HomeMy WebLinkAbout09/05/1995, 2 - SLO TRANSIT OPERATIONS CONTRACT EXTENSION '��� ��IIIIII�II���IUIII city of San lUl s OBISPO Mme"s A s
COUNCIL AGENDA REPORT `rW""
FROM: Michael D. McCluskey, Public Works Director�
Prepared by: David Elliott, Administrative Analyst,
Harry Watson, Transit Manager
SUBJECT: SLO Transit Operations Contract Extension
CAO RECONEMUgDATIONS:
By motion,
1) determine that exercising an option to extend the existing transit operations contract is
the most advantageous method of fulfilling the City's needs
2) approve the "Amendment to Contract TR 92-03" with Mayflower Contract Services,
Inc.
3) authorize the Mayor to execute the amendment
4) appropriate an additional $97,500 to the contract services account in the transit
operating program budget
DISCUSSION:
Background
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. Seven contractors submitted proposals, and after evaluating these
proposals and interviewing the top four contractors, an interview panel recommended
awarding a new contract to Mayflower Contract Services, Inc., the existing contractor.
Because of protests lodged by two unsuccessful proposers, on July 19, 1995 the Council
rejected all proposals and directed staff to investigate extending the existing operations
contract with Mayflower through June 30, 1997.
Negotiation of the Extension
Section 2.B of the existing contract grants the City an option to extend the term up to two
additional years. Section 13.E requires that the City and Mayflower must mutually agree on
the compensation to be paid during the extension period.
Transit Manager Harry Watson met with Mayflower representatives and negotiated a level of
compensation which is $53,500 lower than Mayflower's final offer during the solicitation of
proposals. Most of the savings derived from eliminating startup costs and the costs of
overhauls which will not be necessary during the extension term.
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COUNCIL AGENDA REPORT
Federal Conditions Regarding Qptions to Extend
Federal Transit Administration (FTA) Circular 4220.1B, Chapter I, Section 9 regulates the
use of options in contracts financed by FTA grants.
Paragraph 9b(2) forbids the use of options in service contracts (as opposed to equipment and
supplies contracts) under the following circumstances:
o Services are readily available in the open market (without formal procurement).
o The contractor will incur undue risks because its prices for materials or labor are not
reasonably foreseeable.
O Market prices (not contract prices) for the services are likely to change substantially.
o The services have firm requirements and enough money is available to pay for them.
None of these circumstances appear to apply to the extension of Mayflower's contract.
Although the services have firm requirements, there may not be enough money to pay for
them after 1995/96. (See the "Fiscal Impact" section below.)
Paragraph 9c(2) states that the basic and option periods together may not exceed five years.
With the extension of Mayflower's contract, the basic and option periods will together total
exactly five years.
Paragraph 9d(l) requires the City to determine in writing that exercising the option is the
most advantageous method of fulfilling the City's needs, considering price and other factors.
Considering price, the City can make that determination based on findings described in
Paragraph 9d(2)(a) that a new solicitation for services has failed to produce a better price
than the price of exercising the option. The contract price under the extension option is at
least $53,500 lower than any price over the same period quoted by contractors which
submitted proposals. Considering other factors, the City can make that determination based
on findings described in Paragraph 9d(3) that any further delay (in trying to resolve the
protests) could jeopardize the continuity of transit operations.
This agenda report, signed by the Public Works Director and endorsed by the Council,
should satisfy the requirements of Paragraph 9d(l) for written and signed determination.
Federal Labor Standards
Section 13(c) of the Urban Mass Transportation Act of 1964, as amended (49 U.S.C. app. §
1609) requires arrangements that protect the interests of employees affected by certain federal
transit assistance. This protection includes:
O preserving rights, privileges, and benefits under existing collective bargaining
agreements
O continuing collective bargaining rights
a-2
���►�i�i��IIUIIIIIIIIIp�Nu�l�����1 city of San & OBISPO
SCOUNCIL AGENDA REPORT
0 protecting individual employees against a worsening of their positions
o assuring employment or reemployment to employees of acquired transportation
systems
o providing training for returning employees who have been laid off
Section 13(c) states that this protection is a condition of assistance only under Section 3 of
the Act, which provides discretionary capital grants. Because the operating assistance for the
contract extension is provided under Section 9 of the Act, Section 13(c) may not apply to this
situation. Nonetheless, exercising the option to extend the existing contract will not
jeopardize any of the employee interests described in Section 13(c).
