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RESOLUTION NO. 4917
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA
OVERRULING THE PROTEST OF YELLOW CAB COMPANY OF SAN GABRIEL
VALLEY REGARDING THE PROCESS FOR SELECTION OF A DIAL-A-RIDE
OPERATOR FOR THE CITY OF ARCADIA AND MAKING FINDINGS OF FACT
IN RELATION THERETO.
Whereas, on Tuesday, October 7, 1980 the Arcadia City Council held
a hearing to review the protest of O. D. Stalians, President of Yellow Cab
Co. of San Gabriel Valley, also known as Yellow Cab of El Monte, herein-
after referred to as "YCCSGV", regarding the City Council of the City of
Arcadia's instruction to Staff to negotiate a contract with Community
Transit Services, Inc. to operate the City of Arcadia's Dial-A-Ride system:
and
WHEREAS, Mr. O. D. Stalians and all other persons were given full
opportunity to be heard at said hearing:
NOW, THEREFORE, the City Council of the City of Arcadia, California
does hereby resolve as follows:
SECTION 1. Based on the testimony and written documentation sub-
mitted at said hearing, as well as all written documentation and testimony
submitted at the September 2, 1980 and September 16, 1980 public hearings
conducted by this City Council on the City of Arcadia Dial-A-Ride contract,
we hereby make the f~llowing findings of fact:
A. By March of 1980 the City of Arcadia was receiving poor service
from its existing Dial-A-Ride operator and the operator failed to maintain
the required proof of insurance, creating likely possibility the City would
be required to obtain the services of a new operator within a few weeks to
ensure that dial-a-ride service to the community would not be interrupted.
B. In April,. 1980, Mr. George Watts, Assistant City Manager of the
City of Arcadia contacted YCCSGV through its Executive Director, Peggy
Beeks, who indicated they would be interested in submitting a proposal to
operate Arcadia Dial-A-Ride.
'C; On April 4, 1980, Ms. Beeks and YCCSGV consultant, Mr. Clyde Sweet,
met with Mr. George Watts in his office. During initial contact with
Ms. Beeks, and at the April 4, 1980 meeting, Mr., George Watts explained:
1. That the City of Arcadia was informally soliciting proposals
rather than going through a formal bid process or a formal request for
proposal process because the current operator had not provided the City
with proof of the required insurance, and that it was very likely that
we would have to obtain a new operator within a matter of weeks, even
possibly days, if the dial-a-ride service to the City was not to be inter-
rupted.
2. That the immediate urgency of the situation did not allow us
sufficient time to develop and advertise a formal written request for
proposal.
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3. That the evaluations of the proposals would not be solely or
principally on the basis of cost, as the City Council was also concerned
about management, supervision, maintenance and training because of the
problems in those areas with the current operator.
4. That the City Council would select the operator deemed most
responsive and qualified with which to negotiate a formal contract.
Mr. Sweet and Ms. Beeks indicated that they understood the need for
following that procedure, and that they had no objection to it. Mr. Watts
then provided them with operating data, answered their questions concern-
ing the City's operation, and explained the parameters within which the
proposals were to be made, including hours of operation and maximum res-
ponse times. They were provided the same information the other two
operators who submitted proposals received. Mr. Sweet and Ms. Beeks
stated that they would be most happy to submit a proposal on that basis.
Subsequent to the April 4 meeting, Mr. Watts had several telephone conver-
sations with Ms. Beeks and Mr. Sweet and also met with them again, The
City Manager, Mayor, Mayor Pro-Tern, and Mr. Watts also toured their
facility, at which time Ms. Beeks and Mr. Sweet provided Mr. Watts with
their revised proposal. At no time did they express an objection to the
selection process.
D. During the last week of March and the first week of April, 1980,
the Assistant City Manager also orally solicited proposals from the
San Gabriel Valley Cab Company (the existing dial-a-ride operator), and
Community Transit Services, Inc.
The City was also contacted by Americab, Inc. (the current taxicab
operator in the City), as well as by a group of independent taxicab
drivers who expressed an interest in making a proposal. The City asked
each to submit proposals, in keeping with the UMTA Guidelines, to honor
to the maximum extent practicable, reasonable requests by other sources.
However, both subsequently declined to submit proposals.
