sr-111009-3bCity Council Meeting: November 10, 2009
Agenda Item: ~J"~
To: Mayor and City Council
From: Carol Swindell, Finance Director
Subject: Taxicab Franchising RFP Evaluation Factors
Recommended Action
Staff recommends that Council review and provide feedback on the taxicab franchise
request for proposals evaluation criteria and process.
Executive Summary
At the introduction and first reading on June 30, 2009 of an ordinance establishing
franchising to regulate taxicab operations, Council requested information on the criteria
for franchisee selection prior to issuance of the competitive Request for Proposals
(RFP). This report summarizes the RFP process, details the criteria the committee will
use to develop its recommendation and provides Council the opportunity to clarify or
provide input on the criteria and/or process. There are no budget actions necessary as
part of this report, however, the resulting franchise(s) may have a financial impact that
will be detailed at the time the results of this RFP are brought to Council.
Background
In October 2006, the Task Force on the Environment recommended to City Council that
it direct staff to develop an ordinance initiating a franchise system and awarding
franchises only to taxi companies whose fleets met specific emission and mileage
standards. At their February 10, 2009 meeting, City Council reviewed a study by
Nelson\Nygaard related to taxicab operations in Santa Monica and directed staff to
return with additional information related to the operations, franchise system and
alternatives to franchising. At the March 3, 2009 Council meeting, Council directed staff
to move forward with the establishment of a taxicab franchise. On June 30, 2009,
Council adopted an ordinance establishing a taxicab franchise system and provided
direction on including various elements in the evaluation process, such as a preference
for local providers, depth of senior discounts and benefits provided to drivers.
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Discussion
As required by Ordinance No. 2292 (CCS), the City will utilize a competitive RFP
process to select at least one but no more than eight operators to which taxicab
franchises will be issued. Each operator will be required to operate a minimum of
twenty-five vehicles. The total number of vehicles authorized to all operators will not
exceed two hundred fifty
Request for Proposals notifications will be sent to all taxicab companies currently
operating in Santa Monica or that have franchises in adjacent cities. All proposals
received will be evaluated by a committee composed of representatives of the Finance
Department, Police Department, Gity Manager's Office, and outside jurisdictions that
currently manage franchised taxicab operations. Following the review, the committee
may request clarifying information from taxicab companies in writing and/or via an
interview of short-listed firms. The committee will review all proposals against the
criteria established in SMMC 6.49.040 and listed below. The committee's
recommendations will be presented to Council for Council for its vote on the award of
the franchise(s).
Proposals will be evaluated based on the following criteria:
• Proof of financial stability, demonstrating ability to provide taxicab services in
compliance with City ordinances and regulations and the bidder's proposal.
• Experience in providing taxicab services during the last ten years, including
demonstrated quality of service and safety.
• Character of operator and drivers, including verification of insurance; record of
violations by the bidder or bidder's drivers of federal, state or local law, litigation
history, and compliance with rules and regulations relating to taxicab operations,
particularly safety operations.
• Proposed business and management plan.
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• Extra services available to the public, including proposed discount fares for senior
and mobility impaired customers.
Fleet composition, including annual minimum number of vehicles meeting
ULEV/SULEV/LEV and other low-emission standards, use of alternative fuel
vehicles and the age and condition of the proposed fleet.
• Driver training and qualifications, testing, supervision and life/health/disability benefit
plans.
• Operator/driver financial relationships including leasing, fees, memberships and all
other relationships.
Operator's business location and use of a centralized dispatch system, including a
local preference.
Financial Impacts & Budget Actions
A financial impact analysis will be presented as part of the recommendation to award a
franchise.
Prepared by: Pamela McGarvey, Revenue Collection Administrator
roved:
Carol Swindell
Director of Finance
Forwarded to Council:
Manager
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