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An un-cataloged item C01-00447 from Center for Urban Transportation Research Publications USF.
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REASEARCH AND EVALUATION OF THE POTENTIAL FOR PRIVATIZATION OF LYNX FIXED ROUTE SERVICES FINAL REPORT AUGUST 26, 2002 Prepa r ed for LYNX, the Central Florida Regional Transportation Authority Prepared by

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PREFACE ................................................................ :........................................... 3 . CHAPTER 1 Privatization of Fixed Route Services Overview....... 4 REVIEW OF LITERATURE .............................. .. .......................................... 4 HISTORY OF PRIVATE SECTOR CONTRACTING IN THE U .S ................ 5 AGENCY OVERV IEW OF THE CONTRACTING EXPER IENC E .............. .. 9 INDUSTRY TRENDS ........ .......................................................... ................. 11 TRANSIT CONTRACTING EXPERIENCES ........................... .................... 13 CHAPTER 2 -Analysis of LYNX Contracting Fixed Route Service 24 ANALYSIS OF OPERATING COST ESTIMATES ....................................... 24 LYNX CAPITAL PROGRAM AND COST ANALYSIS ................ : ...... ........ : .. 33 CHAPTER 3-Contracting Services l.ssues and Considerations .... 35 CHAPTER 4 -Findings and Conclusions ................................................. 49 APPENDICES ......................................................... ............................................ 53 UNIVERSITY OF CENTRAL FLORIDA TRANSPORTAT ION SERVICES SPECIF I CATIONS AND BID SUMMARY ...... ....... ................................. 54 I-DRIVE MASTER TRA NSIT AND IMPROVEMENT DISTRICT-FIRST CLASS COACH CONTRACT AND SCOPE OF SERVICES ....... : ............ 62 METROPOLITAN COUNCIL OF GOVERNMENT SCOPE OF SERV I CES AND B I DS FOR PUBLIC TRANS I I CONTRACT ROUTES .. ... ...... ............... 87 CAPITAL METRO SCOPE OF SERVICES FOR FIXED ROUTE AND UNIVERSITY OF TEXAS SHUTILE SERVICE .. .................................. 99 CONTRACTING COST INDICATORS ................................................ 11 3 LYNX CAPITAL AND OPERAT I NG COST INDICATORS ....................... 1 1 5 2

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LYNX (the Central Florida Regional Transportation Authority) Is interested in evaluating the potential opportunit ies and risks associated with contracting fixed route services. Various transit agencies throughout the United States have been cited for their utilization of the private sector to fulfill agency objectives in providing public transportation services. LYNX currently contracts 100% of its paratransit services to meet operational objectives throughout the service area. LYNX staff has identified candidate fixed route services representing certain performance characteristics within each of the three counties served by the Authority for analysis. LYNX has cohtracted with The Center for Urban Transportation Research to prepare a report to include: An industry overview of contracted fixed route services and trends An evaluation of candidate routes, including performance standards, cap ital and operating costs, and potential private sector costs for the provision of services An identification of significant issues related to contracted fixed route services with associated "best practice." 3

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REVIEW OF LITERATURE For this review, CUTR conducted a search of relevant literature related to transit service contracting The field of available research was primarily from the 1970's and 1980's when the Urban Mass Transportation Administration (UMTA), now the Federal Transit Administration (FTA) was directed to encourage the practice of privatization. In recent times, Section 3032 of the Transportation Equity Act for the 21"1 Century included a section requiring the Transportation Research Board (TRB) to, "undertake a study of the effects of contracting out by public transit agencies for operations and administrative functions. The act specifically calls for an examination of the rationale for decisions to contract for public transportation and an assessment of impacts on service cost and quality, availability, safety performance, and labor management relations." (Committee for a Study of Contracting Out Transit Services, 2001). The study generated from this mandate provides the most current and comprehensive analysis of bus service contracting. The study, "Contracting for Bus and Demand-Responsive Services, A Survey of U .S. Practice and Experience," was published in 2001 by the Committee for a Study of Contracting Out Transit Services. The committee was established by the Transportation Research Board and consisted of transit agency, university, and organized labor personnel. In addition to being the mpst recent work on this topic, it also contained the most exhaustive . compilation of all the lite rature on this topic since its inception . Therefore, CUTR used this report as a primary source due to its examination of all previous literatu re. The sections below provide a summary of this report 4

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The provision of transportation services in the United States has long been a shared responsibility of both the public and private sectors. As early as the mid-19th century, . . the government played a regulatory role by establl.shlng streetcar franchises that allowed private transportation providers to operate only in designated areas. By eliminating the potential for monopolies, thi s practice helped to ensure the public received reliable services and providers earned reasonable profits as a resu l t of mandated fare policies. With the advent of electric streetcars, cities were able to grow away from their cent r al cores. Typically expansion of electric railways was financed by real estate deve l opers with an Interest in accessing undeveloped parcels on the outskirts of centra l cities. As large consumers of electricity, ownership of most railways eventually t r ansferred to power companies. . The 1920 s saw a sharp decline in railway expans i on and ridership. As ownership of the private automo):>ile became more commonplace, I ndividua l s no longer relied on the rail system for mobility and land developers lost their motivation to fund system expansion. At the same time, local governments we r e expending available resources on better roadways to accommodate the automobile. By the mid 1930's most electric companies had sold their transit operations in order to focus on the generation and distribution of electricity to the general public. Taking the place of electric streetcars, buses soon emerged as the primary mode of pub lic transportation. Buses were less expensive to purchase and operate, offered more ro4ting flexibility and benefrted from continued enhancements to the roadway system I n spite of this, ridersh i p continued to decline as a result .of e xpanded low density suburban development and less travel to and from the central cities As transit patronage continued its sharp decline through the 1960's, the number of private firms providing transportation services dwindled. For those that remained in 5

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equipment an9 racnmes. By this time several larger U S cities had already taken over operations of their transit systems, but it was not until 1964 that the federal government (The Urban Mass Trans i t Administration) began to play a role in public transportation by offering grants to public entities. These grants required state al)d/or local match for capital acquisition, construction and planning. Operating subsidies were the responsibility of state and local governments. With the new availability of federal funding, an increasing number of state and local juiisdictions began to assume responsibility for transit system operations. In 1974, Congress passed the Nationa l Mass Transit Assistance Act, which provided federa l funding for operating assistance. Most agencies used this funding to i ncrease service levels and cover operating expenses in an effort to stabilize fares. By 1980, .. approximately 500 systems (up from 20 in 1 940) were publicly owned. During the 1970 s there was a heightened awareness of the importance of transit in addressing air quality concerns, reducing traffic congestion and serving the needs of low income inner city residents At the same time, the continued migration of residents and jobs to the suburbs prompted transit providers to supplement their product mix, often with a more costly mode to better serv.e specialized markets and I l ow density areas Demand response service, vanpools and fixed route express services were becoming commonplace. The challenges faced by transit operators at a. time when operating deficits were escalating prompted public officials to se.ek . opportunities for greater efficiency through the use of privately operated services. Citing the findings of several ear1y studies it commissioned, the Urbim Mass Transit Administration (UMTA) now known as the Federal Transit Administration (FTA) estimated that operating costs could be reduced by 10% to 50%, through competitive contracting. The suggested that contracting, when accompanied by vigorous 6

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personnel; (:.!). more tlexooonty 1n tne use ot 1aoor as a result or tewer worn rules and greater ability to use part-time operators; (3) more efficient vehicle maintenance procedures, such as management of parts inventory; and (4) streamlined . . management and administration costs In general. Aclditionally, the studies indicated that contracting had the secondary effects of reducing the cost and improving the quality of In-house service provision by compelling transit managers and unions to become more flexible, efficient, and responsive to customer needs. As a result of this research, the FT A developed guidelines in 1984 that required public transit operators to consider utilization of private providers when implementing new services, and to routinely analyze public vs. private sector costs for exist ing services. However, critics of the UMTA sponsored studies questioned whether the cost savings were actually the result of contractors submitting bid prices below their . actual costs in order to gain entry into the market as well as their inability to accurately project the true cost of operating the services. Subsequent studies suggested that the cost allocation models that were utilized in the UMTA research exaggerated the projected cost savings because expenditures such as overhead associated with planning, marketing and advertising were unavoidable and had litt le correlation to the amount of service provided by the agency. The UMTA studies were also criticized for failure tq address the administrative cost components associated with contracting including: contract administration, . performance monitoring and coordination with agency provided services. One study of contracting In Orange County, California showed that administration and monitoring costs represent approximate ly 14% of the total contract value. Another 7

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Vt:SIII\,;.U::: II lilt:. 8

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In 1986, the Los Angeles Cdl.ihtY lratisP<>rtation Commissio n invited l ocal jurisdictions to operate transit services if they could meet one of four cost saving . . . criteria. Within two years. 20 cities and some unincorporated sections of Los Angeles joined together to form Foothill Transit, which took over the 19 routes fonnerly operated by the Southern California Rapid Transit District (SCRTD). The service was privately managed and operated Foothill Transit reported it was successful in reducing operating subsidies and increasing ridership by approximately 30 per cent. The firm of Ernst and Young was retained by the Los Angeles Transportat i on Commission to conduct an Independent evaluation of SCRTD's perfonnance. The Ernst and Young report showed savings of nearly 50% and confirmed ttie reported ridership increases. The SCRTD refutei:l the findings, particu l arly the methods used to estimate the savings in overhead costs. The agency a r gued that tile savings were overstated due to a number of instances I n . which certain fixed costs could not be eliminated such as those costs associated with idled maintenance facilities and job protected personnel that had to be shifted to less productive positio ns. SCRTD subsequently hired the accounting finn of Coopers and Lybrand to conduct another independent evaluation. This report found there were virtually no cost savings resulting from SCRTD's new contract with Foothill Transit. In 1988, Colorado passed Senate Bill #64, which required Denver's Regional Transportation District (RTD) to competit i vely tender 20% of its bus service. Soon . after the State of Colorado issued its mandate. the state sponsored a series of studies conducted by the accounting firm of KPGM Peat Marwick. The studies were to assess the effects on service operating costs, safety and reliability resulting from the new priva t ization Initiative. The KPMG studies found that in the second year of the program, the contractor's prices were 12.5% lower than the costs incurred by RTD in providing similar serv'ice 9

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were no consjstent differences between RTD's direct and contracted operations with respect to accident rates, on-time performance, maintenance reliability and custom er satisfaction The KPMG auditors also found the had earned little if any . profit during the first two years of operation and questioned whether the orig ina l bids were set purposely low just to gain entry i nto the market. The KPMG study was refuted in a 2000 study which concluded that Denver's contracting costs per revenue hour had actl!ally exceeded the costs incurred on . directly operated routes because the market for competitive bidders had neve r materialized in Denv er. In 2001, RTD issued its own analysis of the agency's contracting experience, which estimated a total savings of $40 million between 1991 and 1999 as a r esult of i ts utilization of private contractors. Today the RTD contracts approximately 21% of its fixed route services, which fulfills its state mandate. The praclice of contracting for services remains a Controversial issue in pubHc transit. Propon ents of contracting claim that pubHc transit agencies are monopolies strongly influenced by labor unions and that they have few incentives to be efficient. They argue that introducing competition i n pubHc transit will allow market forces to determine appropriate wages for employees while providing more efficient services Opponents, on the other hand, believe that contracting reverses the gains labor has made in terms of wage rates and benefits. While there is evidence that suggests contrac ting can produce some immediate cost savings in the provision of transit services, opponents are quick to point out weaknesses in much of the research They claim that studies which show contracting produces significant savings are based on short-term analyses vs long term impacts Additionally, they beHave the studies utilize faulty and/or inconsistent methodologies for cost allocation comparisons. 10

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3 "' e e 5I .5 .c -0 ......... _. ..... ................... _..... ._ ............ .... 50.000 45.00 0 4 0 0 0 0 35.000 30.000 25.000 20.000 15 000 10.000 5.000 0 Direct l y Operated vs. Contr.acted 199 7 1998 19 9 9 2000 Di'e<:tly Operated c Contracted Data i nc l udes the total nu mber of vehi c l es in maximum service for all NTD report ing age n c i es l! 0 % 3i .c 160.000 140.000 120.000 100.000 80,000 60,000 4 0,000 20,000 0 Table 1-2 F ixed Rou t e Veh i c l e Hours Directly Operated vs. Contracted 1997 1998 1999 2000 Data i n c l udes the total vehi cle hours for all N T D reporting agencies. 12 Oirec::tl y o Cootracted

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One component of the 2001 TRB study involved a survey of 502 public transportation systems that file National Trans it Data Base reports. Survey respondents (over 50%) were generally representative of all federal grant recipients reporting in the 1998 NT D based upon agency type, geographic distribution, number of vehicles/vehicle hours in revenue service and fleet size. Limitations of this study include the fact that information was requested on each agency's la rgest contracts only. Consequently, the survey results did not reveal how much contracting takes place in individual systems relative to their total operations Major findings of the survey are as follows : Approximately half of the 156 respondents reporting the use of contracted services were from small systems with fewer than 50 fixed-route and demand response vehicles in maximum service. Approximately 45 were from systems with 50 249 vehicles and 34 respondents were from systems with 250 or more vehicles. Small systems make up a large share of those that contract, primarily because they account for about 60 percent of all transit systems. Yet small systems reported contracting less often than large systems in relation to their overall numbers. Only about 30 percent of systems contract for both bus and paratransit services. About two-thirds of respond i ng state and regional transit agencies have contracts for fixed route and/or paratransit services. These agencies are more likely to contract than city and county governments. However, when ci t y and county governments do contract, they are more like l y to do so for all services . 13

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an ot tneir services more man nail ot tne systems tnat Cfo contract are located in this region which may be due to the rules governing California's financing of public transit In the Southeast region of the U.S., most transit agencies do not contract services. Obtaining Contractor Services Methods of Contracting Nearly all of the survey respondents characterized thei r procurement process for contracted transit service as competitive in nature:uslng bidding or a combination of bidding and negotiation. Of the 77 agencies reporting, only 4 utilized a sole source negotiation or a periodic renegotiation with an incumbent provider. Bid Activity Agencies with a high number of qualified bidders will likely have a greater choice in the quality and price of 'prospective providers. Approximately 75% of the contracts reported In the General Manager's survey had at least th r ee bidders for the agencies most recent solicitation while approximately 25% had received only one bid. There may be a correlation between the size of the transit system (larger systems typically issue contracts with a higher value than small systems) and the number of bidders on a so l icitation. Approximately 40% of the small system contracts reported in the survey attracted only one bidder and nearly 70% had fewer than three bidders. Nearly all medium and large system contracts had a minimum of three bids suggesting tha i a higher contract value attracts a higher volume of bids. Based on the results of the survey there does not appear to be a relationship between the numbers of bidders from one bid cycle to the next. While 40% of the respondents noted a decline (40%) in the number of bids received for the provision of paratransit services from the previous bid cycle to the most current, fixed route 14

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aecreasea oetween tne two 010 cyc1es. The sur:vey also revealed that as contracts go through successJve bid cycles, they continue to attract bidder interest, suggesting continJJed competition. For those contracts that were re-bid once or twice, near1y 60% attracted more than two bidders during the most recent bid period and approximately half of the contracts that had been re-bid three or more times attracted three or more bidders. General Managers' Contracting Experiences The TRB study also included a second part to the survey that was designed to gain qualitative and perceptual responses to the agency's contracting experience. Part 2 of the survey asked the general managers or top executives of the transit systems to . explain why their agencies contract for transit services. Of the 502 transit agencies surveyed, the general managers of 237 agencies (47%) completed and returned this part of SUrVey. The committee chose to survey transit system managers because they could offer specific information on the practice and effects of contracting. At the same time, the choice of contracting is often a policy-level decision influenced by political and/or legal requirements, and environments in which the general managers are participants in the decision making process. The survey results reflect the current perceptions of transit system general managers However, given the variation in circumstances from one system to another, the responses provide a mix of viewpoints anq offer insight into why some systems contract and others do not. It should be noted that one limitation of this survey Is that some questions did not distinguish between fixed route and demand response services. The survey respondents include genera l managers of 144 systems that currently contract for demand response and/or fixed route services, as well as general managers of 93 systems that do not contract for services. Major findings of this portion of the survey are as follows: 15

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cost efficiency as the most important reason for contracting bus services (See Table 1 -3). Approximately 40 of the general managers, who contract for bus service also cited the desire to create a more competitive environment, expand services and increase flexibility to change services as important reasons for contracting (See Table 1-3) Tab le 1-3 General Manager's Rating of Reasons to Contract (Fixed Route Trans it) Reduce costs Start new services 1 m prow cost-efficiency Create competitive em4ronment Expand services Provide more flexibility Board direction Provide higher quality service Federal emphasis Slate mandala or l aw 1 A""raga Rating 1.5 2 2.5 3 3.5 4 Respondents i nc l uded 75 general managers of foxed route transit systems t ha t currently cont ract for serv i ces. Average rating is based on the following rating sca le: (4=Major/primary reason 3=1mportant factor, 2=Minor fac tor 1 = Not a factor.) Fifty-one of 87 general managers who do not contract for services cited their desire to maintain control over operations as an important reason for not contracting. Interestin gly, while the general managers of systems which contract rated cost-effectiveness as an important factor in the ir decision to contract, more than half of the 87 general managers who do not contract cited 16

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contract (See Tab le 1-4). Neither the general managers that currently contract nor those that do not identify federal and state laws and policies, inc luding Section 13c, as having an important effect on their decision to contract (See Table 1-4). Table 1-4 General Manager's Rating of Reasons I:I.J1J. to Contract (Fixed Route Transit) Maintain control Not No reason to change Lack of qualifed firms Board direction Union contract Section 13c Too lew b idd ers Proposed bids too high State l a bor laws 1 1.5 Avera90 Rating 2 2.5 3 3.5 4 Respondents included 87 general managers of transit systems that currently do not contract for any serv ices. Average rating is based on the fol lowing rating scale: (4=Major/prlmary reason, 3=1mportant factor, 2=Mi nor factor, 1 = Not a factor.) The increased flexibility associated with contracting was reported as a positive effect of contracting more often by larger systems, while smaller systems were more apt to cite the positive effect of administrative responsibilities being assumed by the contractor (See Table 1-5). 17

