HomeMy WebLinkAbout07/19/1995, 2 - SLO TRANSIT OPERATIONS CONTRACT IIIM�I9�II�IIIII��III ��I`I MEET G D TE:
cityo San LUIS OBISPO s
COUNCIL AGENDA REPORT ' "" MBER:
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FROM: Michael D. McCluskey, Public Worlp Direct
Prepared by: David Elliott, Administrative Analys� l
Harry Watson, Transit Manage11
SUBJECT: SLO Transit Operations Contract
CAO RECOMMENDATIONS:
By motion,
1) award the SLO Transit operations contract, Specification No. 95-40, to Laidlaw/Mayflower
Contract Services, Inc.
2) authorize the City Administrative Officer to execute the contract
3) appropriate an additional $118,000 to the contract services account in the Transit operating
program budget.
DISCUSSION:
Soliciting Proposals
The current SLO Transit operations contract was set to expire on June 30, 1995 but was extended
through September 30, 1995 to allow orderly procurement of a new contract.
On April 18, 1995 the Council authorized staff to request proposals from contractors to furnish transit
operations services. The following seven contractors responded:
San Luis Transportation, Inc. of Mountain View, California
ATE Management & Service Company, Inc. of Cypress, California
Red and Tan Tours, Inc. of Jersey City, New Jersey
Metro Ride, Inc. of Santa Clarita, California
Forsythe & Associates, Inc. of West Covina, California
Laidlaw/Mayflower Contract Services, Inc. of Costa Mesa, California
ATC/Vancom, Inc. of Santa Rosa, California
Evaluating Proposals
On June 20, 1995 Carolyn Dominguez, David Elliott, Wendy George, Pete Hammerich, Ken
Hampian, and Harry Watson met to evaluate the proposals. After thoroughly discussing the
qualifications presented in the proposals, each evaluator independently prepared an unranked list of
the top four contractors. Each list was identical and included the following contractors:
ATE Management & Service Company, Inc.
Laidlaw/Mayflower Contract Services, Inc.
ATC/Vancom, Inc.
Forsythe & Associates, Inc.
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INGs COUNCIL AGENDA REPORT
The evaluation panel unanimously agreed that these four contractors should be invited for interviews.
Barry Rondinella, aviation and transportation administrator from the City of Lompoc, was also invited
to participate with the evaluation panel but was ill that day and could not attend. Nonetheless, he
read the proposals and submitted a ranked list which included in the top four places the same
contractors selected by the evaluation panel.
Interviewing and Recommending Contractors
On June 27, 1995 Carolyn Dominguez, David Elliott, Pete Hammerich, and Harry Watson
interviewed the four contractors which had made the initial cut. After all interviews were completed,
each interviewer rated the contractors on a forced scale of 1 to 4, with 1 being the highest rating.
Although preliminary prices were submitted with proposals, prices were not considered in these
ratings. Tabulation of the ratings resulted in the following ranking:
ants
1. Laidlaw/Mayflower Contract Services, Inc. 6
2. Forsythe & Associates, Inc. 11
3. ATE Management & Service Company, Inc. 13
4. ATC/Vancom, Inc. 20
Based on these rankings the interview panel recommended awarding the contract to
Laidlaw/Mayflower as long as the final price submitted by Laidlaw/Mayflower were acceptable.
Although the top three contractors were deemed well-qualified and acceptable, the panel concluded
that selecting Laidlaw/Mayflower would have three distinct advantages:
o Ease of transition to a new contract. There would be no potentially disruptive transition to
new management and procedures, because Laidlaw/Mayflower is the existing contractor.
o Experience with CNG buses. By late 1995 SLO Transit will have three buses fueled with
clean-burning compressed natural gas (CNG), and Laidlaw/Mayflower demonstrated thorough
familiarity and experience with operating and maintaining this type of bus in other operations
around the state. This experience is important because the latest CNG technology is enduring
some industry-wide teething problems.
O Opportunity for future cost reductions. Laidlaw/Mayflower also has transit operations
contracts with the San Luis Obispo Regional Transit Authority (SLORTA) and the cities of
Atascadero, Morro Bay, and Paso Robles. Current federal budget deliberations include
possible reductions in transit operating assistance grants, which could cause substantial revenue
shortfalls for SLO Transit. Faced with lower contract payments, Laidlaw/Mayflower might be
able to consolidate some of its county-wide management and maintenance resources to save
money and avoid service curtailments.
Confirming Final Contract Prices
To allow resolution of price calculation issues anticipated during the interviews, the request for .
proposals provided for contractors to submit "best and final offers" after interviews were completed.
On June 28, 1995 the four interviewed contractors submitted the final total price proposals listed on
the next page for the 33-month term of the contract (10/1/95 to 6/30/98). `�
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COUNCIL AGENDA REPORT
1. Laidlaw/Mayflower Contract Services, Inc. $297969619
2. Forsythe & Associates, Inc. $2,8799900
3. ATC/Vancom, Inc. $3,008,598
4. ATE Management & Service Company, Inc. $3,201,196
Comparing In-house Cost to Contract Cost
The Mass Transportation Committee (MTC) requested that Harry Watson prepare a sealed proposal
for in-house (versus contract) operation of SLO Transit under the terms stated in the request for
proposals. This proposal for in-house operation was opened after interviews were completed and
final price proposals were submitted by contractors. The cost proposed for in-house operation over
the 33-month contract term was $3,138,417 -- $341,798 more than the low price proposal tendered by
Laidlaw/Mayflower.
CONCURRENCES:
At its meeting on July 5, 1995 the MTC reviewed the proposals and the recommendations of the
evaluation and interview panels. It had no objection to the recommendation that the contract be
awarded to Laidlaw/Mayflower.
FISCAL EWPACT:
1995/96 1996/97
Estimated Contract Cost $ 955,900 $1,027,000
Budget for Contract Operations 838.300 870.800
Additional Budget Required $ 117,600 $ 156,200
The estimated contract cost for 1995/96 is a blended figure which includes costs from 7/1/95 to
9/30/95 under the existing contract prices and costs from 10/1/95 to 6/30/96 under the new contract
prices. Budget amounts for both years were based on existing contract prices. Three factors
contributed to higher prices under the new contract:
o Higher driver compensation costs. The request for proposals specified that the contractor
should pay driver wages equal.to or higher than wages paid by other transit operations in the
region. For several years low compensation has contributed to chronically high turnover
among SLO Transit drivers, who typically jump to higher paying jobs after receiving training
and experience here. Despite efforts made under the existing contract terms to increase driver
wages, they have remained below the wages paid elsewhere in San Luis Obispo County, and
turnover has continued to be a problem.
o Higher fuel costs. The cost of both CNG and diesel fuel has risen faster than the consumer
price index which governed cost increases under the existing contract.
` Higher equipment operation and maintenance costs. The cost to operate and maintain CNG
buses is higher than the cost to operate and maintain diesel buses.
111111111l 11$101I1� city Of San L_.O s OBI SPO
COUNCIL AGENDA REPORT
Budget projections anticipate a $223,600 balance in the transit fund at the end of fiscal year 1995/96.
Consequently there is enough money available to cover the recommended additional appropriation of
$118,000 for 1995/96. But there will not be enough money from existing sources to cover additional
costs in 1996/97. As the status of federal operating assistance becomes clearer over the next four
months, Public Works and Finance staffs will work together to identify potential additional revenue
sources, regional management/maintenance consolidations, or service reductions necessary to match
service levels with the amount of ongoing revenue available.
ATTACEMM:
Contract
All proposals submitted are available for review in the City Clerk's office.
I
MEOW /AGENDA z
DATE Z:Z7. 73 ITEM #
E. FORM OF AGREEMENT
AGREEMENT NO. 95-40
Basic Transportation Agreement for Services
to Implement, Operate and Maintain a Public
Transportation System
THIS AGREEMENT, made and entered into this 2nd day of October of 1995,
by and between the SAN LUIS OBISPO CITY TRANSIT, public agency, (hereinafter
referred to as "CITY"),and Mayflower Inc. (hereinafter referred to as
"CONTRACTOR"),
WITNESSETH:
RECITALS:
1. On April 18, 1995 CITY issued its "Request for Proposals" to provide such service,
hereinafter referred to as "RFP". Also included in the RFP is a Scope of Work and
questionnaire, all of which are attached hereto and incorporated herein by this reference.
2. CONTRACTOR submitted a proposal dated June 14, 1995 (hereinafter referred to as
"Proposal"), responsive to the RFP to provide such services in the method and manner
and at the costs set forth in the proposal. Said Proposal (dated June 14, 1995) is
attached hereto as RFP, and incorporated herein by this reference.
3. CONTRACTOR represents hereby that it is in the business and fully qualified in the field
of public transportation, and is fully willing and able to satisfy the requirements of the
CITY by performing this agreement at the costs specified herein, and at the level of
service specified herein, including RFP. CITY.,,has awarded this agreement in reliance
on such representations, and on CONTRACTOR'S particular skills, experience and
abilities as represented by CONTRACTOR in RFP hereto.
AGREEMENTS:
For and in consideration of all the covenants, conditions and agreements set forth herein,
CONTRACTOR agrees to provide the implementation, operation and maintenance of a
public transportation system to CITY's satisfaction, and CITY agrees to compensate
CONTRACTOR therefore, all as specified hereinbelow.
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1. RULES OF CONSTRUCTION AND DEFINITIONS
Unless otherwise apparent from the context, or otherwise specifically defined elsewhere in this
agreement, the parties agree that the following words and phrases shall be construed and/or
defined as follows:
A. Rules of Construction
The singular includes the plural and the plural includes the singular. Shall is mandatory and
may is permissive. The masculine gender includes the feminine and neuter.
