* Cammunity Development 589-3095
City of Nashua Planning and Zoning 589-3090
. soe Building Safety 589-3080
Community Development Division Cade Enforcement 589-3100
City Hall, 229 Main Street, PO Box 2019 Ce eras mmission 589-3405
Nashua, New Hampshire 03061-2019 Transportation 380-0100
www. nashuanh.gov FAX 589-3119
Date: September 28, 2020
To: Donchess, Mayor
From: Sarah Marchant, Community Development Division Director
Re: AMENDMENT TO TRANSIT OPERATIONS CONTRACT
The Division of Community Development, Transportation Department is proposing a contract
amendment to the existing five-year contract for Transit Operations Services with First Transit.
In June of 2019, the City of Nashua entered into a five-year contract for Transit Operations with the
option to extend for up to three (3) years at one (1) year intervals with First Transit. The contract
was awarded through an RFP process in accordance with the City’s purchasing policy and the
FTA’s procurement guidelines.
The contract amendment changes the language to Section 5. Compensation a Contracting Fee as by
replacing the Variable Costs with the following:
Variable Year 1 Year 2 Year 2 Year 3 Year 4 Year5
Costs; (7/1/20 — (12/1/20 —
11/30/20) 6/30/21)
$28.90/hr 3 30.85/hr = 5 33.82/hr gq payne = $35.96/hr _-$ 37.06/hr
Since the original contract was executed, the transportation industry in the northeast has
experienced a significant decrease in available CDL and non-CDL drivers, driving up industry
wages in the region. Many surrounding transit and school bus agencies have struggled to
successfully hire and retain staff to maintain their operations and have had to raise wages
significantly. The COVID-19 situation has only exacerbated this situation. First Transit is
currently facing a dire situation where operation costs must rise in order to hire and maintain a fully
staffed operation. In order to do this the First Transit contract will be increased by $372,057 over
the remaining three and one half years of the contract, an increase of approximately 3% of the
overall cost.
The Transportation Department finds First Transit is a responsive and responsible contractor.
The proposed changes are shown on the following page.
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