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Table 1-5 General Manager's Perceived Positive Effects of Contracting No. of General Managers Citing Reduced operating cost Reduced administration F l e)dbil ily Expertise of oontraclor More sei'Ace A\Oidance of capital oosts Contractor handles all CompetiUve en'lironment Reduced hiring/staff Public image/political Only way to startADAsei'Ace 0 20 40 60 80 Respo nde nts i n c lu de d ge ne ral managers of tran s it systems that current ly contract for services. The general managers of systems that do contract, most often cited workforce retention, employee turnover and customer service as problems. Safety, employee morale, contract disputes and ridership received the h ighest number of neutral responses (See Table 1-6). The negative effects of contracting reported most frequently were limited control, poor service quality and problems with customer service (See Table 1-6). General managers of larger systems are somewhat more likely than their counterparts in small agencies to identify worker turnover, low wages and personnel issues as negative aspects of contracting. 18

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Limited control Ser.ioe qualit}t'customer selilice Contractor Issues Communication wages Need to monitor Person n e l issues Public/political issue& Dim i n lsh i ng returns Union issues 0 No. of General Managers citing 20 40 60 80 Respo n dents inc l uded general managers of transit sys t e ms t ha t currently do not contract for services. About one-third of the 93 general managers from agencies who do not contract reported that they have done so i n the past. Reasons cited for no longer contracting included: des ire for loca l control, improved service quality, contractor issues and in house cost savings as important reasons for no longer contracting. More than 55 percent of the general managers of contracting agencies reported that contracting has fully met the i r expectation, while nearly 40 percent reported that contracting has only partially met their expectations Only six general managers reported that contracting has not met their expectations. 19

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A variety of circumstances may cause an agency to consider the feasibility of c o ntracting services. The most commonly cited r easons for making the decision to co n tract are to: Reduce operating costs Take advantage of lower wage rates often available through co n trac t ual arrangements Share or transfer the adm i nistrative burden ( t raining, monitoring, reporting etc.) associated with servi c e provis i on Improve cost efficiencies The "rip pl e effecf of contracting can sometimes cause agen c ies to be c ome more efficient interhally by lowering unit costs as a result of labor concessions Start new service Overcome potentially l ong lead times associated with procurement of eq u ipment Avoid the need to p l ace an additional burden on already constrained facilities I mprove res p onse time to changing market demands The gene ral manager's survey conducted as part of the 2001 TRB Contracting for Bus and Demand-Responsive Services; revealed four general ca t egories of recommendatiops offered by agencies that are currently cont r acting to agencies who are considering contracting These Included: (1") The importance of giving careful consideration before deciding to contract (2 ) The .best ways to obtain contractor services, (3) The appropriate contractual structure, arid (4) The need for attentive monitoring and oversight of contractual services 20

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t:III::>U. ::St:H LU I Ill It:: U i:iUVCII i::IIIU UISC:IUVC:U'llctge::; OJ contracting relative to their individual circumstances Managers are advised to identify the transit services best suited to contracting i n light of the agency's long . . term goals and objectives and the probable outcomes of the contracting experience. A thorough review of the costs and effects of providing the services directly should be conducted. In addition to an analysis of the anticipated budgetary impacts of contracting, the planning effort should include an evaluation of the potential effects on service quality, workforce motivation and morale, and the flexibility to respond to fluctuating service demands. Various approaches to structuring contracts, including the provision of vehicles and facilities, should be considered to encourage competition and allow the agency to bring the service in-house if the contractor fails to meet expectations. Approximately 75% of agencies that reported bus contracts supplied the vehicles. Possible reasons for c hoosing to furnish capital may include the fact that equipment can be obtained . with federal and state grants, which are not subject to state and local taxes. In addition, the agency may increase the number of potential bidders by eliminating the large investment risk and dec rea se the contract duration and cost because bidders will not have to recover their capital Investment. Finally, if the contractor fails to perform satisfactorily, the agency can re-bid the contract more quickly and easily if it owns the vehicles. Agencies who have had previous experience with the individual contractors should be contacted to gain insight into their contracting experience and the performance of the specific contractor. Proposals should be carefully reviewed, particularly the start up plan, wage rate assumptions, plans for hiring, training and retaining workers and the qua l ifications .of the management team. The contract should be carefully structured to include a clear delineation of the roles and responsibilities of all parties. Realistic performance standards and service 21

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clauses. The. agency should routinely monitor the contractor's performance and maintain open communiCation arid frequent feedback to ensure its objectives are being achieved. 22

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S ummary of A d va n tages and D isadvantages to Con t rac t ing Fixed Route Serv ices From Ge n era l M a na ger's Survey and Agency I n t erviews A d van t a g e s Disadvantages POTEN TIAL TO INITIA TE/ELI M INATE POTENTIAL Q U ALITY CONTROL ISSUES, SERVICE MORE QUICKLY IN RESP O NSE CUSTOMER SERVICE, VEHICL E TO MARKET DEMANDS AP PEARANCE/PERFORMANCE INADEQUATE SKIL LS AND TRAINING U TILIZATION OF PRIVATE VEHICLES CAN EL IMINATE UP-FRONT CAPITAL AGENCY OBLIGATIONS FOR CONTROL EXPENDITURES AND OVERSIGHT OF FEDERALLY FUNDED CAPI TAL AND OPERATING UTILIZATION OF PRIVATE FACILIT IES EXPENDITURES CAN ELIMINATE UP-FRONT CAPIT AL EXPENDITURES CONTRACT ADMI N ISTRATION AND MONITORING ARE LABOR INT E NS IVE UTILIZE PRIVATE LABOR CAN BE COSTLY AND DIFFICULT TO REDUCE COSTS/IMPROVE COST MEASURE PERFORMANCE EFFI C IENCY RESULTING FROM POTENTIAL LABOR CONCESSIONS CONTRACTOR WILL NOT BE ABLE T O ( LOWER WAGE SCA L E FO R AGENCY TAKE ADVANTAGE O F T AX FREE FUEL OPERATED NEW SERVICE) PURCHASES AND MAY NOT RECEI VE SAME VO LUME DISCOUNT AS AGENCY POTENTIAL TO PROVIDE H IGHER UNLESS AGENCY MAKES S PECIAL QUAL ITY SERVICE ARRANGEMENTS TO PROVIDE FUEL S HARE ADMINISTRATIVE CONTRACTOR PROVIDED CAPI TA L MAY RESPONSI BILIT IES B E MORE EXPENSIVE (TAXES, FINANCE CHARGES) M I G H T NECESSITATE A ABILITY T O OFFER PERFORMANCE LONG TERM CONTRACT IN ORDER TO INCENTIVES/PENAL TIES R ECOVER CAPITAL OUTLAY OR HIGHER SHO RTTERM HOURL Y RATE POTENTIAL CONFLICT W ITH UNION CONTRACT/SECTION 13 C SPARE VEHICLES (WI T H COMMUNICATION SYSTEM AND FAREBOX) M UST BE AVAILABLE TO CONTRACTOR COORDINATION WITH OPERATIONS A N D CUSTOMER SERVlCE FUNCTIONS 23

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ANALYSIS OF OPERATING COST ESTIMATES . One important variable in considering the potential for outsourcing is analyzing the cost of providing a certain function or service. How .much does the function cost the transit agency? How does this cost compare to industry peers? How does this cost compare to known private sector costs for similar services? This chapter will attempt to address these questions relative to fixed route services. . There are several methodologies in ascertaining the cost of services currently conducted by the agency from a simple overall average cost per mile, hour or vehicle based upon the overall operating budget to a more detailed direct cost methodology that assigns full time employee (FTE) hours and specific personnel labor rates Following is a review and ana l ysis of 'several methodologies starting with a generalized approach down to a refined cqst analysis. LYNX maintains a fully allocated cost model and conducted a direct model analysis for four (4) candidate fixed routes. These routes were iqentified for an evaluation of the potential for private contra'cting opportunities. LYNX also maintains a National Transit Database accounting system as required by FTA. First, a comparison of LYNX NTD fixed route data with other peer systems in the United States is provided. National Fixed Route System Comparison The Fede .ral Transit Administration (FTA) collects and disseminates data on the state of mass transportation via the National Transit Database {NTD} program. Over 600 of the nation's t ransportation providers submit data to the NTD annually. Both the publ ic and private sectors use this data to assess the current state of mass transit, allocate program funding and analyze system trends and performance. The NTD 24

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ye ars later. Tt:te cu r rently available data set i s yea r 20 00. The following Table (2-1) provides a comparison of LYNX's cost per revenu e vehicle hour with othe r peer fixed route systems. The peers w er e by u t ilizing the Census 2000 ranking of urbani z e d are as by population, r anging from s e ven l ocations with more incrementa l p o p u lation than the Orlando reg i on and similarly those seven with less population. N TD data was then resea r ch ed fo r each system's cost per revenue vehicle hour (RVH) The L YNX cost per RVH was in the l ower end of the range of its pe ers i n year 2000 with a cost of $6 1 .20 The average cost fo r the entire range equaled $72.77. T ab l e 2-1 Peer Urbanized Area Public Transportation Cost Per Revenue Vehicle Hou r Year2000 U rbani zed Urb anized Area Area Rank System Cost/RVH Population 29 Saaamento $69 .40 1,393,498 30 Kan sas City $62.00 1,361,744 31 San Anton i o $52, 1 0 1,327,554 32 Las Vegas NV . $62.60 1,314,357 33 M il waukee, WI $69.40 1,308,9 1 3 34 In d i anapo li s, IN. $7 1 .70 1,218,919 35 Prov iden ce, RIMA $102.00 1,174,548 36 Ortimdo F L $6 1 .20 1,157.431 37 Co l umbu s, OH $85.80 1,133,19 3 38 New Orleans LA $ 80.00 1,009,283 39 Buffa l o, NY $68 .20 976,703 40 Mem p h i s, TN $68 .90 972,091 41 Aust in, TX $61.50 901,920 42 Bridge p ort CT $60 .60 888,890 43 Salt lake City, UT $76 .20 887,650 Source: NTD Database 2000 a n d U.S. Ce nsus 2000 25

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serv1ces 1n ;wuu, only tnree or tne systems repone
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. Active Fleet Buses Peak Buses Total Expenses all modes Labor Non-Labor Fixed Route Expenses Fixed Route Measures Ann ual Revenue Vehic l e M iles Annu al Revenue Vehicle Hours Annual Passenger Trips Cost per Revenue Mile Cos t per Revenue Hour Cost per Passenger Trip Cost per Revenue Mile (all modes) Cost per Revenue Hour (all modes) Cost per Passenger Trip (all modes) Table 2-2 LYNX FY 2001 -2003 0 & M Model 2001 2002 2003 !ncr. Change 02..03 236 236 255 19 192 192 205 13 $67,403,37 4 $67,531,779 $81 '796,095 $14;264,316 $37,200,758 $37,242,844 $46,590,760 $9 347,916 $30,202,616 $30, 288,936 $35,205,335 $4, 916 ,399 $52,522,400 $52, 6 55,200 $64,632,500 $11,977,300 11,580,000 11 580,000 14,590,000 3,010,000 830,000 830,000 1,030,000 200,000 21,300,000 21,300,000 22,600,000 1,300,000 $4.54 $4.55 $4.43 -$0.11 $63.28 $63.44 $62 .75 -$0.69 $2.47 $2 .47 $2.86 $0 .39 $5.83 $5 .83 $5. 61 -$0.22 $81.21 $81.36 $79.41 -$1.95 $3.16 $3 .17 $3.62 $0.45 Source: LYNX August 5 2002 27 % Change 02..03 8.1% 6 .8% 21.1% 25.1% 16.2% 22.7% 26.0% 24 .1% 6.1% 2.4% -1.1% 15.7% -3.8% -2.4% 14.2%

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. Table 2-3 provides a summary of the costs calculated in the development of the lYNX direct and O&M models, recent Orlando contract bids (see Appendices A1 and A-2) relevant out of state contract bids (see Appendices A-3 and A-4), and . the Orlando market charter rates (see Appendix A-5) for equipment comparable in capacity to the lYNX fleet. These variouiil costs are applied to the four candidate routes lYNX has identified for potential contracting. The following narrative provides a description I analysis of numbered line items in this table: Line 1 l YNX developed a direct cost model for links 12 26, 37. and 42 utilizing actual FTE, personnel labor rates, overhead costs and a capital cost component. CUTR refined some of the data inputs (see Appendix A-6 for a detailed description of the direct cost component models) and found the model methodology to be suitable to estimate direct operating and associated capital costs: Costs were calculated by vehicle hours of operation for each route to p rovide a total route cost. Included in this model is a capital cost component based upon a unit cost of $300,000 for a trans i t coach. line 2 lYNX has an overall Operating & Maintenance (O&M) model, assigning operating budget line items to cost centers to provide unit cost variables. This model allocates a cost per hour based upon the total operating budget of lYNX. It differs from line one in that it includes all operat ing costs, not just direct exists associated with driving, maintaining, and supervising the route. This model does not inc lude a capital component. Line 3 CUTR calculated the direct lYNX model without capital in order to analyze direct operating costs and reflect estimated local costs, not including a capital \ 28

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require local. funding and/or impact federal capital programming. This is discussed in the LYNX capital program and cost analysis section of this report. Lines4&5 Lines 4 & 5 provide a relevant contracting cost experience in Minnesota without a capital component. CUTR included a six percent contract administration cost on the contracted cost per vehicle hour. There was enough detail provided by the Mirmesota proposal fc;>rms to calculate specific contractor costs for each of the LYNX rout es, including contractor profit (in this scenario profit is established at 8%). For comparative purposes, this rate was applied to the vehicle hours of the LYNX candidate routes There is a variance in hourly ra tes between two different route services within the sa me system. Lines 6 & 7 Lines 6 & 7 provide a relevant contracting cost experience in Austin, T exas with. the Capitol Metro tra nsit system This also includes no capital component since equipment is provided by the agency to the contractor. There is a significant difference in the two contracte d services for the University of Texas shuttles ($47.70/hr) compared to new fixed route services contracted out ($63.60/hr) The UT shuttles have been contracted out for a number of years through a large contract for services of a compact design for the University campus community. Lines 8, 9,10, & 11 CUTR conducted research in the Orlando market by investigating other relevan t service contract rates and/or bids for other local agencies. The International Drive Master Transit District and the University of Central Florida provided informatio n from existing contracts 29

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Ill'\'=' V'='IIICU::t 14f I pt::J V"J ll\,;1" IIUur. I lit: t;UJ Ill C::i\.;1. i::::l IIIUit.l yt::t:tl tty I t::t::ll llt'lll with a 4% annual cost increase provision. . UCF recently issued a RFP and received proposals from Coach USA ($39.00/hr), Mears ($57.00), and Martz ($48.10). The Coach USA proposal defined a smaller vehicle unlike the LYNX heavy duty longer life-cycle coaches. CUTR once again applied these rates to the candidate rates for comparative purposes. Lines 12,13, & 14 For further comparison analysis, CUTR obtained published charter rates from a few Orlando market providers that utilize heavy-duty vehicles with equivalent capacity to the LYNX fleet. The rates from Mears. BTM, and First Class Coach were used to calculate cost scenarios for the LYNX candidate routes. Lines 15, 16, & 17 CUTR developed a scenario depicting associated contract administration and operational oversight costs of 10% above the previously obtained charter rates. These rates were then appl ied to the candidate route data. The resulting table from these line items ca lc ulations provides a tool to analyze various scenarios and provide some insight Into the Iss ues LYNX could face In contracting the four candidate routes. Summary In viewing the difference between the LYNX direct and O&M models, it should be emphasized that the direct model attempts to define costs for direcUy associated expenses for the delivery of a fixed route service and a capital component. The O&M model provides an allocation of total LYNX organizational expenses classified for fixed route services without a capital compon ent. In practical appli c ation, what this means is if services were contracted out to a provider, 30

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routes. 31

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Table 2-3 Comparison of LYN X Modeled Costs vs. Potential Market Bids Source: Center fo r Urban Transportation Research (CUTR)

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There are several local environment issues to recognize in evaluating the capital cost element of the potential contracting of LYNX fixed route services. 1) Use of FTA 5307 and 5309 Funding In recent years transit coaches purchased using FTA s ection 5307 (Urban Formula) funds have not required a local match of 20% due to the . eligibility of toll revenue credits from the state to provide a "soft" match to FTA funded capital Investments. Additionally, FTA Section 5309 (Capital Investment Grants), which are disc r etionary funds, can use the same toll revenue credit financing technique. By utilizing b_oth funding sources LYNX has minimized the use of local funds for capital investments providing flexibility in the use of funds for operating costs. This may have a significant impact on analyzing the contracting of services. If a contractor proyides personnel and equipment for services, there is a capital cost component of the price that may be annually Inflated, whereas LYNX does not incur a local capital cost in operating the service itself. The use of LYNX owned capital equipment is discussed below. It should be noted that in the case of Section 5307 funds, the capital cost of contracting is an eligible expense, however this may have an impact on the overall budgeting strategy of capitalizing LYNX expenses. 2) Local Funding Allocation Model of Operating and Capital Expenses LYNX does not have a local dedicated funding source to budget services and improvements. The budget is composed on an annual basis with local jurisdictions establishing budget participation LYNX develops a regional operating and capital allocation model and seeks approval each year. This 33

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federal and state funding to local jurisdictional services, the specific jurisdictional location of service being contracted and use of lo c al funding, as well as the annua l nature of funding and risk to the contractor in personnel and capital investments 3) Use of Current Transit Fleet All of LYNX's current fleet has been purchased with federal funding and is subject to the Administrative Master Grant Agreement between LYNX and the Federal Transit Administration (FTA). LYNX is required to maintain and use these vehicles appropriately and if utilized by a Contractor, must enter into a Lease and Supervisory Agreement. If service contracting is considered using LYNX vehicles, it should be recognized that aside from contract administration expenses, LYNX will incur supervisory and maintenance oversight expenses to maintain control over the federally funded vehicles. If the contractor is not provided with LYNX vehicles to operate existing services, there is an issue of how these resources wil! be reallocated and the impact on the permissib le spare ratio LYNX must maintain in accordance with FTA policy. Conversely, if the contractor provides vehicles to operate existing servides LYNX may be able to absorb the extra vehicles into its fleet and reduce its capital replacement requirements. 34

