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5911ORDINANCE NO. 5 911 AN (UN -CODIFIED) ORDINANCE OF THE CITY OF ANAHEIM GRANTING A NON-EXCLUSIVE FRANCHISE TO ANAHEIM TRANSPORTATION NETWORK TO PROVIDE RESORT TRANSPORTATION SHUTTLE SERVICE WITHIN THE ANAHEIM RESORT AND OTHER AREAS WITHIN THE CITY OF ANAHEIM AND STATING THE TERMS AND CONDITIONS UPON WHICH SAID FRANCHISE IS GRANTED. WHEREAS, Section 1400 of Article XIV of the Charter of the City of Anaheim (the "Charter") establishes procedures for the award of franchises by the City; provides that an person, Y firm or corporation furnishing the City or its inhabitants with transportation may be required by ordinance to have a franchise therefor; and further provides that the City Council is empowered to grant such franchises and to establish additional procedures and terms and conditions of such grants; and WHEREAS, the City Council has heretofore adopted Section 1.02.010 requiring any person, firm or corporation furnishing the City or its inhabitants with transportation to have a valid and existing franchise therefor; and WHEREAS, the City has received an application and proposal from the Anaheim Transportation Network, a non-profit Transportation Management Association, ninety-eight percent (98%) or more of whose operations occur within the limits of the City of Anaheim, for a non- exclusive franchise to operate resort shuttle transportation within The Anaheim ResortTM, a copy of which application and proposal shall remain on file in the Office of the City Clerk, is referred to as Exhibit "A" and is incorporated herein by such reference as though set forth at length; and WHEREAS, the City has a significant history of steps to improve the quality, safety, and environmental sensitivity of guest transportation in The Anaheim ResortTM; and WHEREAS, pursuant to mitigation measures imposed on businesses located within The Anaheim ResortTM, property owners/developers of new and/or expanded developments are required to join and financially participate in a clean fuel shuttle program; and WHEREAS, .the Anaheim Transportation Network (ATN) was created in part to improve transportation in Anaheim - with a distinct focus on transportation demand management programs and the creation of a clean fuel shuttle system to serve guests of The Anaheim ResortTM; and WHEREAS, it is in the best interests of the City and is in furtherance of the public health, safety and welfare of the guests and citizens of the City to support and ensure clean fuel shuttle systems not only within The Anaheim ResortTM but also in other areas of the City; and WHEREAS, the City will benefit from such franchise because it will allow the maintenance of a resort standard of transportation service and contribute to successful traffic and air quality mitigation as prescribed in the Anaheim Resort Specific Plan; and WHEREAS, the City Council of the City of Anaheim heretofore reviewed the Application and Proposal for Non -Exclusive Franchise submitted by ATN and considered the information presented therein, and has considered the proposed terms and conditions set forth in the staff reports and recommendations and other relevant information relating thereto; and WHEREAS, the City Council of the City of Anaheim heretofore considered the benefits to the public health and welfare of having a resort standard of transportation available not only in The Anaheim ResortTM, but also in other guest -oriented areas of the City, including, but not limited to, the Arrowhead Pond of Anaheim and Angel Stadium of Anaheim and surrounding areas, the downtown business district of the City of Anaheim; and WHEREAS, pursuant 4E the procedure Jet foi 111 -in Article XI`V 0 the Charter, the City Council did adopt its Resolution No. 2004-33, making certain findings, approving the p g application and declaring its intention to grant a non-exclusive franchise to the ATN to operate resort shuttle transportation within not only The Anaheim ResortTM, but also the Arrowhead Pond of Anaheim, Angel Stadium of Anaheim and surrounding areas, the downtown area of the City of Anaheim and such other locations as may be designated by the City Manager, or his or her nee desi g(hereinafter City Manager"); stating the terms and conditions upon which it was "Franchise"); to grant the franchise (the Franchise,� ); and establishing the date, hour and place when and where any persons having any interest therein or objection thereto could appear and be heard thereon; and WHEREAS, notice of said public hearing was published and otherwise given in the manner required by Article XIV of the Charter; and WHEREAS, on April 20, 2004, the City Council commenced the duly noticed public hearing upon said Proposal and the proposed grant of a Franchise to ATN to operate Resort Shuttle Transportation within not only The Anaheim ResortTM, but also the Arrowhead Pond of Anaheim, Angel Stadium of Anaheim and surrounding areas, the downtown area of the City, and other locations that may be designated by the City Manager, at which public hearing the City Council did hear testimony and consider evidence from persons having any interest in thero osed franchise p p , and did consider any and all objections thereto; and WHEREAS, the City Council hereby overrules all objections to the proposed grant of a Non -Exclusive Franchise to the ATN in accordance with the terms and conditions and subject to the limitations hereinafter set forth; and WHEREAS, the ATN is qualified under the provisions of Article XIV of the Charter of the City of Anaheim and the terms and conditions established pursuant to Chapter 1.03 f . p p o Title 1 of the Anaheim Municipal Code to be granted the requested non-exclusive franchise. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS: SECTION 1. GRANT OF FRANCHISE. The City Council hereby grants a non-exclusive franchise (hereinafter "Franchise" to Anaheim Transportation Network Company (hereinafter "Franchisee") for the operation of clean fuel p and/or pure electric buses, passenger trams and other clean fuel vehicles within The Anaheim ResortTM, the Arrowhead Pond of Anaheim, Angel Stadium of Anaheim and surrounding areas the downtown area of Anaheim, and such other areas as may be designated b the Cit Manager. . y y g Although no limitation on the number of clean fuel vehicles Franchisee operates is specified at this p p time, the City Council reserves the right to place a limit on the number of vehicles should the City Council determine that it is in the best interests of the City to grant franchises to other services ninety-eight percent (98%) or more of whose operations occur within the City of Anaheim. SECT IO��vT 2. T ERNIS AI`s D CONDI T IOI`� S OF FRANCf11SE. The terms and conditions upon which said Franchise is granted, and with which the Franchisee is hereby expressly required to comply, are each of those certain terms,,conditions limitations, representations and requirements as expressly set forth in(i) i the Application and Proposal submitted by Franchisee, Exhibit "A" herein; (ii) the terms and conditions of this Ordinance and (iii) the regulations and requirements for the operation of guest shuttle transportation within The Anaheim ResortTM and other designated areas, as set forth in Exhibit "B", as such Exhibit "B" may be amended from time to time (collectively referred to herein as the "'Regulations") b g }y the City Manager, or his or her designee. The Regulations are incorporated herein by this reference as if set forth in full. The aforesaid documents are on file, and available forp ublic inspection, in the Office P of the City Clerk of the City of Anaheim during regular business hours. If there is a conflict between Exhibit "A" and Exhibit "B," Exhibit "B" shall control. If there are conflicts between or among the provisions of this Ordinance and Exhibit "A" and/or Exhibit "B," this Ordinance shall apply. 