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03-03-2020 - AGENDA ITEM 07 CONSIDERATION OF THIRD AMENDMENT TO MV TRANSPORTATION, INC. AGREEMENT FOR TRANSIT SERVICES11/16/2020 Print Staff Report AGENDA ITEM NO. 7 DATE: March 3, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF THIRD AMENDMENT TO MV TRANSPORTATION, INC. AGREEMENT FOR TRANSIT SERVICES RECOMMENDATION: It is recommended that the City Council approve the Third Amendment to the Agreement for transit services with MV Transportation, Inc. effective March 3, 2020 through March 2, 2021. BACKGROUND: This matter was continued from the February 18, 2020, City Council meeting. The agenda report from February 18, 2020 is attached (Attachment No. 1). DISCUSSION: This report is intended to provide clarification and respond to concerns raised at the February 18, 2020 meeting. Dial -A -Ride (DAR) The agreement states that the contractor will provide 5 vehicles for the DAR service with one considered be a spare. The agreement also states that the contractor will make good -faith efforts to increase efficiencies of service. MV Transportation (MVT) does provide 5 vehicles for the DAR program, but frequently deploys 3, based on demand. A fourth vehicle is rolled -out, if demand warrants. Often times, this fourth vehicle is driven by a road supervisor, rather than calling in a driver for a full day, which would result in increased costs passed on to the City. In regard to using DAR vehicles for transporting students, MVT advised that drivers would need to go through a process for certification and may be something to consider for incorporating into next Request for Proposals. In researching the possibility, some challenges were noted. An article in the January 24, 2016, edition of the Pasadena Star -News entitled, "Students Use of City's Dial -A -Ride Leaving Seniors Stranded" detailed the experience of the City of Arcadia. Seniors were unable to secure rides due to the great number of students with standing reservations. A consulting firm hired by the City to assess its transit services ultimately recommended returning the DAR to seniors and disabled. Some fixed routes were modified to better serve students. Cost of Service https://destinyhosted.com/print_ag_memo.cfm?seq=694&rev_num=0&mode=Extemal&reloaded=true&id=93762 1/3 ATTACHMENT NO.2 TRANSPORTATION AGREEMENT FOR THE PROVISION OF FIXED ROUTE SHUTTLE SERVICES AND DIAL -A -RIDE SERVICES FOR THE CITY OF WEST COVINA THIS AGREEMENT is entered into this 18"' day of December 2013, by and between the City of West Covina, hereinafter referred to as the "City", and, MV Transportation, Inc., hereinafter referred to as the "Contractor" or "Operator". WITNESSETH: WHEREAS, the City has determined that it requires management, operation and maintenance services for the fixed route shuttle service and dial -a -ride service to provide transportation services to the general population; and WHEREAS, City has circulated a Request for Proposals for Transit Operations Contract City of West Covina Purchasing Specifications 0413-A, dated April 18, 2013, which is attached hereto as Exhibit "A" and incorporated herein by reference; and WHEREAS, Contractor has submitted its proposal entitled Proposal To City of West Covina For Transit Operations Contract Purchasing Spec. 0413-A, dated May 23, 2013, attached hereto as Exhibit `B", and incorporated herein by reference; and WHEREAS, Contractor has submitted its offer of additional and/or alternate terms entitled Best and Final Offer — Transit Operations Contract RFP Number: 0413-A, dated August 6, 2013, attached hereto as Exhibit "C", and incorporated herein by reference; and q. WHEREAS, the Contractor has represented that it has the necessary expertise, personnel and qualifications to provide the requested service; and WHEREAS, City Council approved the execution of this Agreement at a regularly scheduled City Council Meeting on December 17"', 2013, with an effective date of March Yd, 2014; and NOW, THEREFORE, it is mutually understood and agreed as follows: ARTICLE I COMPLETE AGREEMENT, PRECEDENCE OF DOCUMENTS This Agreement and the attached fonns and documents referred to herein and incorporated herein by reference, and the Request for Proposal (Exhibit "A"), Proposal (Exhibit "B"), submitted by the Contractor dated May 23, 2013, and Best and Final Offer (Exhibit "C"), submitted by the Contractor dated August 6; 2013 constitute the complete and exclusive Agreement between the City and the Contractor (Contract Documents) and supersede all prior representations, understandings, and conununications. The invalidity in whole or in part of any provision of this Agreement shall not affect the validity of other provisions. The City's failure to insist in any instance upon the performance of any term or terms of this Agreement shall not be construed as a waiver or relinquislunent of the City's right to such performance by the Contractor. Except as otherwise allowed hereunder, any amendment shall be in writing and signed by both parties. Any conflict, omission or difference in the Contract Documents shall be subject to the following order of precedence of Contract Documents: 1. This Agreement 2. Best and Final Offer (Exhibit "C") 3. Request for Proposals (Exhibit "A"), hereinafter the "RFP" 4. Proposal (Exhibit `B") ARTICLE 2 AUTHORIZATION TO ACT The West Covina City Manager or his/her designee shall have the authority to act for and exercise any of the rights of the City as set forth in this Agreement upon the authorization therefore by the West Covina City Council. ARTICLE 3 INDEPENDENT CONTRACTOR The Contractor's relationship to the City in the performance of this Agreement is that of an independent Contractor. The personnel performing services under this Agreement shall be deemed, for all purposes, to be the Contractor's employees and not agents or employees of the City. The Contractor shall pay all wages, salaries and other amounts due its employees for services and goods rendered by said employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to worker's compensation benefits. ARTICLE 4 TERM OF THE AGREEMENT This Agreement shall commence on March 3, 2014 and shall terminate March 2, 2019, unless earlier terminated pursuant to Article I 1 below. The Agreement may be extended thereafter for up to two subsequent one-year terms upon mutual agreement of the parties without soliciting proposals and upon the agreed terns, including pricing. The parties also, upon negotiated written amendment hereto, may extend and/or modify the reimbursement rate, levels of service, types of services, change of vehicles, or any other terrns which the parties determine necessary. ARTICLE 5 STATEMENT OF SERVICES A. GENERAL The Contractor shall provide all management and operational functions necessary for the success of the fixed -route West Covina Shuttle and the demand -response Dial -a -Ride services (hereinafter the "Service" or "Services"). The Contractor shall provide the Services in the manner and to those areas identified on Exhibit "A" attached hereto and incorporated herein by this reference. In addition to those Services speck to the fixed route or dial -a -ride services, the Contractor shall: 1. Order new vehicles (as described below) to provide the Services within twenty-four (24) hours of full execution of this Agreement. Contractor will warrant that these vehicles will be available for use by March 3, 2014. 2. Contractor shall, at Contractor's expense, cause all new vehicles to have appropriate branding and markings placed thereon to designate the velucles as part of the City's transit service. City must approve the form and content of the brandings and markings prior to application. In the event that City makes modifications to its branding and required marking that require re -performance of these items, City will reimburse Contractor for actual and reasonable costs. 3. Make good -faith efforts to retain personnel employed by the existing provider of the Services, including extending offers of employment. 4. Conduct town hall meetings on an agreed schedule at reasonable frequency to educate the public, particularly senior citizens and dial -a -ride patrons on the Services, 5. Make good -faith efforts to increase efficiencies in Service, using the existing data as a baseline to work therefrom. City will provide data to Contractor after the execution of this Agreement. 6. Provide City staff with training on Passenger Complaint Tracking Software system utilized by Contractor. 7. Provide one full-time (1) project manager and two (2) full-time road supervisors dedicated to the Services under this Agreement. 8. Guarantee that Genevieve Madrid, Project Manager, and Wayne Poole, Dispatcher, will exclusively service the City's transit operations during the life of this Agreement. Neither of these individuals may be assigned to any other client of Contractor during the Term of this Agreement without the City's prior approval. Any change in the capacity or scope of services provided by Ms. Madrid or Mr. Poole must be approved by the City in writing. Notwithstanding the foregoing, if the employment of either of these individuals is terminated for any reason, Contractor shall replace said individuals with persons of equal skill and experience to carry on the duties of the departed employee. Said replacement employees shall be subject to City approval prior to, and at anyrtime thereafter, assigmnent to the replacement position(s). 9. Provide City staff training on Contractor's complaint tracking software, as well as provide City staff ongoing access to the system to monitor complaints logged therein. B. FIXED ROUTE SHUTTLE The fixed route shuttle system will provide residents of West Covina with an improved service for travel within the City for shopping, business, recreational purposes, as well as large employment providers. The fixed route shuttle system's estimated annual revenue hours is 11,650 with over 108,000 passengers served. Locations within the City include: the Citrus Valley Hospital -Queen of the Valley Campus, Eastland Shopping Center, Civic Center, Cortez Park/Senior Center, the Heights Shopping Center, etc. Speck requirements are as follows: SHUTTLE Hours of Service - The fixed route (Red and Blue Line) shuttle is approximately 17.0 service miles and will provide one (1) vehicles per line. The service will operate every thirty (30) minutes from 6:30 a.m. until 4:00 p.m. and will continue (1) vehicle per line every hour (60) minutes from 4:00 p.m. until 7:00 p.m. in a bi-directional loop (Red and Blue Line). The shuttle will operate on the following days: Monday — Friday: 6:30AM to 7:OOPM Saturday and Sunday: No Service Except the following Holidays: Presidents' Day, Ademorial Day, Independence Day, Labor Da)Thanksgiving Day and the day after Thanksgiving, Christmas Eve, Christmas Dc , Nem, Year's Day. Hours of Service — The fixed route (Green Line) shuttle is approximately 10.0 service miles and will operate two vehicles every thirty (30) minutes during the AM and PM Peak Hours and every 60 minutes during non -peak hours as shown on the attached schedules. The shuttle will operate on the following days: Monday — Friday: 6:30AM to 7:OOPM Saturday and Sunday: No Service Except the,following Holidnys: Presidents' Day, Memorial Day, Independence Dap, Labor Day, Thanksgiving Day and the day after Thanksgiving, Christmas Eve, Christmas Day, NeW Year's Day. 1. Collection of Fares - All fare(s) will be charged to each rider and the operator will be responsible for collecting all cash fares. All vehicles shall be equipped with city provided fare boxes, which provide a secure method for collecting fares. (a) The total fare amount collected by the Contractor shall be listed and deducted from the montliy billing statement to the City. (b) Fares will be posted in all vehicles. Fares may be decreased or increased after approval by the City Council and upon written notification by the City. 2. Fuel —City shall provide alternative fuel for Contractor -owned vehicles used in providing these services. City shall pay fuel costs, which shall not be reflective in Hourly Rate Charged by the operator. 3. Heating/Air Conditioning — Heating and air conditioning shall be maintained in good working order at all time in all vehicles at a level approved by the City. 4. Grab Rails — All vehicles shall have grab rails installed to assist persons who are entering and exiting the vehicle with or without the use of the wheelchair lift, and who are inside vehicle. 5. Safety Features — Every vehicle shall be equipped with a first aid kit, fire extinguishers, QRT wheelchair tie -down mechanisms, professionally installed sunshades and other safety features as required by the City. All equipment installed will meet Americans with Disabilities Act (ADA). No materials shall be installed that would obscure the driver's view or create a safety hazard. 6. Radios/Cellular Phones — All vehicles shall be equipped with a two-way radio system and/or cellular phone capable of communicating with the main base station. Operators shall utilize a hands flee system while operating vehicle. 