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HomeMy WebLinkAbout10A - Purchase of a Bus with JARC Grant Funds MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: OCTOBER 19, 2009 10A JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A COOPERATIVE AGREEMENT WITH THE METROPOLITAN COUNCIL FOR THE PURCHASE OF A BUS AS PART OF THE JOBS ACCESS REVERSE COMMUTE (JARC) GRANT FUNDS Introduction The purpose of this agenda item is to receive City Council approval of a Cooperative Agreement with the Metropolitan Council for the purchase of a coach bus with Jobs Access Reverse Commute (JARC) grant funds. The purpose of this agreement is to set out the obligations of the City and the Metropolitan Council with respect to the acquisition, lease and operation of a coach bus funded by a JARC grant from the FTA and Prior Lake's local match. Historv The City of Prior Lake, in partnership with the City of Shakopee, applied for a Jobs Access Reverse Commute (JARC) grant. We were awarded $436,000 to create the BlueXpress Reverse Commute project, which will provide a transportation alternative to workers in the central cities to available jobs in suburban Shakopee and Prior Lake. The project involves the purchase of a coach bus and the operation of at least three additional reverse routes to and from downtown Minneapolis. The Metropolitan Council has an existing contract with MCI, Inc. for the manufacture and delivery of 26 coach buses. As part of their contract, the Metropolitan Council has an option to purchase additional vehicles under the same terms, conditions and specifications as the initial purchase. The Metropolitan Council has agreed to exercise one of its options and will purchase one coach bus using the FTA JARC funds and Prior Lake's local match. Since the City is the official applicant of this grant, we must enter into a cooperative agreement with the Metropolitan Council to arrange for our share of the bus purchase. The City of Shakopee will share equally in the cost of the local match; a separate agreement with the City of Shakopee will be considered on this same agenda. Current Circumstances The BlueXpress Reverse Commute project will provide a transportation alternative to workers in the central cities to available jobs in suburban Shakopee and Prior Lake. The project involves the purchase of a coach bus and the operation of at least three additional reverse routes to and from downtown Minneapolis. www.cityofpriorlake.com Fnmf)~\9:~2.447:;9c89Q, /'cf,ax 9f12A4 7t4Z4~1 , . . ~ The objectives of this project include: . Offer additional reverse routes from downtown Minneapolis during the peak morning and evening hours. . Provide flexibility in the timing of the reverse route to coincide with the shift hours of the employers. . Increase the employment pool for Scott County employers. The Unified Transit Management Plan for the Communities of Scott County, adopted in 2005 and updated in 2008, lists improved access to major Scott County employment centers among the recommended service improvements. It states, "a number of employment opportunities in Scott County draw employees from outside of the local area. Currently, the Mystic Lake Casino is providing its own bus service to and from the Minneapolis area to provide employees and prospective employees a one-seat ride to their place of employment. In addition to the casino and other entertainment venues in the County, other employers also have a need for improved employee access." The proposed reverse commute project will begin to fill this gap in transit service. ISSUES: Most suburban transit routes, including BlueXpress, focus on providing express service to residents of outlying suburbs to employment in the central cities. These routes generally are unable to provide reverse service to residents of the central cities to employment in the outlying suburbs. The BlueXpress Reverse Route will expend the existing BlueXpress Service to fill this gap. The BlueXpress is operated by Shakopee Transit and Prior Lake Laker Lines to provide non-stop commuter service from Prior Lake and Shakopee to Downtown Minneapolis. BlueXpress currently runs 8 morning and 8 evening routes. While we currently operate one morning and one evening reverse commutes, these routes are not used very often. The additional bus and operating dollars will enable BlueXpress to tailor the reverse routes to meet the needs of the reverse commuters and their employers. We have been in contact with the SMSC about tailoring the service to meet the needs of their employees. The City Attorney has been involved in the preparation of this agreement and has reviewed and approved the agreement. FINANCIAL IMPACT: The proposed BlueXpress Reverse Route project uses federal and local funds in an efficient and cost effective manner. Expansion of the current service enables BlueXpress to utilize our current contract provider for this service. Knowledge of our current routes and riders will enable the operator to determine the most effective way of providing this service. We can also utilize our existing marketing mechanisms, such as the website and newsletter, to inform riders of the service. The City of Shakopee and the City of Prior Lake will share equally in the cost of the local match for the purchase of the bus. The funds for this match have been included in the 2010 CIP, and will be taken from the Transit fund. The Finance Director has reviewed this source to ensure the funds are available. ALTERNATIVES: 1. Adopt a resolution approving a Cooperative Agreement with the Metropolitan Council for the purchase of a coach bus with JARC Grant funds. 