1 . SECTION 3. TERM OF FRANCHISE. Upon timely acceptance hereof in accordance with Section 1405 of Article XIV of the Charter, the term of this Franchise shall be for a period of seven (7) years, unless earlier terminated by the City Council. Said Franchise may be extended indefinitely by the City Manager in one (1) year increments upon request of the Franchisee provided the City Manager determines that the Franchise has been exercised in a manner consistent with the Regulations and with the terms and conditions of such Franchise during the initial seven (7) year period and such subsequent one-year extensions. Each annual extension shall be requested in writing by the Franchisee to the City Manager of the City of Anaheim, or his or her authorized representative, not later than thirty (30) days prior to the date of expiration of the initial seven year period and each such additional one year extension thereof. Failure to request any annual extension within the time period specified shall be deemed a waiver of said annual extension. The term of this Franchise shall commence upon the later 3 of either the effective date of this ordinance or the date of acceptance of this Franchise by the Franchisee as required pursuant to Section 1403 of the Charter. SECTION 4. FRANCHISE FEES. Franchisee shall pay a Franchise fee to the City during the life of such Franchise. The amount of the Franchise fee shall be One Dollar ($1.00) per fiscal year. The first payment of such Franchise fee shall be due and payable within thirty (30) days of the effective date of the Franchise. Thereafter, the Franchise Fee shall be due and payable July 1 of each such subsequent year. The payment of Franchise fees to the City by the Franchisee pursuant to this ordinance shall be in addition to any license fee or business license tax prescribed by e thCity. Y SECTION 5. TERMINATION OF NONEXCLUSIVE FRANCHISE BY THE CITY COUNCIL The City Council shall have the right to terminate or to suspend this Franchise for reasons and pursuant to procedures set forth in this Section A notice of intent to terminate this Franchise shall be personally delivered or mailed by certified mail, at the discretion of the City, to Franchisee herein at the iaddress given on the application pursuant to which this Franchise s issued. The notice shall state the grounds for termination and shall give the Franchisee notice of a hearing before the City Council thereon, which shall be convened no more than 15 days after the date of notice unless the time for such hearing is extended by mutual agreement. The hearing shall be conducted and closed, and decision rendered thereon, within 60 days after the date of the notice unless the time therefor is extended by mutual agreement. The City Council shall have the right to terminate the Franchise granted herein, by ordinance, if the City Council finds, based upon a preponderance of the evidence, after a public . hearing, that the Franchisee has failed to comply with any term, condition or other requirement uirement of q the Franchise or that Franchisee has failed to pay the Franchise fees required under this ordinance or has violated any provision of this ordinance granting the Franchise, or any ordinance of the City or any law or regulation of the state or of the United States in connection with the performance of this Franchise or that Franchisee's conduct demonstrates that the Franchisee is unable or unwilling to comply with the terms of this Franchise. In its discretion, the City Council may appoint a Hearing Officer to conduct such revocation hearing, receive such evidence as is properly introduced, take testimony thereon, and render a recommendation to the City Council on the issue before the Hearing Officer. The Hearing Officer shall be a Stipulated Hearing Officer selected by the mutual agreement of thearties b p y alternately striking names from a list of at least seven (7) qualified hearing officers provided b p Y the California State Mediation and Conciliation Service. If the Parties are unable to reach agreement upon the selection of a hearing officer within sixty (60) df notice from the Ci Council of its days onoCity intent to terminate the Franchise, the City Council may appoint an Employee Hearing Officer to serve as the hearing officer. Definitions of Stipulated Hearing Officer," "Employee Hearing Officer," "hearing" and "Hearing Officer" as set forth in Section 1.12.110 of the Anaheim Municipal Code shall apply to this Section 5. At a regularly scheduled meeting held within sixty (60) days following the conclusion of the public hearing, or within sixty (60) days following the issuance of the hearingofficer's i recommendations, f the matter has been referred to a hearing officer pursuant to this Section, the City Council shall by motion adopt, reject or modify the findings of the hearing officer by a vote of no less than three members. If the recommendation of the hearing officer is modified or rejected, ' the Y � re City Council shall determine the issue at that time and may instruct the City Attorney to prepare a proposed written decision in accordance with the action of the City Council. The City Council shall adopt or modify such written decision by motion within twenty-one (21) days of its action requiring preparation of a written decision. The adoption of a dispositive motion by the City Council sna" "�i ne rinat and conclude the administrative process. Notice of the final decision of the City Council shall be provided by certified mail to the Franchisee. Upon termination of this Franchise, Franchisee shall return to City all vehicles Franchisee previously received from City in the condition in which they were received and/or improved with grant -funded betterments, with the exception of normal wear and tear. SECTION 6. TEMPORARY SUSPENSION OF FRANCHISE. The City Manager may temporarily suspend any Franchise without a hearing, g whenever the continued operation by the Franchisee would constitute a danger to public health . safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state or local law. The notice of temporary suspension shall be either (1) personally delivered to the Franchisee at the address on the application pursuant to which this Franchise was issued, or (2) mailed by certified mail to the Franchisee at the address given on the application pursuant to which this Franchise was issued. The temporary suspension is effective upon the earlier of either delivery of said notice or the expiration of five (5) days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for a termination hearing and all other information. The temporary suspension p rY shall remain effective until the decision on termination is made in accordance with thep rocedure set forth in Section 5 above. SECTION 7. NON -ALIENATION OF FRANCHISE. The grant of this Franchise pursuant to this ordinance is a privilege to be held in trust by Franchisee. Such Franchise shall not be sold, leased, transferred, assigned, or otherwise disposed g p of, either in whole or in part, whether by forced sale, merger, consolidation bankruptcy, p y, 61 reorganization under bankruptcy laws or otherwise, without the prior written consent of the City Council. The consent of the City Council shall be subject to such terms and conditions as it may prescribe. Any attempted sale, lease, transfer, assignment or other attempted disposition of this Franchise without the prior written consent of the City Council shall render said Franchise null and void. SECTION 8. CITY INSPECTION AUTHORITY. The Franchisee shall at all times maintain accurate and complete accounts of all revenues and income arising out of its operations under the Franchise granted pursuant to this ordinance, a list of vehicles in use for shuttle transportation, any complaints by patrons and such other information as is necessary to verify compliance with the terms of the Franchise granted hereunder. Franchisee's books, accounts and records pertaining to compliance with the terms of this Franchise shall at all reasonable times be open to inspection, examination and audit by authorized officers, employees and agents of the City. The refusal of the Franchisee to provide the required records for inspection by the City shall be deemed a violation of the Franchise and shall be cause for termination of the Franchise. Any proprietary data provided to the City shall be maintained as confidential to the extent permitted by law. The City shall have the right to enter the premises used by Franchisee or its contractors for the purpose of inspecting and auditing all books and records which pertain to this Franchise and performance by Franchisee hereunder. The City shall also have the right to enter the premises used by Franchisee or its contractors for the purpose of inspecting vehicles that are used to provide services under this Franchise. Neither the exercise of this right nor the election not to exercise this right shall impose any liability of any kind or nature upon City. The City shall notify Franchisee that City representatives are on the premises and City representatives shall be required to comply with any security measures in place on the premises. SECTION 9. RESORT TRANSPORTATION FRANCHISE DECALS REQUIRED. Franchisee shall cause to be affixed to each and every resort transportation