08-16 •
„OFF,?&,t-
4 s City of Elgin
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July 14, 2011
RE: Resolution No. 08-16
Resolution Authorizing Execution of a Service Agree ent with the Suburban Bus
Division of the Regional Transportation Authority (P E) for Route 554
To Whom It May Concern:
The document listed above was sent out for signatures to anot er entity and an executed copy
was never returned to the City Clerk's office for record retent.on. Attached is the un-executed
copy that was sent out for signature. Thank you.
Resolution No. 08-16
RESOLUTION
AUTHORIZING EXECUTION OF A SERVICE A GREEMENT WITH
THE SUBURBAN BUS DIVISION OF THE REGIO !AL TRANSPORTATION
AUTHORITY (PACE) FOR ROU E 554
BE IT RESOLVED BY THE CITY COUNCIL OF TH 1 CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, be and is hereby authorized and directed t• execute a Service Agreement on
behalf of the City of Elgin with the Suburban Bus Division of the Regional Transportation Authority
(Pace) for Route 554, a copy of which is attached hereto and ade a part hereof by reference.
s/Ed .chock
Ed Sc ock, Mayor
Presented: February 13, 2008
Adopted: February 13, 2008
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
SERVICE AGREEMEN
ROUTE 554
This Agreement made thisday of ' ♦ 2008betw:en the Suburban Bus Division of the
Regional Transportation Authority, (hereinafter refe ,ed to as "Pa'e") and the City of Elgin, Illinois, a
municipal corporation(hereinafter referred to as "Ci ").
WHEREAS, Pace was established under the Regional Transportat on Authority Act(70 ILCS 3615) for
the purpose of aiding and assisting public transportation in the six county Northeastern Illinois area; and
WHEREAS, the City, in equal participation with the Village of S haumburg, Village of Hoffman Estates
and Village of Streamwood, (hereinafter collectively referred to a., "Municipal Participants")have
requested and Pace has agreed to operate a bus route commonly k own as "Route 554", which route is
identified by Exhibit A, attached hereto and made a part hereof, a d
NOW,THEREFORE, in consideration of the mutual promises co tained herein, the sufficiency of which
is hereby mutually acknowledged, the parties hereby agree as follows:
1) Description of Service - Pace will operate Route 554 pursuant 'o the route schedule attached hereto as
Exhibit A.
2) Payment—The City agrees to pay Pace an amount not to exceed $21,101.25 for the year 2008 (12.5%
of annual operating costs of$219,810 less 25% of estimated far box revenue of$25,500) for the
provision of service billed quarterly at an amount not to exceed$,,275.31. Funding calculation is
attached as Exhibit B. Pace reserves the right to increase the ann al rate for subsequent terms based upon
documented increases in the cost of service with a ninety (90) da notice to the City.
Payment shall be made to Pace by the 10`h day of each quarter fo which service is to be provided.
Payment is to be mailed to:
Pace Suburban Bus Service
550 W. Algonquin Road
Arlington Heights, IL 60005
Attn: Accounting Department
3) Term-This Agreement is effective from January 1, 2008 through December 31,2008.
Pace shall reevaluate service costs annually in conjunction with tis Term and provide the City with
notice of the amount of such increase or decrease 90 days prior to the expiration of any term.
4) Service Provision - Pace shall not be responsible for any failur- to provide the Service due to
circumstances beyond the control of Pace. However, Pace shall ake every reasonable effort to restore
Service as soon as practical under the circumstances. Pace shall lave the right to make minor revisions to
the Service during the term of this Agreement upon written notifi ation to and concurrence by Municipal
Participants.
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5)Termination of Service—Pace or a Municipal Participant may erminate this Agreement with sixty (60)
. days advance written notification to Pace and all other Municipal •articipants. In the event a Municipal
Participant elects to terminate said service, the service shall termi I ate with proper notification; however
the remaining Municipal Participants shall have fourteen (14) day, from receipt of notice of termination
to enter into a new agreement with Pace to continue the service. .hould either Pace or the Municipality
elect to cancel this service, billing shall be prorated and payment •hall be only for the service that was
provided prior to the termination of service.
