HomeMy WebLinkAboutR-2003-023 Access Paratransit, Inc. Contract AmendmentA RESOLUTION
RESOLUTION NO. R-2003- 23
authorizing and directing the City Manager and the
City Clerk of the City of Yakima to execute an
amendment to the Dial -A -Ride Contract with Access
Paratransit, Inc.
WHEREAS, the City currently provides and intends to continue to
provide complimentary paratransit transportation services in Yakima to persons
with disabilities through a contracted program known as Dial -A -Ride, as
required by the Americans with Disabilities Act (ADA); and,
WHEREAS, Access . Paratransit, Inc., currently provides required
paratransit services in the City of Yakima and pursuant to the current Dial -A -
Ride contract, has requested a rate increase to cover increased costs; and
WHEREAS, Access Paratransit, Inc., has provided sufficient evidence to
justify a rate increase of 7.98%; and
WHEREAS, it is in the best interest of the City to continue providing
complimentary paratransit. transportation services in Yakima to persons with
disabilities through its Dial -A -Ride program; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
YAKIMA:
The City Manager and the City Clerk of the City of Yakima are hereby
authorized and directed to execute the attached and incorporated Agreement
Modification No. 1 for the purpose of providing Complimentary Paratransit
Transportation Services.
ADOPTED BY THE CITY COUNCIL this 18th of February 2003.
ATTEST:
14)ts 4
City Clerk
Resolution Access rate increase amendment/ms
Mary P1
, Mayor
AGREEMENT MODIFICATION NO. 1
PROJECT: City of Yakima Bid No. 10112
DESCRIPTION: Complementary Paratransit Transportation Services
"Dial -A -Ride"
VENDOR: Access Paratransit, Inc.
This agreement modification shall amend and be incorporated into the contract dated December 10, 2001
between the City of Yakima and Access Paratransit, Inc. The parties agree that Section 3 of the Contract
shall be amended to read as follows:
Percent
Description Old Price New Price Increase
Ambulatory -$4.07149 $10.91 7.98%
Non -Ambulatory $15.08 7.98%
Except as expressly modified herein, all other terms and conditions of the contract dated December 10,
2001 shall remain in full force and effect.
CITY OF YAKIMA AUTHORIZATION:
City Manager, R. A. z ; s, Jr.
CCEPTANCE:
Access Paratransit, , nc.
ATTEST:
xf
8 -4^
'®�ca
City Clerk
City Contract No. 2003-18 6001�1L
City Resolution No. R-2003-23
'�r,t.ai l 6x003
Date
Date
Date
0-K S
FINANCE DEPARTMENT MEMORANDUM
TO: Members of the City Council Transit Committee
FROM: Tim Jensen, Treasury Services 0
SUBJECT: ACCESS PARATRANSIT rate increase
DATE: U2/ 1U/ 03
cc: Rita Anson, Finance Director
The Finance .Department has completed a review of information submitted by ACCESS
PARATRANSIT, INC (AP) relating to a rate increase request. A rate increase of 19.96% has been
requested. The information provided by AP included an excell worksheet (attachment 1) and
profit and loss reports for 2001 & 2002 produced by Quick Books, (Quicken) (attachment 2). The
Finance Department has the following observations:
• In General: None of the information submitted by ACCESS PARATRANSIT has been
compiled, reviewed or audited by an independent CPA. Also , the information supplied for
our review does not include a Balance Sheet or Statement of Cash Flows; nor is there any
supporting documentation from AP for the data presented on their rate request worksheet
(attachment 1) particularly 2003 Budget amounts, or P&L amounts. We cannot verify these
numbers other than through inquiries of AP staff and attempting to tie expense numbers on
the rate request worksheet to the Quick Book reports. AP staff was forthcoming with verbal
information pertaining to many of our questions.
• Labor Costs: Twenty-two percent of AP's rate increase relates to cost of living adjustments in
wages. The State Legislature previously announced their intention to make adjustments in
minimum wages regularly.