7. Cleaning — All vehicles shall be cleaned on the inside and outside daily. Vehicle exteriors shall be washed a minimum of three (3) times a week and after ever'}, rain. Vehicle interiors shall be swept prior to each day's service. Windows shall be washed and floors mopped and vacuumed daily. Graffiti and other vandalism will be removed on a daily basis prior to start of service. 8. Telephone — The City shall provide a local (non -toll) telephone number for communication between the Contractor's dispatcher personriel, site manager and the parties served by this Agreement. The Contractor shall provide sufficient (non -toll) telephone lines to mirninnize busy signals and maximize response to persons calling for information. The period for telephone wait time will not exceed 10 minutes in length liquated darnages shall be applied, $50.00 per incident; if it exceeds 15 minutes $100.00 per incident shall be applied, and $2.00 per minute thereafter, owed to the City or deducted from monthly bill. The Contractor shall ensure that all operators are bi-lingual, speaking both Spanish and English. 9. Signs — "NO SMOKING" and "FOR YOUR SAFETY PASSENGERS MUST REMAIN SEATED UNTIL THE VEHICLE COMPLETELY STOPS" and "NO EATING, NO DRINKING, NO MUSIC" and the "OPERATORS NAME" and "OPERATORS ID NUMBER" and `BUS NUMBER" and "TELEPHONE NUMBER" to register complaints, comments and suggestions. The signs will be installed and maintained inside each vehicle in full view of all passengers. A "No Smoking" policy shall be enforced. Other signs may be requested by the City. 10. Vehicles — The operator will be required to provide four (4) thirty-two foot (32') Starcraft Allstar F550 buses, or veleles of equivalent or greater value and quality, for the daily shuttle operation. Additionally, City to provide two (2) City owned alternative fuel buses as spares. In the event that the Contractor does not wish to utilize the City owned buses, they must provide one (1) spare to be available when a regular vehicle is taken out of service. Vehicles are required to be ADA compliant, with a minimum seating capacity of 24 plus two (2) wheelchairs QRT tie -down system and ramp including lift. Seating configuration subject to joint approval of Contractor and the City. Vehicles should have two (2) position bike racks at the vehicle front; front and side roller head signs; passenger stop strips with pull cord functionality; overhead storage; display City logo and be equipped with two-way radios and/or cellular phone. Each vehicle will be equipped with the DriveCam video monitoring system. 11. Advertisement— The City will be exploring the opportunity to advertise City programs and events, as well as entrepreneurial and/or private ventures that would benefit the City. Should these endeavors result in revenue generation, all such advertisement revenues, from advertising on/in the vehicles, including any electronic, print, etc. advertising shall belong to the City. Contractor shall fully cooperate with all activities associated with advertising displays as instructed and facilitated by the City, whch shall be made at City's sole expense. 12. All vehicles and equipment shall conforur with all applicable laws, including without limitation, the Federal Motor Vehicle Safety Standards, California Vehicle Safety Standards, California Vehicle Code, and California Administrative Code, Title 13 and the California Highway Patrol Motor Carrier Safety Regulations. The Contractor is required to obtain and affix a certification to each vehicle, which certifies that each urit meets or exceeds all state and federal requirements as of the date of manufacture. C. DIAL -A -RIDE SERVICE Specific requirements are as follows: 1. Provide daily transportation to City residents - The operator will be expected to provide five (5) Starcraft Allstar twenty-five foot (25') buses, or vehicles of equivalent or greater value and quality, for the dial -a -ride service to provide trips for both same -day service, as well as, trips being scheduled one or more days in advance. One of the five Contractor provided vehicles is considered to be a spare to be available when a regular vehicle is taken out of service. These vehicles seat 16 ambulatory passengers, plus two (2) passengers using wheelchairs. Each vehicle will be equipped with the DriveCanr video monitoring system. The dial -a -ride service area encompasses the City of West Covina, and three (3) miles beyond service area for medical appointments only. Persons will be encouraged to call for service a day in advance. All trips must be requested individually which means that no standing orders should be scheduled on service. The dial -a -ride system's estimated amoral revenue hours is 7,600 with over 24,000 passenger trips. 2. Eligible users — Dial -a -ride service is primarily intended to serve the City's elderly and disabled population. 3. Hours of Service— Dial -a -ride service shall be restricted to the following hours: Monday -Friday: 8:00 a.m. -- 5:30 p.m. Saturday: No Service Sunday: 8:00 a.m: - 2:30 p.m. (West Covina Only) Except the following Holidays: Presidents' Day; Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after Thanksgiving, Christmas Eve, Christmas Day, New Year's Day. 4. Amount of Service to be Provided - Approximately 24,000 trips will be provided over a one-year period. 5. Collection of Fares - Fare(s) will be charged to each rider, excluding children and escorts, and the operator will be responsible for collecting all cash fares. (a) The total fare amount collected by the Contractor shall be deducted from the monthly billing statement to the City. (b) Fares will be posted in all vehicles. Fares may be decreased or increased after approval by the City Council and upon written notification to Contractor. 6. Fuel —City shall provide alternative Riel for Contractor -owned vehicles used in providing these services. City shall pay fuel costs, which shall not be reflective in Hourly Rate charged by the Operator. 7. Heating/Air Conditioning — Heating and air conditioning shall be maintained in good working order at all times in all vehicles at a level approved by the City. 8. Grab Rails — All vehicles shall have grab rails installed to assist persons who are entering and exiting the vehicle with or without the use of the wheelchair lift, and who are inside vehicle. 9. Safety Features — Every vehicle shall be equipped with a first aid kit, fire extinguishers, wheelchair tie -down mechanisms, professionally installed sunshades and other safety features as required by the City. All equipment installed will meet Americans with Disabilities Act (ADA). No materials shall be installed that would obscure the driver's view or create a safety hazard. 10. Fare Boxes —All vehicles shall be equipped with city provided fare boxes, which provide a secure method for collecting fares. 11. Radios/Cellular Phones — All vehicles shall be equipped with a two-way radio system and/or cellular phone capable of communicating with the main base station. Operators shall utilize a hands free system while operating vehicles. 12. Cleaning — All vehicles shall be cleaned on the inside and outside daily. Vehicle exteriors shall be washed a minimum of three (3) times a week and after every rain. Vehicle interiors shall be swept prior to each day's service. Windows shall be washed and floors mopped and vacuumed a minimurn of daily. Graffiti and other vandalism will be removed on a daily basis prior to start of service. 13. Telephone —The City shall provide a local (non -toll) telephone number for communication between the Contractor's dispatcher personnel, site manager and the parties served by this Agreement. The Contractor shall provide sufficient (non -toll) telephone lines to minimize busy signals and maximize response to persons calling for information. The period for telephone wait time will not exceed 10 minutes in length liquated damages shall be applied, $50.00 per incident; if it exceeds 15 minutes $100.00 per incident shall be applied, and $2.00 per minute thereafter, owed to the City or deducted from monthly bill. The Contractor shall ensure that all operators are bi-lingual, speaking both Spanish and English. 14. Signs — "NO SMOKING" and "FOR YOUR SAFETY PASSENGERS MUST REMAIN SEATED UNTIL THE VEHICLE COMPLETELY STOPS" and "NO EATING, NO DRINKING, NO MUSIC" and the "OPERATORS NAME and "OPERATORS ID NUMBER" and "BUS NUMBER" and a "TELEPHONE NUMBER" to register complaints, comments and suggestions. The signs will be installed and maintained inside each vehicle in full view of all passengers. A "No Smoking" policy shall be enforced. Other signs may be requested by the City. 15. Vehicles - The operator will be expected to provide five (5) twenty-five foot (25') Starcraft Allstar buses, or vehicles of equivalent or greater value and quality, for the dial -a -ride service to provide trips for both same -day service, as well as, trips being scheduled one or more days in advance. One of the five Contractor provided vehicles is considered to be a spare to be available when a regular vehicle is taken out of service. These vehicles seat sixteen (16) ambulatory passengers, plus two (2) passengers using wheelchairs. Each vehicle will be equipped with the DriveCam video monitoring system. 16. Dispatch System. Contractor shall employ an automated dispatching system at least equal in performance to the Trapeze Windows PASS system. The system shall be capable of supporting subscription services, day -ahead reservations, and real time reservations. 17. Dial -a -ride applications — The Contractor shall establish a regular schedule to pick-up Bial- a -ride applications received at the City office at least on a weekly basis and processed within (3) business days. 18. Advertisement— The City will be explorhig the opportunity to advertise City programs and events, as well as entrepreneurial and/or private ventures that would benefit the City. Should these endeavors result in revenue generation, all such advertisement revenues, from advertising on/in the vehicles, including any electronic, print, etc. advertising shall belong to the City. Contractor shall fully cooperate with all activities associated with advertising displays as instructed and facilitated by the City, which shall be made at City's sole expense. 19. All vehicles and equipment shall conform with all applicable laws, including without limitation, the Federal Motor Vehicle Safety Standards, California Vehicle Safety Standards, California Vehicle Code, and California Administrative Code, Title 13 and the California Highway Patrol Motor Carrier Safety Regulations. The Contractor is required to obtain and affix a certification to each vehicle, which certifies that each unit meets or exceeds all state and federal requirements as of the date of manufacture. The Contractor shall participate in and comply with the DMV Pull Notice Program. The Contractor shall pay for all applicable license fees for drivers, other personnel and vehicles. D. INSPECTION 1. The City reserves the right to inspect, examine and test, or cause such inspection, examination or testing of any dedicated vehicle and/or its equipment at any time to assure the compliance with all applicable laws and this Agreement. The Contractor shall transport any vehicle providing Services under this Agreement to a City -designated inspection facility at the Contractor's expense upon the City's request. Each vehicle, at nninimum, must be inspected amorally by the CHP (California Highway Patrol) and/or by any other agency at the frequencies required by State law. The City may also inspect the vehicles. The City shall be notified of inspections performed by a governmental agency other than the City, which meet or exceed the criteria for inspection established by the City. The results of those inspections shall be transmitted to the City. 2. Upon request by the City or any regulatory agency, the Contractor shall inunediately remove from service, and replace or repair any equipment or vehicle, which is deemed inadequate or defective as a result of mechanical failure or non-compliance of the Vehicle Specifications. This agreement does not provide for the lease of vehicles by City from Contractor. Contractor shall be solely responsible for procuring by purchase, lease, rental or other means, sufficient vehicles to perform the provisions of this Agreement. City shall provide two (2) City owned alterative fuel buses as back-ups for fixed route services. SERVICE ADJUSTMENTS The City reserves the right to adjust service at any time. Modifications to services may include, but are not limited to, extending, deleting, or adding routes, or parts of routes, and expanding or decreasing revenue hours. In the event actual annual revenue hours fall below eighty percent (80%) or exceed one hundred twenty percent (120%) of the total projected annual revenue hours, the parties agree to meet promptly