CC - Item 6B - Rosemead Transit Services - Approval of Six-Month Extension and Authorization to Solicit ProposalsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: GLORIA MOLLEDA, CITY MANAGER J.1 -A .
DATE: JANUARY 15, 2019
SUBJECT: ROSEMEAD TRANSIT SERVICES —APPROVAL OF SIX-MONTH
EXTENSION AND AUTHORIZATION TO SOLICIT PROPOSALS
SUMMARY
On August 11, 2015, the City Council approved a three-year Professional Services Agreement
with Southland Transit to manage and operate the City's Transit System that includes the Dial -A -
Ride and Explorer Fixed Route bus services. The base term of the agreement expired on December
31, 2018. Although the agreement allows for one two-year extension, staff would like to seek other
competitive bids to ensure the City is receiving the best transit service available. Staff is also
seeking a six-month extension with Southland Transit or an alternate transit provider to allow the
necessary time to issue a new Request for Proposals, and bring the transit services agreement in
line with the fiscal year budget process.
STAFF RECOMMENDATION
Staff recommends that the City Council:
1. Authorize the City Manager to execute a six-month extension with Southland Transit
through June 30, 2019; or
2. Authorize the City Manager to execute a temporary six-month transit services agreement
with Transportation Concepts; or
3. Authorize the City Manager to execute a temporary one-year transit services agreement
with MV Transportation; and
4. Authorize staff to solicit proposals for a new Transit Services Agreement; and
5. Take such additional, related action that may be necessary.
DISCUSSION
On August 11, 2015, the City Council approved a three-year Professional Services Agreement
with Southland Transit to manage and operate the City's Transit System that includes the Dial -A -
Ride and Explorer Fixed Route bus services. The agreement required Southland Transit to operate
and maintain five City -owned, propane -powered buses; provide an experienced project manager
and maintenance manager; establish a maintenance facility; screen, select and train its employees;
AGENDA ITEM NO. 6.11
City Council Meeting
January 15, 2019
Page 2 of 4
report accidents, incidents, complaints, and service interruptions; provide scheduling and dispatch
services; collect fares and track ridership; maintain all vehicles in a clean, safe, sound and operable
condition at all times; conduct preventive maintenance and document all vehicle inspections,
diagnoses, repairs and servicing; prepare, maintain, and make available written records and data
relative to the Rosemead Transit vehicles and equipment; and other related activities.
During the base 3 -year term of the agreement, Southland Transit requested an adjustment to its
originally proposed fees due to State and local minimum wage increases. However, the City did
not accommodate Southland Transit's request on the basis that Southland Transit was aware of the
potential minimum wage increase, because such wage increases were discussed in an addendum
to the 2015 Request for Proposals (RFP). Therefore, as a cost of doing business, Southland Transit
should have factored into its original cost proposal any potential wage increases.
Southland Transit has operated the City's Transit System for the last eight years. However, during
the past 18 months, there have been a number of performance lapses related to vehicle maintenance
and maintenance record keeping, and billing discrepancies pertaining to fuel and insurance costs
that required correction. Therefore, staff would like to seek other competitive bids to ensure the
City is receiving the best transit service available.
With the agreement nearing expiration, staff worked with Southland Transit the past few months
to negotiate the terms and cost of a contract extension. Regrettably, the negotiations extended
beyond the expiration date. As a result,. in anticipation that the City may not come to agreement
with Southland Transit, staff reached out to two other transit service providers, Transportation
Concepts and MV Transportation.
Both Transportation Concepts and MV Transportation submitted proposals during the last
procurement process and expressed willingness to assist the city with a contract transition if
necessary. The following table provides options for the City Council's consideration, based on the
cost proposals received from each transit operator:
Proposed
Cost
Cost
Annual Cost
Above
Above
for Year 1
Baseline,
Baseline,
Extension
6 -month
1 -year
Option
Proposed !a:
Period
Extension
I Extension Notes
Baseline: Southland Transit Year 3 Base Term Annual Cost = $860,832
Current agreement
allows for annual
CPI increase for
City of
extension period
-
Rosemead
$891,822
$15,495
(3.6%)
City Council Meeting
January 15, 2019
Page 3 of 4
The current agreement with Southland Transit allows for an annual Consumer Price Index (CPI)
cost increase during the extension period. However, due to financial considerations, Southland
Transit indicated that they could not continue to operate the bus services for an extended period of
time under solely a CPI increase. Therefore, Southland Transit rejected the City's cost proposal
and is prepared to discontinueservice. Southland Transit's proposal (Option 1) seeks to capture
its additional costs, as previously requested, due to recent State and local minimum wage increases.
The proposals received from Transportation Concepts (Option 2) and MV Transportation reflect
their costs to take over the transit services contract on an emergency, short-term basis. Therefore,
the costs are significantly higher than Southland's baseline contract cost. In addition, instead of a
six-month contract extension, MV Transportation has requested a minimum one-year extension
(Option 3).
Based on the comparison of the overall cost of a contract extension, staff recommends a six-month
extension with Southland Transit (Option 1) to allow the necessary time to issue a new Request
for Proposals, and bring the transit services agreement in line with the 2019-2020 fiscal year budget
process. It should be noted that in the spirit of cooperation and to ensure no disruption to bus
services, Southland Transit agreed to continue operating the Dial -A -Ride and Explorer buses
beyond the base term expiration date, until a formal contract extension is approved.
Staff is currently working with the City's Transportation Planning consultant to finalize a new
RFP for Transit Services. The RFP will be ready for circulation in February 2019.
