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Mass Transit Memorandum <br /> No. 060903-2 <br /> June 9,2003 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Garman, City Manager <br /> Paul McChancy, Mass Transit Administrator <br /> SUBJECT: Assignment of Management Contract-Progressive Transportation Services, Inc. <br /> SUMMARY Staff recommends that Council approve a Resolution to consent to <br /> RECOMMENDATION: the assignment of the Transit System's management contract from <br /> Progressive Transportation Services, Inc., to First Transit, Inc. <br /> BACKGROUND: The City has entered into a contract with Progressive Transportation <br /> Services, Inc. ("Progressive"), to manage and operate the Decatur '�, <br /> Public Transit System. This contract expires on June 30, 2004. I, <br /> Coach USA, Inc., the parent company of Progressive, recently <br /> announced their intention to sell the assets of their transit division <br /> to First Transit, Inc., and has requested that all existing contracts <br /> with Progressive be assigned to First Transit, Inc. The contract <br /> states that, "This Agreement shall not be assigned, transferred, <br /> hypothecated or pledged by either party without prior written <br /> consent of the other party." (Sec 29, page 10) The City has the <br /> right to approve or disapprove of the assignment of this contract <br /> to First Transit. (continued on page 2) <br /> POTENTIAL There are no known or expected objections to the proposed contract <br /> OBJECTION: assignment, although staff and DPTS employees have concerns due <br /> to past experience with Ryder/ATE. <br /> INPUT FROM Richard Foiles, DPTS General Manager, <br /> OTHER SOURCES: Progressive Transportation Services, Inc. <br /> Nanette Ruffin, President <br /> Amalgamated Transit Union (ATU) Local#859 <br /> Bradley Thomas, President <br /> Progressive Transportation Services, Inc. <br /> Richard Dunning, Senior Vice President <br /> First Transit, Inc. <br /> STAFF REFERENCE: Paul McChancy, Mass Transit Administrator <br /> BUDGET/TIME There will be no change in the cost of this contract or in the amount <br /> IMPLICATIONS: or share paid by the City. There will be no change in the amount of <br /> staff time required under the contract. <br />