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HomeMy WebLinkAbout09/05/1995, C-2 - AGREEMENT FOR CAL POLY IN-LIEU FARE CONTRIBUTIONS TO SLO TRANSIT city of san tins osispo M9' S° gs COUNCIL AGENDA REPORT eER�-� FROM: Michael D. McCluskey, Public Works Director�I ll_ PREPARED BY: Harry Watson, Transit Manager YY '� SUBJECT: Agreement for Cal Poly In-lieu Fare Contributions to SLO Transit CAO RECOMMENDATIONS: By motion, 1) approve 'Cal Poly, SLO/City No Fare Program Transit System Agreement — Standard Agreement No. P600446" in the amount of$229,424 2) authorize the Mayor to execute the agreement 3) reduce the revenue appropriation for Cal Poly in-lieu fare contributions by $10,500 DISCUSSION: For several years Cal Poly students, faculty and staff have been able to ride free on SLO Transit by showing their Cal Poly ID cards to the driver. To compensate the City for lost fare revenue under this arrangement, Cal Poly has made annual in-lieu fare contributions based on total Cal Poly riders and the average expected fare revenue per passenger. Under this arrangement Cal Poly has made the following contributions over the last five years: 1990-91 $ 98,325 1991-92 $135,132 1992-93 $177,005 1993-94 $248,420 1994-95 $246,000 For 1995-96 the City originally requested $273,125 (546,249 Cal Poly riders in calendar year 1994 times the 50-cent cash fare). But Cal Poly maintained that it could pay no more than $200,000 because of declining parking fine revenues, which have covered past contributions. Revising the formula for calculating the contribution helped close the gap. Past formulas calculated the contribution by simply multiplying total Cal Poly riders from the previous calendar year times the 50-cent cash fare. But the average fare paid by non-Cal Poly riders (excluding senior pass riders) is actually only 42 cents, because of discounts available through monthly pass purchases. At the 42-cent rate, the contribution calculation comes to $229,424. Cal Poly accepted this compromise but advised 1) that declining parking fine revenues could not sustain a $230,000 annual contribution and 2) that Cal Poly would seek additional sources for this contribution in 1996-97. FISCAL IMPACT: Based on receipts in 1993-94 and 1994-95, the 1995-96 budget includes in-lieu fare contribution revenue of$240,000. This amount should be reduced by $10,500 to account for the actual amount anticipated. ATTACHDIENTS: 6/12/95 letter from John Dunn to Frank Lebens 7/12/95 memorandum from Frank Lebens to Mike McCluskey Note: Standard Agreement No. P600446 is available for review in the Council reading file. iftP511P01yag ��►i�Q I�l l�Ill�l l llllllll�lll������►�����►�� ��II city of sAn luis oBispo 990 Palm Street/Post Office Box 8100 San Luis Obispo, CA 93403-8100 June 12, 1995 Mr. Frank Lebens Cal Poly University San Luis Obispo, CA 93407 Dear Frank: For many years, the City and the University have worked in partnership to provide a high level of bus service to Cal Poly students. Our relationship has worked so well that we can legitimately claim to have one of the best and most highly used "small town" transit systems in the country. This success can largely be attributed to our collaborative relationship, and our mutual willingness to invest in higher levels of transit service when necessary. As you know, a considerable investment has been made over the last several years which has resulted in a far higher level of service to the University than to other parts of the community. In order for us to sustain this success, a continued investment will be needed at levels which are equitable to both parties. In the past, a formula has been used to determine this "equitable level", which, until two years ago, proved to be very successful. Two years ago, as you recall, we had a bit of a "transit crisis" which, after a fashion, we were able to work out. As outlined in the attached memorandum,we seem to be having a similar problem this year. However, rather than holding to the past formula, our staff is proposing a compromise which more than meets the University half way. I'm asking that you review this proposal with your staff, and let us know if you can accept it. Our hope is that you can. Frank, the City and the University seem