B. Definitions
i) In-service "In-service" shall mean the time during which a bus is in revenue
service, en route, or authorized detours, and stopping to load or unload
passengers, or such other time expressly approved by the Transit Manager as in-
service time, based on direct benefit to the CITY.
ii) Out-of-service "Out-of-service" shall mean all times other than the times when
the bus is in-service. Out-of-service shall include all time spent driving to the
beginning point on the route, or moving buses from one route or another route
or location, commonly called "dead-heading" in the industry, other than time
expressly approved by the Transit Manager as in-service time, based on direct
benefit to the CITY.
iii) Service and Payment Schedule " The Service and Payment Schedule" is included
in CONTRACTOR'S proposal (RFP to this agreement, attached hereto and
incorporated herein by this reference). It consists of a statement of the items of
service to be provided, the number of annual vehicle service miles and hours
provided for each route, fixed and variable costs, and maps and schedules setting
forth such routes and stops thereon. It may be amended as provided in this
agreement.
iv) Transit Manager The "Transit Manager" is the employee of CITY who is
designated by CITY as the person charged with supervision of CONTRACTOR's
performance of this agreement.
v) Revenue Service Miles/Hours "Revenue service miles" (also referred to as
"vehicle service miles", or "service hours") shall mean the miles or hours
traveled by CITY's buses, or the miles/hours spent by CONTRACTOR'S
employees in driving such buses, while on a route specified in RFP (Service and
Payment Schedule) or a detour from such route authorized by this agreement,
while in-service. Miles driven or hours spent while out-of-service are not
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revenue service miles/hours. The revenue service miles/hours shall be limited to
those of the employee actually driving the bus for passengers, and shall not
include those of other employees riding on the bus for training or other purposes.
vi) CHP "CHP" shall mean the California Highway Patrol.
vii) Contract Documents "Contract Documents" shall mean the documents specified
in Paragraph 30 and shall have the order of precedence specified therein.
viii) FTA "FTA" shall mean the Federal Transit Administration
ix) DAYS "DAYS" shall mean calendar days.
x) BUSINESS DAYS "BUSINESS DAYS" shall mean days when the Transit
Manager's Office is open for regular business.
xi) CITY Transit "CITY TRANSIT" shall mean the transit service provided in
accordance with the terms of this agreement.
xii) Mechanical Roadcall "Mechanical Roadcall" shall mean any occurrence, in or
out of service, due to a mechanical malfunction (including all components, tires,
lights, wheelchair lift, farebox, etc.) where a) a bus exchange is made, or b)
repairs in the field are made, or c) a vehicle is towed.
xiii) CITY "CITY" shall mean San Luis Obispo City Transit.
2. TERM OF AGREEMENT
A. Initial Term: The initial term of this agreement shall be for three (3) years,
commencing at 12:01 a.m. on October 2, 1995 and terminating at 11:59 p.m. on
June 30, 1998.
B. Extension Options: Upon completion of the initial three-year term, CITY, at its
sole discretion, may extend the term of this agreement up to two additional years,
subject to mutual approval between both parties regarding the Service and
Payment Schedule for the option terms (See 13F, Consideration during Option
Terms).
3. SCOPE OF WORK
Commencing on October 2, 1995, CONTRACTOR agrees with the routes, number of annual
hours and miles specified in the Service and Payment Schedule (RFP) attached hereto as part of
CONTRACTOR's proposal. Said level of service shall continue to be provided by
CONTRACTOR until an amended Service and Payment Schedule is substituted pursuant to this
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agreement, whereupon CONTRACTOR shall comply with the amended schedule from and after
its effective date.
In and for the consideration specified in contract documents, CONTRACTOR agrees to do all
things necessary to manage, operate and maintain a public transportation system to CITY's
satisfaction as required by this agreement and the corresponding Scope of Work (RFP),
including, but not limited to, the following:
A. Executive and administrative management; Employment and supervision of all
personnel, including managers, drivers, dispatchers, information clerks,
supervisors, service and maintenance personnel; Provision of qualified
supervisory personnel during all hours of operation;
B. Day-to-day operation of bus services, including provision of dispatching services
during all hours of operation;
C. Provision of a satisfactory spare parts/component/supplies inventory for CITY-
provided buses and all other equipment used to provide services per the
requirements of this agreement; provisions of all small operational related items
such as cleaning materials, rags, nuts and bolts, office supplies, and all other
materials;
D. Operation of an ongoing training, retraining and safety program for drivers,
dispatchers, mechanics, information and supervisory personnel;
E. Provision of all equipment not otherwise provided by CITY;
F. Operating a satisfactory preventive maintenance, cleaning and major component
rebuilding/replacement program and providing for the repair of all buses, two-
way radios, fareboxes, and all other CITY-provided equipment and
CONTRACTOR-provided equipment used pursuant to this agreement;
G. Assisting in public relations and sales promotion regarding the service associated
with this agreement, including telephone information services, posting transit-
related advertisements inside buses and distributing schedules to riders;
H. Establishing and maintaining a management information system on operations,
labor, training, accidents, all buses and CITY-provided equipment, as specified
under reporting of the Scope of Work;
I. Preparation of reports of the financial and other matters pertaining to the bus
services;
J. Clerical, statistical, and bookkeeping services as required by this agreement;
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�— D
K. Providing all drivers with CITY-approved uniforms and enforcing a CITY-
approved appearance code;
L. Maintaining required and appropriate insurance coverage, documentation to
CITY, having CITY listed on a policy endorsement as additional insured and
repairing or replacing CITY-provided buses and equipment in an expeditious
manner if such buses or equipment are damaged or destroyed during the term of
this agreement;
M. Performing all other work as may be necessary to comply with the requirements
of this agreement;
N. Meeting, conferring, and coordinating with CITY on a frequent basis, as
determined solely by the Transit Manager;
O. All such services shall conform to all requirements of all Federal, State and/or
Local regulatory agencies, including the Public Utilities Commission, if
applicable, CARB and the CHP, FTA, and compliance with all provisions as
spelled out in paragraph 20 (Federal, State and local laws).
4. TERMINATION
A. Duriniz Initial Term: This agreement may be terminated by the CITY during the
initial term in the event of a material breach by the CONTRACTOR. A
"material breach" for this purpose shall include, but not be limited to, the
following items:
1) Repeated failure by CONTRACTOR to operate service on time (defined
as within five minutes of schedule), or to complete trips, per the published
bus schedule requirements of this agreement. "Repeated" shall be defined
by the Transit Manager.
2) Repeated failure by the CONTRACTOR to provide a sufficient number
of operable, clean and road-worthy buses to operate full service on all
routes then in effect. "Road-worthy" for this purpose means buses which
conform to all safety requirements of the CHP, CARB, FTA and other
applicable regulatory and safety agencies, and which are fully operable,
including all components. "Repeated" shall be defined by the Transit
Manager.
3) Failure by the CONTRACTOR to operate a safe service (e.g., having an
accident record significantly higher than industry norms, as determined by
Transit Manager, evidence of continued disregard for proper bus operating
procedures, etc.).
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�- 9
4) Failure by the CONTRACTOR to provide a preventive maintenance,
repair, and component rebuilding program which in all respects conforms
to the requirements of this Agreement, the FTA, the CHP, CARB and
other applicable regulatory agencies.
5) Invalidation or lessening of warranty coverage on provided buses or
equipment due to CONTRACTOR's negligence in complying with
warranty requirements.
6) Failure by the CONTRACTOR to provide qualified personnel, mandated
training, parts, inventory, supplies, substance abuse program, or
equipment required in this agreement.
7) Repeated failure by the CONTRACTOR to provide services to the public
in a courteous manner. "Repeated" shall be defined by the Transit
Manager.
8) Failure by the CONTRACTOR to make the corrections specified by the
Transit Manager in Notices of Deficiencies, at the times specified.
9) Failure by the CONTRACTOR to submit the required reports on time or
in a truthful, accurate format.
10) Failure by the CONTRACTOR to expeditiously repair, rebuild, or replace
CITY-provided buses, equipment, facilities, or inventory damaged
destroyed, stolen, or lost while in CONTRACTOR's possession.
11) CONTRACTOR's use of CITY-provided buses, equipment, facilities, and
inventory for purposes other than those authorized by the CITY.
12) Failure by CONTRACTOR to provide adequate insurance coverage as
spelled out in paragraph 16 of this agreement.
13) Failure by CONTRACTOR to provide wage and benefit rates to
CONTRACTOR's employees which meet or exceed the rates included in
CONTRACTOR's proposal and best and final offer.
14) Significant failure by CONTRACTOR to adequately safeguard and
account for fare revenue per the requirements of this Agreement.
"Significant" shall be defined by the Transit Manager.
15) Failure to abide by all applicable Federal, State, and local laws, rules,
regulations and policies regarding transit operations as provided for in
paragraph 20.
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CITY reserves the right to terminate this agreement imniediately in the event of material breach
by the CONTRACTOR.
CITY, at its sole discretion, may terminate this agreement at any time if the CITY TRANSIT
service is eliminated due to a lack of funds. Such termination shall be effective on a thirty (30)
day written notice and the payment of all consideration earned to date by CONTRACTOR.
Acceptance of such final payment by CONTRACTOR shall constitute a complete accord and
satisfaction as between the CONTRACTOR, the CITY.
Any contract resulting from this RFP will be financed primarily with funds available to San Luis
Obispo City Transit under the California Transportation Development Act (TDA) and Federal
Transit Administration (FTA) Section 9. The contract for this service is contingent upon the
provision of these funds to San Luis Obispo City Transit. In the event that service is eliminated
or reduced due a lack of funds, San Luis Obispo City Transit reserves the right to terminate or
modify any contract.
This agreement may also be terminated at any time upon mutual agreement between both parties.
B. During Qption Terms: Termination during option terms shall be made in the same
manner and for the same reasons as during the initial term..
