Agenda 04/24/2012 Item #16A 94/24/2012 Item 16.A.9.
EXECUTIVE SUMMARY
Recommendation to approve and accept the assessment of liquidated damages to
Tectrans/Keolis Transit America in the amount of $5,500 for noncompliance of the Drug
and Alcohol program as required by Collier County and the United States Department of
Transportation (US DOT) and Federal Transit Administration (FTA) regulations, as
defined in Title 49 Code of Federal Regulations (CFR), Parts 40 and 655.
OBJECTIVE: To approve and accept the assessment of liquidated damages to Tectrans /Keolis
Transit America in the amount of $5,500.00 for noncompliance of the Drug and Alcohol
program as required by Collier County and the United States Department of Transportation (US
DOT) and Federal Transit Administration (FTA) regulations, as defined in Title 49 Code of
Federal Regulations (CFR), Parts 40 and 655.
CONSIDERATION: As part of the contract oversight function, the Alternative Transportation
Modes staff conducts a quarterly review on CAT operations. The review includes, but is not
limited to, an assessment of the Drug and Alcohol (D &A) testing program to ensure compliance
with the program as required by Collier County and the United States Department of
Transportation (US DOT) and Federal Transit Administration (FTA) regulations, as defined in
Title 49 Code of Federal Regulations (CFR), Parts 40 and 655.
Although Tectrans complied with the monthly D &A testing of its employees and submitted all
required monthly compliance letters to the County for its employees as required by Tectrans'
contract with the County, the company falied to supervise and ensure that one of its
subcontractors complied with the Drug and Alcohol program. On March 14, 2012, during the
County's quarterly Drug & Alcohol oversight review, it was discovered that one of the Tectrans'
subcontractors, E -Z Journey, did not perform any drug and alcohol test on its operator for a
period of eleven months (April 2011 to March 2012). Tectrans' failure to submit the required
reports as to the results of the D &A tests to the County constitutes a breach of its contract with
the County.
It is important to recognize that Tectrans has been a good vendor to Collier County, providing
high - quality customer service to our riders since 2010. Notwithstanding Tectrans' overall good
performance, a violation of this kind is considered significant and puts the County at a risk of
noncompliance with a federally mandated program. Contract Number 10 -5455, Exhibit I, page
A -11 to A -12, subsection 6, provides for the imposition of a "Late Report Charge" of $500.00
per day after the fifteenth (15) day of each month. While the failure to test and document under
the D &A program is recognized as a material breach under the contract, staff views this incident
as a serious oversight that needs to be immediately remedied but that it should be subject to a
lesser assessment of liquidated damages; taking into consideration the isolated nature of this
incident and the fact that all monthly D &A reports were submitted except for this one
subcontractor.
Staff has discussed this incident with the vendor and understands that Tectrans takes this
required component of operating the county's transit program seriously and it agrees with the
imposition of liquidated damages for this incident in the amount of $500.00 for each month
Tectrans did not strictly comply with the D &A program, for a total amount of $5,500.
Packet Page -608-
4/24/2012 Item 16.A.9.
FISCAL IMPACT: The fiscal impact associated to this item is the imposition of liquidated
damages in the total amount of $5,500 and should be reflected as a credit on the next month's
Tectrans' invoice for Paratransit.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office, is legally sufficient for Board action and only requires a majority vote for
approval —SRT.
GROWTH MANAGEMENT IMPACT: Consistent with Objective 12 of the Transportation
Element of the Growth Management Plan.
RECOMMENDATION: That the Board approves and accept the assessment of liquidated
damages to Tectrans/Keolis Transit America in the amount of $5,500.00 for noncompliance of
the Drug and Alcohol program and that the $5,500.00 amount be reflected as a credit on the next
month's Tectrans' invoice for Paratransit.
Prepared by: Glama Carter, Public Transit Manager- CAT
Attachment(s): 1) Notification letter to Tectrans.