FISCAL IMPACT:
1995/96 1996/97
Estimated Contract Cost $ 935,800 $ 993,800
Budget for Contract Operations 838.300 870.800
Additional Budget Required $ 979500 $ 123,000
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
amended contract prices. Budget amounts for both years were based on existing contract
prices. Three factors contributed to higher prices under the contract amendment:
o Higher driver compensation costs. As requested by the City, Mayflower will 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 compressed natural gas (CNG) and diesel fuel has
risen faster than the consumer price index which governed cost increases under the
existing contract terms.
o Higher equipment operation and maintenance costs. By late 1995 SLO Transit will
have three buses fueled with clean-burning CNG. The cost to operate and maintain
CNG buses is higher than the cost to operate and maintain diesel buses.
Budget projections originally anticipated a $223,600 balance in the transit fund at the end of
fiscal year 1995/96. But recent adjustments to revenue expected from Transportation
Development Act subventions and Cal Poly in-lieu fare contributions have reduced that
projection to $155,900. Despite those adjustments there is still enough money available to
cover the recommended additional appropriation of$97,500 for 1995/96. But there will not
be enough money from existing sources to cover additional costs in 1996/97. As the status
���►►�►��i►�►IIIIIIIIIJI1° ��lh city of SAn LaIS OBISp0
COUNCIL AGENDA REPORT
of federal and state operating assistance becomes clearer over the next few months, Public
Works and Finance staffs will take a comprehensive look at what ongoing revenue sources
will be available for transit. This analysis will include identifying potential additional
revenue sources, regional management/maintenance consolidations, or service reductions
necessary to match service levels with the amount of ongoing revenue available. Any
planned service reductions and budget adjustments will be presented to the Mass
Transportation Committee and the Council in early 1996 and will eventually be included in a
significant program change request for the 1996/97 budget.
ATTACHMENTS:
Excerpt of Contract TR 92-03 (Section 2.B)
Excerpt of Contract TR 92-03 (Section 13.E)
UMTA Circular 4220.1B, Chapter I, Section 9
UMT Act, Section 13
Amendment to Contract TR 92-03 (including incorporated price proposal from Mayflower)
2-y
Excerpt-of Contract TR 92-03 (Section 20
xi) DAYS. "DAYS" shall mean calendar days.
xi) BUSINESS DAYS. "BUSINESS DAYS" shall mean days when the Transit
Manager's Office is open for regular business.
xii) CITY Transit. "CITY TRANSIT' shall mean the transit service provided in
accordance with the terms of this agreement.
xiv) 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.
xv) 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 July 1, 1992 and terminating at 11:59 p.m. on June
30, 1995.
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 reaardirici
the SLO Transit Cost Proposal Form for the option terms (See Paragraph
13E, Consideration During Option Terms).
3. SCOPE OF WORK.
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 (Exhibit "B'j, 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;
3
Excerp- if Contract TR 92-03 (Sectl�.. 13.E)
Both parties agree the assessment of incentives relative to the Performance
Incentives Program shall not lessen the CITY's right to declare a material breach
of CONTRACT, particularly if the CONTRACTOR repeatedly fails to comply with
the operating requirements and standards of this agreement.
Annually, the Transit Manager may modify the performance incentives program,
and areas covered, subject to CONTRACTOR written approval regarding the
changes made.
In the event the total incentive payments earned by the CONTRACTOR (which
include the incentives described in this Section and the driver's incentives
described in Section 16) for the fiscal year exceed the agreed upon average
maximum rate per vehicle mile per year, listed in Section 16 under the column titled
"Total", the CONTRACTOR shall credit tothe CITY the difference between (1) the
total amount earned and (2)the total number of revenue miles operated during the
fiscal year multiplied by the maximum rates listed in Section 16.
The parties agree that the penalty section in Exhibit "C' of the RFP shall not apply
to this agreement.
E. Consideration Durina Option Terms In the event that CITY extends the term(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
14. FARES.
A. 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.
B. 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. FARES COLLECTION
A. MCS will purchase automated coin counting equipment which will become the
property of the City at the end of the contract. This item is contingent on the City
approving MCS's security and farebox accounting procedures. MCS will be
responsible for loss or theft of fare revenue as stipulated in the RFP.
12
Page I-12 UMTA C 4220. 1B
5-5-88
UMTA Circular 4220.1 B, Chapter I, Section 9
a. If UMTA has not made such a determination, the
minimum requirements for construction contracts shall
be as follows:
(1) A bid guarantee from each bidder equivalent to
five percent of the bid price. The "bid
guarantee" shall consist of a firm commitment
such as a bid bond, certified check, or other
negotiable instrument accompanying a bid as
assurance that the bidder will, upon acceptance
of his bid, execute such contractual documents
as may be required within the time specified;
(2) A performance bond on the part of the contractor
for 100 percent of the contract price. A
"performance bond" is one executed in connection
with a contract to secure fulfillment of all the
contractor's obligations under such contract;
and
(3) A payment bond on the part of the contractor for
100 percent of the contract price. A "payment
bond" is one executed in connection with a
contract to assure payment, as required by law,
of all persons supplying labor and material in
the execution of the work provided for in the
contract.
b. For nonconstruction contracts, UMTA discourages
performance bonding requirements except where
applicable law or regulation provides for such
bonding and the grantee determines that such a
requirement is necessary and documents its
procurement records regarding such necessity.
