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HomeMy WebLinkAbout11-17-2015 Item 06 - Study Session - Future SLO Transit Operations Maintenance Contract RFP Meeting Date: 11/17/2015 FROM: Daryl Grigsby, Public Works Director Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: STUDY SESSION: FUTURE SLO TRANSIT OPERATIONS & MAINTENANCE CONTRACT REQUEST FOR PROPOSALS RECOMMENDATION Receive a presentation on the upcoming Request For Proposal (RFP) process for the City’s Transit Operations and Maintenance Contract Services and provide comment and direction to staff. DISCUSSION Background The City’s Transit Operations and Maintenance work is currently contracted out to First Transit Inc. (First Transit). This contract was awarded ten years ago via a competitive RFP process. The initial contract was for three (3) years and included seven (7), one-year extension options. June 30, 2016 marks the end of the last extension with First Transit. The City is now beginning the process of circulating the next Request For Proposals (RFP) for transit services and staff is soliciting feedback from the Council and Mass Transportation Committee (MTC) regarding any topics that they would like to be considered as part of that process. Request For Proposals The City has long used contract services to provide operation and maintenance of the transit services that it provides. This public/private relationship has been proven beneficial to the City and community. With the current contract set to lapse in June of 2016 it is time to circulate a new RFP to continue contract services past that date. The RFP process provides the City an “apples-to-apples” cost comparison for providing operations and maintenance services by each of the potential contractors and offers the opportunity for a “best-in-value” analysis with an objective of balancing cost with quality. The goal is to maintain comparable service levels with those the transit system is already experiencing and expand service when able to afford service that benefits the community. 6 Packet Pg. 91 Potential Challenges for the New Contract The Council presentation will explain some of the anticipated issues associated with a new transit contract. Two are worth mentioning in this report. First, the current contract for services was formally circulated 10 years ago. The seven, one-year extensions have been beneficial and have allowed both the contractor and the City the ability to refine costs and compensation as part of each year’s extension. It is not known if the new formal RFP process will result in cost proposals that are consistent with current compensation rates, lower or higher based upon current market conditions. Staff anticipates that rates could increase due to the length of time of the current contract and other cost elements. These include issues such as the Affordable Care Act, Worker’s Compensation rate increases, etc. that each individual contractor costs out differently. The RFP will be structured in such a way that it achieves flexibility in costs through flexible service level cost items as well as fixed and variable costs that will allow the City to expand or reduce services to balance needs with available funding levels. In addition, the “Levels of Service” anticipated to be provided by the Contractor is an important factor in delivering the “Apples to Apples” comparison needed for a quality review of proposals that are received. The RFP will use the existing service levels as a basis for contractors to prepare their proposals. As Council knows, the City is pursuing an update to its Short Range Transit Plan but that document will not be adopted until spring of 2016. The RFP will be structured such that SRTP recommendations will be able to be considered prior to negotiating the final contract terms and when we can afford it, implemented as part of the new contract. Table 1 lists a comparison of the current transit contract and the draft RFP for major contract issues. The study session will present these issues in more depth along with other changes that are anticipated to be included in the RFP. 6 Packet Pg. 92 Table 1 – Major Contract Terms Comparison Contract Item Current Contract Proposed RFP Contract Length (Base) 3 Years 4 Years Contract length (Extensions) 7 - 1 year extensions 3 - 1 year extensions Variable Rate Cost Recovery Method Vehicle Revenue Miles Vehicle Revenue Hours Fixed Rate Cost Recovery Method Management Fee Management Fee Pass through Costs: Fuel Yes Yes Insurance No Yes Misc. Purchases Yes Yes Vehicle Maintenance Contractor Contractor 29 Prado Maintenance Responsibilities Landscape Maintenance Contractor Contractor Bus Washer Maintenance Contractor Contractor Facility Contractor Contractor Retention of Current Employees Pursuant to State and Federal Law Pursuant to State and Federal Law Required Positions As