• L&I cost: We compared 2001 & 2002 expense amounts from the Quick Book P&L reports to
the rate increase spreadsheet prepared by AP and noted agreement; and a 24% increase from
2001 actual to the 2003 budget. (The actual increase from 2001 to 2002 was 11%). See
accompanying spreadsheet for details (attachment 3). These increases were unannounced
and unexpected.
• Auto Maintenance: Auto related expenses amount to 26% of the increase requested. We
noted that the costs presented on AP's rate increase spreadsheet for 2001 were materially less
than the amount on the Quick Books P&L reports. (AP staff indicated there was an employee
theft problem in 2001 that has since been resolved. AP staff said the reason the amounts
differ between the P&L and rate increase spreadsheet they submitted is that pilferage
amounts have been eliminated from the rate increase spreadsheet). Approximately 26% of
AP's total increase request is due to auto maintenance using numbers from their rate request
worksheet. AP is also providing for additional maintenance costs due to anticipated
increases in fleet size in 2003; AP says they need to increase fleet size to accommodate the
City's new requirement for 30 -minute rather than 1 hour "headway" times for patrons.
Transit staff, observes that headway issue is not yet implemented and further that it will not
effect AP's fleet size.
• Rent and Facilities expense: Access is indicating a 56% increase from 2001 actual to 2003
budget for these line items. This represents 16% of their increase request. We noted that rent
and facilities costs on the P&L agreed with the rate request spreadsheet for 2001, but amounts
for 2002 on the rate request spreadsheet were materially higher than the P&L report. Access
staff said that 2002 numbers on the rate request spreadsheet were estimates.
• Fuel Costs: Fuel
costs represent approximately 7%
of AP's proposed increase. We noted that ai
2002 actuals on the P&L report were much higher than the rate request worksheet. Also,
Access staff is speculating a 21 -cent per gallon increase in fuel in 2003; However AP is not
budgeting an increase in mileage from 2002 to 2003 even though, in their equipment request,
they said they are buying additional vehicles.
• Insurance: We noted a three -fold increase in these costs from 2001 to 2002 P&L. This
represents approximately 20% of the increase request. The P&L reports supplied by AP
appear to be overstated when compared with the rate request worksheet in 2001. (This could
be due to a misclassification, AP staff was not sure). We are aware of the dramatic increases
in this market since 9/11/2001.
• Other expenses: Other expenses represent 9% of the total request and are not individually
material to this request.
In conclusion, we believe those items in AP's rate increase request which appear to have been
unforeseen at the time of the bid in 2001 are L&I costs (2.08%) and Insurance (4.0%). A CPI increase
of 1.9% may also be reasonable. The total of these components is 7.98%, (not the 5.6% as originally
reported to the Committee). The philosophy and methodology for these calculations has not
changed (see attachment #3) but an unfortunate arithmetic mistake produced the 5.6% number.
The Finance Department wishes to remind the readers that it has not had the opportunity to review
the detail underlying the aggregate numbers presented on the attachments for accuracy.
Note: Percentages and analysis were calculated using ambulatory cost amounts. We believe this is
materially accurate since over two thirds of the rides provided are for ambulatory clients
Attachment 1: ACCESS PARATRANSIT rate request worksheet.
Attachment 2: ACCESS PRATRANSIT Quickbooks P&L for 2001 & 2002
Attachment 3: Calculation of percentage prepared by city staff
2
ACCESS PARATRA1 JSIl, INC.
A Company on the Move -
December 24, 2002
Ms. Susan.Ownby
City of Yakima
City Transit Division
2_01 FnuitvaleBlvd,
Yakima, WA 98902
Attachment #1
Dear Ms. -Owriby: •
. We are requesting an increase in the allowable rate charge for.services provided. under contract •
RFP 10112,•provision price increase as per Addendum Number 1 attached to the contract.. •
Rates Requested:
Ambulatory: - $12.05
Non -Ambulatory: $ I5.91
The rate increase is requested based on the following data and information.
Consumer Price Index:
In. addition to the normal increases in expenses typically reflected in -the Consumer Price Index
(CPI), the following additional factors are noted.
