SR-032508-1E~~
City Council Report
City of
Santa Monica
City Council Meeting: March 25, 2008
Agenda Item:
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 athree-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 fora 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 41603.55501 B.
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 fora 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
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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
fora 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.
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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:
Period 1:4/01/08-6/30/08
Period 2: 7/01/08-6/30/09
Period 3: 7/01/09-6/30/10
Period 4: 7!01/10-3/31/11
Total: 4/01 /08-3/31 /11
MV Transportation
$ 137,287.00
559,529.00
582,569.00
604,733.00
$1,884,118.00
Transportation Concepts
$ 149,086.00
615,664.00
636, 548.00
661,112.00
$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
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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.
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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 41603.55501 B 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:
ie Negriff
of Transit Services
Attachment A: Cost Analysis
Ewell
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Attachment A
Contract vs. In-House Services Cost Comparison
(Bid nz9zs>
MV Transportation
Period 2: FY 2008-09
1 Project Manager
2 full-time equivalent (FTE) Dispatcher/Customer Service
1 Lead Dispatcher/Customer Service
6 FTE service vehicle tlrivers
Ovemead -Includes hiring, training, payroll, personnel administration, health benefits,
uniforms, tools, safety equipment, and vacation/sick/holitlay leaves.
Total. $559,529.00
T~Inln9, ~ ., ... ..~ , ..~ - _ .., _- ... -...,. ...~
Bitl requires vendor to provide trained personnel.
Total' $000
Bitl requires ventlor to provide working facilities, offce space antl vehicle storage space
requires Vendor to provide uniforms.
MV Trans orlalfon 1 Price: E559,529.00
Period 1
Period 2
Period 3
Period 4
In-House
Period 2: FY 2008-09
1 FTE supervisor $74,410.00
1 FTE mechanic $81,601.00
].33 FTE coach cleaner $19,958.00
3 FTE dispatchers $210,3fi3.00
6 FTE Motor Coach Operators ~ $314,856.00
;a) The pay scale is based on the xxxx position
;b) The pay scale is based on the yyy position Total: $701,188.00
'rl Inrl„riot ealarice A. f,inne Fenem..
'CShcq)Ji9 for Ppstin9'1~A1~ .. ~ ,,: .. ",.
Ongoing annual training to mamlain required certifications ~ $3000.00
Total $3 000 00
Uniform Service Value
Non-labor maintenance $23,884.00
Fuel (77,280 annual vehicle miles, $27,048.00
10 miles per gallon gasoline, $3.50
per gallon)
In-House COSt Estimated for Period 2: $773,920.00
MV Trans ortatlo In-HOUSe•• OlTference % Difference
4/01/08-6/30/08 $137,287.00 $193,480.00 ($56,793.00) -q7%
7/01/08-6/30/09 $559,529.00 $773,920.00 ($274,391.00) 38%
7/01/09-6/30/10 $582,5fi9.00 $812,616.00 ($230,047.00) -39%
7/01/10-3/31/11 $604,733.00 $639,935.10 ($35,202.10) -6%
Total $7,884,118.00 '$2,419957.70 $535,833.70
"" In-house cost /or Years 2 through 4 are basetl on est/matetl annual inflation or 5% /or wages, training, equipment & materials.
Reference Contract
No. 8902 (CCS).