First Regular Session
Sixty-first General Assembly
LLS NO. 970414.01 MCV
HOUSE BILL 971264
STATE OF COLORADO
BY REPRESENTATIVES Pfiffner and May;
also SENATOR Mutzebaugh.
TRANSPORTATION & ENERGY
A BILL FOR AN ACT
CONCERNING EXPANSION OF THE PRIVATIZATION OF BUS
SERVICE OPERATIONS OF THE REGIONAL TRANSPORTATION DISTRICT.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Increases the percentage of the bus service operations of the regional transportation district that the district is required to have provided by qualified private businesses from 20% to:
$ 25% from July 1, 1998, until July 1, 1999;
$ 30% from July 1, 1999, until July 1, 2000;
$ 35% from July 1, 2000, until July 1, 2001;
$ 40% from July 1, 2001, until July 1, 2002;
$ 45% from July 1, 2002, until July 1, 2003;
$ 50% on and after July 1, 2003.
Increases the required percentage after July 1, 2003, if the district does not meet specified cost performance standards.
Allows the district to temporarily contract for bus services totaling less than such percentages if the district does not receive any bid that would provide a cost savings of at least 3% compared to the costs that would be incurred if the district provided such services, but prohibits the district from contracting for less than 20% of such services.
Prohibits any contractual provision that would require a private provider to purchase the buses used to provide bus services for the regional transportation district unless the acquisition costs of private providers are less than the costs for the district.
Authorizes distinct business units of the regional transportation district to submit proposals to provide any of the bus services offered for contract by the district. Provides procedures for submittal of proposals by distinct business units and restrictions on such proposals.
Directs the state auditor to contract with a private
auditing firm to perform an audit of the costs of providing bus
service by the regional transportation district, by distinct business
units of the district, and by private providers. Requires the
district to reimburse the state auditor for all costs related
to such audit. Requires that the state auditor provide a report
regarding such audit to the house and senate transportation committees
on or before July 1, 1998.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 329119.5 (2) (a), (3) (a), and (9), Colorado Revised Statutes, as amended, are amended, and the said 329119.5 (2) is further amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS, to read:
329119.5. Competition to
provide bus service within the regional transportation district.
(2) (a) EXCEPT AS PROVIDED IN PARAGRAPH (a.5)
OF THIS SUBSECTION (2), the district shall implement a system
whereby at least
THE FOLLOWING PERCENTAGE of the bus service determined by the
district to be in the public interest shall be provided by qualified
private businesses pursuant to competitively negotiated contracts:
(I) TWENTY PERCENT UNTIL JULY 1, 1998;
(II) TWENTYFIVE PERCENT DURING THE PERIOD BEGINNING JULY 1, 1998, AND ENDING JULY 1, 1999;
(III) THIRTY PERCENT DURING THE PERIOD BEGINNING JULY 1, 1999, AND ENDING JULY 1, 2000;
(IV) THIRTYFIVE PERCENT DURING THE PERIOD BEGINNING JULY 1, 2000, AND ENDING JULY 1, 2001;
(V) FORTY PERCENT DURING THE PERIOD BEGINNING JULY 1, 2001, AND ENDING JULY 1, 2002;
(VI) FORTYFIVE PERCENT DURING THE PERIOD BEGINNING JULY 1, 2002, AND ENDING JULY 1, 2003;
(VII) FIFTY PERCENT ON OR AFTER JULY 1, 2003, OR AS INCREASED FOR FAILURE OF THE DISTRICT TO ACHIEVE THE COST PERFORMANCE STANDARDS UNDER SUBSECTION (10) OF THIS SECTION.