Labor Increases:
The State of Washington minimum labor rate has increased to $7.01._ This will cause a significant
increase in labor costs.
Department of Labor and Industries Increase:
As mandated by law, we have had to adjust our L & I expenditures. A significant increase was
experienced from 2001 to 2002. A general rate increase that will take effect in 2003. increased
costs approximately 18%..
612 North Sixteenth Avenue, Yakima Washington 98902
509-248-2229
Will Kelley, Chief Operations Officer
will@accessparatransit.com
Attachment #'1
Employee Benefits:
From 2001 to.2003 we have experienced nearly a I00% rate increase in the cost of employee
benefits. We have done extensive research in the market and feel that the coverages and benefits
are maximized with the minimum of expense. Includingemployee participation we have seen
these increases to our company.
Auto Expenses:
Overall costs to operate vehicles are increasing faster than the CPI. As an example, body repair
costs have risen at a rate of 15% each year for the last four. This translates to an overall 52%
increase in body repair costs. Parts, tires, and large part (transinission, engine, rear -end) repair and
replacement have gone up by nearly 12%.
Rent Increases:
Office rental costs have increased by approximately 12%. Unexpected costs, additional needed
customer service office space and telephone upgrades added approximately $14,000.00 in
expenses. These costs will be amortized across the 2003 contract period.
Gas Price Increase:
As provided by .the contract, we are requesting a rate increase of .21 cents which is included in
the rates of $12.05 and $15.95 as quoted and noted above. An analysis of fuel costs from the prior
year to present clearly shows that fuel costs have risen by the amount noted. With the prospects of
fuel embargos related to potential conflict inIraq .and the current war -on terrorism, this request is
not only reasonable, but likely too low. A copy of ourr analysis is available upon request.
Insurance Price Increase:
As provided by the contract, and discussed at length in pre -award and post -award meetings, rising
insurance costs have been a debilitatingfactor in thesuccessful performance of the contract.
Access Paratransit appealed for a rate increase shortly after the award of the contract due to
abnormal increases in the insurance rates. This initial request was due to. the September 1 lth
terrorist attack and the dramatic downturn of the stock market that occurred during the last quarter
of 2001. We were asked to wait until. the 2002 CPI request to ask for additional funding for this
section of the contract. A short overview of the sequence of events will help establish the need for
a rate offset for this unanticipated expense.
The Dial -a -Ride contract was to have expired November 6, 2001. Bid requests, were initially
thought to be submitted for bid by August 15, 2001.
Insurance markets, already limited with only four available markets quoting, were approached in
Julyand asked for indications that could be used for quoting purposes. It was understood that
quotes are valid for 30 days and could change after the quote expired. Under normal
circumstances, an agent or broker could anticipate at least one extension of a quote after the .initial
612 North Sixteenth Avenue; Yakima Washington 98902
-509-248-2229
Will Kelley, Chief Operations Officer
will@accessparatransit.com
Attachment #1
• quote expiration. Access Paratransit developed rates with the.indications and quotes available
during the early partAugust. • The intention was to add the.newly required coverage at contract
initiation. As is recalled, the November contract initiation was postponed until January 1-. This.
created an ,unfortunate confluence of events. September l l th. occurred with reinsurance :markets
already negotiating for the January renewals. Reinsurance markets took a very. damaging blow. as
a result of the terrorist attacks butwere already ailing due to a variety of international losses_ and ,
. stock market reversals. It, is easy .to understand why rates generated early in the :contract cycle rose
dramatically as a result of these"events. The expenses noted in the 2001period on the attached •
spreadsheet were the figures represented as the renewing, quote for the 2002 policy term: After
September 1.1 th and prior to. the insurance purchases for 2002, the rates increased by,the amounts
noted. The anticipated rates for the.2003 quotes and are.not the actual -figures. We do not
anticipate the rates decreasing from. the numbers noted. If anything, we anticipate the numbers to --
increase from those noted.
