AGENDA TITLE:
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Adopt a Resolution Authorizing Interim City Manager to Execute a Professional Services Agreement with Transdev Services, Inc., of Lombard, Illinois, for Best Value Operation of Lodi’s General Public Fixed Route, Americans with Disabilities Act (ADA) Paratransit, and Dial-A-Ride Transit Services ($15,507,775) (PW)
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MEETING DATE:
April 15, 2026
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing Interim City Manager to execute a Professional Services Agreement with Transdev Services, Inc., of Lombard, Illinois, for best value operation of Lodi’s general public fixed route, Americans with Disabilities Act paratransit, and Dial-A-Ride transit services, in an amount not to exceed $15,507,775.
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BACKGROUND INFORMATION:
The City of Lodi operates fixed-route, Americans with Disabilities Act (ADA) Paratransit, and Dial-a-Ride transit services under the name Lodi GrapeLine/VineLine. Operation of the transit services, which includes operating City-owned buses, dispatching duties, and daily general management, is provided through a third-party transit services contract. This arrangement is the result of competitive solicitations, as required for Federally funded contracts.
While the daily operations and management duties fall to the third-party contractor, City staff in the Transportation Division of Public Works are responsible for overall administration and planning of the service, provision and maintenance of the bus fleet and operations facilities, and adhering to all Federal Transit Administration (FTA) and State requirements.
With the current transit services contract with Transdev Services, Inc. (Transdev) set to expire on June 30, 2026, staff developed a comprehensive Request for Proposals (RFP) for Transit Operations Services. The RFP was designed to ensure the continued delivery of safe and reliable transportation services that meet the needs of the public, while also elevating service expectations to achieve higher quality performance, incorporate modern technology solutions, and enhance customer service.
Key Highlights from the Transit Operations RFP:
• Performance-Based Approach: Unlike traditional RFPs that specify exactly how services must be delivered, this RFP focuses on what needs to be provided (e.g., adequate staffing to operate service). This allows the contractor, as the subject-matter expert, to determine the most efficient methods, often resulting in lower costs for the City.
• Wages & Staffing: The RFP aligns with the recently approved Amalgamated Transit Union (ATU) collective bargaining agreement, which bus drivers and dispatchers are a part of. New operator starting wages are $23.15/hour, with annual increases of 4.5-5% through 2029. Lead Dispatchers, Dispatchers, Reservationists, and Utility Workers receive 5% annual increases, with Utility Worker wages adjusted to meet or exceed minimum wage. These standards help attract and retain qualified staff, supporting safe, reliable, and high-quality service.
• Technology & Reporting: Bidders must provide on-time performance (OTP) reporting. Until the City’s future ITS system is fully operational, the contractor will supply OTP data and serve as a backup if needed.
• Performance Assessments: The City can apply financial penalties when service fails to meet established performance standards. This RFP includes enhanced assessments based on lessons learned from past operations.
• Customer Service & Rider Experience: A strong focus on rider experience requires contractors to implement effective complaint, concern, and suggestion tracking, timely response procedures, conflict resolution, and comprehensive staff training-including customer service and sensitivity training-to ensure professional and welcoming transit operations.
The RFP was released on December 1, 2025 and widely advertised through key transit industry channels, including Mass Transit, Transit Talent, the California Association for Coordinated Transportation, and the California Transit Association. It was also posted on the City’s Transit webpage and uploaded to the Virtual Bid online procurement system for broad access by prospective bidders. Additionally, targeted email notifications were sent to thirteen established public transit contractors.
City staff hosted a non-mandatory pre-proposal meeting and facility tour to address questions from potential proposers, with 19 participants representing nine companies attending either in person or via Zoom. During the solicitation period, two addenda were issued: one to correct a pricing proposal spreadsheet formula, and one to provide written responses to all questions submitted.
Six proposals were received by the submission deadline of February 2, 2026 from the following firms: Transdev Services, Inc.; Keolis Transit Services, LLC; Via Transit (USA), LLC; Storer Transit Systems; Resource Management Services (RMS); and RTW Management.
An Evaluation Committee of three City staff members and three local transit managers independently reviewed and scored the proposals against the technical qualifications outlined in the RFP. Four proposers were invited to interviews, which were conducted on February 17 and 18, 2026. Interviews included presentations by the proposers’ corporate and key management staff, followed by a question-and-answer session. The Interim Public Works Director also participated as a silent observer during the evaluation process.
To maintain scoring integrity, cost proposals were evaluated separately from technical scores. Proposers submitted pricing as a fixed monthly fee (covering constant costs like utilities and management) and an hourly operations cost (covering labor that varies with service levels). The lowest-priced proposal received 20 points, with other proposals scored proportionally based on their cost, ensuring fair weighting of price while considering technical criteria. Start-up costs were not included in the Pricing and Value score to avoid giving an advantage to the incumbent contractor. Instead, they were evaluated under the Thoroughness and Comprehensiveness category, as part of the Start-Up and Transition Plan.
