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Home My WebLink About1996-05-28 - AGENDA REPORTS - AWARD CONTR TRANSIT MAINT (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT: BACKGROUND AGENDA REPOR May 28, 1996 Item to be presented by. Ron Kilcoyne AWARD OF CONTRACT FOR TRANSIT SERVICES AND MAINTENANCE Public Works The Transit division issued a Request for Proposals (RFP) on February 13, 1996 for the operation of transit services and vehicle maintenance. An Evaluation Panel was composed of the City's Transportation Manager, the City's Transit Coordinator, a Transit Analyst for the Los Angeles County Department of Public Works, the Director of Operations for Access Services Incorporated, the Executive Director of the Antelope Valley Transportation Authority, and the Director of Vehicle and Facility Maintenance for the Santa Monica Municipal Bus Lines. Five proposals were appropriately subrnitted by April 29, 1996. All proposals were reviewed by the six -member Evaluation Panel based upon the criteria set forth in the RFP. Four of five proposals submitted were determined to be responsive. The cost component of the four responsive proposals are within the proposed Transit division budget for FY 1996-97. They are as follows. PROPOSER TOTAL BID PRICE FY 1996-97 Forsythe $5,816,175 ATE Option #1 $5,839,965 ATC $5,861,370 Coast $S,897,000 ATE Option 92 $5,898,565 CORPORATE OFFICES West Covina, CA Cypress, CA Santa Rosa, CA Fountain Valley, CA Cypress, CA ATE Option 91 assumes continued operation of existing dial -a -ride vehicles. ATE Option 92 assumes that contractor will acquire new dial -a -ride vehicles. All of the other proposals assume that contractor will acquire new dial -a -ride vehicles- F:\IiONIEIPW\CCAGEN'DN,TP-,%NSAIVD.AGN Agenda Item: After independent review of written proposals, the Evaluation Panel interviewed proposed management teams from four prospective firms on May 9, 1996. Each panel member then submitted written evaluations, with appropriate scores, on May 14, 1996. Scores were tallied in accordance with the methodology set forth in the RFP, as shown in ATTACHMENT A. The financial viability scores were determined by the City's finance department based upon audited figures submitted by each proposer. The methodology for determining the cost proposal score is described in the attachment. RECOMMENIIATION Approve the award of contract for Transit Services and Maintenance to ATCNancom, Inc, as the most responsible and responsive proposer, and authorize the City Manager to execute a five-year contract in the amount of $29,306,850, plus an annually negotiated increase not to exceed the increase in the Los Angeles Area Consumer Price Index, allocated from account numbers 55-7001- 227, 55-7002-227, 55-7003-227, and 55-7005-227. ATTACHMENTS Proposal Scoring Summary for Transit Services and Maintenance Proposal ATCNancom Summary of Experience F:\HONM,PW\CCAGENDA�TRANSAVID-AGN PROPOSAL SCORING SUMMARY FOR TRANSIT SERVICES and MAINTENANCE PROPOSALS Technical Op Mngmt Financial ATC Competence Ability Viability I Cost Total Scores Bill Buclong 301 301 10.00 20.001 90 Debbie Lehto 27 28 10.00 20.00 85 Roy Neva 28 28 10.00 20.00 86 Shelly Lyons 26 25 10.00 20.00 81 Ron Kilcoyne 27 26 10.00 20.00 83 Bob Murphy 28 27 10.00 20.00 85, Avg. Scores 27.67� 27.331 10.0 20.00i 85.00 ATE Budlong Technical Op Mngmt Competence Ability 291 26 Financial Viability�� 15.00 Cost 20.00 Total Scores 90 Debbie Lehto 22 21 15-00 20.00 78 [Bill Roy 25 24 15.00 20.00 84 gNeva Shelly Lyons 20 22 15.00 20.00 - 77 Ron Kilcoyne 20 18 15.00 20.00 73 Bob Murphy 22 20 15.00 20.00, 77 Avg. Scores 23.00 21.83 15.00 20.00 79.83 COAST Buclong Technical Op Mngmt Competence Ability .' 15 13 Financial Viability 5.00 Cost 20,00 T Total Scores 53 Debbie Lehto 20 18 5.00 20-00 63 LBill Roy Neva 20 10 5.00 20.00 55 Shelly Lyons 13 15 5.00 20.00 53 Ron Kilcoyne 15 10 5.00 20.00 50 Bob Murphy 20 181 5.001 20.001 63 Avg. Scores 17,17 14.001 5-001 20.001 56.17 FORSYTHE Bill Budlong Technical Competence 27 Op Mngmt Ability 25 Financial Viability 1.001 Cost 20.00 Total Scores Debbie Lehto 25 23 1.001 20-00 69 Roy Neva 20 22 1.001 20.00 63 Shelly Lyons 22 20 1.00 20.00 62 Ron Kilcoyne 25 22 1.00 20.00 6E Bob Murphy 25 251 1.00 20.00� 71 Avg. Scores 24.001 22.831 1.00 20.001 67.83 Cost scores are the result of assigning 20 points to the lowest cost proposal. All other bids were assigned scores relative to the lowest cost proposal. All bids were within a narrow range. All scores rounded to 20 points. ATTACHMENT A Section X11 CONTRACTOR CAPABILITYAND REFERENCES Insert completed Statement of Experience forms (ATTACHMENT K). Provide a summary of the firm's relevant background experience. Discuss the applicability of such experience to this document. Discuss examples of projects completed for other governmental