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HomeMy WebLinkAboutResolution - 2010-R0272 - Bus Service Contract W/Texas Tech University - 06/10/2010Resolution No. 2010-RO272 June 10, 2010 Item No. 5.21 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Contract for campus bus service, by and between City Transit Management Company Inc., the City of Lubbock and Texas Tech University, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on ATTEST: -AQ Rebe ca Garza, City Secretary APPROVED AS TO CONTENT: "James Loomis, Assistant City Manager �.:�rpnsportation APPROV D AS TO FORM: Chad Weaver, Assistant City Attorney vw:ccdocs RES.Contract-TTU May 7, 2010 June 10, 2010 e-- ;;4- z -�0� -- TOM' _ TO MARTIN, MAYOR Resolution No. 2010—R0272, AGREEMENT This Agreement, effective as of September 1, 2010, (the "Effective Date"), is by and between CITY TRANSIT MANAGEMENT COMPANY, INC. (hereinafter referred to as the "Company"), TEXAS TECH UNIVERSITY at Lubbock, Texas (hereinafter referred to as the "University"), and the CITY OF LUBBOCK, TEXAS, a Home Rule Municipal Corporation (hereinafter referred to as the "City"). WITNESSETH: WHEREAS, the parties hereto are aware of the traffic and parking challenges on the campus of the University as it relates to the expanding campus, enrollment growth, and the increasing number of commuting students, staff, and faculty of the University; and WHEREAS, the above named parties are desirous of relieving some of the traffic congestion and expediting transit between areas in and immediately adjacent to said the University campus; and WHEREAS, City executed a management contract with McDonald Transit Associates, Inc., dated August 28, 2008, in which the City is obligated to provide capital assets reasonably required for the operation of the public transportation system of the City, and McDonald Transit Associates, Inc. agreed to provide management and advisory services for the system and to maintain the Company to employ the individuals necessary to operate the system; and WHEREAS, the Agreement embodies the intention and resolution of the above named parties: NOW, THEREFORE WITNESSETH THIS AGREEMENT: I. Term It is agreed and understood by and between the parties hereto that a University bus service utilizing up to thirty-six (36) buses shall be provided by the Company during the period beginning September 1, 2010, and terminating on August 31, 2011, provided; however, that either the City or the University may terminate said bus service upon thirty (30) days' written notice delivered to the other party by registered mail. II. Bus Operations With respect to bus operations, the Company and University agree that the following conditions shall apply: A. The Company shall furnish buses having a seating capacity (manufacturer's rating) of not less than 33 with driver -operated front and side doors; with the exception of the Tech Terrace route seating capacity of not less than 26. The Company shall provide the necessary personnel to service the route or routes designated by the University during the period specified in the preceding Paragraph I of this Agreement. The number of buses and the operating periods shall be subject to continuous review, and the University shall advise the Company with regard to its needs and with respect to any changes in the number of buses and/or operating periods; subject to equipment availability, said changes shall be instituted by the Company within five (5) days after receipt of written notice from the University. Initial service, commencing on September 1, 2010, shall be on a schedule provided by the University prior to that date. B. In the event that it develops during any portion of the period first specified in Paragraph I hereinabove, that a change in or extension of route, removal of a route, or addition of a new route is necessary or desirable, the Company shall make such changes or extensions of a route or routes, shall remove a route, or shall add a new route upon the University's request. The changes to be made by the Company, therefore, shall be upon the basis, and shall be subject to the conditions and limitations, as are set forth in Subparagraph E of this Paragraph hereinbelow. Also, in the event it develops during said period that an additional bus or buses are required in order to meet the demand for said bus service during any operating period or periods, the Company, if it is able to provide same, at the University's Page 1 of 6 written request, shall provide such additional bus or buses for said service during said operating period or periods upon the same basis, as is set forth hereinabove. The University shall have the right to terminate any such changes, extensions, or new routes upon five (5) days' written notice to the Company. C. Buses shall stop to receive or discharge the passengers entitled to use, and using, bus service at such points as shall be agreed upon from time to time during said periods, between the Company and the University, and the University shall identify the points at which stops will be made by said buses. The Company shall provide acceptable markers. D. The Company shall exercise due diligence to adhere to the time schedules hereinabove referred to, but minor deviations therefrom due to variations in traffic, weather, or load conditions shall not be deemed to be a default hereunder. E. The University has exclusive rights to on -campus busing. Only routes designed and paid for by the University shall be permitted on the campus. Routes paid for by independent companies or housing facilities shall be permitted to use the University park and ride lot. They shall not be permitted on campus. Service orders placed by companies or individuals shall be permitted on campus for touring purposes only. F. All revenues received