HomeMy WebLinkAbout09/20/2011, C 7 - APPROVAL OF TRANSIT SERVICE AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND CAL POLY O C
council '° Svomnber2O,2011
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CITY OF SAN LUIS 0BI5P0
FROM: Jay D. Walter,Director of Public Works
Prepared By: John Webster, Sr.,Transit Manager
SUBJECT: APPROVAL OF TRANSIT SERVICE AGREEMENT BETWEEN THE CITY OF
SAN LUIS OBISPO AND CAL POLY
RECOMMENDATIONS
1. Approve the Cal Poly contribution schedules and scope of transit services for the Cal Poly Subsidy
Program.
2. Adopt a resolution authorizing the City Manager to execute the agreement between the City and Cal
Poly,and approve any amendments during the term of the agreement.
DISCUSSION
Background
The current California Polytechnic State University (Cal Poly) Transit Services Agreement expired on
June 30, 2011. Under the scope of services, the agreement has continued past the expiration date on a
month-to-month basis at a prorated amount until a new agreement is executed. The Cal Poly contribution
serves to provide for a prepaid fare for Cal Poly students,staff and faculty with valid identification.
Negotiations between the City and Cal Poly began in January 2011. The overall approach of the
negotiation process was a partnership with intent of continuing the successful relationship but also
recognizing the current state of the economy and difficulties in City and State budgets. During the
course of the negotiation process, the City kept Cal Poly representatives informed of the anticipated
financial changes, such as State and Federal finding, significant increases in fuel costs, and the First
Transit contract. Staff provided this information to Cal Poly representatives for their review and to
better reach an understanding for the calculations of the desired subsidy amount.
Cal Poly passengers represent over sixty-two percent (62%) of the annual trips on SLO Transit. Cal
Poly encourages students, faculty and staff to utilize the SLO Transit system as part of its overall
transportation sustainability strategies and as a convenience to its students. Strong Cal Poly ridership
assists the City in capturing transportation funding from various state and federal sources in addition to
the subsidy paid directly by Cal Poly. These funds allow the City to provide a more frequent
transportation service to the entire San Luis Obispo community.
The New Agreement
The contribution amount for the final year,of the subsidy agreement, in 2010-11, was $351,858 and
overall, the structure of the proposed agreement is similar to the current agreement. Referring to
Attachment 2, Cal Poly will contribute the annual sum of$380,000 for the first year of the agreement
which represents an 8% increase over the current annual contribution rate. This increase is significant
when compared to other State budget reductions that have taken place due to lower revenues. For future
years the annual percentage increase varies from year to year, and the total Cal Poly contribution over
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Cal Poly Transit Subsidy Agreement Page 2
the next five years will be $2,021,154. Table 1 reflects the proposed payment schedule and annual
amounts.
Table 1—Cal Poly Subsidy Schedule
FY Subsidy %Increase
2010-11" 351,858
2011-12 380,000 8.0%
2012-13 395,200 4.0%
2013-14 403,104 2.0%
2014-15 415,197 3.0%
2015-16 427,653 1 3.0%
Total Payments 2,021,154
*Last year of agreement
The City and Cal Poly desire to cooperatively pursue any and all opportunities to reduce costs, increase
revenues and to execute plans for a more efficient transportation system. To this end, both Cal Poly and
the City agree to make their respective resources available to advance the following goals and activities:
• Bus Service Promotion and marketing
• Identify and apply for grants
• Rider surveys
• Bus service planning and development
• Cal Poly Master Plan Development
The new subsidy agreement has contract"re-openers"that allow for meet and confer sessions to discuss
potential changes to services levels or funding needs. This clause allows Cal Poly and the City to
discuss major service changes before they are implemented, and discuss how to mitigate significant
financial changes due to cost increases in transit operations and/or loss of grant funding should they
occur. "Base Transit Service" is defined as all bus services, including all daytime and evening routes
servicing the Cal Poly campus ("Cal Poly Routes") in operation as of July 1, 2011. Under certain
circumstances, adjustments to the subsidy amount would need to be considered in equal measure in
accordance with increases or decreases in various economic factors. Such circumstances include the
following:
• Operating grant fiznding-exceeds or falls short of the 2011-12 base amount by 10%
• Changes to Base Transit Service Charges due to increased costs or insufficient farebox recovery
• If actual average fuel cost exceeds or falls short of the base price by 15% for any six month
period, with surcharge or credit assessed in the subsequent fiscal year. (budgeted base price for
fuel:2011-12 is$4.00 per gallon,increased by 3%annually)
CONCURRENCES
The Mass Transportation Committee will review the agreement at its September 14th meeting and the
draft minutes will be included as a red file for Council. Cal Poly Administration has agreed to the terms
and amounts included in the agreement.