agencies that are of a similar nature and a contact person for each of those clients. Also include a certified financial statement reflecting the financial condition of the firm. The latest annual financial report and current financial report (balance sheet and profit/loss statements) shall be an acceptable response. The document must depict the financial status of the entity, subsidiary, division, or subdivision thereof that will actually perform service. Consolidated balance sheets and profit/ loss statements depicting the financial status of a whole corporation, joint venture or "parent organization" shall not be considered an acceptable response. Following are Attachment K, Maps, Financial Statements, Debarred Bidder's List, insurance information and Bid Bond. R ATC/Vancom Properties Client City of Phoenix Transit System 302 N. First Avenue Suite #700 Phoenix, Arizona 85004 Contact Person: Mr. Neal Manske 602-262-7242 Description Transportation Provided. Fixed Route Number of Employees: 875 Length of Service: Since 1971 Performing Service: Prime Contract Type & Number of Vehicles: 342 Coaches Average Annual Miles Operated. 12,000,000 Revenue hours: 919,000 Number of Riders: 29, 000,000 Assets: Agency provides Client Sky Harbor Transit System 3400 Sky Harbor Blvd. Phoenix, Arizona 85034 Contact Person: Mr. Robert Brown 602-273-2035 Description Transportation Provided. Airport Shuttle Number of Employees: 46 Length of Service: Since 1989 Performing Service: Prime Contract Type & Number of Vehicles: 12 Full Sized Coaches Average Annual Miles Operated: 1, 100,000 Revenue hours: 64,970 Number of Riders: 2,471,456 Assets: ATC provides ji§1 90 1 C, � Arizona Properties Client Arizona State University Box 870704 Tempe, Arizona 85287-0704 Contact Person: Ms. Karen McNeil 602-965-0472 Description Transportation Provided. Fixed Route, University Shuttle Number of Employees: 2 Length of Service: Since 1993 Performing Service: Prime Contract Type & Number of Vehicles: 2 Full Sized Coaches Average Annual Miles Operated: 186,000 Revenue hours: 2,489 Number of Riders: 38,750 Assets: ATC provides Client City of Tempe P.O. Box 5002 31 East 5th Street Tempe, Arizona 85280 Contact Person: Mr. Carlos de Leon 602-350-8527 Description Transportation Provided Fixed Route Number of Employees: 11 Length of Service: Since 1994 Performing Service: Prime Contract Type & Number of Vehicles: 7 Full Size Coaches Average Annual Miles Operated: 117,000 Revenue hours: 13,354 Number of Riders: 1,000,000 Assets: Agency provides U Arizona Properties cont. Client Livermore/Amaclore Valley Transit 1362 Rutan Court, Suite 100 Livermore, California 94550 Contact Person: Mr. Vic Sood 510-455-7555 Description Transportation Provided, Fixed Route, Demand Response Number of Employees: 84 Length of Service: Since 1991 Performing Service: Prime Contract Type & Number of Vehicles: 34 Full Sized Fixed Route Transit Coaches and 7 Para - transit Vans (3 Mini Vans) Average Annual Miles Operated: 1,420,000 Revenue hours: 82,000 Number of Riders: 1,000,000 Assets: Agency provides Revenue vehicles, ATC provides support equipment Client City of Chico 605 Wall Chico, California 95928 Contact Person: Ms. Lynn McEnespy 916-895-4876 Description Transportation Provided, Fixed Route Clipper - Paratransit Number of Employees: 41 Length of Service: Since 1987 Performing Service: Prime Contract Type & Number of Vehicles: 15 Full Sized Transit Coaches, 8 Minibuses, Vans Average Annual Miles Operated: 705,000 Revenue hours: 50,000 Number of Riders: 710,780 Assets: ATC provides 12 Revenue vehicles and shop equipment mc� 92 California Properties Client County of Butte 7 County Center Drive Oroville, California 95965 Contact Person: Ms. Carol White 916-538-7171 Description Transportation Provided. Butte County Transit - Fixed Route/Intercity Average annual miles: 419,484 Paradise Express - Paratransit Average annual miles: 206,664 Revenue Hours: 14,800 Number of Riders: 69,560 Oroville Area Transit - Fixed Route Average annual miles: 67,098 Oroville Express - Paratransit Average annual miles: 147,880 Revenue Hours: 12,480 Number of Riders: 44,858 Length of Service: Since 1993 Assets: Included with City of Chico Client MTDB 1255 Imperial Avenue, Suite #1000 San Diego, California 92101 Contact Person: Mr. Elliott Hurwitz 619-231-1466 Description Transportation Provided Fixed Route Number of Employees: 111 Length of Service: Since 1992 Performing Service: Prime Contract Type & Number of Vehicles: 51 Full Sized Transit Coaches, 2 medium duty Average Annual Miles Operated: 2,013,000 Revenue hours: 133,979 Number of Riders: 3,800,000 Assets: ATC provides 6 vehicles Client City of Napa 1600 First Street, P.O. Box 660 Napa, California 94559 Contact Person: Ms. Celinda Dahlgren 707-257-9520 Description Transportation Provided. Fixed Route