Finances
Currently budgeted for Fiscal Year 2018-2019
Southland's
proposal is intended
to capture its
additional costs due
to recent State and
local minimum
1
Southland Transit
$927,300
$33,234
wage increases.
Transportation
Concepts was the
low -bidder during
Transportation
the 2015
2
Concepts
$1,373,216
$256,192
$512,384
procurement process
MV
MV seeks minimum
3
Transportation
$1,148,279
$287,447
1 -year extension
The current agreement with Southland Transit allows for an annual Consumer Price Index (CPI)
cost increase during the extension period. However, due to financial considerations, Southland
Transit indicated that they could not continue to operate the bus services for an extended period of
time under solely a CPI increase. Therefore, Southland Transit rejected the City's cost proposal
and is prepared to discontinueservice. Southland Transit's proposal (Option 1) seeks to capture
its additional costs, as previously requested, due to recent State and local minimum wage increases.
The proposals received from Transportation Concepts (Option 2) and MV Transportation reflect
their costs to take over the transit services contract on an emergency, short-term basis. Therefore,
the costs are significantly higher than Southland's baseline contract cost. In addition, instead of a
six-month contract extension, MV Transportation has requested a minimum one-year extension
(Option 3).
Based on the comparison of the overall cost of a contract extension, staff recommends a six-month
extension with Southland Transit (Option 1) to allow the necessary time to issue a new Request
for Proposals, and bring the transit services agreement in line with the 2019-2020 fiscal year budget
process. It should be noted that in the spirit of cooperation and to ensure no disruption to bus
services, Southland Transit agreed to continue operating the Dial -A -Ride and Explorer buses
beyond the base term expiration date, until a formal contract extension is approved.
Staff is currently working with the City's Transportation Planning consultant to finalize a new
RFP for Transit Services. The RFP will be ready for circulation in February 2019.
Finances
Currently budgeted for Fiscal Year 2018-2019
City Council Meeting
January 15, 2019
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Public Notice Process
This item has been noticed through the regular agenda notification process.
Prepared by:
Rey Alfonso, P.E.
Director of Public Works
Attachments:
A. Southland Transit Cost Proposal for Contract Extension
B. Transportation Concepts Cost Proposal for Contract Transition
C. MV Transportation Cost Proposal for Contract Transition
Attachment A
Southland Transit Cost Proposal for Contract Extension
40STIM Setting the Standard for Community
Southland Transit Inc,
Transit in Southern California
SENT VIA BY US MAIL 8, EMAIL TO: gmolleda@citvofrosemead;ora
October 30, 2018
Gloria Molleda, City Manager
City of Rosemead
P.O.Box 399
Rosemead, CA 91770
Re: Extension of Services and Pricing Terms to Operate Rosemead Transit
Dear Ms. Moileda;
I'm providing this letter to formally respond to the City's request for pricing terms to have us
continue operating Rosemead Transit services beyond the base term of our agreement, which
expires on December 31, 2018.
On October 17th, l provided our price terms to continue operating Rosemead Transit services
for one additional two-year term, as Is the City's option under section 3.1.2 of our agreement,
along with our price terms to continue operating these services temporarily on a month-to-month
basis, as is allowed by mutual written consent under the same section of the agreement.
As I explained with my email containing. our price terms and during our subsequent meeting,
minimum wage laws were enacted after we began providing services under this agreement;
Which required that we pay our employees at significantly higher levels than were established
with our current price. At present, our entry level pay rate for a driver is 35 percent higher than
the rate included with our current price. As you know, we have made several unsuccessful
requests to the City for an equitable adjustment to our price for this reason alone.. The price we
are now offering to provide service beyond the base term captures this additional expense,
It was made clear at our last meeting that the City would not be offering the additional two-year
term, and would. instead be issuing a request for proposals. Nevertheless, we are happy to offer
the month--to-month price that we offered on October 17t4, should the. City still desire to amend
our agreement. on that basis. Otherwise, we intend to stop providing service when the base
term expires.
Please do :not hesitate to contact me if you would like to review our proposal, or require
additional information in order to consider this option,
Sincerely,
Jason Snow
Vice President/ COO
SOUTHLAND TRANSIT INC.
3650 ROCKWELL AVENUE, EL MONTE, CALIFORNIA 91731.
626.258.1310 - FAX 626.258.1329 • INFO.@80UTHLANOTRANsIT:COM
ROSEMEAD TRANSIT COST PROPOSAL FORM, PAGE 2
Proposer's Name: Southland Transit, Inc. .
PROPANE
10.17,1.8
PROPOSED COST FORMULA
This table auto -fills from Hourly and Fixed. Cost Tables. Do not overwrite formulas.
COST FORMULA
Option:Year One_
12 MQ:rlt,hr , :..
Optoon Yeu TWo 11
01' onths].
1. Cost per RVH
$ 29:57
$ 31.54
2. Monthly Fixed Cost
$ 38;804
$ 39,771
Projected Annual RVH
15,610
15,610
3. Annual RVH Cost
$ 461,657
$ 492,269
4. Annual Fixed Costs
$ 465,643
$ 477,248
TOTAL COST (3+4)
$ 927,300
$ 969,517
This Cost Proposal Form is to be used to submit the proposed contractor's firm cost proposal for all
work described in the RFP: and Scope of Work. The detailed. Cost Breakdowns of the Cost Proposal
Form should be consistent with proposed.Cost Per Revenue Vehicle Hour and Monthly Fixed Costs.