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Cal Poly Transit Subsidy Agreement/ Page 3
FISCAL UAPACT
Cal Poly will contribute $2,021,154 in pre-paid fares toward the Transit Program during the five-year
term of the agreement. There will be no impact to the General Fund by approving the recommended
actions.
ALTERNATIVE
Deny/Defer Subsidy Agreement The City Council may choose to disapprove the Cal Poly Subsidy
Agreement for SLO Transit ridership. Staff does not recommend this alternative as the impact of this
alternative would be to significantly reduce the revenues needed to operate the system, and
consequently, reduce the levels of service that could be provided. It is very likely that by not accepting
the subsidy, ridership on SLO Transit would decrease sharply and traffic congestion on city streets
would increase, especially near the entry points to Cal Poly. As previously mentioned,both the City and
Cal Poly agree to the terms of the new subsidy agreement. The continuation of the program helps to
foster a continued partnership on the basis that both parties greatly benefit from the program.
ATTACHMENTS
1. Resolution
2. Proposed Cal Poly Subsidy Agreement
T.\Cotmcil Agenda ReporlsTublic Works CAR\201 I\TRANSMCAR-CAL POLY AGREENEW-CONSENT-09-06-201 I\CAR-DRAFT CAL POLY
AGREEMWr-09-06-2011 v5.docx
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Attachment 1
RESOLUTION NO. (2011 Series)
RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE EXECUTION OF THE SERVICE AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND CAL POLY
WHEREAS,the City of San Luis Obispo (referred hereinafter as the City) operates SLO
Transit;
WHEREAS, the a public transit service receives a subsidy from the California
Polytechnic State University, San Luis Obispo (referred hereinafter as Cal Poly) in accordance to
the service agreement executed on July 1, 2006;
WHEREAS, the City allows Cal Poly students, staff, and faculty with valid Cal Poly
identification to board any bus operated by SLO Transit without paying a fare;
WHEREAS,the 2006 service agreement expired on June 30,2011; and
WHEREAS, the existing scope extended the 2006 subsidy on a month to month basis to
allow the City and Cal Poly to final the new service agreement;and
WHEREAS, the City and Cal Poly desire to continue the program and have jointly
developed a mutually acceptable solution.
NOW THEREFORE, BE IT RESOLVED that the City Manager is authorized to execute the
Agreement between the City and Cal Poly for the Cal Poly Subsidy Program, and approve any
amendments during the term of the agreement.
On motion of , seconded by , and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this day of , 2011.
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U A v fACHMENT 1
Resolution No. (2011 Series)
Page 2
Jan Howell Marx
Mayor
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
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C
Attachment 2
BUS SERVICE AGREEMENT
BY AND BETWEEN
CALIFORNIAPOLYTECFiNICSTATEUNIVERSITY.
AND
THE CITY OF SAN LUIS OBISPO
1. Preamble
The City of San Luis Obispo ("the City") operates a public transportation system in and around
the San Luis Obispo area,.primarily composed of its "SLO Transit"bus service("Bus Service").
California Polytechnic State University("Cal Poly") is a public university situated adjacent to the
City.
The students, faculty and staff at Cal Poly enjoy the benefits of these Bus Services. Cal Poly
students in particular constitute a significant portion of bus ridership. Cal Poly wishes to
encourage student, faculty and staff utilization of these Bus Services as part of its overall
transportation and sustainability strategies and as a convenience to its students.
Because the Cal Poly community represents a significant portion of the City's population, Cal
Poly utilization of Bus Services also advances its transportation and sustainability goals.
Furthermore, strong Cal Poly.ridership enables the City to capture transportation funding from
various state and federal sources in addition to the consideration paid directly by Cal Poly: These
funds allow the City to provide more robust transportation services to the entire San Luis Obispo
community.
In furtherance of these mutual goals and benefits, the parties hereby enter into the following
Agreement. This Agreement supersedes all terms and conditions contained in the previous
agreement on the same subject with a term ending June 30,2011.
2. Term
The term of this agreement will commence on July.1, 2011 and.end June 31, 2016. In the event
that a new agreement is not executed prior to the end of this term the parties agree that any
services rendered by the City at the request of Cal Poly after that date will be on a month to
month basis at the then current prorated rate..
3. Bus Services .
a. No Fare: In exchange for the consideration described in Section 4, no fare of any kind
shall be charged to Cal Poly students, faculty and staff upon presentation of a valid Cal
Poly ID card.
b. Base Transit Service
1 .