9 . OPTIONS.
a. Definition.
An option means a unilateral right in a contract by
which, for a specified time, a grantee may elect to
purchase additional equipment, supplies, or services
called for by the contract, or may elect to extend
the term of the contract.
b. Use of options.
(1) Subject to the limitations of this subparagraph,
grantees may include options in contracts .in
certain circumstances as detailed below.
(2) A grantee shall not employ options if:
(a) The foreseeable requirements involve
minimum economic quantities (i.e. ,
quantities large enough to permit the
recovery of startup costs and the
production of the required supplies at a
reasonable price) and delivery requirements
far enough into the future to permit
competitive acquisition, production, and
delivery;
(b) The supplies or services are readily
available on the open market;
(c) The contractor will incur undue risks;_
e.g. , the price or availability of_
necessary materials or labor is not
reasonably foreseeablee
(d) An indefinite quantity or requirements
contract is appropriate (except that the
grantee may use options for extending the
term of such contracts) ;
(e) Market prices for the supplies or serviceiL
involved are likely to change
substantially; or
(f) The option represents known firm_
requirements for which funds are available.
(3) In recognition of (a) grantees' needs in certain
service contracts for continuity of operations
and (b) the potential cost of disrupted support,
options may be included in service contracts if
there is an anticipated need for a similar
service beyond the first contract period and
competition is infeasible.
C. Contracts.
(1) The contract shall limit option quantities for
additional equipment and supplies to not more
than 50 percent of the initial quantity of the
same contract line item.
(2) The total of the basic and option periods shall
not exceed five years in the case of services.
and requirements contracts-.
(3) Prior to issuing a solicitation, a grantee must
obtain UMTA approval for the inclusion of an
0
Page I-14 UMTA C 4220. 1B
5-5-88
option provision in excess of the amounts or
periods set forth in paragraphs 9c(1) and (2) ,
above. The request to UMTA must explain the
need for the option and why it is in the best
interest of the grantee and UMTA.
d. Exercise of Options.
(1) A grantee may exercise an option only after
making a written determination, signed by the
appropriate official and placed in the contract
file, that the exercise of the option is the
most advantageous method of fulfilling the
grantee's need considering price and other
factors.
(2) A grantee, after considering price and other
factors, shall make the determination on the
basis of one of the following:
(a) A new solicitation fails to produce a
better price or a more advantageous offer
than that offered by the option. If it is
anticipated that the best price available
is the option price or that this is the
more advantageous offer, the grantee should
not use this method of testing the market;
(b) An analysis of prices or an examination of
the market indicates that the option price
is better than prices available in the
market or that the option is the more
advantageous offer; or
(c) The time between the award of the contract
containing the option and the exercise of
the option is so short that it indicates
the option price is the lowest price
obtainable or the more advantageous offer.
The grantee shall take into consideration
such factors as market stability and
comparison of the time since award with the
usual duration of contracts for such
supplies or services.
(3) The determination of other factors under
paragraph 9d(2) should take into account the
grantee 's need for continuity of operations and
potential costs of disrupting operations.
(4) Before exercising an option, the grantee shall
determine that such action is in accordance with
the terms of the option, the requirements of
UMTA C 4220.1E Page I-15
5-5-88
this paragraph, and the provisions of this
circular.
10. CARGO PREFERENCE. ,46 U.S.C. 1241(b) (1) and 46 CFR Part
381 impose cargo preference requirements on the shipment
of foreign made goods.
11. BUY AMERICA. Section 165 of the Surface Transportation
Assistance Act of 1982, 49 U.S.C. 1601, section 337 of the
Surface Transportation and Uniform Relocation Assistance
Act of 1987, and 49 CFR Parts 660 and 661 impose Buy
America provisions on the procurement of foreign products
and materials.
12 . ADVANCE PAYMENTS. UMTA does not authorize and will not
participate in funding payments made by a grantee to a
contractor prior to the incurrence of costs by the
contractor.
13 . PROGRESS PAYMENTS PROVISIONS. The following standards
apply to the use of progress payments:
a. In appropriate circumstances, grantees may include a
clause providing for payments by the grantee to the
contractor, prior to delivery or completion, that are
determined on the basis of costs incurred by the
contractor and the percentage or stage of completion
of the contract;
b. Grantees shall only use a Progress Payments clause in
accordance with the following criteria:
(1) Progress payments may be appropriate if:
(a) the contractor will not be able to bill for
the first delivery of products, or other
performance milestones, for a substantial
time after work must begin (normally four
months or more for small business concerns,
six months or more for others) , and
(b) the contractor will make expenditures for
contract performance during the period
prior to delivery that have a significant
impact on the contractor' s working capital.
