HomeMy WebLinkAboutResolution 2010-077 N.C.S. 05/27/2010Resolution No. 2010-077 N.C.S.
of the City of Petaluma, California
RESOLUTION AUTHORIZING CITY MANAGER TO EXECUTE A SECOND
AMENDMENT TO THE AGREEMENT I3ETWEEN TIIE CITY OF PETALUMA AND
MV TRANSPORTATION, INC. TO EXTEND THE AGREEMENT TO JUNE 30, 2011
AND AMEND SECTION 2.4 OF THE SCOPE OF SERVICES
WHEREAS, on or about February 7, 2008, the City of Petaluma and MV Transportation, Inc.
(the "Parties") entered into an Agreement between the City of Petaluma and MV Transportation,
Inc. for the provision of fixed route transit services ("the Agreement"), from January 1, 2007
through December 31, 2009; and,
WHEREAS, the Agreement provides that it maybe extended for up to two additional
years, one year at a time, subject to approval by the City Council; and,
WHEREAS, on December 21, 2009, the City Council approved a First Amendment to
the Agreement extending the Agreement six months, from January 1, 2010, to and including
June 30, 2010, with terms indexed at the lesser of the increase in the CPI or 3.0%; and,
WHEREAS, due to severe losses of transit funding in recent years, economic downturns
and withdrawals in state transit support, Petaluma Transit will restructure its fixed route service
in FY 10-11, resulting in a significant net decrease in annual revenue hours; and,
WHEREAS, in proposing a Second Amendment to the Agreement to extend the
Agreement for one additional year, from July 1, 2010 to June 30, 2011 (FY 10-11), the City and
MV Transportation, Inc. (MV) are required to negotiate the terms and rates for the extension
because on May 17, 2010, the City Council approved a significant service reduction for FY 10-
11; and,
WHEREAS, Pursuant to the City of Petaluma's Living Wage Ordinance, adopted on
November 20, 2006, and codified at Petaluma Municipal Code Chapter 8.36, should any set rate
of pay be less than the Living Wage rate established by City Council resolution, pursuant to
Petaluma Municipal Code Chapter 8.36, Contractor shall pay employees no less than the Living
Wage rate; and,
Resolution No. 2010-077 N.C.S. Page 1
WHEREAS, instead of the 3% CPI increase to the operations budget otherwise provided
for in the Agreement, rates have been re-negotiated because of the service reduction; and,
WHEREAS, for the term of the Agreement to and including June 30, 2010, the City has
compensated Contractor for any difference between the Living Wage rate and the contract rate of
pay, because the contract bid proposal pre-dated the effective date of the Living Wage
Ordinance; and,
WHEREAS, the Parties wish to make said Living Wage reimbursement an express
provision of the Agreement; and,
WHEREAS, the Parties have proposed an amendment to Section 2.4 of the Scope of
Services to formally assign all maintenance services for both fixed route and paratransit fleets to
MV, and the City will compensate MV an additional $30,000 annually therefor in FY 10/11,
which is included in the new negotiated amount of the contract; and,
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby authorizes City Manager to execute the Second Amendment to the Agreement
between the City of Petaluma and MV Transportation, Inc., attached to this resolution as Exhibit
A and incorporated herein by reference, to extend the contract to June 30, 2011 and amend
Section 2.4 of the Scope of Services accordingly.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the A prove to
Council of the City of Petaluma at a Special meeting on the 27`h day of May, 2010, fo
by the following vote:
AYES: Barrett, Vice Mayor Glass, Harris, Healy, Rabbitt, Renee, Mayor Torliatt
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: ~~~
Deputy City Clerk
City
Resolution No. 2010-077 N.C.S. Page 2
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SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF PETALUMA AND MV
TRANSPORTATION, INC FOR THE PROVISION OF FIXED ROUTE TRANSIT SERVICES
This SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF PETALUMA AND MV
TRANSPORTATION, INC FOR THE PROVISION OF FIXED ROUTE TRANSIT SERVICES is made and
entered into this day of , 2010, by and between. the City of Petaluma, a
municipal corporation ("CITY") and MV Transportation, Inc„ a California corporation
("CONTRACTOR"), CITY and CONTRACTOR are sometimes referred to hereaffer as the
"PARTIES."
