1.             PARA TRANSPO SERVICE CONTRACTS AND TAXI SCRIPT PILOT PROJECT

 

CONTRATS DE SERVICE PARA TRANSPO ET PROJET PILOTE DE PARTICIPATION DES TAXIS

 

 

commITTEE RECOMMENDATIONS as amended

 

That Council approve:

 

1.                  The service delivery concepts and procurement methodology detailed in this report, noting that the bid solicitation document will be released for Para Transpo service in June 2006;

 

2.                  That the Deputy City Manager, Public Works and Services be delegated authority to approve a contract award based on the process identified in this report for service provision beyond June 2007; and,

 

3.                  That a report will be brought to Committee and Council in the fourth quarter 2006 which deals with the results of this procurement process, together with further investigation into the possible implementation details of a Taxi Script program.

 

4.         That staff report to Transportation Committee on the process to be used to accommodate and evaluate an ‘in-house’ bid to provide Para Transpo service

 

 

recommandations modifiÉes du COMITÉ

 

Que le Conseil approuve ce qui suit :

 

1.                  Les concepts de prestation de service et la méthode d'acquisition s'y rattachant qui sont décrits dans le présent rapport, en prenant note du fait que le document d'appel d'offres pour le service de Para Transpo sera publié en juin 2006;

 

2.                  Que le directeur municipal adjoint, Travaux et Services publics, reçoive une délégation de pouvoirs l'habilitant à approuver un contrat à adjuger suivant le processus établi dans le présent rapport pour la prestation de service après juin 2007;

 

3.                  Qu'un rapport portant sur les résultats de ce processus d'acquisition, ainsi que d'une étude plus poussée des éventuelles modalités d'application d'un programme de participation des taxis, soit présenté au Comité et au Conseil au cours du quatrième trimestre de 2006.

 

4.         Que le personnel soumette un rapport au Comité des transports sur la façon de procéder pour l’acceptation et l’évaluation d’une offre « interne » relativement à la prestation du service Para Transpo.

 

 

 

Documentation

 

1.                  Acting Deputy City Manager, Public Works and Services report dated 8 May 2006 (ACS2006-PWS-TRN-0006).

 

2.                  Extract of Minutes, 17 May 2006.


Report to/Rapport au:

 

Transportation Committee/Comité des transports

 

and Council/et au Conseil

 

8 May 2006/le 8 mai 2006

 

Submitted by/Soumis par: R.G. Hewitt

Acting Deputy City Manager/Directeur municipal adjoint intérimaire,

Public Works and Services/Services et Travaux publics

 

Contact/Personne-ressource: A. Carle, Director/Directeur,

Transit Services/Service du transport en commun

842-3636 ext. 2271, alaine.carle@ottawa.ca

 

City Wide

Ref N°:  ACS2006-PWS-TRN-0006

 

 

SUBJECT:    PARA TRANSPO SERVICE CONTRACTS AND TAXI SCRIPT PILOT PROJECT

 

OBJET:          CONTRATS DE SERVICE PARA TRANSPO ET PROJET PILOTE DE PARTICIPATION DES TAXIS

 

 

REPORT RECOMMENDATIONS

 

1.                  That the Transportation Committee approve and recommend to Council the service delivery concepts and procurement methodology detailed in this report, noting that the bid solicitation document will be released for Para Transpo service in June 2006;

 

2.                  That the Deputy City Manager, Public Works and Services be delegated authority to approve a contract award based on the process identified in this report for service provision beyond June 2007; and,

 

3.                  That a report will be brought to Committee and Council in the fourth quarter 2006 which deals with the results of this procurement process, together with further investigation into the possible implementation details of a Taxi Script program.

 

RECOMMANDATIONS DU RAPPORT

 

1.                  Que le Comité des transports approuve et recommande au Conseil d'approuver les concepts de prestation de service et la méthode d'acquisition s'y rattachant qui sont décrits dans le présent rapport, en prenant note du fait que le document d'appel d'offres pour le service de Para Transpo sera publié en juin 2006;

 

2.                  Que le directeur municipal adjoint, Travaux et Services publics, reçoive une délégation de pouvoirs l'habilitant à approuver un contrat à adjuger suivant le processus établi dans le présent rapport pour la prestation de service après juin 2007;

 

3.                  Qu'un rapport portant sur les résultats de ce processus d'acquisition, ainsi que d'une étude plus poussée des éventuelles modalités d'application d'un programme de participation des taxis, soit présenté au Comité et au Conseil au cours du quatrième trimestre de 2006.

