ITEM TITLE:
Title
Consider approving a two-year contract extension between the City Transit Trust and Hendrickson Transportation Group, LLC, for the operational management of the Lawton Area Transit System, and authorize the Chairman and Secretary to execute the same.
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INITIATOR: Christine James, Planning Director
STAFF INFORMATION SOURCE: Christine James, Planning Director
BACKGROUND: Since 2019, the Lawton Area Transit System (LATS) has been managed and operated by Hendrickson Transportation Group. The current contract was awarded in 2019 and was for five years with an expiration date of November 30, 2024. The current contract provides for a single two-year extension (to end on November 30, 2026) and outlines the fees for each year (see below). The professional management of LATS has been cost effective and has led to growth in ridership and improved services, therefore the LMPO staff recommends approving the extension.
The fee for each year is outlined in the contract and is to be paid monthly.
Annual total Monthly fee
Year 5 (Current Year): $187,200 $15,600
Extension Option Year 1: $192,000 $16,000
Extension Option Year 2: $196,800 $16,400
EXHIBIT: Existing contract
Extension agreement
KEY ISSUES: Should the contract with Hendrickson Transportation Group for the management of LATS be extended?
FUNDING SOURCE: FTA-50% and local share (City budgeted amount)-50%
STAFF RECOMMENDED TRUST ACTION: Approve the two-year contract extension with Hendrickson Transportation Group, LLC, and authorize the Chairman and Secretary to execute the same.