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HomeMy WebLinkAbout2025-07-07 - Amendment to Agreement No. 7 with Exhibit - ExecutedAMENDMENT TO AGREEMENT NO. 7 THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on __________, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as CITY, and First Transit,Inc., hereinafter referred to as CONTRACTOR. WITNESSETH: WHEREAS, on June 16, 2016, the City entered in an Agreement with Contractor (as “First Transit”) for Transit Operations and Maintenance (the “Agreement”); and WHEREAS, on April 5, 2018, the City and Contractor entered into an Amendment to Agreement No. 1 amending the scope of services to reflect changes in the Revenue Services Hours resulting from the implementation of the 2016 Short Range Transit Plan; and WHEREAS, on January 8, 2019, the City and Contractor entered into an Amendment to Agreement No. 2 amending the scope of services to reflect the pass-thru purchase of an Automatic Vehicle Location System; and WHEREAS, On March 3, 2020, the City and Contractor entered into an Amendment to Agreement No. 3 to exercise the first of three possible extensions provisioned within the original contract at a negotiated price; and WHEREAS, On May 12, 2021, the City and Contractor entered into an Amendment to Agreement No. 4 to exercise the second of three possible extensions provisioned within the original contract at a negotiated price; and WHEREAS, On May 9, 2022, the City and Contractor entered into an Amendment to Agreement No. 5 to exercise the third of three possible extensions provisioned within the original contract at a negotiated price and to amend the term of the agreement to expire on June 30, 2024, pursuant to Paragraph 24 of the Agreement which allows for modifications to the Agreement signed by both parties; and Docusign Envelope ID: 4DF927FA-CCDC-4363-B4EB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 7/7/2025 | 10:37 AM PDT WHEREAS, the City-operated transit services have been significantly impacted by the COVID-19 pandemic; in particular, the recruitment and retention of qualified transit workers resulting in the City operating a reduced schedule for all fixed-route and tripper services since 2022; and WHEREAS, other transit and bus operators in the county offer hiring incentives to attract and retain qualified workers which limits the competitiveness of wages for workers employed by the Contractor; and WHEREAS, on September 19, 2023, the City Council of the City of San Luis Obispo authorized the sole source procurement for transit operations and maintenance services and authorized the City Manager to negotiate and execute an amendment to existing agreement with Contractor to include hiring incentives and to extend the term of the agreement; and WHEREAS, On June 28, 2024, the City and Contractor entered into an Amendment to Agreement No. 6 to extend the term of the Agreement to June 30, 2025 with an option to extend an additional one- year pursuant to Paragraph 24 of the Agreement to provide sufficient time for the City to finalize the 2025 Short Range Transit Plan and to allow sufficient time to solicit proposals during the extended term of this Agreement so as not to cause disruption to essential services for the welfare of the community; and WHEREAS, the Short-Range Transit Plan was adopted by the City Council on April 15, 2025, and City staff are now preparing a request for proposals for a new transit operations and maintenance services agreement that will incorporate the Plan’s recommendations; and WHEREAS, the Agreement requires the City and Contractor to negotiate the price formulas for any extension period, and the Contractor submitted a price formula proposal which was reviewed and accepted by the City and attached hereto and incorporated herein as Exhibit A (“Proposal Cost Form”); and WHEREAS, both parties also desire to amend the Agreement to include hiring incentives to attract and retain qualified workers needed to restore services to pre-pandemic levels and to expand services necessary to meet the City’s mode split objectives; and WHEREAS, the City and Contractor also negotiated fringe costs paid by the City to Contractor for administering, tracking, reporting, and reimbursement of the hiring incentives. Mocusign Nnvelope IM: 4MF927FA-CCMC-4363-B4NB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1.TERM OF THE AGREEMENT Term. Subject to the terms and conditions of this Agreement, the term of this Agreement shall be from July 1, 2025 through and including June 30, 2026 . 