vehicle so franchised decals issued by the City's Public works Department. Two decals shall be affixed to each vehicle covered by this Franchise - one on the left front fender and one on the right front fender in a location approved by the Director. Franchisee shall pay the cost of providing and issuing said decals in an amount established by resolution of the City Council. SECTION 10. POWERS RESERVED TO THE CITY. In addition to all other rights reserved to the City under this ordinance or otherwise, the following shall apply. R There is reserved to the City every right and power, and the exercise thereof, which is reserved or authorized by any provisions of any lawful ordinance or resolution of the City, whether enacted before or after the effective date of this ordinance. Neither the granting of this Franchise nor the provisions of this Franchise shall constitute a waiver of or a bar to the exercise of any governmental right or power of the City. The Franchisee shall have no recourse whatsoever against the City, its officers, employees or agents, for any loss, cost, expense or damage arising out of any provision or requirement of this ordinance or of the Franchise issued herein or because of the enforcement of this ordinance. There is expressly reserved to the City the power and authority to amend any section of this ordinance so as to require additional or greater standards on the part of the Franchisee and the power and authority to increase the Franchise fees to be paid by the Franchisee. SECTION 11. INDEMNIFICATION. The Franchisee shall indemnify, hold harmless, release and defend the City, its City Council and each member thereof, and its officers, employees, commission members and representatives from and against any and all liability, claims, suits, costs, expenses, fines, judgments, settlements, charges or penalties whatever, including reasonable attorneys fees, regardless of the merit or outcome of the same arising out of, or in any manner connected with, any or all of the operations or services authorized, conducted or permitted under this Franchise. SECTION 12. INSURANCE. Without limiting City's right to indemnification, Franchisee shall secure prior to commencing any activities under this Franchise, and shall maintain during the term ofthis Franchise, including extensions, insurance coverage as follows: A. worker's Compensation as required by California statutes; B. Commercial Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products/Completed Operations Liability, and Independent Operators' Liability (if applicable), in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form. C. Comprehensive Automobile Liability coverage in an amount of not less than $1 Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form. D. Umbrella/Excess Liability Insurance, in excess of the primary coverages required in Paragraphs B and C of this Section 12, in an amount, when combined with therim p ary coverages required in Paragraphs B and C of this Section 12, shall not be less than Twenty Million Dollars ($20,000,000.00) per occurrence, written on an occurrence form, for Automobile Liability and Ten Million Dollars ($10,000,000.00) for General Liability, per occurrence, written on an occurrence form. E. Each insurance policy required above shall contain the following clauses: "This insurance shall not be cancelled, or limited in scope of coverage, until after thirty (30) s da y prior written notice has been given to the City." F. Each insurance policy required above, except policies for Workers' Compensation, shall contain the following clauses: 1. "It is agreed that any insurance maintained by Franchisee pursuant to this Ordinance shall be primary to, and not contribute to, any insurance or self-insurance maintained by the City of Anaheim. 2. "The City of Anaheim and its officers, agents, employees, representatives and volunteers are added as additional insureds with respect to operation or activities of, or on behalf of, the named insured. G. Prior to commencing any work under this Franchise, including the acceptance of any City -owned vehicles, Franchisee shall deliver insurance certificates confirming the existence of the insurance required by this Ordinance, and including the applicable clauses set forth above. H. Within thirty (30) days of the acceptance of this Franchise by Franchisee, Franchisee shall provide to the City endorsements to the above-requiredolicies, which add to these p _ policies the applicable clauses referenced above. The endorsements shall be signed by an authorized representative of the insurance company and shall include the signator's company affiliation and title. I. Franchisee shall ensure that all Insurance requirements are maintained. J. Insurance required by this Ordinance shall be placed with insurers, and with terms and conditions, acceptable to the City of Anaheim's Risk Manager. The City of Anaheim's Risk Manager is authorized to amend the prescribed minimum levels and standards of liability insurance which must be maintained in order to apply l for to receive and to operate the herein Franchise and the manner in which compliance with the minimum standards is demonstrated. The failure to maintain the minimum levels and standards of liability insurance for any period of time is a violation of this Franchise and shall be sufficientg rounds for 8 temporary suspension or termination of this Franchise. SECTION 13. NOTICES Official notice or correspondence related to this Franchise shall be in writingand sent tot he following addresses. City: City Clerk City of Anaheim, City Clerk's Office 200 South Anaheim Boulevard Anaheim, CA 92805 and City of Anaheim Department of Public Works Traffic and Transportation Division 200 South Anaheim Boulevard Anaheim, CA 92805 (714) 765-5183; Facsimile: (714) 7865-5241 Franchisee: Executive Director Anaheim Transportation Network 201 Center Street, Suite 225 Anaheim, CA 92805 (714) 563-5287; Facsimile: (714) 563-5289 Communications in connection with the performance of duties under this Franchise shall be considered received at the time actually received by the addressee or g designated agent. g SECTION 14. SEVERABILITY. The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence, phrase or word of this ordinance be declared for any reason to be invalid or unenforceable by the final judgment of any court of competent jurisdiction, it is the intent of the City Council that it would have passed all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid. SECTION 15. SAVINGS CLAUSE. The adoption of this ordinance shall not in any manner affect the prosecution for violations of ordinances which violations were committed prior to the effective date hereof, nor be construed as a waiver of any license or penalty or the penal provisions applicable to an violation p y thereof. The provisions of this ordinance, insofar as they are substantially the same as ordinance E provisions previously adopted by the City relating to the same subject matter, shall be construed as restatements and continuations and not as new enactments. SECTION 16. CONFLICTING PROVISIONS Should any portion or provision of this Ordinance conflict with any applicable laws pp regulations or statutes, then the applicable provisions of such other laws, regulations,, or statutes shall prevail. THE FOREGOING ORDINANCE was introduced at a regular meeting of the Cit Council of the Ci of Aril y City Anaheim held on the zday of P , 2004, and thereafter passed and adopted at a regular meeting of said City Council held on the nth day of • 1 1, 2004, by the following roll call vote: T� AYES: Mayor Pringle, Council Members, Chavez, Hernandez, McCracken NOES: N/A ABSENT: Council Members Tait ABSTAIN: N / A ATT T: Z 4fY CLE O THE CITY OF ANAHEIM 49993.3 10 CITY NAHEIM By MAYOR OF THE F ANAHEIM RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network APPLICANT: Anaheim Transportation Network 311 E. Center Street Anaheim, CA 92805 C'ONT'ACT: Laurie Smith - Application submittal and contact Executive Director, Anaheim Transportation Network 31 1 E. Center Street Anaheim, CA 92805 (7 14) 563-5287 CORPORATE STATUS: I he Anaheim Transportation Network is a California Non-profit Corporation, formed on September 28, 1995. Copies of our Articles of Incorporation are in Attachment A, Bylaws in Attachment B, and Corporate Officers in Attachment C. COLLECTIVE BARGAINING AGREEMENTS: I he Anaheim Transportation Network has never had and does not currently have any collective hargaining agreement with any labor organization. FRANCHISE PROPOSAL. — EXECUTIVE SUMMARY: RESORT SHUTTLE FRANCHISE