CR 95-221 Award Hop A RideNovember 30, 1995
Proposed Action:
Staff recommends the following motions:
1) Award the 1996 Hop -A -Ride contract to Suburban Taxi.
2) Increase the ticket prices to the following:
till „ 1.11._!1)_1
Nanc 1 . Anderson
Planner
O P K
AWARD BID-- HOP -A -RIDE
Low income ticket price from $.85 to $1.20.
Regular income from $3.00 to $4.00.
Park Nicollet from $4.00 to $4.70.
Council Report 95 -221
Overview:
The Hop -A -Ride service is an advance- reservation, shared -ride, door -to -door transportation
service for anyone who needs transportation within the Hopkins City limits. There are six
additional destinations outside the City limits. They are:
1. Methodist Hospital
2. Opportunity Workshop in Opus II
3. Shady Oak Beach
4. Knollwood Shopping area
5. St. David's School
6. Park Nicollet Medical Center
The service operates Monday through Saturday from 6:00 a.m. to 6:00 p.m. The Metropolitan
Council will provide $34,810 for funding of the service in 1996. The City's general fund and
revenue from the ticket sales provide the balance of the funding. The Hop -A -Ride 1996 budget is
$63,300, with the City's share being $7,600. The City of Hopkins contracts with a private taxi
operator to provide this service. Currently, Suburban Taxi provides the 1995 service. The 1995
bid price per ride is $2.74.
Every year the City solicits bids from taxi companies for the upcoming year. The City bid the
service twice and received no bids. The staff finally negotiated with Suburban Taxi on providing
the service for 1996.
The staff is also proposing a ticket price increase at this time to address the increased bid price.
Primary Issues to Consider:
o What was the bid from Suburban Taxi?
o Should the bid be awarded to Suburban Taxi?
o What is the impact of the staff recommendation on the City budget for 1996?
o What is the basis for the ticket price increase?
o Will there be any changes in the Hop -A -Ride program for 1996?
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Primary Issues to consider:
o What was the bid from Suburban Taxi for the 1996 service?
The bid from Suburban Taxi was the following:
Base bid $4.00
Trip to Knollwood $4.00
Trip to St. David's School $4.00
Trip to Park Nicollet $7.00
o Should the bid be awarded to Suburban Taxi?
Suburban Taxi currently has the 1995 contract. During the past year there have been very few
complaints regarding the service. If the bid is not accepted, the service will end on December 31,
1995. Suburban Taxi has been the only bidder to provide this service for the last several years. It
appears there is limited interest on the part of taxi companies to provide this service, as it provides
a minimal profit margin. Over the last few months, City staff has twice undertaken a formal bid
solicitation without any vender response.
o What is the impact of the staff recommendation on the City budget for 1996?
The following is the subsidy that the City has provided for the service over the last few years:
The staff is recommending a proposal which would require a subsidy of $24,430, based on the
following:
4.00 per ride/ $1.20 per low income ticket
1993 $2,385
1994 $5,286
1995 budgeted at $10,300, will not use all the budgeted money
4.00 per ride
x 19 rides
$ 76,624 cost for rides
+$ 10,500 other expenses
$ 87,124 total expenses
- 34 Met Council funding
$ 52,314 expenses
20,930 ticket revenue 1.20 per ride x 17,442 (low income)
6,296 ticket revenue 4.00 per ride x 1,574 (regular income & Knollwood)
658 ticket revenue 4.70 per ride x 140 (Park Nicollet)
$ 24,430 City's contribution from general fund
Other ticket price change alternatives:
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$4.00 per ride and no increase in low income tickets
$ 4.00 per ride
x 19 rides
$ 76,624 cost for rides
+$ 10,500 other expenses
$ 87,124 total expenses
- $ 34 Met Council funding
$ 52,314 expenses
$ 14,825 ticket revenue .85 per ride x 17,442 (low income)
$ 6,296 ticket revenue 4.00 per ride x 1,574 (regular income & Knollwood)
$ 658 ticket revenue 4.70 per ride x 140 (Park Nicollet)
$ 30,535 City's contribution from general fund
$4.00 per ride/ $1.50 per low income ticket
4.00 per ride
x 19.156 rides
$ 76,624 cost for rides
+$ 10,500 other expenses
$ 87,124 total expenses
- 34 Met Council funding
$ 52,314 expenses
$ 26,163 ticket revenue 1.50 per ride x 17,442 (low income)
$ 6,296 ticket revenue 4.00 per ride x 1,574 (regular income & Knollwood)
$ 658 ticket revenue 4.70 per ride x 140 (Park Nicollet)
$ 19,046 City's contribution from general fund
$4.00 per ride /$2.15 per low income ticket - no impact on budget
4.00 per ride
x 19156 rides
$ 76,624 cost per rides
+$ 10,500 other expenses
$ 87,124 total expenses
- 34.810 Met Council funding
$ 52,314 expenses
$ 37,500 ticket revenue 2.15 per ride x 17,442 (low income)
$ 6,296 ticket revenue 4.00 per ride x 1,574 (regular income & Knollwood)
$ 658 ticket revenue 4.70 per ride x 140 (Park Nicollet)
$ 7,860 City's contribution from the general fund
The number of riders is based on the 1995 ridership.
The City's share of the Hop -A. Ride budget will increase from $7,600 to $24,430.
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Page 4
o What is the basis for the ticket price increase?
The 1996 bid price is $4.00 per ride. The current ticket prices are .85 (low income) and $2.75
(regular income). Staff is recommending that the ticket prices are increased to the following to
offset the increase in bid price:
low income $1.20 (currently $.85)
regular income $4.00 (currently $2.75)
Knollwood $4.00 (currently $3.00)
Park Nicollet $4.70 (currently $4.00)
Staff is recommending that low income tickets are $1.20. This recommendation is based on the
same percentage of cost that the riders are currently paying now, as detailed above. The
percentage ticket price of .85 is 31 percent of the current bid price of $2.74 and $1.20 is
approximately 30 percent of $4.00. The recommended price of the Park Nicollet ticket is $4.70;
this ticket price is based on the same percentage as the riders pay now. Presently, the regular
income ticket is the actual cost of the ride, which staff is recommending be retained. Staff is
recommending that the Knollwood ticket price remain the actual cost of the ride which is $4.00.
The ticket prices have only increased in the past when there has been an increase in the bid price.
The City has been very cautious about raising the ticket prices to keep the service affordable to
everyone. However, because of the increase in the bid price, staff feels that an increase in ticket
prices is justified.
o Will there be any changes in the Hop - A - Ride program for 1996?
Staff is recommending no operations changes for the 1996 Hop - A - Ride program.
Alternatives.
1. Award the bid to Suburban Taxi and change the ticket prices as recommended by star
2. Award the bid to Suburban Taxi and change the ticket prices to another price not
recommended by staff.
3. Reject the bid from Suburban Taxi and direct staff to re -bid the service. By rejecting
the bid from Suburban Taxi, the service will end as of December 31, 1995. In 1995,
only one bid was received.
4. Continue for further information. If the City Council indicates that further information
is needed, the item should be continued. This issue can only be continued to the next
City Council meeting, as the current contract expires on December 31, 1995.