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Burlington Trailways Bus Contra Du~ ~<Jt¿~ MEMORANDUM July 28, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Burlington Trailways Independent Commission Agency Contract Burlington Trailways Bus System is reaching agreements with several cities affected by the termination of Greyhound Bus service, including the City of Dubuque. The agreement will ensure that two boardings per day will continue from the KeyLine offices in Dubuque to Des Moines and Chicago. Transit Manager Mark Munson is recommending City Council approval of an Independent Commission Agency Contract between the City of Dubuque and Burlington Trailways Bus System that will provide a 15% commission on ticket sales, for an estimated revenue of $24,000 per year for the City of Dubuque. I concur with the recommendation and respectfully request Mayor and City Council approval. 1 Jil . ~/ ..' I rtvJv ,1'1 ,;!) ¡ '/"L Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Mark Munson, Transit Manager (C' Key Line Transit 2401 Centcal Avenue Dubuque, Iowa ó2001.3302 (563) 589.4196 office (ó63) 589.4340 fax (563) 690.6678 TOO D~ ~<Jt¿~ July 27,2004 FR: Michael C. Van Milligen, City Manager Mark Munson, Transit Manager f\f\ Burlington Trailways Independent Commission Agency Contract TO: Subject: Purpose The purpose of this memo is to recommend City Council approval to enter into a contract with Burlington Trailways Bus System to sell tickets as an independent agent. Background Effective August 17, 2004, Greyhound Bus Lines will no longer provide intercity bus service from Dubuque. The Independent contract between the City of Dubuque and Greyhound Bus Lines will terminate as will their direct service from Dubuque to Des Moines and Chicago. Burlington Trailways Bus System is reaching agreements with several cities affected by the termination of Greyhound Bus service including the City of Dubuque. The agreement will ensure that two boardings per day will continue from the KeyLine offices in Dubuque to Des Moines and Chicago. Although the Chicago boarding will occur at 5:40 p.m. which is 40 minutes later than the current Greyhound boarding times, KeyLine office hours and ticket sales will continue to end at 5:00 p.m. to avoid additional operating expense for the service. Reconstruction of the passenger waiting area under the I ntercity Bus Grant approved by the Iowa Department of Transportation will provide sheltered waiting area from 5:00 p.m. to the 5:40 p.m. boarding Monday through Saturday and for Sunday boardings when the KeyLine offices are closed. Burlington Trailways Bus System will interline with Greyhound Bus Lines and the City of Dubuque will also receive commissions on the interline service. S""ice' People Integoty R"ponsibillty Innov"lIon leamwmk , Corporation Counsel Barry Lindahl has reviewed the agreement proposed by Burlington Trailways Bus System and has forwarded his comments and revisions to Trailways for approval. Commission will continue to be paid at 15% of gross ticket sales for approximately $24,000 commission revenue per year. Recommendation I recommend that the City of Dubuque and Burlington Trailways Bus System enter into an Independent Commission Agency Contract at a commission of 15% of ticket sales for estimated revenue of $24,000 per year. Cc: William Baum, Economic Development Director