An unanticipated figure that is represented •on the. spreadsheet is the software and technical support
figure. We have been working with the software company to. improve the quality of reports
required by the city. While the figure is dramaticaiiy lower than the software package
recommended by the City of Yakima, it does represent a figure that is three times the budgeted:
amount for the 2002 .contract period. As of this time, the software package purchased for Dial=A-
Ride contract purposes is meeting 98°10 of the designed performance. • We anticipate the final •
"bugs" to be resolved within the next 30 ,days.
Training Costs:
New state law mandates a higher level of training than the training levels anticipated at the time of
contract. As an example, any party transported with a child musthave that child secured in an
approved child seat. While this event is somewhat rare, vehicles and drivers: must be .prepared for
that eventuality. Classroom training for this one class alone may take as much as 30 hours: of
classroom training for the correct operation of child restraint devices.
With the above facts in mind, Access Paratransit, Inc. is asking for the "per ride" increases noted
above. Please feel free. to contact us with any questions you may have.
Thank you for your attention to the above and attached.
Will Kelley,
Chief Operations -Officer/General Manager
612 North Sixteenth Avenue, Yakima Washington 98902
509-248-2229
Will Kelley, Chief Operations Officer
• will@accessparatransit.com
Attachment #1
Access Paratransit, Inc.
CPI Data Sheet 12/16/02
CPI DIAL -A -RIDE YAKIMA All figures are computed on an annual basis
Projected
1 LABOR
2001 9/11/01 2002 2003
MIN. WAGE INCREASE -MANDATED
LABOR COSTS AT $7.01 Annual (DRIVERS ONLY)
,800.00 $59,305.00 12% of gross wage exp to represent training &
LABOR COSTS AT $6.90 (DRIVERS ONLY) $51
L & I $53,066.00 &non-commisssioned driver hours
EMPLOYEE BENEFITS $13,590.00 $15,030.00 $26,291.89 estimated driver & office L&I payments
$7,690.00 $12,570.00 $14,046.00
SUB TOTAL LABOR $73,080.00 $80.666.00 $99,642.89
AUTO MAINT.
EQUIPMENT REPAIR (SEE NOTE BELOW)
ADDITIONAL EQUIPMENT::
DUE TO NEW TIME RESTRA/NTS
INCREASED COSTS FOR CONTRACT INSPECTIONS
SUB TOTAL AUTO MAINT.
$38,000.00
$38,000.00
2001adjusted for pilferage, 2002 less pur
$40,400.00 $54,415.69 chase of autos, 2003 est increase for 17 vehicles
$14,800.00 $12,560.00
$750.00
$55,950.00
$3,000.00
$69,975.69
RENT $19,245.00 $19,200.00 $21,600.00
FACILITIES COSTS $15,929.00 $23,040.00 $33,330.00 office repairs, telephone,
SUB TOTAL RENT & FACILITIES COST $35,174.00 utilities
$42,240.00 $54,930.00
FUEL COSTS FUEL BASED ON 27736 GALLONS USED IN 2002
$39,000.00 $41,604.00 $47,429.00 CURRENT FUEL @ 1.50 PER GAL
INSURANCE AND AN INCREASE IN 2003 TO 1.71 PER GAL
BOND $1,800.00 $6,000.00 $6,000.00
EXCESS LIABILITY $2,800.00 $6,300.00 $7,000.00
GEN. LIABILITY $1,300.00 $9,100.00 $9,300.00
AUTO LIABILITY $18,000.00 $24,000.00 $26,000.00
PROPERTY $560.00
SUB TOTAL INSURANCE $24,460.00 $4$x.00 $610.00
5,980.00 $48,910.00
SOFTWARE UPGRADES & TECH. SUPPORT $2,500.00 $18,000.00 $10,000.00 PROJECTED DECREASE IN NEED.
INCREASED SAFETY STANDARDS & TRAINING
TOTALS - SELECTED ANNUAL COSTS
$1,100.00 $2,700.00 $4,500.00 INCREASE IN SAFETY TRAINING, REQUIERED CLASSES, PRE EMPLOY DRUG AND ALCOHOL
$213,314.00 CRIMINAL BACKGROUND CHECKS.
$287,140.00 $335,387.58
Attachment #1
Access Paratransit, Inc.