Packet Page -609-
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.9.
4/24/2012 Item 16.A.9.
Item Summary: Recommendation to approve and accept the assessment of liquidated
damages to Tectrans /Keolis Transit America in the amount of $5,500 for noncompliance of the
Drug and Alcohol program as required by Collier County and the United States Department of
Transportation (US DOT) and Federal Transit Administration (FTA) regulations, as defined in
Title 49 Code of Federal Regulations (CFR), Parts 40 and 655.
Meeting Date: 4/24/2012
Prepared By
Name: CarterGlama
Title: Manager - Public Transit,Alternative Transportation Modes
3/28/2012 3:47:33 PM
Submitted by
Title: Manager - Public Transit,Alternative Transportation Modes
Name: CarterGlama
3/28/2012 3:47:34 PM
Approved By
Name: SotoCaroline
Title: Management /Budget Analyst,Transportation Administr
Date: 3/29/2012 12:00:22 PM
Name: BrilhartBrenda
Title: Purchasing Agent,Purchasing & General Services
Date: 3/29/2012 12:12:20 PM
Name: ArnoldMichelle
Title: Director - Alt Transportation Modes,Alternative Tr
Date: 3/30/2012 5:31:39 PM
Name: BetancurNatali
Title: Executive Secretary,Transportation Engineering & C
Packet Page -610-
Date: 4/2/2012 12:28:10 PM
Name: BrilhartBrenda
Title: Purchasing Agent,Purchasing & General Services
Date: 4/3/2012 12 :03:14 PM
Name: MarkiewiczJoanne
Title: Manager - Purchasing Acquisition,Purchasing & Gene
Date: 4/4/2012 7:28:30 AM
Name: TeachScott
Title: Deputy County Attomey,County Attorney
Date: 4/5/2012 8:23:32 AM
Name: MarcellaJeanne
Title: Executive Secretary,Transportation Planning
Date: 4/9/2012 8:24:57 AM
Name: StanleyTherese
Title: Management /Budget Analyst, Senior,Office of Management & Budget
Date: 4/10/2012 12:00:16 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 4/12/2012 9:02:48 AM
Name: OchsLeo
Title: County Manager
Date: 4/15/2012 2:46:42 PM
Packet Page -611-
4/24/2012 Item 16.A.9.
4/24/2012 Item 16.A.9.
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Thomas Stringer
Tectrans /Keolis Transit America
6053 W. Century Blvd. 9t" Floor
Los Angeles, CA 90045
March 28, 2012
Re: Contract 910 -5455 Management Contract for the CAT Fixed Route and Paratransit Program:
Noncompliance of the Drug & Alcohol Program
Dear Mr. Stringer:
As part of the contract oversight function, the Alternative Transportation Modes staff conducts a quarterly
review on CAT operations. The review includes, but is not limited to, an assessment of the Drug and Alcohol
(D &A) testing program to ensure compliance with the program as required by Collier County, the United State
Department of Transportation (US DOT) and Federal Transit Administration (FTA) regulations, as defined in
Title 49 Code of Federal Regulations (CFR), Parts 40 and 655. 1 am writing to discuss Tectrans' compliance
with the D &A testing program both under the terms and conditions of the contract and the requirements of law.
Although Tectrans complied with the monthly D &A testing of its employees and submitted all required
monthly compliance letters to the County for its employees as required by the contract, the company failed to
supervise and ensure that its subcontractor complied with the Drug and Alcohol program. On March 14, 2012,
during the County's quarterly Drug & Alcohol oversight review, it was discovered that one of your
subcontractor, E -Z Journey, did not perform any drug and alcohol test on its operator for a period of eleven
months (April 2011 to March 2012). By failing to submit the required reports as to the results of the D &A
tests to the County Tectrans is in breach of contract with the County.
