Title
Consider a resolution authorizing the Mayor to execute Amendment #1 with Star Shuttle regarding expanding service areas, establishing a direct route between Tech Ridge Park & Ride and Sears Teleserv, and adopting new fares.
Body
As a result of the City’s desire to expand the Demand Response Bus Service, to include the ETJ and a direct route between Sears Teleserv and Tech Ridge, an amendment to the agreement with Star Shuttle is necessary. Although the capital cost of the two new busses is being primarily funded by a Job Access Reverse Commute (JARC) grant, the City will be responsible for a portion of the purchase price, currently expected to be approximately $37,000 or 20% of the total cost. The JARC grant will also contribute some additional funds for operation and maintenance of the direct route between Sears Teleserv and Tech Ridge. The City will own the 2 new buses, but Star Shuttle will operate the additional buses relative to our current operating terms. This amendment will provide the necessary funding from the City to operate and maintain the two new buses. The additional cost for providing the expanded service for the 4 years remaining on the original 5 year contract for service, is $986,764.80 This does not include the anticipated reductions in cost from fares and federal reimbursement.
The current fares for Demand Response Bus Service have been unchanged for several years; general fare $2.00 per person, per trip and discounted fares $1.00 per person, per trip. In June 2012 Star Shuttle became the provider of the service. Although the city’s relationship with CARTS only required service within the city limits, CARTS chose to provide service in and out of the city limits and include service to the ETJ. As a result of the service change in June of 2012, trips outside of the city limits and service to the ETJ, were curtailed. The City held an open house on April 11, 2013 to seek feedback from the public on a proposed fare increase and expanding service to the ETJ with its own unique fare structure. In general, the public (represented by residents that attended the meeting and those that have provided written feedback) agrees fares should be increased; however, there were concerns raised about the amount of the increase relative to low-income persons. The public also agreed that the ETJ should be included, however, once again a different fare for ETJ residents was a concern. There was a general consensus that more buses are needed, in an attempt to closer match capacity with demand.
Based on the feedback from the public, the Transportation Department recommends the following changes to the Demand Response Bus Service:
1) General fares - $5.00 per person, per trip
2) Discounted fares - $2.00 per person, per trip
3) Include low-income persons in the discounted fare group as defined by proof of annual income
4) Include the ETJ in the service area
5) Set fares for persons with home addresses in the ETJ to
General fares - $7.00 per person, per trip
Discounted fares - $3.00 per person, per trip
6) Add capacity with the purchase of two additional buses and establish the direct route between Sears Teleserv and Tech Ridge.
Cost: $986,764.80 (for four years) = $246,691.20 per year
Source of funds: General Fund
Recommended Action
Staff recommends approval.