City Council Meeting: March 25, 2008

Agenda Item: 1-E

To: Mayor and City Council

From: Stephanie Negriff, Director of Transit Services

Subject: Contract for Dial-A-Ride Paratransit Service

Recommended Action

Staff recommends that City Council award Bid #2926 to MV Transportation at specified prices, and authorize the City Manager to execute a three-year contract with them to provide Dial-A-Ride paratransit services.

Executive Summary

Santa Monica Dial-A-Ride is a curb-to-curb paratransit service to Santa Monica seniors adults with a disability. In January 2008, the City published Notices Inviting Bids to provide Dial-A-Ride paratransit services for the Big Blue Bus in accordance with City specifications. Two firms submitted bids, the current contractor Transportation Concepts and MV Transportation. Both firms are highly qualified and have good reputations. The basis for selection of MV Transportation was the cost to the City, wages and benefits paid to contract employees and trainees, and driver staffing levels. The contract with the new provider will allow for a 30-day notice to terminate should the Council, in future contracting policy decisions, decide to bring these services in-house. Funds for this service are available from account number 41603.55501B.

Background

Santa Monica Dial-A-Ride is a curb-to-curb paratransit service offered to any Santa Monica resident who is at least 60 years old or who has a disability and is at least 18 years of age. Clients make phone reservations for trips to and from any location within Santa Monica, for any purpose, seven days a week. On designated days, trips are offered to select medical facilities outside of Santa Monica. Evening service to any location within the City is provided on City Council meeting dates and monthly shopping excursions are also offered. The fare is 50 cents per one-way trip. Personal attendants may ride along for a 25 cent fare. In addition to passenger fares, the program is funded by Proposition A Local Return Transportation funds. The City has contracted for this service since 1983.

WISE and Healthy Aging promotes the service in the community, processes client registration forms, and conducts monthly orientation programs for new Dial-a-Ride patrons. Big Blue Bus provides overall management including quality control, community liaison, and the development of service innovations. The contractor will clean and maintain the six City-owned paratransit vehicles as well as perform reservation, dispatch and driver functions. The current service agreement with Transportation Concepts for providing paratransit services has been extended on a month-to-month basis since May 1, 2007. The contract with the new provider will allow for a 30-day notice to terminate should the Council, in future contracting policy decisions, decide to bring these services in-house.

Staff conducted a cost and benefits analysis to compare operation of the service by the proposed contractor with operation by City employees. Excluding recruitment costs and using Big Blue Bus wages and benefits for equivalent staff positions, costs for small vehicle repairs and maintenance, fuel, office space, general office supplies, equipment and other costs, the estimated cost if operated by the City for fiscal year 2008-09 would be $773,920, or 38 percent more than proposed by MV Transportation (Attachment A).

An additional factor is that operation by the City would significantly reduce service reliability. Big Blue Bus has an average weekday deficiency of 36 bus operators, in spite of on-going joint recruitment and retention efforts by Big Blue, Human Resources and Risk Management. Absences due to workers’ compensation, Family Medical Leave, Pregnancy Disability Leave, short-term illness, and other types of leave such as jury duty and bereavement account for most of the shortage. By operating the service in-house, the risk of degradation is increased for both fixed route and Dial-A-Ride routes. In addition, assuming the operation of the Dial-A-Ride service would hamper efforts to implement or increase regular fixed route bus services, including Mini Blue community transit.

Discussion

In January 2008, the City published Notices Inviting Bids to provide Dial-A-Ride paratransit services for the Big Blue Bus in accordance with City specifications. Bid forms were mailed to 22 vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Two bids were received and publicly opened on February 11, 2008 as follows:

Vendor : MV Transportation Transportation Concepts

Period 1: 4/01/08-6/30/08 $ 137,287.00 $ 149,086.00

Period 2: 7/01/08-6/30/09 559,529.00 615,664.00

Period 3: 7/01/09-6/30/10 582,569.00 636,548.00

Period 4: 7/01/10-3/31/11 604,733.00 661,112.00

Total: 4/01/08-3/31/11 $1,884,118.00 $2,062,410.00

Both firms proposed one full-time project manager fully dedicated to Santa Monica Dial-A-Ride and three full-time equivalent (FTE) dispatch/reservations/clerical positions. MV Transportation however proposed six FTE drivers while Transportation Concepts proposed four-and-one-half FTE drivers.

Staff has evaluated the bids and interviewed both firms. The bids were rated on relevant experience, financial stability, past performance, cost of service, and managerial considerations including the relevant experience of proposed staff, operating methodology, vehicle maintenance, and operating plan.

Both firms are highly experienced with paratransit for seniors and people with disabilities and have good reputations. Transportation Concepts has provided good service for the City since 2000 and their project manager and senior executives have maintained a good working relationship with City staff over the years. Staff contacted several public agencies large and small that contract with MV Transportation for paratransit and received excellent evaluations of the level of service provided.

Staff noted that a higher level of labor stability was achieved when the Dial-a-Ride contract was extended and came under the provisions of the Living Wage Ordinance. This indicated that wages are a key factor for maintaining the highest of level service and customer satisfaction. As both firms are highly qualified, the evaluation of the bids focused on proposed wages and benefits for the staff as well as cost to the City.

MV proposed wages for drivers and dispatch/reservations/clerical positions that are approximately four percent higher than Transportation Concepts and project manager wages 42 percent higher than Transportation Concepts. MV Transportation proposed benefits for all positions that are over 80 percent higher than those proposed by Transportation Concepts. MV will also include trainees under the provisions of the contract, paying the City’s Living Wage which is $12.48 per hour in fiscal year 2008, while Transportation Concepts will not include trainees as working for this specific contract and will pay trainees $10.00 per hour.

Staff recommends MV Transportation to provide the Dial-A-Ride paratransit services based on the City’s best bidder criteria, as set forth in Santa Monica Municipal code Section 2.24.072 as follows:

1. MV Transportation proposed higher wages and benefits for project employees including trainees, encouraging consistent staffing levels that are essential for the reliability of the service.

2. MV Transportation submitted a competitive price for service related to the operation of paratransit service at the level and quality required by the City.

3. MV Transportation was more responsive to the bid requirement of assuring a higher quality and level of service by proposing higher driver staffing levels.

Adequate staffing levels for drivers and higher wages and benefits have proven to be a key element in sustaining the high quality of service required by the City.

Financial Impacts & Budget Actions

This is a multi-year contract beginning April 1, 2008. The estimated expenditure over three years is $1,884,118. Funding for the first three months of the first year of the proposed contract is included in account number 41603.55501B in the City's FY2007-08 budget. Budget authority to fulfill contract payment obligations in subsequent years will be included in each annual proposed City budget.

Prepared by:

Paul Casey, Senior Transit Programs Analyst

Approved:	Forwarded to Council:
Stephanie Negriff Director of Transit Services	P. Lamont Ewell City Manager

Attachment A: Cost Analysis