R2002-89 AUTHORIZING EXECUTION OF AN AMENDMENT TO THE AGREEMENT

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Mass Transit Memorandum No. 051002-1 May 10, 2002 TO: Honorable Mayor Howley and City Council FROM: Steve Garman, City Manager f7�-K.M Paul McChancy, Mass Transit Administrato��`- SUBJECT: Contract Amendment: Progressive Transportation Services, Inc. SUMMARY Staff recommends that Council approve an amendment of the RECOMMENDATION: agreement with Progressive Transportation Services, Inc., exercising the second year option of the contract. BACKGROUND: The City has a contract with Progressive Transportation Services 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 December 1, 1999, through June 30, 2001, with three option years that the City may exercise, if it chooses. The City has amended the contract by exercising the first year option, extending ', the contract through June 30, 2002. The relationship between the j City and Progressive has been very good, and there have been no ' significant issues raised during the term of this Agreement which I would cause the City to wish to replace Progressive. Therefore it �, is now time to amend the Agreement to extend the term of the I contract through June 30, 2003. I However, if Council wishes to replace Progressive 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: Progressive Transportation Services, Inc. STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME Exercising the second year option means accepting the rate for IMPLICATIONS: that year which was "pre-priced"in the Agreement. The rate for the year beginning July 1, 2002, is $3,000 above the current rate of$85,000. This would not represent a significant increase in Transit's annual budget.