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Aside from the cost analys i s presented in Chapter 2, LYNX has a numbe r of other issues to consider in evaluating the outsowc i ng of any portion of its fixed route services Federal and State grant requirement obligat e LYNX to certain responsibi l ities to maintain records, ensure service delivery standards operate service in conformance with safety and security parameters, as well as to mai n tain and contro l any funded capital equipment. Local issues may exist or arise relative to any differences in the standards and del ivery of services between LYNX directly operated versus contracted serilices, including local funding policies and allocations. These issues are not unique to LYNX and are fac ed by agencies that contract out certain fixed route services. CUTR captured additional understanding of the Issues in collecting contract documents a n d interviewing a number of agen cies It is important that if a decis i on to contract services is made, that all of the relative issues are addressed in the contract between t h e transit agency and the contractor. The following categories are examined in this chapter: Specific Objectives and Measures Con tract Management and Oversight Expenses Labor Re l ations I Department of Labor (DOL) 13(c) Requirements Environmental Justice Safety and Security Contracting Procedures 35

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As discussed in Chapter 1, the main objectives of agencies that have contracted services include cost reduction, quick implementation of new services, and to . . . respond to certain policies or local conditions: After an appropriate analys is of contracting options Including an internal cost analysis, it is very important to establish measures and a contract monitoring process to evaluate attainment of the established objectives Contract Management and Oversight Expenses Also discussed in Chapter 1, highlighted in interviews with agencies that contract services, and revealed during the analysis of sample contract documents, are the potentially high administrative cost components associated with contracting. These include the development of the soliCitation and award process, ongoing contract administration activities and more importantly the agency's . responsibiiities as the y related to system safety, security and performance presented in further detail in Chapter 3. Federal Transit Law, 49 U.S.C. (b) (formerly identified as Section 13(c) of the Federal Transit Act) The F ederal Transit Law applies to state, regional and local transit entities, systems, and providers that receive funds from the Federal Transit Administration (FTA) The protective requirements commonly referred to as Section 13(c), are located at 49 U.S. C. 5333(b) ofTitle 49 of the U.S. Code. As a precond ition for a grant of this Federal assistance to transit employers and/or recipients of Federal assistance, those bodies must agree to provide the required protections to transit employees. These transit employees are protected from adverse effects related to the Federal assistance (referred to as a grant or project) These protections must be certified by the Department of Labor as 36

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covered employees are affected by Federal assistanc e used for grant or project activities, they may be el i gible for protections under the employee protections arrangement certified by the Department of Labor for the FTA gr
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In considering changes In existing services as well as new service delivery, LYNX must also address both Title VI and Environmental Justice concerns. Public involvement and an assessment of potential impacts of contracted services that may differ in any manner with directly operated services must be adequately addressed and assured. Under Titl e VI of the C ivil Ri9hls Act of 1964: "No person in the United States shall, on the ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity recehing Federal financial assistance." Safety and mobility are two of the U.S. Department ofTransportation's (DOT's) top priorities. AchieviniJ environmenta l justice is another undeniable mission of the agency. There are three fundamental Environmental Justice p rinciples : To avoid, minimize, or mitigate disproportionately high and adverse human health and environmental effects, including social and economic effects, on minority populations and low-income populations. To ensure the full and fair participation by all potentially affected communities in the transportation decision-J)iaking process . : To prevent the denial.of, reduction in, or significant delay in the receipt of benefrts by minority and low-Income populations. Concern for environmental justice should be integrated into every transportation decision from the first thought about a transportation plan to post-construction operations and maintenance. The U.S. DOT order applies to all policies, programs, and other activities that are undertaken, funded, or approved by the 38

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(t-1 AJ, or otner u.s. DOT components Including : Pol ic y Decisions Systems Planning Metropolitan and Statewide Planning Project Development and Environmental Review under NEPA Prel i minary Design Final Design Engineering Right-of-Way Construction Operat i ons and Maintenance Transit providers offer mobility for all citizens whether they own a vehicle or nol They provide an essential service for many low-income and minority populat i ons who have no other way to get to work, shopping, child care, medical . appointments, recreation, or other destinations. Transit agencies support Title VI and environmental justice principles when they: Ensure that new investments and changes in transit facilities, services, maintenance and vehicle replacement deliver equitable levels of service and benefits to minority and low-income populations. Avoid, minimize or mitigate disproportionately high and adverse effects on minority and low income populations. Enhance public involvement activities to identify and address the needs of minor i ty and low-income populations in making transportation decisions: LYNX must incorporate the appropriate analysis and leve l of community involvement as It considers contracting opportunities. 39

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. Federal Transit AdmiQistration The FTA provides financial assistance to public transit throughout the country througl:i its grant programs In addition; as ldentifi ed below, the FTA has certain safety mandates that grantees must meet. In general, FT A's primary enforcement mechanism to assure compliance with Its regulations is the withholding of Federal transit funds. FTA initiated a program in response to a 1998 National Transportation Safety Board (NTSB) special investigation report entHied "Transit Bus Safely Oversight Consequent ly, NTSB recommended that the U.S. DOT, the American Public Transit Association (APTA), the Community Transportation Association of America (CTAA) and the American Asso c iation of State Highway and Transportation Officials (AASHTO) "deveiQp ... a model comprehensive safety . program(s) and provide it to all transit agen c ies." The goal of the recommendation was to encourage the development of transit bus safety standards and pract i ces that large bus agencies, as well as small transit bus operations, could practicably It is crucial that LYNX Incorporate the requ i rements it is obligated to fulfill in any service contract for fixed route services. Once again, the Capital Metro contract provides an excellent example in hold i ng the contractor accountable for these requirements. For i nformational pl.lrpo::;es, the following list provides a reference . for federal concerns and requirements in transit services and capital equipment or facilities, which utilize FT A funding: 40

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49 5329 Requirements : Section 5329 provides FTA with the discretionary authority to . investigate a condition in equipment, a facility, or an operation receiving an FTA grant if the FTA believes that the con diti on may cause a serious hazard of death or in j ury. The purpose of the investigation is to determ i ne the nature and extent of the condition and how to correct it. If the FTA determines that the condition causes a hazard: a FTA must requ i re that the grant recipient submit a Corrective Action Plan, and; b FT A may withhold further financial assistance until a plan is approved and carried out 2. Legal, Technical and Financial Capacity 49 usc 5307(d)(1) Requirements: Section 5307(d)(1) r equires a grantee to submit a final p r ogram of projects, and certification for each fiscal year that it a Has or will have the legal, financial, and technical capacity to carry out the program; b Has or will have sat i sfactory continuing control over the use of equipment and facilities; and c. Will maintain equipment and facilities. 3. Security 49 usc 5307(d)(1)(J) 41

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or projects, ana certilication for each ttsca l year that i t a. Will expend for mass transport ation security projects, (including ligh ting, camera surveillance and emergency lines) intended to increase the security and safety of an existing or planned mass transportation system, at least one percent of Its annua l grant; b. Unless it has decided that the expendi ture i s not necessary. 4 Triennial Grantee Review 49 usc 5307(1)(2} Requirements: At least once eve ry 3 years, the Secretary must review and evaluate the performance of a grantee I n carrying out the recipienrs program to monitor compliance with statutory and administrative requirements, and whether the grantee's operations are consistent w ith planning process requirements in sections 5303. 7 Not es: The FTA provides its Triennial Handbook to provide guidanae to grantees to prepare for the triennial audits. Among the 26 areas reviewed in these audits, a f ew areas relate specifically to safety and security concerns, as follows: a. Does the grantee have a written bus system safety program? Does the plan follow APTA's Manual for the Development of Bus Transit System Safety Program Plans? If not what model does it follow? b Does the system safety program plan include an emergency management plan? Does the grantee qonduct periodic drills? c What key safe ty issues have been ident i fied by the g rantee for this year and how and how are they being addressed? d. What type of safety training does the grantee provide? 42

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safety committee? To whom does the Safety Officer report? f. Has the grantee submitted transit safety data on National Transit Database Form 405 for the past three years? . g. Does the grantee utilize the one percent of"funds for transit security (pursuant to 49 USC 5307(d)(1 )(J))? If yes, how did the grantee utilize the one percent expenditure over the last three years? If no, why does the grantee consider such expenditures unnecessary? 5. Drug & Alcohol Testing 49 usc 5331 Requirements: The Secretary is required to prescribe regulations that establish a program requiring grantees to conduct pre-employment, reasonable suspicion, return to duty, and random and post-accident testing of mass transportation employees responsible for safety-sensitive functions for the use of a controlled . . substance and alcohol in violation of la w or a US Government regulation. 6. Bus Testing Facilities 49 usc 5318 Requirements: The Secretary is required to establish a facility fo r the testing of new bus models, as a condition for being purchased with FTA funds, for the following criteria 7. American's With Disabilities Act of 1990 42 USC 1241 et.seq. Requirements: Pursuant to this act and section 504 of the Rehabilitation Act of 43

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route system to a. Purchase o r lease a new bus that i s not readily accessible to and usable by individuals with disabilities, inc luding individuals who use . wheelchairs; b. Purchase or lel)se a used bus unless such entity makes demonstrated good faith efforts to purchase or l ease a used vehicle that is readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs; and . c. Fail to provide paratransit and other special transportation to individuals with disabilities, including individuals who use wheelchairs, at a level of serv i ce comparable to that of public transportation afforded by the entity to those without disabilities, with response time comparable, to the extent practicable, to that of public transportation afforded by the entity to those without disabilities. National Highway Traffic Safety Administration NHTSA has a legislative mandate to issue Federal Motor Vehicle Safety Standards (FMVSS) and regulations to which manufacturers of motor vehicles and equipment must conform to and certify compliance. These standards and regulations are minimum safety performance requirements for motor vehicles or Items of motor vehicle equipment. These re quirements are specified in such a manner "that the public is protected against unreasonable risk of crashes occurring as a result of the design, / construction, or performance of motor vehicles and is also protected against unreasonable risk of death or injury in the event crashes do occur." NHTSA's FMVSS pertaining to buses can be found at 49 CFR Part 571, and include the following : 44

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o. 1 ransm1ss1on sniT! lever sequence, starter InterlocK and transmission braking effect c. Windshield defrosting and defogging systems d. Windshield wiping and washing.systems e. Anti-lock brakes and stopping distance requirements f. Brake hoses g Lamps, reflective devices, and associated equipment h. Rearview mirror i. Hood latch system j. Theft/rollaway protection k. Motor vehicle brake fluids I. Pneumatic tires m. Tire selection and rims n Air brake systems o. Accelerator control systems p. Light vehicle brake systems q. Occupant protection in i nterior Impact r. Head restraints s. Impact protection for the driver from the steering control system t. Steering control rearward displacement u. Glazing materials v. Seating systems w. Occupant crash protection x. Seat belt assel)1biies and anchorages y. Child restraint systems z Roof crush resistance aa. Bus emergency exits bb. Windshield zone intrusion cc. Fuel system Integrity dd. Flammability qf interior materials 45

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This independent Federal agency is mandated to investigate every civil aviation accident in the U.S and significant accidents in the other modes of . transportation, Including transit. It also conducts special investigations and safety studies, and issues safety reCommendations to p reven t future accidents. The rules of the NTSB are located at 49 CFR, Chapter VIII. A NTSB Special Inv estigat ion Report issued on November 17, 1998 entitled Transit Bus Safety Oversight (NTSB/SIR-98/03) prompted this program. Specific recommendations of the investigation to the U.S DOT included the following: "Collect accurate, timely, and sufficient data so that thorough assessments cah be made relating to transit bus safety. Evaluate the collected data, as part of the oversight program, to iden tify the underlying causes of transit bus aocid ents tha t could lead to the identification ofsafety deficiencies at transit agencies." Florida Department of Transportation In addition to Federal safety standards, Florida Statutes include additional minimum equipment and operational safety requirements that apply to all public transit systems and privately owned or operated systems under contract to public agencies The rules include a requirement that operators prepare a System Safety Program Plan (SSPP) document that illustf:ates a comprehensive organized approach and guide to accomplishing a system wide safety program. Standards related to management, vehicles and equipment, operations, driving requirements, maintenance and training must be addressed Although not an exhaustive list, examples of the requirements include: Annual and daily safety inspections 46

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Training for special equipment including wheelchair lifts and securement devices and ramps Drug free workplace policies Detailed records of inspections, maintenance, lubrication and vehicle mileage Regular physical examinations and documentation for operators Accident reporting procedures In-service and out of service vehicle operating procedures Veh icle equlpmeflt requirements Accessibility requirements for persons with a disability System safety certifications Contracting Procedures As presented in the best practices section of this report ; it is very important to be precise in the solicitation for contracted services. The scope of services, contract terms and condition, and evaluation criteria should be clearly defined. Fixed Route Contracting Services Decision Process Table 3-1 presents a simple process for evaluating and considering contracted services. Throughout the research effort, there was no evidence of a common reason for an industry-wide decision to operate services in house versus contract services or vice-versa. The decision to contract was based upon local conditions and objectives. In gathering information and interviewing ; CUTR formulated a step-by-step approach to aid in the decision making process regarding the feasibili ty of contracting fixed ro ute servic es with Intervenin g decis ion points between each step. 47

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. .. ........... ---::' ....... -...................... ................... ....... . ... . Step: 1 Specific Objectives for Consideration Improving Service Cost-Efflclericy Minimize Investment Risks for New Services Decision Point: Continuo or not Step: 2 Internal Analysis of Specific Service Costs O&MModel Directllncremental Modeling Capital Analysis Local Funding Source Analysis Decision Point: Continue or not step: 3 Candidate Routes System Connectivity and Contin uity Route Deadhead Analysis Specific Market Niche Route Characteristics Public Involvement Decision Point: Continuo or not Step: 4 Request Letters of Interest Meeting with prospective bladers Input for potientlal RFP Decision Point: Continuo OJ' not Step: 5 Issue RFP DetaHed Scope Detailed Contract requirements Evaluation Criteria Contract Terms and Conditions 0Gcislon Polnt: Continue or not Step: 6 S tep : 7 Public Board Approval Negotiate and Contract Contract Administration Operating & Capital Oversight Incentives/Penalties Monitor ing 48

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.. 1) Extent of Transit Service Contracting In the United States . As explored and documented in the l iterature research, contracting services is not highly unusual in the industry. Contracted services are ' more prevalent in providing paratransit services, as currently practiced by LYNX. I n a recent comprehensive survey, fixed route contracted services accounted for only s i x cent of the total service provided by public transportation agencies. 2) Reasons for Contracting Services There does not appear to be a clear-cut answer of whether or not to contract transit services. There do appear to be some common reasons . . for those agencies that do: a. Reduce operating expenses b. Enhance the ability to start new or expanded services quickly c. I mprove cost efficiencies d Create a competitive environment A common theme seems to be that agencies presented with opportunities for totally new service use contractors to reduce the risk of capital investment and new personnel for services that may not prove to be productive. Miami Dade practices this approach with any new grant funded service 3) Issues Related to Contracting Services A number of Issues should be considered in the decision process for contracting services: 49

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o. _<.;apttal Investment c. Labor Relations I DOL 13 (c) Emp loyee Protection Requirements d Contract Oversight . e. Detailed Scope of Services Defining Contract Incentives and Penalties f Operating and Capital Monitoring I Reporting g. Environmental Justice I Title VI/ Public Participation h. Continuity and Connectivity with the Entire Transit System . i. Local Capital Program Impacts and Funding Methodology 4) LYNX Comparative Fixed Route Costs Among Peers LYNX compares favorably to its peers with one of the lowest costs per revenue vehicle hour. 5) LYNX Candidate Routes for Contracting Analysis LYNX provided CUTR with four select routes (Links #12, #26, #32, and #4 7) considered best suited for potential contracting. LYNX selected Links #12, #32 and #47 based on overall service performance and the ease in which they could be contracted without interfering (lowest performing routes that were not interlined) with other routes in the system. L YNX selected one route from each jurisdiction to estab lish equity among its funding partners Link 26 !s a proposed new service that was selected . based on the fact that it may be more acceptable to contract a new service vs. an existing route. Based on LYNX's route determination assumptions, it was reasonable to se lect these routes for evaluation. However, because these routes are among the poorest performers they would likely be eliminated In the event of budgetary shortfalls. Also, because these routes are widely dispersed geographically, potential bidders may find it difficult 50

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operating costs would be higher due to excessive deadhead miles If the solicitation results in multiple contracts, LYNX contract administration costs would also Increase. 6) Advantages I Disadvantages for Potential LYNX Contracting Table 1-7 provides a list of advantages and disadvantages for consideration of contracting fixed route services. I . 7) Suggested Approach for Further Market Rate Analysis Contractor costs have been speculative based upon like services and general market rates. Only a refined scope of services and RFP would provide a specific price quote to compare with LYNX existing operating costs. In summary, LYNX does not exhibit any out of the ordinary industry costs associated with its directly operated fixed-route services as compared to its peers in the transit industry. LYNX's approach in defining potential candidate routes for out sourcing is re asonable based upon performance criteria. LYNX has a sound methodology in developing direct cost allocations as well as its O&M cost allocation model. The capital component of LYNX's direct cost allocation model is valid, however local funding has not been incorporated into actual costs due to eligible soft matching with federal grants. Whe n considering contracted service . costs, there still remain organizational costs associated with administering a contract and fulfilling service and capital obligations. The related research cenducted for this analysis emphasized the importance of defining specific objectives when considering service contracts Service costs and the ability to respond to new or expanded services are the most pronounced 51

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contracted services, the scope of the contracted services and the associated agency requirements to fulfill federal or state obligations are critical contract elements. It is suggested that contr
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APPENDICES 53

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University of Central Florida Transportation Services Specifications and Bid Summary 54

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U. S.PEC!FlCA.'l'lONS The Ua.lvmity o(CC"'t(al FJOrictahas 8 services to UCF; and to local sllillated ap-and*. ll'Cl' Caiopus. Spoe!fica!Jy, Kl!lghts !CrosshtgApartm..U,lo:at< at 12101 FL 32817, o!od, J<',q!!hts Court AplU'tJDWU,IO".>!<'.ng Somestor) excluding UCP <=8Qizcd boU.DiiWsi>ts Coort ..... u.e to tho UCP Campus, C!FloridaBIVi Blvd. Nonb v;aA!afaya 'll-ail to Grcei

d<:Drlve to Aquarius Agora Drive to Pcpus CUcle. (nc.ar C(:t)l!!l'()ftampm., at tmio:o). Su.b}tetro c.hCJrBe, bassd on tfls at die l/Jdv6.rl1ty's lilt v;.., o .ft:lllli>oS. 2 > EQUIPMENT lmQIJlREMENIS 7'!te ofCCDtral Florida rc:qllirt:i3 woriciogbuses/s.huttles wi1h tho eapadtyto b.<>l4 a Dtl.nimum. ot23 $tc1.dtots l<>ad, blelu4io.a for wiU ptovido three (3) WOlkb:lg lmseeltb.llttles mutlng thefollowiug specifie;.liom: 2.-door access (front and tear oc middle) 55

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UNM'i\SITY CliNl'l:ALFLORID.o\ Bll>l: 2HTSCOltR:r & Perimeter seating Capaoityto b.old 'minimum ofi3 studenW,#r.JP.,id including mndeca Acas to UCF frd licensed in FloridA Motor VelliclC'!aws and . ; : Vehicles will becquippe.d with c!esrlyvisiblc t o d.isple;y specllic: route:umd to identify ite.s part of the UCF b.WshuHle system. Vehicle will be oquipped wifit properly fimctiOD(Qg climate colllrol systems The Cooltactor will make ava!J.eble, witbin30 minutt4, &ddilional buses/shuttle for immediata substitution in the eventofuu:cbanleal f3ilure, damage repairs, orregular roaln!eDante inspections, :Replaeemeotvehicl.csm.U&I meet all vehicle specifi.eation& lioted above 8Jld be no older than five (S) yean;. UC!' sbaU retain the exclusive right to reguloteand administor aU lnformation/advertlsillg.on buses. The University will be allowed to clisplay siS!!" go d.iteoting UCF ridors oa procedures to follow foroompleints, C9mments, or suggestions. : will !l2l usc a Univcrsey ofCcnttlll Florida identified bus for any tmD!portatio:i a ctivity othe.r than scheduled rom. scrvieo witboutpiioi i,PJ.>ioval Conn UCI' Pad<:iujyPolieo SO:vi.c:es. ... . . Food, bcvQOges, bicycles, and onimals (guidc-tioo) will not be ped equlptnoat Inspections will include Hems related to saftt)i m>d appearance. The Contractor shall make eva!J.able to lhe University..ip011nquest a eopyoflhcir ,.,iw firumcialreportdoriu8 ihe eotitotenn oftheeonlr.!l:t. Ar1y aoeidentiOSultiug in injuey 10 a passenger or to a vellicle will beimau:diatdyreportcd to the prop authorities. The UCI'Parkil>g Services aod the UCF Police Departmentv.ill bo DOtified wi!hln 24 hours, itt writing, with aeopy of the Police Report abaehed.

