HomeMy WebLinkAboutC35632 Extension Operation of El Paseo Courtesy Cart CITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
STAFF REPORT
MEETING DATE: August 23, 2018
PREPARED BY: Martin Alvarez, Director of Economic Development
REQUEST: Approve Contract No. C-35632 with Glyn Donald Gray (GDG) for the
operation of the El Paseo Courtesy Cart Program for Fiscal Year (FY)
2018/19
Recommendation:
By Minute Motion:
1. Approve Contract No. C-35632 with GDG in an amount not to exceed
$130,277.16, including scheduled and special event hours, vehicle
maintenance/repairs and insurance for the operation of the El Paseo
Courtesy Cart Program during FY 2018/2019, and
2. Authorize the Mayor to execute said contract and allow the City Attorney to
make non-substantive changes.
Funds are available in the approved FY 2018/2019 Budget, Account No. 1104416-
4368100, Courtesy Carts.
Strategic Plan:
The approval of the El Paseo Courtesy Cart program aligns with the City's Envision Palm
Desert Strategic Plan, Economic Development Priority 4: Expand and raise awareness of
business-friendly services in order to retain and attract business and the Transportation's
Priority 3: De-emphasize the use of single/low occupancy vehicles and optimize multiple
modes of travel.
Executive Summary:
Approval of the staff's recommendation will extend the contract with GDG for a third and final
year in an amount not to exceed $130,277.16, for the operation of the El Paseo Courtesy
Cart Program during FY 2018/2019. The operations of the El Paseo Courtesy Cart will
commence October 12, 2018, and will end May 27, 2019.
The contract amount includes $110,500 for regular monthly service and special event
operations, $4,500 for maintenance and repairs (as needed) and $15,277.16 for City funded
Commercial Auto Liability Insurance. Per the contract, use of the funds for special events
operations and repairs requires prior staff approval. Staff recommends approval of the
contract extension with GDG to operate the El Paseo Courtesy Cart Program for FY
2018/2019.
G\Econ Develooment\Courtesy Carts\FY 18-19\Courtesy Cart Cntrct Staff Report 18-''9 doc
Staff Report
El Paseo Courtesy Carts Contract C-35632
Page 2 of 4
August 23, 2018
Discussion:
The El Paseo Courtesy Carts began operation in September of 2004 with one cart, five days
per week. Over the next several years, the program grew to two carts and the service was
extended to seven days per week, generally from October to May. In 2016, the City solicited
proposals from vendors to operate the El Paseo Courtesy Cart Program. Only one bid was
received, from the existing operator, GDG. After review of the bid and contractor's
qualifications, GDG met the qualification criteria outlined in the contractor's proposal and the
City Council approved a contract with GDG to operate the Courtesy Cart Program for FY
2016/17. The contract allowed for (2) two, one-year extensions with City Council approval.
In July of 2017, the City Council approved the first contract extension and GDG operated the
El Paseo Courtesy Cart Program for FY 2017/18.
The El Paseo Courtesy Cart program continues to provide two electric carts (3rd cart is
available for ADA riders upon request) shuttling throughout the district, seven days per week
from 11:00 a.m. through 6:00 p.m. This years' operation will begin October 12, 2018, and will
run until May 27, 2019. Last fiscal year the courtesy cart provided rides to 36,300 visitors on
El Paseo. Below is a summary of the ridership over the last two years.
Courtesy Cart Ridership
Month 2016/2017 2017/2018
October N/A 2,206
•
November i 3,420 3,670
December 3,529 3,782
January 4,962 4,487
February 6,020 5,982
March 6,822 6,672
April 5,342 5,640
May 2,160 3,920
32,255 36,359
As part of this years' contract extension, there is no change to the GDG's cost to operate the
program. The costs include $110,500 for courtesy cart operations, and $4,500 set aside for
annual vehicle maintenance costs. The only modification to the cost of the program will be
an added expense for the City to provide its' own Commercial Auto Liability Insurance. This
insurance coverage is strongly recommended by our Risk Manager and our City insurer, Joint
Powers Insurance Association. The Commercial Auto Liability coverage is $15,227.16
annually. The City is required to incur this cost as the original request for proposals to operate
the program did not require the operator to provide this coverage as part of the existing
contract. The courtesy carts are owned by the City and this coverage is necessary in case
of a vehicular related accident. GDG is required to provide its' own standard liability and
workers compensation insurance for its employees, but do not insure the carts.
