Visalia City Council
November 18, 2024

Visalia City CouncilStaff ReportVisalia City Council707 W. AcequiaVisalia, CA 93291File #:24-0251Agenda Date:9/16/2024Agenda #:16.Agenda Item Wording:Award Contract for Microtransit Software and Vehicles - Authorize the City Manager to award acontract to Via in the amount of $117,600 for microtransit software, award a contract to Model 1 in theamount of $802,417.20 for seven (7) ADA accessible vans, and appropriate funds in the amount of$2,927,160 for the microtransit project.Deadline for Action: 9/16/2024Submitting Department:Administration - Transit DivisionContact Name and Phone Number:Angelina DeRossett, Transit Manager,[email protected](559) 713-4591John Lollis, Assistant City Manager,[email protected], (559) 713-4323Department Recommendation:Staff recommends that the City Council authorize the City Manager to award a contract to Via in theamount of $117,600 for microtransit software, award a contract to Model 1 (formerly Creative BusSales) in the amount of $802,417.20 for seven (7) ADA accessible vans, and appropriate funds in theamount of $2,927,160 for the microtransit project.Background Discussion:Over the past several years, similar to transit agencies nationwide, Visalia Transit ridership numbershave been slow to return to pre-pandemic levels. In 2022, staff began brainstorming different ideas tomake adjustments to combat the low ridership levels on large buses assigned to fix routes. At thetime, Visalia Transit staff began discussing a three-year microtransit pilot project with the TulareCounty Association of Governments (TCAG) and the Tulare County Regional Transit Agency(TCRTA), who at the time was the local Transit Agency for the County of Tulare and the other seven(7) incorporated CitiesThe plan behind the pilot project is to offer smaller vehicles in more flexible service areas in an effortto reduce the costs of the large 35’ buses. In April 2023, staff approached Council with the plan toparticipate in a three-year microtransit pilot, at which point Council gave its authorization. The datacollected from this pilot program will be used to reimagine the entire Visalia Transit system andstrategically replace low performing fixed routes with on-demand microtransit service. This service ismore flexible and is used with smaller vehicles rather than larger buses that drive in a designatedroute whether or not there are any passengers onboard.In August 2023, in participation with the TCRTA, a Request for Proposals (RFP) for microtransitsoftware was released to the public. At the end of that procurement process, Via was selected as themicrotransit vendor for the region. Via offers a cloud-based software that passengers will use to booktrips using a mobile application. This same application can also collect electronic fares. The flat fareVisalia City Council Printed on 9/13/2024Page 1 of 5powered by Legistar™ File #:24-0251Agenda Date:9/16/2024Agenda #:16.for the trips within the Visalia zone is proposed to be $5 throughout the course of the pilot phase, butcould be modified by Council action. The passenger will set up a profile on the Via app that will bespecific to Visalia Transit, and then be able to request a ride on demand. The rider should be able toget picked up within fifteen (15) to twenty (20) minutes to be taken to their destination. Otherpassengers can and will share the same vehicles when trip patterns align.Initially, Visalia Transit and the TCRTA had planned to operate the pilot as partners under a singlecontract. Since that time, Visalia Transit staff determined having a separate contract specifically forVisalia to contract directly with Via would be more advantqeous. Visalia Transit staff, with Councilapproval, will use the City of Visalia’s Transit Operations and Maintenance Agreement to employ thedrivers and perform this program. Visalia Transit will implement microtransit in the Visalia zoneinitially, and if the microtransit system can be successfully intermingled with the other microtransitsystems within the region, the format may vary.TCAG has agreed to fund this project directly to Visalia with State Senate Bill 125 funds, Measure R,and other funding as outlined in the fiscal impact section below. The TCAG Board of Governorsapproved this funding request at its August 2024 meeting. The project could be operational for up tothree years, depending on the State funding through TCAG available in the third year.Upon approval by Council, staff will still need to further address some additional items, including fareand fare collection. With this program, passengers will be able to book and pay for their microtransitride through the mobile application. With that said, staff will need to determine other ways to pay(farebox, tickets etc.) Additionally, this immediate implementation will be to cover only pickups anddrop-offs within the Visalia city limits zone. To connect to other zones outside of Visalia, agreementswill need to be put in place with other Transit agencies for those jurisdictions to sort out fare, and datacollection.Fiscal Impact:The three-year pilot program is estimated to cost $4.18 million, which includes all start-up costs asshown in the table below. The operations cost estimate was not calculated using the new transitprovider pricing due to these costs being received after discussions had occurred.Year 1Year 2Year 3FY 24/25FY 25/26FY 26/27TotalSoftware Start Up Cost$60,00000$60,000Annual Software andLicensing Cost$19,200$19,200$19,200$57,600Annual Wifi/TechnologyCost$5,810$5,810$5,810$17,430Vehicles & EquipmentStart Up Cost$877,670--$877,670Annual Operations Cost$1,058,570$1,058,570$1,058,570$3,175,710Annual Total$2,021,250$1,083,580$1,083,580$4,188,410Visalia City Council Printed on 9/13/2024Page 2 of 5powered by Legistar™ File #:24-0251Agenda Date:9/16/2024Agenda #:16.Transfer CIP Budget(VH0316)$177,670--$177,670Budget Appropriation$1,843,580$1,083,580$1,083,580$4,010,7402 Yr AppropriationRequest$1,843,580$1,083,580=$2,927,160Staff is requesting for the first two years to be appropriated ($2.9 million) as the City operates on atwo-year budget only. At the time these funding estimates were provided to funders, not all costswere accounted for. The hours and miles costs for the microtransit were calculated using estimates.Additionally, staff did not have the IT costs that will be associated with this program. Staff has sincereceived both of those updated cost calculations and are included in the cost shown above. Staffintends to recalculate costs for the third year and provide an additional funding request to TCAG foradditional SB 125 monies to fund the entire three-year pilot program, to which TCAG has committed.Following that additional funding request and approval, staff will return to Council and requestadditional funding to be appropriated for the third year of the pilot program year.A breakdown of the vehicle purchase and equipment needed is as follows:Vehicle TypeCost per unitNumber ofunitsTotal CostClass D Van (6 pass)$88,628.265$443,141.30Class P Van (8 pass)$179,637.952$359,275.90Model 1 Contract Total $802,417.20Technology (iPad minitablets for payments)$7507$ 5,250.00Cradlepoint (router) andnetwork technology$10,0007$ 70,000.00Total Vehicle & Equipment Cost $877,667.20These seven (7) ADA accessible vans (5 smaller, and 2 larger) will be purchased from Model 1, acommercial vehicle vendor, by using $700,000 in advanced Measure R operations funding fromTCAG from Visalia Transit’s Measure R future entitlement (scheduled to be approved at the TCAGBoard meeting on September 16, 2024) and a transfer of funds from the Visalia Transit Dial-A-Ride(DAR) CIP VH0316 that is currently budgeted. The two (2) larger vehicles will support bothmicrotransit and paratransit services, and by leveraging these funds, Visalia Transit is able topurchase the two (2) larger vans for the paratransit fleet. The existing VH0316 for thepurchase/replacement of Dial-A-Ride vehicles is funded by grant 5339. This purchase meets thegrant requirements as long as there is a twenty percent (20%) match. With this funding plan, the SB125 funding provided through TCAG covers almost fifty percent (50%) of the purchase. Model 1 wasselected as Visalia Transit’s vehicle vendor through the California Association for CoordinatedTransportation (CalACT). CalACT is a professional transit organization of which Visalia Transit is aVisalia City Council Printed on 9/13/2024Page 3 of 5powered by Legistar™ File #:24-0251Agenda Date:9/16/2024Agenda #:16.member. Staff is utilizing the purchasing cooperative options that CalACT has in place with Model 1.The price is based on a competitive bidding process conducted by CalACT.The ongoing cellular costs associated with these vehicles will be $40 per month per vehicle, and aflat $350 per vehicle per year fee to include wi-fi service on the vehicles. The total cost is $5,810 peryear, or $17,430 over the course of the three-year pilot program. Additionally, staff is requesting$75,253 more in vehicle funding to be used to equip the vehicles with iPads, cradlepoint, and wi-fitechnology. The iPads will be used to receive payment for ridership. These costs are shown in thetable above. At this time, Model 1 is still working on the quote for those components. Once that quoteis received by the City, the IT Division will decide if we want to purchase those components internallyor through the Model 1. If the IT department decides to purchase from Model 1 following receipt ofthe quote, staff will go to the City’s Change Order Committee to add the additional funds to the Model1 purchase order for the technology purchase.The breakdown of the vehicle cost and funding per vehicle type is as follows:Vehicle Cost/Funding$ Amount(5) Class D Van (6 passenger)$443,141.30Technology$ 3,750.00Cradlepoint (router)$ 50,000.00Class D Van Total Cost $496,891.30TCAG Funding (New Appropriation)$496,891.30(2) Class P Van (8 passenger)$359,275.90Technology$ 1,500.00Cradlepoint (router)$ 20,000.00Class P Total Cost $380,775.90TCAG Funding (New Appropriation)$203,108.70CIP VH0316 Transfer$177,667.20Class PTotal Funding$380,775.90Prior Council Action:April 17, 2023 Micro transit pilot approvalOther:N/AAlternatives:Council to instruct staff to not implement microtransit.Recommended Motion (and Alternative Motions if expected):I move to authorize the City Manager to award a contract to Via in the amount of $117,600 formicrotransit software, award a contract to Model 1 in the amount of $802,417.20 for seven (7) ADAaccessible vans, and appropriate funds in the amount of $2,927,160 for the microtransit project.Visalia City Council Printed on 9/13/2024Page 4 of 5powered by Legistar™ File #:24-0251Agenda Date:9/16/2024Agenda #:16.Environmental Assessment Status:N/ACEQA Review:N/AAttachments:RFP for microtransit software servicesVia Proposal with PricingTCAG Funding request approval23-0117 microtransit council item April 2023Class D (smaller van) Model 1 quoteClass P (larger van) Model 1 quoteCalACT LoA and Contract for vehicle purchase Visalia City Council Printed on 9/13/2024Page 5 of 5powered by Legistar™