HomeMy WebLinkAboutStaff Report 4.A 05/01/2017DATE: May 1, 2017
Agenda Item #4.A
TO: Hona.— yo d Members of the City Council
FROM: Dan S E — ' ector, Public Works & Utilities
Joe ivision Manager, Public Works & Utilities
SUBJECT: Resolution Authorizing the Award of an Amendment for a One -Year Extension to
the Existing Professional Services Agreement for Petaluma Transit Maintenance
and Operations Contract to MV Public Transportation, Inc.
RECOMMENDATION
It is recommended that City Council adopt a Resolution Authorizing the Award of an
Amendment for a One -Year Extension to the Existing Professional Services Agreement for
Petaluma Transit Maintenance and Operations Contract to MV Public Transportation, Inc.
BACKGROUND
On May 2, 2011, the City Council awarded a five -year contract to MV Public Transportation,
Inc. (MV), for the operation and maintenance of both the Petaluma Transit (PT) fixed route and
paratransit services through June 30, 2016. On February 22, 2016, the City Council approved the
execution of the first of two available one -year options, extending the agreement with MV
through June 30, 2017. MV has provided satisfactory and dependable service over the nearly 6
years of continuous operations and therefore, it is recommended that the City exercise the final
one -year extension option to the subject contract.
DISCUSSION
Included in the Transit Division's annual goals and discussed with the Transit Advisory
Committee, the City planned to either circulate a request for proposal and solicit a new contract
for operational services or negotiate a favorable extension of the existing MV contract for its
final year. The pricing negotiated with MV is competitive and in the market range. Therefore, it
is advantageous to accept this last extension of the contract and defer the full procurement of a
new operations and maintenance contract until next fiscal year.
Labor constitutes the majority of the costs in the contract because buses, parts and most
equipment used for operating Petaluma Transit are City - owned. MV recently completed
negotiations with the Petaluma Transit members of the Amalgamated Transportation Union
(ATU) and a new three -year Collective Bargaining Agreement (CBA) was ratified in November
2016. The outcome of the CBA affected pricing in the subject amendment.
The elements of the proposed final year amendment remain similar to the previous amendment
for year 6, including:
• Increased labor costs of approximately 3% to cover wage & benefits increases in the
CBA and the City's Living Wage Ordinance (LWO). It should be noted that the LWO
covers those MV employees, such as dispatchers in the lower pay grades, not represented
by the ATU.
• Increased benefit costs above direct labor, including a provision to allow new MV
general manager to subscribe to MV- provided health coverage.
• Hosted use of Trapeze PASS paratransit scheduling software.
• Increase in billing rate to cover overhead and profit for contract operator.
The increase in unit prices will require a reduction in the total service hours to minimize the
fiscal impacts of the amendment to the budget. A plan to reduce 1,800 annual revenue hours
from low- productivity routes was developed to keep the overall increase around $40,000 per
year. The reduced hours include shorter evening hours, and reductions to Saturday and non-
school day weekdays services. Specifically, total fixed route hours would decline from 20,366 in
FY 16/17 to 18,566 next year by ending routes 2, 11, and 33 at 8:40 pm instead of 10:10 pm, not
running routes 1 and 24 on Saturday, or route 5 on non - school weekdays. Fare box revenue
impacts from these changes are expected to be negligible. The services being eliminated
individually and cumulatively produce about 3 riders per revenue hour, compared with Petaluma
Transit's overall total productivity of 20 riders per revenue hour. The billing rates for the
proposed amendment, shown in Attachment 2, are approximately 6 percent above FY 16/17
rates. The projected value of this contract extension for FY 17/18 is $1,500,000, a net increase of
just under $40,000 compared to FY 16/17. The proposed amendment will raise the "total cost per
revenue hour" metric for PT from $85 to $90/hour. For comparison, Sonoma County Transit and
Santa Rosa City Bus operate between $125 and $130/hour based on a recent MTC statistical
summary.
