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Amendment to First Transit ContractTHE CTTY OF ~,,, Dubuque DLJB E Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Transit Contract Amendment DATE: September 8, 2008 As of September 30, 2008 Karen Sisler, KeyLine Transit Operations Supervisor, will retire. Karen served the City of Dubuque for over thirty-five (35) years with enthusiasm and diligence. The Operations Supervisor position is responsible for planning, supervising, and coordinating the activities of the transit operations, including operation of the communication system. First Transit has submitted a contract amendment to expand the management team to three persons in Dubuque. The current cost of this position with benefits is $81,000. The cost of filling this position through an amendment to the First Transit management contract is $69,000 per year. Economic Development Director David Heiar is recommending an amendment to the First Transit contract for Keyline Transit Management Services to include three management positions in Dubuque and eliminate the Operations Supervisor position from the City's job roster. concur with the recommendation and respectfully request Mayor and City Council approval. Mich el C. Van Milligen MCVM:Iw Attachment CC: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Manager Dave Heiar, Economic Development Director THE CITY QF ~ Dubuque -~. DUB E All-AnaricaCAy Masterpiece on the Mississippi 2007 TO: Michael Van Milligen, City Manager FROM: David Heiar, Economic Development Director SUBJECT: First Transit Contract Amendment DATE: September 5, 2008 INTRODUCTION As of September 30, 2008 Karen Sisler, KeyLine Transit Operations Supervisor, will retire. Her retirement will create a void in the staffing of the central office for KeyLine Transit. Karen served the City of Dubuque for over thirty-five (35) years with enthusiasm and diligence. Her expertise and knowledge will be missed. The Operations Supervisor position is responsible for planning, supervising, and coordinating the activities of the transit operations, including operation of the communication system DISCUSSION Transit Division Manager, Jon Rodocker, Personnel Director, Randy Peck, and I have discussed the need to refine the duties of the Transit Operations Supervisor. Jon would like to continue First Transit's goal to build a versatile and knowledgeable management team by selecting a person with the appropriate supervisory and technical skills. At present, Jon and Joanne Kiefer are the only First Transit employees on our staff. The vacancy presents an opportunity to enhance and expand our management oversight of the KeyLine system with First Transit. The City is realizing the benefits of hiring a management firm that is skilled in transit supervision and administration. First Transit has submitted a contract amendment to expand the management team to three persons in Dubuque. Attached is a letter from Dennis Jensen, the area Vice President for First Transit, explaining the contract amendment and rationale for including this position as part of the City's contract. The current cost of this position with benefits is $81,000. The cost of filling this position through an amendment to our management contract is $69,000 per year. In addition, First Transit would be able to fill this position immediately, whereas the City would need approximately two to three months to recruit, advertise, and fill the position. If the City expands the contract for services with First Transit, it is no longer necessary to retain the operations supervisor position on our roster of jobs. RECOMMENDATION I recommend that the City Council amend the First Transit contract for KeyLine Transit Management Services to include three management positions in Dubuque and eliminate the operations supervisor position from the City's job roster. ACTION STEP The action step is for the City Council to approve the attached resolutions. F:\USERS\DHeiar\Transit\Council Memos\Third Amendment to First Transit Contract 08.doc August 25, 2008 Mr. David Heiar Director of Economic Development City of Dubuque 50 W. 13~' St. Dubuque, IA. 52001 Deaz Mr. Heiaz, First Transit, Inc. 705 Central Avenue Suite 300 Cincinnati, Ohio 45202-5755 Tel 513-241-2200 Fax 513-381-0149 www.firsttransit.com First iFansit~i We aze pleased at the progress that has been made at Keyline during the past two and half yeazs and aze looking forwazd to a program of continued improvements during FY09. One item we need to discuss is the replacement of retired Keyline Operations Supervisor, Mrs. Kazen Sisler. This staff position is responsible for planning, supervising, and coordinating the activities of the transit operations, including operation of the communication system. The Operations Supervisor is directly responsible for controlling the quality of service delivery to Keyline customers, monitoring bus operator's adherence to Keyline policies, ensuring adequate personnel for successful pullouts and oversight of all on street operations, and will require an individual skilled in these programs. Because the individual employed as the Operators Supervisor will be critical to the success of management programs, Jon and I have discussed the need to refine the duties of this position. This is in support of our effort to build a management team with greater versatility and improved supervisory and technical skills. We believe that the announced retirement presents the opportunity for the City to broaden the direct management oversight of the Keyline system through the selection of an