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NOVEMBER 8, 2011 11-499 11-526 PENDING
NOVEMBER 22, 2011 RESOLUTION
(CARRIED__5-2____ 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,
effective January 1, 2012, be adopted.
Paratransit Program:
Dial-A-Ride (ADA)…………………………….. $ 2.00
Dial-A-Ride (non-ADA)……………………….. $ 3.50
Cabulance (ADA)……………………….…….. $ 2.00
Cabulance (ADA) with premium service……. $ 3.00
(#14
OlHKOfH
City of Oshkosh - Transportation Department ON THE WATER
926 Dempsey Trail, Oshkosh, WI 54902 (920) 232-5342 (920)232-5343 fax
MEMORANDUM
TO: Mark A. Rohloff, City Manager
FROM: Christopher Strong, P.E., Director of Transportation( -
DATE: November 17, 2011
SUBJECT: ANALYSIS OF IMPACTS OF PROPOSED FARE INCREASES
Background
This memo has been drafted to answer Council member questions regarding the resolution to
increase select fares on the Oshkosh Transit System. This resolution was presented to the Council
at its November 8, 2011 meeting, and was laid over to the November 22, 2011 meeting.
Table 1 lists all of the Oshkosh Transit System's programs, with 2010 statistics for the number of
rides and revenue by program. The rows in italics highlight the programs which would be
affected by the proposed fare increases. These programs accounted for approximately 9 percent
of system rides in 2010.
The ADA Dial-a-Ride and ADA Cabulance fares represent programs which must be operated in
order to comply with Federal Transit Administration(FTA) requirements regarding the
Americans with Disabilities Act (ADA). The purpose of these programs is to provide public
transportation to those who, due to a disability condition, are unable to use the fixed route bus
system. This public transportation option, provided by contractor on a demand-responsive basis,
uses accessible vans or sedans to provide a service that complements the fixed route system. The
nature of these rides is more cost-intensive than rides provided on the fixed-route system.
Accordingly, the FTA allows transit agencies to charge up to double the cash fare for this service
to help pay for this service1. Nevertheless, the cost of this customized service is such that the fare
covers a smaller portion of the cost of service than it would for a fixed-route trip.
Agencies are allowed to assign an additional charge for premium service. OTS has used a$1.00 premium for
Cabulance service. Basic Cabulance service provides curb-to-curb transportation,while the premium service
provides door-to-door service.
City of Oshkosh—Transportation Department 1
Analysis of Impacts of Proposed Fare Increases/November 17,2011
Table 1: OTS Ridership and Farebox Revenue by Program, 2010
2010 Ridership 2010 Revenue Revenue
Fare Classification Number Pct Number Pct per rider
Fixed Route Service 885,514 89.4% $ 501,375 59.8% $ 0.57
.......... ...............
ADA:DIAt A AIDE.: 42,448 4::3% :$ 63,:672 7 6% $ 1::50:
Non-ADA Cabulance 1,927 0.2% $ 9,635 1.1% $ 5.00
NON-ADA DIAL-A-RIDE(2): 24: 92 ::::2;5% $ 83;745 10:0 ($> ^
Agency Cabulance (3) 3,384 0.3% $ 62,838 7.5% $ 18.57
Agency Dial-a-Ride (3) 1,872 0.2% $ 23,396 2.8% $ 12.50
Rural Over 60 (4) 3,705 0.4% $ 25,590 3.0% $ 6.91
Rural Under 60 (4) 202 0.0% $ 1,668 0.2% $ 8.26
Agency Rural (3) 271 0.0% $ 8,192 1.0% $ 30.23
Access to Jobs 7,857 0.8% $ 23,571 2.8% $ 3.00
Advocap 3 0.0% $ 3 0.0% $ 1.00
Total (5) 990,329 $ 839,095
Notes:
(1)ADA Cabulance revenue per rider is greater than basic fare $1.50 due to some passengers using
premium service.
(2) Non-ADA Dial-a-Ride includes senior dial-a-ride and after hours dial-a-ride, which have different
fares.
(3)The revenue per rider for agency fares(Agency Cabulance, Agency Dial-a-Ride and Agency Rural)
may differ from the agency fare since fares may be purchased in advance of usage.
(4) Rural Over 60 and Rural Under 60 fares vary depending on whether the passenger is in a
participating township.
(5) The total does not include non-revenue paratransit programs, including Cerebral Palsy of Mideast
Wisconsin, Lakeside Packaging Plus, Lutheran Homes and Red Cross (Northeast Region), which were
offered in 2010 but are no longer in place.
One can participate in either of these programs with a valid ADA card, which an individual can
obtain at no charge via an FTA-compliant passenger certification process. However, it should be
noted that many individuals with an ADA card may be able to use the fixed route bus. These
individuals could pay less and use the fixed route system; however, the fixed route service may
not be as convenient of an alternative, so some individuals will opt to pay the additional fare for
the premium service.
