HomeMy WebLinkAbout05/05/1992, C-12 - SLO TRANSIT SERVICE AGREEMENT IIIipII�I�IIIIII��I���II vJ MEDATE:
Cl o san .�.Is OUISpO Mayy 5, 9992
fiffiaftm COUNCIL AGENDA REPORT ITEM NUMBER^r_/
FROM: Ken Hampian, Assistant City Ad 'nistrative Officer/eq-
PREPARED
fficerPREPARED BY: Harry Watson, Transit Manager
David Elliott, Administrative Analyst`0_17
SUBJECT: SLO Transit Service Agreement
CAO RECOMMENDATIONS:
1) Award the SLO Transit Service Agreement to Mayflower Con-
tract Services, Inc.
2) Authorize the Mayor to execute the agreement
DISCUSSION:
Background. The existing transit service agreement will expire
on June 30, 1992 after 10 years. At its meeting on January 7 ,
1992 , the Council approved a new draft transit service agreement
and authorized the City Administrative Officer to distribute a
request for proposals to provide transit service from July 1,
1992 to June 30, 1995. On February 27, 1992 , the Transit Manager
opened proposals from four firms and during the following week
convened an evaluation panel to review the proposals. After a
thorough review, the panel ranked the four firms in the following
order:
1) Mayflower Contract Services, Inc.
2) DAVE Transportation Services, Inc.
3) Santa Barbara Transportation
4) Medi-Ride, Incorporated
At its meeting on April 7 , 1992 , the Council approved the recom-
mended ranking of firms and authorized staff to negotiate an
agreement with Mayflower.
Negotiations. On April 8 , 1992, Ken Hampian, Harry. Watson and
David Elliott met with representatives from Mayflower. Because
the request for proposals had included a draft agreement, both
sides started with broad consensus on most terms. After clarify-
ing some minor operations issues, the negotiators addressed the
City' s chief concern: that Mayflower had proposed relatively
substandard wages and benefits for drivers. Under the current
agreement, low driver compensation has contributed to chronically
high turnover and less than desirable commitment to good cus-
tomer relations. To avoid this situation with the new contract,
both sides worked toward a way to bring driver compensation up to
the minimum paid by other similar operations in the county: about
$7 .20 per hour.
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COUNCIL AGENDA REPORT
SLO Transit Service Agreement
page 2
Mayflower originally suggested a starting driver wage of $6. 00
per hour. The negotiated plan would raise the starting wage to
$7 . 19 per hour in two steps. The first step would be a straight-
forward $. 70 increase to a starting wage of $6.70 per hour. The
second step would depend on bonuses earned system-wide each month
for on-time performance ($. 07 per hour) , safety ($. 21 per hour) ,
and customer satisfaction ($.21 per hour) . Staff felt that this
second step would be a more creative and beneficial way to i
achieve the desired results.
Mayflower proposed a contract payment of $2 . 29 per mile in the i
first year. Raising driver compensation to desired levels would
cost from $. 10 to $. 17 more per mile depending on what perfor-
mance bonuses were earned. These increases would boost the cost
per mile to a level ranging between $2 .39 and $2 .46 -- still less
than the $2 . 57 per mile submitted in the next lowest cost pro-
posal from Santa Barbara Transportation.
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CONCURRENCES:
At its meeting on March 18, 1992 , the Mass Transportation Commit-
tee reviewed the four proposals and the ranking recommended by
the evaluation panel. It had no objection to the panel's find-
ings and recommendations.
Both Mayflower and the City Attorney have reviewed and approved
revisions to the original draft agreement.
FISCAL IMPACT:
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The following table shows estimated contract costs over the
three-year term of the agreement:
1992/93 1993/94 1994/95
minimum cost per mile $2 . 39 $2 .49 $2 . 60
maximum cost per mile $2 . 46 $2 .56 $2 , 67
estimated mileage 260, 000 280, 000 300, 000
minimum contract cost $621,400 $697, 200 $780, 000
maximum contract cost $639, 600 $716, 800 $801, 000
The operating budget for the transit program (on page D-57 of the
1991/93 financial plan) lists a planned appropriation of $545, 700
for contract services in 1992/93 . To cover estimated contract
costs this appropriation must increase to $639, 600. Staff will
prepare a 1992/93 budget request to add the additional $93 , 900
C-ia-
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COUNCIL AGENDA REPORT
SLO Transit Service Agreement
page 3
from undesignated Transportation Development Act revenues.
At the May 12, 1992 budget study session, staff will present a
complete review of the transit program budget, including the
effects of this new transit service agreement and anticipated
changes in transit revenues.
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NOTE: CONTRACT DOCUMENTS AND MAYFLOWER'S ACCEPTED PROPOSAL
ARE AVAILABLE FOR REVIEW IN THE CITY COUNCIL OFFICE.
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