HomeMy WebLinkAbout10B - Reimbursement from City of Shakopee for Bus Services (JARC Grant)
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
p
OCTOBER 19, 2009
10B
JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES
DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR
AND CITY MANAGER TO ENTER INTO A MEMORANDUM OF
UNDERSTANDING WITH THE CITY OF SHAKOPEE FOR
REIMBURSEMENT FOR BUS SERVICES AS PART OF THE JOBS ACCESS
REVERSE COMMUTE (JARC) GRANT
Introduction
The purpose of this agenda item is to receive City Council approval of a
Memorandum of Understanding (MOU) with the City of Shakopee providing for
the reimbursement of Shakopee's share of the local match requirement for a
Jobs Access Reverse Commute (JARC) grant to purchase and operate a
coach bus. The purpose of this MOU is to set out the obligations of each of the
Parties to the MOU regarding the acquisition of the coach bus and the
operation of reverse commute routes.
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
transportation alternatives that allow workers in the central cities to access
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 grant requires a local match of 20% of the purchase price of the bus and
50% of the operating costs for the reverse commute project. As part of the
application, the City of Prior Lake and the City of Shakopee agreed to share
equally in the local match requirement.
Since the City is the official applicant of this grant, we are being required by
the Metropolitan Council to enter into a Memorandum of Understanding with
the City of Shakopee that addresses Shakopee's obligation to reimburse Prior
Lake for its share of the local match.
Current Circumstances
The BlueXpress Reverse Commute project will provide a transportation
alternative for workers who live in the central cities to access 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
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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 in 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 the Memorandum of
Understanding and has reviewed and approved the MOU.
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 estimated share of the parties for the purchase of the coach bus are as
follows:
Metropolitan Council
City of Prior Lake:
City of Shako pee
80% of the cost of the bus up to $376,000
50% of any costs above $376,000
50% of any costs above $376,000
I~
The estimated cost of the bus is $500,000, so we anticipate each City will be
responsible for $62,000.
The anticipated operating cost of the reverse commute is $120,000. The
Parties shall contribute the following amounts for the operation of the reverse
commute:
Metropolitan Council
City of Prior Lake:
City of Shako pee
$60,000
50% of any costs above $60,000
50% of any costs above $60,000
The City of Prior Lake and the City of Shakopee expect to be responsible for
$30,000 for the operation of the reverse service.
The funds for the purchase of the bus have been included in the 2010 CIP,
and will be taken from the Transit fund. The operating costs will also 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 Memorandum of Understanding with the
City of Shakopee for the purchase of a coach bus and operation of a
reverse commute service 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 Memorandum of
Understanding with the City of Shakopee for the purchase of a coach bus and
operation of a reverse commute service with JARC Grant funds.
Revird bY~ I
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Frank BOOY ~ lanager
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RESOLUTION 09-xxx
A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF
PRIOR LAKE AND THE CITY OF SHAKOPEE FOR THE PURCHASE AND OPERATION OF A
COMMUTER BUS WITH JOBS ACCESS REVERSE COMMUTE (JARC) GRANT FUNDS
Motion By:
Second By:
WHEREAS, The Parties have a shared interest in planning and providing efficient transit services to
the residents of Scott County, and
WHEREAS, The Parties have, through prior undertakings, jointly participated in completing a
Unified Transit Management Plan ("UTMP") that recommends various County-wide
transit capital and service improvements; and
WHEREAS, Each of the Parties has adopted the recommendations of the UTMP in part, in whole,
or with conditions; and
WHEREAS, The Parties, through their participation in the Scott County Transit Review Board and
Transit Planning Team, have developed a regional park-and-ride facility (Southbridge
Crossings), operated the BlueXpress bus service and have begun to plan for a second
park-and-ride facility (Eagle Creek Transit Station); and
WHEREAS, The City of Prior Lake, on behalf of Prior Lake and Shakopee, applied to the
Metropolitan Council for a Jobs Access Reverse Commute ("JARC") grant to fund the
purchase of a coach bus and funding to operate at least 3 additional reverse commutes
from downtown Minneapolis; and
WHEREAS, Prior Lake and Shakopee have agreed to share the cost of the matching funds for this
grant on an equal basis; and
WHEREAS, The Metropolitan Council has approved Prior Lake's JARC grant application and
awarded a grant in the amount of $376,000 to purchase a commuter bus and $60,000
to operate three reverse commute trips from Minneapolis to Prior Lake and Shakopee:
and
WHEREAS, Prior Lake and Shakopee are responsible for any costs over and above the grant
funds; and
WHEREAS, The Parties desire to enter into this Memorandum of Understanding to set out the
terms, conditions and allocation for the acquisition of a coach bus and the reverse
commute operating costs.
