The URL can be used to link to this page

Home My WebLink AboutR29971 - 1yr Xtnsn Operation of the El Paseo Courtesy Cart SvcPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZATION OF A ONE-YEAR CONTRACT EXTENSION (CONTRACT NO. R29971) 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 Street Palm Desert, California 92260 DATE: June 23, 2011 CONTENTS: Contract No. R29971 Recommendation By Minute Motion, that the Agency Board: 1. Authorize a one-year contract extension with Rite Rate Business Solutions in the amount of $163,000 for operation ($158,000 for scheduled hours and $5,000 for operating during special events) of the El Paseo Courtesy Cart service commencing September 1, 2011 through July 4, 2012; 2. Authorize an additional $10,000 for preventative maintenance and repairs of the three carts; and 3. Authorize Chairman to execute said contracts. Funds in the amount of $173,000 are available in Courtesy Carts, Account Number 850- 4416-414-3681. Executive Summary Acceptance of staff's recommendation will allow for a contract extension 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 there is no increase in cost 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 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. GArda\Agenda Items\2011\6-23-11\CourtesyCartCntrct FY 11-12 SR 6-23-2011 doc Staff Report El Paseo Courtesy Cart Contract No. R229971 Page 2of2 June 23, 2011 Per ordinance requirement, the contract was put out for bid after three years in July 2010. 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 $25.98 per hour. Staff has negotiated no increase for the 2011-2012 contract. Carts also run in the evenings during special events on El Paseo at $27.98 per hour and this cost is built into the contract amount. The operation runs from the 2011 Labor Day weekend through the 2012 July 4tn weekend, seven days per week. At least two carts run each day and a third cart operates Wednesday through Saturday or Sunday depending on the season. The additional maintenance fund request of $10,000 is used for preventative maintenance for batteries, tires, fluids and repairs to the carts throughout the season. Repairs must 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. Fiscal Analvsis Funds are available in the Financial Plan for 2011/2012 in Account No. 850-4416-414.36-81. The carts carry shoppers throughout the El Paseo Shopping District and also to the Visitor Center. This allows shoppers the convenience of not moving their vehicles while visiting the street, which may extend their visit, increase shopping expenditures, and add additional revenues to the General Fund. Submitted-.gy: Department Head: AthMoore0onomic Development Mgr. sti McCarthy, AC4fovelopment C Paul S. Gibson, Director of Finance Approval: M. Wohlmuth, Executive Director BY RDA -� Original on f1<e with G+iy Cj, ,; k's oftir,r GArda\Agenda Items\2011\6-23-11\CourtesyCartCntrct FY 11-12 SR 6-23-2011.doc Contract No. R 29971 AGREEMENT FOR SERVICES TO OPERATE THE EL PASEO COURTESY CART SERVICE 1 SEPTEMBER 2011 THROUGH 4 JULY 2012 This Agreement dated June 23, 2011, 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 non -fixed route public transit service within the City of Palm Desert. This Agreement shall cover the period beginning on September 1, 2011, and ending on July 4, 2012. 1. 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 1 September 2011 and 4 July 2012 (days subject to change by the Agency), 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 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 1 Contract R 29971 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 $XXXXXX 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 $25.98 per vehicle hour straight time and $27.98 per vehicle hour overtime for additional 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 0 C:\Users\jstanley\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\Z8N72AB5\Courtesy Cart Contract 11-12.doc Contract R 29971 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 insured 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:\Users\jstanley\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\ZBN72AB5\Courtesy Cart Contract 11-12.doc Contract R 29971 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 in Attest: Jean Benson, Chairman Rachelle D. Klassen, Secretary Approved as to form: David J. Erwin, City Attorney Cl LIM Attest: Title Signature Title C:\Users\lstanleyWppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\Z8N72AB5\Courtesy Cart Contract 11-12.doc