(2) Progress payments may also be appropriate
(particularly for small businesses) , if the
contractor demonstrates actual financial need or
the unavailability of private financing;
(3) Progress payments normally are not appropriate
for contracts of less than $1, 000, 000 (except
for small businesses or if the contractor will
perform several small contracts at the same time
UMT Act, Section 13
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AMENDMENT TO CONTRACT TR 92-03
Dated May 6, 1992
EXTENSION
This Amendment is made and entered into as of the 1st day of
October, 1995, by and between the San Luis Obispo City Transit,
hereinafter referred to as "CITY" and Mayflower Contract Services,
Inc. , hereinafter referred to as "CONTRACTOR".
WHEREAS, the parties entered into that certain Basic
Transportation Agreement for Services to Implement, Operate and
Maintain a Public Transportation System, more commonly referred to
as Agreement No. TR 92-03, dated May 6, 1992, hereinafter referred
to as the "Agreement;" and
WHEREAS, , Agreement No. TR 92-03 was extended by mutual
agreement of the parties pursuant to Paragraph 2B thereof to
October 1, 1995, which extension is hereby affirmed and
ratified by the Parties; and
WHEREAS, the parties wish to further extend the Agreement,
NOW, THEREFORE, it is mutually agreed as follows:
1. EXTENSION. Pursuant to Paragraph 2B of Agreement
No. TR 92-03, the period of this extension is to be
from October 1, 1995 through June 30, 1997.
2. CONSIDERATION. Pursuant to Paragraph 13E of Agreement
No. TR 92-03, consideration during the option term shall
be as follows:
a. compensation. In consideration for the
extension period from October, 1, 1995 until June
30, 1997, compensation shall be as spelled out in
the attached cover letter and price proposal dated
August 11, 1995, attachment 1, incorporated herein
as though fully set forth.
b. driver's salaries and benefits Drivers
salaries and benefits will be in compliance with
those on attachment 2, which is incorporated herein
as though fully set forth.
C. city's remedies on breach Failure of the
CONTRACTOR to maintain CITY owned property and
4;2-13
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
a estimated cost to cause the repairs to be
withheld from payment. 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 its remedies for breach of contract as
described elsewhere in this contract. Costs to be
billed will be actual bills from outside
contractor's hired by the CITY to complete the work
and CITY costs including overhead.
3. Except as set forth herein, all of the terms and
conditions of Agreement No. TR 92-03 shall remain in full
force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above written.
MAYFLOWER CONTRACT SAN LUIS OBISPO CITY
SERVICES, INC. TRANSIT
By:
Irwin Rosenberg Allen Settle, Mayor
Vice President, Operations
ATTEST:
Diane Gladwell, City Clerk
APPROVED AS�TO FORM:
oreye J g sen,
City Attorney
cmuama
1,el
• PTI Journal 6.027926303 P. 02
AL A 1 /0'. V A /
I
TRANSIT SERVICES
12301 WILSHIRE BOULEVARD. SUITE 305. LOS ANGELES.CA 90025 E310)447.0030 FAX 13101 447-SO25
I
I
,
I
I
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August 11, 1995 '
I
Mr. Harry Watson
Transit Manager
City of San Luis Obispo
Public Works Department
955 Morro Street
San Luis Obispo, CA 93401 i
Dear Harry:
Please find attached our revised and final price for operation of transit servic for the
City of San Luis Obispo for the period of 10/1/95 through 6/30/97.
Pursuant to our conversation today, we have made the following changes to our Best and i
Final Offer which was submitted to the City on June 28:
• Start up costs in the amount of$17,000 have been eliminated.
• An adjustment to the overhaul maintenance line item provides f er cost
savings the City.
• The term of this extension to our current agreement shall be from 1011/9 through
6/30/97.
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Our association with the City of San Luis Obispo is greatly valued by our.team and we
look forward to continuing our partnership.
