SR-1000-002-04 (2)
BBB:SN:JdM:DF:PC:f\trans\admin\council\Dial-a-RideRejectProposals2003.doc
Council Meeting: September 23, 2003 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Reject All Proposals to Provide Curb-to-Curb Paratransit Service and
Extend the Current Contractor’s Agreement On A Short Term Basis Until
An Amended Invitation for Bid Process is Completed and a New Contract
Is Awarded
INTRODUCTION
This report recommends that the City Council reject all proposals to provide curb-to-
curb paratransit service received August 5, 2003 and extend the existing contract with
Transportation Concepts, Inc. on a short-term basis until an amended Notice Inviting
Bids is completed and a new contract is awarded by the City Council.
BACKGROUND
On July 7, 2003, legal notice was published soliciting proposals to operate curb-to-curb
paratransit service beginning October 1, 2003 for a three-year period with the provision
for two one-year extensions. The notice was printed in the Los Angeles Times and
Passenger Transport, a transit industry publication. Four firms submitted proposals
before the deadline on August 5, 2003.
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DISCUSSION
Staff learned on September 9, 2003, that an additional firm had requested in March
2003 to be placed on a bidder’s list to receive an RFP. The process for the paratransit
proposal solicitations was based on firms responding to the legal notice by requesting
the RFP via electronic mail. Staff did not maintain a bid list to avoid the expense and
potential for error of mailing out paper copies to firms that may have changed address
over the years or gone out of business. Staff has gone to this format to reduce bidding
irregularities. Legally, the bidding process was correct, however, the excluded firm was
not notified of the change in procedure. The staff report recommending a service
provider for the paratransit service was withdrawn from the September 9, 2003 City
Council Agenda based on this finding.
The current contractor’s agreement, which expires September 30, 2003, must be
extended until a new bid process can be completed. To not extend the contract would
leave Santa Monica Dial-a-Ride without an operator. Transportation Concepts has
agreed to provide the service on a month-to-month basis until a new operator is
selected.
Rejection of all proposals would allow the City to improve the selection process for the
paratransit service provider by issuing a Notice Inviting Bids and would provide for the
possible expansion of the scope of services.
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BUDGET/FINANCIAL IMPACTS
Transportation Concepts is experiencing increased insurance and workers
compensation costs. During the extension period staff recommends increasing the
current hourly rate from $52.25 to $53.48. This $1.23 increase is consistent with the
City’s budgeted Consumer Price Index increase for FY 2003-04. The monthly cost is
estimated to be approximately $42,000 with a total not to exceed $317,000. Budget
authority is in Account 41603.55501B.
RECOMMENDATION
It is recommended that City Council reject all proposals to provide paratransit service
received on August 5, 2003 so that an amended Notice Inviting Bids may be published
and that the contract with Transportation Concepts, Inc. be extended on a monthly
basis, in an amount not to exceed $317,000, until a new provider is selected.
Prepared by: Stephanie Negriff, Director of Transit Services
Janeene de Martinez, Assistant Director, Transit Finance and
Business Services
David Feinberg, Acting Deputy Director
Paul Casey, Senior Transit Programs Analyst
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