Project Concern Minibus Purch SMEMORANDUM
October 10, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
FY 2001 Project Concern Minibus Purchase of Service
Acting Economic Development Director Pam Myhre is recommending an amendment to
the Project Concern Purchase of Service Agreement to provide an additional $8,803 in
funding towards the contract expense ending June 30, 2001.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pamela Myhre, Acting Economic Development Director
Keyline Transit
2401 Centxal Avenue
Dubuque, Iowa 52001-3302
Phone: (319) 5894196
Fax: (319) 5894340
September 28, 2001
TO:
FR:
Subject:
Michael C. Van Milligen, City Manager.
Pamela Myhre, Acting Economic Development Director
FY 2001 Project Concern minibus purchase of service
Purpose
The purpose of this memo is to update you on the status of the FY 2001 minibus
purchase of service cost overrun with Project Concern and to make
recommendation to provide an additional $8,803 in funding towards the contract
expense ending June 30, 2001.
Background
Throughout FY 2001, Project Concern has experienced difficulties providing the
ADA paratransit service within the $195,000 budget requested by the agency and
approved by the City Council. Project Concern initially requested additional
$36,000 in funding in May of this year. On June 18, 2001 the City Council
approved staff recommendation for an additional $18,000 funding with the
understanding staff would review the contract balance for further consideration at
the end of the fiscal year.
As of June 30, 2001 there was a balance of $8,409 in funds left on the FY 01
minibus Purchase of Service Agreement. On July 31, 2001 KeyLine received a
final bill from Project Concern in the amount of $23,731 resulting in a deficit of
$15,322. Part of this deficit included an arbitrated $3400 employee health
expense charged to the minibus that staff did not recommend paying last June.
In addition to the disputed health benefit expense, staff cannot find any
justification in the initial or the second funding request for an additional $3,119
expense that appears in the final June billing.
In lieu of the above, the following calculations identify a final budget shortfall in
the FY 01 minibus Purchase of Service Agreement totaling $8,803.
Service People Integrity Responsibility Innovation Teamwork
FY 2001 budget requested by Project Concern
Additional Driver Wages
Health Insurance Premium Increase
Fuel Cost Increases
Vehicle Repair Increases
All Other Cost Increases
Sub total expenses
FY 2001 contract limit approved by City Council
FTE health benefit disallowed
June increase approved by City Council
Sub total credits
Balance funding request for FY 2001
195,000
4,O55
11,105
6,868
2,594
5,581
225,203
$195,000
$ 3,400
$ 18,000
$ 216,400
$ 8,803
Recommendation
I recommend that Project Concern be paid an additional $8,803 for FY 2001
paratransit services. If approved, payment for this expense would need to come
from the Transit fund.
Prepared by:
Mark Munson, Transit Division Manager