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HomeMy WebLinkAbout09. 20-433 OCTOBER 27, 2020 20-433 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE EXTENSION OF AGREEMENT WITH RUNNING INC. FOR NON-AMBULATORY PARATRANSIT SERVICE INITIATED BY: TRANSPORTATION DEPARTMENT NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Amendment to the Agreement with Running, Inc. for Non- Ambulatory Paratransit Services for 2021 is hereby approved and the proper City officials are hereby authorized to execute and deliver the agreement in substantially the same form as attached hereto, any changes in the execution copy being deemed approved by their respective signatures. BE IT FURTHER RESOLVED that the money for this purpose is hereby appropriated from: Acct. No. 05111728-6449 Purchased Transportation TO: Honorable Mayor and Members of the Common Council FROM: Jim Collins, Transportation Director DATE: October 23, 2020 RE: Amendment to Contractor Agreement with Running Inc. Non -Ambulatory Paratransit Service BACKGROUND GO Transit's contract for non -ambulatory paratransit service is expiring at the end of this year. Running Inc. is the current contractor. GO Transit requested proposals to provide this service for the next five years. There is a separate contract for ambulatory paratransit service that expires at the end of 2021. Paratransit service is required by ADA to be provided by all systems that operate fixed route service. Paratransit service is required to be equivalent to fixed route bus service. This means we must offer paratransit the same service days and hours as fixed route. GO Transit provides 24/7 paratransit service which greatly exceeds ADA requirements. ANALYSIS GO Transit only received one proposal which was from our current contractor Running Inc. The proposal included a rate ($39.92) which was about 50% higher than our current rate of $24.25/ride. We discussed the reasons for the drastic proposed rate increase with Running Inc. They stated the main reasons were the reduction in the number of rides expected (pre and during the pandemic), increased labor costs, limited opportunities to achieve economies of scale and the need to provide 24/7 service. They indicated they have been losing money on this contract for years but wanted to honor it. After discussions with Running, we were able to negotiate a one year extension of the current contract with a rate of $35 per ride. This one year extension will give us a chance to evaluate our paratransit service hours and retool the request for proposal to attract more interest. This extension will also allow us to bid the ambulatory and non - ambulatory services together. This will increase the number of rides available which will make the contract more attractive to prospective service providers by offering them the chance to achieve economies of scale. The Transit Advisory Board recommends approval. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 htip://www.ci.oshkosh.wi.us FISCAL IMPACT We projected this contract would cost approximately $437,000 in 2020. This one year contract extension is expected to cost $525,000. The operating budget account number for purchased transportation is 05111728-6449. Our federal and state operating grants will cover approximately 53% of the additional cost, Winnebago County will cover approximately 30% of the additional cost and the city will absorb the remaining 17% through GO Transit fund balance. RECOMMENDATION I recommend the contract with Running Inc. for non -ambulatory paratransit service be extended for one year at a rate of $35 per ride. Respectfully Submitted, Approved: Jim Collins, Transportation Director Mark A. Rohloff, City Manager AMENDMENT TO CONTRACTOR AGREEMENT WITH RUNNING INC. — NON -AMBULATORY PARATRANSIT SERVICE This Amendment to the Agreement for Non -Ambulatory Paratransit Service is made and entered into as of the 28th day of October, 2020, by and between the City of Oshkosh, a Wisconsin municipal corporation with its principal offices at 215 Church Avenue, Oshkosh, Wisconsin 54903-1130 (hereinafter "City"), and Running, Inc. with its principal offices located at 318 West Decker Street, Viroqua, WI 54665 (hereinafter "Running"). RECITALS WHEREAS, the City and the Operator have previously entered into an Agreement dated October 13, 2015 for Non -Ambulatory Paratransit Services in the City of Oshkosh; and WHEREAS, the original term for the Agreement was for a three year period from January 1, 2016 through December 31, 2018 and provided for two one (1) year renewal periods upon the same terms and conditions; and WHEREAS, the City desires to extend the current agreement for an additional year with an equitable adjustment to the contract price to allow the City to evaluate the current services provided and develop an appropriate Request for Proposals for services moving forward; and WHEREAS, Running is agreeable to this extension as proposed; and WHEREAS, the parties agree that they each receive a business benefit through this amendment. THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency whereof is acknowledged, the parties agree to amend the Agreement for Non -Ambulatory Paratransit Services in the City of Oshkosh as follows: 1. The term of the Agreement as provided in Paragraph 3.b. of the original Agreement shall be modified to terminate on December 31, 2021. 2. Article VII. A of the original Agreement shall be amended to read as follows: A. The Contract Sum. The City shall pay to the Contractor a sum of thirty-five and no/100 dollars ($35.00) per one-way trip during the period from January 1, 2021 through December 31, 2021. 3. Article VII B. of the Original Agreement shall be deleted. All rights and responsibilities under the original Agreement between these parties not specifically amended by this amendment shall remain in effect. IN WITNESS WHEREOF, the City and Operator have executed this Agreement as of the date set forth above. Date: Date: Date: Date: RUNNING, INC. (Print name and Title) CITY OF OSHKOSH, WISCONSIN Mark A. Rohloff, City Manager Pamela R. Ubrig, City Clerk Approved as to form: Lynn A. Lorenson, City Attorney I hereby certify that the necessary provisions have been made to pay the liability which will accrue under this contract. Russ Van Gompel, Finance Director