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TRANSPORTATION SERVICES DEPARTMENT <br /> No. <br /> DATE: December 16, 2024 <br /> TO: Mayor Julie Moore Wolfe and City Council Members <br /> FROM: Tim Gleason, City Manager <br /> Jon Kindseth, Deputy City Manager <br /> Lacie Elzy, Transportation Services Director <br /> SUBJECT: Resolution Authorizing a Third Amendment to the Agreement for <br /> Management and Operation of City of Decatur Public Transit Services with MV <br /> Transportation, Inc. <br /> SUMMARY RECOMMENDATION: Staff recommend that this item be approved as <br /> presented. <br /> BACKGROUND: The City of Decatur awarded a turn-key contract to MV in January <br /> 2021, whereby MV provides management and all operations for the Decatur Transit <br /> services. Over the past two years, we have amended this contract to remove facilities and <br /> assets maintenance as we have found that bringing these functions in house has provided <br /> the City better oversight, efficiencies, and overall cost savings. <br /> MV has a collective bargaining agreement with the Amalgamated Transportation Union <br /> (ATU)that represents the Operational Staff of Transit, including bus drivers and <br /> dispatchers. MV and the ATU struggled with negotiations over the past year due to <br /> stagnant CDL wages. MV recognized that the cost structure of the City-MV Agreement <br /> set forth in 2021, did not account for the post pandemic inflation. This cost structure did <br /> not allow them to offer the ATU median wages for our current CDL market in Decatur. <br /> The City recognizes that Decatur has a highly competitive CDL market due to our <br /> industries locally and that the bus driver's wages were 30%below the median market <br /> wages. This caused MV to lose bus drivers and cut routes throughout 2024. To assist with <br /> closing the wage gap, MV approached the City to negotiate a Yd amendment that will <br /> increase the MV-City contract by an addition$1.3 million over the remaining life of the <br /> contract, set to end June 30, 2026. The additional funding will go directly to frontline <br /> operational employees' wages, closing the gap between the CDL wages Transit offers <br /> versus our local market wages. <br /> POTENTIAL OBJECTIONS: Staff is not aware of objections. <br /> STAFF REFERENCE: Should the City Council have any questions; they may contact <br /> Lacie Elzy at 217-542-3559 or lelzy(&decaturil.gov <br />