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' . VNJVE.Wl'Ys shift. MAII'o"''ENANCE A<'ID Coutnclor ehall bcJespouiblo for complete deaD. and in o.eatconditiou boohlnsid o md out. bonoma.intcn_ltlleo 1\cllities available ori C3:fllpus to petfunn these fuocti.ons. All opetablodwing appropriate weather coaditiollS. T'ae interior of buses m\I.St be kept clean aod free from dam3Re. The. foUowio& is a liU of itans tbat mus.t to bol!111iotained: FJoon kept 1i'ee of dohris 'l"t':ub cmptiocl Stal:9 cbooked for aeoeral Upholslcry damage O::r.d.dti,. stW., etc. WUldows must be clean and Dt:c ftom any damaie or obstruction co visiO'Il. ex1c:::iOT body must be kopt olean o:nd Uom and rust. Bluo:;/#huulcs \'.ill hl'l wa.1bcd tt le3St ooco per '\\ttk. The $hall DUUntainrceords iDeluding and repaiu 'Ibese rccoOls bC llVB.iJeble 'for by duly 1i : : aulhoriu4 UCF personn,1b:ulty, staff; v;,;.., awl the sum>UlldiDg community. UCP retains the rigbt to exerc:iso employee(&) as..tigned to the bust shuttle syarer:a poses a threat to lhe cal'cty or wclfare ottbc Uni'f"er.sity commtlQity. The Uo.ivenitym-ayi'(:IQUlrotho to tu$pcml or tenninsttr $UCb withorwilho u treason. 57

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UNMi'P.SITYOFC$N'l"ULYL0JUDA BaOif: 2019lCA OISNS: D .2CE.\CDEAit.2001VM . . . . A)J complaints involving driven, e:q\ilpmeot, and a.eti-on t&ken. Ddvcrt mu.st be notified. bytbe Contmefor, of any filed against tliem. :, I 1.1 l'ASSENGEltS ColltUietoc dWl allow ill}' pawn with a v3lid PCP. at each designated tbat )<>ut 'l"otation be buod upon SchOduW/Jqu.'pmaQt Specifications. Clearl y eaclt devi.ation oa the ofthis bid. ' : . 58

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tJNIVERSlTl.' OF CEN"IRAL l'LOlUl>A Conttactual Suviw A,rrt.ement Co.ntrattor. Coacl:l USA Orl.tnd.o C.otno:t Tit!" Tr..,pomt!o Servka, lW:l>lsC.!>
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. UnJversity of Central Florida BID/PROPQSAL TAB.ULA]ON Tm.E; T!W!!O!I!!!oeSfm.Kn!!ihbC...t&KnjgliKtoOsms O.bb!t Lo1111 OPENING DATE: 0!9!fDbor 18.1(101 TII!E: 2;00 oi.m. POSTING ME/ DAlE: FROM ?4 TO /iJ.li./M. I ;.,.,tA( 1p :ot illt g l\ltpw, !1.01) I I

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61

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International Drive Master Transit and Improvement District First Class Coach Contract and Scope of Services 6 2

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Ai'!ENQED Ai:
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Ss;st lon 1. I>cOnl!ions F or tbe purposes of lhis. Agreement, the: followin g terms and words shall b3ve the following meanings: "Advcnisin.g Revenues" n1eans the pteeds recehed b y the D is trict from the of on or about thC Trolle}' S by the D istriG( lO third part ies. "Effective Date" rneans Novenlbt:r 7. 2000. faret>ox Revenues" means aU of 1he revenues c ollec ted f r o m the fares paid by passengers riding the Trolleys e ither in the f orm of money paid a t the lime of boarding the 1)olteys or by advance sale of passes-by the pis trict. "1-R.ide Service" means the public transh s er v ice to be provided by the Company through the cperatioa or tl te Tro ll eys i n the SU$ S ervice Are-a in accordance w it h t he 'I'roJJey Opesations ;'IS the sam e may be amended from c ime tO tillle. "TroUcy Opcradom P l an'' mearu the amended operations plan for the 1-Ride Service WithOUt li mitation the amended scope Of with schedule Of COS IS, prepared by t'ae D istrict and reviewed and approvb:l by tbe Company and attached hereto as Exhibit a s such plan may be changed or Cuuher amen ded from time co time in accordaooe with this Agreement _,.!T.S
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Msxi Trolleys 111nd lhe Exls(ing Trolleys (oollectlve]y. che "Trolleys") shan be identified by the \'Chicle i dentification number s co be by the mtanuro.aurer a n d d c li \'ercd to the Di.uriOJ on or befor e the Effcecivc'Oate. The color scheme fOJ" be c:llaraed and the: effccdve 1t:".trt0f. 'l'be Oimic:t m11y modify or alter its fare at any tlrne. whhouc d'.e consem or approval of the Compl\flY. Sec tionS. COQ([QI Q( Service PJan of Transit Operatiorn P J&n. (a) The District ball control aU cbe compOll0111sofclie IRide Setvice and may modify, amend or supplem ent Trolley 0p(rations Plan at any dme after wriueo notice to the Company, wbic:b nocioe shall specify lhe dfocrive date for the implemeMirion of any such mod:ititatlon, s.meodmertt supptemenr. The TJ"'O)ey Opc:ratiortS Plan is abO 5eubjec:t &o modification by the Coo!puy, in occordance 'icil rasob!e ll< reccipc of dle prior written IPPf'O\' al of dlc: Dislricc. (b) n-.(1 Company shall deliw:r and imptmteftt all components described in tile Tl'otlcy Operation$ Pl3!' co the District's rtasonabl e $ltisraai on. A dispatcher wUI be on.duty at all times while me Tro lleys arc In serVI. All Trol1eys win be on cwo Wa:J radios equipped wit h a pdvtue ch3nnd tO the Company's ga.ra,gc, dhp0tchcr and on s.ile supervisor (c) In any eve n t resulting i n less than eleven (11) Trolleys b e ing i n service, tbe Company shall make til diligen t effons t o l ocate and p lace io serv i c e temporary s nd/or repJ:!Ument troUeys reasonably acceptable rome Di.saict wlqtlD riftC\:n (15) calendar days or such eyent. In any such event the COmPJtlY shall be li able f'or 111y and aU actual damages (int1\I(Hn.a cons:equeru:ill d&miJCS) tO the District .stemming from the unavailability of the TroDey(s) and/or Lie use or subsdMe uoUeyl up to me amouDI or the Leuu of Credii (herein defmed): pcovided, -..r, ch< 0>ml"ll1 sboll no< lie rtSponsi1>1< fe< any >ueb if >ueb ""'vailabilicy is doe 1<>: dlC DWri<:c' s roquest rw cpandueb expanded ..me. wilb tl:e O.!Hilt Ot spare-TroUey(s); or (ii) dte Discric:c' s request for o:ac: Of mote Trolley(s) be ina mad e a .. aila.btc for palndng or otMr pte p arations of lhe Advtrd.sl.na Display on chc Advenisina: Spaoe 65

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Sect t o n 6. Owntnhip of firebox ttevenues. a Alt Fatebox Revenues sha ll be owned by t he Dlsuie t and sha ll be by d.e Compa n y pursuant to Section lS hereof. The Company $pCCHie11.11y disclaims any right, tirl e or interest in the FarebOx Revenues. SeyliQn 7. A dvmjsig a &cvent,'e$. (a) The parries Chat it is in tbdr muttAI best aw me Di.sD'ia should have me rigtx.. as i1 deems ncccssaty and appropriate. c o sen. &ease, assi&n. convey. graat or odw:rwbe make aYailable .some a n or the Advertis-i.og Space co Othtr pct1011S and tbat co accomplkh lhis result the pan.ies find ic tO be moSt erfective, effie ienc, and pracdcal tba t me Company asslga A ll of the righLS ro e Diwict and sball be paid U> me District. Tbe Coclopony specifiCllly discl aims any rll)n. Iiiio Of iDtC r<$1 in the Ac!Vcnmn& ReY
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(i) I fa Trolley on which Advertising J?isp lay has been applied r e mains inoperable for a t fifteen (15) calencbJ days d uring which such Display was t o be exhibited. then th e Com p an); shall provide tbe District a credit for such lost of use equa l to t he lost Adve nising Revenues occasiofioed by such loss of use and tlle Company s h all pay aU costs associated \Vhh the applicatio n or p l acing o f the Adenisins Displ:ay on another TroUey ( incl\Kling. withou t limitalion, the cost of reprOdu c ing the Advertising Display on the Trolley in addi tio n to the Jos:t Ad\ertisiog Revenues specified above) at th.e earliest time when a Trolley is a\aita blc for s uch purpose SecHo n Company' s R i ehq for ibe Company shall p r o i d e e:dcquate anistrict for a n y cla im. damage$, cost s ai-14 expen$::s ar ising out of the Compaoy's failure to make a n y payment to suth tax.ing agency, includins c 1 3ims by the Jnteroal Revenue Service and Deparunent of Labor, re l a ting to its employees or independent co ntractors. The Company agrees lha t neither the Company nor its s ubcomroctors or asems (if any) will d iscriminate any employee o r appJicant for employmeru because o f race. religion. color, se.x, age physical handicap or na1ionat origio. except where sex. or absence of physical handicap ls a bona fide occ.upational qualification, and that the Company will execute and cause each of its subcontract ors (i f a ny) lO execu1e any such e enificates and c ovtnams not tO discriminat e as may be required by any sovernmcm.1.1 authority, and the Company s hall comply and cause its subcontractors or agents (lf any) to comply, with all applicabl e state and local laws, regulations and ordinances reladng to such matters. Tbe Comp;:ny shall, in all solicitations and advertisenlems fOr emptoyoes placed by i1 or on behalf state lhat all q u alified a.ppljcants w ill receive considera(ioa for employment withou t regard to their race, reJigiort. co l or, sex, n.at iona.l oti g in, or phy:si<:ll disability. 67

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The Company and agrees to ma1. all diligent besc effons to comply with the fo1!owing guidelinestsoaJs in the s cafti'nglhiring practices, with subcontn.c rOJ'$, purcbasl, ns practices ete: African Amcric.ar.s Hispani c Americans Women Asi a n Ar:neriCllns Native AmeriC:!nS 1 2 90% 4.50 6.00 0.65 0.65 The Distr i ct acknowledges tha.t tbc! foregoing guidelines/goals do not pertain or apply co tM owncrs.hlp o f the Comp:my. Settion <1. Comoany'f. and R;sppnsib!lities for Mai ntai n jne Egujpmem The Company shalt the exlusivc right ;md responsi bilities for maintaining an of jlS equipment, In a:eeordance with the applicable -PerConnance Measure$" set forth In the rrolley Operations PJan. The D isui e t shall have no obligation for such and may, at any time. inspect the Company's facil iiies and the trolleys for the purpose of monitpring 'the perfonnance of tbe Company's maintenante obligations here u nder. The Company shall maintain a full y equipped and licensed maintenance facility locat ed within the Cenml Flor i da region with trained persol".ncl sufr'icient, in aU aspec t s tO servkc, maintain and/or repai r the Trolleys. The \.ompany shall at all times, maintain the Trolleys in goodJepair and condition and m u s t upon request of the Disttict, demonstrate repair r e c ords aM proper spa r e parts iovcnlOr y ror the Trolleys All part$ aod equipment required for the safe, retiabJc a,nd, efficient optralioa of the TRide Servke shall be t he responsibility o f the Company. HaQdliog o f Farebox 'Revenues The Tro lleys shall be equipped with an clettronic farebox and the Company' s drivers will nO( handle cssh The Company shalt credit the District with tbe full amount of the Farebox Revenues coUected on a monthl y basis on its i.n\'Oice t O the District for dte related month. Tickets a n d/or sMJJ be sep3ratcd by category and da ily. we,ekly, momhl y. and year to date repons wiJJ be generated for review, as and when required by the Disrria 1 1 Dimi c t RjgbJs. and Responsibi1ities for Use of th;; The OisnK:r sN:II have lhe right a n d responsibilit y co establish the route(s) to be utitited within the Bus Serv ice Area. The D i strict shall have the sole use of the Trolleys for the exc lusive use t o the l Ride Service <'IS (!therwise ptovlded herein. from time tO titne. The Company 68

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s h all also make the Trolle y s ava ilable for speci a l events, as desi red by the Discrict a t the same . h o u r l y rate as called for h e r e m . S e c t jo n 1 2. Righ($ and Responsibllhjes for Performance M onitoring. Ttte District shall nave the right, at its sole disctetion, to monitor the performan ce by the Company of it> obliJltions and responsibilities under this Agreement. The Coinpany sh> ll compile and provitle w 1hc District on a periodic basi$, as requested by the District, 1hc performanc e repons. monthly invoices, route mileage repons. route ridership repotU, Men or service report$, Farcbox Revenues reports (by category), customer se.rvice su.tisties, lnc:ident r eporu. service eVt1U3tion. customer commems, vehicle maint enance reporu and sartty performance repons. The Company shaH make an appropriate repr ese n tati v e o r represencativcs availabl e for period i c meetings, as r eq u e s t ed by the Distric t Th e Company shall a l so make availabl e all o f itS boo k s and reco rds r e lated to the 1-Rlde S ervice and. t h is Agreement for i n spection and/or audit by the Distr i ct and/o r it> agentS, as and whe n reques t ed by the District, afte r reasonable noliee. Seetion 13. Djs1dct Rjgbts and for Eloan$iM Needs. The District shall have the right, in irs sole discretion to eJqlOnd the route(s) to be covered in the Bus Service Area, or 10 then applicable Commercial Arbitration Rules, unless tile panies mutual ly agree otherwise. Or.ce an arbi trator Is selected, 1hc par
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for h erein ond any thereof prio r tO the or h e:Jring shall be ine.rfe<::tive. No demand for arb itr ation may be made after the date w hen i nstiiUre than four percent (4 51) on November 7"' e>f eaeb year durin& the term of !he A: ... mru or any extended term tllereor. Notwithstanding the forege>ing, in !he e\'ent dJe Disaia eleels 10 elimin"e dJe fare on the 1-Ride Setviee, the Company hereby aareet that the Hoorly Rate shall be !tduc:ed bY an amount to be mumlly &&reed upon bY !he Di>urs for the Company during the preceding month, the number of passengers carried o n t h e Trolleys, and the Fare box Revenues ce>llecled by the Company. II s hall report that information to the DiS! net togetherwilh a statement or invoice in the amount of !he pay men< 1 0 be made by the Dislric l to !he Company. Th e District will review tlte infonnation a_nd dle invoice and shall, whhin thiny {30) days of invoic:lng, pay the Company the amount of the invoice, less any dlspUied amounts. (e) In the event tblot the District <>r the Company (upon !he prioc written approval and eomeru of !he Oistricl) elect$ 10 add new 1rolley vebiJieys, the following Hourty Ra1es will apply: 70