 

 

BACKGROUND

 

Existing Para Transpo Service

 

Para Transpo is the City of Ottawa’s door-to-door transportation service for persons who are unable to use conventional transit services.  The hours of service, geographic areas served and fare structure are similar to our conventional transit system.  The total budget established for the delivery of the service in 2006 is $22,250,000.  Annual revenues of $1,571,000 will offset some of these costs.  In 2006, the service will carry approximately 690,000 customer trips. 

 

There are approximately 12,000 persons with disabilities registered with Para Transpo.  Approximately 30 percent of registrants use either a wheelchair or scooter and therefore require a wheelchair accessible vehicle.  The remaining 70 percent of registrants are ambulatory and can usually travel in either a passenger car or a wheelchair accessible vehicle.

 

The existing Para Transpo service is delivered entirely through contracted services.  Client eligibility and certification, customer reservations, scheduling and dispatch to the hourly rate contracts, and contract management are provided in-house by Transit Services staff. 

 

Contracted Services

 

The on-street portion of the service as well as the taxi dispatch functions are delivered by private sector operators under contract with the City.

 

Para Transpo is currently delivered through four distinct contracts: one using wheelchair-accessible vans, one using non-accessible sedans, one using wheelchair-accessible taxis and one using non-accessible taxis. 

The two taxi contracts, which are delivered by West-Way Taxi and Coventry Connections, represent approximately 10 percent of the overall service.  These contracts are paid based on the taximeter rate plus a management fee and will expire in March 2009.

 

The wheelchair-accessible van and the non-accessible sedan contracts, which are delivered by FirstBus Canada, represent about 90 percent of the overall service.  These contracts are paid based on the hours of service delivered and are scheduled to expire in June 2007.


 

Under the existing service delivery model, these four services are managed as follows:

 

·       Wheelchair Accessible Van Service (FirstBus Canada)

 

This contract, operated with wheelchair-accessible vans, is the core Para Transpo service operating seven days a week for the full length of OC Transpo’s service day.  It integrates non-ambulatory and ambulatory customers in order to maximize van capacity per trip.  In 2005, 92 wheelchair-accessible vans provided registered Para Transpo customers with 477,000 trips.  This service is expected to deliver 70 percent of the Para Transpo trips in 2006 (483,000 trips).

 

·       Non-Accessible Sedan Service (FirstBus Canada)

 

     Non-accessible sedans provide supplementary service during weekdays between 6:00 a.m. and 6:00 p.m.  This contract is for the delivery of service using dedicated four-door sedans, using a fleet of 37 vehicles.  This service is expected to deliver approximately 20 percent of the Para Transpo trips in 2006 (137,000 trips).

 

·       Non-Accessible Taxi Service (West-Way Taxi)

 

     Non-accessible taxis also provide supplementary service during weekdays between 6:00 a.m. and 6:00 p.m.  This contract delivers service using approximately 25 non-accessible cabs.  This service is expected to deliver between seven percent and eight percent of the Para Transpo trips in 2006 (50,000 trips).

 

·       Wheelchair-Accessible Taxi Service (Coventry Connections)

 

     Wheelchair-accessible taxis also provide supplementary service during weekdays between 6:00 a.m. and 6:00 p.m.  This contract delivers service using approximately five wheelchair-accessible cabs.  This service is used by both ambulatory customers as well as customers using wheelchairs and is expected to deliver between two percent and three percent of the Para Transpo trips in 2006 (20,000 trips).

 

In-house Services

 

Client Eligibility and Certification

 

To be able to use Para Transpo services, a person must first register for the service. Transit Services staff administers this registration process.  Detailed application forms must be completed and signed by the applicant and their health care professional and then forwarded to Transit Services for their review.

 

Fully completed application forms are generally processed within one week of the date received by Transit Services staff.  A point system is used to assist staff in determining whether an applicant is eligible for service and once an applicant is determined to be eligible for service, a detailed information package including their Para Transpo registration number is sent to the newly registered customer.  Once a customer has been registered for service they can then contact Para Transpo to request transportation.

 

Transit staff register, on average, 3,500 new clients each year.  However, the total number of active clients has not been increasing significantly over the last few years, as there are a similar number of clients who stop using the service.

 

Of the 3,500 annual registrations, 60 percent are permanent registrations.  Approximately 80 percent of these permanent customers are seniors and 32 percent either a wheelchair or scooter. 

 

The remaining 40 percent of the registrations are temporary clients who have been registered for one year or less.  Of these customers, approximately 58 percent are seniors and 18 percent use either a wheelchair or scooter.

