ITEM 6.1 RiverRider Transportation AgreementC.,,go
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MINNESOTA
DEPARTMENT IN -FORMATION
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ORIGINATING DEPARTMENT: RsQueorom MEETING DATE:
Administration | Lori Johnson, City Administrator | October 14, 2013
pRsasmrER(s): REVIEWED BY:
Lori Johnson, City Administrator
AGENDA ITEM DETAILS
ITEM #:
61
Recommend approval of the attached RiverRider Transportation Agreement Between RiverRider and the
Cities of Albertville, Hanover., Otsego, and St. Michael, all in Wright and Hennepin Counties., Minnesota
(Agreement).
ARE YOU SEEKING APPROVAL orAoomrnAor?
Yes
IS APUBLIC HEARING REQUIRED?
No
Subsequent todirection atajoint meeting of the city councils of Albertville., St. Michael, and Otsego
earlier this year, the three cities plus the city 0fHanover have been working with Rive[Ride[toexpand
public transportation service through RherR|derinthese communities. RiverR|derhas indicated the
a bility to provide service two days a week for a tota I of ten hours per week for f ifty weeks per yea r for
the four participating cities. |norder toproceed with service beginning |nJanuary, 2Ol4 RiverRider
needs toapprove the service request atits October board meeting, Rk/erRiderrequires acommitment
fro mthe cities forthreeyea ns|nthoform ofaoontnactoragree mentinonjertoapprove theservico
request.
Andy MacArthur, City Attorney, drafted an agreement for review and comment byall cities, RiverRider,
and MnDotoutlin|ng the service, terms, and provisions for payment among the participating cities. The
final version ofthe Agreement isattached. The Agreement was approved b»Albertville, Hanover, and
St. Michael at their respective City Council meetings this month.
Attached is a map depicting the additional RiverRider service area that will be covered by the
Agreement. As you know, RiverRider already provides service to northeast portion of Otsego and has
for many years. The routes for the new service area have not yet been finalized and will be adjusted as
ridership levels are known and frequent, common pick upand drop off locations are identified.
The cost to the four participating cities for RiverRider service depends upon the number of rides taken.
The majorityofRiverRider's fundln�85percent, comes from the State; the local jurisdictions are
meaning that if ridership is high, there may be little or no cost to the local Jurisdictions. If ridership is
low, the participating cities' cost will be higher. Based on the cost data from RiverRider, the total local
share will be approximately $4,,150 per year. Rides currently cost $1.25. To fully fund the service, 3,320
rides are needed per year. Otsego has 20 percent of the parcels in the service area hence is responsible
for 20 percent of the local share after deduction of fare revenue. The maximum cost to Otsego is
approximately $830 (again based on the 2013 cost analysis provided by RiverRider staff.) The 2014
budget includes funds for this service in the Contingency budget.
The Ad rn i In istra tive Subcommittee reviewe d the Agreement at its October 9, 2013, meeting a n d
recommends approval. At that meeting, it was agreed that an informational meeting and notification to
residents through the View and website would occur after RiverRider commits to providing the service.
SUPPORTING DOCUMENTS: X ATTACHED o NONE
RiverRider Transportation Agreement Between RiverRider and the Cities of Albertville, Hanover,,
Otsego, and St. Michael, all in Wright and Hennepin Counties, Minnesota
Cost Analysis from RiverRider
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve the RiverRider Transportation Agreement Between RiverRider and the Cities of
Albertville, Hanover, Otsego, and St. Michael, all in Wright and Hennepin Counties, Minnesota
BUDGET INFORMATION
FUNDING: BUDGETED: Xu YES
General Fund, Contingency Budget in 2014
u NO
ACTION TAKEN
) APPROVED AS REQUESTED o DENIED D TABLED o OTHER (List changes)
COMMENTS-
RIVERRIDER TRANSPORTATION AGREEMENT BETWEEN
RIVERRIDER AND THE CITIES OF ALBERTVMLE, HANOVER,
OTSEGO AND ST, MICI-TAEL, ALL IN WRIGHT AND HENNEPIN
COUNTIES, MINNESOTA
THIS AGRE EMENT made this day of October, 2013 by and between River
I
Ricler a F crigs a political subdivision of the State of Minnesota opettinaJoint Powers
Agreement entity of Slierbum(,m County and Wright County (RIVERRIDER) and
the City of Albettville (ALBERTVILLE), the City of Hanover (HANOVER), tho
City of Otsego (OTSEGO) and the City of St, Michael (ST, MICHAEL)
(collectively CITIES), all municipal corponrltions under the laws of the State of
Minnesota.
WHEREAS, RIVERRIDER and CITIES desire to enter into cm Agveement for
expanded transportationices within the CITIES above and boyond that
currently provided by RIVEA=DER; and
WHEREAS, the Agreement sets forth the terms and conditions for expanded
servim
NOWT THEREFORE, IT IS AGREED between the Parties as follows,
1. RIVERRIDER shall provide ten (10) hours of wcckly service for fifty (50)
ice s per year to CITIES within the area set forth on Exhibit A to this
Agreement. Suvice shall be provided on a consistent seliedule and five, (5)
11OWS Of the service will be pyovided on Tuesday of eacli week an five (5)
hours onanother mutuallyagreed upon (lay based on demandand
1verRider crivaitability.
