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Home My WebLink AboutC24080 Sunline Transit Route 51, Shopper Hopper and Related MarketingCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVAL OF ACTIONS RELATED TO THE JULY 1, 2005 THROUGH JUNE 30, 2006 CONTRACT WITH SUNLINE TRANSIT AUTHORITY FOR ROUTE 51, THE SHOPPER HOPPER ROUTE AND RELATED MARKETING OF THE PROGRAM SUBMITTED BY: CONTRACTOR: DATE: CONTENTS: Recommendation: RUTH ANN MOORE, ECONOMIC DEVELOPMENT MANAGER SUNLINE TRANSIT AUTHORITY 32-505 HARRY OLIVER TRAIL THOUSAND PALMS, CA 92276-3501 JULY 14, 2005 CONTRACT NO. C-24080 By Minute Motion: 1) Approve and authorize the Mayor to execute Contract No. C24080 for twelve months in the amount not -to -exceed $250,600; 2) Authorize the Finance Director to set aside the amount of $25,000 as 10% contingency (use of contingency requires additional action) for this work;. 3) Approve an increase in this contract when additions to the routes take place in the fall; 4) Approve an increase of this contract once negotiations of fuel costs are completed in January 2006, with the amount reported to City Council once it is received; and 5) Approve the expenditure of $15,000 for advertising and special event operations of the Shopper Hopper from the General Fund Account No. 110- 4416-414-3681. Executive Summary: With approval by the City Council, the vehicles will run the east -west route (Blue Route) including the four largest hotels in Indian Wells, and the north -south route (Red Route) which includes the Marriott hotels, COD Street Fair and The Living Desert. The program will run seven days per week from November 1, 2005 - May 31, 2005 and five days per week during the remainder of the contract. G ZusC1r\Ruth Ann Moore,WP00CS\sHrpts\Shopper Hopper Contract 2 05-06 woo Contract No. C24080 Staff Report Shopper Hopper Contract July 14, 2005 Page 2 Discussion: This will be the second year that includes ridership to the hotels in both Palm Desert and Indian Wells. The service has been well received by both the concierge personnel and their customers. In September, staff will add a stop on the Blue Route to the new Palm Desert Visitor Center. Staff is also negotiating with the Marriott Shadow Ridge Resort to accommodate the timeshare tourists on the Red Route. Therefore, once the fall routes have been determined, staff would ask that the contract be increased to reflect those amounts. The new increase, which is determined by miles driven, should be minimal and will be reported to the City Council in August. The current charge for fuel is $1.49 per gallon. Negotiations by SunLine for fuel will take place in January 2005. Therefore, staff requests approval of an increase in the contract for fuel costs and will report that increase to City Council once it has occurred. Funding for the marketing includes advertising in magazines used by hotel guests and tourists, the redesign of the hotel rack cards depicting the new routes, and an increase in the number of rack cards produced in order to supply the concierge desks at the hotels. Funds for the Shopper Hopper program are available in the General Fund Account No. 110-4416- 414.3681. Staff requests approval of the above recommendations. Submitted by: A t nn Moor6 Economic Development Manager Approval: nt Paul Gibson, Finance Director PlAwtIq Carlos L. Ortega, Citl�manager G \BusCtARuth Ann Moore',WPDOCS\stfrpts\Shopper Hopper Contract 2 05-06 wpo Contract No. C24080 Contract No. AGREEMENT FOR SERVICES TO OPERATE PALM DESERT SHOPPER HOPPER July 1, 2005 through June 30, 2006 This agreement is entered into between The City of Palm Desert (City) and SunLine Transit Agency (SunLine), for the operation of the Palm Desert Shopper Hopper, in fixed route public transit service within the City of Palm Desert. This agreement shall cover the period beginning on July 1, 2005 and ending on June 30, 2006. 1. BACKGROUND: City desires that SunLine operate the Palm Desert Shopper Hopper along fixed routes as designated by the City of Palm Desert during this time period. 2. VEHICLE OPERATION: Vehicles are owned by the City. Vehicles shall be in revenue service according to schedules agreed to between the City and SunLine as reflected on Exhibit A. Changes to this schedule may be made by mutual agreement. (See Exhibit A attached.) The City retains the right to increase, decrease, or, with 30 days notice, to suspend or cancel the service for any period at any time. SunLine shall provide a uniformed motor coach operator to operate each vehicle for all hours of vehicle operation within the scope of this agreement. SunLine shall also provide dispatching and street supervision for all fixed route vehicle operation of the Palm Desert Shopper Hopper service. 