 

Reservations

 

Under the existing model, 55 percent of Para Transpo trips delivered occur on a regular weekly basis and are therefore booked as subscription bookings.  Once these bookings are established, the customers do not need to call Para Transpo again unless they wish to make changes to their reservations. 

 

For the remainder of the bookings (45 percent), customers are required to schedule their trips one day in advance, although same day bookings are accommodated when cancellations occur.

 

Para Transpo service hours/levels and ridership have been relatively unchanged between 1995 and 2005.  This compares to an eight percent increase in service hours on the conventional transit system.  Attachment 1 shows Para Transpo ridership by registered passengers over the past ten years.

 

As a result of the above, over the last ten years four to six percent of Para Transpo trip requests each year could not be accommodated. This amounted to 38,000 trips in 2005 and does not include the latent demand for service that cannot easily be measured.  This is the case in spite of the fact that Ottawa transported more passengers per capita than most other large Cities in Canada.  In 2004, out of the eighteen largest Canadian specialized transit systems, Ottawa ranked third.  Only Hamilton (1.21 passengers/capita) and Victoria (1.10 passengers/capita) transported more passengers per capita than Ottawa (1.01 passengers/capita).  The Canadian average in 2004 was .67 passengers per capita.

 

Para Transpo must find ways of improving the system’s capacity to meet unmet, latent and growing demand while delivering service that meets the customer needs at a fair and equitable price.

 

The solution to the problem of trip refusals lies in a combination of attracting some trips to regular transit, finding the most cost-effective way to provide service to those who need to use Para Transpo and providing an annual budget that will meet the transportation needs of those who require Para Transpo service.

 

Some Para Transpo customers are now using regular transit for at least some of their transportation needs.  While the service delivery model used by Para Transpo has limited cost increases over the years, the resources available to Para Transpo over the last ten years has been insufficient to meet the demands of its customers.

 

Scheduling

 

A sophisticated computer software scheduling system is used to optimize the use of available resources.  This system ensures the most cost-effective distribution of customer trips amongst the three existing contractors, who operate four different types of vehicles under four distinct contracts.  This is a complex scheduling process performed by Transit Services staff.

 

Transit Services staff accepts all trip requests from eligible Para Transpo customers, selects the trips that can be effectively put together in a shared ride schedule and then sends these van and sedan schedules to FirstBus so that their drivers can then deliver the service.  Experience has shown that this approach allows the maximum number of riders to be transported in the most cost-effective manner.

 

Trips that cannot be effectively scheduled to hourly rate vans and sedans in a shared ride mode are then forwarded to the taxi companies where the majority of the trips are dispatched in a non-shared ride mode. 

 

Dispatch

 

Prior to the day of service, Para Transpo customers will cancel on average 250 previously reserved trips for that day. After the daily schedules (3000+ trips) have been produced and forwarded to the appropriate contractors, Transit staff will generally dispatch 650 service adjustments each day through the radio communication system.  Service adjustments will include same-day customer trip cancellations as well as same-day service requests and will often require the transfer of trips from one vehicle to another.

 

 

DISCUSSION

 

The Role of Taxis in Service Delivery

 

Experience in Ottawa has shown that, although on a per trip basis the non-accessible taxi service has generally been more expensive than the hourly rate sedan service, non-accessible taxis can be an effective way of covering trips that cannot be effectively scheduled to hourly rate vehicles in a shared ride mode.

 

Past experience has also shown that the transportation of customers using wheelchairs is generally more costly than the transportation of ambulatory clients because of the need for more costly wheelchair accessible vans.

 

However, it is expected that with the introduction of wheelchair-accessible cabs into the Para Transpo service, there will likely be opportunities to reduce the overall cost of transporting persons using a wheelchair. 

 

Taxi Script

 

The City is also investigating the feasibility of introducing a “Taxi Script” pilot-project, which would provide Para Transpo customers with the option of purchasing taxi-chits from the City at reduced prices.  These chits could then be used to purchase trips directly from participating taxi companies.  This type of program is currently operating in Hamilton, Ontario where their specialized transit customers pay 60 percent of the taxi-metre rate.  This type of program would provide some Para Transpo customers with an additional option for at least some of their transportation needs and would also likely be of benefit to the taxpayer and the Taxi industry.  

 

A “Taxi Script” pilot project will be developed over the summer and brought back to Committee in late 2006, after the Para Transpo contract awards are approved by staff. 