2. Deny the proposed resolution. 3. Other action as directed by the City Council. The staff recommends alternative #1. RECOMMENDED MOTION: A motion and second to adopt a resolution approving a Cooperative Agreement with the Metropolitan Council for the purchase of a coach bus with JARC Grant funds. ReVie~dJ Frank BOYleS'fIY WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xxx Motion By: Second By: The City of Prior Lake and the Metropolitan Council have a shared interest in planning and providing efficient transit services to the residents of Scott County; and The City of Prior Lake and the Metropolitan Council have, through prior undertakings, jointly participated in completing a Unified Transit Management Plan ("UTMP") that recommends various transit capital and service improvements in Scott County; and Based on recommendations in the UTMP, the Metropolitan Council, acting in its role as the Twin Cities Metropolitan Planning Organization submitted an application to the Federal Transit Administration ("FTA") for grant funds under the FTA's Job Access Reverse and Commute grant program (JARC) pursuant to 49 U.S.C. Section 5316. The Council's application included the purchase of a coach bus that would be used by Prior Lake for public transit service; and For the purchase of the coach bus, Prior Lake has agreed to provide the local match for the JARC grant. The grant can be used to finance eighty percent (80%) of the cost to manufacturer, deliver and inspect a coach bus up to $376,000. Prior Lake agrees to pay for a minimum of twenty percent (20%) of the cost to manufacture, deliver and inspect a coach bus; and To expedite the acquisition of the bus, the Metropolitan Council will exercise an option for an additional coach bus under an existing contract with MCI, Inc. The purchase of the bus will be paid for using the proceeds of the FT A JARC grant and from funds Prior Lake has agreed to contribute for the local match; and The City of Prior Lake and the Metropolitan Council desire to enter into this Cooperative Agreement to set forth the terms and conditions pertaining to the coach bus acquisition and the lease of the bus to Prior Lake for public transit purposes; and. The Cooperative Agreement has been reviewed by the City Attorney. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are authorized to execute the Cooperative Agreement. 3. The City funding source for this purchase shall be as follows: o Transit Services Account # 603-49804-530. PASSED AND ADOPTED THIS 19TH DAY OF OCTOBER, 2009. YES NO . Haugen Erickson Hedberg leMair Millar . HaulJen Erickson Hedberg leMair . Millar Frank Boyles, City Manager www.cityofpriorlake.com ;-;.\::~_..ji.::'369;i..._..~,. Rt1'OFt3\18 19 89\JARO coor _ACr._~::y'~:,::.'.JE::-:S\':;FaAl6'.BYFRe ':~t:-:l'.Mm.U:e6ell:ltieA9li 9~ 99.1;)(': Phone 952.447.9800 / Fax 952.447.4245 COOPERATIVE AGREEMENT FOR THE ACQUISITION OF A COACH BUS WITH JOBS ACCESS REVERSE COMMUTE GRANT FUNDS THIS COOPERATIVE AGREEMENT is made and entered into by and between the Metropolitan Council, a public corporation and political subdivision under the laws of the state of Minnesota with its offices located at 390 Robert Street North, St. Paul, Minnesota 55101 (hereinafter referred to as the "Council") and the City of Prior Lake, a Minnesota municipal corporation, with its offices located at 4646 Dakota Street SE, Prior Lake, Minnesota 55372 (hereinafter referred to as "Prior Lake") (hereinafter collectively referred to as the "Parties"). RECITALS 1. The Parties have a shared interest in planning and providing efficient transit services to the residents of Scott County. The Parties have, through prior undertakings, jointly participated in completing a Unified Transit Management Plan ("UTMP") that recommends various transit capital and service improvements in Scott County. 2. Based on recommendations in the UTMP, the Council, acting in its role as the Twin Cities Metropolitan Planning Organization submitted an application to the Federal Transit Administration ("FTA") for grant funds under the FTA's Job Access Reverse and Commute grant program (JARC) pursuant to 49 U.S.C. Section 5316. The Council's application included the purchase of a coach bus that would be used by Prior Lake for public transit service. 3. The JARC grant to the Council also included operating support for the coach bus service. The operating support will be handled in a separate agreement between the Parties. 