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Home My WebLink AboutR21802 - El Paseo Courtesy Cart ServicePALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZATION OF A ONE-YEAR EXTENTION TO CONTRACT NO. R21802 WITH 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 BUSINESS SOLUTIONS 141 SANDPIPER PALM DESERT, CA 92260 DATE: AUGUST 24, 2006 CONTENTS: CONTRACT NO. R21802 NEW YEARLY SCHEDULE BREAKDOWN Recommendation: By Minute Motion, that the Agency Board: 1. Authorize a one-year extension to the contract with Rite Rate Business Solutions for an amount not -to -exceed $188,000 for operation of the El Paseo Courtesy Cart service for an 11-month period commencing September 1, 2006, through July 31, 2007; 2. Authorize the Finance Director to set aside the total amount of $18,000 as ten percent contingency (use of contingency requires additional action); 3. Authorize an additional $10,000 for renovation of the carts and general maintenance upkeep; 4. Appropriate an additional $91,000 for Account No. 850-4416-414-3681 to cover additional operation and maintenance repair; and 5. Authorize Chairman to execute said contracts. Executive Summarv: Acceptance of the staff's recommendation will allow for the continuation of operation of the El Paseo Courtesy Carts by Rite Rate Business Solution including service and renovations to all three carts. G:\RDA\Beth Lonpman\Staff Reports\RAMoore\EI Paseo Courtesy Contract 06.07.doc Staff Report El Paseo Courtesy Shuttle Contract R21802 Page 2 August 24, 2006 Discussion: In September of 2004, the Palm Desert Redevelopment Agency began a courtesy shuttle operation within the El Paseo Shopping District in order to allow shoppers better access to the mile -long district, more efficient utilization of parking, access to the City's Visitor Center, and dissemination of information concerning the programs available by the Agency to the public. This program has met with tremendous success and served over 60,000 shoppers with the combined miles on the carts at over 50,000. The contractor is asking for a 4.7 CPI increase in hourly operation from $27.94 to $29.26 to cover the cost of living. Staff agrees with the contractor that the increase is fair and adequate to cover new expenses of operation. In addition to this year's costs, due to heavy use, the carts will go through a major renovation including new tires, brakes, driver's seats, carpets, electrical systems, and more. A comparison of last year's budget to this year's is as follows: 2005-2006 Actual 2006-2007 Proposed Operation $175,000 $188,000 Maintenance & Repairs $ 4,630 $ 10,000 Contingency $ 18,000 Cart Purchase $ 23.000 $ 0 TOTAL $202,630 $216,000 There was an error in the fiscal budget, and currently the approved budget for the program is $125,000. Staff requests the Agency Board to appropriate an additional $91,000 into account number 850-4416-414-3681 in order to cover all expenses for the El Paseo Courtesy Cart for the 11-month period and approve the above stated motions. mit y: fu4thnn Moore w Economic Development Manager AC z,�-Carlos L. Executive G:\RDA\Beth Longman\Staff Reports\RAMoore\Et Paseo Courtesy Contract 06-07.doc Paul Gibson Director of Finance 4COU'P4 BY RDA ON 7-Q44-0 Co VERIFIED BY� Original on file with Cit y Clerk's Office Contract No. R21802 AMENDED AGREEMENT FOR SERVICES TO OPERATE THE EL PASEO COURTESY SHUTTLE SERVICE 1 SEPTEMBER 2006 THROUGH 31 JULY 2007 This Agreement is entered into between the Palm Desert Redevelopment Agency (AGENCY) and E. V. Gray dba Rite Rate Business Solutions, (CONTRACTOR), for the operation of the El Paseo Courtesy Carts, a public shuttle service within the city of Palm Desert. This Agreement shall cover the period beginning on September 1, 2006 and ending on July 31, 2007. Background: The AGENCY desires that Rite Rate Business Solutions operate the El Paseo Courtesy Carts along the El Paseo Shopping District in City of Palm Desert during the contract period in accordance with said Resolution No. 474. The CONTRACTOR will provide these services while operating three (3) Neighborhood Electric Vehicles (NEV) owned by the AGENCY. 