PURPOSE   

The purpose of this report is to request City Council approval of a third contract extension with Southland Transit to provide fixed route transit services.  The contract extension is for a period of twelve (12) months, beginning September 1, 2006 through August 31, 2007. 

BACKGROUND

On May 14, 2002, a request for proposal was distributed to approximately eleven (11) transportation service vendors for the operation of the Burbank Local Transit Fixed Route Service.  Southland Transit was among three responsive and qualified bidders for the Burbank Local Transit Fixed Route Service Area. Southland Transit received the highest technical score for the Fixed Route services though a competitive bid process. 

In June 2004, City Council directed staff to create a Transit Services Task Force to assess and make recommendations to the existing transit services, to better serve residents and reduce congestion in Burbank.  The Task Force has met numerous times over the past year.  On January 25, 2005, a plan for expansion of the BurbankBus commuter service was developed and presented to City Council.  City Council approved the recommendations set forth by the Transit Services Task Force, and the initial implementation of the expansion plan was completed by November 1, 2005.  Part of the plan called for eliminating the existing Super Shuttle contract, which provided service to passengers into two major employment areas of Burbank, Downtown and Airport Area.  In its place, a fixed route service was developed.  The new service was designed to utilize the existing contractor, Southland Transit for the new fixed route system.

ANALYSIS

Since July 2002, Southland Transit has performed well under the existing agreement.   This Southland Transit agreement has been extended twice due to the implementation of expanded services.  Southland Transit has also made a considerable investment in additional equipment in order to meet the transit needs of Burbank.   Southland Transit located and purchase four (4) CNG vehicles to utilize in providing our service. 

The current contract terminates on August 31, 2006.  Staff believes it would be best to extend the current agreement for an additional year instead of going out to bid.  First, given the upcoming termination date, it would be difficult for potential bidders to bid on the proposal as they would be asked to supply up to 7 vehicles until the 5 new CNG buses are delivered in 2007.  Second, although all routes have been implemented, adjustments are still being made.  It is very difficult to bid out a scope of service when routes and service times could be altered.  Finally, the City has acquired two Foothill Transit buses at no cost, that will be utilized to temporarily replace existing fleet vehicles to allow for their sanding and repainting, as per the Burbank Bus signature.  The contract will also be amended to have Southland Transit maintain the two Foothill Transit buses.  The maintenance rate will be $36 per hour, plus parts. 

Per the agreement, the contract may be extended for subsequent years with rate adjustments not to exceed the Los Angeles/Orange County Clerical Worker Consumer Price Index.  The current rate increase of the Los Angeles/Orange County Clerical Workers Consumer Price Index is approximately 4.3% from May 2005 to May 2006. Staff was successful in negotiating a 2.8% increase over the current rate.  The new rate for Southland Transit will be $49.12 when the contractor supplies its own vehicles and $32.55 when City vehicles are utilized.  This proposed rate increases is consistent with the language of the original agreement.

PROS

• Maintains services at current levels with no service disruption.

• Allows time to implement major service adjustments as directed by City Council.

• Allows time for full implementation of the new CNG fleet which is scheduled to arrive in January 2007.

• Allows time for a formal bid process to commence and conclude, allowing the City to procure the best possible service provider.

CONS

• Potentially other qualified bidders might provide service at a lower cost.

FISCAL IMPACT

The shuttle operations contracts are paid out of Proposition C transportation funds.  The combined contract extension will not exceed $1,200,000 over the proposed extension period. These funds are available in the approved Fiscal Year 06-07 Budget, and therefore there will be no fiscal impact. 

RECOMMENDATION

Staff recommends that City Council approve a contract extension with Southland Transit for a period of twelve (12) months, in order to fully implement Council�s direction to expand transit services.

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