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CASE # '1 <br />CONSIDER EXTENDING SERVICE CONTRACT FOR RAMSEY STAR <br />EXPRESS COMMUTER COACH SERVICE <br />By: Leonard Linton, Civil Engineer II <br />Background: <br />The City of Ramsey has successfully operated the Ramsey Star Express Commuter <br />Coach service since January 2007. Ridership has increased almost every month that the <br />service has operated.. There was a significant increase in riders in the spring of 2008 as <br />gas prices rose to record levels. Demand has not decreased even as gas prices have fallen. <br />Graphs for Average Daily Trips and Monthly Total Trips are attached to the case. <br />The City entered into a Joint Powers. Agreement with the Northstar Corridor <br />Development Authority (NCDA) in order to be part of a larger contract which kept <br />operating expenses lower. The initial service contract was for a period of two years and <br />will expire March 31, 2009. The contract has provisions for five (5) six month <br />extensions. The NCDA contract for the North Star Commuter Coach also expires March. <br />31, 2009. NCDA will be exercising their first option at their board meeting March 5. <br />The Ramsey request for extension will. be forwarded to the NCDA for approval and <br />inclusion in the contract extension if approved by the City Council. <br />A federal grant was obtained which covers 80% of the cost of the service. The City is <br />responsible for the remaining 20%. A chart showing the cost per ride and total rides per <br />month is attached: The cost per ride has declined as the number of riders has increased. <br />.Funding Source: <br />The funding source is the Landfill Trust Fund. The City share of the Commuter Coach <br />Service for 2008 was $68,700 which is $5,700 per month. <br />Recommendation: <br />Staff recommends authorizing Exercise of the first 6 month contract extension for the <br />Ramsey Star Express Commuter Coach Service. <br />Council Action: <br />Motion authorizing Exercise of the first 6 month contract extension for the Ramsey Star <br />Express Commuter Coach Service. <br />Reviewed by: <br />Director of Public Works/ Principal City Engineer <br />City Administra~ <br />CC: 02/24/09 <br />-215- <br />