Presentation of SYTRAL and the public service contract¯_EN2.pdf · President: Bernard Rivalta Vice President: Georges Barriol Executive Board 8 representatives 6 . The role of SYTRAL

syndicat mixte des transports

pour le Rhône et l’agglomération lyonnaise

1

Presentation of SYTRAL

and the public service contract

19 November 2012 – Hanoi

Bernard Rivalta

President of SYTRAL

The Rhône-Alpes region and Rhône County

Rhône-Alpes

Region

Rhône / Lyon

Rhône County:

In charge of inter-city coaches and school

buses outside the urban transport zone.

The public transport authority

3

Specific transport responsibilities:

Rhône-Alpes Region:

In charge of passenger rail transport

(TER system)

SYTRAL:

In charge of public transport in the Lyon metropolitan

area (TCL system).

The Urban Transport Plan

4

The local transit

authority:

Facilitate using

public transport

between the region’s

four urban areas:

Greater Lyon

/ Saint-Étienne and

region

/ Vienne and region

/ Capi, Isère

doorstep

SYTRAL operating area

- 58 municipalities and 7 peripheral towns

- 4 new municipalities joining SYTRAL in January

2013 (Brindas, Chaponost, Messimy and Thurins)

• 613sq.km

• 1.3 million inhabitants

Organisation

SYTRAL Supervisory Board

26 representatives

16 elected members

of the Lyon Urban Community

10 elected members

of Rhône county

SYTRAL Management 100 staff

President: Bernard Rivalta Vice President: Georges Barriol

Executive Board 8 representatives

6

The role of SYTRAL

Finances the system and its development

• metro, tramway, trolleybuses and bus

Supervises projects and is owner

• infrastructures, facilities and equipment…

Defines and adapts public transport policy

to demographic, economic and urban planning needs

• routes, frequency of service, etc.

Delegates system operations to private companies

• Monitors the operator’s performance

• Imposes sanctions for non-compliance

Defines and monitors service quality standards

• regularity, availability, cleanliness, safety, fight against fare evasion…

Defines price policy to ensure access for all

SYTRAL Organisation

8

The delegated public service contract

SYTRAL

Keolis Lyon operates the TCL system as well as

the OPTIBUS service for mobility-impaired

passengers.

Chartered coach

transport

9

The public transit system

Largest system outside of Paris in terms of service and

multimodal connections, with 5 different transport modes:

Metro: 4 lines,178 wagons, 43 stations (30 km)

Funicular: 2 lines, 6 wagons (1,2 km)

Tramway: 4 lines, 83 trams, 81 stations (50 km)

Trolleybus: 9 lines, 131 buses

Bus and minibus: 121 lines, 1000 buses

School bus: 141 lines, 112 buses

10

SYTRAL income: €836.4M (2012 budget)

11

Miscellaneous

€16M Transport tax

€263.2M

State

€26.4M

Customers

€199.5M

Local authority contribution

€145.6M

Loan

€185.7M

SYTRAL Spending: €836.4M (2012 budget)

Operating expenses

€378.7M

Sytral operations and miscellaneous

€9.7M

Equipment

€306.4M

Debt

€141.6M

12

Main transit lines

Dense coverage and

connections between the

public transport system and

roadways.

7,000 free parking spaces

available in the 20 Park&Ride

facilities located on the

outskirts of the city.

70% of all service is

electrically powered

13

TCL Park&Ride facilities

Every metro station, tram and C1

trolleybus is accessible, with the

exception of the Croix-Paquet station.

Enjeu : s’appuyer sur le réseau ferroviaire... Rail system of the Lyon metropolitan area and beyond

Boundaries of the Lyon

metropolitan area’s urban

transport system

R.E.A.L.: Creating an intermodal system

15

For use on Lyon public transport only

(TCL system)

For use on both TER regional trains and/or

TCL

A single combined pass

trains + interurban coaches + urban transport

Since 1 December 2007: TER (regional trains) + TCL

Since 1 January 2008: Rhone county coach + TCL

Since end 2009: STAS (Saint-Etienne) + TER + TCL

Since end 2009: TAG (Grenoble) + TER + TCL

Development Plan 2008 > 2014

16

Development plan investments : €342 million

Recurring investments : €292.3 million

Page n° 17

Overview of the call for tender process

Public Service Delegation Contract for Transport in the Lyon Area 1 January 2011 – 31 December 2016

p 17

Page n° 18

Contents

1. Overview of the call for tender process

2. Preparing and drafting the tender documents (TD)

3. Answering candidates’ questions

4. Bid analysis, negotiations and selection of a winner

5. External project consultants

6. Objectives of the tender documents

7. Criteria of the tender rules

8. Principles of the new contract

9. Financial provisions of the new contract

10. The improvements of the new contract

11. Implementation

Page n° 19

1. Overview of the call for tender process 1/2

Duration: about 3 years

3 key phases Participants

• Sytral staff

• Elected officials

• 8 external project consultants

end 07 June prepare and draft tender documents (TD)

Q3

June Nov. Answer

any questions

Dec. July Analyse bids, hold negotiations and select a winner

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2007 2008 2009 2010

Page n° 20

1. Overview of the call for tender process 2/2

Project management groups

• Technical monitoring = operational monitoring of the public service

delegation (project leader) + department representatives

• Subject-specific working groups

• Management Board = technical monitoring + management

• Steering comittee = Management board + President + 12 elected

officials

Tasks

• Evaluate the 2005-2010 public service delegation contract (PSD)

• Present the TCL system’s modes of delegation

• Draft the tender documents (TD)

• Answer candidate queries

• Analyse the bids

• Hold negotiations

• Help to select a winner

• Draft the 2011-2016 PSD contract

Page n° 21

2. Preparing and drafting the tender application documents

2.1. objectives and schedule

Provide potential candidates with detailed information to encourage competition and ensure fair consideration

Lay down the contractual framework Bring together all relevant parties, coordinate the various contributions, ensure that approval

is secured ‘at every stage of the process’ including that of the elected officials

Technical working groups

Internal questionnaires & interviews

with technicians

Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009

Validation, summary, guidelines

Choice of management

modes + contract

objectives

Drafting TD documents

Working groups, elected officials and technicians

2/06/09: TD 15,000 pages

External studies: service quality, water (for sprinkler systems and cleaning), fuel consumption, monitoring of mileage effectively served

Administrative formalities: consultation CCSPL*, CTP**

publication

3 approved candidates:

VEOLIA, KEOLIS,

TRANSDEV

approx. 720 man days

*CCSPL - local commission on public service

**CTP – joint technical committee

Page n° 22

What kind of delegation? 1. Public-private partnership contract unsuitable (investments by SYTRAL)

3. Direct management (public corporation)

unsuitable (SYTRAL’s structure is insufficient, additional costs in the long term)

2. Delegation of management

Delegation of public service Public procurement

Atypical contract Management Concession Operating concession

Public corporation

Single or multiple operators?

Single operator Multiple operators

according to transport mode

Multiple operators according to profession

+ • Qualified PSD contract • Simple and easy

interfaces

• Easy qualification as PSD contract

• Adaptable contract

• Competitive • Adaptable contract • Improved service quality

- • Not as competitive • Dependent on operators

• Complex interface and contracts

• Highly complex interfaces and contracts

2. Preparing and drafting the tender documents

2.3. Compiling the tender documents 2/3

Page n° 23

3. Answering candidates’ questions

3.1. Objectives and schedule

Answer candidates’ questions Visit the system’s key facilities Understand the system Send additional information

Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09

29/06 1/07

visit the system with

the 3 candidates

Candidates: 28 letters, i.e. 186 questions

SYTRAL: 33 responses made and additional information sent

Approx. 30,000 additional pages

Bid submission

deadline pushed back

(30/10) to 25/11

27/11: 3 offers opened by the

CDSP *

approx. 260 man days

* CDSP = Public Service Delegation Commission

Page n° 24


4.1. Objectives and scheduling

Read and evaluate the bids Optimise the bids Contractualisation of candidates’ bids

Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10

12 & 13/01: CDSP

interviewed candidates

SYTRAL: sent 15 additional information letters Approx. 7,000

additional pages

25/02: analysis report

Jun 10 Jul10

Useful discussions 12 sessions x 3 candidates

28 topics covered

24/03 bid submission

V. 2

19/05 bid submission

V. 3

8/06 bid submission

V. 4

mid 06: winner

selected

8/07: CS Supervisory Board Vote

Approx. 820 man days

President starts negotiations

Page n° 25


4.3. Bid analysis grid

Evaluate the bids based on selection criteria supported by technical analysis (content, schedule, means, cost, return on investment, etc.) of 17 criteria:

0

1

2

3

4

Modalités d'expl.

Information voyageurs

Distri. & stratégie

commerciale

Qualité de service

Communication

Sécurité

Fraude

AMO

PatrimoineDév. durable

Extensions d'offre

Information AO

DAQ

Ressources humaines

Juridique

Assurances

Finances

Page n° 26

6. Objectives of the tender documents

Listen to the customers’ expectations

Professionnalism Adapt offer to needs,

monitor quality…

Financial incentive Bonus Malus, satisfied customers

The customers

Control spending (to continue improving offer)

Improve management of equipment and property

CB

Environment & new technologies

Improve the reliability of reporting

Page n° 27


8.1. Fundamental principles

Performance obligations contract

Means objectives limited to a few targeted areas (e.g.: fighting fraud)

Pay only for the service performed

Specify the duties included in the contract fee

Maximum contractualisation of the winner’s proposals

6-year contract signed with the possibility for early termination by SYTRAL after 4 or 5 years

Page n° 28

Capitalisation on feedback from the 2005-2010 contract

Clearly apportioned responsibilities between transport authority and operating company

Anticipation of developments in the TCL system over the coming years: • ATOUBUS (complete revision of above-ground system), • Extension projects, • Development and improvements to SYTRAL equipment and property

Incentive mechanism for annual revenue commitment

A contract fee defined for the 6-year duration of the contract

Measurable financial targets in several areas: service quality, fighting fraud, back-up bus fleet, reporting to transport authority…

No exclusivity clause relating to additional services (e.g. electrical energy supply, park & ride, etc.)

Possibility to sub delegate with the prior approval of the transport authority

3 categories of non-compliance and corresponding financial sanctions


8.2. Features

Page n° 29

To define general transport policy as well as the quality and nature of

the offer

To define fare policy

To define the operating company’s targets

To act as contracting authority for all the necessary technical means,

equipment and infrastructure

To provide the operating company with the necessary tangible and

intangible assets to run the TCL system.


8.3. The role of the transport authority

Page n° 30

To implement the transport policy as defined by the transport authority

To perform the tasks entrusted to it, namely

• To produce the transport offer (regular service, school and special

event services)

• To distribute and sell transport tickets and passes

• To ensure the system’s safety

• To maintain and clean the service equipment and facilities

• To provide continuity of service

To store technical, economic, commercial and financial data concerning

the service management

To assist the transport authority, in particular by conducting studies


8.4. The role of the operating company

Page n° 31


9.1. Financial structure

Contract fee and revenue commitment defined for each year

Adverse impact for the operating company if actual revenue < revenue

commitment

50% split of the revenue if actual revenue > revenue commitment

Operating company earnings closely tied to operating profits

Purchase orders for external consultant services, pre-operation and test

runs based on contractual price scale

Ancillary service purchase orders based on the contract unit price

schedules

Page n° 32

Scope of remuneration defined for the contract’s 6-year duration

Transport authority’s projects for equipment and property development

included in the financial provisions of the contract

Fees for each extension project commence at the operation start date

Inclusion of an investment plan payable by the operating company

(transferred to the transport authority free of charge at the end of the

contract)

Index rate starting 01/01/2012 with no fixed amount, (annual index

variations of the EBIQ (energy and capital goods) and EV (green spaces))

indices with monthly caps


9.2. Financial consideration (FC)

Page n° 33

All revenue related to passenger transport

Revenue generated by fines and TCL products related to the system’s

operation

Additional revenues: resale of electricity (photovoltaic panels),

employer’s contributions for company mobility plans

Contract revenue commitment, including service extension projects

Index rate based on the variation in the average cost of a trip and the

average rise in fares


9.3. Revenue commitment (RC)

Page n° 34

Kilometres not served due to strikes are subtracted from marginal costs

(energy + maintenance + drivers)

Subtraction of time not worked by striking sales office and Allô TCL

platform staff (average monthly wage)

Revenue commitment is not reevaluated in the event of a strike

Financial compensation for travel card owners in the event of a long-

lasting strike and failure to meet the transport plan and information plan

Subtraction of kilometres not served on account of internal factors

(marginal cost plus 50%)

Subtraction of kilometres not served on account of external factors if

>0.30% of the annual mileage offer (marginal cost)

Revision of financial parameters in the event of variation >0.30 km/h of

the charted commercial speed

Flexible up to 1% of the annual mileage offer


9.4. Adjustment principles relating to the FC and RC

Page n° 35

Value in 2011 in millions of euros excl. tax – including Atoubus and extension projects

2011 2012 2013 2014 2015 2016 Total

Contract fee 334.1 330.9 331.4 335.1 332.7 331.2 1,995.3

Revenue commitment

177.2 190.7 201.0 212.3 218.7 224.1 1,224.0

Operational deficit

156.9 140.2 130.4 122.7 114.0 107.1 771.3


9.5. The figures

Constant scope (excluding extension and development projects and excluding Atoubus):

• The contract fee changes from €333.6 million in 2011 to €321 million in 2016

• The revenue commitment changes from €176.5 million in 2011 to €213.8 in 2016

Page n° 36

Provision of transport offer

€1.119 billion 2,993 Full-Time Equivalents

Passenger information and communication

€57 million 85 FTE

Distribution / Sales


Other customer services


Safety


Fighting fraud


Maintenance and assets management


Consulting and external consulting


Other support services


Total Contract: €1.995 billion 4,273 FTE


9.6. Detailed costs per mission and corresponding staff

Page n° 37

A clearer, expanded and more dynamic quality service system

• 7 redefined criteria (34 indicators), more adapted to passenger experience with

◦ amibitious goals that will be reevaluated half way through the contract

◦ unacceptable situations (according to our customers) that will be systematically disciplined

• Focus on regularity/punctuality

• A bonus/malus incentive system (3 million max bonus/6 million max penalty per year)

• Inspection means/measures improved

Key goal: ‘A customer-focused contract’

• Mobilise all staff: the quality of the service offered, passenger information, commercialisation, fighting fraud

• Improve monitoring of mileage covered

10. The improvements of the new contract 1/2

Page n° 38

More professionally managed assets

• High safety and quality through the application of structured plans

• Optimisation of assets entrusted to the operating company (e.g. back-up bus fleet set at 8%)

• Industrialisation of maintenance through proven methods

Finances

• Operational deficit to be reduced over the life of the contract

Managing environmental footprint by reducing consumption of

• diesel oil in surface rolling stock,

• energy in buildings,

• water (cleaning and sprinkler systems)

with precise reduction targets set over the life of the contract

10. The benefits of the new contract 2/2

Page n° 39

11. Resources

Volume

• tender documents + additional docs. approx. 52,000 pages

• bids approx. 12,000 pages

Internal human resources approx. 1,800 man days

(corresponds to 8 full-time equivalents over 1 year)

• compiling the tender documents (720 days)

• sending the tender documents receiving bids (260 days)

• analysing the bids finalising the contract (820 days)

Associated budget €1 million excl. tax (external services)

• Excluding compensation for unsuccessful candidates (750,000€/candidate)

Thank you for your time

Presentation of SYTRAL and the public service contract¯_EN2.pdf · President: Bernard Rivalta Vice President: Georges Barriol Executive Board 8 representatives 6 . The role of SYTRAL

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