Title
Transdev Services, Inc. Rental Car Center Bus Contract Extension (Ordinance S-44809)
Description
Request to authorize the City Manager, or his designee, to amend and extend Contract 125318 with Transdev Services, Inc. (Transdev) for the Rental Car Center (RCC) busing at Phoenix Sky Harbor International Airport (Sky Harbor) until passenger service commences on Stage 2 of the PHX Sky Train, which is expected to occur in June 2022. Estimated aggregate spending is $52 million for the term of the extension. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City contracts with Transdev to provide bus service for RCC passengers. In 2017, over 6.5 million passengers were transported between Sky Harbor Terminals and the Rental Car Center. Transdev currently provides the day-to-day operations and management of the RCC bus services, as well as stores, fuels, and cleans 108 City-owned buses that are used for this bus service. The current contract expires on Dec. 31, 2018.
This contract will be extended until PHX Sky Train Stage 2 provides passenger service, which is expected to occur by June 30, 2022. The contract terms will be amended to increase the bus and ambassador hourly rate as a result of collective bargaining agreements, and employee wage and paid sick time impacts of Proposition 206. The average age of the bus fleet is 12 years, and cost savings will be realized by allowing the use of after-market (non-original equipment manufacturer) parts, and related changes to the required maintenance of the bus fleet.
In the contract extension, Transdev commits to a detailed work-force transition plan for its employees. Transdev will make every effort to provide comparable employment in the local area to as many employees as possible. Transdev will provide career transition and out-placement services for employees who are unable to transition into other jobs.
Contract Term
The current contract term will be extended until the PHX Sky Train Stage 2 commences passenger service, which is expected to occur by June 30, 2022.
Financial Impact
The fee for services will not exceed $52 million for the term of the extension.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on June 6, 2018 by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.