Board splits bus contract, tosses out bids

For a few minutes Thursday, Regional Transportation commissioners were unanimous, agreeing to split the valley's lucrative bus contract to end months of controversy.

But their divisiveness quickly reappeared when they tried to decide how to score the future bids.

The board voted to toss out all bids and start over again as part of a settlement agreement with First Transit, which filed a lawsuit earlier this year claiming it should have landed the $600 million contract because its bid was $50 million lower than incumbent service provider Veolia Transportation.

Commissioners agreed to split the contract into two and divide the service into geographic areas.

Approval of the contract was stalled for nine months as commissioners split their votes between First Transit and Veolia. The board squabbled over the weight of scoring in the request for proposals. Veolia supporters claimed technical issues were more important than pricing; First Transit backers said pricing was vital because of the sagging economy.

That debate was replayed Thursday when Transportation Commission General Manager Jacob Snow asked whether the board wanted to change the request for proposals, or bidding, process.

Under the current evaluation process, cost counts for 55 percent of the total score, and technical issues, which include maintenance and innovative practices, amount to 45 percent. When the economy was healthier, technical issues were valued at 70 percent.

"I think it still needs to be weighted heavy on the low-bid price," said Boulder City Mayor Roger Tobler, a constant supporter of First Transit.

The constituents of Tobler and Mesquite City Councilman Kraig Hafen stand to lose the most in times of budget troubles.

Snow announced Thursday that because of higher paratransit costs, the Regional Transportation Commission plans to cut 60,000 service hours from fixed routes. The board is scheduled to discuss which routes to slash next month, but rural communities are most likely to be affected by reductions, Snow said.

Hafen, who also has supported First Transit, said Thursday he prefers that the commission simply go with the low bidder "to avoid the nine months of the circus we've just had."

The two councilmen have voted in line with Henderson City Councilwoman Debra March and North Las Vegas City Councilman Robert Eliason.

It appeared Thursday that the disagreement over the weight of scores could hinder the method in which the new requests for proposals are worded.

Clark County Commissioner Chris Giunchigliani said that issues such as maintenance, innovative techniques, customer service and employees' salaries and benefits are as important, if not more important, than what the commission pays the provider. Veolia scored higher than First Transit on technical issues.

Giunchigliani and fellow county Commissioner Larry Brown agreed that the lowest bidder is not necessarily the best choice for the community. The two have sided with Las Vegas City Council members Steve Ross and Lois Tarkanian in supporting Veolia.

The commission will determine in January how the bids will be weighted. Commissioners will not allow the same company to win both contracts.

It is possible that neither First Transit nor Veolia will land a contract. Splitting the service area into two regions and two agreements opens up the bidding process to more companies. Snow said as many as six companies worldwide would be qualified to operate the system.

Details of how the system would run under two operators still need to be determined. Snow said that longer routes, such as the Strip, would be given to one company so that operators do not change mid-route.

The companies will operate out of existing maintenance facilities on opposite sides of the Las Vegas Valley.

The board also will decide next month who should evaluate the bids.

On Thursday, they leaned toward allowing Regional Transportation Commission staff members to continue to score the proposals but with the help of private consultants.

They have decided another detail: One contract will be a five-year deal with an option for a second five years; the second contract will be four years with two four-year options.

Snow said the contracts are staggered to avoid having to rebid them at the same time.

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-387-2904.