HomeMy WebLinkAboutAgenda Statement 1979/07/24 Item 18CITY OF CHULA VISTA
COUNC I L AGENDA STATEMENT ~ Item No. 18
For meeting of 7/24/79
Re~~iution 910 9~.Awarding Contract and Approving
Agreement Between Community Transit .Services and
ITEM TITLE the City of Chula Vista for Management and
Operation of Specialized Transportation System
(Handytrans) for Chula Vista Elderly & Handicapped
SUBMITTED BY Development Services Administrator ~~),
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO x )
Requests for Proposals (RFP's) for management and operation
of Chula Vista's proposed specialized transportation service
(Handytrans) for area elderly and handicapped were sent out
on April 10, 1979, to 45 private and public transportation
providers in Southern California. Four bids were received
by staff and one was a "No Bid." After detailed discussions
with the remaining bidders reg arding project operation and
required equipment, the following revised bids were
received:
Mac's Hack $171,604
Chula Vista, CA
Community Transit Services 172 171
(CTS), Anaheim, CA
Taylor Bus Service 138,165
Anaheim, CA
Mac's Hack, a local taxi service, had neither prior
experience in elderly and handicapped transportation service
nor in dealing with social service agencies. They also had
a poor understanding/approach of the project. Based upon
written responses to the RFP, oral interviews, and reference
checks, I recommend that Council award the Handytrans
contract to CTS. I offer the following five reasons as
justification for awarding this contract to a firm which was
not low bidder:
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UtiD•111~Lt-V1`t EXHIBITS ~c.onLinuea on supplemental page)
Agreement Resolution x Ordinance Plat Notification List
Other Nletno ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
Sufficient funds are budgeted in FY 1980 Transit Service Account
236-2360-5203. Refer to Page 4 of Transit Coordinator's memo for
detailed listing of applicable costs and revenues of Handytrans
program.
STAFF RECOMMENDATION
Adopt resolution awarding contract and approving agreement between
Community Transit Services and the City of Chula Vista for management
and operation of Handytrans.
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
~ ~ `~ by tlt~ Ci+.y Cc,;tr~ci! of
` C~~la Vila, California
~-°~'~ Form A-113 (Rev. 5/77)
Agenda Item No. 18
For Meeting of 7/24/79
Supplemental Page Two
1. CTS has had l~ years of experience in providing si-nilar
types of transit service throughout the country. They
currently operate ].5 specialized transit systems
throughout California and have had an excellent overall
record of service provision. Taylor Bus Service, on
the other hand, is a large school bus operator and does
not presently operate any such specialized transit
system(s). They formerly operated two similar type
systems in Orange County and the Transit Coordinator
received overall negative reports on Taylor's operation
of these systems. These reports centered on Taylor
bidding too low on the respective contracts for system
operation and then coming back for additional funds in
order to continue to provide service as well as not
providing an adequate number of vehicles and trained
drivers.
2. This is a demonstration program that is anticipated. to
provide innovative techniques of providing needed
transit service to area elderly and handicapped and to
reduce duplicative existing social service agency
transportation services. Its duration as presently
scheduled will only be for a twelve month period. This
program will be evaluated on the local, regional,
state, and federal levels.
3. Service provision required will be of a complex
technical nature. Effective social service agency
coordination is also a prime factor of success of this
program.
4. The City requires a firm such as CTS to meet the
desired objectives listed above. CTS has also been
found to have greater ex perience as well as higher
overall success in providing similar type transit
service provision throughout the State.
5. Cost is only one of the following five unranked
criteria that were listed in the RFP on which the City
would base its decision on as to which bidder would be
the most eligible/suitable transportation provider for
Handytrans operation.
1. Cost per vehicle service hour
2. Relative firm experience and abilities
3. Relative staff experience and abilities
4. Reasonableness of proposed cost details
5. Training and start-up program and costs
Please refer to the attached memo from the Transit
Coordinator to me which details all of the above reasons
G~~ Z
Agenda Item No. 18
For Meeting of 7/24/79
Supplemental Page Three
justifying my recommended choice of CTS as providing the
management and operation of Handytrans.
