HomeMy WebLinkAboutC25480 - Water Purification SystmsCITY OF PALM DESERT
BUILDING MAINTENANCE DEPARTMENT
STAFF REPORT
REQUEST: Award Contract to Pure Water Technology for Reverse Osmosis
Drinking Water Purification Systems at the Civic Center, Corporation
Yard, and Visitors Center
SUBMITTED BY: David Flint, Building Maintenance Supervisor
APPLICANT: Pure Water Technology
34 W Colton Avenue
Redlands, CA 92374
Phone: (909) 798-7775
Fax: (909) 798-3559
DATE: August 24, 2006
CONTENTS: Contract Proposal
Recommendation:
By Minute Motion: Award Contract No. C25480 for six reverse osmosis
drinking water systems for the Civic Center, Corporation Yard, and Visitors
Center to Pure Water Technology of Redlands, California, in the amount of
$3801.36 annually. Funds are available in the Building
Operation/Maintenance Account No. 110-4340-413.33-10.
Discussion:
Staff requested bids and advertised for six new reverse osmosis drinking water systems
on June 9, 2006. The new systems will be at the following locations:
■ (2) Pubic Works Employee Lounge
■ (1) Administration Building
■ (2) Corporation Yard
■ (1) Visitors Center
Currently, there are no purified drinking water systems at the Corporation Yard and
Visitors Center. The Public Works Department has one machine, but it cannot provide
the volume of cold water needed for the demand, thus requiring a second machine.
Contract No. C25480
Staff Report
Reverse Osmosis Water Systems
Page 2 of 2
August 24, 2006
The current reverse osmosis provider is Arrowhead. Their service is lacking due to their
failure to change filters on a timely basis. However, they were invited to bid, but failed to
respond.
Proposals were received from the following firms:
Pure Planet Water — (6) Vertex 3000
Systems at $1551mo. plus $288 annual Palm Desert, CA $2148.00/yearly
service cost. (Total includes tax)
Pure Planet Water — (6) PW1 R
Systems at $316/mo. plus $588 annual Palm Desert, CA $4380.00/yearly
service cost. (Total includes tax)
Pure Water Technology — (6) PW1 R
Systems at $316.78/mo. No service Redlands, CA $3801.36/yearly
charge. (Total includes tax)
Staff reviewed the bids and considers Pure Planet Water as non -responsive because
their machine, the Vertex 3000, does no meet the bid specification requirement of
having a self -monitoring TDS (Total Dissolved Solids) feature to monitor the quality of
water.
Therefore, Staff recommends awarding the contract to Pure Water Technology in the
amount of $3,801.36/annualy to provide six PW1 R reverse osmosis machines for the
City of Palm Desert. Funds are available in the Building Operation/Maintenance
Account No. 110-4340-413.33-10.
Submitted B :
David Flint
Building Maintenance Supervisor
Approval:
Carlo L. Orte
City Manager
6;11541_1�
Paul Gibson
Director of Finance/City Treasurer
Departmepf Head:
Homer Croy
ACM for Develop ent Services
.ITY COUNCIL ACTION:
APPROVED // DENIED
.RECEIVED OTHER
MEETING DATE t
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DOES: '
,,BsENT:
ABSTAIN:
IERIFIED BY:
Original on File with City Clerk's Office
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Pure Health Solutions, Inc. ("PHSI")
120 E. Lake Street, Suite 401
Sandpoint, ID 83864
RENTAL AGREEMENT
Customer Information
Name Name
Contact Phone Number Contact
T.31-SIIII- 1:�/�1�7 Z? M
Address Address
-/W40
City, State, Zip City, State, Zip
EIN (Federal Tax ID# Required) '
Ph: 1-800-265-5167
Fax: 1-208-265-8670
Billing Information (it diiterent)
( )
Phone Number
Distributor: Pure Water Technology of the Inland Empire
City, State, Zip: P.O. Box 1799, Redlands, CA. 92373
Contact: George Squires I Phone Number (909) 798-7775
Rental Tenn
Monthly Payment
Sales Tax (%
Total Payment
lD Mos.
$ .®D
+$ -,� •70
=$ "T/0 •7e
Billing Frequency )K, Monthly []Quarterly Pmt. Method: ❑ Check ❑ Credit Card ❑ Auto Debit
Equipment Schedule (Model & Serial#)
Special Provisions:
Agreed and Accepted By:
Customer:
(Authorized Signature)
(Title)
Distributor:
IDue with Orden
Adv. Pmts. (#_� +$
Installation Fee +$
Total Due with Order =$ dd
(Name Print)
(Date)
(Authorized Signature) (Title) (Date)
Customer acknowledges having read and understood all of the terms and provisions of this Rental Agreement, including the reverse
side hereof, and agrees to be bound by all of the terms and provisions contained herein upon the execution of this Rental Agreement.
The Customer agrees this Rental Agreement is for the rental term indicated above and cannot be cancelled for any reason.
