SR-062596-6N
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JUN 2 5 1995
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Council Meet~ng: June 25. 1996
Santa Monlca, Callfornla
TO: MAYOR AND CITY COUNCIL
FROM: CITY STAFF
SUBJECT: Authorlze the City Manager to Negot~ate an Extension of
the Contract with Diversified Paratransit, Inc. to
Provlde Tide Shuttle SerVlce Until September 29, 1996
Introduction
Th~s report requests that the city council author~ze the city
Manager to negotlate and execute an extension of the agreement
with Diversified Paratranslt,Inc. to provide Tide shuttle service
between downtown Santa Monica and Maln Street, from Monday, July
1, 1996 to Sunday, September 29, 1996.
Background
At its January 9, 1996 meeting, the city Councll approved
extending the operation of the Tlde shuttle from a seasonal
serVlce to a year-round serv~ce.
At that tlrne staff lndicated
that they would return to Council with a proposal for operating
service after June 30, 1996.
In addltion, at lts March 26, 1996
meeting, the city Council approved the procurement of three
electric shuttle vehicles to be used on the Tlde serVlce.
Staff has been planning for the introductlon of the electric
vehicles into the Tide service.
\hth the lntroduction of the
electric veh~cles, the City wlll no longer pay Diversified
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JUN 2 5 1996
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paratransIt, Inc. for the proviSIon and maintenance of the TIde
vehicles SInce the CIty will assume these functions.
Additionally, operation of the electric vehicles will alter the
contractual requirements for drIver traIning and other
operatIonal Issues. Rather than proceedIng WIth a bid for a
contract whose conditions will change after two months, it will
be best to extend the current agreement until the new electric
vehicles arrive.
Extending the agreement WIth DIversifIed Paratransit, Inc. will
enable the C~ty to continue the T~de serVIce "....ith the eXIstIng
shuttle vehIcles until the electric vehicles arrive and can be
placed into serVIce later this year. DiverSIfIed has indicated
that they WIll contInue the serVIce through Sunday, September 29,
1996 at the current rate of $35.99 per hour.
This extenSIon will be in effect during the perIod in which staff
will be conducting a bId process to select one or more operators
for the TIde and WISE services. City staff and WISE staff WIll
work together to evaluate and recom~end an approprIate operator
for these serVIces.
Financial AnalYSIS
The maximum cost of the Main Street service from July 1 untIl
September 29, 1996 \Hll be approxImately $69,000. A total of
$100,000 In prOposltlon A Local Return Funds is Included in the
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Plaza Holiday Inn, Loews, Doubletree Suites Hotel, and Shutter's
at the Beach will contrlbute $130,000 in funding as requlred
under the terms of their development agreements.
In addition,
the Clty will also recelve $140,000 from the South Coast Air
Quality Management District (AQMD) to offset the first year
operating costs of the electric shuttle vehicles.
Expenditures
for promotion and lnformatlonal materials are expected to be
greater thls year due to the lntroduction of the electric shuttle
vehicles.
These costs will be financed from the City's
Proposltion A Local Return portlon.
BudgetjFinanclal Impact
The $100,000 in Local Return funds for thlS service have been
included in the FY 1996-97 Proposed Budget at account number 20-
700-695-74111-7770-00000.
The hotels' contrlbution of $130,000
has been included at account number 01-700-274-00000-7828-00000.
The $140,000 from the AQMD is proposed for incluslon at account
number 20-700-695-00000-7828-00000.
Recomnendation
City staff recommends that the City council:
1) Authorize the City Manager to extend the agreement wlth
Diversified paratransit, Inc. to continue to provlde shuttle
transit services from July 1, 1996 to september 29, 1996, at a
cost of $35.99 per hour.
Prepared by: J. B. Catoe, Jr., Dlrector of Transportatlon
J. Stitcher, Senior Admlnistrative Analyst
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