Title
Consider a resolution authorizing the Mayor to execute Amendment No. 2 to the Interlocal Agreement with Capital Metropolitan Transportation Authority (Capital Metro) for transit services.
Body
This amendment will increase the current agreement amount by $388,201 to $5,246,443 in order to extend the term of the ILA and make up for the loss of farebox revenue.
The City entered into a five (5) year ILA with Capital Metro in 2017, which is set to terminate on July 31, 2022. This amendment will extend the agreement by two months with a new termination date of September 30, 2022. This will allow the additional time to complete the Transit Development Plan and allow the contract dates to coincide with both the City's and Metro's fiscal year.
During the initial stages of COVID-19 the City reduced service hours, suspended fares and had a decline in rider ship, which directly related to the reduction in fare collections. The contract amount between the City and Capital Metro included a fare box recovery rate which is deducted from the overall costs.
The following is the breakdown of the amounts to be included in the Amendment #2 with Capital Metro:
Contract R-2018-6060 $4,858,242
Shortfall Farebox Revenues $186,261
Additional Two Months $201,940
Total Amendment #2 $5,246,443
Cost: $388,201.00
Source of Funds: General Fund