R2019-85 Resolution Amending Mass Transit Management Agreement With MV Transportation, Inc.

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Economic&Comuiuiuty Development DATE: 6/17/2019 MEMO: No. 19-38 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Raymond Lai,Director of Economic and Community Development John Williams,Mass Transit Administrator SUBJECT: Resolution Amending Mass Transit Management Agreement with MV Transportation Inc. SUMMARY RECOMMENDATION: Staff recommends that this item be approved,granting an 18-month extension to the current agreement. BACKGROUND: The City of Decatur initially awarded a 5-year management contract to MV Transportation Inc. (Contractor)to manage the operations and ernployees of Decatur Public Transit System effective July 1,2014 and expiring on June 30,2019. Two amendments to the original agreement were approved by the City Council in 2014 and 2016. Of these two amendments,one was for payroll services provided by MV and the other was for utilization of MV's on-demand scheduling soflware license for DPTS Operation Uplift program For months,city staff has been considering if certain operational changes would be warranted to provide efficient,cost effective and improved delivery of transit services to the publia We have concluded that the current structure of the management agreement limits access to some of the desirable changes,as well as to the Contractor's purchasing power for ernployee benefits, group health care and other employee benefits due to the eacisting Sub-Contractor arrangement. Additionally,there have been management leadership transitions in the City since summer of 2018. There are too many variables at this time to execute a long-term turn-key contract for full-contract operations--even though this is the preferred long-term goal. The city will likely want to make route changes in conjunction with its neighborhood revitalization plan;the city will be taking delivery of 14 new buses in 2020;MV and the city plan to install new security cameras and soflware;and the city has not fully explored how to utilize MV's purchase and payrolUbenefit systems because we have not had full access to them. These variables should be resolved before entering in to a long term contract,otherwise the contract cost will increase needlessly.Add to this the tie required to go through the federal government's protracted procwement process,and we believe an 18-month elctension is appropriate. With the current agreement expiring at the end of June 2019,staff is seeking approval to amend the agreetnent for an 18-month extension from July 1,2019 until December 31,2020.As proposed,the City would also provide MV a 3%fee increase above what we are now providing monthly. Irnplementation of additional compensation is to be deternuned upon deployxnent of operational change measures. Staff has informed the Illinois Department of Transportation(IDOT)and Federal Transit Adu�inistration(FTA)of its plans to amend,extend and revise the scope of work. They have no objection to the city proceeding as proposed. POTENTIAL OBJECTIONS: Some local members of the Almagated Transit Union(ATLn have eapressed operational concerns with the current contractor and desire to have a shorter length of contract extension than recommended by staff. INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Should the City Council have any questions,they may contact Ray Lai at 424-2727 or rlai@decaturil.gov;ar John Williams at 424-3552 or jwilliams@decaturil.gov; BUDGET/TIME iMPLiCATIONS: None