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HomeMy WebLinkAboutResolution - 2014-R0301 - Contract - TTU - Bus Service - 09/04/2014RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF TI -IE 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 the City of Lubbock and Texas Tech University, and related documents. Said Contract is attached hereto and incorporated in this resolution as it' fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on September 4, 2014 TSON, MAYOR TTEST: Garza, City E -D AS TO CONTENT: 11 I- /Verton, Assistant ity Attorney PPRO"VED ASTO DORM: City 'S.CQntract-TTU campus bus service 11.14 Resolution No. 2014-R0301 AGREEMENT C06749 This Agreement, effective as of September 1, 2014, (the "Effective Date"), between 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, the Agreement embodies the intention and resolution of the above named parties: NOW, THEREFORE WITNESSETH THIS AGREEMENT: Term It is agreed and understood by the parties hereto that a University bus service utilizing up to thirty-six (36) buses shall be provided by the City for a one year term (September 1, 2014 through August 31, 2015) ("Contract Year One"), at an hourly rate, as set forth herein which represents a 2% increase in rate as compared to the 2013-14 fiscal year contract. Subject to the rights of termination set forth herein, the University shall have an option to extend this Agreement for an additional year (September 1, 2015 through August 31, 2016) ("Contract Year Two"), at an hourly rate which represents a 2% increase in rate as compared to Contract Year One. Further, subject to the rights of termination set forth herein, the University shall have an option to extend this Agreement for an additional year (September 1, 2016 through August 31 2017) ("Contract Year Three"), at an hourly rate which represents a 2% increase in rate as compared to Contract Year Two. It is expressly 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. The City executed a management contract with McDonald Transit Associates, Inc. (the "Company") 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 the Company agreed to provide management and advisory services for the system and to maintain the Company to employ the individuals necessary to operate the system. The Company is the agent of the City and University acknowledges, recognizes and hereby consents to the City's use of the Company to provide the services required by this Agreement. Page 1 of 8 it. Bus Operations With respect to bus operations, the City and University agree that the following conditions shall apply: A. The City shall fumish 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, which will not be less than 21. The City 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 City 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 City within five (5) days after receipt of written notice from the University. Initial service, commencing on September 1, 2014, shall be on a schedule provided by the University prior to that date. B. In the event that during any portion of the period first specified in Paragraph 1, a change in or extension of route, removal of a route, or addition of a new route is necessary or desirable, the City 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 City shall be subject to the conditions and limitations set forth in Subparagraph E of this Paragraph. Also, if an additional bus or buses are required in order to meet the demand for said bus service during any operating period or periods, the City, if it is able to provide same, at the University's 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 City. C. Buses shall stop to receive or discharge the passengers using bus service at such off campus points m shall be agreed upon from time to time during said periods, between the City and the University, and the University shall identify the points on campus at which stops will be made by said buses. The City shall provide acceptable markers at all agreed upon points off campus. D. The City 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 the exclusive right to determine on -campus busing routes for bus service. Routes for independent bus companies or buses from housing facilities shall be permitted to unload passengers at campus locations determined solely by the University. Service order bus charters provided by the City or any other company are permitted on campus for touring purposes only. F. The City shall not collect fares from its passengers, but shall charge the University for providing said on -campus bus service as follows: Page 2 01`8 During the period from September 1, 2014, and August 31, 2015: City will provide an estimated 36,401.51 hours of service at a base rate of $51.00 per hour, for a total for $1,856,477.01. Hours are calculated based on the published 2014-15 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 City, relative to the base figure of $3.10 per gallon. The adjustments shall be based on a fuel consumption rate of 2.5 gallons per hour of operations per vehicle and shall be calculated using the following formula: Adjusted Hourly Rate per Vehicle= Base Rate + (2.5 x Fuel Cost Above $3.10 per Gallon) M Adjusted Hourly Rate per Vehicle = Base Rate - (2.5 x Fuel Cost Below $3.10 per Gallon) G. The City 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, 2014, and August 31, 2015: City will provide an estimated 32,921.49 hours of service at a base rate of $51.00 per hour, for a total for $1,678,995.99. Hours are calculated based on the published 2014-15 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 City relative to the base figure of $3.10 per gallon. The adjustments shall be based on a fuel consumption rate of 2.5 gallons per hour of operations per vehicle and shall be calculated using the following formula: Adjusted Hourly Rate per Vehicle = Base Rate + (2.5 x Fuel Cost Above $3.10 per Gallon) M Adjusted Hourly Rate per Vehicle = Base Rate - (2.5 x Fuel Cost Below $3.10 per Gallon) The City shall present the University with a detailed invoice on or before the 15ih of each month for the prior month's hours of service provided. Such invoice is to be paid by the University no later than 30 days after receipt of the invoice, in accordance with State law. The City shall provide an income and expense statement at the end of the contract period. It is understood between both parties that the discount base rate of $51.00 shall apply conditionally upon a total contract hours usage per year of 60,000 hours or greater. In the event the total hours are less than 60,000 per year the contract base rate of $52.25 shall apply. The $52.25 base rate will be retroactive from the start date of the contract. Page 3 of 8 In order to facilitate the University's analysis of potential exercise of its option to renew this agreement for Contract Year Two, the City shall provide the University with its estimated fuel cost base figure for the coming year on or before July 1, 2015. Similarly, to the extent this agreement is in force for Contract Year Two, the City shall provide the University with its estimated fuel cost base figure for the coming year on or before July 1, 2016. In the event the University exercises its option to continue the terms of this agreement for Contract Year Two at the above-described 2% increase, the City shall nevertheless provide the University with an estimate of on -campus and off -campus hours expected to