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HomeMy WebLinkAboutAgenda Statement 1984/04/03 Item 10 COUNCIL AGENDA STATEMENT Item 10 Meeting Date 4/3/84 ITEM TITLE: Resolution /4'3-7-5- Approving FY 1984-85 Transportation Development Act (IDA) Article 4.5 Claim submission for HandYtrans operation and fare increase for FY 1984-85 SUBMITTED BY: City Engineer (7 ,'At (4/5ths Vote: Yes No X ) REVIEWED BY: City Manager The City of Chula Vista' s FY 1984-85 Article 4.5 claim to support HandYtrans operations in the amount of $197,270, was submitted to SANDAG and MTDB on March 30, 1984. State law requires that this claim be submitted to MTDB and SANDAG by April 1 , 1984. This claim includes the following changes for FY 1984-85 relative to the current fiscal year: an additional 2 vehicle service hours per weekday, or 520 additional hours annually; and a fare of $1 .00, an increase of $0.15 over the current $0.85 fare. SANDAG has informed all Article 4.5 claimants that there may be insufficient Article 4.5 funds to fund all elderly and handicapped systems in the County at the level programmed in the FY 1984-85 Transportation Improvement Program (TIP), which was submitted to SANDAG in January 1984. A discussion of options to reduce HandYtrans Article 4.5 requirements, if necessary, will be presented in this agenda statement. RECOMMENDATION: That Council approve: 1. submission of the FY 1984-85 Article 4.5 claim; and 2. a fare of $1 .00 for FY 1984-85. BOARDS/COMMISSIONS RECOMMENDATION: On March 14, 1984, the Transit Coordinator presented the following proposals to the Elderly and Handicapped Transportation Committee: the FY 1984-85 proposed HandYtrans service level ; the fare increase to $1 .00; and two options to reduce HandYtrans' FY 1984-85 claim if necessary. The Committee concurred with all these proposals. DISCUSSION: The FY 1984-85 Article 4.5 claim is in the amount of $197,270, a 6.3% increase over the FY 1984-85 approved claim of $185,648. The FY 1984-85 claim includes the proposed addition of 520 annual vehicle hours, estimated at a net TDA cost of $13,500 (gross contract cost minus fare revenue). The claim amount is approximately 72% of the proposed FY 1984-85 HandYtrans operating budget of $275,270. The remaining $78,000 will be financed by the following estimated revenue sources: $24,900 Farebox revenue 48,100 Reimbursement from Regional Center 5,000 Investment earnings $78,000 TOTAL Page 2, Item 10 Meeting Date 4/3/84 The estimated operating cost of $275,270 consists of the following: $211 ,520 Contract cost with CommunityTransit Services, Inc. at $29.243 per hour 48,100 Coordination project cost at $1 .30 per mile 15,650 Other supplies and services $275,270 The contract cost of $211 ,520 includes 520 additional vehicle service hours over this year's service level , at a gross contract cost of $15,000. The increase of 2 service hours per weekday is proposed to provide the contract operator flexibility to dispatch the spare HandYtrans vehicle when needed to help alleviate over capacity problems during morning and afternoon peak periods. During this year, HandYtrans often has been booked up to three days in advance for medical trips, particularly between 9 a.m. to 10 a.m. and in the early afternoon. In addition, often up to ten clients have been turned down for service on a particular day during these time periods. These additional hours would help reduce the number of clients rejected during these peak periods. The fare increase from $0.85 to $1 .00 is proposed to insure achieving the State-mandated recovery ratio of 10%, not including the Coordination Project statistics. It should also be noted that the $0.85 HandYtrans fare has been in effect for two years, and it is the lowest fare of the elderly and handicapped systems in the County. Current fares on the other systems range from $1.00 to $2.25. Increasing the fare to $1.00 will generate an estimated $3,600 in additional farebox revenue. It is estimated that HandYtrans will recover 26% of FY 1984-85 operating costs through total farebox revenue sources, including reimbursement of $48,100 from Regional Center for the Coordination Project. Excluding the Coordination Project, the recovery ratio will be an estimated 10.9%, based upon a $1.00 fare. SANDAG has informed all Article 4.5 claimants that there could be a potential funding shortfall of $509,000 in FY 1984-85. This shortfall is based upon operator costs reflected in the FY 1984-85 TIP $(1 ,975,000) compared with the anticipated Article 4.5 apportionment for FY 1984-85 ($1 ,466,000). At this time, SANDAG estimates that the total Article 4.5 claims may need to be reduced up to 25% from the amounts reflected in the TIP in order to meet the estimated FY 1984-85 apportionment. Since Article 4.5 funds are granted to claimants on a discretionary basis, SANDAG will approve claims based on the following main considerations: fund availability; and each claimant's fulfillment of certain performance and evaluation criteria. In the event that sufficient Article 4.5 funds are not available for SANDAG to approve the proposed HandYtrans claim as submitted, the Transit Coordinator has developed the following options for reducing the FY 1984-85 claim, in order of priority: • Page 3, Item 10 Meeting Date 4/3/84 OPTION 1 Eliminate the proposed 520 additional vehicle service hours, thereby maintaining the present service level. The result would be reduction in the HandYtrans claim of about $13,500, from $197,270 to $183,770, or 7.3%. OPTION 2 Eliminate the 520 hours, plus Sunday service. Elimination of Sunday service would result in a TDA reduction of about $14,000, for a total TDA reduction of $27,500, reducing the claim from $197,270 to $169,770, or 16%. Eliminating Sunday service, although currently productive, would not impact weekday service for essential medical and shopping trips. In addition, should this option become necessary to consider, HandYtrans could possibly provide service on Sunday on a 100% cost recoverable subscription basis to clients. In summary, it is recommended that the proposed claim be submitted to SANDAG. SANDAG staff will advise claimants in April or May of the funding situation, and will discuss any necessary claim adjustments with claimants on an individual basis. FISCAL IMPACT: The FY 1984-85 claim for HandYtrans operation is funded by TDA Article 4.5 funds, Regional Center funds, and farebox revenue. The claim does indicate a local match in the amount of $41 ,774 for five 16(b) (2) vehicles which was approved by Council on November 15, 1983. The source of these funds is City Transit Fund 235. WMG:nr/DT-005 WPC 0382T //� 7