' I
Sincerely,
,
Irwin Rosenberg
Vice President,Operations I
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A LAIOLAW TRANSIT.INC. COMPANY
ttachment I �L. V
PTI Journal 6027926303 P. 03
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Ma overlLaLCaw
j
RevYsad�4/l1�5lS
PRICE PROPOSAL YEAR 1 YEAR 2
Month
Vehicle Revenue Hours(Est) 2,350 2,350
Vehicle Revenue Miles(Est) 26,600 26,600
Prig Formula
• I
Monthly Rate $34.805.00 $35.845.00
Hourly Rate Personnel $12.72 $13.10
Mileage Rate Vehicle $0.62 $0.61 i
GRAND TOTAL ANNUAL COST
(Monthly Rate,Hourly Rate and Mileage Rate all totaled In Annual terms)
Based on Level of Service Described Above" i
Monthly Rate $313,243 $430,143
Hourly Rate $268.975 $369,392
Mileage Rate $148"518 5194181 ,
$730,736 $993,716
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Attachment 1-a
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PTT Journal 6027926303 P. 04
MayhomarlLaidlaw
I
I�eda�»isrs
Fixed Route
Variable Cost Elements
10/1/95- 7/1/96- j
6/30/96 6/30/97 i
Personnel Related
Driver Wages 225.556 309.763 lReyenue elated waQes
Driver Fringe Benefits 43-419 5262$ 1 Fringe on revenue i
related es only
Subtotal Personnel Costs 268,975 369.392 i
Hours 21.150 28,200 i
Hourly Rate $12.72 $13.10 '
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Vehiele Related I
Gasoline 352 483 ;
Diesel 33,764 46,370 i
CNG 19.794 27.184 i
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Maintenance: I
Parts&Supplies 62.244 82.992
Fluids 2,394 3.192
Tires 11970 15960
Overhaul ]R MO 18.000
Subtotal Maintenance 94.608 120.144 i
Subtotal Vehicle Costs 148.518 194.181
Miles 239.400 319.200
Cost per Mile 0.620 0.608
TOTALPERSONNEL
+VEHICLE COSTS 417.493 563,573
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Attachment 1-b
• P-t Journal 6P-7926303 P. 05
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a o r Laidlaw :
' Nevi:ed6�„�35
Monthly Rate Cost Elements 10/1/95- Per 7/1/96- Per !
6/30/96 Month 6/30/97 Month
Project Manager Salary 31.875 3,542 43.775 3.648
Project Manager Fringe 4,232 470 5.812 484 ncA.Fur.sur j
Road Supervisor Salary 16.380 1,820 22.495 1.875
Road Supervisor Fringe 3.047 339 4,185 349 F1cA•FLrL suT
DispatcMnfo Wages 14,820 1,647 20,353 1,696
DispatchAnfo Fringe 3.140 349 4.313 359 FICA.FUT.Sur
Dlerical Wages 0 0 0 0
:,lerical Fringe 0 0 0 0
vlaintenance Manager Salary 28.350 3,150 38,934 3.245
daintenance Manager Fringe 3.963 440 5,443 454 FICA,Rn.sur
JechanicWages 19.500 2,167 26,780 2,232
Aechanic Fringe 3.286 365 4.512 376 RCA.RJT.SLIT
)cher Maintenance Wages 9.360 1.040 12,854 1.071
7ther Maintenance Fringe 2.510 279 3.447 287 FICA.FUT,3lJT
Other Wages 11.237 1.249 15.4311.286 fHOLIDAYS 2,198
)ther Fringe 10.985 1221 15.085 1,257 DRNEII VACATION 7,190
iiring/Training Expenses 1.165 129 1,600 133 VER TRAINING 1A421
iafety Expenses 1.275 142 1,751 146 11,22'
Jniforms&Driver Supplies 4.076 453 5.598 467
=acifity Maintenance&Repair 2.850 317 3,914 326 FlG4.F 5T.sur on• 1,573
elephone 5,400 600 7.416 618 WORKCOMP on• 898
Jtilities 8,100 900 11.124 927 WORK XW
'quipmentRental, Service Agreements 1.328 148 1,823 152 PROJ FCT MGR 2,234
)fioe Supplies 2.790 310 3.832 319 ROAE SUP 1.310 i
14SURANCE 0 0 0 0 DIM TCHER 1.186
Liability&Collision Coverage 32.162 3.574 44.168 3.681 MAIN Newwcf 3.784
Workers Oompensation 14,493 1.610 19,904 1,659 0,9851:
lerformance Bond 375 42 515 43
.coounting 0 0 0 0
Ion-Revenue Vehicle Expense 2.418 269 3,297 275
repeater Rental:Radio repair 2,250 250 3.090 258
rinting 900 100 1.236 103
ostage,Freight 900 100 1,236 103
,epreciation 500 56 667 56
eneral&Administrative 18,000 2.000 24.720 2.060
rofit 51.577 5,731 70,832 5,903
OTAL Monthly Cost Elements,Annual $313.243
$430.143 ,
umber of Months 9 12
ost per Month 1 $34.8051 $35.845
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Attachment 1-c
t
4.14 Employee
Compen-
sation and
Retention
We take pride in our low employee turnover rate
and the resulting achievements in service quality
that many of our customers have experienced. We
know that the driver is the individual representing
the company to the public.` High driver turnover
can result in accidents, high vehicle maintenance
costs, marginal on-time performance, and customer i
complaints. E
Further, as stated in our mission statement, we
strive to have our work environment be a place
where employees are encouraged and rewarded as
they expand their knowledge and fulfill their
individual potentials. We invite our employees to
enjoy a sense of individuality with accompanying
freedom of expression. Our highest aim is for each
of our employees to consider Mayflower/Laidlaw an
enviable workplace. It is our priority to provide a
safe working environment for each employee.
