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Transit system contract could be finalized next week

By Kelly Terpstra, kterpstra@charlescitypress.com

A contract is near — or at least it appears to be.

Charles City’s transit system may have a new provider soon, according to information discussed at the City Council planning session Monday evening.

Circle K Communications Inc., owned by Tammy and Dan Elthon, is interested in becoming the new provider in a possible public/private partnership with the city. That new contract could come as early as this coming Monday, according to City Administrator Steve Diers.

The current provider, which is retiring at the end of this month, saw its contract run out on June 30. A month-long extension with that current provider was agreed upon until July 31 to continue service in the interim.

Diers said around that same time the extension was made, Circle K arose as a potential bidder to possibly provide an 11-month contract of the transit service that would run from August 1, 2018, to June 30, 2019.

The new arrangement calls for the city being much more involved in the service. The city would hire drivers and lease, fuel, insure and provide maintenance on the buses.

Diers said he is looking to hire drivers on a part-time basis and also said there would be three new buses once the new contract is signed.

Circle K would act as an independent contractor, overseeing the drivers and resuming day–to–day oversight with such things as dispatching rides, selling tickets and handling all reporting to the North Iowa Area Council of Governments (NIACOG).

The previous arrangement called for the city sharing in the shortfall of the operation with a third party. NIACOG would still operate in a similar fashion under this proposed agreement. It would handle ride reporting requirements to the DOT, provide buses and share half of the operating deficit. Diers stated the biggest change would be that NIACOG would reimburse the city for monthly expenses, rather than the other way around.

Another big change is the hours of operation for the service. The current hours for pickups are 8 a.m. to 5 p.m. Under this proposed plan, the hours would change to 7 a.m. to 4 p.m.

The new contract, if signed, would give the city much more control and a more clear picture of how the operation works, Diers said.

“This can allow us to get a better financial grip of it,” said council member Jerry Joerger.

Diers said ridership has upticked by about 5,000 riders, the majority of that coming from the addition of the Foster Grandparents, who can also utilize the service. The city’s payment to Circle K would be a flat fee and not based on ridership numbers.

Council member DeLaine Freeseman said he was happy to see that a new contract is eminent and the transit system is more than likely going to remain in business — helping riders get to their destinations on time and in a safe manner.  

“I don’t think anybody wants to see it go away,” said Freeseman.

Realtor Connie Parson and Tim Fox, executive director of the Charles City Area Development Corp., were on hand to discuss the purchase of land for a state-certified development site.

The proposed site is about 76 acres for approximately $28,750 an acre. That comes to a total price of $2.1 million. The area is at the intersection of South Grand Avenue and the Avenue of the Saints and already has infrastructure on site. Along with the infrastructure, the visibility and accessibility are also positives that are associated with the layout of the ground, according to Parson.   

“It’s a bread and butter property for the ADC,” said council member Michael Hammond.

Here are the other items that were discussed at the planning session:  

• Charles City Fire Chief Eric Whipple, along with Charles City Police Chief Hugh Anderson, talked about an agreement that could be reached with the city and the Floyd Community Volunteer Fire Department to help with mutual aid on fires and emergency calls. The Fire Department and city agreed that it would be to those agencies’ mutual advantage and benefit to move forward with such an agreement.

• The Parks and Recreation Department is planning on replacing a fairway mower. The current one has more than 13,000 hours on it and the department is in need of a new one. Parks and Recreation Director Steve Lindaman said he is looking at a John Deere 7700 Diesel with only 900 hours of ride time. The mower comes at a cost of $24,000 from Precision Turf Products.

• Lindaman also plans on replacing the playground surface at the Lions Field Pool. There is $15,000 in funds allocated for the project. Lindaman said a bid of $13,718 by All Inclusive Recreation out of Farmington, Missouri, to replace the surface seems to be where his department is leaning.

• Anderson also discussed the purchase of a dog for a K-9 unit, as previous K-9 Midnight has retired. The new dog’s name is Jordy and it is a Dutch shepherd. Anderson said the Charles City Police Department is working on a fundraiser to be able to cover some of the cost for the dog.

• Diers said that the Hildreth Street Project, which involves the complete reconstruction of the street from Ninth Street to Gilbert Street, has encountered more costs. Diers said there is an additional expense of boring under Gilbert Street and changing the thickness of the PVC piping between water and sewer. That additional costs amounts to around $70,000. The project also includes the paving of an alley and sidewalk.

 

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