HomeMy WebLinkAboutReso 77-21 3rd Amendment MV Agmt Contract Extension Final_unsignedRESOLUTION NO. 77-21
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING THIRD 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, 2021 after a one-year
extension was approved July 14, 2020 (Amendment No. 2) and
WHEREAS, in March 2020, local, state and national leaders declared a state of
e mergency regarding the Coronavirus (COVID-19) global pandemic, including local a shelter at
home order issued and effective March 19, 2020; and
WHEREAS, the region began a phased reopening of businesses per the conditions of
the State's Blueprint for a Safer Economy in Spring 2020 and by June of 2021, due to significant
progress in vaccinating individuals and reducing community transmission, the State moved
beyond the Blueprint tier system and began to fully reopen lifting capacity and physical
distancing restrictions for most businesses and activities.; and
WHEREAS, by the end of June 2021, the Delta variant was reported in San Luis Obispo
County, outbreaks and cases increased, and by the end of August 2021, with surges in cases
and hospitalizations stretching the local health care system too close to the breaking point, the
County of San Luis Obispo Public Health Department issued a Health Officer Order requiring
masking in all indoor public places that remains in effect today; and
WHEREAS, beginning in July 2020, the State issued an Order requiring face coverings
be worn when riding the bus or waiting for public transportation that remained in effect until
President Biden issued an Executive Order on January 21, 2021 promoting measures to
prevent the spread of COVID-19 that required masks be worn on public transit and whose
expiration date for the Order has been extended several times until January 18, 2022; and
WHEREAS, on October 20, 2021, the County Public Health Department issued criteria
for lifting the current Health Officer Order requiring masking in all indoor public places that is
similar to those adopted by other California counties; however, there is still uncertainty
surrounding when the County and City would ultimately emerge from this Order and continue
the long road of operational and economic recovery from COVID-19; and
WHEREAS, transit ridership decreased by more than 65% during the height of the
pandemic as people began to self -quarantine and then as the shelter at home order took effect,
o nly using service for essential travel, and
WHEREAS, transit ridership recovery, while increasing to almost 50% of pre-COVID-19
levels, is very slow as the Delta variant began spreading and cases in the region increased over
the Summer into Fall, and it will take several years for ridership to make a steadier recovery to
n ear pre -pandemic levels; and
WHEREAS, during the pandemic, driver recruitment has become very difficult across the
transit industry, including in San Luis Obispo County, with many transit agencies having to cut
back on some service due to a lack of drivers available to drive; and it is uncertain when this
situation may improve, and
WHEREAS, Transportation Development Act funding from the State, used for local
transit operations, experienced decreases in the City's FY 19/20 and FY 20/21 allocations as it
was based on sales and fuel taxes, and the impact of additional decreases will not be known for
several more months; and
WHEREAS, funding decreases combined with ridership decreases, the region phased
reopening in the Summer of 2020 while also still being under a shelter at home order, and the
County Public Health Department Health Officer Order in August 2021 requiring masking in all
indoor public places, resulted in ceasing Saturday Transit service in FY 20/21 and decreases in
Trolley service days, hours, and routing in the 2020 and 2021 summer seasons, 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 and driver recruitment times they have been, and will continue to be faced, 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, 2022 through December 31, 2022; and
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay
approval of the Third Amendment to the Amended Agreement, attached hereto.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 9th day of November 2021 by the following vote'
AYES° Headding, Addis, Barton, Ford, Heller
NOES° None
ABSENT: None
ABSTAIN: None
ATTEST:
tiAxi 61`�
DANA SWANSON, City Clerk
CITY OF MORRO BAY
THIRD AMENDMENT TO CONTRACT FOR MORRO BAY TRANSIT AND TROLLEY
OPERATIONS AND MANAGEMENT
This Amendment No. 3 to that certain agreement for Transit and Trolley operations and
management services ("this Amendment") is made and entered into this 9th day of November, 2021 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, 2021 after a one-year extension was approved
July 14, 2020 (Amendment No. 2)
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 began a phased reopening of businesses per the conditions of the State's Blueprint
for a Safer Economy in Spring 2020 and by June of 2021, due to significant progress in
vaccinating individuals and reducing community transmission, the State moved beyond the
Blueprint tier system and began to fully reopen, lifting capacity and physical distancing restrictions
for most businesses and activities.
E. However, by the end of June 2021, the Delta variant was reported in San Luis Obispo County,
outbreaks and cases Increased, and by the end of August 2021, with surges in cases and
hospitalizations stretching the local health care system too close to the breaking point, the County
of San Luis Obispo Public Health Department issued a Health Officer Order requiring masking in
all indoor public places that remains in effect today.
F. Beginning in July 2020, the State issued an Order requiring face coverings be worn when riding
the bus or waiting for public transportation that remained in effect until President Biden issued an
Executive Order on January 21, 2021 promoting measures to prevent the spread of COVID-19
that required masks be wom on public transit and whose expiration date for the Order has been
extended several times until January 18, 2022.
G. On October 20, 2021, the County Public Health Department issued critena for lifting the current
Health Officer Order requiring masking in all indoor public places that is similar to those adopted
by other California counties; however, there is still uncertainty surrounding when the County and
City would ultimately emerge from this Order and continue the long road of operational and
economic recovery from COVID-19.
H. Transit ridership decreased by more than 65% during the height of the pandemic as people
began to self -quarantine and then as the shelter at home order took effect, only using service for
essential travel.
I. Transit ndership recovery, while increasing to almost 50% of pre-COVID-19 levels, is very slow
as the Delta variant began spreading and cases in the region increased over the Summer into
Fall, and it will take several years for ridership to make a steadier recovery to near pre -pandemic
levels.
J. During the pandemic, driver recruitment has become very difficult across the transit industry,
including in San Luis Obispo County, with many transit agencies having to cut back on some
service due to a lack of drivers available to drive; and it is uncertain when this situation may
im prove.
K. Transportation Development Act funding from the State, used for local transit operations,
experienced decreases in the City's FY 19/20 and FY 20/21 allocations as it was based on sales
and fuel taxes, and the impact of additional decreases will not be known for several more months.
L. Funding decreases combined with ridership decreases, the region phased reopening in the
Summer of 2020 while also still being under a shelter at home order, and the County Public
Health Department Health Officer Order requiring masking in all indoor public places, resulted in
ceasing Saturday Transit service in FY 20/21 and decreases in Trolley service days, hours, and
routing in the 2020 and 2021 summer seasons.
M. 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 and
driver recruitment times they have been, and will continue to be faced, as well as the increased
costs of dealing with how to make working environments safe for employees and riders.
N. 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 continuing unprecedented and difficult
times.
O. City and MV staff are in support of a one-year extension of the current Agreement effective
January 1, 2022 through December 31, 2022.
Now, therefore, the Parties agree as follows:
1. The term of the Agreement is extended by one year and shall expire on December 31, 2022.
2. The terms and conditions of the Agreement are applicable to this extension.
3. The compensation rates applicable for calendar year 2022 shall be established based upon
eighty percent (80%) of the annual percentage difference in the All Urban Consumers Price
Index (CPI) San Francisco -Oakland -Hayward for December 2021.
4. All other terms of the Agreement shall remain in full force and effect.
5. The effective date of this Amendment No. 3 shall be January 1, 2022.
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 3 to be executed.
CITY OF MORRO BAY
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By: ••
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Attest:
D�aniSwanson, City Clerk
MV TRANSPORTATION
By:
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