--- ## title: CITY OF SAINT PETER, MINNESOTA ## author: City Administrator's Office date: D:20260713165938-05'00' --- ## A ## GENDA AND NOTICE OF MEETING ## MINNESOTA RIVER VALLEY TRANSIT JOINT POWERS BOARD Tuesday, July 14th, 2026 – 2:30 p.m. ## Traverse de Sioux Room #102 ## Saint Peter Community Center ## 600 S. Fifth Street, St. Peter ## I. CALL TO ORDER ## I ## I. APPROVAL OF AGENDA ## II ## I. APPROVAL OF MINUTES/DISBURSEMENTS ## A.Minutes of May 12, 2026 Regular Meeting B.Disbursements List Approval – May 1, 2026 – June 30, 2026 ## I ## V. VISITORS ## V.O ## LD BUSINESS ## None ## VI ## . NEW BUSINESS A.Procurement Policy – p. 7- 46 B.Saint Peter Lease – p. 47-54 C.Gus Bus Contract – p. 55-58 D.Budget/Grant – p. 59-65 ## V ## II.REPORTS ## A.Operation Manager Report (Sandi) a.Use Statistics b.General Updates ## c.Bus Maintenance and Use Updates d. ## S oftware process and updates ## B . ## C ompliance Manager Reports (Sherri) a.General Updates b. ## N ## ew Bus Updates c. ## S taffing Updates ## C.A dministration Reports a.Financials (Perry) b. ## Leas e updates c.Other updates ## V ## III.ADJOURNMENT ## MINNESOTA RIVER VALLEY TRANSIT ## OF ## FICIAL PROCEEDINGS ## M ## INUTES OF THE BOARD MEETING May 12, 2026 Pursuant to due call and notice thereof, a regular meeting of the Board of Minnesota River Valley Transit was conducted on May 12, 2026 in the Saint Peter Community Center. ## A quorum present, Chairperson Huntington called the meeting to order at 2:30 p.m. The following members were present: Josh Weisenfeld (City of Saint Peter representatives) and Kay Nelson (City of Le Sueur representative). The following officials were present: Saint Peter City Administrator Todd Prafke, Le Sueur City Administrator Joe Roby, Saint Peter Finance Director Perry Solheim, MRVT Operations Manager Sandi Owen, MRVT Compliance Manager Sherri Terhurne. ## A pproval of Agenda – A motion was made by Nelson, seconded by Weisenfeld, to approve the agenda. With all in favor, the agenda was approved. ## A pproval of Minutes/Disbursements – A motion was made by Nelson, seconded by Weisenfeld, to approve the minutes of the March 10, 2026 regular meeting. With all in favor, the motion carried. ## A motion was made by Weisenfeld, seconded by Nelson, to approve the disbursements from March 1, 2026 – April 30, 2026. Upon roll call, with all in favor, the motion carried. ## O ld Business There was no old business. ## N ew Business There was no new business. ## R eports ## O perations Manager Report – Operations Manager Owen reported a decrease in ridership between March and April. Owen noted that Gustavus College would continue to promote Gus Bus for the new school year. Owen also noted that ridership in Le Sueur has increased and there continues to be Summer Fares for kids and the Read & Feed program continues. ## C ompliance Manager Report – Compliance Manager Terhurne shared information on software priorities and process. Terhurne also shared staffing updates. ## A dministration Report – Saint Peter Finance Director Solheim reported on financials. Prafke reported that a new lease for the Saint Peter location will be coming to the board at the next meeting. ## Ther e being no further action, a motion was made by Weisenfeld, seconded by Nelson, to adjourn. With all in favor, the meeting adjourned at 3:10 p .m. 2 ___________________________________ ## Mark Huntington ## Chairperson ## ATTEST: ______________________________ ## Todd Prafke ## Saint Peter City Administrator 3 ## Account Account NameDescriptionVendor NameAmountDate ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 4/26/2026CITY OF ST PETER40.8005/01/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 4/26/2026CITY OF ST PETER12628.5905/01/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 4/26/2026CITY OF ST PETER5144.8005/01/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 4/26/2026CITY OF ST PETER3525.7605/01/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 4/26/2026CITY OF ST PETER4087.8405/01/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/10/2026CITY OF ST PETER11330.3805/15/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/10/2026CITY OF ST PETER5144.8005/15/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/10/2026CITY OF ST PETER3559.3205/15/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/10/2026CITY OF ST PETER3655.4805/15/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/24/2026CITY OF ST PETER11367.1605/29/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/24/2026CITY OF ST PETER111.6005/29/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/24/2026CITY OF ST PETER5144.8005/29/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/24/2026CITY OF ST PETER2961.5605/29/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 05/24/2026CITY OF ST PETER3780.1605/29/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/07/26CITY OF ST PETER11204.2606/12/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/07/26CITY OF ST PETER486.0406/12/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/07/26CITY OF ST PETER5144.8006/12/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/07/26CITY OF ST PETER1766.3206/12/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/07/26CITY OF ST PETER4168.7906/12/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/21/2026CITY OF ST PETER11358.5506/26/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/21/2026CITY OF ST PETER920.9906/26/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/21/2026CITY OF ST PETER5144.8106/26/2026 ## 830-41800-100INTERGOVERNMENTAL WAGESPAYROLL PE 06/21/2026CITY OF ST PETER4131.0406/26/2026 ## 830-41800-102INTERGOVERNMENTAL - OVERTIMEPAYROLL PE 4/26/2026CITY OF ST PETER38.5105/01/2026 ## 830-41800-102INTERGOVERNMENTAL - OVERTIMEPAYROLL PE 4/26/2026CITY OF ST PETER24.3605/01/2026 ## 830-41800-102INTERGOVERNMENTAL - OVERTIMEPAYROLL PE 05/10/2026CITY OF ST PETER28.7405/15/2026 ## 830-41800-102INTERGOVERNMENTAL - OVERTIMEPAYROLL PE 06/07/26CITY OF ST PETER24.3606/12/2026 ## 830-41800-102INTERGOVERNMENTAL - OVERTIMEPAYROLL PE 06/21/2026CITY OF ST PETER48.7206/26/2026 830-41800-121INTERGOVERNMENTAL PERA CONTRIBPERAPERA - PUBLIC EMPLOYEES RETIREMENT ASSOC1718.3705/06/2026 830-41800-121INTERGOVERNMENTAL PERA CONTRIBPERAPERA - PUBLIC EMPLOYEES RETIREMENT ASSOC1569.2005/20/2026 830-41800-121INTERGOVERNMENTAL PERA CONTRIBPERAPERA - PUBLIC EMPLOYEES RETIREMENT ASSOC1561.7606/03/2026 830-41800-121INTERGOVERNMENTAL PERA CONTRIBPERAPERA - PUBLIC EMPLOYEES RETIREMENT ASSOC1554.0306/17/2026 ## 830-41800-122INTERGOVERNMENTAL FICA CONTRIBFICAINTERNAL REVENUE SERVICE1550.4405/06/2026 ## 830-41800-122INTERGOVERNMENTAL FICA CONTRIBFICAINTERNAL REVENUE SERVICE1442.4905/20/2026 ## 830-41800-122INTERGOVERNMENTAL FICA CONTRIBFICAINTERNAL REVENUE SERVICE1438.7406/03/2026 ## 830-41800-122INTERGOVERNMENTAL FICA CONTRIBFICAINTERNAL REVENUE SERVICE1383.2806/17/2026 830-41800-126INTERGOVERNMENTAL MEDICARE CONmedicare withholdingINTERNAL REVENUE SERVICE362.5905/06/2026 830-41800-126INTERGOVERNMENTAL MEDICARE CONmedicare withholdingINTERNAL REVENUE SERVICE337.3405/20/2026 830-41800-126INTERGOVERNMENTAL MEDICARE CONmedicare withholdingINTERNAL REVENUE SERVICE336.4806/03/2026 830-41800-126INTERGOVERNMENTAL MEDICARE CONmedicare withholdingINTERNAL REVENUE SERVICE323.5106/17/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA568.4505/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA568.4505/01/2026 ## 830 - MN RIVER VALLEY TRANSITMAY & JUNE, 2026 EXPENSES 4 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA3528.0705/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1512.0305/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1471.9405/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1471.9405/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1145.9905/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1145.9905/01/2026 830-41800-131INTERGOVERNMENTAL HEALTH INSURee assistance progMEDICA14.4005/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 05/10/2026CITY OF ST PETER60.0005/15/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 05/10/2026CITY OF ST PETER30.0005/15/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 05/10/2026CITY OF ST PETER30.0005/15/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA568.4506/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA568.4506/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1512.0306/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1512.0306/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1471.9406/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1471.9406/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1145.9906/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURHEALTH INSURANCE PREMIUMMEDICA1145.9906/01/2026 830-41800-131INTERGOVERNMENTAL HEALTH INSURee assistance progMEDICA10.8006/01/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 06/21/2026CITY OF ST PETER60.0006/26/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 06/21/2026CITY OF ST PETER30.0006/26/2026 ## 830-41800-131INTERGOVERNMENTAL HEALTH INSURPAYROLL PE 06/21/2026CITY OF ST PETER30.0006/26/2026 ## 830-41800-132INTERGOVERNMENTAL DENTAL INSURSelf InsuranceSIMPLE DENTAL449.0005/01/2026 ## 830-41800-132INTERGOVERNMENTAL DENTAL INSURSelf InsuranceSIMPLE DENTAL495.0406/12/2026 ## 830-41800-133INTERGOVERNMENTAL LIFE INSURANLIFE INSURANCE PREMIUMSUN LIFE FINANCIAL22.5605/06/2026 ## 830-41800-133INTERGOVERNMENTAL LIFE INSURANLIFE INSURANCE PREMIUMSUN LIFE FINANCIAL16.9206/17/2026 830-41800-142INTERGOVERNMENTAL UNEMPLOYMENT1ST QTR 2026 UNEMPLOYMENT TJPMN DEPT OF EMPLOYMENT & ECONOMIC DEVEL386.0505/20/2026 830-41800-151INTERGOVERNMENTAL WORKERS COMP2025 AUDIT ADJUSTMENT WORKCOMPLEAGUE OF MN CITIES INSURANCE TRUST2540.0105/11/2026 ## 830-41800-152PFML EMPLOYER SHAREPAID FAMILY MEDICAL LEAVEMETLIFE100.6706/03/2026 ## 830-41800-152PFML EMPLOYER SHAREPAID FAMILY MEDICAL LEAVEMETLIFE94.1606/03/2026 ## 830-41800-152PFML EMPLOYER SHAREPAID FAMILY MEDICAL LEAVEMETLIFE92.2906/03/2026 ## 830-41800-200INTERGOVERNMENTAL OFFICE SUPPLBATTERIES/TOTESVISA-UNITED BANKERS BANK54.6905/11/2026 830-41800-200INTERGOVERNMENTAL OFFICE SUPPLBUS SUPPLIES, OFFICE SUPPLIESINNOVATIVE OFFICE SOLUTIONS LLC10.0705/26/2026 ## 830-41800-200INTERGOVERNMENTAL OFFICE SUPPLCHARGER, BASKETS, BUS CLEANERAMAZON28.3706/08/2026 ## 830-41800-200INTERGOVERNMENTAL OFFICE SUPPLCOMPUTER CHARGER, STORAGE BINSAMAZON32.9706/08/2026 ## 830-41800-200INTERGOVERNMENTAL OFFICE SUPPLTAPE, CLOCKAMAZON21.9706/08/2026 830-41800-210INTERGOVERNMENTAL OPERATING SUAPRIL 2026 POSTAGEGUSTAVUS ADOLPHUS COLLEGE P.O.6.3205/26/2026 830-41800-210INTERGOVERNMENTAL OPERATING SUMRVT BUS TITLE TRANSFERVISA-UNITED BANKERS BANK46.9906/08/2026 830-41800-210INTERGOVERNMENTAL OPERATING SUNEW PLATES #48 BUSVISA-UNITED BANKERS BANK23.4906/08/2026 830-41800-210INTERGOVERNMENTAL OPERATING SUMAY 2026 POSTAGEGUSTAVUS ADOLPHUS COLLEGE P.O.10.4206/22/2026 830-41800-211INTERGOVERNMENTAL MOTOR FUELSMRVT APRIL 2026 FUELCENTRAL UNITED COOPERATIVE1349.9805/26/2026 ## 830-41800-211INTERGOVERNMENTAL MOTOR FUELSMRVT APRIL 2026 FUELKWIK TRIP INC6313.0405/26/2026 830-41800-211INTERGOVERNMENTAL MOTOR FUELSST MN: APRIL FUEL REFUNDSTATE OF MINNESOTA -711.6605/29/2026 830-41800-211INTERGOVERNMENTAL MOTOR FUELSMRVT MAY 2026 FUELCENTRAL UNITED COOPERATIVE1219.6006/22/2026 ## 830-41800-211INTERGOVERNMENTAL MOTOR FUELSMRVT MAY 2026 FUELKWIK TRIP INC6717.0406/22/2026 5 830-41800-211INTERGOVERNMENTAL MOTOR FUELSST MN: MAY 2026 FUEL REFUNDSTATE OF MINNESOTA -637.0006/24/2026 830-41800-300INTERGOVERNMENTAL PROFESSIONADRUG & ALCOHOL TESTINGAMERICAN MOTOR-CARRIER CONSORTIUM, INC520.6905/11/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAadmin feeWEX HEALTH, INC.16.5005/22/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAMAR MRVT CC FEESPROPAY122.7705/25/2026 830-41800-300INTERGOVERNMENTAL PROFESSIONADRIVER DOT PHYSICALCHIROPRACTIC HEALTH CENTER OF LESUEUR 100.0005/26/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAMRVT CR CARD DAILY FEECITY OF ST PETER3.7505/31/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAMRVT ST PETER ACCTG FEECITY OF ST PETER1600.0005/31/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAANNUAL FEEVISA-UNITED BANKERS BANK5.0006/08/2026 830-41800-300INTERGOVERNMENTAL PROFESSIONADOT PHYSICALRISING SUN CHIROPRACTIC & WEIGHT LOSS90.0006/08/2026 830-41800-300INTERGOVERNMENTAL PROFESSIONARANDOM DRUG TESTINGAMERICAN MOTOR-CARRIER CONSORTIUM, INC347.9406/08/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAadmin feeWEX HEALTH, INC.16.5006/25/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAMRVT CR CARD DAILY FEECITY OF ST PETER2.8506/30/2026 ## 830-41800-300INTERGOVERNMENTAL PROFESSIONAMRVT ST PETER ACCTG FEECITY OF ST PETER1600.0006/30/2026 ## 830-41800-321INTERGOVERNMENTAL TELEPHONEPAYROLL PE 4/26/2026CITY OF ST PETER132.0005/01/2026 ## 830-41800-321INTERGOVERNMENTAL TELEPHONEPAYROLL PE 06/07/26CITY OF ST PETER132.0006/12/2026 ## 830-41800-331INTERGOVERNMENTAL TRAVEL & TRAONLINE CLASSVISA-UNITED BANKERS BANK99.0005/11/2026 ## 830-41800-331INTERGOVERNMENTAL TRAVEL & TRAREGION MEETINGVISA-UNITED BANKERS BANK22.7405/11/2026 830-41800-331INTERGOVERNMENTAL TRAVEL & TRALEADERSHIP TRAININGVISA-UNITED BANKERS BANK313.1505/11/2026 ## 830-41800-331INTERGOVERNMENTAL TRAVEL & TRALARRY BECK: CDL LICENSEMISC VENDOR65.0005/26/2026 ## 830-41800-340INTERGOVERNMENTAL ADVERTISINGSENIOR EXPOVISA-UNITED BANKERS BANK35.9605/11/2026 ## 830-41800-340INTERGOVERNMENTAL ADVERTISINGBUS ADS MRVT DISPLAYK&R GRAPHICS865.0006/08/2026 ## 830-41800-380INTERGOVERNMENTAL UTILITIESMRVT MAY 2026 INTERNETMETRO FIBERNET LLC.110.0005/11/2026 ## 830-41800-380INTERGOVERNMENTAL UTILITIESMRVT TABLET SERVICEFIRSTNET (AT&T MOBILITY)275.4805/26/2026 ## 830-41800-380INTERGOVERNMENTAL UTILITIESMRVT MAY 2026 INTERNETMEDIACOM267.7706/08/2026 ## 830-41800-380INTERGOVERNMENTAL UTILITIESMRVT JUNE 2026 INTERNETMETRO FIBERNET LLC.110.0006/08/2026 ## 830-41800-380INTERGOVERNMENTAL UTILITIESMRVT TABLET SUPPORTFIRSTNET (AT&T MOBILITY)308.0606/22/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MACLEANING SUPPLIESVISA-UNITED BANKERS BANK10.9805/11/2026 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MABUS SUPPLIES, OFFICE SUPPLIESINNOVATIVE OFFICE SOLUTIONS LLC153.2505/26/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MABUS CLEANING SUPPLIESTRUSTWORTHY HARDWARE77.9505/26/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MAMECHANIC WO PREV MAINTCITY OF ST PETER3608.2205/31/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MACHARGER, BASKETS, BUS CLEANERAMAZON11.8706/08/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MABUS CLEANING SUPPLIESAMAZON8.6406/08/2026 ## 830-41800-404INTERGOVERNMENTAL EQUIP-REP&MABUS SUPPLIESTRUSTWORTHY HARDWARE44.4406/22/2026 ## 830-41800-412INTERGOVERNMENTAL BUILDING RENJUNE 2026 LEASECITY OF LE SUEUR149.9005/26/2026 830-41800-412INTERGOVERNMENTAL BUILDING RENMRVT LEASE ST PETER CITY HALLCITY OF ST PETER94.4305/31/2026 ## 830-41800-412INTERGOVERNMENTAL BUILDING RENJULY 2026 LEASECITY OF LE SUEUR149.9006/22/2026 830-41800-412INTERGOVERNMENTAL BUILDING RENMRVT LEASE ST PETER CITY HALLCITY OF ST PETER94.4306/30/2026 ## 830-41800-415INTERGOVERNMENTAL EQUIPMENT REJUNE 2026 LEASECITY OF LE SUEUR1735.0305/26/2026 830-41800-415INTERGOVERNMENTAL EQUIPMENT REMRVT LEASE ST PETER CITY HALLCITY OF ST PETER1217.3305/31/2026 ## 830-41800-415INTERGOVERNMENTAL EQUIPMENT REJULY 2026 LEASECITY OF LE SUEUR1735.0306/22/2026 830-41800-415INTERGOVERNMENTAL EQUIPMENT REMRVT LEASE ST PETER CITY HALLCITY OF ST PETER1217.3306/30/2026 187780.33 6 ## TO: Chair Huntington and Members DATE: 07/13/26 ## FROM: Todd Prafke, City Administrator ## RE: MRVT Procurement Policy ## ACTION/RECOMMENDATION Approve the attached resolution Adopting a new MRVT Procurement Policy. ## BACKGROUND Members may No that from time to time federal or state regulations or changes through governing bodies require modifications to policies. As a part of our work and recommendations from MNDOT and others modifications have are recommended to your current policy and are included in the draft policy that is attached. Staff will provide a summary of the most significant policy changes at your meeting. It is important to note that none of the recommended changes are based on significant policy issues rather it is the ongoing review and ensuring that language and processes match requirements. ## ALTERNATIVES AND VARIATIONS Do not act. Staff will wait for additional direction however it's important to note the change is recommended come as a part of your funders review and without these changes there is the potential for funding to be denied or withheld. Negative vote. Staff will wait for additional direction however it's important to note the Change is recommended come as a part of your funders review and without these changes there is the potential for funding to be denied or withheld. Modify the resolution. This is always an option of the Board. Please feel free to contact me if you have any question or concerns. 7 ## MN River Valley Transit ## PROCUREMENT POLICY July 14 th , 2026 8 ## Table of Contents 1. INTRODUCTION ..........................................................................................................................5 1.1. Purpose ......................................................................................................................................... 5 1.2. Third Party Contracting Capacity .................................................................................................. 5 1.3. Procurement Planning .................................................................................................................. 5 1.4. Policy Review and Amendment .................................................................................................... 6 2. CODE OF ETHICS AND CONFLICT OF INTEREST POLICY ..................................................................6 2.1. Purpose ......................................................................................................................................... 6 2.2. Applicability ................................................................................................................................... 6 2.3. Gifts/Gratuities ............................................................................................................................. 6 2.4. Employee Conflicts of Interest ...................................................................................................... 6 2.4.1. Conflicts of Interest ............................................................................................................... 6 2.4.2. Discovery of Actual or Potential Conflict of Interest (Disqualification and Waiver) ............. 7 2.4.3. Employee Disclosure Requirements ..................................................................................... 7 2.4.4. Confidential Information ....................................................................................................... 8 2.5. Organizational Conflicts of Interest .............................................................................................. 8 2.6. Penalties ........................................................................................................................................ 8 3. MN River Valley Transit RESPONSIBILITIES ..................................................................................9 3.1. Third-Party Contracting Capacity .................................................................................................. 9 3.2. Contract Administration System ................................................................................................... 9 3.2.1. Adequate Third-Party Contract Provisions ........................................................................... 9 Revenue Contracts ................................................................................................................ 9 3.2.3. Record Keeping ..................................................................................................................... 9 3.3. Determination of Needs ............................................................................................................. 10 3.3.1. Eligibility .............................................................................................................................. 10 3.3.2. Necessity ............................................................................................................................. 10 3.4. Contractor Responsibilities ......................................................................................................... 12 ## 3.4.1. D ebarment and Suspension ................................................................................................ 12 3.4.2. Lobbying Certification and Disclosure ................................................................................ 12 3.4.3. Required Contract Clauses .................................................................................................. 12 3.5. Bonding ....................................................................................................................................... 14 3.5.1. Thresholds ........................................................................................................................... 14 9 3. 5.2. Acceptable Sureties............................................................................................................. 14 3.6. Preference for U.S. Property—Buy America ............................................................................... 14 3.7. Accessibility ................................................................................................................................. 