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R-2023-125 - 4/27/2023 RESOLUTION NO. R-2023-125 WHEREAS, the City of Round Rock ("City") desires to purchase press components and repair parts; and WHEREAS, Section 252.022(4) of the Texas Local Government states that expenditures for items available from only one source are exempt from competitive bidding requirements; and WHEREAS, Alfa Laval Inc. is the sole source provider of the goods and services being purchased, as shown in Exhibit"A," and incorporated herein for all purposes; and WHEREAS, the City desires to enter into an Agreement with Alfa Laval Inc. to purchase press components and repair parts, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Agreement for the Purchase of Press Components and Repair Parts with Alfa Laval Inc., a copy of same being attached hereto as Exhibit `B" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 27th day of April, 2023. CRAI MOR AN, Mayor City of Round Rock, Texas ATTEST: MEAGAN S I S, Citf Clerk 0112.20232 485"947-6765 EXHIBIT „A„ City of Round Rock Purchasing J��U*NO Justification Form ROCK TEXAS,,.w a.,sw Date: 12/14/22 Department Utilities and Environmental Services Name: To: Purchasing Requestor Michael De Santis Name: Phone +1 (512) 218-2005 Number: Instructions: Complete this form for all purchases that will exceed $3,000 and will be exempted from competition as prescribed in Texas Local Government Code Chapter 252.022. Attach additional information as needed to support the exemption request. The City declares the competitive bidding procedures in Texas Local Government Code Chapter 252 to be exempt for this procurement. This Justification Form is executed and filed with the Purchasing Division as follows: 1. The undersigned is authorized and certifies that the following exemption is applicable to this purchase. Please check the criteria listed below that applies to this purchase request: Sole Source (check one) R./ Items that are available from only one source because of patents, copyrights, secret process, or natural monopolies. ❑Films, manuscripts, or books. ❑Gas, water, and other utilities. ❑✓ Captive replacement parts or components for equipment []Books, papers, and other library materials for a public library that are available only from the persons holding the exclusive rights to the materials ❑Goods Purchased for Subsequent Retail Sale o A procurement of goods being purchased for subsequent resale by the City. ❑Public Calamity o A procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the property of a municipality. ❑Public Health and Safety o A procurement necessary to preserve or protect the public health or safety of the municipality's residents. ❑ Unforeseen Damage o A procurement necessary because of unforeseen damage to public machinery, equipment, or other property. 11Page ❑ Personal Professional or Planning Services o A procurement of personal, professional, or planning services ❑ Other o Cite the applicable Texas Local Government Code Chapter 252 exemption in the justification box below. 2. Justification: Describe in detail below why an exemption according to Section 252.022 of the Local Government Code is being submitted for this purchase. (Attach additional pages if needed) All clamshell belt filter presses used by Utilities are Alfa Laval. All components and repair parts needed to maintain the presses are only available through Alfa Laval. 3. Attach and submit the following documentation that supports this justification as applicable. • Vendor's proposal/quote. • If sole source a Manufacturer's letter declaring the purchase is sole source and why. The letter should be no older than 6 months old and signed by an authorized representative on company letterhead. 4. Because the above facts and supporting documentation the City of Round Rock exempts this procurement from LGC Chapter 252 and intends to contract with: Vendor Name: Alfa Laval Inc. Description: Press IN and Repair Parts 5. Check the purchase type and fill in the dollar amount and purchase term as applicable ❑This is a one-time purchase request for$ ❑✓ This is a term contract request for 60 (#months) in the amount of$ 350,000.00 Recommended by: > e.v.PI&s 12/14/2022 Requestor Date 7dh#ff2aJ`f Approved by: `Joh.14.pS(D.,1,202214:07CST) 12 IS 2022 Department Manager, Asst Director, or Director Date Purchasing Office 12 15/ /2022 Review: Alien Reich(Dec 15,202 Purchaser Date Purchasing Office 12/15/2022 Management Review: Davie Carter(De 1S,202214:33 can Purchasing Manager(over $50,000) Date 2 1 P a g e Date: December 14, 2022 Alfa Laval Inc. The City of Round Rock 10470 Deer Trail Dr 