GDG has successfully operated the El Paseo Courtesy Cart Program and staff recommends
approval of the second and final contract extension with GDG for FY 2018/19. The program
offers shoppers the convenience of parking their vehicles while visiting El Paseo, which may
G 1Econ Development\Courtesy Carts\FY 18-191EP Courtesy CartGDG FY18-19 8-23-18 docx
Staff Report
El Paseo Courtesy Carts Contract C-35632
Page 3 of 4
August 23, 2018
extend their visit, increase shopping expenditures, and add additional revenues to the
General Fund.
The Free Ride Program:
Staff has researched an option for an alternate electric vehicle shuttle program known as the
Free Ride Everywhere Downtown (F.R.E.D.). This visitor transportation program is managed
by The Free Ride (operator) and currently contracts with the following cities to provide free
rides to visitors within their downtown areas:
• San Diego
• Santa Monica
• Marina Del Rey
• Venice
• Long Beach
The F.R.E.D. program utilizes electric shuttles within a specific geographic area and times to
transport guests at no cost to the rider. The program utilizes a mobile phone application that
allows users to request a pick up at specific locations within the downtown boundaries. The
application provides real-time GPS map, showing the location of the vehicles. The Free Ride
operator owns, maintains and insures the vehicles.
The Free Ride operator uses advertisements on the electric shuttles to fund the program and
operations. Each City under contract with The Free Ride has the opportunity to partner with
the operator and share the revenues generated from the advertisements on the vehicles.
Attached to the staff report are images of the vehicles with the advertisements. Also, an
option to the participating City is the ability to use its' own branding/message on the cars in
lieu of collecting advertisement fees. The City also has the ability to control the types of
businesses that can advertise on the vehicles, but this generally reduces the amount of
potential revenue generated.
The cost of the program varies depending on the number of vehicles utilized, hours of
operation and the amount of funding projected from the ads. Below please find two options
with estimated costs to operate the F.R.E.D. program in Palm Desert, that mirrors the El
Paseo Courtesy Cart Program (i.e. two carts, operating 8 hours a day, 7 days a week).
Option 1 Option 2
Cars 2 3
Hours/Months 8/8 8/8
Monthly Seat Capacity 7,680 11,520
Max Annual Funding Need $184,830 $264,122
Ad Sales Projected $48,000 $72,000
Revenue Share (Service Credits) 40% 50%
•
Max Annual Funding Need $165,630 $228,122
*80%of Operational Expenses allocated to jobs and employee related expenses j
G\Econ Development\Courtesy Carts\FY 18-19\EP Courtesy CartGDG FY18-19 8-23-18 oocx
Staff Report
El Paseo Courtesy Carts Contract C-35632
Page 4 of 4
August 23, 2018
Staff recommends that we continue to research the opportunity to implement The Free Ride
Program as part of next fiscal years' budget process and return to the City Council with a
complete proposal and recommendation.
Fiscal Analysis:
The total annual cost to operate the El Paseo Courtesy Cart Program for FY 2018/19 is
$130,277.16, which includes operations, maintenance, and insurance. The carts carry
shoppers throughout the El Paseo Shopping District and the program offers shoppers the
convenience of parking their vehicles while visiting El Paseo, which may extend their visit,
increase shopping expenditures, and add additional revenues to the General Fund.
In addition, the El Paseo Business Improvement District features the program in all
advertising, including magazine, radio, television and the street-wide directories, at no
additional cost to the City. The carts provide a routine stop at Hotel Paseo, which provides
an additional amenity to hotel guests that may be experiencing El Paseo for the first time.
Funds are available in the Courtesy Cart Account No. 1104416-4368100.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
N/A i � �'�jIa
A
Robert W. Hargreaves Martin Alvarez et Moore Lauri Aylaian�
City Attorney Director of Economic Director of Finance City Manager
Development
CONTRACTOR: GDG
74450 Goleta Ave.
Palm Desert, CA 92260
ATTACHMENTS: FRED Vehicle Examples
El Paseo Courtesy Cart Agreement
G\E con Development\Courtesy Carts\FY 18-19\EP Courtesy Car1GDG FY18-19 8-23-18 docs
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Contract No. C-35632
AGREEMENT FOR SERVICES TO OPERATE
THE EL PASEO COURTESY CART SERVICE
OCTOBER 12, 2018 THROUGH MAY 27, 2019
This Agreement dated August 23, 2018 is entered into between the City of Palm
Desert (CITY) and Glyn Gray dba GDG (CONTRACTOR), for the operation of the El
Paseo Courtesy Cart Service, a non-fixed route public transit service within the City of
Palm Desert. This Agreement shall cover the period beginning on October 12, 2018.
and ending on May 27, 2019.