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On or before May 07, 2061 On or before November 7. 2001 On or bef ore Ma y 0 7. 2002 On or before Novemb e r 0 7, 2002 O n o r before Ma y 07. 200 3 O n o r b efore Novembe r 07. 2003 On o r b efore May 07. 2004 On o r b efore November07 2004 Hourty.Ratt.IPer New Trol!t;y Addtd or $42.13 $42 .30 S42.55 54 2 .91 $43. 5 2 S44.74 $48.40 $55.92 The r aensive Jiabilhy insurance p o licy for the Company' s operadons such as the 1-Ride Strvice, and that t he com or s uch insurance co verage is jncluded i n the CompAny' s hourly cost o r seC\'ice .specified in the schedul e of COSt$ which is Includ e d in the Trolley Operat i o n s Plan, and that su c h coverage is suffici e n t t o prolect the District its officers. employees. a&ents a.nd directors from any Jia bili\Y ruuhing from any neglig e n t or willful acts o r omissions by the Com p any or any of its employees o r agents occurring. in o r around the Bus Service Area or ror the Servic e The Company shall also maintain sururory workers compensa1ion insu11nce with a limit o r not Jess than five buodred thousand dollars (S500, 000.00). Not later than five (5) business days be fore the Effective Date. che Company shall provide the District with satisfactory proof of insurance as required herein which shall also reflect the District as an additional insured. (b) Letter of Cmlil. On t>r before the Effective Date, the Company shall obtain and deliver to the Distric:l a leaer of credit in form and substance accepttble to the Disnict, in the sum of Sl.OOO.OOO.OO from Bank. Tampa Bay or such other bantdnglnstirurion as m a y be reasonably acceptable to the District, for the b e n efit of1he District, to serve as a performance bond and to be ac1iva1ed on the E f feive Da
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oi this have an expiration date no earlier1tum one (l) year after the t hen applicable expiration dat e of this Agreement. )7, Indemnification. (a) lndemnjfication bv the Djiqjg. Subject to the lim lcu:ions hereinafter $Ot fonh, the District ha'eby agrees to the cxtell( permiued by law (ponieularly including Section 768. 28, Florida Statutes, and any successor provisions theretO) to indemnify and ho!d harmless the Company. its officers, members, employees and aaCnts from and against au loss, cost and expense in COMection with proceedings, judicial or otherwise, and claims, demands and judgments, tOgether with cos t s and expenses including anorneys' and. legal assistants' fee-s and Cltpenses relating therero including but n o t limited tO fees incurred in the handling or preparin g of claims or demands and alllitigadon at trail or appellate l eve l s, arising from the performance or non-performance of the Dislrlet's obliglltion s unde r !his Agreement (including the inability or ftllure of ttie District to perform iL< duties and obligations hereunder, specifically includin g the payments of tbe Company contemplated by Section IS hereof), resulting direclly from any negligent or willful aCIS or omissions of the Di.suicc or any employee or agent of the Oisuiet and oot subject: to bY the Company t o Subsection 17(b) hereof. (b) Jndcmolfication bv the Company. Sub ject to the limitations herein2fter set fonh. the Company hereby agrees co defend and h old lhe D istrict its director s offocers, employees and agents, harmless from and against all loss cost and expense in coMeet ion wilh proceedin gs,judicial or otherwi se, and claims, d emands, and judgments, together with costS and expenses including anorneys' and tcaat assiStants' fees a n d expenses relating thereto, including but not limited 10 fees incurred In lhe handling or prepa.rina of claims or demands and all JiUgatlon a.t U'ial or appellate levels arising out of dam;ge or injury to person o r propeny occurring in or about the Bus Service Arta and froni the performance of lhe services and obligations by the Compa.ny under this Agreement, or any manerrelating co lhe Company's compliaor failure to comply with any federal law, regulation or policy, or lite Company's inability co provi
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(2) If an Indemnified Pan y shall discoyer o r have acrual notic e of fac t s living rise or which may give r ise to a clai m for indel)lnification under this Sec tion 17 or shall re<:.eivc notlce of any action, with respecrto any matter for which indemnificalion may be claimed, the Indemnified Party shall, within ten (10) days f ollowing service of process (or within such sboner dmc as may be neetsSary to give the Indemnifying Pany a reasonable opponunioy to respond to such serv ice of P>CeSS) or within ten (10) days after tny other such notice, notify lbe Indemnifying Party in writinJ thereof together with a statemetW of ruch information respecting such matter as the Indemnified Party then has; it heiOJ undersiOOd and agreed that any failure or delay of the Indemnified Pany t o so nod!'y the Indemnifying Puty shall not relieve the Indemnifying Pany from liability berilied Pany a reasonable opportunity tO respond co $erviee o( process or Othe( judicia) or adminisrrative accion), the Indemnified Party bas noc .received no!lee .from the Indemnifying Party, tile Indemnified Party shall have the right t o ( i ) authorl:ee auorneYs and others satisfactory lO it ro represent it in connection therewhh o r (ii) at any lime $ctcle, compr omise, or pay such action, in either of which eventS the Indemnified Pany shall be e n tille d to indemnification therefor $Ubjcct to this Section 17. (3) I n the event and $0 l ong as the Indemnifying Parry is a ctively contesting or defending agtinst an action as h ereinabove provided, the Indemnified Party shall cooperate with tbe lndemni!'ying Party and its counsel in such contet or defeose, shall join in making any appropriatec:oumerclaim orcrossclalm in conne<:tion "ith the action, and Shall provide such aocess to che books and records or me Indemnified Pany as shall be necessary in connec1ion with such defen:se or concC$t, 11 Ute so!e cost and expense of the Indemnifying Party. Notwithstanding that an Indemnifying Party Is actively eonduecing such derense or contesl, any accion may be senled, compromised, or paid by che Indemnified Party without the consent of t h e Indemnifying Party; provided, h owever, char if suc h acci o n is caken without the Jndemnlf'ylng Party's consent, its indemnification obligations in respect of such claim shall thereby b)' nullified: Any such action may be setded, compromised, or paid by the Indemnify ina Party without the Indemnified Party s consent, so long as such scttJeme.n or compromise does not in the reasonable opinion of me. Indemnified Party. cause the Indemnified Pany co iimlt any present or future costs, 011pe..es. obligations, or tiabilitiesof any kind or narure, in which .-em the lndernnlrying 73

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Parcy's under this Section 17 shall extend to such costs, expenses, obligations or liabilitle$: . (4) ln the evem any action involves mauers pardy within or pardy outside the scope of the indem.nification by the Indemnifying Party hereunder, then the legaJ fees, costs, and expenses of contesting or def ending such 2.cti o n s hall be fairly allocated between the lndernnifie
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(b) f.vcms of bv t h e Cllmpanv. In addit ion to mailers s p e cified e lsewh e r e in this Agreement, the following shall constitut e events of default by lhe Company: (I) The Company shall fail to provide lhe -Rid e Setvice o r fail to comply with the "Performa nce Measures set forth in Trolley Operations P la n; or (2} The Company shall fail to maintain at least e leven (11) Trolleys in service pursuant to Section 5(c) hereof ; o r (3) Ani petit io n in bankruptcy o r for reorganization or liquidation shaJI b e filed by the Company under any ft<1ecal or S t ate banl
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(1) Injunctive relief to enjoin any t\C( or omlssion whjch constinues a.n even( of defa.utt t?Y the defa\lltin.g: party or 10 compel Performance of the covenants. agreements, tenns and conditions of this Agreement. (2) Reimbursement for any damages suffered by the nondefaultin& party, inelttding, without l imitation, acrua1 dama.aes tnd consequemial damages. provided lha.t the parties recognize that the liability of public aaeoeies in the Stare of Florida, including the District, for monetary damages may be limited by Florida law; or (3) OffKt any amounts owil\8 from the nondefaulting pony to tbe defauldll8 pany purs'ilam l O this Agre-ement against any amounts owing ftom the defauhin.g party to the nondefaultina party pursuant to this :Aareement and not paid due to the event of default; or (4) Termination of this Agreement os provided in Section 19 hereof. (d) GtneraJ P rovisions. (I) No right o r remedy herein conferred upon, or reserved t o the Company or the District Is intended robe exclusive of any other righr or r emedy, but each sl\all be cumuladvc and in addition to ()(her riJhl or remedy given herein or now or hereafter existing at law. or in equity or\?)' uanne. (2) No waiver by either pony or any breaet.> of obligations. agreements or covenants herein shall be a waiver of any subsequent breach of obligation .I\Breement or covenant, n o r shall My forbearance by either party to seek a remedy for any breach by the othe r party be a waiver by such parry of My rightS or remedies with respect to s u c h or any subsequent breach. nor shall aey express wai\er by eithe r party b e deemed t O appl y to any other exi s t ing or subsequent right to remedy any default by the other p arty, nor shall any wal\er by eith e r po.ny of any or breaeb by the orber pony In the performance of any of the covenants or obligatiom of such other part y under this AJre.plni t which the waiver is soogbt t o be cbar&ed uoless contained in a wnrina c xeeuted by such pany. (e) Jionddayl t jng J?irty's lii gbt W Cme Qc(auhs After the time when the nondefaulting party has given notice and the applicable grate period provided has expired, if any sums payable by the defaulting party shall remain due and payable, or a ncr the time for J>erformance by the defaulting party of any other term, covenant, provision or condition of this Agreement, or before the expiration of that rime in the event of a bona fide eme rgency (in which ease the n ondefaullina p any shall not be required t o glvt such notice as is reasonable and practical under lhe circumstances),the n ondefaultiog party may. at the noru:lefaultin& party' s election (but without obligatioo), mtke any payment required of the 76

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' defaul!ing pa11y under !his A greemem, or perrorn\ o r comply witll any c ovenam o r c ondition i mposed on the dc(aulting. p a n y under thi s Agreement, and t h e amount so paid plus the cost o f such p e rformance or compliance, plus re asonable iniCrcs t s hall be collcx:cible b y the n ondefaultlng pa.n y l n order t o collect such reimbursement, rhc n ondctauhing pan y shaH have all tbe remedies available under this Agreement ior default and the p a yment of the m onies due hereunder including reasonable attOrney's and l egal assistants' fees and e xpe-nses. No such payment: petfonnance or obsctvance by the nondefaulun : pa11y shall c:onsriiUie a waiver of default or of any remedy for def.auh or render tbe nondef.aultina pa11y liable for any 1oowledge and ag ree that f o r oflhls Agreement the Compar,y 1s an independent contractor and is not an Bgcnt, parmer or e mployee of the District. The parties fur1her agree that for purposes of this A&rcxmcnt, as we11 as the services tO be pro1idod b y the Company pursuant 10 this Agreement o r the payments to be made by the District tO lhe Compa.ny, the Disttict is not an ag:ent, partner or emp1oyff of the Company: (b) No alteration, ameodment or modification bereof sba!l be valid uniCS$ executed by an instrument in writing by the parties h ere10 with the wne formality as this A&reement. (c) The faiJure of the Dlstricc or 1he Company to insist in any one or more instances u pon the strict performance o f any o f the cove nantS, aareemencs, term s provisions or condidons of this Agreement o r to exercise any e1ecdon herein conlained sha\1 not be construed as a w a i v e r or relihqUi$hmen t for the futur e of suc h covenant agreement, t erm. p rovi sio n condhion e lectio n or option,' but !he sa m e s h a l l comi nue and remain In f ull force and e f f e ct N o waiver by the Di strict or the Company of al1y c o ve nant, agreemen1 term, provision or condition of t his Agreemeot shall be deemed t o have been made unless e>pressed in wrl!ing and signed by an appropria1e offtciat on of the Dis uic1 or the Company. Ne-ither the payment by eilher party 77

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of sums due and payable with knowledge. of lhe breach of any covenant term, provisions or condition herein contained. shall be deemed a waiver of such breach. (d) If any article. -seclion. s ubsection. term or provision of this Agreemem or the application t hereof co an y party or circums tance sh all to any extent, be invalid or uitenforc:.eable. the remainder of th e anicle section subsection, term or provision of th is Agreement or the application of the same to parries or circumstances other than thOse to which it is held invalid or unenforceable shall not be affected thereby any each remaining anicle section, subsection. te r m or provision of this Agreement shall be valid and e nf orceable to the fullest ex. tent pcrmiued by law. (e) AU covenants. stipu l ations, obligations and agreements of the Dis t rict and the Company contained in lhis Agreement shall be deemed to be: covenants. st ipulations. obligations and agreements of each of the District and rhe Company, respeaively, ro the full ment authorized by law ar.d provided by the Constitution and laws of the State of florida Any and all provisions of this Agreement and a n y proceeding seeking t o enfor<:e, challenge or othe
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or supplemented orally, only by an agreeme nt ip writing and s i g n ed by both parties. (j) AU notices; d emands. consent s, approv31s, S(atemems, inquires and invoices co be given under this Agreement shalt be in be in writing and shall be delivered to the addresses shown below or to such othe r addresses that th e panies may provide t o one another in accordance herewith. Such notic es and o ther communica1ions shall b e given by any of the following means: (a) p ersonal (b) national exp(ess air co urier, provided such courier mainEa.ins wriuen verificatio n o f actual delivery; or (c) facsimile. Any notice or other communication given by the means describe d i n illb!ectlon (a) or !Ill above shall be deemed effective upon the date of teceipt or the date of refusal to accept deli\'ery by t h e pany t o whom such notice o r other c ommunication has been sent. Any notic. e or other communication g iven b y t h e means described in sub.sectign shall be deemed effective the date on which t he facsimile o ccurs. For the Company: To District: With a copy to: FirSt Class Coach Company, Inc. 9800 US Highway 192 C l ermont, Florida 3 4711 Te leeopy: 800/ 511-2451 International Drive Master Transit and Improvement District 7081 Grand National Drive, Suite 104 Orlando Florida 32819 Attention: LuaM B rooks. Executive D irector Tcleeopy : 4071248-9594 Nabors, G iblin & Nickerson, P.A 201 South Orange Avenue, Suit e 1060 Orla n do, F l orida 3280 1 Attention: Jean E. Wilson, Esquire Telecopy: 407/42 6-8022 (SIGNATURE PAGE T O FOLLOW] 79

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IN 'WI'rNESS 'WHEREOF. the parties hereto ha\e eJllet'ed inro this Amended and Restated T r olley Service .Agreement as of the date 1lnd year fitst above written. Printed Name:. _____ _ ATTEST: Secretary [SEAL) Pti!'ted Name: ____ _ ATTEST: Secretary [SE.AL} 80 INTER. 'lA TIONAL DRIVE MASTER TRANSIT AND lMPROYEME;-..T DISTRICT Iry: Name: ___________________ Its F I RST CLASS COACH COMPANY, 1:-IC . a florida corporation By: Name: ________ ___ hs : -----------------

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EXliiBIT !1A" TROLLEY OPERATIONS PLA-.'1 81

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. 1-RIDE TROLLEY OPERATIONS PlAN & PE R FORMI>.NCE MEI>.S URES Exhibit A as of January 2001 PURPOSE I OVERVIEW: Thi s document will provide fu ll d e t ails on the operations, scope of services and cost schedule for the I-RIDE troll ey servic e attached as part of an incorporated Into that certain Trolley Service Agree m e nt, (the "Agreem e nt") between the International Drive Master Transit and I mprovement District (tlie "Districr) and First C lass Coach, Inc., (the "Company") and to be provided pursuant to the Agreement. The purp ose of tho I -R IDE tr ol l ey s,ervice is to provide fixed route s e rvice within the Bus Service Taxing Unit for the Dis tri ct. The main focus is to provide a h i ghly vis ible, safe, effective, eco n omical, flex i ble and user-f riend l Y transit service to meet the existing and future rubber tire mobility requirements on the International Drive Resort Area. SER VIC E ARE.<>. AND ROUTE: The Gold Une Route begins at lhe Faelory Outlet World and tenninates at Sea World of FIC>rida which are the current geographic boundaries of the Bus Service Taxing Unit for the District. Within the boundaries a new s ervice was i ni6ated on December 7, 2000 known as the Green Lin e Route, which services the Universal Boulevard corridor from Its north end near Wet 'n Wild t o Its terminating point at the O range Cou nt y Convention Center. Refer to the attached route map for exact numb e r of s tops and locations for both the Gold and Green l ine routes. S t op utili:allon will be regularty monitored to mak e app rop r iate adjustment s fo r our c u s tomer nee ds. Trolley layover are as a s designate d at the Bel z Factory Out l e t W o rld and Sea Worl d. VEHICLE REQUIREMENTS : The current p l a n calls for eleven (11) trolleys; nine ( 9 ) of which are nev.1y manufactured as of FY 01 and the r emaining four ( 4 ) are from t h e current fleet, all of which i nclude the following minimum features, (the "Trolleys"): Seats forty-one (41) passengers with a capacity of fifty-six (56) passengers a Uowing for tv.o (2) wheelchair position F ull e nclosure windows with drop down eapab i lty Air conditioning I heating units Eleetronic fareboxes Stereo tape and p ublic address system with i nte rnal & external speakers -ADA I wheelcha i r approved l ift sys t em Headset for driver I op erato r s 82 version 02109i01