3939 East Palm Valley Blvd. Houston,TX 77038 Round Rock,TX 78665 USA Tel: +1 800-362-9041 Fax:+1 281-449-1324 www.alfalaval.us www.as-h.com All parts are provided and many exclusively manufactured by Alfa Laval,Inc.the Original Equipment Manufacturer of your equipment. Whereby Alfa Laval purchased Ashbrook Simon-Hartley Operations L.P.and Ashbrook Simon-Hartley is now doing business as Alfa Laval,Alfa Laval from henceforth is the Original Equipment Manufacturer of the Klampress®, WinklepressO, and AquabeltO. Thus,we are the sole source provider for O.E.M.replacement parts of all Sharpies and Alfa Laval Decanter Centrifuges including the PM75000AD Centrifuge.All after sales activities including sales of spare parts,in-house repairs,field service,upgrades,retrofits,etc.must be sole source direct with Alfa Laval spare parts,repair or field service for the watewater business in the state of NV. Alfa Laval,Inc.continues to develop and bring technology to our industry. Due to the sensitive nature of Alfa Laval,Inc.technology our equipment and most replacement parts are either proprietary or patented,as each is designed specifically for your equipment,the application,and expected use;therefore,others cannot legally manufacture our equipment or offer Alfa Laval,Inc.replacement parts. Constant investment in research and development,a commitment to quality,and improving our new equipment and our equipment currently in operation around the world, allows Alfa Laval, Inc.to bring the latest developments in technology to our industry and clients. This includes patented or proprietary items such as chicanes,wedge adjustments,cylinders,hydraulic systems,bearing housings,rollers,steering and tension systems,and so on.An illustration of this commitment is our quality assurance program;Alfa Laval, Inc.is the only manufacturer within our specific industry which is certified to ISO 9001 quality standards. Thank you for requesting this information and the opportunity to fully explain our commitment.If you have any questions,I can be reached 1- 800-547-7273 or direct line 281-985-4472. Sincerely, ALFA LAVAL INC. Laguna Fletcher Logistics Parts Coordinator Ashbrook Simon-Hartley Direct Line:281.985.4472 Tel direct:+1-866-253-2528 laguanza.fletcher()alfalaval.com Classified by Alfa Laval as:Business Exhibit"A" January 26, 2023 Alfa Laval Inc. 10470 Deer Trail Drive Houston,TX 77038 USA Tel:+1 713-934-3160 Fax:+1 713-934-3179 www.alfalaval.us City of Round Rock Texas Attn: Purchaser Allen Reich, CPPB Re: Current discount% on spare parts Allen, We are glad to share with you that your current discount amount for spare parts/ parts is 27.69%. This discount will continue throughout the contract term. Please reach out with any questions you may have regarding this information. Best Regards, Marc Arquit Regional Sales Manager Water Separation Sales Classified by Alfa Laval as:Business EXHIBIT „B» .01 CITY OF ROUND ROCK AGREEMENT FOR THE PURCHASE OF PRESS COMPONENTS AND REPAIR PARTS WITH ALFA LAVAL INC. THE STATE OF TEXAS § CITY OF ROUND ROCK § KNOW ALL BY THESE PRESENTS: COUNTY OF WILLIAMSON § COUNTY OF TRAVIS § THAT THIS AGREEMENT for the purchase of press components and repair parts (referred to herein as the "Agreement'), is made and entered into on this the day of the month of , 2023 by and between the CITY OF ROUND ROCK, a Texas home-rule municipality, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299 (referred to herein as the "City"), and ALFA LAVAL INC., whose offices are located at 5400 International Trade Drive, Richmond,Virginia 23231 (referred to herein as "Vendor"). RECITALS: WHEREAS, City desires to purchase press components and repair parts; and WHEREAS, Section 252.022(4) of the Texas Local Government Code states that expenditures for items available for only one source are exempt from competitive bidding requirements; and WHEREAS, Vendor is the sole source provider of the goods and services being purchased pursuant to this Agreement; and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties, and obligations; NOW, THEREFORE,WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 DEFINITIONS A. Agreement means the binding legal contract between City and Vendor whereby City agrees to buy specified goods and/or services and Vendor is obligated to provide said goods/services. The Agreement includes any exhibits, addenda, and/or amendments thereto. 