Resolution authorizing the City Manager to execute a contract with Minnesota State University, Mankato for public transit services.

Adoption of the attached resolution.  

Minnesota State University, Mankato is requesting public transit services that will be commonly referred to and marketed as: 

• Campus Express
• Route 1A North
• Route 1A South
• Route 1B North
• Route 1B South
• Route 8 Campus Circulator
• Route 9 Morning Express
• Route 12 Nighttime Express
• Route 33 Stomper Express

The City of Mankato Transit System provides service for Minnesota State University, Mankato on an annualized basis. The university shares the cost of service through reimbursement for required matching funds and capital replacement costs.

Per the agreement, the university will pay the City of Mankato based on a per hour rate of $105.00 for the fixed routes and episodic service except for the following: 

• The Thursday, Friday and Saturday Route 33 Nighttime Stomper Express, which operates during the university's academic school year, is funded through a shared arrangement between the city and the university.
   

The university will pay the city $7,500 per semester, in recognition of the lost cash fare and bus pass sales that will occur because university students, faculty, and staff are able to board any city bus with their MavCard.

The university agrees to make two payments based upon the following schedule upon invoicing:

 

Dates	Amount Due (estimate)
Fall Semester 2021, due Friday, March 10, 2023	$264,565.00
Spring Semester 2022, due Friday, July 1, 2023	$270,581.00
Total	$535,146.00

This includes the University Fall Semester and lost revenue on any city bus from the MavCard. The university is still responsible for shares of capital replacement and other non-grant eligible costs. 

Paratransit service for eligible mobility challenged riders and Demand Response (KATO Flex) will be charged at rates published by the city.

This agreement is contingent upon approval of the federal resources from the Urbanized Area Formula Funding program (49 U.S.C 5307) through the Minnesota Department of Transportation Office of Transit and Active Transportation. The Urbanized Area Formula Funding Program authorizes grants to public transit systems in urban areas with populations of more than 50,000 for both capital and operating projects. Based on population and density figures, these funds are distributed directly to the transit agency from the Federal Transportation Administration.

The federal and state funding share totals 80 percent of eligible costs incurred through operations of the Fixed Route. The city provides the balance of eligible expenses through a local match that includes:

• Cash from nongovernmental sources i.e., farebox revenue
• Non-farebox revenues from the operations of public transportation services, such as the sale of advertising and concession revenues i.e., Interior and exterior bus advertising on the two buses used to provide all day service on the Campus Express and the Campus Circulator routes.
• Amounts received under a service agreement with a state or local service agency or private social service organization i.e., Minnesota State University – Mankato and North Mankato.
• Amounts appropriated or otherwise made available to a department or agency of the government i.e., transit property tax levy of $165,000.

Ineligible expenses include charter bus operations, sightseeing services, services wholly outside the urbanized area, capital replacement funding, or school bus operations, etc.