HomeMy WebLinkAboutAgenda Bill 4B 05/17/2010~ALU
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DATE: May 17, ..2010
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TO: I~onorable Mayor and 1Vlembers of the City Counciil through City 1Vlanager
FROM: Vincent Marengo, Public Works Director
SUBJECT: Public Hearing and Resolution.to Approve Proposed Petaluma Transit Service
Changes and Proposed Fare Increase
RECOM1VIlJNDATION:
It is recommended that the City Council adopt. the attached resolution approving proposed
Petaluma Transit service changes and a proposed. fare increase'to take effect in July 2010.
BACKGROUND:
Declining Overall Transit Revenues
Transit agencies across~the nation are suffering from declining operating revenues, due primarily
to the economic downturn of`the last two,years: Petaluma Transit is no different, having seen
• annual revenues decline by approximately $SOO;000,~in FY 09-10, versus FY 07-08. Petaluma's
TDA (Transportation Development Act) & Measure M funds:have declined by $200,000 per
year, and suspension of STA. (State Transit Assistance) in FY 08-09 & 09-10 cost Petaluma
$300,000 per year. Petaluma Transit's. operations are funded primarily by sales taxes,
specifically TDA and Sonoma County Measure M. Entering FY l,Q-11, Petaluma Transit is
facing a $200,000 shortfall.
How Petaluma's Transit Revenues' are Utilized
Prior ao~the establishment of operations: acid capital budgets for Petaluma Transit, Petaluma
'Transit~first pays "off the top" funding. to regional transit agencies,, Sonoma County Transit and
Golden Gate Transit; who provide. intercity public transit to Petaluma, as well as City- overhead
fees. In FY 09/10, Golden .Gate. Transit received 20%0.($597,394).;. Sonoma County Transit
received 8% ($221.;092); and City overhead'fees came to 11%($339;2'00); leaving Petaluma,..
Transit with only 61% of its original transit operations funding to operate local transit services:':
40% for Petaluma Transit ($1,192,550); and 21 % for Paratransit ($626,150).
Petaluma. Transit's Situation
`Petaluma Transit features two distinct modes. of service: fixed-route and' paratransit. The ability
to control costs varies greatly between the two modes.
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A enda Revie~`1 l! ~ ` ' .
De t. Director Ci Att~rnc r].
p ty y ~~~ Fin2nce Director-,~~ City Manager
Paratransit costs are challenging: to control. Once a potential paratransit rider is screened for
ehgibility`(unable to use fixed route; as established by "the Americans with Disabilities Act.-
A'DA) and determined as eligible .for paratransit, there is little ability to regulate trips,
Paratransit costs can best be controlled by stringent eligibility determination, combined with
efficient service delivery. The ability to carry more trips with fewer vans .(more. riders per hour)'
is key to cost control. Petaluma Paratransit has experienced fluctuations in per-hour productivity
in recent years, but all are .generally within industry norms of 2-3 passengers per revenue hour.
Fixed route costs are, dependent upon three primary factors: abor (contract) costs, schedules
(service- hours),, and -fuel costs. Labor .costs; which vary by year and desired staffing levels, and
are set periodically via competitive bidding processes,. are largely out of Petaluma, Transit's
.control. Fuel costs vary with market activity. What Petaluma Transit controls entirely, is the
;fixed route schedules; .and- subsequent number of annual revenue hours of service provided.
Petaluma Transit's current fixed route network and fare structure have been in place" for many
years, with the last :fare" increase in 2003. The route network features extensive: duplication. in
coverage, particularly along E. Washington, and through Downtown. " 16,000 hours are provided
annaally,__ Service is infrequent at most gcations outside the downtown area and along E.
Washington. Service schedules are Monday through Friday, 6:15 am to 6:1 S pm, and Saturdays;
from 10:00 am to 5:15 pm.
Petaluma Transit's reserves have been drawn down to approximately $440,000, most of which is
committed to upcoming major capital purchases (new buses and vans).