E. The Assistant City Manager explained to each of the prospective
proposers the reason for the oral request for proposals, the information
to be included in the proposals, and the selection procedure. The
request for proposals contained information sufficient to enable the
prospective proposers to properly prepare their proposals. The informa-
tion provided included hours of operation, maximum acceptable response
time, equipment and vehicles to be provided by the City, and cost data
requirements. The existing contract was provided to each propspectivepro-
posers, which contained contract clauses desired by the City. Opera-
tional data for the current year was also provided to each prospective pro-
posers. All significant evaluation factors were communicated to each
of the proposers. Those factors included price, management, supervision,
maintenance programs, training programs and experience with dial-a-ride
operations. The relative importance of the factors in descending order
was not communicated. However, management, supervision and maintenance
was stressed to each of the proposers because of recent problems in
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those areas with the current operator. It was further explained to each
that the selection procedure would involve the Arcadia City Council's
evaluation of the proposals submitted, followed by the selection of the
operator determined to be most qualified and responsible with whom to
negotiate a contract. Should the City Council fail to reach agreement
with first operator selected, the next operator deemed most qualified
and responsible would be asked to negotiate a contract, Each of the
prospective offerors stated that they understood the need for and had
no objections to the procedures being followed, and each subsequently
submitted proposals. In using this selection process, the City of Arcadia
.has encouraged maximum competition and has attempted to eliminate, in-
sofar as possible, any restrictive features that might limit competition.
F. The City of. Arcadia had been advised by its consultant that it has
been UMTA's'historic practice not to require the application of the third
party contract guidelines for the selection of a transit operator where
UMTA Section 5 operating assistance funds are used. These are the UMTA
funds used to partially finance the oial-A-Ride operation. The Arcadia
Oial-A-Ride has been in operation since 1975 and has been receiving UMTA
Section 5 operating assistance funds since then. At no times have we
been required to follow the third party contract guidelines or to"submit
an operator contract for review and/or approval by UMTA, SCAG or LACTC
pursuant to the third party guidelines. Subsequent to receiving YCCSGV's
protest letter, the staff at LACTC was contacted and confirmed the City's
understanding that, as standard practice, the third party guidelines are
not applied to UMTA Section 5 operating assistance with respect to
selection of a contract operator. The City of Arcadia's consultant also
contacted the UMTA San Francisco office, and was told that the guide-
lines have not been applied to such matters. The City of Arcadia knows
of no transit system that is required to follow the guidelines for
selection of an operator.
G. Recognizing the value of the UMTA guidelines (specifically UMTA
4220.1, Chapter III - Negotiation), the City o~ Arcadia attempted to
follow them as closely as practicable, given the circumstances at the
time. However, as a result of the unusual urgency, with ~he services
being needed at once, the City orally solicited proposals from prospec-
tive operators, and determined that the public exigency would not permit
the delay incident to preparation, advertising, and distribution of a
formal, written request for proposals; it was, however, the City of
Arcadia's intention throughout the process to maximize competition to
the extent practicable.
H. The City of Arcadia has also attempted to follow the UMTA Section 5
contract requirement that the applicant will make all purchases under
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any grant through competitive bidding in accordance with the applicant's
established procedures.
I. The services for which proposals were sought are unique and not
sufficiently subject to competition and are, therefore, not subject to
any competitive bidding procedure of the City of Arcadia, and even if
they were, such procedure is hereby expressly waived. The City has
followed similar procedures for the award of refuse and cable television
franchises for the City.
J. In reliance upon the lack of objection from YCCSGV and other pro-
posers, the City of Arcadia proceeded to receive and consider the pro-
posals of each.
K. That after April 16, 1980, the City of Arcadia received a proposal
accompanied by the following letter from O. D. Stalians, President of
YCCSGV:
YEl.LOW CAB CO. OF SA1\ GABRIEl. VAl.LEY
P,O. Bo.'\ 5.tSg .- II i.J7 Valley BIni.
EI Mlln(~. California 917.14
Phone (:!IJ) 4-18.<)ltd. 962-2491. :!X7~155R
April 16. 1980
Mr. George J. Watts
Assistant City Manager
City of Arcadi a
240 West Huntington Drive
Arcadia, California 91006
Dear t.1r. \'iatts:
In response to your request at the,meeting of April 4 th,
we are submitting our proposal for the operation of the Arcadia
Dial-A-Ride.
The current service requests and ridership (week of 3-10)
is showing 80 and 76 weekday operations.
Initially. this would
indicate that: 2 sedans would be adequate for providing a regular
30 minute response service. The 1978-79 ridership demand of 9S
passengers per day would also support this level of service.
Based on your discussions with Mrs. Beeks and Mr. Sweet,
we are providing you with a cost proposal which identifies a
number of the various options available to you. We are also
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enclosing a copy of our Experience and Qualifications State-
ment. For your information, we are also enclosing a copy of
the level C State Controller's report which is used in one of
our other systems~
We trust that you will find our proposal to be satisfactory
and we look forward to being of continuing service to the City
of Arcadia.