 

Van and Sedan Service

 

It is expected that a combination of wheelchair accessible vans, wheelchair-accessible cabs, as well as non-accessible cabs and/or sedans is likely the most cost-effective way of delivering effective Para Transpo service. 

 

The daily decisions on what contractor and vehicle type receives what customer trips do, to a large extent, determine how effective the service will be. 

 

Those decisions must be made with the customer and the taxpayer in mind and are therefore made by City staff.  To be able to deliver the above service in a cost-effective manner, Transit Service staff must operate the Para Transpo reservations centre, scheduling and dispatch functions, and manage the overall delivery of the contracted service.  Not only is this the most effective method of delivering Para Transpo service, it is also in line with the current ATU 1760 agreement with the City which contains a no new contracting out clause. 

 

Enhancements to the Para Transpo system that are currently being implemented by the City, include the installation of Mobile Data Terminals (MDT) and a Global Positioning System (GPS) in all Para Transpo vans, as well as an Interactive Voice Response system (IVR) in the City’s Para Transpo reservation section.

 

This technology will enhance the existing computer aided Para Transpo dispatch system, improve schedule adherence, increase driver and passenger safety, improve customer information, and allow more efficient schedules to be developed.

 

 

PROCUREMENT AND SERVICE DELIVERY APPROACH

 

The two existing Para Transpo contracts with FirstBus Canada expire in June 2007.  The lead-time to obtain wheelchair-accessible vehicles is estimated to be six to nine months. This means that, to have new vehicles available for July 1, 2007, they must be ordered as soon as possible.  If they are to be ordered by a contractor, the procurement process should be initiated now, with the bid solicitation document released through the Internet no later than mid-June 2006.

 

The Ottawa taxi industry has begun using fully accessible cabs and the City will be increasing the number of available accessible plates in January 2007.  However, the number of accessible cabs that could be effectively used within the Para Transpo system is currently very limited.  It is clear that, while arrangements for Para Transpo service should be used whenever possible to support the growth of the accessible cab industry, it will be necessary to provide an accessible van service to meet the majority of the needs of wheelchair users at least for the next five years. 

 

However, as indicated in the “Principles to be Reflected in the Procurement Process” listed below, the availability of accessible cabs and the cost-effectiveness of delivering service with cabs will be a consideration when awarding a van and sedan contract.

 

The principles on which the two stage Request For Qualifications and Request For Tender will be based are summarized below.  The principles were developed in conjunction with Supply Management in order to ensure an open, fair and transparent procurement process.  

 

Principles to be Reflected in the Procurement Process 

 

The focus of the procurement will be customer service and cost.  The bid solicitation document will be written so that the service delivered will meet the customers’ needs at the lowest tendered cost.

 

1.    One bid solicitation document will be issued to include the two-stage procurement process.  The pre-qualification process will include both mandatory and rated criteria with a pass grade, and only those bidders who are qualified will be considered for contract award in the tender stage, as the lowest responsive bidder: 

·       Potential bidders will be required to bid on both wheelchair-accessible van service and non-accessible sedan service.

·       A number of service levels will be included in the procurement process and bidders will be required to bid on all the service level options listed.

·       Before awarding a van and sedan contract, a comparison will be made to the cost of delivering service through the existing taxi contracts.

·       One contract will be awarded and the service level awarded will be based on the mix of vehicles (van, sedan, taxis) that would be available for July 1, 2007 that will deliver the overall most cost-effective service, in the sole opinion of City staff. 

 

2.    Clauses will be included in the bid solicitation document to allow for adjustments in service levels over the contract period based on budget approvals as well as additional service delivery options that may become available such as Taxi Script.

 

3.        The wheelchair-accessible van service and the non-accessible sedan service will contain the following elements:

 

·       A five-year contract (with an option for one additional year if both parties are in agreement) to ensure that the wheelchair-accessible vans used to deliver the service provides an acceptable level of service throughout the entire contract period.

·       The successful bidder will be required to purchase and maintain the vehicles used to deliver the contracted service.  To ensure vehicle suitability and comfort for customers, the bidders will have to obtain approval from the city for the vehicles that they want to supply to fulfill the contract.

 

4.        The bid solicitation document will contain performance measures and service standard clauses, which will ensure a high quality of service in areas such as service reliability, customer service, cleanliness, safety and maintenance standards.

 

5.        The bid solicitation document will include provisions that minimize the City’s exposure to service disruptions.

 

6.        The bid solicitation document will require the successful bidder to ensure that appropriate disability awareness and sensitivity training is provided to all drivers.