BREAKDOWN OF COST PER REVENUE VEHICLE HOUR
COST PER RVH BREAKDOWN
Year One
YearTwo
Driver Wages
$ 363,205.50
$ 390,445.91
Driver Fringe Benefits
$ 57,847.90
$ 59,583.34
Maintenance Part
$ 22,187.52
$: 23,296.90
Maintenance Supplies
$ 10,169.28
$ 10,474.36
Outside Repairs
$ 7,395.84
$ 7,617.72
Other ( Specify
Driver Permits/Licenses
$ 341:25
$ 341.25
Fingerprinting
$ 210.00
$.. 210.00
.
Pull Notice
$ 157.50
$ 157.50
Drug Tests
$ 141.75
$ 141.75
Vehicle.Llcenses
$
$
TOTAL. COST PER RVH
$ 2-9.57 1
$ 31'.54
Attachment B
Transportation Concepts Cost Proposal for
Contract Transition
TRANSPORTATION CONCEPTS
January 8, 2019
Rey Alfonso
Director of Public Works
City of Rosemead
8838 E. Valley Blvd
Rosemead, CA 91.770
RE: Emergency Proposal for Management and Operation of the Rosemead Transit
System
Dear Mr. Alfonso:
On behalf of Transportation Concepts (TC), I would like to thank you for the opportunity
to submit this emergency proposal for the management and operation of the Rosemead
Transit System.
Transportation Concepts is a California Company based in Irvine, California who has
successfully operated Dial -A -Ride and Fixed Route bus services throughout the local
area for over thirty six years.
As a result of the timeline of this request we shall provide in this letter the highlights of
this proposal as well as provide a cost associated with an accelerated transition from the
current operator for the Rosemead Transit Service. If additionally information is needed,
we would be more than. happy to provide details if the City opts to move forward with
seeking additional information. The following is an outline of how we plan to operate and
manage the Rosemead Transit. Service.
• We will assign Brett Baum, our current Director of Operations to the startup and
daily oversight of this contract. Brett has accomplished several successful contract
start ups over the years and. is an experienced transportation manager who has
been with our company for over 18 years. His resume is included.
• A dedicated FT Operations Manager will also be assigned to this contract. We
will assign Etnesto Lizarraga to this position. Ernesto has over 6 years of transit
management background with Transportation Concepts. A copy of his resume is
also included.
• Our Operational plan will be comparable with the proposal we had submitted
back in 2015. This plan focuses on contractual performance and customer service
which results in a positive experience for the end user and the City of Rosemead..
• A partnership with Penske fleet services to provide state of the art maintenance at
the. Montebello facility. The use of a maintenance expert such as Penske will
benefit the City in insuring that your vehicle assets receive the highest level of
maintenance care, something that our competitors cannot match.
12 Mauchly, Bldg. I I Irvine, CA 92618 1 (949) 864-3287 1 Fax (949) 864-3280
Page 2 of 3
• Recognizing the recent changes in relation to the recent changes that the State has
made to our minimum wages, the following would be the starting rates of pay for
each position we would utilize to insure that the Rosemead. Transit Service is
staffed by capable and experienced individuals. Our intent will be to hire as many
of the existing employees that would be willing to remain with the Rosemead
service however, we need to insure that those individuals will stay throughout the
term of our agreement. The wages used for pricing assumes retaining those
employees and compensating them based upon years of service on the Rosemead
Transit system.
Position
1
Number of
Employees
% of
Dedicated
Time.
Starting
Rata
Average Wage
used for
Pricing
Drivers
8 FT/ 4 PTS
160
$14.00
$15.24 hour
Project Manager
1 f
50a/Q
$65.00
$32.50 hour
O erntions Manager
1 FT
100% ,:
$19,.00.
$19.00 hour
Road Su ervisor
1 PT
100%
$18.00
$18,00 hour
Regional Maintenance
Director
1 1 T
M6/0
$36.50
$18.25
Dia atcher/Reservatiouist,
: I FT/ i PT
100%
$15.09
$17.00 Hour
Service Worker
t PT
100% :'
$15.00
$1$.00 Hour .
maintenance Manager -
Penske
f I+T
As Needed
Included in
Penske
Maintenance
Fee
Mechanic Penske 21 FT As Needed Included in
Penske
Maintenance
Fee
Included in this Proposal are cost forms that were required in the 2015 proposal
submittal. A few cost items that stand out are Start Up Expense and Major Maintenance
Component replacements.
Start Up —Usually Startup costs are factored into the first year a contract. However,
considering that this could range from a 6 month to 12 month term, we would request that
the start- up costs be reimbursed upon the start of this emergency service. For purposes of
budgeting, we would agree to a not to exceed start up amount of $30.000.
Major Maintenance Components – Since we are unsure of the existing condition of the
equipment and the level of maintenance that has been performed, items such as an
engine, transmission or differential failure would need to be reimbursed by the City.
Having to expense a major expense on a short term contract would be a significant
12 Mauchly, Bldg. I I Irvine, CA 92618 1 (949) 854-3287 1 Fax (949) 864-3280
Page 3 of 3
financial burden that could not be made up as these expenses usually are in a longer term.
agreement.
Transportation Concepts is experienced in providing seamless contract transitions and
with a successful past with many local Cities and transit agencies in the Los Angeles
County area. This experience will serve to further enhance a smooth transition. We also
do have experience in taking over similar contracts in a very short timeframe and have
done so over a 3-4 week period in past projects.
