HomeMy WebLinkAboutAgenda Report - July 16, 2008 K-03AGENDA ITEM KO is
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Discussion and Action on Contracts with Greyhound Lines and
MV Transportation and Adopt Resolutions Related to Greyhound Ticket
Sales as Appropriate
MEETING DATE: July 16,2008
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Discuss and act on contract with Greyhound Lines to consider
1) adopting a resolution amending the contract for ticket sales with
Greyhound Lines and revising the Commission Agreement with
MV Transportation or 2) adopting a resolution terminating the
contract with Greyhound Lines.
BACKGROUND INFORMATION: In January 2006, the City of Lodi entered into an agreement with
Greyhound Lines, Inc., to operate as the authorized ticket agent in
Lodi. Prior to contracting with the City, Greyhound contracted with
another individual for ticket sales within the City of Lodi. The former
ticket agent rented space in the Lodi Multimodal Station North Annex and paid rent to the Transit division.
When the former ticket agent ceased to continue paying the rent, the City Council acted to terminate the
contract for the space which resulted in Greyhound Lines terminating their contract with that ticket agent.
Subsequently, Greyhound Lines approached the City to ascertain if the City would be willing to act as the
contracted ticket agent. Greyhound Lines offered the City the same commission rates as had been paid
to the independent ticket agent.
The current agreementwith Greyhound Lines consists of the City staffing a ticket sales operation
(provided through our Transportation Operations Contractwith MV Transportation, Inc.) and providing the
facility in exchange for a 15% commission on ticket sales at the Lodi Station. This commission has
recently averaged approximately $1,500 a month. In April, Greyhound Lines sent a letter notifying the
City of a reduction in the commission to 9%. Staff contacted Greyhound and noted that the contract
states 15%. Staff requested and has received from Greyhound written request to amend the contract
(Exhibit A) and is hereby presenting this to the Council.
As part of the arrangement to provide Greyhound ticket sales in Lodi, the City amended its contract with
MV Transportation to have MV provide the staffing in return for splitting the commission 7.5%17.5%. The
new contract, adopted June 18, 2008, anticipated the commission staying at 15% and the split remaining
7.5%17.5%. With the requested reduction in the commission to 9%, staff recommendsthat should the
Council amend the contract with Greyhound Lines to reduce the commission, then the contract with
MV Transportation should also be amended to change the commission split to 7.5%11.5%. The proposed
change in the commission split is to preserve the revenue for MV Transportation that is responsible for
staffing the Greyhound service. The ticket service was bid as part of the contract for Transit operations
and the cost presented to the City anticipated MV receiving 7.5% of the commission. The change in the
commission split will reduce revenues to the Transit Fund by approximately $600 per month.
APPROVED:
BI City Manager
K=PITRANSIT1CGreyhound Direction doc 71912008
Discussion and Action on Contracts with Greyhound Lines and MV Transportation and Adopt Resolutions
Related to Greyhound Ticket Sales as Appropriate
July 16, 2008
Page 2
The other option available to the City Council is to terminate the contractwith Greyhound Lines. Should
the City terminate the contract, Greyhound Lines will attempt to find an agent at an alternative location.
FISCAL IMPACT: The two proposed actions will reduce the funding received by Transit by
offering Greyhound service. The loss of commission revenue to the Transit
Fund is anticipated to be approximately $600 per month.
FUNDING AVAILABLE: None required.
F. al�Salin
Public Works Director
Prepared by Tiffani M. Fink, Transportation Manager
FWS/TMFlpmf
Attachment
cc: Tiffani Fink, Transportation Manager
Liz Diaz, MV Public Transportation
Agency #3886 Exhibit A
Location: Lodi, CA
AMENDMENT
This Amendment is made to be effective the i l th of April 2008, by and between GREYHOUND LINES,
INC., a Delaware corporation, ("Greyhound"), and City of Lodi ("Contractor").
WHEREAS, the parties hereto entered into that certain Standard Independent Contractor Agreement
("Agreement") dated January 9.2006; and
WHEREAS, the parties desire to amend the Agreement in accordance with the terms set forth below.