3. MAINTENANCE: SunLine shall perform all routine preventative maintenance (PM's) on the vehicles per manufacturer's recommendations. This will be done on a regular basis and contained within SunLine's regular fleet maintenance program. The regular PM's will include labor, fluids, and filters as required. SunLine will also perform routine safety inspections every 14 days during the term of this agreement. The fees for this routine maintenance are listed in Exhibit A. All routine maintenance costs are included in this Agreement. If other than routine repairs become necessary, SunLine will meet with the City for approval of Contract No. C24080 such expenses. 4. FEES AND PAYMENT a) Operation of the Shopper Hopper Service: $40.32 per vehicle hour for the cost of operating the Shopper Hopper service. Vehicle hours include revenue service, "dead head" hours, and any layover time requiring a vehicle to be in operation. (Exhibit A lists the current schedule of hours.) b) Maintenance of the vehicles: $.36 per mile, per vehicle. SunLine will perform all required Safety Inspections of the vehicles and all "PM's" (preventive maintenance servicing requirements) as required by the vehicle manufacturer. These vehicles will also be washed and have their interiors cleaned on a daily basis. All of these services will be billed on a monthly basis as a single Maintenance cost, per vehicle. (Exhibit A lists the current schedule of hours.) Fuel cost will be billed to the City. Current CNG costs are $1.49 per gasoline gallon equivalent (GGE). Any increase or decrease will be passed along to the City. c) Insurance/Indemnity: SunLine will provide Workman's Compensation coverage for its employees in the performance of this agreement. The City owns the vehicles and will provide customary property damage insurance coverage as it sees fit. SunLine shall not be liable for damage to vehicles arising out of the performance of this agreement. SunLine shall indemnify and hold harmless the City from all third -party claims arising out of its performance of this agreement. Accordingly, a Certificate of Liability Coverage naming the City shall be issued with liability limits of $1,000,000 and a $0 (zero) limit for Self -Insured Retention. d) Payments: SunLine shall invoice City by the 15t' of each month for the preceding month's fees. Terms of the invoices shall be net 30. 5. OTHER SunLine shall publish and distribute the route schedules and route maps in rider materials furnished to the public. SunLine staff is available to assist the City in efforts to promote ridership. Contract No. C24080 SunLine Transit Agency C. Mikel Oglesby General Manager Date: Attest: Dennis Gilman Clerk of the Board h: u\s\contracts\Pdshtte10.doc CITY OF PALM DESERT Buford Crites Mayor Date: Attest: Rachelle Klassen City Clerk Approved as to form: Dave Erwin City Attorney Contract No. C24080 EXHIBIT A Schedule for Operation Palm Desert Shopper Hopper July 1, 2005 through June 30, 2006 Operation of Both the Red and Blue Lines July 1 through October 3 November 1 through May 31 June 1 through June 30 Total Days of Operation Cost of Operation 5 Days Per Week, Plus July 41h and Labor Day 7 Days Per Week 5 Days Per Week 322 Days $40.32 Cost Per Hour x 8.5 hours x 2 Vehicles x 322 Days $220,712 Maintenance Red Route .36 cents x 93.6* miles x 218 Weekdays = $7,346 .36 cents x 93.6* miles x 104 Weekend Days = $3,505 Blue Route .36 cents x 65 miles x 322 Days = $7.535 Total Maintenance Costs $ 18,386 Fuel Costs Red Route 20,405* miles of Weekdays / 7mpg x $1.49** per gallon= $4,315 9,735* miles of Weekend Days / 7 mpg x $1.49** per gallon = $2,703 Blue Route 20,930* miles or Days / 7 mpg x $1.49** per gallon= $4.455 Total Fuel Costs $ 11,473 TOTAL OPERATION, FUEL, MAINTENANCE $250,571 * Based on mileage for 2004-2005 contract which will change in the fall with additions to the route. " Fuel cost of !1.49 per GGE is current cost, but could change. If fuel cost changes, SunLine will bill actual cost (either increases or decreased) as they occur. G:MBusCtrWuth Ann MooreMPDOCS AWShopper Hopper\05-06 Budget Calculations 2.wpd