If further information is needed, please contact me at 949 864-3493 or via e-mail —
rrogers@transportation-concepts.com. I am authorized to bind Transportation Concepts
to the terms of this proposal. Transportation Concepts employees take pride in their jobs
and will work harder to serve our customers. We are confident that our approach will
facilitate better performance results than any of our competitors.
Rich Rogers
Chief ratir
Enclosure:
Cost Forms
Management Resumes
12 Mauchly, Bldg. 1 I Irvine, CA 92618 1 (949) 864-3287 1 Fax (949) 864-3280
ROSEMEAD TRANSIT COST PROPOSAL FORM
Proposer's Name: Transportation Concepts
PROPOSED COST FORMULA
COST FORMULA
Cost Propomal
6-1 Monft_
1. Cost per RVH
$36.74
2. Monthly Fixed Cost
$66,648
Projected Annual RVH
15,610
3. Annual RVH Cost
$573,438.49
4. Annual Fixed Costs
$799,777.85
TOTAL COST (3+4)
$1,373,216,34
BREAKDOWN OF COST PER REVENUE VEHICLE HOUR
COST PER RVH
BREAKDOWN
Cost poo I
[6.1.2 Moitlth$]
Driver Wages
$21,65
Driver Fringe Benefits
$5.30
Maintenance Parts
$5.46
Maintenance Supplies
$1.10
Major Components
Actual Cost Reimbursed
Other(specify)
Bus Wash/Detail
$0,83
Tires
$0.71
Penske PMI Program
$1.35
Towing
$0.35
TOTAL. COST PER RVH 1
$36.74
*Major Components - Engine, Transmission, Differential to be reimbursed by City
ROSEMEAD TRANSIT COST PROPOSAL FORM
Proposers. Name: Transportation Concepts
BREAKDOWN OF MONTHLY FIXED COSTS
(Note: Costs shown are to be the average monthly #ixed costs by category)
MONTHLY. FIXED COST
BREAKDOWN
CoSt:Pir 001111):
8- 121Mcltths
Project Manager Salary
$5,417
Project Manager Fringe
$500
Maintenance Mgr Salary
$3,142
Maint. Mgr Fringe
$250
Operation Supervisor Salary
$3,293
Operation Supervisor Fringe
$602
Dispatch Staff Wages
$13,260
Dispatch Staff Fringe
$1,805
Maintenance Staff Wages
$2,639
Maintenance Staff Fringe
$179
Other Wages (Specify)
Other Fringe (Specify)
HiringtTraining
$235
Safety - D&A program
$300
Uniforms
$125
Non -Revenue Vehicles
$417
Facility Lease/Rent Costs
$3,900
Janitorial
Telephone
$600
Utilities
Included in Rent
Office Supplies
$325
Accounting
INSURANCE:
General Liability
$175
Automobile Liability
$1,571.
Collision/Comprehensive
$479
Workers Compensation
$3,996
Computer Hardware
$667
Computer Software
Included w/ Hardware
On -Board Camera Costs
$0
Other (Specify):
Dispatch Scheduling Fee
$500
Phone System l Vehicle Radios:
$2,750
Support Vehicle
$417
Office Equipment
$792
" $tart Up Costs
Reimbursed by City
Overhead
$6,870
Management Fee/Profit
$11,443
TOTAL MONTHLY FIXED
COSTS
$66,648
* Start up Costs not to exceed $30k
BRETT BAUM
DIRECTOR OF OPERATIONS
St REND] H Rianabing employees, exceeding contract«al obligations & operations
SKILLS SUMMARY . Highly proficient in FTA triennial, NTD, and Drug and Alcohol audit preparation
. 100% success with CHP inspections.
Comprehensive understanding of ADA regulations and requirements.
Effective problem solver; prioritize and manage heavy work flow without direct
supervision.
"Can do" attitude; work in partnership with clients and community.
Excellent working relationship and reputation in communities served.
Additional skills include fixed route scheduling, customer service, labor
negotiations, vehicle maintenance oversight, NTD -reporting, etc.
EXPERIENCE Project Manager — 2010 to 2017
Transportation Concepts, Redondo Beach, CA
. Direct oversight of BCT operation, as well as support of Palos
Verdes and Avalon Contracts
• Ensures contract compliance; accurate data collected and
reported; and customer service standards met.
. Current emphasis on safety, ADA and other regulatory
requirements, and performance goals
General Manager — 2006 to 2010 .
Transportation Concepts, Riverside, CA
Responsible for direct oversight of fixed -route and commuter operations
throughout Riverside County for Riverside Transit Agency Contract
0 86 vehicles
0 165 employees
ff Accountable for human resources, maintenance, system performance, contract
compliance, and customer service related to designated contracts.
. Provides assistance and training to supervisors
. Develops effective schedules to ensure optimum service and employee satisfaction
Motivates employees
■ Maintains consistent communication with clients served
General Manager — 2005 to 2008
Transportation Concepts, Sylmar, CA
Responsible for direct oversight of fixed -route and commuter operations for
Metro's contracted bus services- North Region
0 55 vehicles
o 110 employees
Ultimately responsible for compliance with all local, state, and federal regulations
governing contract operations
Coordinated labor negotiations
District Manager - 2002-2005
Transportation Concepts, Los Angeles, CA
Responsible for district oversight of five contracts throughout
Los Angeles County including DAR and PR shuttles
Responsible for ensuring performance goals were exceeded to
include increased passengers per hour and improved on-time
performance
Familiar with all aspects of each contract to include
reservations and scheduling passengers and associated
technology
Lead safety and training efforts with emphasis on ADA
compliance
Maintained focus on passenger sensitivity
Main Liaison with five different clients in five diverse
environments
Project Manager -1999-2002
Transportation Concepts, Carson, CA
• Responsible for operational performance of a 12 vehicle fixed
route service involving coordination with other municipal
agencies including METRO
• Managed all aspects of contract to include on -street
operations, safety, maintenance, administration, human
resources, and overall system performance
General Manager Operations -1998-1999
S Burde & Company, Johannesburg, South Africa
Implemented cost cutting initiatives
Lead new business strategies &. marketing plans
Trained, developed and supervised employees
Improved client satisfaction as a result of strengthening
infrastructure and improving logistical
General Manager/Call Center Manager -1996 to 1998 .
