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HomeMy WebLinkAboutItem 1f - Contract for the operation of the Arcadia Transit. GQsLIFORN —�9 A.6ust 5, 1903 V DATE: May 20, 2014 STAFF REPORT Development Services Department TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director Philip A. Wray, Deputy Director of Development Services /City Engineer By: Linda Hui, Transportation Services Manager SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH SOUTHLAND TRANSIT, INC. FOR AN AMOUNT NOT TO EXCEED $1,408,625 ANNUALLY FOR THE DAILY OPERATION OF THE ARCADA TRANSIT DIAL -A -RIDE SYSTEM Recommendation: Approve SUMMARY Arcadia Transit is currently operated and maintained by Southland Transit, Inc., a contracted service provider. The Professional Services Agreement ( "Agreement ") with Southland Transit, Inc. will expire on June 30, 2014, requiring the City to formally and competitively bid the agreement. The Development Services Department issued a Request for Proposals ( "RFP ") to solicit proposals from 11 transit service firms for the operation, maintenance, and administration of the Arcadia Transit general public demand response system. Three (3) proposals were received and based on the established evaluation criteria, the panel selected the incumbent operator, Southland Transit, Inc., for a two -year base contract with two optional one -year extensions. It is recommended that the City Council authorize the City Manager to execute a Professional Services Agreement with Southland Transit, Inc. for an amount not to exceed $1,408,625 annually, for a two -year base agreement with two optional one -year extensions, effective July 1, 2014. BACKGROUND Arcadia Transit is a general public curb -to -curb demand response transit system that operates using a contracted service provider. Currently, Southland Transit, Inc. is under contract with the City to provide the management, operation, and maintenance of the Arcadia Transit service. The current contract with Southland Transit, Inc. is a five -year contract (three base years and two additional optional years) which will expire on June 30, 2014. Agreement with Southland Transit, Inc. May 20, 2014 Page 2 of 4 The Arcadia Transit system is funded with local, state, and federal transit funds. As a recipient of federal transit funds, the City is subject to federal transit funding provisions. The Federal Transit Administration (FTA) requires that agencies receiving federal assistance formally bid all public transit contracts at intervals no greater than five (5) years. Since 1999, the City has conducted a competitive bidding process for the management and operation of the Arcadia Transit system. The selected contractor will provide and supervise the reservation /dispatch and bus operator staff; operate and house the city -owned transit vehicles; maintain all mechanical and physical components of each vehicle; and will complete all required state and federal data reporting. On February 4, 2014, the Request for Proposals (RFP) package was mailed directly to 11 transit service firms soliciting bids for the operation, maintenance, and administration of Arcadia Transit. A pre - proposal conference was held on February 20, 2014, which was attended by six (6) firms. DISCUSSION On March 20, 2014, the City received proposals from Empire Transportation, Inc., First Transit, Inc., and Southland Transit, Inc. The RFP had requested bidders to provide their fee on an annual basis, with an anticipated service level identified by the City. Below is the list of the firms and their annual fee proposals based on current demand levels. Each proposal was evaluated and ranked by a panel consisting of two City staff and one independent reviewer. Firm Annual Not to Exceed Fee First Transit, Inc. $1,370,600 Southland Transit, Inc. $1,438,068 Empire Transportation $1,469,720 The selection panel determined that Southland Transit, Inc. was the most qualified of the three firms. Southland Transit Inc. is a well - established mid -sized company located in El Monte which is within the required distance from the City, and has a well- equipped facility to handle the City's transit vehicles. Southland Transit Inc. presented a strong management team for operation and maintenance, and a project manager who understands the transit needs of the City. Southland Transit Inc. also demonstrated its in -depth working knowledge of operating a general public demand response transit system. Agreement with Southland Transit, Inc. May 20, 2014 Page 3 of 4 First Transit, Inc. was the lowest bidder for the project. First Transit, Inc. is a national corporation head - quartered in Cincinnati, OH. For Arcadia Transit, First Transit Inc. proposes to operate out of its current facility in El Monte. The proposed management team currently is responsible for running two small dial -a -ride systems in the area. However, the local management team does not possess the experience of operating a general public demand response system and /or managing a fleet the size of Arcadia Transit, which may pose a learning curve, and could impact the transition. More importantly, First Transit's proposal also included unrealistic gas mileage estimates and assumed technology improvements to the vehicles that have not been investigated or planned by the City. These assumptions may have attributed to the firm's low cost proposal. Once these anomalies are factored out, the overall cost for First Transit is likely to increase. Empire Transportation is a small firm head - quartered in Bellflower, CA, which provides dial -a -ride services primarily for medical institutions. The firm proposes to locate an operation and maintenance facility in Monrovia, which is within the required distance, with a sub - contracted maintenance crew. However, the proposed dispatching and reservation service will be remotely located in Bellflower. In addition to being the highest bidder, Empire Transportation's proposal presented many components that have not been tested for Arcadia Transit. This, in turn, poses the uncertainty of a smooth transition, as well as program success. After careful consideration, the evaluation panel selected Southland Transit, Inc. to proceed with the next step of the selection process, contract negotiation. As a result of the negotiation, Southland's overall cost proposal was reduced by approximately $30,000 annually without impacting the transit service offered. Selecting Southland Transit, Inc. means that there is no need for transition from one firm to another, guaranteeing an uninterrupted service to the public. The agreed upon and recommended contract will not exceed $1,408,625 per year. There is another important component in the consideration of a service provider for Arcadia Transit. In the past, the City has procured a transit service agreement for a period of five years (a three -year base with two optional one -year extensions). However, with Gold Line light rail operations due to begin in early 2016, it is anticipated that a change in transit service demand and needs will occur. In order to evaluate the existing transit service and what could be done to better meet the City's needs, the Development Services Department has budgeted a transit restructuring study in the next year. In the event the restructuring study recommends certain changes in Arcadia Transit's delivery (e.g., a fixed route service) it is hoped that the service improvement implementation will be aligned with the Gold Line opening. Thus, the subject agreement has been structured to cover only two base years with two optional one -year extensions. If the results of the transit restructuring survey lead to the City Council changing the function and make -up of Arcadia Transit, the agreement with Southland can be modified (or discontinued) following the second year. Agreement with Southland Transit, Inc. May 20, 2014 Page 4 of 4 ENVIRONMENTAL IMPACT This is not a project as defined in California Environmental Quality Act (CEQA) §15378, thus this service agreement is considered ministerial. FISCAL IMPACT Based on the RFP revenue service hour requirements, the maximum obligation to the City annually would be $1,408,625. In the first two years of the agreement, this number will likely be lower. Currently, Arcadia Transit is funded exclusively using transportation fund sources, including Metro's local transit Formula Allocations, Proposition A Local Return, Measure R Local Return, and the State's Transportation Development Act (TDA) funds. The cost of this agreement will not have any impact on the General Fund. RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a Professional Services Agreement with Southland Transit, Inc. for an amount not to exceed $1,408,625 annually for the daily operation of the Arcadia Transit Dial -A- Ride system. Approved. Dominic LazzarA6 City Manager