TRANSMITTAL. TO Deborah Flint, Executive Director Department of Airports

Transcription

1 I f r TO Debrah Flint, Executive Directr Department f Airprts pp dw The Mayr TRANSMITTAL NOV ' ;. nc.ii i ill n" COUNCIL OlSfPiCT 4, 5, 11, 13, City f Santa Mnica, City f Lng Beach j Award f Cntract t MV Transprtatin, Inc. fr Three Years, With Tw One-Year Extensin Optins, Fr FlyAway Bus Service Between Ls Angeles Internatinal Airprt and Hllywd, Westwd, Santa Mnica, and Lng Beach Transmitted fr further prcessing, including Cuncil cnsideratin. See the City Administrative Offi- reprt attacl i A' ia Guerrer MAS.WDC: i

2 REPORT frm OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: Nvember 6, 2015 CAO File N. Cuncil File N. T; Frm: Reference: The Mayr Miguel A. Santana, City Administrative Officer Cuncil District: 4, 5, 11, 13, City f Santa Mnica, City f Lng Eleach 'd CL Transmittal frm the Department f Airprts dated Octber 27, 2015; referred by the Mayr fr reprt n Octber 28, 2015 Subject: AWARD OF CONTRACT TO MV TRANSPORTATION, INC. FOR THREE YEARS, WITH TWO ONE-YEAR EXTENSION OPTIONS, FOR FLYAWAY BUS SERVICE BETWEEN LOS ANGELES INTERNATIONAL AIRPORT AND HOLLYWOOD, WESTWOOD, SANTA MONICA, AND LONG BEACH SUMMARY The Executive Directr f the Ls Angeles Wrld Airprts (LAWA; Department) requests apprval f a prpsed three-year agreement with MV Transprtatin, Inc., a Dallas, Texas-based paratransit cmpany, fr the peratin f airprt bus service cnnecting passengers frm Hllywd and Westwd with the Ls Angeles Internatinal Airprt (LAX). The prpsed agreement includes tw ne-year extensin ptins fr a ttal cntract term f five years, MV Transprtatin has been prviding grund transprtatin services t the Ls Angeles area fr ver 15 years and, in particular, t the City's Department f Transprtatin. In additin t cntinuatin f the Hllywd and Westwd rutes, which will transitin t MV Transprtatin n February 1, 2016, the agreement allws fr (1) the peratin f a Santa Mnica rute, which will transitin n February 1, 2016; (2) initiatin f a Lng Beach rute t begin n December 30, 2015; and (3) the fulfillment f LAWA s bligatin t develp eight FlyAway bus sites by December 30, MV Transprtatin s ptin t perate the Santa Mnica and Lng Beach bus services is subject t apprval by the LAWA Executive Directr. The current service prvider fr these lcatins, Crinthian Internatinal Parking Service, Inc., was selected in 2012 by way f a cmpetitive prcess and entered int a three-year agreement (cncluding in Octber 2015) fr FlyAway bus services n the Westwd and Exp/La Brea rutes. A June 2014 cntract amendment resulted in the additin f bus rutes fr Hllywd and Santa Mnica. Of the fur rutes, the Hllywd and Westwd rutes average apprximately 50,000 passengers annually and are ppular with LAX passengers while the Santa Mnica and La Brea rutes, in spite f aggressive marketing effrts, have experienced lw r extremely lw ridership (e.g., a cmbined average f 15,800 passengers annually).