APPLICA'T'ION: Anaheim Transportation Network FRANCHISE PROPOSAL I. Background and Project History Hie City of Anaheim has a significant history of steps to improve the quality, safety, and environmental sensitivity of guest transportation in The Anaheim Resort"'M. In September of' 1994, the Anaheim Resort Specific Plan was adopted. These parameters for the expansion of the Resort area included traffic congestion and air quality mitigation measures that called for the development of a non-profit transportation management association and of a clean Wel guest shuttle system (mitigation measures 3.3-4, 3.3-8, and 3.4-1). Hospitality community �yorkshops conducted during the planning process indicated strong support for the development of a coordinated guest shuttle system. Io nnplcment this mitigation measure and meet the needs of the hospitality community, the City of Anaheim began the process of' creating the transportation management association - who Would act as a suitable administrative entity for the clean fuel shuttle system. Non-profit transportation management associations were being created in many parts of the country to handle similar transportation challenges. Grant funding from Caltrans was obtained and consultants were hired in the Fall of 1994 to begin the formation of such an organization for .Anaheim ]'he Anaheim Transportation Network (ATN) was incorporated as a non-profit California (corporation (501 c(4)) in September of 1995. The City of Anaheim was one of 12 founding member businesses. This local transportation management association was created specifically to facilitate transportation in Anaheim - with a distinct focus on transportation demand management (ridesharing) programs and the creation of a clean fuel shuttle system to serve guests of' fhe Anaheim Resort" I' The ATN is overseen by an I 1 member Board of Directors representing the range of Anaheim business interests. The City of Anaheim has held a seat on the ATN Board since its inception. Atter two years of organizational development, the ATN began active work on the creation of the clean fuel shuttle system in the Fall of 1997. For several years, the ATN led the hospitality community in a series of workshops, task forces, and public planning sessions designed to clarify the community's transportation needs and expectations. During much of this time, the ATN was under contract to the City of Anaheim to lead various aspects of the planning and development process. "Fhe City of Anaheim also worked cooperatively with the ATN to help obtain funding to capitalize a clean fuel fleet. In the fall of 2000. the ATN began a competitive procurement to select an operator for the clean fuel guest shuttle system now called the Anaheim Resort Transit (ART) system. Pacific Coast RESORTSHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network Sightseeing (Coach t!SA) was selected in the spring of 2001 as the ART operator (please see attachment G for �t complete copy of the ATN -Coach USA Contract. By early spring of 2001, S8.2 million had been raised in capital and planning funding. No municipal general funds were spent, but this figure includes approximately S2 million in funding from the Anaheim Public Utility's competitive Advantage Anaheim program. Bus purchasing "as completed and the initial 27 clean fuel vehicles were on their way to Anaheim. The City of Anaheim owns 12 of the vehicles 2 electric trams designed to serve the Anaheim Convention Center and 10 electric 2246ot shuttle buses. The remaining vehicles (propane) were brought to the table in partnership by Coach USA; with incremental and fueling station funding assistance obtained by the ATN. On May 15, 2001 the City contracted with the ATN to create and administer the clean fuel shuttle system (City o/ Anaheim/.Anaheim Transportation Network Contract Agreement — I naheim Resort Transit Fleet). Under the terms of this contract, the ATN leases the 12 clean fuel vehicles owned by the City. In June of 2001, the ATN began electric tram service at the Anaheim Convention Center. This was the first component of the ART system. Initial operational funding was obtained by the City of Anaheim through a Measure M grant. I hroughout 2001, the ATN worked with the hospitality community to finalize ongoing operation and maintenance funding for the rest of the ART system, and to fine tune service level expectations. In previous years, the ART system had been configured as a fare -based system. In 1001 the community spent considerable time examining the option of creating an assessment district to fund operation of the clean fuel shuttle system. Planning funds were obtained from the Landscaping and Lighting Benefit Assessment District (CHECK NAME) and the City retained the services of Muni Financial (formerly Willdan and Associates) to help create the assessment scenarios Considerable progress was made towards the final selection of an equitable assessment district formula for operation of the ART system, and a late 2001 assessment ballot was expected. The events of September 11, 2001 changed this. With the timetable for economic recovery uncertain, and the hospitality community facing significant hardships, the community realized that the assessment funding model did not have the flexibility needed to support economic recovery. In the early spring of 2002. the ATN board went back to the fare -based operational model for the ART system and worked to renew community support for this option. On May 24, 2002 the AR f system debuted with 8 routes, 25 vehicles, and contracts to serve the guests of 51 hotels (57 Lit the time of this tiling) in The Anaheim Resort'". Please see Attachment H for a system map v� hich clearly identifies all routes and stop locations. In it's tirst summer of operations. the ART system received strong positive reviews from Anaheim guests, the hospitality community, and the press. The ART standard of service excellence has quickly become an integral part of The Anaheim Resort'"' experience. 3 RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network I he Anaheim Transportation Network wishes to ensure that the highest standards for guest shuttle transportation continue to be met in The Anaheim Resort""'. Therefore, we respectfully request that the Cit\, of Anaheirn assist us in meeting this goal by awarding the ATN a franchise for the ART guest shuttle system. Specific details of our request are outlined below. II. Franchise Request A. Reason for Request "I lie Anaheim "Transportation Network (ATN) is seeking a Franchise from the City of Anaheim, under the terms of Chapter 1.02 Franchises, Anaheim Municipal Code. We are seeking this franchise for the following reasons: Maintaining a resort standard of transportation service helps to protect the substantial investment made by the City of Anaheim and it's business community in upgrading The Anaheim Resortm. The City has recently raised the bar of service for taxis in Anaheim, using the franchise tool to set strong standards and requirements for taxis. Guests moving about the resort in shuttles should expect no less. In order to be a first class destination, first class transportation services are essential. Successful traffic and air quality mitigation, as prescribed in the Anaheim Resort Specific plan, requires a single transportation standard to be effective. All guest shuttle vehicles should meet the standards of service developed as part of the ART clean fuel shuttle service in order to truly mitigate the adverse air quality impacts resulting from guest transportation. Replacing one polluting diesel shuttle is good - replacing all polluting diesel shuttles is true mitigation. In addition, congestion mitigation can only be obtained by avoiding service duplication and creating efficiency on the streets of The Anaheim ResortTM, The requirement to possess a valid franchise for transportation services is clear and unequivocal in the Anaheim City Charter and the Anaheim "Transportation Network is contractually bound to be in full compliance with all such requirements of the City of Anaheim. B. Type 'I he ATN is seeking a non-exclusive franchise for the operation of guest shuttles in Anaheim. We propose to define guest shuttling as the provision of scheduled or on - demand transportation on City streets, to or from Anaheim event centers, for more than one day, and with vehicles of 7 or more passengers. This category of transportation would specifically exclude taxi service, interstate transport carriers, special one -day events, and airport transportation. 