CPI Data Sheet 12/16/02
December, 2002 numbers are quotes for the
2003 policy term.
2001 EQUIPMENT REPAIR FIGURES ARE UNRELIABLE ACCURATE REPAIR RECORDS UNAVAILABLE
RIDES PROVIDED
59492
60550 60550
COST BASIS PER RIDE
LABOR $1.23 $1.33 $1.65
AUTO MAINT. $0.64 $0.92
RENT & FACILITIES $1.16
FUEL $0.59 $0.70 $0.91
INSURANCE $0.66 $0.69 $0.78
SOFTWARE UPGRADES & TECH. SUPPORT $0.41 $0.30 $0.87
$0.02 $0.30 $0.07
INCREASED SAFETY STANDARDS & TRAINING
E0.02 E0.04 S0.07
$3.59
Increase in Cost Basis per ride between 2001 & 2002
Increase in Cost Basis per ride between 2001 & 2003
CPI includes authorized extended Dia -A -Ride service beyond city limits up to 3 miles.
$4.74 $5.54
$1.16
$1.95
FEB -04-2003 TUE ui:F3 rrl YF it1ti ruoL1t, WUNI1O.
rnA fru. uuo u i JucJu-
5:21 PM Access Paratransit Inc.
01/30/03 Profit & Loss
Cash Basis January through December 2001
Ordirrary IncomeiExpense
Income
DAR (DAR Income)
AME (Ambulatory Riders)
Chair (Wheetchair Riders)
Total DAR (DAR Income)
Shuttle Service
Private Pay
Total Income
Jan - Dec 01
. 395, 667.50
283.625.32
679,292.82
- 5,715.00
16,082.92
701,090.74
Expense
Uncategorized Expenses 2.603.07
Advertising 963.68,
Auto Fuel 54,181,2
Auto- (Auto Maint Expense)
Lease -705.21
Parts - 44,355 27
• Maintenance 17.499.63
Lids 3 Radios 2,281.39
Total Auto- (Auto Maint Expense) 63,471.02
Bad Debts 75.00
Bank Charges 383.31
Contract (Contract Labor) 955.00
Depreciation Exp 9,079.00
EL (Equipment Leases)
Copier 3,687.67
Radio 1.480.05
Computer 6.47
Total EL (Equipment Leases) 5,174.19
Finance Charges
General Supplies
Insurance -Auto
Insurance -General
Life & Disability Ins
Medical (Medical Insurance)
Total Insurance -General
2,132.99
693.94
15,294,
2216
7,687.577,709,73
Interest Expense 3,076.90
Licenses & Fees 3,688._6
Maintenance -General 6,745.22
Meals and Entertainment . 187.25
Misc. Expenses 1,703.33
Office Supplies 5.456,34
Outside Services 100.00
Penalties 1.781.7 2
Postage 1,188.03
Professional Fees 9,110.00
Rent Expense 19,245.41 ✓
Repairs Office Z D79.06 )
Salaries & Wages
Administration 54.491.18
Wages (Wages & Commissions)
Maintenance.
ParaiContract (Paratransrt & Conrract Wages) 9,450.08
Shuttle (Shuttle Payroll Expense) 3.219.25
Office 74,65.37
DAR . . 198.274.03
Sic( Pay - Payroll
Total Wages Wages & mmissicrsl 317.024.60
Tct31 Salaries a Wages
State Local Taxes
371515:)8
Attachment #2
race 1
t-Cn U4LUU3 1UC. U1' 1J 111 1111111111 vuuly nvi. u
5:21 PM Access Paratransit Inc_
01/30/03 Profit 8, L.Oss
Cash iasis January through December 2001
Taxes -Payroll
L & I Tax Expenses
FUTA Tax Expenses
FICA Tax Expense
ESC Tax Expenses
Total Taxes -Payroll
Telephone
T & E Expenses
Uniforms - Employees
Utilities
Total Expense
Net Ordinary Income
Other Income/Expense
Other Income
Sate of Vehicles
Insurance Proceeds
Total Other Income
Other Expense
5H Loan
Donations
Total Other Expense
Net Other income•
Net Income
Jan - Dec 01
13.59426
1,451.71
31,550.55
13,451.664
Attachment #2
60,148.26
7.918.531D
775.66_
352.71
5.931.270
668.088.31.