3 CAO File N Since Crinthian internatinal Parking Service s cntract expired n Octber 3, 2015, its bus rutes serving Hllywd, Westwd, Santa Mnica, and Lng Beach have been assumed by Pacific Cast Sightseeing Turs and Charters n an interim basis until the new cntract with MV Transprtatin can be executed. Pacific Cast Sightseeing Turs and Charters was ne f the respndents t LAWA s June 29, 2015 Request fr Prpsal (RFP) fr these services and is the current prvider f the Van Nuys and Unin Statin FlyAway services. Crinthian Internatinal Parking Service chse nt t submit a prpsal. The cntinuatin f existing FlyAway bus services fr the Hllywd and Westwd rutes and, ptentially, the cntinuatin f the Santa Mnica rute and initiatin f a Lng Beach rute, are in additin t the fllwing sites that cmprise the balance f the eight rutes that LAWA agreed t establish by December 2015 (a ninth rute the riginal Van Nuys rute is in additin t the eight rutes fr which LAWA cmmitted t sen/e by December 2015): Unin Statin (active) Irvine (cancelled due t extremely lw ridership) Exp/La Brea Light Rail Line (cancelled due t extremely lw ridership) Orange Line (t begin December 2015) With the apprval f the prpsed agreement and initiatin f the Lng Beach and Orange rutes the FlyAway bus service will cnsist f seven active rutes (including the riginal Van Nuys rute) which reflects (1) the Department's effrts t develp eight additinal rutes by December 30,2015, and (2) the clsure f the Irvine and Exp/La Brea Light Rail Line rutes due t lw ridership. The agreement with MV Transprtatin, Inc. was apprved by the Bard f Airprt Cmmissiners (Bard) at its meeting f Nvember 5, Backgrund With the riginal bus service frm Van Nuys begun in 1975, FlyAway buses have been prviding service t passengers using LAX fr 40 years. The Westwd rute began in 2007, whereas the Hllywd and Santa Mnica rutes began in Accrding t the Department, in Fiscal Year 2014/15, 119,184 passengers were transprted by way f 35 daily ne-way trips prvided fr each f the three rutes: Westwd, Hllywd, and Santa Mnica. Since the inceptin f the FlyAway bus prgram, services have been cntracted ut with the knwledge and apprval f the City s unins since the City des nt have the expertise t prvide this service. In cnfrmance with the prvisins f Administrative Cde Sectin Cmpetitive Prpsals Preferred," tw prpsals were received by LAWA n August 17, 2015, in respnse t an RFP fr the Hllywd and Westwd FlyAway rutes that was issued in June 2015: ne by MV Transprtatin, Inc. and the ther by Pacific Cast Sightseeing Turs and Charters, Inc. Fllwing an evaluatin by fur members f the Department s management team, MV Transprtatin was deemed t be the mst respnsive and respnsible prpser, especially given that the cmpany s prpsed cst f services was 57 percent less expensive than its cmpetitr. Additinally, the

4 GAO File N Department believes that in selecting a new service prvider, it will benefit frm a mre dynamic management apprach and greater service flexibility. Underthe terms f the agreement, MV Transprtatin will deply new buses equipped with real-time bus arrival infrmatin. Additinally, technlgy t aid in selling tickets, establishing revenue cntrl, and staffing has been incrprated int the prpsed agreement. With respect t the financing and revenue prcesses, MV Transprtatin will frward all revenue frm ticket and pass sales t the Department wherein LAWA will pay MV Transprtatin (1) a fixed mnthly management fee, (2) a per-cmpleted trip fee minus any penalties fr service deficiencies, and (3) any apprved credit card prcessing csts. The Agreement als cntains an early terminatin clause that allws LAWA t cnclude the Agreement fr the Hllywd and Westwd FlyAway service rutes, withut cause, within the first tw years but with a terminatin payment calculated n the depreciated value f the buses capped at $300,000. N terminatin payment is payable if LAWA cancels the new Santa Mnica and/r Lng Beach rutes. The fllwing table illustrates the number; lcatin f existing, clsed, and prpsed LAX FlyAway bus rutes; and ridership infrmatin; LAX FLYAWAY BUS S ERVICE FlyAway Site Service Service Annual Initiatin Cnclusin Passengers Fiscal Year Dally One-Way Current and Trips Prpsed Service Cmments Van Nuys' , / PCSTC Original Site LA. Unin Statin 3/ , /15 80 PCSTC Wesiwd/UCLA Wine 6/ , /15 35 PCSTC MVT 11/2009 8/ /12 6 Exp/La Brea Light Rail Line 7/2013 7/ , /14 9 Santa Mnica 7/ , /15 35 PCSTC MVT Hllywd 9/ /15 35 PCSTC MVT Orange Line 12/ /16 38 TDD Prpsed Start Date f 12/2015 Lng Beach 12/ /16 35 PCSTC - MVT Prpsed Stert Date 0112/2015 'Original FlyAway site sd nt pari f LA WA's prpxed implementatin f eight sites by 2015 PCSTC; Pacific Cast Sightseeing Tur and Charters, Inc.; MVT; MV Transprtatin, Ik. Cntract Terms and Expenditures The Department mst recently cntracted with Crinthian Internatinal Parking Service frthe perid Octber 4, 2012 t Octber 3, A First Amendment was apprved by the Bard in June 2014 that added the Hllywd and Santa Mnica rutes t the riginal Westwd and Exp/La Brea rutes. Expenditures fr the three-year term were apprximately $2.32 millin.