15 4. SOURCES OF ACQUISITIONS ...................................................................................................... 15 4.1. Force Account ............................................................................................................................. 15 4.2. Joint Procurements ..................................................................................................................... 15 4.3. State or Local Government Purchasing Schedules or Purchasing Contracts .............................. 15 4.3.1. Definition............................................................................................................................. 15 4.3.2. Small Quantity Conditions for Rolling Stock ....................................................................... 16 4.3.3. Applicability of Federal Provisions ...................................................................................... 16 4.3.4. Existing Contracts ................................................................................................................ 16 5. PROCEDURES FOR OPEN MARKET PROCUREMENTS ................................................................... 18 5.1. Solicitation of Competitive Price Quotes, Bids or Proposals ...................................................... 18 5.2. Solicitation Requirements and Restrictions ................................................................................ 18 5.2.1. Description of the Property or Services .............................................................................. 18 5.2.2. Evaluation Factors. .............................................................................................................. 19 5.2.3. Permissible Contract Types ................................................................................................. 19 5.2.4. Prohibitive or Restricted Contract Types ............................................................................ 20 5.2.5. Other Federal Requirements Affecting the Property or Services to be Acquired .............. 20 5.2.6. Other Federal Requirements Affecting the Bidder or Offeror and the Contractor ............ 20 5.2.7. Reservation of Right to Award to Other Than the Low Bidder or Offeror .......................... 20 5.2.8. Reservation of Right to Reject All Bids or Offers ................................................................ 20 5.3. Methods of Procurement ........................................................................................................... 20 5.3.1. Informal Procurements: Micro Purchases .......................................................................... 21 5.3.2. Informal Procurements: Small Purchases ........................................................................... 21 5.3.3. Formal Procurements ......................................................................................................... 22 5.4. Noncompetitive Procurements ................................................................................................... 27 5.4.1. When Appropriate .............................................................................................................. 27 ## 5.5. E valuation Requirements ............................................................................................................ 30 5.5.1. General ................................................................................................................................ 30 5.5.2. Options ................................................................................................................................ 30 5.6. Contract Award Requirements ................................................................................................... 30 5.6.1. Award to Other Than the Lowest Bidder or Offeror ........................................................... 30 10 5. 6.2. Affirmative Action and DBE ................................................................................................. 31 5.7. Independent Cost Estimate and Cost and Price Analysis ............................................................ 31 5.7.1. Independent Cost Estimate ................................................................................................. 31 5.7.2. Cost or Price Analysis .......................................................................................................... 31 6. CONTRACT ADMINISTRATION REQUIREMENTS AND CONSIDERATIONS ...................................... 32 6.1. MN River Valley Transit Staff Responsibilities ........................................................................... 32 6.2. Administrative Restrictions on the Acquisition of Property and Services .................................. 32 6.2.1. Legal Eligibility ..................................................................................................................... 32 6.2.2. Period of Performance ........................................................................................................ 32 6.3. Federal Cost Principles ................................................................................................................ 33 6.4. Payment Provisions ..................................................................................................................... 33 6.4.1. Financial Support for the Project ........................................................................................ 33 6.5. Protections Against Performance Difficulties ............................................................................. 34 6.5.1. Changes ............................................................................................................................... 34 6.5.2. Remedies ............................................................................................................................. 34 6.6. Contents of Complete Contract Files .......................................................................................... 35 6.6.1. Written Record of Procurement History ............................................................................. 35 6.7. Contract Administration and Close-Out Documents .................................................................. 36 6.7.1. Contract Deliverables .......................................................................................................... 36 6.7.2. Contract Changes ................................................................................................................ 36 6.7.3. Contract Payments .............................................................................................................. 36 6.7.4. Contract Close-Out .............................................................................................................. 36 6.8. Protest Procedures ..................................................................................................................... 36 6.8.1. Recipient Responsibilities and FTA Role in Procurement Disputes .................................... 36 6.8.2. MN River Valley Transit Staff Responsibilities ................................................................... 37 6.8.3. Solicitation Provision ........................................................................................................... 37 6.8.4. Requirements for Protests .................................................................................................. 38 ## 6.8.5. P rotest Response ................................................................................................................ 38 6.8.6. Review of Protests by MnDOT ............................................................................................ 38 11 ## 1. INTRODUCTION 1.1. Purpose This policy establishes guidelines and minimum standards that MN River Valley Transit will use in the management of its third-party contracts. This manual is intended to ensure that MN River Valley Transit complies with Federal Transit Administration (FTA) and the Minnesota Department of Transportation’s standards to ensure full and open competition and equitable treatment of all potential sources for all purchases made with funding derived from the Federal, state, and local governments. In all purchasing activity, the goal of MN River Valley Transit is to ensure maximum open and free competition consistent with: • FTA Circular 4220.1G "Third Party Contracting Gui dance" or latest version thereof; • FTA Circular 4220.1G “FTA Best Practices Procurement and Lessons Learned Manual” ## • 2 CFR § 200.318 – 200.327 The goal of this procur ement policy is to provide an atmosphere in which all procurement transactions will be conducted in a manner providing full and open competition while preventing the use of state or federal funds for unallowable costs, as discussed in 2 C.F.R. 200 and other applicable regulations. MN River Valley Transit outlines the local restrictions and guidance on unallowable costs within the Financial Policy. When MN River Valley Transit undertakes any purchase utilizing FTA funds, this policy shall supersede any existing purchasing policy. When any conflict exists between this policy and the existing policies of the MN River Valley Transit , the procedures in this policy shall prevail. If any employee of MN River Valley Transit determines that a conflict exists between these policies and state or local law, MN River Valley Transit shall contact MnDOT and communicate the conflict. ## 1.2. Third Party Contracting Capacity FTA regulations (2 CFR § 200.319(c) and FTA Circular 4220.1G, Chapter III, § 3a) require MN River Valley Transit to have written procurement procedures. This policy is designed to meet FTA and MnDOT’s requirements in this regard. ## 1.3. Procurement Planning Planning is MN River Valley Transits first step in the procurement process. It is the process of deciding what to buy, when, and from what sources. In order to plan effectively, MN River Valley Transit must have the internal organizational capability with the proper checks and balances to facilitate the procurement process with the highest degree of integrity. This includes having trained, experienced contract personnel that have the authority to contractually bind the agency. Furthermore, MN River Valley Transit uses Federal funds in support of their procurement actions and must ensure that contract personnel are fully knowledgeable of the numerous laws and regulations that apply to funded procurements. MN River Valley Transit invests the time and resources to establish standards of 12 conduct, organize effectively, and develop short- and long-range plans will avoid last minute, emergency or ill-planned procurements, which are contrary to open, efficient and effective procurements. FTA C. 4220.1G Best Practices. ## 1.4. Policy Review and Amendment Once per year the Saint Peter City Administrator, Operations Manager, Compliance Manager, and any employees the City Administrator requests to be present, shall meet and review this policy for revisions or updates that need to be made. The MN River Valley Transit Joint Powers Board will be notified of changes to this policy at their next regularly scheduled meeting and at that time adopt any revisions or updates to the Policy. If any changes or revisions are adopted to this policy, MN River Valley Transit will upload the updated policy to BlackCat with an indication of the date when the changes were made. ## 2. CODE OF ETHICS AND CONFLICT OF INTEREST POLICY 2.1. Purpose Federal grant management rules (2 CFR § 200.318(c)(1)) require each recipient to maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts. This policy must address: • Personal conflicts of interest • Gifts; and • Violations. 2.2. Applicability No employee, officer or agent may participate in the selection, award, or administration of a contract supported by a Federal award if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. 2 C.F.R. 200.318(c)(1). 2.3. Gifts/Gratuities No officer, employee, agent, or board member of MN River Valley Transit , may solicit or accept gratuities, gifts, favors, or anything of monetary value from contractors or parties to subcontracts. 2 C.F.R. 200.318(c)(1). ## 2.4. Employee Conflicts of Interest 2.4.1. Conflicts of Interest It shall be a breach of ethical standards for any MN River Valley Transit listed employee or member to participate directly or indirectly in a procurement when the employee or member knows: 13 • The employee or any member of the employee’s immediate family, board member, officer, agent, his or her partner, has a financial interest pertaining to the procurement; • A business or organization in which the employee, or any member of the employee’s immediate family, has a financial interest pertaining to the procurement; or • Any other person, business or organization with whom the employee or any member of employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement. 2 C.F.R. 200.318(c)(1); FTA C. 4220.1G, Chpt. III(1)(a). 2.4.2. Discovery of Actual or Potential Conflict of Interest (Disqualification and Waiver) Regardless of the organizational structure MN River Valley Transit establishes for its procurement activities, a strong need for autonomy or independence of the procurement function from internal customers. It is very important that all procurement responsibilities are carried out without undue influence by the agency’s internal customers and users of the goods and services procured. While the degree of autonomy and organizational reporting relationships will vary with the size of the organization and its established policies, autonomy enables procurement personnel to give unbiased consideration to procurement principles and requirements, as well as to the schedule, budget, functional and other requirements of the internal customers. The procurement personnel must be free from undue influence or pressure in the award and administration of contracts. (See 2 C.F.R. § 200.319 General procurement standards; FTA Circular 4220.1G, Chapter IV, paragraph 3 – Third Party Contracting Capacity; and FTA ## Best Practices 2.2) Remedies. FTA expects the recipient to analyze each planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award. FTA C. 4220.1G, Chpt. VI(2)(h). Upon discovery of an actual or potential conflict of interest, an employee participating directly or indirectly in a procurement shall: • Promptly file a written statement of disqualification with the Procurement Officer; and • Withdraw from further participation in the procurement. The employee may, at the same time, request from the Procurement Officer, an advisory opinion as to what further participation, if any, the employee may have in the procurement. It shall be at the sole discretion of the Procurement Officer to determine if the employee may have any further participation in the procurement and, if so, the extent to which the employee may participate. Any employee who fails to comply with the provisions of this paragraph may be subject to disciplinary action. ## 2.4.3. Employee Disclosure Requirements A MN River Valley Transit employee, who has reason to believe that they or their immediate family have an interest that may be affected by their official acts or actions as a MN River Valley Transit employee or by the official acts or actions of MN River Valley Transit , shall disclose the precise nature and value of such interest in a written disclosure statement to the Procurement Officer. The employee’s disclosure statement will be reviewed by the Procurement Officer and the Procurement Officer will respond to the employee in writing with an opinion as to the propriety of said interest. 14 In the event that the Procurement Officer has reason to believe that they or their immediate family has an interest that may be affected by their official acts or actions as a MN River Valley Transit employee or by the official acts or actions of MN River Valley Transit , they shall disclose the precise nature and value of such interest in a written disclosure statement to the Transit Director. ## 2.4.4. Confidential Information A MN River Valley Transit employee may not directly or indirectly make use of, or permit others to make use of, for the purpose of furthering a private interest, confidential information acquired by virtue of their position or employment with MN River Valley Transit . 2 C.F.R. 200.303(e). ## 2.5. Organizational Conflicts of Interest The Procurement Officer is encouraged to closely scrutinize all situations that appear to have the potential for an organizational conflict of interest. Organizational conflicts of interest may result in bias and potentially provide an unfair competitive advantage to a potential offeror. An organizational conflict of interest occurs due to the type of work to be performed under a third-party contract, or because of other activities or relationships such as: • A contractor who is unable, or potentially unable, to render impartial assistance or advice to the ## Subrecipient; • A contractor’s whose objectivity in performing contract work is or might be impaired; • A contractor who has an unfair competitive advantage; or • An organization that has a parent, affiliate, subsidiary or similar organizational relationship with MN River Valley Transit . Bias arises when a contractor is placed in a situation where there may be an incentive to distort advice or decisions. Whenever a contract is awarded that involves the rendering of advice, the question must always be asked as to whether the potential for a conflict of interest exists for the contractor rendering the advice. MN River Valley Transit will utilize a "Conflict of Interest Disclosure Statement," in its solicitation when contracting for services of this nature. 2 C.F.R. 200.318(c)(2); 2 C.F.R. 200.319(b). 2.6. Penalties For violation of any provision of this Code of Ethics or Conflict of Interest, the MN River Valley Transit may avail itself of every remedy in law or equity, to enact penalties to the employee, up to and including dismissal. Civil/Criminal Penalties Additionally, violation of the Ethics Policy or a provision thereof may subject the Employee to criminal or civil penalties under State or Federal law. Upon the discovery of an actual or potential conflict of interest, an employee participating directly or indirectly in a procurement shall 1) promptly file a written statement of disqualification with the COMPLIANCE AND OPERATIONS MANAGERS and 2) withdraw from further participation in the procurement. The employee may request from the COMPLIANCE AND OPERATIONS MANAGERS an advisory opinion as to what further participation, if any, the employee may have in the procurement. 15 The COMPLIANCE AND OPERATIONS MANAGERS shall have sole discretion—considering the type of conflict of interest, the degree to which the employee may have dual interests in the procurement outcome, and the knowledge and ability of other members of the staff to handle the procurement without that employee—to determine if and to what extent the employee may participate further in the procurement. ## 3. MN River Valley Transit RESPONSIBILITIES ## 3.1. Third-Party Contracting Capacity MN River Valley Transit must maintain adequate technical capacity to carry out its FTA and State assisted projects and comply with Federal and State r ules. MN River Valley Transit 's third party contracting capability must be adequate to undertake its procurements effectively and efficiently in compliance with applicable Federal, state, and local requirements. FTA C. 4220.1G, Chpt. 3(3). ## 3.2. Contract Administration System MN River Valley Transit must maintain a contract administration system to ensure that it and its third- party contractors comply with the terms, conditions, and specifications of their contracts or purchase orders and applicable Federal, state and local requirements. See Section 6 of this policy for a full discussion of contract administration. FTA C. 4220.1G, Chpt. 3(3). ## 3.2.1. Adequate Third-Party Contract Provisions MN River Valley Transit must include provisions in all of its third-party contracts that are adequate to form a sound and complete agreement. Provisions identified in the solicitation must be carried over into the contract. FTA C. 4220.1G, Chpt. 3(3)(b). ## 3.2.2. Revenue Contracts MN River Valley Transit may enter into a revenue contract with a third-party to generate revenues in connection with a transit related activity, or to create business opportunities utilizing an FTA or State funded asset. Any such said contract opportunity will follow open and competitive selection procedures and principles outlined herein. FTA C. 4220.1G, Chpt. 2(b)(3). ## 3.2.3. Record Keeping MN River Valley Transit must prepare and maintain adequate and readily accessible project performance and financial records, covering procurement transactions as well as other aspects of project implementation. MN River Valley Transit must maintain these records in the event of litigation or in other limited circumstances, until six years (in accordance with MN State Record Retention requirements) after MN River Valley Transit and any contractors or subcontractors have made final payment and all other pending matters are closed. Specific record keeping requirements include: (a) Written Record of Procurement History – MN River Valley Transit must maintain and make available to MnDOT and FTA written records detailing the history of each procurement. For all procurements above the micro-purchase level MN River Valley Transit must maintain records relating to: 16 (1) Procurement Method – MN River Valley Transit must provide its rationale for the method of procurement it used for each contract, including a sole source justification for any acquisition that does not qualify as competitive; (2) Contract Type – MN River Valley Transit must state the reasons for selecting the contract type it used; (3) Contractor Selection – MN River Valley Transit must state its reasons for contractor selection or rejection; (4) Contractor Responsibility – MN River Valley Transit must provide a written determination of responsibility for the successful contractor; (5) Cost or Price – MN River Valley Transit must evaluate and state its justification for the contract cost or price; and (6) Reasonable Documentation – MN River Valley Transit must retain documentation commensurate with the size and complexity of the procurement. (7) Vendor Verification – MN River Valley Transit must include verification of acceptance with a selected vendor/supplier/manufacturer through the Federal System of Award Management (SAM) for each project and associated project file. (b) Access to Records – MN River Valley Transit must provide FTA and MnDOT officials, Minnesota Department of Management and Budget, the State Auditor, or any of their representatives, access to and the right to examine and inspect all records, documents, and papers, including contracts, related to any FTA project financed with Federal assistance. 