33,002.43
1.700.00
5,424.31
7.124.31
540.00
540.00
6,564.31
29.5.86.74
?aye
FEb7U4—ZUW IUC U1 . iJ r'ii Itinlln rUDLIV wurtw criA iiv. u
4:49 PM
01/30/03
Cash Basis
Access Paratransit Inc.
Prot & Loss
January through December 2002
Jan - Dec 02
Ordinary Income&Expense
Income
MAA (MAA Trip Monies) 6,583.20
L&I (LEI Trip Income) 240_00
Interest Income 1.16
OAR (DAR Income)
'Trip Monies (Trip Monies) 17.154.11
Book Sales -2,720.00
AMB (Ambulatory Rider) 417.348.96
Chair (Wheelchair Riders) 261,994,95
Total DAR (DAR Income) 893, 7 78.02
Total Income 700,602.38
Expense
Dispatch (Dispatch equip, maint, supply)
Relocation Expense (Relocation Expenses of Exec)
Casual Labor
Miscellaneous Expenses
Computer Equipment
Uncategori2ed Expenses
Advertising
Auto Fuel
Auto- (Auto Maint Expense)
Parts
Maintenance
Lifts 3 Radios
Total Auto- (Auto Maint Expense)
Bad Debts
Bank Charges
Contract (Contract Labor)
Depreciation Exp
Driver Training
Background Check
Drug Testing
Driver Training - Other
Total Driver Training 3,6E8.57
161.10
482,40
2,404.00
4.30,41
2,000,00
245.04
1,611.96
41,953,69
29,299,36
10.501=59
1,818.10
41.419.05
10.00
913.38
454,32
10,365.00
320.00
2.142.68
1,195.99
EL (Equipment Leases)
Copier
Software
RentaCenter
Total EL (Equipment Leases)
Finance Charges
General Supplies
Insurance -Auto
Insurance -General
Liability
Life & Disability Ins
Medical (Medical Insurance)
Insuranc —General - Other
Total Insurance -General
Interest Expense
Licenses 3 f=ees
Maintenance -General
Meals and Entertainment
Misc. L.xpenses
Office Supplies
Computer'ecn Support
Office Supplies - Other
Total Otfcce Supplies
Penalties
Rost -age
4.026.18
1,179.00
-697.59'
4,507.49
181 52
992.56
• 41.428,46
435.53
443.40
11,8=_67
67
14735
12, 849.06
3777.42
4.271.6.8
7,296.05
4.191. 68
-t 234
0,T4300
9.759.99
13.90299
1 347._3
..14.7 35
Attachment #2
etti-U4-LUU3 IUC u1.13 nl lnnlun ruuuv rvvni>L
1 1111 11V, V Vv N 1 vVwV
4:499 PM Access Paratransit Inc.
01/30/03 Profit & Loss
Cash Basis January through December 2002
Professional Fees
Aorounting
Attachment #2.
