City Council Report

City Council Meeting: November 10, 2009

Agenda Item: 3-B

To: Mayor and City Council

From: Carol Swindell, Finance Director

Subject: Taxicab Franchising RFP Evaluation Factors

Recommended Action

Staff recommends that Council review and provide feedback on the taxicab franchise request for proposals evaluation criteria and process.

Executive Summary

At the introduction and first reading on June 30, 2009 of an ordinance establishing franchising to regulate taxicab operations, Council requested information on the criteria for franchisee selection prior to issuance of the competitive Request for Proposals (RFP). This report summarizes the RFP process, details the criteria the committee will use to develop its recommendation and provides Council the opportunity to clarify or provide input on the criteria and/or process. There are no budget actions necessary as part of this report, however, the resulting franchise(s) may have a financial impact that will be detailed at the time the results of this RFP are brought to Council.

Background

In October 2006, the Task Force on the Environment recommended to City Council that it direct staff to develop an ordinance initiating a franchise system and awarding franchises only to taxi companies whose fleets met specific emission and mileage standards. At their February 10, 2009 meeting, City Council reviewed a study by Nelson\Nygaard related to taxicab operations in Santa Monica and directed staff to return with additional information related to the operations, franchise system and alternatives to franchising. At the March 3, 2009 Council meeting, Council directed staff to move forward with the establishment of a taxicab franchise. On June 30, 2009, Council adopted an ordinance establishing a taxicab franchise system and provided direction on including various elements in the evaluation process, such as a preference for local providers, depth of senior discounts and benefits provided to drivers.

Discussion

As required by Ordinance No. 2292 (CCS), the City will utilize a competitive RFP process to select at least one but no more than eight operators to which taxicab franchises will be issued. Each operator will be required to operate a minimum of twenty-five vehicles. The total number of vehicles authorized to all operators will not exceed two hundred fifty.

Request for Proposals notifications will be sent to all taxicab companies currently operating in Santa Monica or that have franchises in adjacent cities. All proposals received will be evaluated by a committee composed of representatives of the Finance Department, Police Department, City Manager’s Office, and outside jurisdictions that currently manage franchised taxicab operations. Following the review, the committee may request clarifying information from taxicab companies in writing and/or via an interview of short-listed firms. The committee will review all proposals against the criteria established in SMMC 6.49.040 and listed below. The committee’s recommendations will be presented to Council for Council for its vote on the award of the franchise(s).

Proposals will be evaluated based on the following criteria:

· Proof of financial stability, demonstrating ability to provide taxicab services in compliance with City ordinances and regulations and the bidder’s proposal.

· Experience in providing taxicab services during the last ten years, including demonstrated quality of service and safety.

· Character of operator and drivers, including verification of insurance; record of violations by the bidder or bidder’s drivers of federal, state or local law, litigation history, and compliance with rules and regulations relating to taxicab operations, particularly safety operations.

· Proposed business and management plan.

· Extra services available to the public, including proposed discount fares for senior and mobility impaired customers.

· Fleet composition, including annual minimum number of vehicles meeting ULEV/SULEV/LEV and other low-emission standards, use of alternative fuel vehicles and the age and condition of the proposed fleet.

· Driver training and qualifications, testing, supervision and life/health/disability benefit plans.

· Operator/driver financial relationships including leasing, fees, memberships and all other relationships.

· Operator’s business location and use of a centralized dispatch system, including a local preference.

Financial Impacts & Budget Actions

A financial impact analysis will be presented as part of the recommendation to award a franchise.

Prepared by: Pamela McGarvey, Revenue Collection Administrator

Approved:	Forwarded to Council:
Carol Swindell Director of Finance	P. Lamont Ewell City Manager