
4. Union Hills Service Center _ 138 East Union Hills, Phoenix, AZ 85024 __ |
5. Fire Operations Service Center __2625 South 19th Avenue, Phoenix, AZ 85009
6. Salt River Service Center 3045 South 22nd Avenue, Phoenix, AZ 85009
| 7. 27th Avenue Transfer Station _3060 South 27th Avenue, Phoenix, AZ 85009
8. North Gateway Transfer Station 3025 North Black Canyon Highway, Phoenix AZ
85085
| 9. 91st Avenue Wastewater Treatment Plant | 5615 South 91st Avenue, Tolleson, AZ 85353
10. State Route 85 Landfill - _ 28361 West Patterson Rd., Buckeye, AZ 85326
11. Southern Command Station _ 3443 South Central Avenue, Phoenix, AZ 85040
12. Black Mountain Precinct 33355 North Cave Creek Road, Cave Creek, AZ
85331
13, Cactus Park Precinct _12220 North 39th Avenue, Phoenix, AZ 85029
14. Central City Precinct 1902 South 16th Street, Phoenix, AZ 85034
15. Desert Horizon Precinct 16030 North 56th St, Scottsdale, AZ 85254
16. Estrella Mountain Precinct _ 2111 South 99th Avenue, Tolleson, AZ 85353
17. Maryvale Precinct 6180 West Encanto Blvd. Phoenix, AZ 85035
18. Mountain View Precinct 2075 East Maryland Avenue, Phoenix, AZ 85016
|. 19. South Mountain Precinct | 400 West Southern Avenue, Phoenix, AZ 85041
3.3. PRICING

TIER 1

A written quote will be provided to the authorized City representative by the vendor showing
estimated hours for repair, contracted hourly labor rate, and itemized list of parts and pricing
required to complete work. All quotes must have the ability to show individual job part mark-up
or discounting to verify part pricing, in accordance with submittal section.

Pricing shall be consistent with best industry practices, which ensures labor charges are billed
only once in the event a task is overlapping.

Labor hours should reflect Chilton/Mitchell labor manual when applicable or industry standard
best practices when there is not a labor manual for reference.

All time increments of labor shall be quoted at the job/complaints deepest level and include all
removal/install to gain access to components necessary to complete the job/complaint at hand.

Labor time increments will be billed in .10'"S of an hour based upon book time or industry
standard.

Services requested within this contract can be requested from any City Fleet services facility,
which includes but is not limited to the following locations in the Phoenix metropolitan area.

Request for Agreement #RFA 24-FSD-028

Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

Location
1. 22nd Avenue Service Center

Address
2441 South 22 Avenue, Phoenix, AZ. 85009

2. Okemah Service Center,
3. Glenrosa Service Center
4. Union Hills Service Center _
5. Fire Operations Service Center
6. Salt River Service Center _
| 7. 27 Avenue Transfer Station

~ 8. North Gateway Transfer Station

3828 East Anne Street, Phoenix, AZ. 85040
4021 W. Glenrosa, Phoenix, AZ 85019
138 East Union Hills, Phoenix, AZ. 85024

_____ 2625 South 19% Avenue, Phoenix, AZ 85009
3045 South 22nd Avenue, Phoenix, AZ 85009

_ 3025 North Black Canyon Highway, Phoenix 85085

| 9. 918 Avenue Wastewater Treatment Plant
10. State Route 85 Landfill

11, Southern Command Station

12. Black Mountain Precinct

_ 5615 South 918 Avenue, Tolleson, AZ 85353
_28361 West Patterson Rd., Buckeye, AZ, 85326
3443 South Central Avenue, Phoenix, AZ 85040

"33355 North Cave Creek Rd, Cave Creek, AZ., 85331

13. Cactus Park Precinct
14. Central City Precinct

12220 North 39% Avenue, Phoenix, AZ 85029
1902 South 16th Street, Phoenix, AZ 85034

15. Desert Horizon Precinct
16. Estrella Mountain Precinct
| 17. Maryvale Precinct _
18, Mountain View Precinct

_19. South Mountain Precinct
TIER 2

16030 North 56" St, Scottsdale, AZ., 85254

_ 2111 South 99" Avenue, Tolleson, AZ., 85353

_ 6180 West Encanto Blvd. Phoenix, AZ., 85035
2075 East Maryland Avenue, Phoenix, AZ.,
85016

| 400 West Southern Avenue, Phoenix, AZ., 85041 _|

The City may provide a spreadsheet of specific parts currently used. The Contractor will
complete the spreadsheet in its entirety and will reflect the contracted rate and discounts set
forth by the Contractor. The return of the completed spreadsheet will be mandatory.