to negotiate a revised unit cost per revenue hour with the Contractor. G. OFFICES The Contractor shall provide an office open to the public at least five days per week, four hours per day between the hours of 9 am and 6 pm. This office may be located at 11747 Valley Blvd., El Monte, CA, or an alternate location that is equal in distance, or closer, to West Covina City Hall. Contractor shall use City Yard as the origin and termination point for all billable Services under this Agreement, and not the offices described in this section. H. DOCUMENTS PROVIDED BY THE CONTRACTOR The Contractor shall provide the City with the following documents throughout the term of this Agreement: 1. Written vehicle inspection check lists in the form set out by the City; 2. Wheelchair lift certificates; 3. Driver and dispatcher training manuals, as requested; 4. Certificates of insurance as required by Article 7; 5. Monthly performance reports as required by the City; 6. Unusual occurrence and all accident and injury reports, which shall be submitted within twenty-four (24) hours of the occurrence, including but not limited to, any "unsatisfactory" rating in a California Highway Patrol inspection program; 7. All data reports/inforiation required by the RFP; and 8. Any additional information as may be required by other govennnnent agencies. PERSONNEL 1. Contractor's Personnel The Contractor shall be solely responsible for the satisfactory work performance of all employees as described by the RFP or any reasonable performance standard established 10 11/16/2020 Print Staff Report Pricing in the agreement and in subsequent amendments is based on contracted operating hours and hourly rates for each of the services, reflecting the total cost burden. Because the renewal of the agreement occurs between fiscal years, past practice has been to amend the budget to account for the increased obligation and full cost burden of the agreement. The City is only invoiced for actual usage. Unexpended funds are returned to the fund balance and reprogrammed for other eligible activities. The proposal from MVT for the second annual optional extension of the agreement resulted in a total increase of $35,476. The February 18, 2020 agenda report included an amendment to the FY 2019-2020 budget for $11,825 for the pro -rated portion of the increased cost. Less than anticipated participation, particularly in the DAR service, has resulted in less than planned expenditures. As a result, the portion of the increase planned in FY 2019-2020 can be absorbed by the existing budget. The FY 2020-2021 can be included in the City's proposed budget. In regard to a status quo budget, service impact and flexibility would be driven by participation. For example, if the services were at full capacity for operating hours, based on pro -ration, status quo would result in a reduction of 345 hours and 245 hours of service in the shuttle and DAR programs, respectively. Because DAR participation is less than planned, the increase in hourly rates may be sustained by status quo budget, if participation remains lower than planned or declines, though contrary to the goal of increasing ridership. Ridership Nationally, public transit ridership has been in decline. The same phenomena is occurring in West Covina. In a January 2018 report prepared for the Southern California Association of Government by the UCLA Institute of Transportation Studies, "Falling Transit Ridership: California and Southern California, contributing factors were considered. While the increased use of services such as Uber and Lyft are cited as factors, the report points to surging vehicle ownership as largely responsible for the decline in transit use. Additionally, the report states the increase in "vehicle ownership has occurred disproportionately among populations that are more likely to take transit." An improved economy and lower gas prices are also factors. Marketing Staff will work with MVT to increase ridership through promotion of the service. The agreement states that the City shall be responsible for public relations. The transit services are promoted in each issue of the Discover West Covina, as well as a dedicated page on the City website. Staff will improve marketing efforts to increase ridership, through the City's social media channels, PowerPoint rotation at City Council meetings. Another idea to raise awareness of public transit, is the presentation of a proclamation to commemorate a day, for example, the annual "National Dump the Pump Day," which is sponsored by the American Public Transportation Association. The purpose is to encourage people to park cars for the day and ride public transportation. Consideration may be given to offering free shuttle and DAR rides for the day or week in conjunction with the day. The agreement also states that the contractor shall participate in the City's special events, as requested by the City. MVT is very much willing to have a presence at events to promote the transit service. Staff has requested that MVT attend the upcoming Arbor Day/Earth Day event, as well as the Summer Concert Series Outreach, especially to the senior population will be important for increasing ridership, MVT conducted an outreach and informational event this past Wednesday, February 26 at Senior Center. Staff will work with MVT to identify other opportunities, such as school districts, for outreach to different populations, such as the youth. OPTIONS: The City Council has the following options: 1. Approve staff's recommendation; 2. Approve an extension of the contract with no budget increase and direct staff to work with MVT Transit to reduce its operating hours to stay within status quo cost; https://destinyhosted.com/print_ag_memo.cfm?seq=694&rev_num=0&mode=Extemal&reloaded=true&id=93762 2/3 by the City. The Contractor shall be solely responsible for payment of all employees' wages and benefits and subcontractors' costs. Without any additional expense to the City, the Contractor shall comply with the requirements of employee liability, worker's compensation, employment insurance and Social Security. The Contractor shall hold the City harmless from any liability, damages, claims, costs and expenses of any nature arising from alleged violations of persomel practices. The City shall have the right to demand removal from the program, for reasonable cause, of any personel furnished by the Contractor. The City must be notified promptly of new hires or reassigmnents of program personnel. Contractor shall include resumes and references of personnel assigned to West Covina program who will play critical roles in the provision of service. A responsible (Program Manager) senior level employee of the Contractor must be available at all times, either by telephone or in person, to make decisions or provide coordination as necessary. The Project Manager and Route Supervisor shall not regularly perform the duties as a driver or back up driver at any time during this contract. The Project Manager and Route Supervisor may on occasion help fill in where needed on unexpected emergency events such as illnesses or absences until a cover driver has arrived to assume the duties of the regularly scheduled driver which should not exceed 3 hours. In addition, when such an emergency occurs, the City shall be immediately notified and infornied of when the cover driver is expected to arrive and also when he or she has arrived and the Project Manager and Route Supervisor have returned to their regular duties. 2. Vehicle Operators Vehicle operators shall work on a schedule that will ensure a consistent and overall high quality of service. The Contractor shall require all vehicle operators providing services under this Agreement to provide consent for, and submit to, Live Scan fingerprinting. The City will conduct Live Scan fingerprinting at the City of West Covina Police Department, and bear all costs associated with this requirement. The City shall have the authority to deny an operator from providing services under this Agreement based on the results of said Live Scan report(s). Vehicle operators shall pass a thorough background investigation, which shall verify the operators' qualifications, including proof they possess at least a valid California Class 11 or Class B (with appropriate endorsements) Driver's License and Medical Examination Certificate, and CPR Certification, as well as, any other licenses required by applicable federal, state and local regulations. All vehicle operators must meet the minimum standards listed below: a. Not having been convicted of driving while intoxicated or under tine influence of controlled substances within the preceding five years, or not have criminal charges pending for an offense for driving while intoxicated or under the influence of controlled substances. b. Not be addicted to the use of alcohol or controlled substances. I] c. Not be subject to outstanding warrants for arrest. d. Able to read, write and speak English. Bilingual skills in Spanish or other languages are highly desirable. e. Thorough knowledge of the service area street network. f. Sensitive to passengers' needs, including assisting passengers, upon their request. g. Able to handle complaints and problems as required. Vehicle operators must be trained in all operational procedures relating to the system. Training must include teelmiques for dealing with the public in a helpful and courteous manner, basic information about the route and the City of West Covina, and sensitivity and empathy training directed towards the needs of elderly and disabled passengers, in compliance with the Americans with Disabilities Act. Contractor shall describe how it will maintain an ongoing employee safety and training program. Vehicle operators shall be trained to operate all types of vehicles, wheelchair lifts, ramps, and securing all systems, as well as, other equipment, which they may be expected to use in the dial -a -ride and/or fixed -route services. This requirement pertains to all vehicle operators, both regularly assigned and relief vehicle operators. While performing their duties on the route, vehicle operators must maintain a clean and neat appearance and must be in a uniform acceptable to the City. Uniform shall include both shirt/blouse and slacks. Operators shall wear narnetags with an identification number dedicated to that sole driver, clearly displaying their names while performing their duties. While jackets and hats are not required, they should, if worn, match the uniform, and jackets should display the drivers' name tag and id number. The Contractor shall conduct pre -employment DMV (Department of Motor Vehicles) checks of all personnel hired for service and shall join the California DMV Pull Notice Program, whereby the Contractor shall be notified of any activity on a vehicle operator's driving record. Any operator exceeding the California DMV point system or with a revoked or suspended license will not be allowed to operate the City's service. Contractor shall notify the City of the results of these checks and whatever corrective actions taken, if any. Any voluntary drug testing and/or surveillance efforts on the part of the Contractor shall be described in the proposal mid explained to vehicle operators. The Contractor shall have capable and courteous personnel who are responsible for taking dial -a -ride requests and responding to telephone inquiries regarding transportation services. Bilingual (Spanish) or other languages dispatchers are highly desirable. 12 3. Maintenance Staff The Contractor shall supply a sufficient number of properly qualified personnel to maintain and service all Contractor -provided equipment to provide services at the level agreed to herein. The Contractor shall ensure all mechanics are properly trained in the operation and maintenance of the vehicles and equipment specified in the scope of the program. The Contractor shall provide mechanics with ongoing training in order to keep abreast of new maintenance techniques and equipment. The total number of annual training hours required for each mechanic shall be specified in the proposal. I GENERAL VEHICLE EQUIPMENT The Contractor shall provide the appropriate number of vehicles with the available capacity to meet the needs of the City. All vehicles must satisfy ADA requirements. If Contractor wishes to provide different vehicles, they shall describe the proposed fleet in detail, showing how the fleet meets ADA requirements and the service needs of the City. All vehicles, and vehicle equipment required by this RFP shall be maintained by the Contractor in good repair and in a condition satisfactory to the City. The Contractor shall assume all responsibility for the proper maintenance of the vehicles. It shall be the expressed responsibility of the Contractor to assume all coordination with the original manufacturer of the vehicles if necessary to keep the vehicles in safe and good operating condition. This shall include negotiating and processing all vehicle warranty claims through the manufacturer's own warranty department, and is responsible for collection of any monies, extended warranties, or credits as a result, for the length of time the warranty is in effect. The extent of the proposed preventive maintenance program shall be an important consideration in the selection of the Contractor, Each vehicle must receive a daily pre -trip inspection by the operator prior to being placed in service. Daily pre -trip inspections must be supplemented by regular time and mileage maintenance inspections to ensure safe and proper operating condition of vehicles. A record of all such inspections shall be kept by Contractor and made available to the City. Preventive maintenance inspections must be performed in accordance with manufacturer reconniendations but shall not exceed every three thousand (3,000) miles for an "A" inspection. A "B" inspection shall be performed at every six thousand (6,000) miles and a "C" inspection shall be performed every eighteen thousand (18,000) miles and a "D" inspection at every thirty-six thousand (36,000) miles. The Contractor shall be responsible for correcting all deficiencies found during these inspections. Preventive maintenance inspections and servicing shall occur not less than every three thousand (3,000) miles. The Contractor shall specify the preventive maintenance program for all vehicles used in this service. 