Number of Employees: 32 Length of Service: Since 1991 Performing Service: Prime Contract Type& Number of Vehicles: 18 Full Sized Transit Coaches, Average Annual Miles Operated: 625,100 Revenue hours: 55,000 Number of Riders: 650,000 Assets: Agency provides Revenue vehicles ATC provides support equipment 3 1 1 California Properties Cont. Client Sonoma County 355 West Robles Avenue Santa Rosa, California 95407 Contact Person: Mr. Dave Knight 707-585-7516 Description Transportation Provided. Fixed Route Number of Employees: 83 Length of Service: Since 1989 Performing Service: Prime Contract Type & Number of Vehicles: 35 Full Sized Transit Coaches Average Annual Miles Operated: 1,759,000 Revenue hours: 93,784 Number of Riders: 1, 190,000 Assets: Agency provides Client Regional Transportation District 1600 Blake Street Denver, Colorado 80202 Contact Person: Mr. Clarence Marsella 303-628-9000 Description Transportation Provided. Fixed Route, Computer Express Service Number of Employees: 124 Length of Service: Since 1989 Performing Service: Prime Contract Type & Number of Vehicles: 36 40 -foot Gilligs, 14 22 -foot Metro Trans, Specialty Vehicles Average Annual Miles Operated: 2,465,300 Revenue hours: 124,822 Number of Riders: 2,088,356 Assets: ATC provides 11171'c--�:: 94 Colorado Properties Client Escambia Transit System 223 Palafox Place Pensacola, FL 32597 Contact Person: Mr. Bill Neron 904-436-5816 Description Transportation Provided: Fixed Route Number of Employees: 73 Length of Service: Since 1971 Performing Service: Prime Contract Type & Number of Vehicles: 29 Full Sized Transit Coaches, 8 Trolleys Average Annual Miles Operated: 1,253,000 Revenue hours: 252,774 Number of Riders: 1,300,000 Assets: Agency provides 95 Florida Properties Client Northern Illinois University DeKalb, Illinois 60115 Contact Person: Ms. Michelle Emmet 815-753-1421 Client City of DeKalb DeKalb Municipal Building 200 South Fourth Street DeKalb, Illinois 60115 Contact Person: Mr. Dean Kruithof Description Transportation Provided: Fixed Route, Uni- Illinois Properties versity Shuttle Number of Employees: 80 Length of Service: Since 1970 Performing Service: Prime Contract Type & Number of Vehicles: 17 Full Sized Transit Coaches Average Annual Miles Operated: 578,000 Revenue hours: 31,661 Number of Riders: 2,252,000 Assets: ATC provides Ac96 Client Hammond Transit System 425 Sibley Hammond, Indiana Contact Person: Mrs. Rebecca J. Gutowsky 219-853-6513 Description Transportation Provided. Fixed Route Number of Employees: 25 Length of Service: Since 1991 Performing Service: Prime Contract Type & Number of Vehicles: 12 Full Sized Transit Coaches Average Annual Miles Operated: 391,884 Revenue hours: 26,900 Number of Riders: 490,000 Assets: ATC provides 97 Indiana Properties Client Jefferson Parish P.0, Box 9, New Court House Gretna, Louisiana 70053 Contact Person: Ms. Jeanne Schiro 504-364-3450 Description Transportation Provided Fixed Route Number of Employees: 57 Length of Service: Since 1971 Performing Service: Prime Contract Type & Number of Vehicles: 27 Full Sized Transit Coaches Average annual miles operated: 1,700,000 Revenue hours: 65,800 Number of Riders: 1,700,000 Assets: Agency provides AC98 Louisiana Properties Client Berkshire Regional Transit Authority 67 Downing Parkway Pittsfield, Massachusetts 01201 Contact Person: Ms. Diane Smith 413-499-2782 Description Transportation Provided. Fixed Route Number of Employees: 50 Length of Service: Since 1982 Performing Service: Prime Contract Type & Number of Vehicles: 20 Full Sized Transit Coaches Average Annual Miles Operated: 1,028,480 Revenue hours: 53,000 Number of Riders: 700,000 Assets: Agency provides &I Massachusetts Properties Client Regional Transportation Commission 301 E. Clark Avenue, Suite 300 Las Vegas, Nevada 89101 Contact Person: Mr. Kurt Weinrich 702-455-4878 Description Transportation Provided. Fixed Route Number of Employees: 700 Length of Service: Since 1992 Performing Service: Prime Contract, Laughlin, Mesquite Type & Number of Vehicles: 189 Full Sized Transit Coaches (2 for Laughlin contract and 2 for Mesquite contract) Average Annual Miles Operated: 9,155,978 Revenue hours: 850,000 Number of Riders: 28,000,000 Assets: Agency provides Client Regional Transportation Commission 600 Sutro Street Reno, Nevada 89512 Contact Person: Mr. Gregory Krause 702-323-2800 Description Transportation Provided. Paratransit Number of Employees: 66 Length of Service: Since 1988 Performing Service: Prime Contract Type & Number of Vehicles: 35 Mini -Buses and Vans Average annual miles operated: 1,460,000 Revenue hours: 66,675 Number of Riders: 188, 000 Assets: ATC provides support equipment 100 Nevada Properties Client Regional Transportation Commission 301 E. Clark Avenue, Suite 300 Las Vegas, Nevada 89101 Contact Person: Mr. Kurt Weinrich 702-455-4484 