 

7.        The bid solicitation document will include the requirement for the successful bidder to recognise the ATU 279 as the bargaining agent for the Para Transpo drivers, to resolve all collective agreements via final and binding interest arbitration and to hire all the FirstBus Para Transpo drivers required to meet the contract obligations. 

 

8.        In order to ensure an open, fair and transparent procurement process, the bid evaluation will be conducted by an evaluation team comprised of senior staff from Transit Services, and Supply Management and will be based solely on the basis of award as stipulated in the bid solicitation document.

 

9.        The competitive process will be designed to ensure a fair evaluation of all the bids, determining which will result in the best value for the City, as evidenced by the lowest responsive bidder having passed through the pre-qualification stage.

 

10.  The bids will be based on:

 

·       a common Statement of Work that all bidders must respond to;

·       the provision of adequate information so that all bidders are knowledgeable enough to bid on an informed basis; and

·       a fair and objective evaluation of all bids received by an  evaluation team of city staff.

 

The competitive process detailed in this report is designed to result in the most cost-effective Para Transpo service that meets customers’ needs.  The procurement process will allow a full assessment of the options under current market conditions.  There will be a full review of the procurement results in accordance with the bid document, followed by the award of contract by delegated authority to City staff in accordance with the recommendations of this report and the City Purchasing By-Law.

 

 

CONSULTATION/PUBLIC NOTIFICATION

 

Information on the recommended service delivery approach and the feasibility of implementing a Taxi Script pilot project was sent to members of the Accessibility Advisory Committee, the Seniors Advisory Committee and the Pedestrian and Transit Advisory Committee with a request that they provide preliminary feedback.  A meeting was also held with the Transportation subcommittee of the Pedestrian and Transit Advisory Committee, where the procurement approach and Taxi Script option were discussed.

 

Feedback received from these groups was generally positive.  There was support for both the service delivery approach and for further investigation of the feasibility of implementing a Taxi Script pilot project.  Specific feedback included the following:

·          There was a positive response to the service delivery approach, as it will deliver service that will meet the customers’ needs at the lowest tendered cost.

·          There was also a positive response to the investigation on the possible implementation of a Taxi Script pilot project, because it would provide Para Transpo customers with an additional transportation option.  The only concerns expressed were that a Taxi Script pilot project should not reduce the services currently delivered by Para Transpo.  It was suggested that if a pilot project were implemented, a separate Taxi Script budget be established which would be in addition to the Para Transpo budget.

·          It was also suggested that if a Taxi Script pilot was implemented that there be safeguards built in to avoid abuse.

 

 

FINANCIAL IMPLICATIONS

 

The financial implications of the recommended Para Transpo service approach will be provided in detail when the recommendation is brought to Committee and Council in September, and will be in compliance with Council approved budget directions.

 

 

SUPPORTING DOCUMENTATION

 

Attachment 1 – Para Transpo Ridership

 

 

DISPOSITION

 

Staff will develop and distribute the bid solicitation document for accessible van and supplementary sedan service through the Internet based MERX bid distribution network, and investigate the possible implementation of a Taxi Script program.  The result of the competitive procurement will be approved by staff, and the further work done on Taxi Script will be used to develop recommendations for the future delivery of Para Transpo services, to be presented to Committee and Council in the fourth quarter of 2006.

 


ATTACHMENT 1

 

PARA TRANSPO RIDERSHIP

 

 


PARA TRANSPO SERVICE CONTRACTS AND TAXI SCRIPT PILOT PROJECT

CONTRATS DE SERVICE PARA TRANSPO ET PROJET PILOTE DE PARTICIPATION DES TAXIS

ACS2006-PWS-TRN-0006                         CITY WIDE / À L'ÉCHELLE DE LA VILLE

 

Appearing before Committee to make a presentation on the item were Public Works and Services (PWS) staff members Alain Carle, Director of Transit Services; Helen Gault, Manager of Transit Service Planning and Development; Pat Larkin, Program Manager of Para Transpo, and Phil Andrews, Program Manager of Purchasing, Corporate Services.  A copy of the PowerPoint Presentation is held on file with the City Clerk.  In addition, present to answer questions was Richard Hewitt, Acting Deputy City Manager of PWS and Lyn Hunt, Manager of Labour Relations, Human Rights and Employment Equity, Corporate Services.  Before proceeding with the Presentation, Mr. Carle noted a technical amendment to the report recommendations to have the phrase ‘That the Transportation Committee approve and recommend to Council’ taken out of recommendation number 1 and placed before all three recommendations, to make it clear that Council is being asked to approve all three.  He also noted, with respect to the consultation section of the report that the Taxi Advisory Committee received a presentation on this issue on May 16th and they expressed their support at that time; Councillor El-Chantiry, who is a non-voting member of the Taxi Advisory Committee, also confirmed this.