DISCUSSION:
.Petaluma Transit recommends a.multifaceted approach to balancing the FY 10-11 budget with
the reduced.revenuesuvailable. The submitted FY 10-1'1 transit budget features savings from -
severalsources:
Increased operating efficiency in paratransit $ 50,000
Reduced admin and maintenance (parts) budgets $ 50;000
Reduced f xed route costs (revenue hours and ,fuel) Scedario 4 $ 90,000
"Total proposed FY 2010-:11 budget reductions $190,000
Details.of Reduced.Fixed Route Costs
'Restructuring the, route network will improve transit- service; while saving. money. Thee new
route network improves travel times. and connectivity through the creation of an Eastside timed-
pulse transfer point,, where. routes will meet to transfer°passengers. This transfer point is located
at the: current Washington .Square. bus stop on Maria. By orchestrating convenient bus meets at
the Washington Squares"top, Eastside to Eastside trips will be faster. The fixed route cost
savings are realized by reduction of duplicative service along Washington & Downtown. Recent
Petaluma Transit market .research supports this restructure of service, as Petaluma Transit's most
productive route segments are on the Eastside. Sixty percent of these trips do not. require
crossing: US 10.1. These core trips are currently inconvenient,. due to difficulty in transferring
between routes, and the lack of service frequency on the Eastside routes.
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;Staff created six scenarios, 1-6, with escalating ervice reductions ranging from an annual
reduction of 828• hours (5.2%; saves$35,000/yr) in •Scenarib 1; fo a reduction of 4833 hours
(30 2%,.saves$180,00.0/yr) in Scenario 6. After two'TAC meetings, focus was narrowed to
Scenario's 4 & 5, 'due to the need to reduce the fixed route costs by nearly $100,000 per .year to
balance the budget. Scenario 4 reduces .costs to fit the lower revenues available; reduces impacts
to most Petaluma Transit riders; and implements changes to improve service to most riders.
Scenario 4 (Recommended)
The route that has traditionally served the westside (beyond Downtown) is called Route 1 S/1N,
a'lsg known as "Cherry Valley". Ridership has historically been low on this route, and has not
increased in recent years. Aside from trips at westside school bell times, the route suffers from
low- ridership.
Restructuring service .will modify the "Cherry Valley" route to a Petaluma Boulevard-based
route,, except. for school bell time trips that will utilize the current route pattern. It is estimated
that Scenario 4 (in conjunction with the other cost saving measures) will increase ridership -.and
save approximately $210,000 per year. '
Also considered, but not recommended are two other options:
:Scenario 5
This scenario builds on Scenar-io 4 changes, and further reduces service to save approximately
$300,000 per year (compared fo FY 09-10). This saccomplishedby removing service on the
"Cherry Valley" completely, except at school .bell times. Besides the removal of the Cherry
Valley route, Scenario 5 implements all the service improvements listed in Scenario 4, at a
higher cost savings. It is :anticipated that ;Scenario 5 (in conjunction with. the other cost saving
measures) will increase ridership slightly and save approximately $300,000 per year.
Scenario 6
This alternative contains all changes from Scenario ;5;; and then trims about an hour off of each
route on weekday afternoons. This scenario provides the greatest cost `savings, but wasn't
pursued :further due to the. rider. survey -input that identified the lack of evening •service as our
riders' top concern -with the current system.
It: should,be noted that either of these decreases in hours will impact the City's fixed~route
operations contract with:MV Transportation, Inc. An amendment to extend their contract has
been negotiated,and's'. currently scheduled for Council approva'l''on June 7`h
Fare Increase
A component of balancing the expense budget with. declining revenues is the implementation.
of a modest fare increase. The proposed :fare increase impacts cash fares only (passes do not
increase):
Current Fare
Adults
Students
Seniors/Disabled
Paratransit
$1.00 Adults
$.1.00 Students
$0.5'0 Seniors/Disabled
$2.00 Paratransit
Proposed Fare
$1.25
$1.00
$0.60
$ 2.25 ($2.50 on 7/1/2011)
Petaluma, Transit has not raised fares since 20Q3, while other neighboring transit systems have
increased their fares. Petaluma. Transit's fares are currently the .lowest. in the region, .and perhaps
the state. Staff recommends a -two staged fare :increase :for paratransit, increasing from $2.00 to
$2:25 in July 2010, and to $2.50 effective July 1, 2011'.'This will ease the impact on Petaluma
Transit's paratransit patrons.