by the Company pursuant to the Agreement shall be and remain from the time of the Company's receipt thereof the property of the City, and the treatment of such revenues, including the banking thereof, and the accounting therefore, shall be as directed by a representative chosen by the City Manager of the City. The Company shall not collect fares from its passengers, but shall charge the University for providing said on -campus bus service as follows: During the period from September 1, 2010, and August 31, 2011: A minimum for 39,231.47 hours of service at a base rate of $46.02 per hour, for a total for $1,805,432.25. Hours are calculated based on the published 2010-11 school calendar. Such charges shall be adjusted each month to reflect any change above or below the monthly average of the actual price paid per gallon of fuel in that month by the Company on a base figure of $2.65 per gallon. The adjustments shall be based on fuel consumption of 2.5 gallons per hour of operations per vehicle and shall be accomplished according to the following formula: Adjusted Hourly Rate per Vehicle = Base Rate + (2.5 x Fuel Cost Above $2.65 per Gallon) Adjusted Hourly Rate per Vehicle = Base Rate - (2.5 x Fuel Cost Below $2.65 per Gallon) G. All revenues received by the Company pursuant to the Agreement shall be and remain from the time of the Company's receipt thereof the property of the City, and the treatment of such revenues, including the banking thereof, and the accounting therefore, shall be as directed by a representative chosen by the City Manager of the City. The Company shall not collect fares from its passengers, but shall charge University for providing said off -campus bus service as follows: During the period from September 1, 2010, and August 31, 2011: A minimum for 19,103.33 hours of service at a base rate of $46.02 per hour, for a total for $879,135.25. Hours are calculated based on the published 2010-11 school calendar. Such charges shall be adjusted each month to reflect any change above or below the monthly average of the actual price paid per gallon of fuel in that month by the Company on a base figure of $2.65 per Page 2 of 6 gallon. The adjustments shall be based on fuel consumption of 2.5 gallons per hour of operations per vehicle and shall be accomplished according to the following formula: Adjusted Hourly Rate per Vehicle = Base Rate + (2.5 x Fuel Cost Above $2.65 per Gallon) Ism Adjusted Hourly Rate per Vehicle = Base Rate - (2.5 x Fuel Cost Below $2.65 per Gallon) The Company shall submit an invoice at the end of each month showing the amount due for service provided. Contemporaneously therewith, the Company shall present the University with a billing at the close of operations on the last day of each month. Such bill is to be paid as promptly as possible in usual course of the University business and in accordance with State law. The Company shall provide an income and expense statement at the end of the contract period. $2,684,567.50 + $0.00 = $2,684,567.50 Service Cost Estimated Estimated Fuel Cost Total Cost Adjustment It is understood between both parties that the discount base rate of $46.02 shall apply conditional upon a total contract hours usage of 56,000 hours or greater. In the event the total hours are less than 55,999 the contract base rate of $49.02 shall apply. The $49.02 base rate will be retroactive from the start date of the contract. H. The Company shall allow Texas Tech University students to ride any fixed route at no charge when they show a current Texas Tech Student Identification Card. M. Service Orders The Federal Transit Administration has issued new charter regulations, Federal Register 49 CFR Part 604, effective April 30, 2008, that drastically changes the way public transportation providers, such as Citibus, can provide charter service. The rules are set up to protect private charter companies from unfair competition from public transportation systems that receive Federal funds. The Federal Transit Administration has created a website (www.ft.dot.gov/charterregistration) where private charter operators can register for all geographic regions in which they are interested in providing service. Due to the new regulations, when a public transportation system receives a request for a charter they cannot simply agree to provide the service. The public transportation system shall get the details of the service that is being requested and shall e-mail the information to all private charter companies listed in their geographic area. If any of the private charter companies indicate to us that they are interested in providing the service the public transportation system shall not be able to provide the service for any reason. The private charter companies that have expressed interest in the service shall contact the potential customer to work out the details of the service requested. In order for this process to take place public transportation systems must have at least four day's notice on charter requests. In the event that the Company is able to provide charter service to the University, the Company shall furnish service orders, if equipment is available, for the transportation within fifty (50) miles of the City limits of such special groups as may be designated by the University. The Company shall charge the University for providing said service orders the sum of $125.00 for the first hour of service, $125.00 for the second hour of service, and $100.00 for the third hour of service for each bus used in said service. Any service orders exceeding three hours shall be billed $55.00 per hour after the first three hours. The above mentioned rates are the same rates that are charged to the general public. There shall be a one hour minimum required on all service orders. Billing periods