13 A mechanic/certified driver must inspect each vehicle after it completes its daily service to ensure all lights are functioning, all seating is secure and that all tires, wheels, lugs, air brake systems, wheelchair lifts and exit doors are in proper operatirig condition. Prior to beginning operations, the Contractor will be required to provide painting and current City of West Covina logo and design for each vehicle utilized in the fleet. The City of West Covina will provide the paint color -scheme and logo design for each of the services. K. VEHICLE FACILITIES The Contractor, with the cooperation of the City, shall provide and maintain appropriate velcle storage facilities at an appropriate facility(ies) provided by the Contractor. The facility(ies) shall be located within reasonable proximity of the City's yard, specifically at 11747 Valley Blvd., El Monte; CA, or an alternate location that is equal in distance, or closer, to West Covina City Yard. Contractor shall use City Yard as the origin and termination point for all billable Services under this Agreement, Contractor may use facility outside of the City limits only if travel time is not included in billable service hours. The Contractor shall indicate what actions will betaken to perform services in those site(s) prior to the start of service. .Contractor will have access to the City Yard at 825 South Sunset Avenue to wash vehicles and fuel vehicles. Contractor shall be responsible for the conduct of all Contractor employees while those employees are present in the City Yard. 2. At all times, the Contractor shall maintain all components of each vehicle including its body, frame, wheelchair lift, furnishing, mechanical, electrical, hydraulic or other operating systems in proper working condition free fiom damage and malfunction. The Contractor shall replace and repair immediately any vehicle damaged in any accident or otherwise damaged which impairs the proper and safe mechanical operation of the vehicle. 3. Recognizing that the safety of the passengers is paramount, the Contractor's maintenance staff shall not: a. Install mismatched tires; b. Perform partial brake relines without determining the cause of abnormal or premature wear; c. Allow tires to wear more than 3/32 tread depth; d. Replace a dead battery without testing charging system to ensure the battery will not go dead due to system malfunction; 14 e. Pail to ensure on a daily basis that each vehicle is in proper condition to pass all scheduled and unscheduled inspections; and f. Allow any reported wear item to go unrepaired that would not hold up until the next scheduled inspection. The emphasis must be on preventing breakdowns. 4. The Contractor, at its sole cost and expense, shall maintain stores of and provide lubricants, repairs, parts and supplies required for the maintenance and operation of all vehicles utilized in providing services. 5. The Contractor shall maintain an individual file for each revenue vehicle to include date of action and all preventive maintenance functions including warranty work and any other pertinent maintenance data, including but not limited to fuel, lubricants and other fluid use. 6. The Contractor shall dispatch a spare vehicle in the event of a vehicle breakdown. The maximum allowable response time, from the moment a trouble call is received until a substitute vehicle arrives will be established by the City. 7. The Contractor shall obtain and maintain a two-way radio communications system, or cellular phone with adequate and demonstrated cellular reception coverage in the service areas subject to this Agreement, for both the fixed -route and dial -a -ride vehicles that will allow for the timely and efficient dispatching, coordinating and responding to service calls. The system may be of the Contractor's choice.. Operators shall utilize a hands free system while operating vehicle. The radio or cellular communication system must cover the routes of service, storage and maintenance facilities and the dispatch location without dead spots. Each revenue service vehicle, as well as, each administrative vehicle shall have the communication system operational. 9. The Contractor shall ensure that the requirements and procedures for towing buses are followed and the proper towing equipment is used. Towing may be subcontracted; however, it is the Contractor's responsibility to supervise the subcontractor. The Contractor shall notify the City of all accidents, both by telephone (within four hours) and in writing (by the close of the next business day). L. OPERATIONAL EMERGENCIES The Contractor shall be responsible for the enforcement of policies with regard to operational emergencies. The City may revise or establish additional policies. The Contractor shall be responsible for the handling and resolution of all operational emergencies and contingencies including, but not limited to, the following: 15 1. Hazardous Conditions Vehicle operators shall report all hazardous road conditions (i.e., downed trees, missing bus signs, graffiti on bus benches, malfunctioning signals, etc.) in the City to the Contractor's supervisor. Contractor, in turn, shall immediately notify the City of such conditions and shall take necessary precautions to safeguard passengers and persomiel. 2. In -Service Vehicle Failures The Contractor shall require the vehicle operators to report any in-service vehicle failure to the Contractor's supervisor. The supervisor will attempt to ascertain the problem, use good judgment, and instruct the vehicle operator to take appropriate corrective action. If necessary, the supervisor will immediately send a spare vehicle to the location and the operator and passengers will change vehicle and continue in service. The Contractor, if necessary, shall send a mechanic to the location in order to take corrective measures and/or supervise the touring of the vehicle. The Contractor shall report any in-service vehicle failures to the City immmediately and not later than the start of the next service day. 3. Wheelchair Lift Failure The Contractor shall be responsible for the proper operation and maintenance of all wheelchair lifts. The Contractor shall require vehicle operators to report all in-service lift failures to the Contractor's supervisor. If the lift fails while attempting to board a wheelchair passenger, the supervisor shall promptly arrange for alternate transportation for the passenger in the wheelchair inconvenienced by the lift breakdown. If the lift fails while attempting discharge of a wheelchair passenger, the operator shall manually operate the lift and notify the supervisor. The supervisor shall arrange a vehicle change as quickly as reasonably possible following any lift failure. The Contractor shall report all in-service lift failures to the City no later than the start of the next service day. 4. Passenger Disturbances The Contractor shall instruct vehicle operators to report nonpayment of fares; graffiti or other vandalism on the vehicles; pushing, shoving and other disturbing or dangerous conduct; and other serious passenger disturbances to the vehicle operator's supervisor. The supervisor shall use good judgment in handling the passenger disturbance by appraising the situation, issuing appropriate instructions to the operator and request law enforcement assistance if necessary. 5. Medical Assistance to Passengers The Contractor's employees shall use good judgment in responding to passenger accidents, injuries, or illnesses occurring on the vehicles. In the event of a passenger requiring medical assistance, the vehicle operator shall immediately advise the Contractor's supervisor by radio of the situation and location of the vehicle, and the 16 supervisor shall notify the City of West Covina's Fire Departrnent/Paramedies for assistance. An incident report shall be completed documenting the incident with a copy to the City no later than the start of the next service day. 6. Accidents The Contractor shall require all vehicle operators to report any accident or incident involving the vehicle to the Contractor's supervisor. The supervisor shall use good judgment in handling the situation, and shall inunediately notify police or fire department if necessary. The supervisor shall report all accidents to City by telephone immediately. Both the operator and supervisor will complete an accident report approved by City with copy to the City no later than the start of the next service day. The Contractor shall submit all accident -related reports to the DMV as required. M. SPECIAL SERVICES Special services, beyond those set forth in Contract Documents, will be provided by Contractor upon request by City's authorized employees as follows: 1. When additional services fall entirely within normal service hours and City directs that normal operating personnel should be used to provide the additional service, such as part of the regular cost defined in Exhibit `B" and are not considered "extra services" City recognizes that an equivalent lower level of service, will be provided in normal operations during the period of such additional services. 2. The Contractor from time to time will be required to provide special event -related services. Special event service may vary from year to year and shall be billed at no more than the fixed -route revenue hour rate. ARTICLE 6 INDEMNITY The Contractor does hereby indemnify and hold the City and the Los Angeles County Metropolitan Transportation Authority (herein referred to as "LACMTA"), their appointed and elected officials, agents and employees free and harmless from any and all actions, suits, claims, damages to persons or property, loses, costs, penalties, obligations, errors, negligence, omissions or liabilities including but not limited to attorney's fees (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of the activities of the Contractor or its officers, agents, or employees in connection with this Agreement (including use or servicing of vehicles) or arising from the Contractor's acts, negligence or omissions hereunder or its failure to perform any tern, provision, covenant or condition of this Agreement, and in connection therewith. 17 1. The Contractor shall defend any action or actions filed in connection with any of the said claims or liabilities and shall pay all reasonable costs and expenses, including legal costs and attorneys' fees incurred in connection therewith; 2. The Contractor shall promptly pay any final judgment rendered against the City and the LACMTA, its officers, agents or employees for any such claims or liabilities arising directly out of or in connection with the activities of the Contractor hereunder; and 3. The Indemnity set forth in this Article 6 shall not apply in the case of claims arising from acts of third parties or the City. The provisions of Article 7 of this Agreement shall not be deemed to satisfy the indemnity obligations of the Contractor pursuant to this Article 6. ARTICLE 7 - INSURANCE LIABILITY INSURANCE With respect to performance of work under this Agreement, Contractor shall maintain, and shall require all of its Subcontractors maintain; during the life of this Agreement, insurance as described below. All insurance policies shall be issued by an admitted insurer or insurers as defined by the California Insurance Code or an authorized surplus liens carrier listed in the State of California Department of Insurance "Leslie List". Said carrier(s) shall have a Best's rating of no less than "A-". The insurance shall be satisfactory to the City Attorney and shall be evidenced by delivery to the City Clerks office of a certificate of insurance executed by the insurers listing coverage and limits, expiration dates slid terns of policies, all endorsements whether or not required by the City, and a certified copy of each policy, including all endorsements. Without limiting Contractor's liability pursuant to the hold harmless and indemnity provisions of the contract, Contractor shall maintain, at a minimum, the insurance listed below: A. Worker's Compensation Insurance 1. The Contractor shall maintain Workers' Compensation Insurance with statutory limits and Employers Liability Insurance with limits of not less than $1,000,000 per incident. Such insurance shall comply with all applicable state laws. 2. Contractor shall provide the City with a Certificate of Insurance shoving proof of insurance acceptable to City. Certificates containing wording that release the insurance company from liability for non -notification of cancellation of the insurance policy is not acceptable. 