Description Transportation Provideol. Paratransit Number of Employees: 225 Length of Service: Since 1994 Performing Service: Prime Contract Type & Number of Vehicles: 107 24-26 foot lift - equipped paratransit buses Average Annual Miles Operated: 4,000,000 Revenue hours: 308,000 Number of Riders: 332,000 (est. for 1995) Assets: Agency provides. Client City of Raleigh 222 West Martin Street Raleigh, North Carolina 27602 Contact Person: Mr, Mike Hailperin 919-831-6785 Description Transportation Provided Fixed Route Number of Employees: 115 Length of Service: Since 1989 Performing Service: Prime Contract Type & Number of Vehicles: 47 Full Sized Transit Coaches, 2 Trolleys Average Annual Miles Operated: 1,825,000 Revenue hours: 766,317 Number of Riders: 3,600,000 Assets: Agency provides Client Winston - Salem Transit Authority P.O. Box 2511 Winston - Salem, North Carolina Contact Person: Mr. Brent McKinney 919-727-2707 Description Transportation Provided'. Fixed Route, Para - Transit, Vanpool, Regional Ridesharing Number of Employees: 130 Length of Service: Since 1972 Performing Service: Prime Contract Type & Number of Vehicles: 54 Full Sized buses, 19 Minibuses, 70 15 -Passenger Vans, 4 Rubber -tire Trolleys Average Annual Miles Operated: 2,500,000 Revenue hours: 200,000 Number of Riders: 4,000,000 Assets: Agency provides R North Carolina Properties Client Tri - Met 1630 S.E. 8th Street Portland, Oregon 97214 Contact Person: Ms. Debra Maercklein 503-233-5106 Description Transportation Provided Maintenance Number of Employees: 13 Length of Service: Since 1994 Performing Service: Prime Contract Type& Number of Vehicles: 150 Mini -buses Assets: Agency provides 102 Oregon Properties Client City of Port Arthur 444 Fourth Street Port Arthur, Texas 77641 Contact Person: Mr. Dale Watson 409-983-8100 Description Transportation Provided. Fixed Route and Paratransit Number of Employees: 25 Length of Service: Since 1979 Performing Service: Prime Contract Type & Number of Vehicles: 10 Full Sized Transit Coaches and 6 Paratransit Mini- buses Average Annual Miles Operated: 413,645 Revenue hours: 28,000 Number of Riders: 321,500 Assets: Agency provides 103 Texas Properties Client Metropolitan Washington Airports Authority 44 Canal Center Plaza, Room 301 Alexandria, Virginia 22314-1562 Contact Person: Mr. Dennis Wissinger 703-417-8660 Description Transportation Provided'. Fixed Route Number of Employees: 73 Length of Service: Started June 1995 Performing Service: Prime Contract Type & Number of Vehicles: 23 Medium and Full Sized Transit Coaches Average Annual Miles Operated: 5,000 Revenue hours: 98,941 Number of Riders: Assets: Agency provides RI 104 I TIC I Washington, D.C. Properties Client NV Groningen Vervoerbearijf Sontweg 13 9723 AT Groningen Netherlands Contact Person: Mr. Fritz Overbeek 011-31-50-3688119 Description Transportation Provided. Fixed Route and Demand Response Number of Employees: 240 Length of Service: Started March 1995 Performing Service: Management Contract Type & Number of Vehicles: 173 Transit Vehicles, including Articulated and Demand Response Vehicles DFL: 43,600, 000 Client Ministry of Transportation The Hague, Maastricht Netherlands Contact Person: Mr, Hans Konig 011-31-30-2931811 Description European Netherlands Properties Transportation Provided. Fixed Route Number of Employees: 40 Length of Service: Started May 1995 Performing Service: Prime (service) Contract Type & Number of Vehicles: 14 Full Sized Transit Vehicles DFL: 2,400,000 105 Forsythe & Associates, Inc. Transportation Uanagement May 28, 1996 Honorable Jan Heidt Council Member City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355-1103 Re: Request for 30 Day Delay in Award of Contract for Transit Service Dear Council Member Heidt: Forsythe & Associates, Inc. requests that the City Council delay the award of a contract for transit service for a period of thirty days for the following reasons. Cost Our price is $250,000 lower than the recommended contractor over the 5–year contract. The table below shows the cost difference between Forsythe & Associates and ATC Vancom. Proposer Forsythe ATC Forsythe Savings Total Bid Price Fiscal Year 1996-97 6 Years No Inflation 5% Inflation $5,816175 $5,861:370 $29,080, 75 $29,306,850 $32,138.038 $32,387,769 $45,196 $225,975 $249,731 If inflation averages 5% per year over the next five years, the savings of contracting with Forsythe & Associates would be nearly $250,000 — one quarter of a million dollars. A quarter million dollars could provide an additional 5,300 hours of transit service – the operating cost of an extra bus 17 hours per day, Monday through Saturday, for one year. At the current Santa Clarita bus fare of $0,75, the savings with inflation equals over 333,000 bus rides. At the senior citizen rate of $0.25, the savings equals 1,000,000 rides. Nice homes are available in Santa Clarita for under $250,000. Forsythe & Associates was informed that the decision was very close between our firm and ATC. In a close competition, savings of a quarter million dollars should be persuasive to award the contract to the lower cost proposer. Instead, all proposals were given exactly the same score on cost. RECE!, I i'--" '�.