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: KANSAS CITY, MISSOURI KCATA
AGREEMENT FOR
2010-2011 TRANSIT SERVICE
AND
SHARE-A-FARE ADMINISTRATION
(May 1, 2010 April 30, 2011)
THIS AGREEMENT, entered into this ___ day of ____, 2010, by and between the KANSAS CITY AREA TRANSPORTATION AUTHORITY, a body corporate and politic and a political subdivision of the states of Missouri and Kansas, (herein referred to as the KCATA), and KANSAS CITY, a municipal corporation of Missouri, (herein referred to as the CITY).
WITNESS that:
WHEREAS, a sound, efficient, viable, and regional public transportation system is essential to the socioeconomic well-being of the Kansas City Area Transportation District (hereinafter referred to as the District), including the Counties of Cass, Clay, Jackson and Platte in Missouri and the Counties of Johnson, Leavenworth and Wyandotte in Kansas; and
WHEREAS, the KCATA was created by legislation of the States of Missouri and Kansas and consented to by the Congress of the United States; and
WHEREAS, the KCATA is a public agency authorized by law to plan, own, operate, manage and generally deal with public transportation systems and facilities in the District; and
WHEREAS, the KCATA owns, operates, and manages public transportation facilities in the District for the benefit of all the citizens who reside therein; and
WHEREAS, the City desires to provide a reliable, efficient, and regional public transportation system which meets the mobility needs of its residents within the limits of available funds; and
WHEREAS, Section 92.418.1. of the Revised Statutes of Missouri authorizes the City to expend monies from the Public Mass Transportation Fund for motor pool operations to provide special transportation services to elderly and disabled citizens of Kansas City (herein called paratransit); and
WHEREAS, the KCATA has requested authorization to expend monies from the Public Mass Transportation Trust Fund for motor pool operations to provide special transportation services to elderly and disabled citizens of Kansas City and those who need transportation for the home-to-work commute, but cannot use public transit for one or both of the daily trips; and
WHEREAS, as authorized by Section 94.605 of the Revised Statues of Missouri, the City enacted a 3/8 percent City sales tax effective April 1, 2004 for a period of five years and renewed effective April 1, 2009 for a period of fifteen years for the purposes of operating, maintaining, equipping and improving the transit system provided by the KCATA for the City, and that all monies generated by the tax, that are not otherwise obligated by tax increment financing (TIF) statutes, should be remitted to the KCATA on a monthly basis.
NOW, THEREFORE, for and consideration of the premises and the mutual covenants and Agreements hereinafter contained, the parties hereto agree as follows:
PUBLIC MASS TRANSIT SERVICE
The City requests that public mass transportation services (hereinafter referred to as Contract Services), set forth in Attachment D and in accordance with Attachment A, both of which are attached, be provided by the KCATA for the period of May 1, 2010 through April 30, 2011, and the KCATA agrees to provide said requested services in accordance with the terms of this Agreement. The service, as generally set forth in said Attachment D, shall not be changed or modified without the consent of the City.
Should the KCATA or the City desire to modify the route information shown in Attachment D, it shall give the other party notice of the proposed modification in writing. If no objection is offered by the party receiving notice, said proposed modification shall become effective thirty (30) days after the date of notice. If an objection is offered, the parties will meet and attempt to reach a mutual agreement concerning the proposed modification.
By the 28th of the month following the month in which service was provided, the KCATA will provide the City with a report showing operating costs, and revenue for Contract Services. The report will detail local, federal, and state share amounts used to cover the months service deficit. The report will also show the vehicle miles operated, passengers, revenue, expenses, net income or loss for each route and the revenues and expenses allocated to other communities served by inter-city routes and those items indicated on Attachment E, which is attached hereto and incorporated herein by reference. The monthly report shall be in the form that will permit computations as shown on Attachment E. Separate reports shall be made available for transit service provided with regular buses and for service provided with small buses. The KCATA further agrees to provide the Director of Public Works with monthly financial statements, which shall reflect the items, specified above, hereof, and such other additional information as shall be reasonably requested by the Director of Public Works. This shall include a monthly report of average ridership for all routes by weekday, Saturday and Sunday, and the monthly Maintenance Status Report.
In addition, the KCATA will provide the City with a monthly report showing the amount received from the State of Missouri for the seven and one-half percent capital improvements portion of the Public Mass Transportation Fund.
The computations, and more specifically the procedures described in Attachment C, attached hereto and made a part hereof, are the accepted methods of the determination of the operational cost of the Contract Service.
II. SHARE-A-FARE ADMINISTRATION
The City and the KCATA hereby agree that the KCATA shall perform all functions necessary for the administration, management and operation of paratransit for the period beginning May 1, 2010 and ending April 30, 2011. One of these functions shall involve continuation of the Share-A-Fare Advisory Committee on which a representative of the City shall continue to serve for the duration of this Agreement.
