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HomeMy WebLinkAboutC33082 - Amndmnt - Operation of El Paseo Courtesy CartCITY OF PALM DESERT Contract No. C33082 ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: AN AMENDMENT TO THE ONE-YEAR CONTRACT EXTENTION (CONTRACT NO. 33082) WITH GLYN DONALD GRAY dba GDG FOR THE OPERATION OF THE EL PASEO COURTESY CART SERVICE INCORPORATING NEW LANGUAGE FOR INSURANCE REQUIREMENTS AND CHANGING THE START DATE TO OCTOBER 25 TO INCLUDE THE GOLF CART PARADE SUBMITTED BY: Ruth Ann Moore, Economic Development Manager CONTRACTOR: GDG 74450 Goleta Ave. Palm Desert, CA 92260 DATE: October 8, 2015 CONTENTS: Contract No. C33082 FY 2015-16 Operating Schedule Ridership Chart Recommendation: By Minute Motion: 1. Move the starting date of Contract No. C33082 to October 25, 2015 to include the Golf Cart Parade; 2. Amend Contract No. 33082 to include requirements for driver's DMV records, and; 3. Authorize the City Attorney to make non -substantive changes to the contract. The changes do not increase the contract amount and funds are available in the approved FY 2015-2016 budget in Account No. 1104416-4368100, Courtesy Carts. Executive Summary: On July 8, 2015, City Council approved a one-year contract extension with Glyn Gray dba GDG for the operation of the Courtesy Carts for FY '15-16. This contract called for operations to begin on Friday, October 30, 2015 — Sunday, November 1, 2015 to G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Operations Cntrcl 15-16 amendment 10-08-15.doc Staff Report El Paseo Courtesy Carts Contract (Amendment to Contract No. C33082) Page 2 of 2 October 8, 2015 include the Golf Cart Parade. This year, the parade was moved back to Sunday, October 25, 2015, which requires operations to begin on that date. The contract will now eliminate operations on Friday, October 30, 2015 and move those funds to instead operate on Sunday, October 25, 2015. This does not change the amount of funding required for the contract. Upon additional review of the contract by Stephen Aryan, the risk manager for the City determined that it would help to mitigate the City's risk if the DMV records were reviewed each year by the contractor. The contractor will then report any incidents to the City that occur during the performance of the driver's duties. The contractor is also required to properly train drivers in the operation of the carts. This new language is now reflected in the contract under the "Annual Driver Review" section. 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. Ridership for the program from November through May is almost 31,000 shoppers as indicated on the attached Ridership Chart. 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: ut Ann Wore Economic Development Manager Paul S. Gibson Director of Finance n M. Wohlmuth, City Manager Department Head: Martin Alvarez Economic Development Director Rudy Acosta Assistant City Manager G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Operations Cntrct 15-16 amendment 10-08-15 doc Contract No. C-33082 EXTENSION AGREEMENT FOR SERVICES TO OPERATE THE EL PASEO COURTESY CART SERVICE OCTOBER 25, 2015 THROUGH MAY 14, 2016 This Agreement dated October 8, 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 25, 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 25, 2015 and October 31, 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-Revised 10-08-15 final doc Contract No. C-33082 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 the 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. 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. • Insureds under primary policies shall also be insureds under the umbrella or excess policies 3 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16-Revised 10-08-15 final doc Contract No. C-33082 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 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 4 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16-Revised 10-08-15 final doc Contract No. C-33082 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-Contributinq 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. 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- 5 GAEcon Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Cart Contract FY 15-16-Revised 10-08-15 final doc Contract No. C-33082 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, 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. 6 G-\Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Can Contract FY 15-16-Revised 10-05-15 final.doc Contract No. C-33082 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 Attest: Susan Marie Weber, Mayor Rachelle D. Klassen, Secretary Approved as to form: David J. Erwin, City Attorney Glyn Donald Gray, dba GDG By: Glyn Donald Gray Title Attest: Signature Title 7 G \Econ Development\Ruth Ann Moore\STAFF REPORTS\Courtesy Can Contract FY 15-16-Revised 10-08-15 final.doc