Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
MARCH 15, 2018
Subject
SUBJECT: CONTRACTED BUS SERVICES - NORTH REGION
Action
ACTION: APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 3 to Contract No. OP35903018 with Transdev Services, Inc. (Transdev) for North Region Contract Bus Services, increasing the total not-to-exceed contract value by $10,250,000 from $62,245,053 to $72,495,053.
Issue
ISSUE
Metro operates 18 bus lines that are contracted to private transportation companies. The North Region (San Fernando Valley) contractor, Transdev Services, Inc., currently operates six (6) of these bus lines (lines 96, 167, 177, 218, 501, and 603) and a portion of Metro’s Dodger Stadium Express service. The maximum contract value has been reached; however, the contract’s term will not be reached until August 2, 2018. Without modification to the contract value, there will be a lapse of service.
Discussion
DISCUSSION
In April 2013, Metro Board of Directors approved the award of North Region contract bus services to Veolia Transportation (currently known as Transdev). That contract is scheduled to expire on August 2, 2018; due to an increase in the number of revenue service hours operated year-over-year during the course of the contract, the total contract value has been expended prior to the end of the contract term. Metro is currently in the request for proposals (RFP) process for a new contract in the North Region of Los Angeles County with an expected award during the month of June 2018.
This contract was awarded based on estimated annual revenue service hours (RSH) in the amount of 134,594 for the operation of five (5) lines for the duration of the five-year contract term. However, RSHs have increased by approximately 15.07% over the course of the contract term along with expanding the scope of the service. During the course of the North Region’s contract, RSHs have increased annually to provide continuous service to customers. Due to these increases in scope and additional RSHs operated, a modification is required. The estimated increases have been budgeted in the Fiscal Year 18 Operations budget. Specifically, the increases are a result of the following:
• Dodger Stadium Express (DSE) service has been provided by the contractor from 2013 through the 2017 season. To date, the contractor has operated 12,432 RSH at a cost of $1,261,821. Additional costs of approximately $255,000 for 2,500 RSH are projected through the end of the contract term. The total forecasted expenditures are $1,516,821.
• Line 501 service has been provided by the contractor from 2016 to the present. As of December 2017, the contractor has operated 50,495 RSH at a cost of $5,125,227. Additional costs of approximately $1,400,700 for 13,800 RSH are projected through the end of the contract term. The total forecasted expenditures for Line 501 are $6,525,927.
• Service adjustments related to bus bridges and additional support over the course of the contract have resulted in an increase of 21,843 RSH at a cost of $2,207,251.
Metro, in cooperation with the Los Angeles Department of Transportation (LADOT), the Southern California Regional Rail Authority (Metrolink), and the Los Angeles Dodgers, has provided bus service between Union Station and Dodger Stadium since 2010. DSE service is used to mitigate the total gridlock situation encountered by attendees travelling to Dodgers stadium via Sunset Blvd. The Contractor performs a large portion of this service which has substantially grown over the course of the contract term. Since 2010, ridership on this service has grown 128% from 122,273 patrons to 278,623 patrons. Additionally, the 2016 National League Championship Series and the 2017 World Series increased service requirements. As this service operates on a load-and-go basis, additional trips and therefore RSHs, are needed each season as ridership has gradually increased.
In March 2016, year three (3) of the current contract, Metro developed and began the operation of a pilot bus service to operate from the Metro Gold Line in Pasadena to the North Hollywood Red/Orange Line Station. This service, named Line 501, provides transit service designed to mitigate some of the impact to travel in the region caused by the Interstate 5 construction project, as well as connecting residents of the San Gabriel Valley to Metro’s Red and Orange Lines. Subsequent to the pilot program implementation public hearings were held, Title VI and Environmental reports were completed and the decision was made in April 2016 to continue the pilot bus service.
Staff is recommending approval of this Board action to provide sufficient contract funding for Metro’s contractor, Transdev Services, Inc., to continue to perform all of the required services through the remainder of their contract term.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The continued provision of service by the current contractor, already familiar with the present equipment and service area, will allow for the safest operation of this service.
Financial_Impact
FINANCIAL IMPACT
The maximum contract value for the North Region Contract is $62,245,053. The requested increase of $10,250,000 would increase the not- to-exceed amount to $72,495,053. The amount of $10,250,000 will be derived from funds already allocated toward the operation of this service in the FY18 budget under Project 306001 - Operations Transportation, account 50801- Purchased Transportation. The existing FY18 budget of $18,420,820 is sufficient to execute this Contract Modification as a result of this Board action request.
Impact to Budget
The funds for this Contract Modification will come from various sources including operating eligible sales tax like Proposition A Discretionary, Proposition C Discretionary, TDA, Fares, and advertising that are eligible for use on Bus Operating projects. Use of these funding sources will maximize allowable funding allocations given approved provisions.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff has also considered bringing the services in-house, to be operated at Metro bus divisions. Metro’s Bus Operating Cost is $164.77 per RSH and the contractor’s bus rate is $101.05 per RSH. Based on this comparison, it would cost Metro significantly more to operate these services in-house. Physical modifications would also be needed at existing divisions to accommodate the additional buses and division staff, and training would be required to operate and maintain the different types of buses currently used to provide contracted bus services.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Modification No. 3 with Trandev Services, Inc. to continue providing the services agreed upon until the replacement contract begins.
Metro staff will return to the Board in June 2018 with a recommendation to award the new contract currently under procurement.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Attachment D - Site Map
Prepared_by
Prepared by: Cathy Rosas, Manager, Transportation Contract Services
Nicole Martinez, Principal Transportation Planner, Transportation Contract Services
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 418-3108
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051