HomeMy WebLinkAboutResolution - 1472 - Contract - Mcdonald Transit Associates Inc - Transportation Management - 09/08/1983DGV:da
RESOLUTION
RESOLUTION 1472 - 9/8/83
try n .,..,-q r,�, �.
,E . UI UR-
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Transpor-
tation Management Contract between the City of Lubbock and McDonald Transit
Associates, Inc., for the management of the Lubbock transit system,
attached herewith which shall be spread upon the minutes of the Council and
as spread upon the minutes of this Council shall constitute and be a part
of this Resolution as if fully copied herein in detail.
Passed by the City Council this 8th
ATTEST:
elyn G ffg , Ci tary-Treasurer
APPROVED AS TO CONTENT:
ii Be tram, Assistant City Manager
AP D AS TO FORM:
. vanaiver,
day of September 1983.
-ALAN ffENRYv`MAYOR
y Attarney
RESOLUTION 1472 - 9/8/83
DGV:da
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Transpor-
tation Management Contract between the City of Lubbock and McDonald Transit
Associates, Inc., for the management of the Lubbock transit system,
attached herewith which shall be spread upon the minutes of the Council and
as spread upon the minutes of this Council shall constitute and be a part
of this Resolution as if fully copied herein in detail.
Passed by the City Council this 8th day of September , 1983.
ATTEST:
..Evelyn Gaf a, City Se e y reasurer
APPROVED AS TO CONTENT:
John L. Wilson, Transit Coordinator
APPROVED AS TO FORM:
. Vandiver, Assistant City
No Text
CITIBUS RECOMMENDED FARE POLICY
The purpose of this report is to present a list of recommended
fare policies for consideration and formal adoption to help guide the
Citibus operation in maximizing farebox revenues.
BACKGROUND
A review of the transit fare policy literature indicates the ma-
jority of transit systems are without a formally stated fare policy.
The need to establish a realistic.fare policy is becoming paramount
given the changing financial situation in today's transit industry.
Increasing operating costs coupled with the possible reduction or eli-
mination in federal operating assistance is making it increasingly
difficult for many transit systems to meet their service commitments.
Many are looking toward implementing cost containment measures and
searching for additional revenue sources to meet financial goals. A
sound fare policy will enable the City of Lubbock, the Transit Advi-
sory Board, and Citibus staff to attain and maintain financial goals.
In addition, a well articulated fare policy will enable Citibus to
justify its actions, and 'also to better inform the transit public as
to why fare adjustments a're needed and implemented. Well-defined
specific fare policies will enhance the ability of Citibus management
to monitor and evaluate system performance in achieving established
goals.
RECOMMENDED CITIBUS FARE POLICY STATEMENTS
The following is a list of recommended Citibus fare policies for
considerationand formal adoption. These fare policies emphasize a
desire to:
o Provide cost effective public transportation services; and
o Maintain reasonable, affordable and equitable fares for
handicapped persons, senior, citizens, children and students.
The specific recommended fare policies for Citibus are presented below.
Provide Cost Effective Public Transportation Service
1. To establish and maintain a goal for operating revenues to cover
the maximum total cost of operating the'Citibus system as is lo-
cally practical. This ratio should be based on recovering maxi-
mum possible operating costs through all revenue sources and not
just f arebox revenue.
2. The charge (revenue) to Texas Tech for providing transportation
services should cover at a minimum 100 percent of the cost as-
sociated with providing this service.
3. The establishment of charter rates will be based on recovering at
a, minimum 100 percent of the costs associated with providing these
services
Maintain Reasonable, Affordable, and Equitable Fares
4, Optimize Federal participation concerning operating assistance in
order to allow the passenger fares and local public contributions
to be maintained at reasonable levels.
So The fare established for elderly citizens and handicapped persons
(E & H) for Citibus regular service shall not exceed 50 percent of
the basic adult fare. This fare shall remain in effect for
the entire service period.
6. Children under 6 years of age shall travel free of charge.
7. The Econocard punchcard tickets for 10 and 20 rides shall be
sold at a discounted rate below the basic adult fare.
8. The fare for children.ages 6 through 12 shall be less than
the Econocard fare.
