HomeMy WebLinkAbout08-490DECEMBER 9, 2008 08 -490 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: ACCEPTANCE OF THE REVISED OSHKOSH TRANSIT
SYSTEM FARE STRUCTURE
INITIATED BY: TRANSPORTATION DEPARTMENT
RECOMMENDED BY: TRANSIT ADVISORY BOARD
WHEREAS, the Federal Transit Administration provides financial assistance for capital
improvement projects and transit operating assistance; and
WHEREAS, the Secretary of Transportation is authorized to make grants for the above
types of mass transit projects; and
WHEREAS, the Federal Transit Administration has imposed certain planning
requirements to be completed prior to route and fare modifications; and
WHEREAS, the Transit Advisory Board has afforded the opportunity for interested
persons and agencies to be heard with respect to the social, economic and environmental
aspects of this project; and
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the following modifications to the Oshkosh Transit System fare structure be
adopted.
Fixed Route
Cash Fare (Ages 6- 59) ......................... $ 1.00
Senior Citizen Fare (Ages 60 and over) ....... $ 0.50
Disabled Fare (with ADA or Dial -A -Ride card) $ 0.50
Punch Pass .............................20 rides for $ 20.00
Tokens (roll of 20) ... ............................... $ 25.00
Monthly Pass ......... ............................... $ 25.00
3 -Month Pass ........ ............................... $ 60.00
Oshkosh - Neenah Route:
Cash Fare .............. ............................... $ 2.00
Senior Citizen Fare .. ............................... $ 1.00
Disabled Fare ......... ............................... $ 1.00
Paratransit
Dial -A -Ride (non - ADA ) ............................. $ 2.50
After -hours (Cabulance, ADA and
non -ADA Dial -A -Ride) Fare ..................... $ 5.00
Rural Over 60 (in participating township) ...... $ 6.00
Rural Over 60 (in non - participating township) $ 12.00
Rural Under 60 (in participating township).... $ 6.00
Rural Under 60 (in non - participating township) $ 12.00
City of Oshkosh - Transportation Department O ON THE WATER
926 Dempsey Trail, Oshkosh, WI 54902 (920) 232 -5342 (920)232 -5343 fax
MEMORANDUM
TO: Mark Rohloff, City Manager
FROM: Chris Strong, Director of Transportation
DATE: December 3, 2008
SUBJECT: REVISED FARE STRUCTURE
At its November 19, 2008 meeting, the Transit Advisory Board considered a proposal to increase
fares on a variety of services provided by the Oshkosh Transit System. The meeting included a
public hearing, at which two citizens provided comment on the proposal. The Transit Advisory
Board voted in favor of the fare increase proposal, with some modifications.
This memorandum will present the justification for increasing transit fares at this time, the fare
increases originally proposed by the Department, the fare increases which were recommended by
the Transit Advisory Board, and the impacts of the differences.
Justification for Fare Increases
The Oshkosh Common Council, upon recommendation of the Transit Advisory Board, approved
a cash fare increase in June 2008. This fare increase was implemented in July 2008. This fare
increase was necessary after a long period of not increasing the cash fare.
It was the Department's goal to postpone any new fare increase until 2010 at the earliest.
However, continued escalation in operating costs, especially in fuel, completely overwhelmed the
anticipated revenue gains to the system. Table 1 summarizes the 2008 budget, the most current
projections for 2008 expenditures, and the 2009 budget approved by the Council.
City of Oshkosh — Transportation Department
Revised Fare Structure / December 3, 2008
Table 1: Summary of City Transit Budget
Category
2008
Budget
2008
Estimated
Difference
2009
Budget
Payroll
2,094,054
2,095,575
0.1%
2,162,609
Contractual Services
Purchased Transportation
1,583,704
1,510,214
1,722,710
1,630,
8.8%
7.9%
1,882,395
1,794,
Utilities
44,000
36,350
-17.4%
37,950
Insurance and Other Fixed Charges
126,580
118,970
-6.0%
122,560
Materials and Supplies
Diesel Fuel
355,250
275,
542,240
439,
52.6%
59.6%
643,430
535,
Total Expenditures
4,203,588
4,515,845
7.4%
4,848,944
Revenues
640,000
678,000
5.9%
936,000
Deficit to Be Funded
3,563,588
3,837,845
7.7%
3,912,944
All Non -Local Sources of Aid
2,964,080
3,017,092
1.8%
3,300,261
Local Share
599,508
820,753
36.9%
612,683
The "Total Expenditures" line reflects how much money is being spent to sustain Oshkosh
Transit System's existing fixed -route and paratransit operations. As can be seen, the projected
expenditures are over 7 percent above the budgeted amount. This is primarily due to unexpected
increases in purchased transportation and diesel fuel costs. This will result in an operating deficit
for 2008.