to be at an "all time high" in terms of our cooperation and collaboration. I'm hopeful that this same spirit can be brought to this transit issue so that it can be resolved in a way that is fair to both the City and the University. Thank you for your consideration. Sincerely, ]Jotn Dhunn dministrative Officer cc: Mike McCluskey, Public Works Director Harry Watson, Transit Manager bcc: City Council Ken Hampian FThe City of San Luis Obispo is committed to including the disabled in all of its services,programs and activities. Telecommunications Device for the Deaf(805)781-7410. MEMORANDUM June 8, 1995 TO: Ken Hampian FROM: Mike McClusk ff Harry Watson // SUBJECT: Annual Cal Poly In-lieu Fare Contribution to SLO Transit For several years Cal Poly students and staff have been able to ride free on SLO Transit by showing their Cal Poly ID cards to the driver. To compensate the City for lost faze revenue under this arrangement, Cal Poly has made annual in-lieu fare contributions based on total Cal Poly riders and the average expected fare revenue per passenger. Harry Watson has met with Public Safety staffinembers from Cal Poly (Joe Risser, Jacquie Paulsen, Cindy Risser, and Vicki Stover) to negotiate the in-lieu contribution for 1995/96. Unfortunately, as happened last year, negotiations over the contribution amount have stalled, with the City requesting $273,125 and Cal Poly maintaining it can pay no more than $200,000. When negotiations reached an impasse last year, Peg Pinard made public comments which brought John Dunn, Warren Baker, and Frank Lebens to the negotiating table. We feel it's time have John Dunn and Frank Lebens review the situation. Revising the formula for calculating the in-lieu contribution could help close the gap. Past formulas have calculated the contribution by simply multiplying total Cal Poly riders from the previous calendar year by the cash fare of 50 cents. But the average fare revenue paid by non-Cal Poly riders (excluding senior pass riders) is actually 42 cents, because of discounts available through monthly pass purchases. At the 42-cent rate, the contribution would amount to22�9,424. This might be an acceptable compromise for Cal Poly. If Cal Poly ss hol firm irm at $200,000 we will have to curtail service somewhat, perhaps by reducing evening service to the campus. Attached are calculations of the contribution at the 50-cent and 42-cent rates. H:Wauilialpo�.m® C,2-3 Existing Calculation Based on SO Cent Cash Fare: Cal Poly Riders in calendar year 1994 546Y249 Cash Fare .50 Expected Cal Poly Contribution $273,125 Proposed Calculation Based on 42-Cent Average Fare: Bus Pass Revenue 1993/94 $ 25,640 Plus Cash Fare Revenue 1993/94 57;617 Less Senior Pass Revenue 1993/94 * (11,100) Total Non-Cal Poly, Non-Senior Pass Fare Revenue $ 72,157 Divided by Total Non-Cal Poly, Non-Senior Pass Riders 1993/94 * 171.641 Average Non-Cal Poly, Non-Senior Pass Fare Revenue .42 Times Cal Poly Riders in Calendar Year 1994 54_ 6.249 Expected Cal Poly Contribution $2292424 * Senior Pass Revenue and Senior Pass Riders are backed out to avoid distortion of calculations. Other Pertinent Information: Average Operating Cost Per Rider: $1.10 Total SLO Transit Riders in Calendar Year 1994: 871,643 Cal Poly Contribution for 1994/95: $240,000 c�-y State of California California Polytecu. c State University. San Luis Obispo, CA 93407 MEMORANDUM XL 1 7 TO: Mike McClusky� DATE: July 12, 1995 Public Works Director City of San Luis Obispo FILE NO: 955 Morro Street San Luis Obispo, CA 93401 COPIES: Vicki Stover Harry Watson John Dunn Cindy Campbell Warren Baker FR T. Lebens Vice President for Administration& Finance SUBJECT: 1995-96 City of SLO/Cal Poly Bus Amement Based on our conversation of July 12, I am pleased that we have reached agreement on the university contribution to SLO Transit for the in lieu fare in the amount of$229,424 for 1995-96. As indicated in our discussions, this is in excess of what we feel we can sustain in the long term in view of the rather static source of funds from which the university derives its present contribution. As indicated at our meeting, we will seek to structure a program involving the users of these services to insure a more adequate source of funding to