5. CITY'S REMEDIES ON BREACH
It is understood and agreed that in the event of failure by CONTRACTOR to perform services
required by this agreement, in addition to all other remedies, penalties and damages provided
by law, the CITY may provide such services, and deduct the cost of doing so from the amounts
due or to become due to the CONTRACTOR. The costs to be deducted shall be the actual costs
to CITY to provide such services, or the costs shown on the Service and Payment Schedule,
whichever is greater.
Failure of the CONTRACTOR to maintain CITY owned property and equipment as required in
this contract will result in the CITY withholding the next payment for services until the CITY
and CONTRACTOR can agree on an estimated cost. The CITY will than cause the property
or equipment to be repaired and make an accounting to the CONTRACTOR. Any amount held
in addition to the amount necessary to cause the repairs will be paid to the CONTRACTOR with
next months payment. The CITY'S use of this remedy to cause the repair and maintenance of
its property and equipment in no way limits the CITY from exercising it remedies for breach
of contract as described elsewhere in this contract. Costs to be billed will be actual bills from
CONTRACTOR'S hired by the CITY to complete the work and CITY costs including overhead.
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6. ADNIINISTRATION OF CONTRACT
CONTRACTOR's compliance with this agreement shall be supervised and administered by San
Luis Obispo City Transit through the office of the Transit Manager or his/her designee. During
periods when the Transit Manager is unavailable, the Transit Manager's designee shall
administer this agreement. This paragraph shall not relieve CONTRACTOR of any obligation
or liability undertaken by virtue of this agreement.
7. SELECTION OF ON-SITE MANAGEMENT
The person serving as site supervisor (see IX E of Scope of Work) shall have past supervisory
experience at an appropriately high level, shall be approved by CITY and shall not perform
duties for CONTRACTOR other than managing CITY operations without notification of and
prior approval from the Transit Manager. Approval shall not be unreasonably withheld. In
addition, CONTRACTOR shall designate an agent authorized to bind the CONTRACTOR in all
aspects of CONTRACTOR's performance of this agreement, who shall be available at all times,
either by phone or in person, to make decisions or provide coordination as necessary.
The above individuals shall be responsible for monitoring all aspects of the system operation and
maintenance, including, but not limited to: ridership, quality of service, fare collection, Section
15 surveys, maintenance and repair work, attitudes, motivations, and performance of all
personnel that deal with the public.
8. BUSES, EQUIPMENT & RADIOS
CITY shall provide CONTRACTOR with the buses and equipment specified in the Scope of
Work and RFP, or any subsequent amendments thereto. CONTRACTOR shall supply all other
equipment necessary to operate the transit system as specified in this agreement.
CONTRACTOR acknowledges that use of radio frequency is contingent upon the proper conduct
being exercised by CONTRACTOR's employees in transmitting and receiving (industry,
accepted radio procedures will be maintained).
CONTRACTOR shall install a CONTRACTOR-provided base station and CONTRACTOR-
provided antenna at CONTRACTOR's base of operations at CONTRACTOR's expense.
9. EMPLOYEE QUALIFICATIONS/TRAINING/WORK RULES
CONTRACTOR shall comply with the employee qualification, training, and work rule
requirements specified in the Scope of Work for all employees, whether full-time or part-time.
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10. TELEPHONE SERVICE
Contractor shall comply with the RFP relative to the delineation of telephone requirements.
Upon termination or expiration of the agreement, CONTRACTOR shall release all telephones
associated with CITY services for CITY's or its future bus CONTRACTOR's use.
11. HOLIDAYS
CONTRACTOR agrees to furnish services in accordance with Schedules established by CITY.
Non-operating days and/or holiday schedules shall coincide with those outlined in the RFP.
The Transit Manager shall designate the day of observance of all holidays after conferring with
CONTRACTOR. The Transit Manager shall provide no less than ten (10) days notice to
CONTRACTOR of the day(s) designated for the holiday schedule. Holidays are printed in the
CITY bus schedule.
If a holiday falls on a Sunday, the Transit Manager may designate both the Sunday and the
following Monday for the holiday schedule.
If a holiday falls on a Saturday, the Transit Manager may designate both the Saturday and the
previous Friday for the holiday schedule.
CONTRACTOR shall post notices of holiday schedule in all buses used in CITY TRANSIT
service at least.one week in advance of each upcoming holiday, as well as issue press releases
to local newspapers and television stations regarding such.
12. CHANGES IN LEVEL OF SERVICE
The level of service required of CONTRACTOR shall be as specified in the Service and
Payment Schedule which is in effect at the time in question. Changes in the level of service
shall not be authorized until the effective date of an amended Service, except emergency
adjustments as specified in Subparagraph A below. Amendments to the Service and payment
Schedule may be made as set forth below in Subparagraph B through E, inclusive.
A. Emergency Adjustments by CONTRACTOR Notwithstanding the requirements of the
Service and Payment Schedule then in effect, CONTRACTOR unilaterally.may modify
the level of service provided only in the event of an emergency which requires a detour
or an adjustment in routing or scheduling under circumstances where there is no
opportunity for the parties to confer; provided, however, that such changes do not
"substantially change" the level of service, as defined in Subparagraph 12-B, provided
pursuant to the Service and Payment Schedule then in effect. The Transit Manager shall
be notified immediately when such adjustments occur. The Transit Manager shall specify
steps to be taken by CONTRACTOR to notify patrons of the change to routing and/or
scheduling necessitated by such emergency adjustments, and/or modifications to the
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emergency adjustments made by CONTRACTOR. Increases or decreases in
compensation arising from such adjustments shall equal actual increases or decreases in
the number of vehicle route miles or hours expended by CONTRACTOR, and shall be
made in the next monthly billing.
B. Substantial Change in Service Level Defined Any proposed change in the service level
shall be deemed a "substantial change" if such results in
i) an increase or decrease of 20% or more in the total number of vehicle service
miles/hours provided for combined fixed route services, as set forth on the
Service and Payment Schedule most recently adopted by the CITY; and/or
ii) a change in the number of buses and trolleys CONTRACTOR is required to
maintain or provide as a result of service changes; and/or
iii) the addition or deletion of an entire route in excess of 6 routes including the
trolley route.
All other changes in the level of service shall be deemed non-substantial changes.
C. Non-Substantial Changes in Service Level by Transit Manager The CITY, through the
Transit Manager, may order a non-substantial change in the level of service, either by
way of an increase or a decrease, by providing a written order to CONTRACTOR
specifying the change and the effective date. CONTRACTOR agrees to comply with
such written orders. In his sole discretion, the Transit Manager may elect to treat any
such change as a substantial change, and use the process set forth in Subparagraph 12-D
below.
Any contract resulting from this RFP will be financed primarily with funds available to
San Luis Obispo City Transit under the California Transportation Development Act
(TDA) and Federal Transit Administration (FTA) Section 9 Funds. The contract for this
service is contingent upon the provision of these funds to San Luis Obispo City Transit.
In the event that service is eliminated or reduced due to a lack of funds, San Luis Obispo
City Transit reserves the right terminate or modify any contract.
D. Substantial Change in Service Level by CITY
A substantial increase or decrease in the level of service, as defined in Subparagraph 12-
B, may be ordered by the CITY, and CONTRACTOR agrees to provide such services,
provided that the parties shall agree as to cost adjustments pursuant to Subparagraph E
below, or as otherwise provided. CONTRACTOR shall be given no less than seven (7)
days' written notice of the intent to order such substantial increase, and shall have an
opportunity to be heard prior to the adoption of such order. Such order shall not be
effective sooner than thirty (30) days from the date of its adoption, unless mutually
44
agreed otherwise in writing by both parties.
E. Determining Costs After a Substantial Change in Service After a Substantial Change in
the level of service, as defined in Subparagraph 12-13, the Service and Payment Schedule
shall be adjusted to reflect the actual changes ordered in the vehicle service miles/hours,
using the unit costs for each then in effect.
F. . Changes in Subsidiary Duties The Transit Manager may request changes in
CONTRACTOR's reporting requirements, training/safety program, preventive
maintenance and repair program, inventory requirements, public information and
dispatching services, testing procedures, personnel practices and/or other operating
details not resulting in changes in level of service. If said changes differ from
contractual requirements and if CONTRACTOR declines such requests, or such requests
(if beyond contractual requirements) would result in a material increase in
CONTRACTOR's costs or in the time required for performance, CONTRACTOR shall
notify CITY and within seven (7) days after receipt of such order shall submit a claim
detailing such objections and/or increases. The parties shall negotiate an equitable
settlement of CONTRACTOR's claim, which reflects actual increases or decreases in
CONTRACTOR's total costs to perform this agreement caused by the change in
question. In the case of ordered service/subsidiary duty changes for which
CONTRACTOR has provided a price under "options" (in the RFP), such rates shall
apply.
13. CONSIDERATION; METHOD AND TIME PAID; ADJUSTMENTS
A. Consideration In and for complete consideration of all services to be provided by
CONTRACTOR, CITY monthly, in arrears, shall pay those rates specified in the Service
and Payment Schedule (RFP) in effect at the time that the services were provided for
each month and each in-service vehicle service mile/hours provided during the billing
period. In the event that a modification to the Schedule is effective during a billing
period, the consideration shall be prorated on a daily basis. Such consideration is the
sole and exclusive consideration for all services to be provided by CONTRACTOR
pursuant to this agreement, including the CONTRACTOR's costs for repair and
maintenance operations which conform to the CRP's, FTA, and CARB requirements.
B. Claims: Form: Time of Submission Commencing on October 2, 1995, and monthly
thereafter, no later than the 15th of the month following the month during which the
services were provided, CONTRACTOR shall submit its claim for compensation to the
Transit Manager. Such claims shall specify in detail the dates of service, and designate
by route and the type of day (i.e., weekday, Saturday, Sunday/Holiday) the number of
vehicle service miles/hours actually provided for which compensation is claimed. A
summary of vehicle service miles/hours missed by route and date shall be submitted with
CONTRACTOR's claim.
