Fiscal Note
The proposed resolution updates agreements with organizations, such as partner municipalities, utilizing Metro Transit service. Previous contracts utilized a contingency reserve shared by all partners to fund unanticipated increases in expenses. Under new contracts, unexpected cost increases will be handled by automatic adjustments to future rates. Metro has coordinated with partners over the course of 2023 and 2024 to structure the updated contracts.
These updated contracts will not change Metro’s current budget. Metro’s 2024 adopted operating budget includes $9.6m in partner revenues. A separate resolution (File #81915) being considered simultaneously would increase budgeted partner revenues due to expanded service to partners.
Title
Authorizing the Mayor and the City Clerk to execute agreements with current and future partner municipalities, institutions, and organizations for provision of transit service benefiting these partners, as well as Authorizing the General Manager of Metro Transit to maintain such agreements through Memorandum(s) of Understanding
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In order to update contracts with partners to match current practice, provide ease of administration, allow partners to more effectively budget and plan for transit service, ensure compliance with applicable law, and ensure good accounting practice, Madison and Partners have updated the existing standardized contracts for bus service.
The standard contact for each partner, which will automatically renew in five-year periods, will be supplemented with Memorandums of Understanding to address costs, revenues, hours, rates, routes, service, mileage, and estimates, as well as to ensure legal, accounting, and/or regulatory compliance.
Metro will bill partners a flat fee, or flat per hour fee, which appropriately shares risks of cost and funding fluctuations with the partner to streamline the calculations of appropriate costs for these entities within the City of Madison.
For Municipal Partner...
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