sustain this mutually beneficial program between the city and the university. It is our hope that we can reach resolution to the alternative source for implementation in 1996-97. In the meantime I have asked Vicki Stover to work closely with Harry Watson on a regular basis with regard to ongoing scope of services and cost containment. Your assistance in conveying our long term intentions to the governing body of the city would also be appreciated and we will be in communication with other jurisdictions that might influence funding availability to SLO Transit. We appreciate the time that you and Harry spent with us and we look forward to our continued relationship with the city in providing alternative transportation to the campus and the community. C�-S STATE OF CALURDRNIACONTRACTNUMBER AM. ❑ CONTRACrOR STANDARD AGREEMENT — APPROVED GE EREAL P60Wi6 "° �._(�.7/�) ❑ STATE AGENCY cON7RACTORS SPATE J.D.NUMBER ❑ DEPT.OF GEN.SER 96-6000781 ❑ CONTROLLER IS AGREEMENT, made and entered into this IST day of JULY. 1995 ❑ in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting T777E OF OFFICER ACTING FOR SPATE AGENCY Proatement&Support Services Officer California Polytechnic State University,San Luis Obispo hereafter called the State,and CrN OF SAN LUIS OBISPO[rPANSrr SYSTEM hereafter called the Contractor. WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials, as follows: (Ser forth service to be reridered by Contractor,amount to be paid Contractor,time for performance or completion,and attach plans and specifications,if any.) CAL POLY, SLO/CITY NO FARE PROGRAM TRANSIT SYSTEM AGREEMENT The attachment, marked EXHIBIT"A", consisting of 9 pages hereto is made a part of this agreement by reference thereto. The term of this agreement is from July 1, 1995 through June 30, 1996. Total amount payable on this agreement shall not exceed Two Hundred Twenty Nine Thousand Four Hundred Twenty Four Dollars ($229,424.00). The ev89abRyOf fllrldafar111® agreement Is aorglrg"upon the approval of the Leglala n widtheGovemoinpcomy ojiding for the 9s 3rc SM 'fudget. „;g��fnGnedorp�mare :a under provisions of CONTINUED ON 12 SHEETS, EACH BEARING NAME OF CONTRACTOR AND gONT) fW The provisions on the reverse side hereof constitute a part of this agreement. IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written. STATE OF CALIFORNIA CONTRACTOR AGENCY CONIRACTOR(1F OTHER TRAN AN INDIVIDUAL,SPATE WHET ITER A CORPORATION, Cal Poly State University,San Lu CA 93407 PARTNERS1111',ETC.) CITY OF SAN LUIS OBISPO/TRANSIT SYSTEM X (RUTH ,� ,„�_ BY(AUnIOR1ZED SIGNATURE) X X PRINTED MWE 70PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Ray Macias TITLE ADDRESS Director of Support Services 990 PALM STREET,SAN LUIS OBISPO,CA 93403.8112 AMOUNT ENCUMBERED BY PROGRAM/CATEGORY(CODE AND TITLE) FUND 7777E THIS DOCUMENT FUND BUS PROGRAM PARKING REVENUE Department of General Services Use Only PRIOR AMOUNT ENCUMBERED (OPTIONAL USE) FOR THIS CONTRACT' PUBLIC SAFELY SERVICES/CAMPBELL S ITEMCIIAM-R STATUTE FtscAL YEAR TOTAL AMOUNT ENCUMBERED EC 89700&89701 1282 95 95-96 To DATE o81ECT OF EXPENDITURE(CODE AND Tff E) $ 6-62205-5520 I hereby certify upon my own personal knowledge that budgeted funds are T.B.A.NO. BR.NO. 'ble for the period of the npenditurr stated above. ,URE OF ACCOUNTING OFFICER DATE Xt�Q7 n C� / as 49089 CITY OF SAN LUIS OBISPO/TRANSIT SYSTEM STANDARD AGREEMENT NO. P600446 PAGE 2 1. The Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this contract, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Contractor in the performance of this contract. 2. The Contractor, and the agents and employees of Contractor, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of State of California. 3. The State may terminate this agreement and be relieved of the payment of any consideration to Contractor should Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. The cost to the State shall be deducted from any sum due the Contractor under this agreement, and the balance, if any, shall be paid the Contractor upon demand. 4. Without the written consent of the State, this agreement is not assignable by Contractor either in whole or in part. 5. Time is of the essence in this agreement. 