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Home My WebLink AboutPara-transit.PPTPara - transit Services February 5, 2013 FTA Requirements As a recipient of Federal operating assistance from the FTA for fixed route transit service we are mandated to provide complimentary para- transit service. It must: Provide service that mirrors hours of operation of fixed route service Provide curb to curb service Charge a fare that no more than doubles fixed route fares Iowa City Service — Provided by Johnson County SEATS Required Hours of operation • Mon. —Fri. 5:45am — 11: 1Opm Saturday: 5:45am — 7:40pm • Curb to Curb Service • Fares no more than double fixed route fares • In FYI we increased our fixed route fare to $1.00. Last increase was in 1997. Provided Hours of operation • Mon. —Fri. 5:45am — 11: 1Opm Saturday: 5:45am — 7:40pm Sunday: 8:00am — 2:00pm • Door to Door Service • Para - transit fare= $2.00 (10% of rides) Half fare = $1.00 (90% of rides) Options for Providing Service Contract with Johnson County SEATS • Operate Service In -House • Contract with Another Government Agency o Request Proposals from Public and Private providers Iowa City — FY12 Revenue hours of service for Iowa City 2707 Cost per revenue hour across system $56.45 Total rides for Iowa City 95,116 Cost per ride for Iowa City $16.42 Jol Coralvil 11% $1,800,000.00 $1,600,000.00 $1,400,000.00 $1,200,000.00 $1,000,000.00 $800,000.00 $600,000.00 $400,000.00 $200,000.00 Annual Rides Cost to provide Service Iowa City Coralville Johnson County Revenue Hours Johnson County 16% Coralville I 16% Iowa City 68% $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 Iowa City Coralville Johnson County Cost per ride *Johnson County rides and hours include rural, Pathways, TMS & University Heights Cost per Revenue Hour — FY11 Cedar Rapids Des Moines Waterloo Ames • Iowa City(SEATS) Bettendorf Cambus $70.58 $61.85 $61.35 $56.26 $52.43 $48.40 (No benefits) $19.40 (Student Drivers) County Participation to Iowa City Service* FY2013(estimated) $463,661.05 • FY2012 $461,319.17 • FY2011 $307,319.17 • FY2010 $233,449.10 • FY2009 $228,743.20 • FY2008 $233,305.28 • FY2007 $133,030.36 • FY2006 $109,860.66 • FY2005 $68,992.98 • FY2004 $33,742.15 • FY2003 $57,816.90 • FY2002 $278,762.36 $500,000.00 $450,000.00 $400,000.00 $350,000.00 $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00 County Participation y��eh J,10 *Funds provided through General Tax Levy, etc. for expenses above and beyond contracted amount Some factors that led to increased costs • No Iowa City fixed route increases from 1997 — 2012 • Fixed route fare = $.75 • SEATS fare = $1.50 • Average cost per ride > $16.00 • Iowa City offering a half fare for users • 90% of trips receive a $15.00 ride for $.75 • Increased fuel costs • Up 45% over past three years • Increased maintenance costs as fleet aged • Higher than expected growth in users County Participation — FY12 Funds from General Levy for Para - transit Services Total: Iowa City: Coralville: Johnson County *: $856,931 $461,319 $137,955 $257,657 * Includes Rural, Pathways, TMS and University Heights General Levy Funds by Community Jurisdiction Iowa City Coralville % ofTaxable Valuations • •, 13.80% Proportion of County Expenditures , $118,271 North Liberty 9.21% $78,942 Solon 1.26% $10,779 U Heights 0.95% $8,165 Tiffin 0.95% $8,106 Hills 0.58% $4,998 Lone Tree 0.48% $4,132 Swisher 0.39% $3,323 Shueyville 0.30% $2,585 Oxford 0.19% $1,612 West Branch 0.07% $589 Unincorporated 22.03% $188,758 Ir 100.00% $856,931.21 Timeline - Received initial proposal from Johnson County • September 25, 2012 • 55% increase in City costs, 0% County participation • No negotiations until after November election • Frequent and Ongoing dialogues with Coralville and SEATS Directors • Submitted Counter Proposal • January 8, 2013 • Proposed 22% increase in City contract, 21% decrease in County participation • Received Final Offer from Johnson