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1f. Approval of Fire Department Joint Purchasing Contracts0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Laurie Hokkanen, Assistant City Manager j jl.. DATE: September 30, 2011 Q\J RE: Joint Purchasing for Fire Department 1; PROPOSED MOTION The Chanhassen City Council approves the Third Amended and Restated Joint & Cooperative for Public Safety Purchasing and HGACBuy Interlocal Contract. Approval requires a majority vote. BACKGROUND The Chanhassen Fire Department has the opportunity to participate in two joint purchasing contracts. The first is through a group of Minnesota municipalities, including Bloomington, Brooklyn Park, Eden Prairie, Edina, Hopkins, Saint Louis Park, and Minnetonka. The Chanhassen Fire Department has been involved in the same group through the Southwest Fire Mutual Aid Association, but has never executed the Joint Powers Agreement that would permit purchasing through their contracts. The second group is HGACbuy, a Texas based cooperative that is open to municipalities across the U.S. The City of Edina has made purchases through this group. Joint purchasing contracts serve to simplify the process while obtaining competitive prices for purchases that are similar across many agencies. Through the contracts, we have access to volume purchasing and discounts. The cooperative /group takes responsibility for writing technical specifications, eliminating the need to hire consultants for that purpose. The cooperative /group absorbs the costs associated with publishing legal notices. All requirements for competitive bidding are satisfied. The City currently uses similar arrangements when purchasing items, such as vehicles, off of the State of Minnesota contract. By entering into the attached Joint Powers agreements, the City will have the Web Site opportunity to purchase, but will not be obligated to do so. There are no fees to www.ci.chanhassen.mn.us join. G: \Admin \LH \Fire DepartmentUoint Powers and Purchasing Staff Report.doc Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow RECOMMENDATION Staff recommends that the City Council approve the Third Amended and Restated Joint & Cooperative for Public Safety Purchasing and HGACBuy Interlocal Contract. ATTACHMENTS 1. Third Amended and Restated Joint & Cooperative for Public Safety Purchasing 2. HGACBuy Interlocal Contract G: \Admin \LH \Fire Department\Joint Powers and Purchasing Staff Report.doc THIRD AMENDED AND RESTATED JOINT & COOPERATIVE AGREEMENT FOR PUBLIC SAFETY PURCHASING 1. Purpose This Agreement is made pursuant to Minnesota Statutes 471.59 which authorizes the joint and cooperative exercise of governmental powers common to contracting parties. The intent of this Agreement is to make available joint public safety purchasing and leasing to the governmental agencies who are parties to this Agreement. The intent of this agreement is to also replace and rescind the Amended and Restated Joint & Cooperative Agreement For The Acquisition and Use of SCBA executed and approved by the parties in March, April and May, 2009, and the Second Amended and Restated Joint & Cooperative Agreement For The Acquisition and Use of Firefighting Equipment executed and approved by some or all of the parties in August and September 2010 ( "Prior Agreements "). 2. Parties The initial parties to this Agreement are the cities of Bloomington, Brooklyn Park, Eden Prairie, Edina, Hopkins, Saint Louis Park, and Minnetonka, all of which are municipal corporations and subdivisions of the state of Minnesota. Additional governmental agencies may become parties to this Agreement by adopting a resolution approving this Agreement and sending an original execution page and a certified copy of the resolution to the secretary of the Operating Committee established below. The secretary of the Operating Committee must maintain a current list of the parties to this Agreement and must notify the contact person for each party whenever there is a change in the parties to this Agreement. 3. Operating Committee 3.1. Creation. There will be an Operating Committee (the "Committee ") to administer this Agreement. The Committee will consist of one representative appointed by each of the parties to the Agreement. In the absence of a specific appointment, a party's representative will be its fire chief. Each member of the Committee is entitled to one vote. 3.2. Procedural Rules. The Committee must adopt procedural rules to govern its operations. Public Safety Purchasing Joint Agreement Page 2 3.3. Officers. The Committee will select from its members a chair to conduct meetings, a vice -chair to act in the place of the chair, and a secretary to keep the records of the Committee. 3.4. Powers, Duties. The Committee has the authority and responsibility to administer this Agreement on behalf of the parties and to take all necessary actions allowed by law to implement its terms. 4. Procedures 4.1. Acquisition. The Committee will take the necessary actions for obtaining contracts for the purchase or lease of public safety uniforms, supplies, equipment, and other items, and for contracting for services, as selected by the Committee. The Committee will comply with the Municipal Contracting Law, including the preparation of specifications and requests for proposals. The Committee will designate one of the member parties to act as the lead agency for selecting the contractor for a contract, based on the recommendation of the Committee. 