Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
Misuse of Fuel: Fuel used for any other reason
other than for revenue service and training.
Any incidents identified by or reported to CITY
involving the misuse of fuel is subject to a two‐
hundred dollar ($200) fine per incident, per
vehicle, plus the cost of fuel.
N/A CDR 1.5
Management Retention: The Assistant General
Manager, Operations Manager, or Maintenance
Manager shall remain on this contract for a
minimum of one (1) year unless the CITY asks the
CONTRACTOR to remove such manager(s),
personal termination (voluntary resignation),
termination of employment by CONTRACTOR
with prior notice to CITY, or emergency.
If for reasons other than a personal termination
(voluntary resignation) or emergency, the
approved General Manager, Assistant General
Manager, Operations Manager, or Maintenance
Manager leaves prior to one (1) year, the CITY at
its sole discretion may within thirty (30) calendar
days assess a penalty equal to one and a half
(1½) times the Manager’s annual salary
(including fringe benefit costs), collected through
a reduction in payment owed the CONTRACTOR
in the next invoice cycle, or as otherwise agreed
upon, at the CITY’s sole discretion.
N/A GDR 2.1.1
Removal of General Manager: CONTRACTOR
shall not remove the General Manager assigned
to this contract during the term of this contract,
unless for personal termination (voluntary
resignation), the CITY requests their removal,
termination of employment by CONTRACTOR
with prior notice to CITY, or if the removal is
mutually agreed to in writing by both the CITY
and CONTRACTOR.
If said manager is moved by the CONTRACTOR
without the consent of the CITY, CONTRACTOR
shall pay the CITY a penalty in the sum of two‐
hundred thousand dollars ($200,000) within
thirty (30) calendar days of the manager’s
relocation.
N/A GDR 2.1.2.1
Appearance & Uniform: CONTRACTOR's
employees shall adhere to the provisions under
the Appearance and Uniform section.
Any findings of non‐compliance with appearance
and CITY approved uniform/attire shall result in a
twenty‐five dollar ($25) penalty per employee
per day.
N/A GDR 2.6.3 &
GDR 2.6.4
Report Errors:
Submitted reports shall be accurate and free of
errors. If an error is found it must be corrected
with in two (2) weekdays.
There should not be any trends in errors in any
reports.
Errors that are not corrected within two (2)
weekdays shall result in a one‐hundred dollar
($100) penalty per report per weekday past the
two (2) correction period.
If an error pattern develops with any report, the
CITY shall result in a one‐hundred dollar ($100)
penalty per error per report.
N/A GDR 2.8
Failure to Submit Reports On‐Time: All daily,
weekly, and monthly reports shall be submitted
on time.
Failure to submit the required reports on‐time as
stated shall result in a one‐hundred dollar ($100)
penalty per report per weekday it is late.
N/A DGR 2.8
On‐Board Video Surveillance Hard Drive: All
vehicles and buses equipped with a video
surveillance system shall have a hard drive
installed at all times.
If any vehicle or bus equipped with video
surveillance systems is determined to be missing
a hard drive shall result in a two‐hundred and
fifty dollar ($250) penalty per bus per incident.
N/A ODR 3.8.1
Violation of Laws or Regulations: If CITY
determines that a violation of law, regulation, or
via receipt of a report attesting to such an
occurrence, CITY will assess a penalty equal to
the fine or charge from a local, state, or federal
authority. CITY may also assess a penalty in the
absence of a fine or charge from a local, state, or
federal authority.
Failure to adhere to all federal, state, and local
laws and regulations that may or may not result
in fines or penalties, the CITY may assess a
penalty less than or equal to the associated fine
or penalty by the regulating body and costs
associated with correction of the violation.
N/A ODR 3.12
General
Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
Accidents & Incidents: Preventable accidents or
incident are those for which the driver is at‐fault.
