First Transit Contract Amendmentrxe arv of
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MEMORANDUM
January 10, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Transit Contract Amendment
City of Dubuque Transportation Clerk Connie Booth has retired from KeyLine after 27
years of service. Connie will be missed.
Last year the City contracted with First Transit to manage the KeyLine Transit operation.
One of their responsibilities is to recommend system improvements.
Economic Development Director Dave Heiar is recommending approval of a contract
from First Transit to expand their team in Dubuque from one to two positions to fill this
Transportation Clerk vacancy. The City is just beginning to realize some of the benefits
of hiring a management firm that is skilled in transit supervision. This change will
improve the City's ability to operate transit services at no additional costs.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~ ~~/'~~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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MEMORANDUM
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January 9, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Directo~ lY1-k ,
SUBJECT: First Transit Contract Amendment ~,JI" ~
INTRODUCTION
With the December 30"' retirement of Transportation Clerk Connie Booth, there is a
current void in the staffing at the central office for KeyLine. Connie served the City well
for 27 years and she will be missed. This staff position has been responsible for
National Transit Database (NTD) reporting, payroll, FTA and IDOT grant management,
fund requisition, and the tracking of operations expenses, and requires an individual
skilled in the administration of these programs.
DISCUSSION
Transit Division Manager, Jon Rodocker and I have discussed the need to refine the
duties of the Transportation Clerk and other KeyLine office staff. With the replacement
Jon wants to further First Transits goal of building a versatile management team with a
person with the appropriate supervisory and technical skills. At present, Jon is the only
First Transit employee on our staff. The vacancy presents an opportunity to expand our
management oversight of the KeyLine system with First Transit. The City is just
beginning to realize some of 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
two persons in Dubuque. Attached is a letter from Dennis Jensen the area manager for
First Transit explaining the contract amendment and rationale for including this position
as part of the Citys contract. The cost for this amendment is $53,000 per year, which is
what the City would pay if the City hired someone at the 1St step on the current pay
scale (including benefits). In addition, First Transit would be able to fill this position
immediately, whereas the City would need approximately two or three months to recruit,
advertise, and fill the position.
RECOMMENDATION
I recommend that the City Council amend the First Transit contract for KeyLine Transit
Management Services to include two management positions in Dubuque.
ACTION STEP
The action step is for the City Council to approve the attached resolution.
F:\USERS\DHeiar\Transit\Council Memos\Modifying the current contract with First Transit.doc
RESOLUTION NO.
A RESOLUTION APPROVING THE SECOND 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 and First Transit, Inc. entered into a management
agreement on April 3, 2006; and
Whereas, a current staffing vacancy exists at KeyLine Transit.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA;
Section 1. That the second amendment to the First Transit management
agreement (dated April 3, 2006) be approved to expand the Dubuque management
team by adding a transportation clerk for an additional monthly fee of $4,416.67.
Passed, approved and adopted this 16th day of January 2007.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERS\DHeiar\Transit\Resolution approving amendment 2 to DA.doc
First 1Yanait, Inc.
705 Central Avenue
Suite 300
Cincinnati, Ohio 45202-5755
Tel 513-241-2200
Fax 513-381-0149
www.fi rsttransit.com
December 29, 2006
Mr. David Heiaz
Director of Economic Development
City of Dubuque
50 W 13a' St.
Dubuque, IA 52001
Deaz Mr. Heiaz,
First Twansit ~i
I appreciate your meeting with Jon Rodocker and me last month to discuss Keyline
management items. We are'pleast;d at the progress that has been made during the past
eight months and aze looking forwazd to a program of continued improvements during
2007.
One of the items we discussed is the need to replace retired Keyline Transportation Clerk,
Ms. Connie Booth. This staff position is responsible for National Transit Database
(NTD) reporting, payroll, FTA and IDOT grant management, fund requisition, and the
tracking of operations expenses, and will require an individual skilled in the
administration of these programs.
Jon and I have also discussed the need to refine the duties of the Transportation Clerk and
other Keyline office staff in order to build a management team with greater versatility
and improved supervisory and technical skills. At present, as a First Transit employee,
Jon is the only administrative person that is not covered under a bargaining agreement.
We believe that the retirement of Ms. Booth 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 that is available for immediate
employment, and we aze proposing an amendment to the management contract that
would expand the personnel provided under the contract terms to two (2) persons, a
General Manager and an Office Administrator. We aze proposing that the annual
management fee be increased by $53,000 per yeaz to accommodate this change.
A FirstGroup America ~j Company
The projected FY 08 budget for Keyline Transit has established a salary of $43,648 for
the Transportation Clerk position. With fringes of $16,502 (SS, IPERS, Health and Life)
the total compensation would be $60,150. 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 $53,000 to reflect this savings. We believe that
the addition of a seasoned transit professional in a supporting role to the General
Manager will provide Keyline Transit with the supervisory resources that may be needed
during times when the General Manager is unavailable due to other business or is on
vacation. The Office Administrator would become a full time employee of First Transit,
Inc. with all salary, and fringe benefits the responsibility of First Transit.
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.
In closing, I would like to 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. 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 aze
properly addressed and met.
incerely,
is en
ea ana er
SECOND AMENDMENT TO MANAGEMENT AGREEMENT BETWEEN THE
CITY OF DUBUQUE, IOWA AND FIRST TRANSIT, INC.
This Second Amendment to Management Agreement between the City of
Dubuque, Iowa and First Transit, Inc. is dated for reference purposes the day of
November, 2006.
Whereas, the City of Dubuque, Iowa (City) and First Transit, Inc. (First Transit)
have entered into a Management Agreement between the City of Dubuque, Iowa and
First Transit (the Agreement); and
Whereas, City and First Transit now desire to amend the Agreement as set forth
here.
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 famish a Transportation Grants Manager/Bookkeeper who shall
serve at the expense of FIRST TRANSIT and shall provide grant assistance
for and on behalf of the City. The Transportation Grants Manager/
Bookkeeper shall reside in Dubuque, Iowa. Managing of the grant program
shall be the full time job of the Transportation Grants ManagerBookkeeper.
The commencement date for the Transportation Grants ManagerBookkeeper
is on or about January 1, 2007. The position of Transportation Grants
ManagerBookkeeper includes a fee of $53,000 beyond the fees outlined in
Section 8 of this Agreement.
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.
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.
IN WITNESS WHEREOF, the City and FIRST TRANSIT have affixed their
respective signatures as of the dates indicated below:
CITY OF DUBUQUE, IOWA
By:
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
FIRST TRANSIT, INC.
By:
Rick Dunning, Sr. Vice President
Witness:
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