REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 29, 2025
FROM
MARK MCCULLOUGH, Director, Fleet Management Department
SUBJECT
Title
Revenue Agreement with the Housing Authority of the County of San Bernardino for Vehicle Maintenance, Repair, Fueling Services, and/or Motor Pool Rental/Lease of Vehicles.
End
RECOMMENDATION(S)
Recommendation
Approve Revenue Agreement with the Housing Authority of the County of San Bernardino, including non-standard terms, for vehicle maintenance, repair, fueling services, and/or Motor Pool rental/lease of vehicles effective April 29, 2025 through April 29, 2028.
(Presenter: Mark McCullough, Director, 387-7870)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Fleet Management Department (Fleet) is financed through the Board of Supervisors (Board) approved rates paid by other County departments and agencies. The cost of services and supplies under this revenue agreement (Agreement) will be fully funded by revenue received from the Housing Authority of the County of San Bernardino (HACSB). Costs will be based upon the annual Board approved rates in effect at the time service is provided. Sufficient appropriation and revenue have been included in Fleet’s 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On July 27, 2021 (Item No. 25), the Board approved an update to the existing standard revenue contract template for vehicle and equipment maintenance, repair, replacement parts, and fueling services, to include insurance requirements and electronic signature language that conform with County policy and authorized the Director of the Fleet Management Department to execute standard revenue contracts for vehicle and equipment maintenance, repair, replacement parts, and fueling services on behalf of the County.
Subsequently, Fleet entered the standard revenue contract with HACSB with the most recent contract term ending in September 2024. HACSB has now requested new terms, and while the parties negotiated certain contract terms to County standards, HACSB would not agree to all County standard terms. The non-standard and missing terms include the following:
1. The Agreement does not require HACSB to meet the County’s insurance standards as required pursuant to County Policy 11-07.
• The County Policy requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and set forth in the County standard contract.
• Potential Impact: The contract does not include County standard insurance requirements. This means that the County has no assurance that HACSB will be financially responsible for claims that may arise under the Agreement, which could result in expenses to the County that exceed the total Agreement amount.
2. The County is required to indemnify HACSB.
• The County standard contract does not include any indemnification or defense by the County of a contractor.
• Potential Impact: By agreeing to indemnify HACSB, the County could be contractually waiving the protection of sovereign immunity. Claims that may otherwise be barred against the County, time limited, or expense limited could be brought against HACSB without such limitations and the County could be responsible to defend and reimburse HACSB for costs, expenses, and damages, which could exceed the total Agreement amount.
Fleet recommends approval of the Agreement with HACSB, including the non-standard terms. Fleet has reviewed the non-standard terms and determined that the benefit to the County outweighs the potential risks the non-standard terms pose and recommends approval.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on January 15, 2025; Finance (Jessica Trillo, Administrative Analyst, 387-5423) on March 26, 2025; Risk Management, (Stephanie Mead, Staff Analyst II, 386-9044) on April 17, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on March 27, 2025.