County • January 10, 2013 • $100,000 County participation in Year 1, $50,000 in Year 2, $0 Year 3+ • Developing models to fit within FY14 budget proposal Current Proposal from Johnson County • All entities should pay their fair share • $1,417,900forFY14 • 31,000 estimated revenue hours at $54.55 per hour plus $27,000 rent • $200,000 in estimated revenues • $100,000 County participation in FY14, $50,000 in FY15. $0 in FY16 • Pros for this model • Easy to budget • Cons for this model • Estimates for revenue hours, cost per hour and revenues • Decreasing use of Iowa City tax funds to support service, $0 in year three. • With no other changes, the transit budget for the next three years would look as follows: Year Expenses Revenues Net FY2014 $6,819,057 $6,626,613 ($192,444) FY2015 $6,724,711 $6,682,560 ($ 42,151) FY2016 $6,873,246 $6,740,298 ($132,948) This would lower our reserves by an estimated $367,543 over a three year period. Options for Lowering Operational Costs Eliminate Half Fare $120,000 Bring Maintenance In -House $108,000 • Eliminate Sunday Service $ 68,000 • Charge Premium Fare for Sunday Service * $ 10,000 • Increase Fixed Route Fare $.25 $ 48,500 • Curb to Curb vs. Door to Door Service *Does not apply if Sunday Service is eliminated Minimum flat rate • Set low, flat rate monthly payments then true up at end of year to cover any under payment • i.e. If estimated revenue hours are 29,000, pay for 27,000 spread over 12 months and settle balance at end of year. • Pros • Lowers chances of overpayment • Allows for changes to take effect • Both parties have some protection • No need to utilize County tax funds • Cons • Requires estimates for cost per hour and annual revenue hours of service • May require end of year balloon payment to true up Pay as You Go • City will receive periodic invoices for services provided • i.e. At the end of Ql, Iowa City utilized 7,000 revenue hours of service at a cost of $250,000 after revenues are backed out. We get an invoice for $250,000. • Pros • Consistent with City philosophy • All entities pay for what they use • City will not overpay due to over estimates • No need to utilize County tax funds • No balloon payment at end of year to true up • Cons • Slightly more difficult to budget for Recommendation • Multi -year agreement with Johnson County • Pay as you go model • Eliminate half fare - Bring maintenance in -house • Eliminate Sunday service or charge premium fare • Curb to curb service • Increase fixed route fare in FYI err Estimated cost for service $ 966,950.00 $ 1,024,950.00 $ 1,014,450.00 $ 1,072,450.00 $ 1,064,450.00 $ 1,122,450.00 *$1.2 million for FY14 results in a balanced budget "Red columns denote premium fare on Sundays over elimination of Sunday service FY14 FY14 FY15 FY15 FY16 FY16 Operating Cost $ 1,581,950.00 $ 1,581,950.00 $ 1,581,950.00 $ 1,581,950.00 $ 1,581,950.00 $ 1,581,950.00 Rent $ 27,000.00 $ 27,000.00 $ 27,000.00 $ 27,000.00 $ 27,000.00 $ 27,000.00 County Contribution $ (100,000.00) $ (100,000.00) $ (50,000.00) $ (50,000.00) $ - $ Fares $ (200,000.00) $ (200,000.00) $ (200,000.00) $ (200,000.00) $ (200,000.00) $ (200,000.00) Eliminate half fares $ (120,000.00) $ (120,000.00) $ (120,000.00) $ (120,000.00) $ (120,000.00) $ (120,000.00) Bring maintenance in- house $ (108,000.00) $ (108,000.00) $ (108,000.00) $ (108,000.00) $ (108,000.00) $ (108,000.00) Fund local match $ (46,000.00) $ (46,000.00) Eliminate Sunday Service $ (68,000.00) $ (68,000.00) $ (68,000.00) Premium fare for Sunday $ (10,000.00) $ (10,000.00) $ (10,000.00) Increase fixed route fare $ (48,500.00) $ (48,500.00) $ (48,500.00) $ (48,500.00) $ 966,950.00 $ 1,024,950.00 $ 1,014,450.00 $ 1,072,450.00 $ 1,064,450.00 $ 1,122,450.00 *$1.2 million for FY14 results in a balanced budget "Red columns denote premium fare on Sundays over elimination of Sunday service Questions /Discussion Do you have any additional questions? How would you like us to proceed?