AGENDA REPORT. Meeting Date: August 21, 2018 Item Number: 0 13 To: From:
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1 Meeting Date: August 21, 2018 Item Number: 0 13 To: From: Subject: AGENDA REPORT Honorable Mayor & City Council Aaron Kunz, Deputy Director of Transportation Martha Eros, Transportation Planner AMENDMENT NO. 5 TO AN AGREEMENT BEW IEEN THE CITY OF BEVERLY HILLS AND MV TRANSPORTATION, INC. FOR THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE CITY S TRANSIT SERVICES; AND APPROVAL OF A CHANGE PURCHASE ORDER TO MV TRANSPORTATION, INC. IN THE AMOUNT OF $140,000 FOR A NOT TO EXCEED AMOUNT OF $280,000 FROM TRANSPORTATION GRANT FUNDS. Attachments: 1. Amendment No. 5 (Agreement) RECOMMENDATION Staff recommends that City Council move to approve Amendment No. 5 to extend an agreement between the City of Beverly Hills and MV Transportation, Inc. for continued management, operations and maintenance of the City s transit services for senior and disabled Beverly Hills residents for September and October Also included for City Council consideration is approval of a change purchase order in the amount of $140,000, for a total not to exceed $280,000, to continue paratransit services for Beverly Hills seniors and disabled residents, trolley operations and special charters for September and October INTRODUCTION The Cities of Beverly Hills and West Hollywood share a joint agreement with MV Transportation, Inc. (MV Transportation) to recognize economies of scale due to the size of both programs by combining revenue service hours and sharing a maintenance and storage facility to reduce the overall cost of operating the transit programs. Page 1 of 3 8/15/2018
2 Meeting Date: August 21, 2018 The Cities of Beverly Hills and West Hollywood issued a joint Request for Proposal (RFP) in October 2017 for the management, operation and maintenance of the Cities transit services. Following thorough vetting and negotiations, Beverly Hills and West Hollywood staff recommend the incumbent operator, MV Transportation, be selected to continue as the Cities transit provider starting no later than October 1, The City of West Hollywood City Council approved the proposed seven-year agreement, plus three one-year optional extensions for a total of no more than ten years, with MV Transportation at its July 19, 2018 meeting. As transit partners, the City of West Hollywood is unable to begin operations under their new agreement and will seek City Council consideration to amend both their existing and new agreements to extend the end and start dates, respectively, to coincide with Beverly Hills timeline. DISCUSSION On August 7, 2018, staff forwarded a seven-year agreement, plus three one-year optional extensions for a total of no more than ten years, with MV Transportation for City Council consideration. City Council deferred the item to a future meeting for further discussion of the item. Staff is seeking a two-month extension (September 1 October 31, 2018) to the existing contract with MV Transportation to continue transit services for senior and disabled residents, special charters for City events, and trolley operations while the City Council further discusses the new seven-year contract or develop an alternative to provide the necessary transit services. Pending transit services include senior transit for standing personal or medical trips, Roxbury Park and grocery bi-monthly shuttles, Senior Health Fair, Innovations Day, and the bi-annual Art Show. Beverly Hills staff will schedule a meeting with the City Council and Traffic & Parking Commission Liaison Committee (Liaison Committee) in August/September 2018 to discuss the terms of the proposed seven-year agreement with MV Transportation and to receive public input. Staff will outline the service, ridership, line item