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Council approves Kirk Tran service contract and three‑year fuel contract; staff flags transit reserve use
Summary
The council authorized a one‑year services agreement with OATS Inc. for Kirk Tran and approved a three‑year fuel contract with MFA Oil Company. Staff said the OATS rate increase could draw down about $3,700 from transit reserves and that Kirk Tran is operating at a structural deficit.
The Kirksville City Council approved two contracts affecting city operations: a one‑year agreement with OATS Inc. to provide Kirk Tran transit services for July 1, 2025 through June 30, 2026, and a three‑year fuel contract with MFA Oil Company for diesel, unleaded and E85 fuel and associated services from July 1, 2025 through June 30, 2028.
Ashley Young, community and economic development director, told the council the proposed OATS agreement follows a simplified compensation model used in the current year and would raise the hourly rate from $20 to $21 per hour. Young said that the 2025 budget had been drafted at $20 per hour and that continuing at $21 could require as much as roughly $3,700 of the reserve built up for Kirk Tran to cover the remainder of the fiscal year. Young noted that Kirk Tran has been operating at a deficit and that staff intends to bring a package of changes for council consideration during a September planning meeting to address long‑term sustainability.
Young also described actions to increase advertising revenue on buses (including raising longstanding ad rates) and plans to more actively market bus advertising as additional revenue sources once two newly branded buses are in service.
Public Works Director Adam Dorril presented the fuel bid: MFA Oil was the lone bidder and the city budgeted for approximately 86,000 gallons of fuel this year. The contract includes card‑swipe fueling at department facilities and two MFA stations and provides transaction data used for departmental billing. The council approved the fuel contract on first and second readings.
Councilors asked questions about reserves and long‑term transit planning; staff said they will include proposed changes and financial options in the fall planning cycle. The council approved both the OATS service agreement and the MFA fuel contract by voice votes during the meeting.