Further, we are committed to treating each
employee fairly by having an open door to all
employees at all times, as well as fair and
consistent work rules.
Through our significant nationwide experience in
providing public transportation services, we have
designed the following compensation and retention
plan for the City's service.
Driver Wage
Scale j
We propose the following wage scale for the drivers
employed on the City's transportation system: {
{
k
4:2- 55 -
Attachment 2
1995 - 1997
Training Rate 5.50
Starting Rate 8.50
6 month Rate 8.71
1 Year Rate 8.93
2 Year Rate 9.38
3 Year Rate 9.86
4 Year Rate 10.37
5 Year Rate 10.87
Driver
Benefits and
Incentives
In addition to competitive wage rates, we have
studied the proper mix of employee benefits and
incentives that promote driver longevity. The
following benefits will apply to drivers of the City's
service:
Health Insurance - Medical and Dental Health
Plan. Employer contribution is $1,500 per year.
401(k) Retirement - The company contributes 25
percent match of employees' first six percent
contribution. Available to all . employees.
Enrollment occurs in January, July and October.
Employees Pride Incentive Program - For
every three-month period that there are fewer than
a predetermined number of accidents, each
e:.
employee receives a gift item such as an insulated
mug, packet, stadium cushion, etc.
" Recognition Incentive - Driver of the Quarter
Each quarter, a driver is chosen to be Driver of the
Quarter. This driver receives preferential parking
closest to the building in a marked parking space
r and one day off with pay.
Vacation - One week's paid vacation after one
year's employment. After three years employment,
the driver will receive two weeks paid vacation.
This benefit is available to all employees and based
on average hours worked.
Two Paid Holidays - All drivers will receive
holiday pay based on average hours worked for two
holidays.
College Scholarship - Each year, we give ten
$1,000 scholarships to children of our employees
who are seniors in high school.
o�
MAYFLCM M.
cor NZAt ,7SERVICES.INC
_ . .-
- 56 -
Attachment -a
l..
Non-Driver
Wages and
Benefits
The following wages will apply to non-drivers of the
City's service. Please refer to the following page for
our Benefit Summary Sheet.
General Manager $42,500 c
Maintenance Manager $37,800
Dispatcher $19,760
Part Time Dispatcher $9.50/hour
Trainer/Road Supervisor $21,840
Mechanic $12.50/hour
Utility $6.00/hour
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COONTMRACC7 SERMMCES INC
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Exhibit 2- 7
MEEii► AGENDA
DATE ITEM #
AMENDMENT TO CONTRACT TR 92-03
Dated May 6, 1992
EXTENSION
This Amendment is made and entered into as of the 1st day of
October, 1995, by and between the San Luis Obispo City Transit,
hereinafter referred to as "CITY" and Mayflower Contract Services,
Inc. , hereinafter referred to as "CONTRACTOR" .
WHEREAS, the parties entered into that certain Basic
Transportation Agreement for Services to Implement, Operate and
Maintain a Public Transportation System, more commonly referred to
as Agreement No. TR .92-03, dated May 6, 1992 , hereinafter referred
to as the "Agreement;" and
WHEREAS, , Agreement No. TR 92-03 was extended by mutual
agreement of the parties pursuant to Paragraph 2B thereof to
October 1, 1995, which extension is hereby affirmed and
ratified by the Parties; and
WHEREAS, the parties wish to further extend the Agreement,
NOW, THEREFORE, it is mutually agreed as follows:
r
1. EXTENSION. Pursuant to Paragraph 2B of Agreement
No. TR R EC EI V E D from October 1,h 1995 through June 30 period of thisexten 1997. to be
AUG 3 ! 1"5 2 . CONSIDERATION. Pursuant to Paragraph 13E of Agreement
No. TR 92-03, consideration during the option term shall
CITY CLERK be as follows:
SAN LUIS OMpo.C..
a. compensation. In consideration for the
extension period from October 1, 1995 until June
30, 1997, compensation shall be as spelled out in
the attached cover letter and price proposal dated
August 11, 1995, attachment 1; incorporated herein
COUNCIL ❑ CDD DIR as though fully set forth.
OAO ❑ FIN DIR b. driver's salaries and benefits. Drivers
TACAo ❑ IRE CHIEF salaries and benefits will be in compliance with
?'ATTORNEY IPPW DIR those on attachment 2 , which is incorporated herein
3 CLERK0RIG ❑ POUCECHF as though fully set forth.
3 MGMTTEAM ❑ REC DIR
] . FILE ❑ UTILDIR C. city's remedies on breach. Failure of the
d
0 PERSG+a CONTRACTOR to maintain CITY owned property and
r
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
a estimated cost to cause the repairs to be
withheld from payment. 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 its remedies for breach of contract as
described elsewhere in this contract. Costs to be
billed will be actual bills. from outside
contractor's hired by the CITY to complete the work
and CITY costs including overhead.
3 . Except as set forth herein, all of the terms and
conditions of Agreement No. TR 92-03 shall remain in full
force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above written.
MAYFLOWER CO T T SAN LUIS OBISPO CITY
SERVICES, IN TRANSIT
By:
Irwin Rosenbe g Allen Settle, Mayor
Vice Presiden , erations
ATTEST:
Diane Gladwell, City Clerk
APPROVED AS TO FORM:
Xe7trey M. �/orgensen,
City Attorney
Conunma
PTI Journal 6027926303 P. 02
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L ,14 :• / :D, L A :W
TRAN SIT SERVICES
{
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12301 WILSHIRE BOULEVARD.SUITE SOS. LOS ANGELES.CA 90023 13101 4479030 FAX 13101 447.9028
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August 11, 1995 '
Mr.Harry Watson
Transit Manager
City of San Luis Obispo '
Public Works Department
955 Morro Street
San Luis Obispo, CA 93401
Dear Harry:
Please find attached our revised and final price for operation of transit servic for the
City of San Luis Obispo for the period of 10/1/95 through 6/30/97.
Pursuant to our conversation today, we have made the following changes tp our: est and i
Final Offer which was submitted to the City on June 28:
• Start up costs in the amount of$17,000 have been eliminated.
• An adjustment to the overhaul maintenance line item provides furt her cost
savings the City.
• The tern of this extension to our current agreement shall be from 1011/9S through
6/30/97.
I
Our association with the City of San Luis Obispo is greatly valued by our,teane and we
look forward to continuing our partnership.
' I
Sincerely,
I
Irwin Rosenberg
Vice President, Operations
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A LAIDLAW TRANSIT. INC. COMPANY
ttachment 1
PTI Journal 6027926303 P. 03
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MavflowerlLaldlaw
i
• RevlseDB/Y1�3S
PRICE PROPOSAL YEAR 1 YEAR 2
Mnnthbc I
Vehicle Revenue Hours(Est) 2,350 2.350
Vehicle Revenue Miles(Est.) 26,600 26,600
Prig Formula I
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Monthly Rate $34,805.00 $35.845.00
Hourly Rate Personnel $12.72 $13.10 '.
Mileage Rate Vehicle $0.62 $0.61
GRAND TOTAL ANNUAL COST
(Monthly Rate.Hourly Rate and Mileage Rate all totaled in Annual terms)
Based on Level of Service Described Above' j
• I
Monthly Rate $313,243 $430,143
Hourly Rate $268,975 $369.392
Mileage Rate $14$.518 X4.181
$730,736 $993,716
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Attachment 1-a
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PTT Journal 6027926303 P. 04
MayhowerlLaldlaw
Leda////Ys
Fixed Route
Variable Cost Elements
10/1/95- 7/1/96- j
6/30/96 6/30/97
Personnel Related
Driver Wages 225,556 309,763 lRevenueelatedwages
Driver Fringe Benefits 43.419 59.629 'Fringe on revenue
related w es only
Subtotal Personnel Costs 268.975 369,392 I
Hours 21,150 28,200 i
Hourly Rate $12.72 $13.10
I
Vehicle Related
I
Gasoline 352 483
Diesel 33,764 46,370
CNG 19.794 27.184 i
Maintenance:
Parts&Supplies 62.244 82,992
Fluids 2,394 3,192 i
Tires 11970 15960
Overhaul 1$.000 18 000
Subtotal Maintenance 94,608 120,144 i
Subtotal Vehicle Costs 148,518 194.181
Miles 239,400 319,200
Cost per Mile 0.620 0.608
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TOTAL PERSONNEL
+VEHICLE COSTS 417,493 563,573
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Attachment 1-b
PTI Journal 6027926303 P. 05
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avflowerlLaidlaw .