9. The rates for tickets issued by Lubbock human services agencies
shall be equivalent to the E & H fare plus $ .05. The addi-
tional $ .05 covers printing and administration costs.
10. All transfers within the Citibus route system shall be as mini-
mal a charge as is practical.
These policies recognize that the operation of the Citibus transit
system benefits all segments of the society whether it be the user or
the community in which it operates, and that the responsibility for pro-
viding the service should be shared equitably among the users and the
community as a whole.
These policies comprise a sound, responsible, and equitable fare
policy to guide Citibus' future operations.
S�Q
TRANSPORTATION MANAGEMENT CONTRACT
RESOLUTION 14,72- 9/8/83
THE STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK §
THIS CONTRACT AND AGREEMENT, made and entered into on this,
the 8th day of September, A.D., 1983, by and between the City
of Lubbock, a Home Rule Municipal Corporation of the State of
Texas, hereinafter called "City", and McDonald Transit Asso-
ciates, Inc., a Texas Corporation, hereinafter called "McDT".
W I T N E S S E T H:
WHEREAS, the City has determined that it will require the
services of a professional management company for the transpor-
tation system owned, operated and administered by the City, and
WHEREAS, the City is authorized to enter into a contract for
management and advisory services relating to said transportation
system, and
WHEREAS, McDT is desirous of providing such management and
advisory services, and is qualified to do so, and
WHEREAS, the City has selected McDT to provide such ser-
vices, NOW THEREFORE, the parties hereto do covenant and agree as
follows:
I.
The City does hereby engage and retain McDT to provide
management and advisory services for the public transportation
system of the City on the terms and conditions hereinafter set
forth.
II.
The term of this contract and agreement shall be for a
period of three years, beginning on the first day of October,
1983, and ending on the last day of September, 1986, and there-
after shall be automatically renewed for successive periods of
twelve (12) months unless at least sixty (60) days prior to the
end of any twelve-month effective period either party shall serve
written notice upon the other that it desires cancellation,
revision, or modification of any provision or provisions of this
agreement.
The City agrees to pay McDT as compensation for services
rendered hereunder a monthly payment as follows:
During the period from October 1, 1983, through December 31,
1983, the sum of four thousand six hundred and fifty dollars
($4,650.00) per month.
During the remaining term of this agreement, as provided in
II above, a sum per month mutually agreed upon by the parties not
exceeding six thousand two hundred and fifty dollars ($6,250.00).
Payment of the monthly compensation as specified herein
shall be made by the City on the 15th of the initial month of the
contract and thereafter on the fifteenth day of each succeeding
month during the term hereof.
In addition, the City shall reimburse McDT for travel and
subsistence of non-resident personnel billed at cost and fully
documented.
Additional services not provided as part of the monthly fee
shall be compensated at thirty-two dollars ($32.00) per hour.
IV.
McDT agrees to furnish on and after October 1, 1983 a
resident General Manager, who shall be a qualified diligent
expert and efficient executive who will reside in the City's
service area and who will be assigned to, and perform the
functions of the position of general manager, and will serve as
operating officer and be responsible for day-to-day operation of
all departments of the system in an efficient and effective
manner.
The selection and appointment of such general manager, and
any such subsequent appointees, shall be the responsibility of
McDT, but shall not be made without first obtaining the advise
and consent of the City. In the event of the disability of any
person acting in the position of general manager, McDT covenants
and agrees to secure a qualified individual to fill said position
for as long as such disability may continue or to replace such
individual, if necessary, all subject to the advice and consent
of the City. .
V.
McDT covenants and agrees to incorporate and maintain at its
sole cost and expense a Texas Corporation, City Transit Manage-
ment Company, Inc. d/b/a Citibus hereinafter referred to as 11CTM11
which shall be the employer of all employees necessary for the
operation of the system.
Any contractual obligation or liability entered into or
assumed by CTM and approved by the City, in connection with the
operation of the transit system, shall be binding upon McDT only
for the term of this Agreement, as same may be extended, and in
the event this Agreement is terminated or expires, then the City
shall thenceforth assume all future obligations and liabilities
under said contracts either on behalf of itself or any successors
to CTM. The City agrees to indemnify CTM and McDT and hold them
harmless from all contractual liability and costs arising out of
the operation of the transit system with the exception of the
fidelity bond for McDT personnel, and those exceptions set forth
in Section XIII hereof. The City reserves the right of approval
of all contracts prior to execution by CTM or McDT under this
Agreement.
