1968 339- 485 _ 1-8 to 4-15-1968

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`10 Councilman Petersen moved to continue Council's decision on this matter to the next Council meeting (February 26, 1968) seconded by Councilman Rosselli. It was suggested Staff present a general idea of proposed planning for present civic center expansion, and present status of alternate sites still available. Motion carried unanimously on roll call vote. (MINUTE ORDER #68-49) Councilman Rosselli moved to adopt RESOLUTION NO. 5614 APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT FOR OPERATION OF BUS TRANSIT SYSTEM, seconded by Council- man Petersen. City Manager's report to Council advised of the consideration given to proposals submitted by four firms which had indicated an interest in operating the City's transit system; that Staff's analysis of these proposals and subsequent discus- sions held with these firms had resulted in submission of refined proposals, with Servi-Car of Northern California, Inc., being now recommended as operators of the City's transit system with a resultant workable and mutually satisfactory agreement now proposed. His report further noted specific details of the pro- posed agreement concerning term of agreement; operation by policies established by the City; hiring and supervising of employees by the Co., financial operations on collections, and paying of costs of operation by the Company; compensation based on number of total operating hours with a basic rate of $5 per hour,with "cost of living adjustment" clause, which guarantees basic rate will be adjusted annually in proportion to any salary adjustments granted as "across the board" increases for City employees. He also noted in particular the "incentive" clause which had been inserted which might aid company in reducing the amount of subsidy required of the City; starting costs to be furnished by theCity in amount not to exceed $2,000. Wm. C. Rhodes, 82 Wheeler, expressed concern about amount of funds expected to be paid by City and desire for further facts concerning ideas for promotion of the bus system's use. He asked that this contract not be considered at this time unless sufficient planning had been given for promotion of the bus system. Councilman Petersen, as Chairman of Transportation Committee, concurred with concerns expressed as being mutual concerns of both Committee and Council, but advised specifics of contract now proposed by Staff had been reviewed and recommended by Committee. City Manager advised Council had always been advised that the bus system could not be self sustaining and that City would in all probability have to subsidize the system in amount of some $100,000 per year, and authorization had been given that City proceed on this basis. He advised the guarantee of $5.00 per hour from the City covered their operating and maintaining vehicles and if this was not sufficient, City would not be respon- sible, but assumption agreed to by terms of the contract and approved by proposed operators, would indicate giving them a fair compensation for their operational responsibility. Fop 19'68