4870-9785-5825/ss2 B. City means the City of Round Rock, Williamson and Travis Counties, Texas. C. Effective Date means the date upon which the binding signatures of both parties to this Agreement are affixed. D. Force Majeure means acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind from the government of the United States or the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, restraint of the government and the people, civil disturbances, explosions, or other causes not reasonably within the control of the party claiming such inability. E. Goods and services mean the specified services, supplies, materials, commodities, or equipment. 2.01 EFFECTIVE DATE AND TERM A. This Agreement shall be effective on the date it has been signed by both parties hereto, and shall remain in full force and effect, unless and until it expires by operation of the term stated herein, or until terminated as provided herein. B. The term of this Agreement shall sixty (60) months from the effective date of the Agreement. City reserves the right to review the relationship at any time, and may elect to terminate this Agreement, with or without cause, or may elect to continue. 3.01 CONTRACT DOCUMENTS AND EXHIBITS City selected Vendor to supply the goods as outlined in Exhibit "A," attached hereto and incorporated herein by reference. The goods which are the subject of this Agreement are described in Exhibit "A" and, together with this Agreement, comprise the total Agreement and they are fully a part of this Agreement as if repeated herein in full. 4.01 ITEMS AWARDED When taken together with the appended exhibit, this Agreement shall evidence the entire understanding and agreement between the parties and shall supersede any prior proposals, correspondence or discussions. Vendor shall satisfactorily provide all goods described herein and the attached Exhibit "A" at the sole request of the City. Vendor shall provide goods in accordance with this Agreement, in accordance with the appended exhibits, in accordance with due care, and in accordance with prevailing industry standards for comparable services. 2 5.01 COSTS A. City agrees to pay for goods during the term of this Agreement at the pricing set forth in Exhibit"A." B. The City is authorized to pay the Vendor an amount not-to-exceed Seventy Thousand and No/100 Dollars ($70,000.00) per year for a total not-to-exceed amount of Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00) for the term of this Agreement. 6.01 INVOICES All invoices shall include, at a minimum, the following information: A. Name and address of Vendor; B. Purchase Order Number; C. Description and quantity of items received; and D. Delivery dates. 7.01 NON-APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may affect such termination by giving Vendor a written notice of termination at the end of its then current fiscal year. 8.01 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to Vendor will be made within thirty (30) days of the day on which City receives the performance, supplies, materials, equipment, and/or deliverables, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which City receives a correct invoice for the performance and/or deliverables or services, whichever is later. Vendor may charge interest on an overdue payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas Government Code, Section 2251.025(b); however, this Policy does not apply to payments made by City in the event: A. There is a bona fide dispute between City and Vendor, a contractor, a subcontractor or supplier about the goods delivered or the service performed that cause the payment to be late; or 3 B. The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or C. There is a bona fide dispute between Vendor and a subcontractor or between a subcontractor and its supplier about the goods delivered or the service performed that causes the payment to be late; or D. Invoices are not mailed to City in strict accordance with instructions, if any, on the purchase order or the Agreement or other such contractual agreement. 9.01 GRATUITIES AND BRIBES City may, by written notice to Vendor, cancel this Agreement without liability to Vendor if it is determined by City that gratuities or bribes in the form of entertainment, gifts, or otherwise were offered or given by Vendor or its agents or representatives to any City officer, employee or elected representative with respect to the performance of this Agreement. In addition,Vendor may be subject to penalties stated in Title 8 of the Texas Penal Code. 10.01 TAXES City is exempt from Federal Excise and State Sales Tax; therefore, tax shall not be included in Vendor's charges. 11.01 ORDERS PLACED WITH ALTERNATE VENDORS If Vendor cannot provide the goods as specified, City reserves the right and option to obtain the products or services from another supplier or suppliers. 