HomeMy WebLinkAboutSR - R26891 - El Paseo Courtesy Cart SvcPALM DESERT REDEVELOPMENT AGENCY
REQUEST
SUBMITTED BY
CONTRACTOR
DATE:
CONTENTS
Recommendation:
STAFF REPORT
AUTHORIZATION OF A ONE-YEAR CONTRACT (CONTRACT NO.
R26891 ) WITH RITE RATE BUSINESS SOLUTIONS FOR THE
OPERATION OF THE EL PASEO COURTESY CART SERVICE.
RUTH ANN MOORE, ECONOMIC DEVELOPMENT MANAGER
RITE RATE BUSINESS SOLUTIONS
141 SANDPIPERS
PALM DESERT, CA 92260
JULY 10, 2008
CONTRACT NO. R 26891
By Minute Motion, that the Agency Board:
1. Authorize a one-year contract with Rite Rate Business Solutions for an
amount of $198,000 for operation of the El Paseo Courtesy Cart service for
an 11-month period commencing August 30, 2008 through July 5, 2009;
2. Authorize the Finance Director to set aside the total amount of $19,800 as ten
percent (10%) contingency (use of contingency requires additional action);
3. Authorize staff to add the third cart to operate on Sundays through season;
4. Authorize an additional $15,000 for complete refurbishment of the three carts,
5. Authorize an additional $7,000 for preventative maintenance and repairs to
the vehicle;
6. Appropriate an additional $20,000 to cover refurbishments and cost increases
to Account Number 850-4416-414-3681, and;
7. Authorize Chairman to execute said contracts.
Funds are available in Account Number 850-4416-414-3681.
Executive Summarv:
Acceptance of the staffs recommendation will allow for a new contract for the operation of the
El Paseo Courtesy Cart program with Rite Rate Business Solutions, the current operators of the
program. The contract is for one year and allows for extension of one additional year with the
Agency Board's approval.
G \roa\Betn Longman\StaH Reports\RAMoore\Approve Court Cart Cntrct 08 09 ooc
Staff Report
El Paseo Courtesy Shuttle Contract (Contract No. R 26891
Page 2 of 2
July 10, 2008
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
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 Agency.
Per ordinance requirement, the contract was put out for bid after three years in July 2007. This
would be the second year of the contract under the existing bid.
Last year, Rite Rate Business Solutions operated the program at a cost of $30.40 per hour. The
negotiated cost for 2008-2009 is $31.41 per hour, a 3.3% increase that runs with the Cost of
Living Index for the area. Carts also run in the evenings during special events on the street at
$37.10 per hour and this cost is built into the contract amount. The operation runs from Labor
Day Weekend `08 through July 4th Weekend `09, seven days per week. At least two carts run
each day and a third cart operates Wednesday through Saturday from October through May.
This year, Staff also recommends adding the third cart on Sunday beginning Thanksgiving
weekend through the end of April. A breakdown of the schedule is attached to the contract.
An additional $15,000 is requested this year to perform a complete restoration on the three
carts. This will include body work, paint touch-up, windshield and other part replacement,
reupholster seats, new floor coverings and motor and brake repairs.
The additional maintenance fund of $7,000 is used for preventative maintenance for batteries
and repairs to the carts through the season and must also be authorized by staff.
Staff has found Rite Rate Business Solutions to be a very viable company to operate the
Courtesy Cart program and recommends Agency approval on the above motion.
Z
by:
Moore .
Economic Development Manager
Executive Director
G \rda\Beth Longman\Staff Reports\RAMoore\Approve Court Cart Cntrct 08-09 doc
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Paul S. Gibson
Director of Finance
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Original on file with City Clerics Office
Contract No. R 26891
AGREEMENT FOR SERVICES TO OPERATE
THE EL PASEO COURTESY CART SERVICE
30 AUGUST 2008 THROUGH 5 JULY 2009
This Agreement dated July 10, 2008, is entered into between the Palm Desert
Redevelopment Agency (AGENCY) and Rite Rate Business Solutions,
(CONTRACTOR), for the operation of the El Paseo Courtesy Cart in fixed -route public
transit service within the City of Palm Desert. This Agreement shall cover the period
beginning on August 30, 2008, and ending on July 31, 2009.
Background: The Agency desires that CONTRACTOR operate the El
Paseo Courtesy Cart along a route 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 Palm Desert Redevelopment 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: Vehicles shall be in regular service seven days per
week in accordance with the attached Schedule: 10:00 a.m.
through 6:00 p.m. daily between 30 August 2008 and 5 July 2009
(days subject to change by the Agency), including holidays except
Christmas Day and Thanksgiving Day. Vehicles 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 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
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.