5 CAO Rle N Under the new agreement with MV Transprtatin, up t fur rutes, each with ne stp, will be established utilizing a new bus fleet equipped with technlgy t enable passengers t receive realtime arrival infrmatin and purchase tickets, as well as t prvide revenue cntrl prcedures and staffing and peratinal data. Bth the base agreement and ptinal services fr the Santa Mnica and Lng Beach rutes may be terminated by the Department upn 60 days written ntice. The inclusin f these prvisins prvides LAWA with the flexibility it needs fr lng-term planning. Alternatives t the Prpsed Agreement Accrding t the Department, there are limited alternatives t apprving the prpsed Agreement as fllws: Elect nt t award the agreement as prpsed. T d s wuld eliminate selected FlyAway bus service t LAX and delay the establishment f a new Lng Beach rute; as a cnsequence, the Department wuld nt be in cmpliance with its cmmitment t establish eight FlyAway bus sites by December 30, 2015, which culd, in turn, result in passengers electing t use airprts ther than LAX. Cmpliance with City Administrative Requirements The Department s Charter Sectin 1022 determinatin cncluded that these services can be mre feasibly and ecnmically perfrmed by an independent cntractr because the City des nt have the expertise r buses t prvide the services, Accrding t the Department, there is n bjectin t this cntract by the affected labr unins. City Cuncil apprval f the prpsed Agreement is required in accrdance with Charter Sectin 373 in that the Agreement, in the event that either f the tw ne-year extensin ptins is exercised, will exceed three years. The prpsed Agreement is als subject t apprval by the City Attrney as t frm. With respect t CEQA (Califrnia Envirnmental Quality Act) cmpliance, pursuant t Article III, Class 1(18)(c) f the Ls Angeles City CEQA Guidelines, the prpsed cntract is exempt in that it invlves n expansin f use and/r alteratin r mdificatin f the facilities r its peratins beynd that which was previusly existing r permitted. In accrdance with the prpsed agreement, MV Transprtatin is required t cmply with the fllwing standard City cntracting prvisins: Living Wage/Service Cntractr Wrker Retentin Ordinances, the Affirmative Actin Prgram, Child Supprt Obligatins Ordinance, the Department s insurance requirements, the Cntractr Respnsibility Prgram, the First Surce Hiring Prgram fr all nn-trade LAX Airprt jbs, and the Bidder Cntributins (CEC) City Ethics Cmmissin Frm 55 pertaining t the City's cntract bidder campaign cntributin and fundraising restrictins. In additin, staff frm the Department f Public Wrks, Office f Cntract Cmpliance, must determine that MV Transprtatin is in full cmpliance with the prvisins f the Equal Benefits Ordinance prir t executin f the agreement.

6 CAO File N With respect t the Small Business Enterprise {SBE) gals, while the Department established a 10 percent mandatry SBE gal, MV Transprtatin cmmitted t a percent participatin level. RECOMMENDATIONS That the Mayr: 1 2. Apprve the prpsed Agreement between the Ls Angeles Wrld Airprts and MV Transprtatin, Inc. t perate FlyAway bus service between LAX and Hllywd, Westwd, Santa Mnica, and Lng Beach fr an initial three-year perid with tw ne-year extensin ptins (ttal f five years)fra nt-t-exceed cst f $11.5 millin ver the initial three-year term; subject t City Attrney apprval as t frm and cmpliance with the City s Standard Prvisins fr Cntracts including the Living Wage/Service Cntractr Wrker Retentin Ordinances; Affirmative Actin Prgram; Child Supprt Obligatins Ordinance; Cntractr Respnsibility Prgram; First Surce Hiring Prgram fr all nn-trade LAX Airprt jbs; insurance requirements; the prvisins f the City Ethics Cmmissin Frm 55 pertaining t the City s cntract bidder campaign cntributin and fundraising restrictins; and prvisins f the Equal Benefits Ordinance; and Return the prpsed Agreement t the Department fr further prcessing, including Cuncil cnsideratin. FISCAL IMPACT STATEMENT Apprval f the prpsed Agreement with MV Transprtatin, Inc. will cst the Department a nt-texceed $11.5 millin ver the initial three-year term and apprximately $3.7 millin in the first year if all fur prpsed FlyAway rutes-hllywd, Westwd, Santa Mnica, and Lng Beach-are in peratin. While the estimated cst is apprximately 10 percent higher than the budgeted amunt, the additinal cst (1) will be cvered frm the Landside Business Management Cntractual Services Budget and (2) is expected t result in an imprved level f service t FlyAway bus riders. Partial (apprximately 50 percent) recvery f the expenditures will be btained frm aernautical rates and charges with the balance being paid frm LAWA s nn-aernautical revenues (e.g., the Landside Business Management Cntractual Services Budget). Funding is available in the Fiscal Year LAWA Operating Budget in the fllwing LAX Cst Centers: LND La Brea FlyAway, LND Westwd FlyAway, LND Santa Mnica Flyway, and LND Trrance FlyAway. Future years funding will be requested as part f the LAWA annual budget prcess. Apprval f the prpsed Agreement will have n impact n the City s General Fund. This prject cmplies with the Department f Airprts' adpted Financial Plicies, Time Limit fr Cuncil Actin Pursuant t Charter Sectin 373, Lng Term Cntracts Apprved by Cuncil, and the Ls Angeles

7 CAO File N Administrative Cde Sectin 10.5, 'limitatin and Pwer t Make Cntracts, unless the Cuncil takes actin disapprving a cntract that is lnger than three years within 60 days after submissin t Cuncil, the cntract shall be deemed apprved. MAS:WDC.1G160026