3. An endorsement stating the City shall receive at least thirty (30) days notice prior to cancellation or non -renewal of coverage. 4. Policy(s) are to be endorsed to include a waiver of subrogation against the City, its officers, officials, agents and employees. Contractor and its employees are independent Contractors and not employees of the City. Contractor and/or its insurers are responsible 18 for payment of any liability arising out of Workers' Compensation, unemployment or employee benefits offered to its employees. 5. City shall not be responsible for any increases in Workers' Compensation costs incurred by Contractor in any future scenario. 6. The insuring provisions, insofar as they may be judged to be against public policy, shall be void and unenforceable only to the minimum extent necessary so that the rernaining terms of the insuring provisions herein may be withdn public policy and enforceable. B. Liability Insurance 1. Commercial General Liability and Property Damage: The Contractor shall maintain insurance for protection against all claims arising from injury to person or persons not in the employ of the Contractor and against all claims resulting from damage to any property due to any act or onussion of the Contractor, his agents, or employees in the operation of the work or the execution of this contract. Such insurance shall include products/completed operations liability, owner's and Contractor's protective, blanket contractual liability, personal injury liability, and broad form property damage coverage. City shall not be responsible for any increases in insurance costs incurred by Contractor in any future scenario. The minimum shall be as follows: • Bodily Injury (Injury or Accidental Death) and Property Damage (per occurrence) $5,000,000 Combined Single Limit. 2. Commercial Automobile Public Liability and PropeM, Damage: The Contractor shall maintain Automobile Public Liability and Property Damage Insurance for protection against all claims arising from the use of vehicles, owned, lured and non -owned, or any other vehicle in the completion of the work included in this contract. Such insurance shall cover the use of automobiles and tucks on and off the site of the project. City shall not be responsible for any increases in insurance costs incurred by Contractor in any future scenario. The minimum amounts of Automobile Public Liability and Property Damage Insurance shall be as follows: • Bodily Injury (Injury or Accidental Death) and Property Damage (per Occurrence) $5,000,000 Combined Single Limit. 3. Additional Insured. The General Liability and Auto Liability policy(s) are to contain, or be endorsed to name the City and LACMTA, its officers, appointed and elected officials, agents, and employees as Additional Insured as respects the liability arising out of the activities performed in connection with this Agreement. The coverage shall (a) be primary with respect to any insurance or self-insurance programs maintained by the City, (b) shall apply separately to each insured against whom claim is made or suit is brought, except with respect: to the limits of the insurer's liability; and (c) contain Standard Cross -Liability provisions. Such additional insured endorsements maintained by the Contractor and its Subcontractors shall not be required to provide coverage to the 19 City for the active negligence of its members. Original endorsements, signed by a person authorized to bind coverage on its behalf, shall be furnished to the City by the Contractor Deductibles and Self -insured Retention. Any deductibles or self -insured retention must be declared to, and approved by, the City. Contractor shall declare the deductible chosen and state as part of its Proposal. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self -insured retention as respects the City, its officials, employees, agents, and Contractor's; or the bidder shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses in an amount specified by the City. C. Certificates of Insurance 1. Contractor shall furnish properly executed Certificates of Insurance with original policy endorsements to City prior to commencement of work under this agreement. The certificates and endorsements shall clearly evidence all coverage requirements described herein. The Certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. 2. All certificates and endorsements are to be reviewed and approved by the City Attorney before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 3. Separate endorsements are required, naming the City and the LACMTA as additional insureds, for liability insurance and providing a waiver of subrogation for Workers' Compensation Insurance. 4. Contractor shall maintain all insurance policies for the life of the Agreement, including all subsequent renewals. Said insurance shall contain a provision that coverage afforded under the policies will not be canceled unless and until thirty (30) days prior written notice has been given to the City. 5. All insurance required by this Agreement shall be maintained by Contractor in full force and effect for the entire term of this Agreement. If Contractor, for any reason, fails to maintain insurance coverage, wbich is required pursuant to this agreement, the same shall be deemed a material breach of contract. City, at its sole option, may forthwith terminate this agreement. 20 11/16/2020 Print Staff Report 3. Direct staff to conduct a Request for Proposals (RFP). This is not recommended as the current service is excellent and it would be expected that rates would be much greater than the proposed increase; or 4. Provide alternative direction. Prepared by: Kelly McDonald, Public Services Manager Fiscal Impact FISCAL IMPACT: The proposed rates result in a total cumulative increase of $35,476 from March 3, 2020 through March 2, 2021. Transit services are funded from the Public Services Transportation Operating Budget (Proposition C and Measure R). The fixed route budget is included in Account Nos. 122.61.5142.6120, 122.61.5148.6120, and 224.61.5142.6120 and dial -a -ride services in Account Nos. 122.61.5143.6120 and 224.61.5142.6120. The balance of the current budget is sufficient to absorb increased costs for the remainder of Fiscal Year 2019- 2020. The increases occurring in Fiscal Year 2020-2021 remainder of the agreement tern will be incorporated into the budget, accordingly. There is no impact to the General Fund. Attachments Attachment No. 1 - Agenda Report February 18 2020 CITY Enhance the City Image and Effectiveness COUNCIL Respond to the Global COVID-19 Pandemic GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.cfm?seq=694&rev_num=0&mode=Extemal&reloaded=true&id=93762 3/3 6. Original insurance certificates and endorsements are to be delivered to: Mr. Scott Smilowitz Community Services Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91790 ARTICLE 8 LICENSES, FEES, TAXES AND PERMITS The Contractor shall have the sole obligation to pay whatever license fees, assessments and taxes, including, but not lhrrited to use, sales, property or other taxes on any real or personal property, owned, leased or used by it in providing the Services hereunder, plus any applicable penalties and interest imposed upon the Contractor by any agency as a result of the operation of the Services pursuant to this Agreement. Contractor shall maintain a current business license with the City during the term of this Agreement and any subsequent renewals. ARTICLE 9 COMPENSATION TO THE CONTRACTOR The City shall be responsible for and shall pay to the Contractor for the Services the amounts due pursuant to the Schedule set forth in Exhibit `B" attached hereto and incorporated herein by this reference. Contractor shall only bill for from first pick-up to last drop-off. No "dead -head" (transportation of an employee who is not operating the vehicle to a location along the path of the vehicle's route, including some deviation, for the employee's or employer's benefit) time shall be billed to City. Individual invoices shall be sent in triplicate to the City within ten (10) days after the end of each month. Billings not received within such time period are subject to a late billing penalty of 2% at the sole discretion of the City. The City shall pay the Contractor monthly after the service has been provided and within a reasonable time after receipt of the invoice, consistent with the City's normal accounts payable practices and procedures. At City's sole discretion, City may elect to exercise the "progress payments" option offered to City by Contractor as defined by the Proposal. City may, but is not required to, exercise the "progress payments" option immediately upon commencement of Services, and may elect to exercise the option at any time during this Agreement and/or subsequent renewals. Should City elect to use the "progress payments" compensation model, City may cease utilizing the option and re -commence the program at any time after the completion of the preceding billing cycle. All operating revenues collected by Contractor in connection with the services rendered under this Agreement are the property of City. Operating revenues include all fares, sales of tickets and passes, advertising sales, and rental of equipment. Operating revenues shall be collected and accomited for by Contractor, and shall be deducted fi•om the monthly invoices. ARTICLE 10 PERFORMANCE STANDARDS, LIQUIDATED DAMAGES AND PENALTIES A. Operating Performance Standards The Contractor shall operate vehicles with due regard for the safety, comfort and convenience of passengers and the general public. The City will set performance standards for its services. The Contractor and the City shall meet periodically to evaluate performance of the system based upon these standards. If the standards are not fulfilling their intended purpose, they will be adjusted based upon recommendations made by Contractor with the concurrence and final decision by the City. Should it be found that the Contractor's performance has contributed to Contractor's failure to achieve these standards, Contractor shall take all reasonable actions requested by the City to correct deficiencies in performance. Should deficiencies persist, the City may assess liquidated damages or penalties. Sums owed to the City as liquidated damages or otherwise may be paid directly to the City or at the sole option of the City, deducted from payments otherwise due to the Contractor. The City Manager, or his/her designee, shall maintain the right to assess liquidated damages or penalties against the Contractor, as set forth herein, based on the Contractor's failure to meet the established standards. Circumstances beyond the control of the Contractor, causing the Contractor to fail to comply with the stated performance requirement, will be considered as just cause on the part of the City not to assess liquidated damages or penalties against the Contractor. Service should be provided as scheduled or according to any adjusted schedule established by the City, including route modifications required as a result of special events or a declared emergency. The Contractor shall not be held responsible for the failure to provide on time service due to weather or traffic conditions and/or naturally occurring disasters. Notwithstanding the above caveat, the City may impose liquidated damages or penalties on the following basis: 1. Customer service is very important in building ridership and support for this service. Therefore, the fourth (and any additional) justified complaint about each service in any 7-day period shall result in the Contractor paying a penalty $100 per substantiated complaint. 2. The Contractor shall maintain satisfactory California Highway Patrol (CHP) terminal inspection throughout the life of the contract (proof of CHP certification is required). If the Contractor receives an unsatisfactory rating from the CHP, the Contractor shall notify the City immnediately and state what is being done to correct the deficiency. If the vehicle operating authority falls iuider the California Public Utilities Conunission (PUC) and if the PUC revokes the permits to operate the vehicles in this service as a 22 result of unsatisfactory inspection ratings by the CHP, the vehicles shall not operate and a $500 per vehicle per day fine shall be assessed until a satisfactory inspection report is obtained and the vehicle is again available for service. 