Deputation for City Council March 29, 2010
Mayor Lovell and Council
The Owen Sound and District Chamber of Commerce representing over 500 business’ in Owen Sound and area have been following the recent actions of Owen Sound Council and are concerned with our municipal processes. First let me applaud the hard work that both staff and Council continue to do with respect to the operation of our fine City.
Two issues have come forward that require more public scrutiny and clarity in order to allow your business community to understand the decision making process.
- The recent letting of a contract to provide bussing services in Owen Sound.
- The involvement or lack thereof with the city and a private developer for the provision of a local health clinic to house the Family Health Team.
Municipal Transit
We have provided a brief that we believe is balanced and ask that Council please respond in writing to our concerns.
- First let us reiterate that we have no concern with the ability of the successful contractor, bidder “A”, to carry out the service as contemplated in the RFP #09-13 and 09-14.
We have carried out a review of the decision making process with respect to the letting of the Transit contract and are very concerned with the process by which a carrier was chosen. With the available information we have we would like to bring to council our feelings and a recommendation that has been carried out in accordance with the RFP 09-13 Scoring Tool as contained in the RFP and attached for your review.
An alternative bidder, bidder “B”, has provided us with their submission to the City as part of their response to the RFP, information with respect to the reduction in intercity bus service from Greyhound and the recommendation from John D. Johnston dated February 10, 2010.
With respect to the other companies bidding on this service we will assume that they have complied with and meet all of the criteria contained in the RFP.
Bidder “B” from Appendix 1
In business providing Taxi services since 1947.
Presently operate 400 vehicles and have app. 600 employees and drivers.
Headquartered in London with bases in Windsor, Chatham, St Thomas, Kitchener, Mississauga and Muskoka.
2002 was awarded a contract to operate the City of St. Thomas Transit system. Ridership up 150%, 4 route hub system. Contract renewed in 2007.
Operate the Transit facility and provide Greyhound and Northlink services from the terminal.
Operate transit services for the University of Western Ontario, 14000 riders between Sep and May on a 6 route non hub system, contract now in its third term.
2004 began the operation of Chatham-Kent system and were awarded a nine year term in accordance with the RFP. 4 route hub system.
School Board service in special needs transit dates back to 1977.
Multiple transportation services provided.
Recognized Authority under the Ministry of Transportation (Ontario) Driver Improvement Program.
Drivers provided to operate the contract will meet or exceed all requirement of the RFP.
Recommendation of the Committee: Feb 10, 2010
All but one bidder priced the service in accordance with the RFP.
“A” wanted a ten year contract with the final 7 years to be negotiated.
“B” indicated they would expect 80% of revenue from intercity carriers, $42,116 in 2009.
$101,078.40 added to the “B” bid as intercity commissions received in 2009.
Only two companies were chosen for interviews.
“A” was recommended and accepted by Council with a 3 year contract with a provision to negotiate a 7 year extension.
The low bidder was “B” by $70,103.40 even with the revenue numbers from 2009 included.
Review:
Addendum 1 to the RFP clearly states that the maximum number of years for the contract is 5.
Greyhound is reducing the service dramatically to Owen Sound which will have a drastic affect on the City revenue from carriers.
“B” presently operates 8 arrivals and departures from the terminal building.
As above, three carriers met the criteria but the lowest tender was not interviewed.
Terminal revenues are decreasing and this will make “B” bid even more attractive as time goes by.“B” presently negotiating for the licenses to Owen Sound that Greyhound holds.
“B” References: City of St. Thomas, David White, “B” provides an
excellent service to the City.
Municipality of Chatham-Kent, Leo Denys, Very Professional, good drivers,
very business oriented and looking to grow service.
See attached scoring tool from RFP09-13.
Council interviewed “B” in 2006 and chose an alternate strictly based on cost comparison.
Conclusion:
The process of awarding RFP 09-13 and RFP 09-14 would appear to have been flawed. No regard was had for the low bidder even though it was brought to the committee’s attention that they met all criteria of the RFP.
It would appear that the city has not acted fairly or appropriately in the selection process.
City residents will pay a higher cost for bus service that is already a tax funded service.
Isolation of our community will further occur if Greyhound continues to reduce trips and an alternate carrier can not make economic sense providing the service.
Recommendation:
- Follow the RFP process that was established.
- Require staff to prepare clear direction for council including a recommendation for committees to allow politicians who have limited knowledge to make informed decisions. Background information should be provided to support the decision. Especially when decisions involve this amount of money.
- The CAO should review the staff report and concur or refute the decision in writing and advise council accordingly.
- Pay attention to the bottom line, your taxpayers appreciate it.
- Start the process earlier. An extension was required from the existing operator because of the late approval.
Conclusion:
It is very disappointing that considering all of the talk surrounding budgets this winter one of the first opportunities the City had to look at a cost saving and future economic health of our area was discounted out of hand. This would be very important had the carriers lacked the necessary experience to carry out the task. This is clearly not the case.
Medical Clinic
In November it was reported in the Sun Times that the Family Health Team had chosen a site for the new Medical Clinic in Town. Approximately 3 weeks ago it was reported that the location had been moved and a private land holder was involved and that the developer was looking for a swap of land with the City. Investigation of the site revealed that the developer does not own any land in the area of the land swap. The developer indicated a May start date.
Questions:
- What involvement does the City have in this project?
- What staff resources, financial contributions or land swap is the City involved in?
- Has the City been involved in the design of the Health Clinic and what information would be required to initiate discussions involving a land swap?
- Has the City received a site plan approval application?
- Who will be responsible for any off site work, ie turning lanes, traffic lights etc.?
- Will the City follow the Policies initiated in the Official Plan?
- What land (location) is the city swapping?
Conclusion:
It would appear from a cursory review of this proposal that any development along the west harbour will require a considerable amount of scrutiny under the City of Owen Sound Official Plan. It would also appear that to allow any development along the harbor in this location will involve city resources in some form or another (certainly land). It seems odd that the Family Health Team and even the City have not researched this proposal to determine the appropriateness of this location or its ease of development. Residential, Commercial and Industrial taxpayers deserve to be treated better. For the City to become involved in a call for proposal that essentially advocates and assists one developer over another is very irresponsible to say the least. Get back to the business of running the community and let private concerns compete fairly.
Official Plan Policies related to downtown and west harbour development:
4.2.4 Downtown Commercial office and institutional uses.
4.7 Waterfront Mixed use: Whole section of interest refer to 4.7.6.1
5.3 West Harbour Planning Area.
What is the purpose of long term planning if the long term plan is not followed or is constantly altered? Submitted By:
Advocacy Committee Owen Sound and
District Chamber of Commerce