All "At‐Fault accidents and incidents shall result
in a fifty dollar ($50) penalty per “At‐Fault”
accident/incident. A one‐hundred dollar ($100)
penalty shall result if the "At‐Fault" driver has
had another "At‐Fault" accident or incident
within one (1) year. The 4th "At‐Fault" accident
or incident of a single driver within one (1) year
shall result in a five‐hundred dollar ($500)
penalty and the removal of the driver from the
contract.
Each accident or incident over that outline under
ODR 3.13.1 subsection F and ODR 3.13.2.2
subsection H shall result in a one‐hundred dollar
($100) penalty per accident/incident per 100,000
per service type.
Each quarterly period in which no “At‐Fault”
accidents or incidents occur the CONTRACTOR is
entitled to a one hundred dollar ($100)
incentive. A two‐hundred fifty dollar ($250)
increase will be given for each consecutive
quarter with no "At‐Fault" accidents or incidents
and will reset on the anniversary date of this
AGREEMENT. ($350 for 2nd quarter, $600 third
quarter and $850 for the fourth quarter).
ODR 3.12.1
Reporting Accidents & Incidents: CONTRACTOR
shall report all accidents/incidents by phone call
or text message within 1‐hour after the
occurrence to the Transit Manager.
If an accident or incident is not reported within 1‐
hour after it occurs shall result in a one‐hundred
dollar ($100) penalty per hour. A second incident
within one (1) year shall result in double the
penalty.
N/A ODR 3.12.1
Complaints:A l l valid complaints shall result in a ten dollar ($10) penalty per valid complaint. A fifty dollar
($50) penalty shall result if the driver has had 2
complaints within one (1) year rolling period and
one‐hundred dollar ($100) for the 3rd complaint.
The 4th valid complaint of a single driver within
one (1) year rolling period shall result in a two‐
hundred dollar ($200) penalty and the removal
of the driver from the contract.
Each complaint over that outline under ODR
3.13.1 subsection E and ODR 3.13.2.2 subsection
G shall result in a one‐hundred dollar ($100)
penalty per valid complaint per service type per
month.
Each quarterly period in which no valid
complaints the CONTRACTOR is entitled to a one
hundred dollar ($100) incentive. A two‐hundred
fifty dollar ($250) increase will be given for each
consecutive quarter with no valid complaints and
will reset on the anniversary date of this
AGREEMENT. ($350 for 2nd quarter, $600 third
quarter and $850 for the fourth quarter).
ODR 3.12.1
ITS Login: Operators shall login to all ITS
equipment correctly.
Failure of an operator to login to the ITS
equipment correctly shall result in a one‐
hundred dollar ($100) penalty per operator per
incident per day.
N/A ODR 3.10
Failure to Announce Stops: In the case that the
Automatic Vehicle Announcement (AVA) system
is unable to announce stops designated by the
CITY, CONTRACTOR shall ensure that operators
are announcing each stops. This will be based on
customer complaints received and Transit Staff
ride checks.
Failure by the operator to announce each stops
shall result in a one‐hundred ($100) penalty per
operator per stop unannounced.
N/A ODR 3.12.1
General (Continued)
Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
Call Performance: The following performance is
based upon the reports from the CITY’s phone
system, currently Cisco. Calls handled
performance that falls below the standards shall
result in a penalty.
‐Ninety‐five percent (95%) of calls are
handled.
‐ Average calls answer time is greater
than ninety (90) seconds.
‐ Average
calls hold time is greater than
one hundred‐twenty (120) seconds.
Failure to answer at least ninety‐five percent
(95%) of all incoming calls shall result in a one‐
hundred ($100) penalty per month.
Failure to answer calls within ninety (90) seconds
on average shall result in a one‐hundred ($100)
per month.
Failure to answer calls on hold within one
hundred‐twenty (120) seconds on average shall
result in a one‐hundred ($100) penalty per
month.
Each month standards are met or exceeded shall
result in the following incentives.
One‐hundred ($100) when ninety‐five percent
(95%) or above of incoming calls are handled.
Fifty ($50) when calls answered are within ninety
(90) seconds on average.