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Attachment 2
L Definition: `Base Transit Service" shall be defined as all Bus Services,
including all daytime and evening routes servicing the Cal Poly campus ("Cal
Poly Routes"),in operation as of July 1,2011.
ii. Changes to Base Transit Service
1. No Changes will be made to Base Transit Service without first notifying
Cal Poly's Commuter and Access Services Coordinator ("CAS
Coordinator'.Upon request,the City will meet and confer with the CAS
Coordinator to discuss any such changes and their potential impacts on .
the Cal Poly community. During this meet and confer process, the City
will, in good faith, consider any alternatives presented by Cal Poly. The
City further agrees to include the CAS Coordinator in its planning and
development process to the extent changes in Base Transit Service may
result.
2. No changes will be made to Cal Poly Routes without having met and
conferred with Cal Poly.
3. To the extent changes to Base Transit Service, whether consented to or
otherwise, materially impact Cal Poly's beneficial use Bus Services
provided by the City,the parties will meet and confer to discuss potential
reduction of consideration as described in Section 4.
4. Consideration
Cal Poly agrees to pay the City in exchange for the services.described in this agreement in
accordance with the following terms and conditions:
a. Payment Schedule: Payment will be made in arrears on a prorated quarterly basis in
accordance with the below schedule of annual sums. Both parties acknowledge that,
while the annual percentage increases vary from year to year, it was intended that the
average annual increase equal three percent (3%). This intent will be given due
consideration in the event that adjustments to consideration become necessary.
FY 11/12 $380,000
FY 12/13 $395,200
FY 13/14 $403,104
FY 14/15 $415 197
FY 15/16 $427,653
b. Adjustments to Consideration: In the event that one or more of the following
circumstances arises, the.parties agree to negotiate in good faith to make reasonable
adjustments to the consideration to be paid for a fixed term or for the balance of the term
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Attachment 2'
I
of this agreement. Increases and decreases in consideration will be considered in equal
measure in accordance with increases or decreases in these economic factors.
L Grant Funding: Grant funding provided through federal and state programs may
fluctuate during the term of this agreement. In recognition of this, the parties
agree that the`Base Grant Funding Amount"will be defined as the total amount
of operating assistance grant funding received by the City for the purpose of
supporting and promoting public transportation services during FY 11/12. In the
event that grant funding for any subsequent fiscal year either exceeds or falls
short of the Base Grant Funding Amount by more than ten percent (10°/u), the
parties agree to reopen negotiations on consideration recognizing that. any
mutually agreeable changes in consideration will not be effective prior to the
subsequent year.
ii. Changes to Base Transit Service: In the event that changes are made to Bus
Service as described in Section 3 because of increased operating costs or
insufficient farebox recovery, the parties agree, to reopen negotiations on
consideration.
iii. Fuel Prices: Theparties agree that the "Base Fuel Price" is four dollars (54.00)
per gallon of dieselfor FY 11/12. The Base Fuel Price will be increased annually
by three percent(3%). If the actual average fuel cost paid by the City exceeds or
falls short of the Base Fuel Price by more than fifteen percent(15%) for any six
(6)month period of any fiscal year of this agreement,the parties agree to engage
in good faith negotiations regarding implementation of a surcharge or credit. Any
agreed upon surcharge or credit will be assessed in the subsequent fiscal year on
a one-time basis. The agreed upon consideration for any remaining years will be
unaffected.
5. Full Disclosure
The City agrees to share with Cal Poly allrelevant information and documentation relating to its
operation of Bus Services. Reports and related documents on the subjects enumerated below will
be provided to Cal Poly's CAS Coordinator on a regular basis as prepared during the ordinary
course of business. The City will provide any other relevant documents or information upon
request.
a. Revenue and expenses(operational costs)
b. Ridership
c. Farebox ratio
d. Grant funding
e. Agreement with contract operator
3
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o 0
Attachment 2
6. Cooperation
It is in the interest of both parties to cooperatively pursue any and all opportunities to reduce
costs, increase revenues and to execute plans for a more efficient transportation system. To this
end, both parties agree to make their respective resources available to advance the following
goals and activities:
a. Bus Service promotion and marketing
b. Identify and apply for grants
c. Rider surveys
d. Bus Service planning and development
e. Cal Poly Master Plan development
7. Insurance
The City agrees to maintain insurance coverage as specified in Exhibit "A" for the duration of
this agreement.