costs, and planned enhancement for the new agreement. A standard provision in the proposed agreement includes a Termination Clause whereby the City may terminate services for convenience (i.e., without cause) with a 60-day written notice, or for cause (i.e., failure to perform, breach of contract) with a 10-day written notice to remedy the violation(s) within a stated timeline agreed by both parties. Should the Liaison Committee recommend exploring other alternatives, staff will have to revisit the terms of the agreement with the City of West Hollywood. In June 2008, the Beverly Hills City Council approved Agreement No with MV Transportation for a seven-year contract effective July 1, 2008 through June 30, Amendment No. 2 to Agreement approved a three-year extension through fiscal years The contract expired on June 30, On June 19, 2018, City Council approved a two-month extension, July 1, 2018 to August 31, 2018, to allow staff to complete negotiations with MV Transportation. The transit services provided by MV Transportation include, but are not limited to, free curb-to-curb shared dial-a-ride paratransit transportation for medical and personal appointments for seniors and disabled residents; dedicated weekly shuttles to Roxbury Park and bi-monthly shuttles to area supermarkets; Beverly Hills Trolley circulator service Page 2 of 3 8/15/2018
3 Meeting Date: August 21, 2018 between the business triangle and the Third Street tour bus zone; on-demand charters for City and special events, including City Council and Commission site visits, community events such as the bi-annual art shows, Fire and Police department group transit; private charters for Beverly Hills organizations; and storage and maintenance of the City s transit fleet (five paratransit shuttles and two trolleys). Beverly Hills service enhancements include door-to-door (versus curb-to-curb) service with an on-board attendant to assist participants that require extra help. In anticipation of forthcoming smart technologies (e.g., connected and automated vehicles), a vehicle lease option is included to replace the 2009 paratransit shuttles. FISCAL IMPACT The transit program for resident seniors and disabled persons is fully funded with a combination of Proposition-A, Proposition-C and Measure-M transportation grant funds. Special charters requested by City departments are charged directly to the requesting department and are included in the contract costs. The estimated cost for MV Transportation to operate the senior transit program, trolley operations and special charters for City events for September and October 2018 is $140,000. óy Tatiana S erwinski Susan Healy Keene, AICP Finance Approval Approved By Page 3 of 3 8R5/2018
4 ATTACHMENT 1
5 AMENDMENT NO. 5 TO AN AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND MV TRANSPORTATION, INC. FOR THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE CLTY S TRANSIT SERVICES NAME OF CONTRACTOR: MV Transportation, Inc. RESPONSIBLE PRINCIPAL OF Gary Richardson, Interim Chief Operating Officer CONTRACTOR: CONTRACTOR S ADDRESS: 2711 North Haskell Avenue Suite 1500, LB-2 Dallas, Texas CITY S ADDRESS: City of Beverly Hills 455 N. Rexford Drive Beverly Hills, CA Attention: Susan Healy Keene. Community Development Director COMMENCEMENT DATE: July $ TERMIIJATION DATE: October 31, 2018 CONSIDERATION: Original Agreement: FY to FY amount not to exceed $4,687,265. Amendment No. I: Additional not to exceed $50,000 ($25,000 each fy and FY ). Amendment No.2: Not to exceed: FY 15/16 -$738,355 FY 16/17 and FY 17/18 - defined in Attachment B Amendment No. 3: No Cost Agreement $738,355 per year plus the CPI as Amendment No.4: Not to exceed: FY1$/19 -$140,000 (July 1, 201$-August 31, 201$) Amendment No.5: Not to exceed: FYI8/I9 -$140,000 (September 1, 2018-October 31, 2018) Total Not to Exceed: $7,232,330 B \220$093v I doe
