To: Board of Supervisors
Department or Agency Name(s): Transportation and Public Works
Staff Name and Phone Number: Johannes J. Hoevertsz 707-565-2231
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Transit System Operator Contract Amendment No. 1 - Transdev Services Inc.
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Recommended Action:
Recommended action
Approve and authorize the Chair to execute Amendment No. 1 with Transdev Services, Inc., to extend Transdev’s operation of Sonoma County Transit from July 1, 2021 through June 30, 2024.
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Executive Summary:
Since its inception in July 1980, Sonoma County has contracted out the daily operation of its transit system to private management firms. In its history, three firms have performed these duties: DAVE Systems (July 1980 - September 1985), Laidlaw Transit (October 1985 - December 1988), and Transdev and its predecessor companies (Veolia and ATC/Vancom) have operated Sonoma County Transit since January 1989.
The services were last procured in 2016 and resulted in the existing agreement with Transdev Services Inc., to operate Sonoma County Transit through June 30, 2021. This action implements the first three of five one-year extensions, made available in the RFP and the existing agreement.
Under the Amendment, annual rates shall be established per the Consumer Price Index (CPI) rate as set forth in the existing agreement. The annual CPI index rate is capped at 4.5%. Projected cost for FY 2021-22 is $9,514,777.
Discussion:
In May 2016, following a competitive procurement process, the Board awarded a multi-year agreement to Transdev Services Inc., to operate Sonoma County Transit from July 1, 2016 through June 30, 2021. The agreement provides up to five 1-year extensions through FY 2025-26.
The recommended Amendment No. 1 exercises the County’s option to extend the County’s existing agreement with Transdev Services, Inc. for three years, beginning July 1, 2021. The Amendment establishes Transdev’s in-service hourly rate and monthly fixed rates through the three-year period. Extension pricing for the option years, per the existing agreement, is based on the rate in place for the immediately preceding year, adjusted based on the Consumer Price Index (CPI) - All Urban Consumers for the San Francisco - Oakland - Hayward areas as to April 1 of that year.
As the existing transit operator, Transdev has performed well, and the County has been satisfied with its service. In addition to regular service, Transdev also provided evacuation resources during fire, flood, and unhoused emergencies at the request of the Emergency Operations Center. Despite the slowdown associated with COVID-19, the full amount of service hours provided in the original agreement (124,200) remains in the proposed amendment. The system is currently operating at approximately 70% of its pre-COVID levels (84,000 in-service hours). For fiscal-year 21/22, based on anticipated funding and ridership demand, costing for the agreement is based on approximately 85% of Sonoma County Transit’s pre-COVID level of service.
System wide ridership is approximately 40% of its pre-COVID levels. While ridership is increasing, it’s anticipated that the level of ridership will continue to increase during FY 21/22 but will not reach pre-COVID levels. Sonoma County Transit’s ridership is heavily influenced on college student travel, whose return to pre-COVID levels is not expected until FY 22/23.
Since early 2020, Sonoma County Transit has received federal assistance during COVID-19 that has helped make up revenue losses in passenger fares and other funding types. To date, approximately $5.7M has been received in CARES Act funds and in FY 21/22, approximately $2.6M is anticipated through CCRSSA funding. Although undetermined at this time, the recently enacted ARRA will provide federal operating assistance through FY 22/23.
The additional federal funds have enabled Sonoma County Transit to remain sustainable and will continue to be so during the term of the proposed amendment.
The recommended action exercises three of five potential option years under the agreement; . A recommendation for option years 2024-25 and 2015-26 will be brought back to the Board for consideration in early 2024.
Prior Board Actions:
05/17/16 - Approve and authorize Chair to execute a Five-Year Agreement with Transdev to Operate Sonoma County Transit effective July 1, 2016 thru June 30, 2021.
06/06/14 - Board approved Amendment No. 2 with Veolia Transportation Services Inc., to operate Sonoma County Transit from July 2014 thru June 30, 2016.
05/17/11 - Board approved Amendment No. 1 with Veolia Transportation Services Inc., to operate Sonoma County Transit from July 1, 2011 thru June 30, 2014.
06/06/06 - Board approved five-year agreement with Veolia Transportation Services Inc., to operate Sonoma County Transit effective July 1, 2006 thru June 30, 2011.
Fiscal Summary
|
Expenditures |
FY 20-21 Adopted |
FY21-22 Projected |
FY 22-23 Projected |
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Budgeted Expenses |
|
9,514,777 |
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Additional Appropriation Requested |
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Total Expenditures |
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9,514,777 |
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Funding Sources |
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General Fund/WA GF |
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|
|
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State/Federal |
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7,496,207 |
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Fees/Other |
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7,496,207 |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
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9,514,777 |
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Narrative Explanation of Fiscal Impacts:
Funding for the FY 2021-22 agreement was included in the recommended FY 2021-22 Transit Division Recommended Budget and is consistent with Sonoma County Transit’s FY 2021-22 annual TDA/STA funding claim with the Metropolitan Transportation Commission.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
None
Related Items “On File” with the Clerk of the Board:
Amendment 1
Sonoma County/Transdev Transit Services Agreement