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: Each vehicle shall be in regular service five days per week in accordance with the following schedule as listed in Attachment. Each vehicle will be 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 AGENCY, more hours and days may be added to the schedule described herein (ATTACHMENT A), 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 AGENCY retains the right to increase, decrease, or, with thirty (30) days' notice, to suspend or cancel the service for any period at any time. Rite Rate Business Solutions 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 new vehicles are included in this Agreement. If extraordinary repairs become necessary, CONTRACTOR will meet with the appropriate AGENCY representative to determine if costs of repairs will be borne by the AGENCY, if substitute vehicles might be used, or other options should be explored. Cost of vehicle maintenance shall be carried in CONTRACTOR's lump sum price for courtesy shuttle service operation. 4. A. Fees and Payment: Payment to CONTRACTOR will be mad as follows: Operation of the El Paseo Courtesy Cart Service per the contract documents and attached schedule of operation estimated to be $162,000, with months outlined on Attachment A of the contract. Additional overtime hours for special events held in the City of Palm Desert are estimated for 20 days at 4 hours per day for three carts for an estimated at $10,000. Vehicle hours include routine cart service, "dead head" hours, and any layover time requiring a vehicle operation. Adjustments to compensation will be paid at the unit rates of $29.26 per vehicle hour straight time and $34.56 per vehicle hour overtime for additional or reduced NEV operation requested by the AGENCY beyond the schedule in Attachment 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: The AGENCY, 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 AGENCY harmless and endorse their liability insurance with the AGENCY 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. The AGENCY's standard liability limits for CONTRACTOR of $1 million per occurrence and $2 million in aggregate are recommended. The CONTRACTOR must also maintain worker's compensation coverage at the statutory limits for injuries that might occur to the driver while working for the AGENCY. D. Payments: CONTRACTOR shall invoice the AGENCY 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 Redevelopment Agency and City information in the NEVs. The AGENCY 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. AGREEMENT —revised 08/9/06 G:\RDA\Beth Longman\Staff Reports\RAMoore\Rite Rate Solutions Agmt-R3 082406.doc CONTRACTOR shall not charge persons wishing to use the courtesy 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 AGENCY. 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 AGENCY, 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 AGENCY -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. PALM DESERT REDEVELOPMENT AGENCY M Attest: Jim Ferguson, Chairman Rachelle D. Klassen, Secretary Approved as to form: David J. Erwin, City Attorney E. V. GRAY dba Rite Rate Business Solutions By: Signature Title Attest: Signature Title AGREEMENT — revised 08/9/06 G:\ROA\Betn Longman\Staft Reports\RAMoore\Rite Rate Solutions Agmt•R3 082406.doc ATTACHMENT A Contract No. R21802 M-S = Monday thru Sunday W-S = Monday thru Saturday September day wk October day wk November day wk December day wk Days hrs hrs Days hrs hrs Days hrs hrs Days hrs hrs CC1 M-S 8 56 CC1 M-S 8 56 CC1 M-S 8 56 CC1 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC3 W-S 0 0 CC3 W-S 8 32 CC3 W-S 8 32 CC3 W-S 8 32 16 112 24 144 24 144 24 144 January day wk February day wk March day wk April day wk Days hrs hrs Days hrs hrs Days hrs hrs Days hrs hrs CC1 M-S 8 56 CC1 M-S 8 56 CC1 M-S 8 56 CC1 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC2 M-S 8 56 CC3 W-S 8 32 CC3 W-S 8 32 CC3 W-S 8 32 CC3 W-S 8 32 24 144 24 144 24 144 24 144 May day wk June day wk July day wk August day wk Days hrs hrs Days hrs hrs Days hrs hrs Days hrs hrs CC1 M-S 8 56 CC1 M-S 8 56 CC1 M-S 8 32 CC1 M-S 0 0 CC2 M-S 8 56 CC2 M-S 8 56 CC2 M-S 0 0 CC2 M-S 0 0 CC3 W-S 8 32 CC3 W-S 0 0 CC3 W-S 0 0 CC3 W-S 0 0 24 144 16 112 8 32 0 0 DAYS OF OPERATION Monday 2 Carts Tuesday 2 Carts Wednesday 3 Carts Thursday 3 Carts Friday 3 Carts Saturday 3 Carts Sunday 2 Carts MONTHS OF OPERATION September 2 Carts October 3 Carts November 3 Carts December 3 Carts January 3 Carts February 3 Carts March 3 Carts April 3 Carts May 3 Carts June 2 Carts July 1 Cart (thru July 4th) August 0 Carts