SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or his designee, to finalize and execute an Interlocal Agreement with the University of Texas at Austin for bus services and fare programs for an estimated revenue of $21,050,000 for a period of three years starting September 1, 2021.
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FISCAL IMPACT:
This action reimburses Capital Metro for expenses incurred.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Internal/External Customer Service Excellence ☒ 2. Stakeholder Engagement
☒ 3. Financial and Environmental Sustainability ☐ 4. Staff Development ☐ 5. Agency Growth Management
Strategic Objectives:
☐ 1.1 Safety & Risk ☐1.2 Continuous improvement ☐ 1.3 Dynamic Change
☐1.4 Culture of Innovation ☐2.1 Be an Employer of Choice ☒2.2 Organization Development
☐2.3 Organization Culture ☒3.1 Resource optimization ☐3.2 Safety Culture
☐3.3 Environmental Leadership ☐4.1 Educate & Call to Action ☐4.2 Build Partnerships
☐4.3 Value of Transit ☐4.4 Project Connect
EXPLANATION OF STRATEGIC ALIGNMENT: This is a revenue-generating agreement which provides for a cost-sharing arrangement to provide public transportation services. This long-standing partnership with the University of Texas at Austin assists with campus mobility and parking concerns while increasing public transit usage.
BUSINESS CASE: University service fulfills the transit demand generated by a major activity center and employer in our service area. The cost recovery for this agreement exceeds what is collected via traditional fare collection on other fixed route services.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Operations, Planning and Safety Committee on August 18, 2021.
EXECUTIVE SUMMARY: Capital Metro has partnered with the University of Texas at Austin since 1989 to provide shuttle bus services for the use and benefit of the University and the Austin community. The current agreement began on September 1, 2018. The current agreement expires on August 31, 2021.
The University bus service is comprised of 10 routes and serves over 3 million annual riders. The University service routes are part of Capital Metro’s MetroBus service category (600-series route numbers) and may be utilized by all Capital Metro customers. These services are designed in collaboration with the University and changes are approved by the Capital Metro board alongside other bus service changes. This three-year agreement will allow for continuation of these services at existing service levels of approximately 90,000 annual vehicle hours.
This agreement also allows UT students, faculty, and staff to ride all Capital Metro services without paying a fare.
In exchange for these services, the University will compensate Capital Metro as follows: September 1, 2021 to August 31, 2022 $ 6,850,000
September 1, 2022 to August 31, 2023 $ 7,000,000
September 1, 2023 to August 21, 2024 $ 7,200,000
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Chapter 791 of the State of Texas Government Code encourages governmental entities to increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another. In doing so, local governments are permitted to forego the requirements of full and open competition and contract directly with one another.
RESPONSIBLE DEPARTMENT: Operations
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2021-134
WHEREAS, since 1989 Capital Metro and the University of Texas at Austin have partnered to provide bus service for the use and benefit of the University of Texas at Austin; and WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to continue this arrangement to support Capital Metro’s mission of utilization of public transportation and the reduction of single occupancy vehicles.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or his designee, is authorized to finalize and execute an Interlocal Agreement with the University of Texas at Austin for bus services and fare programs for an estimated revenue of $21,050,000 for a period of three years starting September 1, 2021.
____________________ Date: ____________________
Secretary of the Board
Eric Stratton