6. No alteration or variation of the terms of this contract shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. 7. The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel and per diem, unless otherwise expressly so provided. CITY OF SAN LUIS OBISPO/TRANSIT SYSTEM STANDARD AGREEMENT NO. P600446 PAGE 3 Payment For Services: The Contractor shall be reimbursed quarterly in arrears. All invoices for this agreement are to be sent to the University Accounting Office,Administration Building, Room 129, California Polytechnic State University, San Luis Obispo, CA 93407. All invoices for this agreement must have the STANDARD AGREEMENT NO. P600446 and they must be approved for payment by Cindy Campbell, coordinator for this agreement. Prompt Payment Act: Invoices paid on this agreement are subject to the Prompt Payment Act (Government Code Section 926.17). Examination and Audit: The contracting parties shall be subject to the examination and audit of the Auditor General of the State of California for a period of three years after final payment under the contract. The examination and audit shall be confined to those matters connected with the performance of this contract, including, but not limited to, the costs of administering this agreement (Government Code, Section 10532). Contractor's National Labor Relations Board Certification: By signing this agreement, the contractor certifies that no more than one final unappealable finding of contempt of court by a Federal Court has been issued against the contractor within the immediately preceding two-year period because of the contractor's failure to comply with an order of a Federal Court which ordered the contractor to comply with an order of the National Relations Board (Public Contract Code Section 10296). Discrimination Clause: During the performance of this agreement, contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of gender, race, color ancestry, religious creed, national origin, physical disability, mental disability, medical condition, age, marital status, and denial of family care leave. Contractors and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations,Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4-of Title 2 of the California Code of Regulations are incorporated into this contract by reference and made a part hereof as if set forth in full. Insurance: Contractor shall provide the University a Certificate for Workers' Compensation Insurance and General Liability Insurance prior to the commencement of the services that shall provide: 1.That the State of California, the Trustees of The California State University, the University, and the employees, officers, and agents of each of them are included as additional insureds. 2.That the insurer will not cancel insured's coverage without 15 days prior written notice to the University. 3. That the State, the Trustees, and the University, and the employees, officers, and agents of each of them will not be responsible for any premiums or assessments on the policy. Funding; The availability of funds for this agreement is contingent upon the approval of the Legislature and Governor of necessary funding of the State Budget. EXHIBIT "A" Page 1 Stale of California California Polytechnic State University Sart Luis Obispo, CA 93407 MEMORANDUM i TO: Mike McClusky DATE: July 12, 1995 Public Works Director City of San Luis Obispo FILE NO: 955 Morro Street San Luis Obispo, CA 93401 COPIES: Vicki Stover Harry Watson John Dunn Cindy Campbell Warren Baker i FR T. Lebens Vice President for Administration& Finance SUWECT: 1995-96 City of SLO/Cal Poly Bus Agreement Based on our conversation of July 12, 1 am pleased that we have reached agreement on the university contribution to SLO Transit for the in lieu fare in the amount of$229,424 for 1995-96. As indicated in our discussions, this is in excess of what we feel we can sustain in the long terns in view of the rather static source of funds from which the university derives its present contribution. As indicated at our meeting, we will seek to structure a program involving the users of these services to insure a more adequate source of funding to sustain this mutually beneficial program between the city and the university. It is our hope that we can reach resolution to the alternative