Yours very truly.
O.;J; ~ 'C4<A--'-J
~
O. D. Stalians
President
L. On April 22, 1980 the City received the required proof of insurance
from the current dial-a-ride operator, the San Gabriel Valley Cab
Company. This eliminated the immediate urgency of obtaining the services
of a new operator. The Assistant City Manager communicated this informa-
tion to each of the proposers, and each stated that they had no objection
to continuing with the existing process rather than have the City stop
the process and prepare a formal, written request for proposal. By this
time the operators had submitted their proposals to the City. The Arcadia
City Council did, however, request that each proposer submit additional
information, and each did.
M. Meetings and telephone conversations were held with each of the pro-
posers, both before and after the proposals were submitted to the City of
Arcadia, in order to resolve any uncertainties. Certain members of the
City of Arcadia City Staff and two Councilmembers also toured the pro-
posers' facilities. In keeping with the UMTA guidelines, no information
was conveyed to any of the proposers which would give them a competitive
advantage, and the city's solicitation did not disclose a ceiling or
budget price.
N. On September 2, 1980 the Arcadia City Council held a public hearing
to consider the proposals submitted and to allow the proposers to make
oral presentations and answer any questions of the Council. At the con-
clusion of the hearing, the Council continued the matter in order to
obtain additional information from each of the proposers. On September
16, 1980 the City Council considered the additional information sub-
mitted, and allowed each of the proposers another opportunity to address
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the Council. At no time during this process did YCCSGV protest.the
use of this procedure, nor did O. D. Stalians speak or protest despite
being present at said hearing. The Council then unanimously voted to
direct Staff to negotiate a contract with Community Transit Services, Inc.,
which the Council had determined to be the most qualified and responsible
operator.
O. On September IB, 19BO, the City received a letter from
Mr. O. D. Stalians, President of the Yellow Cab Company of the
San Gabriel Valley, protesting the City Council's decision to negotiate
a contract with Community Transit Services, Inc. In keeping with OMB
.
Circular A-I02, Attachment 0, the City followed its protest procedures
by allowing Mr. Stalians to formally address the City Council with respect
to his protest at its meeting of October 7, 1980. Mr. Stalians did present
his protest at that meeting. The Assistant City Manager responded to the
points of protest summarized as follows:
1. Representatives of the YCCSGV agreeq to, and at no time.prior
to th~ Arcadia City Council's decision, objected to, the pro-
posal process and selection procedure utilized by the City.
2. The YCCSGV was aware that the contract would not be awarded
solely on the basis of cost.
3. The YCCSGV is not a local taxicab operator,
4. Community Transit Services, Inc., is the most experienced of the
three proposers in providing dial-a-ride transit. CTS' proposal
was the most responsive with respect to management, supervision,
and training. CTS offered the most professional and sophisticated
dispatching system.
P. That Peggy Beeks of YCCSGV informed City of Arcadia Assistant City
Manager, Mr. George Watts, on more than one occasion that YCCSGV no
longer provides taxicab service and has not done so since January, 19BO.
Q. That YCCSGV has never had a permit to provide taxicab or any other
service to the City of Arcadia.
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R. That YCCSGV never has been and is not presently a local Arcadia
taxicab operator, and that award of the Arcadia dial-a-ride contract
to another private operator would not be in competition with, nor to
the detriment of YCCSGV's operation in El Monte.
SECTION 2. That based on aforedescribed findings of fact, we
hereby further find and determine:
A. That the Arcadia Dial-A-Ride contract was not a "purchase" as
that term is used under UMTA guidelines.
B. That the City of Arcadia's local bidding procedures are not
applicable to such contract.
C. That UMTA third party contract guidelines have not been and are
not applicable-to UMTA Section 5 operating assistance grants to the City
of Arcadia.
D. That despite the inapplicability of the third party contract
guidelines, the City of Arcadia has substantially complied with their
provisions.
E. That YCCSGV and the other proposers 'legally waived applicability
of such guidelines.
F. That YCCSGV's protest is hereby overruled.
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SECTION 3. That the Clerk of the Council shall certify to
the adoption of this resolution.
I HEREBY CERTIFY that the foregoing
at a regular meeting of the City Council of
held on the 4th day of November, 1980
of at least three Councilmen, to wit:
resolution was adopted
the City of Arcadia
by the affirmative vote
AYES: Councilmen Gilb, Haltom, Saelid and Pellegrino
NOES: Councilman Dring
ABSENT: None
SIGNED AND APPROVED this 4th
day of November, 1980.
ArcadJ.a
ATTEST:
~A~~~a~
City C erk -
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