The Senior Dial-a-Ride Service is part of the Non-ADA Dial-a-Ride Services provided by the
City. City residents 60 and older are eligible to use this service for rides anywhere in the City.
This particular program refers to trips made during the hours that the bus system is in operation.
These individuals have no documented disability condition which prevents them from using the
bus system; however, they can choose to pay a higher fare through this program to receive curb-
to-curb service.
At the November 8, 2011 Common Council meeting, three alternative fare schemes were
considered for these programs. These, along with the existing fares, are shown in Table 2.
City of Oshkosh—Transportation Department 2
Analysis of Impacts of Proposed Fare Increases/November 17,2011
Table 2: Existing and Proposed Fares
ADA Non-ADA
Cabulance Senior
Dial-A-Ride Basic Premium Dial-A-Ride
Current Fare $ 1.50 $ 1.50 $ 2.50 $ 2.50
Staff Proposal $ 2.00 $ 2.00 $ 3.00 $ 3.00
Board Recommendation $ 2.00 $ 2.00 $ 3.00 $ 3.50
Council Amendment $ 1.75 $ 1.75 $ 2.75 $ 2.75
Contractor Cost $ 8.50 $ 16.25 $ 16.25 $ 8.50
Analysis
There are three groups of customers who could be adversely affected by the fare increases:
• ADA passengers who cannot use the fixed-route system due to their disability condition
(Group A)
• ADA passengers who can use the fixed-route system for some or most of their trips (Group
B)
• Passengers over 60 who do not have a documented disability which prevents them from using
the fixed-route system (Group C)
The last two of these groups (Groups B and C) have other options on the Oshkosh Transit System
for which the cost is not increasing. In fact, if they were to switch to the fixed route system, they
could save money. The first group (Group A) would pay a higher fare of between $0.25 and
$0.50 per trip.
Fiscal Impact
All of these fare increase proposals would have a positive revenue impact on the system in two
ways.
• Increased revenues. The impact of the proposed fare increases on system revenues depends
on how program demand responds to the fare changes. The exact impact is impossible to
predict, and will also depend on many external factors, such as the growth in the number of
individuals eligible for these programs, the state of the economy and gas prices.
• Decreased expenses. The cost of transporting a passenger on a bus that is already in service is
essentially zero; however, there is additional contractor cost, ranging from $8.50 to $16.25
per trip, for every passenger who uses one of OTS's demand-responsive programs. Shifting
individuals from paratransit to the bus system will reduce system expenses.
The draft 2012 budget assumed both sets of impacts (increased revenue and decreased expenses)
based on staff's proposed fare increase. In particular, the line item for Purchased Transportation
(account code 6449), which covers all paratransit programs, was increased by only two percent,
which is well below what would be projected based on ridership trends. If the proposed fare
increase is lessened or eliminated, this would likely result in higher paratransit usage and
expenses.
City of Oshkosh—Transportation Department 3
Analysis of Impacts of Proposed Fare Increases/November 17,2011
Table 3 summarizes the effects of each of the fare change proposals on the draft 2012 budget.
The table includes the effects of increased revenue (due to the fare changes), decreased expenses
(due to shifting of passengers between paratransit and fixed-route) and the total.
Information presented to the Transit Advisory Board and Common Council focused solely on the
revenue-side effects of the fare increases. As can be seen, the status quo (i.e. no fare increase)
would require spending cuts of$48,000 to $53,000, or more than 1 percent of the budget. The
fare increase discussed as an amendment at the November 8 Common Council meeting would
require spending cuts of$21,000 to $26,000. The Board's recommendation would actually allow
for the system to pay for additional system expenses, or could result in a slight reduction to the
local levy support for the system.
As noted earlier, however, there may also be expense effects associated with the proposed fare
increases. Table 3 summarizes the estimated effects on system expenses based on people
switching between paratransit and fixed-route bus as a result of the fare increases. These effects
are estimated to be much greater than the impact on revenues. If those effects are combined, then
keeping the status quo would require spending cuts of up to $137,000. Adopting the amended
fare increase proposal discussed at the November 8 Council meeting would require spending cuts
of up to $65,000. Adopting the Board's recommendation could create the opportunity to increase
spending by up to $18,000, all else being equal.
Spending cuts would be required if the fare increase as proposed was either rejected or was
amended as discussed in the Council meeting. The only way spending cuts of this magnitude can
be accommodated is with service cuts to the fixed route system, such as hours of service,
frequency of service, or number of routes.
Recommendation
I recommend that the Common Council approved the fare increase as proposed by staff, which
would be the same as the resolution considered at last Council meeting with the exception of
increasing the Senior Dial-a-Ride to $3.00 instead of$3.50.
If the Council approves the resolution as drafted, the additional revenue should be reflected in the
2012 budget's Purchased Transportation (6449) line item.
