Loading...
HomeMy WebLinkAboutStaff Report 3.C 02/22/2016Agenda Item #3.0 � F a DATE: February 22, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: D , F.ASCE — Director, Public Works & Utilities Joe Rye — Transit Manager, Public Works & Utilities SUBJECT: Resolution to Exercise the Option to Extend the Existing Contract with MV Public Transportation for One Year at Mutually Negotiated Pricing and to Authorize the City Manager to Execute Amendment No. 1 to the Professional Services Agreement (PSA) For Petaluma Transit Maintenance and Operations Contract RECOMMENDATION It is recommended that the City Council Adopt a Resolution to Exercise the Option to Extend the Contract with MV Public Transportation for One Year at Mutually Negotiated Pricing and to Authorize the City Manager to Execute Amendment No. 1 to the Professional Services Agreement (PSA) For Petaluma Transit Maintenance and Operations Contract. BACKGROUND A Request for Proposal (RFP) for the transit operations services was conducted in 2011 during a time of economic recession with a "forward- vision" to allow Petaluma Transit to grow as the economy and operations funding grew over the term of the contract. On May 2, 2011, the City Council awarded a five -year operations contract to MV Public Transportation, Inc. (MV) for both Transit fixed route services and Paratransit ADA paratransit service. The five -year base contract, which expires on June 30, 2016, contains two, one -year extension options that are available if mutually agreeable terms are negotiated. MV has provided excellent service during the past 412 years under the current contract and during the previous decade under previous agreements. Therefore, staff requested that MV submit a proposal for each of the next two years to allow an evaluation as to whether the City would like to exercise an option for one or two additional years of service. DISCUSSION The existing service contract addresses fixed cost and variable cost services to be provided by MV Public Transportation. Fixed cost services include dispatch, supervision, management, and maintenance. The initial span of service was six days a week without night service. Fixed costs have not changed even with the addition of new routes or minor service changes because such changes did not affect the administrative or dispatch functions. However, when the City added weekend and night service and increased the fleet size to accommodate additional routes, the fixed cost services increased because additional dispatch and maintenance staff were required to support the increased bus operations. The contract allows the City to add operating hours and days and stipulates an hourly rate that applies to the added driver hours. Both the variable hourly rate for drivers and the fixed monthly rate benchmark to a cost of living formulae that allows MV to increase their revenue annually to keep up with inflation. Since 2011, there have been several operational changes that are reflected in the agreement and support extending the contract for one year. Bus service expanded to Sundays in 2012, and into the evenings in 2014. These longer hours required more hours in dispatch, and required two new support positions to the fixed rate services portion of the contract for a second road supervisor in 2014, and second mechanic position in 2015. After negotiation, the costs for these two positons were included in the contract and are itemized separately on the monthly invoice. The following table summarizes the original staffing levels of MV and the proposed staffing levels for the fixed portion of the contract. With the proposed change order to extend the agreement for one year, the costs for these additional staff will be rolled into the fixed costs portion of the contract. Original 2011 MV Staffing 1 General Manager 1 Road Supervisor 3 Dispatchers (1 Fulltime, 2 Part-time) 1 Mechanic 2016 Change Order MV Staffing 1 General Manager 2 Road Supervisors 3 Dispatchers with extended hours 1 Mechanic and 1 Maintenance Support Position In addition, several other cost factors are addressed in the proposed Amendment to the PSA, including: • Increases in labor costs for the drivers and mechanics that are in the represented workforce beyond the cost of living index allowed by the contract. The change in these variable rates for Fixed and Paratransit are itemized in the attached Amendment No. 1. • Increases in wages for other employees to ensure compliance with the City's Living Wage Ordinance (LWO), again, where adjustment from the cost of living index was not sufficient to keep up with the City's LWO. • Increase in MV's insurance costs due to larger fleet with larger buses, and • Added costs to MV to host the Trapeze PASS paratransit scheduling software. The increases for the last three items are included in the Monthly Fixed Fee shown in the attached Amendment. Transit staff requested a proposal from MV to provide a more robust paratransit scheduling system that would replace the current City -owned Trapeze Novus scheduling system, which is entering its 5th year of duty. Petaluma will be able to switch from City -owned Novus to