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HomeMy Public PortalAbout13) 9A Approval of Agreement for Services with Southland Transit, Inc. for Dial-A-Ride Transportation Services for Fiscal Years 2014-17 Revised PARKS AND RECREATION DEPARTMENT MEMORANDUM DATE: May 6, 2014 TO: The Honorable City Council FROM: Donald E. Penman, Interim City Manager By: Cathy Burroughs, Director of Parks and Recreation SUBJECT: APPROVAL OF AGREEMENT FOR SERVICES WITH SOUTHLAND TRANSIT, INC. FOR DIAL-A-RIDE TRANSPORTATION SERVICES FOR FISCAL YEARS (FY) 2014-17 RECOMMENDATION: The City Council is requested to: a) Award a three-year Agreement for Services (Agreement) (Attachment “A”) to Southland Transit, Inc. (STI) for management and operation of the City’s Dial-A- Ride (DAR) program; and b) Authorize the Interim City Manager to finalize and execute the Agreement in an amount not to exceed $1,290,705 over the three-year term. BACKGROUND: 1. On July 1, 2011, the City entered into a three-year Professional Services Agreement with First Transit to manage and operate its DAR program through June 30, 2014. 2. On January 18, 2012, an informal meeting was held for DAR members with representatives from First Transit, Parks and Recreation Department staff, and the Parks and Recreation Commission’s Transportation Ad Hoc Committee (i.e., Commissioners Miller and Vigil). The purpose of the meeting was to discuss issues and concerns with the current DAR provider that had been expressed by DAR users. 3. On February 15, 2012, during the Parks and Recreation Commission’s annual review of transportation programs, a number of DAR members expressed their displeasure with First Transit’s services and their operation of the DAR program. A copy of the minutes is attached (Attachment “B”). City Council May 6, 2014 Page 2 of 5 4. On July 25, 2012, a second informal meeting was held for DAR members, again with representatives from First Transit, the Parks and Recreation Commission’s Transportation Ad Hoc Committee, and staff. The meeting was held at the request of the Parks and Recreation Commission as a follow-up to the January 18 and February 15, 2012 meetings. Similar issues and concerns were raised including rudeness by the reservationists, incorrect reservations, and uncomfortable vehicles. 5. On October 4, 2012, the Commission’s Transportation Ad Hoc Committee and staff met with Heidi Miller, General Manager of First Transit to discuss issues and concerns that had not been adequately addressed over the past year. 6. On January 10, 2013, staff met with two additional representatives from First Transit, Jesse Roach, Director of Operations West Region-South, and Eric Estell, West Region Vice-President to discuss concerns regarding the existing DAR service. 7. On February 20, 2013, the Parks and Recreation Commission, during their annual transportation meeting, again heard concerns and complaints from a number of DAR members regarding the operations of the DAR program. A copy of the minutes is attached (Attachment “C”). 8. On March 6, 2013, City Manager Pulido, Parks and Recreation Director Burroughs, and Management Analyst Chung met with Heidi Miller, General Manager and Jesse Roach, Director of Operations, West Region–South from First Transit to discuss the City’s expectations for the DAR program and ways to improve the service. First Transit was given 30 days to provide the City with recommendations on how to improve their customer service and create route efficiencies. 9. On April 3, 2013, a follow up to the March 6, 2013 meeting was held with City staff and representatives from First Transit to receive and review their recommendations for improved service. 10. On April 26, 2013, an amendment to the Professional Services Agreement with First Transit was approved authorizing additional payments to First Transit for the purchase and use of a computerized scheduling program for Temple City DAR and installation of a new suspension system in one of the DAR vehicles used in Temple City. 11. On February 10, 2014, the City issued a Request for Proposals (RFP) to solicit bids for public transportation services including the existing senior/disabled DAR program, and potential new fixed route transit and general population DAR services. Two proposals were received by the March 7, 2014 deadline, i.e. First Transit and STI. City Council May 6, 2014 Page 3 of 5 12. On February 19, 2014 residents again voiced their concerns with the existing DAR program during the Parks and Recreation Commission meeting. A copy of the minutes is attached (Attachment “D”). At that time staff informed residents about the RFP issued for DAR Transportation Services. 13. On March 25, 2014, the City conducted interviews with First Transit and STI. The interview panel consisted of Parks and Recreation Commissioner Fish, Administrative Coordinator Ingram, and Management Analyst Chung. The panel concluded that STI would better meet the City’s DAR program needs and expectations. 14. On April 15, 2014, the City Council considered a recommendation from staff to award a three-year Agreement to provide DAR transportation services to STI. The City Council continued the item to May 6, 2014 and directed staff to provide additional information about First Transit and STI for City Council consideration. ANALYSIS: The City is in the third year of a three-year agreement with First Transit to provide DAR transportation services. Although the agreement allows for two (2) one-year extensions, with the ongoing concerns expressed from DAR members the last 2½ years and the consultant’s inability to effectively address dispatch and customer service concerns, staff felt it was in the best interest of the City to solicit proposals for DAR services this year. In addition to the existing senior/disabled DAR service, the RFP also requested bids for a fixed route and a general population DAR service. The