By adopting the resolution, the City Council is approving the Scenario 4 service changes to
Petaluma Transit, and authorizing .Scenario 5 or Scenario 6, if necessary, to be approved by the
City Manager; following review by the Transit Advisory Committee. As well, the resolution
provides for a fare increase as described above, effective July 2010.
EINANCdAL IMPACTS:
The reduced service level and fare increase will enable continued provision of transit services.
T-otal.Cos""t; of Proposal or Projects
Amount' Budgeted:
Name of.Account: -
Account Number:
Annual Budget Proposed: -
ATTACHMENTS
$54'9,905 (Scenario 4)
$547;905
Transit
6500.65200.54111
$600;000
Resolution approving service .changes and :fare increase to be effective July 2010
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AT°Td~C of IIA E 'r 1
RES®LUTION TO'APPROVE PROPOSED PETALUIVIA .TRANSIT SERVICE CHANGES
ANI) PROPOSEI).FARE'INCREASE
.. WgIEREAS, the funding sources upon which the City operates Petaluma Transit and Petaluma
Paratranst have declined precipitously in recent years, while operating costs have remained stable,;'and
WHEREAS, the Petaluma Transit route network will benefit from a service restructuring, to
better match current transit demand with scarce service resources; and
WHEREAS, in order to support balancing the Petaluma Transit and Petaluma Paratransit
budgets, a fare increase is necessary:
Adults $1.25
Students $1.00
Seniors/Disabled $0:60
Paratransit $ 2.25 (increased to $2.50. July 1, 2011);
and
WHEREAS, staff and. Transit Advisory Committee created. six possible service change
scenarios;. and
WHEREAS, the City has conducted outreach witfi the riding public and the Transit Advisory
Committee to refine the options under-consideration, including review of these proposed changes at
multiple Transit Advisory Committee meetings (March 4, 2010, April 1, 2010 and May 6, 2010), and a
public workshop held on April 8, 2:010, at the Petaluma CommunityCenter, and advertised in local
newspapers, buses, and bus: stops, with comments received in person, via the website, and by telephone;
and
W>FIEREAS, based on input, "Scenario 4" was deemed by staff and the Transit Advisory
Gomm'ttee as,the preferred,alternative, which will modify the "Cherry Valley"'route to a Petaluma .
. Boulevard-based:route, with the exception of the school bell time trips that. will utilize the current route
pattern. ~ Service hours will be added to the North McDowell route, and transferring between Eastsde
routes will be improved by the pulsing of routes on Maria ;and
WHEREAS, sufficient notice has been posted. as to the intent to consider service changes.and a
fare increase in accordance adopted City policy and Federal Transit Administration (FTA) regulations
that apply to all FTA grantees whenever service reductions and/or fare increases are considered.
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- NOW, T>FIEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
;hereby authorizes:
1. the service changes described as "Scenario 4" to be implemented in July 2010, which will
modfy`the~"Cherry Valley" route to a Petaluma Boulevard-based route, with the
exception of the school bell time trips that will utilize the current route pattern. Service
hours will be added to the North McDowell route, and transferring between Eastside
routes will be improved by the pulsing of'routes' on Maria; and
2. engaging "Scenario S",if. necessary, at a future date, as determined by the City Manager,
which builds upon Scenario 4 changes by. adding additional service reductions to save
approximately $300,000 per year (compared to FY 09-10). This is accomplished by
removing service on the "Cherry Valley" route completely, except at school bell times.
Besides the removal of the Cherry Valley route; Scenario 5 defers the addition of more
service hours to the North McDowell route.. It is anticipated that Scenario 5 (in
conjunction with the other Bost saving measures): will increase ridership slightly and save
approximately $300;000 per year; and
3. engaging "S'cenario 6", if necessary at a future date; as:determined by the City Manager,
which contains all changes from Scenario. 5, then trims about an hour off of each route on
weekday afternoons; .and
4. modification to the cash fare structure, as follows:
Adults $-1.25
Students ~ $1.00
Seniors/Disabled $0.60
1'aratransit $ 2.25 .(increased to $2.50 July 1, 2011).
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