individual skilled in transit supervision and administration. First Transit has identified such an individual and is proposing an amendment to the management contract that would expand the personnel provided under the contract terms to three (3) persons, a General Manager, Office Administrator and a Operations Supervisor. We are proposing that the annual management fee be increased by $69,000 per year to accommodate this change. The projected FY09 budget for Keyline Transit has established a salary of $63,273 for the Operations Supervisor position. With fringes of $19,230 (SS, IPERS, Health and Life) the total compensation would be $81,010. We do recognize that a new hire through the City employment process would initially be paid at a lower rate than the incumbent, thus we have established the proposed fee at $69,000 to reflect this savings. The Operations Supervisor would become a full time employee of First Transit, Inc. with all salary, and fringe benefits the responsibility of First Transit. A FirstGroup America ~j Company Upon City approval of the proposed contract amendment, First Transit would submit the resume of the candidate we have identified for this position for your review and final approval. Employment would begin immediately after successful completion of the required D & A testing. At this time I must also emphasize that this request should not in any way be considered as a criticism of the past or future Keyline supervisory staff, but is offered as a proposal that will address the continuous responsibility for the direct management of Keyline Transit by our company as well as our efforts to effect ongoing savings to the City for the operation and administration of the system. Please be assured that whatever decision is made by the City on this request that First Transit will continue to work closely with the City of Dubuque and Keyline staff to ensure that all management issues and objectives are properly addressed and met. ' cerely, e en is President Enc. Job Description -Keyline Operations Supervisor f OPERATIONS SUPERVISOR SUMMARY OF DUTIES Under administrative direction of the Transit Manager, plans, directs, and coordinates the operational activities of KeylineTransit. EXAMPLES OF WORK PERFORMED (The following is not intended to be a complete list of all duties performed.) All duties listed are essential unless noted otherwise. Plans, supervises, and coordinates the activities of the Transit Operations, including operation of the communication system. Responsible for controlling the quality of service delivery to Keyline customers, monitoring Bus Operators adherence to Keyline policies, ensuring adequate personnel for successful pullouts and oversight of all on street operations. Ensures customer satisfaction with service provided Assists or dispatches relief to bus operators in event of breakdowns, route delays, road closures, and hazards Safety on site and on road. Ensures compliance with safety regulations. Investigates collision and passenger accidents, customer service reports, security reports and vandalism reports. Follows established investigation techniques and files reports. Represent Keyline, City of Dubuque, in the most professional manner possible Reviews and analyzes operating effects and makes recommendations for improvement, modification, or elimination of routes To interact with the general public and answer all inquiries Will perform duties on the street as well as in an office environment Develops standards for operational studies and testing of service changes Works with the City of Dubuque's Personnel Department in matters of, but not limited to; Hiring and disciplinary measures of department personnel when required. Reviews, recommends, implements and enforces operational policies and procedures Plans and supervises the driver training courses and various driver safety programs Reviews and makes recommendations for work rule changes Advises Transit Manager regarding employee relations matters, maintains personnel records, work records and accident records 1 Prepares written reports for staff, management, Assists with department budget information Performs other related duties as assigned PREFERRED KNOWLEDGE SKILLS AND ABILITIES Graduation from an accredited college or university with major course work in public administration, business, transportation, or a related field and two years of experience in mass transit operations or Three years of progressively responsible experience in mass transit operations or any equivalent combination of education and experience which provides the following knowledge, skills, and abilities: Knowledge of the principles and practices of management and supervision. Knowledge of Microsoft based programs for i.e.; Word, Excel, Outlook Knowledge of transit operations, including transit planning, schedule writing, and promotional methods. Knowledge of occupational safety standards and procedures. Knowledge of affirmative action and EEO procedures. Ability to plan, organize, and direct transit activities and to train transit personnel. Ability to analyze data and write clear, concise reports. Ability to follow safety rules and precautions. Ability to establish and maintain effective working relationships with supervisors, subordinates, and the public. Demonstrate personal energy and enthusiasm Committed to a Safety Lifestyle SPECIAL REQUIREMENTS OF WORK Must be able to drive bus, have a valid CDL driver's license or the ability to obtain one upon employment. PHYSCIAL REQUIREMENTS: Must have manual dexterity to operate computer and other office equipment. Must be able to pick up and carry 35Lbs, sit and stand for an extended period of time, utilize tools, reach, stoop, crawl, lay on the floor, push equipment and turn knobs and screws. RESOLUTION NO. 319-08 A RESOLUTION APPROVING THE THIRD AMENDMENT TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC. Whereas, the City of Dubuque has identified the need for a transit management company; and Whereas, the City of Dubuque (City) and First Transit, Inc. (First Transit) entered into a Management Agreement on April 3, 2006; and Whereas, a current staffing vacancy for an Operations Supervisor exists at Keyline Transit; and Whereas, City and First Transit now desire to amend the Management Agreement to provide for the position of Operations Supervisor as set forth in the attached Third Amendment. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. That the Third Agreement to the Management Agreement between the City of Dubuque, Iowa and First Transit, Inc. be approved. Passed, approved and adopted this 15th day of September, 2008. Kevin J. Lynch, Mayor Pro-Tem Attest: Jeanne F. Schneider, CMC, City Clerk THIRD AMENDMENT TO MANAGEMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC. This Third Amendment to Management Agreement between the City of Dubuque, Iowa and First Transit, Inc. is dated for reference purposes the day of September, 2008. Whereas, the City of Dubuque, Iowa (City) and First Transit, Inc. (First Transit) have entered into a Management Agreement (the Agreement); and Whereas, City and First Transit have amended the Agreement with the First and Second Amendments; and Whereas, City and First Transit now desire to further amend the Agreement as set forth herein. Now, therefore it is agreed by and between the parties as follows: Paragraph 6 of the Agreement is amended to read as follows: 6. FIRST TRANSIT PERSONNEL FIRST TRANSIT shall furnish a General Manager who shall be selected with the approval of the City, which approval shall not be unreasonably withheld, and who shall serve at the expense of FIRST TRANSIT and shall provide the active management of the Transit System for and on behalf of the City. The General Manager shall reside in Dubuque, Iowa. Management of the Transit System shall be the full time job of the General Manager. FIRST TRANSIT shall also furnish an Office Administrator who shall serve at the expense of FIRST TRANSIT and shall provide grant assistance for and on behalf of the City. The Office Administrator shall reside in Dubuque, Iowa. Managing of the grant program shall be the full time job of the Office Administrator. FIRST TRANSIT shall also furnish an Operations Supervisor who shall serve at the expense of FIRST TRANSIT. The Operations Supervisor shall reside in Dubuque, Iowa. Managing of planning, supervising, and coordinating the activities of the transit operations, including operation of the communication system shall be the full time job of the Operations Supervisor. The commencement date for the Operations Supervisor is on or about October 1, 2008. The position of Operations Supervisor includes a fee of $69,000 included in the fees outlined in Section 8 of this Agreement as amended herein. 1 F:\USERS\DHeiar\Transit\Council Memos\Third amendment to FT contract.doc FIRST TRANSIT may also furnish, upon mutual agreement of the parties, additional resident management personnel. City agrees, for a period of one (1) year following the expiration or other termination of this Agreement, not to solicit or hire as an employee, nor to engage in any capacity whatsoever, any FIRST TRANSIT employees. The phrase "engage in any capacity whatsoever" includes, but is not limited to, the hiring of any other transit management company that proposes to use, or does use, FIRST TRANSIT employees. 2. Paragraph 8 of the Agreement is amended to read as follows; 8. COMPENSATION FIRST TRANSIT's fee for the services to be rendered pursuant to this Agreement shall be as follows: Period Fee October 1, 2008-June 30, 2009 $19,003.67 per month July 1, 2009-June 30, 2010 $19,668.67 per month July 1, 2010-June 30, 2011 $20,258.73 per month Payment shall be made by City to FIRST TRANSIT on or before the 15th day of each month for that month's management fee. In the event this Agreement becomes effective or terminates during a calendar month, the fee due FIRST TRANSIT will be prorated on a daily basis. City shall pay interest at the rate of 1.0% per annum on any balance outstanding beyond the fifteen (15) day period. 3. Except as expressly modified, amended or supplemented herein, the Management Agreement, as previously amended, is hereby reaffirmed and ratified by the City and First Transit in its entirety. CITY OF DUBUQUE, IOWA FIRST TRANSIT, INC. By Roy D. Buol, Mayor Attest: By: Rick Dunning, Sr. Vice President Witness: Jeanne F. Schneider, City Clerk 2 F:\USERS\DHeiaz\Transit\Council Memos\Third amendment to FT contract.doc RESOLUTION NO. 320-08 ABOLISHING THE OPERATIONS SUPERVISOR POSITION Whereas, Karen Sisler the KeyLine Operations Supervisor retired on September 30, 2008; and Whereas, the City Council has approved a contract amendment with First Transit to perform the job responsibilities of the Operations Supervisor; and Whereas, the City Council has determined it is in the public interest to abolish the Operations Supervisor position. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the position of Operations Supervisor is hereby abolished. Passed, approved and adopted this 15th day of September, 2008. Kevin J. Lynch, Mayor Pro-Tem Attest: Jeanne F. Schneider, CMC, City Clerk