 

Following the presentation, the Committee heard from the following delegations:

 

Catherine Gardner stated that she likes the idea of taxi vans being used by Para Transpo because it cuts down on the amount of gas currently being used with the large Para Transpo vans, but she had concerns about the accessibility of those taxis with respect to larger wheelchairs.  She explained that she took a taxi the other day, though not through Para Transpo, and she was not able to use a seat belt in that car because her wheelchair was larger and had to sit sideways.  The chair itself was strapped down but she was not.  She noted that it is not mandatory for wheelchairs to contain a seatbelt, and she wondered whether staff as a safety concern could deal with this.  She wondered whether the costs of using Para Transpo versus conventional bus transit could be examined when the new contract comes up, noting that in early a.m. hours, riders pay about $9.00 to use Para Transpo, much more than it would cost to use OC Transpo.

 

Councillor El-Chantiry advised the issue of seatbelts for larger chairs had been discussed at the Taxi Advisory Committee meeting of the day before and the taxi company advised they will be able to provide that.

 

In response to questions from Councillor Legendre, staff explained that in the contract the City has with Coventry Connections, it looked at the wheelchair accessible cabs and required that all such cabs providing service to Para Transpo be able to remove the front passenger seat so that wheelchairs can fit inside appropriately.  When asked by the Councillor, Ms. Gardner replied that the taxi she used was a Blue Line accessible cab, and she added that the middle seat was removed but she was told that for larger chairs, there is not enough room for them to turn so they have to go in straight and sit sideways without a seatbelt.

 

When asked by Councillor Bloess, staff explained that the $9.00 fare Ms. Gardner referred to is for rural Para Transpo service, which amounts to 10% of the overall cost averaged out for the various zones outside the urban transit area.  Likewise, the fare paid within the urban transit area amounts to 10% of that overall cost.  Ms. Gardner disagreed with Councillor Bloess’ reasoning that the fares are comparable when you take into account the type of service being offered, the time of day one uses it, and the costs of providing that service.

 

Donna Lynn Ahee, Secretary Treasurer, Amalgamated Transit Union, Local 279 asked the Committee to re-consider providing an opportunity to do an in-house bid.  She advised they were very successful the last time around, providing an in-house bid that was $7 Million cheaper, and they would like the opportunity to do that again.  She expressed concerns about the number of rides that are left unfilled, and she believes that they would be able to provide more service for the same amount of money that the City is paying out right now.  She also requested that the RFP, when it goes out, include rating criteria that does not disadvantage an in-house bid.  She explained this has been a problem because despite the fact they provided a lower bid, the rating criteria were such that it would not allow them to include certain cost saving advantages, such as GST rebates or the ability to save on dispatch services, in their bid because it was declared to be unfair to private bid contractors.  Further, part of that $7 Million in savings included monies that could have been leveraged from the provincial government, who at the time was interested in providing infrastructure funding.  In total they offered $4.5 Million of real and direct savings and the potential for additional savings through government grants, none of which they were permitted to include in their bid because of the rating criteria.  The ATU recognizes that some councillors were sceptical about the in-house bid in the last process, and questioned whether or not the bid was audited according to the standards, and whether they could actually deliver on the promises they made.  Ms. Ahee assured they could deliver and informed the Committee, by way of example, that in Saskatoon the Para Transpo Services were brought in-house from the contractor on the stipulation that they would be using the same funding formula and package as what was previously provided to the contractor, and they were extremely successful, accomplishing not only union ideals with respect to employee working conditions and contract negotiations, but also providing an increased level of service at lower cost (the same cost to the taxpayer) because they were not making a profit margin and were able to re-invest all those monies saved into more Para Transpo Services for the customers there.  She also noted a KPMG study of ten years ago that looked at the costs of Para Transpo and conventional service and suggested, among other things, that to find efficiencies and to treat members of the disabled community as first class citizens with the same transportation rights as every other public citizen in Ottawa, the integration of services should be better examined. 

 

Responding to questions from Councillor Cullen, staff clarified that they did not contemplate the possibility of permitting an in-house bid at this point in time because of an agreement that was signed in June 2005 between the City and the Local ATU 279 with regards to how subsequent RFPs would go out.  There was no discussion in that document with regards to in-house bids in the future, but there was a series of elements in that agreement to deal with how the current employees of the Para Transpo Group / First Bus Group, who are incidentally 279 members, would be treated if there is a subsequent RFP, and there was a lot of language around what sorts of requirements would be put in place for future RFPs and around successor rights.  Staff advised that if Committee so wishes, they could come back with a report dealing with the inclusion of in-house bids, but they noted the timeframe for decision-making is rather short.

