Agenda 10/13/2020 Item #16D 7 (Amend 2 Agmt. #18-7382 MV Contract Transportation, Inc.)10/13/2020
EXECUTIVE SUMMARY
Recommendation to approve Amendment No. 2 to Agreement No. 18-7382 - Professional Services
Agreement for Collier Area Transit Fixed Route, Demand Response, and Transit Operations
Management Services with MV Contract Transportation, Inc., to allow for a temporary trip rate
increase for paratransit service in response to the COVID-19 Pandemic.
OBJECTIVE: To provide for temporary relief for the provision of paratransit service by the Transit
Contractor in order to continue transit operations.
CONSIDERATIONS: On April 9, 2019 (Agenda Item #11C), the County entered into Agreement No.
18-7382 (the “Agreement”) with MV Contract Transportation, Inc. (“MV”) to provide Fixed Route,
Demand Response, and Transit Operation Management Services for the Collier Area Transit (“CAT”)
system. On June 9, 2020 (Agenda Item 16D.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.
The Agreement includes a fixed rate for paratransit trips. MV based its trip rate on the trip volume the
County included in the Request for Proposal it issued when soliciting for this service - 102,170 trips
annually or an average of 8,514 trips monthly. With the onset of COVID-19, paratransit service declined
by as much as sixty-six percent (66%) (3,309 trips in April, 3,826 in May, 4,873 in June, and 4,877 in
July).
MV states that the reduction in ridership, combined with the Center for Disease Control’s gui delines for
social distancing (i.e., limiting the number of passengers on a bus), has placed a burden on its financials.
MV further claims that because Paratransit service hours remain the same at Collier County, most of its
fixed costs including labor rate, insurance, and the number of personnel/vehicles required to run the
service have remained unchanged. However, the pandemic has created a situation whereby MV’s revenue
associated with the paratransit service has fallen dramatically while the costs to deliver the service have
remained static.
Section 4.9 of the Agreement allows the Parties to negotiate in good faith equitable adjustments to the
rates in the Agreement if the Contractor’s operating costs increase or expected revenue decreases as a
result of state, federal or local government’s adoption of any law, rule, regulation or order that has the
effect of increasing Contractor’s cost to deliver the services under the Agreement. The attached proposed
Second Amendment temporarily modifies the contract rate for a paratransit trip from the current cost per
trip rate of $25.30 to $31.14. Staff is recommending this increase at the request of MV but only on a
temporary basis for the period commencing on August 1, 2020 through December 31, 2020 due to the
unpredictability of the pandemic.
Paratransit ridership is currently fifty percent (50%) less than the average ridership during the summer
months; so, the proposed temporary rate enhancement will not result in an increase above the current total
contract amount. If the Board is inclined to grant the trip rate increase, the proposed amendment further
provides that staff will monitor the ridership during this period and should ridership increase to within
five percent (5%) of normal trip volumes, the paratransit cost per trip rate will revert back to $25.30.
FISCAL IMPACT: The increase of $5.84 per trip would result in an additional $29,200 per month, for a
total increase of $146,000 for the months of August through December. Funding is available within the
existing FY20 and FY21 budgets within the transit family of operating and grant funds (424, 427, 428,
and 429) including 5307 CARES Act funding. A Budget Amendment is not required because this
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amendment is not agreeing to raise the total contract amount. The budget for 5307 CARES Act Funding
resides in Fund (424), project 33682. There is no match requirement for the 5307 CARES Acts grant
program.
GROWTH MANAGEMENT IMPACT: This item is consistent with Objective 12 of the Transportation
Element of the Growth Management Plan.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote
for Board approval. -SRT
RECOMMENDATION: To approve the attached Amendment No. 2 to Agreement No. 18-7382 -
Professional Services Agreement for Collier Area Transit Fixed Route, Demand Response, and Transit
Operations Management Services with MV Contract Transportation, Inc., to provide for a temporary cost
per trip rate increase for paratransit service in response to COVID-19, and authorize the Chairman to sign
the attached amendment.
Prepared By: Michelle Edwards Arnold, Division Director, Public Transit & Neighborhood Enhancement
Division
ATTACHMENT(S)
1. MV Price Adjustment Letter July 27 2020 (PDF)
2. MV Contarct Amendment #2-signed copy (PDF)
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10/13/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.7
Doc ID: 13468
Item Summary: Recommendation to amend Contract No. 18-7382 - Professional Services
Agreement for Collier Area Transit Fixed Route, Demand Response, and Transit Operations Management
Services with MV Contract Transportation, Inc., to allow for a temporary trip rate increase for paratransit
service in response to the COVID-19 Pandemic - Amendment #2.