4 RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network e request that the franchise be awarded to the Anaheim Transportation Network, as the responsible administrative entity for the ART guest shuttle service. \b c respectfully request that any future franchise granted for guest shuttle services in Anaheim include specific perfonnance standards and other requirements at least equivalent to that proposed herein for the ART service. Term franchise term of seven (7) years is requested; to correspond with the expected effective service life of the City owned electric trams and buses. The term could be extended an additional one (1) year after each of the initial seven years of the franchise Lip to a total often (10) years, if the ATN continues to meet the standards of service excellence set forth in this proposal. I). Service Territory Hie franchise service territory requested is the City of Anaheim. L. Vehicle Specifications The ATN seeks franchise permits to operate up to 50 vehicles on Anaheim streets. Vehicle size will vary from 22 -foot shuttles to 45 -foot coaches. Current operations include on average 2 electric 68 -passenger trams, 10 electric 22 -foot shuttle buses, 1 1 propane 39 -foot trolleys, and 4 diesel 39 -foot trolleys. The additional vehicles will be used to support growing demand and additional routes on an as -needed basis. III. Proposed Franchise Service Standards I he standards of guest shuttle service excellence initiated by the ART service during this inaugural season are the backbone of our request for a transportation franchise from the City. We have tried to raise the bar for our guests, and anticipate that these standards will be incorporated into our requirements. Please note that these standards are high, but not impossible to meet - the ART guest shuttle service currently meets all of the following requirements. In order to ensure that this remains true, these service standards are incorporated into the ATN's operator contract (full details can he found in Attachment G) and our service contracts with Anaheim hospitality establishments (a sample can be found in Attachment I). Additional information and reporting is referenced below. ti here necessary to demonstrate compliance. A. Customer Service Standards Service Area — Franchisee shall provide service to all Event Centers in The Anaheim ResortTm. Event Centers are defined to include the RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation ,Network Anaheim Convention Center, Disneyland, Disney's California Adventure, and any additional attractions as designated by the City of Anaheim. ART provides service to all Event Centers in The Anaheim Resort Im.. Please see Attachment N for a copy of'our service map demonstrating the A1?7'service area. 2. Hours and Frequency of Service — Franchisee shall provide service to Event Centers in The Anaheim ResortTm beginning one hour before Event Centers open and end the service no earlier than 30 minutes after Event Centers close. Service shall be provided no less frequently than 10 minutes during peak times and 30 minutes during off-peak times. ART service meets the above service standard. Please see Attachment H for a sample Service Schedule, as distributed to all participating properties. 3. On -Time Performance - Franchisee shall maintain at least 95% on- time performance. Missed trips will be defined as documented wait times exceeding the posted frequency (i.e. 10 -minutes during peak times), with the exception of unavoidable unusual traffic delays or other unforeseen operational challenges. AR7'service has maintained a _% on-time performance record during the first 3 months of operation. Please see Attachment P for service record documentation. 4. Capacity Management — Franchisee shall demonstrate the ability to handle peak demand periods up to 20% over typical month ridership statistics. The ART operator contract requires than supplemental back-up buses be available to handle over -capacity events or days. Please refer to Attachment G, the ART operator contract — Section 7.D., on page 6 and Scope Section 3.F on page 35.f6r the contractual requirements that ensure the availability of supplemental buses. The ATN selected Coach USA as their operator, in part because of the national resources that could be drawn on. 1)uring system start-up this summer drivers and buses were obtained fi-om Arizona and Los Angeles on several occasions to supplement the ART system. 5. Complaint Resolution — Franchisee must have in place a complaint procedure that includes a log of all complaints received, date and time of complaint, response, date and time of response, results of investigation, action taken, and any written communications. All RESORT SHUT'T'LE FRANCHISE APPLICATION: Anaheim Transportation Network complaints received in writing must be responded to in writing within five business days with at minimum an acknowledgement of complaint, complaint status, and expected time to resolve. All complaints received by telephone must be logged. All telephone complaints of a serious nature must be responded to in writing. Please sec' Attachment Q./or a copy of the ATN complaint resolution policy and tracking forms. Attachment G, Operator Contract, Scope Section 1-B., page -iU details the ART Operator's contractual require memr s lot- complaint handling. B. Environmental Standards Clean fuel vehicles - Franchisee must meet the intent of the mitigation measures in The Anaheim Resort Specific Plan and operate clean fuel vehicles. Clean fuel is defined as electric, propane, liquefied natural gas, compressed natural gas, or fuel cell vehicles. Gasoline, diesel, or any hybrid using gasoline or diesel do not meet the requirement for clean fuel vehicles. Clean fuels must power at least 75% of the Franchisee's Resort Guest Shuttling fleet at the time of franchise award, with 100% clean fuel vehicles in regular operations achieved within 1 year. The AR7' fleet has alreadv achieved this standard of clean fuel operations, using a fleet that was SYS'% clean fuel upon inception (Out of 27 vehicles - ? electric trams, 10 electric buses, and 11 propane trolleys were used). Pleasc see the clean fuel utilization report in Attachment R. Fueling - Franchisee must demonstrate ability to obtain clean fuel resources in a timely and reliable fashion. ART fueling is done with on-site chargers and a propane fueling station with days storage capacity. A long-term contract for propane delivery is maintained by the ART Operator, with Mutual Propane. Please sec Attachment S for copies of the charging and fueling station permits and supply contract 3. Traffic Mitigation - Franchisee shall use a fare structure that encourages use of the Guest Shuttle system. The ART sestem utilizes an unlimited use day pass fare structure which encourages multiple trips. This type of'system helps to fulfill the traffic congestion mitigation requirements o/ the Anaheim Resort Specific Plan. I'lease sec Attachment 11 for the fare structure of the ART system, as demonstrated by the system map. 7 RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network Vehicle Standards Vehicle Age - Franchisee must ensure that all vehicles entering into guest shuttle service must be no more than one model year old. No vehicles may be in service that are more than seven (7) model years of age. Please see Attachment T for a complete breakdown of the ART fleet. Vehicle appearance — Franchisee will ensure that all vehicles will be decorated with a common theme that matches aesthetic design schemes of The Anaheim Resort. All painted surfaces shall be in good condition. Normal wear and tear to the finish is to be expected, but paint is to be maintained at a high level of finish throughout the franchise period in order to present the best possible image to the public. All painted surfaces shall be free from graffiti and scratches, and there shall be no perceivable difference in gloss or shades of individual colors. It shall be the responsibility of the Franchisee to assume all costs associated with painting the vehicles to these standards in regard to fading or discoloration from wear and tear. Please see .Attachment H for a visual ofthe ART bus theming and Attachment G for details of the appearance standards the ART Operator is contractualh., bound to maintain (Scope, Section] 2, page 46). Maintenance — Through a Preventive Maintenance program, the Franchisee shall cause all components of each vehicle including its body, frame, furnishing, mechanical, electric, and hydraulic or other operating systems to be maintained in proper working condition free from damage and malfunction. The Franchisee