RENTAL AGREEMENT TERMS AND CONDITIONS
1. Distributor Guarantees to the Customer
(a) Upgrade Guarantee: At any time during the Agreement term, or any extension, thereof (the "Rental Period"), upon approval of additional credit,
Customer may upgrade for the difference in price, plus any termination value and installation fees, if applicable.
(b) Guarantee Fulfillment: The Customer must remain current on all rental payments before, during and after upgrades, repairs and modifications are
made.
2. Ownership of Equipment: PHSI or its assignee is the sole owner and titleholder of the Equipment during the rental period. Customer agrees to keep the
Equipment free and clear of all liens, and Customer will pay any and all taxes, filing fees, interest and penalties relating to this Agreement or the Equipment.
3. Complete Agreement: Customer agrees that no promises or Agreements have been made by PHSI or anyone else which are not part of this Agreement
and that any revisions to this Agreement must be signed by an authorized representative of PHSI and the Customer.
4. Authorized Signer: The person(s) signing this Agreement on behalf of the Customer or signing any Guaranty represents they have the authority to do so
and that no information supplied by Customer is false.
5. Liability and Insurance: Customer is responsible for any losses or injuries caused by the Equipment and due to the acts of Customer. Customer further
agrees to keep the Equipment fully insured against such losses during the term of the Agreement or any extension thereof. If PHSI or its assignee requests
proof of insurance and Customer fails to provide said proof of insurance within thirty (30) days of the request, Customer agrees to pay to PHSI or its
assignee the cost of the insurance obtained by PHSI or its assignee.
6. Location of Equipment: Customer will keep the Equipment at the location specified in the Agreement. The Distributor or an authorized agent (for
reasonable and customary charges) must perform any relocation of the Equipment.
7. PHSI Interests: Customer may not sell, transfer, encumber or assign the Equipment or this Agreement without express prior written consent of PHSI or
its assignee. PHSI may sell, transfer, encumber or assign all or part of its interests in the Equipment pd/or this agreement to its assignee. Any assignee of
PHSI will have all of PHSI's rights under this Agreement. Customer agrees that an assignee has no responsibility for the selection or satisfactory
performance of the Equipment and Customer will settle any claims, defenses and setoffs they may have directly with Distributor, PHSI or any other third
party without affecting Customer's obligations to pay rent without offset or abatement to assignee.
8. Renewal/Price Protection: After the initial rental term (or extension previously agreed to), this Agreement will renew for an additional 12 months and
annually thereafter at the same monthly rate unless Customer notifies PHSI or its assignee in writing 90 days prior to the expirof the initial term or
extension that Customer does not intend to renew this Agreement and will return the Equipment.
9. Agreement Inception and Payment Requirements: Tl:is .'� . ...,:.t .::. , :: f? �:. S 3 t ::...::: ✓_' f : ly rentals begin on the
delivery and acceptance date and continue on the same day of each month thereafter. If payment is not made within 15 days of when due, a late charge equal
to 15% of the late payment or $20, whichever is greater, will be charged for each late payment. Customer's obligation extends through the term of the rental
agreement and cannot be cancelled.
10. Payment Due Dates: PHSI (or its successors or assigns) will establish the due date for the monthly (or other periodic) payments due under this Rental
Agreement. PHSI (or its successors or assigns) will also establish the due date for the first regular payment due under this Rental Agreement.
11. Installation, Maintenance and Care: Distributor, or its authorized agent, agrees to install the Equipment in accordance with manufacturer's
specifications. Customer agrees to use and maintain the Equipment in accordance with the manufacturer's specifications. Customer will also make the
Equipment available and accessible to the Distributor or its authorized agent for maintenance.
12. UCC Filings: Customer grants PHSI (and its successors and assigns) authorization to sign and file at any Uniform Commercial Code financing
statements deemed necessary or desirable by PHSI (or its successors and assigns) to protect its interests in the Equipment.
13. Default: If Customer does not pay any amount when due, or breaches any other term of the Agreement, PHSI or its assignee, may deem Customer in
default of the Agreement, and PHSI or its assignee retains the right to exercise any and all legal remedies available by applicable laws, including, but not
limited to, repossession of the Equipment, termination of maintenance agreements, acceleration of the remaining balance due under this contract,
reimbursement of reasonable attorney fees associated with any action, repossession, or disposal of the Equipment. If any part of the Agreement is found to
be invalid, then it shall not invalidate any of the other parts, and the Agreement shall be modified as permitted by law.
14. Business Agreement: Customer agrees that this Agreement is for business purposes and will be governed by the laws of the state in which the
Equipment is located. Customer further agrees that should any legal action, suit, or proceeding be initiated by any party to this Agreement with regard to or
arising out of this Rental Agreement, or the Equipment covered hereby, such action shall be brought only in the courts of the state in which the Equipment is
located, and all parties consent to the jurisdiction of such courts as to all such actions.
