Administrative
Report
H.12., File # 24-0787 Meeting Date: 5/21/2024
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, INTERIM COMMUNITY SERVICES DIRECTOR TITLE
APPROVE THE SECOND AMENDMENT TO THE AGREEMENT WITH PARKING CONCEPTS, INC.
TO INCORPERATE A 3.5% CONSUMER PRICE INDEX INCREASE FOR FISCAL YEAR 2024-25
OPERATIONS AND MAINTENANCE OF THE BEACH CITIES TRANSIT AND WAVE DIAL-A-RIDE SYSTEM FOR AN UPDATED ANNUAL TOTAL NOT TO EXCEED AMOUNT OF $3,396,833
EXECUTIVE SUMMARY
On May 5, 2020, the City Council approved an Agreement with Parking Concepts, Inc. (Transportation Concepts) as the contract operator of the Beach Cities Transit (BCT) system for a three-year base term commencing on July 1, 2020, through June 30, 2023, with an option for one additional two-year extension.
On May 16, 2023, the City Council approved the first amendment to the Agreement that extended the Agreement from July 1, 2023 through June 30, 2025, and increased the hourly revenue service rate and monthly fixed cost fee for FY 2023-24 based on the December 2022 Consumer Price Index (CPI) of 4.9%.
Staff recommends the City Council approve the proposed second amendment to the Agreement which increases the hourly revenue service rate and monthly fixed cost fee for FY 2024-25 based on the December 2023 Consumer Price Index (CPI) of 3.5%. The annual operating cost for FY 2024-25 is estimated at $3,396,833.28, for a new contract not to exceed amount of $15,524,852.92, excluding Special Transportation Service costs.
BCT services are funded by dedicated transportation restricted funds and receive no support from the General Fund.
BACKGROUND
The BCT system includes the WAVE senior/disabled dial-a-ride service, fixed route lines 102 and 109, the dispatch and scheduling functions, maintenance of the BCT fleet (20 vehicles), along with management, oversight, and data/fiscal reporting for BCT operations and vehicle maintenance.
On November 5, 2019, the City Council approved the request for proposals (RFP) for BCT and WAVE transportation services and authorized staff to issue the RFP on November 7, 2019. After final review of the proposals and the completion of applicant interviews, the City Council, on May 5, 2020, approved a Management Agreement with Transportation Concepts as the BCT system contract
H.12., File # 24-0787 Meeting Date: 5/21/2024
operator, for the term July 1, 2020 through June 30, 2023.
Transportation Concepts operates the administrative and dispatch functions of the City’s public transportation system and performs vehicle maintenance at the City’s maintenance facility located at 1519 Kingsdale Avenue, south of the new Redondo Beach Transit Center. They also perform driver training and related duties at the City Hall transit offices.
The initial term of the Transportation Concepts agreement expired on June 30, 2023. The Agreement includes an option for an additional two-year extension. Based on the terms of the Agreement, the Revenue Service Hourly rate, the Fixed Overhead Costs, and the Non-Driving Services Hourly rate shall be increased by the annual CPI for the first and second year of the option periods.
Transportation Concepts has consistently met the needs of the City and has maintained system best practices, particularly in the area of customer service. The management, maintenance, and operational BCT fixed route, and WAVE dial-a-ride services, operate smoothly and are meeting the needs of the ridership. Operational issues that do arise are typical to local transit systems.
City staff has a positive and productive working relationship with the Transportation Concepts Project Management team, which is responsive to City staff and addresses customer, operational, and driver issues in a timely manner. Transportation Concepts has partnered with the City providing professional assistance with transit bus procurement and maintenance. Transportation Concepts has been a very strong partner assisting with overcoming identified service issues. During the second contract period the team:
· Maintained COVID-19 safety protection protocols such as sanitizing buses and the bus maintenance facility, cleaning bus benches, proactively installed driver barriers and hand sanitizers and distributing face masks on the transit vehicles to protect drivers and riders boarding BCT buses
· Assisted City staff with bus procurement and equipment needs for the fixed route replacement buses City staff purchased during the last three years
· Oversaw bus stop signage replacement and maintenance
· Assisted with Federal Transit Administration Transit Asset Management (TAM) Plan management and Public Transit Agency Safety Plan (PTASP) management · Assisted with crafting Rider/Detour Alerts for BCT webpage postings and X (formerly Twitter) messaging
· Participate in various Zero Emission Bus working groups to assist the City with meeting future California Air Resource Board transit vehicle regulations · Oversaw Metro TAP card Mobile Validators installation and TAP ridership and revenue reconciliation
Transportation Concepts also provides special transit services for various transportation-related programming, including Senior and Family Services day trips, Recreation youth camp activities and public works related services.
Their continuing successful management of the vehicle maintenance program and Drug & Alcohol Program for the Transportation Concepts safety sensitive employees (drivers, road supervisors, dispatchers, and mechanics) resulted in zero findings during the FY 2019 and 2023 Federal Transit
H.12., File # 24-0787 Meeting Date: 5/21/2024
Administration’s evaluations of the program’s compliance with Federal Regulations.
BCT and WAVE Operations and Maintenance Costs
The contract’s payment structure is based on a two-tier fee structure that separates costs between the contractor’s fixed overhead costs and the costs that are directly related to operations. Separating the fixed overhead costs from the direct variable vehicle revenue service hour costs provides a better picture of the actual direct costs of the transit operations, as well as improves the City’s ability to evaluate costs with comparative transit agencies.
The fixed overhead costs include, but are not limited to: All salaries and wages and associated fringebenefits other than those related to vehicle operators; overhead costs; uniforms; physicals and drug/alcohol tests; office furnishings, equipment and supplies; maintenance equipment and shop tools; vehicle insurance; oil and lubricants; mobile and base radios and radio licenses; vehicle maintenance and repairs; radio maintenance; report reproduction; and management fees.
The Revenue Vehicle Service Hourly rate includes: direct costs related to the wages and benefits of vehicle operators; maintenance parts and supplies; outside repairs; overhead; and related profit or fees. The Out-of-Contract Non-Driving Services Hourly Rate includes: driver wages; driver workers’ compensation; driver health insurance; other driver fringe benefits; and the fixed hourly rate.
COORDINATION
The second amendment to the Agreement has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
The City’s transportation services are funded by dedicated transportation funding from the Municipal Transit Operator Formula Allocation Procedure (FAP), Local Return Proposition A funds, BCT fares, and bus pass sales revenues. The BCT/WAVE fare and bus pass sales revenues for FY 2024-25 are estimated at $200,000. The estimated cost for the operations and maintenance of the Beach Cities Transit system for the FY 2024-25, second-year option period is $3,396,833.28. The cost does not include Out-of-Contract service amounts to be used over the course of the contract on an as needed basis. Services are funded by dedicated transportation or other transit division funding and no General Fund monies are used to support the City’s public transportation systems.
FY 2024-25 Funding FY 2024-25 Expenditures
Transit Fund $3,396,833.28 Transportation Concepts $3,396,833.28 Total $3,396,833.28 Total $3,396,833.28
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Second Amendment to the Agreement with Parking Concepts, Inc. d/b/a Transportation Concepts (Transportation Concepts)
· Agmt - First Amendment to the Agreement with Parking Concepts, Inc., May 16, 2023 · Agmt - Beach Cities Transit Management Agreement, May 5, 2020
H.12., File # 24-0787 Meeting Date: 5/21/2024
· Map - BCT Lines 102 & 109 System Map
· WAVE Senior/Disabled Dial-A-Ride Information