R2004-97 AUTHORIZING EXECUTION OF AN AMENDMENT

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Mass Transit Memorandum No. 061104-2 , June 11,2004 I TO: Honorable Mayor Osborne and City Council Members FROM: Steve Garm 'ty Manager Paul McCha c , ass Transit Administrat�c SUBJECT: Extension of Transit Management Contract SUMMARY Staff recommends that Council approve a Resolution to amend the RECOMMENDATION: current Transit management contract with First Transit, Inc., to extend the contract for 90 days. BACKGROUND: The City now contracts with First Transit, Inc. for management of the Transit System. (This contract was assigned to First Transit in 2003 when that company acquired Progressive Transportation Services, Inc.) This contract expires on June 30, 2004. City Council action on the award of a new management contract has been delayed during consideration of the transit employees' petition to become employees of the City. Since that issue will not be decided before June 30th, the end of this contract, and since the Transit System cannot operate without a contract, an extension of the cunent contract is needed. The proposed contract amendment has been approved by First Transit, Inc. The proposed contract amendment would extend the term of the current contract through September 30, 2004. It would also increase the compensation paid to First Transit from $7,583.33 per month to $7,850.00 per month. This is the amount of First Transit's low bid which is included in the pending 2004-2009 Transit management contract. POTENTIAL There are no known or expected objections to the proposed contract OBJECTION: extension. INPUT FROM Rick Dunning, Senior Vice President OTHER SOURCES: First Transit, Inc. STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME The cost of this contract would increase by $266.67 per month, or IMPLICATIONS: $800.01 for three months. There will be no change in the amount of staff time required under the contract extension.