shall be responsible for keeping a vehicle file by vehicle number, documenting all vehicle maintenance to include Preventive Maintenance, scheduled maintenance and inspections, parts usage, unscheduled maintenance, energy usage, and labor expended on each vehicle. The Franchisee is responsible for keeping the vehicle file current. The Franchisee shall be responsible to ensure that a vehicle defect report is completed daily by the driver on each vehicle prior to daily service. Any significant vehicle damage caused in any accident or otherwise shall require the Franchisee to immediately repair such damage, which is determined to impair safe mechanical operation of the vehicle. Please sec Attachment U for the ART Preventative Maintenance program and reporting forms. M RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network 4. Cleanliness - The Franchisee shall cause, on a scheduled basis, each vehicle to be maintained in a clean condition throughout, both interior and exterior. The Franchisee shall ensure the cleanliness of each vehicle prior to the commencement of each service day. The exterior of each vehicle shall be kept clean form road dust, mud, tar, grime, and graffiti. The vehicle exteriors shall be washed daily when in service and within twenty-four (24) hours after each rainfall or any other condition affecting vehicles exterior appearance. The interior of each vehicle will be thoroughly cleaned daily. This complete cleaning shall include, but not be limited to, ceiling, walls, area behind the seats, floors, driver area, ancillary equipment, and windows. Seats should be cleaned regularly and marks and stains removed promptly. Seats that are worn, excessively stained, or torn must be repaired or replaced. The interior shall be maintained free from any vermin at all times. The Franchisee is expressly prohibited from using any vermin control products or application procedure for such project that would be hazardous to the health and well being of the passengers and driver of such vehicle. "The interior passenger compartment of each vehicle shall be free of noxious odors from cleaning product and vermin control products. Please see Attachment V for a copy of the ART cleaning contract. Graffiti - The Franchisee shall remove all graffiti from the vehicle as soon as it is found, or as soon as it is practical at the end of the day or before it goes in service the next day. If the graffiti is offensive or vulgar and cannot be removed, that vehicle shall be taken out of service immediately. No vehicle shall start revenue service with graffiti on any surface of the vehicle. If graffiti is etched or scratched into glass or insert, that glass or insert must be repaired or replaced before the vehicle is placed back into revenue service. Please Attachment C, for details of the appearance standards the ART Operator is contractually bound to maintain (Scope,Sectionl2, page 46). ffie welcome your inspection of any ART vehicle during any service day and are confident that they will maintain Resort Quality appearance. 6. ADA compliance - All vehicles in the Resort Guest Shuttling fleet are wheelchair -accessible and meet Federal ADA standards. All vehicles must be outfitted with internal electric signs and an audio system to visually display all stop names and to aurally identify all stops. All vehicles must be outfitted with external electric signage on the front and curb side to identify route and destination. l;ach vehicle in the ART fleet is wheelchair accessible. Visual and audible stop annunciation equipment is being selected and will be installed prior 9 RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network to issuance of the requested franchise. Please see Attachment T./or Vehicle Specifications. Advertising — In order to maintain a professional appearance and a common Resort theme, no exterior advertising is permitted on any Resort Guest Shuttling vehicle. Approved decals of the agencies responsible for the funding of the project and required licensing/permit information will be permitted on vehicle exteriors. The Franchisee shall not affix and shall not permit to be affixed to the interior or distributed within any vehicle any political materials, and shall not utilize or permit to be utilized any advertising of tobacco and/or alcohol products and/or all and any advertisements they may be inappropriate in a family oriented vacation destination environment. Please see Attachment H for a visual of the ART bus, with no racks or placement of any exterior advertising, and Attachment G for details of the advertising standards the ART Operator is contractually bound to maintain (Scope,Sectionl0. EI -'&G, page 40). Again, we invite field inspection to demonstrate our compliance with this important Resort standard. D. Personnel Standards Qualifications - All drivers will maintain a current California Class A or Class B commercial driver's license with both air brake and passenger endorsements, and maintain a current Medical Examiner's Certificate (DL 51); will conduct daily pre -trip and post trip vehicle safety inspections; and will complete annual refresher training on safety procedures and ADA procedures. All drivers will have the ability to follow written and oral instructions in English; write reports in English; and speak English sufficiently to deliver a clear and engaging narration to Resort visitors. Drivers will be aware of basic resort features and operating details and shall answer guest questions in a friendly and positive manner. All repair work must be performed by maintenance personnel who have demonstrated experience and skills in the work to be performed. All mechanics must possess a valid and current ASE certification in all relevant categories pertinent to the mechanic duties, including preventive maintenance inspections, within twelve (12) months of beginning maintenance work on Resort Guest Shuttling vehicles. The Franchisee's maintenance personnel will have knowledge of and certification in diagnostic procedures, electrical systems, brake systems, and related mechanical parts, methods, and procedures 10 RESORTSHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network normally used in servicing mechanical equipment for transit vehicles and over the road coaches. Please sec.! Itachmcnt W for a summary personnel record of all current CART drivers and mechanics. The ART operating contract also requires that these standards be met -- please see Attachment G, Scope, Section 17, page S 1). 2. Training - All drivers and Resort Guest Shuttling related staff will attend and complete customer service training that is equal to the caliber of what is offered at the Disney University, and will at all times employ the techniques presented at such training to a level consistent with that of a world class resort. All personnel are responsible for knowledge of the service system design, including the routing and stops, fare policy, schedules, access to major attractions, and regional service connectors, ADA requirements as it relates to stop announcements and physically challenged passengers, etc. Resort Guest Shuttling personnel must maintain a courteous attitude, answering to the best of their ability any passenger questions regarding the provision of service, or of the Resort. Personnel must also report all passenger complaints and operational problems to management staff. Please see Attachment X for a training program required of all drivers. The ART operating contract also requires that these standards be met - please see Attachment G, Scope, Section 19, page 40). 3. Appearance - All drivers will be neatly groomed and outfitted in an official uniform, including name tag. All drivers must report to the Dispatcher before starting their shift and at the end of their shift, to ensure that all appearance and uniform standards are met. Absolutely no smoking will be allowed by drivers in Resort Guest Shuttling vehicles or in close proximity to the vehicle entrance or within eyesight of guests. Please sec :Attachment X ,for the ART operator appearance standards. T he ARToperating contract also requires that these standards be met please see Attachment G, Scope, Section 19, page 40). 