2.MAXIMUM OBLIGATION CITY agrees to pay CONTRACTOR in consideration for its services as described herein. The maximum cost to be paid by CITY to CONTRACTOR for FY 2025-26 shall not exceed $3,856,772.70 based on services detailed in Exhibit A. 3.PRICE FORMULA CITY agrees to pay CONTRACTOR for performance of the services set forth in this Agreement as follows: a.Payment of a fixed hourly rate per vehicle service hour of $52.72 in FY 2025-26. A vehicle service hour is defined as on vehicle providing passenger service for one hour during the service hours specified herein. A vehicle service hour shall be deemed to have commenced when a vehicle leaves CITY’s Transit Center (located at 990 Palm Street) to provide the services required herein and shall not include any out-of-service vehicle time used for vehicle operator breaks or lunches. A vehicle service hour shall terminate when a vehicle returns to CITY Transit Center prior to any cleaning, servicing or fueling of the vehicle. The hourly rate shall include vehicle operator wages, fringe benefits, indirect labor and all consumable material costs that can be tracked by vehicle service hour such as vehicle maintenance parts and supplies including oil. b.Payment of a fixed monthly rate of $137,377.28 in FY 2025-26; to compensate CONTRACTOR for all work to be performed under this agreement as defined in Mocusign Nnvelope IM: 4MF927FA-CCMC-4363-B4NB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 Exhibit A, except that which is included under Paragraph 5 and Paragraph 7 of this Amendment, including, but not limited to: vehicle operator non-service wages; management, controller and maintenance employee wages and said employees fringe benefits and indirect labor costs; bus washing and cleaning supplies; uniforms; report reproduction; office supplies; project telephones; all other related operational costs; and the contract management fee. c.Payment of a fixed monthly rate of $18,378.52 in in FY 2025-26 for the cost incurred in providing all vehicle and general liability insurance required under this agreement as such insurance is defined in this agreement. This amount shall be in excess of the fixed monthly rate as defined herein. CITY reserves the right, however, to alternatively secure all or part of the specified insurance coverage. Nothing in this Paragraph 3 shall obligate the City to pay Contractor any amounts which exceed the maximum obligations set forth in Paragraph 2. 4.HIRING INCENTIVES CITY agrees to pay CONTRACTOR for administration of hiring incentives of this agreement as follows: a.Payment of one-time retention bonus for full-time employees and part-time employees in FY 2025-26 or until funds are exhausted to each eligible employee, as described in Section 4.d, hired by CONTRACTOR who have a minimum of one year of continuous employment based on their respective hire date. b.Payment of temporary continued employment incentive hourly rate in FY 2025- 26 or until funds are exhausted to each eligible employee, as described in Section 4.d, hired by CONTRACTOR. The hourly rate applies to all hours worked including revenue hours, deadhead hours, extra board hours, paid breaks and lunches, and overtime hours. c.The City’s contribution toward hiring incentives, as described in Section 4.a and Section 4.b, shall not exceed $408,780 in FY 2025-26. Contractor may apply a fringe cost of no more than 20% for payroll taxes for administration of one-time retention Mocusign Nnvelope IM: 4MF927FA-CCMC-4363-B4NB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 bonus payments and no more than 20% for payroll taxes, 10% for overtime hours worked, and 2% in administrative costs, 32% cumulatively, for administration of temporary continued employment incentive hourly bonus payments. d.Eligible employees include the