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wo WCJY ra010 equrpmem rot opera1or 10 communi cate with supeiVisor and d ispat cn Padded seat cushions Overhead straps foe standing passengers Brochure ra cks behind driver seat provid ing for nine (9) slots IQterlor for no drinks, food o r smoking The exterior eofor scheme for an Tro lleys shall be Color Chip #142830, An Tro!Jeys will have the logo treatment I insi g nia logo on the front i!:Od back or each Trolley which Is provided by and pa id for by t he D istrict LEVEL OF SERVIC!i REQUIREMENTS AND OPERATIONS MANAGEMENT: GOLOLINE The current setv ice p.Jan calls f or a level or $et\'ice (head .. vay) of fifteen (15) rrinu te s Servioe will be seven (7) .days per week. eac h day of the year with operalin;g hou r s from 7:00am to 11:30 pm. Final run will termi n ate by midnight. GREEN LINE The current &eiVi ee plan C(IJI$ for a level of &eiVice headway of appro)Clmat.ely every fifty (50) min utes., continuous service. Service will b e pr ovi ded seven (7) days per week, each day of the year. with operating from i:OO am to 11:30 pm. Final run w ill t erminate by midni ght. The Company \vii\ operate twO shifts daily. Estimated total a nnual hours for FY 01 for both Gold and Green l ine ope>rations is 68,255 hour s Shi ft changes will take place during off peak times of'operatkm All TroUey. s will be on a two.way radio equipped systam on a private channel to the Company's base garage, dispa:ch and on site supervisor. Current plan calls for twenty two (22) drivers daily, th a total o1 thirty thcee (33) drivers on staff all t otal. One d i spatche r will be on duty at a ll times v
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The Cpmpany ag r ees to provide t hi s special service based on the agre ed upon Hourly Rote on a minim u m of four (4) hou rs'\ltilizalionporta l to port al. CUSTOMER SER VICES I PERSONNEL ISS U ES: tt i s imperative that each drive r, s upervisor, dispatche r and customer service represent ative annually compl e te a custome r service I ambassador training program provided by the Company and the District. The Company wi! be responsible for sdleduling of these training classes on a minimum of one per yea r vAih notification to the Dis trict regarding date, time, location and training content. The D i strict and the Company will jo intly sel ect the u nifo rm(s) for each driver The Comp any and the Dis t rict will evenly s plit th e costs associa tad wi t h purchasing th e unifo rm sh i rt(s) only. All othe r uniform costs are the respo n si bility of the Company Orlvers are prohibited from solicitin g gratuities from customers. pa$seogors or loca l businesses. All personnel associated with the I-RIDE troley service wil be expected to be Area Ambassadors to the Interna tional Drive Resort Area Th e Company will be responsible for icqulrlng, maintai n in g staffing and monitoring a dedicated customer servi ce ta l ephon e n umber which is currently 407 354 -5656. This customer service t e l epho n e numbe r is to be covere d durin g the followin g h ours : M o n day throug h Friday Saturday and Sunday 8:00am to 6:00pm 9:00am t o 1:00pm This dedicated telephone n umber is to b e ans wered as the I RIDE trol l ey customer service office. During hour of non-coverage, a voice mall message service must be provided. Due to the inte
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MAINTENANCE: The Company Is required t o maintain a fully equipped and licensed malntenanoe facility which -is currently located at 3718 L .B. McLeod Road, Orlando, Florida, 32805; which pro,ides sufficiendy trained personnel in all aspects of service, maintenance and -or repair of the Trolleys .. Tho Tro ll eys must be washed and c l eaned (both interior and eXlerior) o n a daily basis. The Company's supervisor( e) must Inspect each Trolley prior to p l acing It i nto servic e each day to e n sure that it i s fu ll y c leaned and ready fo r service. The Company, must provide the District with prope r spare p arts inventory records to ensure that the majority of all repairs can be completed in the least amount of time All parts and equipment associated with the !-Ride Trolley Service which is required for safe, reliable and efficient operation, nre thEt fuU responsibility of the Company. REPORTING AND QUALITY CONTROL REQUIRE MENTS: The Company i s required to complete lhe followi119 reports which wiD be submitted to the Districl each month (with the exception of the daily ridership ufilization report) with the operations invoice: Passenger Reports: Rider s by category : Required to report utilization based on cash fare fre e rlde r s emp l oyee passes and unlimited ride passes a n d seniors segmente d by Gold Une and Green Line routes. This r eport is to be completed d a ily. R i dership categories may b e u pdated and-or revised by the Dist r i ct. Daily Ridersh ip Report: Total ridership utilization is to be reported to the District o n a minimum of three days per week. This can be performed via fax tran s mission. The Company is required to provide e COfT'9Iete summary with the monthly operations invotoe with the overall &ervice performance reports. OveraR Service PerfonnariC4: This report will Include the lcOowing elements : Daily passengor load counts Route mileage per line Revenue tota l hours Operating revenue Operating expenses Farebox recovery A verage passenger fare collec ted via cash vt'rsi o n 02109/0l 85

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. AREBOX RECOVERY ANO ACCOUNTING CONTROLS: :urrently eac h trolley Is equipped w ith a double vaulted farebox. By May of 200 1 ach lrolley will b e converted to the new GenFare e l ectroni c farebox system: \S the Trolleys come i n each day from service, the Company is req ui r ed to > rovide bonded personnel to empty the fareboxes and collect all ticlank the next working day. All accounting personnel will be u n der the guidance >f the Comptroller at the Company. >rior t o the conversion to the Ot;!W e lectronic fa rebOxes. the Company and the l i stric! will meet In order to identify and ag r ee upo n procedures and reporting hat will be available under the new system. IMERICAN WITH DISABILITIES ACT !ADA}: rhe 1 -Ride T r olley Serv ice and all equipment u ti l ized In oonnection with the 1-Ride rrolley Service, must meet all applicable requirements of the Americans with Jisabllitles Act. The Company is r eq u ired to order and operate Trolleys that lave wheelchai r equipped lifts with a m i nimum of two wheel chair tie dovm 'osi6ons per trolley. I .II drive rs will be trained i n the operation of the l ifis, a l ong wllh all other staff associated with t h e service who will be responsible fo r provid i ng telep hone a nd radio assistance in making the speafic person aware of this service through ihe customer service departmen t. The Company is required to allow all persons using common whe-elchairs (an incl us iv e te rm t h at fit on lifts mee tin g Access Board g u id e line dimensions of 30" by 48" and a maximum of 600 pounds fo r dev i ce a n d user comb i ned, wh i ch includes three-whee l ed scooters and ot her so-called non traditio nal mobility devices) access to ride the 1-Ride Trolley Service. CONTACTS & ROLES: Th e District: Luann B r ooks, Executive Director has been p l aced in tile position t o oversee the daily administration and of this service on behalf of the District. The Company: Cha rle s C u mmings, Project Manager has been placed In the position to oversee the daily administration and operation of thi s service on behalf of the Compa n y. 86

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Appendix A-3 Metropolitan Council of Government Scope of Services and Bid Submittals for Operation of Public Transit Contract Routes 87

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Attachment to the Proposal Instru c tions: 1. Scope of Work (see Proposall nwuc1ions, Sectio n 1 for ftmher inrormation) Contract II 02roos Proje c t Name: of Public. Transit Contrael Routc(s) Contractor's Responsibilities . The C ontrac t or shall coordinate, manage. prov id e for and control aU neces s ary activltic s to operate the transit s erv ice in the Service P lan and any approved subsequent amendme n ts thereto. 'fhc work t o be performed by the Contractor shall incl ude, withou t lirnila t iou, provi d .ing for: operating and seheduling vhicles and personne l ; providing customer service; maintaining equipment; developing administrative procedut"es; comp il ing performance s tat ist i cs and financ ial reports; devel oping methods to maximize s erv i ce and efficiency; and pocket schedule distribution. 11>e Contractor shall provide for t'ull and competent technical services to handl e and eortect any an d all probleuis that arise associated w jt h the opera tion of the transit services. Service D e livery. The Contractor will provide the transit service as specified in the Service Plan. Vehicle Operation and Maintenance-. Vehicles shall be operated and maintaiflcd in conformanoo with any lawfu1 o r d cl'S, rules, or regulations of any f ederal, sta.te, or local agency having jurisdiction over t h e Contractor in elu ding, but n ot limited t o M o t o r Carrier Sofety Rules, and. with. due regord for tl>e sofcity, comfort. and conven i ence of passengccs and t he general public. The Contractor sliaU maintain ell buses and equi pment used in the specifical ly contracted sesvioe in good working condition to mini mite breakd ow ns and maximize p assenger and driver safety. No passenger nor driver shall be required or allowed to ride or drive a vehicl e which is not i n safe operational condition and not meet all local, slate and federal safety standards Reporting oflncldents. The Contracto r sholl notify the Counci l at the fust opportuni ty ofany a cciden t wh!1 person die s as a direct resul t of the accident; or when a person must b e taken to a medica l treatment facil ity as a di ree t result of th e Ccide.nt; or when there is property damage estimated at greater than SS,OOO; or if t he in cidcnl involved a opera ting a vehicle under .the influence of cilcohol or drugs In addition, th e Contractor file :an incident r eport wi t h the Collllcil's Pro jec t Administrator, using forms approved by the Council, whenever an in ciden t occurs which may negatively affect t he transit service on or i nvolving a vehicle providing scrviC(; unde.r th4 contract o r involvi n g any other equipment or property maintained this contract. including any accident, personal injury, criminal activity, property damage, or any other incident involving property, passenger s or potential passengers of the servi c e provided under thj.s Agceement. The incident repon must be se n t to the Council by facsi mile tra n smissio n or electronic mail within 24 hoUis of the reported incident. for ofPropos11l.s Conlr3CIIJ0:2POO$ P:ag .1 88

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Alcohol Mlsuse nnd Prohibited Drug Use jesting rroersun. Th.e Contractor naree.s co establish nod implement a dru,a And alcohol testing prograrn that conlplies with Transit Adminis-tration regulations on "Preventio n of Alco h o l Misuse D.lld Prohibited Drug Usc in Tr ansit Operations" (49 CFR l' rt 6SS) aod "Procedures for Transponation Worlhol Testing" (49 CFR Part 40). The Cont ractor ogrccs to produce any documentation necessary t o establi sh the Contra ctor's compliance with 4 9 CFR Parts and 40, and permi t any auth orized r epresen t ative of the United StateS Department of. Transportation or hs operating ad.ministration.s.lhc MiMesola Department of Transportation, or theCouneilto inspect the facilities and rcoords associated with lhe implementation oflhe drua 211d oleohol testinc program as required under 49 CFR Pans 6SS and 40 and t o review lhe ltsting pblems. Tbe Contractor shall supply and furnish oil personnel as are nca:ssary for the saro, oound, and efficient delivery, openllion, suut S\lpervision, administrative and maintenance of the transit service and the vehicles and equlpment used. The Conttaetot sbaU at oil timC> bavc a designated P=OD who shall be available during normal business bo\llS to report to and consult with the Council's Project Adminis trator on a nonvldinc a means of instrudiog drivers on sa!cty issues and UPdating clrivera on edminisltalive procedures relatin& to suviees provided ueder this Agreement. The Contractor's driver selection procedures shall include background refuenec cheek and ctlmina1 history <:heCk all driver applicants b9fore hiring. The Contractor b responsible fOr the sa t isfactory wotk perfonnanee ot all person s providing services de.scribed in che Service Plan. 'frllfntng. The Contrac tor sh11 provide continuing t .. lninglretralnlng and safety program Thi s sha ll consist oft.rainlng new drivers and a lso the retrainlna of drivers as required and those whose performance fans below standards. Drivers who have been involved in en accident must receive a minimum of eight (8) bours ofrettaining Safety, defensive driving and passenger sens i tivity forPrqw*' ,.,. 1 89

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train ing, '"''ill be a conti nuing education r h.roughotll the term o fthc contract. Monthl y :;arcty meeting, safe driving checks. safety tadio messages, posters and othe-r eomtnunicalio n tt;chniques must be part ofthc on .going safety trai nin g program. In its tra jning program. the Contrac tor will stresS to and approp r iate interaction wHh all person$ includi ,ng peopl e with disabilities. peop l e of all sexual otient..ui on. cultura l and racial m inorities older persons and children. Uniforms. The Contractor shall dispat c h drivers t h at a nea t and clean appearance who shall wear a dress. s h irt or blouse with a wllar dark slacks {"denimjeens a re not permitted); and shoes. If the Contcactor already requires. a company/dri ver unifonn, t hose unifonns may be used with prior approval from the Each Contract o r's drive r. operating during revenue hours. wear on their out er ganncn t in a noticeable area, a badge which cleal'ly and n oticeably identifies the driver' by first name only o r liS well as the Contract o r's name or logo. Accounting for Rc\'cnuc. AU Operating Revenue derived f rom the transit services provided under this Agreement. whether from passengers o r f r om other sources s hall be thoroughly and accurately accounted for monthly. The monthly acoounting shall show the date an revenue was received and type and kind of servi c e from whlch the r even u e is derived. All accounting shall be in acco rdan ce with gener8lly acc:epted accounting principles Far e CoUection. The Contractor s h all provide for collection from eacn passenger fares as provided in the CouncH's fare policy. "(be Contracto r may ret ain al i' Cisb fares collected. Assigned Vcblcles . Th e Metropotitau Council \viU lease to the Contracto r eig.ht (8) lift equipped c\ltaway busses for use in the Roseville Area Circulator servioc; and/or five (5) ramp equipped m i d-size heavy duty b u sses for use in lhe BE-Line transit service. AU vehicles will 1x: equipped with GFl e l ectronic fareboxcs and Luminator elcx;llOnlc destination signs. The Council witt ho l d tit l e to t hese vehicles. The Contractor procure a ut o liability and physical c;Jamage eeiveraSe on veh i cles owned by lhe Council and leaied to t h e Contra ctor for providing th e lransi l se .rvi ce. 1'he CoWicil must be named as an additional insured under the policy. lllc Contractor is responsible for damaged vehicles pans and all other eq ui pm e nt assigned by lhe Council to the Contraccor. Vehicles 3nd equipment must be maintained equal to or better lhan the condition when roccived Replacement parts must be ofOEM-quality. Replacement of any vehicles permanentl y rem oved from revenue service shall be replaced with replacement vehicles of the s ame or beuerquality upon approval of the Council's Project Administrator. The Contnt.ctor will be responsible for the replacement of all equip m ent t h at i s damaged, worn out, consumed or misplaced. Repl acement equipment shall be the same brand and model as in iti ally provid.c:d w it h the vehicles, or as approved by the Collncil. lnstnlc;liont foe o f Conlnc;ti02POOS Pa t e 1 90

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Warranty service on Coundlovmod vehicles will be honored by all of the manufacturcrs authorized dealers in t he State of Minnesota or independent repair garages capa ble of providing both warranty serviec and replacement parts suffic ient for fleet operatorS. The manufacturer/vendor mus( honor warranty work such facilit ies WarrMty service may aJso be accomplished by teim.bursing th.c Contractor for e.xpcnses incurre d at a repair facility mutua1ly agreed or the Contractor {or mutually agreed expen.o;es incurred at the Contractor's maintenan-ce fa.cility. All work must have llle manufacturer's or vendor's prior written approval befor e the ContracLOr initiates any warranty work. Th.e Council will equip all Council-owl'led Vclticles with fire extinguishers. reflectors, first-aid kits, and other auxiliary equipment as required by Minnesota laws and rnles. The Contractor shall be responsib1e fot m:Jintaining cleaning suppHcs in each vehicle. the cleaning soppHes musl include the follOwing: A. Paper towels. B. Throwaway plastic gloves. C. C1eaning solutions sucb as Simple Green, Lysol, Ram or similar cleaning solut ion crul clean, disinfeclan d deodorize will be The solution used shall be non-loxic and 'will not D. Waste receptacle (lobe emptied daily). . E. Small broom (whiskbroom is not acceptable) and dust pan. The Contractor shall supply each Vehicle with current route schedules for passenger use. lnlllal Condilion Reporl. Tite Council shall participate with the Contractor in lllc preparation of an Initial Condition Report for each vehicle as provided in Attachment B. For pwposes of documentation. the buses will be deemed in ''New CooditiOlt". Any initial repairs t hat are necessary will be subject to the vehicle Wamully as provided by !he vehicle maiiufacturer. Contractor Use of Council-Assigned Vehicles. The Contractor shaU usc the cOuncil-assigned vehicles exclusively for providing serviee ,Wlder this contract. Fuel. The Contractor will pmvide all fuel for aU vehicles Vehicle Maintenance aod Inspedions. nie Contractor shall maintain nll vehicles and equipment used in the transit servioc in optimal W$1rking conditio n to minimiz.t breakdowns and maximize passenger and driver safety. for ofPtoposali Concract ti02POOS Page 1-5 91

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All mainlenanc:e must be done by onccl\anios lic:eMed undu applieahle l oea l and Slate'nle Contractor shall retain a minimum of one full timc A.S.E.-certificd d iesel engine medlanic and onc--fulltime A.S E.mplet ed within lOS% of the correspond in g basi c service B A physical audif of vehicles for nteohani cal condHion, including fluid sampHng, to be done by the Council's Project Administrator. C. The foUowing cleaning program: I. D aily lnterio"' shall be swept, dusted and spot-mopped and trash emptied. 2 Fo ur T imes Weeld,y a. Interioo wll be fully mowed. windows, seats and driver's area clanecl. b. llxterio"' washed, with mo.e frequent washing as required during periods ofinc.lcmcnt weather. 3. Monthly Interiors shall be fully c l eaned throughout including dashboaiC!, eel lings, and waiJs and all other inte rio r areas and surfaCes. 4. Semi-Annually Steam Clean passenger sea t s nnd driver s seat D The interior passenger eompnrtment of each vehicle s hall be maintained free of noxious odors from cleaning produe(s, vermin control products and exhaust fumes emitted by the engine. Any veh i cle found not to be in compliance with the above cleaning p;ovisions wUI be removed from service without limiting the Contractor's service obUgalions. E. Each driver, before begiMing any service operori (mc l uding wbeft a road reliet ooours), will conduct a pre-trip inspee. tion of the vdliel e to e nsure the safo operation and proper worldRJ condition of the vohlele. The p.e-trip sloall include: I. Walk-around visual inspection. 2 DirectiOnal signals and flashers 3. He adlig hts. 4. Brake lights and tail liaJ>ts. 5 Windshield wipers/ washers. 6. Interior liehts. Cor Pre potation or Pcopou1s Contn.c t R OlPOOS Pa.ao 1 92

