Loading...
HomeMy WebLinkAboutAgenda Statement 1984/06/19 Item 14 COUNCIL AGENDA STATEMENT Item 14 Meeting Date 6/19/84 ITEM TITLE: Resolution //47 Approving first amendment to agreement between the Ci y of Chula Vista and Community Transit Services, Inc. for HandYtrans operations FY 1983-85, and amending proposed FY 1984-85 Elderly and Handicapped Transit budget SUBMITTED BY: City Engineer 9,41. (4/5ths Vote: Yes No x ) REVIEWED BY: City Manager On May 24, 1983, Council approved a two-year agreement with Community Transit Services, Inc. (CTS), for HandYtrans operation. The contract cost for the second year of that agreement, FY 1984-85, is $196,518, an increase of 5.3% over the FY 1983-84 contract cost of $186,600. On March 30, 1984, Transit staff submitted an Article 4.5 Transportation Development Act (TDA) claim to SANDAG in the amount of $197,270 for funding support for HandYtrans operations in FY 1984-85. This Article 4.5 claim included funding to support the FY 1984-85 CTS contract amount of $196,518, in addition to approximately $13,000 in TDA funds to increase HandYtrans service level an average of 2 hours per day next fiscal year. Due to a shortfall in Article 4.5 funds for next fiscal year, SANDAG has approved an Article 4.5 claim for Chula Vista in the amount of $176,756. Based on this TDA amount, sufficient funds will be available to finance a CTS contract for FY 1984-85 in the amount of $189,816. This contract amount results in deletion of the proposed expanded service for next year, and a reduction of $6,702 from the approved contract amount of $196,518. RECOMMENDATION: That Council : 1 . Approve the first amendment to agreement between the City of Chula Vista and Community Transit Services, Inc. for the period July 1 , 1984, to June 30, 1985 (FY 1984-85) reducing the CTS cost from $196,518 to $189,816; and 2. Amend the proposed FY 1984-85 Elderly and Handicapped Transit budget in the following manner: a. Delete the supplemental budget request of $15,000 in Account 2360-5203 (Special Contractual Services); and b. Reduce the base budget contract amount from $196,520 to $189,816 in Account 2360-5203 (Special Contractual Services). BOARDS/COMMISSIONS RECOMMENDATION: The Elderly and Handicapped Committee has concurred with this contract reduction proposal for FY 1984-85. Page 2, Item 14 Meeting Date 6/19/84 DISCUSSION: SANDAG staff informed the Transit Coordinator of a serious regional Article 4.5 funding shortfall for FY 1984-85 in March 1984. At that time, SANDAG estimated that the potential shortfall could be $500,000 based on projected operator costs for next fiscal year as reflected in the Transportation Improvement Program (TIP) submittal . Council was advised of this potential shortfall in an agenda statement dated April 3, 1984, approving the Article 4.5 claim submittal for FY 1984-85. The shortfall for next year is due primarily to two factors: TDA funding has not kept pace with operator cost increases; and the number of operators in the San Diego area has increased over the past few years. SANDAG staff called a meeting of all Article 4.5 operators in May to discuss ways of reducing the operator claims for next fiscal year in order to stay within the funds available. The general approach agreed to by most of the claimants was to use the FY 1983-84 allocations as the base and then to reduce each allocation proportionally to eliminate the shortfall for next year. Under this approach, the Chula Vista allocation for next year in the amount of $176,756 is a reduction of $8,892, or 5%, from the current year's allocation of $185,648. The SANDAG approved Article 4.5 allocation of $176,756, combined with the two other estimated revenue sources of $5,000 investment earnings and $24,000 in fare revenue, amounts to total revenue sources in the amount of $205,756. The Elderly and Handicapped Transit budget (excluding the coordination project) includes $15,940 in Supplies and Services not including the CTS contract. Of this $15,940 amount, $12,900 consists of City staff services, and the remaining amount of $3,040 consists of line items including rentals and leases, utilities, postage, and advertising. These line items are budgeted at a minimum level and therefore, it is recommended that the CTS contract amount as reflected in Account 5203 - Special Contractual Services, be reduced from $196,520 to $189,816 in order to balance costs and revenues. In addition, it is also recommended that the supplemental budget request of $15,000 in Account 5203 be eliminated. Based on the contract amount of $189,816 and a CTS cost per hour of $29.243, 6,490 hours will be available for HandYtrans operation in FY 1984-85. This reduction amounts to 230 fewer hours for operation compared with the current fiscal year or a reduction of 3%. In terms of operating hours per day over the course of the year, this amounts to a daily reduction of approximately 3/4 hour per day. The Transit Coordinator has discussed the operations procedure for next fiscal year with the contract operator, and it is their recommendation that the 230 hours' reduction be spread throughout next fiscal year, and that the current service level during the weekday and on Sunday be left unchanged. The Transit Coordinator and the contract operator are confident that this number of hours reduction can be spread throughout the year in such a manner as to have minimum impact on the service delivered to the public. Regarding the Article 4.5 fund distribution for the following fiscal year, FY 1985-86, the Article 4.5 claimants and SANDAG staff agreed that SANDAG should continue to work with the Article 4.5 operators to develop an equitable /c?—//657 Page 3, Item 14 Meeting Date 6/19/84 distribution formula for use in FY 1985-86. This distribution formula would allocate available funds in a manner yet to be determined under a similar conceptual approach to the allocation of Article 4.0 funds for fixed route operators. SANDAG staff also recommended that studies should be undertaken by SANDAG in conjunction with Article 4.5 operators to identify potential cost savings and service improvements, particularly in the South Bay and Rancho Bernardo/Poway areas, by reorganizing currently defined operator service areas. An analysis of these issues will be initiated by SANDAG later this summer and completed by January 1 , 1985, prior to the FY 1985-86 Article 4.5 funding cycle. The Transit Coordinator will be involved in this analysis, and will keep Council informed of developments on this matter. FISCAL IMPACT: The SANDAG approved Article 4.5 allocation for the City of Chula Vista for FY 1984-85 in the amount of $176,756 is a reduction of $8,892 or 5% from the FY 1983-84 Article 4.5 allocation of $185,648. Due to the funding shortfall in Article 4.5 funds, it is recommended that the CTS contract amount for FY 1984-85 be reduced from the budgeted amount of $196,520 to $189,816, and that the $15,000 Supplemental Budget Request for additional service hours be eliminated. This reduction will result in a total Elderly and Handicapped budget in the amount of $253,856, compared with the budgeted amount of $275,560, a reduction of 8.5%. This total budgeted amount includes $48,100 for the special contractual service with Regional Center and Starlight Center; this coordination project is not affected by the Article 4.5 TDA fund reduction. WMG:fp/D T-005, DT-007 WPC 0421T YtheL4yc_, £//4$7