ORDINANCE approving and authorizing contract between the City and the METROPOLITAN TRANSIT AUTHORITY OF HARRIS COUNTY, TEXAS, for purchase of Employee Transit Fare Media; providing a maximum contract amount - $5,729,167.00 - Central Service Revolving Fund

S58-E26407 - Approve an ordinance authorizing the City to execute an Interlocal Purchasing Agreement contract between the City and Metropolitan Transit Authority of Harris County, Texas (METRO) for the purchase of employee transit fare media in an amount not to exceed $5,729,167.00 for the Administration and Regulatory affairs Department.

Specific Explanation:
The Director of the Administration and Regulatory Affairs Department and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a contract with the term of December 1, 2017 to June 30, 2020 and two one-year extensions through June 30, 2022 for a total amount not to exceed $5,729,167.00 for an Interlocal Purchasing Agreement contract between the City and Metropolitan Transit Authority of Harris County, Texas (METRO) for the purchase of employee transit fare media.

The Downtown Employee Transit Program has been a successful component of the city’s Air Pollution solutions since 1998. This program provides city-sponsored “mass transit” alternatives to employees commuting to downtown city work locations.  METRO-sponsored vanpools are also included in this program.  The Downtown Employee Transit Program is a key contributor to the City’s Emissions Reductions Plan to comply with federal standards.  By actively promoting shared-ride options and reducing the number of cars on the road, the program:

• reduces polluting vehicle emissions
• decreases traffic congestion
• improves air quality levels
• reduces wear and tear on roads and associated repair costs
• provides an additional benefit to the city by reducing the demand for parking
• creates an opportunity for employees to save money on gas, tolls and car maintenance

Participation in the program is limited to employees assigned to designated downtown worksites and who elect to receive this benefit.  The Program has assumed an overall increase in participation since its inception, from an average 800 employees in 1998 to the current 1,300 participants.  The total program cost for the contract term (December 1, 2017 to June 30, 2020 and two one-year extensions through June 30, 2022) is $5,729,167.

To encourage consistent mass transit travel, the Program includes the following incentives:

• If an employee experiences a mid-day emergency when METRO does not have off-peak hour transit to a Park and Ride lot, METRO will arrange transportation for the employee to the lot.  Employees may receive this service 12 times before incurring any cost.
• If an employee occasionally needs to drive a vehicle to work for personal business, the employee may park in a city-owned parking lot at no charge for up to 12 days per fiscal year.
• If an employee occasionally needs to drive a vehicle to work to conduct City business, the employee may park in a city-owned parking lot at no charge.

• The Loyalty Rider Program credits five free rides for each 50 rides an employee takes, a 10% discount.    

Fiscal Note:

Funding for this item is included in FY 2018 budget. Therefore, no fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.

$5,729,167.00 

Central Service Revolving Fund (1002)