2 C.F.R. 200.334. 3.3. Determination of Needs MN River Valley Transit must maintain and follow adequate procedures for determining the types and amounts of products and services it needs to acquire. MN River Valley Transit shall comply with the following requirements when determining the types and amounts of products and services it needs to acquire: 3.3.1. Eligibility All products and services to be acquired with FTA or State funds must be eligible under the Federal or State law authorizing the FTA or State assistance award and any regulations thereunder. All products and services to be acquired with FTA or State funds must also be eligible for support within the scope of the underlying grant or cooperative agreement from which the FTA or State assistance to be used is derived. FTA C. 4220.1G, Chpt. IV(2). 3.3.2. Necessity MN River Valley Transit shall adhere to the following standards for avoiding the purchase of duplicative and/or unnecessary products and services it does not need. FTA C. 4220.1G, Chpt. IV(1)(b). ## 3.3.2.1. Unnecessary Reserves MN River Valley Transit shall limit the acquisition of Federally or State-assisted property, goods, and services to the amount it needs to support its operations. FTA C. 4220.1G, Chpt. IV(1)(b)(1). 17 ## 3.3.2.2. Acquisition for Assignment Purposes MN River Valley Transit shall contract only for its current and reasonably expected public transportation needs and shall not add quantities or options to third-party contracts solely to permit assignment to another party at a later date. These limits on assignments, however, do not preclude joint procurements that are entered into simultaneously by two or more parties to obtain advantages unavailable for smaller procurements. FTA C. 4220.1G, Chpt. IV(1)(b)(2). (a) General Prohibition – MN River Valley Transit may contract only for its current and reasonably expected public transportation needs and may not add quantities or options to third-party contracts solely to permit assignment to another party at a later date. (b) Exceptions – These limits on assignments, however, do not preclude: (1) Joint Procurements – MN River Valley Transit and one or more other FTA recipients may enter into a single procurement at the same time to obtain advantages unavailable for smaller procurements. (2) Participation in MnDOT Sponsored Vehicle Procurements – MN River Valley Transit may enter into contracts developed by the State of Minnesota t o acquire vehicles. See Section 4.3 of this policy for a full discussion of state government purchasing schedules and contracts. (c) Procurement Size – For every procurement, MN River Valley Transit shall consider whether to consolidate or break out the procurement to obtain the most economical purchase. Absent efforts to foster greater opportunities for Disadvantaged Business Enterprises (DBEs), small and minority firms and women’s business enterprises, MN River Valley Transit shall not split a larger procurement merely to gain the advantage of micro-purchase or small purchase procedures. (d) Options – MN River Valley Transit shall justify, as needed, all option quantities included in every solicitation and contract. An option is a unilateral right in a contract by which, for a specified time, MN River Valley Transit may acquire additional equipment, supplies, or services than originally procured. An option may also extend the term of the contract. (e) Lease Versus Purchase – MN River Valley Transit shall review lease versus purchase alternatives for acquiring property and shall prepare or obtain an analysis to determine the most economical alternative. If MN River Valley Transit chooses to lease an asset then it must prepare a written comparison of the cost of leasing the asset compared with the cost of purchasing or constructing the asset. (f) Lease of Rolling Stock – For rolling stock and related equipment, the Fixing America’s Surface Transportation (FAST) Act requires MN River Valley Transit to submit a report to MnDOT, on behalf of FTA, within three years of executing a rolling stock lease that includes: (1) An evaluation of the overall costs and benefits of leasing rolling stock; and (2) A comparison of the expected short-term and long-term maintenance costs under a lease versus maintenance costs when buying rolling stock. 18 (g) Specifications – MN River Valley Transit 's procurement specifications shall clearly describe the products or services to be procured and shall state how the proposals will be evaluated. MN River Valley Transit 's procurement specifications shall not be exclusionary, discriminatory, unreasonably restrictive, or otherwise in violation of Federal or Minnesota laws or regulations. ## 3.4. Contractor Responsibilities MN River Valley Transit , in awarding contracts financed in whole or in part with FTA financial assistance, shall follow guidance in this section to evaluate contractor capabilities to perform the contract. In addition to the Federal rules (2 CFR § 200.318(h)) that require contract awards be made only to responsible contractors, Federal law at 49 U.S.C. § 5325(j) and State Statute (174.24) (177.43 and 16C.09) limits third-party contractor awards to those contractors capable of successfully performing under the terms and conditions of the proposed contract. Before selecting a contractor for award, MN River Valley Transit must consider such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. 3.4.1. ## Debarment and Suspension Debarment and suspension regulations and guidance include the following provisions. 3.4.1.1. ## DOT Debarment and Suspension Regulations U.S. Department of Transportation (DOT) regulations apply to each third-party contract at any tier of $25,000 or more, to each third party contract at any tier for a federally required audit (irrespective of the contract amount), and to each third party contract at any tier that must be approved by an FTA official irrespective of the contract amount ( 2 C.F.R.1200). MN River Valley Transit shall apply DOT’s debarment and suspension requirements to itself and each third-party contractor at every tier to the extent required by DOT’s regulations that incorporate the requirements of the Office of Management and Budget (OMB), “Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)” (2 C.F.R. 180). 3.4.1.2. ## System for Award Management MN River Valley Transit will search and ensure that every offeror considered appears as a registered vendor within the results of a SAM.gov search and print the screen with the results of the search to be included in the procurement file. It is the policy of MN River Valley Transit to verify that the prospective third-party vendor is not listed as a debarred contractor on SAM. ## 3.4.2. Lobbying Certification and Disclosure If a third-party contract will exceed $100,000, before awarding the contract, MN River Valley Transit will obtain a signed lobbying certification, and if applicable, a lobbying disclosure from a prospective third party contractor (see DOT regulations, “New Restrictions on Lobbying,” 49 CFR Part 20, modified as necessary by 31 U.S.C. Section 1352). ## 3.4.3. Required Contract Clauses In addition to the requirements outlined above, there are various required clauses that may apply to MN River Valley Transit ’s third-party contracts, depending upon the type of procurement and the 19 anticipated dollar value of said contract. It is the responsibility of MN River Valley Transit to assess each procurement and determine the applicable FTA third party terms and conditions that should be included in the solicitation and contract documents. Coordination with MnDOT on the appropriate clauses will be completed. These clauses may include: ## • All FTA Assisted Third Party Contracts and Subcontracts: o No Federal government obligation to third parties o False or fraudulent statements or claims o Access to records o Federal changes o Civil rights o Incorporation of FTA terms o Energy conservation o Safe operation of motor vehicles o Prohibition on certain telecommunications and video surveillance services or equipment • Contracts Exceeding $10,000: o Termination provisions • Contracts Exceeding $25,000: o Debarment and suspension o Notice regarding disputes, breaches, defaults, and litigation • Contracts Exceeding $100,000: ## o Byrd Anti-Lobbying Amendment • Contracts Exceeding $150,000: ## o Clean Air Act ## o Federal Water Pollution Control Act o Build America, Buy America (“BABA”) & Buy America (“BA”) ( procurements involving iron, steel, manufactured products, and constructions materials) ## • Contracts Exceeding the Simplified Acquisition Threshold: o Legal remedies for violation or breach • Contracts for Construction: ## o Davis-Bacon Act ## o Copeland Anti-Kickback Act ## o Contract Work Hours and Safety Standards Act o Seismic safety o Veterans hiring preference o Bonding ## • Contracts for Transit Operations: o School bus restrictions o Charter bus restrictions o Transit e mployee protective arrangements o Substance abuse requirements • Miscellaneous: o Conformance with Intelligent Transportation Systems (ITS) national architecture o Cargo preference ## o Fly America o Patent rights 20 o Rights in data and copyrights o Procurement of recovered materials ## o Domestic Preference ## • Rolling Stock Certifications: o Bus testing o Transit Vehicle Manufacturer (TVM) compliance with DBE requirements ## o Pre-Award Buy America Certification ## o Pre-Award Purchaser’s Requirements ## o Pre-Award Federal Motor Vehicle Safety Standards (FMVSS) Certification ## o Post-Delivery Buy America Certification ## o Post-Delivery Purchaser’s Requirements ## o Post-Delivery FMVSS Certification FTA C. 4220.1G, Matrix D; see also FTA Master Agreement. 3.5. Bonding Some procurements may necessitate MN River Valley Transit to require the vendor to submit a bid bond, performance bond, or payment bond (typically construction projects). 3.5.1. Thresholds For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, when bonding is required, MnDOT may accept the bonding policy and requirements of the Subrecipient provided that MnDOT has made a determination that the Federal interest is adequately protected. ## 3.5.2. Acceptable Sureties Federal rules for non-governmental recipients requires the non-governmental recipient to obtain construction bonds from companies holding certificates of authority as acceptable sureties under Department of the Treasury regulations, “Surety Companies Doing Business with the United States,” (31 CFR Part 223). For a current list of approved sureties, see Department of the Treasury’s Listing of Approved Sureties (Department Circular 570). As FTA encourages governmental recipient to require similarly acceptable sureties, it shall be the policy of MN River Valley Transit to such accept sureties. ## 3.6. Preference for U.S. Property—Buy America Any contract exceeding $150,000 entered into by MN River Valley Transit with FTA assistance requires that all iron, steel, manufactured products (including rolling stock), and construction materials used are produced or manufactured in the United States, unless FTA has granted a waiver authorized by Buy America regulations. FTA cautions that its Buy America regulations are complex and different from the Federal “Buy American Act” regulations in FAR Subparts 25.1 and 25.2. FTA C. 4220.1G, Chpt. IV. FTA may obligate an amount for a project only if the steel, iron, manufactured goods, and construction materials used in the project are produced in the United States under the Build America, Buy America Act (BABA), Pub. L. 117-58, §§ 70901–27 incorporated under 49 U.S.C. 5323(j). MN River Valley Transit will, to the great practical extent consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States of America, even when Buy America and other regulations do not apply. 2 C.F.R. § 200.322 21 3.7. Accessibility Facilities to be used in public transportation service must comply with 42 U.S.C. Sections 12101 et seq. and DOT regulations, “Transportation Services for Individuals with Disabilities (ADA),” 49 CFR § 37; and Joint ATBCB/DOT regulations, “Americans with Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 CFR § 1192 and 49 CFR § 38. Notably, DOT incorporated by reference the ATBCB’s “Americans with Disabilities Act Accessibility Guidelines” (ADAAG), revised July 2004, which include accessibility guidelines for buildings and facilities, and are incorporated into Appendix A to 49 CFR Part 37. DOT also added specific provisions to Appendix A modifying the ADAAG, with the result that buildings and facilities must comply with both the ADAAG and amendments thereto in Appendix A to 49 CFR Part 37. ## 4. SOURCES OF ACQUISITIONS ## 4.1. Force Account Force account means use of MN River Valley Transit 's own labor forces and equipment to undertake a project (typically construction, renovation, or repair). The use of force account labor is a project management function, rather than a procurement and contract administration function, except in the general sense of the Subrecipient’s ability to perform work with its own forces rather than contracting with another entity to acquire the property or services it needs, and the cost implications of the recipient’s decision. MN River Valley Transit does not charge force account labor to its FTA grants. FTA C. 4220.1G, Chpt. V(1). ## 4.2. Joint Procurements MN River Valley Transit may participate in joint procurements whereby MN River Valley Transit and one or more other entities agree from the outset to use a single solicitation document and enter into a single contract with a vendor for delivery of products or services. The following requirements apply to MN River Valley Transit ’s participation in joint procurements: • Solicitation documents may not be drafted for the purpose of accommodating the needs of other parties that may later want to participate in the benefits of the contract. • MN River Valley Transit is responsible for ensuring that the joint procurement solicitation and contract complies with all Federal and State requirements and that the solicitation document and contract includes all required clauses and certifications. FTA C. 4220.1G, Chpt. V(3). ## 4.3. State or Local Government Purchasing Schedules or Purchasing Contracts 4.3.1. Definition FTA uses the term “state or local government purchasing schedule” to mean an arrangement that a State or local government has established with several vendors in which those vendors agree to provide essentially an option to the State or local government, and its subordinate government entities, to acquire specific property or services in the future at established prices. These arrangements are somewhat similar 22 to the General Services Administration’s (GSA) Cooperative Purchasing Program available for Federal Government use. (FTA C. 4220.1G Chpt I 5.cc.) ## 4.3.2. Small Quantity Conditions for Rolling Stock To the extent practicable, MN River Valley Transit will use the innovative procurement tools authorized under section 3019 of the FAST Act. If MN River Valley Transit conducts a stand-alone procurement (i.e., not part of a state contract or joint/cooperative procurement) for fewer than five buses, it must prepare a written justification for not using an authorized “innovative procurement tool” pursuant to 49 USC § 5339(a)(10)(B). ## 4.3.3. Applicability of Federal Provisions When obtaining property or services in this manner, MN River Valley Transit must ensure all Federal requirements, required clauses, and certifications (including Buy America) are properly followed and included, whether in the master intergovernmental contract or in the recipient's purchase document. While MnDOT takes all precautions to ensure that such provisions are in the original solicitation and contract documents, it is ultimately MN River Valley Transit ’s responsibility to ensure such documents and certifications are obtained. Solicitation of these vendors is conducted in the same manner as any other procurement. If such requirements, clauses, and certifications were not included in the original purchase solicitation and contracts, MN River Valley Transit may request the vendor to append the required Federal clauses in the purchase order or other document that effects the MN River Valley Transit 's procurement. When this method is used, MN River Valley Transit shall obtain Buy America certification before entering into the purchase order. This method cannot be used to circumvent FTA’s Buy America requirements. ## 4.3.4. Existing Contracts MN River Valley Transit may use existing contract rights as an acquisition source. An “existing contract” means a contract that, when formed, was intended to be limited to the original parties thereto. FTA C. 4220.1G, Chpt. V(8). ## 4.3.4.1. Permissible Actions Within the conditions set forth below, MN River Valley Transit may use existing contract rights held by another recipient of FTA assistance: (a) Exercise of Options – MN River Valley Transit may use contract options held by another recipient of FTA assistance with the following limitations: (1) Consistency with the Underlying Contract – MN River Valley Transit must ensure that the terms and conditions of the option it seeks to exercise are substantially similar to the terms and conditions of the option as stated in the original contract at the time it was awarded. (2) Price – MN River Valley Transit may not exercise an option unless it has determined that the option price is better than prices available in the open market, or that when it intends to exercise the option, the option is more advantageous. 23 (3) Awards Treated as Sole Source Procurements – The following actions constitute sole source awards: ## i. Failure to Evaluate Options Before Awarding the Underlying Contract – If a contract has one or more options and those options were not evaluated as part of the original contract award, exercising those options after contract award will result in a sole source award. ii. Negotiating a Lower Option Price – Exercising an option after MN River Valley Transit has negotiated a lower or higher price will also result in a sole source award unless that price can be reasonably determined from the terms of the original contract, or that price results from Federal actions that can be reliably measured. (b) Assignment of Contract Rights (“Piggybacking”) – If MN River Valley Transit finds that it has inadvertently acquired contract rights in excess of its needs, it may assign those contract rights to another MnDOT subrecipient if the original contract contains an assignability provision that permits the assignment of all or a portion of the specified deliverables under the terms originally advertised, competed, evaluated, and awarded, or contains other appropriate assignment provisions. MN River Valley Transit may use contractual rights through assignment from another recipient of FTA assistance after first determining the contract price remains fair and reasonable, and the contract provisions are adequate for compliance with all Federal requirements. MN River Valley Transit need not perform a second price analysis if a price analysis was performed for the original contract; however, MN River Valley Transit must determine whether the contract price or prices originally established are still fair and reasonable before using those rights. MN River Valley Transit shall be responsible for ensuring the contractor’s compliance with FTA’s Buy America requirements and execution of all the required pre- award and post-delivery Buy America review certifications. Before proceeding with the assignment, however, MN River Valley Transit shall review the original contract to be sure that the quantities the assigning recipient acquired, coupled with the quantities that MN River Valley Transit seeks, do not exceed the amounts available under the assigning recipient’s contract. ## 4.3.4.2. Impermissible Actions MN River Valley Transit may not use Federal assistance to finance: (a) Improper Contract Expansion – A contract has been improperly expanded when it includes a larger scope, greater quantities, or options beyond the recipient’s reasonably anticipated needs. A contract has also been improperly expanded when excess capacity has been added primarily to permit assignment of those contract rights to another entity. (b) Cardinal Changes – A significant change in contract work that causes a major deviation from the original purpose of the work or the intended method of achievement, or causes a revision of contract work so extensive, significant, or cumulative that, in effect, the contractor is required to perform very different work from that described in the 24 original contract, is a cardinal change or “tag-on”. A change within the scope of the contract is not a cardinal change or “tag-on”. ## 5. PROCEDURES FOR OPEN MARKET PROCUREMENTS ## 5.1. Solicitation of Competitive Price Quotes, Bids or Proposals Compliance with the solicitation procedures described in Section 5.4 below will fulfill FTA requirements for “full and open competition.” 