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HomeMy WebLinkAbout06/07/1994, 5 - DOCKERTY APPEAL, AMERICAN STAR TOURS i11ry�I�III�I�IIInI I III MEETING DATE: city o1" san pais oBispo June 7 1994 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Paul LeSage, Parks & Recreation Director SUBJECT: Dockerty Appeal, American Star Tours CAO RECOMMENDATION By motion, deny the appeal from Trudy Dockerty, on behalf of American Star Tours, regarding the Parks & Recreation Department's decision selecting Silverado Tours as bus transportation carriers for four summer program excursions. BACKGROUND Four trips are scheduled as a part of the 1994 Summer Recreation Program. Following City purchasing guidelines for purchases under $5,000, the Department sought informal quotations for these trips. Two companies, American Star Tours and Silverado Tours were contacted for prices. The quotations submitted are as follows: Trio American Star Silverado Water Slides (June 29) $562.32 $564.00 Giants Game (July 10) $891 .00 $890.00 Great America (July 15) $770.00 $772.00 Disneyland (August 26) $920.00 $923.00* (* rebid $891 .00) Due to the bid estimates being close, Parks & Recreation Director, Paul LeSage asked both companies to rebid. American Star Tours declined to rebid, while Silverado adjusted the cost of the Disneyland trip. Both the types and quality of service were confirmed by the staff members of each company as being nearly equal. After reviewing the above information it was decided that the City would be best served by selecting Silverado Tours, a company permanently based in the City of San Luis Obispo, to provide services for the four summer trips. FISCAL IMPACT None. CONCURRENCES Compliance with Financial Management Manual, Purchasing Policies and Procedures, Section 202-7. ATTACHMENTS: 1. American Star Tours (AST) Letter 2. AST Letter Rejecting Rebid 3. Response from CAO 4. Formal AST Appeal 5. May 10 AST Letter �_ / .f rZ 2 1994 AL ERICANSTAR TOURS 897 OAK PARK BLVD.#204,PISMO BEACH, CALIFORNIA 93449 (805)481-4646(800)501-4646 FAX(805)481-5050 April 27, 1994 John Dunn City Administrator San Luis Obispo, Ca Dear Mr. Dunn: On 4-27-94 we learned from Paul LeSage, Recreation Director,that even though our bid was the lowest,we would not be used to provide bus transportation for upcoming City of San Luis Obispo Recreataion Department trips. Mr. LeSage advised me to file an appeal of his decision. We have been providing charter bus transportation for the San Lush Obis Rec. Department and we were asked to bid on the upcoming trips, we don't understand this decision. Would you please provide us with a copy of the City Ordnance that restricts us from doing business with the City of San Luis Obispo. Please let us know that if we obtain a business license for the City of San Luis Obispo (not required of PUC operators), will that qualify us to operate bus transportation for the San Luis Obispo Recreation Department. Please consider this letter to be an appeal of Mr. LeSage's decision not to use our company. Sincerely, Robert A. Dockerty AmmmcANSTAR T ouRs 897 OAK PARK BLVD.#204,PISMO BEACH,CALIFORNIA 93449 (805)481-4646(800)501-4646 FAX(805)481-5050 April 27, 1994 Paul LeSage,Recreation Director City of San Luis Obispo Mr. LeSage: We do have buses available(as of this date) for your Recreation Departments four trips: Water Slide Fresno, June 29; Gaints game,July 10; Great America, July 15; and Disneyland, August 26. When we submitted our charter bus bids for your upcoming transportation needs for your recreation department, you advised us that we were the low bidder. However, you stated that if we remained at our present bid price, you would award the bid to another bus company, even though that bus company 's bid was higher. You stated," that it is the City of San Luis Obispo's policy, to award the contract to a company based in the City limits of San Luis Obispo, even if that bid is higher." j a m N - z o,o Nor sAy -R,;5. aw +ACT , My D10, �J We feel that the cities'policy of not accepting the low bid is very unfair. We therefore, will not resubmit our bid at a lower price, please use our current bid in determined your award. If you decision is to take the higher bid submitted by the San Luis Obpiso based company on the original bidding round, then we have no other recourse but to appeal your decision to the City Council of the City of San Luis Obispo. Please remember that there are only tm charter bus companies in the County of San Luis Obispo. When you eliminate one company from bidding on your transportation contracts, you are at the total mercy of the other company. Take the time to compare your charter bus charges for the last three years, with the bids you have received for these upcoming trips. You will find the rates are much lower than the preceding three years, when only your San Luis Obispo based company was use by your department. S' Robert A. Dockerty x- 141 J-- 3 city of sAn tuts oaspo 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 May 42 1994 Mr. Robert A. Dockerty American Star Tours 897 Oak Park Blvd. #204 Pismo Beach, CA 93449 Re: Transportation Bids This is to advise you that I have reviewed the decision of the Parks and Recreation Department to select Silverado Bus Company to provide bus transportation for four upcoming department trips. I find this decision to be consistent with City purchasing practices. As the cost of the four trips is under $5,000.00, prices can be secured through informal quotations. The quotes are: American Star. Silverado: Waterslide (June 29) $562.32 $564.00 Giants Game (July 10) $891.00 $890.00 Great America (July 15) $770.00 $772.00 Disneyland (August 26). $920.00 $923.00* (*rebid $891.00) Due to the closeness of the bids and the almost identical quality of the service, Paul LeSage, Parks and Recreation Director; determined that the City would be best-served by selecting the local company. Mr. LeSage.indicated that he had given both companies the opportunity to rebid before making his decision, and that you declined. I have attached information from the City of San Luis Obispo Financial Management Manual that Mr. LeSage used to guide his actions. The decision to accept the local bid and to request a rebid are both noted. This decision may be appealed to the City Council if you wish. Such an appeal must be made in writing and delivered to the City Clerk's Office within ten working days of receipt of this letter. If you have any further questions, please contact me. S' , ohn unn Clmin ive Officer istrat C. City Clerk P4, _ 2 o.E 5 ,rt or services required, within the time sped lied, without delay or ..ference. The ability of the bidder to provide future maintenance, repair parts and replacement of purchased equipment or supplies. - Compliance by the bidder with federal acts, executive orders and State of California statutes governing nondiscrimination in employment. - The results of any evaluation relating performance to price, such as product testing, life- cycle costing, and analysis of service, maintenance Preference may be given to suppliers who maintain places of business within the city, or .vicinity, =.Iy when all other factors, such as quality, price and service are equa . Although the support of local businesses is valued and desired, the practice of giving preference is argued to be in direct conflict with the principles of competition, thereby precluding the purchaser from . . obtaining the best competitive price. Therefore, it can only be considered a . l valid practice when it is used to break tie i . .i • 5 205- 2 K Tie bids may also be broken by readvertising for bids. If the best interest of the city will not permit the delay of readvertising, the tie may be broken through subsequent negotiation with the tie bidders and selection of the lowest resultant bid. If negotiation is utilized, minutes must be kept of ' each negotiation session and submitted to .the City Clerk to became part of the V bid file. z Re=n--,jhj1-itv =nsiv=P-5-c: of Bidders Evaluation of the above criteria assist the purchasing authority in determining the bidders' ability to supply the needed commodity on time and in conformance with the specifications, terms, and conditions included in the particular Invitation To Bid or Request For Proposal. Whenever award is made to other than the lowest bidder, the facts and bases for the award should be . well documented and remain available for public scrutiny. Well-documented records protect purchasing officials from criticism of decisions which, lacking good documentation, might later appear to have been based on favoritism. Derailed procedures for the documentation of bidder selection can be located in Part 4, under the section applicable to the nature (commodity/price) of the purchase. !I c1tv4 S� WIS OBISPO 980 Paiei Street/Post Office Box 8100 •San Luis Obispo, CA 93403.aloo APPEAL' YO CRY COUNCIL In a=rdance with the appeals procedure as atdhorized by Title-I, Chapter 1.20 of the San Luis Obispo MunidpalCode,the underslgriedherebyappeaistromthedecislonof .Mr. Paul LeSacre rendered on —May 4, 19 9 4'. which decision Consisted of the following 0.e. set forth factual situation and the grounds for submitting this appeal. Use addigonal sheets as needed): In reviewing the basis for Mr. Paul LeSage ' s decision, we are unclear as to the validity - of that decision. AmericanStar was definitely the low bidder . €or up .comming trips for the San Luis 'Obispo Park and Recreation Department. However, Mr. LeSage, felt that even though AmericanStar was the low bidder, Mr.. LeSafe stated "the bids were close eaanugh to call a ' tie (which he did) ." He then, stated that AmericanStar is not a company based in the City of San Luis Obispo and that Pismo Beach is not considered within the "vicinity" of San Luis ObispA. He then awarded the bid to the San Luis Obispo based .company .that had bid, higher. Mr. LeSage then stated" that if we bid again, -and "were-- irot a lot lower than the San Luisbased Company, he -would again give the .awarded to that company. The undersigned discussed the.deCtsion being appealed with: Mr. John Dunn on May 4 . 1994 see attached .letter from our appeal to Mr. John Dunn rity Administrative officer DATE&TIMEAPPEAL RECEit_1Rn• Appellant: Trudy Dockerty ante e Page 1; or' 5 AmericanStar Tours, Inc. Kepresename 897 Oak Park Rd #204 Address Pismo Beach, Ca 93449 ( 805 ) 481 -4646 ne C Ori to City Clerk alendared far: Copy to AdmWstraWs OEflcer. _.. . ._': -,:': :-:--.. ..._..._ .. .. .:.- Copy to the•fopowlrtg department(s): - . . . Page 3 or 5 AmEpicANSTAR TOURS 897 OAK PARK BLVD.