Time Warner Publishing, Johannesburg, South Africa
• Directly responsible for profit/loss, forecasts, budget, market
strategies, and all other operations
• Developed and implemented nationwide call center
• Directed scheduling and delivery of over 2,000 packages per.
day
EDUCATION University of South Africa -Advanced logistics Management
Pepperdine University - Transit Management Certificate
ERNESTO LIZARRAGA
OPERATIONS MANAGER
EXPERIENCE Operations Supervisor — Nov 2017 - present
Transportation Concepts, Redondo Beach and Palos Verdes, CA
Responsible for supervision of Beach Cities Transit, as well as PV Transit operation and
Playa Vista DAR and Shuttle service over the last 4 years
Supervises daily service operation
. Provide daily time checks and perform daily route observations to insure safe and on time
performance
Dispatch responsibilihj during operating hours to coordinate and resolve any delays
Conduct daily fare box reconciliation
. Assists in investigating customer comments
. Operate routes as needed
Project Manager - 2016-2017
Transportation Concepts Avalon
• Responsible for contractual startup and day to day operation of Fixed
Route and Dial a Ride Operation under contract with the City of Avalon
• Managed all aspects of the operation, including employee hiring,
contractual performance and City of Avalon client relations.
Operations Supervisor -2012-2017
• Responsible for supervision of Beach Cities Transits
• Supervises daily service operation
• Provide daily time checks and perform daily route observations to insure
safe and on time performance
• Dispatch responsibility during operating hours to coordinate and resolve
any delays
Vehicle Operator— 2012-2012
Fixed Route Vehicle Operator
Los Angeles Metro
Operate Metra. fixed route service in a safe and timely manner in Los
Angeles. Counhj
Maintained proper driver logs for CHP regulations
Identified safety hazards and proposed resolutions to manager
Attachment C
MV Transportation Cost Proposal for Contract
Transition
MV Transportation, Inc
January 4, 2019
Ray Alfonso
Director of Public Works
City of Rosemead
8838 E. Valley Road
Rosemead, CA 91770
RE: Inquiry Request - Operation of Rosemead Transit
Dear Mr. Alfonso:
Thank you for reaching out to me to discuss the current state of the City's transit system. Based
on our initial and follow-up discussions, MV Transportation, Inc. (MV) has prepared preliminary
pricing for the operation of the City's transit system comprised of turnkey management and
operations of the City Dial -a -Ride and Explorer services for a period of two years (one base
year and one option year). Contained herein you will find an overview of the firm, our
operating plan, a description of the operating facility, the organizational chart for the
engagement, and our proposed price.
It is important to note that MV has based its pricing on certain assumptions, which we have
outlined herein; we would like to discuss with the City in more detail at the appropriate time.
Should the City require any further additional information, please do not hesitate to contact
me at any time.
Judie Smith is your primary contact and is authorized to make representations for MV
Transportation, Inc., including all its subsidiaries, joint ventures, partnerships, and affiliates
(the bidding entity). She. can be reached any time of day at (310) 625-1628 or by email at
ismith(@mvtransit.com. Additionally, I will serve as your secondary contact; I can be reached
at (623) 340-3209 and by email at joe.escobedo(a7mvtransit.com.
Thank you for your ongoing consideration of MV Transportation, Inc. We book forward
to working with you.
Best reg s,
Joe Ncobedo
Senior Vice President
479 MASON STREET I SUITE 2211 VACAVILLE, CA 95688
OPERATION OF ROSEMEAD TRANIST
About MV Transportation
MV Transportation, Inc. was founded in 1975, in the San Francisco Bay. The owners
and founders, Feysan and Alex Lodde,
formed an agreement with the City of San
Francisco to provide transportation to _
persons with disabilities.
The Loddes acquired three vans and
pioneered transportation of persons with
disabilities in the Bay Area 15 years in
advance of the historic passing of the
American with Disabilities Act into law in
1990. Over the next two decades, the
company grew from a local company to a
national multimodal transportation provider. MV Co-founder Feysan Lodde in 1975.
In total, MV Transportation, Inc. and its
subsidiaries have been providing transportation services for 62 years.
"MV is a true American success story. Through dedication to our passengers, our
clients, and our employees, MV has grown to be the largest United States -owned
transportation management company in the nation. Our people and our dedication to
serve truly make us different." — Feysan Lodde; Founder
Today, the company remains the nation's largest American -owned passenger
transportation company. The MV name represents MV Transportation, Inc. and its
affiliates, which include MV Public Transportation, Inc., MV Contract Transportation, Inc.;
MVT Canadian Bus, Inc.; and. Reliant Transportation, Inc.
