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HomeMy WebLinkAboutExhibit" exa // ciT1' Or DI1A.'U, FLORIDA INTER -OFFICE MEMORANDUM TO: Pedro G. Hernandez, P.E. City Manager FROM: Bill Anid Assistant DATE: September 29, 2008 SUBJECT: Health District Trolley REFERENCES: ENCLOSURES: This memorandum presents an analysis of the options under consideration and a recommendation for .the long term operation of the Health District Trolley. Recommendation It is recommended that the City issue a Request for Proposal.(RFP) for municipal circulator services in the Health District. Further, a turnkey -contract approach is considered to be the most expeditious and cost-effective procurement option for the City as explained herein. Under a turnkey -contract, the selected proposer will provide the fleet and drivers, fuel, store and maintain the fleet, as well as operate the service for the initial 3-year term. This approach would reduce the City's administrative costs and liabilities while allowing for the quickest implementation of service. The City's responsibilities would be limited to monitoring, oversight, and marketing of the circulator service. Next Steps The City will enter into a Joint Participation Agreement (JPA) with the Florida Department of Transportation (FDOT) for the state's financial contribution to the Health District Trolley in the amount of $374,000 annually for an initial 3-year period which represents approximately 50% of the total annual operating cost of the circulator service. The JPA requires the City to provide an equal match of $374,000 annually for an initial 3-year period; we anticipate presenting this item to the City Commission in November. The City's contribution will be paid from its share of the PTP. Once the JPA is executed, the City will subsequently issue an open and competitive Request for Proposal for turnkey circulator service. Please note that we also propose to obtain Commission approval for the issuance of the RFP during the November meeting. Responsive bids shall be evaluated by a technical review committee in accordance with the established evaluation criteria specified in the RFP (consisting of technical criteria as well as cost to the City). The bidder with the highest overall score shall be recommended by the evaluation committee to the City Manager for contract award. Further, the City will execute an Interlocal Agreement with Miami -Dade Transit which will allow the City to provide the municipal circulator service independent of MDT oversight. background For some time, the City of Miami has been coliaborating with the Miami Partnership, a coalition of the major stakeholders and property owners in the Health District under the leadership of University of Miami President Donna Shalala and City of Miami Mayor Manny Diaz. The Miami Partnership has established a vision for the area which endeavors to improve mobility and enhance the image and quality - of -life of the area. To this end, in 2006, the City engaged a team of qualified consultants to evaluate and recommend improvements to the public realm by way of streetscapes, gateways, signage, and transportation/transit improvements. Numerous workshops were held with the Miami Partnership and governmental agencies in order to evaluate the mobility and circulation needs of the area and identify an appropriate transit solution to reduce congestion in the area. Based on the unanimous desires of the , Page 2 September 29, 2008 Miami Partnership and outcomes of those workshops, the City is proposing a rubber -tire circulator service among other roadway and streetscape improvements. The proposed Health District Trolley will serve 14 major facilities/institutions, 9 parking garages and parking lots, and will provide a direct connection to the Civic Center Metrorail Station, the transit hub of the area. (See route map below). Pu VeteranstAdministratton OMed caI Ce gilt: f .— f UniversihT.5 Miam Hospital'1 Office'of blic Defender ' 1;1th Judicial Couri LindsayfHops fviiamt Dade College ,•,:»-r-,r•...., 1Technical Educati MedicaliCampus t nCenter,, to Bascom ,Palme"r EyeInstitute r` t IJn v rrsity far •MedtcaltCa�mpu's..�_ '`„'�'� i-w.-., State�Attorne Off7cel (I ;▪ IC.rri Future Camillus Howse Legend * Proposed Stops Bus Shelters t� Benches • Proposed Benches Locp A' Locp B• ® Parking Garages Posse Future Extension Metrorail Stations 'Loop A yew ahy opparaie. ill a GiovaMSB neue, 8,0 LOW B opypr'BS MI a 6✓nlnr.ck,*ise .waharl In 2007, the City of Miami applied for funding from the FDOT transit service development program for the Health District Trolley project. The FDOT awarded the project $374,000 annually for the first 3 years of circulator service. The state funds are intended to off -set 50% of the operating and maintenance costs associated with providing the service. The state funds became available on July 1, 2008 and require an equivalent match from the City. The City's match will originate from its portion of the half -cent transit surtax (Peoples' Transportation Plan — PTP). As you may be aware, the Hialeah Circulator, the Coral Gables Trolley, the Doral Trolley, and the South Beach ElectroWave, among many other municipal circulators currently operating throughout the County, have been historical recipients of the state's start- up money; however, more importantly, this is the first time the City of Miami is a recipient of this exclusive and limited FDOT funding. Following are pertinent facts about the proposed Health District Trolley: • The Health District Trolley will be the City's first municipal -operated circulator and is intended to reduce congestion and improve mobility in the City's and County's second largest employment center with approximately 100,000 employees and visitors daily. Page 3 September 29, 2008 • The City has been working with the area stakeholders (collectively known as the Miami Partnership) and The Corradino Group since 2006 to evaluate circulator options and identify a preferred route. • An operating budget of approximately $750,000 for the first year is available (representing Florida Department of Transportation (FDOT) funds from the Service Development Program of $375,000 and an equivalent match from the City from its share of the Peoples' Transportation Plan (PTP) (i.e. half -cent transit surtax proceeds). • The service will operate on an approximately 3-mile route via a 2-way loop. • The service will consist of a fleet of four (4) trolley vehicles with two (2) vehicles operating in each direction; operating at 10 to 15-minute headways, twelve (12) hours per day, five (5) days a week, excluding holidays (New Years, Labor Day, Thanksgiving, and Christmas). • Pursuant to the Mayor's Green Initiative, the City and the Miami Partnership strongly desire a green, eco-friendly fleet of trolleys, which would most likely consist of either hybrid -electric or bio-diesel fuel vehicles. Below is an image of the type of trolley vehicle. • The City and the Miami Partnership would like the vehicles to incorporate a "wrap" or skin that is attractive and promotes the Health District branding effort. It is important to note that Commuter Services of South Florida (CSSF) has offered to provide branding and marketing services, up to a $100,000 value, at no cost to the City. CSSF's services will include, but not be limited to, mass production of route maps, street sign panels, street banners, creation of a website, and preparation of miscellaneous trolley -service literature for outreach and distribution. Page 4 September 29, 2008 • The City is requiring a provision for on -board fare -box equipment should the City decide to charge a nominal fare. At this time, it has not been determined whether the service will be provided free of charge. • The City anticipates providing vehicle storage and bio-fueling capabilities at either no cost or a reduced cost to the operator through its General Services Administration (GSA) facility on NW 20th Street in the Health District area. Operating Options The following options are available to the City for operating the Health District Trolley service: • Option l: City owns, operates, fuels, stores, and maintains the trolleys; • Option 2: Circulator service owned, operated and maintained by Miami -Dade Transit (MDT); • Option 3: Turnkey -contract operation where the City contracts with a private vendor who provides the trolleys and drivers, and fuels, operates, stores, maintains the trolleys; and, • Option 4: City leases or purchases trolleys and contracts with a service provider for operations, fuel, storage, and maintenance. Table 1 below presents a synopsis of the costs of the options referenced above. Table 1 Analysis of Options Vehicles Total Hrs2 Cost/Hr3 Annual Cost Lease/ Month4 Annual Lease Total Annual Cost Option 1: City -Owned Operation 4 12,288 $80 $983,040 $983,040 Option 2: Miami -Dade Transit (MDT) Owned -Operation 4 12,288 $100 $1,228,800 $1,228,800 Option 3: Turnkey Operation 4 12,288 $60 $737,280 $0 $0 $737,280 Option 4: City Leases Vehicles/Contracts Operation 4 12,288 $50 $614,400 $5,600 $268,800 $883,200 2Hours are based on weekday service, 12 hours a day, excluding holidays (New Years, Labor Day, Thanksgiving, and Christmas). 3Cost for MDT Operation was provided by MDT. Cost for Turnkey and Contract Operation are estimates based on other municipal programs in operation. Cost for City Operation is an estimate based on an average between Turnkey and MDT operation. All costs are estimates based on current industry information obtained without going through a formal bidding process. `Lease cost is based on a 31-foot, 26-passenger diesel trolley with a 6.7 Cummins engine capable of operating B5 biodiesel. . Page 5 September 29, 2008 Procurement Options There are two typical methods for contracting municipal circulator services: ■ Through "piggybacking" on an existing competitively bid contract held by another government entity for same services; and, ■ Through an open and competitive Request for Proposal (RFP) procurement process. With regards to the former option, the Purchasing Department was provided with a copy of an ongoing general services contract held by Miami -Dade Transit (MDT) for transportation services within Miami - Dade, Broward, and Monroe Counties (MDT's Request for Qualifications for Route Work and Group Travel Services (RFQ No. 83 dated May 2005)). The County's solicitation created a pool of pre -qualified transportation service providers. While the Purchasing Department determined it had no formal objections to the City "piggybacking" on MDT's pool of pre -qualified vendors, it strongly supported issuing a new solicitation specific to the Health District Trolley service as a more prudent course of action. Further, based on informal discussions with the service providers in the MDT contract pool, none seemed to have the required number of green/eco-friendly trolley -type vehicles immediately available for service in the Health District. Therefore, piggybacking on the MDT contract and limiting the solicitation to just those vendors in the MDT pool was not determined to be in the City's best interest. The City also engaged in recent discussions with MDT with regards to MDT operating the circulators (Table 1, Option 2 above). Under this scenario, the Health District Trolley service would be incorporated by MDT into their existing Metrobus service. Based on the outcome of those discussions as well as on a cost analysis of the various options as outlined in Table 1 above, it became apparent that this option would not be cost-effective, it would not provide efficient circulator service to the Health District, and would fail to further the vision and transportation objectives of the Miami Partnership. Further, if the service (and funding) were to be transferred to MDT, the City would not effectively retain any management and oversight responsibilities, and, therefore, would not be able to readily effectuate any service changes promptly and effectively to meet the needs of the Health District. Therefore, Option 3 (turnkey operation) procured through the issuance of an open and competitive solicitation via a Request for Proposal was deemed to be the most prudent and cost-effective course of action for the City. Further, conservative estimates reveal that the annual cost of turnkey operations will be less than the City's annual operating budget of approximately $750,000 for the circulator service. If responsive bids are not received initially, as a subsequent consideration, the City may choose Option 4 which consists of leasing the vehicles from a vendor through a competitive advertisement and concurrently re -issuing an RFP for only the operation (including fuel, storage, and maintenance) of the service. The City of Doral, for example, has successfully implemented this option. Option 4, however, is expected to exceed our current annual operating budget by approximately $130,000 annually.