be provided during Contract Year Two in order that both parties may prepare preliminary budgets. Similarly, in the event the University exercises its options to continue the terms of this agreement for Contract Year Three at the above-described 2% increase, the City shall nevertheless provide the University with an estimate of on -campus and off -campus hours expected to be provided during Contract Year Three in order that both parties may prepare preliminary budgets. H. The City shall allow University students to ride any fixed City route published online (hnp://www.citibus.com/page/routes), at no charge when they show a current University Student Identification Card. I. In a campus emergency situation, the Managing Director of University Parking Services is the Emergency Transportation Officer. During an emergency situation, the transportation of people may have to be facilitated or restricted from areas at risk and in support of response and recovery activities. The Emergency Transportation Officer, working as part of the Emergency Operations Center, has responsibility for arranging for or providing the transportation needed to support emergency operations. It is assumed the City will continue to provide service pursuant to this agreement during emergency situations. Campus transit system buses may be diverted from their normal routes and scheduled as needed to support University emergency operations. 11. Service Orders The Federal Transit Administration has issued charter regulations, found at Federal Register 49 CFR Part 604, effective April 30, 2008. (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.uov/charterreeistration) where private charter operators can register for all geographic regions in which they are interested in providing service). Due to the above referenced regulations, when a public transportation system receives a request for a charter it 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 its 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 Page 4 of 8 requested. In order for this process to take place, public transportation systems must have at least four days' notice on charter requests. In the event that the City is able to provide charter service to the University, the City shall famish 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 City shall charge the University for providing said service orders the sum of $130.00 for the first hour of service, $130.00 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 $60.00 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. Rates will not be pro -rated until the fourth hour of service. Billing periods and reports of operation shall be submitted in accordance with the provisions of Subparagraph F of Paragraph lI hereinabove. 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 City shall provide appropriate timetables for the convenience ol'students. The City shall also provide $4,500 towards the production of pocket -sized campus maps. The City shall also place an advertisement in The Ward Publications at the beginning of the Fall Semester. The City shall obtain the Student Government Association's approval of any advertisements before placing them in the buses used on campus. The City shall provide lease space for six (6) vinyl wrap bus advertisements to the University at no charge for Contract Year One. At the end of the first year, the University has the option to replace all six (6), or any number up to six, of the vinyl wraps. The University will be charged a reduced lease rate of $500 per month for any vinyl that remains on the bus past the initial year. No vinyl will stay on the bus for longer than three years. The University will have a total of six (6) vinyl wrap buses available to them at any given time. The University has the option to purchase additional vinyl wraps, over the agreed upon six, at the publicly advertised lease rate. Vinyl is warranted for two years, and window vinyl is warranted for one year. After one year, and every year after, the City 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 City. The City 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 City 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 student organization is responsible for the artwork and production of the signage. All artwork must be approved by the Student Government Association and the City. This will be limited to two (2) advertisements per bus per year. In order to place two (2) advertisements per bus the student organization will need to provide eighty (80) posters to the City. The City does not allow political or sexually -explicit advertisements. Page 5 of 8 The University administration will be provided with space for twelve (12) posters per bus per year to use at their discretion. Signage must be laminated to 1 I" x 17" in a horizontal format. The University retains the right to retain any revenue obtained from the use of these signs. The City does not allow political or sexually -explicit advertisements. The University has the right to research further in bus advertising options. Such options will not be implemented unless agreed upon by both the City and the University. V. Service Provided The City 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 City 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 City 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 City'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 City or the agent of the City. Said drivers shall not constitute agents or employees of the University, and shall be subject solely to the City's or the City's agents supervision and control. VII. Insurance and Risk A. As set forth in Paragraph I, it is recognized by the parties hereto that the City has entered into an Agreement with its agent, McDonald Transit Associates, Inc. (the "Company") for the purpose of the Company providing transportation services in and around the City of Lubbock, Texas, including the University. Under that 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 under 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 Page 6 of 8 University" and "Texas Tech University" as additional insureds. 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 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 City 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 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 City 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 City. In such eventuality, the University may, upon twelve (12) hours' notice to the City, request the temporary suspension of bus service until the resumption of normal class schedules, in which event the City shall not furnish buses or be paid for services until the resumption of services. The University shall, in such cases, notify the City 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 City in an attempt to resolve any unresolved claim for breach of contract arising under this Agreement and made by the City. Page 7 of 8 EXECUTED, as of the Effective Date hereof: TEXAS TECH UNIVERSITY i M. Duane Nellls, President Date: 20/� Noel Sloan, Chief Financial Officer Date: ?-/,0- /V REVIEWED FOR FORM: TEXAS TECH UNIVERSITY CITY OF LUBBOCK Glen obe son, Mayor ATTEST: Reb tcca Garza, City ecr tary APPROVED AS TO CONTENT: Jo jM M��t�� r �y � , uW ,-3jg�A John Huffaker, General Cout sel �f 1 Bill werton, Jr., Citibus LLii/�/r'/gon APPROVED AS TO FORM: qlafi-y L. ns, g Attorney Date: I I- 10 k� Rcvmd b28-13 Page 8 of 8