PURPOSE   

The purpose of this report is to request City Council approval of a fourth contract extension with Southland Transit to provide fixed route transit services.  The contract extension is will be on a month to month basis until the City enters into a new agreement. 

BACKGROUND

On May 14, 2002, a request for proposal was distributed to eleven transportation service vendors for the operation of the Burbank Local Transit Fixed Route Service.  Southland Transit was among three responsive and qualified bidders. Southland Transit received the highest technical score for the Fixed Route services though this competitive bid process.  The City entered into a two year agreement with Southland Transit on July 24, 2002. 

On July 30, 2004 City Council approved a first amendment to extend to terms of the agreement until August 31, 2005.  In 2005, both parties agreed on a second amendment to extend the terms for an additional one year.  On August 15, 2006, City Council approved a third amendment, once again extending the term of the agreement for an additional year.  The current agreement expires on August 31, 2007

ANALYSIS

Since 2002, Southland Transit has performed the necessary services under the existing agreement.   The agreement has been extended three times 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, 2007.  Staff has been preparing the Request for Proposal for the operation of the Burbank Local Transit Fixed Route Service, however due to the recent resignation of the Transportation Services Manager, this process was delayed.  Staff anticipates distributing the Request for Proposal by September 1, 2007.

Staff believes it will be best to extend the current agreement on a month to month basis to allow for sufficient time to go out to bid and evaluate the proposals. 

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 3% from May 2006 to May 2007. Staff has negotiated a 2.9% increase over the current rate.  The new rate for Southland Transit will be $50.56 when the contractor supplies its own vehicles and $33.50 when City vehicles are utilized.  This proposed rate increases is consistent with the language of the original agreement.

FISCAL IMPACT

The shuttle operations contracts are paid out of Proposition C transportation funds.  These funds are available in the approved Fiscal Year 2007-08 Budget, and therefore there will be no fiscal impact. 

RECOMMENDATION

Staff recommends that City Council approve a contract extension with Southland Transit on a month to month basis until the City enters into a new Shuttle Service Agreement.

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