VI.
McDT agrees to provide sufficient working funds to pay
normal payroll and operating expenses of the transit system prior
to reimbursement from the City each month.
City agrees to pay McDT interest on the amount utilized for
the working fund. That interest percentage should be computed
quarterly beginning on the first day of October, 1983, and shall
be the prime rate charged by the Texas Commerce Bank of Lubbock,
Texas, less 2%.
City further agrees that in the event of termination of this
Agreement for whatever reason, it will repay McDT within thirty
(30) days, the full amount of working funds advanced by McDT,
plus the accrued interest from date of last interest payment
through date of final repayment.
VII.
McDT shall permit the authorized representatives of the City
to inspect and audit all data records of McDT relating to its
performance under this Agreement. To the extent that Federal or
State funds are involved, the right to inspection and audit shall
extend to authorized representatives of the United States
Department of Transportation, the Comptroller General of the
United States and the State of Texas.
VIII.
Revenue derived from the operation of any or all of the
Lubbock transit system or systems managed by McDT, whether from
passengers or from other sources, shall be and remain from the
initial receipt thereof, the absolute property of the City and
the treatment of such revenue, including the banking thereof, and
the accounting therefore, shall be as directed by the City.
McDT on behalf of the City shall receive, collect and
deposit all of the aforesaid revenue collected in its operations
in the manner directed by the City, and McDT shall keep and
maintain the books and records reflecting the operation of any or
all of the transit systems in conformity with the requirements of
the City and at the direction of the City shall render to the
City such full and complete monthly or other operating reports
and financial statements as shall be required by the City.
IX.
McDT further covenants and agrees to furnish expert advisory
services and/or consultation including the following:
(A) Quarterly management review visits and policy recommen-
dations.
(B) Liaison with UMTA Region VI.
(C) Telephone consultation.
(D) Monitoring and evaluation of all operations, systems
and procedures.
McDT further covenants and agrees to furnish management and
operational services through CTM, including the following:
(A) Through December 31, 1983:
(1) Marketing, Research, Plan, Campaign, Public
Relations
(2) Equipment, Maintenance and Operation
(3) Building Maintenance and Operation
(4) Security
(5) Purchasing and Leasing (Operations)
(6) Accounting (Citibus)
(7) Safety
(8) Insurance and Claims
(9) Citibus Employee Selection and Training
(10) Labor Negotiations
(11) Citibus Employee Grievance
(B) Thereafter, in addition to the above:
(1) Transit Planning
(2) Route Planning
(3) Route Schedules (Map & Drivers)
(4) Recommend Fares & Rates
(5) Recommend Service Standards
(6) Purchasing (Capital)
(7) Budgeting
(8) Employee Relations (Newsletter, Awards, etc.)
(9) Grant Application and Monitoring
(10) Make diligent efforts to provide employment
for the following positions:
(1) Transit Coordinator
(2) Transit Planner
(3) Senior Clerk -Typist
All such services rendered by McDT shall be subject to the
reasonable supervision and control of the City. McDT shall make
recommendations, or the City may request information or recommen-
dations as to any areas of operation which are deemed appropriate
and proper, and the decision of the City shall be binding and
final in regards thereto. The City shall name a person to serve
as liason with CTM and McDT prior to January 1, 1984.
x
X.
McDT at its sole cost and expense shall furnish to the City
all necessary fidelity and surety bonds to protect, save whole
and harmless, and indemnify the City from and against dishonesty,
fraud or theft occasioned by any officer or employee of McDT.
Coverage of each such employee shall be in an amount of not less
than fifty thousand dollars ($50,000.00).
Citibus employees will be covered by a blanket fidelity
bond, the premium for which shall be considered as an operating
expense.
XI.
The City agrees to furnish all necessary offices, office
furniture, equipment, materials, fuels, supplies, rolling stock,
bus maintenance and storage facilities and equipment, and
automobile transportation which may be required for operation of
the transportation system.