(a.5) THE DISTRICT MAY TEMPORARILY DELAY THE ACHIEVEMENT OF THE PERCENTAGES REQUIRED BY SUBPARAGRAPHS (II) TO (VII) OF PARAGRAPH (a) OF THIS SUBSECTION (2) IF THE DISTRICT FAILS TO RECEIVE A PROPOSAL FROM ANY TECHNICALLY QUALIFIED PROVIDER THAT WOULD CREATE A COST SAVINGS FOR THE DISTRICT EQUAL TO THREE PERCENT OR MORE IN COMPARISON TO THE COSTS THAT WOULD BE INCURRED IF THE DISTRICT PROVIDED THE SAME SERVICES; EXCEPT THE DISTRICT IS NOT AUTHORIZED UNDER THIS PARAGRAPH (a.5) TO CONTRACT FOR LESS THAN TWENTY PERCENT OF THE DISTRICT'S BUS SERVICES. IF THE DISTRICT CONTRACTS FOR LESS THAN THE REQUIRED PERCENTAGE OF BUS SERVICES BECAUSE OF THE LACK OF ANY PROPOSAL OFFERING SUFFICIENT COST SAVINGS, THE DISTRICT SHALL CONTINUE TO MAKE SUFFICIENT REQUESTS FOR PROPOSALS UNDER SUBSECTION (3) OF THIS SECTION SUCH THAT THE DISTRICT WOULD BE ABLE TO MEET OR EXCEED THE REQUIRED PERCENTAGE IF THE DISTRICT RECEIVES ACCEPTABLE PROPOSALS. SUCH NEW REQUESTS FOR PROPOSALS SHALL BE ISSUED WITHIN ONE HUNDRED TWENTY DAYS AFTER ANY DETERMINATION BY THE DISTRICT THAT NO RESPONSE TO A REQUEST OF PROPOSALS WILL ACHIEVE AT LEAST A THREE PERCENT COST SAVINGS.
(e) NO CONTRACT BETWEEN THE DISTRICT AND A PROVIDER UNDER THIS SECTION SHALL REQUIRE THAT THE PROVIDER PURCHASE ANY OF THE BUSES TO BE OPERATED BY THE PROVIDER UNDER THE CONTRACT UNLESS THE DISTRICT HAS DETERMINED THAT QUALIFIED PRIVATE BUSINESS VEHICLE ACQUISITION COSTS, EXCLUSIVE OF OPERATING COSTS, FOR THE PARTICULAR REQUEST FOR PROPOSALS ARE LESS THAN THE DISTRICT'S ACQUISITION COSTS.
(3) (a) (I) Subject to the requirements
of the federal "Urban Mass Transportation Act of 1964",
by March 31, 1989,
the district shall request proposals from private providers to
provide at least twenty percent
THE PERCENTAGE of the bus service of the district REQUIRED BY
PARAGRAPH (a) OF SUBSECTION (2) OF THIS SECTION as measured by
vehicle hours. The district's decision as to which bus service
routes shall be subject to requests for proposals shall be representative
of the district's total bus service operations; except that each
individual request for proposals may designate one type of bus
service provided by the district. Service provided by private
businesses pursuant to this section shall be accomplished through
attrition of the district's fulltime employees. No layoffs
shall occur solely as a result of the implementation of this section.
(II) AT LEAST NINETY DAYS PRIOR TO REQUESTING PROPOSALS FROM PRIVATE PROVIDERS FOR ANY BUS SERVICE, THE DISTRICT SHALL NOTIFY THE EMPLOYEES OF THE DISTRICT REGARDING THE REQUEST FOR PROPOSALS.
(III) THE DISTRICT MAY SUBMIT A PROPOSAL AND BE AWARDED A CONTRACT TO PROVIDE BUS SERVICE, SUBJECT TO THE FOLLOWING CONDITIONS:
(A) NO LESS THAN TWENTY PERCENT OF THE DISTRICT'S BUS SERVICE SHALL BE PROVIDED BY QUALIFIED PRIVATE BUSINESSES;
(B) THE DISTRICT SHALL SUBMIT ITS PROPOSAL THROUGH ONE OR MORE DISTINCT BUSINESS UNITS ESTABLISHED FOR THE SOLE PURPOSE OF PROVIDING BUS SERVICE UNDER REQUESTS FOR PROPOSALS ISSUED BY THE DISTRICT;
(C) THE DISTRICT'S DISTINCT BUSINESS UNIT SHALL SUBMIT A SEALED PROPOSAL BEFORE THE ADVERTISED DEADLINE FOR SUCH PROPOSALS; SUCH PROPOSAL MAY NOT BE ALTERED AFTER SUCH DEADLINE; AND THE DISTRICT SHALL PUBLICLY OPEN SUCH PROPOSAL AND MAKE THE CONTENTS OF THE PROPOSAL PUBLIC AT SUCH DEADLINE;
(D) ANY LABOR PROVISIONS ASSUMED IN THE PROPOSAL SHALL BE SPECIFIED IN A WRITTEN AND BINDING LABOR CONTRACT OR AMENDMENT TO SUCH CONTRACT BETWEEN THE DISTRICT AND ANY LABOR UNION REPRESENTING DISTRICT EMPLOYEES WHO WOULD BE INVOLVED IN PROVIDING THE SERVICE. SUCH WRITTEN AND BINDING LABOR PROVISIONS MAY NOT EXPIRE BEFORE THE PROPOSED CONTRACT AND RENEWAL OPTION PERIOD WOULD EXPIRE.
