Agenda Item Wording:
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Authorization for Payment to the California Vanpool Authority (CalVans) - Authorize the payment of CalVans invoices for the Visalia Transit contributions to the Authority’s vanpool program.
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Prepared by:
Angelina Baker, Transit Manager, (559)713-4591, Angelina.Baker@visalia.gov
John Lollis, Assistant City Manager, (559) 713-4323, John.Lollis@visalia.gov
Department Recommendation:
Staff recommends that the City Council authorize the payment of past due invoices to the California Vanpool Authority (CalVans) totaling $130,200 and authorize the continued payment of monthly invoices until a new contract has been awarded (no later than Dec. 31, 2025) or a Request for Proposals (RFP) is released to the public and a contract issued based on the RFP by June 1, 2026.
Summary:
In May 2016, the City of Visalia entered into a five-year Agreement with the California Vanpool Authority (CalVans), which expired in May 2021. At its meeting on April 14, 2023, the City Council approved entering into a one-year Agreement, which expired in May 2024. In between May 2021 and April 14, 2024, the City operated under a month-to-month agreement, which was due to ongoing discussions with the Tulare County Regional Transit Agency (TCRTA) regarding a joint procurement that has not yet resulted in any actions from either party.
Staff is seeking authorization to approve payment for services rendered for the period of May 2024 through current to remain as contributors to the CalVans vanpool program.
History: CalVans is a Joint Power Authority (JPA) public transportation agency, sponsored by the California Vanpool Authority, with membership of fourteen (14) Municipal Planning Organizations across the state of California, including the Tulare County Association of Governments (TCAG). CalVans offers employers and their employees a reliable, cost-effective, alternative mode of transportation to the single occupant vehicle (SOV) in areas or on routes that are not efficiently served by public transit. Typically, this is for groups of employees that work for the same employer or employer location and usually travel across city and county lines. CalVans provides the vehicle, maintenance, fuel, and insurance as a turnkey operation. Riders pay a flat fee for an 8-, 10-, or 12-passenger van; and one, or more, employees are certified as the driver.
Transit agencies located in an Urbanized Area (UZA) receive a Federal Transit Administration (FTA) Section 5307 apportionment based on its annual reporting into the National Transit Database (NTD) system. This reporting includes how far transit vehicles travel, how long they spend traveling, how many riders are carried, and the cost to provide the service. Generally, the larger the system, the more Section 5307 funds are received. Transit agencies outside of a UZA, but serving the UZA area, may also report passenger data related to trips that began or ended in the UZA. Vanpool trips are an example of a type of transit trip that may contribute substantial ridership data to a UZA. The reporting of the trips is done by the vanpool provided on behalf of the UZA. These Section 5307 funds generated by the additional reporting stay with the transit agency serving the UZA, it does not return to the agency that reported the passenger data. The reported miles do not impact the Section 5307 apportionment for two (2) years, i.e. the FY 2024-25 miles will count towards FY 2027-28.
CalVans has been reporting these miles on behalf of Visalia Transit for several years, which has resulted in an increase in Section 5307 federal transit funding. Based on the example provided by CalVans with the 2016 agreement, the Visalia UZA, with a total subsidy of $450,000, would receive an additional $1,476,444 in Section 5307 federal funds annually. Over the last several years, based on the 2016 numbers, Visalia Transit has received an estimated $635,110 annually in additional Section 5307 federal funds with an average annual subsidy paid of $193,573, less than the not to exceed amount of $300,000 previously authorized by Council. Increasing the number of vanpools results in a corresponding increase in Section 5307 federal transit funds.
Background Discussion:
The payment of invoices have been delayed while staff explores options for renewing the agreement, whether it be through a current sole source or through the Request for Proposals process. At this time, staff is attempting to verify if there are other qualified vendors in the vanpool industry, the purchasing requirements of the Federal agency, and whether this service should be a sole source to CalVans or some other agency. Staff will be returning to Council to award a contract by December 31,2025 if it can be sole sourced, or by June 1, 2026 if an RFP is required.
Fiscal Impact:
The funding for this contracted service is an ongoing operation cost for the Transit Division budgeted under 4551-55375. This account is budgeted at $132,000 for Fiscal Year 2024-25. To date, there are sufficient funds available to pay the costs through Fiscal Year 2024-25, and any new expenses will be funded in the current fiscal year (FY 25/26). Based on the calculation provided by CalVans in 2016, this will have a $984,296 maximum positive fiscal impact resulting from a total subsidy of $300,000. The funding source that has benefited from Visalia Transit participating in this program is the Section 5307 federal transit grant funds which is used to pay the Operations and Maintenance contract. The more money the City receives for operations means less funds spent from Local Transportation Funds that can be set aside for other City projects.
Prior Council Action:
2016 - Agreement for Services
2019 - Agreement for Services Amendment No. 1
April 17, 2023 - Agreement for Services
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the payment of past due invoices to the California Vanpool Authority (CalVans) totaling $130,200 and authorize the continued payment of monthly invoices through December 31, 2025 or the issuance of a new contract, whichever comes first, or through June 1, 2026 if a Request for Proposals is required.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 8/4/2025
Attachments:
1. Agreement for Services - May 24, 2023
2. City Council Agenda Staff Report - April 17, 2023
3. Agreement Amendment No. 1 - December 17, 2019
4. Agreement for Services - May 3, 2016