12.01 INSURANCE Vendor shall meet all requirements required by the City as set forth on the City's website at: https://www.roundrocktexas.goy/ T-content/uploads/2014/12/corr insurance 07.20112.pdf 13.01 CITY'S REPRESENTATIVE City hereby designates the following representatives authorized to act in its behalf with regard to this Agreement: Michael De Santis SCADA Specialist Utilities and Environmental Services 3400 Sunrise Road Round Rock, Texas 78665 (512)218-2005 mdesantisna,roundrocktexas.gov 4 14.01 RIGHT TO ASSURANCE Whenever either party to this Agreement, in good faith, has reason to question the other party's intent to perform hereunder, then demand may be made to the other party for written assurance of the intent to perform. In the event that no written assurance is given within the reasonable time specified when demand is made, then and in that event the demanding party may treat such failure as an anticipatory repudiation of this Agreement. 15.01 DEFAULT If Vendor abandons or defaults under this Agreement and is a cause of City purchasing the specified goods elsewhere, Vendor agrees that it may be charged the difference in cost, if any, and that it will not be considered in the re-advertisement of the service and that it may not be considered in future bids for the same type of work unless the scope of work is significantly changed. Vendor shall be declared in default of this Agreement if it does any of the following: A. Fails to make any payment in full when due; B. Fails to fully, timely and faithfully perform any of its material obligations under this Agreement; C. Fails to provide adequate assurance of performance under the "Right to Assurance" section herein; or D. Becomes insolvent or seeks relief under the bankruptcy laws of the United States. 16.01 TERMINATION AND SUSPENSION A. City has the right to terminate this Agreement, in whole or in part, for convenience and without cause, at any time upon thirty(30) days' written notice to Vendor. B. In the event of any default by Vendor, City has the right to terminate this Agreement for cause, upon ten(10) days' written notice to Vendor. C. Vendor has the right to terminate this Agreement only for cause, that being in the event of a material and substantial breach by City or by mutual agreement to terminate evidenced in writing by and between the parties. D. In the event City terminates under subsections (A) or (B) of this section, the following shall apply: Upon City's delivery of the referenced notice to Vendor, Vendor shall discontinue all services in connection with the performance of this Agreement and shall proceed to cancel promptly all existing orders and contracts insofar as such orders and contracts are chargeable to this Agreement. Within thirty (30) days after such notice of termination, Vendor 5 shall submit a statement showing in detail the goods and/or services satisfactorily performed under this Agreement to the date of termination. City shall then pay Vendor that portion of the charges, if undisputed. The parties agree that Vendor is not entitled to compensation for services it would have performed under the remaining term of the Agreement except as provided herein. 17.01 INDEMNIFICATION Vendor shall defend (at the option of City), indemnify, and hold City, its successors, assigns, officers, employees and elected officials harmless from and against all suits, actions, legal proceedings, claims, demands, damages, costs, expenses, attorney's fees, and any and all other costs or fees arising out of, or incident to, concerning or resulting from the fault of Vendor, or Vendor's agents, employees or subcontractors, in the performance of Vendor's obligations under this Agreement, no matter how, or to whom, such loss may occur. Nothing herein shall be deemed to limit the rights of City or Vendor (including, but not limited to the right to seek contribution) against any third party who may be liable for an indemnified claim. 18.01 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES A. Vendor, its agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and national boards,bureaus and agencies. B. In accordance with Chapter 2271, Texas Government Code, a governmental entity may not enter into a contract with a company for goods and services unless the contract contains written verification from the company that it: (1) does not boycott Israel; and(2)will not boycott Israel during the term of the contract. The signatory executing this Agreement on behalf of Vendor verifies Vendor does not boycott Israel and will not boycott Israel at any time during the term of this Agreement. C. In accordance with 2274, Texas Government Code, a governmental entity may not enter into a contract with a company with at least ten (10) full-time employees for a value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract has a provision verifying that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The signatory executing this Agreement on behalf of Vendor verifies Vendor does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, and it will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. D. In accordance with 2274, Texas Government Code, a governmental entity may not enter into a contract with a company with at least ten (10) full-time employees for a value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract has a provision verifying that it: (1) does not boycott energy companies; and (2) will not boycott 6 energy companies during the term of this Agreement. The signatory executing this Agreement on behalf of Vendor verifies Vendor does not boycott energy companies, and it will not boycott energy companies during the term of this Agreement. 19.01 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party shall assign, sublet or transfer any interest in this Agreement without prior written authorization of the other party. 20.01 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. Notice to Vendor: Alfa Laval Inc. 5400 International Trade Drive Richmond,VA 23231 Notice to City: City Manager Stephanie L. Sandre, City Attorney 221 East Main Street AND TO: 309 East Main Street Round Rock, TX 78664 Round Rock, TX 78664 Nothing contained herein shall be construed to restrict the transmission of routine communications between representatives of City and Vendor. 21.01 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 7 22.01 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between Vendor and City. This Agreement may only be amended or supplemented by mutual agreement of the parties hereto in writing, duly authorized by action of the City Manager or City Council. 23.01 DISPUTE RESOLUTION City and Vendor hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14)or any applicable state arbitration statute. 24.01 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 25.01 MISCELLANEOUS PROVISIONS Standard of Care. Vendor represents that it employs trained, experienced and competent persons to perform all of the services, responsibilities and duties specified herein and that such services, responsibilities and duties shall be performed in a manner according to generally accepted industry practices. Time is of the Essence. Vendor understands and agrees that time is of the essence and that any failure of Vendor to fulfill obligations for each portion of this Agreement within the agreed timeframes will constitute a material breach of this Agreement. Vendor shall be fully responsible for its delays or for failures to use best efforts in accordance with the terms of this Agreement. Where damage is caused to City due to Vendor's failure to perform in these circumstances, City may pursue any remedy available without waiver of any of City's additional legal rights or remedies. Force Majeure. Neither City nor Vendor shall be deemed in violation of this Agreement if it is prevented from performing any of its obligations hereunder by reasons for which it is not responsible as defined herein. However, notice of such impediment or delay in performance must be timely given, and all reasonable efforts undertaken to mitigate its effects. 8 Multiple Counterparts. This Agreement may be executed in multiple counterparts, any one of which shall be considered an original of this document: and all of which, when taken together, shall constitute one and the same instrument. IN WITNESS WHEREOF, City and Vendor have executed this Agreement on the dates indicated. City of Round Rock,Texas Alfa La7 .Ll Bv: Bv: ��('1--' Printed Name: Printed me: �o ,n W �a Title: Title: .ter I Date Signed: Date Signed: Z Attest: By: Meagan Spinks, City Clerk For City,Approved as to Form: By: Stephanie L. Sandre, City Attorney 9 Exhibit "A" January 26, 2023 Alfa Laval Inc. 10470 Deer Trail Drive Houston,TX 77038 USA Tel: +1 713-934-3160 Fax: +1 713-934-3179 www.alfalaval.us City of Round Rock Texas Attn: Purchaser Allen Reich, CPPB Re: Current discount % on spare parts Allen, We are glad to share with you that your current discount amount for spare parts/ parts is 27.69%. This discount will continue throughout the contract term. Please reach out with any questions you may have regarding this information. Best Regards, Marc Arquit Regional Sales Manager Water Separation Sales Classified by Alfa Laval as:Business