4. For the purchase of the coach bus, Prior Lake has agreed to provide the local match for the JARC grant. The grant can be used to finance eighty percent (80%) of the cost to manufacturer, deliver and inspect a coach bus up to $376,000 ("Maximum Grant Amount"). Prior Lake agrees to pay for a minimum of twenty percent (20%) of the cost to manufacture, deliver and inspect a coach bus 5. The Council will purchase the coach bus. To expedite the acquisition of the bus, the Council will exercise an option for an additional coach bus under an existing contract with MCI, Inc. The purchase of the bus will be paid for using the proceeds of the FTA JARC grant and from funds Prior Lake has agreed to contribute for the local match. 6. The Council will retain ownership of the coach bus and will lease the bus to Prior Lake under the terms of the Parties' Master Lease Agreement. 7. The Parties desire to enter into this Cooperative Agreement (hereinafter "Agreement") to set forth the terms and conditions pertaining to the coach bus acquisition and the lease of the bus to Prior Lake for public transit purposes. NOW THEREFORE, in consideration of the mutual undertakings and agreements contained herein, the Parties hereby agree as follows: COOPERATIVE AGREEMENT - BUS ACQUISITION 1. RECITALS The Recitals contained herein and set forth above are incorporated by reference as if fully written herein. 2. PURPOSE The purpose of Agreement is to set out the obligations of each of the Parties with respect to the acquisition, lease and operation of a coach bus funded by a JARC grant from the FT A and Prior Lake's local match. 3. EFFECTIVE DATE AND TERM OF COOPERATIVE AGREEMENT This Agreement shall be effective from the date of final execution by both Parties and shall remain in effect after the bus is delivered to Prior Lake but shall terminate when the bus is returned to the Council pursuant to terms of the Master Lease Agreement, unless the Agreement is terminated earlier pursuant to Section 5 of this Agreement. 4. BUS MANUFACTURE. DELIVERY AND INSPECTION A. Exercise of Option. The Council has an existing contract with MCI, Inc. for the manufacture and delivery of 26 coach buses. As part of Council Contract No. 08P114, the Council has an option to purchase additional vehicles under the same terms, conditions and specifications as the initial purchase. The Council has agreed to exercise one of its options and will purchase one coach bus using the FTA JARC funds and Prior Lake's local match. B. Lease, Use, and Reimbursement. 1. Lease. The Council will hold title to the coach bus. It will lease the coach bus to Prior Lake under to the terms of Contract No. 04M020, the Parties "Master Lease Agreement Between the Metropolitan Council and the City of Prior Lake for Regional Fleet Vehicles" ("Master Lease Agreement"), as amended. 2. Use. Prior Lake shall only use the coach bus for public transit purposes, and shall only use the coach bus within the Twin Cities Metropolitan Area as defined in Minnesota Statutes, section 473.121, subdivision 2. Prior Lake shall only use the coach bus for purposes that are consistent with the Parties' grant or operating agreement, if any. Prior Lake shall promptly notify the Council when the vehicle is no longer being used for the above-described purposes, and The Council will direct Prior Lake where and when to return the coach bus pursuant to the terms of the Master Lease Agreement between the Parties. 3. Reimbursement. In the event that the coach bus is returned to the Council within the useful life of the bus, Prior Lake shall be entitled to reimbursement from the Council for its proportionate share of the depreciated value of the vehicle. Prior Lake's proportionate share shall mean the city's initial investment to pay for the manufacture, delivery and inspection of the coach bus, i.e., the 20% local match and any amount over the Maximum Grant Amount. C. Financial Obligations of the Parties. 1. Council Obliaations. In no event will the Council's obligation under this Agreement exceed the lesser of the following: A. The Maximum Grant Amount ($376.000); or Page 2 of 5 COOPERATIVE AGREEMENT - BUS ACQUISITION B. 80% of the total cost to manufacture, deliver and inspect the coach bus. The Council shall bear no responsibility for costs that exceed the Maximum Grant amount. 2. Local Match. Prior Lake has an obligation under this Agreement to share in the cost of the coach bus, delivery and inspection cost (collectively "Coach Bus Costs.") Prior Lake will provide a minimum of twenty percent (20%) of the Coach Bus Costs from sources other than FTA funds, Le., not less than $75.200.00 against the Maximum Grant Amount. The eligibility and use of matching funds shall be governed by applicable federal law, regulations and guidance. If the final Coach Bus Costs are less than the Maximum Grant Amount, the required twenty (20) percent local match shall be reduced to twenty percent (20%) of the final Coach Bus Costs. If the final Coach Bus Costs exceed the Maximum Grant Amount, plus the twenty (20) percent local match contributed by Prior Lake, Prior Lake will be responsible for the additional costs. 