Company Size and Statistics (as of December 2018)
Number of Employees: 19,299
Number of Vehicles: 11,000
2017 Revenue: $1,322,282,000
Number of Contracts: 237
Number of Locations: 208 (29 states and Washington D.C.; 2 Canadian
Provinces)
Legal Status: MV Transportation, Inc. is a C corporation and was
incorporated in the State of California in 1978.
MV TRANSPORTATION, INC.
2.
OPERATION OF ROSEMEAD TRANIST
Management Philosophy
MV operates under a guiding management philosophy that service quality need not have
a direct relationship to operating cost, and instead is derived by a positive work
environment where proactive employee relations and professional development are
encouraged. Passenger transportation is a people -focused business, and excellence is
achieved when qualified employees have the training and support resources to perform
their jobs safely and professionally. Further, a well-trained, well -organized staff will
realize great operational efficiencies that can contain costs and deliver effective
alternative options to MV's customers, without reducing service or sacrificing quality.
MV's Approach to Similar Projects
MV's approach offers effective solutions to a variety of
clients in a manner that maximizes resources and
controls costs. In Los Angeles, this is frequently
achieved though leveraged facilities and staffing — an
approach that contains costs while ensuring that each
service is operated using qualified and professionally
trained personnel.
Throughout its history, the company has remained
steadfast on promoting diversity within its operations;
the company currently operates services of varying
size and scope — from two bus operations to 200 bus
operations. MV's reputation for excellence across the
industry lies in its ability to meet the transit needs of
an extensive and diverse customer base.
• Paratransit and Demand Service: MV manages more than 130 contracts operating
demand -based transportation services programs across North America, serving
diverse metropolitan areas such as Los Angeles, Baltimore, New York, and
Vancouver.
• Fixed Route Service: MV operates more than 140 contracts in North America with
fixed route, flex route, commuter bus, and shuttle components. Within the Southern.
California/greater Los Angeles Metropolitan area alone, MV operates more than 700
fixed route transit buses. MV provides more service than any other contractor on
behalf of the Los Angeles Department of Transportation (LADOT). This Los Angeles
presence creates optimal availability of cross -trained staff, ready to serve as
replacement staff as needed.
MV TRANSPORTATION, INC. 3
OPERATION OF ROSEMEAD TRANIST
•
!
:
Fleet Maintenance: Approximately 80 percent of MV's contracts, and nearly all
contracts where MV operates more than 50 buses, require that the company manage
and maintain fleet maintenance operations. The company's maintenance program is
based on industry best practices to protect and extend the life of the transit fleets it
r
operates.
Transportation Technologies and Intelligent Transportation Systems: MV
surpasses its competition in the management of ITS programs. The company is
:
experienced in the implementation and use of nearly all transit technologies available
to public transit systems. Over the past decade, the company's development and use
of state-of-the-art software has reinforced the company's position as a transit
technology leader.
Organizational Resources, Expertise, and
Primary: Business
•
Transportation is MV's primary business, and MV commits a significant investment in the
corporate resources provided to each of its operations. More than 100 employees in
-
centralized corporate departments (operations, maintenance, information technology,
safety, risk management, human resources, payroll, accounting, and legal) provide
:
support services to MV's local teams. This approach reduces costs and places highly
:
experienced personnel near the local area to assist as needed.
Unrivaled Local Support
As the largest provider of fixed route and
`
paratransit services in California, MV °°' s-1 C, a
brings and
significant experience access `
to professional support, With more than
•
20 locations in the Los Angeles area and oma
70 contracts within the State of "e"""
California, MV can provide additional
-. 7 nw hna em
labor, equipment, and supplies to the geawh
service as needed. Located at.7209 East
Rosecrans Avenue, Paramount, A4VCootMa tLacations
California, MV's operating location is 15
miles from the Rosemead City limit.
•
The key to MV's proposal is a superior staff and support team. MV is proud to offer a
•
highly experienced team to work in partnership with the. City to ensure that service runs
smoothly and. that the City's investment in new vehicles is protected. Led by MV's
•
Southern California regional vice president, Judie. Smith, MV's regional management.
MV TRANSPORTATION, INC. 4
OPERATION OF ROSEMEAD TRANIST
personnel are available to the local team in person, via telephone, and by email to
ensure MV is living up to the promises made in this proposal. Finally, W's centralized
support approach allows the local team to focus on service, rather than administrative
functions.
MV's proposal contemplates operating service from its existing location. in nearby
Paramount. MV's Paramount facility offers a fully -staffed operation — including the street
supervision and operations management personnel to provide necessary support for the
services.. Additionally, MV will leverage its existing management team to oversee this
project, offering an. exceptional blend of operational experience and cost efficiency:
• Project/Safety Training Manager, Kay Kindle, brings 30 years' experience in
transportation management in the greater Los Angeles area to the City services. Kay
is a hands-on manager whose expertise will ensure excellent customer service,
safety, and response time.
• General Manager (Paramount, California), Stephen Allan, brings more than 30
years of management experience to the City. He is onsite during all hours of service
and will be available to support Kay Kindle as needed.
• Operations Supervisor, Lupe Flores, brings 20 years of transportation experience
to the City and currently maintains daily oversight for 945 employees.at MV's
Paramount location.
• Maintenance Manager, Martin Camargo, brings more than 15 years of Southern
California transportation maintenance experience to the City. He will apply this
expertise to the upkeep and maintenance of the City fleet, ensuring preventive
maintenance inspections are completed on-time and all safety issues identified by
the operators are immediately addressed.
Regional Vice President, Judie Smith, will provide corporate support and is a 28 -
year veteran of public transportation. She will lend support to the local team, lead
transition efforts, and ensure the City is receiving unrivaled service.
