syndicat mixte des transports pour le Rhône et l’agglomération lyonnaise
Presentation of SYTRAL and the public service contract
19 November 2012 – Hanoi
Bernard Rivalta President of SYTRAL
1 The Rhône-Alpes region and Rhône County
Rhône / Lyon Rhône-Alpes Region The public transport authority
Specific transport responsibilities:
SYTRAL: In charge of public transport in the Lyon metropolitan area (TCL system).
Rhône-Alpes Region: In charge of passenger rail transport (TER system)
Rhône County: In charge of inter-city coaches and school buses outside the urban transport zone.
3 The Urban Transport Plan
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
4 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
10 elected members 16 elected members of Rhône county of the Lyon Urban Community
SYTRAL Supervisory Board 26 representatives
Executive Board 8 representatives
President: Bernard Rivalta Vice President: Georges Barriol
SYTRAL Management 100 staff
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
Chartered coach
transport
Keolis Lyon operates the TCL system as well as the OPTIBUS service for mobility-impaired passengers.
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)
State Miscellaneous €26.4M €16M Transport tax Local authority contribution €263.2M €145.6M
Loan €185.7M Customers €199.5M
11 SYTRAL Spending: €836.4M (2012 budget)
Sytral operations and miscellaneous Debt €9.7M €141.6M
Equipment Operating expenses €306.4M €378.7M
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
TCL Park&Ride facilities
Every metro station, tram and C1 trolleybus is accessible, with the exception of the Croix-Paquet station. 13 Rail systemEnjeu : ofs’appuyer the Lyon sur metropolitan le réseau ferroviaire... area and beyond
Boundaries of the Lyon metropolitan area’s urban transport system R.E.A.L.: Creating an intermodal system
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
For use on Lyon public transport only For use on both TER regional trains and/or (TCL system) TCL 15 Development Plan 2008 > 2014
Development plan investments : €342 million Recurring investments : €292.3 million
16 Public Service Delegation Contract for Transport in the Lyon Area
1 January 2011 – 31 December 2016
Overview of the call for tender process
Page p 17n° 17 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° 18 1. Overview of the call for tender process 1/2
Duration: about 3 years
3 key phases 2007 2008 2009 2010
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
end 07 June prepare and draft tender documents (TD)
June Nov. Answer any questions Dec. July Analyse bids, hold Participants negotiations and select a winner • Sytral staff • Elected officials • 8 external project consultants
Page n° 19 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° 20 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
Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Internal Choice of questionnaires management & interviews Technical working Validation, summary, modes + with groups guidelines contract technicians objectives
External studies: service quality, water (for sprinkler systems and cleaning), fuel consumption, monitoring of mileage effectively served 3 approved candidates: Administrative formalities: VEOLIA, publication consultation CCSPL*, CTP** KEOLIS, TRANSDEV
approx. 720 man days Drafting TD documents Working groups, elected *CCSPL - local commission on public service officials and technicians
**CTP – joint technical committee 2/06/09: TD 15,000 pages
Page n° 21 2. Preparing and drafting the tender documents 2.3. Compiling the tender documents 2/3
What kind of delegation?
1. Public-private partnership contract unsuitable (investments by SYTRAL) 2. Delegation of management 3. Direct management (public corporation) unsuitable (SYTRAL’s Delegation of public service Public procurement structure is insufficient, additional costs in the long term)
Atypical contract Concession Operating Public Management concession corporation
Single or multiple operators?
Multiple operators Multiple operators Single operator according to transport according to profession mode • Qualified PSD contract • Easy qualification as PSD • Competitive + • Simple and easy contract • Adaptable contract interfaces • Adaptable contract • Improved service quality
• Not as competitive • Complex interface and • Highly complex interfaces - • Dependent on operators contracts and contracts
Page n° 22 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
Candidates: 28 letters, i.e. 186 questions Approx. 30,000 SYTRAL: 33 responses made and additional information sent additional pages
Bid 29/06 1/07 submission visit the 27/11: 3 offers deadline system with opened by the pushed back the 3 CDSP * (30/10) to candidates 25/11
approx. 260 man days
* CDSP = Public Service Delegation Commission Page n° 23 4. Bid analysis, negotiations and selection of a winner 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 Jun 10 Jul10
Approx. 7,000 SYTRAL: sent 15 additional information letters additional pages
12 & 13/01: 25/02: CDSP analysis interviewed report candidates
Useful discussions President starts 12 sessions x 3 candidates negotiations 28 topics covered
24/03 bid 19/05 bid 8/06 bid submission submission submission V. 2 V. 3 V. 4
mid 06: 8/07: CS winner Supervisory Approx. 820 man days selected Board Vote
Page n° 24 4. Bid analysis, negotiations and selection of a winner 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: Modalités d'expl. 4 Finances Information voyageurs
Distri. & stratégie Assurances 3 commerciale
2 Juridique Qualité de service
1
Ressources humaines Communication
0
DAQ Sécurité
Information AO Fraude
Extensions d'offre AMO
Dév. durable Patrimoine
Page n° 25 6. Objectives of the tender documents
Listen Professionnalism Financial incentive to the customers’ expectations Adapt offer to needs, Bonus Malus, satisfied customers monitor quality…
The customers
Control spending Improve management of Environment & new (to continue improving offer) equipment and property technologies
CB
Improve the reliability of reporting Page n° 26 8. Principles of the new contract 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° 27 8. Principles of the new contract 8.2. Features
. 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 Page n° 28 8. Principles of the new contract 8.3. The role of the transport authority
. 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.
Page n° 29 8. Principles of the new contract 8.4. The role of the operating company
. 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
Page n° 30 9. Financial provisions of the new contract 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° 31 9. Financial provisions of the new contract 9.2. Financial consideration (FC)
. 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
Page n° 32 9. Financial provisions of the new contract 9.3. Revenue commitment (RC)
. 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
Page n° 33 9. Financial provisions of the new contract 9.4. Adjustment principles relating to the FC and RC
. 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
Page n° 34 9. Financial provisions of the new contract 9.5. The figures
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 177.2 190.7 201.0 212.3 218.7 224.1 1,224.0 commitment Operational 156.9 140.2 130.4 122.7 114.0 107.1 771.3 deficit
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° 35 9. Financial provisions of the new contract 9.6. Detailed costs per mission and corresponding staff
Provision of transport offer Passenger information and Safety communication €1.119 billion 2,993 Full-Time Equivalents €57 million €59 million 85 FTE 86 FTE Distribution / Sales Other customer services Fighting fraud
€19 million €32 million 23 FTE €75 million 79 FTE 232 FTE Maintenance and assets Consulting and external Other support services management consulting
€497 million €21 million €117 million 640 FTE 42 FTE 94 FTE
Total Contract: €1.995 billion 4,273 FTE
Page n° 36 10. The improvements of the new contract 1/2
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
Page n° 37
10. The benefits of the new contract 2/2
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
Page n° 38 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)
Page n° 39 Thank you for your time