– D INIADE A PART OF T'r"'E RECORD AT �- - ;:?i -��6 MEEnNG rrEM NO. 12 100 North Barranca Avenue, Suite 110 - West Covina. California 91791-1600 Toll Free 8001531-6482 - Phone 8181967-4700 - Fax 8181915-4770 Honorable Jan Heidt May 2 8, 1996 Page 2 We ask that the City Manager be given thirty days to review whether $250,000 is a significant cost savings for the City's transit service. Financial Viability The staff report indicates that Forsythe & Associates was given virtually no points for financial viability, while ATC was awarded 10 points by all evaluators. We believe this is wrong and unfair. This year, Forsythe & Associates is managing over $100 million of transit business on behalf of our clients. We submitted 10 letters of reference which testify to our ability to manage large scale transit systems within budget and at an extremely high level of quality service. Enclosed is a new letter we have just received commending our very successful startup in Scottsdale, Arizona. As a part of our proposal, we submitted confidential financial statements, prepared by our CPA, which confirm that we are a profitable business. At the time of our interview with the evaluation panel, I provided confidential corporate tax returns to Mr. Kilcoyne to verify the accuracy of the financial statements. We also provided a confidential letter to the City confirming our corporate access to an amount of working capital significantly larger than the Santa Clarita contract would require. While these documents must remain confidential to maintain a competitive position in this industry, City staff is in possession of documentation which demonstrates our financial viability and clearly calls into question the scoring given to Forsythe & Associates on financial viability. We have raised other issues regarding the inability of all proposers to provide the information requested by the City, and the exception made for ATC to submit other financial information after the proposal due date. Forsythe & Associates is a certified DBE, ATC is not. If any questions remain regarding our firm's financial ability to perform this work-, we would request adequate time to submit. similar financial information. Impact of Delay This decision can be delayed for thirty days. Any inconvenience which staff would encounter in this delay would be more than offset if the City were able to save a quarter million dollars in the operation of its transit service. The decision to award this contract has consequences for the next five years for the citizens of Santa Clarita. We would be happy to workArith the City Manager to expedite a review of these two matters, along with the issues raised in my May 20, 1996, letter to Mr. Kilcoyne. Honorable Jan Heidt May 28, 1996 Page 3 Summary Council Member Heidt, we believe that the questions raised by these two issues should warrant a delay of thirty days in the award of this contract. This would allow the City Manager adequate time to review the issues of the relevance of cost savings of $250,000, and allow his review of our financial viability. Forsythe & Associates is capable of operating the Santa Clarita transit service at the highest quality and lowest cost. We are prepared to answer any questions regarding our firm or our dedication to excellence. We want to work with the City to bring an enhanced level of performance to the Santa Clariia Transit System. You have my commitment as president, CEO and owner of Forsythe & Associates, Inc. that we will perform at a level which will satisfy the City of Santa Clarita in its quest for quality transit service. Very truly yours, 1&140� William P. Forsythc President & CEO Enclosure cc: City Manager George Caravalho Mr. Ron Kilcoyne C . I 1 0 1 SaTIS-DA-LE . , � j � - "M,wLavL4e Cffy' U-�- Cm*AWN PfMllr� - May 23,1996 TO WHOM ITNTAY CONCERN: Forsythe & Associate%. In,.-., has operated the Scottsdale Connection lixed route bus system since April 1, 1996. Overall, we have been impressed with Forsythe's ability and commitment to assemblea top quality performance team and puta high quality of service on the Toad. Scottsdale Connection rid!r.% immediately noticed a dramatic scrvice improvement on Forsythels first day ofscn-ice. The vehicles were clean and new, the operators were very impressive in their unifon n ot'dark blue slacks, white shirt and black tic, and, the riders appreciated the long stem:ncd carnations that each passenger received as they stepped onto the bus during the first week, ol'service. We have been throu,,h thrl-e different sen ice provider changes over the years, and e Forsy the& Associates, Inc., by far, has provided the smoothest transition. Forsydicis well organized, responsiv.