3.4. ESTIMATE / INVOICE REQUIREMENTS

TIER 1

Upon the initial request for services, the designated City staff will provide the Contractor with a
shopping cart number (8000#). Invoices without a shopping cart number or purchase order
(440#) will be considered as unauthorized work.

Contractor should not commence in performing any work activities until a shopping cart number
or purchase order has been received verbally or electronically from the corresponding location
authorized staff.

Estimates submitted to the City shall be clear and concise.

Invoices must include the following information before processing for payment can begin. All
final invoices must be provided within twenty-four (24) hours from final quality assurance
inspection.

Invoices header must include Contractor name, address, phone number, email address, invoice
number and invoice date.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

Invoices header must include City unit number and current odometer reading.
Invoice header must include City issued shopping cart or purchase order number.

Invoices must include labor hours, contracted labor rate, and parts utilized, including part
number, part description, part quantity and part cost. All invoices must have the ability to show
individual job part mark-up or discounting to verify part pricing, in accordance with submittal
section. Invoice must also include complaint, cause, and correction narrative for each repair job
performed by vendor.

Warranty job invoices must also include complaint, cause, and correction. The job must also
include labor time, parts utilized (including part number) part description, and part quantity at a
zero cost to the City.

The City will not pay for unauthorized modifications or additions.
Contractor must invoice labor hours and part pricing in accordance with submittal section.
3.5. METHOD OF INVOICING
Invoice must be emailed in .pdf format to invoices@phoenix.gov and must include the following:
e City purchase order number or shopping cart number.
e Items listed individually by the written description and part number.
e Unit price extended and totaled.
e Quantity ordered, back ordered, and shipped.
e Applicable tax.
e Invoice number and date.
e Delivery address. Payment terms.
e FOB terms.
e Remit to address
SUPPLIER PROFILE CHANGES:

It is the responsibility of the Contractor to promptly update their profile in procurePHX at
www.phoenix.gov/procure. If Contractor’s legal identify has changed, the Procurement Officer
must be notified immediately. Failure to do so may result in non-payment of invoices and
contract termination.

3.6. VEHICLE STORAGE
TIER 1 (Service)

The Contractor(s) will be responsible for adequate and secure storage of all vehicles at no cost
to the City. The Contractor(s) will be responsible for any stolen or damaged equipment while the
vehicle(s) is in the Contractor's custody. Vehicles must be stored in a secured area, and never

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

in an area accessible to the public. The contractor will be liable for city vehicle damage or theft
while in the position of the contractor, including transport to and from city facilities.

3.7. WARRANTY REQUIREMENTS
Tier 1 (Service)

All warranty work will be completed within forty-eight (48) hours. The Contractor will warranty all
labor and parts for a minimum period of twelve (12) months. 12,000 miles or 400 hours,
whichever comes first. A “NO CHARGE” invoice will be provided for all warranty repairs
detailing failure, possible cause, parts descriptions, and detail description of labor performed.

If a City supplied part is provided for repairs, and it’s determined the city supplied part
prematurely failed, the contractor shall bill the city for all time and materials invested to
determine such failure, up to $300.00. The contractor shall gain approval from shop
management on any cost to determine or remedy such failures above $300.00. The city part
must be returned with the vehicle to receive payment. Outside of this exception, the above
warranty terms shall prevail.

All warranty work shall be completed within four (4) business days.

The Contractor shall maintain a sufficient supply of products and/or parts to adequately support
the contracted repairs.

The Contractor will guarantee that stock of product specified in this agreement is available
locally.

The Contractor will be solely responsible for any future repairs or consequential damages
related to failed or improper services performed under this agreement.

3.8. THIRD PARTY WARRANTY ADMINISTRATION
(TIER 1 ONLY)

The Manufacturer and/or Contractor will accept, and process warranty claims from a contracted
third-party warranty administrator on behalf of the City of Phoenix. Contractor will authorize
payment to City of Phoenix for all warranties approved and equivalent.

Tier 2 (Parts)

Contractor will guarantee all products supplied under this contract for a minimum of 12 months
against defects in material and workmanship. The 12-month warranty shall begin from the
installation of the component by city staff, and not from time of purchase.

Freight charges, restocking fees from manufacturer, process, and handling to include parts and
labor will be borne by the Contractor.

Contractor shall issue a credit memo to the City of Phoenix, Auto Stores, for failed
products. Replacement parts will not be accepted under this contract.