Judie Smith will conduct quarterly evaluations of the service with the City
to ensure MV is living up to expectations.
MV will also provide additional corporate support through regional personnel who are
experts in the areas. of safety, maintenance, and accounting..
MV TRANSPORTATION, INC. 5
OPERATION OF ROSEMEAD TRANIST
Staffing Organization Chart
*Denotes leveraged personnel resulting in savings for the City in the management of the
system.
Operations and Maintenance Facility
MV will base operations, dispatching, training, maintenance, cleaning; and vehicle
storage from its facility located at 7209 East Rosecrans Avenue in Paramount, CA.
This facility provides 4,000 square feet of indoor space (with concrete flooring) to
perform all vehicle maintenance with two drive-through service bays, providing four
stations from which maintenance can be performed. The facility has an appropriate
ANSI -approved hydraulic lift capable of fully lifting the heaviest service vehicles six feet
above the ground for maintenance purposes. The maintenance area is fully enclosed
and able to withstand the weight of a. Type C transit vehicle. This facility includes a bus
wash and a secured storage area for tools, equipment, and parts.
The yard is situated on two acres of paved outdoor vehicle storage space; the area is
securely fenced and well lit. Additionally, this facility provides approximately 1,500
square feet of operations space with. five offices and five workstations, dispatch office,
operator break area, and one training room. This facility is currently leased by MV.
MV TRANSPORTATION, INC. 6
OPERATION OF ROSEMEAD TRANIST
arcA
Contractual and Pricing Assumptions
Assumptions regarding a resulting contract include the following;
• MV's pricing is based on a 2 -year term comprising one base year with one mutually
acceptable option year.
• MV reserves the right to adjust its price to the City if the City adjusts projected
revenue vehicle hours in excess of 10 percent (increase or decrease). MV assumed
15,610 annual revenue Vehicle hours (6,510 for Dial -A -Ride services and 9,100 for
Explorer services) and 233,507 total miles.
• MV reserves the right'to review and provide feedback on a resulting contract and to
negotiate in good faith with the City to reach a mutually acceptable agreement.
• MV reserves the right to reprice these services during the negotiation process and as
additional information and/or clarifications are obtained.
MV TRANSPORTATION, INC 7
OPERATION OF ROSEMEAD TRANIST
MV. TRANSPORTATION, INC. 8
Assumptions regarding MV's price include the following:
•
MV's revenue vehicle hour definition is based on the below definition provided by the
•
•
City:
For Rosemead's fixed route services, a revenue vehicle hour shall be defined as
any sixty -minute increment of time, or portion thereof, that a vehicle is in revenue
service, including layover/recovery time but excluding deadhead, training
•
operators prior to revenue service and road tests.
•
For the Rosemead Dial -A -Ride service, a revenue vehicle hour shall be defined
as any sixty -minute increment of time, or portion thereof, that a vehicle is
available for passenger transport within the established hours of service. A
vehicle is available for passenger transport from the time it arrives at its first pick-
up address and ends when it has completed its last passenger drop-off and is
released from service by the dispatcher. If the first scheduled pick-up is a no-
show, the vehicle arrival time at that stop shall still be used for computation of
•
revenue vehicle hours, however, this rule shall not apply to late trip cancellations.
•
Revenue vehicle hours are also known as "vehicle revenue hours" and" vehicle
•
service hours." Revenue vehicle revenue hours, for both services, shall exclude
any meal breaks, service breaks, mechanical breakdowns and time a vehicle is
down due to an accident.
• MV assumed an average driver seniority of 4.7 years in year one (base year) and 5.0
years in year two (option year). MV slid not receive information on the incumbent
workforce, so may need to adjust its price when information is provided.
•
• MV assumed the City will reimburse for fuel supplied by MV for use in the City-.
provided revenue vehicles.
•
MV assumed the City will honor the previously stated 180 -day waiver of any.
penalties and incentives from the start of the agreement for both Criteria 1 (Service
Productivity) and Criteria 2 (Dial -A -Ride On -Time Performance) of the Rosemead
•
Transit Service Standards table contained in its original RFP.
•
• MV shall be entitled to compensation for Special Services beyond the established
maximum obligation for such services at the normal rate per revenue vehicle. hour
•
specified in the agreement.
• MV's current price does not account for any fuel tax credits at this time.given the
pnq
timeline to complete its initial pricing. MV will update its pricing for the City once we
have the relevant information in hand which will in effect lower. the overall cost to
•
operate the service.
• MV assumed the City would be agreeable to the following language change
regarding vehicle,Physical Damage Insurance based on MV's certification with the
State of California as a self-insured contractor based on its financial viability:
MV. TRANSPORTATION, INC. 8
OPERATION OF ROSEMEAD TRANIST
Original language in RFP: 2. Insurance, 3. Coverage, (c) Vehicle Physical Damage.
• With respect to the vehicles to be used under the terms of this Contract, CONTRACTOR
shall maintain in full force and effect insurance covering vehicles against physical
damage from comprehensive and collision, in an amount equal to the vehicles' actual
cash value. Any deductible shall not exceed Ten Thousand Dollars ($10,000.00) Per
Incident, must be stated in writing to the CITY and shall be the sole responsibility of the
CONTRACTOR.
• Proposed language change:
With respect to the vehicles to be used under the terms of this Contract, CONTRACTOR
shall maintain in full force and effect insurance covering vehicles against physical
: damage while in the care, custody, or control of CONTRACTOR, in an amount equal to
the vehicles' actual cash value. CONTRACTOR is.allowed to self -insure this coverage.
