Council approves People Mover payment-term amendment; DDOT director says study is under way

Detroit City Council approved an amendment Feb. 10 to change payment terms for the Detroit Transportation Company's contract (an operating subsidy arrangement and related funds) and approved a separate resolution authorizing emergency standby shelter beds.

Robert Kramer, director of the Detroit Department of Transportation and chair of the Detroit Transportation Corporation board, told council the contract amendment adjusts payment terms and includes previously approved one-time funds used to harvest parts and extend the operating life of the People Mover fleet. "The item we have before you ... is only amending to change the payment terms," Kramer said, noting the amendment covers operating subsidy arrangements and the one-time $6 million that helped acquire used cars from Toronto.

Kramer said the amendment does not alter any expansion plans. He said People Mover is in the middle of a system study to investigate potential improvements and possible expansions and that the agency welcomes public input. Councilmember Pro Tem Coleman A. Young II asked whether the operating subsidy would cover parts and refurbishment; Kramer said the subsidy can be used for operating expenses, including parts and refurbishing specialized components.

Council members approved the payment-term amendment and requested continued oversight of the People Mover’s budget and the results of the system study during the upcoming budget process.

Next steps: DDOT/DTC expects to present study findings and budget requests through the budget process; council signaled interest in a follow-up on audit findings and subsidy sufficiency.