The KCATA shall render regular monthly reports to the Citys Director of Public Works which shall include such information as the number of participants served (both those over 65 and disabled), the number of trips taken, the average cost per trip, the average trip length and a general statement regarding suggested changes in policy of a significant nature, such as eligibility standards. All major policy changes must receive the approval of the Director of Public Works prior to their implementation. The City shall have the right to inspect the books and records of the KCATA pertaining to paratransit at any time during regular business hours. The KCATA agrees to respond to requests of the City for reports of a general or special nature concerning paratransit.
In that the KCATA will be acting in the capacity of the Citys agent in administering the Program pursuant to the terms and conditions set forth in section V below, the City agrees to defend the KCATA and settle claims and pay any judgments entered against it arising out of the negligent acts or omissions of the KCATA hereunder. The City will be reimbursed for any such losses from motor pool operations monies of the Public Mass Transportation Fund.
III SPECIALIZED SERVICES
The City and the KCATA hereby agree that the KCATA shall maintain a Specialized Services Unit for the purpose of developing, implementing and providing operational support for services which are established to meet transportation needs not being met by public transit in the Kansas City area. These services can include, but are not limited to, reverse commute transportation which links the economically disadvantaged and the unemployed with suburban job opportunities and a vanpool program which will provide an alternative to single occupant vehicle travel to and from jobs.
The KCATA shall enter into an agreement between the KCATA and a third party for transportation referral services.
IV. MAXIMUM OBLIGATION, METHOD of REIMBURSEMENT & REMAINING MONIES
MAXIMUM OBLIGATION
The operating expenses (direct and indirect) to be incurred by the KCATA in providing Contract Services under the terms of this Agreement are estimated to be not more than $68,527,466. The City and the KCATA estimate that $10,143,028 of these expenses will be covered by the KCATA from passenger fares.
It is agreed that the KCATA will make application to obtain funds from the Federal Transportation Administration (FTA) for operating expenses of providing transit service to the City under terms of this Agreement. The combined Federal and State amount plus other credits attributable to services under this Agreement is $13,410,797. Should a lesser amount be received, the parties understand that the KCATA will be in need of additional local funding.
The Citys estimated obligation for all services identified in sections I, II, and III of this Agreement is $40,605,126. Components of the obligation are: (1) $19,870,641 from the Public Mass Transportation Fund and (2) $20,734,485 from the KCATA 3/8-cent Sales Tax.
METHOD of REIMBURSEMENT
It is also agreed that the City will reimburse KCATA for the Citys estimated obligation of the local share portion of the operating loss for monthly services described in sections I, II, and III. One-twelfth, $1,655,887, of the Public Mass Transportation Fund amount described in section IV.A.3. will be provided electronically by the tenth day of the month service will be provided.
The City will provide electronically to KCATA one-twelfth, or $1,727,874, of the 3/8-Cent Sales Tax as described section IV.A.3. by the tenth day of the month service is provided.
The City and KCATA may mutually agree to amend this Agreement to provide additional operating subsidy or to adjust the level of service so that the cost of such service will not exceed the amount stated above. When the estimated total local share portion of the operating loss is reached, KCATAs obligation to furnish services shall terminate.
The KCATA recognizes that the contributing source of funds for the Citys payments hereunder is the Public Mass Transportation Fund and the KCATA 3/8 percent Sales Tax. Should the revenues available from these taxes prove insufficient to pay the local share portion of the operating loss, this Agreement shall be amended to reduce the Citys obligation hereunder so as not to exceed the amount available.
The City recognizes that the federal amount attributable to services under this Agreement as identified in section IV.A.2 is dependent on the amount of funding allocated by the FTA. Should the funding made available from the FTA be less than the estimate included in this Agreement, the parties understand and agree that this Agreement may be amended to increase the Citys obligation hereunder or reduce the amount of service provided so that the cost of the service does not exceed the total funding available.
In order to provide the KCATA funds needed for timely payment of expenses incurred in providing services under this Agreement, the City agrees to advance from time to time, additional amounts as needed to prevent cash flow problems, but not to exceed a total of $2,000,000. The KCATA agrees to repay any such advance(s) as promptly as possible but in no event later than the reconciliation period at the end of the contract.
REMAINING MONIES
If monies remain following the final April, 2011 payment of any or all of the local share for public mass transit service, or receipts from the 3/8-cent transportation sales tax, the KCATA may apply such remaining monies to any deficiency in either the local share for public transit service or the Citys share of Share-A-Fare costs or place monies in a reserve fund for future expenses of City public transportation operated, maintained, equipped and improved by the KCATA.