Jan - Dec 02
6,355.00
Total Professional Fees 5,255,00
Rent Expense 19.950.00
Repairs Office • 1,7E7.39
Salaries & Wages
Maintenance Salary 8,400,00
Administration 49,045.66
Wages (Wages & Commissions)
Adminstmtcn 250,00
Maintenance 25,115.45
Payroll -Salary 1,006.53
Para/Contract (Paratr3rtsit E Contract Wages) 6,171.41
Shuttle (Shuttle Payroll Expense)
Office 105.827.71
DAR 190,354,58
Tata; :^:azj'es (Wages & .Ca i_'s or
=) 328,725.68
Total Salaries & Wages
State 8 Local Taxes
Taxes -Payroll
L 8 I Tax Expenses
FUTA Tax Expenses
FICA Tax Expense
ESC Tax Expenses
Total Taxes -Payroll
Telephone
T 3 E Expenses
Uniform - Employees
Utilities
386,171.34
3,23246
12,523.76 —./.3;03p
1,765.36
?9,54.4.31
15,097,36
58,930,79
9,155.17 0
721.64
1,242.43
5,210,31 T�
Total Expense 694,024.31 l/
Net Ordinary Income
Cther Income/Expense
Other Expense
Contributions
Donations
Total Other Expense
Net Other Income
Net Income
6.578.07
72.00
450.00
522.00
X2`.00
6,056.07
Labor Costs: divided by equals Percent of
2003 2001 diff # of rides cost per ride divided by Increase Total increase
Wges 59,305.00 51,800.00 7,505.00 60,550 0.124 10.10 1.23%
L & I 26,292.00 13,590.00 12,702.00 60,550 0.210 10.10 2.08% *
Benefits 14,046.00 7,690.00 6,356.00 60,550 0.105 10.10 1.04%
total -labor 101,646.00 75,081.00 26,563.00 181,650 0.439 10.10 4.34% 0.22
Auto:
69,976.00 38,000.00 31,976.00 60,550 0.528 10.10 5.23% 0.26
Rent:
54,930.00 35,174.00 19,756.00 60,550 0.326 10.10 3.23% 0.16
Fuel:
47,429.00 39,000.00 8,429.00 60,550. 0.139 10.10 1.38% 0.07
Insurance:
Software:
Safety & Standards:
48,910.00 24,460.00 • 24,450.00 60,550 0.404 10.10 4.00% * 0.20
10,000.00 2,500.00 7,500.00 60,550 0.124 10.10 1.23% 0.06
4,500.00 1,100.00 3,400.00 60,550 0.056 10.10 0.56% 0.03
Total request: 19.96%
CPI: 1.90% *
These three items total 7.98%
100.00%
Rate methodology.xls02/10/2003whole increase -math
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
• AGENDA STATEMENT
Item No.
For Meeting of: February 18, 2003
ITEM TITLE: A Resolution Authorizing an Amendment to the Dial -A -
Ride Contract to Increase Paratransit Service Rates
SUBMITTED BY: Chris Waarvick, Director of Public Works
Ken Mehin, Transit Manager
Timothy Jensen, Treasury Services Officer
CONTACT PERSON/TELEPHONE: Ken Mehin / 576-6415
SUMMARY EXPLANATION:
Submitted for Council consideration is a resolution authorizing an amendment to the
current Dial -A -Ride contract with Access Paratransit. The purpose of this request is to
increase rates for Dial -A -Ride services. Access Paratransit has requested a rate
increase to cover increased costs. Only those in the following categories are
acceptable to staff for consideration: minimum wage requirements, increased Labor
and Industry rates, and higher insurance premiums.
Access Paratransit is in its second year of a three-year contract with two one-year
extension options. This is the first rate increase request since the start of this contract.
(Continued on next page ...)
Resolution X Ordinance _ Other (Specify Finance Report
Contract Mail to (name and address): Phone:
Funding Source: Yakima Transit Operating Fund -- 7.98% Rate Increase
APPROVED FOR SUBMITTAL: ,-�� City Manager
STAFF RECOMMENDATION: Staff respectfully requests Council to adopt the
resolution authorizing an increase in Dial -A -Ride service rates.
BOARD/COMMISSION RECOMMENDATION: The Council Transit Committee
recommends approval of Access Paratransit's request.
COUNCIL ACTION: Resolution adopted. RESOLUFTION NO. R-2003-23
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Access Paratransit Agenda Item
February 18' 2003
Page two
The Council Transit Committee discussed this issue at its January 30, 2003 meeting
and came to a preliminary recommendation—costs approved for rate increase consideration.
Subsequently, more detailed analysis has created the rate increase contained in this
report (7.8%). The members of the Council Transit Committee recommend this rate
adjustment be brought before the full Council for any discussion and approval.
Attached is the finance department's analysis of the rate increase request, and data
supplied by Access Paratransit for financial review. Based on last year's expense, this
increase would add approximately $50,000. Assuming similar ridership to last year,
no additional appropriation should be necessary.
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