3. The City reserves the right, at its sole discretion, to inspect and reject temporarily or permanently by notice to the Contractor, any vehicle the Contractor utilizes which the City deems unacceptable. In the event any revenue vehicle is rejected temporarily by the City as a result of deficient vehicle condition or appearance, $500.per vehicle per day shall be assessed until the condition is corrected. In the event any revenue vehicle is rejected permanently by the City as a result of the vehicle's conditions, Contractor shall replace the vehicle and will be assessed $500 per vehicle per day until the vehicle is replaced with one that is acceptable to the City. 4. If any regulatory agency or funding source penalizes the City for late, incomplete or inaccurate data which was the Contractor's responsibility to collect and/or provide to the City, the liquidated damages shall be the amount of the penalty and any administrative costs incurred by the City. 5. In the event the Contractor fails to commence service on March 3. 2014, (or a later date with approval of City) or if Contractor fails to provide service for any substantial part of any day, the Contractor shall pay the City liquidated damages of $1,000 for each service day. DIAL -A -RIDE PENALTIES: 1. If the wait time of any dial -a -ride trip has been verified to exceed 60 minutes, the liquidated damages shall be $60.00 per incident plus $1.00 for every minute thereafter; and $120.00 for the first 120 minutes for dial -a -ride plus $1 for every minute thereafter. 2. If the wait time of a pre -scheduled trip has been verified to exceed 30 minutes, the liquidated damages shall be $50.00 per incident; if it exceeds 45 minutes, the liquidated damages shall be $75 per incident; and, if it exceeds 60 minutes, the liquidated damages shall be $100 per incident. 3. If a trip request has been verified to be lost by dispatch, and no vehicle was dispatched, the liquidated damages shall be $100.00 per incident. FIXED -ROUTE PENALTIES: 1. If the successful performance rate of the total wheelchair lift boardings falls below 90%, the liquidated damages shall be $100 per month. The percentage shall be. calculated based on monthly actual usage of the lifts by passengers, and regular inspections by City staff; 23 2. Adherence to Schedule: The following liquidated damages shall be imposed if, within any 30-day period, any of the following incidents occur after the occurrence of two substantiated incidents during the same thinly day period; (1) If a trip on the fixed -route system departs in advance of the scheduled departure time at any designated time point, the liquidated damages shall be $100 for every 10 minute increments; and (2) If a trip on the fixed -route system is delayed for more than 10 minutes following the time set forth for departure at any designated time point, the liquidated damages shall be $100 per 10 minute increments. Exceptions will be granted if the trip had more than two wheelchair boardings or deboardings. If a trip on the fixed -route system is not provided, the liquidated damages shall be $500 per occurrence. The Contractor must have sufficient telephone lines to handle the additional calls from West Covina residents. The Contractor shall provide a Customer Service telephone line which shall be a local (non -toll free) call from anywhere within the City of West Covina, to provide route infornation and take dial -a -ride requests. One TDD phone must also be provided for persons with hearing impairments. All personnel should be trained to respond accurately and professionally. All comments and complaints shall be received by the City and referred to the Contractor who shall respond the next working day with a description of any follow-up action taken or anticipated. The Contractor must have a facsimile machine compatible with the City's. An answering machine may be used to provide infonnaton outside of service hours. Voicemail greetings/recorded information must be available also in Spanish. B. Personnel Performance Standards Regularly assigned drivers or a trained back-up must be available and on -time to ensure consistent and reliable service. All personnel are responsible for knowledge of the service system design, the City of West Covina, and route destinations. Project personnel must maintain a courteous attitude, answering to the best of their ability any passenger questions regarding the provision of service. Personnel must also report all passenger -complaints, as well as, operational and maintenance problems promptly to the Project Manager who shall forward the information to the City. C. Fare Collection and Accountability The City will determine the cash fare for the fixed route and dial -a -ride service. The City reserves the right to change the fare or to issue passes, discount coupons or tickets to be used in lieu of cash fares. The Contractor shall ensure that all drivers are aware of and adhere to the fare structure. All fares collected by the operators must be turned in each day to the Project Manager. This revenue is to be counted, rolled and deposited each day. The Contractor will establish 24 reconciliation procedures to safeguard any cash, tickets and coupons collected and will ensure that they are accounted for accurately. The Contractor will provide the City with an invoice and the City shall reimburse for actual services provided on a monthly basis. Only the City may decide whether or not to allow advertising on the vehicles. If advertising is allowed, any revenue from advertising on or in the vehicles will belong to the City. D. Program Operational Records and Responsibilities Records and reports should be consistent with all (Section 15) NTD reporting requirements, as well as, all other reporting required by MTA. In addition, the City of 'West Covina may be required to provide statistical inforniation in order to comply with other grant and legislative requirements. The City will use the information requested in this section to monitor and evaluate the productivity of the service. Information must be submitted to the City according to the reporting schedule to be established by the City. All reports shall be submitted to the City in a format approved by the City. The Program Manager will prepare and submit to the City, with appropriate back-up, no later than the, sixth working day of each month, a summary report of operations and activity for each type of transit service, which will include at least: 1. Daily totals of passenger counts, revenue hours, total hours, revenue miles, total miles, farebox revenue, passenger types any other operating data collected, -documenting any discrepancies in the reported number of passengers carried and the amount of fares collected by the operator. 2. Passenger pick-up and drop-off times, and locations for the dial -a -ride service. 3. Operational problems, accidents, incidents and passenger complaints, and any actions taken regarding these events. All passenger complaints shall be reported by phone to the City immediately upon Contractor's receipt of complaint. Contractor must respond and begin investigation of complaint innnediately. City shall be informed as to the time needed for resolution of complaint. Resolution of customer complaint must be submitted to the City immediately upon completion and no later than three business days. 4. Results of documentation may indicate the need for changes in the level of service or in operational or routing modifications. The provider shall cooperate with the City to improve the transportation operation and maintain flexibility so that service modifications may be implemented quickly. 5. If the Contractor does not provide required data, reporting, statistics and monthly billing invoices for any or all services that is demanded by the City and the Los Angeles County Metropolitan Transportation Authority (MTA) and the Authority within five (5) business days, liquidated damages of $500.00 per day will be paid to the City or deducted from the monthly billing owed to said Contractor. 25 E. City Access to Records The City, or any of its duly authorized representatives, employees, personnel or agents, upon reasonable written notice, shall have access, for the purpose of audit and investigation, to any and all original books, documents, papers and records of the Contractor v,,hich pertains to this Agreement. Said original books, documents, papers and records must be retained by the Contractor in the Southern Califoriva Region for three years following final payment wader the contract. F. Marketing/Public Outreach/Advertising The City shall be responsible for public relations, as well as, the production of schedules and marketing and other promotional materials, therefore, these costs should not be included in the proposal. The Contractor must refer all media requests to the City and may not provide any information without prior approval by the City. The Contractor shall cause drivers and supervisors to cooperate and comply with reasonable requests by the City to distribute notices, schedules or other promotional materials to passengers in connection with the services provided. The City may also request the Contractor's personnel to collect data from passengers by handing out survey forms. The Contractor shall participate in the City's special events such as the City's Earth Day Celebration, Red Ribbon Rally, etc. as requested by the City. These events may require the Contractor to display service vehicles in addition to providing manpower for a display booth for distributing brochures regarding the City's transit services. G. Operating During a Declared Emergency Upon declaration of any emergency by the City Manager or his/her designated representative, the Contractor may be responsible for a number of transportation -related activities, including the development of emergency travel routes, and the coordination with other agencies supplying common carrier services. In the event of a declared emergency, the Contractor shall make available all program vehicles to the City, report to a designated City parking area immediately grid deploy vehicles in a marmer described by the Director of Community Services or his designee as part of the City's Emergency Response Plan. The City shall be obligated to compensate the Contractor for services that significantly exceeds the normal expense of operating the service during such period of declared emergency. The Contractor shall be required to document and maintain all emergency -related services as requested by the City and provide these documents to the City at the declared conclusion of the emergency. H. Price and Satisfaction Guarantee— Contractor Service Warranty Contractor conunits that its price and service model presented in its Best and Final Offer (Exhibit "C") is valid and meets the services needs of the City of 'West Covina's Transit System (Fixed Route and Dial -A -Ride). Furthermore, Contractor guarantees that its price to provide transit 26 i i services to the City of West Covina will not exceed its Best and Final Offer, barring any changes in the scope of worl, by the City. Contractor's not to exceed prices for the five-year agreement are as follows, with the optional sixth and seventh year contained in the Best and Final Offer. March 2014-2015 Fixed Route $623,983 (Hourly Rate of $53.56) Dial -A -Ride $347,063 (Hourly Rate of $45.67) Total $971,047 March 2015-2016 Fixed Route $623,776 (Hourly Rate of $53.54) Dial -A -Ride $346,662 (Hourly Rate of $45.61) Total $970,437 March 2016-2017 Fixed Route $635,177 (Hourly Rate of $54.52) Dial -A -Ride $352,883 (Hourly Rate of $46.43) Total $988,059 March 2017-2018 Fixed Route $645,220 (Hourly Rate of $5538) Dial -A -Ride $358,331 (Hourly Rate of $47.15) Total $1,003,551 March 2018-2019 Fixed Route $655,908 (Hourly Rate of $5630) Dial -A -Ride $364,123 (Hourly Rate of $47.91) Total $1,020,031 In addition, Contractor shall provide the following unconditional satisfaction warranty to the City: Dz the event the Cio) is dissatisfzed with Contractor's service for any reason during the term of the Agreement, the City may terminate the Agreement. In the event the Agreement is so terminated, Contractor will refund to the City any and all profits made by Contractor resulting from this Agreement, during theJ'nal 12 months daring the period prior to the termination. Furthermore, Contractor commits that its price is valid, and barring any changes in the scope of »)ork, the company conunits that its price will not change from its submitted cost proposal for the period of this agreement and any extensions to this agreement. Contractor Initials: 27 ARTICLE I TERMINATION OR SUSPENSION A. The City shall have the right to (i) forthwith terminate this Agreement, (ii) withhold payment to the Contractor, (iii) provide substitute service at the Contractor's expense, or (iv) exercise any and all other remedies legally available to it in the event of: 1. The bankruptcy of the Contractor or assignment by it for the benefit of its creditors. 