following positions: bus driver, road supervisor, dispatcher, operations supervisor, office clerk, maintenance technician, maintenance technician in training, and bus washer that are in Good Standing with CONTRACTOR. Good Standing means an employee that has no unexcused absences, no preventable accidents, no valid complaints made against them, adherence to schedule, and attend mandatory CONTRACTOR meetings. e.The amounts described in this section are in excess of any and all hourly rates and/or one-time bonus(es) negotiated and agreed upon in a Collective Bargaining Agreement between the CONTRACTOR and any union and are paid directly by CITY to CONTRACTOR for use. Nothing in this Paragraph 4 shall obligate the City to pay Contractor any amounts which exceed the maximum obligations set forth in Paragraph 2. Nothing in this Paragraph 4 shall be construed to create an employment relationship between the City and CONTRACTOR employees. 5.EXTRA SERVICES Special promotional and community services shall be considered extra services and will be provided only with the authorization of City and the mutual consent of the Contractor. Such services shall be defined as those non-permanent service hours operated outside of the services identified in Exhibit A. Extra services shall be considered a change to this Agreement as defined in Paragraph 6 below and shall be in excess of the maximum obligation defined in Paragraph 2. The costs for extra services will be determined at a rate per vehicle service hours in the respective year in accordance with Paragraph 3a and billed separately from the services specified in the Agreement’s Exhibit A. 6.CHANGES Mocusign Nnvelope IM: 4MF927FA-CCMC-4363-B4NB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 City, without invalidating this Agreement, may make additions to or deletions from the work to the performed. Such changes shall be specified to Contractor in writing. If justified, the “Maximum Obligation” will be adjusted accordingly. New provisions must be mutually agreeable to both City and Contractor. A shift of vehicle service hours between services with the maximum value or an increase or decrease of up to 30% change (up or down) within the current span of service would not constitute a change as defined in this Agreement, but any such shift or change shall only occur at the direction of City. 7.All other terms and conditions of the Agreement, Amendment to Agreement No. 1, Amendment to Agreement No. 2, Amendment to Agreement No. 3, Amendment to Agreement No. 4, Amendment to Agreement No. 5, and Amendment to Agreement No. 6 not expressly modified above by this Amendment to Agreement No. 7 remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. CITY OF SAN LUIS OBISPO ___________________________________ City Manager Whitney McDonald CONTRACTOR _____________________________________ First Transit, Inc Regional Vice President Rich Rogers _____________________________________ First Transit, Inc Vice President of Finance Maureen Jacobson Mocusign Nnvelope IM: 4MF927FA-CCMC-4363-B4NB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 Budget Elements Option FY26 Office Expenses: Site Manager Wages 105,314.83$ Site Manager Benefits 35,035.55$ Operations Supervisor Wages 313,108.48$ Operations Supervisor Benefits 61,923.69$ Road Supervisor Wages 125,989.25$ Road Supervisor Benefits 66,343.31$ Non-Revenue Vehicles 5,069.17$ Insurance: Materials and Supplies 4,781.38$ Telecommunications 10,893.67$ Other (Vehicle Liability Ins):188,130.50$ 32,411.78$ 66,432.97$ 8,252.41$ Subtotal 1,023,686.99$ Operating Expenses: Trainer Wages 71,042.77$ Trainer Benefits 16,828.03$ Driver Wages 1,353,927.33$ Driver Benefits 472,435.55$ Physical/Drug Tests 6,769.17$ Materials & Supplies -$ Uniforms 26,408.72$ Other (Identify):-$ 40,291.50$ Subtotal 1,987,703.07$ Maintenance Expenses: Maintenance Manager Wages 84,841.46$ Maintenance Manager Benefits 8,046.65$ Mechanic Wages 212,166.17$ Mechanic Benefits 49,422.61$ Other Maintenance Labor 27,447.90$ Other Maintenance Benefits 6,212.30$ Maintenance parts & Supplies 206,382.86$ Cleaning Supplies 11,788.26$ Lubricants & Fluids 8,580.46$ Materials & Supplies -$ Other (Identify):-$ 4,766.91$ Subtotal 619,655.60$ SLO TRANSIT PROPOSAL COST FORM General Liability Insurance Facility Utilities & Expenses Office Supplies Safety/Recruiting Environmental Charges EXHIBIT ADocusign Envelope ID: 4DF927FA-CCDC-4363-B4EB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 Option FY26 Other Expenses: Start Up Costs -$ Performance Bond -$ Corporate Overhead & Support 154,577.18$ Management Fee 38,644.30$ Other (Identify)-$ 31,264.43$ 1,241.15$ Subtotal 225,727.06$ 3,856,772.71$ Operating & Maintenance Expense 2,607,358.67$ Revenue Vehicle Insurance Expense 1,023,686.99$ Monthly Fee (Fixed Costs)137,377.28$ Vehicles Service Hour Rate (Variable Costs)52.72$ Insurance Rate Per Month 18,378.52$ Option FY26 Office Expenses Subtotal 712,784$ Insurance / Other Subtotal (Less Auto Liability)90,360$ Maintenance Expense Subtotal 619,656$ Other Expenses Subtotal 225,727$ 1,648,527$ 12 137,377.28$ Option FY26 Operating Expenses Subtotal 1,987,703$ 1,987,703$ 37,703 52.72$ Option FY26 Vehicle & General Liability Insurance Subtotal 220,542$ 220,542$ 12 18,378.52$ Option FY26 Total Annual Fixed Costs 1,648,527$ Total Annual Variable Hours Costs 1,987,703$ Total Annual Variable Ins Costs 220,542$ 3,856,773$ 102.29$ 1 This fully loaded per Service Hour rate is for comparison only and not a billing unit. Total Annual Costs ÷ Service Hours 1 VARIABLE COSTS - VEH & GEN INS TOTAL VARIABLE COSTS VEH INS # of Months Insurance Rate Per Month SUMMARY OF TOTALS Total Annual Fixed and Variable Cost Per Vehicle Service Hour Explanation of Cost Elements from SLO Transit Cost Proposal Form FIXED COSTS TOTAL FIXED COSTS # of Months Cost Per Month VARIABLE COSTS - HOURS TOTAL VARIABLE COSTS HOURS Vehicle Service Hours Payroll/IT Services Travel GRAND TOTAL Docusign Envelope ID: 4DF927FA-CCDC-4363-B4EB-05F350F9C67ADocusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 Certificate Of Completion Envelope Id: 4DF927FA-CCDC-4363-B4EB-05F350F9C67A Status: Sent Subject: Complete with Docusign: Amendment to Agreement No. 7 with Exhibit.pdf Department: Supplier: Source Envelope: Document Pages: 8 Signatures: 0 Envelope Originator: Certificate Pages: 5 Initials: 0 Amber Blevins AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 990 Palm Street San Luis Obispo, CA 93422 ablevins@slocity.org IP Address: 104.129.202.75 Record Tracking Status: Original 6/30/2025 1:21:07 PM Holder: Amber Blevins ablevins@slocity.org Location: DocuSign Signer Events Signature Timestamp Joseph Erwin Joseph.Erwin@transdev.com General Manager Security Level: Email, Account Authentication (None) Sent: 6/30/2025 1:31:02 PM Viewed: 6/30/2025 3:22:04 PM Electronic Record and Signature Disclosure: Accepted: 6/30/2025 3:22:04 PM ID: 314454d1-332e-4172-b75b-9d424bf53b38 Maureen Jacobson Maureen.Jacobson@transdev.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Whitney McDonald WMcDonal@slocity.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Alex Fuchs afuchs@slocity.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Docusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 Carbon Copy Events Status Timestamp Accepted: 6/10/2025 11:28:20 AM ID: de5b799e-e659-4dc3-800a-49c0d114e507 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/30/2025 1:31:03 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure Docusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, Carahsoft OBO City of San Luis Obispo (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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Electronic Record and Signature Disclosure created on: 5/10/2017 10:25:58 AM Parties agreed to: Joseph Erwin, Alex Fuchs Docusign Envelope ID: CAD757CE-08CA-4DA7-BF63-D4041F196981Docusign Envelope ID: 7390A275-90FC-4F5C-B4E8-174960ED6392 How to contact Carahsoft OBO City of San Luis Obispo: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: keriksso@slocity.org To advise Carahsoft OBO City of San Luis Obispo of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at keriksso@slocity.org and in the body of such request you must state: your previous e-mail address, your new e-mail address. 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