SCMTD February 2004 Board of Directors Agendas - Santa Cruz ...

Board of Directors
Page 2
2. direct operation by the transit agency
3. a blended (brokerage) approach which typically translates to the transit agency
performing the call center / reservations / scheduling and customer service
functions. Rides are provided by contractors.
• Assuming 108,000 trips will be provided in FY 04/05, it is anticipated that the net
contract cost with Community Bridges will be $2,636,204 (not including their request
for additional funding). Direct operation is anticipated to cost $2,720,760 and a
blended (brokerage) option is anticipated to cost $2,504,074.
• Community Bridges provides various services to the community. The Transportation
Division “Lift Line” (which operates the ParaCruz service) comprises approximately
34% of the total Community Bridges revenue.
• Revenue from METRO ParaCruz accounts for approximately 52% of Lift Line’s total
revenues.
III.
DISCUSSION
At the November 21, 2003 Board of Directors meeting staff was instructed to prepare a transition
plan for the ParaCruz service from the current contract with Community Bridges to one that is
directly operated by METRO.
Background
The Americans with Disabilities Act (ADA) requires that the Transit District provide a
comparable level of service for persons unable to access the fixed route service due to a
disability. There are very specific operating requirements for paratransit service including call
response times, service delivery and reporting requirements. On July 01, 2002 METRO
contracted with Community Bridges for the provision of paratransit service called “ParaCruz.”
The contract is for a three (3) year period from July 01, 2002 through June 30, 2005.
On November 06, 2003, METRO received a letter from Community Bridges stating in part that
Lift Line (Community Bridges’ transportation division) experienced an unforeseen escalation in
costs as well as a reduced demand for ADA rides which has left that division with a budget
deficit. The rate increase proposed by Community Bridges equated to an increase in cost to
METRO of approximately $450,000 for FY 2003-2004. On November 19, 2003 another letter
was received from Community Bridges stating in part that the Community Bridges budget was
balanced, however, due to conflicting interests the only other alternatives were to grant an
immediate rate increase or METRO moving forward with a transition plan. In response, a
METRO staff assessment was conducted to investigate the operating options of: direct operation,
blended (brokerage) option or maintaining the existing contract with Community Bridges.
Operating Options
There are three (3) generally recognized methods of operating paratransit service. They are:
1. The transit agency contracting with private provider(s) for all components of paratransit
service. This includes reservations, scheduling, service delivery and vehicle maintenance.