HomeMy WebLinkAbout5L - Purchase of a Bus with JARC Funds
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
DECEMBER 7, 2009
5L
JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES
DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR
AND CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE
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 the First
Amendment to the Cooperative Agreement with the Metropolitan Council for
the purchase of a coach bus with Jobs Access Reverse Commute (JARC)
grant funds. The Cooperative Agreement, approved on October 19, 2009,
sets 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. This amendment clarifies the
specific percentages listed in the FTA grant. It does not change the amount
the City will pay for the bus purchase and operations.
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 SlueXpress 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 has approved a separate
agreement to share equally in the cost of the local match.
www.cityofpriorlake.com
. Phon~ 952A47.980Q F~ 952A47A~245;
ISSUES:
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
Reviewed by:
Current Circumstances
The Metropolitan Council has requested approval of this amendment to the
approved Cooperative Agreement. The amendment is primarily for
administrative purposes and has no impact on the amount of grant funds that
will be received, or on the cost to the City of Prior Lake.
This amendment will clarify the percentages listed in the FTA grant. It will not
impact the cost to the City.
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.
1. Adopt a resolution approving the First Amendment to 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.
A motion and second to adopt a resolution approving the First Amendment to a
Cooperative Agreement with the Metropolitan Council for the purchase of a
~::; bus WitrARC Grant funds.
nager
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 09-xxx
A RESOLUTION APPROVING THE FIRST AMENDMENT TO A COOPERATIVE
AGREEMENT WITH THE METROPOLITAN COUNCIL FOR THE PURCHASE OF A BUS
WITH JOBS ACCESS REVERSE COMMUTE (JARC) GRANT FUNDS
Motion By:
Second By:
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, For the purchase of the coach bus, Prior Lake has agreed to provide the local match
for the JARC grant; and
WHEREAS, 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 FTA JARC grant and from funds Prior
Lake has agreed to contribute for the local match; and
WHEREAS, The City of Prior Lake and the Metropolitan Council entered into a 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 on October 19, 2009;
and.
WHEREAS, The Metropolitan Council has requested approval of the First Amendment to the
Cooperative Agreement to clarify the match percentages listed in the FTA grant; and
WHEREAS, The First Amendment to the Cooperative Agreement does not impact the cost to the
City of Prior Lake.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are authorized to execute the First Amendment to 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 7TH DAY OF DECEMBER, 2009.
YES
NO
Haugen
Erickson
Hedberg
leMair
Millar
Haugen
Erickson
Hedberg
leMair
Millar
Frank Boyles, City Manager
R\Council\2009 Agenda Reports\12 07 09\JARC COOP _AGR_AmendmenUesolutionDOC
FIRST AMENDMENT TO COOPERATIVE AGREEMENT
BETWEEN THE METROPOLITAN COUNCIL AND
THE CITY OF PRIOR LAKE
The Metropolitan Council ("Council") and the City of Prior Lake ("Prior Lake") agree that
the Cooperative Agreement for the Acquisition of a Coach Bus with Jobs Access Reverse
Commute Grant Funds shall be amended in the following particulars:
1. RECITALS, Section 4 is hereby deleted and replaced with the following:
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 75.2% 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 24.8% of the cost to manufacture, deliver and inspect a coach bus
2. Article 4, BUS MANUFACTURE, DELIVERY AND INSPECTION, Sections B (3), C (1)
(B) and C (2), are hereby deleted and replaced with the following:
B (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, Le., the 24.8 % local match and any amount over the Maximum Grant Amount.
C (1) (B) 75.2% of the total cost to manufacture, deliver and inspect the coach bus.
C (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 24.8% of the Coach Bus Costs from sources other than FT A funds,
Le., not less than $124.000.00 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 24.8% local
match shall be reduced to 24.8 % percent the final Coach Bus Costs. If the final Coach Bus
Costs exceed the Maximum Grant Amount, plus the 24.8% local match contributed by Prior
Lake, Prior Lake will be responsible for the additional costs.
3. Article 5, FEDERAL FUNDING, is hereby deleted and replaced with the following:
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 FT A 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 FT A 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 24.8% of the Maximum Grant Amount.
3. Ratification. The remaining provisions of the above-referenced agreement shall remain
in full force and effect without change except as amended above.
-1-
IN WITNESS WHEREOF, the parties have caused this amendment to be executed by
their duly authorized representatives. This amendment is effective upon final execution by both
parties.
APPROVE AS TO FORM:
CITY OF PRIOR LAKE
City Attorney/Date
By:
Title: Jack Haugen, Mayor
Date:
Attest:
Title: Frank Boyles, City Manager
Date:
Approved as to form:
METROPOLITAN COUNCIL
Office of General Counsel
By:
Regional Administrator
Date:
-2-