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Item 8 - Proposed Poway Transit Svs for FY 93-94 - ~ AGENDA REPORT CITY OF POW A Y TO: Honorable Mayor and Member~e City Council FROM: James L. Bowersox, City Ma INITIATED BY: Robert L. Thomas, Director of Community servic~ Patrick R. Foley, Principal Management Analyst DATE: March 23, 1993 SUBJECT: Proposed Poway Transit Services for FY 93-94 and Resolution Approving An Increase in Fares for the Poway Airport Service and Rescinding Resolution No. 90-12B ABSTRACT Staff is recommending transit service modifications to stay within the City's FY 93-94 estimated allocation of $733,812 in Transportation Development Act (TDA) Funds. Staff recommendations are: 1) fixed route service - increase route 844 peak hour service and maintain route 845 at its current service level; 2) commuter express bus service - continue to operate the express route 820 at the current service level of four round trips a day, Monday through Friday; 3) airporter service - effective July 1, 1993, the single passenger fare would increase from $16.50 to $18 and increase the other group fares by 10 percent; and 4) call-a-ride service - direct staff to include the Poway/mid-County service area in the County's new regional ADA senior/disabled services contract and ensure a level of service in FY 93-94 that equals or exceeds the current level of call-a-ride services. BACKGROUND The funding to operate the Poway Transit Services is a combination of passenger fare revenues and TDA funds. The TDA funds are a portion of the State Sales Tax monies. Currently, passenger fare revenues contribute approximately 30 percent and the TDA funds provide the remaining 70 percent of the revenues required to operate the Poway Transit Service. The TDA sales tax revenues available to operate Poway's transit services are split into two sections. Article 4.0 funding is used to provide transit services to the general public, and Article 4.5 funding is limited to providing call-a-ride services to seniors and disabled persons. ACTION: 1 of 10 MAR 2 3 1993 ITEM 8 --~-- ,-, Agenda Report March 23, 1993 Page 2 According to the SANDAG preliminary estimate of TDA funds available for FY 93- 94, TDA Article 4.0 funds (which Poway uses to operate the local routes 844 and 845, airporter service, commuter express, and general public dial-a-ride services), will be essentially the same as the current year's $745,000 a 11 ocat ion. This flat projection is based on the fact that the economy has not recovered as rapidly as expected, thus decreasing the available TDA funds. It is significant to note, that the $733,812 Article 4.0 TDA allocation and projected for FY 93-94, is still 21 percent lower than the $939,000 allocation received for FY 91-92. In February 1992, the City Council addressed the funding shortfall for Fy 92- 93 by authorized reductions in services. In addition, the City Council appropriated $54,118 from the City's TDA reserve fund to supplement the reduced TDA allocation to cover estimated FY 92-93 operating costs. According to SANDAG, Poway's TDA reserve fund balance is $1,004,314. The TDA Article 4.5 Funds are allocated differently than the Article 4.0 Funds. The 4.5 funds are allocated on a regional formula based on population, land area, anu historical spending levels among the various operators of senior and disabled transit services in the San Diego region. These funds can only be spent on senior and disabled transit services. Service is available in Poway and the City of San Diego communities of Rancho Bernardo, Rancho Penasquitos, Sabre Springs, and Carmel Mountain Ranch, Monday through Friday, from 7 a.m. to 6 p.m. The call-a-ride service is currently subsidized through a combination of Poway's allocation of TDA Article 4.5, TRANSNET funds, and City of San Diego TDA Funds. Currently, the formula for distributing Article 4.5 funds is being evaluated by the San Diego Association of Governments (SANDAG). FINDINGS The following is a brief description of each of Poway's public transit services and the recommended service modifications for Fy 93-94. These modifications will maintain ridership, while working within the reduced funding level projected for FY 93-94. Fixed Route This service consists of routes 844 and 845, which operate in opposite directions on a large loop (as shown in Exhibit 1). Six new lift-equipped 20 passenger mini-buses are used to provide this service. Service is provided Monday through Friday from 5:30 a.m. to 8 p.m. Saturday service hours run from 8 a.m. to 6:30 p.m., and Sundays from 8 a.m. to 6 p.m. Mayflower Contract Services, Inc., currently operates the service and provides the vehicles. The original contract included a three year base term, which expired June 30, 1992, and two one year option terms, which were entered into last year and have now extended the contract until June 30, 1994. Mayflower's contract payment is primarily based on the number of revenue miles operated. The contract provisions include a cost increase of 8.8 cents per mile in FY 93-94. Based on the current 311,000 revenue miles operated, and no other service changes, the cost of this contract will increase nearly $30,000 next year. MAR 2 3 1993 lla:.~ 8 2 of 10 Agenda Report March 23, 1993 Page 3 - As a result of transit service promotions, the City has experienced a 62 percent increase in the number of wheelchair passengers over the previous year. Approximately eight to ten minutes are required to cycle the lift when picking up or dropping off a wheelchair passenger. As a result, route 844 was consistently runnin9 behind schedule. To accommodate all passengers, the schedule was revised effective January 31, 1993 to reflect the longer run times. Staff recommends increasing the level of service on route 844 from two buses during peak hours (5:12 to 11:08 a.m. and 1:33 to 7:30 p.m.) to two buses throughout the day (5:12 a.m. to 8:03 p.m.), The increase in service will maintain service capacity in FY 93-94 with the longer run times on route 844. The NET claim cost for this service in FY 93-94 is estimated at $643,825. Community Express Bus Service The San Diego County Transit System route 820 commuter express bus serves Poway residents who work in Centre City San Diego. Four round trips are provided Monday through Friday with intercity highway coaches operating in the I-IS HOV lanes. The morning and evening trips are designed to meet most downtown work schedules. Projected total ridership for FY 92-93 is estimated at nearly 50,000 passengers, which is no change from FY 91-92. Employment cutbacks, coupled with the recent shift of some major employers out of the downtown area, continue to impact express ridership. Goodall Charter Bus Service, Inc., currently operates the service using their intercity highway coaches. The contract between the county and Goodall will enter the fifth and final year of the base term in Fy 93-94. In accordance with this contract, the per mile cost of operating this service will increase from the current $3.41 to $3.51 next year. Based on a dime a mile cost increase and a projected 57,000 revenue miles in FY 93-94, the net claim cost of the route 820 service will increase approximately $6,000 next year. The net cost (TDA subsidy required) of the commuter express is split equally between the City of Poway and the County. Based on this formula distribution, Poway's net cost for this service is estimated to increase by approximately $3,000 in FY 93-94. The NET claim cost for this service is estimated at $58,040. Staff is recommending that the commuter express route 820 continue to operate at the current service level of four round trips daily, Monday through Friday. Airporter Service The Poway Airporter Service was initiated in 1983 and is funded with Poway's annual state allocation of TDA funds. The Poway Airporter operates as a curb- to-curb "shared van" public transportation service that transports Poway residents to and from Lindberg Field. 3 of 10 MAR 2 3 1993 ITEM 8 Agenda Report March 23, 1993 Page 4 The Poway Airporter Service continues to be the City's most popular transit service. According to the 1991 Poway Transit Attitude and Use Survey, more Poway residents have used the airporter service than any of the other transit services. Currently, the fare box recovery ratio is 60.5 percent and the service is the City's most financially productive. The Poway Airporter Service operates under a "user-side subsidy" concept whereby the City of Poway subsidizes the contractor, Peerless Shuttle, for a portion of the cost of each passenger's trip cost. As ridership increases, the cost of the service increases due to the subsidy. Since Peerless began operating the service in 1989, regular fare increases have been implemented to decrease the total amount of the subsidy required as the ridership has increased. During this period of time, ridership has continued to increase while the subsidy per passenger has been decreasing. Staff is recommending that the City Council approve the attached resolution (Exhibit 2) authorizing a fare increase for the airporter services effective July 1, 1993. For a single passenger, the fare would increase from $16.50 to $18.00. The other group fares would increase by 10 percent. The increase in fares will reduce the annual NET claim for the airporter from $100,000 to an estimated $51,106 in FY 93-94. Even with this proposed fare increase, the resident's fare for the airporter service remains the lowest compared to other service providers, as shown in Exhibit 3. Dial-A-Ride Service This is a general public dial-a-ride system designed to provide curb-to-curb transportation service within the Poway city limits. Service is provided on Saturdays only from 8 a.m. to 6 p.m. Originally a Monday through Saturday service, dial-a-ride was scaled back in July 1992 to Saturdays only due to funding limitations, marginal ridership, and the fact that much of the service duplicated the senior/disabled call-a- ride service. Ridership data for the first six months of FY 92-93, and passenger surveys conducted during November 1992 and January 1993, indicate that on an average Saturday only seven passengers use the service, which averages one trip every 45 minutes. Based on a recent random survey, on the average, four of every seven passengers live close enough to use the existing fixed route bus service to make their Saturday trips. Additionally, at least two private taxi cab firms provide service to the Poway area. A maximum rate for cab service has been set by MTDB at $1.20 for the flag drop and $1.60 per mile. Poway Cab has advised staff that they will give dial-a-ride customers a 20 percent discount on these posted rates. Poway Cab operates 24 hours a day, seven days a week. Dial-a-ride is Poway's least productive transit service, recovering only 8.5 percent of its cost from passenger fares and currently operating at a cost of $15.31 per passenger. The elimination of this service will save the City $14,000 in TDA funds. MAR 2 3 1993 ITEM 8 4 of 10 - Agenda Report March 23, 1993 Page 5 Staff is recommending that the Saturday only general public dial-a-ride service be terminated effective July 1, 1993. Call-A-Ride Service Call-a-ride is a wheelchair lift-equipped transportation service designed to provide curb-to-curb service for persons with disabilities and seniors. In accordance with the recently enacted Americans with Disabilities Act (ADA), disabled persons are given service priority. Seniors also may request service on a space available basis. Service is available in Poway and the city of San Diego communities of Rancho Bernardo, Rancho Penasquitos, Sabre Springs, and Carmel Mountain Ranch. Service is provided by three vehicles, Monday through Friday, from 7 a.m. to 6 p.m. This service is funded with TDA Article 4.5 funds rather than Article 4.0 funds like the other Poway transit services. There is no advantage in reducing or eliminating this service in favor of other Poway transit services because the 4.5 funds can only be spent on this type of senior/disabled service. The call-a-ride service is currently subsidized through a combination of Poway's allocation of TDA Article 4.5, TRANSNET, and City of San Diego 4.5 funds. In FY 93-94, it is projected that call-a-ride will cost approximately $140,000 to $145,000 to operate. The estimated funding available for this service in FY 93-94 is $120,000 to $130,000 (a 7 to 20 percent decrease). Mayflower Contract Services, Inc., currently operates the service and provides the vehicles. The term of their three year contract expires June 30, 1993. The County Transit Services (CTS) operates ADA senior/disabled services for seven other East County and South Bay cities, and adjacent County unincorporated areas. The current American Red Cross contract for this service expires June 30, 1993. In an effort to create cost savings based on economies of scale and a more regional ADA service, CTS is recommending that the Poway mid-County area be combined with the East County and South Bay areas into one large contract. It is anticipated that the savin9s realized in bid prices for this expanded service will offset any funding decrease that may occur and allow the existing level of call-a-ride service to be provided in Poway. This new CTS contract is scheduled to begin July 1, 1993, and will provide enhanced regional ADA services for Poway/mid-County residents. It is recommended that the City Council direct staff to include the Poway/mid- County service area in the County's new regional ADA senior/disabled services contract and ensure that Poway's level of service in FY 93-94 equals or exceeds the current call-a-ride levels. FISCAL IMPACT If the City Council authorizes staff to implement the recommended service level in FY 93-94 (as shown in Exhibit 4), it will require an allocation of approximately $24,159 from the City's TDA reserve account. The City's TDA reserve account currently has a balance of $1,004,314. 