MV- provided and hosted PASS within 90 days from the award of this contract extension. This will create a significant cost- offset savings to the City from refunded pre -paid software support fees, and deferred software maintenance costs. The proposed change order will result in an increase of approximately $68,000 per year compared to what they would bill under the current contract, which last year was approximately 2 $1,300,000. Of the $68,000 projected annual increase, about half is due to MV labor negotiations and LWO compliance, with the remainder attributable to increased insurance costs and PASS software. FINANCIAL IMPACTS Petaluma Transit is projected to have adequate funding to continue through the one -year extended contract as modified by the proposed change order. Petaluma Transit's FY 2017 projected Transportation Development Act (TDA) fund reserves are over $800,000. ATTACHMENTS 1. Resolution 2, Amendment No. 1 to PSA for Petaluma Transit Maintenance and Operation Contract Attachment 1 RESOLUTION EXERCISING THE OPTION TO EXTEND THE CONTRACT WITH MV PUBLIC TRANSPORTATION; INC. FOR ONE YEAR AT MUTUALLY NEGOTIATED PRICING AND TO AUTHORIZE THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT (PSA) FOR PETALUMA TRANSIT MAINTENANCE AND OPERATIONS CONTRACT WHEREAS, the City of Petaluma contracts for operations and maintenance of its public transportation services, and periodically conducts a competitive Request for Proposal (RFP) process for these services; and WHEREAS, after receiving six proposals in response to a competitive RFP in early 2011, City staff and an ad hoc Selection Committee evaluated the proposals and recommended that City Council award a five year Professional Services Agreement (PSA) to MV Public Transportation Inc. The PSA, which allows two additional one -year extension options, was effective as of September 12, 2011 and will be terminating on June 30, 2016 unless the City exercises a one -year extension; and WHEREAS, MV Public Transportation has performed satisfactorily during the first four and one -half years of the five year contract, adding service and additional support staffing as requested by the City, enabling a period of transit system ridership growth; and WHEREAS, MV Public Transportation has submitted a competitive proposal for the first one -year contract extension option, and the Transit Advisory Committee recommends the exercise of the proposed extension in the approval of the Amendment No. 1 to the PSA. NOW, THEREFORE, BE IT RESOLVED that the City Council approves a one -year contract extension for the PSA with MV Public Transportation, Inc. for operation and maintenance of Petaluma Transit and Petaluma Paratransit Services on the terms contained in Amendment No. 1 to the PSA, (attachment 2), and directs the City Manager to execute the Amendment. n Exhibit A to Resolution AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT FOR Petaluma Transit Maintenance and Operations Contract TIIE AGREEMENT entered into and effective as of July 1, 2016, by and between the City of Petaluma, a municipal corporation and a charter city (hereinafter referred to as "City ") and MV Public Transportation, Inc. (hereinafter referred to as "Consultant ") is hereby amended as follows: 1. The following sentence is added to the end of Section 1, "Services ": In addition to the services described in Exhibit A, Consultant shall provide the additional services described as follows: Fixed services shall be expanded to include three dispatchers with extended hours, a second Road Supervisor, and one additional maintenance and support position. 2. The "Compensation Amount" specified in Section 2.A is amended as follows: Original Agreement Amount Fixed Route FY 16 $ 24.28 /rev hr Amendment No. 1 Amount Fixed Route FY 17 $ 25.55 /rev hr Original Agreement Amount Paratransit FY 16 $ 23.04 /rev hr Amendment No. 1 Amount Paratransit FY 17 $ 24.29/rev hr Original Agreement Monthly Fixed Fee FY 16 $ 41,411/mo Amendment No. 1 Monthly Fixed Fee FY 17 $ 54,369/mo Original Agreement Insurance FY 16 $ 4400 /mo Amendment No. 1 Insurance FY t 7 $ 4690 /mo Original Agreement Paratransit Software Lease $ 0 /mo Amendment No. 1 Para Software FY 17 $ 1910 /mo Term. The term of this Agreement commences on the Effective Date, and terminates on June 30, 2017, unless sooner terminated in accordance with Section 4, Upon termination, any and all of the City's documents or materials provided to Consultant and any and all of the documents or materials prepared for City or relating to the performance of the Services, shall be delivered to the City as soon as possible, but not later than fourteen (14) days after termination of the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this document the day of -20 Amendment To Professional Services Agreement (Scope -Cost "rerm) March 2013 5 City Clerk Address APPROVED AS TO FORM: City State Zip City Attorney Taxpayer I.i]. Number Petaluma Business Tax Certificate Number APPROVED: Department Director APPROVED: Risk Manager APPROVED: Finance Director file name: z Amendment To Professional Services Agreement (Scope•Cost »Term) March 2013 6