Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
JULY 18, 2018
Subject
SUBJECT: VANPOOL VEHICLE SUPPLIER
BENCH CONTRACT
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer to award firm-fixed unit price Vanpool Vehicle Supplier Bench Contract Nos. PS10754300051491 to Airport Van Rental, PS10754400051491 to Green Commuter, and PS10754500051491 to Enterprise Rideshare (a division of Enterprise Holdings) for a two-year base period for an amount not to exceed $18,000,000, with three, one-year options, each in an amount not to exceed $9,000,000, for a total not-to-exceed amount of $45,000,000 effective August 1, 2018, subject to resolution of protest(s) if any; and
B. INCREASING the maximum subsidy from $400 per month to $500 per month for Metro Vanpool Program users.
Issue
ISSUE
Through June 2018, Metro has authorized 1,291 public vanpool service routes with vehicle leases contracted through the existing bench of vanpool vehicle suppliers. The current Metro Vanpool Program transportation contracts will expire October 31, 2018. Staff is requesting authorization to execute contracts with the above-named vanpool vehicle leasing suppliers to continue delivering our vanpool service.
Discussion
DISCUSSION
Metro launched the Vanpool Program in May 2007, adding the vanpool mode of public transport to the Metro family of services. In May 2013, the Board of Directors authorized the CEO to execute five-year vanpool vehicle supplier bench contracts in an amount not to exceed $35,732,400 for vanpool vehicle lease services necessary to implement the Metro Vanpool Program. Staff is requesting authorization to execute new contracts with the above-named vanpool vehicle leasing suppliers to continue delivering the Metro Vanpool Program region-wide.
The Metro Vanpool Program
Bench contracts were established to offer commuters multiple vendor options to secure lease vehicle services. Each contract effectively buys down the cost of eligible public vanpool leasing fares to the end user. Eligible vanpools enrolled in the program must agree to and comply with participation and reporting rules to receive fare subsidies amounting to a maximum of 50% of the vanpool vehicle lease costs or up to $500 per month. Staff is proposing an increase in the maximum subsidy from $400 to $500 due to inflation since the program’s inception in May 2007 and the recent increases in the lease fares charged by our Vehicle Suppliers. See Attachment C for more analysis.
Individual qualified vanpools that execute agreements with Metro must operate commuter service with vehicles leased from Metro-contracted vehicle suppliers, commute to Los Angeles County worksites, be open to any fare-paying commuter regardless of employer affiliation, and report specific operating data to Metro.
All vanpool operating and expense data are collected, validated, recorded, and reported to the Federal Transit Administration (FTA) as part of Metro's annual National Transit Database (NTD) report. The NTD is the system through which FTA collects uniform data required by the Secretary of Transportation to administer department programs. The data reported is used in formula calculations which apportion federal grants to the region.
Performance and Vanpool Vehicle Budget
The Metro Vanpool Program is one of the leading public vanpool programs in the country. As of June 2018, the Metro Vanpool Program includes nearly 1,300 public vanpool routes in service.
Not only has the program added a new mode to Metro's family of services, it also has increased the Sections 5307 and 5339 federal formula funding generated to the region. While program expenditures in FY17 totaled $8 million, an estimated $20 million in new federal formula revenues will be generated to the region as a result of the service.
In FY17, Metro Vanpool services included 1,296 public vanpool routes that recorded over 30.7 million vehicle revenue miles and delivered over 3.8 million passenger trips for a total of $6.3 million in vanpool subsidies or $1.68 per passenger trip.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The Metro Vanpool Program has demonstrated effectiveness in reducing the number of cars on the road during the peak commute period which contributes to public safety. In FY17, the Program averaged 5.8 people per trip. We removed an estimated 146.3 million vehicle miles traveled. Safety is our number one priority at the Metro Vanpool Program. We have made additions to our statement of work to require additional safety training for those enrolled in the Metro Vanpool Program.
Financial_Impact
FINANCIAL IMPACT
The FY19 Budget for vanpool vehicle subsidies is $7,200,000 in Proposition C 25% Streets & Highway funding in Cost Center 4540, Regional Rideshare Research & Development, Project 405547, Task 02.07, sufficient to cover vanpool vehicle supplier costs through FY19. The Prop C 25% funds are from a Regional Rideshare grant programmed in the Transportation Improvement Program (TIP) pursuant to the Long Range Transportation Plan priorities. Since activities related to this action are provided through multi-year contracts, the Cost Center manager, project manager, and Executive Officer will be accountable for budgeting costs in future years once the final contracts are executed.
Impact to Budget
The source of funds for this action are from Proposition C 25% Streets & Highway and are not eligible to fund bus and rail operating and capital expenditures. FTA Sections 5307 and 5339 grant funds generated by the Metro Vanpool Program will increase the amount of funds available for bus and rail capital expenditures. In FY17 an estimated $20 million in FTA Section 5307 and 5339 grant funds was generated through the Metro Vanpool Program.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is to allow the current contracts to expire and discontinue operation of the Metro Vanpool Program at that time. Staff does not recommend this because the vanpool program provides an important commute option for the county's long-distance commuters -- a market not readily served by other Metro transit modes offered to the public. Most of the existing vanpools operating today were established through the Metro Vanpool Program and would likely cease operation if the program were to end. In addition, the program generates significant additional net revenues annually.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute the Bench contracts. Staff will continue to provide reports to the Board on program performance and progress.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Attachment C - Average Lease Fare Analysis and Staff Subsidy Recommendation
Prepared_by
Prepared by: Kevin Holliday, Metro Vanpool Program Manager, (213) 922-2459
Dolores Roybal Saltarelli, Senior Director, Countywide Planning & Development, (213) 922-3033
Frank Ching, DEO, Countywide Planning & Development, (213) 922-3033
Reviewed_By
Reviewed by: Therese W. McMillan, Chief Planning Officer, (213) 922-7077
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