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CTS has agreed to a cost plus fixed fee contract with their
bid price of $172,.171 being the maximum price that can be
charged to the City. Please refer to Exhibit B of the
agreement for a detailed breakdown of CTS' proposed costs of
operation of Handytrans. Basically, CTS will provide the
following:
1. 4 vehicles (vans)
2. 4 radios and 4 fareboxes
3. Dispatch facility
4. Maintenance, fueling, and storage of vehicles
5. Insurance
5. Project record-keeping
The anticipated start-up date of Handytrans is October 22-
November 12, 1979. Please refer to the attached memo for a
review of the basic Handytrans operational guidelines, which
were formulated by staff in conjunction with area social
service agencies. These guidelines will be reviewed and
modified, if need be, by the five member Technical Advisory
Committee on Elderly and Handicapped Transportation Service
which was recently established by the Council.
This is a transportation demonstration program funded for a
twelve month period of system operation with a possibility
of continued outside funding upon expiration of the initial
demonstration time period. I believe that the more
successful the program, the higher the probability of system
operation after the one year demonstration period and
conversely, the less successful, the slimmer the chances of
continued system operation. Regardless, the City will be
under no financial or contractual obligation whatsoever at
the end of the demonstration period.
July lg, 1979
File DP-014
To: W. J. Robens, Development Services Administrator
From: Jack A. Bloom, Transit Coordinator CC~~
Subject: Award of "Handytrans" Contract
On April 10, 1979, I sent out requests for proposals (RFP)
for the management and operation of a specialized
transportation system for Chula Vista's elderly and
handicapped citizens. RFPs for operating this one year
demonstration program were mailed to 45 private profit and
non-profit transportation providers in Southern California.
On May 11, the deadline for receipt of bids, four bids were
received. One company, Paul's Lines, Inc., offered a "No
Bid ."
I would like to review in detail the other three bids.
Community Transit Services, Inc, was the apparent low bidder
at $143,0?_6. However, they did not include costs of leasing
the required number of vehicles needed for system operation
and thus later revised their bid to $172,172 which included
$29,156 for appropriate vehicle lease costs.
Taylor Bus Service' s original bid price was S 1 ~4 , 877.
However, their bid also needed to be revised due to bidding
on four rather than the required three vehicles which we
proposed to be in operation at any one time. Taylor thus
lowered their bid $25,71?. to $138,165.
Finally, Mac's Hack came in with an original bid of $231,202
and after detailed discussions with him on proposed project
operation, he also revised his bid downward to $171,604.
All of the final bids from the three firms do essentially
reflect the following items that staff requested offerors to
bid on in the RFP:
- 3 vans, all with wheelchair lifts, to be in operation
at any one time
- 1 van to be used as a spare vehicle
- 4 fareboxes and 4 radios
- Equipping and manning a dispatch
- Maintenance, fueling and storage
- Management and operation of the
- Vehicle and driver insurance
- Training all personnel
- Daily financial, passenger, and
facility
of vehicles
proposed service
operational record-keeping
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W. J. Robens
-2- July 18, 1979
Oral interviews of the three firms were held on May 23 and
were conducted by Gene Pound of Caltrans, you, and myself.
CTS and Taylor were essentially rated even and Mac's Hack
came in a distant third based on the following four
criteria:
1. Cost
2. Technical capabilities
3. Approach/Understanding
4. Personnel
Mac's Hack neither had experience in the field of solely
transporting only elderly and handicapped and dealing with
social service agencies nor did he have a reasonable
approach/understanding of the project.