Fifty ($50) when the calls on hold are answered
within one hundred‐twenty (120) seconds on
average.
ODR 3.20.1.1
Description Penalty Incentive Section Ref.
On‐Time Performance: A minimum of seventy‐
five percent (75%) of bus departures are on time;
an on‐time departure is defined as having time
points adherence of 0 minutes early and no
more than 5 minutes late from the scheduled
departure time as indicated by published
timetables.
Failure to adhere to on‐time performance by
operators that contributes to overall system on‐
time performance dropping below seventy‐five
percent (75%) shall result in a two hundred‐fifty
dollar ($250) penalty per month.
Every month on‐time performance meets or
exceeds eighty‐five percent (85%) shall result in
a two hundred‐fifty dollar ($250) incentive per
month.
ODR 3.12.1
Early Departure: No bus shall depart a
designated time‐point before the published
times.
Failure by operator to depart on time from time‐
points per the published times shall result in a
two hundred‐fifty dollar ($250) penalty per
occurrence.
N/A ODR 3.12.1
Missed Run: A Missed Run occurs when a
scheduled departure is canceled or when a bus
departs more than fifteen (15) minutes after the
published departure time from the route starting
location (downtown Visalia Transit Center,
Mooney and Orchard, Visalia Medical Clinic, any
future transfer hubs, or the first stop for Sequoia
Shuttle). Failure to login prior to boarding
passengers and/or pull to provided CAD/AVL
service will constitute a Missed Run. Departures
later than five (5) minutes after the first
scheduled run of the day will be considered a
Missed Run.
Each occurrence of a Missed Run shall result in a
two hundred‐fifty dollar ($250) penalty per
occurrence.
N/A ODR 3.12.1
Missed Stop/Passenger Pass up: No bus shall fail
to stop for a passenger waiting or requesting a
stop at a designated VT or V‐LINE stop location.
Failure by an operator to stop for a passenger
shall result in a two hundred‐fifty dollar ($250)
penalty per occurrence.
N/A ODR 3.12.1
Off‐Route Performance: Operators shall stay on
route unless a CITY approved reroute is
necessary due to construction or other events
that may impact route performance.
Any instance not approved by CITY of a bus in
revenue service is off‐route shall result in a fifty
dollar ($50) penalty per incident per bus.
N/A ODR 3.15
Off‐Route, Early, Late, etc.. Report: Dispatchers
shall document all instances of vehicles off‐
route, early, late, etc.. And the report shall be
submitted to CITY as requested, but no less than
monthly.
Any instance not noted on the dispatcher's log
provided by CONTRACTOR for buses traveling off‐
route, early, late, etc.. shall result in a one‐
hundred dollar ($100) penalty per instance not
reported.
N/A ODR 3.18
Fixed Route, V‐Line, LOOP, & SEKI
General (Continued)
Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
Passengers per Revenue Hour: CONTRACTOR
shall always strive to achieve the performance
standard of 3.8 passengers per vehicle service
hour and shall not average monthly less than 3.4
passengers per vehicle service hour.
In the event that the monthly DAR passengers
per vehicle revenue hour is less than 3.4,
CONTRACTOR shall not be paid for more than
the maximum vehicle revenue hours determined
by dividing the number of monthly DAR
passengers by 3.4.
Each month DAR passengers per vehicle revenue
hour is equal to or greater than 3.8, shall result
in an incentive of two hundred dollars ($200).
ODR 3.12.2.1
Passengers per Revenue Mile: CONTRACTOR
shall always strive to achieve the performance
standard of 0.38 passengers per vehicle service
mile and shall not average monthly less than
0.34 passengers per vehicle service mile.
In the event that the monthly DAR passengers
per vehicle revenue mile is less than 0.34,
CONTRACTOR shall not be paid for more than
the maximum vehicle revenue miles determined
by dividing the number of monthly DAR
passengers by 0.34.
