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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 dd By: •• Joh HIT 4 Attest: D�aniSwanson, City Clerk MV TRANSPORTATION By: • N1Q62 Qcau.\, �xtCuh,ull�u PY�iy�➢.Ant d CFO