2. The failure or refusal of the Contractor to perform the Services in a satisfactory manner after five (5) working days written notice by the City to the Contractor. 3. The failure or refusal of the Contractor to comply with applicable federal, state and local government laws, codes, regulations or ordinances. 4. The failure to receive a "Satisfactory" rating within thirty, (30) days of receipt of an "Unsatisfactory" rating of any vehicle used in connection with the Services. 5. The failure. tonotify the City of an "Unsatisfactory" rating of any vehicle used in connection with the Services. 6. This contract may be terminated for convenience by the City without cause, in whole or in part, by giving the Contractor thirty (30) days written notice of the intent to terninate whenever the City determines that termination is in the best interest of the City. Should the contract be terminated for convenience, the Contractor shall be paid for all authorized services provided, including reasonable charges for demobilization. However, the Contractor shall not be paid any anticipated profit or fees for services not provided. 7. The abandomnent or discontinuance by the Contractor of the Services without the prior written consent of the City. 8. The continued violation on the part of the Contractor's agents or employees of traffic laws, ordinances, and regulations. 9. The failure to maintain the whole, or any portion, of the Contractor's vehicles and other equipment or facilities as required by this Agreement. 10. The failure of the Contractor to maintain the insurance coverage required herein by Article 7. 11. Contractor violates any other material obligations contained hereunder. B. If cancellation is due to any of the reasons specified in subsection (A) of Article 11 of this Agreement, the City may offset damages incurred by it in accordance with Article 10. 28 C. In the event the City terminates this Agreement as provided in subsection (A) Article 11, the Contractor shall be entitled to receive payment for the pro rata share of the monthly Services provided as of the time of cancellation of the Contract, subject to any offset, as provided in Article 10. D. Subject to the foregoing, including any remedy preferable to City provided in subsection (A) Article 11, during the initial term and subsequent renewals, either party may terminate this Agreement without cause upon ninety (90) days prior written notice to the other party. E. Notwithstanding the foregoing, during the initial term and any subsequent renewal terms, pursuant to the Contractor's Satisfaction Guarantee (see Article 10, Sec. H.), City may terminate this Agreement at any time if City is dissatisfied with the Services by providing written notice to Contractor. F. If for any reason the Services continue after the end of the last renewal term provided for in this Agreement, the parties will continue to operate under the terms of this Agreement, except that the tenor for Services will be amonth-to-month, and may be terminated by either party with fifteen (15) days prior written notice to the other party. E. In the event thus Agreement is terminated by the City, all data prepared in providing the Services shall be made available immediately to the City at the Contractor's sole expense. F. Pending final resolution of a dispute hereunder, the Contractor shall proceed diligently with the performance of Services under this Agreement ARTICLE 12 ASSIGNMENT AND SUBCONTRACTING This Agreement is made in reliance on the qualifications and responsibilities of the Contractor and, therefore, the Contractor shall not assign, transfer or subcontract all or any part of its obligations or benefits under this Agreement without the written consent of the City, which consent shall not be unreasonably withheld. The Contractor acknowledges that the following non - exhaustive list of requirements prior to authorizing an assignment, transfer or subcontracting of all or any part of this Agreement by the Contractor shall not be deemed unreasonable: 1) requirement of financial compensation from Contractor to City for the administrative and associated costs of processing said assignment, transfer, or subcontract, in all amount not to exceed 3 months of billed services under this Agreement; 2) cooperation with and facilitation of all communications, meetings and document transfers, between City and proposed assignee, transferee, or subcontractor necessary for City, at City's sole discretion, to detennine the desirability of said assignee, transferee, or subcontractor; and 3) ninety (90) days advance written notice of the intention to assign, transfer, or subcontract all or any part of the Services or this Agreement, commencing upon the extension of an offer by Contractor of said assignment, transfer, or subcontracting to a third patty, or entertahunent of an offer from a potential assignee, transferee, or subcontractor by Contractor, whichever shall first occur. 29 The parties acknowledge and agree that this Agreement is not intended to be an exclusive agreement for transit services for the City. The Contractor acknowledges that the City may award or enter into additional agreements with third parties, including competitors of the Contractor for transit services during the tern of this Agreement. ARTICLE 13 CHOICE OF LAWS The laws of the State of California shall govern the interpretation and enforcement of this Agreement. ARTICLE 14 ASSISTANCE FROM CONTRACTOR The Contractor shall participate with the City in the design and implementation of any changes in the Services. The Contractor shall provide suggestions respecting scheduling and routing to the City from time to time for the purpose of improving the overall Services. The Contractor shall provide advice to the City in the marketing and promotion of the Service and shall, at the request of the City, participate in marketing activities for the Service without additional compensation. ARTICLE 15 NOTICES All notices pursuant to this Agreement shall be in writing and shall be effective upon (i) personal delivery to the person to be notified or (ii) three (3) business days after the postmarked date placed by the United States Postal Service or other carrier, including any lawful successor, postage prepaid addressed as follows: City: West Covina: Conrrnunity Services Director City of West Covina 1444 West Garvey Avenue West Covina, CA 91790 Contractor: Joe Escobedo, Sr. Vice President MV Transportation, Inc. 5910 N. Central Expy, Ste. 1145 Dallas, TX 75206 With copy to: Office of the General Counsel 30 ATTACHMENT NO.1 AGENDA ITEM NO. 10 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 18, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF THIRD AMENDMENT TO MV TRANSPORTATION, INC. AGREEMENT FOR TRANSIT SERVICES RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Approve the Third Amendment to the Agreement for transit services with MV Transportation, Inc. effective March 3, 2020 through March 2, 2021 (Attachment No. 1); 2. Approve the following Resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, — RESOLUTION NO. 2020-10 ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2019 AND ENDING JUNE 309 2020 (MV Transportation) BACKGROUND: On December 17, 2013, the City Council approved a five-year agreement along with a provision for two one- year extensions with MV Transportation, Inc. (MVT) to provide fixed route and dial -a -ride transit services that began on March 3, 2014. (Attachment No. 2). The total cost of the agreement was $4,953,125. MVT has staffed and managed the City of West Covina's Fixed Route Shuttle (Shuttle) and Dial -A -Ride (DAR) services with oversight by the Public Services Department. The Shuttle service consists of three alignments (Red, Blue, and Green) that operate Monday -Friday from 6:30 a.m. to 7:00 p.m. The estimated annual hours of operation for the Shuttle service are 11,650. The DAR operates Monday -Friday from 8:00 a.m. to 5:30 p.m., and Sunday from 8:00 a.m. to 2:30 p.m. The estimated annual hours of operation for the DAR service are 7,600. The annual ridership for both services during fiscal year 2018-2019 is summarized by month in the table below. City's General Counsel West Covina City Attorney City of West Covina 1444 West Garvey Avenue West Covina, CA 91790 Contractor's General Counsel: Patricia McArdle Associate General Counsel 5910 N. Central Expy., Suite 1145 Dallas, TX 75206 ARTICLE 16 SAFETY PROGRAM The Contractor shall provide regular and continuous formal safety instructions and training to all employees providing Services under thus Agreement. Personnel assigned to the Services shall be required to attend safety meetings scheduled at a minimum of four (4) times per year. Certifications of attendance at these meetings shall be sent to the City not later than thirty (30) days after each safety meeting. Copies of training manuals and materials shall be sent to the City, for review purposes, describing the content and scope of the safety program. Certification of Completion of Training shall be sent to the City for all employees no later than ten (10) working days after training has been completed. ARTICLE 17 PROPOSITION "A" & "C" AND MEASURE "R" FUNDING The funding source for the Service is the City's Proposition "A" &"C" and Measure "R' funds, In the event these funds become unavailable in the amount anticipated, the City shall have the right to reduce or temrinate this Agreement upon thirty (30) days written notice to the Contractor. The Contractor shall be entitled to compensation for all Services provided up to the date of termination. ARTICLE 18 FORCE MAJEURE The parties to this Agreement agree that neither shall be held responsible for losses, delays, failure to perform, or excess costs caused by events beyond their control. Such events include, but are not restricted to the following: Acts of God, fire, epidemics, earthquakes, flood or other natural disasters, riots, strikes, war, civil disorder, or unavailability of fuel. A party wishing to have its obligation hereunder suspended or excused for Force Majeure shall notify the other party of the existence of Force Majeure by telephone or by fax as soon as reasonably possible after the occurrence of the cause or event constituting Force Majeure. 31 ARTICLE 19 [INTENTIONALLY LEFT BLANK] ARTICLE 20 ATTORNEY'S FEES Should any litigation be conunenced between the parties hereto to interpret or enforce the provisions of this Agreement, including an action for declaratory relief, the prevailing party shall be entitled to reasonable attorney's fees, court costs and necessary disbursements, in addition to any other relief to which it may be entitled in law or equity. ARTICLE 21 SEVERABILITY If any tenn, condition or covenant of this Agreement, or the application hereof to any person or circumstance shall be invalid or unenforceable, the remainder of this Agreement, other than those paragraphs held invalid or unenforceable, shall be unaffected thereby and each remaining tern, covenant or condition of this Agreement shall be valid and shall be enforceable to the fullest extent permitted by law. 32 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first written above. Date: CITY OF WEST COVINA By Steve rt, Mayor Date: 1 'Z(,C I f 3 MV Transportation, Inc. By Joe lobe . Sr. Vice President Date: t2 j (•�(� / MV Transportation, Inc. APPROVED AS TO FORM An old Alvarez-GlasInan, City Attorney By W.C. Pihl, Executive Vice President 33 ATTACHMENT NO.3 FIRST AMENDMENT TO CITY OF WEST COVINA TRANSPORTATION SERVICES AGREEMENT WITH MV Transportation, Inc. This First Amendment ("Amendment") to the Agreement dated December 18, 2013 ("Original Agreement"), between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "City" and MV TRANSPORTATION, INC., a California C Corporation, hereinafter referred to as "Contractor" is made and entered into as of November 7, 2017. In consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follow: SECTION 1. RECITALS. This Amendment is made and entered into with respect to the following facts: WHEREAS, On December 18, 2013, City and Contractor entered into the Original Agreement for Contractor to provide Fixed Route Shuttle and Dial -A -Ride Services; and WHEREAS, City and Contractor wish to modify hourly service rates of the current agreement in light of State -imposed increases to the minimum wage NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1. The fee schedule set forth in Section H `Price and Satisfaction Guarantee - Contractor Service Warranty' of the Article 10 of the Original Agreement, which reflects pricing provided by the Contractor in the Best and Final Offer dated August 6, 2013 (Exhibit "C" of Agreement) is amended to reflect new rates, effective September 1, 2017 through March 2, 2019, as follows: March 2017-2018 Fixed Route $322,589 (Hourly Rate of $55.38 — Mar 2017-Aug 2017) Fixed Route $338,957 (Hourly Rate of $58.19 — Sep 2017-Mar 2018) Dial -A -Ride $179,170 (Hourly Rate of $47.15 — Mar 2017-Aug 2017) Dial -A -Ride $189,848 (Hourly Rate of $49.96 — Sep 2017-Mar 2018) Total $1,030,563 March 2018-2019 Fixed Route $690,146 (Hourly Rate of $59.24) Dial -A -Ride $387,676 (Hourly Rate of $51.01) Total $1,077,822 2. Except as herein amended, the terms and conditions of the Original Agreement, executed on December 18, 2013 shall remain in full force and effect IN WITNESS WHEREOF, City and Contractor have executed this First Amendment to become effective November 7, 2017. "CITY" CITY OF WEST COVINA, 4;;�� az)", Corey W aw, Mayor "CONTRACTOR" MV Transportation, Inc. Date: �, 1(ky Date: � 131 is Gary Richardson, Interim Chief Financial Officer ATTEST: Ros lia Butler, -s is aPMt— APPROVED AS TO FORM: ✓ / Date: I?