1. Background: The CITY desires that CONTRACTOR operate the El Paseo
Courtesy Cart Service along El Paseo within the City of Palm Desert during the contract
period. The CONTRACTOR will provide these services while operating two (2)
Neighborhood Electric Vehicles (NEV) owned by the City of Palm Desert. The courtesy
cart services are offered free of charge to the general public and shoppers on El Paseo,
and the CONTRACTOR shall neither charge for services nor solicit tips in any manner
for the services.
2. Vehicle Operation: Vehicles shall be in regular service seven days per
week in accordance with the attached Schedule: 11:00 a.m. through 6:00 p.m. daily.
starting October 12, 2018 - May 27, 2019 (days subject to change by the CITY),
including holidays, except Christmas Day and Thanksgiving Day. Vehicles are
permitted to be out of service for one half-hour plus two 15-minute breaks during each
seven-hour operating period. No breaks shall be taken consecutively. At direction of
the CITY, more hours may be added to the schedule described herein, or may be
reduced from this schedule. In the event that the number of hours is changed, the
contract amount will be adjusted accordingly by application of the unit rates contained in
the CONTRACTOR's Proposal. The CITY retains the right to increase, decrease, or,
with thirty (30) days' notice, to suspend or cancel the service for any period at any time.
The CONTRACTOR shall provide neatly-attired professional drivers whose
appearance is appropriate for the context in which they will be working (company golf
shirts, for example).
3. Vehicle Maintenance: CONTRACTOR shall perform all routine
preventative maintenance on the vehicles in accordance with the manufacturer's
recommendations. The regular preventative maintenance items shall include labor and
fluids as required. CONTRACTOR will also perform routine safety inspections every
fourteen days during the term of this Agreement. All routine maintenance costs based
on vehicles are included in this Agreement. If extraordinary repairs become necessary,
CONTRACTOR will meet with the CITY to determine if costs of repairs will be borne by
the CITY, if substitute vehicles might be used, or other options should be explored.
Cost of vehicle preventative maintenance shall be carried in CONTRACTOR's lump
sum price for courtesy cart operation. Any extraordinary repair costs will be paid by the
CONTRACTOR and reimbursed through billings attached to the monthly invoices.
4 Fees and Payment: Payment to CONTRACTOR will be made as follows:
A. Operation of the El Paseo Courtesy Cart Service: An amount not
to exceed $110,500 yearly for the cost of operating the courtesy cart service as
1
Contract No. C-35632
described in the contract documents and any additional extraordinary
maintenance costs associated with repairs in the amount of $4,500 as described
in Section Three (3) of this contract for a total not to exceed $115,000. The City
will be responsible for providing Commercial Automobile Liability Insurance.
Vehicle hours include routine service, "dead head" hours. and any layover time
requiring a vehicle operation. Adjustments to compensation will be paid at the
unit rates of $33.50 per vehicle hour straight time and $38.50 per vehicle hour
overtime for additional NEV operation requested by the CITY beyond the
following schedule: Vehicles will run in accordance with the attached Schedule,
Exhibit A.
B. Cleaning of the vehicles: The NEVs will also have their interiors
cleaned on a daily basis and will have their exteriors washed on a weekly basis.
The cost of these services will be carried in CONTRACTOR's lump sum price for
courtesy cart service operation.
C. Insurance: Prior to the beginning of and throughout the duration of
the work, CONTRACTOR will maintain insurance in conformance with the
requirements set forth below. CONTRACTOR will use existing coverage to
comply with these requirements. If that existing coverage does not meet the
requirements set forth here, it will be amended to do so. CONTRACTOR
acknowledges that the insurance coverage and policy limits set forth in this
section constitute the minimum amount of coverage required. Any insurance
proceeds available to CITY in excess of the limits and coverage required in this
agreement and which is applicable to a given loss, will be available to CITY.
Indemnity for liability: The CITY, as registration holders and
maintainers of the vehicles, will insure the vehicles against damage or loss and
also provide vehicle liability coverage indemnifying the CONTRACTOR against
damages that might occur which are beyond the control of the driver or result
from mechanical failure. The CONTRACTOR will be required to hold the
harmless CITY and endorse their liability insurance with the CITY as an
additional insured to protect against damages that might occur as a result of
driver error, which would include failure to follow established safety guidelines.
CONTRACTOR shall indemnify, defend, and hold harmless the City, and its
officers, employees, and agents ("City indemnitees"), from and against any and
all causes of action, claims, liabilities, obligations, judgments, or damages,
including reasonable legal counsels' fees and costs of litigation ("claims"), arising
out of the Contractor's performance of its obligations under this agreement or out
of the operations conducted by Contractor, including the City's active or passive
negligence, except for such loss or damage arising from the sole negligence or
willful misconduct of the City. In the event the City indemnitees are made a party
to any action, lawsuit, or other adversarial proceeding arising from Contractor's
performance of this agreement, the Contractor shall provide a defense to the City
indemnitees, or at the City's option reimburse the City indemnitees their costs of
2
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Contract No. C-35632
defense, including reasonable legal counsels' fees, incurred in defense of such
claims.