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. 7. Horn. 8. Parking brake. 9. Door op.cration, iJteludiog emergency exits and alarnts. tO. Fire extinguisher charge. 11. Full cycle lift and interlock function. 12. Sufficient tie-down equipment. 13. conditi .oning. 1 ,4. TirO$. 15. Oil level, transmission fluid level and coolant level. 16. Radio for communication to and from the Co11tractor's dispatch offices 17. Fa;ebox 18. Destination Sign All safety and emergency equipment in each vehicl e must be maintained to meet applicable local> state and federal staru:lards. No shall be required or allowed to ope rate a vehicle. which is not in sa(e operational condition and does not meet alllcx:al, state and federal safety standards. The Contritctor must allow the Council to inspect and audit v ehicles Md vehicle ml!intenancc records. Vehicle Safety lnspcclions. The Council reserves the right to conduct petiodlc ioSpectlons of the Vehicles being used for Council transit Service. Inspection or monitoring may be conducted with without notification of the Contractor. In no instan ce will Inspect-ions with the ConttactOr's ability to its service obligations. All inspectionS shall be done at the Contractor's facility. The Contractor shall make available to the Council staff. a maintenance b'ay t o perforin such inspections should it be requested. The Contractor shall ensure that repairs are m ade in a timely manner and a vehicle shilll not be placed in service \llltlt all safety related rc:pair.s arc made No vehicle s hall be placed in service that does not pass Minnesota,State inspections. V chicle Record File. The lndividuaJ Vehicle Record File must be maintained for each vehicle. At a minimum, the d ata Of the file must include: A V chicle infom1ation as requested in the "Fleet l nvento'r Profile." B. Vehicle maintenanoe w'td repaif history, including descripti on of maintenance and repair perfonned, vendor or facility doing the work. cost, date and mileage. C. Vehicle equipment check log verifying tl>Bt special equipment has boen cheel
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. In addition, the Co1\lri\ctor musl collect and file vehicle ma.imcnanec requests submincd by dri vers. including whnt action was t aken and and vehicle pre-trip inspection log s signed by t he driver Return CondUion Repo rt. A t the conclusion term, the Contractor shall participat e with the Co\mcil in 'the preparation of a Ret\tm Condition Report f o r each yehicle as provjdcd in Attachmen. t C. Attaeltntent C specifies what is deemed to be nonnal wear and tear on lhe vehicles. The cost of repairs requi,.d 10 bring the buses into good operating eondition equal to the coodition upon ori.gin.al receipt or lhe vehicles by lhc: conlrl<;tor eocccpling noanal wear and lear, aha! I be lhc: ... p6mibility of the Con""""''<. If there ,.gording required rtpalt$, lhc:Council will makelhc: final dooision if the item's cost (materi els end Iober) is less tban$1,5(10. lf,.paircost for lhedisagroed itan is Sl,lOO or g reater, the rwo parties must aerce on a non ... ffilitod third potty expert meehanie wbo will deeidc if the ,.pair is neeesso.ry 10 return the vehicle to the Council in good operating condition. The potties wi1l s hare equi'llly in lhe cos t of the third party expert mcchltlic. Contra c tor Provided F acilities 9ind Equipment A. The contrActor shAH provldt facilities J\nd cquirrncnt sufficient to delivel" planned transportation sCJVlce levels including, but not limited to: facilities for dispat ching, driver Md other field staff daily assign. rnents; pre--trip and post-trip vehicle iTL$pcction and rcparting nctivities; vehicl e maintenance, facsimile (!Ox) machines, TTY and other oquipmcnL The facilities shall be lqe enough 10 conduct driver rccroitmcnt lviclc dtiver 1ll!.ining. The facilily for storing vehicles must pennit the entite Oeet to be stored inside. All furnishing$, all not-oomputer equipment Olld all supplies ore tho respomibi1ity of the contractor. If damage occurs ; the contractor must replace with compa rablc or better Jevels. The conlf'Actor's !oeilitie.s n\U$t comply wilh all stttc, and local ufety requirements and Jaws. Tha eonttocoor's facilities m\l$t also comply with all tteccs.sibilil y features as described in AD A Md .Mate llniform bu il ding codes a. T h e facili( or fac llitlcs describOO above shall be located withi n the seven county metropo1itru\ area. C. The conlrae tor shall obtain sufficient cctcpbonc service to meet its business needs 1n operatinc the service including dedicated voice, TTY Olld fax lines. D. The contraclor shall be respoosible for providing the ntdio system and havioa the necessary maintertance Md rcpain dooe in a timely Dl3Mtr. Tho shall be rcspomible for installing S)'ltcm in the vehicles. E. The cont.raetors maintCllaD.ee facility must be capable of propedy maintaining \he fleet of 8 vehicles for t he Roseville Are& Circulator service and/or the fleet or$ vcblclc.s for the 88-Line transit service. Th e facility m11.1t moet all federal, state and loeal gui d elines for safety including, but t o, fire building ca des, OSHA requir e n lents, nnd all EPA. Minnesota Pol lution Control Agency, and local regu lations. The contrac t or's tnainten.anee facility shall eonto.in the fono,'t'i.n g cl crnrnts: A minimum of one heated service bay ....,_ fe
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An oil-water separator for a ll shop drains. P roper storage aod disposal facilities for used on and waster produc:;Ls such as fillers. Office spaCe for maintaining records.. -A minim\tm of one operable vehicle lift appropriaie for unde r vehicle service. Secure storage area for parts and c o nsumabl e p r oducts. F All fluids and l u bricants used by the Contractor shalt meet or exceed manufacturer s specifications. The Council reserves the right to specify t h e use of certain flulds a.id or lubricants at i ts' disc r etion, inclu
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COST PROPOSAL FORM BELINE Submitted b y: MV Transportation, Inc. T o l ophono. #: !OZB6}8J180 M:v92 Signature of Preparer: -----C"--__ FIXEO VEHICLE COST l.iaiJ&f tns ... onc;. ColisKln insut8nce R8cfl0 ree, VARIABl E OPERATIN G COST Ori vcr wages Driver r mges Unifo r ms EmpSoymcn t lasling Training .,.,. Opetations materto!s end Sl.lllllieS Fare S)'$lem maD:enanco Iabat MaiC"lternlllOe Repair materlals and l'l.lpplfes O'THER Corporate auppor1 Ptofit 8-Jun-02 . 96 1..Jun-04 1-Jun.()$ 1.Jun.06

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.. SUPPLEMENTAL COST PROPOSAL INFORMATION BE-LINE FIXED VEHICLE COST Othe r Includes Pticfng fOt the FoUowillg lltmt : Staff Wage s Sta r r Boncfrls Interest Oeprecltttion StattUP 8.Jun.()2 1.Jun 03 1.Jun-0 4 1-JunOS 1"un..06 31May..03 31Moy 31M:ty 31-May..O$ 31May S 95,2&5 $ OO.S12 $ 93,215 S !ll!.014 S 98,905 $ 18.866 $ 19,704 $ 20, 4 6 6 s 2 1,107 $ 21,977 $ 11, 00 2 s 8,737 $ 8 ,893 s 8 ,977 $ 6,416 $ 3 190 5 3 ,288 5 3 ,255 s 2,892 s 2.009 s ss.61Z _.5""'1'lmr S 1ae,281 i 122.H s t2s.as1 s 12a.990 $ tJ2,1o1 VARIABLE OPERATING COST Operations ""'terialo & Supple lndUdOS Ptlclog lor lho F-..tlg flems: Busileu License s 50 $ 52 s 54 s 56 $ 'sa Cell/Page< s 2-10 $ 252 $ 2$4 s 276 $ 288 Cop lor Expens e s 600 $ 624 s 648 $ 672 $ 698 Facility Rent s 40 ,500 s 41,712 $ 42.960 $ 44,244 $ 45,578 Fa.c:ility Repairs s 1,200 s 1,236 $ 1,272 $ 1,308 $ 1,344 Internet Access s 300 s 3 1 2 s 324 s 336 $ 348 Office S u p plies s 1 ,8 0 0 $ 1 ,880 $ 1,920 $ 1,980 s 2,040 Staff Meal s $ 3 0 0 s 312 $ 324 $ 338 $ 346 Payroll Processing $ 6 10 s 627 s 643 s 660 $ 078 Physicals $ 680 s 611 s 693 s 710 $ 720 Postage s 600 5 624 s 648 $ 672 $ 698 Property Tax s 4,050 s 4, 176 s 4,296 5 4,428 $ 4.980 Telephone s 1,8 0 0 s 1 ,860 $ 1,920 s 1,960 $ Utilities s 12,000 s 12,380 s 12,732 s 13,116 $ 84,7 1 0 $ 66,88 4 $ 68,698 s 70,n4 Olllep<>$il Fatm. 97

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COST PROPOSAL FORM ROSEVILLE AREA CIRCUI.ATOR Submlllcd First Studant. fnc. lol tp hone tl; 763-545 1 7 Signature of Ptcparc.r: FIXED V EHICLE COST Llabilby lns.uranco COIISbl insuranco Radio tees VARIABLE OPERATING COST DriYo<-OriverfMges Unrtorm' Employment testll\g Tr&lnlng Fuel <1!><"""" ma10r1a11 and"""""' Fete tyetem maln!en.an(:@ Maintonance labOr Maintenance tringos Repair materials and suppli .. Corpor&te aupport Profil TOTAL COSTS D;t\<1: $-Jun 26,8"9 t3,424 3,791 38A.312 72,877 12.000 3,00 0 17,210 80.573 2,000 2,400 24,023 3,561 74,814 49,950 &7.0ZS &37.809 98 1.Jun.:03 27.520 13,760 3,942 >106.337 75, 790 12. ,480 3. 120 17.89 8 82.990 2 ,080 2,496 24,786 3,703 92.43:! 52,490 71,464 1-Juno04 31-l;tax..os 28,208 14,104 120 "22.210 78.061 13,042 3,260 18,704 85,480 2,174 2,60$ 25.52 8 3,870 106,205 5$.878 75,171 839,643 1..JunOS I 28,913 14,457 4:,305 434,26< 80,188 13.628 3A07 19,546 88,044 2.271 2,726 26,292 4,044 119,906 & 1,685 78,557 982.233

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Capital Metro Scope of Services for Fixed Route and University of Texas Shuttle Services 99

PAGE 99

CAPITAl t.IETROPOUT AN TRANSPORT A 'liON: AUTI!ORITV EXHIBIT F SCOPE OF SERVICES RFP 8370 CONTRACTED FIXED-ROUTE A ND UNIVERS ITY OF TEXAS SHUTTLE SERVICES 1 SifMCE (a) PuiS)Os c. The Conuaclor sh<11l ptOvide :;afo, r cli eble a.'ld a.oNke au:ta. Tho a.orvice v.ill indOOo F ixed RoU1c an6 of Shill Schc> (AlSO} se'licle malniMSnoe, tep;s!r. body rep3ir sOO r unrng ropalr. Contrac t or vAl also pro'lido eo1 ilnd fc $lop rout8S w
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CAPITA.l.laiETROPOI.ITAN TRAMSPOR1'ATIOK AUTHORITY needs. T h e houfl o t 090-raiJOn for each of l hese two lypes (I $0MC.OI will bo as fotows: (b) Perk find R IOO /l.lfl"'iiOOO-.Jible. Copila l Melro cesetVes t h e 1'\ght to tnOntiOt Con-ttteto r II\ lis polformOtnC$ ol the (9} For pertorma.nc e go. lhe Cont r ae> tor lhal t.o eiQlble ttt receJve cash lncentl-4 PlymtMI lor tiCh mon11\, If tho pcrform.anco p i c ort moe. Lb
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CAPJTAl METROPOUTAN TAANSPOATA'WON A.VTUORtTY (4) VaiW:Ae MilOt Road Ce!s. Captal tepOitflg of RoadttJt I a deRned as a mechanlc;ll (allure \\ithln the r o llerll.ng C:llei)Otles: (i) Strvlc Ttudt waa aurgr.et! to e " hk:le 'l.fllle In $Crvice (dad Mild 1 1 CIONid$TOd -...: (iO chiW'Ik:al Jal:ft. (5 ) Capital MoUo roi>Otlli'lg of Rcocfc;;ola 11'(1$1 rouow d Nm r epotll"'! tot NTO reporting of road cells, A I Vth1c:l MilOt e r e ,.corded Rwd c .a:rs. lhe POtOOnlb;t or the monlh!y periOO will be ca!eol31ed eor p:.ymonl 01 dtduellon: M to; Levl Ollhe Roed Clllt Total amoul\l Pru$ 10% 8,2119 +O .sa% ...,. ... ..... "+ 0.25% MI'O$ &tween RotiC! cas Goal 4 ,817 OJIO% -"" ..,.. = -G.Z$% 4,Sl5 ......... 00 On Time (t) Tmt dltckt "" .. be o n three 4tya ol tt.o The Coolrac'IOt $!\all be teqlked to condi/101 e mlniimum ol $CWnly {70) fiXed tOUio timo dlotll.l por woeil. C&pllal Mell'O 'hit W"' oonduel checks Copltol Motto't oMlme pcdo rrmlr.QO go;al is 9 t%. (2) On b t S ii. lho oo lima pcrlom'f. anee resullfnt f tom 1111"111 checks CIOm;fctad boJ eon&ractor v.111 bo cof!lpued ec> that of CapJat MeR. If lflttt is a dlfteflnlll of 2..0 01 peteetltage pc:iiUs W.W:tn l'lt tNO (OIJtN lht Ce9lal t.fetto data Yllll Pftl'l1de oddll on 1lrnt brttae ....,.,;,_,......,.monas-. (i) (1) The edjuSiments ;4 be incJuded t o lho mon1tiy lrrwolco ot tho Cont.'&ClOr. ki)W.mtn!l eM be ma4e to tllo Invoice cotre!ponding lo tbt s eMot rnonlh lor which th t oecufN4. Whon Clo CM> lrnc:tor tchodl.ll o 'l'.tllch t: b$18\'C$ lo be be'}'OOd 118 oon l rol, tudl ., l nclt motlt wealMr Ul)o UiuiSl b'ilffio tolldiUOIW, I M aha!l tl w6lng a tdhoronce wai'le r 't'iltm 48 hoot s of ctelay C lij)IUI I M ei!OnU:Otv0$1h6 rlghtWaoa:pt ot reject the requesc. C1plltl Mttto'a shall Urn 6o limo tid II\ contrDc:tot-opetatad vehicles oc wllhoot prlot noec. 10 eM c:.onuactu tiD ensure M(l8 11'4 con&r.lcC. 102 (2 ) The deductions for bst seNico b o m tdO by Metro when lho GSirly or 1&10 CSOptrtt.io I t 1) r tp0fto6 by a pli$$00Q8l a 'ld vetllied by M otro or lhO 2 ) r epottc d lnclepenclonl:y by lhrtt 01 lnOtl Pl1tetl9et':l; or 3) r$J)OtteGMoe conslats Ofnr.OA { 1 5} Cxed routes ptO'Yidillg 44.COo PN.S"'Sit ll;ls d<1ily dur!ng Che tcnQ aem.Ur and 1 S.SOO-oaue.,-llfps N MltlltftC' lottlott.. ..,._ opc:t'ii(Q$ IIOfD '* ...., unci 1:te 10 be 184.1a4 end )'t;lft/ 811 Nll'Mioet to be 2,413,533. Eleven (t 1) routes are llldial fn ntwe QMng oiAcw 11u6811t areas and Una (3) 1out11 aro dto.i l o.,-In l\llluro Q)e lmmedl l o oompUJ 111. ono Olll)roaa route oonnecl$ campuses o r 1hl un lvotJ:fly, Hlld\
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CAPfTAl t.lE lROPOUTAN TAANSP01tTA1IOII AUTHORI'fY buses in lhe a m. llout$ .,..ilh WS4$ t3kel'l ou 1 of ser\'ie& t h ml.f3h"'ll the wn be reqtl'ted 10 provide Specfal Event 3/IIJ Cfll)tlef by <;ap&al Metro These aeM7c:ras may vary f r om year to Pf.eitlg tor Special EvcnL and Services :ha:l be based on unit pr.ces i'\ Eld'l illit I Ptlclng. (i) RQI.Ilo ar.4 map l nl:lrm01li on for 3l 4eheduied s.er vlee Is provided in E>chi bil H, 12 and 14. OJ SChedUles. The Col\lractOl shal prov'klo Metro aet\olb!-.sln a, sara. courteous, refaabl c m.'lnnot 3tld in trip schedule s prov'Kled by Capital Metfo'.s and .sdleduti!'lg depanmcnt.. C'pltol MWo rcprGaeN&.Wea may from limo: to lime tlc!:e ill C&!X tal Metro-furnished, v8hlcle$ with or wil l'toul priot noUce to the Contractor to ensure compl\Ylilh th i ; Cont1 ad. (k) AJI pedorm:tnco v.it l be ;b'icb'y hered to In order to pt0\1ide the hlglleu 18\'Ci of po;$!b!e Capital Metro r e&l!f'VIn lho: r ight rn on bor tile Cotltr,elot i n its 01 the Contra ct to $11$\M'O a ll performance speemt31iOJI&at e s:lherod to. (I} To recel\oe fUll oompiWlssUon.. t1lo contra! Is rcquirQCI to m eat <:r G.XC$td tho foavwlr.g S.llll'ldilrd$ for Shull! & and AlSO s e tvice oo a mon t hfy for ltle g
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CAPITAL WETROPOUTAH TRANSPORT A liON AIITHORITY Acd denl a per 100.000 Level aonuafPenaiiY Ol the Vthicle MJ&s 1013 1 amouf\1 P!!s 5% Aeclde.fll Rata Gotl t &oos10% ... 3.6 ... ... 0.50% = +0.25% = 0.00'" = .25% -O.SO% (S) Vct6:1t Nie:s Road Cell&. c-.. lrifto teporQ!Ig ol Roecblk te f.1lft ............ te"""*" (J) SII'Yk 'RS U$lgled 10 a W hlcM .... ntell\ 1tmc. (du6 MMils COII.$1det'ed s etllice). (II) Vth1do w.n ch.;a,.Qed out fot a tl'li! d\anleal flllluti, (I!Q Vthkile lost llmg; ba\1$0 or a m e chanlea& f&IIINt, {6) Caplltl Me;JO reportlr'Q of Ro:Ciee:rs must follOw all NJD (TJidalinll$ for NTO rcporlif'l9 p i 10ed calls. M Vtllldt Niloc: ro tee:Ofded betNean Ro&d C;,.ts, lho fo!IDw\!lg o1 h mcnl,h!y pce1o4 w1ll bo cakJ.J\Jicd lor v .......... """' ..... lobi ati'IOU'Il -I)% $,299 = O..SO% Mil es Boi\Wtfl =0..25% Road Cells Goal 4 817 .00% Mnus$% 4 676 4,33$ =-.50'% { m ) On-Time Coolracw superv i5Qt'l will a mlnlMum or 1eo Clmt thtc:ks per \\-ee)(, T hla $implt of 1eo tlmo c htcb must r&fleet aJ ,aMQe, .,.,. Vkled uMer thl$ oonltecl. (f) A. MMIO wll :ilioconduct .... dllecb. The IUIIIbw ollmc cftedts pe:rformled tJrt C3p."ul UfiiiO ltiCI Colndor .,. be actiSied to $CMcc.......,..,.. "*-SUIM'I ses'l:m! and panraiiiiiOI'IIl'll. ( 2) Tltnt d'ltdts will tic OOI'JdlJct8d o n at IN$1. lhreo IIM'QO d:.y s or lfle v.-'9ek at random pol'tlt!l. Mere IMntiWe d t )l a '11411 b oplioMI. {3) On mon thly Wsls. N on 'imo petfOt'l'l). en" roaoiUIIQ ,rom llmt cheek$ oamp1 e lsd by fie oonlrDdOr wll bo c;.omp Med 10 that of M eW. lflhc:r o I t a dll r t r t n t lal o f 2.0 o r l'tiQte percenlage poims betv.'te" Mo fQurn. lho Capital Metro da l a Wi1 a:fualvtly lt!t otfdfl OA Ume for themonth 1n wHch lht I a IN6c 104 m1;E F IXED ROUTQ ANQ Vf S UUI __ S V!CE Pttktge 3 cotnbln e e P;ld<;ago$ a..,d 2 \lndor ono Con tract, lnc\JdlllQ' s e rvices a described tbovo I n para. P11Ph6 2 and 3 I. CAeJJAt. MEJ'RO.fURNI S.KEQ \IEtfiCLES (t) The eo.nctor shal be p.oWded *oorSonH. ecc:eu lble hAM t1usa. M ildcqua _.,., wll bt Wilde ih!lsblc to fie Conlndot to ........ MNy ptrtcnl spar e r;r,lio twc JIOf'l*ll.) ... H, 3 Ct!mnt V8lldos U.S by CaPfal ..,d C1io ns v.i:t,;al)10tlna. coa & powet IUI)I)ly (M.Wenaoce 81\d \'thlciN)

