SUBJECT:
title
Approval of a resolution authorizing the Interim President & CEO, or their designee, to finalize and execute a contract modification with MTM, Inc. (formerly Ride Right, LLC) for operation of the North Demand Response Operation. This resolution is an increase to the total contract amount by $54,984,671 for a total not to exceed amount of $133,658,177.
end
FISCAL IMPACT:
Funding for this action is available in the FY2023 Operating Budget and planned for future operating budgets.
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: The strategy of this modification is to 1) align the North Base and South Base Demand Response contract time periods to allow for a new combined contract to begin FY 2025, 2) to address the current vehicle operator retention and recruitment crisis to ensure ADA paratransit service coverage that is required by ADA law, and 3) to position for the planned June 2023 Pickup service change.
BUSINESS CASE: Adjustment to the current North Base contract is necessary to address the operator retention and recruitment crisis by providing local market wage and benefits for the goal of 1) ensuring ADA compliance, and 2) positioning for the planned June 2023 service change that includes two potential fixed-route replacements with Pickup service. The 2-year option period aligns North Base and South Base contract terms to allow for a combined FY 2025 contract to leverage resources.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Operations, Planning and Safety Committee on August 15, 2022.
EXECUTIVE SUMMARY:
Background
MTM, Inc. (MTM) was awarded Contract #132939 to provide North Base Demand Response services via a competitive procurement process with Board resolution CMTA-2014-5. The North Base contractor provides vehicle operators, window dispatch, maintenance, administrative staff, and management with contractor-owned vehicles, facility, fuel storage, and other capital investments. Service began May 1, 2014 with 47 minivans, and has grown to a 121 vehicle fleet operation (75 minivans and 46 Pickup cutaway light vehicles). The base contract is due to expire September 30, 2022.
Major Aims
The major goals of this modification are to 1) align the North Base and South Base Demand Response contract terms so that they expire at the same time, allowing for a competitive procurement process that will replace both contracts with a new single contract that combines both North and South Bases (estimated to begin FY 2025); and 2) to provide competitive local market wages and benefits that will help to retain and recruit operator/staff resources.
MTM is experiencing a vehicle operator retention and recruitment crisis with a shortfall of 75 operators (65 full-time and 10 part-time) across North and South Base combined. In the most recent months (March to July 2022), they have lost 18% of operator staff while weekday ridership has increased 31% as compared to the same period in 2021.
The ADA law and FTA regulations require public transit agencies ensure minimum service requirements to include no denial of trip requests for ADA paratransit eligible customers, and to operate without capacity constraint (e.g. untimely pickups, missed trips).
The proposed modification pricing is based on MTM and ATU wage and benefit negotiations (pending). Proposed pricing for this modification aims to 1) align North Base and South Base wages and benefits, 2) recruit/ retain staff to meet ADA customer service demand and ADA law requirements, and 3) to position for expanded pickup service to meet growing demand-requiring additional operators to meet service hours, and to meet service requirements for later evenings and weekends.
Modification Detail
The modification includes the following:
• One 2-year option beyond the base contract (covering FY 2023 and FY 2024)
• Readiness for FY 2023 budgeted service levels and pickup span of service
• Alignment of ATU wage rates from start of $16.26 to local market wages
• Alignment of ATU Health and Welfare Benefits to CapMetro level
• Alignment of Paid Time Off, Retirement and Other Benefits to South Base
• Addition of 40-hour new hire training to better ensure quality and retention
• Addition of 2 Road Supervisors, 2 Trainers and 2 Dispatch to support ickup
• Addition of HR Coordinator and Payroll Specialist to meet staff needs
• 3% annual supply/parts/ service cost increase
• Uniforms to be provided by CapMetro
• Enhanced recruitment resources to fill significant operator deficit
• Salary increase to retain management staff during option years
• Lease and secure parking/facility space for current/expanded fleet
• Applied overhead and profit percent of fixed and variable
• MetroAccess minivan replacement and anticipated price increase
PROCUREMENT: On 8/7/2013 a Request for Proposals (RFP) was issued and formally advertised. MTM (formerly Ride Right, LLC) was rated highest, all factors considered.
The contract has grown in size from a 47-vehicle operation to a 121 vehicle operation. Significant modifications to the contract include:
• 2018 - $34.8 million coverage of MetroAccess Overflow and lease of new facility (approved by the Board of Directors)
• 2019 - $4.6 million living wage adjustment to $15.00
• 2021 - $7.1 million provision of expanded pickup services
Board of Directors approval is requested to fund a one (2) year renewal option of $54,984,671. The $55 million 2-year option period is an approximate $20.5 million increase over FY22 current contract pricing. Major components of the pricing change from FY22 current pricing include*:
• ATU Wage Progression $6.9 million
• ATU Health & Welfare $6.1
• ATU PTO, Retirement, Other Benefits $3.6
• Overhead $1.9
• Hours Change $0.8
• Other labor/ non-labor $0.7
• Expanded Facility Parking Lease $0.4
*Excludes one-time parking expansion expense and vehicle lease
Request for Approval Contract Amount
|
Previous Total Contract Amount |
$ 78,673,506 |
|
Revised Option Periods (2 yrs.) |
$ 54,984,671 |
|
New Grand Total |
$133,658,177 |
DBE/SBE PARTICIPATION: Due to the nature of this solicitation no DBE goal was established, however the contractor has committed to using the following DBE vendor:
|
DBE |
SERVICE/PRODUCT |
% |
|
BMR Janitorial & Pressure Washing |
Cleaning Services |
1.75% |
RESPONSIBLE DEPARTMENT: Demand Response and Innovative Mobility
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-509
WHEREAS, the Capital Metropolitan Transportation Authority Board Directors and Capital Metro management endeavor to provide the highest quality Demand Response operation to the community; and
WHEREAS, the Capital Metropolitan Transportation Authority Board Directors and Capital Metro management recognize the need to provide local market wage and competitive benefits to ensure vehicle operator staffing, to meet ADA service standard compliance, to position for planned service, and to align North Base and South Base contract time periods.
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 MTM, Inc. for operation of the North Base Demand Response service, and increase the contract value by $54,984,671 for a total not to exceed amount of $133,658,177.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool