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CR 99-207 Hop-A-Ride Bids CITY Or: ~ . November 10, 1999 HOPKINS Council Report 99-207 HOP-A-RIDE BIDS Pro Dosed Action Staff recommends the following motion: Move to award the Hop-A-Ride contract to Senior Community Services for the 2000 service and increase the ticket price. Overview The Hop-A-Ride service is an advance-reservation, shared-ride, and door-to-door transportation service for anyone who needs transportation within the Hopkins City limits. The current system service operates Monday through Friday from 6:00 a.m. to 6:00 p.m. 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. ICA food shelf; 6. Park Nicollet Medical Center. ~. The service was bid in October and two bids were received. The bids were from Alternative Choice Transportation Inc. and Senior Community Services. Currently Alternative Choice Transportation Inc. provides the service. Senior Community Services bid $34.00 per hour and Alternative Choice Transportation Inc. bid $35.00 per hour. The current bid price per ride is $4.85 per passenger. Analvsis of Issues . How is the Hop-A-Ride service funded? . What are the bids from Alternative Choice Inc and Senior Community Services? . Should the bid the awarded to Senior Community Services? . What is the impact on the budget with the bid price? . Should the ticket price be increased? . Will there be any changes in the Hop-A-Ride program for 2000? Nanc . Anderson Planner CR99-207 Page 2 Primarv Issues to consider . How is the Hop-A-Ride service funded? The 2000 funding from the Met Council is $58,823. The City's general fund and revenue from the ticket sales provide the balance of the funding. The total 2000 budget would be $117,443; that would require a general fund contribution for 2000 of $38,820, based on the low bid, current level of service and no increase in ticket price. For 1999, the City is budgeted to provide $9,659.00 from the general fund. The 2000 budget is based on 12,000 passengers. . What are the bids from Alternative Choice Transportation Inc and Senior Community Services? The bid from Alternative Choice Transportation Inc. is $35.00 per hour. The bid from Senior Community Services is $34.00 per hour. . Should the bid be awarded to Senior Community Services? Alternative Choice currently has the 1999 contract. During the past year there have been few complaints regarding the service. Many passengers have called and commented on the good service they are receiving. However there is no reason to think: that Senior Community Services will not do as good a job as Alternative Choice. Senior Community has provided transportation in the western suburbs for many years. What is the impact on the budget with the bid price? The following is the budget for purchase of service and revenue: EXPENSES BASED ON THE CURRENT LEVEL OF SERVICE 12 hours a day x 5 days = 60 hours per week 60 hours x $34.00 (low bid) = $2040 per week $2040 per week x 52 = $106,080 $106,080 Contract amount + $1 L363 other expenses $117,443 total expenses - $ 58.823 Met Council funding $ 58,620 Expenses for revenue and general fund $58,620 - $19.800 Revenue based on 12,000 rides at $1.65 per ride $38,820 general fund contribution CR99-207 Page 3 EXPENSES BASED ON THE PROPOSED LEVEL OF SERVICE Proposed level of service includes four days a week, (Monday through Thursday) an operating time of7 a.m. to 6 p.m., and increase the ticket price from $1.65 to $1.75. 11 hours a day x 4 days = 44 hours per week 44 hours x $34.00 (low bid) = $1496 per week $1496 per week x 52 = $77,792 $77,792 Contract amount +$11.363 other expenses $89,155 total expenses - $58.823 Met Council funding $30,332 Expenses for revenue and general fund $30,332 - $21.000 Revenue based on 12,000 rides at $1.75 per ride $ 9,332 general fund contribution The budgeted amount for the general fund is $9659 Revenue For every .10 increase in the low income ticket price, $1200.00 is raised. Should the ticket price be increased? The following are the existing ticket prices: . Low income $1.65 . Regular income $4.85 . Knollwood $4.85 . Park Nicollet $4.85 Since the bid price did increase, staff is recommending that the ticket prices be increased to the following: . Low income $1. 75 . Regular income $5.00 . Knollwood $5.00 Park Nicollet $5.00 There are very few requests to go to Knollwood and Park Nicollet. CR99-207 Page 4 Will there be any changes in the Hop-A-Ride program for 2000? Staff is recommending no operations changes except for the hours operated for the 2000 Hop-A- Ride program. Alternatives 1. Award the bid to Senior Community Services and change the hours and the low-income ticket price as recommended by staff. 2. Award the bid to Alternative Choice Transportation Inc. If the City Council considers this option, the general fund contribution will have to be increased. 3. Reject the bids and direct staff to re-bid the service. Rejecting the bid and re-bidding the service probably will not result in more bids. In 1995 no bids were received after bidding the service out twice. In 1996, 1997, and 1998, only one bid was received, and in 1999 two bids were received. 4. Continue for further information. If the City Council indicates that further information is needed, the item should be continued. This item can be continued to December because the contract will expire December 31, 1999. .