4.2. Contract Terms. The contract with each selected contractor (the "Contract ") must provide that each party to this Agreement will have the option to order items directly from each selected contractor and make payments directly to the contractor. No party will have any responsibility for paying for the items ordered by any other party. When appropriate, the Contract may include an option for the contractor to maintain and certify designated equipment. The Contract must provide the terms of payment to the contractor for this service. 4.3. Rules for Use. When appropriate, the Committee will establish rules and procedures for the parties' use of items acquired pursuant to this Agreement, including determining the responsibility for damage to, or loss of, the items. 5. Responsibility for Employees All persons engaged in the work to be performed by a party under this Agreement may not be considered employees of any other party for any purpose, including worker's compensation and other claims that may or might arise out of the employment context on behalf of the employees. All claims made by a third party as a result of any act or omission of a party's employees while engaged on any of the work performed under this Agreement are not the obligation or responsibility of any other party. Each party is responsible for injuries or death of its own Public Safety Purchasing Joint Agreement Page 3 personnel. Each party will maintain workers' compensation insurance or self - insurance coverage, covering its own personnel while they are providing services under this Agreement. Each party waives the right to sue any other party for any workers' compensation benefits paid to its own employee or volunteer or their dependants, even if the injuries were caused wholly or partially by the negligence of any other party or its officers, employees, or volunteers. 6. Indemnification Each party agrees to defend, indemnify, and hold harmless the other parties against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement and caused by or resulting from negligent acts or omissions of the party and /or those of its employees or agents. Under no circumstances, however, may a party be required to pay on behalf of itself and another party any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to any one party. The limits of liability for two or more parties may not be added together to determine the maximum amount of liability for one party. The intent of this paragraph is to impose on each party a limited duty to defend and indemnify each other subject to the limits of liability under Minnesota Statutes Chapter 466. The purpose of creating this duty to defend and indemnify is to simplify the defense of claims by eliminating conflicts among the parties and to permit liability claims against both parties from a single occurrence to be defended by a single attorney. 7. Duration This agreement will be in force from the date of execution by at least two parties and notification to the secretary of the Operating Committee. Any party may withdraw from this Agreement upon 30 days written notice to the other party or parties to the Agreement. Upon execution of all of the parties to the Prior Agreements, the Prior Agreements will terminate. 8. Execution A separate execution page is provided for each party. [Signature pages follow] Execution Page for the Third Amended and Restated Joint & Cooperative Agreement For Public Safety Purchasing The party listed below has read, agreed to and executed this Agreement on the date indicated. Date Entity B y — Title And Title THE Asr PuRfMAISING X'X0' °° INTERLOCAL CONTRACT ILC FOR COOPERATIVE PURCHASING No.: Permanent Number assigned by RGAC THIS INTERLOCAL CONTRACT (Contract), made and entered into pursuant to the Texas Interlocal Cooperation Act, Chapter 91, Texas Government Code (the Act), by and between the Houston- Galveston Area Council, hereinafter referred to as "H -GAC," having its principal place of business at 3555 Timmons Lane, Suite 120, Houston, Texas 77027, and * , a local government, a state agency, or a non - profit corporation created and operated to provide one or more governmental functions and services, hereinafter referred to as End User, having its principal place of business at * WITNESSETH WHEREAS , H -GAC is a regional planning commission and political subdivision of the State of Texas operating under Chapter 391, Texas Local Government Code; and WHEREAS , pursuant to the Act, H -GAC is authorized to contract with eligible entities to perform governmental functions and services, including the purchase of goods and services; and WHEREAS , in reliance on such authority, H -GAC has instituted a cooperative purchasing program under which it contracts with eligible entities under the Act; and WHEREAS, End User has represented that it is an eligible entity under the Act, that its governing body has authorized this Contract on (Date), and that it desires to contract with H -GAC on the terms set forth below; NOW, THEREFORE , H -GAC and the End User do hereby agree as follows: ARTICLE 1: LEGAL AUTHORITY The End User represents and warrants to H GAC that (1) it is eligible to contract with UGAC under the Act because it is one of the following: a local government, as defined in the Act (a county, a municipality, a special district, or other political subdivision of the State of Texas or any other state), or a combination of two or more of those entities, a state agency (an agency of the State of Texas as defined in Section 771.002 of the Texas Government Code, or a similar agency of another state), or a non - profit corporation created and operated to provide one or more governmental functions and services, and (2) it possesses adequate legal authority to enter into this Contract. ARTICLE 2: APPLICABLE LAWS H -GAC and the End User agree to conduct all activitiesunder this Contract in accordance with all applicable rules, regulations,and ordinances and laws in