Title
CATS Bus Operations Management Contract
Action
Action:
A. Approve a contract with National Express Transit for Bus Operations Management Services for an initial term of three years,
B. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved, and
C. Authorize the City Manager to execute any agreements to transition ownership of Transit Management of Charlotte to National Express Transit.
Body
Staff Resource(s):
Brent Cagle, CATS
Elizabeth Presutti, CATS
Jennifer Fehribach, CATS
Explanation
§ NC General Statute Section 95-98 prohibits municipalities from collective bargaining activities such as those with labor unions. However, a federal law (referred to as “13c”) preserves the collective bargaining rights of certain unions which existed prior to the enactment of the state law.
§ Federal law requires public transit systems that receive federal funds to allow collective bargaining rights to employees necessary for the operations of transit systems.
§ CATS must use a contractor to oversee the administration and management of the day-to-day bus operations and maintenance, as well as to conduct negotiations with the labor unions for bus drivers and mechanics of the Bus Operations Division (BOD).
§ The current management contract is with RATP DEV USA and is set to expire in February of 2024.
§ On April 18, 2023, the city issued a Request for Proposals (RFP); two responses were received.
§ National Express Transit best meets the city’s needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements.
§ National Express Transit will acquire Transit Management of Charlotte (TMOC) and assign three managers to supervise and manage over 700 TMOC employees, including bus drivers, mechanics, and administrative personnel.
§ National Express Transit has proposed an experienced local transit management team for Charlotte to oversee the BOD. The firm will also provide corporate resources for labor negotiations, service optimization, policies and procedures, and system performance audits as requested and/or needed.
§ Potential price adjustments may be considered based on legitimate and justified increases in the cost of doing business. The ability to consider price adjustments also allows the city to accept decreases, if warranted.
§ Annual expenditures are estimated to be $1,578,082.
Charlotte Business Inclusion
Contract goals were not established on this Contract because there were no MWSBEs available to perform the work for the Contract.
Fiscal Note
Funding: CATS Operating Budget
Attachments
Attachment(s)
Action Review Presentation