In preparing its 2009 budget, Oshkosh Transit System assumed an average price of diesel fuel of
$4.50 per gallon. This was consistent with initial guidance provided by the Wisconsin
Department of Transportation. This assumption, along with revised estimates regarding future
paratransit usage, results in 2009 expenditures exceeding the 2008 estimate by over 7 percent.
Instead of making service cuts, the Department opted to pursue fare increases. Even with the
proposed fare increase, Oshkosh Transit's cash fare for fixed -route service will remain the lowest
in the state (tied with Stevens Point).
Proposed Fare Increases
Table 2 summarizes the fare increase schedule for fixed route service, proposed to go into effect
on January 1, 2009. The table includes passenger fares for buses, as well as for parallel
paratransit service that is required through the Americans with Disabilities Act. The italicized
rows indicate the fares for which the Transit Advisory Board did not recommend an increase.
City of Oshkosh — Transportation Department 2
Revised Fare Structure / December 3, 2008
Table 2: Revised Fare Structure (Fixed- Route)
Category
Current
Fare
Proposed
Fare
Board
Recommendation
Cash Fare (Ages 6 -59)
$0.75
$1.00
$1.00
Senior Citizen (Ages 60 and over)
$0.25
$0.50
$0.50
Disabled (with ADA or Dial -a -Ride card)
$0.25
$0.50
$0.50
Punch Pass (20 rides)
$15.00
$20.00
$20.00
Tokens
$1.00
$1.25
$1.25
Monthly Pass (unlimited rides)
$20.00
$25.00
$25.00
3 -Month Pass
$50.00
$60.00
$60.00
Dial -A -Ride (ADA *)
$1.50
$2.00
$1.50
Cabulance (ADA *)
$1.50
$2.00
$1.50
Cabulance (ADA *) with premium service
$2.50
$3.00
$2.50
Oshkosh - Neenah Cash Fare
$1.50
$2.00
$2.00
Oshkosh - Neenah Senior Citizen
$0.75
$1.00
$1.00
Oshkosh - Neenah Disabled
$0.75
$1.00
$1.00
* - These services are required by the Americans with Disabilities Act to be offered in
complement to our fixed -route service
Table 3 summarizes the fare increase schedule for other paratransit services provided by the City.
These fare increases are also proposed to go into effect on January 1, 2009. It should be
emphasized that having a bus system does not require the City to provide these services. In some
cases, these services allow the City to realize some grant revenue that can help to reduce the cost
of fixed -route service. The italicized rows indicate the fares for which the Transit Advisory
Board did not recommend an increase.
Table 3: Revised Fare Structure ( Paratransit)
The Meal -Site Transportation program provides subsidized transportation for seniors to attend
one of five meal sites within the city limits. Program participants must pay for the meals on a
City of Oshkosh - Transportation Department
Current
Proposed
Board
Paratransit Program
Fare
Fare
Recommendation
Dial -A -Ride (non -ADA)
$1.75
$2.50
$2.50
After -hours (Cabulance, ADA
$4.00
$5.00
$5.00
and non -ADA Dial -A -Ride)
Rural Over 60 (in participating
$5.00
$6.00
$6.00
township)
Rural Over 60 (in non-
$10.00
$12.00
$12.00
participating township)
Rural Under 60 (in
$5.00
$6.00
$6.00
participating township)
Rural Under 60 (in non-
$10.00
$12.00
$12.00
participating township)
Meal -Site Transportation
$1.00
$1.50
$1.00
The Meal -Site Transportation program provides subsidized transportation for seniors to attend
one of five meal sites within the city limits. Program participants must pay for the meals on a
City of Oshkosh - Transportation Department
Revised Fare Structure / December 3, 2008
voluntary basis, and there is no income requirement to participate in the program. Four of the five
meal sites are on fixed -route bus service. Therefore, this program provides basic transportation to
one site not served by bus service, and it provides enhanced transportation to the other four sites.