2 C.F.R. 200.319(a). ## 5.2. Solicitation Requirements and Restrictions Every procurement solicitation that MN River Valley Transit issues above the micro-purchase level (currently established in Federal guidance at $15,000), must include the following information and be advertised in a manner that ensures adequate and open competition. 2 C.F.R. 200.319(d). 5.2.1. Description of the Property or Services The solicitation and the contract awarded thereunder must include a clear and accurate description of MN River Valley Transit 's technical requirements for the products or services to be acquired in a manner that provides for full and open competition. 2 C.F.R. 200.319(d)(1). ## 5.2.1.1. Descriptive Elements MN River Valley Transit will prepare descriptions of property, goods, or service in terms of functions to be performed or level of performance required, including the range of acceptable characteristics or minimum acceptable standards. Detailed product specifications should be avoided if at all possible; however, there is no prohibition against their use when appropriate. 2 C.F.R. 200.319(d)(1). 5.2.1.2. Quantities Additional quantities or options above MN River Valley Transit 's needs at the time of acquisition may not be added to contracts solely to allow assignment of those quantities or options at a later date. FTA C. 4220.1G, Chpt. VI(2)(d). ## 5.2.1.3. Brand Name or Equal When it is impractical or uneconomical to provide a clear and accurate description of the technical requirements of the property to be acquired, a “brand name or equal” description may be used to define the performance or other salient characteristics of a specific type of property. The salient characteristics of the named brand that bidders or offerors must provide must be identified. 2 C.F.R. 200.319(b)(6). ## 5.2.1.4. Prohibited Practices Solicitations with requirements that contain features that unduly restrict competition may not be ## used. MN River Valley Transit shall not: • Impose unreasonable business requirements for bidders or offerors. • Impose unnecessary experience requirements for bidders and offerors. 25 • Use prequalification procedures that conflict with the prequalification standards described in Section 5.3. • Make a noncompetitive award to any person or firm on a retainer contract with MN River Valley Transit if that award is not for the property or services specified for delivery under the retainer contract. • Impose unreasonable restrictive bonding requirements on bidders and offerors in excess of FTA and state requirements. • Specify only a “brand name” product without allowing offers of an “equal” product, or allowing an “equal” product without listing the salient characteristics that the “equal” product must meet to be acceptable for award. • Specify in-state or local geographical preferences or evaluating bids or proposals in light of in-state or local geographic preferences, even if those preferences are imposed by State or local laws or regulations. The only exception expressly mandated or encouraged by Federal law that may be applicable to MN River Valley Transit is the procurement of Architectural and Engineering (A&E) Services. Geographic location may be a selection criterion in the procurement of A&E services if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project. • Engage in practices that result in organizational conflicts of interest. An organizational conflict of interest occurs when any of the following circumstances arise: o Lack of Impartiality or Impaired Objectivity – When the bidder or offeror is unable, or potentially unable, to provide impartial and objective assistance or advice to MN River Valley Transit due to other activities, relationships, contracts, or circumstances. o Unequal Access to Information – When the bidder or offeror has an unfair competitive advantage through obtaining access to nonpublic information during the performance of an earlier contract. o Biased Ground Rules – When during the conduct of an earlier procurement, the bidder or offeror has established the ground rules for a future procurement by developing specifications, evaluation factors, or similar documents. • Support or acquiesce in noncompetitive pricing practices between firms or between affiliated companies. • Take any arbitrary action in the procurement process. 2 C.F.R. 200.319. 5.2.2. Evaluation Factors. All solicitations shall identify all factors to be used in evaluating bids or proposals. At the discretion of Compliance Manager, the relative order of importance and/or weights shall be communicated to prospective offerors. FTA C. 4220.1G, Chpt. VI (2)(f) ## 5.2.3. Permissible Contract Types MN River Valley Transit shall state the type of contract that will be awarded in all solicitation documents. The following types of contracts will typically be executed with the successful vendor: 26 ## 5.2.3.1. Firm Fixed Price A firm fixed price contract includes a price that remains fixed irrespective of the contractor’s cost experience in performing the contract. A firm fixed price contract may include an economic price adjustment provision, incentives, or both. ## 5.2.3.2. Cost Reimbursement A cost-reimbursement contract provides for payment of the contractor’s allowable incurred costs, to the extent prescribed in the contract. Allowable costs may include incentives if the recipient believes they can prove helpful. Cost-reimbursement contracts are suitable for use only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed price contract. ## 5.2.4. Prohibitive or Restricted Contract Types The following contract types are prohibited or restricted: ## 5.2.4.1. Cost Plus Percentage of Cost Cost plus Percentage of Cost type contracts are prohibited. 5.2.4.2. Time and Materials Time and Materials type contracts may be used only after a written determination is made that no other contract type is suitable. In addition, the contract between MN River Valley Transit and the Contractor must specify a ceiling price that the Contractor may not exceed except at its own risk. 5.2.5. Other Federal Requirements Affecting the Property or Services to be Acquired The solicitation and resulting contract must identify those Federal requirements that will affect contract scope and performance. 5.2.6. Other Federal Requirements Affecting the Bidder or Offeror and the Contractor The solicitation and resulting contract must identify all Federal requirements that a bidder or offeror must fulfill before and during contract performance. 5.2.7. Reservation of Right to Award to Other Than the Low Bidder or Offeror The solicitation must specifically reserve MN River Valley Transit right to award a contract to other than the low bidder or offeror. If the solicitation documents do not specify this right, MN River Valley Transit will be obligated to award the contract to the low bidder. ## 5.2.8. Reservation of Right to Reject All Bids or Offers The solicitation must specifically reserve MN River Valley Transit 's right to reject all bids or offers. 5.3. Methods of Procurement MN River Valley Transit shall use competitive procedure(s) appropriate for the acquisition undertaken. The procedures used must comply with Minnesota and local law as well as with Federal requirements. Federal restrictions vary with the type of procurement method used. The following guidance is based on the requirements of 2 CFR § 200.318 – 200.326, supplemented by FTA and State policies that address the needs of FTA recipients. 27 ## 5.3.1. Informal Procurements: Micro Purchases 5.3.1.1. Definition Per 2 C.F.R. 200.320, micro-purchases are those purchases of products and services that cost $15,000 or less (or current threshold established by Federal Acquisition Regulations (FAR)) ; for purposes of this policy, MN River Valley Transit will use $15,000 as the threshold for relatively simple purchases as a means to expedite the completion of its lowest-dollar small purchase transactions and minimize the associated administrative burden and cost. ## 5.3.1.2. Approval Authority Micro-purchases must be approved in writing by one of the following MN River Valley Transit employees: ## • Procurement Director ## • Transit Director 5.3.1.3. Competition MN River Valley Transit may acquire products and services valued at less than $10,000.00 without obtaining competitive quotations. Micro-purchases should be distributed equitably among qualified suppliers. Micro purchases are exempt from FTA’s Buy America requirements. Davis-Bacon prevailing wage requirements, however, will apply to construction contracts exceeding $2,000, even though the recipient uses micro-purchase procurement procedures. 2 C.F.R. 200.320(a)(1)(ii). ## 5.3.1.4. Prohibited Divisions The size or dollar value of procurements may not be divided or reduced merely to come within the micro purchase limit. The only allowable exception to this restriction is for the express purpose of fostering greater participation of DBEs, small and minority firms and women’s business enterprises in MN River Valley Transit 's Federally assisted procurements. FTA C. 4220.1G, Chpt. VI (3)(b) . 5.3.1.5. Documentation Every micro-purchase must be accompanied by a written determination that the price is fair and reasonable and a description of how that determination was made. FTA C. 4220.1G, Chpt. VI(3)(a)(3)(c). ## 5.3.2. Informal Procurements: Small Purchases 5.3.2.1. Definition FTA defines small purchases as those purchases of products and services, including construction services, that cost greater than $15,000 but not more than $350,000 (or current threshold established by Federal Acquisition Regulations (FAR)). For purposes of this policy, MN River Valley Transit will consider small purchase those that cost greater than $15,000 but not more than $350,000. 28 Minnesota law, which is applicable to MN River Valley Transit per Minn. Stat. 471.345, defines small purchases as those purchases of products and services, including construction services, that cost greater than $15,000 but not more than $175,000. For purposes of this policy, MN River Valley Transit will consider small purchase those that cost greater than $15,000 but not more than $175,000. ## 5.3.2.2. Approval Authority Small purchases must be approved in writing by one of the following MN River Valley Transit employees: ## • Transit Director ## • Chief Executive Officer ## • Governing Board • Other identified per local decision ## 5.3.2.3. Required Competition Price or rate quotations must be obtained from an adequate number of qualified sources. It is the responsibility of MN River Valley Transit to ensure that an adequate number of quotations, bids, or proposals are received. 2 C.F.R. 200.320(2)(i). ## 5.3.2.4. Prohibited Divisions The size or dollar value of procurements may not be divided or reduced merely to come within the small purchase limit. The only allowable exception to this restriction is for the express purpose of fostering greater participation of DBEs, small and minority firms and women’s business enterprises in MN River Valley Transit 's Federally assisted procurements. FTA C. 4220.1G, Chpt. IV(3)(a)(3)(b). 5.3.2.5. Documentation Every small purchase must be documented in the grantee’s written procurement history file. The level of documentation is stipulated in Section 6.6.1. 2 C.F.R. 200.334. For small purchases, price quotations may be oral or written. ## 5.3.2.6. Special Considerations MN River Valley Transit reserves the right to use formal purchase methods, even if small purchase thresholds are met, if the Procurement Officer believes it is in the best interests of the MN River Valley Transit to do so. ## 5.3.3. Formal Procurements 5.3.3.1. Definition Formal purchases are those purchases of products and services that cost greater than the current Federal threshold of $350,000. For purposes of this policy, MN River Valley Transit will 29 use formal procedures for all purchases over $350,000 (or current threshold established by Federal Acquisition Regulations (FAR)). 2 C.F.R. 200.320(b); FTA C. 4220.1G. Per Minn. Stat. 471.345, formal purchases are those purchases of products and services that cost greater than the current state threshold of $175,000. For purposes of this policy, MN River Valley Transit will use formal procedures for all purchases over $175,000. ## 5.3.3.2. Approval Authority Large purchases must be approved in writing by the following MN River Valley Transit employees or officials: ## • Compliance Manager ## • Operations Manager ## • City Administrator ## • Governing Board No further delegation of approval authority for large purchases may be made. ## 5.3.3.3. Procurement Methods There are two primary methods of procurement for large purchases of products and services: • Sealed Bid method (IFB); and • Competitive Proposal (RFP) method. ## 5.3.3.4. Required Competition Formal bids and competitive proposals must be publicly advertised. 2 C.F.R. 200.320(b). For formal purchases by the sealed bid method of procurement, two or more responsible bidders must be willing and able to compete effectively for the business. 2 C.F.R. 200.320(b)(1)(i)(B). For formal purchases by the competitive proposal method of procurement, two or more offerors must be willing and able to submit an offer or proposal. 2 C.F.R. 200.320(b)(2). ## 5.3.3.5. Required Documentation Every formal purchase must, at a minimum, be supported by a written independent cost estimate, formal bids or proposals, a written cost or price analysis as appropriate, a written justification and detailed rationale for contractor selection (including application of evaluation criteria) and a written determination of the responsibility of the contractor. Additional documentation requirements are dependent upon the formal procurement method that is utilized to make the purchase. 2 C.F.R. 200.320; 2 C.F.R. 200.324(a). ## 5.3.3.6. Procedural Methods for Sealed Bids The sealed bid method of procurement is a formal method in which bids are publicly solicited and a firm fixed price contract is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the Invitation for Bids (IFB), is lowest in price. The IFB document contains technical specifications for the product or service to be purchased, a 30 description of the procedures for submitting a bid, and the forms on which bids must be submitted. 2 C.F.R. 200.320(b)(1). (a) When Appropriate – The sealed bid method of procurement is the preferred method for acquiring products and services that, including construction services, cost greater than simplified threshold or Small Purchase threshold. The sealed bid method of procurement may also be used for small purchases if it is determined to be appropriate. The sealed bid method of procurement is appropriate if the following conditions apply: (1) Precise Specifications – A complete, adequate, precise, and realistic specification or purchase description is available. (2) Adequate Sources – Two or more responsible bidders are willing and able to compete effectively for the business. (3) Fixed Price Contract – The procurement generally lends itself to a firm fixed price contract. (4) Price Determinative – The successful bidder can be selected on the basis of price and those price-related factors listed in the solicitation including, but not limited to, transportation costs, life cycle costs, and discounts expected to be taken. Apart from responsibility determinations, contractor selection may not be determined on the basis of other factors whose costs cannot be measured at the time of award. (5) Discussions Unnecessary – Discussions with one or more bidders after bids have been submitted are expected to be unnecessary as award of the contract will be made based on price and price-related factors alone. FTA C. 4220.1G, Chpt. VI(3)(c)(1)(d). (b) Requirements for Sealed Bids – The following requirements apply to the sealed bid method of procurement: (1) Publicity – The Invitation for Bids must be publicly advertised. i. The Compliance Manager shall ensure that sufficient time is allowed to prepare bids before the date of bid opening. ii. Notice of bidding opportunities may be provided in other ways in addition, but not as a substitute, to a published notice. The methods may include, but not necessarily be limited to: a. Direct notice, based on compiled vendor lists or from pre- qualification list, sent to prospective offerors; or b. Use of advertisement by electronic means. (2) Adequate Sources – Bids must be solicited from an adequate number of known suppliers. (3) Adequate Specifications – The Invitation for Bids, including any specifications and pertinent attachments, must describe the property or services sought in sufficient detail that a prospective bidder will be able to submit a proper bid. (4) Sufficient Time – Bidders must be allowed sufficient time to prepare bids before the date of bid opening. (5) Public Opening – All bids must be publicly opened at the time and place prescribed in the Invitation for Bids. 31 (6) Fixed Price Contract – A firm fixed price contract must be awarded in writing to the lowest responsive and responsible bidder unless the Invitation for Bids specifically allowed for award of a fixed price incentive contract or the inclusion of an economic price adjustment provision. (7) Rejection of Bids – Any or all bids may be rejected if there is a sound, documented business reason. FTA C. 4220.1G, Chpt. IV(3)(c)(2)(e). ## 5.3.3.7. Competitive Proposals The competitive proposal method of procurement is a formal method in which written proposals are publicly solicited and a contract is awarded to the responsible offeror whose proposal, taking into consideration price and other factors, is considered to be the most advantageous to MN River Valley Transit or that is considered to be the “best value” to MN River Valley Transit . The vehicle through which proposals are solicited is Request for Proposals (RFP). The RFP document contains technical specifications for the product or service to be purchased, a description of the procedures for submitting a proposal and the forms on which proposals must be submitted, if applicable. FTA C. 4220.1G, Chpt. VI(3)(d). (a) When Appropriate – The competitive proposal method of procurement is appropriate for the acquisition of products and services that cost greater than $5,001 when the nature of the procurement does not lend itself to sealed bidding and MN River Valley Transit expects that more than one source will be willing and able to submit a proposal. The competitive proposal method of procurement may also be used for small purchases if it is determined to be appropriate. The competitive proposal method of procurement may not be used for the procurement of construction services. The competitive proposal method of procurement is appropriate when any of the following circumstances are present: (1) Type of Specifications – The products or services to be acquired are described in a performance or functional specification, or if described in detailed technical specifications, other circumstances such as the need for discussions or the importance of basing contract award on factors other than price alone are present. (2) Uncertain Number of Sources – Uncertainty about whether more than one bid will be submitted in response to an Invitation for Bids. (3) Price Alone Not Determinative – Due to the nature of the procurement, contract award need not be based exclusively on price or price-related factors. (4) Discussions Expected – Separate discussions with individual offerors are expected to be necessary after they have submitted their proposals. FTA C. 4220.1G, Chpt. VI(3)(d)(1)(d). (b) Requirements for Competitive Proposals – The following requirements apply to the competitive proposal method of procurement: (1) Publicity – The Request for Proposals must be publicly advertised. (2) Evaluation Factors – All evaluation factors and their relative importance must be specified in the solicitation, but numerical or percentage ratings or weights need not be disclosed. 