Fiscal Note
Metro Transit has long-standing cost-sharing agreements with partnering municipalities, institutions and organizations that benefit from transit services. Over the course of 2021, Metro coordinated with partners to evaluate contract changes that benefit both Metro Transit and the partners.
Contracts with municipal partners and MMSD will continue practices that charge partners in proportion to their percentage of vehicle hours to the overall system hours. Contracts will also continue to use a contingency fund supported with partner contributions to fund unanticipated increases in expenses such as fuel. The most significant change to future agreements will be an increase to the size of this contingency fund. The increase in the reserve is expected to better cover unanticipated costs and help partners more effectively budget. The contigency reserve is currently around $2 million and will be increased up to $5 million using Federal COVID rescue funds.
Future agreements with UW Health, Madison College, and the University of Wisconsin-Madison will move to a flat flee. Metro will negotiate with these partners on a rate structure that appropriately shares risks of cost and funding fluctuations.
These updated agreements will not change Metro's current budget. Metro anticipates partner contribution revenues of $5.3 million in 2022.
Title
Authorizing the Mayor and the City Clerk to execute agreements with current and future municipalities, institutions, and organizations, including but not limited to the Cities of Middleton, Fitchburg, Sun Prairie, and Verona, the University of Wisconsin-Madison, Madison College, UW Health, and Madison Metropolitan School District for provision of transit service benefiting these partner municipalities, institutions and organizations.
Body
In order to update contracts with partners to match current practice, provide ease of administration for long-standing contracts and to allow all partners to be able to more effe...
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