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 Memorandum of Understanding.
3. The City funding sources to purchase the commuter bus and operate the additional reverse
commute trips shall be as follows: www.cityofpriorlake.com
Cj.,.Ppp.Ql;l,S/QAA47.9800 / Fax 952.447.4245
o Transit Services Account # 603-49804-530 (bus purchase)
o Transit Services Account #603-49804-425 (operation).
PASSED AND ADOPTED THIS 19TH DAY OF OCTOBER, 2009.
YES
I Haugen
I Erickson
I Hedberg
I LeMair
I Millar
Haugen
Erickson
Hedberg
LeMair
Millar
Frank Boyles, City Manager
R:\Council\2009 Agenda Reports\10 19 09\MOU_resolution.DOC
NO
MEMORANDUM OF UNDERSTANDING
FOR THE ACQUISITION OF A COACH BUS AND OPERATING FUNDS
WITH JOBS ACCESS REVERSE COMMUTE GRANT FUNDS
THIS MEMORANDUM OF UNDERSTANDING is made and entered into by and
between the City of Shakopee, a Minnesota municipal corporation, 129 Holmes Street
Shakopee, MN 55379 (hereinafter referred to as "Shakopee"), and the City of Prior Lake, a
Minnesota municipal corporation, 16776 Fish Point Road SE, Prior Lake, MN 55372
(hereinafter referred to as "Prior Lake") (hereinafter collectively referred to as the "Parties").
RECITALS
WHEREAS, the Parties have a shared interest in planning and providing efficient transit
services to the residents of Scott County, and
WHEREAS, the Parties have, through prior undertakings, jointly participated in
completing a Unified Transit Management Plan ("UTMP") that recommends various County-
wide transit capital and service improvements; and
WHEREAS, each of the Parties has adopted the recommendations of the UTMP in part,
in whole, or with conditions; and
WHEREAS, the Parties, through their participation in the Scott County Transit Review
Board and Transit Planning Team, have developed a regional park-and-ride facility (Southbridge
Crossings), operated the BlueXpress bus service and have begun to plan for a second park-
and-ride facility (Eagle Creek Transit Station); and
WHEREAS, the City of Prior Lake, on behalf of Prior Lake and Shakopee, submitted a
Jobs Access Reverse Commute ("JARC") grant application to the Metropolitan Council for
funding to purchase of a coach bus and for funding to operate at least 3 additional reverse
commutes from downtown Minneapolis; and
WHEREAS, Prior Lake and Shakopee have agreed to share the cost of the matching
funds for this grant on an equal basis; and
WHEREAS, the Metropolitan Council has approved Prior Lake's JARC grant application;
and
WHEREAS, the grant awarded is in the amount of $376,000 for the bus acquisition and
$60,000 for operating costs; and
WHEREAS, Prior Lake and Shakopee are responsible for any costs over and above the
grant funds; and
WHEREAS, the Parties desire to enter into this Memorandum of Understanding to set
out the terms, conditions and allocation for the acquisition of a coach bus and operating costs.
NOW THEREFORE, in consideration of the mutual undertakings and agreements
contained herein, the Parties hereby agree as follows:
MEMORANDUM OF UNDERSTANDING - JARC GRANT BUS ACQUISITION AND OPERATING COSTS
1. RECITALS. The recitals contained herein and set forth above are incorporated
by reference as if fully written herein.
2. PURPOSE. The purpose of this Memorandum of Understanding is to set out the
obligations of each of the Parties to this Agreement with respect to the acquisition of a
coach bus and the operation of the reverse commute routes.
3. TERM OF AGREEMENT. This Agreement shall be effective from the date of final
execution by all parties and shall remain effect through the term of ownership of
the coach bus and operation of the service, unless terminated earlier by the
Parties as provided herein.
4. ACQUISITION OF BUS.
1. The Metropolitan Council, in conjunction with Metro Transit Services, has entered
into a contract for the purchase of several coach buses. The Council has agreed
to allocate one of these buses to Prior Lake and Shakopee for the JARC Grant.
