SR-05-12-2015-3LRecommended .fiction
Staff recommends that the City Council:
1. Authorize the continuation of Project Homecoming through the purchase of bus
tickets from Greyhound Lines, Inc., a Texas -based company, for a five year
period beginning July 1, 2015 through June 30, 2020.
2. Authorize the Purchasing Services Manager to issue a purchase order with
Greyhound Lines, Inc., a Texas -based company, for bus transportation in the
amount not to exceed $70,000 for one year, with four additional one -year
renewal options to extend on the same terms and conditions for a total not to
exceed $350,000 over a five -year period. This is a sole source purchase with
future year funding contingent on Council budget approval.
Executive Summary
Since 2006, the City's Project Homecoming has reconnected homeless individuals with
friends and family outside of Santa Monica who can offer permanent housing and
support to their loved one. Through the City budget adoption process, Council
authorized approximately $52,267 for the Project Homecoming program to purchase
bus tickets through Greyhound Lines, Inc. To date Community and Cultural Services
and the Police Department have purchased bus tickets from Greyhound via purchase
order. However, in response to revisions to the City's procurement guidelines,
Community and Cultural Services and the Police Department seek Council approval to
continue purchasing bus tickets at an annual cost not to exceed $70,000 for up to five
years, at a total cost not to exceed $350,000, to meet Project Homecoming demand.
Background
Project Homecoming (the Project) is a City family reunification initiative launched in May
2006. The Project is administered by City staff through referrals from local non - profit
service agencies. Through the Project, homeless individuals who are not eligible for or
otherwise lack regional housing options can request assistance in reconnecting with
family and friends in their home community who agree to provide ongoing support and
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housing. Service providers speak with the receiving household, and confirm that they
will welcome and support the Project participant in their home. When housing is
confirmed and participants have completed a background check, Human Services
Division staff arranges the purchase of a bus ticket from Greyhound. Service providers
conduct follow -up calls at 2 week, 3 month and 6 month intervals to ensure participants
have arrived at their destination and remain stably housed.
Since its inception, the Project has been a collaborative effort between the Community
and Cultural Services Department and Santa Monica Police Department, both of whom
track Project usage and referrals from their respective non - profit grantees. In order to
manage their grantees independently, each department allocates funding for ticket
purchases within their department budgets. The FY 2014 -15 approved budget for bus
ticket purchases is $27,000 annually in the Community and Cultural Services
Department and $25,267 annually in the Police Department, for a total of $52,267.
Based on actual expenditure since 2006, the program has helped 1,669 people reunify
with their families and friends at an average cost per person of $214.00. With affordable
housing in such short supply in the county, Project Homecoming offers a cost effective
option for securing safe and stable housing for people experiencing homelessness who
have loved ones willing to provide for them.
Discussion
Greyhound Lines continues to be the most cost effective and programmatically feasible
means of transporting Project participants from Santa Monica to the hometowns of
family or friends who are able to provide them with permanent housing and ongoing
support. Since program inception, the three most frequent destinations participants
have returned to are Seattle, WA, New York City, NY, and Houston, TX. A cost
comparison between the cost of an airline ticket and Greyhound bus ticket is as follows:
• New York City: airfare is $535; bus fare is $285
• Seattle: airfare is $356; bus fare is $174
• Houston: airfare is $238; bus fare is $197
frir.
There is an average savings of $158 per ticket to send participants to these three
destinations via Greyhound. Greyhound fares are also refundable if not picked -up,
whereas most discounted airline tickets are non - refundable and non - transferable. In
addition, Greyhound has a flexible policy regarding forms of identification required for
travel. Many of the individuals who participate in Project Homecoming do not have valid
government issued photo identification, which is a barrier to air travel. Greyhound allows
participants to travel without a government issued identification card. Finally, Greyhound
is the only national bus service with regularly scheduled routes to a wide variety of
locations.
Vendor /Consultant Selection
Section 2.24.080 (d) of the Municipal Code allows for exception to the competitive
process when competition does not exist because only one vendor possesses the
unique ability or capability to meet the particular requirements of the solicitation, such as
a good or service that is otherwise only available from the one provider. Staff
recommends Greyhound Lines, Inc. to provide bus tickets on a sole source basis.
Since 2006 the purchase of tickets were done on fiscal purchase orders under the
approval of the City Manager. With the recent revisions to the City's procurement
guidelines, the purchases were calculated on a cumulative total and Finance
recommended the authority be requested from Council since it exceeded that of the City
Manager.
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Financial Impacts and Budget Actions
The sole source purchase order to be awarded to Greyhound Lines, Inc. is for an
amount not to exceed $70,000, with four additional one -year renewal options not to
exceed $350,000. Funds are included in the FY 2015 -17 Proposed Budget in the
Community and Cultural Services and Police Departments. The purchase order will be
charged to accounts 012628.561404 for the Community and Cultural Services
Department and 01306.555010 for the Police Department. Future year funding is
contingent on Council budget approval.
Prepared By: Deidre Mumford, Administrative Analyst
Approved Forwarded to Council
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Karen Ginsberg, � ?irectot of ComW80140 6
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Blaine M Polachek, Interim City M5004365
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