source for implementation in 1996-97. In the meantime I have asked Vicki Stover to work closely with Harry Watson on a regular basis with regard to ongoing scope of services and cost containment. Your assistance in conveying our long term intentions to the governing body of the city would also be appreciated and we will be in communication with other jurisdictions that might influence funding availability to SLO Transit. We appreciate the time that you and Harry spent with us and we look forward to our continued relationship with the city in providing alternative transportation to the campus and the community. V , a;2— / ZO'd 9SOtt WUZS:6 S66T 'vT Mr TSOS 9SL SOB :01 Xtl=1INW0:140a4 ' . EXHIBIT "All Page 2 iU city of sAn tuis OBISPO 955 Morro Street • SFn Luis Obispo, CA 93401 February 10, 1993 Frank Lebens Vice President, Business Affairs California State Polytechnic University San Luis Obispo, CA 93407 Dear Mr. Lebens: It has been the practice in previous years for this mutually beneficial contract between Cal Poly University and San Luis Obispo City - Transit to base the remuneration on last year's actual ridership, and the current year's contractual cost of providing that service. We are in the first year of a three year contract with a new service provider. Our contractual cost per mile has gone up 33$, from $1. 90 per mile last year to $2.463 per mile this year. We have enjoyed a substantial increase in ridership due in large part to the addition of p.m. tandem service on Routes 1 and 4, the addition of tandem service on Route 2, and the addition of a floating tandem which responds to overload conditions experienced on any of the routes. A new phenomenon experienced by the transit system, a result of Cal Poly budgetary cutbacks, has been a peak capacity situation on inbound routes throughout our service day. This is driven by the number of students that are now availing themselves of evening classes, and those who experience large time breaks in their academic day and make multiple trips to the campus. The additional service mentioned above has been welcomed by increasing numbers of students, by increasing the likelihood that they will encounter a bus that has space available for their use. It has also enhanced our on time performance from 87* to 950, which allows for transfers from our various routes to those which are Cal Poly bound. SLO Transit has added an additional three backup buses and two new transit coaches to our fleet in this last year. As a test demonstration prior to introducing the backup buses into regular daily service, staff added all three backup buses to its inbound Route 1 service in the a.m. hours, and to its Route 2 p.m. service , outbound to see if we could reach a point of diminishing returns. EXHIBIT "A" Lebens Page 3 The result was that we had four inbound buses on Route 1 and four outbound buses on Route 2 in the a.m. and p.m. , respectively. We found that in less than three days, the students had discovered our expanded service test and we again were intermittently experiencing standing room only .on those two routes. With the addition of the two new buses, one of which is a replacement bus and one is an expansion bus, SLO Transit will be adding a fifth express route from campus to the Laguna Lake area, returning via City Hall and mirroring Route 1's inbound service on Mill and Grand back to the U.U. in March of this year. We also have on order fora projected September delivery two compressed natural gas fueled buses, and our program is to add a third compressed natural gas fueled bus early next year. These three buses, when added to our recently received .advanced design trap- equipped diesel buses and three of our older coaches that are being ,retrofitted with 1992 clean diesel technology, will provide a very user friendly, low polluting transit fleet with which to serve our community. In previous discussions with both yourself and Joe Risser, you have indicated your desire to establish a multi-year contract (which has been the practice in previous years) . Should that still be your desire, subsequent year contractual amounts should be tied to contract escalation costs as they are built into SLO City's contract with the service provider. The escalation factor in our service contract is 9. 