and reports of operation shall be submitted in accordance with the provisions of Subparagraph F of Paragraph II hereinabove. Page 3 of 6 w IV. Publicity The University shall undertake and conduct a program designed to publicize the existence of said bus service and to acquaint its staff members and students with the availability of the same during the period in which it is provided in accordance with and under the Agreement. The Company shall provide appropriate timetables for the convenience of students. The Company shall also provide $4,500 towards the production of pocket -sized campus maps. The Company shall also place an advertisement in The Daily Toreador at the beginning of the Fall Semester. The Company shall obtain the Student Government Association's approval of any advertisements before placing them in the buses used on campus. The Company shall provide lease space for two vinyl wrap bus advertisements to the University at no charge for a period of one year. At the end of the first year, the University has the option to keep said vinyls on the buses for a reduced lease space rate of $500 per month, per bus for up to five years, at which point the vinyl shall be removed. Vinyl is warranted for two years, window vinyl is warranted for one year. After one year, and every year after, the Company shall determine the condition of the vinyl for renewal option. Any vinyl replacement would be at the University's cost. The vinyl wraps shall be designed by the University with final approval by the Company. The Company shall be responsible for having the vinyl produced and installed. The University shall be responsible for the production and installation cost of the vinyl. The Company shall provide space for in -bus signage for student organizations that are advertising a non - revenue generating event at no fee to the University. The organization is responsible for the artwork and production of the signage. All artwork must be approved by the Student Government Association and Citibus. The Company shall place two (2) advertisements per bus. Signage must be laminated to 11" x 17" in a horizontal format. In order to place two (2) advertisements per bus the organization will need to provide ninety (90) posters to the Company. The Company does not allow political or sexually -explicit advertisements. V. Service Provided The Company shall provide and use at all times, buses that are in good and safe mechanical condition, and are also in reasonably clean condition, and shall also provide competent and duly licensed drivers by whom said buses shall be driven, and the Company shall assume full and complete responsibility for the condition of said buses and the qualifications and competence of its drivers at all times, and the University assumes no obligations whatsoever for either of the same. VI. Independent Contractor Relationship In providing and furnishing said bus service during the term hereof, the Company shall act solely in the capacity of and as an independent contractor, and not as an agent or employee of the University, and the University shall have no control over the Company's operations in connection with providing said service except as hereinabove provided and the University shall have no control or supervision whatsoever over the drivers of the buses used in said service who shall be employed by the Company. Said drivers shall not constitute agents or employees of the University, and shall be subject solely to the Company's supervision and control. VII. Insurance and Risk A. It is recognized by the parties hereto that the Company and the City of Lubbock, Texas, have entered into an Agreement for the purpose of the Company providing transportation services in and around the City of Page 4 of 6 Lubbock, Texas, including the University. That under said Agreement, the Company carries and keeps in force an insurance policy insuring both City and the Company against liability for personal injury or property damages arising out of the operation of said bus services and that the services provided herein are also conducted pursuant to the Agreement between the City of Lubbock and the Company. At all times during which the Company shall provide the bus services mentioned herein and upon the above and foregoing terms and conditions, the University shall be protected under the Company's insurance coverage against liability and personal injuries or personal damages arising out of the operation of said bus service to the extent of at least $300,000 for personal injury to any one person, $500,000 for each occurrence, and $300,000 for property damages sustained in any accident or occurrence arising out of the operation of said bus service and the University shall be furnished a certificate of the Company's insurer showing coverage to be at least in the sums just stated. Said insurance policy shall name and include "The Board of Regents of Texas Tech University" and "Texas Tech University" as named insured. Said policy or policies shall, upon request, be subject to the examination and approval of the University. B. The Company, as named insured, assumes, to the extent of the insurance coverage maintained, the risk of service operation and the University shall not be liable for damage to any and all buses or other the Company property used in the bus service operation regardless of the cause thereof. To the extent of the proceeds of such insurance, the University shall be reimbursed for any damage or injury to the University property arising out of or resulting from the said bus service operation except that no such reimbursement shall be made for (1) damage to pavement by normal operation of buses, or (2) any damage or injury caused by acts or omissions over which the Company, its employees, or agents had no control. VIII. Maintenance