4. Supervision - Drivers will be supervised. Field Supervisors will be physically present in The Anaheim Resort during 100% of Resort Guest Shuttling operating hours to monitor and ensure driver quality and performance, and to ensure the smooth operation of all Resort Guest Shuttling. RESOR F SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network !'lease sec the attached .AK7supervision and staffing schedule in Attachment Z. h.. Operational Standards Dispatch 24 hours Communications - The Franchisee shall provide and install a radio communications system that will allow for timely and efficient dispatching, coordinating, and responding to necessary service calls. The system may be of the Franchisee's choice, but must include the necessary performance elements of the system. Each Resort Guest Shuttling vehicle, as well as each administrative vehicle, shall have a receiver/transmitter installed and operational. In addition, hand-held mobile units shall be provided for all street supervisors, vehicles with temporarily inoperative radios, Parking Operations Office at the Anaheim Convention Center, and other personnel, as needed. The radio system is to be used for operational purposes only. No advertising shall be permitted on the radio system. Vehicles will not be operated in Resort Guest Shuttling service without a functioning radio in the vehicle. Franchisee shall at all times have operating hand-held radios or other communication devices available for distribution to drivers whose vehicle communication systems are inoperative. if a radio fails while in service, the driver shall notify the dispatcher by landline or through another driver, and a hand-held radio shall be dispatched to the driver without delay. I. plans to handle peak times (summer, holidays, conventions). 4. Dwell time at stops S. Operational procedures for sharing bus bays and pickup locations 6. Record keeping 7. Reporting F. Monitoring Standards 1. Customer satisfaction surveys 2. Myster rider program 3. Audits G. Safety Standards Cashless operations Insurance and Indemnifications - Franchisee must maintain auto insurance coverage levels of at least $25 Million per occurrence for all Resort Guest Shuttling vehicles, and general liability insurance of at least $10 Million. 12 RESORTSHU'T'TLE FRANCHISE APPLICATION: Anaheim Transportation Network 3. Operational Safety IV. Qualifications A. Proposer Experience he Anaheim "transportation Network is a stable non-profit corporation in good standing NA ith the state of California. Our long track record of contract performance with the City of Anaheim demonstrates a thorough understanding and practice of the management, operational and fiscal traits and policies required to meet the requirements of our proposed franchise. 'I hroughout our seven years of operation, we have had a significant number of local, regional, state, and federal grant awards for transportation projects. The Anaheim "Transportation Network has met all obligations of each of these funding awards, including successful completion of all audits and monitoring. J lie .Anaheim Transportation Network is a substantive entity, even without the ART guest shuttle programs. We offer a wide range of transportation demand management (ridesharing) and Welfare to Work programs and services. Our current non -ART fleet includes H leased electric Toyota RAV4 SUVs deployed as station cars. Please see Attachment J for a listing of ATN project references. In addition to the ATM's experience in transportation programs, we have selected a strong operator with significant guest shuttle experience in the City of Anaheim. Please sce ,Attachment K for a summary of our operator's experience and qualifications. This summary includes a listing of all current drivers, whether they are full or part time, and their years of experience. "I lie ATN's professional management team is led by Executive Director Laurie Smith, who has 10 years of experience in association management. Transit Operations Manager Dave Raley brings 30 years of transit operations experience to the ATN. Dave's primary responsibilities include operator performance monitoring and guest customer service. 'I lie ATN Board of' Directors bring a diverse, experienced guiding hand to the ATN efisuring that all needs of the Anaheim business community and our guests are recognized Please see Attachment 1_ for key staff resumes and Attachment C for a listing of the Board of Directors. B. Financial Stability Audited balance sheets, cash flow and income statements are provided in Attachment M. "I liese documents were prepared as described by generally accepted accounting principals fi)r the most recent 3 vears. 13 RESORT SHUTTLE FRANCHISE APPLICATION: Anaheim Transportation Network The ATN is not party to any pending litigations, fines or enforcement proceedings by other cities or public entities nor are they involved in any bankruptcy filings. A projected 3 -year cash flow analysis is found in Attachment N, including projected operating expenses assuming award of the requested franchise. OKAY - I NEED A STATEMENT HERE ABOUT OUR INSURANCE AND BONDING CAPABILITY. WHAT LANGUAGE IS TYPICAL FOR THIS? ( Anticipated Ability to Meet and Maintain Performance Standards Demonstration of the ATN's ability to meet and maintain performance standards is discussed or referenced above for each Service Standard. During the first 3 months of operation, percent of ART operations occurred within schedule parameters. "I he service standards proposed are met with the current number of vehicles in service. Please see the attached vehicle assignment outline in Attachment O as a demonstration of this capacit%. V. Conclusion Benefits to the issuance of a franchise 14 EXHIBIT B REQUIREMENTS FOR OPERATION OF FRANCHISED RESORT TRANSPORTATION SERVICES Franchisee's Application and Proposal submitted December 12, 2002, is hereby incorporated herein by this reference as though set forth at length and shall be referred to as Exhibit "A" on file in the Office of the City Clerk. Franchisee shall operate its Franchise in conformance with this Franchise Ordinance, Exhibit "A" and this Exhibit "B" and shall not permit operation of any resort transportation vehicle under its ownership or control, except in accordance with the Exhibit "A", this Exhibit "B" and the Franchise Ordinance. Where the requirements set forth in this Exhibit "B" conflict with the requirements set forth in Exhibit "A," this Exhibit "B" shall apply. i . Each resort transportation vehicle franchised hereunder shall display all permits issued Franchisee shall maintain a minimum of ten (10) electric vehicles, two (2) electric trams and twenty-five (25) propane trolleys owned and operated by Franchisee. 2. Each resort transportation vehicle shall have prominently displayed in the passenger compartment a schedule of rates and charges, the driver's name and address, the owner's name, address and telephone number and the resort transportation identification number. 3. - No resort transportation vehicle shall be operated unless the passenger compartment is in a clean and sanitary condition. 4. The name or trade name of the owner must be stenciled or painted upon the outside of each resort transportation vehicle. 5. Drivers of Resort Transportation Vehicles. 5.1 No driver shall operate a resort transportation vehicle for more than twelve consecutive hours nor shall any driver operate a resort transportation vehicle without having had, immediately preceding such twelve hours of operation, no less than eight consecutive hours time off within the previous sixteen hours during which no resort transportation was operated by such driver. 5.2 Drivers shall maintain a supply of receipts for use by passengers. 5.3 A driver shall not leave his or her vehicle to solicit passengers. 5.4 All drivers must maintain a current California Class A or B commercial driver's license with both air brake and passenger endorsements, Medical Examiners Certificate (DL5 1), be able to conduct pre -trip and post -trip safety inspections, and complete annual refresher training, safety procedures, and ADA procedures. Franchisee must show proof of participation in the DMV Pull Program. 6. Personnel 6.1 All personnel coming in contact with the guests shall undergo alcohol and drug testing programs and pre-employment testing. 6.2 Training. All drivers, mechanics, and other personnel dealing with guest transportation services shall complete customer service training, empathy training, and training on the ADA procedures and requirements. 6.3 Safety. Franchisee shall ensure that its contractors, employees, drivers and other personnel abide by Franchisee's written Safety Programs. Franchisee's Safety Programs shall, at a minimum, comply with applicable Federal regulations of the Occupational Health and Safety Administration, an any amendments thereto, as well as any other pertinent Federal, state, and/or local safety or environmental laws, codes, rules or regulations. 