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HomeMy WebLinkAboutR29972 - Operation of El Paseo Courtesy Cart ServiceCITY OF PALM DESERT STAFF REPORT REQUEST: AUTHORIZATION OF A ONE-YEAR CONTRACT EXTENTION (CONTRACT NO. R29972) WITH RITE RATE, INC. (FORMERLY RITE RATE BUSINESS SOLUTIONS) FOR THE OPERATION OF THE EL PASEO COURTESY CART SERVICE SUBMITTED BY: Ruth Ann Moore, Economic Development Manager CONTRACTOR: Rite Rate, Inc. 141 Sandpiper Street Palm Desert, CA 92260 DATE: July 12, 2012 CONTENTS: Contract No. R29972 FY '12-'13 Operating Schedule Recommendation: By Minute Motion: Authorize a one-year contract with Rite Rate, Inc. (formerly Rite Rate Business Solutions) for an amount of $85,700 for operation ($80,700 for scheduled hours and $5,000 for operating during special events) of the El Paseo Courtesy Cart service commencing November 9, 2012 through May 12, 2013. 2. Authorize the reimbursement of $5,000 from El Paseo Business Improvement District Account No. 271-4491-464-3215 to Courtesy Cart Account No. 110- 4416-414-3681 as contribution towards operations; and 3. Authorize Mayor to execute said contract. Funds in the amount of $85,700 are available in Courtesy Carts, Account Number 110- 4416-414-3681. Executive Summary: Acceptance of the staff's recommendation will allow the extension of a contract to operate the El Paseo Courtesy Cart program with Rite Rate, Inc., the current operators of the program. The contract is for one year and there is no increase in hourly operation costs 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 G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\Courtesy Cart Operations Cntrct 12-13 7-12-12.doc Staff Report El Paseo Courtesy Shuttle Contract (Contract No. R 229972) Page 2 of 3 July 12, 2012 to seven days per week. 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. Previously, the Courtesy Cart program was funded through the former Redevelopment Agency. In February of this year, City Council reviewed this and other programs at a study session and determined to continue the program but directed staff to reduce operations and ask for participation by the El Paseo Business Improvement District (EPBID). At the February 23, 2012 EPBID meeting, the board made suggestions on how to best craft the hours of operations and voted unanimously to contribute $5,000.00 to the FY'11-'12 operations. Those suggestions were implemented on April 1, 2012 and are as follows: Daily hours of operation were reduced by one hour and now run from 11:00 a.m. through 6:00 p.m. Operations for the months of September, October, portions of November, portions of May, June and July were eliminated. Previously, the number of carts that operated each day varied from one to three depending on the time of year. Now, two carts will operate at all times. At the June 21, 2012 EPBID meeting, the board voted unanimously to contribute $5,000 to the operations for the Courtesy Carts for this year's FY '12-13 budget. Per ordinance requirement, the contract was put out for bid in July 2010. This would be the third year of the contract under the existing bid. Rite Rate, Inc. will operate the program at a cost of $25.98 per hour, 11:00 a.m. through 6:00 p.m., seven days per week throughout the term of the contract. Carts also run in the evenings during special events on the street at $27.98 per hour and this cost is built into the contract amount. The operation will run from November 9, 2012 through May 12, 2013 Mother's Day weekend) and this year will operate two vehicles each day. A schedule of operations is attached. In previous years, staff has also requested a yearly fund of $10,000 for maintenance and repairs. With the purchase of new vehicles expected this fiscal year, the Courtesy Carts will be under warranty and a maintenance fund will not be required this year. Staff has found Rite Rate, Inc. to be a very reliable company to operate the Courtesy Cart program and recommends City Council approval on the above motion. Fiscal Analysis: Over the past five years, ridership numbers indicate that the Courtesy Cart program carries approximately 50,000 shoppers, visitors and residents throughout the mile -long shopping district. The convenience of the courtesy carts extends shopping time on the street and keeps people from operating their own vehicles which contributes to pollution. National studies indicate that the longer customers stay in a location, the more they will contribute economically through purchasing goods and dining. Now that the Courtesy Cart program is no longer funded by the former Redevelopment Agency, funding will come from the General Fund. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\Courtesy Cart Operations Cntrct 12-13 7-12-12.doc Staff Report El Paseo Courtesy Shuttle Contract (Contract No. R 229972) Page 3 of 3 July 12, 2012 Submitted by: _7 I. uth nn Moore Economic Development Manager Paul S. Gibson Director of Finance Wohlmuth, City Manager Department Head: tin Alvarez Economic Development Director CITY COUNCILACtON APPROVED ✓ DENIED RECEIVED OTHER AYES - NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with City dCrk's Office G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\Courtesy Cart Operations Cntrct 12-13 7-12-12.doc Contract No. R 29972 AGREEMENT FOR SERVICES TO OPERATE THE EL PASEO COURTESY CART SERVICE NOVEMBER 9, 2012 THROUGH MAY 12, 2013 This Agreement dated July 12, 2012 is entered into between the City of Palm Desert (CITY) and Rite Rate, Inc., (formerly Rite Rate Business Solutions) (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 November 9, 2012, and ending on May 12, 2013. 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 between November 9, 2012 and May 12, 2013 (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 eight -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 $85,700 yearly for the cost of operating the courtesy cart service as Contract R 29972 described in the contract documents. 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 $25.98 per vehicle hour straight time and $27.98 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, protect, defend and hold harmless the CITY, its officials, employees, agents and representatives from and against any and all losses, liabilities, damages, costs, and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of the CONTRACTOR, its employees or subcontractors in the performance of services under this agreement. insurance: CONTRACTOR shall provide the following types and amounts of General liability — CONTRACTOR shall provide Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01 11 85 or the exact equivalent with limits of no less than $1,000,000 per occurrence for all covered losses and $2,000,000 general aggregate. This insurance shall be primary and non-contributing 2 G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\Courtesy Cart Contract FY 12-13 7-12-12.doc Contract R 29972 insurance for work performed. Contractor agrees to endorse general liability coverage required here to include as additional insured the CITY, its officials, employees and agents. Contractor also agrees to require the same provision of all subcontractors, joint ventures or other parties engaged by or on behalf of Contractor in relation to this agreement. Contractor agrees to provide evidence of the insurance required herein, satisfactory to CITY, consisting of: a) certificate(s) of insurance evidencing all of the coverages required and b) an additional insured endorsement to Contractor's general liability policy using Insurance Services Office form CG 20 10 11 85 or the exact equivalent approved by the CITY. b. Workers' compensation and employer's liability - CONTRACTOR shall provide Workers Compensation and Employer's Liability Insurance on a state -approved policy form providing statutory benefits as required by law with employer's liability limits no less that $1,000,000 per accident or disease. 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. 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. 3 G:1rda\Ruth Ann Moore\word datatSTAFF REPORTS\Courtesy Cart Contract FY 12-13 7-12-12.doc Contract R 29972 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 in Attest: Robert A. Spiegel, Mayor Rachelle D. Klassen, Secretary Approved as to form: David J. Erwin, City Attorney RITE RATE, INC. 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