32 (3) Adequate Sources – Proposals must be solicited from an adequate number of qualified sources. (4) Evaluation Method – A specific method must be established and used to conduct technical evaluations of the proposals received and to determine the most qualified offeror. (5) Price and Other Factors – An award must be made to the responsible offeror whose proposal is most advantageous to MN River Valley Transit or that represents the “best value” to MN River Valley Transit with price and other factors considered. (6) Best Value – MN River Valley Transit may award a contract to the offeror whose proposal provides the greatest value to MN River Valley Transit . To do so, the solicitation must inform potential offerors that the award will be made on a “best value” basis and identify what factors will form the basis for award. MN River Valley Transit must base its determination of which proposal represents the “best value” on an analysis of the tradeoff of qualitative technical factors and price or cost factors. FTA C. 4220.1G, Chpt. IV(3)(d)(2). ## 5.3.3.8. Two-Step Procurements MN River Valley Transit may use two-step procurement procedures in both sealed bid and competitive proposal procurements, provided the opportunity for full and open competition is retained. FTA C. 4220.1G, Chpt. VI(3)(e). Review of Technical Qualifications and Approach – The first step is a review of the prospective contractors’ technical approach to MN River Valley Transit 's request and their technical qualifications to carry out that approach followed by the establishment of a competitive range consisting of prospective contractors that demonstrate a technically satisfactory approach and have satisfactory qualifications. FTA C. 4220.1G, Chpt. IV(3)(e)(1). Review of Bids and Proposals Submitted by Qualified Prospective Contractors – The second step consists of soliciting and reviewing complete bids or proposals, including price, submitted by each prospective contractor determined to be qualified. Absent exceptional circumstances, bids or proposals must be solicited from at least three qualified prospective contractors. FTA C. 4220.1G, Chpt. IV(3)(e)(2). ## 5.3.3.9. Architectural and Engineering (A&E) Services and Other Services FTA’s enabling legislation at 49 U.S.C. § 5325(b)(1) requires the use of the qualifications-based procurement procedures contained in the “Brooks Act,” 40 U.S.C. § 1101 through 1104, to acquire A&E services. FTA C. 4220.1G, Chpt. VI(3)(f). (a) Qualifications-Based Procurement Procedures Required – MN River Valley Transit must use qualifications-based procurement procedures to acquire architectural and engineering (A&E) services as well as certain other services that are directly in support of, directly connected to, directly related to, or lead to construction, alteration, or repair of real property. In addition to A&E services, other services that must be procured by qualifications-based procurement procedures include: 33 • Program management; • Construction management; • Feasibility studies; • Preliminary engineering; • Design, architectural, engineering; • Surveying, mapping; and • Other related services. The nature of the work to be performed and its relationship to construction, not the nature of the prospective contractor, determine whether qualifications-based procurement procedures may be used. FTA C. 4220.1G, Chpt. IV(3)(f)(1). (b) Purpose of Services. The use of qualifications-based procurement procedures is authorized only for those services that directly support or are directly connected or related to construction, alteration, or repair of real property. Thus, if services, such as program management, feasibility studies, or mapping, are not directly in support of, directly connected to, or directly related to, or lead to construction, alteration, or repair of real property, then the recipient must not use qualifications-based procurement procedures to select the contractor that will perform those services. FTA C. 4220.1G, Chpt. IV(3)(h)(2)(a). (c) Qualifications-Based Procurement Procedures – The following procedures apply to qualifications-based procurements: (1) Qualifications – Unlike other two-step procurement procedures in which price is an evaluation factor, an offeror’s qualifications are evaluated to determine contract award. (2) Price – Price is excluded as an evaluation factor. (3) Most Qualified – Price negotiations are first conducted with only the most qualified offeror. (4) Next Most Qualified - Only after failing to agree on a fair and reasonable price may negotiations be conducted with the next most qualified offeror. Then, if necessary, negotiations with successive offerors in descending order may be conducted until contract award can be made to the offeror whose price the recipient believes is fair and reasonable. FTA C. 4220.1G, Chpt. VI(3)(f)(2). ## 5.4. Noncompetitive Procurements Normally, MN River Valley Transit must provide for full and open competition when soliciting bids or proposals. Federal regulations at 2 C.F.R. 200.320(f)(1) – (4), however, acknowledges that under certain circumstances, a recipient may conduct procurements without providing for full and open competition. ## 5.4.1. When Appropriate Noncompetitive procurement procedures may only be used when the procurement is inappropriate for small purchase procedures, sealed bids, or competitive proposals, and at least one of the following circumstances are present: 34 ## 5.4.1.1. Adequate Competition If after soliciting several sources, competition is determined inadequate, a recipient may make a noncompetitive award. If a recipient receives inadequate competition in response to its solicitation, it should review its specifications to determine if they are unduly restrictive or if changes can be made to encourage submission of more bids or proposals. After the recipient determines that the specifications are not unduly restrictive and changes cannot be made to encourage greater competition, the recipient may make a noncompetitive award. ## 5.4.1.2. Sole Source When MN River Valley Transit requires products or services available from only one responsible source, and no other products or services will satisfy its requirements, MN River Valley Transit may make a sole source award. In addition, when MN River Valley Transit requires an existing contractor to make a change to its contract that is beyond the scope of that contract, MN River Valley Transit will consider the change a sole source award that must be justified. Sole source awards are only appropriate when one of the following conditions apply: (a) Unique Capability or Availability – The products or services are available from only one source if one of the conditions described below is present: (1) Unique or Innovative Concept – The offeror demonstrates a unique or innovative concept or capability not available from another source. Unique or innovative concept means a new, novel, or changed concept, approach, or method that is the product of original thinking, the details of which are kept confidential or are patented or copyrighted, and is available to MN River Valley Transit only from one source and has not in the past been available to MN River Valley Transit from another source. (2) Patents or Restricted Data Rights – Patent or data rights restrictions preclude competition. (3) Substantial Duplication Costs – In the case of a follow-on contract for the continued development or production of highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in substantial duplication of costs that are not expected to be recovered through competition. (4) Unacceptable Delay – In the case of a follow-on contract for the continued development or production of a highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in unacceptable delays in fulfilling MN River Valley Transit 's needs. FTA C. 4220.1G, Chpt. VI(3)(h)(1)(b)(4). (b) Single Bid or Proposal – Upon receiving a single bid or proposal in response to a solicitation, MN River Valley Transit should determine if competition was adequate. This should include a review of the specifications for undue restrictiveness and might include a survey of potential sources that chose not to submit a bid or proposal. 35 (1) Adequate Competition – Competition is adequate when the reasons for a single response were caused by conditions beyond MN River Valley Transit 's control. (2) Inadequate Competition – Competition is inadequate when the reasons for a single response were caused by conditions within MN River Valley Transit 's control. FTA C. 4220.1G, Chpt. IV(3)(i)(1)(b)(2). (c) Exigency or Emergency – MN River Valley Transit may limit the number of sources from which it solicits bids or proposals when MN River Valley Transit has such an unusual and urgent need for the products or services that MN River Valley Transit would be seriously injured unless it were permitted to limit the solicitation. MN River Valley Transit may also limit the solicitation when the public exigency or emergency will not permit a delay resulting from competitive solicitation for the products or services. FTA C. 4220.1G, Chpt. VI(3)(h)(1)(c). (d) Authorized by MnDOT – MN River Valley Transit may request permission from MnDOT to allow it to use noncompetitive proposals for a particular procurement. FTA C. 4220.1G, Chpt. VI(3)(i)(1)(e). (e) When Prohibited – Less than full and open competition is not justified based on: (1) Failure to Plan – MN River Valley Transit 's lack of advance planning, resulting in limited competition, is not justification for a sole source or single bid award. (2) Limited Availability of Federal Assistance – Concerns about the amount of Federal assistance available to support the procurement. FTA C. 4220.1G, Chpt. VI(3)(i)(2). (f) Procurement Procedures – The following requirements apply when MN River Valley Transit completes a procurement utilizing less than full and open competition: (1) Potential Sources – MN River Valley Transit must solicit offers from as many potential sources as is practicable under the circumstances. (2) Sole Source Justification – MN River Valley Transit must justify all sole source procurements in writing. Sole source procurement justifications must describe the reasons for why a sole source procurement is appropriate, state which of the authorized justifications listed in Section 5.6.1.2 are applicable, include a cost analysis and be signed by the Procurement Officer. If MN River Valley Transit decides to solicit an offer from only one source, MN River Valley Transit must justify its decision in writing. The written justification must include the same elements as a sole source justification except that it must state which of the authorized justifications listed in Section 5.6.1.2 are applicable to the sole source purchase. (3) Cost Analysis – MN River Valley Transit must prepare or obtain a cost analysis verifying the proposed cost data, the projections of the data, and the evaluation of the costs and profits. A price analysis shall not be adequate to justify a sole source purchase. FTA C. 4220.1G, Chpt. VI(3)(h)(3)(c). 36 (g) Exception for Procurement Activities Using Non-FTA Funds – When it is determined by the Compliance or Operations mangers to be in the best interest of MN River Valley Transit , noncompetitive procurement procedures may be utilized to acquire professional or other transportation-related services that do not involve the use of FTA or State financial assistance. Any such determination must be requested and authorized in writing by MnDOT. ## 5.5. Evaluation Requirements The following standards shall apply to all evaluations of bids or proposals conducted by MN River Valley Transit . 5.5.1. General When evaluating bids or proposals received in response to a solicitation, MN River Valley Transit shall consider all evaluation factors specified in the solicitation documents and shall evaluate the bids or offers proposals only on the evaluation factors included in those solicitation documents. MN River Valley Transit may not modify its evaluation factors after bids or proposals have been received without re- opening the solicitation. FTA C. 4220.1G, Chpt. VI(5). 5.5.2. Options The following standards shall apply when awarding contracts that include options: ## 5.5.2.1. Evaluation Required In general, MN River Valley Transit must evaluate bids or offers for any option quantities or periods contained in a solicitation if it intends to exercise those options after the contract is awarded. For formal procurements, the use of a team to conduct the evaluation will be used. ## 5.5.2.2. Evaluation Not Required MN River Valley Transit need not evaluate bids or offers for any option quantities when MN River Valley Transit does not intend to exercise those options after the contract is awarded or if it determines that evaluation would not otherwise be in its best interests. FTA C. 4220.1G, Chpt. VI(5)(b). ## 5.6. Contract Award Requirements The following standards shall apply to all contract award decisions made by MN River Valley Transit : ## 5.6.1. Award to Other Than the Lowest Bidder or Offeror MN River Valley Transit may award a contract to other than the lowest bidder if the award furthers an objective consistent with the purposes of 49 U.S.C. Chapter 53, including improved long-term operating efficiency and lower long-term costs. MN River Valley Transit may also award a contract to other than the offeror whose price proposal is lowest, when stated in the evaluation factors of the solicitation. In both cases, MN River Valley Transit must include a statement in its solicitation document reserving the right to award the contract to other than the low bidder or offeror. FTA C. 4220.1G, Chpt. VI(6)(a). ## 5.6.1.1. Award Only to a Responsible Bidder or Offeror MN River Valley Transit may only award contracts to responsible contractors possessing the ability, willingness, and integrity to perform successfully under the terms and conditions of the 37 contract and who demonstrate that its proposed subcontractors also qualify as responsible. MN River Valley Transit must consider such matters as contractor integrity, compliance with public policy, record of past performance and financial and technical resources when making a determination of contractor responsibility. MN River Valley Transit must also ensure that the contractor is not listed as a debarred or suspended contractor on the System for Award Management (SAM), which is maintained by the General Services Administration (GSA), at the time of contract award. Entities that are listed as debarred or suspended contractors on SAM may not be determined to be responsible contractors by MN River Valley Transit . For every procurement action above the micro-purchase level, MN River Valley Transit must make a written determination of the responsibility of the contractor and include such determination in the applicable contract file (See Section 3.6). To designate a prospective contractor “responsible” as required by 49 U.S.C. § 5325, MN River Valley Transit , at a minimum, must determine and ensure that the prospective contractor satisfies the criteria of Integrity and Ethics, Debarment and Suspension, Affirmative Action and DBE, Public Policy, Administrative and Technical Capacity, Licensing and Taxes, Financial Resources, Production Capability, Timeliness, and Performance Record. FTA C. 4220.1G, Chpt. VI(6)(b). 5.6.1.2. Rejection of Bids and Proposals MN River Valley Transit may reject all bids or proposals submitted in response to an Invitation for Bids or Request for Proposals. MN River Valley Transit must include a statement in its solicitation document reserving the right to reject all bids or proposals. (a) Extent and Limits of Contract Award – The selection of a contractor to participate in one aspect of a project does not, by itself, constitute a sole source selection of the contractor’s wholly owned affiliates to perform other work in connection with the project. FTA C. 4220.1G, Chpt. VI(6)(h). ## 5.6.2. Affirmative Action and DBE Is in compliance with the Common Grant Rules’ affirmative action and FTA’s Disadvantaged Business Enterprise requirements, including completing an ICE and Scope of Work for any federally or state funded projects over $5,000. 2 C.F.R. 200.321. ## 5.7. Independent Cost Estimate and Cost and Price Analysis ## 5.7.1. Independent Cost Estimate For every solicitation above the micro-purchase threshold, MN River Valley Transit shall make a written independent estimate of cost prior to receiving price quotes, bids or proposals. FTA C. 4220.1G, Best Practices 4.6.1. ## 5.7.2. Cost or Price Analysis MN River Valley Transit shall perform a cost or price analysis in connection with every procurement over $350,000, and ensure a Cost Analysis for all sole source and contract modifications. 2 C.F.R. 200.324(a); FTA C. 4220.1G, Chpt. IV(6). 38 ## 5.7.2.1. Price Analysis If MN River Valley Transit determines that competition was adequate, a written price analysis, rather than a cost analysis, is required to determine the reasonableness of the proposed contract price. 2 C.F.R. 200.324(a); FTA C. 4220.1G, Chpt. VI(4)(a). ## 5.7.2.2. Cost Analysis MN River Valley Transit must perform or obtain a cost analysis when: (a) A price analysis will not provide sufficient information to determine the reasonableness of the contract cost. (b) When the offeror submits elements of the estimated cost. (c) When only a sole source is available, even if the procurement is a contract modification. (d) In the event of a change order. 2 C.F.R. 200.324(a); FTA C. 4220.1G, Chpt. VI(4)(b). ## 6. CONTRACT ADMINISTRATION REQUIREMENTS AND CONSIDERATIONS ## 6.1. MN River Valley Transit Staff Responsibilities Prior to execution of third party contracts, MN River Valley Transit shall designate the Compliance Manager to serve as MN River Valley Transit 's principal contact with the contractor and as the primary administrator of the contract. The designated Compliance Manager for each contract shall have responsibility for directing and overseeing the work performed by the contractor; reviewing and approving deliverables and invoices from the contractor; determining percentage of contract completion for progress payments (if applicable); making recommendations on the exercise of contract options (if applicable); recommending contract changes; preparing justifications for contract changes; performing independent cost estimates and cost or price analyses for contract changes; making recommendations on approval or rejection of subcontractors; assisting with the resolution of contract disputes; making recommendations on contract termination or other contractor disciplinary actions; maintaining complete contract files; and other contract administration duties that may be necessary. 6.2. Administrative Restrictions on the Acquisition of Property and Services The following Federal laws and regulations impose administrative requirements, many of which will affect specific third-party procurements. ## 6.2.1. Legal Eligibility The property or services acquired must be eligible for support under the scope or restrictions accompanying the Federal statute or State laws authorizing the Federal and/or State assistance to be used. FTA C. 4220.1G, Chpt. VI(1)(a). 6.2.2. Period of Performance MN River Valley Transit will use sound business judgment and be judicious in establishing and extending a contract’s period of performance. FTA C. 4220.1G, Chpt. VI(2)(b)(3). 39 ## 6.2.2.1. General Standards The period of performance generally should not exceed the time necessary to accomplish the purpose of the contract. MN River Valley Transit will also consider competition, pricing, fairness, and public perception. MN River Valley Transit 's procurement files will document its rationale for determining the performance period designated for each contract. FTA C. 4220.1G, Chpt. VI(2)(b)(3)(a). ## 6.2.2.2. Time Extensions Consistent with the general tone of FTA Circular 4220.1G, contract time extensions shall be considered in light of whether they are permissible changes or impermissible cardinal changes. Once MN River Valley Transit awards a third-party contract, an extension of the contract term length that amounts to a cardinal change will require a sole source justification. FTA C. 4220.1G, Chpt. VI(2)(b)(3) (c). 6.2.2.3. Authority to Extend The Compliance or Operation manager has the sole authority to approve and execute contract modifications. The Compliance Manager for the contract shall recommend all contract time; prior to making a recommendation for a contract time extension. The Compliance Manager shall prepare a written justification and cost analysis for the contract time extension and shall negotiate the appropriate contract modification with the contractor. ## 6.3. Federal Cost Principles Federal rules require project costs to conform to applicable Federal cost principles for allowable costs. In general, costs must be necessary and reasonable, allocable to the project, authorized or not prohibited by Federal or State law or regulation, and must comply with Federal cost principles applicable to the recipient. FTA C. 4220.1G, Chpt. VI(2)(b)(4). OMB guidance for grants and agreements, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” 2 CFR § 200, applies to project costs incurred MN River Valley Transit . ## 6.4. Payment Provisions MN River Valley Transit will follow the provisions of this section when using Federal or State funds to support its third party contracts. FTA C. 4220.1G, Chpt. VI(2)(b)(5). 6.4.1. Financial Support for the Project Costs may only be incurred by MN River Valley Transit if MnDOT or FTA has awarded a financial assistance contract to MN River Valley Transit . ## 6.4.1.1. Progress Payments Progress payments are payments for contract work that has not been completed. MN River Valley Transit may use MnDOT assistance to support progress payments provided the recipient obtains adequate security for those payments and has sufficient written documentation to substantiate the work for which payment is requested. FTA C. 4220.1G, Chpt. VI(2 )(b)(5) (b). 