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HomeMy WebLinkAboutReg 2014-10-06 Item 4C - Agreement - Seattle Express Shuttle with Miller Schmer for $120,000 (100% Funded by City of SeaTac)COUNCIL AGI-i,NDA SYNOPSIS Meeting Date Prepared l!), 10/06/14 KK Mayor's review .t4/4C_ Council review ITEM INFORMATION ITEM NO. 4.C. STAFI7 SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 10/6/14 AGENDA DAN TITLE Seattle Express shuttle services contract CATIGORY Discussion Mtg Date E] Motion :Mfg Date 10/06/14 0 Resolution Mfg Date El Ordinance Mg Date 0 Bid Award Mtg, Date El Public Hearing A 1 tg Date • Other A 1 t‘g Date SP( >NS( Az Council [Z] Mayor 0 IIR El DCD Finance Fire fl IT P&R Police PIV SPONSOR'S Council is being asked to authorize the Mayor to sign a 2015 shuttle services contract with SUMMARY Miller Schmer Inc. doing business as "Seattle Express" on behalf of Seattle Southside Visitor Services (SSVS). Services will be paid out of the "SeaTac Only" account that is funded 100% by the City of SeaTac. RI NI1 VVED BY LI COW Mtg. r Utilities Cmte DATE: 9/16/14 R CA&P Cmte 1'86 Cmte ri -Fransportation Cmte Comm. ri Planning Comm. CHAIR: SEAL 0 Arts Comm. 111 Parks COMMITIEE RECOMMENDATIONS: SPoNsoR/ADmIN. COMM Mayor's Office WIFE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQI TIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $120,000 $120,000 $ Fund Source: 2015 LODGING TAX FUND 101.00.557.303.44.11 (NOT GENERAL FUND)<PASS THRU FROM SEATAC> Comments: Unanimous Approval by the Lodging Tax Advisory Committee; Forward to Finance & Safety MTG. DATE RECORD OF COUNCIL ACTION 10/06/14 MTG. DATE ATTACHMENTS 10/06/14 Informational Memorandum dated September 3, 2014 Contract for Services Minutes from Finance and Safety Committee, dated September 16, 2014. 2 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Katherine Kertzman, Tourism Program Manager Brandon Miles, Economic Development Planner DATE: September 3, 2014 SUBJECT: Seattle Express Shuttle Services Contract ISSUE The Council is being asked to reauthorize the Mayor to si n a shuttle services contract with Milier Schmer Inc. doing business as "Seattle Express" on behalf of Seattle Southside Visitor Services (SSVS). BACKGROUND For over 13 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 10096 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 direct costs but receives the sales tax from shoppers. Seattle Express delivered more than 28.000 riders/shoppers to Westfield Southcenter in 2013 resulting in $4,311,900 in estimated visitor spending at Westfield'. The shuttle is wrapped in Seattle Southside branded advertising. As administrator of Seat eGouthaide.Tukvv|ocondnactevvbhtheohottka.pmysthann.andiereinnbursed 10096 for expenses from the SeaTac lodging tax fund. Currently, the cost is$1O.0OO 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 rote, 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 Both the SeaTac Hotel Motel Advisory Committee and Tukwila Lodging Tax Advisory Committee reviewed and approved the 2015 Seattle Express shuttle service marketing initiatives at their respective August meetings. FINANCIAL IMPACT As the Council is aware, the operation of SSVS is a joint effort between the cities of SeaTac and Tukwila. Tukwila is solely responsible for the administration of SSVS. Both cities provide funding to SSVS to fund joint 1 The estimated spending per shuttle rider is estimated from a survey completed by Westfield in 201I. INFORMATIONAL MEMO Page 2 efforts, such as marketing. Additionally, each city also provides funding for specific initiatives. The Seattle Express Shuttle Service is an example of one such initiative. The City of SeaTac provides 100% of the funding to pay the direct costs associated with operation of the shuttle. Neither the City of Tukwila's lodging fund nor the City's general fund pays the costs associated with the shuttle operations. SSVS Transition In the s ing of 2013 the City Council authorized the Mayor to si n an interlocal agreement (ILA) with the cities of SeaTac arid [)es Moines to create a tourism promotion area (TPA) that encompasses the geographical areas of Tukwila, SeaTac and Des Moines. The City of SeaTac is currently working to form a public development authority (PDA) that will oversee the day to day operations of the TPA. Once the PDA is operating, it is assumed that most of the operations of SSVS will shift to the PDA. Once the PDA 15 formed and SSVS ceases to exist as a City Department, the City will not be able to administer some of the contracts that SSVS currently oversees. The proposed Shuttle services contract includes a provision that Tukwila can terminate the contract with 30-doy's notice. This provides the City of Tukwila flexibility once the PDA is up and running. 