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