Agenda 04/11/2023 Item #16A22 (Cost increases as a result of the Third Amendment to Contract for Collier Area Transit Fixed Route, Demand Response, and Transit Operations Management Services)04/11/2023
EXECUTIVE SUMMARY
Recommendation to approve a Budget Amendment in the amount of $319,808.52 to cover cost increases as a
result of the Third Amendment to Contract No. 18-7382 for Collier Area Transit (CAT) Fixed Route,
Demand Response, and Transit Operations Management Services with MV Transportation, Inc.
OBJECTIVE: To provide fiscal relief pertaining to the provision of fixed route and paratransit service by the
County's transit Contractor in order to continue transit operations.
CONSIDERATIONS: On October 26, 2021 (Agenda Item # 16A14) the County approved the Third Amendment
to the Agreement to allow for an increase to Fixed Route and Paratransit rates. This was done to mitigate the
staffing shortage that was causing interruptions in the services provided. The amendment included an enhancement
rate above the Fixed Route Hourly Rate and Paratransit Trip Rate. Since the execution of the amendment, due to an
oversight by MV Transportation, the subsequent monthly invoices submitted omitted the enhancement rates for
both services. The contractor has recently realized this error and has submitted an invoice for the amount of
$319,808.52.
During the budget process, an oversight was made by County staff and the increase for service costs were not
included in the budget. Funding is available in reserves to cover the additional invoice costs.
FISCAL IMPACT: A budget amendment in the amount of $201,129.12 is necessary to allocate funding from
Reserves within the CAT Transit Enhancement Fund (426) to CAT Project (61011) and a Budget amendment in the
amount of $118,679.40 is necessary to allocate ftmding from Reserves within the Transportation Disadvantage
Fund (427) to CAT Project (31427).
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this Item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. The Third Amendment
ad . usted the rates under the contract effective November 1, 2021. Due to a clerical error on the vendor's part, the
J
increased rates were not charged. Having uncovered the error, the vendor is now making a claim in the amount of
$319,808.52, which claim is well within the Statute of Limitations period (5 years). Staff has verified that the
claim is accurate. Accordingly, this item is approved as to fort-ii and legality and requires majority vote for
approval. -JAK
RECOMMENDATION: To Approve a Budget Amendments in the amount of $319,808.52 to cover cost
increases as a result of the Third Amendment to Contract No. 18-7382 for Collier Area Transit (CAT) Fixed Route,
Demand Response, and Transit Operations Management Services with MV Transportation, Inc.
Prepared by: Omar De Leon, Transit Manager
ATTACHMENT(S)
1. Executed 3rd Contract Amendment (PDF)
2. Enhancement Pay Invoice Assessment (PDF)
Packet Pg. 701
04/11/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.22
Doe ID: 25075
Item Summary: Recommendation to approve a Budget Amendment in the amount of $319,808.52 to cover cost
increases as a result of the Third Amendment to Contract No. 18 -73 82 for Collier Area Transit (CAT) Fixed Route,
Demand Response, and Transit Operations Management Services with MV Transportation, Inc.
Meeting Date: 04/11/2023
Prepared by:
Title: Planner, Senior — Public Transit & Neighborhood Enhancement
Name: Omar Deleon
03/29/2023 3:23 PM
Submitted by:
Title: Division Director - Pub Tran & Nbrhd Enh — Public Transit & Neighborhood Enhancement
Name: Michelle Arnold
03/29/2023 3:23 PM
Approved By:
Review:
Public Transit & Neighborhood Enhancement
Growth Management Department Danielle Bates
Public Transit & Neighborhood Enhancement
Growth Management Operations Support
Growth Management Operations Support
Public Transit & Neighborhood Enhancement
Yousi Cardeso
Additional Reviewer
Completed
03/29/2023 3:41 PM
Transportation Management Services
Department
Completed
03/29/2023 3:52 PM
Michelle Arnold
Director Review
Completed
03/30/2023 8:37 AM
Nicole Diaz
Additional Reviewer
Completed
03/30/2023 11:10 AM
Brandy Otero
Additional Reviewer
Completed
03/31/2023 8:41 AM
Caroline Soto
Additional Reviewer
Completed
03/31/2023 10:04 AM
Growth Management Department
Trinity Scott Transportation
Completed
04/03/2023 8:47 AM
County Attorney's Office
Jeffrey A. Klatzkow Level 2 Attorney Review
Completed
04/03/2023 9:02 AM
Grants
Erica Robinson Level 2 Grants Review
Completed
04/04/2023 7:44 AM
County Attorney's Office
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Completed
04/04/2023 9:21 AM
Office of Management and Budget
Debra Windsor Level 3 OMB Gatekeeper Review
Completed
04/04/2023 10:51 AM
Grants
Therese Stanley Additional Reviewer
Completed
04/05/2023 11:25 AM
Corporate Compliance and Continuous Improvement Megan Gaillard
Additional Reviewer
Completed
04/05/2023 3:48 PM
Office of Management and Budget
Christopher Johnson Additional Reviewer
Completed
04/05/2023 4:23 PM
County Manager's Office
Geoffrey Willig Level 4 County Manager Review
Completed
04/05/2023 4:56 PM
I Packet Pg. 702 1
04/11/2023
Board of County Commissioners Geoffrey Willig Meeting Pending 04/11/2023 9:00 AM
I Packet Pg. 703
MEMORANDUM
Date: November 3, 2021
To: Michelle Arnold, Director
Public Transit and Neighborhood Enhancement
From: Martha Vergara, Sr. Deputy Clerk
Minutes & Records Department
Re: 3" Amendment to Contract #18-7382 for CAT
Attached, for your records, please find an original as referenced above,
(Item #16A14) adopted by the Board of County Commissioners on
October 26, 2021.
