R2019-193 Resolution Amending Mass Transit Management Agreement with MV Transportation, Inc.

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City Manager DATE: 11/25/2019 MEMO: No. 19-02 TO: Honorable Mayor Julie Moore and City Council Members FROM: Scot Wrighton,City Manager Jon Kindseth,Deputy City Manager John Williams,Mass Transit Administrator SUBJECT: Resolution Amending Agreement with MV Transportation Inc.,for Mass Transit Management SUMMARY RECOMMENDATION: Staff recommends that this fourth amendment item be approved,bringing the City closer to a full turn-key contract for Mass Transit operations. BACKGROUND: The City of Decatur desires to solicit for and award a contract to a complete turn-key solution to operate, manage and maintain the City owned transit facility and fleet. Over the past few years staff has been preparing for this shift in arrangement. The current agreement will run out by December of 2020,and the desire is to have multiple respondents to a RFP for a turn-key solurion,where the City would serve as a contract manager only done prior to this time. PRIOR COUNCIL ACTION: The City of Decatur initially awarded a 5-year management contract to MV Transportation Inc.to manage the operations and employees of Decatur Public Transit System effecrive July 1,2014. There have been 3 subsequent amendments to this original agreement. The first amendment moved payroll of employees to a pass through arrangement with MV,where the City ultimately provided payroll and benefits to the employees via a pass through arrangement. The second amendment was for the utilization of MV's on-demand scheduling soflware. The third amendment provided an 18-month contract e�ension to MV to continue their services through December 31,2020. This fourth amendment moves the City closer to the City's ultimate desire for a complete turn-key solution far Decatur mass transit. This fourth amendment will e�and MV's role from providing management oversight of the transit operation to being the undisputed employer of and contractor accountable for nearly all aspects of the transit operations. This amendment also includes a change that allows for e7cpanded service options which is being considered as apart of the enhanced service to be provided to the urban core(Neighborhood Revitalization strategy). We are planning on a trial service of extending evening hours for the urban core as part of the City's revitalization programs. STAFF REFERENCE: Should the City Council members have any questions or concerns,they may contact Deputy City Manager Jon Kindseth or Mass Transit Administrator John Williams. BUDGET/TIME IMPLICATIONS: The proposed 2020 budget includes the changes anticipated under this fourth amendment. The budget necessary to operate and maintain the transit operations does not increase with this fourth amendment, rather the expenses shift between line items within the Transit budget. The operaring costs for transit included in the 2020 budget are$8,170,272. This fourth amendment with MV will move salary&benefit e�enses,insurance e�enses,and other similar expenses from line items within the City budget to a contractual line item payable to MV as the contractor. The monthly invoices from MV will go from appro�mately$20,000 to over$500,000 due to these expenses being shifted entirely to MV,as opposed to the current arrangement of the City paying these e�enses. The net operating expense remains unchanged for the City,while shifting all personnel and liability to the MV as the contractor. ATTACHMENTS: Description Type Resolution Authorizing Fourth Amendment to MV Rcso(ution L�ttcr Agreement Fourth Amendment to MV Transit Agreement Exhibit