#204, PISMO BEACH,CALIFORNIA 93449 (805)481-4646(800)501-4646 FAX(805)481-5050 *1 11 1004 172 John Dunn City Administrator City of San Luis Obispo Dear Mr. Dunn: Our San Luis Obispo County based company, which is definitely "in the vicinity" of San Luis Obispo City proper, feels the decision of the Parks and Recreation Department to reject our bid to provide bus transplantation for four upcoming department trips is highly unjust. In reviewing the basis for this decision by Paul Le Sage, we are unclear as to the validity of this decision. AmericanStar was definitely the lower bidder. We have also provided quality service to this department in the past, at an appreciable savings over other alternatives at the time. It is our understanding that a re-bid process was offered our competitor even though we were lower in the original bidding. It is apparent to us that this decision to eliminate us from servicing this contract was based on bias, not fair business practice. Perhaps the underlying motivation of the decision makers in the process should be evaluated. AmericanStar is responsible for the injection of thousands of dollars into the general fund of San Luis Obispo City. This summer alone we are under contract to provide bus transportation for an excess of 4,500 foreign visitors (over 90 bus loads). We also provide daily (365 days a year) group and individual tours of inbound airline and Amtrak passengers to the City of San Luis Obispo, San Simeon and other Central Coast locations. AmericanStar is the local tour operator and representative for Amtrak's Great America Vacations which markets worldwide. In this regard we purchase over$5,000 in oil, gasoline and diesel fuel each month(over$60,000 per year)within the City of San Luis Obispo. We are in negotiations with a number of your local hotels and restaurants for their services for over 7,500 inbound passengers visiting our area this and next year. In summation, we feel we should be treated as a"local company" which in fact we are! S- 7 T 5 ge 4 of 5 Hopefully the City of San Luis Obispo will recognize our value to their community and not follow this unjust policy of bias toward us. Hopefully San Luis Obispo will not exclude us from doing business with the City. As a member of the Greater San Luis Obispo City Council, and a supporter of the citie's activities, acting on this rejection by the city, we will feel compelled to essentially "follow suit". We wish the city no harm, however it will no longer be in our best interest to contract with the motels, restaurants and tourist attractions located within a city that refuses to recognize us as an important member of the local bushiness community. In conjunction with this action, our motorcoaches would bypass the City of San Luis Obispo entirely (fuel stops, bus repairs, tire purchases,hotels/motel stops for rooms, food etc., all fast food and restaurant stops, shopping mall stops, downtown souvenir stops,phone services,taxis, limousine, printing services, media advertising, medical lab services, medical driver exams, banking services, office machine repairs),the list goes on. At our option,the city of Santa Maria and communities outside San Luis Obispo are available to meet our needs. This course of action is not our first choice, we want to continue to support our local community as we have done the entire time we have been in business. One bus load of passengers staying one night in San Luis Obispo will spend(within the City limits of San Luis Obispo) on an average of$80.00 per person per day. When you multiply this by an average of 46 passengers per bus, a loss of over $3,600 a day per bus per day is represented to merchants of the City of San Luis Obispo. Not to mention the sales tax revenue lost to your city of approximately $6.00 per day per person. When you multiply this times 46 passengers, you may be losing approximately $276.00 per day per bus in sales tax alone. If when you multiply this by the possibility of over 163 bus loads, you may tally a total of approximately $44, 988.00 in lost sales tax revenue to the City of San Luis Obispo. AmericanStar, the only local bus company that is a major provider of INBOUND tourists to the City and County of San Luis Obispo, will also feel compelled to solicit our fellow members of various bus associations and national tour and travel associations in our boycott of the services of your city. We will also canvass local businesses for their support and evaluation of the many businesses that directly or indirectly add to the city's tax base. We feel that the City of San Luis Obispo's policy, of not awarding AmericanStar(the low bidder and a Pismo Beach based company "within your vicinity") a contract to provide transportation service to your recreation department, is in direct conflict with the principles of fair competition. Awarding that contract to a business (the higher bidder) just because they are located within the City of San Luis Obispo (and largely an OUTBOUND company), is unjust and unfair. Page 5 of 5 AmericanStar will request a hearing before the San Luis Obispo City Council and invite any and all local business owners (inside and outside the city limits of San Luis Obispo) to join us at that hearing. If other local SLO County small businesses are being treated as you have treated AmericanStar, then we are sure that they will be interested in supporting a fair business practice thereby reversing the current trend to eliminate your fellow county members from doing business in SLO City. We also will invite the television, radio and news media to attend such a meeting. San Luis Obispo County is a small economically interwoven area; we depend on tourism in order to survive. Our communities and businesses need to work together, not against each other; and when the largest city in the county favors unfair business practice, everyone suffers. If a monopoly exists, which can happen if you remove competitive bidding from your contracts, economic pricing may become a memory. Sincerely, Trudy Dockerty