AGREED:
CAL POLY CITY OF SAN LUIS OBISPO
Dru Zachmeyer,Associate Director By:
Contracts,Procurement&Risk Mgmt. Its:
ate Date
4
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0 0
Attachment 2
EXHIBIT"A"
INSURANCE REQUIREMENTS
The Contractor will maintain all necessary Insurance as required herein. The Contractor skull provide a
Certificate of Insurance with appropriate endorsements indicating that the required coverage is in effect on an annual
basis,or for the duration of the Agreement Contractor agrees to provide,or cause their insurance carrier to provide,
at least 30 days written notice prior to cancellation or modification (10 days advance written notice for non-
payment) of such liability insurance. In the event the insurance coverage expires at any time or times during the
term of the Agreement, Contractor agrees to provide at least 15 days prior to said expiration date,a new certificate
j of insurance evidences coverage as provided herein for not less than the remainder of the term of the Agreement,or
for a period of hot less than one year. New certificates of insurance are subject to the approval of the CSU, and
Contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event the
Contractor fails to keep in effect at all times insurance coverage as herein provided,the CSU may in addition to any
other remedies it may have, terminate this Agreement upon the occurrence of such event. Contractor agrees to
waive their right of subrogation against the CSU for any claims.
Insurance to be placed with the California Admitted insurer with current A.M.Best's rating of no less that
A:VII unless otherwise approved by the CSU.
If any Insurance required herein is written on a claims-made form, following the termination of this
Agreement,coverage shall survive for a period of not less than three years. Coverage shall provide fora retroactive
date of placement coinciding with the Agreement commencement date.
Commercial General Liability Coverage (asbroad as ISO occurrence for CG0001) primary insurance
coverage against claims for injuries to persons or damages to property and/or damages to property and/or contractual
liability which may arise from or in connection with the performance of the work or operations hereunder by or on
behalf of the Contractor, its agents, representatives or employees in an amount not less than $1,000,000.00 (One
million dollars)per occurrence;$2,000,000.00(Two million dollars)aggregate.
Endorsements shall designate:
The State of California,Trustees of the California State University,California Polytechnic State University
San Luis Obispo, and each of their officers, officials,employees, authorized representatives,agents and volunteers,
the"CSU",as additional insured(s).
Endorsements shall state this insurance shall be primary as respects the CSU„or if excess,shall"stand in an
unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event,
any other insurance maintained by the University scheduled above shall be in excess of this insurance and shall not
be called upon to contribute with it
Business Auto Liability Coverage (as broad as ISO form number CA 0001, code 1 any auto) primary
insurance against claims for injuries to persons or damages to property and/or contractual liability which may arise
from or in connection with the performance of the work hereunder by the Contractor,its agents,representatives or
employees covering owned,hired,agreementd and non-owned automobiles used by or on behalf of the Contractor,
including coverage for uninsured and underinsured motorists,in an amount not less than$1,000,000.00(One million
dollars)per occurrence.
Endorsement shall designate:
The State of California,Trustees of the California State University,Califomia Polytechnic State University
San Luis Obispo, and each of their officers, officials, employees, authorized representatives,agents and volunteers,
the"CSV',as additional insured(s).
5
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Attachment 2
Endorsement shall state that this insurance shall be primary as respects the CSU,or if excess,shall stand in
an unbroken chain of coverage excess of the Named Insured's schedule underlying primary coverage. In either
event,any other insurance maintained by the CSU scheduled above shall be in excess of this insurance and shall not
be called upon to contribute with it.
Contractors who are sole proprietors and are using automobiles for personal transportation only may submit
proof of automobile insurance as required by California law.
Worker's Compensation and Employer's Liability Coverage:
The Contractor shall provide the following coverage:
Primary insurance coverage against claims with respect to obligations imposed on the Contractor and sub
contractors by State worker's compensation statues and damages that the contractor becomes legally obligated to
pay because of bodily injury by accident or disease to an employee.
Minimum limits: amount proscribed by California law for Worker's Compensation, $1,000,000 for Employer's _
Liability.
Endorsement shall state that the insurer waives their right of subrogation against the CSU
Sole Proprietors Exclusion
Contractors who are sole proprietors or are otherwise excluded from state requirements for workers
compensation coverage may:
1) Submit proof of health insurance as broad as statutorily required by the State of California for
employees and either submit proof of disability insurance as broad as statutorily required by the State
of California for employees
OR
2) Execute a Reagreement Agreement with the University regarding the contract activities to be
performed
6
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AM council mcmoizanbum
September 19, 2011
TO: City Council RED FILE
- MEETING AGENDA
FROM: Jay Walter, Public Works Director DAT ti ITEM #
VIA Katie Lichtig, City Manager
SUBJECT: Red File Consent Item C-7 MTC Concurrence
Consent Item (C7) on the September 20, 2011 Council Agenda recommends the approval of the
Cal Poly contribution schedules and scope of transit services for the Cal Poly Subsidy Program.
