SUBJECT:
title
Approval of a resolution authorizing the interim President & CEO, or their designee, to finalize and execute a contract modification with BMR Janitorial, for bus fueling and washing services, for the remainder of a base year and two (2) option years increasing the not to exceed contract amount from not to exceed $3,557,818 to $5,197,680.
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FISCAL IMPACT:
Funding for this action is available in the FY2023 Operating Budget
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☒ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: CapMetro is a supporter of small businesses operating within our community, including the reasonable increase in cost on this contract related to a collective bargaining agreement with employees.
BUSINESS CASE: The cost increase results from a negotiated labor agreement between the contractor and their workforce. This increase is critical to retaining a quality workforce which is necessary to keep vehicles fueled and washed, ready to serve our customers.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on October 24, 2022.
EXECUTIVE SUMMARY: CapMetro employs an independent contractor, BMR Janitorial, to fuel and wash buses at the North Operations Facility. In August 2022, the workforce for the contractor voted to organize. The contractor entered into negotiations with Amalgamated Transit Union Local 1091 (ATU), reached an agreement and ratified a Collective Bargaining Agreement (CBA). The new CBA closely aligns with the CBA between the ATU and MV Transit who employs fuelers and washers to perform the same duties at CapMetro’s South Operations Facility. The new CBA includes an increase in wages by 23-27% and adds employee benefits such as vacation, sick pay, 401k contribution, health insurance, and uniforms. A table showing the change in contract cost is presented below:
|
Contract Term |
Original Cost |
Increase |
New Cost |
|
Base Year |
$1,185,939.23 |
$234,059.05 |
$1,419,998.28 |
|
Option Year 1 |
$1,185,939.23 |
$684,562.87 |
$1,870,502.10 |
|
Option Year 2 |
$1,185,939.23 |
$721,240.76 |
$1,907,179.99 |
|
Totals |
$3,557,817.69 |
$1,639,862.68 |
$5,197,680.37 |
Note: All amounts shown are not-to-exceed amounts as certain employer health insurance costs will be reimbursed as a pure pass through and that amount will vary depending on the health plans selected by employees; other items will similarly be reimbursed as a pass through such as 401k contribution, contractually required bonuses, uniform costs, payroll taxes, and so on.
DBE/SBE PARTICIPATION: The contractor is a certified DBE.
PROCUREMENT: In 2021, Cap Metro modified contract No. 200441 Contracted Bus Operations & Maintenance Services. This modification resulted in conducting an emergency procurement for Daily Servicing of Revenue Vehicles. In January 2022, the Board of Directors approved award of a contract to BMR Janitorial & Pressure Washing Services, LLC for these services. The contract consisted of a 1-year base term for the services with two (2) 1-year renewal options.
RESPONSIBLE DEPARTMENT: Bus Operations and Maintenance
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RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-621
WHEREAS, Capital Metropolitan Transportation Authority Board of Directors and CapMetro management recognize the need to employ contractors to fuel and wash buses, and
WHEREAS, Capital Metropolitan Transportation Authority Board of Directors and CapMetro management support small businesses.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the Interim President & CEO, or their designee, is authorized to finalize and execute a contract modification with BMR Janitorial, for bus fueling and washing services, for the remainder of a base year and two (2) option years increasing the not-to-exceed contract amount from $3,557,818 to $5,197,680.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool