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DuRide Contract for FY 2010THE CITY OF DUB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: DuRide Contract for FY2010 DATE: July 28, 2009 Dubuque All•AmedcaC 2007 In September 2008, the City Council approved cone-year contract with DuRide to provide an alternative transportation option for senior citizens. The City's commitment to the DuRide organizers was to provide seed money for a three or four year period, until this organization could become financially self sufficient. Economic Development Director Dave Heiar recommends City Council approval of an Agreement with DuRide effective September 1, 2009 through June 30, 2010. I concur with the recommendation and respectfully request Mayor and City Council approval. ichael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director THE CITY OF DUB ~ Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David Heiar, Economic Development Director SUBJECT: DuRide Contract for FY2010 DATE: July 28, 2009 ~- Dubuque A~-AmeriCaClt1- '~~~ 2007 INTRODUCTION This memorandum requests City Council consideration of a 2"d contract with DuRide. BACKGROUND/DISCUSSION In September 2008, the City Council approved a one year contract with DuRide to provide an alternative transportation option for senior citizens. This innovative transportation service is designed to replicate the comfort, convenience and feelings of private automobile ownership. DuRide's transportation service is available 24 hours per day, seven days per week, uses cars only, and gives customers the option to ride alone or with others. There are no restrictions on ride purpose or limitations on frequency of use. All decisions about use of the service reside with the customer. Seniors who use the service become dues-paying members. The City's commitment to the DuRide organizers, was to provide seed money for a three or four year period, until this organization could become financially self sufficient. The first year has shown slow steady growth. As of June 30, 2009, DuRide has 65 members and 60 volunteers who provide rides. In June, a monthly total of 215 rides were provided to these senior members. In the beginning, Sue Balsamo the foundress of this local service provided many hours to initiate this transportation service. In May, Jack Hartwig was hired as the part-time Executive Director of DuRide. Mr. Hartwig has already submitted several grant applications to secure private funding sources to match the public monies that have been committed by the City. He also continues to meet with local organizations to promote the service and seek additional volunteers. The 2009-10 budget includes continued City funding for DuRide. Attached is a contract for services which is very similar to the current contract, except that payments would be made monthly rather than quarterly. RECOMMENDATION I recommend that the attached Agreement be forwarded to the City Council for their consideration and approval. Attachment cc: Jon Rodocker, Transit Manager Jack Hartwig, Executive Director AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DURIDE This Agreement, dated for reference purposes the 3rd day of August, 2009, is made and entered into by and between the City of Dubuque, Iowa (City) and DuRide (DuRide). WHEREAS, City has funding for transportation for senior citizens; and WHEREAS, DuRide provides transportation for senior citizens; and WHEREAS, the City Council of the City of Dubuque deems it in the best interests of the City to provide funding to DuRide for transportation for senior citizens. NOW THEREFORE, in consideration of the mutual conditions and covenants contained in this Agreement, City and DuRide agree as follows: SECTION 1. TERM. The term of this Agreement shall be from September 1, 2009 through June 30, 2010. SECTION 2. SCOPE OF SERVICES. City agrees to provide funding in an amount not to exceed $46,000.00 to DuRide for transportation services for senior citizens. DuRide agrees to use such funding to provide transportation services for senior citizens. SECTION 3. COMPENSATION. The City agrees to pay DuRide a monthly fee for the services of $4,600.00 upon receipt of a monthly report in a form acceptable to the City. SECTION 4. TERMINATION. City shall have the right to terminate this Agreement with or without cause upon thirty (30) days written notice to DuRide. Upon termination of this Agreement, DuRide shall refund any prorated amount of the compensation for the unexpired term of this Agreement. Failure by DuRide to provide adequate services as determined by City in the sole discretion of its City Manager shall be grounds for termination of this Agreement. SECTION 