Los Angeles World Airports

Transcription

1 Los Angeles World Airports im RESOLUTION NO BE IT RESOLVED that the Board of Airport Commissioners approved award of a three (3)year Agreement to MV Transportation, Inc., with two (2) one (1)-year extension options, for the operation of Hollywood and Westwood FlyAway bus service and potential to also operate Santa Monica and Long Beach FlyAway service for a cost not to exceed $11.5 million over the initial term, as referenced in the Board-adopted staff report attached hereto and made part hereof; and LAX LA/Oniario Van Nnys BE IT FURTHER RESOLVED that the Board of Airport Commissioners authorized the Executive Director to execute said Agreement upon approval as to form by the City Attorney and upon approval by the Los Angeles City Council; and City of Los Angeles Eric Garcetti Mayor Board of Airport Commissioners Sean G. Burton President Valeria C, Velasco Vice President Jeffery J. Dear Gabriel L Eshaghian Beatrice 0. Hsu Nolan V. Rollins Dr. Cynthia A. Teiies Deborah Flint Executive Director BE IT FURTHER RESOLVED that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City s interests; and BE IT FURTHER RESOLVED that MV Transportation, Inc., is responsive and responsible, that entering into said Agreement is in the best interest of the City, and waive any informality in the proposal; and BE IT FURTHER RESOLVED that the issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting use of existing airport facilities or its operations is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III Class 1(18)(c) of the Los Angeles City CEQA Guidelines; and BE IT FURTHER RESOLVED that actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373. ooo I hereby certify that this Resolution No is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Thursday, November 5, Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS l ; V;; fl 1 World Way Los Angeles California Mail RO. Box Los Angeles California Telephone Internet

2 H' 3 f. ' ' X L-i* Los Angeles World Airports IfetCyftni^ M i ) re i? REPORT TO THE V* *3 I ), BOARD/OF AIRPORT COMMISSIONERS Meeting Date: Tt fjiilfcj. KifS t&t J'- K J, \ /gjqarvh^ Approved ^y^ Marisa Katmch^Directo Business 11/5/2015 Management Reviewed by: ^ J / Jjj baik Ha * Debbie Bowers, Deputy Executive Director J y AttorneV v Deborah Flitw- Executive Director CAP Review: Completed Pending N/A Reviewed for Date Approval Status By Capital Budget Operating Budget CEQA Procurement Guest Experience 9/25/2015 BY N NA Idiots ^YD 9/28/2015 k NONA BY ON BY ON Corn) 9/28/2015 BY ON DS eu) MV MT BY SUBJECT: Agreement for Operation of FlyAway Bus Service Award a three-year agreement, with two one-year extension options, to MV Transportation, Inc., for the operation of Hollywood and Westwood FlyAway bus service and potential to also operate Santa Monica and Long Beach FlyAway service, fora total contract cost not to exceed $11.5 million over the initial three-year term. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. FIND that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City s interests. FIND that MV Transportation, Inc., is responsive and responsible, that entering into this agreement is in the best interest of the City, and waive any informality in the proposal. Page 1 FlyAway

3 5. APPROVE the award of a three-year agreement, with two one-year extension options, to MV Transportation, Inc., for the operation of Hollywood and Westwood FlyAway scheduled bus service, and potential to also operate Santa Monica and Long Beach FlyAway service, for a total contract cost not to exceed $11.5 million over the initial three-year term. 6. AUTHORIZE the Executive Director to execute the agreement after approval as to form by the City Attorney and approval by the Los Angeles City Council. DISCUSSION: 1. Purpose Provide continued FlyAway service between Los Angeles International Airport (LAX) and Hollywood, Westwood and Santa Monica, and initiate new FlyAway service to Long Beach to fulfill Los Angeles World Airports obligation to establish eight FlyAway sites by December Prior Related Actions September 17, Board Resolution No The Board of Airport Commissioners (Board) awarded an agreement to Corinthian International Parking Service, Inc. (Corinthian) to operate Westwood and Expo/La Brea FlyAway bus service. Subsequently, on June 16, 2014 under Board Resolution 25452, the Board approved the first amendment to the agreement to Corinthian International Parking Service, Inc. to operate Hollywood and Santa Monica FlyAway bus service. The agreement with Corinthian expired on October 3, Following expiration, Los Angeles World Airports (LAWA) authorized the operator of the Van Nuys and Union Station Flyaway services to provide interim Flyaway services on the Hollywood, Westwood, Santa Monica and Long Beach routes pursuant to its agreement. 3. Current Action On October 1, 2015, staff provided the Board with an overview of the FlyAway program and a status of the proposed Long Beach FlyAway service. This current action would provide the contracting mechanism for continued operation of FlyAway service between LAX and three locations (Hollywood, Westwood and Santa Monica) and establish new Long Beach service. Through the procurement process described below, MV Transportation, Inc. (MV), was designated as the successful proposer to operate Hollywood and Westwood FlyAway service, with an option, exercisable by LAWA, to operate Santa Monica and Long Beach FlyAway service. MV has been providing ground transportation services in the Los Angeles area for over 15 years, including currently serving as the largest service provider for Los Angeles Department of Transportation. Terms of Agreement Under the Agreement, MV, will be responsible for providing scheduled FlyAway service, deploying a new bus fleet equipped with technology to provide passengers with real time bus arrival information, selling tickets, establishing and providing revenue control procedures, and staffing the operation. MV will remit all revenue from the sale of tickets and passes to LAWA. LAWA will pay MV a fixed monthly management fee, a fee per each Page 2

