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HomeMy WebLinkAboutAgenda Statement 1982/06/15 Item 14COUNCIL AGENDA STATEMENT Item 14 Meeting Date 6/15/82 ITE TITLE: Resolution /~~~d'Approving Agreement With San Diego Transit Corporation (SDTC) for Transit Serv'c During FY 1982-83 SUB ITTED BY: Development Services Administra~ /5ths Vote: Yes No x ) ii San Diego Transit Corporation's FY 1982-83 servic agreement with Chula Vista is o provide transit service through Chula Uista with Routes 29 and 32. The cos of this service, which is subject to adjustment later in the year, is estimated to be $153,275. This cost is a 53% increase over the FY 1981-82 cos of $99,898 for Routes 29 and 32. The cost for these two routes rep esents a combined net cost per passenger of $.36, and a combined net cost per mile of $1.00. Despite the increase in cost compared with this fiscal yea the Transit Coordinator and I believe that it still is cost effective for Chula Vista to contract with SDTC for this service. Therefore, it is my RE~MMENDATION: That Council approve the FY 1982-83 agreement with Sa Diego Transit Corporation for transit service in Chula Vista. COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: Th~ increase in cost for service through Chula Vista during FY 1982-83 is at ributed primarily to the following: - Reduction in revenue passengers on both Routes 29 and 32, based on updated revenue passenger estimates by SDTC on both routes. - Reduced Federal subsidy credits of approximately 1/3 due to cut backs in "Section 5" funds. Tw~ cost components of the agreement have been reduced compared with this ye is agreement; - The SDTC gross cost per mile has been reduced from $3.6441 to $3.5415, about 3%. SDTC attributes this reduction to lower fuel costs and to "economies" made within SDTC. - Capital cost has not been included in the FY 1982-83 agreement. Th net cost for Route 29 for FY 1982-83 is $78,141, an increase of 95% over th's year's net cost of $39,941. The net cost for Route 32 for FY 1982-83 is $7 ,134, an increase of 25% over this year's net cost of $59,957. The primary re son the cost for Route 29 increases a higher percentage than Route 32 is Page 2, Item 14 Meeting Date 6/15/82 due to a greater percentage decrease in projected revenue passengers on Rou e 29 for next fiscal year. According to SDTC, this reduction in revenue pas engers is based upon current ridership on both Routes 29 and 32. Reg rding Route 32, we compared the cost of San Diego Transit operating this roue and SCOOT .operating this service between Palm Avenue Station and the "H" Street Station in Chula Vista. At this time it is still cost effective for Chula Vista to contract with SDTC for Route 32 service. Based on SDTC cos s and SCOOT gross costs for FY 1982-83, the net cost per mile for SDTC to ope ate Route 32 is $.94 compared with $1.55 for SCOOT. There are two main rea ons why the cost advantage rests with SDTC: Acc Nov wil A y Cou FIS app acc par Chu - the Federal subsidy per mile and per passenger that is credited Chula Vista for Route 32; and - more revenue passenger credit due to SDTC's higher fare than CVT. ~rding to the SDTC agreement, we may notify SDTC on or before July 1, ember 1, and April 1 of any service change we want to make, and this change I be made effective 90 days after these dates. epresentative of SDTC will be in attendance to answer any questions the ~cil may have. AL IMPACT: The FY 1982-83 SDTC claim against Chula Vista's TDA rtionment will leave a reserve balance of approximately $12,500 in our unt. This amount includes the $80,000 for a capital reserve submitted as of the SCOOT FY 1982-83 TDA claim. This balance is computed as follows: a Vista TDA Apportionment (FY 1982-83) Claim (Chula Vista Account) SDTIC Claim Ballance WMC~:dI/DS027, DS037 WP 0084T ,: ~; $1,129,286 - 963,515 - 153,275 $ 12,496