WHEREAS, on or about February 7, 2008, the City of Petaluma and MV Transportation, Inc.
(the "Parties") entered into an Agreement between the City of Petaluma and MV
Transportation, Inc. for the Provision of Fixed Route Transit Services for services from January 1,
2007 through December 31, 2009, as subsequently amended ("the Agreement"); and,
WHEREAS, the Agreement provides that it may be extended for up to two additional
years, one year at a time, subject to approval by the City Council; and,
WHEREAS, on December 21, 2009, the City Council approved a First Amendment to the
Agreement extending the Agreement six months, from January 1, 2010, to and including June
30, 2010, with terms indexed at the lesser of the increase in the CPI or 3.0%; and,
WHEREAS, the PARTIES desire to extend the Agreement for one additional year, as
provided for in Section 3 of the Agreement, and the PARTIES have negotiated a new rate per
Section 2.1,1 and 2.1.2 of the Agreement, due to planned service reductions for FY2010-2011;
and>
WHEREAS, no CPI increase is provided to the operations budget, as otherwise provided
for in Section 3 of the Agreement because of the renegotiated rates resulting from service
reductions; and,
WHEREAS, for the term of the Agreement, to and including June 30, 2010, the City has
compensated Contractor on a direct pass through basis for any difference between the Living
Wage rate and the contract rate of pay, because the contract bid proposal pre-dated the
effective date of the Living Wage Ordinance; and,
WHEREAS, the Parties wish to make said Living Wage reimbursement an express provision
of the Agreement; and,
WHEREAS, the PARTIES agree to amend Section 2.4 to provide that MV shall provide
maintenance labor for paratransit services vans operated under separate agreement between
the City and Petaluma People Services Center, and that City shall increase the annual fixed rate
paid to MV $30,000 annually ($2500 per month) as compensation therefor (included in
negotiated rate herein); and,
follows:
NOW, THEREFORE, for good and valuable consideration, the PARTIES hereby agree as
1. The Agreement period specified in Section 3 of the Agreement shall be extended for
one year, beginning July 1, 2010 and ending June 30, 2011, with a monthly fixed rate
of $23,800,53 and variable (revenue hour) rate of $22,82 per revenue hour, inclusive
of City approved bus deadhead time, also referred to as "gate to gate" hours, with
no CPI increase made to the operations budget.
Resolution No. 2010-077 N.C.S. Page 3
2. The Payment Schedule D of the Agreement is hereby modified to add the following
provision:
Contract Period July 1, 2010 to June 30, 2011
Monthly Fixed Fee $ 23;800,53
Variable (revenue hour) rate S 22,82
Projected Annual Contract $590,783,00
3. Section 5 of the Agreement is amended to add the following language at the end of
Section 5; In addition to the terms stated in Payment Schedule D, The City shall
compensate Contractor on a direct pass through basis for any difference between
the City of Petaluma Living Wage rate and the contract rate of pay for any
Contractor employees subject to the City of Petaluma Living Wage rate,
4. Section 2,4, "City Furnished Vehicles," of the Agreement Scope of Services is
amended to add the following language at the end of said Section 2.4: Contractor
shall provide all maintenance labor for both City's paratransit (Petaluma Paratransit)
vehicles and for City's paratransit contractor (currently Petaluma People Services
Center), in addition to providing maintenance for City's fixed route vehicles, for the
term of this agreement extension, and in return MV shall receive an increase in
annual fixed costs of 530,000 as compensation ($2500 per month). This
compensation is included in the fees and rates provided for in Paragraph 2 above..
5; Paragraph 27, "Insurance Documents" is hereby amended to provide that all
insurance documents are to be sent to; Public Works, c/o City Clerk, 11 English St.,
Petaluma, CA 94952,5. Except as expressly amended herein, all terms and
conditions of the Agreement shall remain in full force and effect as originally
executed.
6, Except as expressly amended hereby, all terms and conditions of the Agreement
shall remain in full force and effect,
City of Petaluma
By;
John C. Brown
City Manager
Date:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
MV Transportation, Inc.
a California corporation
By:
Name/Title
Date:
Resolution No. 2010-077 N,C.S. Page 4