6 AMENDMENT NO. 5 TO AN AGREEMENT BETWEEN THE CITY Of BEVERLY HILLS AND MV TRANSPORTATION, INC. FOR THE MANAGEMENT, OPERATION AND MAINTENANCE Of THE CITY S TRANSIT SERVICES This Amendment No. 5 is to that certain Agreement between the City of Beverly Hills (hereinafter called CITY ), and MV Transportation, Inc. (hereinafter called CONTRACTOR ) dated June 17, 2008 and identified as Contract No , as amended by Amendment No. I, dated February 18, 2014 and identified as Contract No , and Amendment No. 2, dated June 8, 2015 and identified as Contract No , as amended by Amendment No. 3. dated December 1, 2016 and identified as Contract No , as amended by Amendment No.4, dated June 19, 2018 and identified as Contract No ( Agreement ), a copy of which is filed in the City Clerk s office. RECITALS A. CITY entered into an agreement with CONTRACTOR for the management, operation, and maintenance of the CITY s transit services, which was previously amended. B. CITY and CONTRACTOR desire to further extend the Agreement for two (2) months and increase the Consideration for those additional services. NOW, THEREFORE, the parties agree as follows: Section 1. The Termination Date and Consideration shall be amended as set for on the cover page of this Agreement. Section 2. Section 8 of the Agreement entitled Term shall be amended to read as follows: B I \ v doc -2-
7 , on October 3 I in Attachment A. Section 8. l erm. [his Agreement shalt commence on July I, 2008 and shall terminate at midnight 2018, unless otherwise terminated pursuant to the termination provisions set forth Section_3. Attachment [3 of the Arreement entitled Total Annual Contract Costs shall he amended as atiached hereto and incorporated herein. Section 4. Except as specifically amended by and this Amendment No. 5, the remaining provisions of the Agreement shall remain in full force and effect. EXECUTED the day of 2018, at Beverly Hills, California. CITY OF REVERLY HILLS, A Municipal Corporation ATTEST: JULIAN A, GOLD, M.D. Mayor of the City of Beverly Hills, California BYRON POPE (SEAL) City Clerk CONTRAC OR: MV TRANSPORTATION, INC. GARY RiGF1ARR+E}N Li,I ) Interim Chief Operating Officer S it.natures conti nuel \ h doc -3-
8 ADAST: APPROVED AS TO CONTENT: LAURENCE S. WIENER MARDI ALUZRI City Attorney City Manager SI4A-IEALY KEENE, AP Dfreë ior of Community Development SHARON L HEUREUX DRESSEL Risk Manager \ v I doc -4-
9 SHUTTLE ATTACHMENT B ANNUAL CONTRACT COSTS CITY Of BEVERLY HILLS TRANSIT PROGRAM SHUTTLE TROLLEY ANNUAL CONTRACT COSTS FY10 FYI I FY12 FY13 YR I YR2 YR 3 YR YR 5 YR 6 FY FY14 FY15 Y 576, , , , , , ,339,264 50,098 52, ,629 65, , , , , ,737,265 FYI 3d14 and FY14115 add 525,000 eath year for on-demand ecia and cnnd u1t.e ANNUAL FIXED COSTS FYO8-09 FY10 FY11 FY12 FY13 FY14 FY14 YR I YR2 YR 3 YR 4 YR 5 YR 6 YR 7 TROLLEY # No thange 342, , , ,474 28,367 29,395 30, , , , , , , , ,512 2,736,724 58% SHUTTLE TROLLEY AVERAGE FY08-09 (RI No thanae HOURLY RATES FY10 FY11 FY12 FY13 FY14 FY14 YR2 YR YR3 YR4 YRS YR (Continues on next page) B07$5-000I\220$093v1 doe
10 Riverside-Orange Year 8 / Fiscal Year ANNUAL CONTRACT COSTS SHUTTLE I $ 676, TROLLEY , $ 738, ANNUAL FIXED COSTS SHUTTLE TROLLEY S S $ 391, , , HOURLY RATES SHUTTLE $ TROLLEY $ AVERAGE $ F or fiscal years 16/1 7 and 17/1 Index for all urban consumers for the Los Angeles each year. 8 there shall be an annual increase based on the Consumer Price County area on June 1 of fiscal Year 18/19 Fixed and Hourly costs will be applied for service rendered July October 31, 2018 in an amount not to exceed $280,000: 1 through Prorated Monthly fixed Cost: Shuttle: Trolley: $32,206 $4,392 Monthly Hourly Rate: Shuttle: Trolley: $36.88 $4 1,64 B07$5-000t\ v1 doc -6-
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