Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
JUNE 15, 2017
Subject
SUBJECT: CONTRACTED BUS SERVICE - EAST REGION
Action
ACTION: AWARD CONTRACT FOR CONTRACTED BUS SERVICE
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a five-year, firm fixed unit price Contract No. OP38382000 to Southland Transit, Inc. for contracted bus services in the East Region in an amount not-to-exceed $65,245,597 effective July 1, 2017, subject to resolution of protest(s), if any.
Issue
ISSUE
The current contract with Southland Transit, Inc. (Southland) for operating bus services in the East Region is scheduled to expire on June 30, 2017. A new contract is required to continue the service.
Discussion
DISCUSSION
Metro operates 18 bus lines that are contracted to private transportation companies. The East Region contractor currently operates five of these lines as follows: 254, 256, 266, 577, and 605.
|
Line |
Description |
Annual RSH* |
Annual Passengers |
|
254 |
Boyle Heights - 103rd St. Station via Lorena St. & Boyle Ave. |
10,575 |
227,198 |
|
256 |
Commerce - Altadena via Eastern Ave. & Hill Ave. |
26,435 |
533,293 |
|
266 |
Lakewood - Pasadena via Roasemead Blvd. & Lakewood Blvd. |
37,551 |
1,581,242 |
|
577 |
Metro Express (El Monte Station - Downtown Long Beach via I-605 Fwy.) |
15,762 |
214,672 |
|
605 |
Grande Vista Ave. - Boyle Heights - LA County + USC Medical Center |
17,095 |
680,051 |
|
*RSH = Revenue Service Hours |
|
|
Metro began contracting a portion of bus services in 1996. The first 13 contracted lines were existing services Metro operated. These lines were transferred because of their high subsidy per passenger. The remaining contract lines include some of the new local shuttle and Consent Decree services that have been added since 1996. Contracting a portion of the bus services has provided both cost and operational benefits:
• Annual savings are realized through the lower operating costs of the contractors.
• Modifications or expansion to existing bus divisions are not necessary when new services are added.
• Contracts allow greater flexibility in operation. Lines can be quickly added, cancelled, or modified.
Despite being operated by a contractor, Metro Service Planning Department still includes all East Region routes in all performance and planning analyses. Changes are effected semiannually or when needed to ensure optimal and efficient service performance.
In July 2010, the Board approved an award of a five-year contract with Southland Transit which expires June 30, 2017. The new proposed Contract requires the contractor to pay for CNG fuel costs for buses and develop a plan for the installation of a CNG station within their facility for reliability of operation.
The new Contract contains additional provisions related to vehicle maintenance, including dedicated positions for maintenance of Metro-owned communications equipment such as advance transportation management system (ATMS), automated passenger count (APC), and others, stricter body damage and appearance standards, and specific procedures for the transfer of vehicles to and from contractor to further increase service versatility. The Contract also contains the same provisions that allow for service levels to be increased or decreased over the term of the Contract based on our operating needs. Additionally, Metro has implemented new provisions to incentivize the application for, and receipt of, fuel tax credits and grants relating to the maintenance of Metro’s buses. These provisions allow the contractor to retain a majority of the fuel tax credits/grants toward the beginning of the contract period and gradually balance out to where the contractor and Metro evenly retain the fuel tax credits/grants.
The new Contract term will begin July 1, 2017 and end June 30, 2022.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The proposed Contract contains provisions requiring minimum levels training that will ensure the safest possible operation of our equipment and service.
Financial_Impact
FINANCIAL IMPACT
The funding of $12,070,511 for this contracted service is included in the FY18 budget in Cost Center 3593; Project 306001, Operations Transportation, and Account 50801, Purchases Transportation. Since this is a multi-year contract, the cost center manager and Chief Operations Officer will be accountable for budgeting the cost in future years, including any options exercised.
Impact to Budget
The source of funds for this service will come from Federal, State, and local funding sources including sales tax and fares that are eligible for Bus Operating Projects. These funding sources will maximize the use of funds for these activities given funding provisions.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternate to awarding a new contract, staff considered in-house services. Based on the proposed FY18 marginal bus operating cost of $167.65 per Revenue Service Hours, it would cost more to operate these services in-house and would require physical modifications to our facilities to operate and maintain the vehicles used for this service. The new cost for services is $104.96 per Revenue Service Hour for CNG. The East region does not operate diesel vehicles.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract No. OP38382000 to Southland Transit, Inc. In spring 2022, staff will return to the Board with recommendations based upon further evaluation of the services provided under this Contract.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - East Region Service Map
Attachment C - DEOD Summary
Prepared_by
Prepared by: Cathy Rosas, Manager, Transportation Contract Services, (213) 922-2875
George del Valle, Transportation Contract Services Field Representative, (213) 922-7240
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 418-3108
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