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C#'I'C'AL Mt!lROP'OLI'C'AH TRANSPORTAli Oti AUlHOIUTY (b) COntr&etot o swrne: tho le-'-90n.sibift)' of ::.11 m llin le'C'1 roed oall $ Jl'lf.rilMtUCI.ure w n eo 3 lbw C8plla1 Mello aeoe" !<> Copil"l Melro The f o!owll g lis t bo-N Cspllal Met10 exccc:t t h t :;y::;tcm "> pe. Fare cOllection arnl a ll relat ed ooeu.rity f'r\e;)$\11'(!$ $h'hll be ma&t solely thtt mponstbl lity o f 11\fJ Contt a ctor. (b) boxes Md .,1 fate ecilection oqui pshall be wpplled by Metro aM maintained byC!e Contractor (c ) Clll::;h cotlcetccS by !he COnlfaelor arc to be deducte:J from the lnvclce. Far e ah8U be eolleo:ed and submlue d 6o lhc M(IIJO Room Su pen.iS'Jt on a weekly b:ts l s. (d) C on1rac1or g;hflll!l(ov!de la:e ooiiG!Ctien to Capilat Me(ro Yl\lh th'8 propo:;01l. ProcedUr e s ate lr'lclude, but not to: Fare boX cof.ec# (3) Storage Of stl reve.nue eol'.eclio:l equ ipmenl (e ) Flnsn.cial {1) T he Conlraclor shi'lll (.()l!ec:t atl f a ros 01nlf J)O$st$ b')' Cs p:tal Me:ro reUie-. e a ll b)' Melro. (2) All II'ICuf'fed in the of t h l s AQrecmeot will be reeortd in M aocounl SePi'ra:c from l hl>$9 uaod fot other busln&;$ adivlliO$ of lhc Conlrar a n d will be available I"Qr Uaspe cl!on or eudlt at Metro'a rco,ue;t (3) l'he Contt&etor i: re-$(!or.sble for ell fare box e nd cottectic11 $CG\Irity meaS'Uros to lnducle, but nol to, a'l vau!ls, dtop tlox;o:;, FCV$>i!ut colltctio n to Include all ptobes aM problt'lg eqt.ipmenl, an:f the reliteY'O!ll or 411 f;a.ro passes. (f) Da!a Cc.ll(:tion 011\4 R119ortinp (1) Trn: ConlractOI Yoi!l avbm1 oceratT'l" g1aphs for c
PAGE 105

CAPrT AL Ak"'TROP
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. (3) Qrrw fl1l c:ompot10trt1 tnd pn kl$tall ecf by Coct.tjdO($ rnaint.en.,..co or oontraete.:j repa ir$ wlth ltte 6&me w I t JW'O>Aded manufacturers 01 eettir .ed tt-b\llldell In tho area. l l1 t heQOmC; ncc:eary b Caplle l M el r o to ma'ko any r opalrs l isted in runn i,..g or h u'ol)' tho Oon lrle> 101 bo bi t lld back kJr all f w partl. tncllobor al Ca.pltal Mello's h outly rote. It an over ll m e rate It t&IJi e 1Mn 1he OOnlrador r c quirocl to PIW Cl llltler r ato for repair&. At114dl smUon, Cepi ltl l Moro may 10ru$o ""'Or'lt d u e to overflow ot Y.'O,_ on CICIIIA I M allo YCth1cles. I f capibl f.le lro>a v.or-: O'YetOow 0 Extll:llt 4 t.ooo. F tlon >Mil bo pericrt'niCd C'o'lilfY 6.000 mlle.1., ttnd 1 pr eventive ma!n"tcnanoe in$pac;lion 24,000 mnu ( S ee EXblbll H. A..,chmc n t 4}. The fii\M w ill be changed e.vory in6pec0on o r soor.or, ntOdod. 13. Pllt.ING AND SERVJC I N Q (a) Conltae!oc .... m bo requi red to h3\'e o rut fmo ,.,. I S land SUf>!rYISOf o n dUty lo OMoUro & INICCI l t llnd per$011nel ma.ntain 10 lhe requlfed cpedfco tlons. AU ITI'.ISt b e fueled 011d Mrvitt
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, CAPITAl. r.talROPOUTAN fRAH$1'0RTATIOk AUTHORITY (b) The vehlclo roco?vO o 6 1 2monlh body IMPOtUon.. Th!t v.'M'-SJ lnforml llon will bo provided 10 Capllal Metro'& P10)tc:C Manager on iJ daly basis. C;opbl MoW ,.... lhe I%Jht 10 *"' (;II' .,cle artt t$pol( ,.. ....... (a) ...,......,._"* (1) NUmber ol '000 mile cven1ue pllt$ n-..ftM 500 rritos. (2) Number or bust5 ond iM rea;o.') fer buses ol.l!.qf4(1rvico o, of0700 C\IUtnt day. {3) N umbor ot oompl e:ed and wet klno PMl ln-apetliOM. {4) Numbtf o r do'An l ndu:lfng the f'Aimbcr ol dtyt h;:as been down. WNII 1M teaSI)fl Is fl)t II b..,, down. atld '1.11en the OOfl'lPI$11an I& RFPano 108 {$) NUMber o r ro.sd s:all o p.or day/wGOI( an\1 ctult tor each one-. u a repoo l molntcnanco problom occurs l.hreo limN, tho voh l ckl v:JU be plocud out ol &oOr \lice unt'l lh e t)(O m:.de. In Mdi11o!\. \1)0 Nnco Ohteor w1l be reqUired to &llbmtt a. r fi)Ort l'lZln; their to tho Ptojotl J.hntget lor Capllel Metlo. (b) {1) ............ ..,. (2) Wbcck:Mir fer tht pr.vb.l day, end ell uti$UCCesalul tUttnptt. (3) NuMI:ero r la:e/mftsed lllp for dey tl\id lht'""'" {4 ) N1.1mber or owrloads (unabto boOird) 10 (hO f)rOYICU$ d01y, (5) Wrillcn OlOit b -.tiM h to Malnbln 1M fll1lablb ol ... ..... 17. DRWEM (a) OrMng A.ecotd Requited 0\lalrblloM (I) omen must h3ve a wild dt"'-1"1 OctnM roc 0\t PfSUhcee (3} years. (2) Olivet$ be D l'flintmurn of twtflty-ol14 (2t) Ytlr& of age (3) F i ve (5) year drtvlng record roQUired, \Ihlen unav3'bble, a lhre& (3) ye11r driving r ecord 11'11111 be ob1aln t d (4) K ;an outIU (Nt (&) YQI'f oreo alb.-ed. Thl& tooiOOos nO
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. CAPITAL TRANSPORTATIO!l A UlHORm' (8) Ofllllf19 teeords r.ot ra n eet tiM ot a serious traffic violation (i e OV.1, driving with a li como) in lho pa; t &eVn. (I ) All operator s mo$1 bo {IIIII f'SUII'IM'Io) of tho Contractor. ( li) All 09Mil be atov.-ed to Jn Capita l Metro setvloo u n:ll Slhe has been trai ned an.d &ignod oil by .-11\Sin.-c:tor. 4!1 I attainment ol tM sk ills n e<:e;,saty to properly cpert!e the \'Oh.'Cio typo to which $/ho h3:; tee-1 plus Each operator employed tinder this ConttSct will tic OVOihJa.lc;J by E:l Wlructot 011 on:e every stx (6) monlha. lnduding rn-sel"'lice evalua tion ond' lioen;.e Wid medtca1 certltlcate c:tlccb; pill$ {S) Tho Cntrac;lor will ab iOO by MUW rules. and ptocedures ror the of p teventab&l :uv.l non.p rcvcnWol e e n d take sctfon 8!1 neecSed. When reqlired lhe Conttaet()('s q ua_!$. rled lnstruetcr w ill rids wilh lhs t opeta! aMI perform and rclr'Oilning. if nscc;S<"Iry; pill$ (6) Col\!ra.elor v.ill comply v.ith Slo l c d TeX'as tra! rlllg of Transit TtaWng ar.d I'IM r oq\l !r<:d NJ tlon w11 b e &Ubnittad to U'l.e capital MeltO Traini ng Coor4 dinator bOOote an operator beg lns I n roveniMI sel"'lice. {d ) All 8lCCoons. to the mlnlmum lr;alnlng s.tendard muat be 3i)j)((Wed ln ;wrtlin g b y capital Mel r o 19. (a) Unl!crm ( 1 ) The conltact()t sha ll comply Colpit31 Metro's dren code. See EXhibtl H Altachment 6 MIXIO Uniform Polley. A;lProY'9d Vlillctccs with second hand$ mu.st be wm O l o il time::, W&lche.s meel ing 03"" RrP8370 P!l!;t! 10 or 1 3 l;).h i b i F 109

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CAPITAL METROPOliTAN TRANSPORTAtiON AUTHORITY tal Metro apeei1eatiOM tadi() eon all dress code oompooenu. (h) Joppearance Stsfldards. AI. ;,.1 times whle on dUty, thet t)erSOtlneJ Ia :;upp011 s:f$(ern (3) TM w l h v.-o!JI v.ilh Capital Met ro i n malten Of &$S\Irln!) pi'OYi4tn g data. responding to eom. mont; from pauengers ood lhe publle, and te sponding 1o re qtte&!s lo r other aS-1islanoe e s the neel3 (
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CAPITAl. M.S.TRQfOl.ITAN TRANSPORTATIO..'i AUTiiORri'Y h'/'93Ct te..-viee. Capnat Metro'& diipatch al\811 be eb!e to cadlo OQC'M'II.Ir0cationa bet\\\len th& dispateh orflee and thoe COnlfaetOt'a df?i ef'8. may be tequ.lred to di&patch per City'c Combined OporM"IOtla when It I& operatiOMIIn t'I.'G1o thre.a yeats. (1) TM Col'\trae1ot dispatch will hvorc Ill\ $)'f'lchroniVJd to the C3pital Mevo'a mar ter clock. (d) l.oca!lon of OpcraOOg FDQlity. TM Contractor win muinlo\in all ofl'leO opcr.s!ion an6 mslntooance fadliOO$ wllhln 1h9 Capital Melto aeMoc 22. REPORTS (a ) R,potta The da W sholid be \o ., weokly 11nd tl'IOtllh to-dste basb and report p ro-Aded et Capllal Metro' a operations wctldy staf1 m"ti:lg, In oddition to d:ity lndie:ttcrs. the number and type o1 complaints recifve',..ln g performanoo indi estors be teportod monthly: (I} Milo; between ro:t.de311 (2} fiRes between malmenai\CO rood'2 (3} MiSes beiWeen (<} Percentage of mi;$8<1/f;lo pt.G-ou:s (5} Percertage of mlsSildl1.11.0 trips (6} Percer.tsgo of oMimCl performance (7) Numtler or OOI'O,PialniSII 000 p;Snengera (8) Tota1 eoekf,ent:s/100,000 miiM (9} Co ti:i.o n OJetldMts/ 100 ,000 mile$ {10} T ota1 provenlabto (11 } PS$GnQer aociOcnt$ pe:t 100,000 mile$ {12) Mahte nsnoe (n&J)G;CUOflSisehe
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CAf'llJJ. 1.\EmOPOUTAN TRANSPORTAnO.'l AVTHORITY wll Rw Capital Metr o to the antJ rc Wd!l at arr; t lmo l o 8S$1Jf$ c o mp1'anee} Procod'urC$ a n d mtftt b& J)r lot to (M sta, ot $1m'!09. Tho Oontr\lcto r d0\'cb9, a nd maln1&11\ a p r ogt am to respor.d to emai1)Eir.cle$ end rout ine probleM$ tha.t m3'/ OOCJK. Wtittetl ptoeedures :a!Y.l p-Oet$$ be by M e tro days prio r to lhtHbrt Ol SOI'IIiC4, {b) Ooc:urrenees Include, bUt a r e not 110: . (I) Pcu;;et1$1$r irljurle $ (2) Ois lurba.'lce (3) r.tno n (4) VOhfclo (S) we.athe r ( 6) Acci den ts (7) Detours (8) Empi"Qye. ln)Jrics (9) Wi!lkouts 2]: MA.RJ(EDN G A N D PUBLIC R ELAT I O!ia Cap'Aat M c lto sha.'J N rrM D ll schedules. maps, tickets. transf o r s paa.ses and otfle r prinloc:l ma!etf:al a required for 0\4 $CI'Yi ce. Th4 Cctlll3ctor shall er3!e aM particl pal e i n m
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. Contracting Cost Indi ca tors 113

PAGE 113

Orlando Market Transit Provider B ids I Rates Purchaser Provider Cos ts/Hr. Comment First Class 1 Drive Coach UCF Bid Coach USA Mears Marl2: Charter Rates Mears BTM F i rst Class Coach Capital M e tro Minnesota $42.91 effective November 22, 2002; 4% annua l increase $39.00 different vehic l e offered $5 7.00 $48.10 $70.00 three hour minimum $61.25 deluxe 49 passengers $73 .75 deluxe 57 passengers $56 .00 deluxe 49 passengers $63.00 deluxe 57 passengers Other M arkets $45.00 Unive r s it y of Texas Shuttle $60 .00 F ixed route estimate $44 .90 $57.04 114

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LYNX Capital and Operating Projected Costs ll5

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. Unk12 Llnk26 Link 32 Llnk47 T .... CO
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ra SUpeMsors I sland Atterroants Maint. Supervisors Fringe Rate (All Labor) !overhead Costs (Administration) Repair Materials and Supplies (Inc oll, !Ir es, too ls, radios, and facili ties) Hour 26Supervisors Island AttendaniS Mechanics Malnl Supervisors Fringe Rate (All Labor) Overhead Costs (Administration) Repair Materials and Supplies (inc. oil, tires, tools, radios, and facilities) Hour $117,715.20 $182,791.56 $15,668.69 $1,416.37 $5,366.40 $30,488.06 $5,703.59 $79,206.10 $130,594.78 $28,957 .94 $57,435.92 $655,344.81 ReviS!! $15 000.00 $24,760.61 $2,122.48 $191.86 $5,366.40 $3,884.98 $ 1 ,655. 33 $12,470.63 $20,561.54 $3 690.00 $7,318.84 $97,022.67 117 vnx Orialnal $117,715 .20 $182,798 .15 $15,632.76 $0.00 $5,274 88 $31.104 72 $5,855.16 $79,419 67 $130,946.90 $23,543.04 $57,435.92 $849,726.38 $3,963.56 $ 1,153.11 $11,428.63 $18,843 .49 $3,000.00 $7,318.84 $87,223.19 Comment original rate $18.06 revised rate$18 12 $217 per Uniform original rate-$12.68, revised rate$12.90 original rate-$17.15, revised rate-$16.81 original rate-$21.21, revised rate $20.72 33% 40.91% Cost for oil and t ires i nc l uded based on Lynx FY 2001 Expe nses Comment original rate$18.06, revised rate-$18.12 $217 per Unifonm Lynx had an income! route roqu[romont of 0 should be 0.20, original rate $12.68, revised r; $12.90 orig inal rate$17 .15, revised rate $16.81 or i g inal rate-$21.21, rev ised rate. $20.72 33% 40.91% Cost for oil and tires included based on Lynx FY 2001 Expenses $3000 never added i n to total formula error

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Unk 32 BlthloiUnion Park Orange Buses Operators Trans Supervisors Uniform s Service Island Mec hanics Maint. Supervi sors Fringe Rate (All L abor ) Overhead Costs (Ad m lnislrati on ) Repair Materials and Supplies (inc. 011, tires, tools, parts, radios, and facilities) Fuel Total Costs Cost oer Hour ILinl< 47Supervisors I Uniforms Se rvice Island Attendants Mechan i cs Main!. Supervi sors Fringe Rat e (All Labo r) Overhead Costs (Admlnl slralion) Repair Materi a l s and Supplies (inc. oil, tires, tools parts, radi o s, and faci l ities) . ITnbol Costs Total Costs Revised $57, 637.80 $71,455. 5 1 $6,125 16 $553.68 $2, 683.20 $14,928.10 $2,803 72 $32,338.58 $53,3 1 9.76 $14,178.90 $2 8, 1 22.79 $284,147.20 $68.95 Revised $74, 560.20 $104,157 55 $8,928.38 $807.07 $2, 663.20 $ 19, 310 98 $3,470 68 $45,721.76 $75,385.90 $18,341.81 $36,379 6 1 $389, 747.14 118 Lynx Original $57,637.80 $71,452.04 S6, 1 1 0.52 $ 0.00 $ 2,63 7 44 $15 ,230 04 $2,878.22 $32,44 1 73 $53,489.83 $11,527.56 $28, 122.79 $281,527.98 68.32 $74,580.2 0 $ 1 04, 1 57.55 $8 907.47 $0.00 $2,637.44 $ 1 9,701.57 $3,562.90 $45,85 9 .09 $7 5,6 1 2.32 $ 14,912.04 $36,379.61 $37 1 ,378 1 6 Comment or i g inal rate $18. 06, revised ra te-$ 1 8. 12 $217 per Unif orm original rate $12.68, rev ised rate$12.90 original rate $17.15 r e v ised rate-$16.81 original rate-$21.21, revised rate$20.72 33% 40.9 1% Cost for oil and tires included based on FY 2001 Expenses Comment original rate$18.06, revised ra!e$18.12 5217 per Uniform orig i nal rat e $12.68, revised rate$ 1 2. 90 origi na l rate $17.15, revised rate$ 1 6 .81 origi nal rate-$21.21, revis e d rate$ 2 0 72 33% 40.91% Cost for oil and ti res Incl uded based on Lynx 2001 Expens es $14, 912 never a dded i n to tota l -fonnul a e m