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HomeMy WebLinkAboutSR - SunLine Routes 51 A & B, Shopper Hopper & Mrkt'gCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVAL OF ACTIONS RELATED TO CONTRACT NO. C24080A WITH SUNLINE TRANSIT AUTHORITY FOR ROUTES 51 A & B (RED AND BLUE), THE SHOPPER HOPPER ROUTES, AND RELATED MARKETING OF THE PROGRAM SUBMITTED BY: RUTH ANN MOORE, ECONOMIC DEVELOPMENT MANAGER CONTRACTOR: SUNLINE TRANSIT AUTHORITY 32-505 HARRY OLIVER TRAIL THOUSAND PALMS, CA 92276-3501 DATE: JULY 12, 2007 CONTENTS: CONTRACT NO. C24080A RIDERSHIP NUMBERS Recommendation: By Minute Motion: 1) Approve and authorize the Mayor to extend Contract No. C24080A on a month -to -month basis for six months in an amount not -to -exceed $132,000 for vehicle operation, preventative maintenance, fuel, and incidental repairs to the vehicles; 2) Authorize the Finance Director to set aside the amount of $13,200 as 10% contingency (use of contingency requires additional action) for this work; and 3) Approve the expenditure of $45,000 for the yearly brochure and tourist magazine advertising of the Shopper Hopper and to re -wrap the vehicles Funds for the Shopper Hopper program are available 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 continue to run five days per week through October 31, 2007, and run seven days per week from November 1, 2007, through December 31, 2007. SunLine staff is currently working on adjustments to the routes, but is unable to complete the changes prior to the expiration of the current contract. Staff Report Shopper Hopper Contract July 12, 2007 Page 2 Discussion: SunLine assumed responsibility for the Shopper Hopper Program in 1994 with one city -owned open- air electric trolley. In 1997, SunLine purchased two enclosed, air-conditioned electric trolleys to expand Route No. 51 by shortening the lead-time for passenger pickup and extending ridership to the summer. In March 2002, it was determined that the electric trolleys could no longer function to the standard the City requires and Council approved the purchase of two CNG buses. The two new trolleys were put on Route No. 51 (now called the Blue Route) in February 2003. During the spring of 2004, City Council directed staff to extend the route to include the hotels in the City's eastern sphere (Embassy Suites, Best Western and Holiday Inn Express) and the hotels in Indian Wells (Miramonte, Esmerelda and Hyatt Grand Champions). That fall the vehicles were split into two separate routes; the existing east -west route (Blue Route) and the newly created north -south route (Red Route) that includes Desert Springs Marriott, Marriott Shadow Ridge, Courtyard, Residence Inn, The Living Desert and COD Street Fair. While this significantly extended the lead-time of the Blue Route, it has allowed the service to add the major hotels within the City. Additional fuel tanks were also added to the vehicles in order to extend the routes and currently the routes cannot be extended without dropping locations, modifying routes, or going back to SunLine for refueling. SunLine and City staff are currently reassessing the routes, including an attempt to add the Hampton Inn to the Red Route. This work will be done by the end of summer in order to make any changes to the times of the routes prior to printing of any marketing materials that will be introduced when the routes increase from five to seven days per week on November 1, 2007. Staff will then bring a new contract back to City Council during the mid -year adjustments of the budget. Should operation costs increase due to SunLine fees, staff will amend this agreement prior to the mid -year adjustments. Breakdowns for the operation expenses are as follows: Vehicle Operation $99,388.80 $40.32/hour x 8.5 hours x 2 vehicles x 145 days Preventative Maintenance and Custodial Blue - .36 x 123.5 miles/day x 145 days Red - .36 x 141.6 miles/day x 145 days Fuel 38,440 miles / 7mpg x $1.49 per gallon Additional Maintenance for Vehicles $6,446.70 $7,391.52 $8,182.23 $10,0000.00 Additional maintenance for both vehicles is estimated at $10,000 and is included in the contract extension amount. Due to the high use of the vehicles and the fact that they are no longer under warranty, additional funding is required for tires, brakes, air-conditioning, and other repairs as needed to keep the vehicles operating safely. SunLine staff must review all work with City staff prior to repairs being performed. Funding for the marketing includes advertising in magazines used by hotel guests and tourists, the redesign of the hotel rack cards depicting changes to routes, and an increase in the number of rack cards produced in order to supply the concierge desks at the hotels. The amount of $25,000 is for G:\rda\Beth Longman\Staff Reports\RAMoore\Shopper Hopper Cntrct 07-08 ext 071207.doc Staff Report Shopper Hopper Contract July 12, 2007 Page 3 the entire fiscal year. The additional $20,000 is to re -wrap the vehicles. The current wrap has been on the vehicles since they were put into service at the beginning of 2003 and was only guaranteed for two years. The wraps are curling on all edges and need replacement. The design will be coordinated with the City's new advertising campaign and will be reviewed by the Marketing Committee prior to installation. 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. Moore E onomic Devel• pment Manager Approval: P5G y McCarthy, AC{tCecf'evelopment Paul Gi , ae Director Carlos L. Orteg6, City Manager :;ITY COUNCIL APPROVED RECEIVED TION: MEETI G DATF -J AYES: 191, 1 (1Q NOES: ABSENT: ABSTAIN:Ane, VERIFIED BY: Ids /fr J ,riginal on File h City Clerk°s Offirt DENIED., OTHER G:\rda\Beth Longman\Staff Reports\RAMoore\Shopper Hopper Cntrct 07-08 ext 071207.doc