(E) THE DISTRICT SHALL DEFINE IN ADVANCE AND IMPLEMENT PROCEDURES TO ENSURE AN OBJECTIVE AND FAIR EVALUATION PROCESS, INCLUDING, BUT NOT LIMITED TO, A PROHIBITION AGAINST PROPOSAL EVALUATION PARTICIPATION BY ANY PERSONNEL OR DEPARTMENT THAT ASSISTED IN PREPARING THE DISTRICT'S PROPOSAL OR THAT HAS WITHIN ITS SCOPE OF RESPONSIBILITY THE PROVISION OF ANY TRANSIT SERVICE. IF THE DISTRICT DETERMINES TO AWARD A CONTRACT TO A DISTINCT BUSINESS UNIT OF THE DISTRICT, SUCH AWARD MAY NOT BE MADE UNLESS: THE DISTINCT BUSINESS UNIT RECEIVED NO ADVANTAGE OVER OTHER PROPOSERS; THE EVALUATION PROCESS WAS OBJECTIVE AND FAIR; AND ALL REQUIREMENTS OF THIS SECTION GOVERNING PROPOSALS BY DISTINCT BUSINESS UNITS OF THE DISTRICT WERE MET. THE DISTRICT SHALL PROVIDE A REASONABLE OPPORTUNITY FOR PRIVATE BUSINESSES TO COMMENT REGARDING THE EVALUATION PROCESS AND ANY PROPOSAL MADE BY A DISTINCT BUSINESS UNIT OF THE DISTRICT AND SHALL CONSIDER SUCH COMMENTS IN MAKING THE FINAL CONTRACT AWARD.
(F) THE DISTRICT'S PROPOSAL PRICE IS NOT LESS THAN ITS ATTRIBUTABLE FULLY ALLOCATED COSTS FOR THE SERVICE;
(G) THE DISTRICT MAY NOT MAKE OR BE BOUND BY ANY CONTRACT OR OTHER PROVISION THAT CREATES OR EXTENDS ANY FORM OF OBLIGATION FOR CONTINUED EMPLOYMENT OR EMPLOYEE COMPENSATION WITH RESPECT TO EMPLOYEES ASSIGNED TO THE SERVICE BEYOND THE EXPIRATION OF THE CONTRACT EXECUTED PURSUANT TO THE REQUEST FOR PROPOSALS;
(H) THE DISTRICT IS BOUND BY THE SAME TERMS, CONDITIONS, FINANCIAL PENALTIES, AND STANDARDS AS WOULD HAVE APPLIED TO A PRIVATE BUSINESS IF IT HAD BEEN AWARDED THE CONTRACT UNDER THE REQUEST FOR PROPOSALS; AND
(I) IF DURING ANY FINANCIAL QUARTER DURING THE TERM OF THE CONTRACT THE COST OF THE DISTINCT BUSINESS UNIT ATTRIBUTABLE TO THE SERVICE PROVIDED PURSUANT TO ANY REQUEST FOR PROPOSALS EXCEEDS THE CONTRACT PRICE FOR THE PERIOD FOR SUCH SERVICE, THE DISTRICT SHALL CANCEL THE CONTRACT AND ISSUE NEW REQUESTS FOR PROPOSALS FOR THE SERVICE PROVIDED UNDER THE CONTRACT. THE DISTRICT SHALL ISSUE A NEW REQUEST FOR PROPOSALS FOR SUCH SERVICE WITHIN ONE HUNDRED TWENTY DAYS AFTER THE END OF SUCH FINANCIAL QUARTER. THE DISTRICT SHALL SUBMIT A PROFIT AND LOSS STATEMENT TO THE STATE AUDITOR FOR SERVICE UNDER EACH REQUEST FOR PROPOSALS WITHIN THIRTY DAYS AFTER THE END OF EACH FINANCIAL QUARTER AND THE STATE AUDITOR SHALL MAKE SUCH STATEMENTS AVAILABLE FOR PUBLIC INSPECTION.
the intent of the general assembly to provide a reasonable period
for the board to experiment and gain knowledge and experience
with limited privatization and, after considering the performance
audit required under this section, to evaluate its effectiveness.
Therefore, the term of any part of any collective bargaining or
other agreement that relates to privatization or competitive contracting
of any jobs shall not extend beyond June 30, 1990, so that the
general assembly may have an opportunity to review the performance
audit and consider the need to provide further statutory direction
to the board. The provisions of this subsection (9) shall be subject
to the requirements of federal law.
SECTION 2. 329119.5, Colorado Revised Statutes, as amended, is amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:
329119.5. Competition to provide bus service within the regional transportation district. (3.5) (a) THE DISTRICT SHALL DESIGN REQUESTS FOR PROPOSALS TO MAXIMIZE COMPETITION AND ENCOURAGE PARTICIPATION BY SMALL BUSINESS ENTERPRISES AND DISADVANTAGED BUSINESS ENTERPRISES. THE MAXIMUM SIZE FOR AN INDIVIDUAL REQUEST FOR PROPOSALS IS TWENTYFIVE BUSES; EXCEPT THAT THE DISTRICT MAY ACCEPT AND AWARD CONTRACTS BASED UPON MULTIPLE REQUESTS FOR PROPOSALS.
(b) THE DISTRICT SHALL ROTATE CONTRACT EXPIRATION DATES TO THE MAXIMUM FEASIBLE TO MINIMIZE THE NUMBER OF CONTRACT AWARDS UNDER CONSIDERATION AT ANY ONE TIME.
(c) NO BUS SERVICE PROVIDED UNDER A CONTRACT ISSUED THROUGH A REQUEST FOR PROPOSALS SHALL REVERT TO OPERATION THAT IS NOT UNDER A REQUEST FOR PROPOSALS.
(4.5) (a) ON OR BEFORE JANUARY 1, 1998, THE STATE AUDITOR SHALL CONTRACT WITH A PRIVATE AUDITING FIRM KNOWLEDGEABLE IN URBAN MASS TRANSPORTATION TO EVALUATE THE COST OF BUS OPERATIONS OF PROVIDERS UNDER THE PROVISIONS OF THIS SECTION AND THE COST OF BUS OPERATIONS PROVIDED BY THE DISTRICT. THE DISTRICT SHALL REIMBURSE THE STATE AUDITOR FOR ALL COSTS RELATED TO SUCH AUDIT.
(b) THE STATE AUDITOR SHALL PROVIDE A REPORT REGARDING SUCH AUDIT TO THE HOUSE TRANSPORTATION AND ENERGY COMMITTEE AND THE SENATE TRANSPORTATION COMMITTEE ON OR BEFORE JULY 1, 1998. SUCH REPORT SHALL INCLUDE, BUT IS NOT LIMITED TO:
(I) A COMPARISON OF THE COSTS TO THE DISTRICT FOR BUS OPERATIONS CONDUCTED BY THE DISTRICT OTHER THAN OPERATIONS UNDER REQUESTS FOR PROPOSALS AND BUS OPERATIONS CONDUCTED BY QUALIFIED PRIVATE PROVIDERS AND DISTINCT BUSINESS UNITS OF THE DISTRICT; AND
(II) AN EVALUATION OF THE METHOD IN WHICH THE COSTS OF THE DISTRICT, DISTINCT BUSINESS UNITS OF THE DISTRICT, AND PRIVATE PROVIDERS TO PROVIDE BUS SERVICES ARE CALCULATED.
(10) (a) THE DISTRICT IS SUBJECT TO THE FOLLOWING COST PERFORMANCE STANDARDS BEGINNING WITH THE FISCAL YEAR ENDING IN 2002:
(I) THE DISTRICT'S COSTS PER VEHICLE HOUR OF BUS SERVICES NOT PROVIDED BY QUALIFIED PRIVATE BUSINESSES SHALL DECREASE BY TWO PERCENT FOR EACH YEAR AFTER THE FISCAL YEAR ENDING IN 1996. COMPLIANCE WITH SUCH STANDARD SHALL BE DETERMINED BY DIVIDING THE FULL ALLOCATED COST OF ALL SUCH BUS SERVICE BY THE VEHICLE HOURS OF BUS SERVICE NOT PROVIDED BY QUALIFIED PRIVATE BUSINESSES. IF THE DISTRICT'S COSTS PER VEHICLE HOUR OF BUS SERVICES NOT PROVIDED BY QUALIFIED PRIVATE BUSINESSES HAS DECLINED BY TWENTY PERCENT OR MORE, THE DISTRICT IS DEEMED TO BE IN COMPLIANCE WITH THIS SUBSECTION (10).
(II) THE DISTRICT'S COSTS PER VEHICLE HOUR OF ALL SERVICES, INCLUDING BUS, RAIL, PARATRANSIT, AND ANY OTHER TRANSIT MODE, NOT PROVIDED BY QUALIFIED PRIVATE BUSINESSES MAY NOT HAVE INCREASED FROM SUCH COSTS PER VEHICLE HOUR FOR THE FISCAL YEAR ENDING IN 1996.
(b) THE CALCULATIONS MADE UNDER PARAGRAPH (a) OF THIS SUBSECTION (10) SHALL EXCLUDE ONLY AMOUNTS PAID TO PRIVATE BUSINESSES FOR BUS SERVICE. THE RESULTING COSTS PER VEHICLE HOUR COMPARISON SHALL BE MADE ON AN INFLATION ADJUSTED BASIS, USING THE DENVERBOULDER AREA CONSUMER PRICE INDEX FOR URBAN WAGE AND CLERICAL WORKERS, AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR. FOR THE PURPOSES OF THE COST PERFORMANCE STANDARDS, DISTINCT BUSINESS UNITS OF THE DISTRICT ARE DEEMED TO BE PRIVATE BUSINESSES.
(c) THE DISTRICT SHALL SUBMIT A COPY OF ITS NATIONAL TRANSIT DATABASE REPORT TO THE STATE AUDITOR WITHIN SIX MONTHS AFTER THE END OF ANY FISCAL YEAR.
(d) THE STATE AUDITOR SHALL REPORT TO THE HOUSE TRANSPORTATION AND ENERGY COMMITTEE AND THE SENATE TRANSPORTATION COMMITTEE REGARDING WHETHER THE DISTRICT IS IN COMPLIANCE WITH THE COST PERFORMANCE STANDARDS PROVIDED IN PARAGRAPH (a) OF THIS SUBSECTION (10) WITHIN NINE MONTHS AFTER THE END OF EACH FISCAL YEAR. THE DISTRICT SHALL REIMBURSE THE STATE AUDITOR FOR ALL COSTS RELATED TO SUCH REPORTS. IF THE DISTRICT IS NOT IN COMPLIANCE WITH BOTH SUCH COST PERFORMANCE STANDARDS, THEN:
(I) THE PERCENTAGE OF BUS SERVICE TO BE PROVIDED BY QUALIFIED PRIVATE BUSINESSES SHALL BE INCREASED BY FIVE PERCENT EFFECTIVE JULY 1 OF THE YEAR FOLLOWING THE DUE DATE OF THE STATE AUDITOR'S REPORT FINDING THAT THE DISTRICT IS NOT IN COMPLIANCE WITH BOTH SUCH COST PERFORMANCE STANDARDS. THE NEW PERCENTAGE REQUIREMENT SHALL REMAIN IN EFFECT UNTIL INCREASED BY ANY FUTURE NONCOMPLIANCE WITH THE COST PERFORMANCE STANDARDS UNDER THIS SUBSECTION (10).
(II) DURING ANY PERIOD THAT THE DISTRICT IS NOT IN COMPLIANCE WITH BOTH OF THE COST PERFORMANCE STANDARDS, THE DISTRICT IS NOT ELIGIBLE TO SUBMIT PROPOSALS TO PROVIDE BUS SERVICE UNDER THIS SECTION.
SECTION 3. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.