The City further agrees to reimburse to CTM such funds as
may be necessary to meet payroll and all other expenses of the
operation of the bus transportation system, excluding the cost of
the fidelity bond on McDT officers and employees described in
Section X and the cost of the advisory services described in
Section IX.
XII.
CTM shall maintain during the life of this contract such
public liability and property damage insurance as shall protect
itself, McDT and the City, as additional insureds, from claims
for damages for personal injuries, including death, as well as
from claims for property damages which may arise from operations
or the performance of the work and services contemplated here-
under. The cost of carrying such insurance or self-insurance of
any primary risk shall be an operating expense payable by the
City to CTM.
XIII.
Whatever liability including but not limited to employment
related matters, personal injury, or property damage may be
incurred by McDT, or any of its officers, directors, or em-
ployees, to third parties in connection with or arising out of
the operation of the transportation system, and the costs,
expenses and attorneys' fees thereof, including any and all
liability of McDT, its agents, servants or employees, shall be
part of the costs and expenses incurred by the City in the
operation of the transportation system not otherwise covered by
by insurance or in excess of insured amounts. McDT will, however,
be liable for any dishonesty or fraudulent misconduct committed
or directed by any officer of McDT and for any breach of this
Agreement on the part of McDT.
XIV.
McDT covenants and agrees that it presently has no interest,
and will not acquire any interest, direct or indirect which
conflicts with its efficient, diligent and faithful performance
of the terms of this contract and Agreement.
XV.
McDT shall not be liable to the City for any failure, delay
or interruption of service, nor for failure to delay in perfor-
mance of any obligations under this agreement due to strikes,
lockouts, acts of God, governmental restrictions, availability of
fuel and supplies, enemy action, civil commotion, unavoidable
casualty or similar acts beyond the control of McDT.
XVI.
This contract and agreement shall not be assigned or
transferred by McDT without the prior written consent of the
City.
XVII.
All notices hereunder and communications with respect to
this contract shall be effective upon the mailing thereof by
Registered or Certified Mail, return receipt requested, postage
prepaid, and addressed as follows:
A. If to McDT - McDonald Transit Associates, Inc.
5009 Brentwood Stair Road
Suite 305
Fort Worth, Texas 76112
B. If to the City - The City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
or to such other address as either party shall designate by
written notice.
XVIII.
McDT hereby acknowledges and agrees that it shall comply
with all terms and conditions of Urban Mass Transportation
Administration grant contracts between the United States and the
City of Lubbock, the City of Lubbock's applications, assurance,
and all other applicable laws and regulations which may apply in
carrying out the accomplishment of the programs.
IN WITNESS WHEREOF, the parties hereto have executed this
contract and agreement on the 8th day of September
A.D., 198_ as of the date and year aforesaid.
RRESIDENT "
ATT
Secretary
CITY F zK
AL N HENRY MAYO r•
ATTEST:
Ebelyn "ffga, City
Secretary -Treasurer
APPROVED AS TO CONTENT:
Ji ertram,
As ant City Manager
APPROVED AS TO FORM:
-7 1F-L_)Rrr
D Wald G. Vandiver,
Assistant City Attorney
LETTER OF AGREEMENT BETWEEN
McDONALD TRANSIT ASSOCIATES, INC. (McDT)
AND
THE CITY OF LUBBOCK, TEXAS (City)
WHEREAS, a contract and agreement made and entered into on the
8th day of September, 1983 (Resolution No. 1472) exists between McDT
and the City, and
WHEREAS, Section III of said contract provides that the
compensation to McDT for the period January 1, 1984, through the
last day of September, 1986, shall be, "a sum per month mutually
agreed upon by the parties not exceeding Six Thousand Two Hundred
and Fifty Dollars ($6,250.00)",
NOW THEREFORE, the parties hereby mutually agree that the
compensation for the period from January 1, 1984, through
September 30, 1986, shall be Six Thousand One Hundred Fifty
Dollars ($6,150.00) per month.
EXECUTED THIS 17th DAY OF NOVEMBER, 1983.
McDONALD TRANSIT ASSOCIATES, INC.
I %.-
A
�7
President
ATTEST:
ssistant Secre ary
CITY OF LUBBOCK
�L �a1r/:
ATTEST:
APPROVED AS TO FORM:
0 A215 1 §1114 �L f