2. The cost of the ten (10) hours of service within the designatcd arca will be
determined based on PdVERRIDER's formula that calculated the 2013 cost
at $55,00 per hour,
3. RIVEN ISR sh-rall. fund 85% oft e cost (ourrently received from State
and Federal sources), with CITIES Rending a 15% local share to be
allocatedas also set forth mi the attached Exhibit AA
4. In the event that federal and/or state f-Linding of the RIVERRIDER service
decreases by more than 10%, residthig I'll (I focal share of more than 25%
CITIES may withdraw from tl) is Agreement upon t1iirty (3 0) days written
notice. -
5. Upon approval of this Agrcenient, CITIES are liereafter, during the term of
this Agreemetit, obligated to budget for and flied their allocated local share.
6. CITIES shall receive a reductionin their required local. share in the
minimum amount of $1.25 per ride the current cost per rlde)for every ride
with paid fare within the SeMee Area, subject to alloccatim as set forth oil
Exhibit A.
7. Ride fares shall be consistent with ride fares charged inthe fest of
RIVERRIDER's service area. In the event that ride fare charges increase
CITI E S Nvi 11 be credited with j ncreas c d reduction o f lo c a I sha re in
accordance with the increased fare. For exaniple, if the ride fare is raised to
$1.50 per ride CITIES will be entitled to reduction in local share. of $1.50
per ridel
8. In order to provide each CITY with information regarding use of the
seri cc within their resp ective. juris d ict ions, RIVEM DER shall yearly
provide froin available records an accounting of ridership withill each
CITY inchiding; the number of rides, destinations, pickup locations and any
other information requested by CITY or CITIES Avhich will Bell.) thein
evaluate the value of the smices,
9. No hidividual CITY may withdraw ftom this Agreement during its terns
without the written approval of all other participating CITIES. In the event
that an individual CITY is allowed to �irithdrcriw by written approval of the
other CITIES, the remaining CITIES agree to fiffly Rind the inissing Share
of the withdrawing CITY.
10. The routes covered under this Agre enient may expand based upon demand
for additional service, however any such addition of sei-vice atera Shall not
affect the provision of sei-vice within the area designated oil. Exhibit AO
11, If RIV ERRIDER desires to expand service within the service carea above
ten ( 10) hours peri we ek, it sial I roti fy CITIES who can thele reject the
requested service Mire or require modification or arflendnient of this
Agreement.
2
12, All or any of the CITIES which are party to this Agreement may contoct
independently ivith RIVERRIDER for services outside of the service area
as set forth on Exhibit A
13, This Agreement shall rL111 for ca flitee year period comm moing o1i January 1,
20 t 4 and terml nating on D ecember 31, 2016.
14. J"he Agreement shall be renewed for on additional flirce ye-cir term mWer
the same terms and conditions untess RIVERRIDER or the CITIES serves
written notice on the other party at least 90 days prior to the expircation of
the first three year term stating that it is withdrawitig fron-1 the Agreement.
In the event that one or more CITIES wish to N�rfth(lraw froniany extensioli
of this Agreement, th(eit CITY or CITIES shall notify in wrifing the other
CPFIES 90 (lays prior to the (hite for notice of non-renesval. (1 80 days prior
to the expiration of the Agreement term)l
15. In the event of disicigrcement between the CITIES (or betwmi two or snore
CITIES) regarding the inter pret ratim of or terms and conditions of this
Ap,reement, the CITIES shall. mect at least Brien a good faith attempt to
resolve any dispute aniong them. In the event of a disagreement between
the CITIES or any of them) and RIVERRIDER regarding the
interpretation of or terms and conditions of this Agreement, CITIES or any
of them) shall. meet at least twice with RIVERRIDER in a good faith
attempt resolve criny dispute between them,
16. This Agreement shall be construed under the laws of the State of
Minnesota,
17. if any term, cond it! on, or p oration of this Agre ement is liens to b e, i iivcq I i d by
a Court of compotent jurisdiction the remainder of the Agreement sliall be
construed so as to be as close to the original. intent of the Parties as
possible.
18. This Agreement m ay not b e mo d ifi. e d or amen (I c d w i thout written appr ov"a I
of a I I Pa rti e s.
Dated:
91
RIVERRIDER
13y:
Its
Dated:
CITY OF ALBERTVILL
E
Jillian Heii(Irickson, Mayor
Kimberly Olson, City Clerk
Dated:
CITY OF HAN
Chris Kauffi nali, Mayor
4
Alii ta Smythe, City Clerk
Dated,
CITY OF TS GO
Jessica Stoukanip, Mayor
Tanil Loff, City Clerk
Dated:
CITY OF ST, MICHAE L
Jerry Zachnian, Mayor
Diana Berning, City Clerk
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River Rider
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==s I Service Boundaries
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DRAFT 2
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Sept 2013
Albertville - 25% (approx. 2,906 Parcels)
Hanover - % (approx. 1,106 Parcels)
Otsego 20% (approx. 2328 parcels)
St. Michael 46 (approx. 5,379 parcels)
Otsego -Albertville -St Michael -Hanover
Service Hrs
9.00am to 2 Prn
5 hrs service weekly
50 weeks of service yearly
5 hrs x 50 weeks = 250 service hrs yearly
250 hrs x $55.00 per hr of service = $13750.00
$13750.00 annual cost x 85% = $11687.50
$13750.00 annual cost x 15% (local share) = $2062.50 local share
250 hrs service x 5 rides per hr = 1250 rides per year
1250 rides x $1.25 = $1562.50 revenue collection
$2062.50 - 1562.50 = $500 local share shortfall
At this hourly rate ($55.00 per hr) RiverRider would need to provide 1650 rides to make the local share.