effect or promulgated during the term of this Contract. ARTICLE 3: WHOLE AGREEMENT This Contract and any attachments, as provided herein, constitute the complete contract between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters herein. ARTICLE 4: PERFORMANCE PERIOD The period of this Contract shall be for the balance of the fiscal year of the End User, which began * and ends * . This Contract shall thereafter automatically be renewed annually for each succeeding fiscal year, provided that such renewal shall not have the effect of extending the period in which the End User may make any payment due an H- GAC contractor beyond the fiscal year in which such obligation was incurred under this Contract. ARTICLE 5: SCOPE OF SERVICES The End User appoints H -GAC its true and lawful purchasing agent far the purchase of certain products and services through the H GAC Cooperative Purchasing Program. End User will access the Program through HGACBuy.com by submission of any duly executed purchase order, in the form prescribed by H -GAC to a contractor having a valid contract with H -GAC. All purchases hereunder shall be in accordance with specifications and contract terms and pricing established by H -GAC. Ownership (title) to products purchased through H -GAC shall transfer directly from the contractor to the End User. (over) ARTICLE 6: PAYMENTS H -GAC will confirm each order and issue notice to contractor to proceed. Upon delivery of goods or services purchased, and presentation of a properly documented invoice, the End User shall promptly, and in any case within thirty (30) days, pay H -GACs contractor the full amount of the invoice. All payments for goods or services will be made from current revenues available to the paying party. In no event shall H GAC have any financial liability to the End User for any goods or services End User procures from an H- GAC contractor. ARTICLE 7: CHANGES AND AMENDMENTS This Contract may be amended only by a written amendment executed by both parties, except that any alterations, additions, or deletions to the terms of this Contract which are required by changes in Federal and State law or regulations are automatically incorporated into this Contract without written amendment hereto and shall become effective on the date designated by such lax or regulation. H -GAC reserves the right to make changes in the scope of products and services offered through the H -GAC Cooperative Purchasing Program to be performed hereunder. ARTICLE 8: TERMINATION PROCEDURES H -GAC or the End User may cancel this Contract at any time upon thirty (30) days written notice by certified snail to the other party to this Contract. The obligations of the End User, including its obligation to pay H -GACs contractor for all costs incurred under this Contract prior to such notice shall survive such cancellation, as well as any other obligation incur under this Contract, until perfonned or discharged by the End User. ARTICLE 9: SEVERABILITY All parties agree that should any provision of this Contract be determined to be invalid or unenforceable, such determination shall not affect any other term of this Contract, which shall continue in full force and effect. ARTICLE 10: FORCE MAJEURE To the extent that either party to this Contract shall be wholly or partially prevented from the performance within the term specified of any obligation or duty placed on such party by reason of or through strikes, stoppage of labor, riot, fire, flood, acts of war, insurrection, accident, order of any court, act of God, or specific cause reasonably beyond the party's control and not attributable to its neglect or nonfeasance, in such event, the time for the performance of such obligation or duty shall be suspended until such disability to perform is removed; provided, however, force majeure shall not excuse an obligaion solely to pay funds. Determination of force majeure shall rest solely with H -GAC. ARTICLE 11: VENUE Disputes between procuring party and Vendor are to be resolved in accord with the law and venue rules of the State of purchase. THIS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS FOLLOWS: Name of End user (local government, agency, or non -profit corporation) * Mailing Address * City State ZIP Code *By: Signature of chief elected or appointed official * Typed Name & Title of Signatory Date Houston - Galveston Area Council 3555 Timmons Lane, Suite 120, Houston, TX 77027 By: Executive Director Attest: Manager Date: *Denotes required fields rev. 03/11 *Request for Information To expedite service please complet e the following blanks relevant to your agencys administrative /elective personnel and return the completed form to H -GAC. Cooperative Purchasing Program, P.O. Box 22777 1. louston, TX 77227 -2777 Name of End User Agency : County Name : (Municipality / County / District / etc.) Mailing Address : (Street Address /P.O. Box) (City) (State) (ZIP Code) Main Telephone Number F AX Number: Physical Address : (Street Address, ifdifferent from mailing address) (City) (State) (ZIP Code) Web Site Address: Authorized Official: Title: (City manager / Executive Director / etc.) Ph No.: Mailing Address: Fx No.: (Street Address /P.O. Box) E -Mail Address (City) (State) (ZIP Code) Official Contact: Title: (Purchasing Agent/Auditor etc.) Ph No.: Mailing Address: Fx No.: (Street Address /P.O. Box) Email Address (City) (State) (ZIP Code) Official Contact: Title: (Public Works Director/Police Chief etc.) Ph No.: Mailing Address: Fx No.: (Street Address /P.O. Box) Email Address (City) (State) (ZIP Code) Official Contact: Mailing Address: (EMS Director /Fire Chief etc.) (Street Address /P.O. Box) Title: Ph No.: Fx No.: Email Address (City) (State) (ZIP Code)