- to our requests, and has shown a positive luld aggressive attitude regarding problemsolving and demonstrates a commitment to provide high quality service to the cost )mcrs of the Scuttsdalc Connection. The City of Scottsdale hx; worked closely with Forsythe & Associates- since Jartuary or this year it) order to prepare for the bcginning or service. The coordination skill and attention to detail exhibited by Forsythes start-up team gave us a sense ol*conlidence. The entirc l,orsytbe urgarization has shown a commitment to providing quality transit service to Scottsdale Con iection riders. We art: looking forward to a long and successful relationship. Please call me at (602) 9c 4-7656 if you need any further infiormation. Siaccr I 'X�1� Ronald S. Bcck Transit Coordinatur 14, 2M julbW ALI * 74171 IF IN: AANSCIML ruAL� 0 S(_�nQALI,A�1�05251 4-;/ -16 5: 51 SANTA �:L;AiT; ruzLiC wORKS - E05 ;5,� nj�5 NG.616 Z;04 CITY OF SAINTA CLARITA D�TEROFTICEMEMORANDUM TO: Mayor and City Council FROM: George Caravalho, City Manager DATE: May 23, 1996 SUBJECT: Utter from Forsythe and Associates Regarding Transit Services Contract You have received a copy of a letter addressed to Ron Kilcoyne, Transportation Manager from Forsythe mid Associates asking that the City reconsider the recommendation to award the Transit Operatiom and Maintenance Service Contract to ATC/Vancorn. Below, for your it&n-nation, is a response to the points raised in this letter. 1. Forsythe and Associates submitted the lowest cost proposal. Technically this is true, however, on a $6 million annual contract only $45,000 separated the Forsythe proposal and the ATC proposal - a less than I % difference. Since the rest component of all four proposals considered were within I % of each other, and also under the proposed budget for the coming fiscal year, all proposals were considered equal in this regard. 2. Forsythe and AmociatL-, is a Los Angeles based company and all taxes stay in Califomia. This was not a factor in the evaluation process and there is no apparent benefit to Santa Clarita Transit. One of the executives of Forsythe and Associates does co-own the Santa Clarita Soccer Center, however, this person would not likely be involved with this contract if it were awarded to Forsythe, and it is not relevant to the selection process. 3. We have knowledge of the high quality of their work. Forsythe and Associates does have high standards as the team managing Foothill Transit. However, Forsythe and Associates has only One Service contract (the type of contract involved here) and has only been involved in that contract since bLpfil 1996. We also have knowledge of the high quality of work ATC has exhibited at its numerous service cQntr-dcts including Las Vegas, Phoenix, San Diego, Santa Rosa and the Livermore Valley. The letter also discusses assistance in obtaining funding. This is not part of the work scope of this contract, and was not a factor in the evaluation process. When asked in the interview if various functions currently provided by city management staff, such as this, were included in the cost proposal, we were told that performing such functions would be at extra cost. All of the (aher proposers could likewise provide the same services at extra cost if the City so desired. R EC D %11ADE A F:\HCME%PWVTR A NS rr,TRANSMFORS YTIIr,.RSP PART U RE"CORD AT -9�k —MEETING ITEM NO. .112 @-3: 52 SANTA C"ARi7A PUBLIC WORKS - 805 253 E125 NO.618 CP05 Menio regarding letter from Forsythe and Associates page 2 4. Cassandra Harrison was the best project manager of all the proposals. The evaluators were reviewing the entire management team and not just die project manager. All of the evaluators felt that ATC presented a stronger team than Forsythe. We indicated in the RFP that dtic to the short time frame between the receipt of proposals, the proposal submitted should be the best and final offer. However even if Forsythe and Associates were given the opportunity to substitute other members of the team there are other factors which would lead to the same recommendation. 5. Fomythe and Associates is a Lvirtified DBE. This was not a ractor in the evaluation and there is no benefit to Santa Clarita Transit as we do not receive Federal operating funds. 