40 ## 6.4.1.2. Adequate Security for Progress Payments Adequate security for progress payments may include taking title or obtaining a letter of credit or taking equivalent measures to protect the recipient’s financial interest in the progress payment. Adequate security should reflect the practical realities of different procurement scenarios and factual circumstances. MN River Valley Transit should always consider the costs associated with providing security (for example, the recipient may need to acquire bonds or letters of credit in the commercial marketplace) and the impact of those costs on the contract price, as well as the consequences of incomplete performance. FTA C. 4220.1G, Chpt. VI(2)(b)(5)(b)(a). ## 6.4.1.3. Adequate Documentation Sufficient documentation is required to demonstrate completion of the amount of work for which progress payments are made. FTA C. 4220.1G, Chpt. VI(2)(b)(5)(b)(b). ## 6.4.1.4. Percentage of Completion Method Federal rules require that any progress payments for construction contracts be made on a percentage of completion method described therein. MN River Valley Transit , however, may not make progress payments for other than construction contracts based on this percentage method. FTA C. 4220.1G ## 6.5. Protections Against Performance Difficulties MN River Valley Transit shall include provisions in its third-party contracts that will reduce potential problems that might occur during contract performance, as follows: 6.5.1. Changes MN River Valley Transit shall include provisions that address changes and changed conditions in all third-party contracts except for routine supply contracts. FTA C. 4220.1G, Chpt. IV(2)(b)(9) (c). 6.5.2. Remedies MN River Valley Transit shall include provisions that address remedies in its third-party contracts. Provisions related to remedies may include provisions for: ## 6.5.2.1. Liquidated Damages MN River Valley Transit may use liquidated damages if MN River Valley Transit reasonably expects to suffer damages through delayed contract completion, or if weight requirements are exceeded, and the extent or amount of such damages are uncertain and would be difficult or impossible to determine. Rate and measurement standards must be calculated to reasonably reflect MN River Valley Transit 's costs should the standards not be met and must be specified in the solicitation and contract. The assessment for damages may be established at a specific rate per day for each day beyond the contract’s delivery date or performance period. A measurement other than a day or another period of time, however, may be established if that measurement is appropriate, such as weight requirements in a rolling stock purchase. The contract file must include a record of the calculation and rationale for the amount of damages established. Any liquidated damages recovered must be credited to the transit system account. FTA C. 4220.1G, Chpt. IV(2)(b)(9)(d). 41 6.5.2.2. Remedies Third party contracts exceeding $250,000 must include administrative, contractual, or legal remedies for violations or breach of the contract by the third-party contractor. FTA C. 4220.1G, Chpt. IV(b)(6)(b)(2). 6.5.2.3. Suspension of Work MN River Valley Transit may include provisions pertaining to suspension of work in its third- party contracts. FTA C. 4220.1G 6.5.2.4. Termination Termination for cause and termination for convenience provisions must be included in third party contracts exceeding $10,000. FTA C. 4220.1G, Chpt. IV(2)(b)(9)(b). ## 6.6. Contents of Complete Contract Files The following documents shall comprise the contents of a complete contract file for procurements above the micro-purchase level: ## 6.6.1. Written Record of Procurement History MN River Valley Transit shall maintain written records detailing the history of the procurement, including records relating to: ## 6.6.1.1. Procurement Method MN River Valley Transit must provide its rationale for the method of procurement it used for each contract, including a sole source justification for any acquisition that does not qualify as competitive. FTA C. 4220.1G, Chpt. III(3)(a)(5). ## 6.6.1.2. Contract Type MN River Valley Transit must state the reasons for selecting the contract type it used. FTA C. 4220.1G, Chpt. III(3)(d)(1)(b). ## 6.6.1.3. Contractor Selection MN River Valley Transit must state its reasons for contractor selection or rejection, including written justification and evaluation documents. FTA C. 4220.1G, Chpt. III(3)(d)(1)(c). ## 6.6.1.4. Contractor Responsibility MN River Valley Transit must provide a written determination of responsibility for the successful contractor. FTA C. 4220.1G, Chpt. III(3)(d)(1)(c). 6.6.1.5. Cost or Price MN River Valley Transit must evaluate and state its justification for the contract cost or price, including the independent cost estimate and cost or price analysis. FTA C. 4220.1G, Chpt. III(3)(d)(1)(d). 42 ## 6.6.1.6. Reasonable Documentation MN River Valley Transit must retain documentation commensurate with the size and complexity of the procurement, including documents related to solicitation, receipt, and evaluation of offers, and contract award, negotiation and execution. FTA C. 4220.1G, Chpt. III(3)(d)(2). ## 6.7. Contract Administration and Close-Out Documents MN River Valley Transit shall maintain written records detailing the performance and close-out of the contract, including records relating to: ## 6.7.1. Contract Deliverables MN River Valley Transit must maintain copies of all contract deliverables and records relating to approval, rejection and requested modifications of contract deliverables. ## 6.7.2. Contract Changes MN River Valley Transit must maintain copies of all contract modifications, including documentation related to the determination of need, written justification and rationale, cost analysis, negotiation, and execution. ## 6.7.3. Contract Payments MN River Valley Transit must retain documentation of invoices, approval of payments, requests for modifications to invoices, determination of percentage of contract completion for partial payments (if applicable), and ownership of title to partial work products. ## 6.7.4. Contract Close-Out MN River Valley Transit must retain documentation related to contractor performance and evaluation, approval of final deliverables and payments, transfer of title to complete work products to MN River Valley Transit , and contract audit and final reconciliation. ## 6.8. Protest Procedures See 2 C.F.R. 200.318(k); FTA C. 4220.1G, Best Practices 4.9. 6.8.1. Recipient Responsibilities and FTA Role in Procurement Disputes. MN River Valley Transit is responsible for resolving all contractual and administrative issues, including protests of evaluations and contract awards, arising out of its third-party procurements using good administrative practices and sound business judgment. FTA C. 4220.1G, Chpt. III (7). In general, MnDOT will not substitute its judgment for that of MN River Valley Transit unless the matter is primarily a federal concern. Nevertheless, MnDOT and FTA can become involved in MN River Valley Transit 's administrative decisions when a MN River Valley Transit protest decision is appealed to MnDOT. MN River Valley Transit 's procedure for addressing third party procurement protests is described in Paragraph 6.9.2 below. MN River Valley Transit shall insert its protest procedure in all solicitation documents for products and services having an estimated value of $100,000 or greater. 43 ## 6.8.2. MN River Valley Transit Staff Responsibilities The following staff responsibilities shall be assigned in all protests: Compliance Manager-Responsibilities include: ensuring that the MN River Valley Transit Protest Procedure is included in all solicitation documents; and providing information to and assisting the legal counsel with the resolution of protests. • City Administrator and Governing Board – Responsibilities include reviewing all procurement protests; and advising and assisting the Subrecipient as needed with the resolution of all procurement protests. ## 6.8.3. Solicitation Provision MN River Valley Transit shall insert the following provision in all solicitation documents: ## 6.8.3.1. Pre-Proposal Protests All protests concerning solicitation specifications, criteria and/or procedures shall be submitted in writing (defined as being sent or received via letter or facsimile on official firm/agency letterhead or by electronic mail) to the Procurement Officer as specified below not later than ten (10) business days prior to the deadline for submission of bids/proposals. The Procurement Officer may, within his or her discretion, postpone the deadline for submission of bids/proposals, but in any case, shall provide a written response to all protests not later than five (5) business days prior to the deadline for submission of bids/proposals. If the deadline for submission of bids/proposals is postponed by the Procurement Officer as the result of a protest the postponement will be announced through an addendum to the solicitation. The decision by the Procurement Officer shall be the final agency decision on the matter but shall be subject to judicial review as set forth by FTA below. ## 6.8.3.2. Pre-Award Protests With respect to protests made after the deadline for submission of bids/proposals but before contract award by MN River Valley Transit , protests shall be limited to those protests alleging a violation of Federal or State law, a challenge to the bids/proposals evaluation and award process, MN River Valley Transit 's failure to have or follow its protest procedures or its failure to review a complaint or protest. Such protests shall be submitted in writing (defined as being sent or received via letter or facsimile on official firm/agency letterhead or by electronic mail) to the Procurement Officer as specified below not later than five (5) business days after the Recommendation for Contract Award announcement by MN River Valley Transit . The Procurement Officer may, within his or her discretion, postpone the award of the contract, but in any case, shall provide a written response to all protests not later than three (3) business days prior to the date that MN River Valley Transit shall announce the contract award. The decision by the Procurement Officer shall be the final agency decision on the matter but shall be subject to judicial review as set forth or review by MnDOT as specified below. 44 6.8.4. Requirements for Protests All protests must be submitted to MN River Valley Transit in writing (defined as being sent or received via letter or facsimile on official firm/agency letterhead or by electronic mail), with sufficient documentation, evidence and legal authority to demonstrate that the Protestor is entitled to the relief requested. The protest must be certified as being true and correct to the best knowledge and information of the Protestor, and be signed by the Protestor. The protest must also include a mailing address to which a response should be sent. Protests received after the deadlines for receipt of protests specified above are subject to denial without any requirement for review or action by MN River Valley Transit . All protests must be directed in writing (defined as being sent or received via letter or facsimile on official firm/agency letterhead or by electronic mail) to the Procurement Officer at the address shown in the solicitation documents. ## 6.8.5. Protest Response The Procurement Officer shall issue written responses to all protests received by the required protest response dates. All protest responses shall be transmitted by first-class U.S. Postal Service to the address indicated in the protest letter. For convenience, MN River Valley Transit will also send a copy of the response to a protest to the Protester by facsimile and/or electronic mail if a facsimile number and/or electronic mail address are indicated in the protest letter. The protest response transmitted by U.S. Postal Service shall be the official MN River Valley Transit response to the protest and MN River Valley Transit will not be responsible for the failure of the Protester to receive the protest response by either facsimile or electronic mail. 6.8.6. Review of Protests by MnDOT All protests or complaints involving contracts financed with state or Federal assistance shall be disclosed to MnDOT and will keep FTA informed about the status of any such protest or complaint. MN River Valley Transit shall disclose all information about any third party procurement protest to MnDOT upon request. Protesters shall exhaust all administrative remedies with MN River Valley Transit prior to pursuing protests with MnDOT. MnDOT limits its reviews of protests to: a grantee’s failure to have or follow its protest procedures; a grantee’s failure to review a complaint or protest when presented an opportunity to do so; or violations of Federal law or regulation. Appeals to MnDOT must be received within five (5) working days of the date the Protester has received actual or constructive notice of MN River Valley Transit final decision or within five (5) working days of the date the Protester has identified other grounds for appeal to MnDOT. 45 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## MINNESOTA RIVER VALLEY TRANSIT) ## RESOLUTION WHEREAS, the MRVT Board policy and rules for operations of the transit service, and WHEREAS, recommendations and changes to the current procurement policy have been provided by MNDOT and other, and WHEREAS, Staff has made changes to update the policy and is recommending adoption of a new policy. NOW, THEREFORE, BE IT RESOLVED BY THE MRVT BOARD THAT: the MRVT Procurement Policy is approved and directed for use. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 14 th day of July, 2026. ___________________________________ ## Mark Huntington ## Chairperson ## ATTEST: _________________________________ ## Todd Prafke ## Saint Peter City Administrator 46 ## TO: Chair Huntington and Members DATE: 07/13/26 ## FROM: Todd Prafke, City Administrator ## RE: Saint Peter Lease ## ACTION/RECOMMENDATION Approve the attached resolution providing for garage office and storage space at the new Saint Peter City Hall. ## BACKGROUND Members may recall at your previous meeting that a draft lease was provided for your review period that lease has been reviewed by city of Saint Peter city attorney and by Joe Robbie, city administrator for LeSueur The lease is substantially similar to the previous lease, meaning that no square foot cost changes have been implemented. Only the amount of square feet has changed from the City Hall which was previously located at 227 S front St. to the new City Hall which is located on Civic Way in St. Peter MN. Effectively the amount of square feet has slightly more than doubled. The provision within the budget for this level of expenditure was provided for in 2026 and is planned for your 2027 budget which you will be discussing as a part of this same meeting. It's important to note that the lease does not have an end date rather it has a provision by which either the MRVT Board or City of Saint Peter can terminate with 120 he's notice. Again, this is substantially similar to the lease that is in place with the city of Lee sewer. The new space provides double the indoor parking, larger office and storage areas. It is hoped that it will provide for more efficient and effective utilization of resources and enhance services through avoidance of some of the outdoor storage challenges that we experience seasonally. The City of Saint Peter has reviewed this lease and provided for its approval and offer to the MRV T Board. This constitutes that offer. ## FISCAL IMPACT 47 The total cost of the lease is slightly more than doubled from your previous lease to approximately $29,000 per year and is accounted for in your 2026 and proposed 2027 budget and grant application. ## ALTERNATIVES AND VARIATIONS Do not act. Staff will wait for additional direction however it's important to note the move took place coincident to the city of Saint Peter move and occupancy occurred the first week of July. Negative vote. There would be no lease and place and frankly I'm not sure what would occur next and would need to take a little bit of time to untangle the situation. We would provide a report on what that looks like to the Board. Modify the resolution. This is always an option of the Board. Please feel free to contact me if you have any question or concerns. 48 ## LEASE AGREEMENT BY AND BETWEEN THE CITY OF SAINT PETER AND MINNESOTA ## RIVER VALLEY TRANSIT This Agreement is hereby made and entered into this _____ day of _____ by and between the City of Saint Peter, Minnesota, a Minnesota municipal corporation, hereinafter referred to as "Lessor" and Minnesota River Valley Transit, hereinafter referred to as "Lessee". ## WITNESSETH: WHEREAS, Lessor is the owner of a building on lands owned by Lessor, known as Saint ## Peter City Hall ;and WHEREAS, Lessee is desirous of renting a portion of such building together with fixtures and personal property located therein all in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the covenants and agreements herein contained the parties hereto agree as follows, to-wit: 1. Lessor does hereby lease unto Lessee and Lessee does hereby hire from Lessor that portion of City Hall described in “Exhibit A" hereinafter referred to as "Leased Premise" together with access thereto, the use of parking spaces adjacent thereto and the use of the restrooms in such building. 2. Lessee shall use the Leased Premise for office space, the parking of Lessee's transit buses and use of a portion of the garage area of such City Hall for parking, repair and maintenance and providing security for its vehicles and for no other purposes unless mutually agreed upon between the parties hereto. 3. The term of this Lease shall commence on June 1, 2026 and terminate when indicated by either party after receipt of a 120 day written notice. 4. Lessee shall pay to Lessor as rent under this Lease Agreement, the sum of $ 29,918.34 per year to be paid in equal monthly installments commencing June 1, 2026, in the amount of $2,409.86 with succeeding installments in like amount to be due monthly thereafter during the term of this Lease. Any installment of rent accruing under the provisions of this Lease that shall not be paid when due, shall require Lessee at Lessor's option to pay in addition to such rent, a late payment penalty of 5% of such rental payment. 5. Lessee shall not use or permit the Leased Premise of any part thereof to be used for any purpose or purposes other than the purpose or purposes for which the Leased Premise is hereby leased and no use shall be made or permitted to be made of the Leased Premise, or acts done which will cause a cancellation of any insurance policies covering the building located thereon or any part thereof, nor shall Lessee sell or permit to be kept, used or sold in or about the Leased Premise any article which may be prohibited by the standard form of fire insurance policies. Lessee shall, at its own expense, comply with all requirements pertaining to the Leased Premise of any insurance organization or company necessary for the maintenance of insurance as herein provided covering any building or appurtenance at any time located on the Leased Premise. 6. Lessee shall not commit or suffer to be committed any nuisance or waste on the Leased 49 Premise. 7. Lessee shall be responsible during the term of this Lease, at its own expense and without any expense to Lessor, to keep and maintain the Leased Premise in good, sanitary and neat order, condition and repair. 8. Lease shall include basic utilities, including but not limited to electricity, building and liability insurance, telephone and internet service and hook-up, refuse removal and any other utilities that are used on or about the Leased Premise. 9. Lease shall include administrative and computer necessities, including anti-virus, patch Tuesday, firewall, exchange, backup and tapes, website and social media, software and video support, employee applications, purchase orders, payroll/receipt software maintenance, new employee forms and policies, timesheets, log sheets, pre-trip list, and bus maintenance software. (Office staff available to perform transit specific action items for these will be billed through payroll.) 10. In addition to the Leased Premise above described, Lessee shall also be entitled to use personal property owned by Lessor and located on or in the Leased Premise including non-exclusive use of the kitchen and kitchen facilities in the building, telephones, 2-way radios and other communication devices on the Leased Premise, TV, VCR, wireless internet, desks, chairs, filing cabinets, shelving, carpeting, air conditioning, copy machine, tables, waste receptacles, floor mats, computer hutch, storage areas, shovels, broom, ice scrapers, battery charger, remotes for overhead power doors, carbon monoxide gas detector, water softener and fire extinguishers. The use of the above described personal property shall be non-exclusive with the understanding that Lessor may allow other persons or entities to use such personal property. 11. Lessee has examined the Leased Premise and accepts it in its present condition. At the end of the term of this Lease and any and all renewals thereof, Lessee shall quit and surrender the Leased Premise in as good condition as the reasonable use thereof will permit and shall not make any major alterations, additions or improvements to said Premise without the express prior written consent of Lessor which shall not be unreasonably withheld. All erections, alterations, additions and improvements whether temporary or permanent in character which may be made upon the Leased Premise either by Lessee or Lessor (except moveable personal property of Lessee) installed at the expense of Lessee shall be the property of Lessor and shall remain upon and be surrendered with the Leased Premise as part thereof at the termination of this lease. 12. If any action at law or in equity should be brought to recover any rent under this Lease or for or on account of any breach of or to enforce or interpret any of the provisions of this Lease or for the recovery of the possession of the Leased Premise the prevailing party shall be entitled to recover from the other party as part of the prevailing party's costs, reasonable attorney's fees and costs, the amount of which shall be fixed by the court and shall be made a part of any judgment or decree rendered. 13. Lessor shall have the right and privilege of inspecting the Leased Premise at all reasonable times upon reasonable notice given to Lessee during the duration of this Lease and any and all extensions and renewals thereof. 14. Lessee shall not be deemed to be in default hereunder in the payment of rent or the 50 payment of any other monies as herein required or in the furnishing of any bond or insurance policy when required herein unless Lessor shall first give to Lessee seven (7) days written notice of such default and Lessee shall have failed to cure such default within such seven (7) day period. 15. The waiver by Lessor of or the failure of Lessor to take action with respect to any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach of Lessee of any term, covenant or condition of this lease other than the failure to Lessee to pay the particular rental so accepted regardless of Lessor knowledge of such preceding breach at the time of acceptance of such rent. 16. Any holding over after the expiration of the term of this lease with consent of Lessor shall be construed to be a tenancy from year-to-year at the same annual rental as required to be paid by Lessee for the period immediately prior to the expiration of the term hereof and shall otherwise be on the terms and conditions herein specified so far as applicable. 17. The covenants and conditions herein contained shall be subject to the provisions as to assignment, transfer and subletting and shall apply and bind the successors and assigns of the parties hereto. 18. Time is of the essence of this lease and of each and every covenant, term, condition and provision hereof. 19. Lessee shall not sell, assign, or sublet all or any portion of the Leased Premise to a third party without the express written consent of Lessor. In the event that such consent is given by Lessor to any assignment, subletting or transfer such consent shall not be considered to be a waiver of this paragraph with reference to subsequent assignments, sublettings or transfers of all or a portion of the above-described Leased Premise to any other third parties. Such consent shall not be unreasonably withheld. 20. In the event that Lessee should cause the deposit of any hazardous waste or create any environmental problem on the Leased Premise, Lessee shall be responsible for all necessary cleanup of such hazardous substance or environmental problem that may be necessary to satisfy the rules and regulations promulgated by the Minnesota Pollution Control Agency or the United States Environmental Protection Agency. The cost of such clean up shall be Lessee's responsibility and Lessee shall hold Lessor harmless and free and clear of any and all liability in connection therewith and shall indemnify Lessor for any loss occasioned thereby including reasonable attorney's fees and costs. ## 21. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED ## IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA. ## 22. TIME OF THE ESSENCE. TIME IS OF THE ESSENCE AND ALL TERMS OF THIS ## LICENSE. 23. Further Assurances. Each of the parties agree to execute all documents and instruments and to take or to cause to be taken all action which are necessary or appropriate to comply with the terms of this Agreement. 51 24. Amendments, Supplements, etc.. This Agreement may be amended or supplemented at any time by additional written agreements as may mutually be determined by the parties to be necessary, desirable, or expedient to further the purpose of this Agreement or to clarify the intention of the parties. 25. Rights Cumulative. All rights and remedies of each of the parties under this Agreement will be cumulative, and the exercise of one or more rights or remedies will not preclude the exercise of any other right or remedy available under this Agreement or applicable law. 26. Severability. Any term or provision of this Agreement that is invalid or unenforceable will not be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable but remaining rights of the party benefiting from the provision or any other provisions of this Agreement. 27. Execution of Counter-Parts. This Agreement may be executed by one or more counter- parts, each of which will be deemed an original, but all of which together shall constitute one and the same agreement. 28. No Reliance. CITY and TENANT represent to one another that each has read this Agreement and has obtained such advice from counsel as deemed appropriate under the circumstances. Except as clearly indicated, CITY and TENANT have not relieve any promises or representations of the other. 29. Interpretation. This Agreement and any other documents related to it will be interpreted in a fair and neutral manner, without favoring one party over the other. No provision of this Agreement or any other document related to it will be interpreted for or against any party because that party or its legal representatives drafted the provision. 30. Titles and Headings. Titles and headings to sections are inserted for convenience of reference only, and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 52 IN WITNESS WHEREOF the parties have executed this Lease at Saint Peter, Minnesota, on the day and year first written above. ## MINNESOTA RIVER CITY OF SAINT PETER ## VALLEY TRANSIT ____________________________ ________________________________ Mark Huntington Shanon Nowell ## Chairperson Mayor ## ATTEST: _____________________________ ________________________________ ## ______________________ Todd Prafke ## MRVT _______________ City Administrator ## STATE OF MINNESOTA) ## ) SS ## COUNTY OF __________) The foregoing instrument was acknowledged before me this __________ day of ____________, 2026, by Mark Huntington and________________, the chairperson and ____________________ of the Minnesota River Valley Transit. ________________________________ ## Notary Public ## STATE OF MINNESOTA) ## ) SS ## COUNTY OF NICOLLET) The foregoing instrument was acknowledged before me this __________ day of ____________, 2026, by Shanon Nowell and Todd Prafke, the Mayor and City Administrator of the City of Saint Peter. ________________________________ ## Notary Public 53 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## MINNESOTA RIVER VALLEY TRANSIT) ## RESOLUTION WHEREAS, the MRVT Board provides space for parking vehicles administration and storage for operations of the transit system, and WHEREAS, the space that MRVT currently occupies in Saint Peter will be sold and new leasable space has been developed by the City of Saint Peter, and WHEREAS, that new space is slightly more than double the square footage and therefore a new lease is required to accommodate the additional space and cost, and WHEREAS, the city of Saint Peter has approved and is offering a new lease to the MRVT Board. NOW, THEREFORE, BE IT RESOLVED BY THE MRVT BOARD THAT: The Board Chair and Saint Peter City Administrator are directed to enter into a space lease with the city of St. Peter for real estate located at the new City Hall on Civic Way in St. Peter Minnesota. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 14 th day of July, 2026. ___________________________________ ## Mark Huntington ## Chairperson ## ATTEST: _________________________________ ## Todd Prafke ## Saint Peter City Administrator 54 ## TO: Chairperson Sullivan DATE: 7/13/2026 ## Members of the MRVT Board ## FROM: Todd Prafke ## City Administrator ## RE: Gus Bus Contract Approval ## ACTION/RECOMMENDATION Authorize execution of a one-year contract with Gustavus Adolphus College for operation of the Gus Bus. ## BACKGROUND For several years, Minnesota River Valley Transit has contracted with Gustavus Adolphus College Student Senate for operation of the “Gus Bus”. This is a service providing transportation to Gustavus Adolphus College students outside of the regular operational hours on Friday and Saturday evenings. The dates, times and method of pickup and drop off has changed over the years and this contract is consistent with your last contract. Approval of the contract is recommended. Gustavus has demonstrated their agreement through their signature. ## FISCAL IMPACT: This contract is priced at a level that is designed to cover our costs. ## ALTERNATIVES AND VARIATIONS : Do not act: No further action will be taken without additional direction from the Board. Negative vote: Gustavus Adolphus College will be notified that the service will no longer be provided. Modification of the Resolution: This is always an option of the Board. Please feel free to contact me if you have any questions or concerns on this agenda item. ## TP/ks 55 ## TRANSIT SERVICES AGREEMENT BY AND BETWEEN ## GUSTAVUS ADOLPHUS COLLEGE ## AND MINNESOTA RIVER VALLEY TRANSIT THIS AGREEMENT is hereby made and entered into this 14th day of July 2026 by and between MINNESOTA RIVER VALLEY TRANSIT, a Joint Powers Board, hereinafter referred to as "MRVT" and Gustavus Adolphus College, a Minnesota non-profit corporation, hereinafter referred to as "COLLEGE." WHEREAS MRVT operates a public transportation system; and WHEREAS MRVT operates a dial-a-ride transit system wherein customers call MRVT and request transportation; and WHEREAS COLLEGE wishes to retain MRVT’s services for transportation of its students on designated Friday and Saturday evenings during the academic year, in the form of a dial-a-ride system providing for designated locations for pick-up and drop-off of students. NOW, THEREFORE, in consideration of the mutual promises contained herein the parties agree as follows: 1) Hours of Operation: The service shall operate between the hours of 9:00 pm Friday and Saturday evenings to 2:00 am on Saturday and Sunday mornings, respectively. a) Dates Specific by year: i) Academic year contract effective September 4, 2026, through April 25, 2027 (1) Excluded dates in 2026: October 16,17,23, & 24 November 27 & 28 December 18, 19, 25, & 26 (2) Excluded dates in 2027: January 1, 2, 8, & 9 March 5, 6, 26, & 27 2) Term: This agreement shall be effective from September 4, 2026, through April 25, 2027, during College’s academic year with the date exceptions listed above. It may be amended by either party with 30 days’ notice. 3) Rate: COLLEGE shall reimburse MRVT $53.00 for each hour of available service for bus(s) and driver(s). COLLEGE shall reimburse MRVT $38.20 for each hour that one or more buses is providing transit service for a Transit Support Specialist (Dispatch). 4) Service: ## a) Designated Pick-up and Drop-off Points: ## i) South Third Street and West College Nassau ## ii) South Fifth Street and West Jefferson Avenue ## iii) South Seventh Street and West Jefferson Avenue ## iv) South Front Street and Grace Street v) All Campus Locations (all residence halls and the spot known as “Three Flags”) vi) Destinations further off campus will be subject to set scheduled times vii) Other drops at the driver’s discretion 56 b) Dial-a-Ride: Eligible COLLEGE students shall call MRVT at (888) 880-4696 and request a ride only from designated pickup point for transport to, only a designated drop-off point. (Unless the driver agrees, done so at his/her own discretion, to deviate from the route for a student’s needs). ## 5) MRVT's Responsibilities: a) MRVT shall provide a transit bus and driver who shall deliver prompt and courteous service in a comfortable, heated, multiple passenger vehicle which shall be maintained in a clean and safe condition at all times. b) Each bus driver employed by the City of Saint Peter shall hold and maintain in effect during the term of his employment as a driver a valid license issued by the State of Minnesota and for the class necessary to transport persons for hire. Drivers shall wear appropriate, clean attire at all times while operating buses. 6) Insurance: Public liability insurance for the protection of passengers shall be carried at all times by MRVT. The coverage on each bus shall not be less than required by law for personal injury or death of any one person, and for not less than required by law for personal injury or death of two or more persons in any one occurrence, and for not less than required by law for damage to property resulting from any one occurrence. MRVT shall provide COLLEGE with a current copy of the insurance coverage required above. 7) Right to Terminate Agreement: Each party reserves the right to terminate this Agreement upon thirty (30) days written notice to the other party. 8) Right to Refuse Service: MRVT reserves the right to refuse service to any riders who may, at the driver's sole discretion, be a danger to other riders, the driver, or the equipment. 9) Notices: Any notices required under this Agreement shall be made to the following: ## MINNESOTA RIVER ## VALLEY TRANSIT ## Attn: City Administrator ## Todd Prafke ## 1371 Civic Way ## Saint Peter, Minnesota 56082 ## Gustavus Adolphus College ## Attn: Dean of Students Office ## 800 West College Avenue ## Saint Peter, Minnesota 56082 This Agreement is hereby made and entered into the date first written above. ## MINNESOTA RIVER VALLEY TRANSIT GUSTAVUS ADOLPHUS COLLEGE ## Mark Huntington Katie Bishop ## Chairperson Chief of Staff ## ATTEST: ## Todd Prafke ## Saint Peter City Administrator 57 ## MINNESOTA RIVER VALLEY TRANSIT ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION AUTHORIZING EXECUTION OF RENEWAL CONTRACT WITH GUSTAVUS ## ADOLPHUS COLLEGE FOR OPERATION OF “GUS BUS” WHEREAS, Minnesota River Valley Transit has previously provided for operation of the “Gus Bus” through a contract with Gustavus Adolphus College; and WHEREAS, the service provides rides to Gustavus Adolphus College students to certain areas within the Saint Peter community on Friday and Saturday evenings after regular transit operational hours are over; and WHEREAS, these services are provided on specific weekends during the academic year; and WHEREAS, the service provided benefits to both the students and the Saint Peter community. ## NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE MINNESOTA RIVER VALLEY TRANSIT, THAT: The Minnesota River Valley Transit Chairperson and Saint Peter City Administrator are authorized to execute a renewal contract with Gustavus Adolphus College for provision of “Gus Bus” services during the period of September 4, 2026 through April 25, 2027. Adopted by the Board of the Minnesota River Valley Transit this 14 th , July 2026. _________________________________ ## Mark Huntington ## Chairperson ## ATTEST: _________________________________ ## Todd Prafke ## Saint Peter City Administrator 58 ## TO: MRVT Board Members DATE: 07/13/26 ## FROM: Todd Prafke ## Saint Peter City Administrator ## RE: 2027 Operating Budget and Grant Application ## ACTION/RECOMMENDATION Approve the 2027 budget and authorize submission of a transit operation grant to the Minnesota Department of Transportation (MnDOT), Office of Transit and Active Transportation. ## BACKGROUND The 2027 goal for Minnesota River Valley Transit (MRVT) is to continue growing the Le Sueur/Saint Peter services while improving the efficiency of our existing service in the Le Sueur and Saint Peter service areas. Funding from MnDOT in the amount of ninety percent (90%) of the total projected operating costs will allow us to continue to provide this valuable service to residents of our communities. The 2027 proposed budget for Minnesota River Valley Transit includes a 90/10 split meaning that the State Grants pay for ninety (90) percent of the budget and local share needs to be ten ( 10) percent. We expect his 10% will be covered by local fares. Additionally, capital grants for buses will be funded at a 90/10 split. Both grant percentages are important as neither Le Sueur nor Saint Peter have levied for transit in the last 30 plus years. Two resolutions are proposed for Board consideration. The first is adoption of the total budget in the amount of $1,212,00.00. The second is the grant application. Following adoption of the budget, it is recommended the Board act to formally approve submitting the grant application in the budgeted amount for calendar year 2027. There are also a couple of things of special note. • MRVT projects a 3% COLA increase in wages in 2027 along with a 10% increase in health insurance premiums. • Vehicle costs continue to rise. We are seeing increases in costs in both parts and labor, especially with higher mileage and older vehicles. With the addition of an additional full- time mechanic to the city, Minnesota River Valley Transit hopes to keep costs lower by 59 not having to outsource such a large percentage of the repairs, thus reducing our maintenance costs. Both mechanics will also now be able to perform yearly lift maintenance, alleviating the task of finding a driver and transporting a bus to Mound, MN, thus saving us a large amount of money. The new buses we received over the last 3 years continue to give us problems, we are continuing to maintain older buses to have fleet options. We are hopeful with the selection of a different manufacture for the 2 new buses ordered, we will be able to eliminate these problems and dispose of 2 older buses from our fleet. We continue to modify our maintenance plan and focus on performing PMI’s at lower mileage will hopefully create a more cost-efficient maintenance budget over the year. • Operational costs have remained relatively steady. Saint Peter will see an increase in cost due to the increase in their lease due to doubling of square footage of their garage/office space. Le Sueur’s lease is not likely to change in the future, the lease is comparable on a per square foot basis to that of the Saint Peter space. • We do not anticipate a large jump in the numbers for eligible riders, we continue to try to focus on marketing efforts that will increase ridership but not infringe on service hours or area. We are here to provide an essential service to the community and take great pride in the services we offer. • Lastly, we are not proposing any changes to fares for the 2027 year. ## FISCAL IMPACT: Should the budget and application for State grant funds not be approved for submission, we would face a substantial shortage of funds to operate at our current service level. Just a few other things that may be important for context: • Transit funding and the impact of the State/Local split and how that impacts the numbers. • Ongoing efforts to find efficiency in operation. We do not anticipate a need for changes for fares for the 2027 year, however, members should look towards 2028 in anticipation of at least a small increase. Our concern here is the cost of busses and fuel, generalized inflation and lack of surety on the level of State and Federal Grant funding. Again, prior to 2019ish the usual grant/local split was 80/20 for both operations and capital. Staff recommend the proposed budget be adopted and authorization be provided to submit the operating grant application. ## ALTERNATIVES/VARIATIONS: Do not Act: Staff will wait for your direction. Negative Vote: Staff will wait for your direction; and I am not exactly sure what the process would be should the board be unable to approve a budget or grant application. Without these two things, you would be in a substantial revenue shortfall and unable to continue to provide service for more than a few months. Modification of the Resolution: This is always an option of the Joint Powers Board. Please feel free to contact me should you have any questions or concerns about this agenda item. ## TP/ks 60 ## System ## SystemType ## Geographic Type ## 2027 Max. Allowable ## Amount Total Project Cost (Local + State + Fed) ## Brainerd and Crow Wing Public Transit 5311 - Rural Transit ## City System $1,601,600.00 ## Fosston Transit (City Bus) 5311 - Rural Transit ## City System $206,500.00 ## Minnesota River Valley Transit (MRVT) 5311 - Rural Transit ## City System $1,219,200.00 ## Morris Transit 5311 - Rural Transit ## City System $768,300.00 ## Winona Transit Service 5311 - Rural Transit ## City System $1,661,500.00 ## Becker County Transit (Lakes Transit) 5311 - Rural Transit ## Single County System $930,900.00 ## Brown County Heartland Express 5311 - Rural Transit ## Single County System $1,344,900.00 ## Hubbard County Heartland Express 5311 - Rural Transit ## Single County System $818,500.00 ## Kanabec County Timber Trails Public Transit 5311 - Rural Transit ## Single County System $889,300.00 ## Prairieland Transit (SMOC) 5311 - Rural Transit ## Single County System $748,600.00 ## Watonwan County Take Me There 5311 - Rural Transit ## Single County System $532,900.00 ## Central Community Transit (CCT) ## 5311 - Rural Transit Multi-County System $5,026,300.00 ## Otter Express ## 5311 - Rural Transit Multi-County System $2,575,000.00 ## Paul Bunyan Transit ## 5311 - Rural Transit Multi-County System $1,848,700.00 ## Prairie Lakes Transit ## 5311 - Rural Transit Multi-County System $1,704,900.00 ## SMART Transit (Cedar Valley Services) ## 5311 - Rural Transit Multi-County System $4,287,300.00 ## Three Rivers Hiawathaland Transit ## 5311 - Rural Transit Multi-County System $5,202,100.00 ## Trailblazer Transit ## 5311 - Rural Transit Multi-County System $7,537,300.00 ## TRUE Transit (VINE Faith in Action) ## 5311 - Rural Transit Multi-County System $961,800.00 ## Wadena County Friendly Rider ## 5311 - Rural Transit Multi-County System $1,099,800.00 ## Arrowhead Transit 5311 - Rural Transit ## Regional System $15,485,300.00 ## Community Transit of UCAP 5311 - Rural Transit ## Regional System $4,987,500.00 ## Prairie Five RIDES 5311 - Rural Transit ## Regional System $3,940,200.00 ## Rainbow Rider 5311 - Rural Transit ## Regional System $4,740,600.00 ## Rolling Hills Transit (Semcac Transportation) 5311 - Rural Transit ## Regional System $2,118,400.00 ## Tri-CAP Transit Connection 5311 - Rural Transit ## Regional System $4,545,000.00 ## Tri-Valley Heartland Express (T.H.E. Bus) 5311 - Rural Transit ## Regional System $4,391,900.00 61 ## UPIN ## Budget Line ## Item ## Budget Line Item LabelAmount 1010 ## Admin, Mgmt, & Supervisor ## Salaries $139,100.00 1020Operators' Wages$352,300.00 1030 ## VehicleMaintenanceand ## Repair Wages $0.00 1040 ## GeneralOfficeSupport ## Wages ## 1050Operations Support Wages$113,900.00 1060Fringe Benefits$219,000.00 $824,300.00 1110Management Fees$22,800.00 1120 ## Drug and Alcohol Testing & ## Administration Expenses $6,400.00 1130 ## Advertising,Marketing,& ## Promotional Charges $7,300.00 1140 ## Legal,Auditing&Other ## Professional Fees $11,400.00 ## 1150Staff Development Costs$10,600.00 1160Office Supplies$14,900.00 1170 Leases/Rentals(Admin. Facile.) (Specify in Request for Funds) $3,500.00 1180Utilities$14,000.00 1190 ## Other Direct Admin. Charges (SpecifyinRequestfor ## Funds) $32,200.00 $123,100.00 1210Fuel (Net)$100,400.00 145,000 miles estimated for 2027 with 6.5 miles per gallon is approximately 26,500 gallons of gasoline. Using Minnesota AAA 5/7/2025 pricing of $3.79 per gallon=$100,435.00 Le Sueur location: 601 S. 5th St., Le Sueur MN- Lessee shall use for office space, the use of parking spaces adjacent there to and the use of the restrooms in such building. The terms of the Lease shall commence on May 1, 2022, and terminate on December 31, 2026, or may be terminated by either party by provision of a 120-day written notice. The amount of the lease is $149.90 per month for 12 months. Saint Peter location: 1371 Civic Way (New Garage, more square footage), Saint Peter MN. Lessee shall use for office space, the use of parking spaces adjacent thereto and the use of the restrooms in such building. The terms of the Lease will be renewed in 2026 for both locations, Le Sueur expects not change. Saint Peter will see an increase due to the increase of square footage from the old location, there is no change in price per square feet just overall size. The amount of the lease is $94.43 per month for 12 months. Le Sueur 12 x $149.90=$1,799 and Saint Peter 12 x $137.70=$1,652 for both locations each month for 12 months =$3,451. 