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HomeMy WebLinkAboutC33082 - Extension - Operation of El Paseo Courtesy Cart ServiceContract No. C33082 CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: AUTHORIZATION OF A ONE-YEAR CONTRACT EXTENTION (CONTRACT NO. 33080) GLYN DONALD GRAY dba GDG FOR THE OPERATION OF THE EL PASEO COURTESY CART SERVICE SUBMITTED BY CONTRACTOR DATE: CONTENTS Recommendation: By Minute Motion: Ruth Ann Moore, Economic Development Manager GDG 74450 Goleta Ave. Palm Desert, CA 92260 July 9, 2015 Contract No. C33082 FY 2015-'16 Operating Schedule 1. Approval a one-year contract with GDG for an amount not to exceed $90,000 for operation ($82,000 for scheduled hours, $3,000 for operating during special events and $5,000 for vehicle maintenance and repairs) of the El Paseo Courtesy Cart service commencing October 30, 2015 through May 14, 2016. 2. Authorize the reimbursement of $5,000 from El Paseo Business Improvement District Account No. 1104491-4321500 to Courtesy Cart Account No. 1104416-4368100 as contribution towards operations; and 3. Authorize Mayor to execute said contract. Funds are available in the approved FY 2015-16 Budget in Account Number 1104416-4368100, Courtesy Carts. G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Operations Cntrct 15-16 7-9-15.doc Staff Report El Paseo Courtesy Carts Contract (Contract No. C33082) Page 2 of 3 July 9, 2015 Executive Summary: Acceptance of the staff's recommendation will allow the extension of a contract to operate the El Paseo Courtesy Cart program with GDG, the current operators of the program. The extension is for one year in the amount not -to -exceed $90,000, which includes $83,000 for standard hourly operations as listed in the attachment to the contract, and $2,000 to be used for special event operations outside standard hourly operations. In addition, $5,000 will be used for maintenance and repairs on an as needed basis. Per the contract, use of the funds for special events operations and repairs requires prior staff approval. There is no increase in hourly operation costs or the total contract amount over the prior year. Discussion - The El Paseo Courtesy Carts began operation in September of 2004 with one cart, five days per week. Over the next two years, two additional carts were added and the service was extended to seven days per week. The El Paseo Business Improvement District (EPBID) features the program in all advertising including magazine, radio, television and the street -wide directories at no additional cost to the City. At the June 18, 2015, EPBID meeting the board voted unanimously to approve their upcoming fiscal budget that included a contribution of $5,000.00 to the FY 2015-16 operations. Per ordinance requirement, the contract was put out for bid in July 2013. This would be the third year of the contract under the existing bid. Therefore, the contract will go out to bid next spring for the operations in FY 2016-17. Two years ago, new carts were added to the program that now consists of two carts shuttling throughout the district seven days per week from 11:00 AM through 6:00 PM. This year's operation will begin on Friday, October 30, 2015 through November 1, 2015 for the Golf Cart Parade and then start on Friday, November 6, 2015 for First Weekend and run through May 14, 2016, Mother's Day. GDG will operate the program at a cost of $30.50 per hour during regular daily operations. Carts will also run in the evenings during special events on the street at $35.50 per hour and this cost is built into the contract amount. A schedule of operations is attached. Staff has found GDG to be a very reliable company to operate the Courtesy Cart program and recommends City Council approval on the above motion. G \Econ Deveiopment\Ruth Ann Moore\STAFF REPORTS1Courtesy Cart Operations Cntrct 15-16 7-9-15.doc Staff Report El Paseo Courtesy Carts Contract (Contract No. C33082) Page 3 of 3 July 9, 2015 Fiscal Analysis: Funds are available in the Courtesy Cart Account No. 1104416-4368100. The carts carry shoppers throughout the El Paseo Shopping District and also to the museum when requested. This allows shoppers the convenience of not moving their vehicles while visiting the street, which may extend their visit, increase shopping expenditures, and adding additional revenues to the General Fund. Submitted by: th nn Moor Economic Development Manager Paul S. Gibson Director of Finance n M. Wohlmuth, City Manager Depart�me�nt;Hyd: Martin Alvarez Economic Development Director sue`' Rudy costa Assistant City Manager GAEcon Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Operations Cntrct 15-16 7-9-15 doc Contract No. C-33082 EXTENSION AGREEMENT FOR SERVICES TO OPERATE THE EL PASEO COURTESY CART SERVICE OCTOBER 30, 2015 THROUGH MAY 14, 2016 This Agreement dated July 9, 2015 is entered into between the City of Palm Desert (CITY) and GDG, Inc., (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 30, 2015, and ending on May 14, 2016. 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 three (3) 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, October 30, 2015 — November 1, 2015 and November 6, 2014 - May 14, 2016 (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 $90,000 yearly for the cost of operating the courtesy cart service Contract No. C-33082 ($85,000) as described in the contract documents and any additional extraordinary maintenance costs associated with repairs ($5,000) as described in Section Three (3) of this contract. Vehicle hours include routine service, "dead head" hours, and any layover time requiring a vehicle operation. Compensation will be paid at the unit rates of $30.50 per vehicle hour straight time and $35.50 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 defense, including reasonable legal counsels' fees, incurred in defense of such claims. 2 G.\Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16 7-9-15 doc Contract No. C-33082 CONTRACTOR shall provide the following types and amounts of insurance: 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. i. 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. 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. Insureds under primary policies shall also be insureds under the umbrella or excess policies OTHER PROVISIONS OR REQUIREMENTS 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. 3 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16 7-9-15 doc Contract No. C-33082 City reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of Coveraqe: 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 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. 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 4 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16 7-9-15.doc Contract No. C-33082 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. 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. 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. 5 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16 7-9-15 doc Contract No. C-33082 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, 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 Glyn Donald Gray, dba GDG la Attest: Susan Marie Weber, Mayor Rachelle D. Klassen, Secretary Attest: Approved as to form: David J. Erwin, City Attorney 6 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16 7-9-15.doc Glyn Donald Gray Title Signature Title f f \ \ / / m m f f \ \ 4 4 a CN r- w \ \ / E o 0 M s o o 0 / � S m \ /@ n Cl) !49K r- : \« \ \ �§ l »�-:©» & CJ C) 7 Q f f 12 / \ m \ \ m m 1�- r- C.4 CD 0 0 \ \ 0 0 \ - (£® g \ = E co > § \ \.� \ >, � f 7 0 r-l_ 2 — \ CO k » 3 ƒ , 2 7 CD 2 � t co Cd ( E \ \ \ Cl)a) � \ \ p \ \ J u k u \ \ e 3 CD m 2 & 7 Go \ \ f o CJ a 04 a 04 C o 0 0 f\ z \ \ $ z § I E G f f o■ 0 m o§ co_ e= CL k k f�/ k* 2 ƒ\ g J