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CITY may issue forms for such claims, and CONTRACTOR will utilize and include all
information required by such forms in submitting its claims.
In addition, CITY may request, and CONTRACTOR shall make available, such books
and/or records required to enable verification of a claim.
C. Payment of Claims: Time: Dispute Resolution Upon receipt of a claim, the Transit
Manager shall verify its accuracy and completeness. If the claim is accurate, and
CONTRACTOR is entitled to payment thereon, the Transit Manager shall approve the
claim and forward it for payment to the appropriate CITY offices.
Approved claims shall be due and payable on the 30th day after receipt of the complete
claim and all required verification and reports.
If the Transit Manager disputes all or part of a claim, he shall approve the undisputed
portion for payment, and deduct the disputed portion. The amounts and reasons for a
disputed claim shall be documented to CONTRACTOR within fifteen (15)days of receipt
of invoice.
The parties shall then confer regarding resolution of the dispute.
E. Consideration During Option Terms In the event that CITY extends the terms(s) of this
agreement beyond the initial term, the consideration paid to the CONTRACTOR during
the extended term(s) shall be subject to mutual agreement between both parties. In the
event a mutual agreement is not reached between the parties within 180 days prior to
termination, the parties, by mutual consent, may extend the term of the agreement and
continue negotiations until agreement is reached.
F. Liquidated Damages: Failure to perform scheduled maintenance as spelled out in scope
of work, section VII (B, K, L, M, and P-9) will result in a liquidated damage charge of
$100.00 per occurance. Missed loops of service (more than 15 minute late) due to
mechanical breakdowns will result in a liquidated damages charge of $100.00 per
occurance.
14. FARES
A. All fares collected by the CONTRACTOR are the property of CITY. All fares collected
are to be counted and deposited into CONTRACTOR's checking account by a local bank
chosen by the CITY. Fares become the property of the Contractor at the time City
makes payment for services and uses "fares deposited" as part of the payment.
B. Fares will be accounted for on a daily basis and a separate bank deposit will be generated
for each days fares collected. Fare vaults will be opened and counted by no less than
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two persons in attendance at all times. The second person position will be rotated at
least weekly and a broad base pool of employee personnel will be used for this position.
Variations of more than FIVE DOLLARS ($5.00) per service day in the farebox report
when compared to the ridership by class report will be separately reported to the CITY.
This variation report will be included with the monthly statistical reports. The Transit
Manager may observe the fare counting from time to time.
C. CITY reserves the right to set fare rates for passengers at its sole discretion. Such rates
may be revised from time to time by CITY, and set at such levels as may be determined
to be in the best interest of the CITY. Prior to revising such fares, CITY shall consider
CONTRACTOR's advice regarding the appropriate fares.
D. CITY shall provide CONTRACTOR with written instructions on fare changes at least ten
(10) days before such fares become effective, and CONTRACTOR shall collect such
fares as are currently in effect. CONTRACTOR shall not be required to make change
for fares, but shall prepare and post notices on all buses that the correct change for fares
or applicable passes is required to board the bus.
15. INDEMNIFICATION AND SAVE HARMLESS
CONTRACTOR undertakes and agrees to defend, indemnify, and hold harmless the CITY, its
City Council, officers, agents, employees, assigns, and successors in interest from and against
all suits and causes of action, claims, losses, demands, and liabilities, including but not limited
to attorneys fees and cost of litigation, damage or liability of any nature, whatsoever, for death
or injury to any person, including CONTRACTOR's employees and agents (who shall also be
covered by CONTRACTOR's worker's compensation insurance), or damage or destruction of
any property of either party hereto or of third parties, arising in any manner by reason of, or
incident to, the performance of this contract on the part of CONTRACTOR.
16. LIABILITY AND OTHER INSURANCE .
A. Public Liability, Bodily Injury. Property Damage CONTRACTOR shall secure and
maintain in force for the term hereof, insurance policies which will protect the CITY,
its officers, employees, and/or agents and their officers, employees, and/or agents, from
claims for bodily, death, or property damage which may arise from CONTRACTOR's
operations under this agreement, whether such operations be by CONTRACTOR or by
any agent of CONTRACTOR or anyone employed by him directly or indirectly. Said
policies shall be not for less than the following amounts and shall name CITY as
additional insureds via endorsement:
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1. Public Liability, Bodily Injury, and Property Damage Insurance:
a) Injury or death of one or more than one
person in a single occurrence: $10,000,000 per occurrence
b) Property Damage: $1,000,000 per occurrence
2. Automobile and Truck Public Liability, Bodily Injury, and Property Damage:
a) Injury or death of more than one
person in a single occurrence: $10,000,000 per occurrence
b) Property Damage: $1,000,000 per occurrence
B. CONTRACTOR shall provide the following insurance coverages:
1. Collision coverage on all CITY Replacement Value
provided buses
2. Property coverage on all CITY Replacement Value
provided buses (damage, destruction,
theft, or loss)
3. Property coverage on all other CITY- Replacement Value
provided equipment and inventory
Such insurance shall not exclude coverage for any liabilities assumed by CONTRACTOR
pursuant to this agreement.
C. 1. Workers' Compensation Insurance Before execution of this agreement,
CONTRACTOR shall file the following signed certification:
"I am aware of, and will comply with, Section 3700 of the Labor Code, requiring
every employer to be insured against liability or Workers' Compensation or to
undertake self-insurance before commencing any of the work."
CONTRACTOR shall also comply with Section 3800 of the Labor Code by
securing, paying for, and maintaining in full force and effect for the duration of
the CONTRACT, complete Workers' Compensation Insurance, and shall furnish
a Certificate of Insurance to CITY before execution of this agreement.
CONTRACTOR shall indemnify CITY, its officers and employees, for any
claims in law or equity occasioned by failure of CONTRACTOR to comply with
this paragraph. .
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CONTRACTOR shall also carry such other insurance as may be required by law.
2. Employer's Liability Insurance - $1,000,000 per occurrence
D. Theft Insurance CONTRACTOR shall provide insurance or other security acceptable by
TRANSIT MANAGER, protecting CITY from theft of collected fares in an amount of
no less than FIVE THOUSAND ($5,000) DOLLARS per occurrence. Theft insurance
on all CITY-provided buses and equipment shall be provided per Subparagraph 16B of
this agreement.
E. Insurance Policies. Certificates&Cancellation CONTRACTOR shall within fifteen (15)
days of execution and delivery of this agreement deliver to CITY copies of Certificates
of Insurance showing evidence of required coverage, as well as the required Additional
Insured Endorsements. All policies must also be endorsed to state that all coverage for
the City shall be given at least thirty days notice prior to termination, cancellation or
reduction of coverage. All policies must meet a Best A VII rating or better.
In the event CONTRACTOR fails to maintain the insurance as herein provided, CITY
may take out such insurance and the cost thereof to CITY shall be deducted from the
compensation due CONTRACTOR by CITY at the time the next payment is due. This
option in no way lessens the City's right to termination as spelled out in paragraph 4-A-
12.
F. Notification of Actions CONTRACTOR hereby covenants and agrees to notify CITY
of any and all claims or actions filed against CONTRACTOR or any agent, servant or
employee of CONTRACTOR, for any cause whatsoever arising out of..the operations to
be conducted by CONTRACTOR pursuant to this agreement, said notification to occur
within a reasonable time after notification to CONTRACTOR, but in no event exceeding
seven (7) calendar days.
17. . INSURANCE CLAIMS
This section specifies CONTRACTOR's duty to pursue insurance claims for CITY-provided
buses or equipment damaged or destroyed while in CONTRACTOR's possession.
A. CONTRACTOR agrees to maintain and return such buses and equipment to CITY in the
same condition as when provided by CITY, excepting only reasonable wear and tear not
attributable to CONTRACTOR's failure to perform its maintenance obligations pursuant
to this agreement. CONTRACTOR shall provide enough substitute buses to meet all
peak and off-peak hour requirements of this agreement pending repair or replacement of
any CITY-provided bus or equipment damaged, stolen, lost or destroyed while in
CONTRACTOR's possession at no cost to the CITY.
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B. If such buses or equipment are damaged or destroyed while in CONTRACTOR's
possession, CONTRACTOR, shall immediately obtain estimates and repair or replace
such in an expeditious manner, avoiding, to the best extent practicable, use of damaged
buses or equipment in service until they have been repaired or replaced.
The CONTRACTOR and its insurance carrier shall extend full cooperation to CITY and
its insurance carrier in claims adjustment against third persons. In the event that the
CONTRACTOR"s or his insurance carrier's actions result in a disclaimer of coverage
by the CITY's insurance carrier(s), the CONTRACTOR shall indemnify CITY for its
total costs resulting therefrom.
Neither the CONTRACTOR nor his insurance carver shall file any lawsuit against any
third person for any loss subject to this section without the CITY's prior written consent,
which shall not be unreasonably withheld.
18. MAINTENANCE RECORDS AND INSPECTIONS
Complete and accurate records for all maintenance and inspections shall be kept and made
available to CITY, the FTA, CHP, CARB and/or other regulating agencies with jurisdiction
when requested. CITY maintains the right to inspect, examine and test, at any reasonable time,
any equipment used in the performance of the work in order to insure compliance with this
agreement. Such CITY inspection shall not relieve the CONTRACTOR of the obligation to
continually monitor the condition of such buses and to identify and correct all substandard or
unsafe conditions immediately upon discovery. CONTRACTOR shall transport all such vehicles
at CONTRACTOR's expense, to CITY's designated inspection facilities when requested by the
CITY. In the event that CONTRACTOR is instructed by CITY, the CHP, FTA, CARB or any
other regulatory agency to remove any equipment from service due to mechanical and/or safety
reasons, CONTRACTOR shall make any and all specified corrections and repairs to the
equipment and resubmit the equipment for inspection and testing before it is placed in service.
