TO: Mayor and Commissioners
FROM: Caryn Gardner-Young, Assistant City Manager
THROUGH: Mark R. Lauzier, City Manager
DATE: March 6, 2018
...Title
APPROVAL OF A ONE-YEAR AGREEMENT WITH FIRST TRANSIT, INC. TO PROVIDE TROLLEY OPERATION SERVICES IN A TOTAL AGREEMENT VALUE NOT-TO-EXCEED $365,000
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Recommended Action:
Recommendation
Motion to approve a one-year Agreement with First Transit, Inc. to provide trolley operation services in a total Agreement value not-to-exceed $365,000.
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Background:
This Bid Waiver Agreement will replace the previous agreement that the City of Delray Beach (City) had with Unique Transportation & Tours (Unique) to run the City’s trolley routes. The trolley is offered as a free service to the constituents and visitors of Delray Beach to enhance their experience within our City. Under this agreement, the contractor provides trolley operation services including management oversight and insurance for the City-owned trolleys and First Transit’s drivers. These services are included for $45 per hour. Hours are charged based on the number of hours worked by First Transit’s drivers.
Currently, the City operates two trolley routes every day. Both routes provide roundtrip service along Atlantic Avenue from the Tri-Rail Station to Ocean Blvd/SR A1A. Route One provides service Monday through Friday from 6:00am to 7:00pm, and on Saturday and Sunday from 8:00am to 6:00pm. Route Two provides service Monday through Friday from 6:45am to 11:15pm, and on Saturday and Sunday from 12:00pm to 11:00pm.
At the start of 2018, the Purchasing and Public Works Departments started working toward obtaining a new contractor to operate the City’s trolley routes since the agreement with Unique was set to expire in June 2018. However, Unique’s agreement was terminated early, on January 29, 2018, due to their inability to renew their insurance. Staff entered into a temporary agreement with First Transit, approved by the City Manager, to keep the trolley services operational. Now, City staff recommends approval of a bid waiver to enter into a longer agreement with First Transit for trolley operation services while the City works toward a permanent solution for transportation services. Staff requests approval of a total agreement value not-to-exceed $365,000 throughout the one-year agreement. The trolley schedules will be adjusted down from approximately 190 to 155 total hours per week to account for the increased hourly cost. With these schedule adjustments, the weekly cost of these services will remain approximately the same as the City’s prior agreement at $6,930 per week. An additional contingency of $4,640 is requested to allow for the City to rent a spare trolley on occasion, if necessary. The revised trolley schedules are below:
Route One:
Monday - Friday: 6:00am to 2:00pm
Saturday & Sunday: 8:00am to 2:00pm
Route Two:
Monday - Friday: 7:00am to 11:00pm
Saturday & Sunday: 12:00pm to 11:00pm
Below is a comparison of the previous agreement value to the value of this proposed agreement:
Item Description Unique First Transit
1. Hourly rate for drivers
(per trolley) $36.00/hour $45.00/hour
2. Overtime hourly rate for drivers $42.00/hour No extra charge
3. Trolley rental $85.00/hour $60/hour
excluding driver including driver
4. Exterior washing
(weekly, per trolley) $65.00/wash To be completed by City
5. Detailed cleaning
(every 6 months or as needed,
per trolley) $120.00/cleaning To be completed by City
Staff also negotiated the rate from $60 to $45 per hour. In analyzing the hourly rate of $45, staff found the rate to be competitive.
The City has seen a higher level of service since bringing First Transit aboard. They have a high quality of customer service with a strong willingness to work with the City. First Transit has shown keen attention to detail and understanding of the importance for the City to provide trolley services in a timely, professional, and friendly manner.
In addition to the higher level of service, First Transit:
• Emphasizes safety to help reduce the City’s repair costs for the trolleys
• Pays drivers above the Palm Beach County living wage standard, which leads to better driver morale and increases customer service
• Focuses on community outreach to help increase rider activity
Should this agreement not be approved, the trolley services will be suspended by March 9, 2018 and should remain suspended until a new solicitation is advertised and awarded, which could amount to as much as six months.
This motion is in accordance with the Code of Ordinances Chapter 36, Commission Approval Required and Purchasing Policies, Accessing Contracts from Other Government Agencies and Not-for-Profit Organizations.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
Funding is available from account number 001-45-150-545.49-63 - Other Current Charges Tri Rail Trolley/Crime Prevention.