This program is marketed through ADVOCAP.
All four services for which the Board did not accept the Department's recommended fare
increase are provided by contracts administered by the City. Under these contracts, the City pays
the contractor a fixed amount per ride regardless of the fare paid by the passenger. Table 4
summarizes the fares (effective January 1, 2009) as recommended by the Transit Advisory
Board, the contractor's approved rate for each service, and the percentage of the cost of service
which the fare represents. It should be noted that, by law, the transit system cannot charge more
than two times the $1.00 cash fare for the required Dial -A -Ride and Cabulance services.
Table 4: Fares for Select Paratransit Services as Percentage of Service Fee
Service
Board Fare
Recommendation
Contractor
Rate
% Cost
Recovery
Required Services
Dial -A -Ride (ADA *)
$1.50
$8.50
18%
Cabulance (ADA *)
$1.50
$16.25
9%
Cabulance (ADA *) with premium
service
$2,50
$16.25
15%
Optional Services
Dial -A -Ride (non -ADA)
$2.50
$8.50
29%
After -Hours Dial -A -Ride
$5.00
$8.50
59%
After -Hours Cabulance
$5.00
$16.25
31%
Rural Over 60 or Under 60 (in
participating township)
$6.00*
$31.00
19 %*
Rural Over 60 or Under 60 (in non-
participating township)
$12.00
$31.00
39%
Meal -Site Transportation
$1.00
$8.25
12%
* - Participating townships currently pay an additional $5.00 toward the service cost.
The combined passenger fare (effective January 1, 2009) and the existing township
contribution is $11.00, which is 35 percent of the service cost.
Fiscal Impacts
The 2009 budget approved by the Common Council assumed the fare increases proposed by the
Department. These fare increases are projected to bring approximately $143,000 in additional
revenue to the transit system. Without these fare increases, it will be necessary to cut transit
service.
The fare increases recommended by the Transit Advisory Board will generate additional revenue
for the transit system, but less than was assumed in the 2009 city budget. I estimate that the fare
increase package will result in $101,000 in additional revenue to the transit system, or $42,000
less than if the Department's fare increase proposal was accepted as presented.
City of Oshkosh — Transportation Department
Revised Fare Structure / December 3. 2008
Historically, the Transit Advisory Board has not amended a fare increase proposed by the
Department. Consequently, when the board amended the Department's proposal during the
November 19 meeting, I was not prepared to answer questions about the impact of changing
specific fares. It is likely that Board members were unaware of the fiscal impact of the totality of
these decisions.
Recommendation
With respect to the fare increase, the Common Council has at least three options.
• 1. Approve the Transit Advisory Boards recommendation as is. In order to avoid a deficit
for this year, the transit system will need to have $42,000 in increased system revenue
(through fare increases and/or increased ridership) or approximately $100,000 in
operating cost savings in 2009. Otherwise, the transit system will have an operating
deficit in 2009, which would build on the 2008 deficit.
• 2. Amend the Transit Advisory Board's recommendation to reflect the Department's
original proposal. Assuming that the Department's projections are accurate, this means
the transit system would not operate at a deficit. Any cost savings would then offset the
deficit that occurred during 2008.
• 3. Postpone implementation offare increases. This option could be justified by current
fuel costs, which are much lower than were assumed in the 2009 budget. It should be
noted that there is always a time lag in implementing any fare increase, due to public
notification requirements. Therefore, it is important to anticipate escalating costs rather
than react to them in order to minimize the exposure of the system to fiscal stress.
Given the 2008 operating deficit for the system and the revenues assumed in the 2009 budget, I
believe the second option would the most prudent course to pursue.
City of Oshkosh — Transportation Department