Tavlor Bus Service's final bid was about $33,000 lower than
that of CTS for operation of the proposed system. However,
I made a reference check on Taylor as to the reasons why
they were no longer operating a couple of transit systems
for the handicapped in Orange County that were formerly
contracted to them. I found out that Taylor did not
actually comply with the terms of their signed contract with
the respective public agency as regards provision of an
adequate number of vehicles and trained drivers. Officials
of these public agencies stated that Taylor seemed to bid
quite low and then had to come back for additional funds to
recoup higher than anticipated costs of operation.
A thorough reference check was also performed on CTS. I
contacted most of the 15 agencies throughout the State that
contract with CTS to provide operation of similar type
transit systems. All the responsible officials of these
agencies that were contacted were quite satisfied overall
with the service provided by CTS. Not one of the officials
I contacted stated that CTS came back to them during system
operation requesting funds over and above their original bid
price. About five stated that due to good service
provision, their agency's contract with CTS was renewed for
an additional year without going out for competitive bids on
system operation again. CTS has operated other
transportation demonstration programs throughout the State
and seems to be quite well respected in the field of
transportation service provision for elderly and
handicapped.
I believe that my recommendation to contract with a firm
that is not low bidder is not only justified due to the
demonstration aspect of this program but, also, to the
complex technical nature of service provision required. The
project also requires specialized care and handling of
senior and handicapped riders by the system operator as
well. CTS is not only one of the few private firms managing
and operating similar transportation programs throughout the
State but based on a thorough reference check, they have
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W. J. Robens -3- July 18, 1979
proven to provide this specialized type of service quite
effectively and efficiently overall. The Assistant City
Attorney agrees with me that by going out for open and
competitive bidding, the City is only limited to awarding
the contract to the low bidder if the RFP specifically
states that to be the case. This RFP clearly states that
the contract will be awarded to the bidder whose proposal i~
determined to be the most advantageous and suitable when
considered in light of the following five unranked criteria:
1. Cost per vehicle service hour
2. Relative firm experience and abilities
3. Relative staff experience and ability
4. Reasonableness of proposed co st details
5. Training and start-up program and costs
Caltrans staff in San Diego and Sacramento has also
concurred with my decision.
CTS has agreed to a cost plus fixed fee contract with their
bid price of $172,171 being the maximum price that can be
charged to the City. This is broken down to a maximum cost
to be paid by the City of $159,1h7 and the maximum fee
charged by CTS of $13,002. Please refer to Exhibit B in
back of the City/CTS agreement which provides a detailed
breakdown of CTS costs. There is a good probability, I
believe, that as the proposed system becomes more efficient
and cost effective over the twelve month demonstration
period, CTS' bid price of $172,171 would be reduced.
CTS has informed me that suitable vehicles would be
available about 75 days after Council execution of contract.
Training of drivers and related personnel for the Chula
Vista operation would take approximately two weeks. CTS
will also have secured a dispatch office and minor vehicle
maintenance/storage facility within seven weeks. Thus I am
anticipating the effective start-up date of Handytrans to be
between October 22 and November 12, 1979.
Listed below are updated estimated revenues and costs of
this twelve month demonstration transit program:
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W. J. Robens
COSTS
CTS Contract 5172,171_
(Mgmt & Operation)
Estimated CTS
Costs & Fee For
1350 Additional
Hours of Service
4x,000
City Marketing
Planning and
Evaluation
TOTAL COSTS
5,000
$22..1, 171
-4-
July 18, 1979
REVENUES
SB283 Grant
Fares
City Gen. Fund
LTF _Ar t . 4 . 5
TOTAL REVENUES
$ 81,300
27,000
1,000
111,871
$221,171
Based on an approved LTF Article 4.5 claim by the City to
MTDB and CPO of $142,000, the Council budgeted $253,820 in
the FY 1980 Elderly and Handicapped Transit Service account.
This innovative program will be continuously monitored and
evaluated by the following agencies/firms during its twelve
month demonstration period:
1. The City
2. Caltrans
3 . * MTDB
4. *CPO
5. Crain and Associates, a consulting firm which is
contracting with UMTA and Caltrans to evaluate certain
transit demonstration projects in the State.