6) Complete Agreement—This Agreement constitutes the entire • greement between the parties hereto,
and supersedes any and all previous Agreements between the part es. Any proposed change in this
Agreement shall be submitted to Pace for its prior approval. No odification, addition, or deletion to this
Agreement shall be effective unless and until such changes are rest uced to writing and executed by the
authorized officers of each party. Each Municipal Participant sha 1 receive a copy of the contract signed
by each of the other Municipal Participants.
7) Notice—All notices due to the other party and Municipal Parti s ipants shall be delivered to the address
indicated below:
Pace Village of Sc aumburg
550 West Algonquin Road 101 Schaum•urg Court
Arlington Heights, IL 60005 Schaumburg, IL 60193-2302
Attn: Thomas J. Ross Attn: Richar• Bascomb
Village of Hoffman Estates City of Elgin
1900 Hassell Road 150 Dexter I ourt
Hoffman Estates, IL 60195-2302 Elgin, IL 60120-5555
Attn: Michael Hankey Attn: Janice Ward
Village of Streamwood
301 East Irving Park Rd.
Streamwood, IL 60107
Attn: Sharon Caddigan
8) Independent Relationship - Pace is an independent contractor .nd not an employee, agent,joint
venturer, or partner of City, and nothing in this Agreement shall •e construed as creating any other
relationship between Pace and the City of Elgin, or between any mployee or agent of Pace and the City.
Pace employees shall at all times remain employees of Pace, whi.h shall be solely responsible for all
aspects of their employment, including, without limitation, comp nsation,benefits,payment or
withholding of taxes, Social Security, Medicare, unemployment •r other insurance, and workers
compensation. This agreement shall not be construed so as to crate a joint venture, partnership,
employment or other agency relationship between the City and . l y Municipal Participant.
9) Severability-The provisions of this Agreement shall be sever,ble. The unenforceability or invalidity
of any one or more provisions, clauses or sentences hereof shall of render any other provision,clause or
sentence herein contained unenforceable or invalid. The portion of the Agreement which is not invalid or
unenforceable shall be considered enforceable and binding on the parties and the invalid or unenforceable
provision(s), clause(s)or sentence(s) shall be deemed excised, m•dified or restricted to the extent
2
necessary to render the same valid and enforceable, and this Agre:ment shall be construed as if such
- invalid or unenforceable provision(s), clause(s) or sentence(s) wer- omitted. The provisions of this
paragraph shall survive the termination of this Agreement for any eason.
10) Binding Agreement- This Agreement supersedes any and all •rior agreements between the parties,
whether written or oral, and shall be binding upon the parties.
11) Authority- Pace and the City represent and warrant that their epresentatives whose signatures appear
below have the power and authority to enter into this Agreement .nd to obligate Pace and City to the
terms of this Agreement.
12) Governing Law - This Agreement shall be construed in accor•ance with the laws of the State of
Illinois.
13) Insurance—Pace shall arrange for the City to be named as an additional insured under Pace's auto
liability policies of insurance with respect to claims asserted agai st the City arising from Pace's
negligent acts or omissions in providing the services described in his Agreement. Pace shall provide
copies of Certificates of Insurance to the City designating the Cit as an additional insured.
14. Defend, Indemnify and Hold Harmless—Pace agrees to defe d, indemnify and hold harmless the
City for all claims, damages, losses and costs of property damage personal injury or death, including
attorney's fees, to the extent caused by the negligent acts or orris-ion by Pace in providing transportation
services under this Agreement within the scope of Pace's Self-Insured Retention and up to the liability
limits of such excess insurance that Pace may purchase. This ind,mnification and hold harmless does not
extend to any negligent or intentional acts or omissions of City.
15. As a condition precedent to the insurance and indemnity •rovided in Paragraphs 13 and 14 above,
City shall provide immediate written notice to Pace of all claims and lawsuits. With respect to any
lawsuit that is within the scope of coverage and/or indemnity aff•rded by paragraph 13 and 14, Pace shall
have the right and duty to defend the City, including the right to elect defense counsel and control the
defense of such lawsuit. In the event of any conflict of interest t at would prevent Pace from controlling
such defense or that would require Pace to allow the City to selec independent defense counsel, Pace will
reimburse the reasonable attorneys fees and expenses incurred in such defense by the City,provided
however that the hourly rates of such counsel shall not exceed the hourly rates ordinarily paid by Pace to
its outside counsel for defense of similar types of lawsuits.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be made effective as of the
date set forth above and executed by their duly authorized officia s.