Parts will be OEM approved only and will maintain all factory warranty qualifications. If parts
are used in conjunction with a warranty repair, they will be supplied at no cost to the City.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

All merchandise involved in warranty claims will be picked up from City locations by the
Contractor on a weekly basis. Warranty claims must be processed within three (3) weeks of
pick up. All Contractor disputed warranty claims will be brought to the attention of the Fleet
Services Division's Warranty Department within that same three (3) week period in writing. If
the claim is not disputed in the allotted period, the claim shall be deemed approved and payable
to the City.

3.9. CONTRACTOR QUALIFICATIONS
TIER 1 (SERVICE)

The contractor must have been an OEM manufacturer/distributor for a minimum of five (5)
consecutive years and be completely familiar with the specified requirements and methods
needed for proper performance of this contract.

The Contractor must employ a minimum of three (3) service technicians. Each technician will
have a minimum of two years’ experience providing maintenance and repair for the type of
equipment being repaired. Unqualified employees are not permitted to provide assistance of any
kind under this contract.

Contractor(s) shall utilize properly qualified employees in the performance of this contract. A
qualified employee is defined as one who is trained and capable of properly, safely, and
promptly providing services requested in association with this contract. Employees must have a
minimum of two years’ experience performing OEM manufacturer repair services. Unqualified
employees are not permitted to provide assistance of any kind under this contract.

A high level of customer service and professionalism is a priority for the City. Contractor and
Contractor employees shall provide services in a professional, business-like, and efficient
manner providing the highest level of assistance, service, and courtesy to patrons of the
facility. Complaints must be responded to quickly and the City’s representative must be
informed of all customer issues and resolutions immediately. All communications shall be
through the City representative.

If the City determines that the qualifications, actions or conduct of any Contractor(s) employee
have violated this agreement or are otherwise detrimental to the City, a written notice will be
issued to the Contractor. Upon receipt of such notice that Contractor must promptly provide a
qualified replacement person(s) to provide services under this contract. Examples of such
conduct include performing unsatisfactory services, poor customer service, interfering with
operation of City fleet or inappropriate behavior towards City employees, customers, and other
Contractor(s) or Subcontractor(s).

The facility must have a parts room with sufficient stock to complete routine service and repair
procedures. The stock turn rates should be established to meet an 85% stock fill rate from
inventory.

Each repair location must be able to accommodate and secure vehicles while in the process of
being repaired or waiting for repairs or parts delivery. The Contractor(s) will be responsible for
any stolen or damaged equipment while the vehicle(s) is in the Contractor's custody. Vehicles
must be stored in a secured area, and never in an area accessible to the public. The contractor
will be liable for city vehicle damage or theft while in the position of the contractor, including
transport to and from city facilities.

Request for Agreement #RFA 24-FSD-028
Title: ORIGINAL EQUIPMENT MANUFACTURER(OEM) PARTS AND SERVICE

TIER 2 (PARTS)

Contractor shall utilize properly qualified employees in the performance of this contract. A
qualified employee is defined as one who is trained and capable of properly, safely, and
promptly providing services requested in association with this contract. Unqualified employees
are not permitted to provide assistance of any kind under this contract.

If the City determines that the qualifications, actions or conduct of any Contractor employee has
violated this agreement or is otherwise detrimental to the City, a written notice will be issued to
the Contractor. Upon receipt of such notice the Contractor shall promptly provide a qualified
replacement person(s) to provide services under this contract. Examples of such conduct
include performing unsatisfactory services; poor customer service; interfering with operation of
City fleet; or inappropriate behavior towards occupants, other contractors, or subcontractors.

3.10. PART AND MARTIALS SUPPLY REPORTING (TIER 2 ONLY)

Upon request, the Contractor shall provide an accurate and complete report detailing all orders
placed under this contract. This report shall include:

e The date the order was placed.

e Description of the part and accessory (Manufacturer's Part Number, Catalog Date, List
Price, Discount Price).

e Carrier shipping information.
e The date the order is complete.
e City reference order number.

Parts and materials provided under this contract shall be in conformance with all provisions of
this agreement; legal statutes; code requirements; applicable OEM specifications; and Fleet
Services Policies.

The City reserves the right to exchange or receive vendor credit, on an equal dollar basis, all
unused parts, in their original packaging, and of the same manufacturer and brand stocked by
the contract vendor. The Contractor will credit returned parts at the current City cost (at time of
exchange) less a maximum 10% restocking charge. Credits will not be required for parts that
have become obsolete more than 18 months after the original date of acceptance of that part by
the City. Parts to be exchanged will be those parts, which have become obsolete to the City.
The City will be the sole judge of obsolescence.

The City will not supply invoices for returns on stock clean ups. Stock clean ups are done on as
needed basis, but no more frequently than twice a year per year delivery location.