4 completed trip less penalties for service shortfalls, and approved costs for transaction processing. The Agreement and the optional services (i.e. Santa Monica and Long Beach FlyAway) may each be terminated by LAWA with 60 days notice. Should LAWA terminate the Agreement in its entirety without cause within the first two years of the term, MV would receive a termination payment calculated on the depreciated value of buses subject to a cap of $300,000. No termination payment is due if LAWA cancels the Santa Monica and/or Long Beach FlyAway services. This gives LAWA the opportunity to evaluate alternative models beyond traditional service agreements. Procurement Process On August 17, 2015, two proposers submitted proposals in response to the Request for Proposals for Operation of Hollywood and Westwood FlyAway Bus Service (RFP). The fourmember evaluation committee consisted of the following LAWA staff: Deputy Executive Director Executive Assistant Airport Senior Transportation Engineer Chief Management Analyst The Evaluation Criteria, published in the RFP and shown below were used to rank the proposals. Evaluation Criteria Criteria Weight Qualifications, Experience & Financial Capability 15 Fleet Plan 15 Management, Operations, and Customer Service Plan 30 Revenue Control and Audit Plan 15 Proposed Cost of Services 25 Total Points 100 The evaluation panel scored and ranked the proposals based on all Evaluation Criteria categories as shown in the table below. Proposer Rank MV Transportation, Inc. 1 Pacific Coast Sightseeing Tours and Charters, Inc. 2 Action Requested Staff requests the Board to award a three-year agreement, with two one-year extension options, to MV for the operation of Hollywood and Westwood FlyAway service with the option to also operate Santa Monica and Long Beach FlyAway service for a total contract cost not to exceed $11.5 million over the initial three-year term. Page 3

5 Fiscal Impact If approved, the cost for the first year is $3.7 million and approximately $11.5 million after over the three-year term. Although the annual cost is approximately 10% higher than the current budgeted amount for the four sites, the selected proposer s costs are 57% less than the competitor s proposal. Staff prepared the budget prior to proposals being received based on the prior contract with slight increases anticipated. However, through the competitive process, discovered that the expenses were much higher than the previous contractor s cost of services, which staff believes contributed to the poor service levels. The increase in cost is anticipated to yield a better level of service to passengers. Service on these Flyaway routes is currently being provided on an interim basis by the operator of the Van Nuys and Union Station service provider at a cost that is $230,000 per month higher than the costs that would result from the award of this Agreement. 4. Alternatives Considered Take No Action Not awarding the proposed Agreement would result in eliminating FlyAway services to these locations and risk delaying the commencement of the Long Beach site beyond the December 2015 deadline. APPROPRIATIONS: Funding for this contract is available in the Fiscal Year LAWA Operating Budget in LAX Cost Center LND La Brea FlyAway, Cost Center LND Westwood FlyAway, Cost Center LND Santa Monica FlyAway and Cost Center LND Torrance FlyAway, and funds required to offset the increase in contract costs are available due to savings in additional Landside Business Management Contractual Services budget locations. Funds for subsequent years will be requested as part of the annual budget process. STANDARD PROVISIONS: The issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting use of existing airport facilities or its operations is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. This item is subject to approval as to form by the City Attorney. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373. MV Transportation, Inc. will comply with the provisions of the Living Wage / Service Contractor Worker Retention Ordinances. Procurement Services has reviewed this action (File No. 7313) and established a 10% mandatory Small Business Enterprise (SBE) goal was set for this project. MV Transportation, Inc. committed to 10.44% SBE participation. Page 4

6 6. MV Transportation, Inc. will comply with the provisions of the Affirmative Action Program. 7. MV Transportation, Inc. has been assigned Business Tax Registration Certificate number MV Transportation, Inc. will comply with the provisions of the Child Support Obligations Ordinance. 9. MV Transportation, Inc. will have approved insurance documents, in the terms and amounts required, on file with Los Angeles World Airports prior to issuance of a Notice to Proceed. 10. Pursuant to the provisions of Charter Section 1022, staff has determined that the work specified in the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees. 11. MV Transportation, Inc. has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12, MV Transportation, Inc. must be determined by Public Works, Office of Contract Compliance to be in full compliance with the provisions of the Equal Benefits Ordinance prior to contract execution. 13. MV Transportation, Inc. will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. MV Transportation, Inc. has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. pqqq