SORTA to streetcar operator: Fix it or you're fired
The agency responsible for overseeing the streetcar got tough Friday, telling operator Transdev in a letter to fix the problems or it would be fired for breach of contract.
The Southwest Ohio Regional Transit Authority issued the edict as streetcar-related woes pile up: broken cars, low ridership and long waits at stops among them.
SORTA, in a letter to Transdev's rail division manager, Kenneth Westbrook, gave Transdev 90 days to fix the problems.
"You are hereby notified that Transdev has failed to perform its services in compliance with the contract," wrote SORTA CEO and President Dwight A Ferrell. "Therefore, unless these breaches are cured within 90 days after receipt of this notice, SORTA may terminate for default under the terms and conditions of contract."
The letter comes on the heels of another get-tough move. City officials Friday announced damages against CAF USA, the company that manufactures the streetcars, due to several issues including equipment that doesn't work in the cold. Withheld payment and liquidated damages related to other payment milestones total $692,200.
Transdev officials told The Enquirer they are developing a thorough response.
"We understand SORTA’s concerns and have already undertaken plans to fully address them," Scott Hagen, Transdev's spokesman wrote in a statement Saturday. "We are supporting our local management and safety teams with significant national support and are dedicated to ensuring the highest standards of performance in safety, operations and customer care in Cincinnati, as in all the communities we serve around the globe."
Thursday night, four of the five streetcars were out of a service for a period of time, problems blamed on manufacturer CAF, not Transdev.
SORTA oversees operations, but it is Transdev that contracts with the city to run the streetcar.
Violations listed in Ferrell's letter:
* Repeated rule and standard operating procedure violations. The letter did not elaborate.
* Failure to develop, submit for approval and implement an acceptable fare inspection plan, which was to be done prior to revenue service commencing. As of recently, three tickets had been issued for riding without paying.
* Staffing shortages. At least one driver has already quit, The Enquirer has learned.
* Failure to maintain operational performance requirements, including 12-15 minute headways, the time it takes to get to each stop.
* Failure to perform various contractual scope requirements. The letter did not elaborate.
SORTA, with help from a consultant, is set to begin a full review of streetcar operations, Farrell wrote Transdev must submit an action plan and specific timelines for how it will fix the problems. It's due this coming Friday.
Farrell was not available for comment, a SORTA spokeswoman said.
Cincinnati Mayor John Cranley, who has pushed SORTA to take a get-tough stance, could not be reached for comment.
The streetcar has been plagued with problems but is popular on weekends when people have been time to spend going from place to place. City officials were expecting a stronger ridership across seven days of the week. Since the streetcar opened Sept. 9, ridership has fallen to an average of 1,664 riders a day in November -- about half what was projected -- and riders report long waits at stops. A downtown traffic study is planned, with some council members hoping changes stemming from it will improve streetcar speed.
When problems emerged in October, city officials threatened to take Transdev to court to enforce the contract, a move Cranley supports, if necessary.
Transdev's Westbrook has pointed out SORTA agreed to an adjustment period of six months in order to understand ridership demand.
Transdev was one of two companies that Council considered for the job.
There was a lot of pressure to keep costs down because the sources of revenue were uncertain and only $4.2 million had been allocated.
Transdev has agreed to run the streetcar for five years, with an option to operate the streetcar for up to an additional five years.
About the Transdev contract
• France-based Transdev Services must run the streetcar on schedule at least 85 percent of the time each month or face financial penalties.
• Transdev will be required to operate the streetcar at 12- to-15-minute intervals.
• It will cost a minimum of nearly $1,000 to charter a streetcar vehicle for private parties and functions.
• The company can receive small incentives for increasing ridership by 10 percent a month. The incentive program will start one year after the streetcar opens. The metric will compare the current month’s data to the same month the previous year.
• Total incentives will not cause the payment amount to exceed the approved monthly cost, meaning city taxpayers are not expected to be on the hook for additional money.