Transit Advisory Committee considered the subject contract extension at their April 6, 2017
meeting and recommended that City Council approve the second and final amendment to the MV
contract extending service through June 30, 2018.
FINANCIAL IMPACTS
The projected cost of the proposed amendment is approximately $40,000 per year higher than the
projected FY 16/17 expenditures of $1,460,000. Nearly all of the projected increase is attributed
to increased direct and indirect labor costs. The proposed FY 17/18 budget for Petaluma Transit
has adequate funding for the proposed service contract amendment and contains a fund reserve
of over $800,000.
ATTACHMENTS:
1. Resolution
2. Amendment No. 2 to PSA for Petaluma Transit Maintenance and Operation Contract
2
Attachment 1
RESOLUTION AUTHORIZING THE AWARD OF AN AMENDMENT FOR A ONE -
YEAR EXTENSION TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT
FOR PETALUMA TRANSIT MAINTENANCE AND OPERATIONS CONTRACT TO
MV PUBLIC TRANSPORTATION, INC.
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, the Transit Selection Committee evaluated the proposals and the Transit Advisory
Committee recommended that City Council award a five -year Professional Services Agreement
(PSA) to MV Public Transportation Inc. through June 30, 2016. The PSA, which allows two
additional one -year options, was amended for'the first time to extend the agreement for one year,
terminating on June 30, 2017; and
WHEREAS, MV Public Transportation has performed satisfactorily during the first five
and one -half years of the operations contract, adding service and additional support staffing as
requested by the City, and supporting a period of significant ridership growth; and
WHEREAS, MV Public Transportation has submitted a competitive proposal for the
second one -year contract option, and the Transit Advisory Committee recommended approval of
the Amendment No. 2 to the PSA extending service to June 30, 2018.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma 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. 2 to the PSA, included as Attachment 2, and directs the City
Manager to execute the Amendment.
Attachment 2
SIGNATURE ROUTING SHEET
FoR
AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT FOR
Petaluma Transit Maintenance and Operations Contract with
MV Public Transportation, Inc.
(Agreement/Project Title)
Please keep the original of this document with the City Clerk's executed original of the contract.
CITY OF PETALUMA
City Manager
ATTEST:
City Clerk-
APPROVED AS TO FORM:
City Attorney
APPROVED:
Department Director
APPROVED:
Risk Manager
APPROVED:
Finance Director
file name:
Signature Routing Sheet (March 2013)
M
AMENDMENT NO.2
TO PROFESSIONAL SERVICES AGREEMENT FOR
Petaluma Transit Maintenance and Operations Contract
THE AGREEMENT entered into and effective as of Jul l, 2017, 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:
The following sentence is added to the end of Section 1, "Services ":
In addition to the services described in Exhibit A, Consultant shall continue to provide the
additional services described as follows: Fixed monthly 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:
Amendment No. 1 Amount Fixed Route FY 17
Amendment No. 2 Amount Fixed Route FY 18
Amendment No. 1 Amount Paratransit FY 17
Amendment No. 2 Amount Paratransit FY 18
Amendment No. 1 Monthly Fixed Fee FY 17
Amendment No. 2 Monthly Fixed Fee FY 18
Amendment No. 1 Insurance FY 16
Amendment No. 2 Insurance FY 17
Amendment No. 1 Paratransit Software FY 17
Amendment No. 2 Paratransit Software FY 18
$ 25.55 /rev hr.
$ 27.17 /rev hr.
$ 24.29 /rev hr.
$ 25.82 /rev hr.
$ 54,369/mo
$ 58,164/mo
$ 4690/mo
$ 4690/mo
$ 1910 /mo
$ 1910 /mo
Term: The term of this Agreement commences on the Effective Date, and terminates on
June 30, 2018, 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
5
CITY OF PETALUMA
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
CONSULTANT
By
Signature
Name and Title
Address
City State Zip
Taxpayer I.D. Number
Petaluma Business Tax Certificate Number
C