R2022-15 Resolution Amending Transit Management and Operations Agreement with MV Transportation, Inc.

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OFFICE OF CITY MANAGER, TRANSIT DIVISION DATE: January 13, 2022 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Jon Kindseth, Deputy City Manager SUBJECT: Resolution Authorizing an Amendment to the Agreement for Management and Operation of City of Decatur Public Transit Services with MV Transportation, Inc. RECOMMENDATION: Staff recommends that this item be approved as presented. BACKGROUND: The City awarded a turn-key contract to MV in January 2021,whereby MV provides management and all operations for the Decatur Transit services. In addition to providing all of the staffing to operate the fixed route buses and paratransit services,this contract place the responsibility of maintaining the City owned facilities and fleet. The City provides for the capital needs of transit but the private contractor is to maintain them. Over the past year we have learned some things are better suited to remain under the City's direct control. The maintenance and upkeep of the City facilities is best retain by the City. The private contractor does not have any incentive to proactively maintain or improve our transit facilities and will only do the minimum required to stay in compliance with the agreement. Staff believes the City would be better served by having an active facility manager responsible to the maintenance of public facilities. This proposed amendment lowers the contract amount by$200,000 annually and removes the facilities maintenance responsibility. We intend to contract with the Decatur Civic Center for these services,the same way we do for most of the other City owned or leased facilities. This will bring more accountability and better oversight of these City owned facilities. POTENTIAL OBJECTIONS: Staff is not aware of objection. STAFF REFERENCE: Should the City Council have any questions,they may contact Jon Kindseth at(217)450-2323 or jkindseth(a)decaturil.gov, and he will also be at the City Council meeting. BUDGET/TIME IMPLICATIONS: This amendment will reduce the MV contract amount by$200K but this same amount is likely to be paid to Decatur Civic Center for these services, following an update to the City's facilities maintenance contract with Civic Center Authority.