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HomeMy WebLinkAbout5K - Coach Crafters Payment MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT August 21,2006 5K Kelly Meyer, Asst. to the City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING FINAL PAYMENT TO COACH CRAFTERS FOR THIRD LAKER LINES BUS. Introduction On April 1, 2006, Laker Lines implemented its most recent service changes. We relocated the park & ride from its Colorado Street location in downtown Prior Lake to Shepherd of the Lake Church. We also added a third bus which allowed us to increase the trips per day from 4 to 6. The Met Council provides funding for capital acquisitions like buses. The buses are owned by the Met Council and leased back to the transit providers at no cost. The typical process is to make a request and once the request is approved by the Met Council and allocated funding, the procurement process proceeds. Prior Lake completed this process and is on schedule to get a new 44 passenger coach in the Fall of 2006. Because staff wanted to add the additional morning and evening routes sooner than the fall of 2006 (Le. coordinated with the change in park & ride location), the Met Council purchased and refurbished a used bus through Coach Crafters with the intent of using the bus to add the additional routes until the new coach bus was delivered. The used bus would then be used only as a spare in instances where one of the other buses needed repair. Current Circumstances The total cost to the Metropolitan Council for this vehicle was $58,620.42. The Met Council was to have paid the entire amount. Their process for payment has taken a very long time. The bus has been in service to Prior Lake since April. In June 2006, when Coach Crafters had not received payment, the City Council authorized a $20,000 partial payment to Coach Crafters, with the intent that the balance remaining ($38,620.42) would be paid when the City received the Met Council funding. It is now mid-August and the Met Council has not issued any funding for this vehicle. We are therefore, asking the City Council to authorize payment of the remaining $38,620.42 to Coach Crafters. The City will be reimbursed both payments by the Metropolitan Council. Conclusion Even though the City has not received the funding from the Met Council, we have entered into the contract for reimbursement and the Met Council assures that the payment has been processed. The City should receive it by August 30th. Therefore, it seems appropriate to authorize payment of the remaining www.cityofpriorlake.com Phone952:447.4230/ Fax 952.447.4245 balance due to Coach Crafters. ISSUES: There are no significant issues. This action is housekeeping in nature and provides final payment for equipment we have had in service for four months. The resolution includes a provision that the staff is to report to the City Council if the Metropolitan Council fails to make reimbursement to the City within the next 30 days. FINANCIAL IMPACT: The funds for this payment would be drawn from the Transit Fund balance. Likewise, the allocation from the Met Council will reimburse the Transit Fund. ALTERNATIVES: 1. Adopt Resolution 06-XX as part of the Consent Agenda authorizing final payment on behalf of the Metropolitan Council to Coach Crafters in the amount of $38,620.42 for the third Laker Lines bus. 2. Remove this item from the Consent Agenda for additional discussion. RECOMMENDED MOTION: Alternative 1. 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx A RESOLUTION AUTHORIZING FINAL PAYMENT TO COACH CRAFTERS FOR THIRD LAKER LINES BUS. Motion By: Second By: WHEREAS, the City of Prior Lake seeks as part of its 2030 Vision and Strategic Plan to continue to improve transit services and options for Prior Lake residents; and WHEREAS, in order to accelerate implementation of a third morning and evening route for Laker Lines express commuters, the Metropolitan Council purchased and refurbished a used bus for City use through Coach Crafters; and WHEREAS, the Metropolitan Council authorized the purchase and agreed to fund the full cost of the capital acquisition; and WHEREAS, the City Council approved a partial payment on behalf of the Metropolitan Council on June 5,2006 in the amount of $20,000; and WHEREAS, the Metropolitan Council has failed to pay the remaining balance of $38,620.40 despite the passage of an additional 60 days; and WHEREAS, the City and Metropolitan Council have now entered into a contract for the lease and cost reimbursement of this vehicle; and WHEREAS, the City Council deems it appropriate to issue the final payment for this equipment since the City has had use of the equipment for four months. 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 City Council authorizes expenditure of funds in the amount of $38,620.42 from the transit fund balance to Coach Crafters. 3. Reimbursement funds from the Metropolitan Council shall be deposited to the transit fund. 4. Staff is hereby directed to report to the Council if reimbursement is not received from the Metropolitan Council within the next 30 days. PASSED AND ADOPTED THIS 21ST DAY OF AUGUST, 2006. YES NO I Haugen I Dornbush I Erickson I LeMair , Millar Haugen Dornbush Erickson LeMair Millar Frank Boyles, City Manager .. .~~priorlake.com Phone 952.447.4230 / Fax 952.447.4245 Kelly Meyer From: Sent: To: Subject: Cole Hiniker [cole.hiniker@metc.state.mn.us] Friday, August 11, 2006 2:30 PM Kelly Meyer RE: Prior Lake Bus Payment Kelly, I'm assisting Carol in delivering payments and handling contracts so you may be hearing from me in the future. Hopefully we can meet in person at somepoint. I have researched your payment request on the bus and it is in finance but they are going through a process right now that takes some time. I have told them this payment is a priority and it should be processed sometime next week, hopefully early next week. Please contact me with any questions. Thanks, Cole Hiniker, Planning Technician Metropolitan Transportation Services 390 North Robert Street Saint Paul, MN 55101 Phone: (651)602-1748 Fax: (651)602-1739 .