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
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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
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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
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