19. FEDERAL, STATE AND LOCAL LAWS
A. CONTRACTOR warrants and covenants that it shall fully and completely comply with
all applicable Federal, State and local laws and ordinances, and all lawful orders, rules
and regulations issued by any authority with jurisdiction in all aspects of its performance
of this agreement.
B. CONTRACTOR shall comply with all applicable standards, orders, or requirements
issued under Section 306 of the Clean Air Act (42 USC 1857 (h)), Section 508 of the
Clean Water Act (33 USC 1368), Executive Order 11738, and Environmental Protection
Agency regulations (40CFR, Part 15), which prohibits the use under non-exempt Federal
CONTRACTS, grants or loans of facilities included on the EPA List of Violating
Facilities.
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C. DISADVANTAGED BUSINESS ENTERPRISE
(1) Policy It is the policy of the Department of Transportation that disadvantaged
business enterprises as defined in 49 CFR Part 23 shall have the maximum
opportunity to participate in the performance of contracts financed in whole or
part with Federal funds under this agreement. Consequently the DBE
requirements of 49 CFR Part 23 apply to this agreement. The CITY has set a
13% DBE goal in connection with its Transit Operations.
(2) DBE Obligation The contractor agrees to ensure that disadvantaged business
enterprises as defined in 49 CFR Part 23 have the maximum opportunity to
participate in the performance of contracts and subcontracts financed in whole or
in part with Federal funds provided under this agreement. In this regard all
contractors shall take all necessary and reasonable steps in accordance with 49
CFR Part 23 to ensure that disadvantaged business enterprises have the maximum
opportunity to compete for and perform contracts. Contractor shall not
discriminate on the basis of race, creed, color, national origin, age, or sex in the
award and performance of DOT-assisted contracts.
D. EQUAL EMPLOYMENT OPPORTUNITY/BASIC REQUIREMENTS
In connection.with the execution of this contract, the contractor shall not discriminate
against any employee or applicant for employment because of race, religion, color, sex,
age, or national origin. The Contractor shall take affirmative action to ensure that
applicants are employed, and that employees are treated during employment without
regard to their race, color, religion, sex, age, or national origin. Such action shall
include, but not be limited to, the following: employment, upgrading, demotion or
transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or
other forms of compensation, and selection for training, including apprenticeship.
Contractor further agrees to insert a similar provision in all subcontracts, except
subcontracts for standard commercial supplies or raw materials.
E. TITLE VI CIVIL RIGHTS ACT OF 1964
During the performance of this contract, the contractor, for itself, its assignees and
successors in interest, agrees as follows:
(1) Compliance with Regulations: The contractor shall comply with the Regulations
relative to nondiscrimination in federally-assisted programs of the Department of
Transportation (hereinafter,"DOT") Title 49, Code of Federal Regulations, Part
21, as they may be amended from time to time (hereinafter referred to as the
Regulations), which are herein incorporated by reference and made a part of this
contract.
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2'1_71<
(2) Nondiscrimination: The contractor, with regard to the work performed by it
during the contract, shall not discriminate on the grounds of race, religion, color,
sex, age, or national origin in the selection and retention of subcontractors,
including procurements of materials and leases of equipment. The contractor
shall not participate either directly or indirectly in the discrimination prohibited
by section 21.5 of the Regulations, including employment practices when the
contract covers a program set forth in Appendix B of the Regulations.
(3) Solicitations for Subcontracts. Including Procurements of Materials and
Equipment: In all solicitations either by competitive bidding or negotiation made
by the contractor for work to be performed under a subcontract, including
procurements of materials or leases of equipment, each potential subcontractor or
supplier shall be notified by the contractor of the contractor's obligations under
this contract and the regulations relative to nondiscrimination on the grounds of
race, religion, color, sex, age, or national origin.
(4) Information and Reports: The contractor shall provide all information and reports
required by the Regulations or directives issued pursuant thereto, and shall permit
access to its books, records, accounts, other sources of information, and its
facilities as may be determined by CITY or the Federal Transit Administration,
as appropriate, and shall set forth what efforts it has made to obtain the
information.
(5) Sanctions for Noncompliance: In the event of the contractor's noncompliance
with the nondiscrimination provisions of this contract, CITY shall impose such
contract sanctions as it or the Federal Transit Administration may determine to
be appropriate, including, but not limited to:
(a) Withholding of payments to the contractor under the contract until the
contractor complies, and/or,
(b) Cancellation, termination or suspension of the contract, in whole or in
Pte•
(6) Incorporation of Provisions: The contractor shall include the provisions of
paragraph (1) through (6) of this section in every subcontract, including
procurements of materials and leases of equipment, unless exempt by the
regulations, or directives issued pursuant thereto. The contractor shall take such
action with respect to any subcontract or procurement as CITY or the Federal
Transit Administration may direct as a means of enforcing such provisions
including sanctions for noncompliance: Provided, however, that, in the event a
contractor becomes involved in, or is threatened with, litigation with a
subcontractor or supplier as a result of such direction, the contractor may request
CITY, and, in addition,the contractor may request the services of the Attorney
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General in such litigation to protect the interests of the United States.
F. CONSERVATION
Contractor shall recognize mandatory standards and policies relating to energy efficiency
which are contained in the State energy conservation plan issued in compliance with the
Energy Policy and Conservation Act (42 USC Section 6321 et seq). CITY water
conservation policy applies to this contract.
G. LABOR PROVISIONS
(1) Overtime Requirements No contractor or subcontractor contracting for any part
of the contract work which may require or involve the employment of laborers
or mechanics shall require or permit any such laborer or mechanic in any work
week in which he or she is employed on such work to work in excess of eight
hours in any calendar day or in excess of forty hours in such work week unless
such laborer or mechanic receives compensation at rate not less than one and one-
half times the basic rate of pay for all hours worked in excess of eight hours in
any calendar day or in excess of forty hours in such work week, whichever is
greater.
(2) Violation: Liability for Unpaid Wages: Liquidated Damages In the event of any .
violation of the clause set forth in subparagraph (b) (1) of 29 CFR Section 5.5,
the contractor and any subcontractor responsible therefor shall be liable for the
unpaid wages. In addition, such contractor and subcontractor shall be liable to
the United States (in the case of work done under contract for the District of
Columbia or a territory, to such district or to such territory'), for liquidated
damages. Such liquidated damages shall be computed with respect to each
individual laborer or mechanic, including watchmen and guards, employed in
violation of the clause set forth in subparagraph (b) (1) of 29 CFR Section 5.5 in
the sum of $10 for each calendar day on which such individual was required or
permitted to work in excess of eight hours or in excess of the standard of work
week of forty hours without payment of the overtime wages required by the
clause set forth in subparagraph (b) (1) of 29 CFR Section 5.5.
(3) Withholding for Unpaid Wages and Liquidated Damages DOT or CITY shall
upon its own action or upon written request of an authorized representative of the
Department of Labor withhold or cause to be withheld, from any monies payable
on account of work performed by the contractor or subcontractor under any such
contract or any other Federal contract with the same prime contractor, or any
other Federally assisted contract subject to the Contract Work Hours and Safety
Standards Act, which is held by the same prime contractor, such sums as may be
determined to be necessary to satisfy any liabilities of such contractor or
subcontractor for unpaid wages and liquidated damages as provided in the clause
53
set forth in subparagraph (b) (2) of 29 CFR Section 5.5.
(4) Payroll Records The contractor or subcontractor shall maintain payrolls and basic
payroll records during the course of the work and shall preserve them for a
period of three years from the completion of the contract for all laborers and
mechanics, including guards and watchmen, working on the contract. Such
records shall contain the name and address of each such employee, social security
number, correct classifications, hourly rates of wages paid, daily and weekly
number of hours worked, deductions made, and actual wages paid. Further,
CITY shall require the contracting officer to insert in any such contract a clause
providing that the records to be maintained under this paragraph shall be made
available by the contractor or subcontractor for inspection, copying, or
transcription by authorized representatives of DOT and the Department of Labor,
and the contractor or subcontractor will permit representatives to interview
employees during working hours on the job.
(5) Subcontracts The contractor or subcontractor shall insert in any subcontracts the
clauses set forth in subparagraph (1) through (5) of this paragraph and also a
clause requiring subcontractors to include these clauses in any lower tier
subcontracts. The prime contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses set forth in
subparagraph (1) through (5) of this paragraph.
H. CONFLICT OF INTEREST
No employee, officer, or agent of CITY shall participate in selection, or in the award or
administration of a contract if a conflict of interest, real or apparent, would be involved.
Such a conflict would arise when the employee, officer or agent, any member of his
immediate family, an organization which employs, or is about to employ, has a financial
or other interest in the firm selected for award.
CITY's officers, employees, or agents shall neither solicit nor accept gratuities, favors
or anything of monetary value from contractors, potential contractors, or parties of
subagreements.
I. INTEREST OF MEMBERS OF, OR DELEGATES TO, CONGRESS
In accordance with U.S.C. Section 431, no member of, or delegates to, the Congress of
the United States shall be admitted to a share or part of this agreement or to any benefit
arising therefrom.
J. DEBARRED BIDDERS
CONTRACTOR, including any of its officers or holders of a controlling interest, is
54
obligated to inform CITY whether or not it is or has been on any debarred bidders' list
maintained by the United State Government. Should CONTRACTOR be included on
such a list during the performance of this project, it shall so inform CITY.
K. It shall be a condition of this CONTRACT, and shall be made a condition of each
subcontract entered into pursuant to this CONTRACT, that the CONTRACTOR and any
subcontractor shall not require any laborer or mechanic employed in connection with the
performance of the CONTRACT to work under working conditions which are unsanitary,
hazardous or dangerous to his health or safety, as determined under the California
Occupational Safety and Health Act of 1973 (Chapter 993, Statute of 1973).