Meeting Date: 10/13/2020
Prepared by:
Title: – Public Transit & Neighborhood Enhancement
Name: Judy Sizensky
09/03/2020 11:31 AM
Submitted by:
Title: Division Director - Pub Tran & Nbrhd Enh – Public Transit & Neighborhood Enhancement
Name: Michelle Arnold
09/03/2020 11:31 AM
Approved By:
Review:
County Attorney's Office Scott Teach Level 2 Attorney Review Completed 09/16/2020 2:45 PM
Community & Human Services Kristi Sonntag Additional Reviewer Completed 09/03/2020 6:49 PM
Community & Human Services Judy Sizensky Additional Reviewer Skipped 09/04/2020 8:40 AM
Public Transit & Neighborhood Enhancement Omar Deleon Additional Reviewer Completed 09/04/2020 1:26 PM
Community & Human Services Maggie Lopez Additional Reviewer Completed 09/08/2020 10:21 AM
Public Transit & Neighborhood Enhancement Michelle Arnold Additional Reviewer Completed 09/08/2020 1:41 PM
Operations & Veteran Services Kimberley Grant Level 1 Reviewer Completed 09/10/2020 9:35 AM
Public Services Department Todd Henry Level 1 Division Reviewer Completed 09/10/2020 10:38 AM
Grants MaryJo Brock Additional Reviewer Skipped 09/08/2020 12:42 PM
Grants Nicole Diaz Level 2 Grants Review Completed 09/10/2020 3:14 PM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 09/11/2020 3:45 PM
County Attorney's Office Scott Teach Additional Reviewer Completed 09/15/2020 8:24 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/14/2020 10:27 AM
Grants Therese Stanley Additional Reviewer Completed 09/14/2020 11:17 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/15/2020 10:30 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 10/05/2020 4:44 PM
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County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/07/2020 11:24 AM
Board of County Commissioners MaryJo Brock Meeting Pending 10/13/2020 9:00 AM
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July 27 VIA Email
Michelle Arnold
Michelle.Arnold@colliercountyfl.gov
Director Public Transit and Neighborhood Enhancement
Collier Area Transit
8300 Radio Rd.
Naples, FL 34104
Dear Michelle:
I hope this note finds you doing well and staying safe. Following up on our multiple conversations, I’m documenting
our request for a Paratransit hourly rate due to the >50% year to date decrease in ridership directly related to the
COVID-19 outbreak.
As you know, the COVID-19 outbreak has created a decline in ridership, resulting from a variety of individual
responses to the pandemic but primarily – people are simply reducing the number of trips that they take. We were
anticipating that our ridership would return as Phase 1 reopening took effect on May 4th, 2020 and the ensuing
Phase 2 on June 6th, 2020. Unfortunately, Collier County has experienced an increase in COVID-19 infections and
ridership has not returned.
As a direct result of the pandemic in Florida, our ridership is not expected to return to normal any time soon. The
reduction in ridership combined with CDC guidelines for social distancing (i.e. limiting the number of passengers on
a bus) has placed a burden on MV’s financials.
MV is invoking Section 4.9 Price Adjustment from our agreement to request a temporary change to the
rate structure for the period of August 1, 2020 to December 31, 2020.
MV has taken several steps to reduce costs to align with our reduced revenue stream including limited
furloughs and pay reductions of key management staff. The entire corporate / executive team at MV has
also taken pay reductions to try and help contain costs across our national operations.
At Collier County, because Paratransit service hours remain the same, most of our fixed costs including
labor rate, insurance, and the number of personnel / vehicles required to run the service have remained
unchanged. The short version of the issue is: The Pandemic has created a situation whereby MV’s
revenue associated with the Paratransit service has fallen dramatically while our costs to deliver the service
have remained static.
16.D.7.a
Packet Pg. 1873 Attachment: MV Price Adjustment Letter July 27 2020 (13468 : MV Contract Amendment #2 Contract No. 18-7382)
At present, we bill Collier County at a rate of $25.30 / trip. In January and February of this year, we
delivered at a rate of 1.6 trips per hour, slightly below our target of 1.7. Because of CDC social distancing
guidelines, we now limit the number of passengers on each vehicle. As a result, our trips per hour metric
has declined to 1.3. We are proposing a temporary increase from $25.30/ trip to $31.14 / trip based on
the below logic.
Pre-COVID - 1.6 Passengers / trip at $25.30 / trip
Current - 1.3 Passengers / trip at $31.14 / trip
MV is not asking for an increase beyond total contracted amounts. We are asking for a change in the rate
to accommodate the decrease in the ridership and the efficiency of the operation which was borne of the
new guidelines put in place to slow the spread of the COVID-19 Pandemic.
I will call early next week to discuss a path forward. We very much appreciate the partnership of Collier
County and your consideration of our proposal.
Regards,
Steven D Trinkle
SVP SE Region
MV Transit
Cell: 828 386 8576
steven.trinkle@mvtransit.com
CC: Braian Morales – General Manager – MV Transportation
16.D.7.a
Packet Pg. 1874 Attachment: MV Price Adjustment Letter July 27 2020 (13468 : MV Contract Amendment #2 Contract No. 18-7382)
16.D.7.bPacket Pg. 1875Attachment: MV Contarct Amendment #2-signed copy (13468 : MV Contract Amendment #2 Contract No. 18-7382)
16.D.7.bPacket Pg. 1876Attachment: MV Contarct Amendment #2-signed copy (13468 : MV Contract Amendment #2 Contract No. 18-7382)
16.D.7.bPacket Pg. 1877Attachment: MV Contarct Amendment #2-signed copy (13468 : MV Contract Amendment #2 Contract No. 18-7382)