MTDB and CPO have approved the allocation of $11,920 to the
City of Chula Vista of LTF Article 4.5 funds for the support
of community transit services in FY80 subject to the
following
- that all Article 4.5 claims are approved as one-year
demonstration projects with no assurances of additional
TDA funding beyond FY80.
- that all operations funded under Article ~.5 are
expected to maintain a reasonable farebox recovery
ratio of at least llg. It is anticipated that
Handytrans will capture about 12~ of its operating
costs from the farebox in FY80.
- that if the Article 4.5 program is continued beyond
FY80, the allocation of future funds will be based on
the results of a regional study to be undertaken to
determine the most efficient and effective method of
coordinating community transit services throughout the
region. The study is to be a cooperative effort of
CPO, MTDB, and the operators of community transit
services.
W. J. Robens
-5-
July 18, 1979
SB 52(?, which recently was enacted into law by Governor
Brown, extends this LTF Article 4,5 program an additional
two years to FYR?_.
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Since July, staff has met with several area social service
agencies and other governmental organizations to discuss the
proposed operation of the system, I am proposing the
following operational guidelines, which will be reviewed and
modified if need be by the five member Elderly and
Handicapped Transit Technical Advisory Committee which was
recently established by the Council and is anticipated to
hold its first meeting in August:
- The service area of the system will initially be limited
to the existing Chula Vista Transit service area. If after
a f_ew months of operation it is determined that actual
ridership figures as well as qualitative rider and social
service agency surveys warrant expansion of the system, the
proposed system could operate in the National City and Otay
areas as well. National City would be contacted for funding
their portion of service provision at this time.
- Hours of operation will be 5:30 a,m, to 4:30 p.m., Monday
through Friday. It might well be determined that after a
couple of months of system operation ridership demand would
warrant expansion of the system, particularly in regards to
servicing medica]. and recreational trips, If that is the
case, staff would then closely examine the feasibility of.
expanding operating hours to perhaps 8:30 a.m. to 5:30 p.m.
Monday through Friday and from 10:00 a.m. to 4:00 p.m, on
Saturday.
- Service will be limited to elderly (over fi0 years of age)
and handicapped (defined as those people who due to some
physical or mental disability, cannot conveniently board,
ride, or deboard fixed route public transit).
- Each eligible user/rider of the system will have a pass,
It is anticipated that riders use a SDTC Gold Card and have
a CV system sticker attached to it. Elderly must show proof
of age, i.e., Medicare card, SDTC Gold Card, etc. and
handicapped must have a doctor's certificate if the nature
of their disability is not readily noticeable.
- Fare will be 75 cents per trip per rider.
Companions/escorts will also be charged 75 cents. The CVT
elderly/handicapped fare is currently 20 cents. It is
anticipated that multi-ride ticket booklets will be
conveniently available for patrons of the system to use.
- It is estimated that between 5-10% of the users of the
system will ride on a subscription basis (e,g,, every
Tuesday and Thursday at 10:00 a.m,) About 80$ of the
riders are estimated to be scheduled at least 24 hours in
advance with the remainder riding on the system on a demand
basis given sufficient system capacity and time.
' W. J. Robens -6- July 18, 1979
Zt is estimated that the system will serve a target
population of 13,200 people and service approximately 35,700
passenger trips during its twelve month operation of about
110,000 miles.
Cal trans staff in San Diego and Sacramento has provided
approximately 200 manhours in the last few months in
assisting City staff in the planning, design, and marketing
of the proposed system.
Finally, the more successful the program, the higher the
probability of system operation after the one year
demonstration period and conversely, the less successful,
the slimmer the .chances of continued system operation.
Regardless, the City will be under no financial or
contractual obligation whatsoever upon the end of the twelve
month demonstration period.
Please contact me should you require additional information
on this program.
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