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 Redevelopment Agency to
determine if costs of repairs will be borne by the Agency, if
substitute vehicles might be used, or other options should be
Contract R 26891
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 $198,000 yearly for the cost of operating the courtesy cart service as
described in the contract documents. 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 $31.41 per vehicle
hour straight time and $37.10 per vehicle hour overtime for additional or reduced
NEV operation requested by the Redevelopment Agency 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 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 AGENCY in excess of the limits and coverage required in
this agreement and which is applicable to a given loss, will be available to
AGENCY.
Indemnity for liability: 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.
CONTRACTOR shall indemnify, protect, defend and hold harmless the
AGENCY, 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
i Al
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Contract R 26891
or wrongful act, error, or omission of the CONTRACTOR, its employees or
subcontractors in the performance of services under this agreement.
CONTRACTOR shall provide the following types and amounts of
insurance:
a. 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 insurance for work performed. Contractor agrees to endorse
general liability coverage required here to include as additional insureds
the AGENCY, 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 AGENCY, 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 AGENCY.
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 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.
CONTRACTOR shall not charge persons wishing to use the courtesy cart
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 Redevelopment 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
3
C VdMBeth Longman%Bus,ness SupporttCourtesy Cart Contract 08-09 doc
Contract R 26891
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 RITE RATE BUSINESS SOLUTIONS
AGENCY
Attest:
Jean Benson, Chairman
Rachelle D. Klassen, Secretary
Approved as to form:
David J. Erwin, City Attorney
4
C \rda\Beth LongmamBusiness Support\Courtesy Cart Contract 08-09 doc
Attest:
Title
Signature
Title
EXHIBIT A
SCHEDULE OF OPERATION
M - SN = Monday thru Sunday
W - ST = Wed thru Saturday
W - SN = Wed thru Sunday
ST - SN = Saturday thru Sunday
September day
mo
October
day
Days hrs
day
Days
hrs
CC1 M-SN 8
30
CC1 M-SN
8
CC2 M-SN 8
30
CC2 M-SN
8
CC3 W-SN 0
0
CC3 W-ST
8
HOURS/MONTH
480
HOURS/MONTH
January day
mo
February
day
Days hrs
day
Days
hrs
CC1 M-SN 8
30
CC1 M-SN
8
CC2 M-SN 8
30
CC2 M-SN
8
CC3 W-SN 8
22
CC3 W-SN
8
HOURS/MONTH
656
HOURS/MONTH
May day
mo
June
day
Days hrs
day
Days
hrs
CC1 M-SN 8
31
CC1 M-SN
8
CC2 M-SN 8
31
CC2 M-SN
8
CC3 W-ST 8
18
CC3 W-ST
0
HOURS/MONTH
640
HOURS/MONTH
DAYS OF OPERATION
Monday
2 Carts
Tuesday
2 Carts
Wednesday
3 Carts
Thursday
3 Carts
Friday
3 Carts
Saturday
3 Carts
Sunday
2 Carts
Sunday Nov 30
3 Carts
to April 26
MONTHS OF OPERATION
September 2 Carts
Contract No. R26891
mo
November day
mo
December
day
mo
day
Days hrs
day
Days
hrs
day
31
CC1 M-SN 8
29
CC1 M-SN
8
30
31
CC2 M-SN 8
29
CC2 M-SN
8
30
19
CC3 W-SN 8
18
CC3 W-SN
8
20
648
HOURS/MONTH
608
HOURS/MONTH
640
mo
March day
mo
April
day
mo
day
Days hrs
day
Days
hrs
day
28
CC1 M-SN 8
31
CC1 M-SN
8
30
28
CC2 M-SN 8
31
CC2 M-SN
8
30
20
CC3 W-SN 8
21
CC3 W-SN
8
22
608
HOURS/MONTH
664
HOURS/MONTH
656
mo
July day
mo
August
day
mo
day
Days hrs
day
Days
hrs
day
30
CC1 M-SN 8
5
CC1 ST-SN
8
16
30
CC2 M-SN 0
0
CC2 M-SN
0
0
0
CC3 W-ST 0
0
CC3 W-SN
0
0
480
HOURS/MONTH
40
HOURS/MONTH
16
TOTAL HOURS/YEAR
6,120
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
1 Cart