Title
Authorize the City Manager to finalize and execute Supplemental Agreement No. 7 to the Interlocal Agreement with STAR Transit to provide public transportation services in the estimated amount of $553,849.00 for Fiscal Year 2026.
Body
This STAR Transit Supplemental Agreement No. 7 is necessary to continue STAR Transit services for FY 2026. This is the seventh supplement to the original Interlocal Agreement that was executed on September 19, 2016. The per hour charge for STAR Transit services has increased from FY 2025 by $1.75 per hour due to cost-of-service inflationary pressures.
The monthly cost to the City from October 2025, through September 2026, will be $46,154.00 (a decrease of $1,581.00 from previous year due to additional subsidies STAR Transit was able to secure). STAR Transit is using a combination of federal grant funding on behalf of the City of Mesquite to reduce the total cost of service from $1,769,122.00 to $553,849.00 per year.
Financial Implications
A combination of City of Mesquite direct Texas Department of Transportation (TxDOT) and federal grant funding will be used to reimburse the City approximately $225,000.00, leaving a net annual cost of approximately $328,849.00 for FY 2026.
Recommended/Desired Action
Staff recommends authorizing the City Manager to finalize and execute Supplemental Agreement No. 7 to the Interlocal Agreement with STAR Transit.
Attachment(s)
Supplemental Agreement No. 7
Drafter
Anthony V. Cao
Head of Department
Anthony V. Cao