2. Title and Payment.
a. Title: The Metropolitan Council will hold title to the bus and will lease it to
Prior Lake subject to the terms of the "Master Lease Agreement Between
the Metropolitan Council and the City of Prior Lake for Regional Fleet
Vehicles", as amended.
b. In the event it determined the bus is no longer needed for transit
purposes by the City within the useful life of the bus, it shall be returned to
the Metropolitan Council, provided that the Metropolitan Council
reimburses the City proportionate to its initial investment.
c. Pavment: The Metropolitan Council shall pay the initial cost to purchase
the bus and shall bill the City of Prior Lake for the local share. The City of
Prior Lake agrees to reimburse the Metropolitan Council within 30 days of
receipt of an invoice for the coach bus.
d. Pavment from the Citv of Shakooee: Upon receipt of an invoice from the
Metropolitan Council for the coach bus, the City of Prior Lake will bill the
City of Shakopee for 50% of the local share. The City of Shakopee
agrees to reimburse Prior Lake within 30 days of receipt of an invoice.
3. Financial Obligations of the Parties for Acquisition of the Coach Bus: The
Parties shall contribute the following amounts for the acquisition of the coach
bus:
Metropolitan Council
City of Prior Lake:
City of Shakopee
80% of the cost of the bus up to $376,000
50% of any costs above $376,000
50% of any costs above $376,000
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MEMORANDUM OF UNDERSTANDING - JARC GRANT BUS ACQUISITION AND OPERATING COSTS
5. OPERATING COSTS
1. Prior Lake and Shakopee agree to equally share the operating costs of the
reverse commute service over and above the JARC grant awarded by the
Metropolitan Council.
2. Financial Obligations of the Parties for Acquisition Bus: The Parties shall
contribute the following amounts for the operation of the reverse commute:
Metropolitan Council $60,000
City of Prior Lake: 50% of any costs above $60,000
City of Shakopee 50% of any costs above $60,000
6. 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 Cities 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 the Cities 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 the
City notifies the Parties in writing that the records need no longer be kept.
7. INDEMNITY
Each Party shall indemnify, defend, and save the other Parties harmless from any and
all claims, damages, lawsuits, losses, liabilities, costs, and expenses, arising out of any
negligent act or omission on the part of any Party or its contractors, agents, servants, or
employees in the performance of any of the work or services to be performed under the
terms of this Agreement. Each Party's obligation to indemnify the other under this
clause shall be limited in accordance with the statutory tort limitations provided in Minn.
Stat. ~ 466.04 to limit each Party's total liability for all claims arising from a single
occurrence, including the other Party's claim for indemnification, to the limits provided in
section 466.04.
8. LIABILITY
The liability limits set out in Minnesota Statute Chapter 466 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.
Page 3 of 5
MEMORANDUM OF UNDERSTANDING - JARC GRANT BUS ACQUISITION AND OPERATING COSTS
10. TERMINATION
This Agreement may not be terminated unless disposition of any property acquired has
occurred in connection with the terms of this agreement. Upon Termination of this
Agreement, any unused funds shall be returned to the contributing Parties in the same
proportion that initial contributions were made. Disbursement of funds resulting from the
sale or disposition of the property contemplated herein shall comply with the terms and
conditions set forth in section 40 herein.
11. 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 Michael Leek
CITY OF PRIOR LAKE CITY OF SHAKOPEE
4646 Dakota Street SE 129 Holmes Street
Prior Lake, MN 55372 Shakopee, MN 55379
12. 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 and performance under it. 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. If any
provision of this Agreement is held invalid, illegal or unenforceable, the remaining
provisions will not be affected.
13. SUCCESSORS AND ASSIGNS
The Parties, respectively, bind themselves, their partners, successors, assigns, and
legal representatives to the other party to this Agreement and to the partners,
successors, assigns, and legal representatives of such other party with respect to all
covenants of this Agreement. No Party shall assign, sublet, or transfer any interest in
this agreement.
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
Page 4 of 5
MEMORANDUM OF UNDERSTANDING - JARC GRANT BUS ACQUISITION AND OPERATING COSTS
by any 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.
18. EFFECTIVE DATE
This Agreement shall be in full force and effect when Parties sign this Agreement. This
Agreement may be signed in counterparts, each as effective as the original.
IN WITNESS WHEREOF, the Parties hereto have set their hands on the dates written below.
APPROVE AS TO FORM:
CITY OF SHAKOPEE
City Attorney/Date
By:
Title: John Schmitt, Mayor
Date:
Attest:
Title: Mark McNeill, City Administrator
Date:
CITY OF PRIOR LAKE
City AttorneylDate
By:
Title: Jack Haugen, Mayor
Date:
Attest:
Title: Frank Boyles, City Manager
Date:
Page 5 of 5