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Home My WebLink About10B - Transit Services MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCIL AGENDA REPORT May 21, 2001 10-B Susan Walsh, Assistant City .Manager DISCUSSION OF OPTIONS RELATING TO PRIOR LAKE BUS SERVICE Historv: One of the City Council's objectives to the staff for 2001 is to prepare to assume responsibility for transit service in 2002. To assist the staff, the City Council appointed a Transit Subcommittee of Mayor Mader and Council member Zieska. On April 13, 2001, the City sent out thirty-five Request for Bids packets for the purpose of soliciting bids from transportation vendors to provide bus service for the City of Prior Lake effective January 1, 2002. The Request for Bids specified for two 1998 or newer over-the-road style motor coaches plus a backup to provide two morning and two afternoon bus routes between Prior Lake and downtown Minneapolis. On April 20, 2001 a pre-bid conference was held for the purpose of reviewing the City's expectations for the bus service and to answer any vendor questions. Three vendors attended this meeting as well as Council member Zieska, City Manager Boyles and myself. FOllowing this meeting, all the vendors received an addendum that addressed the questions asked at the pre-bid conference. Current Circumstances: On May 10, 2001 city staff held the bid opening. Only one bid was received. The submitted bid for the first year came in at $411,884 and the second year at $425,040. At the January 8, 2001 Council meeting, city staff projected the costs for two commuter bus routes to Minneapolis to cost $250,000 a year. As the Council is aware, the City is required to levy $379,950 each year for the purpose of funding the costs for providing transit services to residents. Conclusion: Since the single bid is significantly higher than the projected costs and is more than the City's transit levy, various options for providing transit services need to be explored. On May 16, 2001, the Transit Evaluation Committee (which includes Mayor Mader and Councilmember Zieska) will meet to review the one bid; but more importantly, discuss what the appropriate transit service should be for resident commuters in light of the high costs submitted by the one bidder. A summary of this meeting together with a recommendation will be included in the City Council's May 18th (Friday) packet. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 I:\COUNCIL\AGNRPTS\BUS BID REJECTDQN:EQUAL OPPORTUNITY EMPLOYER r" I FISCAL IMPACT: There is a negative impact if the bid is awarded "as is" since the bid is higher than the property taxes levied for transit services. ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: (1) Adopt a Resolution Rejecting Bid and Authorizing Advertisement of Bids for Prior Lake Bus Service. (2) Adopt a Resolution Accepting the Bid and Direct Staff and City Attorney to Negotiate Contract with the Vendor. (3) Take no action and direct that additional information be prepared. As the Council determines. I:\COUNCIL\AGNRPTS\BUS BID REJECT.DOC RESOLUTION 01- A RESOLUTION ACCEPTING BID AND AUTHORIZING CITY STAFF AND CITY ATTORNEY TO NEGOTIATE WITH BIDDER FOR PRIOR LAKE BUS SERVICE Motion By: Second By: WHEREAS, the City Council authorized the solicitation of bids for Prior Lake Bus Service; and WHEREAS, a public notice was published as required by Statute and the bid opening was conducted on May 10,2001, at 3:00 p.m.; and WHEREAS, after supplying thirty-five Request for Bids packets, only one bid was received; and WHEREAS, the City Council deems it appropriate to authorize city staff and city attorney to negotiate with the Bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The City Council hereby accepts the one bid received on May 10, 2001; and 2. The staff and the city attorney are authorized to negotiate a contract with the bidder to prepare a contract which is within appropriate cost parameters and acceptable to the city attorney. PASSED AND ADOPTED THIS 21st DAY OF MAY, 2001. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska City Manager, City of Prior Lake 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER I r IT RESOLUTION 01- RESOLUTION REJECTING BID AND AUTHORIZING SOLICITATION OF BIDS FOR PRIOR LAKE BUS SERVICE Motion By: Second By: WHEREAS, the City Council authorized the solicitation of bids for Prior Lake Bus Service; and WHEREAS, a public notice was published as required by Statute and the bid opening was conducted on May 10, 2001, at 3:00 p.m.; and WHEREAS, after supplying thirty-five Request for Bids packets, only one bid was received; and WHEREAS, the single bid exceeds the City's financial capacity to operate the bus service; and WHEREAS, the City Council deems it appropriate to explore other avenues for providing transit services to its residents. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The City Council hereby rejects the one bid received on May 10, 2001, and the City Manager is authorized to return the bid security; and 2. The staff is authorized to prepare revised specifications and solicit bids in accordance with State Statutes. PASSED AND ADOPTED THIS 21st DAY OF MAY, 2001. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska City Manager, City of Prior Lake 16200 Eagle Creek Ave. S,E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER DATE: May 17, 2001 TO: Mayor Mader Councilmembers Zieska, Ericson, Petersen, Gundlach FROM: Susan Walsh, Assistant City Manager RE: May 21, 2001 City Council Agenda Item 10-B Discussion of Options Relating to Prior Lake Transit Service As noted in staff's agenda report regarding the above-referenced item, the Transit Evaluation Committee met on May 16th. Members of the committee in attendance were: Mayor Mader; Councilmember Zieska; City Manager Boyles; Dave Christianson, Metropolitan Council Transportation Systems Manager; Troy Beam, Scott County Transit Coordinator; Tim Kirchoff, Anoka County Transit Coordinator and Transit Consultant Mark Ryan. The committee reviewed the one bid received and particularly focused on the costs included in the bid was considerably higher than staff projected. The committee members agreed that the City should look at other types and styles of buses than an over-the-road coach style bus. A smaller and less expensive type bus would obviously lower our capital costs. It was also suggested that the City might wish to look at older buses. Finally, it was agreed that while the City may want to scale back on the type of buses, it is important to provide buses that are acceptable to our riders in terms of comfort and ride. (Ideally the equipment would be equivalent or better from a comfort perspective compared to our present vehicles.) There was also discussion the extending the years of the contract which would lower the annual capital costs. The current specifications call for a two-year contract with a third year option. The specifications could include options for a three-year contract with a two year renewal at the City's option. If the City elected not to renew for an additional two years, the City would pay the remaining capital costs. This allows the vendors to spread the cost of the equipment over five years and accordingly reduce annual capital costs. We will also seek Metropolitan Council funds to pay for capital equipment. This too will reduce our annual costs. Staff recommends that the City Council reject the bid and authorize staff to modify the specifications as set forth above and readvertise. The revised specs would allow vendors to bid on various options with regards to size, seating capacity, age of equipment and comfort for our riders. If the City Council authorizes staff to re-advertise, the new bid package would be mailed out by May 25th, and the bid opening would be on June 20th. 16200 f@'d~ <cr~lfvtMla~&.,fihiRf<.~9IeMinnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER I r IT Ii T;