GENERAL CONDITIONS
It is a condition of this Agreement that the KCATA, as a contractor doing business with the City, or any contractor, acting in any way as a subcontractor under this Agreement, agrees to refrain from any unlawful employment practice as presently defined in Section 38-131, Code of Ordinances of Kansas City, Missouri; and further, the KCATA agrees to implement the Certificate of Compliance of Affirmative Action Program as submitted in connection with this Agreement and that, the KCATA shall be bound by the terms of Article II, Section 38-31 and Rules and Regulations promulgated for administration of Section 38-31.
The KCATA, or any subcontractor employed under this Agreement, is hereby deemed to agree to permit the Director of Human Relations, his duly, authorized agents or employees, access at all reasonable times to all such persons, books, papers, records, reports or accounts in which the Affirmative Action Program is filed, and to furnish such further information as may be required by the Director of Human Relations all within ten (10) days of the date requested, in writing.
If the KCATA shall fail, refuse or neglect to comply with the terms of these Agreement conditions, such failure shall be deemed a total Breach of Agreement, and the KCATA or its subcontractor shall be subject to the provisions in Article II, Section 38-83 relating to failure to comply.
The City will monitor KCATA performance under this Agreement by jointly established performance measures that seek to implement the Citys Public Transit Policy which is Attachment A to this Agreement. These performance measures are identified in Attachment B to this Agreement. KCATA agrees to cooperate in attaining and reporting these established performance measures. KCATA will provide semi-annual reports covering these performance measures. Each report will be jointly reviewed by the Citys liaison and other interested City and KCATA representatives.
The KCATA shall indemnify, save and hold the City harmless from any and all damage, loss or liability of any kind whatsoever, including, but not limited to, any loss occasioned by reason of any injury to property or third persons occasioned in whole or in part by any act, omission, neglect or wrong doing of the KCATA or any of its officers, agents, representatives or employees of the KCATA. At its own costs and expense, the KCATA will defend all losses arising therefrom in providing services described in section I of this agreement.
The KCATA and the City agree that the City is not a party in any of its labor negotiations with the Amalgamated Transit Union (Local 1287).
In compliance with Sect. 2-113 of the Code of Ordinances of Kansas City, Missouri, the KCATA shall engage a Certified Public Accountant (CPA) to conduct a financial audit. The CPA in turn shall submit the audit, a management letter and a response to the management letter, an internal control structure analysis and report to the City Auditor within six (6) months of the end of the year of the KCATAs fiscal year.
Recognizing KCATAs valuable partnership with the City of Kansas City, Mo., KCATA will provide the following complimentary bus advertising to promoted City programs, departments, events or other public service information: (1) full bus wrap per year; (100) interior signs per month; (10) kings or tails per month. Many City advertising needs can be funded through grants. Whenever possible, grants should be sought to help offset revenue loss from the transit advertising. Space is only offered on the rear and streetside of buses. At times, space has been at capacity; therefore, complimentary advertising is available only on a space-available basis. All City requests should be coordinated through the Public Works Department. This agreement applies to space only. All production and installation fees must be paid at the Citys cost.
The KCATA and the Kansas City Office of Emergency Management (OEM) cooperatively developed a mass evacuation operational plan for Kansas City that includes the use of KCATAs buses. The mass evacuation operational plan is included in the Kansas City Local Emergency Operations Plan (LEOP). The LEOP defines: 1) who may activate KCATA resources on behalf of the City; 2) KCATA contact information in case of activation of the plan; 3) the KCATA resources and routes to be utilized; 4) procedures for prioritizing KCATA resources when there are conflicting demands for service; and 5) a cost recovery plan recognizing that KCATA has limited funding resources.
The City, at its expense, shall have the right to cause an audit to be made of the books and records of the KCATA and the KCATA agrees to make all such records available to the City for the auditors upon the reasonable request of the City.
The KCATA agrees to cooperate fully with any performance audit conducted by the City Auditor on behalf of the City.
VI The following are attachments to the Agreement:
Attachment A - Public Transit Policy for the City of Kansas City, Missouri
Attachment B - Performance Measures
Attachment C - Revenue and Cost Allocation Procedures
Attachment D - Contracted Services, City of Kansas City, Missouri
Attachment E - Monthly Operational Report Format (by reference)
In WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.
Kansas City, Missouri KANSAS CITY AREA
A Municipal Corporation of Missouri TRANSPORTATION AUTHORITY
______________________________ _____________________________
Stanley J. Harris, P.E. Mark E. Huffer
Director of Public Works General Manager
Approved as to form and legality:
_________________________
Assistant City Attorney
I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
__________________
Director of Finance
PAGE
PAGE 8
Main Agreement 2010/2011(Draft # 3)
Bryan, please review and comment on Section II.
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