additional services were included at the direction of the City Council upon completion of the Fixed Route Transit Study in December 2013. The RFP was sent to 25 firms and posted on the City’s website. Two proposals were received by the March 7, 2014 deadline, from First Transit and STI. Not all the firms that were sent the RFP provide the type of DAR service the City currently offers. After a thorough review process, including a review of the proposals and interviews with the two firms, staff recommended the City Council approve a three-year agreement with STI for the existing senior/disabled DAR service. Due to lack of funds, staff does not recommend moving forward with either the fixed route or general population DAR service at this time. Although STI is not the lowest bidder, staff believes that STI will better meet the needs of the DAR members and will more closely align with the City’s expectations based on the following:  During the interview process, STI proactively offered recommendations and solutions to existing problems while First Transit continued to express they would City Council May 6, 2014 Page 4 of 5 do what the City wanted. As the experts in the transportation field, staff relies on the contractor to provide ideas and recommendations to improve the service. Throughout the term of First Transit’s contract City staff and commissioners have offered suggestions to improve service levels instead of the contractor. When recommendations were made by the City, the contractor requested the City pay for those enhancements (i.e. computerize reservation software, new suspension system for vehicles, phone recordings).  STI currently provides similar DAR services for the cities of Alhambra, Arcadia, El Monte, Baldwin Park, Glendale, La Puente, Rosemead, and Pico Rivera. Staff surveyed Arcadia, La Puente, Pico Rivera, and Rosemead asking them to rate their experience with STI in regards to customer service, consistency, on-time performance, communication and responsiveness, handling of complaints, service reliability, and professionalism. They were also asked if they would recommend STI. All four of the cities rated STI either good or excellent in all areas and all responded that they would highly recommend STI. First Transit currently provides DAR services in Pasadena and Paramount. Staff surveyed references provided by First Transit, however the majority of references they provided were not local. The cities of Paso Robles, Madera, Paramount, and Turlock were surveyed. Responses varied from fair to excellent. Two cities highly recommended First Transit, one recommended, and one stated “no comment”.  Staff continues to receive complaints from DAR members on the service provided by First Transit. In 2013 staff received, and forwarded to First Transit, a total of 23 complaints; 10 complaints have been received to date in 2014. This is almost double the number of complaints received with the previous provider (13 complaints received in 2009; and 12 in 2010).  Ridership has declined over the term of First Transit’s contract. DAR members have reported to staff that they are no longer using the DAR program due to poor service or inconsistent availability. Although other factors may lead to decreased ridership, it is likely that the decrease can be attributable to either poor customer service or the inability of DAR members to schedule rides when needed. The table below identifies ridership statistics for the last four years: Fiscal Year Registered DAR Members Annual Ridership Ridership July - March Decrease From Previous Yr. 2010-11 1,374 22,737 17,068 2011-12 1,340 21,246 16,165 7.0% 2012-13 1,475 19,159 14,214 10.9% 2013-14 1,421 12,954 9.7% City Council May 6, 2014 Page 5 of 5 Staff presented their recommendation to the City Council on April 15, 2014. After lengthy discussion, the City Council continued the item requesting additional information from staff including a comparison of the services proposed from both bidders and other relevant background information. Attached to this report is a table comparing the proposals received from First Transit and STI as well as scores and comments during the interview process (Attachment “E”). The City Council and City staff have taken great strides the last several years to ensure accountability in all aspects of City operations focusing on customer service and raising expectations to higher levels. Staff and all contractors are challenged to proactively review operations and evaluate service levels to meet these expectations. Based on the service levels provided by First Transit the last three years, as well as the interviews with First Transit and STI, staff recommends the City Council approve the proposed three-year agreement with STI for DAR transportation services. CONCLUSION: With the City’s current DAR contract expiring on June 30, 2014, the City solicited proposals for continuation of the existing senior/disabled DAR program as well as proposals for fixed route and general population transportation programs. Due to limited funding, staff is recommending that the City Council only continue with the existing senior/disabled DAR program and not add additional transportation programs at this time. Approval of a three-year agreement with STI will allow the City to offer an improved DAR program for senior citizens and persons with disabilities without disruption in service. FISCAL IMPACT: Sufficient funds have been budgeted in the proposed Fiscal Year (FY) 2014-15 City budget to continue with the existing DAR program. ATTACHMENTS: A. Professional Services Agreement – Southland Transit, Inc. B. Parks and Recreation Commission Minutes – Meeting of February 15, 2012 C. Parks and Recreation Commission Minutes – Meeting of February 20, 2013 D. Parks and Recreation Commission Minutes – Meeting of February 19, 2014 E. Comparison of Proposals from First Transit and STI