The Mass Transportation Committee (MTC) reviewed the agreement at their regular meeting on
Wednesday, September 14, 2011 and concurred with the staff recommendation by unanimous
vote. Attached are the September 14, 2011 MTC draft minutes for that agenda item.
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CITY OF SAN LUIS OBISPO
MASS TRANSPORTATION COMMITTEE
CITY LIBRARY COMMUNITY ROOM
WEDNESDAY, SEPTEMBER 14,2011
DRAFT MINUTES
CALL TO ORDER:
Vice Chair Stanley Yucikas called the meeting to order at 2:45 p.m.
ROLL CALL
Present: Susan Rains, Stanley Yucikas, Art Apruzzese, Louise Justice, Jody Frey,
and Todd Kau
Absent: CM Ashbaugh, CM Smith, Elizabeth Thyne, Jean Long
Staff: John Webster
ANNOUNCEMENTS
Mr. Webster noted for the record that the meeting location was changed to the City
Library Community Room and that a revised Agenda reflected a new discussion item by
Susan Rains (13-1) and the SLO Transit Marketing plan as a Cal Poly class project.
PUBLIC COMMENTS
There were no public comments.
A. CONSENT ITEMS
A-1. Approval of May 11,2011 Regular Meeting
Mr. Katz moved to approve the May H, 2011 meeting minutes as submitted. Mr.
Apruzzese seconded the motion.
The motion passed unanimously.
B. DISCUSSION ITEMS
B-1. Update of SLO Transit Marketing Plan
Ms. Rains reported that she met with professor Mary LaPorte to discuss the overview of
her Winter term Student Team senior class marketing plan challenge for drafting
suggestions for a SLO Transit Marketing Plan aimed at increasing discretionary ridership.
Ms. Rains stated that the MTC could consider all the submitted class campaigns and
choose between them and that she understood that the Transit Dept. budget had limited
funds for marketing campaign implementation and that the Committee's role was to
recommend the best plan for the city to consider.
She also noted that Ms. LaPorte favored a more traditional advertising approach
(television, radio, display ads). She requested the survey results of why people do not
ride the bus currently and that her class has access to all City/Transit logo artwork,
photos, and the draft Transit Marketing Place.
Mr. Webster suggested advertising efforts could be placed in various bus shelters but that
exterior bus ads would need Council approval.
Mr. Yucikas suggested making videos of the various final presentations and then posting
them on YouTube and the Cal Poly video channel. He also said he would be interested in
being present for the final presentations.
Mr. Webster agreed to make this item an action item on the November agenda.
C. ACTION ITEMS
C-1. Review Cal Poly Subsidy Agreement
Mr. Webster presented the report that will go to Council as a consent item on September
20, 2011. He stated that the current Agreement-that expired on June 30, 2011 was on a
month to month extension and this was a good successor agreement. If approved by
Council the monthly fee would be pro-rated back to July 1, 2011.
Mr. Yucikas suggested a shared fuel-purchasing arrangement with other local agencies.
Mr. Webster discussed the current status of fuel purchasing with JB Dewar's and the
subsequent price break, noting.that SLO Transit is receiving a discount by using Red-Dye
Diesel with only the State retail sales tax (SST) as an added cost.
Ms. Justice noted that there had been previous discussion of having students pay
separately to ride during evening service. Mr. Webster stated that this new Agreement
included evening service as part of the base transit service and there would be no separate
charge considered during the five year term of the agreement if approved by Council.
There was discussion regarding the cooperative aspects of the new agreement and Mr.
Webster stated that this section did not represent any additional cost to either agency. He
stated the language was very positive in nature and read from the agenda item (C-1) as
noted:
"The City and Cal Poly desire to cooperatively pursue any and all opportunities to
reduce costs, increase revenues and to execute plans for a more efficient transportation
system. To this end, both Cal Poly and the City agree to make their respective resources
available to advance the following goals and activities:"
• Bus Service Promotion and marketing
• Identify and apply for grants
• Rider surveys
• Bus service planning and development
• Cal Poly Master Plan Development
Mr. Apruzzese moved to recommend that Council approve the Agreement as submitted.
Ms. Rains seconded the motion.
The motion passed unanimously.
D. INFORMATION ITEMS
D-1. Transit Manager's Report
D-2. Operating-Performance Reports
Mr. Webster presented highlight discussion on theyeports as presented.
MEMBER COMMENTS
There were no member comments.
The meeting adjourned at 3:55 p.m.to the regular meeting November 19, 2011 at 2:45
p.m. in the Council Hearing Room.
Respectfully submitted,
Lisa Woske, Recording Secretary