- Kimberly 1 Barlow, City Attorney ATTACHMENT NO.4 SECOND AMENDMENT TO CITY OF WEST COVINA TRANSPORTATION SERVICES AGREEMENT WITH MV Transportation, Inc. This Second Amendment ("Amendment") to the Agreement dated December 18, 2013 ("Original Agreement"), between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "City" and MV TRANSPORTATION, INC., a California C Corporation, hereinafter referred to as "Contractor" is made and entered into as of March 3, 2019. In Consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follow: SECTION 1. RECITALS. This Amendment is made and entered into with respect to the following facts: A. On December 18, 2013, City and Contractor entered into the Original Agreement for Contractor to provide Fixed Route Shuttle and Dial -A -Ride Services; and B. On November 7, 2017, City and Contractor agreed to the First Amendment to the Agreement which modified hourly service rates of the agreement in light of State - imposed increases to the minimum wage; and C. The City and Contractor wish to wish to exercise the first option to extend the Original Agreement for a one-year period, through March 2, 2020; NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: SECTION 2. Article 4, Term of the Agreement, is hereby amended as follows: ARTICLE 4. TERM OF THE AGREEMENT This Agreement shall commence on March 3, 2014 and shall terminate March 2, 2020, unless earlier terminated pursuant to Article 11 below. The Agreement may be extended thereafter for one additional one-year term upon mutual agreement of the parties without soliciting proposals and upon the agreed terms, including pricing. The parties also, upon negotiated written amendment hereto, may extend and/or modify the reimbursement rate, levels of service, types of services, change of vehicles, or any other terms which the parties determine necessary. SECTION 3. The fee schedule set forth in Section H 'Price and Satisfaction Guarantee Contractor Service Warranty' of the Article 10 of the Original Agreement, which reflects pricing provided by the Contractor in the Best and Final Offer dated August 6, 2013 (Exhibit "C" of Agreement) as increased with the Fist Amendment to the Agreement, effective September 1, 2017 through March 2, 2019, is amended to reflect new rates effective March 3, 2019 through March 2, 2020, as shown below: March 2019-2020 Fixed Route $728,189 (Hourly Rate of $62.51) Dial -A -Ride $397,811 (Hourly Rate of $52.34) Total $1,126,000 SECTION 4. Except as herein amended, the terms and conditions of the Original Agreement, executed on December 18, 2013, as amended by the First Amendment, shall remain in full force and effect IN WITNESS WHEREOF, City and Contractor have executed this Second Amendment to become effective March 3, 2019. CITY OF WEST MVINA, Date: L oyd Joh son, Door "CONTRACTOR" MV Tr port ion, Inc. Date: Meg L a at hief Financial Officer —r—� ATTEST: Carrie Gallagher, Assistant My Clerk APPROVED AS TO FORM: 5 CatfV`/&� Date: ✓/��'�� Scott E. Porter, City Attorney ATTACHMENT NO.5 I.7 �f.Y1]SIyY(IL/�CI�Iy�12f [I] A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2019, AND ENDING JUNE 30, 2020 (MV Transportation) WHEREAS, the City Manager, on or about June 18, 2019, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2019-20; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and adopted a budget for the fiscal year commencing July 1, 2019 and ending July 30, 2020; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES RESOLVE AS FOLLOWS: SECTION 1. That the budget amendment for Fiscal Year 2019-20 is hereby approved as reflected on Exhibit No. 1 attached hereto. SECTION 2. That this resolution shall be effective immediately upon passage and adoption SECTION 3. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 18`h day of February 2020. Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, the custodian of the original records, which are public records over which I maintain custody and control for the City of West Covina, California, hereby certify that the foregoing Resolution No. 2020-10 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof on the 18' day of February 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk FY 2018-2019 Annual Ridership by Month Shuttle Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Red 624 799 643 751 630 571 657 D47D36D0fl1,098 D5U,908 Blue 303 555 583 681 500 444 433 392 544 492 562 435 5,924 Green 1,501 2,051 2,122 2,705 2,255 1,754 1,800 2,104 2,425 2,755 2,886 2,070 26,428 Total 2,428 3,405 3,348 4,137 3,385 2,769 2,890 3,143 3,705 4,148 4,546 3,356 41,260 D000�000�000� Weekday Sunday 1,160 69 1,161 64 988 69 1,095 55E36E6qF 920 901 1,074 61 956 68 1,075 110 1,084 92 1,216 74 JD 934 ETT1F TD 12,564 889 Total 1,229 1,225 1,057 1,150 976 961 1,135 1,024 1,185 1,176 1,290 1,045 13,453 In August 2017, MVT contacted the City to express its concern regarding the impact of the increased minimum wage on the cost of servicedelivery. At the start of the agreement in March 2013, the minimum wage was $8.00 per hour. SB-3 of 2016, signed by the Governor of California on April 4, 2016, amended the state labor code to include provisions for planned statewide minimum wage increases. Effective January 1, 2017, the minimum wage increased to $10.50 per hour. It increased to $11 on January 1, 2018 and has continued to increase by an additional $1 each year, through January 1, 2021. Related benefits also impact costs. To address the rising minimum wage issue, MVT submitted a proposal to increase the rates of its revenue (operating) hours for the fixed route and dial -a -ride service. September 1, 2017 through March 2, 2019. On November 7, 2017, the City Council approved the First Amendment to the Agreement with MVT, incorporating the increased rates into the Agreement, effective September 1, 2017. (Attachment No. 3). On March 5, 2019, the City Council approved the Second Amendment to the Agreement with MVT (Attachment No. 4). This Amendment exercised the first optional one-year extension of the Agreement, extending the term through March 2, 2020. The Amendment also increased the hourly rates from $59.24 to $62.51 and $51.01 to 52.34 for the Fixed Route and Dial -A -Ride, respectively, as proposed by MVT. DISCUSSION: On January 22, 2020, the City received MVT's proposal for the second optional one-year extension of the Agreement. The Agreement term would be extended from March 3, 2020 through March 2, 2021. The hourly rates are proposed to increase from $62.51 to $64.42 and $52.34 to $54.08 for the Fixed Route and Dial -A - Ride, respectively. The proposed rates result in a $35,476 increase, approximately 3.15%, from the prior year. The Third Amendment (Attachment No. 1) incorporates this proposal. OPTIONS: The City Council has the following options: 1. Approve staff's recommendation; 2. Approve an extension of the contract with no rate increase and direct staff to work with MVT Transit to reduce its operating hours to stay within status quo cost; 3. Direct staff to conduct a Request for Proposals (RFP). This is not recommended as the current service is excellent and it would be expected that rates would be much greater than the proposed increase; or Exhibit No. 1 CITY OF WEST COVINA BUDGET AMENDMENT BA # 037 Posted By: Date Posted: Date: 2/18/2020 Fiscal Year: 2019-2020 Requested by: Kelly McDonald Amount: $ 11,825.00 Dept/Div: Public Services MV Transit Contractual Services FXDFNOTTURFS Account Number Dept/Account Description Current Budget Proposed Amendment Amended Budget 122.51.5142.6120 Contractual Services 248 700.00 2,491.09 251 191.09 224.51.5142.6120 Contractual Services 158 300.00 1,585.60 159 885.60 122.51.5148.6120 Contractual Services 333 500.00 3,340.48 336 840.48 122.51.5143.6120 Contractual Services 404 400.00 4,408.00 408 808.00 2EVENUES Proposed Account Number Account Description Current Budget Amendment Amended Budges MV Transit Contract. Increased rates due to minimum wage impacts. APPROVALS City Council Approval Date (if required, attach minutes): Dept Head Approval: Date: inance Director: Date: unds Available? ❑ Yes ❑No ❑ Approval Not Required Ity Manager: Date: :omment: ❑ Approved ❑ Denied 4. Provide alternative direction. Prepared by: Kelly McDonald, Public Services Manager Fiscal Impact FISCAL IMPACT: The proposed rates result in a total cumulative increase of $35,476 from March 3, 2020 through March 2, 2021. Transit services are funded from the Public Services Transportation Operating Budget (Proposition C and Measure R). The fixed route budget is included in Account Nos. 122.61.5142.6120, 122.61.5148.6120, and 224.61.5142.6120 and dial -a -ride services in Account Nos. 122.61.5143.6120 and 224.61.5142.6120. A Budget Amendment is needed for increased costs for the remainder of Fiscal Year 2019-2020 (Attachment No. 1). The increases occurring in Fiscal Year 2020-2021 remainder of the agreement term will be incorporated into the budget, accordingly. There is no impact to the General Fund. Attachments Attachment No. 1 - Third Amendment to MVT Agreement Attachment No. 2 - MVT Agreement Attachment No. 3 - First Amendment to MVT Agreement Attachment No. 4 - Second Amendment to MVT Agreement Attachment No. 5 - Budget Amendment Resolution and Exhibit CITY Enhance City Programs and Activities COUNCIL GOALS & OBJECTIVES: ATTACHMENT NO. 1 THIRD AMENDMENT TO CITY OF WEST COVINA TRANSPORTATION SERVICES AGREEMENT WITH MV Transportation, Inc. This Second Amendment ("Amendment") to the Agreement dated December 18, 2013 ("Original Agreement"), between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "City" and MV TRANSPORTATION, INC., a California C Corporation, hereinafter referred to as "Contractor" is made and entered into as of March 3, 2020. In consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follow: SECTION 1. RECITALS. This Amendment is made and entered into with respect to the following facts: WHEREAS, On December 18, 2013, City and Contractor entered into the Original Agreement for Contractor to provide Fixed Route Shuttle and Dial -A -Ride Services; and WHEREAS, On November 7, 2017, City and Contractor agreed to the First Amendment to the Agreement which modified hourly service rates of the agreement in light of State -imposed increases to the minimum wage; and WHEREAS, The City and Contractor agreed to the Second Amendment to the Agreement to exercise the first option to extend the Original Agreement for a one-year period, through March 2, 2020; and WHEREAS, The City and Contractor wish to exercise the second option to extend the Original Agreement for a one-year period, through March 2, 2021; NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1. To extend the Original Agreement for a one-year extension period, commencing March 3, 2020, and terminating March 2, 2021. 2. The fee schedule set forth in Section H `Price and Satisfaction Guarantee - Contractor Service Warranty' of the Article 10 of the Original Agreement, which reflects pricing provided by the Contractor in the Best and Final Offer dated August 6, 2013 (Exhibit "C" of Agreement) then increased with the First Amendment to the Agreement, effective September 1, 2017 through March 2, 2019, then increased with the Second Amendment to the Agreement, effective March 3, 2019 through March 2, 2020, is amended to reflect new rates effective March 3, 2020 through March 2, 2021, as shown below: March 2020-2021 Fixed Route $750,493 (Hourly Rate of $64.42) Dial -A -Ride $411,008 (Hourly Rate of $54.08) Total $1,161,501 3. Except as herein amended, the terms and conditions of the Original Agreement, executed on December 18, 2013 shall remain in full force and effect IN WITNESS WHEREOF, City and Contractor have executed this Second Amendment to become effective March 3, 2020. "CITY" CITY OF WEST COVINA, Date: Tony Wu, Mayor "CONTRACTOR" MV Transportation, Inc. Date: Gary Richardson, Chief Financial Officer ATTEST: Lisa Sherrick, Assistant City Clerk APPROVED AS TO FORM: Date: Thomas P. Duarte, City Attorney