Report to Mayor and City Council
Tuesday, October 01, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF LETTER AGREEMENT BETWEEN THE CITY OF CARSON AND MV TRANSPORTATION, INC., REGARDING THE REFUND OF UNAUTHORIZED PAYMENTS UNDER FIXED ROUTE TRANSPORTATION CONTRACT SERVICES AGREEMENT (CITY COUNCIL)
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I. SUMMARY
If the City Council approves the attached proposed Letter Agreement, the City will receive $95,036.32 from consultant MV Transportation, Inc. ("MV"), as a refund of unauthorized contract payments that were made based on overbilling by MV for the calendar year 2018 pursuant to the Fixed Route Transportation Contract Services Agreement ("FRTCSA") existing between the parties.
The City's Transportation Services staff identified the discrepancy in the billing earlier this year and worked with the City Attorney's office to demand that MV refund the unauthorized payments to the City. MV has acquiesced to the City's demands and agreed to provide a full refund to the City in accordance with the attached proposed Letter Agreement, which provides for the refunds to be made in four equal monthly installments of $23,759.08 each.
The proposed Letter Agreement has already been executed by MV, and would go into effect immediately upon approval and execution by the City, providing for the refund to be made in full by conclusion of the September, 2019 billing cycle.
II. RECOMMENDATION
Recommendation
1. APPROVE the attached proposed Letter Agreement between the City and MV Transportation, Inc. Re: Request for Refund of Unauthorized Payments Regarding that Certain Fixed Route Transportation Contract Services Agreement dated January 1, 2016, by and between the City of Carson and MV Transportation, Inc. (the "Letter Agreement").
2. AUTHORIZE the City Manager to execute the Letter Agreement.
1.
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III. ALTERNATIVES
1. DO NOT APPROVE the Letter Agreement.
2. TAKE any other action the City Council deems appropriate that is consistent with the requiremen...
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