CR 93-179 Hop A Ride
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. October 27 , 1993 d P I ~ Council Report 93-179
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HOP-A-RIDE BIDS
Proposed Action:
Staff recommends the following motion: Move to reiect the bid from Suburban Taxi and direct
staff to re-bid the 1994 Hop-A-Ride service.
Overview:
The Hop-A-Ride service is an advance-reservation" ,shared-ride, door-to-door transportation
service for anyone who needs transportation within th~ Hopkins City limits, The Hop-A-Ride
service operates Monday through Saturday from 6:00 a.m. to 6:00 p,m. There are four current
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.
The City of Hopkins contracts with a private taxi 'operator to provide this service. Every year the
City solicits bids from taxi companies to provide service for the program in the upcoming year.
,. Currently Yellow Taxi provides the 1993 service. The curr~-p-er-ride is $1.73. The
bids were opened on October 13, 1993. Only one bid was received from Suburban Taxi. The
bid would substantially increase the budget from the 1993 budget. As a result of this situation and
other changes staff wishes to make to the specifications, staff is recommending to re-bid the
servIce.
" Analysis of Issues:
0 How does the Hop-A-Ride service funded?
0 What was the bid from Suburban Taxi?
0 Why is the staff recommending to re-bid the service?
0 What is the impact on the budget by awarding the bid to Suburban Taxi?
0 What changes is the staff recommending if the service is re-bid?
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Nancy Anderson
Planner
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page 2
. Primary Issues to consider:
0 How does the Hop-A-Ride service funded?
The Regional Transit.Board provides 60% of the funding for the.service. However, because of
budget freezes, the RTB has frozen their portion of the budget to $34,800 for the past several
years and again this year. The City's general fund and revenue from the ticket sales provide the
balance of the funding. The 1993 budget is $62,000.
0 What was the bid from Suburban Taxi?
The bid from Suburban Taxi was as following:
0 Base bid $2.74 per ride
0 Base bid plus Knollwood $2.99 per ride
0 Trip to Burwell House $3.34 per ride
0 Why is the staff recommending to re-bid the service?
The staff is recommending to re-bid the service because only one bid was received, as well as the
fact that staff proposes to make a change to the specification to allow for additional expansion of
the Hop-A-Ride program. (discussed later in report) The bid which was received from Suburban
. Taxi would substantially increase the cost of the program. To make up for the increase in the
budget one or both of the following will occur:
0 increase the Hop-A-Ride ticket prices
0 allocate additional dollars from the general fund for this program
By re-bidding the service the staff will attempt to have more than one. taxi company provide a bid .
on the service. It is hoped that a new bid will be lower than the present bid.
0 What would be the impact on the budget by awarding the bid to Suburban
Taxi?
If the contract is awarded to Suburban Taxi, without raising ticket prices, the Hop-A-Ride
program allocation from the general fund would be $34,700. This is an increase of $27,800 over
the 1993 budget. Currently the general fund contributes approximately $6,300.
The current ticket prices are $.55 for low income and $1.10 for regular income. The Knollwood
trip is $2.00 per ride and is self supporting, 87% of the riders use low income tickets and 13% of
the riders use the regular priced ticket.
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CR93-179
page 3
. The fOllowing is the current budget and the Proposed budget assuming the bid from Suburban
Taxi:
1994 PROPOSED BUDGET CURRENT BUDGET
Based on 28,000 riders Based on 28,000 riders
24,360 riders use $.55 tickets(currrent price) 24,360 riders use $,55 tickets(current price)
3,640 riders use $1.10 tickets (current price) 3,640 riders use $1.10 tickets( current price)
Total budget $86,900
RTB - .$34.800
$52,100
projected revenue - $17.400 . projected revenue
General fund $34,700 General fund
Total budget $86,900
. RTB $34.800
$52,100
project revenue $45.332
General fund $ 6,768
The following are some examples of smaller increases in ticket prices based 'on the bid from
Suburban Taxi, which would require an increase in the City's general fund contribution:
Based on 28,000 riders Based on 28,000 riders
, 24,360 riders use $.85 tickets 24,360 riders use $1.00 tickets
3,640 riders use $1.75 tickets 3,640 riders use $2.00 tickets
Total budget $86,900 Total budget $86,900
RTB -$34.800 RTB -$34.800
$52,100 $52,100
projected revenue -$27.076 project revenue - $31.640
General Fund $25,024 General fund $20,460
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. 0 What changes is the stafTrecommending if the service is re-bid?
Staff is recommending that if the service is re-bid, Knollwood is bid as a separate trip and not part
of the base bid. Also, based on the latest Hop-A.;.Ride survey, Park Nicollet Medical Center is a
place that many riders have expressed an interest in having as a destination. Staff would
recommend that the specifications be amended to request Park Nicollet Medical Center as a
separate bid option.
Alternatives.
1. Award the bid to Suburban Taxi. By awarding the bid to Suburban Taxi, the price per
ride will increase by $1.00 per ride. Ticket prices or funding for the program from the
general fund will need to be increased. The Council should provide some direction to
staff on how the issue should be addressed,
2. Reject the bid from Suburban Taxi and direct staff to re-bid the service. By rejecting
the bid from Suburban Taxi, the service will be re-bid.
3. 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 for an
additional two weeks because the current contract expires on December 31, 1993.
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