The Company agrees to maintain and operate said bus service and the buses used in providing the same in a safe, efficient and lawful manner, and in so doing, shall comply with all applicable statutes, municipal ordinances, and traffic rules and regulations promulgated by the University. IX. Miscellaneous A. It is further agreed that this Agreement is made solely for the benefit of the University, the Company, and the City, and no one else, whether a staff member or student of the University, or otherwise, and that no action or defense may be founded upon this Agreement except by the parties signatory hereto. B. In no event shall the Company be deemed to be in default of any provision of this Agreement for failure to perform where such failure is due solely to strikes, walkouts, civil insurrections or disorders, acts of God, or for any other cause or causes wholly beyond the control of the Company. In such eventuality, the University may, upon twelve (12) hours' notice to the Company, request the temporary suspension of bus service until the resumption of normal class schedules, in which event the Company shall not furnish buses or be paid for services until the resumption of services. The University shall, in such cases, notify the Company twelve (12) hours in advance of the time service is to be resumed. X. Dispute Resolution A. The dispute resolution process provided for in the Texas Government Code, Chapter 2260 shall be used by the University and the Company in an attempt to resolve any unresolved claim for breach of contract arising under this Agreement and made by the Company. Page 5 of 6 / EXECUTED, as of the Effective Date hereof. TEXAS TECH UNIVERSITY C---, " Dr. Guy ailey, Presid nt Date: Dr. Michael Shonrock, Vice President for Student Affairs Date: -712,110 Chi6t Fi cal Officer Date: � REVIEWED FOR FORM TEXAS TECH UNIVERSITY General Counsel Date: Revised 6-4-09 CITY TRANSIT MANAGEMENT CO., INC. John L. Wilson, Vice President ACKNOWLEDGED AND AGREED TO CITY OF LUBBOCK Tom Mtartin Mayor ATTEST: Rebec Garza, City Secretary APPROVED AS TO CONTENT: r�l�Ie 1 James Loomis -Assistant City Manager Transportation & Public Works APPROVEJ) AS TO FORM: Chad Weaver Assistant City Attorney Page 6 of 6 05/12/10 15:44 FAI 512 491 2404 TML -IRP UNDERWRITING Certificate of Coverage Lubbock-(ltlbus Texas Municipal League Intergovernmental Risk Pool Ms Julie Rowden PO Box 149194 Human Resources Director Auslin, TX 78714.9194 PO Box 2000 (512) 491-2300 or (800) 537.5655 Lubbock,Texas 79457-0001 Fax (512) 491-2404 its Holder: Texas Tech University Board of Regents PO Box 4610 Lubbock, TX 79414 [a 002 This is to certify that the coverages listed below have been provided to the member and are in effect at this time. Notwithstanding any requireme terms. or conditions of any other contract or agreement with respect to which this certificate may be Issued or may pertain, the coverage affordec the Texas Municipal League Intergovernmental Risk Pool (TML4RP) described herein is subject only to the terms, exclusions and additions of TI IRP's coverage contracts between TML -IRP and its mamber(s). Coverage is continuous until canoeled. al Liability Effective Date: 1 Anniversary Date: 1 of Liability (Each Occurrence): $1,000,000 n Events Involving Pollution Occurrence): $1,000,000 I Aggregate: $2,000,000 bble per Occurrence: s0 nForoement LiablitY Effective Date: Anniversary Date: of Liability (Each Occurrence): I Aggregate: Anniversary Date: of LiaMiity(Each Wmngbrl Act): I Aggregate: tible Per Occurrence: Anniversary Date: of Liability (Each Occurrence). $1,000,000 rMauve Uane- Anniversary Date: of Coverage: • 7 Ill=::1 1 Anniversary Date: of Coverage: We per Oco er a, Machinery - Broad Form 1=ffective Date: Anniversary Date: - Accident Umlt Loss Payee Loan Number. Anniversary Date: Lirrdt5 of Liability: Collision Deductible: Comprehensive Deduodble: Yes No Loss Payee: I I Loan Number respects to the City of Lubbock - Cidbus' Charter Bus Operations CanceHatien: Should any of the above described coverages be canceled before the anniversary date thereof. TML -IRP will endeavor to mail 30 days written notice to the above named certificate holder, but failure to mall such notice shall Impose no obligation or liability of any kind uoon TML -IRP. CITY OF LUBBOCK AGENDA ITEM SUMMARY II. CONSENT AGENDA ITEM/SUBJECT: # Consider a resolution authorizing the Mayor to execute a contract with Texas Tech University for campus bus service. BACKGROUND DISCUSSION: The contract with Texas Tech University for transit services is for a one-year period beginning September 1, 2010, and ending on August 31, 2011. Contract cost will be $46.02 per hour, which includes a fuel cost adjustment above or below $2.65 per gallon. This compares to the current contract amount of $43.38 per contract hour with a fuel cost adjustment of $2.20 per gallon. The number of service hours for this contract is 58,334.80; which is an increase of 1,679 hours from the 2009-2010 contract. The price per hour covers fill cost recovery for the City of Lubbock. Citibus has had a contract with Texas Tech University since 1968, with the fuel cost adjustment being added to the contract in 1981. In accordance with the Texas Tech University contract, Citibus does not collect fares from its passengers. The Texas Tech University Board of Regents will consider approval of the contract at their August meeting. The Texas Tech University Board of Regents requests that the City Council execute the contract first. FISCAL IMPACT: Citibus anticipates receiving $2,684,567.50 from Texas Tech University in FY 2011. The approval of this contract will result in no additional cost to the City of Lubbock. SUMMARY/RECOMMENDATION: Citibus recommends the approval of the contract with Texas Tech University.