HomeMy WebLinkAboutReso 66-20 MV Second Amendment_Contract ExtensionRESOLUTION NO. 66-20
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING SECOND AMENDMENT TO MORRO BAY TRANSIT AND TROLLEY
OPERATIONS AND MANAGEMENT AGREEMENT WITH MV TRANSPORTATION, INC.
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, effective January 1, 2015, the City of Morro Bay (City) and MV
Transportation, Inc. (MV) entered into an agreement for MV to provide year-round deviated fixed
route and seasonal trolley services for the City (the 'Agreement); and
WHEREAS, the Agreement is in effect through December 31, 2020 after a one-year
extension was approved September 17, 2019 pursuant to Section 2.2 (Amendment No. 1); and
WHEREAS, in March 2020, local, state, and national leaders declared a state of
emergency regarding the Coronavirus (COVID-19) global pandemic, including local a shelter at
home order issued and effective March 19, 2020; and
WHEREAS, the region has begun a phased reopening of businesses per the conditions
of the State s Roadmap to Recovery, however there is still uncertainty surrounding when the
State, County, and City would ultimately emerge from the shelter at home order and continue
the long road of operational and economic recovery from COVID-19; and
WHEREAS, Transit ridership has decreased by more than 65% during the pandemic as
people began to self -quarantine and then as the shelter at home order took effect, only using
service for essential travel; and
WHEREAS Transportation Development Act funding from the State, used for local
transit operations has begun to experience decreases as it is based on sales and fuel taxes
and the full impact of these decreases will not be known for several more months; and
WHEREAS, funding decreases combined with ridership decreases, and the region in a
phased reopening while also still being under a shelter at home order has resulted in decreases
in Transit service beginning with the 2020/2021 fiscal year and Trolley service beginning with
the 2020 summer season; and
WHEREAS, there is uncertainty as to what type of bidding environment there would be
should a Request for Proposals for transit operations and management be released at this time,
let alone whether transit companies would be interested in expanding during the extremely
difficult financial times they have been and will continue to face, as well as the increased costs
of dealing with how to make working environments safe for employees and riders; and
WHEREAS, as such, a one-year extension of this Agreement is prudent and would
provide financial stability for both MV, its local employees, and the City's Transit Fund during
these unprecedented and difficult times; and
WHEREAS, City and MV staff are in support of a one-year extension of the current
Agreement effective January 1, 2021 through December 31, 2021; and
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay
approval of the Second Amendment to the Amended Agreement, attached hereto as Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 14th day of July 2020 by the following vote:
AYES. Headding, Addis, Davis, Heller, McPherson
NOES. None
ABSENT: None
ATTEST:
A A SWANSON,
D City Clerk
CITY OF MORRO BAY
SECOND AMENDMENT TO CONTRACT FOR MORRO BAY TRANSIT AND TROLLEY
OPERATIONS AND MANAGEMENT
This Amendment No. 2 to that certain agreement for Transit and Trolley operations and
management services ('this Amendment') is made and entered into this 22nd day of June, 2020 by and
between the City of Morro Bay, a municipal corporation ('City") and MV Transportation Inc., a California
corporation ("MV") (sometimes collectively the "Parties").
RECITALS
A. Effective January 1, 2015, the Parties entered into an agreement for MV to provide year-round
deviated fixed route and seasonal trolley services for City (the "Agreement")
B. The Agreement is in effect through December 31, 2020 after a one-year extension was approved
September 17, 2019 pursuant to Section 2.2 (Amendment No. 1)
C. In March 2020, local, state, and national leaders declared a state of emergency regarding the
Coronavirus (COVID-19) global pandemic including local a shelter at home order issued and
effective March 19, 2020
D. The region has begun a phased reopening of businesses per the conditions of the State's
Roadmap to Recovery however there is still uncertainty surrounding when the State, County, and
City would ultimately emerge from the shelter at home order and continue the long road of
operational and economic recovery from COVID-19.
E Transit ridership has decreased by more than 65% during the pandemic as people began to self -
quarantine and then as the shelter at home order took effect, only using service for essential
travel.
F. Transportation Development Act funding from the State, used for local transit operations, has
begun to experience decreases as it is based on sales and fuel taxes, and the full impact of these
decreases will not be known for several more months.
G. Funding decreases combined with ridership decreases, and the region in a phased reopening
while also still being under a shelter at home order, has resulted in decreases in Transit service
beginning with the 2020/2021 fiscal year and Trolley service beginning with the 2020 summer
season
H. There is uncertainty as to what type of bidding environment there would be should a Request for
Proposals for transit operations and management be released at this time, let alone whether
transit companies would be interested in expanding during the extremely difficult financial times
they have been and will continue to face, as well as the increased costs of dealing with how to
make working environments safe for employees and riders.
As such a one-year extension of this Agreement is prudent and would provide financial stability
for both MV, its local employees, and the City during these unprecedented and difficult times.
J. City and MV staff are in support of a one-year extension of the current Agreement effective
January 1, 2021 through December 31, 2021.
Now, therefore, the Parties agree as follows:
1. The term of the Agreement is extended by one year and shall expire on December 31, 2021.
2. The terms and conditions of the Agreement applicable to an extension, including
compensation rates as discussed in Section 5.1 of the Agreement, are applicable to this
extension.
3. All other terms of the Agreement shall remain in full force and effect.
4. The effective date of this Amendment No. 2 shall be January 1, 2021.
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be executed.
CITY OF MORRO BAY MV TRANSPORTATION
By:
John Head
Attest:
Mayor
Dana Swanson, City Clerk
By: AUMJh124th