Submitted By: Tye Chighizola
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Presentation By: Tye Chighizola
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve an amendment to the agreement between RATP Dev and the City of Ocala concerning wage increases for Suntran employees
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND: The City has been working with Federal Transit Administration (FTA), the Florida Department of Transportation (FDOT), and RATP Dev to amend our operation and maintenance contract to address low wages for the bus drivers and support personnel. The amendment is approximately one year after a new contract with RAPT Dev was approved by City Council. Since that time, RATP Dev started losing staff and other transit providers in Florida were amending their agreements to raise wages.
Currently, the starting wage for a bus driver is $11.68 per hour, $17.00 per hour for supervisors, and $22.00 per hour for maintenance staff. Staff is requesting to increase the starting wages for drivers to $16.00 per hour, supervisors to $21.25, and maintenance to $25.30. The proposal represents a 36.99% increase for drivers, 25% for supervisors, and 15% for maintenance workers.
FINDINGS AND CONCLUSIONS: The proposed increase is needed to compete with other transit systems, local school bus drivers, and other employers hiring drivers needing a Commercial Driver’s License. Recently, City Council approved a bonus system for one year while staff and RATP Dev prepared an amendment to the contract consistent with FTA guidelines.
FISCAL IMPACT: The amendment will impact the remaining two years of the contract and the three-year renewal period if warranted. The salary increase will cost add additional $394,630 for year 2 and $337,010 for year 3. The overall increase in the contract for years 2 thru 6 will amount to $1,957,070 based on 33,500 annual revenue vehicle hours. The City applies for FTA 5307 grant funding and FDOT Public Transit Grant Agreement (PTGA) funding to help pay for the operation of SunTran. The services RATP Dev provides is divided into the Capital Cost of Contracting and Operations in terms of FTA 5307 grants. Of the $1,957,070 increase, a traditional 5307 FTA Grant will pay $1,174,242 for the capital cost of contracting and $391,414 operating. A FDOT PTGA Grant for operating will pay $195,707 for operating leaving the City to pay $146,781 and Marion County $48,927 based on the existing interlocal agreement percentage splits of 75/25.
PROCUREMENT REVIEW: The contract amendment was prepared by the procurement staff.
LEGAL REVIEW: The contract amendment is pending review by City Attorney, Rob Bastel, Jr.
ALTERNATIVE:
• Approve with changes
• Deny
• Table