To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Amendment No. 2 - Transdev Services, Inc.
End
Recommended Action:
Recommended action
Authorize the Director of Public Infrastructure to exercise the extension option and execute Amendment No. 2 with Transdev Services, Inc., to operate Sonoma County Transit under the existing Transit Services Agreement, from July 1, 2024 through June 30, 2026.
end
Executive Summary:
The Department of Public Infrastructure (SPI), Transit Division, is requesting authorization to exercise the extension option and to execute Amendment No. 2 with Transdev Services, Inc., to operate Sonoma County Transit under the existing Transit Services Agreement, from July 1, 2024 through June 30, 2026. This action recommends approval of Amendment No. 2 for the final two option years, FY 2024-25 and FY 2025-26.
Discussion:
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.
In May 2016, following competitive procurement process, the Board awarded a five-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.
On May 11, 2021, the Board approved Amendment No. 1 which exercised three of the five option years.
This recommended Amendment No. 2 exercises the County’s final two option years and allows Transdev Services, Inc. to continue to operate Sonoma County Transit between July 1, 2024 and June 30, 2026. The proposed amendment includes Transdev’s in-service hourly rate and monthly fixed rate through the two-year period. Extension pricing for the option years, per the 2016 agreement, is based on the application of the Consumer Price Index (CPI) - All Urban Consumers for the San Francisco - Oakland - Hayward areas as to April 1 of that year to the rate in place for the immediately preceding option year. The annual CPI index rate is capped at 4.5%. Amendment number 2 allows the minimum annual rate to be 3.5%.
As the County’s transit operator, Transdev has performed well since the existing contract was awarded in 2016. 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 90% of its pre-COVID levels. For FY 2024-25, Transit has budgeted for approximately 95% of the available in-service hours allowed in the original agreement.
Systemwide, ridership continues to rebound and is approximately 78% of its pre-COVID levels. Over the past year, ridership has continued to increase, particularly youth ridership. Implementation of the fare-free youth program, supported by the County’s Climate Resilience fund, has attributed largely to the ridership increase. It is expected that pre-pandemic levels of ridership will return in FY 2026-27.
The recommended action exercises the final two option years established in the 2016 Sonoma County/Transdev agreement. Staff will issue a new Request for Proposals in early 2025 for the next operating period beginning July 1, 2026.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
05/11/21 - Approve and authorize Chair to execute Amendment Number 1 with Transdev Services, Inc. to operate Sonoma County Transit for a three-year period beginning July 1, 2021.
05/17/16 - Approve and authorize Chair to execute a Five-Year Agreement with Transdev to Operate Sonoma County Transit effective July 1, 2016 through June 30, 2021.
06/06/14 - Board approved Amendment No. 2 with Veolia Transportation Services Inc., to operate Sonoma County Transit from July 2014 through 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 through 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 through June 30, 2011.
Fiscal Summary
|
Expenditures |
FY23-24 Adopted |
FY24-25 Projected |
FY25-26 Projected (4% Increase) |
|
Budgeted Expenses |
|
11,974,582 |
12,453,565 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
11,974,582 |
12,453,565 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
1,280,000 |
1,331,200 |
|
Fees/Other |
|
10,694,582 |
11,122,365 |
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
|
11,974,582 |
12,453,565 |
Narrative Explanation of Fiscal Impacts:
The projected cost for is FY 24-25 is $11,974,582. Funding and expenditures for this agreement will be included in the SPI Transit Division Recommended Budget for FY24-25 and FY25-26. Annual expenditures will be consistent with Sonoma County Transit’s annual TDA/STA funding claim with the Metropolitan Transportation Commission.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Amendment No 2
Amendment No 1
Sonoma County/Transdev Agreement - July 1, 2016 through June 30, 2021
Related Items “On File” with the Clerk of the Board:
None.