Loading...
HomeMy WebLinkAboutReso 97-22 MV Fourth Amendment_Contract Extension_Fee Changev2RESOLUTION NO. 97-22 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING FOURTH 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 City (the "Agreement"); and WHEREAS, pursuant to Section 2.2 of the Agreement, the term was extended one-year through December 31, 2020 (Amendment No. 1); and WHEREAS, City and MV amended the Agreement for an additional two one-year periods through December 31, 2022 while responding to the Coronavirus (COVID-19) global pandemic (Amendment 2 and Amendment 3); and WHEREAS, the Agreement and Amendment No. 1, No. 2, and No. 3 are hereinafter referred to as the "Amended Agreement;" and WHEREAS, City and MV now agree it is time to extend the Amended Agreement for one-year while the City develops Request for Proposal specifications for release and award by the City Council during 2023 for Morro Bay Transit and Trolley operations and day to day management; 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 WHEREAS, it is uncertain when this situation may improve and MV has proposed increasing the driver wage scale to improve driver recruitment outcomes going forward and be more competitive with other transit agencies; and WHEREAS, MV believes not offering wage increases and tiers to their drivers puts them at a disadvantage in recruiting and retaining drivers; and H WHEREAS, if MV were to lose drivers, transit and trolley services in Morro Bay would be at risk for a reduction in services levels. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay approval of the Fourth 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 13th day of December 2022 by the following vote: AYES: Headding, Barton, Ford, Heller NOES: None ABSENT: None ABSTAIN: None RECUSE: None J04 fNEADDING, Mayor EST: ANA SWANSON, City Clerk CITY OF MORRO BAY AMENDMENT NO. 4 TO THE AGREEMENT FOR MORRO BAY TRANSIT AND TROLLEY OPERATIONS AND MANAGEMENT This Amendment No. 4 is entered into on the 13th day of December 2022, by and between the City of Morro Bay, a municipal corporation ("City") and MV Transportation Inc., a California corporation ("Contractor"). RECITALS A. City and Contractor entered into an agreement as of January 1, 2015 for Contractor to provide year-round deviated fixed route and seasonal trolley services for City (the "Agreement"). B. Pursuant to Section 2.2 of the Agreement, the term was extended one-year through December 31, 2020 (Amendment No. 1). C. City and Contractor amended the Agreement for an additional two one-year periods through December 31, 2022 while responding to the Coronavirus (COVID-19) global pandemic (Amendment 2 and Amendment 3). D. WHEREAS, the Agreement and Amendment No. 1, No. 2, and No. 3 are hereinafter referred to as the "Amended Agreement." E. City and Contractor now agree it is time to extend the Amended Agreement for one-year while the City develops Request for Proposal specifications for release and award by the City Council during 2023 for Morro Bay Transit and Trolley operations and day to day management. F. 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 driver availability. G. It is uncertain when this situation may improve and to be more competitive with other transit agencies City and Contractor agree increasing the driver wage scale could help with driver recruitment. NOW, THEREFORE, City and Contractor mutually agree to amend the Amended Agreement as follows: 1. The term of the Amended Agreement is extended by one-year, effective January 1, 2023 through December 31, 2023. 2. The Vehicle Service Hour compensation rate applicable for calendar year 2023 to be established at $41.81 per vehicle service hour. 3. The Monthly Management Fee applicable for calendar year 2023 shall be $5,788.18 per month for Transit services and $2,371.22 per month for Trolley services. 4. Except as expressly set forth in this Amendment, the terms and conditions in the Amended Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to be executed by their duly authorized representatives as of the Effective Date. CITY OF MORRO BAY MV TRANSPORTATION, INC. By: By: Joh I H ddi r By: Attest: go -- Mina Swanson, City Clerk Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY.