R2007-51 AUTHORIZING EXECUTION OF AN AMENDMENT

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r �' Mass Transit Memorandum No. 032007-1 March 20, 2007 TO: Honorable Mayor Osborne and City Council Members FROM: Steve Ganna �ty Manager Paul McCha , Mass Transit Administrato�l�� �/ SUBJECT: Contract Amendment: First Transit, Inc. SUMMARY Staff recorrunends that Council approve an amendment of the RECOMMENDATION: agreement witll First Transit, Inc., exercising the first option year of the transit management contract. BACKGROUND: The City has a contract with First Transit, Inc., for the management of the Transit System. The company provides a Resident Manager, hires drivers, mechanics and all other necessary staff to operate the system, and provides technical expertise to the Transit System. . The term of the original contract was from July 1, 2004, through June 30, 2007, with two option years that the City may exercise, if it chooses. The first option year would extend the contract from July l, 2007, through June 30, 2008. The management fee for the i coming year, stated in the Agreement, would be $102,936, which I is a 3% increase over this year's fee. The relationship between the ' City and First Transit has been very good, and there have been no significant issues raised during the term of this Agreement which would cause the City to wish to replace First Transit. Therefore it is now time to amend the Agreement to extend the term of the contract through June 30, 2008. However, if Council wishes to replace First Transit and not extend the contract, then it is time to begin advertising for bids for a new management firm. POTENTIAL No known objection to the proposed amendment. OBJECTION: INPUT FROM Richard Foiles, Resident Manager OTHER SOURCES: First Transit, Inc. STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME Exercising the option year means accepting the manageinent fee IMPLICATIONS: which was "pre-priced" in the Agreement. The fee for the year beginning July l, 2007, is $3,000 above the current rate of $99,936. This would not represent a significant increase in Transit's annual budget.