Title
Amendment to Agreement with MV Transportation, Inc., for the Provision of the OC ACCESS Service
Overview
On March 25, 2013, the Orange County Transportation Authority Board of Directors approved an agreement with MV Transportation, Inc., for the management and operation of OC ACCESS service. This agreement was subsequently extended through December 31, 2021, and compensation is based on a fixed rate and a variable rate driven by the number of revenue vehicle hours provided. The coronavirus pandemic and the Governor Newsom’s stay-at-home orders have resulted in a significant reduction in OC ACCESS ridership of more than 80 percent. Consistent with the terms of the agreement, MV Transportation, Inc., has requested an adjustment to the variable hourly rate to relieve uncompensated expenses incurred as a result of the coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Security Act of 2020 specifically provides funding for this relief with guidance from the Federal Transit Administration. Board of Directors’ approval is requested to amend the agreement with MV Transportation, Inc., to adjust the variable hourly rate in order to relieve uncompensated expenses resulting from the coronavirus pandemic.
Recommendation(s)
A. Authorize the Chief Executive Officer to execute Amendment No. 10 to Agreement No. C-2-1865 between the Orange County Transportation Authority and MV Transportation, Inc., to revise the variable hourly rate for the period of April 2020 through December 2021, in the amount not to exceed $10,548,201. This amount can be accommodated within the agreement’s current cumulative maximum obligation of $375,620,065.
B. Amend the Orange County Transportation Authority Fiscal Year 2020-21 operating revenue and expense budget, in the amount of $5,050,615, to accommodate expenses related to the current coronavirus pandemic based on revised variable hourly rates.