IT IS HEREBY AGREED, in consideration of the premises, the mutual covenants contained herein and
other good and valuable consideration in hand paid, the parties hereto agree as follows:
1. The Agreement is hereby amended by deleting and inserting in its stead the following:
1. COMPANY AGREE§:
A. To pay Contractorthe following commissions:
1. On transportation charges collected by Contractor
from sale of tickets (includingtickets of other bus
carriers operating -under Company approved bus terminal
license agreements), except as hereinafter provided: Nine Percent (9%);
2. On transportation charges collected by Contractor
from the sale of commutation tickets or books or
other multiple ride tickets: Nine Percent (9%);
3. On transportation charges for express shipments,
whether prepaid, collector C.O.D., received from
the consignor at the Facility: Fifteen Percent (15%);
6. On excess baggage charges collected by Contractor: Fifteen Percent (15%):
2. Except as otherwise provided herein, the terms and provisions of the Agreement, as previously modified or
amended, shall remain in full force and effect.
This Amendment is executed to be made effective the day and year first above written.
GREYHOUND LINES, INC.
a Delaware co tion
By. ^ f----- _
Title:
Approved by Legal 2/27/02
CONTRACTOR
Title:
RESOLUTION NO. 2008-144
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT WITH GREYHOUND LINES, INC., TO
REDUCE TICKET SALES COMMISSION
WHEREAS, the City of Lodi (through the City's Transit Contractor,
MV Transportation) has been acting as the authorized agent for Greyhound since
February2006; and
WHEREAS, Greyhound Lines, Inc., has requested to lower the ticket sales
commission percentageto 9%.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute an amendment to the contract with Greyhound
Lines, Inc., to reduce the commission for ticket sales to 9%.
Dated: July 16, 2008
hereby certify that Resolution No. 2008-144 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 16, 2008, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, and Mayor Mounce
NOES: COUNCIL MEMBERS — Hitchcock and Johnson
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
RANDI JOHL
City Clerk
K1111-10 M11
RESOLUTION NO. 2008-145
A RESOLUTION OF THE LODI CITY COUNCILAUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT TO CONTRACT FOR
FIXED ROUTE, PARATRANSIT, AND DEMAND RESPONSE
SERVICESWITH MV TRANSPORTATION TO REFLECTA
GREYHOUNDTICKET COMMISSION SPLIT OF 7.5% MVI 1.5% CITY
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize amendment to the contract for fixed route, paratransit, and demand response
services with MV Transportation to reflect a Greyhound ticket commission split of 7.5%
MV/ 1.5% City.
Dated: July 16, 2008
I hereby certify that Resolution No. 2008-145 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 16, 2008, by the following
vote:
AYES: COUNCIL MEMBERS- Hansen, Katzakian, and Mayor Mounce
NOES: COUNCIL MEMBERS - Hitchcock and Johnson
ABSENT: COUNCIL MEMBERS- None
ABSTAIN: COUNCIL MEMBERS - None
City Clerk
2008-145
CITY COUNCIL
JOANNE L. MOUNCE, Mayor
LARRY D. HANSEN,
Mayor Pro Tempore
SUSAN HITCHCOCK
BOBJOHNSON
PHIL KATZAKIAN
CITY OF LODI
PUBLIC WORKS DEPARTMENT
MV Public Transportation
Liz Diaz, General Manager
24 S. Sacramento Street
Lodi, CA 95240
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODE, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http:\\www.lodi.gov
July 11, 2008
BLAIR KING
City Manager
RANDf JOHL
City Clerk
0. STEVEN SCHWABAUER
City Attorney
F. WALLY SANDELIN
Public Works Director
SUBJECT: Discussion and Action on Contract with Greyhound Lines to Either 1) Adopt
Resolution Amending Contract for Ticket Sales to Reduce Commission
Received and Adopting Contract Amendment No. 1 with MV Transportation
to Modify Commission Rate and Split or 2) Adopt Resolution Terminating
Contract with Greyhound Lines
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, July 16, 2008. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the regular calendar for Council discussion. You are welcome to attend.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand-deliverthe letterto City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Randi Johl, City Clerk, at (209) 333-6702.
If you have any questions about the item itself, please call Tiffani Fink,
Transportation Manager, at 333-6800, extension 2678.
F. Wally Sandelin
Public Works Director
FWSlpmf
Enclosure
cc: City Clerk
NCGREYHOUND DIRECTION.DOC