5 of 10 MAR 2 3 1993 ITEM 8 -- --- -- - --- Agenda Report March 23, 1993 Page 6 ENVIRONMENTAL IMPACT REVIEW Not applicable. PUBLIC NOTIFICATION AND CORRESPONDENCE Ken Karnes, Transportation Specialist, County of San Diego and Allen Feldstein, Executive Director, Poway Valley Senior Citizens, Inc. RECOMMENDATION It is recommended that the City Council: 1. Close the public hearing and adopt the attached Resolution Approving an Increase in Fares for the Poway Airport Transportation Service and Rescinding Resolution No. 90-128. 2. Authorize staff to implement the following transit service modifications in FY 93-94: a. Increase the level of service on route 844 from two buses during peak hours to two buses throughout the day. b, Maintain the current level of service for the commuter express bus. c. Terminate the Saturday only general public dial-a-ride service effective June 30, 1993. d. Include the Poway/mid-County service area in the County's new regional ADA senior/disabled services contract and ensure that Poway's level of service in FY 93-94 equals or exceeds the current call-a-ride service. e. Authorize an appropriation of funds from the TDA reserve balance necessary to provide the recommended level of transit serves in FY 93-94. JLB:RLT:PRF:sf Attachments: Exhibit 1 - Fixed Route Transit Map Exhibit 2 - Resolution Exhibit 3 - Comparison of Poway Airport Transportation Services Exhibit 4 - Proposed FY 93-94 TDA Claim for Poway Transit Services MAR 2 3 1993 ITEM 8 6 of 10 RESOLUTION NO. 93- A RESOLUTION OF THE CITY COUNCIL OF THE - CITY OF POWAY, CALIFORNIA, APPROVING AN INCREASE IN FARES FOR THE POWAY AIRPORT TRANSPORTATION SERVICE AND RESCINDING RESOLUTION NO. 90-128 WHEREAS, the County of San Diego administers the contract for the airport transportation service; and WHEREAS, the airport transportation service subsidies have increased due to the increase in ridership; and WHEREAS, the City determines that an increase in fares will not adversely impact the level of service. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Poway does hereby approve the following: Section 1: Increase Poway airport transportation service fares effective July 1, 1993 as follows: 1. Single passenger fare from $16.50 to $18. 2. Two passenger fare from $18 to $23. 3. Three passenger fare from $18 to $26. 4. Four or more passenger fare from $20.50 to $32.25. Section 2: Resolution No. 90-128 is hereby rescinded. - PASSED, ADOPTED, AND APPROVED, by the City Council of the City of Poway at a regular meeting thereof this 23rd day of March, 1993. Don Higginson, Mayor ATTEST: Marjorie K. Wahlsten, City Clerk STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify that the foregoin9 Resolution, No. 93- , was duly adopted by the City Council at a meeting of said City Council held on the 23rd day of March, 1993, and that it was so adopted by the following vote: AYES: NOES: -- ABSTAIN: ABSENT: MarJorie K. Wahlsten, City Clerk 7 of 10 MAR 2 3 1993 ITEM 8 -- ------ --- -------.---- ----..- -----------..- l!j ~ ", 0 I "'n l'l?: ~ s~ .. ~ 'In" ~~ i .. ..... 0. ~ ~, '0 ~ ~s >(') "':: 00 '" H '" S; >: ~ (F1 d ~ . 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CC1 .... .... ... ~ 1;; 1;; C'l ~3: .... .... - '" "" "" "" 8 8 "" "" "" "'''' co Q c> c> c> $ '" .... ~ to> 15 t! i~ to co to <0 '" ;;;'8 0 "" is 8 8 is "" .. ~ Q co c> .. - MAR 2 3 1993 ITEM 8 9 of 10 POW A Y TRANSIT SERVICES FY 94 PROPOSED ARTICLE 4.0 IDA CLAIM GENERAL PUBLIC TRANSIT SERVICES A. Fixed-Route - Increase level of service on Route 844 from two buses during peak-bours (5:12 a.m. to 11:08 a.m. and 1:33 p.m. to 7:30p,m.) to two buses throughout the day (5:12 a.m. to 8:03 p.m.). Assumes 326.560 miles@ S2.037. B. Airport Service, Reduce passenger subsidy level. (S2.00-S5.00) depending of group size. which results in a total annual subsidy of approximately S30,OOO. C. Express Bus, No changes to level of service - folD' round trips pel" weekday. Mileage rate increase of SO. 10 per mile. (A) (B) (C) Poway Poway Poway Operating Costs Fixed,Route Airport Express Non-Contract Costs SI1I.622 S22.378 SO Contract Costs Fixed,Route S665.203 Airport S285.768 Express S58,040 TOTAL OPERATING COST S776,825 S308,146 S58.040 TOTAL GROSS COST $1,143,011 Fare Revenue $98,000 $257,040 N/A Passes{l1ckets S35,OOO N/A N/A TOTAL REVENUE S133,OOO $257.040 N/A NET CLAIM $643,825 $51,106 $58,040 SUBTOTAL OPERATING CLAIM $752,971 City of Poway Admin. Expenses $5,000 PROPOSED TOTAL POW A Y CLAIM FY 94 $757,971 ESTIMA!ED IDA A Y AILABLE $745,000 RESERVE REQUIRED ($24,159) MAR 2 3 1993 ITEM 8 10 Of 10