It is important to recognize that Tectrans has been a good vendor to Collier County, providing high - quality
customer service to our riders since 201.0. Notwithstanding Tectrans' overall performance, a violation of this
kind is considered significant and puts the County at risk of noncompliance with a federally mandated
program. Contract Number 10 -5455, Exhibit I, page A -11 to A -12, subsection 6, provides for the imposition
of a "Late Report Charge" of $500.00 per day after the fifteenth (l 5) day of each month. While the failure to
test and document under the D &A program is recognized as a material breach under the contract, staff views
this incident as a serious oversight that needs to be immediately remedied but that it should be subject to a
lesser assessment of liquidated damages; taking into consideration the isolated nature of this incident and the
fact that D &A reports were submitted, just not for this one subcontractor.
Packet Page -612-
4/24/2012 Item 16.A.9.
Based on our recent discussion, staff understands that Tectrans takes seriously this required component of operating
the county's transit program and Tectrans agrees to the imposition of liquidated damages for this incident in the
amount of $500.00 for each month Tectrans did not strictly comply with the D &A program, for a total amount of
$5,500. Accordingly, staff is recommending that the Board approve and accept the assessment of liquidated damages
in the amount of $5,500.00 to address this noncompliance. We will be presenting this recommendation to the Board of
County Commissioners during the April 24, 2012 meeting. Upon the Board's anticipated approval, the agreed upon
sum should be reflected as a credit on the next Tectrans' invoice.
As discussed, starting in the month of April 2012 we will require that Tectrans provides a monthly subcontractor's
compliance D &A report to the County together with the Tectrans' monthly compliance D &A report. In addition,
receipt of this report on a monthly basis will be made a condition of payment.
We look forward to the immediate correction and compliance by Tectrans with this and all programs and conditions
required by our contract.
Sincerely;
Giama. Carter
Public Transit Manager
Cc: Nick Casalanguida, GMD Division Administrator
Michelle Arnold, ATM Director
Packet Page -613-
4/24/2012 Item 16.A.9.
March 29, 2012
Glama Carter, Public Transit Manager, ATM
Growth Management Division/Collier County Government
2885 South Horseshoe Drive
Naples, Florida 34104
Re: Contract #10 -5455 Management Contract Non - compliance Notification Letter of the Drug
and Alcohol Program
Dear Ms. Carter:
I am in receipt of your letter dated March 28, 2012 regarding non compliance with the Drug and
Alcohol testing program requirements as required by Collier County and the United States
Department of Transportation (USDOT) and Federal Transit Administration (FTA) regulations
as defined in Title 49 Code of Federal Regulations (CFR), Parts 40 and 655.
Keolis Transit America recognizes the seriousness of this oversight and the importance of
complying with this program and all aspects of the contract. As a valued partner with Collier
County, we are committed to fulfilling the requirements of the contract, and complying with the
federally mandated drug and alcohol program as specified. Once this noncompliance item was
discovered, I immediately directed that all subcontractors be placed in a consortium in which
their random testing pool will be maintained by a third party testor with direct oversight by my
office. I also required that all subcontractors provide us with an immediate update of their
employee lists in order to establish the consortium. This was done on March 15, 2012.
Furthermore, as agreed, you will receive two monthly drug and alcohol program compliance
notification update letters to include the Keolis Transit America employees' random tests and
one for the consortium of subcontracted operators. The program is in effect now, and the first
random test under the pooled consortium of subcontracted operators occurred on March 29,
2012.
I understand fully the seriousness of this requirement of the County's transit program and
provide my commitment that this will not occur again. I further understand that as a result of the
noncompliance, you are assigning liquidated damages in the amount of $5500.00 in accordance
with the contract.
Sincerely;
4'.0, jt,itlfe,
Thomas Stringer
General Manager, Collier Area Transit
Cc: Vasti Amaro, Senior Vice President, Keolis Transit America
6053 W. Century Blvd, 9th Floor, Los Angeles, CA 90045
Phone: 310.981.950C Packet Page -614- im.keolistransit.com