Each month DAR passengers per vehicle revenue
mile is equal to or greater than 0.38, shall result
in an incentive of two hundred dollars ($200).
ODR 3.12.2.1
On‐Time Performance: Ninety‐five percent
(95%) of passengers shall be picked up within a
30‐minute window (plus or minus 15 minutes
from the recorded reservation time) of their
promised pickup time.
Failure to adhere to on‐time performance by
operators that contributes to overall system on‐
time performance dropping below ninety‐five
percent (95%) shall result in a two hundred‐fifty
dollar ($250) penalty per month.
Every month on‐time performance exceeds
ninety‐five percent (95%) shall result in a two
hundred‐fifty dollar ($250) incentive per month.
ODR 3.12.2.2
Ride Time: CONTRACTOR shall ensure ninety‐five
percent (95%) of trips will have a ride time less
than or equal to 60 minutes.
Failure to adhere to Ride Time performance by
operators that contributes to overall system Ride
Time performance dropping below ninety‐five
percent (95%) shall result in a two hundred‐fifty
dollar ($250) penalty per month.
N/A ODR 3.12.2.2
Trip Denials: There shall not be a pattern of trip
denials. If there is a Trip Denial, CONTRACTOR
shall document the occurrence and provide a
report of all Trip Denials with their monthly
reports.
Failure to log and submit all Trip Denials with the
monthly reports shall result in a hundred dollar
($100) penalty per Trip Denial per month.
N/A ODR 3.12.2.2
Missed Trips: There shall be no missed trips. A
missed trip is one that is not completed in its
entirety or is more than 60 minutes late from
scheduled pick up time.
Failure by an operator to pick up passenger with
in the 60 minute window from scheduled pick up
time shall result in a two hundred‐fifty dollar
($250) penalty per occurrence.
N/A ODR 3.12.2.2
Call Performance: The following performance is
based upon the reports from the CITY’s phone
system, currently Cisco. Calls handled
performance that falls below the standards shall
result in a penalty.
‐Ninety‐five
percent (95%) of calls are
handled.
‐ Average calls answer time is greater
than ninety (90) seconds.
‐ Average calls hold time is greater than
one hundred‐twenty (120) seconds.
Failure to answer at least ninety‐five percent
(95%) of all incoming calls shall result in a one‐
hundred ($100) penalty per month.
Failure to answer calls within ninety (90) seconds
on average shall result in a one‐hundred ($100)
per month.
Failure to answer calls on hold within one
hundred‐twenty (120) seconds on average shall
result in a one‐hundred ($100) penalty per
month.
Each month standards are met or exceeded shall
result in the following incentives.
One‐hundred ($100) when ninety‐five percent
(95%) or above of incoming calls are handled.
Fifty ($50) when calls answered are within ninety
(90) seconds on average.
Fifty ($50) when the calls on hold are answered
within one hundred‐twenty (120) seconds on
average.
ODR 3.12.2.2
DAR
Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
Wheelchair Equipment Inoperative: All
wheelchair lift, ramp, and related equipment
shall be inspected, serviced, and lubricated at
intervals necessary to ensure that the wheelchair
lifts are fully operational whenever the vehicle is
used in revenue service. This will be assessed
based on customer complaints and Transit Staff
ride checks.
If a vehicle is sent out with an unaddressed
inoperable lift shall result in a two‐hundred
dollar ($200) penalty per incident per bus.
N/A MDR 4.6
Vehicle Damage Repair Time: Vehicles shall be
repaired as soon as possible, but no later than
thirty (30) calendar days from the
accident/incident, without approval from the
Transit Manager.
Buses out of service longer than thirty (30)
calendar days due to and accident, unless
approved in advance by the Transit Manager,
shall result in a one‐hundred dollar ($100)
penalty per bus per calendar day.
N/A MDR 4.21
Vehicle Down Time: The total number of days
that any vehicle is down due to maintenance
issues or open work orders is “down time”
(excluding vehicle down due to accidents). The
CONTRACOTR’s goal should be to ensure that
vehicles are returned to service within three (3)
calendar days, but no more than fifteen (15)
calendar days.
Any Revenue Vehicle unavailable for service for
more than fifteen (15) calendar days shall result
in a one‐hundred dollar ($100) penalty per bus
per calendar day. Penalties will not be assessed
when down time is due to circumstances beyond
the CONTRACTOR’s control, as determined solely
and finally by CITY (i.e. supply chain issues,
natural disasters, or weather delays).
N/A MDR 4.21
Preventative Maintenance Program:
CONTRACTOR shall maintain stated intervals
between inspections. Any PMI inspection
completed more than 500 miles before
Preventive Maintenance Inspection (PMI)
mileage interval is considered "EARLY". Any PMI
inspection completed more than 500 miles past
Preventive Maintenance Inspection (PMI)
mileage interval is considered "LATE". Any PMI
inspection completed more than 1,000 miles
past PMI mileage interval is considered
"MISSED".
Failure to perform a preventative maintenance
service within 500 miles after its scheduled PM
service shall result in a five‐hundred dollar
($500) penalty per bus per calendar day.
Performing a preventative maintenance service
less than 500 miles before its scheduled PM
service shall result in a five‐hundred dollar
($500) penalty per bus.
N/A MDR 4.21
Vehicle Cleanliness: CONTRACTOR shall always
maintain all vehicle’s exteriors and interiors in a
clean and litter free condition.
Failure to maintain buses in a clean condition
shall result in a one‐hundred dollar ($100)
penalty per bus per calendar day.
Each quarterly period in which there are no
reported dirty buses the CONTRACTOR is entitled
to a one‐hundred dollar ($100) incentive. A two‐
hundred fifty dollar ($250) increase will be given
for each consecutive quarter with no valid
complaints and will reset on the anniversary of
this AGREEMENT. ($350 for 2nd quarter, $600
third quarter and $850 for the fourth quarter).
MDR 4.21
Breakdown: Vehicle breakdowns should not
exceed one (1) per 10,000 miles.
Each breakdown over that outline under MDR
4.21 subsection H shall result in a one‐hundred
dollar ($100) penalty per breakdown per 10,000.
N/A MDR 4.21
Fleet Cannibalization: Except when approved by
CITY, the CONTRACTOR shall not remove any
part from another vehicle, whether out of
service or not, to install on another vehicle
because parts are not immediately available.
Cannibalization of any buses or vehicles shall
result in a one‐hundred dollar ($100) penalty per
bus.
N/A MDR 4.21
Maintenance
Exhibit M
Liquidated Damages
Incentives
Description Penalty Incentive Section Ref.
California Highway Patrol (CHP) Terminal &
General Public Paratransit Vehicle (GPPV)
Certification: CONTRACTOR shall maintain both
California Highway Patrol (CHP) terminal and the
General Public Paratransit Vehicle (GPPV)
certification of all appropriate drivers and
vehicles used in the performance of this
contract.
Failure of a CHP Terminal or GPPV Certification
shall result in a five‐hundred dollar ($500)
penalty per occurrence.
N/A MDR 4.21
Major Defects: CONTRACTOR shall ensure that
no vehicle in revenue service has a major defect.
Each occurrence of a vehicle in revenue service
with a major defect shall result in a one hundred
dollar ($100) penalty per incident per bus.
N/A MDR 4.21
ASE Certification: At least eighty percent (80%)
of all maintenance personnel, including the
Maintenance Manager, must be ASE master
certified on medium/heavy‐duty trucks and/or
buses or possess comparable certifications.
If less than eighty percent (80%) of the
maintenance staff including the maintenance
manger are ASE master certified that shall result
in a five hundred dollar ($500) penalty per
quarter.
If ninety‐five percent (95%) of the maintenance
staff including the maintenance manger is ASE
master certified shall result in a one hundred
dollar ($100) incentive per quarter.
MDR 4.22
Maintenance (Continued)