6% per year. A three year contract would be as follows: 1991-92 actual system ridership 837, 585 passengers, multiplied by 70% Cal Poly student ridership, equals 586, 310 Cal Poly students on the system last year. 586,310 Cal Poly riders, times our actual after fare box net cost per passenger of 42 cents per passenger, equals a 1993-94 Cal Poly contract amount of $246,250. Using the 9.6% per year service contract increase factor, our 1994-95 Cal Poly contract amount would be $269, 890. The 9. 6$ increase for the following year would take the third year of our contract, 1995-96 to $295, 799. The second and third years of the contract should be validated by actual Poly ridership to protect both Cal Poly and the City should ridership increase or decrease significantly. The attached graphs (from our current short range transit plan) show system wide ridership of 71% being Cal Poly students. The individual routes show Poly ridership ranging from 21% to 91%. EXHIBIT "A" Page 4 Lebens In summary, the University should be proud of the commitment made by its students and faculty to use SLO Transit as an alternative form of transportation, thereby reducing their reliance on single occupant vehicles in our community. The mutually beneficial relationship between Cal Poly and the City goes a long ways toward meeting upcoming mandated trip reduction ordinance measures that will be contained in Air Pollution Control. District mandates. Public transit continues to be the most cost effective method of reducing automobile trips to campus. SLO Transit will continue to be pro active in meeting the needs of your students and faculty and wish to thank you in advance for continuing the relationship that we have had in the past. I would be happy to meet and discuss this proposal with you at your= convenience, or should you prefer, please don't hesitate to contact me at 781-7121. Best regards, Harry Watson Transit Manager Attachment: graphs lebens/hwl • �- tet-/2 EXHIBIT "A" Page 5 N _.• co O :... L- J.• H . Q cd U O g CL r O >bOR cn .. L N c .. as E r •- _ LL: O T" O! O U .".. .. c 05 � Vii- - : `•" " - -.. . " � c -. o' s cm it_0-1n a' LLJ • ate•`• �'': _ `_ce. LC7• `", ". _. .. - --_—=.,'• :• .. _ j Z. O O e -7 •Cs of Im O • C7 0 _N L O N 1. •C _ O EXHIBIT "A" i \ page 6 0 `; .. uj CZ N Z Z:, m �pq� x_.V . M Pr• CY .A'L4C.t�..Oi_r'c,�y.f`. CL 0 o LL cz o L 0 u ap 7 N �+ N Ql r 'O o U d H o i• ` .� -o w LL 0 j CV _ W y C•, Olt :ZA •I r T .i� CL cli . . .... _ r R _Y - _ `Y. C fL N J. Q•: U o O c O LL a o 3 C,: U cz • a _N C J^ O C-P—/ NZ v EXHIBIT "A" Page 7 C) a: ". :. Lu . . L `-�. '+sem+'-. :• _ 00.0 ri a _ 7 0 M V .. . ¢ a C9 L N o LL... O N M. CO 0 ' N N . H Z5 xLU ' Q o LL .�.r Q is_ __ .7 U •• '?, _ 0. L .f CV U • ¢ _ r z 0 � � ' Q.. r w........ . Z hrj (f�T. O� Ob11N. ci U � a L U d U yo U � N 0 EMBIT "A" Page 8 ::;_ - Figure 3-31 _ _:._.. .- -.... ..__ .._ LC. Route. 4_ Boardings by Faretype i -a•! f^.. -.•�_.-� =:.1_^ is -'•`+ __ ��•_ .. _ �. .. � .. ', _ ...._ .. __ -,_ 4... _... - _ ....: 4; MADONNA-FOOTHILL LOOP (including tandems) _< - Children-Other: 1% Senior-Disabled: 2% egular: 60/67 z _ •'yam_:'--+._� —.r_-_ _ - -. -. _ � ..+�\ :L. -••_.w'-.ori^ i-�r .. - �i _ _ .. '• _' _' - �"�'i� i •yrs �� w'•I� -� f. _ _ _ _ _ •y\: Cal Poly: 91% Ac e i• - - .. • - •-moi 3-48 A' '.r u •r X.• --- - EXHIBIT "A" Page 9 Figure 3-3 f SYSTEMWIDE RIDERSHIPBYFARETYPE - ;.• t. mac:• -� �.-+":c�.�'-,� ChildreNOther: : Senior-Disabled: -- :> _ _ �� - .:l •^+• �� :�; • - fir,-::: .4,_ w`;N Cal'Poly: 71% 3-7 �- e,2 STATE OF CALIFORNIA STD.17A(NM 5/83) NONDISCRIMINATION CLAUSE (OCP - 1) 1. During the performance of this contract,contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition,marital status,age(over 40)or sex. Contractors and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act(Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7265.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code,Section 12990,set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated intothis contract by reference and made a part hereof as if set forth in full, Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. 2.This contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.