Part of Proposal: General Manager Yes Yes Maintenance Manager Yes Yes Operations Manager Yes Yes Safety Manager Yes No Next Steps Table 2 shows the tentative schedule of events and major milestones for the processing of the RFP. The MTC will be reviewing the draft scope of work at its November 10 th meeting. The formal RFP is anticipated to be on one of the Council’s December consent agendas depending upon significant changes requested by the Council and MTC. 6 Packet Pg. 93 Table 2 — Transit RFP Tentative Schedule It is anticipated that the new Contract Award will need Council approval by early May in order to allow the successful contractor adequate time to begin the startup process and begin service by July 1, 2016. Obviously, if the current contract becomes the successful bidder on the contract that date will not be as crucial. A team of industry professionals, both from within the City and outside the City, will review each proposal according to pre - established grading criteria. The top rated vendors will then be invited to formal interviews and final negotiations. The winning proposer (selected contractor) will then be recommended to Council for consideration and award. The new contract will become effective July 1 St, 2016. FISCAL IMPACT The adopted, 2015 -17 budget for the Transit Enterprise Fund included some costs increase assumptions consistent with historic rate increases along with the results of the Short Range Transit Plan. Ultimately, the funding for the of the City's transit operations and maintenance will be from the City's annual distribution of Federal Transit Administration Section 5307 funds, Transportation Development Act (TDA) funds, the Cal Poly Subsidy, and farebox collections. A final agreement with full fiscal analysis will return to Council at the time of contract award. CONCURRENCES The Mass Transportation Committee (MTC) will be notified of the RFP at its November 10th meeting. Any significant additional comments or suggestions by the MTC regarding the RFP will be forwarded to Council by Council Correspondence prior to the Council meeting of November 17th. Packet Pg. 94 MTC Discussion on RFP Scope of Work Date November 10. 2015 Council Studv Session on RFP November 17. 2015 Council Authorization for RFP 12/1/15 or 12/15/2015 Issue Request for Proposals RFP on Ebid Board December 16, 2015 Pre-Proposal Conference (2:00 p.m PST ) January 27, 2016 Submit Questions & Clarifications 4:00 p.m. PST) February 5. 2016 SLO TRANSIT Response to Submitted Questions February 19. 2016 Pro osals Due 3:00 R.m. PSju March 9.2016 Pre -Award Survey and Screening March 23. 2016 Interview with Selected Contractors March 30, 2016 City Council Award Contract Mav 3.2016 Executes Agreement with Selected Contractor Mav 4.2016 Pre -Start Up Meeting with Selected Contractor Mav 4. 2016 Contractor Starts Service .lull 1. 2016 Table 2 — Transit RFP Tentative Schedule It is anticipated that the new Contract Award will need Council approval by early May in order to allow the successful contractor adequate time to begin the startup process and begin service by July 1, 2016. Obviously, if the current contract becomes the successful bidder on the contract that date will not be as crucial. A team of industry professionals, both from within the City and outside the City, will review each proposal according to pre - established grading criteria. The top rated vendors will then be invited to formal interviews and final negotiations. The winning proposer (selected contractor) will then be recommended to Council for consideration and award. The new contract will become effective July 1 St, 2016. FISCAL IMPACT The adopted, 2015 -17 budget for the Transit Enterprise Fund included some costs increase assumptions consistent with historic rate increases along with the results of the Short Range Transit Plan. Ultimately, the funding for the of the City's transit operations and maintenance will be from the City's annual distribution of Federal Transit Administration Section 5307 funds, Transportation Development Act (TDA) funds, the Cal Poly Subsidy, and farebox collections. A final agreement with full fiscal analysis will return to Council at the time of contract award. CONCURRENCES The Mass Transportation Committee (MTC) will be notified of the RFP at its November 10th meeting. Any significant additional comments or suggestions by the MTC regarding the RFP will be forwarded to Council by Council Correspondence prior to the Council meeting of November 17th. Packet Pg. 94 Study Session: Transit Operations & Maintenance Contract Request for Proposals Presented By Gamaliel Anguiano, Transit Manager History Last O&M Contract was created in 2005 Awarded to First Transit Inc. thru similar RFP process Contract commenced July 1st 2006 Contract was for 3 years and with 7 possible one-year extensions Current contract has exhausted all extensions Set to expire June 30th 2016 Purpose of an RFP "The RFP process is meant to bring structure and transparency to the procurement decision, while reducing risk through open requirements and discussion.