3. Pavment of Local Match. The local match will be paid by Prior Lake to the Council based on the submission of an invoice. The Council will submit its invoice with copies of all receipts for expenses paid. The Council shall pay the initial cost to MCI for the manufacture and delivery of the coach bus, as well as any inspection costs. The Council will seek reimbursement from the FTA using the JARC funds. The Council will invoice Prior Lake for the local match. Prior Lake agrees to reimburse the Council within thirty (30) days of receipt of the invoice. 5. FEDERAL FUNDING Prior Lake acknowledges and agrees that the Council's payment of funds under this Agreement is contingent on the Council receiving grant funds from the FTA. If, for any reason, the FTA reduces the amount of the Council's FTA JARC Grant, or otherwise fails to pay any part of the cost or expense in this Agreement, Prior Lake agrees to pay those costs and expenses. Notwithstanding any other provisions of this Agreement, in the event the FTA rescinds funding for the FTA JARC Grant, the Council may immediately terminate this Agreement by written notice to Prior Lake, and Prior Lake shall pay to the Council, if payments are due to MCI for completed work, up to but in no event exceeding twenty (20) percent of the Maximum Grant Amount. 6. TERMINATION Except for the provisions set forth in Section 5 of this Agreement, this Agreement may not be terminated until the acquired coach bus is returned to the Council pursuant to requirements set out in Section 4.B.2 and Section 4.B.3 of this Agreement and as provided in the Parties Master Lease Agreement. Reimbursement, if any, shall be consistent with Section 4.B.3. 7. CITY AND STATE AUDIT Pursuant to Minn. Stat. Section 16C.05, Subd. 5 (1998), the books, records, documents, and accounting procedures and practices of the Parties relative to this Agreement shall be subject to examination by the City and the State Auditor. Complete and accurate records of the work performed pursuant to this agreement shall be kept by the Parties for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving Prior Lake regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of Prior Lake notifies the Parties in writing that the records need no longer be kept. Page 3 of 5 COOPERATIVE AGREEMENT - BUS ACQUISITION 8. LIABILITY Each Party shall be responsible for its own acts and the result thereof. The liability limits set out in Minnesota Statutes Chapter 466, as amended shall apply to this Agreement. This Agreement shall not act to aggregate the liability limits of the individual parties. 9. DATA PRACTICES All Parties, their agents, employees and any of their subcontractors, in providing all services hereunder, agree to abide by the provisions of the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as amended, and Minn. Rules promulgated pursuant to Ch. 13. 10. NOTICES Any notices to be given under this Agreement shall be given by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed to the each of the Parties at the following addresses: Jane Kansier Cole Hiniker Building and Transportation Services Director Planner CITY OF PRIOR LAKE METROPOLITAN COUNCIL 4646 Dakota Street SE 390 North Robert Street Prior Lake, MN 55372 St. Paul, MN 55101 11. CONTROLLING LAW The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the Parties herein.. The appropriate venue and jurisdiction for any litigation hereunder will be those courts located with the County of Scott, State of Minnesota. Litigation, however, in the federal courts involving the Parties herein will be in the appropriate federal court within the State of Minnesota. 12. SEVERABILITY. If any provision of this Agreement is held invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions will not be affected. 13. SUCCESSORS AND ASSIGNS This Agreement may not be assigned or any interest herein transferred without the prior written consent of both Parties, which consent shall not unreasonably be withheld. 14. CHANGES The Parties agree that no change or modification to this Agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this Agreement. The execution of the change shall be authorized and signed in the same manner as this Agreement. 15. SEVERABILITY In the event any provIsion of this Agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the Parties unless such invalidity or non-enforceability would cause the Agreement to fail its purpose. One or more waivers by any Page 4 of 5 COOPERATIVE AGREEMENT - BUS ACQUISITION Party of any provision, term, condition or covenant shall not be construed by any other Party as a waiver of a subsequent breach of the same by the other Party. IN WITNESS WHEREOF, the Parties hereto have set their hands on the dates written below. APPROVE AS TO FORM: CITY OF PRIOR LAKE City Attorney/Date By: Title: Jack Haugen, Mayor Date: Attest: Title: Frank Boyles, City Manager Date: METROPOITAN COUNCIL By: Office of the General Counsel Title: Date: Page 5 of 5