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HomeMy WebLinkAboutFS 2013-11-19 Item 2A - Agreement - 2014 Seattle Express Shuttle Services (Miller Schmer)City of Tukwila TO: Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton FINANCE AND SAFETY COMMITTEE FROM: Katherine Kertzman TOURISM PROGRAM MANAGER DATE: October 16, 2013 SUBJECT: SEATTLE EXPRESS SHUTTLE SERVICES CONTRACT ISSUE The Council is being asked to authorize the Mayor to sign a shuttle services contract with Miller Schmer Inc. doing business as "Seattle Express" on behalf of Seattle Southside Visitor Services (SSVS). BACKGROUND For over 12 years SSVS has hired Seattle Express to provide regularly scheduled shuttle services from hotels in the City of SeaTac to Westfield Southcenter, seven days a week (excluding some major holidays). Currently the City of SeaTac contributes 100% of the shuttle costs as a part of the annually approved tourism marketing initiatives SSVS provides to the City of SeaTac. The City of SeaTac's Hotel Motel Advisory Committee members support funding the complimentary shuttle service for their guests because it conveys added value to selling their properties to potential overnight guests and groups; the City of Tukwila incurs no cost but receives the sales tax from shoppers. Seattle Express delivered more than 28,000 riders/shoppers to Westfield Southcenter in 2012 resulting in $4,311,900 in estimated visitor spending at Westfield. The shuttle is wrapped in Seattle Southside branded advertising. As administrator of Seattle Southside, Tukwila contracts with the shuttle, pays them, and is reimbursed 100% for expenses from the SeaTac lodging tax fund. Currently, the cost is $10,000 per month. Seattle Express has an Auto Transportation Certificate 01052 issued by the Washington Utilities and Transportation Commission (WUTC) that gives Seattle Express the sole right to provide a scheduled shuttle service, at a set rate, on a set route for hotel guests (in our cities) and no other company can provide this shuttle service in our area which is defined as SeaTac and Tukwila. Therefore a competitive bid process is not feasible for this contract. ANALYSIS The SeaTac Hotel Motel Advisory Committee reviewed the 2013-2014 Seattle Express shuttle service marketing initiatives on August 8, 2012 and approved. The Tukwila Lodging Tax Advisory Committee reviewed the 2013-2014 Seattle Express shuttle service marketing initiative at the December 5, 2012 meeting and approved in the 2013-2014 Seattle Southside Marketing Initiatives. Budget impacts: There is no additional budget request for this item because the cost for this work through 2014 was included within the Council approved 2013-2014 Budget. Services will be paid out of the "Sea Tac Only" account that is funded 100% by the City of SeaTac. However, because the proposal amount is over $40,000, it requires Council approval. Since this is a tourism program item, the costs will be paid out of lodging taxes, not the City's general fund. 1 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to authorize the Mayor to sign a service contract in an amount not to exceed $120,000 on behalf of Seattle Southside Visitor Service with Miller Schmer Inc. doing business as Seattle Express. The Finance and Safety Committee is being asked to forward this item to the December 2, 2013 Regular Meeting Consent agenda. ATTACHMENTS Proposed contract 2 C:1 Usersl melissa- h1AppDatalLocallMicrosoft \Windows \Temporary Internet Files \Content.OutlooklIIRWBE3Y1Memo to Fin Safety Seattle Express 2014 contract.docx City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a non - charter optional municipal code city hereinafter referred to as "the City," and Seattle Express, hereinafter referred to as "the Contractor," whose principal office is located at 8028 180th St. SE, Snohomish, WA 98296. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $120,000 at a rate of $10,000 per month. 3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing January 1, 2014, and ending December 31, 2014, unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. CA Revised 1 -2013 Page 1 of 6 3 6. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $5,000,000 per accident. Automobile liability insurance shall cover all owned, non - owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $5,000,000 each occurrence, $5,000,000 general aggregate and $5,000,000 products- completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured- Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA Revised 1 -2013 Page 2 of 6 4 B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self - insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 10. Termination. This Agreement may be terminated by the City at any time and for any reason by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. The Contractor shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Contractor to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. CA Revised 1 -2013 Page 3 of 6 5 12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 13. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Seattle Southside Visitor Services 3100 South 176th St. Seattle, WA 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 20 CITY OF TUKWILA CONTRACTOR By: Mayor, Jim Haggerton ATTEST/AUTHENTICATED: City Clerk, Christy O'Flaherty APPROVED AS TO FORM: Office of the City Attorney Printed Name and Title: Address: CA Revised 1 -2013 Page 4 of 6 6 Exhibit A Scope of Services 1. Provide a complimentary regularly scheduled round trip shuttle service for SeaTac hotel guests to the Westfield Southcenter. 2. The route schedule will be published online and in printed format to be distributed to all SeaTac hotels, SSVS and Westfield Southcenter. 3. Seattle Express will not make changes to the published schedule without prior written approval from SSVS staff 4. Seattle Express will be responsible for all maintenance and upkeep of shuttle fleet and any associated fees. 5. Permit SSVS to wrap the shuttle van(s) used for Westfield Shuttle service in Seattle Southside branded advertising at SSVS's expense. 6. Shuttle service will operate seven days a week, excluding certain holidays. 7. Include Seattle Southside webpage link on Seattle Express website. 8. Promote the Seattle Southside visitor center by providing shuttle riders with SSVS Visitor Guide and Map and encouraging them to utilize other visitor center services. 9. Shuttle drivers will act as tourism ambassador for the Seattle Southside area. 10. With each monthly invoice, provide a ridership total report for the month being billed. CA Revised 1 -2013 Page 5 of 6 7 Exhibit B Compensation Contractor shall submit invoices to the City within fourteen days of the end of each month. Invoices shall be mailed to: Seattle Southside Visitor Services 3100 South 176 Street Seattle, WA 98188 The total amount to be paid under this contract shall not exceed $120,000 and will be paid at a fixed rate of $10,000 per month. CA Revised 1 -2013 Page 6 of 6 8