“ GOAL: Create an attractive contract that is both fair for the CITY and potential Contractors Purchased Services Operations: Driver & Staff employment Abide by schedules and routes established by the City Operate City owned buses to provide the public service Maintenance: Prepare and abide by vehicle maintenance schedule Ensure fleet readily available for operational requirement Make certain fleet is safe, operable and accessible (ADA) Federal Transit Administration Guidance FTA no longer requires prior approval for contract terms longer than five years, grantees remain responsible for conducting their procurement transactions in accordance with the “full and open competition” principle Notable Features New contract is for 4 Years and with 3 possible one- year extensions “Best-In-Value” vs. Lowest Price New RFP based on recommend RFP “template” Innovative RFP Evaluation Scoring Method More robust language Standardized verbal arrangements, current practices and staff positions Structure of RFP Packet Request For Proposal (RFP) Public notice of solicitation of Bids Method in which Bids should be provided Method in which Bids will be evaluated, scored & awarded Method in which to protest an award and the process Scope of Work (SOW) Description of job duties and functions Appendixes with detailed information Draft Contract Legal and binding language Changes to Current RFP Contract C.Revamp Liquidated Damages System peer comparison Adjust and create new Penalties & Incentives D.“Future Proof” Accommodation for SRTP route changes Updatable Appendixes A.Better Define City Role Establish the Authority the City has in respects to the contract and the work to be performed B.Formalize & Document Current Working Practices Verbal agreements Staffing Positions Penalties & Incentives (Liquidated Damages) SLO (New) Vehicle Cleanliness Related Issue $100 Facility Cleanliness Related Issue $100 Facility Damage At Cost + $100 Late Departure /Pull-Out (leaving more than ≥5 min of posted $100 Early Departure / Pull-Out (leaving 1+ minute earlier than post $200 Off-Route $50 Missed Run/Trip (leaving ≥ 15 minutes of posted schedule)$250 Missed-Stop(s) [per stop]$50 Missed Passenger(s) [group per stop]$50 Failure to Operate Service (At-All)Equal To Daily Cost + $1000 On-Time Performance <95%$250 On-Time Performance <90%$500 On-Time Performance <85%$1,000 Unsatisfactory CHP Rating (per report)$400 Failure to Employ (management)150% of Wage (inc fringe) Failure to Report (off routes, early, hot, etc.)$100 Late Report [(general monthly reports) past 10th day]$50 Farebox vs. Deposit Shortage (%) Diff reconciliation If > 0.5% of GFI Report Uniform Non-Compliance $25 Failure to Announce Stops (ADA)$100 Preventable Accident $50 Improperly Licensed Driver (endorsements)$1,000 Failure to Abide City Policies $100 Failure to load passenger before driver swap $50 Fare Evasion by Driver $50-$100 plus Fare Failure to pass FTA Audit of Drug & Alcohol Testing $500 NEW: Breaking CA DMV Vehicle Code $500 Non-Compliance Preventative Maint Schedule $200 Non-Compliance Facility Maint Schedule $200 Inoperable Lifts/Non ADA compliance $250 Misuse of Fuel (stealing fuel, other than for service)$200 SLO Future No accidents 100K miles between accidents $75 No accidents 70K miles between accidents $50 No accidents 50K miles between accidents $50 On-Time Performance ≥ 98%$100 On-Time Performance ≥ 95%$100 Total:$375 St a f f P e r f o r m a n c e Ma i n t . Incentives: Issued Quarterly In c e n t i v e s Penalties: Issued Monthly (per occurrence) Cl e a n Sc h e d u l e A d h e r e n c e Pe r f o r m . Re p o r t i n g Timeline for RFP Process Event/Task Date 1: MTC Discussion on RFP Scope of Work November 10, 2015 2: Council Study Session on RFP Scope of Work November 17, 2015 3: Council Authorization for RFP December 15, 2015 4: Issue Request for Proposals (RFP) on Ebid Board December 16, 2015 5: Pre-Proposal Conference (2:00 p.m. PST)January 27, 2016 6: Submit Questions & Clarifications (4:00 p.m. PST)February 5, 2016 7: SLO TRANSIT Response to Submitted Questions February 19, 2016 8: Proposals Due (3:00 p.m. PST)March 9, 2016 9: Pre-Award Survey and Screening March 23, 2016 10: Interview with Selected Contractors March 30, 2016 11: City Council Award Contract May 3, 2016 12: Executes Agreement with Selected Contractor May 4, 2016 13: Pre-Start Up Meeting with Selected Contractor May 4, 2016 14: Contractor Starts Service July 1, 2016 Anticipated Outcomes Competitive bidding for O&M services Preservation of current level, if not achieve better, service Stable and predictable expenditures Questions?