6.3.1 Franchisee shall ensure that regular and continuous formal safety instruction for all personnel assigned to perform any activities under this Franchise is provided and shall require them to attend regularly scheduled meetings at least four times per year, or more frequently, as may be deemed necessary. 6.4 Appearance. All personnel coming in contact with guests shall be neatly groomed and outfitted in uniforms, including nametags. 7. Resort Transportation Vehicles. No resort transportation vehicle shall be operated in a manner that violates the terms and conditions of this ordinance granting the Franchise or the representations made and commitments undertaken in the Franchisee's application for its Franchise. 7.1 Vehicle Age. All vehicles proposed to be used for guest transportation service shall be no more than three (3) model years old at the initiation of service into the fleet and may not be in service for more than seven (7) years. 7.2 Vehicle Appearance and Graffiti. All painted surfaces of guest transportation vehicles shall be in good condition. Normal wear and tear is acceptable. All surfaces shall be free from graffiti and scratches with no perceived differences in gloss or shades of individual colors. The City of Anaheim franchise and clean fuel vehicles decals shall be clearly displayed on all vehicles at all times. 2 7.3 Maintenance. Preventive Maintenance Program (PM) shall be performed every 3,000 miles or 30 days, but not less than 45 days, whichever occurs first. All maintenance work shall conform, but not be limited to, the requirements of Title 13 Article 6 of the California Vehicle Code. All maintenance work shall bep erformed by personnel with valid and current ASE certification in all relevant categories pertinent to mechanics duties, including PM inspections, within six (6)months of Franchise award and thereafter throughout the term of this Franchise. 7.4 Cleanliness. Exterior surfaces of each vehicle shall be kept clean of road dust, mud, tar, grime, and graffiti, or any other condition that may affect vehicle exterior appearance. Vehicle exteriors must be washed at least every three (3) days and within twenty-four (24) hours of rainfall. All graffiti must be removed as soon as it is found. 7.5 ADA Compliance. Franchisee shall ensure that all vehicles providing guest transportation service meet the provisions of the Americans with Disabilities Act of 1990, (P.L. 10 1 -336) and Section 504 of the Rehabilitation Act of 1973 (P.L. 93-112 and implementing regulations set forth in 49 C.F.$., Parts 37 & 38, at the time of the Franchise award. 7.6 No Advertising. No resort transportation vehicle may display advertising. g 8. Transportation service shall be available to all event centers located in the City of Anaheim as designated by the City Manager, or his or her designee, including but not limited to Disneyland, Disney's California Adventure, Downtown Disney and the Anaheim Convention Center. 9 - Franchisee agrees to make available to major employers in The Anaheim Resort who are required to comply with Ride Share requirements and who contract with Franchisee for resort shuttle transportation, daily pickup and delivery of employees who work within The Anaheim Resort and live within the City of Anaheim within a three-mile radius of The Anaheim Resort. 10. Franchisee shall meet event centers operating schedules. At minimum, transportation service shall be o 1p • Aerated on a one-half ( /2) hour basis for the duration of the event center's operating p g hours. Service shall begin a minimum of one-half (V2) hour before event center opening and finish p g no earlier than one-half (1/2) hour after event center closing. Operating schedules shall be available and provided to the guests. 11. Franchisee shall maintain a minimum of 95 percent on-time performance record. 12. Franchisee shall meet peak season and time -of -day transportation service demands up to 10% over historic rider -ship (past 12 months). 13. Franchisee shall establish a guest complaint resolution process. 3 14. Franchisee shall meet the intent of The Anaheim Resort, Disneyland Resort, Hotel Circle, and Stadium Business Center Specific Plans to procure vehicles from the AQMD approved Clean Fuel list of certified low emission vehicles. 15. Franchisee shall operate the clean fuel fleet of vehicles for guest transportation services. Clean fuels shall power at least 75% of the fleet within 12 months of the Franchise award and 100% of fleet within 18 months of the Franchise award. Clean fuels may include: Compressed Natural Gas, Liquefied Natural Gas, Propane, Fuel Cell, Electricity, and Hybrid engines. Vehicles shall display appropriate decals clearly indicating clean fuel type. 16. Franchisee shall obtain access to the clean fuel infrastructure necessary to maintain operation of the vehicles. 17. Franchisee shall provide proof that the proposed guest transportation service is NOT duplicative in nature to the service(s) already rendered. This proof will demonstrate that traffic congestion will not be increased within the City by operation of this Franchise. 18. Dispatch 18.1 Dispatch shall be available during transportation service operations 18.2 A two-way communication devise shall be installed and available on all vehicles providing guest transportation service. 19. Record Keeping. Driver records, maintenance records, accident reports, and other pertinent information related to the operation of guest transportation services shall be maintained for length of the franchise award and shall be made available upon request to City. 20. Annual Reports. Annual reports shall be submitted and shall provide operational data as outlined in this Franchise. 21. Stop Locations. An exhibit/map of the proposed transportation service routes and public bus stop locations shall be provided by Franchisee for approval by City Manager, or his or her designee. Proposeduse of public bus stops is not guaranteed and will be approved on a case-by- case y case basis based on existing usage and potential future impact. 22. Financial Controls. Financial data shall be kept in accordance with accepted general accounting principles. 22.1 Audited financial statements for the past three years shall be maintained for review by City of Anaheim. 4 23. Evaluation. Ongoing guest satisfaction evaluations shall be provided by the Franchisee. Findings shall be provided in the annual reports. 24. Auditing. With reasonable notice, the City may audit necessary records with regard to the service provision. Audit of records may include, but not be limited to, personnel records, maintenance records, statistical data, invoices, materials, and other data related to all matters covered by the Franchise. 25. Passenger Safety. All personnel coming in contact with the guests shall undergo alcohol and drug testing program and pre-employment testing. All statutory references concerning testing shall be in compliance with the Federal Motor Coach Safety of Transportation, Subtitle A - Office of the Secretary of Transportation PSMP 40 (procedures for transportation work place drug testing programs) and Subchapter B -Federal Motor Carrier Safety Regulation, PSMP 382 (Controlled substances and alcohol use and testing). 26. Insurance. Comprehensive general liability coverage of $25 million per occurrence and general liability of $10 million. 27. Franchisee shall demonstrate ability to sustain and maintain proposed level of service and vehicle capacity to meet demand for transportation services. 28. Franchise shall not become effective unless and until all of the following requirements have been satisfied: 28.1 This Ordinance granting the Franchise is effective. 28.2 Franchisee has certified that it operates exclusively within the limits of the City of Anaheim 28.3 Franchisee has provided a timely letter of acceptance as to all the terms and conditions established by the City Council for granting this Franchise. 28.4 Franchisee has provided an up to date and complete list of the vehicles to be used to perform the services by registration or license number and the personnel assigned thereto as of the date of Franchisee's acceptance of this Franchise. 28.5 Franchisee has provided evidence of compliance with the insurance requirements and any other terms and conditions of this Ordinance and any other term and condition of operation incl p included within the Regulations or imposed by the City Council, the City Manager or the Chief of Police. 29. Should any of the insurance requirements in this Exhibit B be in conflict with any provisions in the Ordinance, the more stringent provision shall apply. 5