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First Transit_Termination of ContractMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Transit Contract DATE: April 14, 2010 MCVM:jh Attachment Michael C. Van Milligen Dubuque bitil AII4merlca 1 1 1 1 r 2007 In 2006, the City Council approved a transit management contract with First Transit. The original contract period was through June 30, 2007, and included 4 one -year automatic extensions. The contract also allows either party to provide a 60 -day written notice prior to the expiration of each term, of the party's desire to terminate the contract. On February 1, 2010, the City Council authorized a Request for Proposal to evaluate other transit management options. Following City Council authorization of the RFP format, the document was sent to private management firms, including First Transit. Even though a recommendation on the management contract has not been decided, it is definite that there will be a different contract on July 1. The proposed First Transit contract is very different than the existing contract, so even if the RFP Review Committee were to recommend a contract with First Transit, it would not be a renewal of the current contract. Based on this information, and knowing that the City must give a 60 -day notice to terminate the current contract with First Transit, Economic Development Director Dave Heiar and the RFP Review Committee recommend that the City Council authorize formal notification of contract termination. I concur with the recommendation and respectfully request Mayor and City Council approval. cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director Jon Rodocker, Transit Manager Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: David Heiar, Economic Development Director DATE: April 13, 2010 SUBJECT: First Transit Contract Dubuque kiftril 2007 INTRODUCTION In 2006, the Council approved a transit management contract with First Transit. The original contract period was through June 30, 2007 and included 4 one year automatic extensions. The contract also allows either party to provide a sixty (60) day written notice prior to the expiration of each term, of the party's desire to terminate the contract. On February 1, 2010, the City Council authorized an RFP to evaluate other transit management options. Following Council authorization of the RFP format, the document was sent to private management firms, including First Transit and ECIA/RTA. Four proposals were received on March 9 from the following: First Transit — Cincinnati, Ohio PTMNeolia Transportation — Loveland, Ohio ECIA/RTA — Dubuque, Iowa McDonald Transit Associates, Inc. — Fort Worth, Texas The review committee has submitted additional questions to each of these companies and interviewed each of the firms. The committee has begun the evaluation of the proposals and has yet to check references of the companies and the proposed general managers. The review committee includes: David Heiar, Economic Development Director Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Director Tim Horsfield, Parking System Supervisor Molly Menster, Human Relations Specialist Russell Stecklein, Police Captain Crenna Brumwell, Assistant City Attorney Ken TeKippe, Finance Director Aaron DeJong, Assistant Economic Development Director Although the committee does not yet have a recommendation, for a management contract, it is definite that there will be a different contract on July 1. The proposed First Transit contract is very different than the existing contract, so even if the committee were to recommend a contract with First Transit, it would not be a renewal of the current contract. Based on this information, and knowing that the City must give a 60 day notice to terminate the current contract with First Transit, the committee is recommending that the City Council authorize formal notification of contract termination. ACTION STEP For the City Council to authorize the City Manager to send a formal notice to First Transit (copy attached) of the City's intent to terminate our current transit management contract as of July 1, 2010. Attachment F: \USERS \Econ Dev \Transit \First Transit\20100413 Memo MVM First Transit Contract.doc City Manager's Office City Hall 50 West 13th Street Dubuque, Iowa 52001 -4864 (563) 589 -4110 phone (563) 589 -4149 fax (563) 690 -6678 TDD ctymgr@cityofdubuque.org April 19, 2010 FIRST TRANSIT Attn: Mr. Rick Dunning Senior VP of Transit Management 705 Central Avenue, Suite 300 Cincinnati, Ohio 45202 Dear Mr. Dunning: In accordance with Section 5, Commencement and Term of the Management Agreement between the City of Dubuque and your firm, the City of Dubuque is hereby providing notice of termination of the management agreement. This termination shall take effect at midnight on July 1, 2010. Sincerely, Michael C. Van Milligen City Manager MCVM:bf cc: Jon Rodocker, Transit Manager First Transit 2401 Central Avenue Dubuque, IA 52001 Dennis Jensen, Area Vice President First Transit 600 Vine Street Suite 1400 Cincinnati, OH 45202 Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director THE CITY OF DUB Re: Notice of Termination - -- Management Agreement Service People Integrity Responsibility Innovation Teamwork