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HomeMy WebLinkAboutFS 2012-07-03 COMPLETE AGENDA PACKETCity of Tukwila Distribution: D. Quinn Finance and Safety D. Robertson K. Kruller Committee V. Seal Mayor Haggerton D. Cline O De'Sean Quinn, Chair P. McCarthy O Dennis Robertson C. 071aherty S. Kerslake O Kate Kruller K. Matej K. Kertzman AGENDA TUESDAY, JULY 3, 2012 CONFERENCE ROOM #3, 5:15 PM Item Recommended Action 1. PRESENTATION(S) 2. BUSINESS AGENDA A contract for Seattle Express Shuttle Services. a. Forward to 7/9 C.O.W. Katherine Kertzman, Tourism Program Manager and 7/16 Regular Mtg. 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, July I7, 2012 Page Pg.1 S The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 or TukwilaCityClerk @TukwilaWA.gov) for assistance. x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: FROM: DATE: SUBJECT ISSUE Mayor Haggerton FINANCE AND SAFETY COMMITTEE Katherine Kertzman TOURISM PROGRAM MANAGER June 25, 2012 SEATTLE EXPRESS SHUTTLE SERVICES CONTRACT 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 10 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 28,746 riders /shoppers to Westfield Southcenter in 2011 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. SSVS has been contracting for this service on a monthly basis using purchase orders. 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 Although the City could continue to contract on a monthly basis for this service, staff has determined that an annual contract would be more efficient and better protect the city from liability. Since we are currently in mid -year, staff recommends the first contract continue through the end of 2013. INFORMATIONAL MEMO Page 2 The SeaTac Hotel Motel Advisory Committee reviewed the 2012 Seattle Express shuttle service marketing initiative on June 8, 2011 and approved. The Tukwila Lodging Tax Advisory Committee reviewed the 2012 Seattle Express shuttle service marketing initiative at the Oct. 6, 2010 meeting and approved in the 2011 -2012 Seattle Southside Marketing Initiatives. Budget impacts: There is no additional budget request for this item because the cost for this work through 2012 was included within the Council approved 2011 -2012 Budget. Funds for 2013 will be included in the budget approval process later this year. Services will be paid out of the "SeaTac 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. RECOMMENDATION The Council is being asked to authorize the Mayor to sign a service contract in an amount not to exceed $170,000 through 2013 on behalf of Seattle Southside Visitor Service with Miller Schmer, Inc. doing business as Seattle Express. (to be paid out of lodging taxes from "SeaTac Only" account that is funded 100% by SeaTac). The Finance and Safety Council is being asked to forward this item to the July 9, 2012 Committee of the Whole meeting and subsequent July 16, 2012 Regular Meeting. ATTACHMENTS Proposed Contract WA2012 Info Memos Council \Seattle Express 2012 Final.dou 2 Contract No. CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a noncharter optional municipal code city hereinafter referred to as "the City," and Shuttle Ex hereinafter referred to as "the Contractor," whose principal office is located at 8028 180 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 Pavment. 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 $170,000 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 August 1, 2012, and ending December 31, 2013, 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. 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 Page 1 of 4 3 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 clairns 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: Automobile Liabilitv 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 Liabilitv 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 Page 2 of 4 0 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. 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 :Keening 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. Page 3 of 4 5 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. 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. 1.3. 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 176 °i St. Seattle, WA 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 1.6. Applicable Law; Venue; Attornev'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 CITY OF TUKWILA Mayor Attest /Authenticated: City Clerk Page 4 of 4 20 CONTRACTOR By: Printed Name: Title: Approved as to Form: Office of the City Attorney A