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ITEM 6.1 RiverRider Transportation AgreementC.,,go 0 F ot MINNESOTA DEPARTMENT IN -FORMATION Req � for |�����n City x����� '����~U Action 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 1 .`F1 A ar k ti jr x.31 � �" _ � ipCC_'� .�� _ :` - �; ' S 3 IM EC 3:77 -h-LEl — -- fT '11 �-�."'e�� •l7 _.�� _t }— � ry � kms. rkt —z,_ y { r q Fj, -73 Y• 71— �4�F� 171Fz.a moi. -��Y—� _ ji — LT- _. I ❑ y77 - River Rider i ==s I Service Boundaries r=T DRAFT 2 T 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.