 

In response to questions from Councillor Legendre, staff explained that nothing in the process needs to be changed in order to allow for an in-house bid, but that there is a timing element involved as the document has to go out mid-June so that service is on the street for July 1st of next year, meaning that the respondents would need to prepare a package quickly.  When asked by Councillor Legendre, Ms. Ahee responded that she does not believe this to be a problem.  She further added that one of the concerns that will likely be raised, which is the reason the ATU brought this issue forward to Committee, is the need for OC Transpo to ensure that employees who are in charge of evaluating the bids are not also involved in the bidding process.  Staff noted that, in terms of managed competition, it is really quite a complex and lengthy process, which, last time around involved consultants and procurement staff, and making sure that everything was fairly done.

 

The delegations being heard, Committee members posed questions to staff.

 

Responding to questions and concerns from Councillor McRae, staff provided the following clarifications:

·         The cost per trip to the City is approximately $25-30, depending on the type of vehicle. This analysis would be done during the bidding process, selecting the type of vehicles that would meet the needs of the customer. 

·         The service has been in operation with the non-accessible cabs for a number of years now, and is actually not the least expensive; the sedan service being provided by First Bus is significantly cheaper, coming in at about $18 per trip compared to $24 per trip roughly. 

·         Staff reiterated that the reason they did not contemplate an in-house bid as such was because of the recently signed agreement, and they reiterated as well that if so directed by the Committee, they could come back with a report to take a look at the figures associated with an in-house bid, to explain the situation during the last process and to look into the experience in Saskatoon and elsewhere.

 

Councillor Cullen proposed the following motion:

That staff report to Transportation Committee on the process to be used to accommodate and evaluate an in-house bid to provide Para Transpo Service.

When asked by the Councillor, staff confirmed that Para Transpo service is simply based on disability, and that customers are not income tested.  The concept is that the City provides a subsidized service for the disabled who cannot access conventional transportation and thus use private sector taxis.  The Councillor provided Committee members with copies of a motion to be considered later in the day at a joint meeting of the Seniors Advisory Committee and the Accessibility Advisory Committee dealing with Para Transpo service.  He felt that the report now before the Transportation Committee allows for that discussion on service delivery, but members of the Committee and the Acting Chair Doucet felt it was a discussion for another day, and was not in keeping with the subject of this report.  Councillor Cullen pointed out this issue is very important to the advisory committees, and he wanted TRC members to be aware of it, but he agreed to stand down this discussion and bring it back later.

 

In response to questions from Councillor El-Chantiry, staff provided the following clarifications:

·         Everybody who is disabled and unable to use conventional transit due to disability, regardless of income, will qualify for the service.

·         The cost of Para Transpo service is based on distance and is determined through a zoning system known as the Urban Transit Area (UTA).  The cost is averaged out by considering the average distance of a trip within the UTA to a mid point, and the further out from the UTA one travels, the more the cost increases.  The total cost of providing that trip is borne by the taxpayer and the user, and the decision has been made for the user to pay 10% of that overall cost.

·         Staff acknowledge that issues persist with respect to customer requests for service and missed trips and point out that the issue is availability of resources to meet the demand, particularly in the morning when service runs out quickly and refusals occur because there are no additional resources.  There is often a backlog of calls at 9 a.m. in the morning and although staff are answering as many calls as possible on the17 phone lines, which are often times busy for up to an hour or more in the mornings from Monday to Friday, some calls will be missed and not all trips can be accommodated.  Other customers may simply give up calling or not call at all due to frustration.

·         Staff has talked to Bell Canada and looked at the system for a solution to help it handle the large volume of calls it has to handle at one time.  An Interactive Voice Response (IVR) System has been installed and is now being tested where customers would be able to phone the automated system and get right into the scheduling of the trips to find out where their trips are, to cancel their own transportation, to lighten the load on the phone lines.  Although this may require a long education process, staff feels it will assist in the call time.

·         Para Transpo has a contract with Coventry Connection right now using the wheelchair accessible cabs, i.e. the side entry cabs.  They will handle the majority of wheelchairs with the front passenger seat removed, which the London Cabs will not because of the sizing issue, and will be using more of them as they become more available within the City of Ottawa.