Contractor shall not commence work under this Agreement until it has provided
evidence satisfactory to the City of Palm Desert that it has secured all insurance
required under this section. In addition, Contractor shall not allow any
subcontractor(s) to commence work on any subcontract until it has provided
evidence satisfactory to the City that the subcontractor(s) has secured all
insurance required under this section.
Without limiting Contractor's indemnification of City, and prior to commencement
of Work, Contractor shall obtain, provide and maintain at its own expense during
the term of this Agreement, policies of insurance of the type and amounts
described below and in a form that is satisfactory to City.
General Liability Insurance: Contractor shall maintain commercial
general liability insurance with coverage at least as broad as Insurance
Services Office form CG 00 01, in an amount not less than $1,000,000 per
occurrence, $2,000,000 general aggregate, for bodily injury, personal
injury, and property damage, including without limitation, blanket
contractual liability. Defense costs shall be paid in addition to the limits.
The policy shall contain no endorsements or provisions limiting coverage
for (1) contractual liability; (2) cross liability exclusion for claims or suits by
one insured against another; or (3) contain any other exclusion contrary to
the Agreement.
ii. Workers' Compensation Insurance: Contractor shall maintain Workers'
Compensation Insurance (Statutory Limits) and Employer's Liability
Insurance (with limits of at least $1,000,000). Contractor shall submit to
City, along with the certificate of insurance, a Waiver of Subrogation
endorsement in favor of City of Palm Desert, its officers, agents,
employees and volunteers.
iii. Umbrella or Excess Liability Insurance: Contractor may opt to utilize
umbrella or excess liability insurance in meeting insurance requirements.
In such circumstances, Contractor shall obtain and maintain an umbrella
or excess liability insurance policy with limits of not less than 4,000,000
that will provide bodily injury, personal injury and property damage liability
coverage at least as broad as the primary coverages set forth above,
including commercial general liability and employer's liability. Such policy
or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary
insurance that would otherwise have applied proves to be uncollectible in
whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies; and
• Policies shall "follow form" to the underlying primary policies.
3
G.1Econ DevelopmenI Cour1esy Carts1FY 1 -191Courtesy Cart Contract FY 16-19.doc
Contract No. C-35632
• insureds under primary policies shall also be insureds under the umbrella
or excess policies
OTHER PROVISIONS OR REQUIREMENTS
Insurance for Subcontractors: All subcontractors shall be included as
additional insureds under the Contractor's policies, or the Contractor shall
be responsible for causing subcontractors to purchase the appropriate
insurance in compliance with the terms of these Insurance Requirements,
including adding the City as an Additional Insured to the subcontractors'
policies. Contractor shall provide to City satisfactory evidence as required
under Insurance Section of this Agreement.
Proof of Insurance: Contractor shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement or workers' compensation. Insurance
certificates and endorsement must be approved by City's Risk Manager
prior to commencement of performance. Current certification of insurance
shall be kept on file with City at all times during the term of this contract.
City reserves the right to require complete, certified copies of all required
insurance policies, at any time.
Duration of Coverage: Contractor shall procure and maintain for the
duration of the contract, insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the
performance of the Work hereunder by Contractor, his/her agents.
representatives, employees or sub-consultants.
City's Rights of Enforcement: In the event any policy of insurance required
under this Agreement does not comply with these specifications or is
canceled and not replaced, City has the right, but not the duty, to obtain
the insurance it deems necessary and any premium paid by City will be
promptly reimbursed by Contractor, or City will withhold amounts sufficient
to pay premium from Contractor payments. In the alternative, City may
cancel this Agreement.
Acceptable Insurers: All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned
policyholders' Rating of A- (or higher) and Financial Size Category Class
VII (or larger) in accordance with the latest edition of Best's Key Rating
Guide, unless otherwise approved by the City's Risk Manager.
Waiver of Subrogation: All insurance coverage maintained or procured
pursuant to this agreement shall be endorsed to waive subrogation
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G:tEcon DevelcpmentlCourtesy Carts1FY 18-191Courtesy Cart Contract FY 18.19.doc
Contract No. C-35632
against City of Palm Desert, its elected or appointed officers, agents,
officials, employees and volunteers or shall specifically allow Contractor or
others providing insurance evidence in compliance with these
specifications to waive their right of recovery prior to a loss. Contractor
hereby waives its own right of recovery against City of Palm Desert and
shall require similar written express waivers and insurance clauses from
each of its sub-consultants.