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 place the contract on the October 6, 2014 consent agenda. ATTACHMENTS • Proposed Contract 4 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: • 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. 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, 2015, and ending December 31, 2015, 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 5 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. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA Revised 1-2013 Page 2 of 6 6 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 terrninate 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. • 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 7 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. If Seattle Southside becornes a part of a newly formed Public Development Authority (PDA), the City may assign this Agreement to the PDA. 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 8 Exhibit A Scope of Services • 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. • 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 9 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 10 »,�^ '��_.I ^7 ��%[�/ of � ����%�>Z��� �' � Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes September 16, 2OY4-5:3Dp.nn,Hazelnut Conference Room PRESENT CVunCi|nnemberS: Verna Seal, Chair; Joe Duffie, Kathy Hougardy Staff: Vicky Carlsen, Derek Speck, Katherine Kertzman, Laurel Humphrey CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:35 p.m. I. PRESENTATIONS No presentations. U. BUSINESS AGENDA A. Lease Agreement: Visitor Information Center at Westfield Southcenter Staff is seeking Council approval for the Mayor to sign a lease renewal with Westfield Southcenter for the continued operation of the satellite visitor center through June 30. 2015. The visitor center began operation in October 2013 and has proven to be a beneficial location to travelers and for Seattle Southside Visitor Services. Operation of the visitor center costs around $10.000 per nnonth, funding for which comes from lodging tax for the duration of the lease. The lease itself costs a nominal $1 per year. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 22, 2014 COMMITTEE OF THE WHOLE AND SPECIAL MEETING CONSENT AGENDA. B. Agreement: Shuttle Services for Seattle 8nuthside Visitor Services Staff is seeking Council approval to reenter into a contract with Mi||er8chnner. Inc., (doing business as "Seattle Express") to provide regularly scheduled shuttle services from hotels in the City of SeaTac to Westfield Southcenter in Tukwila at a rate of $10.000 per month. Seattle Southside Visitor Services (88V8) has been providing this free shuttle service to hotel guests for over 13 years. As the aUnliniatretorofS8V8. Tukwila contracts the services with Seattle -- �� -- ExpnesoandtheCityofSeaTac|odgingtaxfundpeimburses1OO96ofthaonsL8ea#|eExpneas delivered more than 28.000 individuals to Westfield Southcenter in 2013. resulting in an estimated $4.311.900 in visitor spending. A competitive bid process is not feasible for this contract since Seattle Express has an Auto Transportation Certificate granting them the sole right to provide this service in our area. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 6 REGULAR CONSENT AGENDA. C. 2014 2nd Quarter Cash and Investment Report Staff reviewed the 2nd Quarter Cash and Investment Report for 2014. including information on the City's portfolio compVnents, perfonnance, policy compliance and liquidity ena|yois, fund cash and investment balances, and investment environment. At June 30, 2014, the portfolio totaled $47.1 million comprising $37.2 million in cash and cash equivalents and $10.0 in longer term investments. This represents a $2.4 million increase from the March 31, 2014 Ua|onoe, attributable to the collection of property taxes in the 2"« quarter. INFORMATION ONLY.