L. Contractor shall comply with the requirements of the California Fair Employment and
Housing Act.
M. CONTRACTOR shall hold CITY harmless from any claims or charges by reason of
CONTRACTOR's or any subcontractor's failure to comply with the above Acts or any
regulations adopted pursuant thereto and shall reimburse CITY for any fines, damages
or expenses of any kind incurred by it by reason of said failure.
20. NON-DISCRIMINATION
A. Equal Employment Opportunity In connection with the execution of this agreement,
CONTRACTOR shall not discriminate against any employee or applicant for employment
because of race, religion, color, sex, age, or national origin or ancestry.
CONTRACTOR shall take affirmative action to ensure that applicants are employed, and
that employees are treated equally during their employment without regard to their race,
religion, color, sex, age, or national origin or ancestry. Such actions shall include, but
not be limited to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoff, or termination; rates of pay, or other form
of compensation; and selection for training, including apprenticeship. CONTRACTOR
must submit aproperly executed and current Employer Information Report(EEO-1) upon
request by CITY.
B. Non-Discrimination in Service CONTRACTOR shall not discriminate, nor allow any
of its officers, employees, or agents to discriminate against any passenger or patron
because of race, color, sex, age, or national origin or ancestry complying with all the
provisions of the Americans with Disabilities Act.
C. Notice of Discrimination Complaint CONTRACTOR shall promptly notify CITY of any
discrimination complaints.
D. CONTRACTOR shall, at its sole cost and expense, conform to any final orders issued
by any State or Federal agency with jurisdiction to correct CONTRACTOR's
Discrimination in employment and/or ridership and shall fully save harmless and
55
indemnify CITY in this regard.
21. PERMITS TO OPERATE
At its sole cost and expense, CONTRACTOR shall obtain any and all permits, licenses,
certificates, or entitlements to 'operate as are now or hereafter required by any agency,
specifically including the California Public Utilities Commission (if a PUC permit is required),
the CHP, FTA or CARB, to enable CONTRACTOR to perform this agreement, and shall
provide copies of all such entitlements to CITY when received by CONTRACTOR.
In the event that any aspect of this agreement requires prior approval by the PUC, the
CONTRACTOR shall submit necessary application forms. Both parties shall appear as
necessary and cooperate in the Commission approval process. CITY reserves the right to
oppose, support or be neutral on any such request and on the PUC's ruling thereon.
CONTRACTOR covenants to obtain all such approvals before commencing operations, and to
conform to the PUC ruling thereon, at its sole cost and expense.
22. NOTICE OF DEFICIENCIES
The Transit Manager, or his/her designee, may issue a Notice of Deficiencies to
CONTRACTOR, specifying areas of unsatisfactory performance and specifying what
improvements are necessary to correct the deficiency. Such notice shall specify the provision(s)
of this agreement which address the issue.
CONTRACTOR shall correct the deficiency(ies) within reasonable time limits specified by the
CITY.
23. REQUEST FOR PROPOSALS AND PROPOSAL
In addition to the specific duties of CONTRACTOR set forth herein, the parties intend that the
public transportation system described in the RFP is that which CONTRACTOR shall provide.
CONTRACTOR therefore covenants to do all things required by the RFP and proposal, whether
or not specifically recited herein.
24. FORCE MAJEURE
CONTRACTOR shall not be charged, nor shall CITY demand from CONTRACTOR, damages
because of failure in providing the services indicated in this agreement due to unforeseeable
causes beyond the control and without the fault or negligence of CONTRACTOR. Such causes
of excusable delay may include acts of public enemy, fires, floods, snow storms, epidemic,
quarantine, restrictions, strikes, freight embargoes, public road closures, but in every case the
delay is excusable only for so long as, and to the extent, that the excusable delay continues.
CONTRACTOR shall be entitled to no compensation for any service, the performance of which
56
is excused pursuant to this paragraph.
In the event that.CONTRACTOR is unable to provide the services indicated due to any cause,
he shall make reasonable attempt to so notify the public including notification to local radio
stations, local newspapers and television stations.
Whenever CONTRACTOR has knowledge that any actual or potential force majeure may delay
or prevent performance of this agreement, CONTRACTOR on a timely basis, shall notify CITY
of the fact, and thereafter shall report to CITY all relevant information then known to
CONTRACTOR, and shall continue to so report.
25. NO CONFLICTING USES
CONTRACTOR shall not operate, lease or charter CITY-provided buses and equipment used
for this agreement for any purpose other than this agreement, unless specifically authorized by
the Transit Manager. City provided facilities are for the sole use of maintaining and storing City
buses, support vehicles, and contractor employee parking. No other contractor operations or
employee vehicle repairs will be performed at City facility.
26. NOTICE
All notices shall be made by certified United States mail, postage prepaid, return receipt
requested, addressed as follows:
CONTRACTOR:
Name
Address
CITY:
CITY OF SAN LUIS OBISPO
P.O. BOR 8100
SAN LUIS OBISPO, CA 93403
ATTN: Diann Gladwell, CITY CLERK
Service of such notices shall be deemed complete on the date of deposit in the United States
Mail.
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27. NOT CONTRACT OF EMPLOYMENT
It is understood and acknowledged that this agreement is not a CONTRACT of employment
between CITY and the CONTRACTOR or any agents, officers, or employees of
CONTRACTOR. CONTRACTOR is, and shall at all times be, deemed to be an independent
CONTRACTOR. CONTRACTOR is not authorized to bind the CITY to any contracts or other
obligations. CONTRACTOR is not an agent of CITY and shall at no time represent itself to be
such agent or employee.
28. PERFORMANCE BOND
CONTRACTOR shall perform no services pursuant to this agreement, nor be entitled to
compensation therefore, unless and until CONTRACTOR. submits a bond or other acceptable
secunty to CITY for use of CITY, such bond executed by CONTRACTOR and a surety
company licensed to do business as such in the State of California, such bond in the amount of
TWENTY PERCENT (20%) of the annual CONTRACT price, and which shall at all times be
kept in full force and effect. The condition of such bond shall be that CONTRACTOR shall
fully and faithfully perform all conditions and covenants of this agreement or that the face
amount of such bond shall be forfeited to CITY. The bond may be renewable one-year bond,
and shall be renewed annually before its expiration date; provided, however, that such bond
must remain in full force and effect from and after the date CITY makes any demands for
payment on the bond until the CITY releases such claim. Provision of such bond or its
equivalent, approved by the Transit Manager, is a material covenant of this agreement. The
Transit Manager shall not approve any security which is not unconditionally payable to CITY
upon CITY demand.
CITY reserves the right to rescind the performance bond/security requirement at any time.
29. PRECEDENCE OF CONTRACT DOCUMENTS
The total agreement between the parties consists of the documents specified in this section. In
the event of a conflict or ambiguity arising between such documents or any term therein, the
document executed later in time shall prevail over the document executed earlier in time, as
follows:
A. Any supplemental agreements executed after the date of this agreement or orders issued
pursuant to this agreement.
B. This agreement, including the RFP.
30. CONTINUITY
This agreement is binding upon each of the parties and their respective heirs, executors, assigns,
and successors.
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02
31. ASSIGNMENT (CONTRACTOR)
The performance of this agreement may not be assigned, or in any way subcontracted on a
continuing basis, except upon the prior written consent of the CITY. CITY shall not consent
to any proposedassignment or subcontracting, novation, or other writing which would have the
effect of relieving CONTRACTOR or CONTRACTOR's surety of their responsibility and/or
liability under this agreement.
32. TRANSITION TO FUTURE BUS CONTRACTOR
For up to Sixty (60) days following the effective date of the termination or expiration of this
agreement, CONTRACTOR shall provide to either the CITY or any future CONTRACTOR
selected by CITY, CONTRACTOR's full cooperation in the transition to the successor
CONTRACTOR. This shall include, as a minimum, consultation regarding labor and
management issues (including a delineation of wages and benefits by employee category), access
to non-confidential personnel files and maintenance records.
CONTRACTOR's telephone equipment shall be made available to the successor contractor
pending installation of the new contractor's equipment. CONTRACTOR shall release all
telephone numbers and any sequential roll-over numbers required by CITY to the new operator.
CONTRACTOR shallprovide its best professional effort to assure a smooth transition from
CONTRACTOR's services to the long-range provider's services, and shall cooperate fully with
the CITY and the long-range operator to this end.
33. ADVERTISING
No advertising of any type other than transit related material shall appear either on the interior
or the exterior of any bus placed in SLO TRANSIT service, unless specifically approved by the
Transit Manager.
CONTRACTOR shall install all CITY-provided interior advertisements related to transit service
and community-oriented public service announcements.
34. ADDITIONAL TERMS
The validity in whole or in part of any provision of the agreement shall not affect validity of
other provisions. CITY's failure to insist in any one or more instances upon the performance
of any term or terms of this agreement shall not be construed as a waiver or relinquishment of
CITY's right to such performance or to future performance of such a term or terms, and
CONTRACTOR's obligations in respect thereto shall continue in full force effect. Time shall
be of the essence. Changes hereto shall not be binding upon CITY except when specifically
confirmed in writing by CITY.
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35. OPTIONS
The CITY reserves the right to exercise any options proposed in the RFP.
36. ATTORNEY FEES The prevailing party in any action between the parties to this
agreement brought to enforce the terms of this agreement or arising out of this agreement
may recover its reasonable costs and attorney's fees expended in connection with such
action from the other party.
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year
first above written.
CITY OF SAN LUIS OBISPO
John Dunn, CAO
CONTRACTOR
By:
Type or Print Name and Title
Company Name:
APPROVED AS TO FORM:
e *OV&9 0 Y AH
60
-ETI
DATE NG� 9� AGENDA 2
C)L
POLY
CALIFORNIA POLYTECHNIC STATE UNIVERSITl' _
SAN Luis Osisro. CA 93407
PUBLIC SAFETY SERVICES
ISo;1 iip•'-191
Walter Vance, Chairman MTC NCIL ❑ CDD DIR
4035-A Poinsettia St. 2rcW ❑ FIN DIR
San Luis Obispo, CA 93407 EY ❑ PW DIR IEF
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July 14, 1995 ❑ CAEAD FILE ❑ UTIL DIR
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Dear Chairman Vance:
I am writing this letter to you to express my concern over the decision the MTC
made for the Mayflower/Laidlaw contract for the coming 33 months.
When the contract came up for renewal the MTC was informed that Mayflower
was being taken over by Laidlaw. At that time, the committee chose NOT to
renew but to go out to bid for the coming year. Mayflower had been doing an
excellent job for our transit system. However, Laidlaw had had the contract in
past years and did not prove to be satisfactory in services. In fact, Laidlaw was
extremely unsatisfactory in performance.
The city staff reviewed the proposals that were returned. Much to the surprise of
some of the MTC members, including myself, Mayflower/Laidlaw was the
contractor recommended by staff for the new 33 month contract.
Mayflower/Laidlaw apparently, (we have been assured,) are doing separate
managing of their transit systems and school bus systems and assure us they
will have a much better performance. There is a "stop clause" that assures the
MTC that the contract can be broken in 30 days, without explanation, for any
reason. The cost of this contract with Mayflower/Laidlaw, however, came in
nearly $200,000 higher than the contractor rated number two, Forsythe &
Associates, Inc.
Staff assured the MTC at its July 5, 1995 meeting that they were very confident
choosing Mayflower/Laidlaw as the new contractor. Staff also said that Forsythe
& Associates did not have the experience of Mayflower/Laidlaw.
My concern is this. I am a new member of the MTC even though I have sat in on
MTC meetings for the past year and a half. I know the prior problems with
RECEIVED
JUL 17 1995
THE CALIrOR•. -.AFF. I NICF.R>I:'i CITY COUNCIL
RAN 1 Ilia OQICPn- 4A
Walter Vance
Page 2
July 14, 1995
Laidlaw. The recommendation was presented to the MTC by Harry Watson.
After thinking more about the recommendation and the vote, I really feel the MTC
should have had an opportunity to look over the RFP's of the top two candidates
and the staff remarks on both candidates, especially with such a discrepancy in
bid amounts, so that the committee could have a real feel for their vote.
However, I don't know if that is customarily done or not. I don't feel the MTC was
as well informed of all the facts as it should have been to make such a hasty
decision. I know I have reservations about my vote for Laidlaw, without being
able to compare the companies myself. It would have been awkward for the
committee to ask to see both RFP's with the representatives for
Mayflower/Laidlaw sitting in the MTC meeting.
This is not to say that staff's recommendation of Mayflower/Laidlaw is
necessarily wrong. This is to say that on after thought, the MTC should have
had an opportunity to review both Mayflower/Laidlaw and Forsythe & Associates
for themselves. Perhaps more consideration of costs should have been looked
into, in light of the fact that the city will need more operating money to
accommodate this operation.
Thank you for allowing me to express my concerns.
Sincerely,
Jacquie Paulsen
Cal Poly Commuter Services Coordinator
7p
MEETIN
DATE ` �
9AGENDA
- 9
Walter J. Vance ITEM #
4035A Poinsettia Street
San Luis Obispo, CA 93401
July 10, 1995
Mayor Allen Settle and City Council
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
RE: Letter of follow-through of statement of intent.
Dear Mayor Allen Settle and City Council,
This letter is a follow-through of my stated intention during a meeting with
Mayor Settle, July 10, 1995.
For the record:
The Mass Transportation Committee (MTC) meeting, July 5, 1995, was a
single item agenda, the Service RFP and Selection Committee
recommendation.
New information has come to my attention since the MTC meeting, July 5,
1995. My reasons to vote "aye" as an advisory vote to recommend the
Service RFP and Selection Committee recommendation were based on
incorrect and incomplete information. Therefore, I change my vote to "no"
effective immediately.
Sincerely,
Walter J. Vance
c: William P. Forsythe
C:
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CIT`I CLeAK JUL 1 4I
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REPLACE TH PAGE IN THE�:TRANSPORTATIC
AGREEMENT, E. FORM OF AGREEMENT" --ET1NAGENDA
THE REVISED..SENTENCE IS MARKED. DATE '/ 99� ITEM #e____
CITY reserves the right to terminate this agreement immediately in the event of material breach
by the CONTRACTOR. -
CITY, at its sole discretion, may terminate this agreement at any time if the CITY TRANSIT
service is eliminated due to a lack of funds. Such termination shall be effective on a thirty (30)
day written notice and the payment of all consideration earned to date by CONTRACTOR.
Acceptance of such final payment by CONTRACTOR shall constitute a complete accord and
satisfaction as between the CONTRACTOR, the CITY.
Any contract resulting from this RFP will be financed primarily with funds available to San Luis
Obispo City Transit under the California Transportation Development Act (TDA) and Federal
Transit Administration (FTA) Section 9. The contract for this service is contingent upon the
provision of these funds to San Luis Obispo City Transit. In the event that service is eliminated
or reduced due a lack of funds, San Luis Obispo City Transit reserves the right to terminate or
modify any contract.
This agreement may also be terminated at any time upon mutual agreement between both parties.
B. During Option Terms: Termination during option terms shall be made in the same
manner and for the same reasons as during the initial term.
5. CITY'S REMEDIES ON BREACH
It is understood and agreed that in the event of failure by CONTRACTOR.to perform services
required by this agreement, in addition to all other remedies, penalties and damages provided
by law, the CITY may provide such services, and deduct the cost of doing so from the amounts
due or to become due to the CONTRACTOR. The costs to be deducted shall be the actual costs
to CITY to provide such services, or the costs shown on the Service and Payment Schedule,
whichever is greater.
Failure of the CONTRACTOR to maintain CITY owned property and equipment as required in
this contract will result in the CITY withholding the next payment for services until the CITY
and CONTRACTOR can agree on an estimated cost. The CITY will than cause the property
or equipment to be repaired and make an accounting to the CONTRACTOR. Any amount held
in addition to the.amount necessary to cause the repairs will be paid to the CONTRACTOR with
next months payment. The CITY'S use of this remedy to cause the repair and maintenance of
its property and equipment in no way limits the CITY from exercising it remedies for breach
of contract as described elsewhere in this contract. Costs to be billed will be actual bills for
repairs hired by the CITY to complete the work and CITY costs including overhead.
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CITY COUNCIL'as
6. ADi4fVISTRATION OF CONTRACT -
CONTRACTOR's compliance with this agreement shall be supervised and administered by San
Luis Obispo City Transit through the office of the Transit Manager or his/her designee. During
periods when the Transit Manager is unavailable, the Transit Manager's designee shall
administer this agreement. This paragraph shall not relieve CONTRACTOR of any obligation
or liability undertaken by virtue of this agreement.
7. SELECTION OF ON-SITE MANAGEMENT
The person serving as site supervisor (see IX E of Scope of Work) shall have past supervisory
experience at an appropriately high level, shall be approved by CITY and shall not perform
duties for CONTRACTOR other than managing CITY operations without notification of and
prior approval from the Transit Manager. Approval shall not be unreasonably withheld. In
addition, CONTRACTOR shall designate an agent authorized to bind the CONTRACTOR in all
aspects of CONTRACTOR's performance of this agreement, who shall be available at all times,
either by phone or in person, to make decisions or provide coordination as necessary.
The above individuals shall be responsible for monitoring all aspects of the system operation-and
maintenance, including, but not limited to: ridership, quality of service, fare collection, Section
15 surveys, maintenance and repair work, attitudes, motivations, and performance of all
personnel that deal with the public.
8. BUSES, EQUIPMENT & RADIOS
CITY shall provide CONTRACTOR with the buses and equipment specified in the Scope of
Work and RFP, or any subsequent amendments thereto. CONTRACTOR shall supply all other
equipment necessary to operate the transit system as specified in this agreement.
CONTRACTOR acknowledges that use of radio frequency is contingent upon the proper conduct
being exercised by CONTRACTOR's employees in transmitting and receiving (industry,
accepted radio procedures will be.maintained).
CONTRACTOR shall install a CONTRACTOR-provided base station and CONTRACTOR-
provided antenna at CONTRACTOR's base of operations at CONTRACTOR's expense.
9. ENIEPLOYEE QUALIFICATIONS/TRAItii'NG/WORK RULES
CONTRACTOR shall comply with the employee qualification, training, .and work rule
requirements specified in the Scope of Work for all employees, whether full-time or part-time.
42
July 4, 1990 1:21 PM From: PATRi.rIC4GE
pmINELL ❑ Ent 1 7 3t3t E� �a 2 of 3 AGENDA
I�FIN DIR TE -i g-96 ITEM #
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San Luis Transportation
Pahich D.McDututall Talephuna 415 987 3883
Manaoin0 Director Fax 415 967 3883
mcdnl@hookcd.not
tuu t Sevey hive
Mountain View,Calif.,04041
lile:slocaol. July 3. 1995
City of San Luis Obispo
ATTN. Mr. Dunn. CAO
Sir:
Thank you for your hind response to my correspondence regarding the procedures and
personnel involved in the current RFP for operations of the Bus System.