1st Net (AT&T) $375 x 12 months = $4,500 internet and tablet support for 9 tablets Metro Fibernet $115.00 x 12 months = $1,340.00 2 cell phone reimbursements for operation and compliance manager at $66.00 per month, per phone @$150 x 12months = $1,800 Medicom average $246 x 12 months = $2,952 (internet service for 2 offices, 9 tablets, Business Internet 60/5 Mbps, Static IP $7 per month). Phone usuage partnered with the City of Saint Peter through Loffler, bass rate of $250.00 a month for 12 months =$3,000.00 New Software yearly rate $27,000 (offers much more that RouteMatch every could), Pro Pay Fees (credit card fees through the city) averaging $135.00 x 12 months = $1,620.00 WEX Health fee $14.25 x 12 months = $171.00(Health reimbursement card for 5 full time employees), FMCSA dues $225.00 (one time a year), DOT physicals average $110 per employee (average 10 employees in need of renewal) $1,100. Transit Association Dues $815.00. LinguaOne translation services=$19 per transaction average of 14 transactions per yr.=$266. LinguaOne translate documents $135 per document, average 5 documents per yr.=$675. LinguaOne Dues 1 per yr. $250. Visa annual fee for 2 managers cards $20 x2=$40. Credit Card fees $6.75 per month x 12=81.00 ## Group Total 1200 Vehicle 1100 Administrative ## BCG0006195 Operating City shall provide all management needed for the operations and management of a public transit system within the service area established by MRVT. In providing for management, CITY shall provide accounting, accounts receivable, accounts payable, Black Cat Financial reporting, investing, invoicing of services, appropriate financial controls, and auditing all accounts related to MRVT accounts in accordance with GASB standards budgeting support and budget, rate analysis, and conformance and compliance with grant requirements, human resources, payroll, act as Board Staff and provide overall direction to the MRVT Operation and Compliance Managers or equivalents for which, the CITY will bill MRVT the monthly amount of: Proposed increase from $1,600.00 to $1,900.00 per month. New expense contract will be executed at the end of 2026. New contract will be downloaded in BlackCat when received. Calculating average of 4 pre-employment tests (if needed) @ $155.00 each = $620.00. 10 random employee drug test average cost @ $155 per test =$1,550. 2 random alcohol test @ $205 each = $410. Each of these tests will on average cost $274.00 for an onsite visit, 10 visits for the random test and 4 visits for the pre- employment test 14 x 274.00=$3,836. Printing of educational brochures and inserts in English, Spanish, and Somali-roughly 3000 pieces @ $.76 each = $2,280.00. Placing informational prin t for summer fares on the windows of 5 buses for approximately 3 months @ $130.00 per bus = $650.00. Placement of 2 employment print ads @ $570.00 each in local papers to recruit future drivers and dispatchers = $1,140.00. Printed out informational instructions for new rider friendly APP with to hand out on transit buses: 600 pieces @ $.84 each = $504.00 Place color coded decals on preschool bus for identification purposes @175.00 per bus x 4 buses=$700, ad for Community Center Gym $450 per year, Senior Expo informational ad $125 x1 a year=125, advertisement for new rider APP through community outlets, newspapers, informaitonal events, print materials $1500.00 budget to get the word to the community AUDIT COSTS -past cost of $7,750 for 2025, since we do not have the cost of the 2026 Audit at the time of budget we will figure in a 5% cost increase from 2025. $7,750*5%= $8,138.00 use of city lawyer for misc. purposes (contracts, incident's, etc.) @ $250.00 per hr. for 13hrs=$3,250 Compliance Manager and Operations Manager (will be the backup) will need additional training in taking over as Designated Employee Representative. Compliance Manager attending FTA Drug and Alcohol Program National Conference or Substance Abuse Classes (Later date to be announced) expenses at $4,514.00 Course cost and registration $500 x2, air fare estimated $1,100.00 x2, hotel at $160.00 per day ($130 x 3 days=$480 x2), and meals allowed $59.00 per day ($59 x 3 days=$177 x2). The workshop will take place over a 3 day period. (was unable to attend in 2022/2023/2024/2025/2026 due to medical reasons). Both Compliance and Operations Managers will attend the Spring Workshop at $976.00 (Hotel $160.00 x 2 nights x 2 manangers = $640, 2 managers $59.00 per day meal expense per manager x 2 days = $236.00, and roughly $100.00 for fuel for trip). Operations Manager and Compliance Manager to attend MPTA Fall Conference at $1,414.00 (Hotel $160.00 x 3 nights x 2 managers = $960.00, 2 managers $59.00 per day meal expense per manager x 3 days = $354.00, and roughly $100.00 for fuel for trip. Average $55 x10 online random training for new drivers/manager or employee class=$550-This line item has not chnaged a great deal from the 2026 budget, both Compliance and Operations mananger intendon fullfilling their obligations to attend these trainings. The purchase on3new uniform shirts and 1 jacket for 23 employees. Each shirt will be $15.50 ($15.50 x 69 shirts (3 per employee)=$1,070) and 23 jackets at $90=$2,070. This would include the following items: Postage-$145, Pens-$10.00, , Pencils-$5.00, Kleenex for offices & buses-$600.00, post it notes-$40.00, tape (all kinds)- $100.00, Stapler/staples-$25.00, legal pads-$15.00, keyboards $250.00 mouse-$95.00,white board supplies-$30.00, printer paper-$450.00, garbage bags (buses & offices)-$125.00, small replacement garbage cans-$40.00, ink toner for printers (x6 @ 525.00 per bundle)$3,150.00, laminating supplies $50, batteries $125. Saint Peter Office is due to receive an updated laptop, $3,500. With new software we will be upgrading our tablets to Apple products for the buses, 11 tablets at $500, $300 x 11= $5,500. Accessories-charging cords, plug in adapters $250. Bathroom cleaner for new garage bathroom $150.00, supplies for employeebreak area in new garage $200.00 ## BCG0006195 Operating Compliance Manager -2080 hrs. for 2027 @ $33.10 an hour = $68,848 Operations Manager-2080 hrs. for 2027 @ $33.78 an hours= $70,262 2 full time employees average of 4,160 hrs. @ $23.25 per hr. = $96,720. 3 preschool drivers average 1485 hrs. over academic year @ $38.83 per hr.=$57,663. 5 Gus bus drivers average 560 hours over academic year @ $27.19 per hr.=$15,226 and 11 part time drivers average 7780 hrs. @$23.21 per hr. =$180,574. Each driver that works is paid 2.5 hours per week for pre-trip, post trip, or both. This is included in the average hours. Training new bus drivers average of 90 hrs. @ 23.21 per hr. =$2,089. 1 full time dispatcher at 2080 hrs. per year @ $26.70 = $55,536. 1 part-time dispatcher at 1040 hrs. per year @ $23.21 = $24,138 and 3 part time dispatchers averaging 520 hrs. per year x 2 = 1040 hrs. per year @ $23.21 = $24,138, Gus bus dispatch at average of 250 hrs. per academic year @ $27.19 per hr.=$6,798, training new part time dispatcher average of 140 hrs. per year @ $23.21 per hr.=$3,249. FICA- 2 Managers average of $8,668 ($4,334 per employee), 3 full-time employees at an average of $3,146 per employee = $9,438 per year. 20 part-time employees at an average of $746 per employe=$14,915 per year. Medicare- 2 Managers average of $1,014 per employee = $2,028 per year, 3 full-time employees at an average of $735 per employee = $2,207 per year. 20 part- time employees at an average of $174 per employee=$3,480 per year. Medical insurance for 2 Managers average of $28,605 per employee = $57,210 per year, 3 full-time employees at an average of $13,873 per employee = $41,619 per year. Dental insurance for 2 Managers average of $1,110 per employee = $2,220 per year, 3 full-time employees at an average of $740 per employee = $2,220 per year. Life insurance for 2 Managers average of $35 per employee = $70 per year, 3 full-time employees at an average of $35 per employee = $105 per year. Workers Comp 2 Managers average of $269 per employee = $538 per year, 3 full-time employees at an average of $3,805 per employee = $7,545 per year. 20 part-time employees at an average of $564 per employee=$11,280 per year. PERA for 2 Managers average of $5,243 per employee = $10,486 per year, 3 full-time employees at an average of $3,805 per employee = $11,415 per year. 20 part-time employees at an average of $948 per employee=$18,960 per year. PFML Employer for 2 Managers average of $276 per employee = $552 per year, 3 full-time employees at an average of $200 per employee = $600 per year. 20 part-time employees at an average of $48 per employee=$576 per year. VEBA\HSA =1 employee at $4,200, 3 employees at $2,400=$7,200, 1 employee at $1,200, 2.5% of IT Manager and Tech, accts. payable =$221 ## Group Total ## Project Budget Line Item Comment Export ## Minnesota River Valley Transit - 2026 ## Project DescriptionComments 1000 Personnel 62 ## 1220Vehicle Maintenance Costs$57,000.00 1230 ## CorrectiveMaintenance ## Costs 1240Tires$20,800.00 1250 ## Other Vehicle Costs (Specify in Request for Funds) $13,900.00 $192,100.00 1310Purchase of Service$0.00 1330 ## Mileage Reimbursement for ## Pass. Service $0.00 1340 Repair and Maintenance of ## Other Property 1350 Leases/Rental(Garages,Veh. ,etc..)(Specify in Request for ## Funds) $48,100.00 1360 ## Other Operations Charges (SpecifyinRequestfor ## Funds) $0.00 1370 ## Private Capital Depreciation & Amortization (for ICB only) $0.00 1380 ## Private Capital Interest (for ICB only) $0.00 1390 ## EligibleIn-KindMatch (Capital Cost of Contracting) (for ICB only) $0.00 $48,100.00 1410 PublicLiability&Prop. Damage on Veh. $32,900.00 1420 PublicLiability&Prop. ## Damage - Other $0.00 $32,900.00 1510 ## VehicleRegistration& ## Permit Fees $100.00 1520 ## Federal Fuel & Lubricant ## Taxes $0.00 1540 ## Other Taxes & Fees (Specify in Request for Funds) $0.00 $100.00 ## 1594Fuel Tax Refunds($8,600.00) 1596Insurance Reimbursement$0.00 1598Other$0.00 ($8,600.00) 2010Farebox Revenues$184,000.00 2020System Revenues$49,500.00 2030 ## Othe rDirectlyGenerated ## Funds $0.00 $233,500.00 $1,220,600.00 $233,500.00 ## Less Refund Amount($8,600.00) $1,212,000.00 Printed: 8/14/2023 09:43 AM ## Data Source: BlackCat Transit Data Management System ## Total Expenses ## Total Revenues ## Deficit ## 2000 Operating Revenue ## BCG0006195 Operating Projected 43,000 rides at $3.00 per ride=$129,000 27,500 student rides at $2.00 per ride=$55,000. Total=$142,000. Bus Advertising on 5 buses $12,000 and Gus Bus (Gustavus Adolphus College) Service projected at 520 bus hours at $53.00 per hour and 260 dispatch hours at $38.20 per hour=$37,492. No price increase on these revenue contracts for 2027 ## Group Total 1590 Refunds ## BCG0006195 Operating 26,500 gallons of gasoline with a State of MN fuel tax refund of $0.326 per gallon =$8,639.00. ## Group Total 1500 Taxes and Fees ## BCG0006195 Operating Purchase of new license plates to replace damaged plates $29.00 x 4 plates=$116.00 ## Group Total ## BCG0006195 Operating MRVT has 9 buses on fleet that are insurance covered, 1 Dodge charger used for business transportation. A total of 10 vehicles on League of Minnesota Cities Insurance plan. $30,699 insurance cost for buses in 2026 adding on 7% increase for 2027=$32,848. ($1,000.00 deductible insurance on the buses.) Coverage is from January 1, current year to January 1, of the next year. ## Group Total ## Group Total 1400 Insurance 1300 Operations ## BCG0006195 Operating Le Sueur location: 601 S. 5th St., Le Sueur MN. Lessee shall use the Leased Premises for the parking of Lessee's transit buses and use of a portion of the garage area (3 oversized stalls) of such Joint Services Building for parking, repair and maintenance and providing security for its vehicles and for no other purposes unless mutually agreed upon between the parties hereto. The terms of the Lease will be revised at the end of 2026 to draft a new contract. The amoun if the lease will stay the same for the location in Le Sueur. The amount of the lease is $1,735 per month for 12 months=$20,820. Saint Peter location: 1371 Civic Way (New Garage), Saint Peter MN. Lessee shall use the Leased Premises for the parking of Lessee's transit buses and use of a portion of the garage area (3 oversized stalls) of such City Hall for parking, repair and maintenance and providing security for its vehicles and for no other purposes unless mutually agreed upon between the parties hereto. The terms of the lease have been revised and is waiting for board approval. MRVT took possesion of the new location on June 24th, 2026. The approved lease will be uploaded to BlackCat one received. . The amount of the lease is $27,283.98 for a year, $2,273.67 per month. The price per square foot remains unchanged, the increase in price comes from the increase in square footage. ## BCG0006195 Operating Mechanic's wages by agreement projected increase by 4% =$93.60 per hour ($93.60 x 180 average hours per year based on past years maintenance records=$16,848), contract expires at the end of 2026 and will be entered into BlackCat when received. The aging fleet presents issues associated with age, as the newer buses come with their own set of problems.As the years go by we increase ridership, resulting in increased mileage. We have great drivers though that are extremely efficient in what they do. City mechanic now has another fulltime mechanic to assist with the work load thus finding us not having to outsource to Ford Dealership (Wolf Motors charge per hour is $155.00 per hour, based on previous year average of approximately 32 hrs. = $4,960) for bigger jobs not able to be done in cities garage, parts included but not limited to (priced as each): blower fan $61 ($61 x 3 fans$183), refrigerant $10 ($10 x 20 units=$200), Ignition Coil $160 ($160 x 2=$320), brake pads $100 ($100 x 25=$2,500), brake rotors $275 ($275 x 6=$1,650), misc. brake parts $30 ($30 x 10=$300), Various seals $38 ($38 x 6=$228), Brake assembly $750 ($700 x 2=$1,500), Vacuum Reservoir $80 ($80 x 4=$320), Brake Caliper $85 ($85 x 6 =$510), Belts $93 ($93 x 3=$279), oil qt.$5.50 ($5.50 x 105qts=$577.50), oil filter $6 ($6 x 20=$120), air filter $16 ($16 x 10=$160), MOA Kit $27 ($27 x 10=$270), spark plugs $9 ($9 x 30=$270), alternator $249 ($249 x 4=$996), Headlight\LED light $22 ($22 x 8=$176), exhaust parts $7 ($7 x 8=$56), gaskets $11 ($11 x 5=$55), U joints $40($40 x 5=$200), battery $354 ($354 x 3 =$1,071), starter $135 ($135 x 4 = $540), Serpentine Belt $93 ($93 x 2 = $186), Rear Heater Fan $267 ($267 x 2 = $534), bearings $14($1 4 x 4=$56), Misc lift parts average cost $72 ($72 x 10 = $720), AC Compressor $304 ($304 x 3= $912), fuel pump $298($298 x 3=$894), signal switch $305($305 x2=$610), pulley $13 ($13 x3=$39), gas spring $66 ($66 x 3=$198), air sensor $158 ($158 x 2=$316). Once per year 9 buses receive DOT's (3hr per DOT @ $93.60 x 9 buses = $2,430.00), In the summer the mechanics can now do lift inspections\repair at an cost of $93.60 per hour @ average of 1 hour per lifts (saving us money) ($93.60 x 9 lifts=$842.40.) Possible replacement on 1 transmissions on older buses $15,000.00. Some of the items I did not change the cost too,a newer mechanic means looking at more than one source for parts. Mechanic's wages by agreement projected increase by 4% =$93.60 per hour, contract expires at the end of 2026 and will be entered into BlackCat when received. @ 56hrs to place tires = $5,242.00 estimated and increased mileage in buses. Average cost per tire over last year is $254 with an estimate of at least placing 58 tires on 9 buses =$14,732.00 estimate 8 tire repairs and patches @ $50 = $400, disposal @ $7.50 for each tire at 48 tires =$360, valve stem 5 @ $10 each = $50 Fire extinguisher inspection and maintenance $85.00, disinfecting wipes for buses-$550.00, paper towels-$425.00, Muli surface cleaner-$120.00, bus floor cleaner - $150.00, mop heads-$120, window cleaner-$85, brooms/dust pans-$90.00, outer bus wash-$120, latex gloves-$375.00. Repair and maintenance of radio repeater, antenna and coaxial cable $1,250 yearly ($65.00 per hour for labor at roughly hours of 15 labor over the year =$975.00, random parts as in cables, antenna’s, connectors, mics =$500), Ram Mounts parts on average $45 per piece ($45 x 6 pieces=$270), windshield replacement $500 per time x2=$1,000, vehicle tow $450 per tow average of 6 towing a year=$1,620. New Seon Cameras in one bus, this is the only bus in fleet that has REI-REI is difficult to retrieve footage due to the age of the system. Camera replacement $6,054. Washer fluid for windows 32 gallons a year at $4.29 a gallon=$137 ## Group Total 63 ## MINNESOTA RIVER VALLEY TRANSIT ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION ADOPTING 2027 OPERATING BUDGET FOR ## MINNESOTA RIVER VALLEY TRANSIT WHEREAS, Minnesota River Valley Transit (MRVT) operates a transit system that is funded by a combination of passenger fares and State Department of Transportation funds; and WHEREAS, adoption of an operating budget is important prior to submission of an operating grant application to the Minnesota Department of Transportation; and WHEREAS, adoption of a budget provides a framework for staff. ## NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE MINNESOTA RIVER VALLEY TRANSIT, THAT: the following budget amount is hereby adopted for operation of the Minnesota River Valley Transit during calendar year 2027: $1,212,000.00 Adopted by the Board of the Minnesota River Valley Transit this 14 h day of July, 2026. ___________________________________ ## Mark Huntington ## Chairperson ## ATTEST: ________________________________ ## Todd Prafke ## Saint Peter City Administrator 64 ## MINNESOTA RIVER VALLEY TRANSIT ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION AUTHORIZING SUBMISSION OF MINNESOTA RIVER VALLEY TRANSIT ## OPERATING GRANT APPLICATION FOR 2027 WHEREAS, Minnesota River Valley Transit (MRVT) operates a transit system that is funded by a combination of passenger fares and State Department of Transportation funds; and WHEREAS, in order to continue operation of the transit system, it is necessary to secure additional funding through the State of Minnesota; and WHEREAS, an operating grant application for the year 2027 has been developed which outlines the transit system operational plan; and WHEREAS, a State operational grant requires a resolution approving submission of an application; and WHEREAS, Minnesota River Valley Transit finds the transit system to be a valuable benefit to the residents of the communities served. ## NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE MINNESOTA RIVER VALLEY ## TRANSIT, THAT, Minnesota River Valley Transit: 1. Approves entering into an Agreement with the State of Minnesota to provide public transit service. 2. Agrees to provide a local share of up to ten percent (10%) of the total operating cost and up to ten percent (10%) of the total capital costs for a total grant amount of $1,212,000.00. 3. Agrees to provide one hundred percent (100%) of the local share necessary for expenses that exceed funds available from the State. 4. The Saint Peter City Administrator or Finance Director and Transit Compliance Manager are authorized to execute the Agreement and any amendments. Adopted by the Board of the Minnesota River Valley Transit on this 14th th day of July, 2026. ___________________________________ ## Mark Huntington ## Chairperson ## ATTEST: ________________________________ ## Todd Prafke ## Saint Peter City Administrator 65