Pace The City of Elgin
By: By:
Thomas J. Ross E. Schock
Executive Director
Pace Suburban Bus Service ,yor Title
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b
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EXHIBIT B
Route 554 Elgin-Streamwood-Hoffman Estates-Schaumburg
Cost Estimate for 2008
This represents an 11% increase over 1 st year's contract;
And a 2.5% increase over the actual cost to Pai e of this service last year
2007 Costs (In the Contract)
$61.40 Hourly Operational Cost
$773.58 per Day
255 Operating Days
Total Cost for 2007: $197,263.51
2007 Costs(Actual Cost to Pace)
$66.09 Hourly Operational Cost
$841.33 per Day
255 Operating Days
Total Cost for 2007:$214,539.991
2008 Costs (Next Year's Contract)
$67.76 Hourly Operational Cost
$862 per Day
255 Operating Days
Total Cost for 2007: $219,810.00
Community Share Calculation:
50% of total cost for 2007: $109,905.00
Less Est. Revenue Credit: $29,034.30
Net Share: $80,870.70
•
Share per Municipality: $20,217.68
t Based on the average cost of service from January to September 2007
January 18, 2008
TO: Mayor and Members of the City Council /?°,,
FROM: Olufemi Folarin, City Manager
Janice Ward, Senior Planner
aft&
SUBJECT: City Support for Pace Route 554
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PURPOSE
The purpose of this memorandum is to provide the Mayor . d members of City Council with
information to approve the City's 2008 local share contribut on of$20,218 for Pace Bus Route
554.
RECOMMENDATION
It is recommended that the City Council approve funding for Pace Bus Route 554 in the amount
of$20,218.
BACKGROUND
Route 554 began operating in 1996 to provide a transit li between Elgin, Hoffman Estates,
Streamwood and Schaumburg. The route was part of Pace'• Congestion Mitigation/Air Quality
Program and was funded through a federal grant. When fed:ral funding was no longer available
for this service, the Northwest Suburban Mass Transit Distr ct (NWSMTD) agreed to subsidize
the route from 2002 through 2004. In 2005, the NWSMT D ceased to function and the four (4)
participating communities equally funded the entire local sh. e cost of this service.
To continue the operation of Route 554 for 2008, the jurisi ictions again will need to fund the
entire local share cost of this service. The four jurisdiction. collectively will pay $80,871 with
each jurisdiction contributing $20,218, a 10.6% increase fro 2007 ($18,283).
Ridership for this route has averaged 126 riders per day (J. uary through October 2007), which
is sixteen percent (16%) higher than 2006 ridership count. (109 riders per day). Since 2002,
ridership has increased fifty percent(50%), from an average of 84 riders per day to 126 riders per
day.
Pace had intended to establish a new route between Evanstin and Elgin, traveling mainly along
Golf Road. The Evanston to Schaumburg segment be Lan operating in 2005. The route
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City Support for Route 554
January 18, 2008
Page 2
expansion to Elgin was expected to occur sometime between 2108 and 2010, thereby eliminating
the need for Route 554 and local funding. However, due to the uncertainty of future public
transportation funding, Pace has postponed further discussion• concerning the expansion of this
route.
COMMUNITY GROUPS/INTERESTED PERSONS CON ACTED
Villages of Hoffman Estates, Schaumburg, and Streamwood, . d Pace Suburban Bus Service.
FINANCIAL IMPACT
The total 2008 cost for Route 554 is $219,810. Pace has agr:ed to fund 50% ($109,905) of this
cost. Fares from riders are estimated at $29,034 with the res lting local share totaling $80,871.
The local share would be divided equally among the participating jurisdictions, each paying
$20,218. The Riverboat Fund, account number 275-0000-7:1.80-43, project number 039660,
has sufficient funds budgeted($25,000) and available ($25,001) for this expenditure.
LEGAL IMPACT
None.
ALTERNATIVES
1. The City Council may approve the City's $20,218 contribution towards the local share
cost.
2. The City Council may not approve the financial contr bution towards the local share cost,
thereby electing not to participate in the continuation of Route 554.
Respectfully submitted for Council consideration.
JAW
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