Enforcement of Contract Provisions (non estoppel). Contractor
acknowledges and agrees that any actual or alleged failure on the part of
the City to inform Contractor of noncompliance with any requirement
imposes no additional obligations on the City nor does it waive any rights
hereunder.
Primary and Non-Contributing Insurance: All insurance coverages shall
be primary and any other insurance, deductible, or self-insurance
maintained by the indemnified parties shall not contribute with this primary
insurance. Policies shall contain or be endorsed to contain such
provisions.
Specifications Not Limiting: Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a
given issue and is not intended by any party or insured to be all inclusive,
or to the exclusion of other coverage, or a waiver of any type.
Notice of Cancellation: Contractor agrees to oblige its insurance agent or
broker and insurers to provide to City with a thirty (30) day notice of
cancellation (except for nonpayment for which a ten [10] day notice is
required) or nonrenewal of coverage for each required coverage.
Additional Insured Status: General liability policies shall provide, or be
endorsed to provide, that the City of Palm Desert and its officers, officials,
employees, and agents shall be additional insureds under such policies.
This provision shall also apply to any excess liability policies.
City's Right to Revise Specifications: The City reserves the right at any
time during the term of the contract to change the amounts and types of
insurance required by giving the Contractor ninety (90) days advance
written notice of such change. If such change results in substantial
additional cost to the Contractor, the City and Contractor may renegotiate
Contractor's compensation.
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Contract No. C-35632
Self-Insured Retentions. Any self-insured retentions must be declared to
and approved by City. City reserves the right to require that self-insured
retentions be eliminated, lowered, or replaced by a deductible. Self-
insurance will not be considered to comply with these specifications
unless approved by City.
Timely Notice of Claims: Contractor shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Contractor's performance under this Agreement, and that involve or may
involve coverage under any of the required liability policies.
Safety: Contractor shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services,
the Contractor shall at all times be in compliance with all applicable local,
state and federal laws, rules and regulations, and shall exercise all
necessary precautions for the safety of employees appropriate to the
nature of the work and the conditions under which the work is to be
performed.
Annual Driver Review CONTRACTOR shall at least annually review the
performance and DMV history of each driver and advise the City of any
incidents that have occurred driving or otherwise in the performance of the
driver duties. CONTRACTOR shall be responsible for appropriate training
of all drivers (new and old) in their duties and proper vehicle operation.
Additional Insurance: Contractor shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the Work.
D. Payments: CONTRACTOR shall invoice the CITY by the fifteenth
of each calendar month for the preceding month's fees. Terms of the invoices
shall be net thirty days.
5. Other: CONTRACTOR shall make available City of Palm Desert
information in the NEVs. The CITY shall furnish brochures and printed literature in
adequate quantities such that CONTRACTOR can restock the information carried in the
vehicles on an as-needed basis.
CONTRACTOR shall not charge persons wishing to use the parking shuttle
service, nor shall the driver solicit tips in any matter. Use of a tip basket is expressly
forbidden.
Driver shall be subject to review and approval by the CITY. Drivers will be
required to be able to answer questions and give information regarding the City of Palm
Desert, and its history, in a courteous and helpful manner. At the request of the CITY,
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G IEcon DevelopmentlCourlesy Cans\FY 18-191Cour1esy Can COntraci FY t8-19.aoc
Contract No. C-35632
CONTRACTOR shall replace any driver found lacking in professionalism or courtesy, or
not presenting him/herself in a neat and professional manner while on duty.
Driver shall be responsible for retrieving NEV from the supplied storage location
and for returning the NEV there at the end of each shift. Driver will also be responsible
for recharging the vehicle and promptly reporting any malfunctions of either the vehicle
or the recharging apparatus maintained at the storage location.
CONTRACTOR is responsible for providing all cleaning materials needed to
maintain the exterior and interior of the vehicles in a like-new condition.
IN WITNESS WHEREOF the parties hereto have executed or caused to be
executed by their duly authorized officials, this Agreement which shall be deemed an
original on the date first above written.
CITY OF PALM DESERT CONTRACTOR
By: By:
Sabby Jonathan, Mayor Glyn Donald Gray, dba GDG
Attest:
Rachelle D. Klassen, Secretary Title
Attest:
Signature
Title
Approved as to form:
Robert W. Hargreaves, City Attorney
7
G:1Econ Davelopment1Courtesy CartsIFY 18-191Courtesy Cart Contract FY 18-19.doc
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