This process is determined by the regulations contained in 49 CFR Sub:k para
18.36, and UMTA Circular 4220.1B. San Luis Transportation hereby formally protests and
notifies you by this letter that these regulations.among others,were ignored in violation of
this companys'rights.We intend to raise issues addressed by subparagraphs(b)I I as relates to
disputes and resolution: (c')(i-i)as relates to unreasonable requirements. excessive bonding.
complicated bidding procedures:(v)as relates to organizational conflicts of interest and(vii)
as relates to arbitrary actions: (d)(2)(C&D)as relates to methods of procurement: (3)(i-v)as
relates to procurement procedures and regulations covering competitive proposals: (3)(ii)as
relates to identifying contractor requirements. SLT intends to exercise all administrative
rights under this section along with the 13(c)provisions requiring local wage.scales. a point
emphasized in your Council Agenda Report of 4/18/95. Under the conditions of this
Regulation,the City. as Grantee. is responsible-in accordance with good adminstrative
practice and good business judgment for the settlement of all contractual and administrative
issues' . Please advise as to the grievance procedures for resolviong this protest.
Your assertions reflect the position of the culpable public works personnel involved.
are contradicted by obvious,provable facts and refuted by the other bidders. Your position
seems to be that everybody got the same information. That point is not disputed at this time.
The protest involves the timeliness of the information and late receipt of vital information
may have prejudiced my presentation and given three weeks advantage to my competition.
including the City staffs'bid. The vital operating information was omitted from the SLT
copy of the RFP: the SLT copy of the RFP differs from that of the Master document at the
public works department. and was noted at the time the discrepancys were found. Several
inquiries were made to Mr Watson. complaining that the SLT copy was missing important
information. and each time SLT was assured that this was just an administrative problem I
enclose a copy of the fax I received on the Friday before the bid opening. This is the bus
schedule. containing the most vital information, apparently handed to the attendees at the pre-
bid conference which I did not attend. A review of the public works phone logs will reflect
that I was the only one faxed this information. Everyone else had it.
July 4, 1993 1:21 PM From: PATRICK D.MCDONNELL Fax M 413 967 3883 Page 3 of 3
or
Secondly_the RFP states that a list of drivers.the numbers of drivers.schedules and
other vital information was supposed to be handed out at the pre-bid conference by the Waren
operator. This information is missing from the SLT packet,requiring a guess in the RFP
itself.
Thirdly.any RFP that allows David Elliott a former named defendant in a past civil
action.to be involved in any process relating to my proposal is flawed and improper. The
process requires impartiality.impossible in this situation.a point you did not discuss in your
letter.
The obvious prejudice against SLT from the public works personnel is evidenced by
the disqualification of a proposal that included the most outstanding public-side managers in
the transit industry operating a non-profit corporation for the benefit of and controlled by the
City! SLT was disqualified because of prior existing prejudice. and purposefully denied the
same timely information and due process that should be afforded to every bidder. The
regulations governing awards states that the award will be made to the responsible firm whose
proposal is most advantageous to the program.which I believe qualifies the no-cost proposal.
I would point out that my proposal best reflects the goals of the MTC and the Council as
emphasized in your own Council Agenda Report. The reaction reflects a bias against SLT
and a short-sighted"short-hoe'attitude towards the employees.
I would appreciate prior notification as to when this contract comes up for Council
approval or discussions as I would like to attend. Please use your fax or e-mail as"snail mail"
takes almost a week
Regards.
s/Patrick D. McDonnell
Managing Director
cc: DOL. Flanigan
FTA/UMTAMarler
NLRB.info officer
MEETING AGENDA
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Forsythe & Associates, l &COUNCIL ❑ csD DIR
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The Honorable Allen Settle -
Mayor RECEIVED
City of San Luis Obispo
990 Palm Street JUL 'I I IyyJ
San Luis Obispo, CA 93401-3249
CITY COUNCIL
GN I iiic no#con n4
Re: Selection of Contractor to Operate San Luis Obispo Transit
Dear Mayor Settle:
This letter is written to clarify issues related to the selection of a contractor to operate the
transit system for the City of San Luis Obispo.
Financial Matters
Forsythe & Associates,Inc. has submitted a price which is more than one hundred
ninety-sig thousand dollars ($196,000) below the contract award which we have
been informed is being recommended by City staff.
Staff informed us by telephone that the City does not have sufficient funds to pay for the
recommended service in either Fiscal Year 1996 or 1997, and that the most likely
resolution of this fiscal problem will be to cut service or request an allocation of the City's
general funds.
The City elected to not exercise the contract extension option with Laidlaw when the
contract expired on June 30, 1995, for the reason of unsatisfactory performance (as stated
in page three of the minutes of the January 11, 1995, Mass Transit Committee),yet staff is
now recommending Laidlaw at what we understand is a higher price than either our
low bid or Laidlaw's previous option price.
Process Matters
We were advised on June 30, 1995, that no public announcement would be made nor
would any public meeting be held regarding the recommendation for selection until July
172 1995. However, we were told on July 7, 1995, that:
• On July 5, 1995, a meeting was held of the Mass Transit Committee where only
Laidlaw Transit was invited by staff to attend and make a presentation regarding
this matter, even though we had requested the opportunity to attend any public
100 North Barranca Avenue, Suite 110 • West Covina, California 91791-1600
Toll Free 800/531-6482• Phone 818/967-4700• Fax 818/915-4770 �.
►a
The Honorable Allen Settle
July 11, 1995
Page 2
meeting regarding this award. We understand that Laidlaw spoke for one and one-
half hours. We were not notified in advance that this meeting would be held and
were only informed about the results two days after the meeting.
• A meeting of the drivers was held on July 5, 1995, without notifying our firm,
where drivers were told that Laidlaw had been selected to operate the service,
pending Council approval.
The City's document was an Invitation for Bids, not a Request for Proposals. We
question whether the City has the option of awarding the bid to a firm other than the
lowest responsive and responsible bidder.
We have not had any opportunity to negotiate terms other than those stated in the
Invitation for Bids, our Proposal and our Best and Final Offer. If there are any exceptions
negotiated to the bid requirements, such as a waiver on the age of service vehicles to be
provided by the contractor, or a change in any other cost elements, we must have the
opportunity to incorporate such changes in our pricing.
Selection Criteria
On July 7, 1995, we were verbally informed by Mr. Harry Watson that the sole reason
Forsythe& Associates, Inc. was not ranked first is our"lack of experience."
We contest this characterization.
• We are the only firm to propose:
♦ the manager who has successfully managed SLO Transit for the last three(3)
years (now our full-time, regular employee, Ms. Cindy Wall-Draper), and
♦ the corporate officer who was responsible for Mayflower's contract
compliance(now our Vice President,Mr. Mark Foster).
The combined operations experience of these two individuals is more than 27 years.
We also offer technical assistance through Mr. Mike Verna, our Director of
Maintenance and Operations, and Mr. Mark Stanley, our Director of Planning and
Scheduling.
• I have personally assured Mr. Watson, the City's evaluation committee and City
Council Members that our entire corporate resources are available and will be
dedicated as needed to assure the City's satisfaction with our performance.
• We developed Foothill Transit and have managed it to international acclaim since
1988, being selected as Outstanding Transit System of North America twice in the last
three years by the American Public Transit Association.
The Honorable Allen Settle
July 11, 1995
Page 3
• We submitted letters of recommendation from:
♦ Elected Officials and City Managers representing nine(9) different cities,
♦ the Federal Transit Regional Administrator for San Luis Obispo,
♦ the Associate Director of Athletics for UCLA,
♦ the President of the United States Olympic Committee,
♦ the President of NBC Broadcasting, and
♦ others attesting to our ability to manage and operate transit systems.
• We have operated transportation systems for.
♦ NBC Sports- 1992 Olympics, Barcelona, Spain
♦ CBS Sports- 1994 Winter Olympics, Lillehammer,Norway
♦ World Cup - 1994 International Soccer Championship in 9 US cities.
• We are the only proposer who has successfully obtained grants from the Federal
Transportation Administration for a client. In this time of federal funding cutbacks,
we were one of only six(6) of more than 350 competing transit agencies to receive
more than $10 million in federal capital funds.
We are the only Disadvantaged Business Enterprise to be interviewed. This means that
the entire $2.6 million contract would assist the City in meeting its contracting goals with
minority and women-owned business enterprises. We were told that the.Laidlaw bid does
not meet the goal of 13% specified in the Invitation for Bids.
We are the only California-based company to submit a proposal and be interviewed.
Summary
I have given the City my personal assurance that Forsythe& Associates,Inc. will deliver
what we promise at the price we quoted. We have an exceptional track record of always
delivering what we commit. We have previously passed up other business opportunities to
ensure that the commitments we make are fully met.
Forsythe& Associates, Inc. is the most cost-effective proposal for the City of San Luis
Obispo. We offer a highly experienced team to operate SLO Transit. I offer the full
corporate support of our firm to ensure the highest quality operation possible, and will
personally guarantee your satisfaction with our service at the price quoted.
As president and chief executive officer of our company, I have previously pledged to
personally remain involved and to be in San Luis Obispo to the extent necessary to assure
that SLO Transit is operated with excellence. I have also offered to assist with developing
innovative alternatives to retain service (and jobs)while dealing with the likely cuts in
A�
The Honorable Allen Settle
July 11, 1995
Page 4
Federal transit operating subsidies. I am pleased to reiterate my commitment to the City in
this letter if the City selects Forsythe& Associates, Inc.
I will attend the meeting of the San Luis.Obispo City Council on July 19, 1995, and will be
prepared to answer any questions you and the Council Members may have regarding our
firm, our proposal or this letter.
We look forward to serving the City.
Very truly yours,
William P. Forsythe /
President & CEO
cc: Council Members Bill Roalman
Dave Romero
Kathy Smith
Dodie Williams
Mass Transit Committee Amy Baker
Randy LaVack
Jacquie Paulsen
Walter Rice
Doris Sceli
Mike Spangler
Walter Vance
City Staff John Dunn, City Administrative Officer
Jeff Jorgensen, City Attorney
Mike McCluskey, Director of Public Works
Harry Watson,Director of Transportation