The URL can be used to link to this page

Home My WebLink About_2026-03-13 - Keolis Interview Follow-up Letter 1 53 State Street, 11th Floor Boston, MA 02109 www.keolis.com March 13, 2026 City of San Luis Obispo Attn: Alex Fuchs – Mobility Services Business Manager Via email:afuchs@slocity.org Re: Keolis Interview Follow-Up Dear Mr. Fuchs, Keolis enjoyed meeting with the City of San Luis Obispo team during our interview on Thursday, March 12. We also appreciate this opportunity to present additional detail on our responses to the questions posed during the interview, which are included below. 1. Bus Stop Maintenance (160+ stops): Planned approach to cleanliness and amenity functionality The proposal commits Keolis to a “Thinking Like a Passenger” philosophy that explicitly extends beyond vehicles and facilities to the passenger environment, including bus stops. Our proposed approach includes: • Field Identification & Reporting: Road supervisors, operators, and supervisors are trained to identify unsanitary or unsafe conditions at bus stops during daily operations and report them for corrective action. • Routine Cleaning & Graffiti Removal: Keolis utility staff are responsible for cleaning, graffiti removal, and reporting issues that impact passenger perception and safety. • Quality Assurance Audits: Cleanliness (including passenger facing elements) is audited through road supervision checks and quality assurance programs. Cleanliness is a formal KPI evaluated during audits. • Zero Tolerance Graffiti Policy: Any stop or vehicle with graffiti that violates City standards is addressed immediately, with coordination with local law enforcement to deter repeat offenses. • Preventive & Responsive Maintenance: Stops are addressed through a combination of routine inspections and responsive maintenance triggered by field reports. • Schedule: Our initial plan is to have our utility staff perform maintenance checks two to three times per week. We recognize that some stops may need more attention than others. Our team will make necessary adjustments to ensure compliance with safety and cleanliness standards. 2. Corporate communication and involvement level The City can expect high levels of ongoing, and structured corporate involvement, including: • Minimum of 40 on site corporate visits per year during normal operations, with increased presence during start up and transition. • Direct executive involvement, including the COO, VP of Operations, Chief Performance Officer, VP of Safety & Risk, IT leadership, HR leadership, and Maintenance leadership. 2 53 State Street, 11th Floor Boston, MA 02109 www.keolis.com • Quarterly or more frequent engagement from senior leaders supporting operations, safety, performance, IT, HR, and maintenance. • Corporate Performance Management Team providing analytics, dashboards, root cause analysis, and continuous improvement support. • Annual Innovation Meetings with City staff to focus on future service, technology, and system improvements. As mentioned, we believe this is a key differentiator of Keolis’ proposal. 3. Interest in a system of this size given larger reference agencies Keolis does not bid on every opportunity we come across and is selective in pursuing contracts where it believes it can add value. We see the City of San Luis Obispo as a strategic fit, due to: • The City’s focus on service quality, innovation, and zero emission deployment • University-driven ridership complexity (Cal Poly) • Seasonal variability and operational nuance • Best practices presented are scaled and customized to SLO Transit Our organization and proposed team and support team have experience with same size operations and in the area. We view this as a long-term partnership opportunity. 4. Third party inspector during Fleet & Facility Transition: Is it included in Start Up costs? The cost of engaging a third-party inspector is not included in our initial start-up expenses. Nevertheless, this service remains a cost-effective option that provides independent evaluations to safeguard the City's assets. Alternatively, should the City prefer a joint inspection involving Keolis, the current contractor, and the City serving as a neutral third party and final decision maker, we are amenable to such an arrangement. For the purposes of this proposal, it is assumed that any deficiencies identified during inspections will be remedied by the incumbent at their expense prior to the contract commencement date, or addressed through an alternative reimbursement agreement with the City. If Keolis is requested to carry out repairs, charges for repairs would be billed to the City based on a mutually agreed rate of reimbursement. 5. Out of state proposed managers & housing risk: contingency plan The proposed team is ready and willing to make the transition. That said, should any of our candidates become unavailable, we have a contingency plan: • Local talent assessment: Keolis commits to collaboration with the City, including evaluating incumbent and local talent during transition, and allowing qualified local staff to step into leadership roles if necessary. This applies to key management positions if the City wishes to retain any key staff. • Corporate bench strength: Keolis has a deep pipeline of experienced managers who can step in immediately if a proposed individual becomes unavailable. • On site corporate presence: During start up, multiple corporate leaders and SMEs are on site and capable of covering roles temporarily. 3 53 State Street, 11th Floor Boston, MA 02109 www.keolis.com • Redundancy during transition: The organizational framework of the transition team is designed to eliminate single points of disruption before the commencement of service. 6. Confidence in using only full time bus operators Throughout Keolis operations we have found it easier to hire full-time employees with benefits. As mentioned, if it is determined that optimization of service delivery will be better achieved through including a mix of full and part-time employees, we will make the proper adjustments. Our current approach includes: • Extraboard coverage of ~15% of the operator workforce, specifically sized to absorb absenteeism, vacations, and call offs • Data-driven workforce modeling using historical and real-time attendance trends • Proven staffing outcomes across multiple operations, with explicit statements that: o Nearly all Keolis operations are fully staffed o Keolis has not missed runs due to operator shortages in the past two years • Predictive hiring pipelines that forecast attrition months in advance. Our approach to staffing is focused on stability and reliability. 7. Payroll and IT services: What is included? The Payroll and IT line items support a fully integrated corporate and local operating environment, including: Payroll / HR Systems • Payroll costs, human resources management fees for benefits (401k fees, UKG, HSA, EAP, Mercer Broker fees), HSA employer contributions, employee engagement events & programs • Time and attendance systems (integrated with Dispatch Control System (DCS)) • Payroll processing, compliance, and reporting • HRIS support, labor compliance, and reporting • Interfaces with business intelligence platforms • Support for union and non-union payroll structures IT Services • IT mobilization support, hardware maintenance and replacement (cellphones, laptops), Wi-Fi /internet service, Microsoft365, Cisco Meraki • Dispatch Control System (DCS) • Business Intelligence (BI) dashboards and analytics • Cybersecurity, networking, and infrastructure • System configuration and maintenance during start up • Ongoing IT support from corporate IT leadership • Integration with City provided systems (e.g., Connexionz) The proposal reflects enterprise grade systems, not just local payroll processing, which explains the higher line costs. 4 53 State Street, 11th Floor Boston, MA 02109 www.keolis.com LOOKING FORWARD Thank you, once again, for the opportunity to provide this clarification to our responses to the City’s interview questions. Please continue to contact me if you have any additional questions at 310-303-2512 or sandi.hill@keolisna.com. We remain excited about the potential for a collaborative partnership between Keolis and the City of San Lius Obispo and look forward to the next steps in your procurement process. Sincerely, Sandi Hill VP, Commercial Development