Heulsed6/J7/5S
Aonthly Rate Cost Elements 10/1/95- Per 7/1/96- Per
6/30/96 Month 6/30/97 Month
'roject Manager Salary 31,875 3,542 43,775 3,648
3roject Manager Fringe 4,232 470 5,812 484 FICA,FLIT,SLIT j
toad Supervisor Salary 16,380 1,820 22,495 1,875
toad Supervisor Fringe 3,047 339 4,185 349 F1cA,FLIT.sur
)ispatch/Info Wages 14,820 1,647 20,353 1,696
)ispatch/info Fringe 3,140 349 4,313 359 RCA.FUr,SUr
;/erica/Wages0 0 0 0
:lericai Fringe 0 0 0 0
4aintenance Manager Salary 28.350 3,150 38,934 3,245
4aintenance Manager Fringe 3,963 440 5,443 454 RcA,FLIT,suT
4echanic Wages 19,500 2.167 26,780 2,232
4echanic Fringe 3,286 365 4,512 376 F1cA,FLIT,SLIT
?cher Maintenance Wages 9,360 1,040 12,854 1,071 i
)ther Maintenance Fringe 2,510 279 3,447 287 AcA,FLIT,$LIT
)therWages 11,237 1,249 15,431 1,286 - DRIVEHOLIDAYS 2,198
)therFringe 10,985 1,221 15,085 1,257 DRN WACATION 7,190
liring/Training Expenses 1.165 129 1,600 133TURN vERTRAINING 1 844
safety Expenses 1,275 142 1,751 146 11,237
Iniforms&Driver Supplies 4.076 453 5,598 467 \441
acility Maintenance&Repair 2,850 317 3,914 326 FtcA, sur on• 1,57
'elephone 5,400 600 7,416 618 WORK Pon* 898
Itilities 8,100 900 11,124 927 WORK 7,OMP
.quipmentRental, Service Agreements 1,328 148 1,823 152 PROJ ECT MOR 2,234
ice Supplies 2,790 310 3,832 319 ROAD SUP 1,310 i
JSURANCE 0 0 0 0 DISPA TCHER 1,186
Liability&Collision Coverage 32.162 3,574 44,168 3.681 MAIN NENANCE 3.784
Workers Compensation 14,493 1.610 19.904 1,659 10,985
erformance Bond 375 42 515 43
ccounting 0 0 0 0
Ion-Revenue Vehicle Expense 2,418 269 3,297 275
repeater Rental;Radio repair 2,250 250 3,090 258
tinting 900 100 1.236 103 i
'ostage.Freight 900 100 1,236 103
lepreciation 500 56 667 56
ieneral&Administrative 18,000 2,000 24,720 2.060
'rofit 51,577 5,731 70,832 5,903
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OTAL Monthly Cost Elements,Annual $313,243 $430,143
'umber of Months 9 12
ost per Month $34,8051 $35,845 i
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Attachment 1-c
MAYFLOWER CONTRACT SERVICES/
LAIDLAW TRANSIT SERVICES
EMPLOYEE WAGE AND VACATION SPEED SHEET
DRIVERS
* EFFECTIVE OCTOBER 1, 1995
Wage at hire for training $5.50 per hour
Starting wage after training is completed $8.50 per hour
Introductory Period- First six months of continuous employment beginning with date
of hire. After successful completion of the introductory period, which may be
extended at the option of management, raises will be given, based upon satisfactory
performance evaluations, as follows:
After 6 mos. of continuous employment - $8.71
After 1 year of continuous employment - $8.93
After 2 yrs. of continuous employment - $9.38
After 3 yrs. of continuous employment - $9.86
After 4 yrs. of continuous employment - $10.37
After 5 yrs. of continuous employment - $10.87
Continuous employment includes vacation but not Leaves of Absence.
We believe it is important for employees to take an annual break from the job.
Vacation time must normally be taken during the 12 month period following your
eligibility date and be mutually agreed upon by you and your supervisor prior to
taldng the time off. Vacation dates may not be approved if it will interfere with
Company business necessity.
After 1 year of continuous employment - 1 week paid vacation
After 2 years of continuous employment - 1 week paid vacation
After 3 years of continuous employment - 2 weeks paid vacation
Holidays (not paid days off)
Memorial Day Labor Day Independence Day
*Thanksgiving *Christmas Day New Years Day
*Indicates paid time off.
Attachment 2
MAYFLOWER CONTRACT SERVICES/
LAIDLAW TRANSIT SERVICES
EMPLOYEE MEDICAL & DENTAL PREMIUMS
DRIVERS
BLUE CROSS CALIFORNIA CARE HMO-
SINGLE $31.03 PER PAYCHECK $134.44 PER MONTH
2-PARTY $79.95 PER PAYCHECK $240.46 PER MONTH
FAMILY $165.94 PER PAY CHECK $426.77 PER MONTH
"COMPANY CONTRIBUTION" - $67.23 PER MONTH
CALIFORNIA DENTAL HEALTH PLANS HMO-
(CHOOSE PROVIDER FROM DIRECTOR) VARIOUS CO- PAYMENTS APPLY PER PROCEDURE.
SINGLE $2.20 PER PAY CHECK $9.51 PER MONTH
2-PARTY $5.00 PER PAY CHECK $15.61 PER MONTH
FAMILY $8.12 PER PAYCHECK $22.35 PER MONTH
"COMPANY CONTRIBUTION" - $4.75 PER MONTH
Based on execution of Contract Amendment effective October 1, 1995.
Attachment 2-a