5. REPORTS. DuRide shall provide City with the following monthly re~orts in a form acceptable to City beginning on the 1St day of September and on the 1S day of each month thereafter: (1) Financial report which shall include all revenue and expenses for the previous month. {2) Service report which shall include for the previous month the number of rides provided, the miles of transportation service provided, the number of members, and the number and hours of volunteers providing service. (3) Report detailing private fundraising activities. DuRide shall provide such further information as City may from time to time require. SECTI®N 6. INSURANCE. DuRide shall at all times during the term of this Agreement maintain insurance as provided in the attached Insurance Schedule. S~CTI~N 7. 1NDEMNIFICATI~N. DuRide shall defend, indemnify and save harmless City, its officers, agents and employees, from and against any and all claims, losses, judgments, costs and expenses of any kind arising out of or related to the negligence of DuRide, its officers, agents, and employees in the performance of this Agreement. SECTI®N ±~. C~MPLIANC~ WITIi LAW. DuRide shall at its expense comply with all applicable federal, state and local laws, ordinances and regulations, including but not limited to, any applicable laws and regulations pursuant to the Americans with Disabilities Act (ADA). SECTION 9. E~CKS AN® RECgR®S. During the term of this Agreement, DuRide shall keep at all times and make available to City upon reasonable request proper books of record and account in which full, true and correct entries will be made of all dealings and transactions of or in relation to the business and affairs of DuRide in accordance with generally accepted accounting principles consistently applied throughout the period involved. SECTI®N 90. FUELICI~ING SERVICE. City agrees to cooperate with DuRide in publicizing the availability of the service. SECTI®N 1`i. ASSIGNMENT. DuRide shall not assign this Agreement in whole or in part without the prior written approval of City. CITY ®F DUDUCI!UE, IOWA By ` _ Michael C. Van Milligen City Manager DURI®E 2 ^ u ._ ~~.~ ,;~ ,71..I: r~}~':i:''y% i~:ilj - SUlitc: rf,%Slj C)ut~u~_~, ,,. l~'~~w8 5'~)C.71 July 22, 2009 David J. Heiar Economic Development Director City of Dubuque Economic Development Department 50 West 13th Street Dubuque, Iowa 52001-4864 Dear Dave, ,nt;~~~ a~ i;~rl~"f~dC~~"~.COir, Your invitation to entertain solutions for DuRide's looming cash flow shortage is truly appreciated. I fear, without your intervention, DuRide services will be at risk come early September, 2009. Early efforts at forecasting receipts and debits for the initial DuRide operating budget were reasonable on many line items but a couple of overestimations have spawned this matter of concern. I will continue my pursuit throughout this fiscal year to submit corporate and foundation proposals designed to lessen the operational funding burden currently resting with the City of Dubuque and bring more private resources to bear. As this is a responsible course of action for sustainability, and for DuRide to remain a creditable partner with the City of Dubuque, it will also serve as a key value prop when marketing our goal of shared common good for the community. The cash flow from the City of Dubuque has been generous and graciously received. With the original start date delayed, as DuRide awaited receipt of confirmation regarding its blanket liability insurance coverage, the FY 2009 funding from the City was postponed until October, 2008. The logical assumption became a fiscal cycle that ended September 30, as the money earmarked for DuRide operations was for one year. The subsequent FY 2010 DuRide operational budget, however, was predicated on a July 1 start date as expenses for its continued operation were payable from that date. If the FY 2010 agreement between DuRide and the Ci#y of Dubuque does not start again until October 1, DuRide operational expenses incurred in the interim quarter between July 1 and September 30 will become a budgetary shortfall with no imminent remedy. GETTING SENIORS WHERE THEY WANT TO GO breed further growth and further reinforce Dubuque's legacy as an intelligent leader in social enterprise. Thank you for taking the time to listen to our situation. I hope you and the City of Dubuque find DuRide worthy of an intervention that wil{ fix our problem and position us for many future years of service to the city. I look forward to hearing from you soon. I would welcome an opportunity to stand before any of your commissions to answer their questions regarding our work. Sincerely, 1~ . ._. -- Jack T. Hartwig Executive Director