HomeMy WebLinkAboutTransdev Amendment to Agreement No. 6 with Exhibit(s) - signed 06-28-2024AMENDMENT TO AGREEMENT NO. 6
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on June
28, 2024, 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 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
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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, both parties desire 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 which will inform the scope of services
included in the request for proposals 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 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. Attached hereto as Exhibit A is a copy of the Contractor’s 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.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
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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, 2024 through and including June 30, 2025 with one (1) one-year
contract extension option as indicated in Option Terms Section.
Option Terms. CITY, at its sole discretion, may extend this agreement for up to one option
term of one year for a maximum contract term, including the initial term, of two years
(through June 30, 2026). If CITY decides to consider exercising option term years, the price
formulas for the extension year shall not exceed the quoted amounts as detailed in Exhibit
A.
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 2024-25 shall not exceed
$3,686,512.62 and 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 $50.22 in FY 2024-25
and $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
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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 $131,747.44 in FY 2024-25 and $137,377.28
in FY 2025-26; to compensate CONTRACTOR for all work to be performed under this
agreement as defined in Exhibit A, except that which is included under Paragraph
5(a) and Paragraph 7 of this agreement 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 $17,687.63 in FY 2024-25; and $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 retroactive retention bonus for full-time employees and for
part-time employees in FY 2023-24 to each eligible employee, as described in Section
4.g, hired by CONTRACTOR who have a minimum of one year of continuous
employment based on their respective hire date going back to July 1, 2022.
b. Payment of retroactive temporary continued employment incentive hourly bonus
for full-time employees and for part-time employees in FY 2023-24 to each eligible
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employee, as described in Section 4.g, hired by CONTRACTOR going back to January
1, 2024.
c. The City’s contribution toward retroactive bonuses, as described in Section 4.a
and Section 4.b, shall not exceed $233,140. Contractor may apply a fringe cost of no
more than 20% for payroll taxes for administration of retroactive retention 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 retroactive
temporary continued employment incentive hourly bonus payments.
d. Payment of one-time retention bonus for full-time employees and part-time
employees in FY 2024-25 and 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.
e. Payment of temporary continued employment incentive hourly rate in FY 2024-
25 and in FY 2025-26 or until funds are exhausted to each eligible employee, as
described in Section 4.g, 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.
f. The City’s contribution toward hiring incentives, as described in Section 4.d and
Section 4.e, shall not exceed $408,780 in each fiscal year FY 2024-25 and FY 2025-
26. Contractor may apply a fringe cost of no more than 20% for payroll taxes for
administration of one-time retention 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.
g. 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, adherence to schedule, and attend
mandatory CONTRACTOR meetings.
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h. 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 as set forth in Exhibit B.
Nothing in this Paragraph 4 shall obligate the City to pay Contractor any amounts which exceed the
maximum obligations set forth in Paragraph 2.
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
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, and Amendment to Agreement No. 5 not expressly modified above by
this Amendment to Agreement No. 6 remain in full force and effect.
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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
___________________________________
Interim City Manager
Whitney McDonald
CONTRACTOR
_____________________________________
First Transit, Inc.
Regional Vice President
Mark Elias
_____________________________________
First Transit, Inc.
Vice President of Finance
Maureen Jacobson
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Budget Elements Option FY25 Option FY26
Office Expenses:
Site Manager Wages 102,253.73$ 105,314.83$
Site Manager Benefits 33,540.55$ 35,035.55$
Operations Supervisor Wages 304,876.81$ 313,108.48$
Operations Supervisor Benefits 59,038.38$ 61,923.69$
Road Supervisor Wages 122,253.79$ 125,989.25$
Road Supervisor Benefits 62,291.82$ 66,343.31$
Non-Revenue Vehicles 4,889.57$ 5,069.17$
Insurance:
Materials and Supplies 4,601.40$ 4,781.38$
Telecommunications 10,627.97$ 10,893.67$
Other (Vehicle Liability Ins):180,877.13$ 188,130.50$
31,374.39$ 32,411.78$
63,837.04$ 66,432.97$
8,051.13$ 8,252.41$
Subtotal 988,513.71$ 1,023,686.99$
Operating Expenses:
Trainer Wages 68,973.56$ 71,042.77$
Trainer Benefits 15,948.82$ 16,828.03$
Driver Wages 1,277,344.82$ 1,353,927.33$
Driver Benefits 459,446.98$ 472,435.55$
Physical/Drug Tests 6,558.19$ 6,769.17$
Materials & Supplies -$ -$
Uniforms 25,764.61$ 26,408.72$
Other (Identify):-$ -$
39,254.79$ 40,291.50$
Subtotal 1,893,291.77$ 1,987,703.07$
Maintenance Expenses:
Maintenance Manager Wages 82,370.35$ 84,841.46$
Maintenance Manager Benefits 7,812.73$ 8,046.65$
Mechanic Wages 206,588.29$ 212,166.17$
Mechanic Benefits 47,218.65$ 49,422.61$
Other Maintenance Labor 26,726.29$ 27,447.90$
Other Maintenance Benefits 6,007.32$ 6,212.30$
Maintenance parts & Supplies 187,484.24$ 206,382.86$
Cleaning Supplies 11,530.21$ 11,788.26$
Lubricants & Fluids 8,113.82$ 8,580.46$
Materials & Supplies -$ -$
Other (Identify):-$ -$
4,655.56$ 4,766.91$
Subtotal 588,507.46$ 619,655.58$
SLO TRANSIT PROPOSAL COST FORM
General Liability Insurance
Facility Utilities & Expenses
Office Supplies
Safety/Recruiting
Environmental Charges
EXHIBIT ADocuSign Envelope ID: 1583D8DA-1BF2-4174-B491-ADE6B443A365
Option FY25 Option FY26
Other Expenses:
Start Up Costs -$ -$
Performance Bond -$ -$
Corporate Overhead & Support 147,755.38$ 154,577.18$
Management Fee 36,938.85$ 38,644.30$
Other (Identify)-$ -$
30,294.57$ 31,264.43$
1,210.88$ 1,241.15$
Subtotal 216,199.68$ 225,727.06$
3,686,512.62$ 3,856,772.70$
Operating & Maintenance Expense 2,481,799.23$ 2,607,358.65$
Revenue Vehicle Insurance Expense 988,513.71$ 1,023,686.99$
Monthly Fee (Fixed Costs)131,747.44$ 137,377.28$
Vehicles Service Hour Rate (Variable Costs)50.22$ 52.72$
Insurance Rate Per Month 17,687.63$ 18,378.52$
Option FY25 Option FY26
Office Expenses Subtotal 689,145$ 712,784$
Insurance / Other Subtotal (Less Auto Liability)87,118$ 90,360$
Maintenance Expense Subtotal 588,507$ 619,656$
Other Expenses Subtotal 216,200$ 225,727$
1,580,969$ 1,648,527$
12 12
131,747.44$ 137,377.28$
Option FY25 Option FY26
Operating Expenses Subtotal 1,893,292$ 1,987,703$
1,893,292$ 1,987,703$
37,703 37,703
50.22$ 52.72$
Option FY25 Option FY26
Vehicle & General Liability Insurance Subtotal 212,252$ 220,542$
212,252$ 220,542$
12 12
17,687.63$ 18,378.52$
Option FY25 Option FY26
Total Annual Fixed Costs 1,580,969$ 1,648,527$
Total Annual Variable Hours Costs 1,893,292$ 1,987,703$
Total Annual Variable Ins Costs 212,252$ 220,542$
3,686,513$ 3,856,773$
97.78$ 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
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