• Items to be provided by City and MV
•
Items to be provided by the City:
• City will provide all hardware and software technology required for the Explorer fixed
route service to include GPS tracking.
• City will provide at no cost to MV a total of five (5) propane -fueled revenue vehicles
along with fareboxes and vaults to include three (3) Type C Starcraft Allstar Buses
and two (2) Type B Starcraft Allstar Buses.
• The City will be responsible for vehicle registration and licensing of the revenue fleet.
• The City will provide Seon or similar type on -board camera system in each of the
revenue vehicles at no cost to MV.
Items to be provided by MV:
• MV will provide Trapeze software for use on the Dial -A. -Ride service.
• MV will provide. tablets in each of the Dial -A -Ride revenue vehicles.
® • MV will provide two-way radios for use by vehicle operators and dispatch.
T • MV will equip each revenue vehicle with Mobileye and DriveCam camera systems.
• MV will provide two used relief vehicles.
• MV will provide translation services along with secret shopper services.
•
MV TRANSPORTATION, INC. 9
ROSEMEAD TRANSIT COST PROPOSAL FORM, PAGE 2
Proposer's Name. MV Transportation, Inc.
PROPOSED COST FORMULA
Thic fahla niitn_fillc frnm'Hniiriv and FiYprl Cnct Tnhlps_ Do not Overwrite formulas.
COST FORMULA
+Year One
12 Months
Year Two
12 Months
1. Cost per RVH
$39.60
$42.18
2. Monthly Fixed Cost
$44,183
$41,645
Projected Annual RVH
15,610
15,610
3. Annual RVH Cost
$618,082
$658,412
4. Annual Fixed Costs
$530,197
$499,744
TOTAL COST (3+4)
$1,148,279
$1,158,155
This Cost Proposal Form is to be used to submit the proposed contractor's firm cost proposal for all work described in
the RFP and Scope of Work. The detailed Cost Breakdowns of the Cost Proposal Form should be consistent with
proposed Cost Per Revenue Vehicle Hour and Monthly Fixed Costs.
BREAKDOWN OF COST PER REVENUE VEHICLE HOUR
COST PER RVH
BREAKDOWN
Year One
Year Two
Driver Wages
$24.312
$25.935
Driver Fringe Benefits
$8,572
$9.614
Maintenance Parts
$1.536
$1.605
Maintenance Supplies
$0.127
$0.131
Outside Repairs
$0.202
$0.208
Contracted Veh. Cleaning
$0.299
$0.308
Interest Expense
$0.193
$0.160
Overhead
$1,980
$1.687
Management Fee/Profit
$2.376
$2.531
TOTAL COST PER RVH
$39.595
$42.179
ROSEMEAD TRANSIT COST PROPOSAL FORM, PAGE 3
Proposer's Name: MV Transportation, Inc.
BREAKDOWN OF MONTHLY FIXED COSTS
rnl..+e• I--+. -k--n orn+^ he+hn warann mnn+hly fig orl enctc hu camnnrvl
MONTHLY FIXED COST
BREAKDOWN
Year One
Year Two
Project Manager Salary
$
883.57
$
905.66
Project. Manager Fringe
$
110.94
$
114.32
Maintenance Mgr Salary
$
400.49
$
410.50
Maint. Mgr Fringe
$
76.77
$
78.89
Operation Supervisor Salary
$
5,248.39
$.
5,791.86
Operation Supervisor Fringe
$
988.26
$
1,088.84
Dispatch Staff Wages
$
5,248.39
$
5,791.86
Dispatch Staff Fringe
$
988.26
$
1,088.84
Maintenance Staff Wages
$
4,270.14
$
4,442.89
Maintenance Staff Fringe
$
984.42
$
1,066.40
Other Wages (Specify)
$
$
Other Fringe (Specify)
$
_
$
HiringlTraining
$
862.02
$
887.88
Safety
$
466.83
$
475.77
Uniforms
$
154.48
$
159.12
Non -Revenue Vehicles
$
1,175.09
$
1,202.25
Facility Lease/Rent Costs
$
3,812.73
$
3,931.77
Janitorial
$
$
-
Telephone
$
767.09
$
79001
.Utilities
$
466.48
$
480.46
Office Supplies
$
295.82
$
304.69
Accounting
INSURANCE:
General Liability
Automobile Liability
$
733.11
$
733.11
Collision/Comprehensive
$
2,345.95
$
2,365.50
Workers Compensation
Computer Hardware
$
210.13
$
210.13
Computer Software
$
4,410.49
$
4,542.81
On -Board Camera Costs
$
$
-
Fareboxes
Radio's
$
420.00
$
427.20
Syste.mNehicle Technology
Business License/Taxes
$
31.17
$
32.10.
Start Up Costs
$
3,756.99
$
Interest Expense
$
214.91
$
157.81
Overhead
$
2,209.15
$
1,665.81
Management Fee/Profit
$
2,650.99
$
2,498.71
TOTAL MONTHLY FIXED COSTS $ 44,183.06 $ 49,645.30
[Note: Listing of typical cost items on this provided form does not require Contractor to provide this position,
utility or service.]
ESTIMATED ANNUAL FUEL COST
Year One Year Two,
Projected Total Vehicle Miles 234,595 234,595
Estimated Annual Fuel Cost $ 102,175.64 $ 105,240.91
Assumed Cost/Gal Gasoline $ 2.500 $ 2.575