 

In response to questions from Councillor Legendre, staff provided the following details:

·         Staff confirmed that the percentages used in Slide 10 of their presentation represent the amount of van service and sedan service, not the cost.  The First Bus, sedan service and the taxi contract provided by Westway totalled is 27% of the service provided; the accessible taxi is 3%.

·         The contract will be awarded based on the company that provides a cost effective vehicle or mix of vehicles that suit customers’ needs.

·         Staff now have a small number of accessible cabs they can use and have determined that it is an efficient way of providing service, so that will be considered during the tender process.  Staff has the flexibility of significantly increasing the taxi services within the existing taxi contracts and they do not expire until 2009, so depending on the numbers that come in during the bid process, it has the flexibility of lowering certain contracts and increasing others to meet the needs of the customers as well as the taxpayers.

 

Responding to questions from Councillor Bloess, staff provided the following clarifications:

·         With respect to the taxi script versus taxi chit program, the City would pay the discount.  It is a saving to taxpayers and it will provide a different level of service as it will be direct service from a cab company, no shared ride, which makes this a premium service and they will be paying more for it and it will take trips off Para Transpo for those who can afford it.

·         Staff has had some consultation with the taxi industry and has determined that 40 additional accessible plates are coming in January.  Staff is also looking to see what can be done to improve the quality of service for Para Transpo customers as well as the taxpayers and will use that to increase the availability of accessible cabs for other purposes within the City.

·         Staff is also looking at their managerial aspects and skills as well as those in the taxi industry in order to improve communication.  The industry is willing to increase their capabilities in terms of enhancing their dispatching capacities to have improved management, and staff is supporting them in that regard.  With respect to the dispatch system, staff is currently using the IVR System that is connected directly to the phone system into the Trapeze System so that it will provide more flexibility to customers and mitigate some dispatching problems.

·         There are currently four contracts and managers taking care of those contracts.  Determining how effective the service is generally depends on what trip goes to what vehicle, with the customer and the taxpayer in mind.

 

In considering the motion proposed by Councillor Cullen, concerns were expressed about the timing involved in coming back with a report and still allowing the RFP process to move forward on time.   Councillor Legendre suggested that a more efficient use of time would be for Councillor Cullen to modify his motion so that it is a direction to staff.  Councillor Cullen felt the City could not refuse an in-house bid, but felt that the issue is more about the RFP evaluation criteria, and thus felt that Committee needs a report to come back on that before proceeding.

 

When asked by Councillor Legendre, staff responded that they could come back quickly with a report but noted there are budget implications.  With respect to the criteria, staff acknowledged that there are some differences between in-house bidders and the others that cannot be strictly accommodated in terms of comparison.  For example, GST requirements are different for in-house contracts. A fairness approach, usually via a fairness commissioner, is required in such instances to ensure that evaluations are equal and fair and staff would need to take that consideration if accepting an in-house bid.  Staff would aim to bring back the report for the last meeting in June.

 

When asked by Councillor Thompson as to whether the timeframe associated with this report would impact the timeframe at all for a bid, staff explained that the request for tender should go out mid June to guarantee delivery of new vehicles for July 1st of next year.  The delivery schedule is somewhere between six and nine months for specially equipped wheelchair accessible vans.  Upon further thought, Acting Deputy City Manager Hewitt felt staff could take a look at this, and advise Committee as early as two weeks from now on how they would proceed.  He suggested the possibility of a parallel process whereby staff would go with request for qualifications for external bids while continuing to work on the internal bid issues, and then bring the two together and move forward from there.

 

Moved by Councillor A Cullen:

 

That staff report to Transportation Committee on the process to be used to accommodate and evaluate an ‘in-house’ bid to provide Para Transpo service.

 

                                                                                                            CARRIED

 

The Committee then considered the report recommendation, as amended by staff’s technical amendment and by the foregoing resolution.

 

That the Transportation Committee approve and recommend to Council:

 

1.         The service delivery concepts and procurement methodology detailed in this report, noting that the bid solicitation document will be released for Para Transpo service in June 2006;

 

2.         That the Deputy City Manager, Public Works and Services be delegated authority to approve a contract award based on the process identified in this report for service provision beyond June 2007; and,

 

3.         That a report be brought to Committee and Council in the fourth quarter 2006 which deals with the results of this procurement process, together with further investigation into the possible implementation details of a Taxi Script program.

 

4.         That staff report to Transportation Committee on the process to be used to accommodate and evaluate an ‘in-house’ bid to provide Para Transpo service.

 

                                                                                                                                                CARRIED, as amended