6. Forsythe and Associates was the best proposal received. This was never conveyed to Mr. Forsythe. Some members of the evaluation panel were leaning towards Forsythe and Associates after reading the written proposals, (wh9e others were leaning towards ATC), however after taking into account the written proposal, reference checks and oral intervicws, all six members of the evaluation panel recommended ATC. 7. Forsythe and Associates is wiffing to. spend the resources necessary to provide audited financial statementq. Forsythe and Associates was the only proposer that did not submit audited financial statements. While we did seek some clarifications or additional information from other proposers after receipt of the proposals, the other proposers did meet the requirements of the RFP and did provide the clarifications or information requested. Only Forsythe and Associates did not comply with this requirement. The offer to spend the resources necessary to provide audited financial statements was made after receiving word that they were not the recommended contractor. In summary, the evaluation process was a very deliberative one, involving six individuals each with a different expertise, carefully considering numerous factors. I Staff does not feel that there are any factors raised in this letter that warrant any reconsideration of the recommendation. r:kliOMLAPNV�TRANSrr"TRAN,SMFORSYTIJII,R$I, 05/ Z4/ S6 05; 52 S�NTP; CLARITA PUBLIC WORKS - 605 259 E125 Forsythe & Associates, Inc. Transportation Management May 20,1996 Mr. Ron Kilcoyne Transportation Manager City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355-1103 Re: Request for Award of Contract to Forsythe & Associates, Inc. Dear Mr. Kilcoyne: No. 616 906 Thank you for the opportunity to have presented Forsythe & Associates' proposal to the City of Santa Clarim to operate the City's transit service. I appreciate you informing our firm of your decision to recommend ATC Vancom to the City Council for Us work. Since you indicated that the choice was extremely close between our firm and ATC, I ask that you reconsider your recommendation. By copy of this letter, I am providing the City Council with the following information regarding our company and our proposal: You indicated that Forsythe & Associates, Inc. was the lowest cost proposal received for this service. While cost is not the only consideration, the fact remains that there should be some overwhelming reason to take other than the lowest cost proposal. We believe, and you confirmed in our conversation. that Forsythe & Associates offered an excellent proposal and appears capable of delivering high quality service for the City at the lowest proposed price. Forsythe & Associates is & Los Angeles Countl,--basod company. Except for federal income taxes, off of the taxes that we would pay from this proposal will stay in California. We believe that our position as a Califomia—based company provides at least three sigrtificant benefits to the City of Santa Clarita. First, we are a local company who can respond with the full resources of our home office. Second, we pay California taxes, reinvesting our earnings into the local Los Angeles County economy and creating local jobs. Third, a member of our firm has invested in the Santa Clarita economy as co-owner of the Santa Clarita Soccer Center. You have local knowledge of the high quality of our work. You have worked with our Senior Vice President, Mr. Roger Chapin, at the Transit General Manager's Meetings, the Los Angeles County Municipal Operators' Association, and the Los Angeles County Municipal Operators' Coalition. 100 florth Barranca Avenue. Suite 110 - West Covina, California 91791-1600 I-,, C— Ok,,. AIRICR7.d7nn . F,,A?.q1Q1C..d7,7n NO. 61E 907 Mr. Ron Kilcoyne May 20, 1996 page 2 We have worked with you in tak-mg a very aggressive role in pursuing legislation to protect the Municipal Operators' funding. The same enthusiasm, skills and commitment will be used to provide outstanding service for Santa Clarita. Our firm has cooperated and shown a willingness to assist Santa Clarita when you were required to remove the Gillig Spirits from service because another contractor failed to complete a recall modification. The skills necessary to determine what can be done in providing quality customer service have resulted in one of our clients being named Outstanding Transit System of North America twice in the last 3 years. We have been successful in securing Federal discretionary funds for a major client. We pledge those same resources in assisting Santa Clarita with local, state and federal funding and issues as you may request. You indicated that our project manager, Cassandra Harrison, was the best project manager among the proposals received Our firm belief is that the project manager is the single most important person in the deterniination of how well the project will operate for the City. As you indicated, Cassic is an exceptionally high caliber manager — and one whom you indicated was clearly the strongest among the proposals youTeceivcd and the teams you interviewed. As offered during our interview, we would like the opportunity to arrange a personal interview