The Minutes and Record's Department will hold the original in the
Official Records of the Board.
If you have any questions, please contact me at 252-8411.
Thank you.
Attachment
I Packet Pg. 704 1
THIRD AMENDMENT TO CONTRACT 18-7382
FOR COLLIER AREA TRANSIT (CAT) FIXED ROUTE, DEMAND RESPONSE AND
TRANSIT OPE RATIONS MANAGEMENT SERVICES
(GRANT FUNDED)
THIS THIRD AMENDMENT TO AGREEMENT No. 18-7382 (the "Third Amendment!')
is made and entered into theQ?jA day of �8'AnhA— — 2021, by and between MV Contract
Transportation, Inc., whose address is 2711 N. Haskell Ave., Suite 1500, Dallas, Texas 75204
(hereinafter referred to as the "Conttactor"), and the Board of County Commissioner of Collier
County, Florida, a political subdivision of the State of Florida, as the governing body of Collier
County (the "County")(collectively, the "Parties").
RECITALS:
WHEREAS, on April 9, 2019 (Agenda Item I I.C.), the, County entered into Agreement
No. 18-7382 ("the Agreement") with the Contractor to provide Fixed Route, Demand Response
and Transit Operation Management Services for the CAT; and
WHEREAS, on June 9, 2020 (Agenda Item 16.13.15), the County approved the First
Amendment to the Agreement to provide reimbursement of additional operating duties and
expenses incurred in response to the COVID-19 Pandemic; and
WHEREAS, on October 13,2020 (Agenda Item 16.D.7), the County approved the Second
Amendment to the Agreement to allow for a temporary trip rate increase for paratransit service in
response to the COVID-19 Pandemic; and
WHEREAS, the COVID-19" outbreak has been declared a pandernic by the Center for
Disease Control ("CDC"); and
WHEREAS, the Federal Transit Administration allocated urbanized and rural area
formula funding at a 100-percent (100%) federal share, with no local match required, to support
capital, operating, and other expenses generally eligible under those programs to prevent, prepare
for and respond to COVID- 19; and
WHEREAS, at the peak of the COVID-19 Pandemic, public transit ridership experienced
a 65% reduction, however, over the last several months ridership has increase to a level that is 27%
of pre -pandemic service levels: and
WHEREAS, the COVID- 19 Pandemic has significantly impacted the labor force creating
a national driver shortage for the Transportation Industry and consequently affecting the ability to
-find enough drivers to cover both the Fixed Route and Paratransit sei vices; and
WHEREAS, despite efforts made by the Transit Vendor, MV Transportation Inc., current
wage requirements in the labor market far exceed what was contemplated in the last procurement
cycle, with a rapid increase in wages over the last several months; and
— G -
F Packet Pg. 705
WFUEREAS, the current labor market has not only afferted the ability to attract workers,
but also retain workers at all levels, causing service interruptions to CAT's customers; and
WIIEREAS, the Parties have negotiated in good faith equitable adjustments to the rates
set forth in the Agreement in a constrained amount and for limited duration to encourage the ability
to hire drivers to operate both Fixed Route and Paratransit Route services, while the Contractor is
still subject to the agreed upon monetary disincentive provisions of the Agreement if it is unable
to meet agreed upon performance measurables.
NOW, TREREF4 ORE, in consideration of mutual covenants and agreements set forth
herein and for other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the County and Contractor agree that the Agreement shall and herby is amended
and modified on the terms provided herein:
Terms and Condition
1. Recitals. The preceding recitals are true and correct and are incorporated into this Third
Amendment by reference as if set forth herein.
2, The Transit Operations Management Services (TOMS) rates set forth in Exhibit B —
Fee Schedules will be, modified effective November 1, 2021, as follows:
3. The Fixed Route Services Revenue Hour rates set forth in Exhibit B — Fee Schedules
will be modified effective November 1, 2021, as follows:
Revenue Hour 7772,0376
72,036
Existing Cost per Fixed Route Revenue Hour
$51.58
9
$527.79
Cost per Fixed Route Revenue Hour
$55.79
$57.10
Annual Increase
$151,636
$310,475
Fixed Route Revenue Hour Enhancement
$2.53
$2.59
Annual Retention Bonus
$91,126
$186,573
Annual impact
$242,761
$497,048
2 - G --
FPacket Pg. 706
4. The per trip rate for Paratransit service set forth in Exhibit B — Fee Schedules will be
modified effective November 1, 2021, as follows:
5. The Parties agree that the above cost enhancements are warranted based on the current
labor market, and there is no guarantee as to any ftu-ther future cost enhancements in
the subsequent years of the agreement, and that the enhancements incorporated herein
apply only to the referenced years.
6. All other terms of the Agreement as revised and not amended herein shall remain in
effect.
7. This Third Amendment to Agreement No. 18-7382 shall be effective as of November
1,2021.
IN WITNESS VMEREOF, tile parties have executed this Third Amendment on the date
and year written above by an authorized person or agent.
- 6)
FPacket Pg. 707
ATTEST:
Crystal IC JCInzel; Clork of Courts
AndCopi
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sionatute only,
Wfr-6�ed as to Form a4d Legality:
Scott R. TeAch
Deputy County Attorney
BOARD OF COUNTY COMMISSIONERS
COLLIER FOrY, FLORIDA
By:
Pendy ayfor, COrman
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