15.Other Rights: Customer agrees that PHSI's or its assignee's, failure to exercise any of their rights does not prevent them from exercising them at a later
date.
Guaranty: In consideration of Customer entering into this Rental Agreement, the undersigned (Guarantor(s)), jointly and severally, unconditionally and
absolutely and irrevocably guarantees and promises to pay PHSI, or its assignee, all indebtedness and/or perform all obligations of customer owing to
PHSI, or its assignee, under the Rental Agreement (such indebtedness and obligations shall hereafter collectively be called "Obligations"), and all
extensions and renewals of the Obligations, and agree to pay all costs and reasonable attorneys fees paid by PHSI, or its assignee in collection the
Obligations and/or for enforcing the Guaranty. The undersigned's liability under this Guaranty shall in no way be affected or diminished by reason of:
(a) any renewal or modification of the Rental Agreement; (b) the acceptance by PHSI, or its assignee, of partial payments under the Rental Agreement;
(c) any extension of time which may be granted by PHSI, or its assignee, to customer; (d) any settlement, release, by operation of law or otherwise
compromise, collection or liquidation of any Obligations and/or the Equipment; or (e) by PHSI's, or its assignee, failure or delay to perfect, or to
continue the perfection of any security interest of any equipment or any other property or security which secures any Obligations of Customer, PHSI, or
its assignee, may upon Customer's default, proceed directly, without notice, against the undersigned jointly or severally to recover the amount
guaranteed, or any portion thereof, without first proceeding against Customer or anyone else or in any way resorting to any security
GUARANTOR:
Home Address:
GUARANTOR:
Home Address:
Home Phone: SSN: Home Phone: SSN:
Signature: Signature:
pHSPunff TmwFmmN-cff
I�
NON -APPROPRIATION TERMINATION RIDER
Rider attached to and made a part of that Rental Agreement, herein referred to as "Agreement", by and
between PURE HEALTH SOLUTIONS, INC., herein referred to as "Rentor" and City of Palm Desert
herein referred to as "Renter". The Provisions of the Agreement notwithstanding Rentor and Renter
mutually agree that:
Renter acknowledges that this Agreement is for a firm term of 60 months. However,
notwithstanding anything contained to the contrary in this Agreement, Rentor agrees that
Renter may terminate this Agreement at any fiscal year end, such fiscal year end being
upon thirty (30) days prior written notice to Rentor, for any one of the
following reasons:
A. Renter has exhausted all funds legally available for payments to become due
under this Agreement; or
B. Funds which have been appropriated are withheld and are not made available to
Renter.
2. Notwithstanding anything contained in the Rider, if funds are appropriated for an
immediately following fiscal year, and such funds are for the acquisition of functions or
equipment which in whole or in part are essentially the same functions the performance
of which the Equipment was rented hereunder, then such newly appropriated funds will
be used to satisfy the payment obligations pursuant to this Agreement.
3. Upon the expiration of the notice period provided for herein, and only in the event that
Section 2 hereof is inapplicable, Renter's obligations under this Agreement shall
terminate, provided that Renter has made all payments required to the date of
termination, and further provided that all other obligations of the Renter including the
obligations to return the Equipment have been satisfied.
4. Renter represents and covenants it is a State or a political subdivision or agency thereof
and the interest portion of the Rental payment is excludable from Rentor's federal income
tax. The execution delivery and performance by Renter hereunder have been duly
authorized by all necessary action on the part of the Agreement. Renter will not do or
cause to be done any act which will cause the interest portion of the Rental payments to
be includable in Rentor's Federal Income Tax.
Executed as of the day of , 20
BY: BY:
(Authorized Signature - Rentor) (Authorized Signature - Renter)
(Title) (Title)
A
Customer Care
Guarant�,M, -
.-
"Our zrtissioiz is toyrollide sitperior sl1ste7tzs by tztirzizlg state-of-the-
art techzT.ofogy azi.d giiaCit y zrzateria[s. I1'i.t( iii.aintaini-ng a high
(eveCof custoj)ier seri�ice....ive cafl this haviztg "Pit.re _ isiozz.."
It's simple, Pure Water Technology is so confident of the performance of its systems
that we guarantee complete satisfaction from the date of installation
throughout the term of your rental agreement.
♦ Complete, easy and clean installation at your location.
♦ Complete guarantee that your system is working as good through the term of
the rental as the first day you started enjoying it.
♦ A free system if there is a need for the system to be returned for service.
♦ Ongoing testing by the onboard microprocessor and also by external
systems to assure you always receive a highest quality product.
♦ Schedule maintenance on all filters and components, full service
from top to bottom, 100%..... 100% of the time.
♦ Price protection after the price per gallon is established there will be no
increase over the term of the rental agreement, no surprises.
Special terms or Conditions
Pure Water Technology. LLC 34 W Colton Ave. Redlands CA 92374 909-796-7775
Customer Name - City of Palm Desert
Address
Phone # E-mail
Contact Name
Customer signature
Pure Water Technology signature
Fax #