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Brainerd transit contractor fined for nonperformance as state consultant weighs options
Summary
City staff reported frequent contractor nonperformance and monthly deductions averaging about $8,000; a state-hired consultant will recommend whether to continue with a contractor, bring transit in-house, shift operations to Crow Wing County or adopt a hybrid model.
City transit staff told the Brainerd Transit Advisory Committee that their contracted operator has been repeatedly flagged for service and maintenance shortfalls and that the city has been deducting nonperformance penalties from the contractor's invoices.
In a staff presentation, Mike (staff) said the city has levied deductions ‘‘ranging from probably, you know, 0 all the way up to 13’’ thousand dollars and that the average recent deduction has been about $8,000 per month against a normal contractor invoice of roughly $80,000–$100,000. He explained the city applies nonperformance amounts by subtracting them from the contractor’s monthly invoice rather than collecting separate payments.
The committee’s discussion focused on…
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