Based on the weighted criteria outlined in the RFP, the final scores (for the four companies that were invited for interviews) are as follows: Transdev - 95.67 points; Storer - 84.42 points; Keolis Transit Services, LLC - 80.56 points; and Via Transit - 78.17 points.
In this solicitation, contract pricing accounted for 20% of the total score, while technical qualifications accounted for 80%. Technical criteria included experience, technology, staffing and training plans, proposal completeness, and employee retention.
Unlike Public Works construction contracts, which are awarded to the lowest responsible bidder, FTA rules allow a “Best Value” award, considering factors beyond price, including technical approach, quality of personnel, past performance, and management plan.
While Transdev’s cost proposal was not the lowest, it was very close to the lowest bid and received the highest overall score based on the “Best Value” evaluation, which considered technical qualifications, service approach, and overall impact.
Transdev’s proposal demonstrated a clear understanding of the City’s priorities, including high-quality service delivery, driver retention programs, customer service, and technology to enhance GrapeLine performance and the rider experience. These efforts are critical to attracting and retaining a skilled transit team.
As added benefits at no additional cost, Transdev will:
• Provide management and technical staff to assist with the fleet electrification rollout and ITS project.
• Offer a new My Transit Manager mobile app for paratransit passengers and a My Agency portal for real-time vehicle tracking and internal operations.
• Implement the proprietary tracking tool Shadow, an on-time performance tool.
• Support Transdev Experience (T.Ex) rollout for improved passenger experience and conduct outreach to local agencies, senior centers, and schools.
The proposal also included a letter of commitment from the General Manager, addressing past challenges with turnover in this role.
Transdev’s mission aligns with the City’s goals: to provide safe, reliable, and innovative transit solutions, serve community interests, develop local services, and protect the environment.
Transdev is the largest private-sector, multi-modal transportation provider in the United States, employing over 32,000 staff and operating 17,000 transit vehicles across more than 400 contract locations nationwide. In California, Transdev currently manages similar transit contracts for Butte Regional Transit (Chico), San Benito County Local Transportation Authority, Central Contra Costa Transit Agency (CCCTA) in Concord, County Connection, Napa Valley Transportation Authority (NVTA) in Napa, and the City of Pasadena, demonstrating extensive regional experience in managing public transit operations.
Since Transdev is the City’s current service provider, the transition period is expected to proceed seamlessly starting May 1, 2026, with no additional start-up costs. During this time, Transdev will focus on implementing new initiatives, including the My Agency Portal App, My Transit Manager app, T.Ex, and implementation of Shadow on-time performance tracking. Transdev recognizes the importance of a smooth transition and has committed to retaining the current staff assigned to the contract, with pay and benefits equal to or greater than their existing levels. Following the transition period, the transit operations services portion of the contract will begin on July 1, 2026.
Staff recommends awarding the Transit Operations Services contract to Transdev based on the strength of its comprehensive proposal, including its management team, corporate support, operations plan, and “Best Value” pricing. Transdev’s proposal also includes services that will enhance the GrapeLine system, with commitments to customer service, marketing support, innovation, and employee programs. The proposal demonstrates a strong understanding of the City’s transit needs and expectations. As stated in Transdev’s proposal:
"The City is committed to enhancing the quality of life for Lodi residents, reflecting your community’s high standards for a transit system that is recognized by the Council of Governments as a ‘Jewel of the City.’ It has been our honor to work with you, and we will continue to bring the resources needed to help your transit services thrive."
The initial term of the agreement is three years, plus a two-month transition period (May - June), with two optional one-year extensions, for a total potential term of five years and two months.
The Professional Services Agreement includes the RFP, addenda, Transdev’s price and technical proposal, the agreement itself, and Exhibits A-D. Due to the size of the agreement, it is available upon request from the Transportation Division of Public Works.
FISCAL IMPACT:
The total cost of the project over five years, if all optional extensions are exercised, is $15,507,775. Funding for these services are available through transit-specific sources, including the Federal Transit Administration (FTA) Section 5307 funds, State Transportation Development Act (TDA) Local Transportation Funds (LTF), Measure K, Fare Revenue, and Miscellaneous revenue. Transit services are provided within Lodi City limits, thereby providing service to all Districts. There is no impact to the General Fund.
FUNDING AVAILABLE:
This contract is funded each year in the Transit Operating Expenses (60054103.72324 & 60054104.72324) as included in the adopted fiscal year budgets.