with our proposed fixed—route operations manager and our safety and training manager who were unable to appear at our team interview. In regard to our other proposed team members, we would like the opportunity to substitute other team members in lieu of any whom you do not prefer, Our belief is that the most difficult position to fill is the project manager, and we would appreciate the opportunity to replace any other team member whom you do not accept. Forsythe & Associates Is a certifled Disadvantaged Business Enterprise which has a reputation for excellence. We claim no special privilege as a certified Disadvantaged Business Enterprise. We simply offer the best service in the world at the lowest cost. Out status as a DBE should be considered and would certainly benefit the City in helping reach its goals of minority enterprise participation. Our project team and home—office staff has an accumulation of direct transit operations 05/24/56 05: 5Z SANTA CLARITA PUBLIC WORKS � E05 255 6125 Mr. Ron Kilcoyne May 20, 1996 P a a. e 3 experience of more than 125 years and is fully capable and ready to fulfill the highest quality service possible to obtain. NO. 616 906 you indicated that the Forsythe & Associates proposal was the best proposal received. We thoroughly covered all areas requested in the City's Request for Proposals. Our proposal is thorough and of high quality. Forsythe & Associates Is willing to spend the resources necessary to provide audited financial statements. In all of the proposals we have pursued, our company has never been requested to provide audited financial statements. We did provide financial statements which were prepared by our Certified Public Accountant. As a small business, and since audited statements have not previously been required, we had not seen the need to expend the funds required for audited statements. You also informed us that no other qualified proposer fully complied with this requirement at the time of proposal submittal, which indicates that this requirement is very stringent and is somewhat unusual. We would be happy to expend the resources necessary to provide audited financial statements to the City if that is a primary factor in the decision to award this contract. You have my commitment, as President, CEO and owner of Forsythe & Associates, Inc. that we will deliver the highest quality service possible for the City of Santa Clarits. it is true that Forsythe & Associates, Inc. is a small business. However, this provides a significant benefit to the City. Since we are a small business that is building its expansion on the basis of excellence and high-quality service, we will pay greater attention to our cheats than. another firm would. Yo4 have my word that Santa Clarita is, and will continue to be, extremely important to our firm. We must continue to have excellent references to succeed in our business. Santa claritaArill continue to have our highest level of attention. As President & CEO of Forsythe & Associates, Inc., I commit to the City that I will personally spend whatever time is required on-site, along with Roger Chapin (our Senior Vice President), Mark Foster (our Vice President), Mike Verna (our Director of Operations and Maintenance) and any other of our staff whose time may be required to provide training, technical support or any other matters needed to fulfill our commitments to you. Our being a local company means that you will receive very fast response times. You have my commitment that we will do whatever it takes to satisfy the City of Santa CWta in its quest for quality transit $mice. You surely would have a difficult time obtaining the same �ur;r,s - =5 6!;5 NG. 61E �Lz 2 - Mr. Ron Kilcoyne May 20, 199 6 Page 4 level of corporate attention and commitment from a larger firm — especially one that is not based in Santa Clarita's "back yard." Summary Ron, I respect the process which you and the selection committee followed. I would like to commend you for the way in which you went about the difficult job of recommending a contractor. You indicated that the competition was very close. I simply ask that the points above be given more'consideration and that the contract for operation of the City's transit service be awarded to Forsythe & Associates. We believe our proposal offers the highest value to the City of Santa ClArita. Forsythe & Associates, Inc. continues to stand behind our proposal, our price and our project manager. We ask for the opportunity and the privilege to provide the highest quality service and best value that is possible to obtain on behalf of the City of Santa Clarita. Very truly yours, William P. Forsythe President & CEO cc: Mayor Carl Boyer Mayor Pro Tern Hamilton Clyde Smyth Council Member Jo Anne Darcy Council Member Jan Heldt Council Member Jill Klajic City Manager George Caravalho