HomeMy WebLinkAbout9/19/2023 Item 6g, Horn - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 19, 2023
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6g - AUTHORIZE THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO TRANSDEV’S AGREEMENT FOR HIRING
INCENTIVES AND TERM EXTENSION
Staff received the following questions, regarding the recommendation to authorize the
City Manager to negotiate and execute an amendment to the agreement with Transdev
for transit operations and maintenance services to include hiring incentives and a term
extension. The questions are below with staff’s responses shown in italics:
1. Question: How did staff arrive at the annual incentive amounts detailed in the
Fiscal Impact section (packet pages 62-63) of the Agenda Report?
Contract Element FY 2023-24 FY 2024-25 FY 2025-26
Incentives $ 233,140 $ 408,780 $ 408,780
Contract $ 3,078,597 $3,170,955 $ 3,266,084
Total $ 3,311,737 $ 3,579,735 $ 3,674,864
Because the wages, hours and benefits of bus drivers are not directly within City
control, and are subject to collective bargaining between the employer and its labor
groups, staff made some generalized assumptions solely for purposes reserving
funding for potential use for this purpose. The hiring incentives assume 15 drivers
receive a one-time sign-on bonus of $2,500. 15 drivers x $2,500 per driver = $37,500.
The hiring incentives also assume the Temporary Continued Employment Incentive
(TECI) outlined in Table 1 of the Agenda Report (packet page 61) of $4.25 per hour
will apply to a maximum of 35 Drivers, three Dispatchers, and four Road Supervisors
employed by Transdev. 42 employees x 2,080 hours x $4.25 per hour = $371,280.
$37,500 for sign-on bonuses + $371,280 for TECI = $408,780 annually.
Drivers will likely work less than 2,080 hours depending upon service schedule,
holidays, time-off, etc. Assuming the TECI applies to all hours worked, however,
provides an annual not-to-exceed amount and gives the City ability to negotiate final
terms with Transdev before executing the amendment. Transdev will also need to
execute a separate agreement with union representatives before incentives can take
effect.
Amendment to Transdev Agreement for Hiring Incentives and Term Extension Page 2
2. Question: What type of reporting does Transdev provide the City and at what
intervals?
Transdev provides staff with a monthly invoice which details the following:
a) Actual service hours provided versus scheduled service hours.
b) Staffing breakdown including the number of employees in training.
c) Statistics for ridership, revenue miles, revenue hours, ridership per revenue hour,
and number of collisions.
d) Reimbursement detail for maintenance and non-maintenance expenses billed to
the City.
e) Liquidated Damages details for items like preventable collisions, late route
penalties, off-route penalties, missed service penalties, etc.
f) Detail report of preventative maintenance time and materials.
The invoice details are reviewed and verified for accuracy by staff before payment.
Transdev also provides a weekly informational packet to City staff that includes a lost
property log, daily dispatch logs, third-party vendor issues, daily revenue deposit
counts, daily “left behinds”, and customer call logs. Transdev is required to provide
the information per the agreement.
If hiring incentives are approved and implemented, City staff would work with
Transdev to provide a monthly report as to how many of their employees receive the
sign-on bonus, retention bonus, and TECI outlined in Table 1 of the Agenda Report
(packet page 61).
3. Question: If the term of the contract is extended, then does that mean the City
won’t be able to institute any changes based on the results of the Short Range
Transit Plan or Innovation Study until 2026-27?
The intent of extending the agreement through June 2027 is to allow time for staff to
finalize the Short Range Transit Plan, draft a new request for proposals based on the
results of the Short Range Transit Plan’s recommendations, and negotiate and
execute a new agreement for transit and operations maintenance services. Council
does have the authority to extend the agreement one additional year. Staff can return
to further amend the agreement if more time is needed.