City of Oshkosh—Transportation Department 4
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O1HKO/H
City of Oshkosh - Transportation Department ON THE WATER
926 Dempsey Trail, Oshkosh, WI 54902 (920) 232-5342 (920)232-5343 fax
MEMORANDUM
TO: Mark A. Rohloff, City Manager
FROM: Christopher Strong, P.E., Director of Transportation
DATE: November 2, 2011
SUBJECT: REVISED FARE STRUCTURE
At its October 19, 2011 meeting, the Transit Advisory Board considered proposals to increase
fares on a variety of services provided by the Oshkosh Transit System. The meeting included
public hearings on two separate proposals: one to increase complementary ADA paratransit fares,
and one to increase the senior dial-a-ride fare. The fare increases were considered separately by
the Transit Advisory Board, with the Board recommending fare increase in both programs.
(A) Complementary ADA Paratransit Fares
The Board's recommendation would increase fares as follows:
Current Proposed
Category Fare Fare
Dial-A-Ride (ADA*) $1.50 $2.00
Cabulance (ADA*) $1.50 $2.00
Cabulance (ADA*)with premium service $2.50 $3.00
*-These services are required by the Americans with Disabilities Act to
be offered in complement to our fixed-route service
Transit systems are required to provide complementary Americans with Disabilities Act (ADA)
service within a certain distance of fixed route buses for those who, due to a disability condition,
are unable to use the fixed route bus system. On a cost per ride basis, this service is always more
expensive for the transit provider than fixed-route service. The Federal Transit Administration
allows transit agencies to charge up to double the cash fare for this service to help pay for this
service. Nevertheless,the cost of this customized service is such that the fare covers a smaller
portion of the cost of service than it would for a fixed-route trip'.
I Currently,OTS pays its contractor$16.25 per ride provided on Cabulance,and$8.50 per dial-a-ride trip. OTS
must charge the same basic fare for all ADA riders,regardless of the contractor's rate.
City of Oshkosh—Transportation Department 1
Revised Fare Structure/November 2,2011
Most fares associated with OTS's fixed-route service doubled from mid-2008 to January 2009,
with the exception of the fares being considered in this fare increase. These fare increases were
previously proposed in 2008 during escalating fuel prices and were deferred since fuel prices
started to decline. While fuel prices are close to 2008 levels, this proposal is motivated more by
reductions in aids for operating assistance, particularly at the state level. The aid reduction
requires OTS to explore options for increasing revenue in order to minimize the need to reduce
fixed route service. Increasing these fares would put them at parity with the other fare increases
which occurred in 2008-09.
The estimated revenue impact of this fare increase is $22,000 per year. This reflects the increased
revenue from the higher fare as well as an anticipated reduction in ridership that may result from
the fare increase. With the application of Federal and state funds, this translates to offsetting
$47,000 of system costs, or approximately 1 percent of the budget.
In some cases, ADA-eligible individuals may have the ability to use the fixed route system but
choose to use the complementary paratransit service instead. This fare increase may be an
encouragement for them to use the fixed route system, which could save money for both the
passenger and the transit system.
Public Comment
Transit Department staff had received six telephone calls from users in opposition to this
proposal. The callers were Deb Pahl, Carole, Bob Strachan, Lynn Diemmel, Mary Kay, and
Sheila Isaacson. All callers stated they were on fixed incomes and could not afford this increase.
Transit Department staff had received two telephone calls from people not opposed to the
proposal. The callers were Mary Nevers and June Wiechman. They did not think the proposed
fare increase was out of line and would have no issues with the change.
Transit Advisory Board Discussion and Recommendation
Mr. Strong said his staff had received six telephone calls from users in opposition to
this proposal. The callers were Deb Pahl,Carole,Bob Strachan,Lynn Diemmel,Mary
Kay,and Sheila Isaacson. All callers stated they were on fixed incomes and could not
afford this increase.
Mr. Strong said his staff had received two telephone calls from people not opposed to
the proposal. The callers were Mary Nevers and June Wiechman. They did not think
the proposed fare increase was out of line and would have no issues with the change.
Ms.Hoffman understands the fixed income difficulty but the City itself is in a similar
situation. We cannot continue to provide the same type of service for the same price.
Mr. Olmstead pointed out the proposed$2.00 fare is within the ADA guidelines. To
City of Oshkosh—Transportation Department 2
Revised Fare Structure/November 2,2011
help riders understand the increase,we need to let the riders know that each ride costs
the system $16.25.
Mr. Strong noted that the same increase was proposed in late 2008,but was deferred at
that time.
Mr. Poeschl questioned if we were asking to raise the fares all across the board. The
logic to raise fares to cover our costs, needs to be put across the board as a revenue
creating idea for the whole system, not just one area. In this respect this is
disproportionate.
Mr. Olmstead said that in reality we held back in 2008.
Mr.Poeschl said this doesn't make the population that uses this service feel any better.
He would feel more comfortable if we would raise all the fares. There is just as much
financial turmoil now as there was a few years ago.
Mrs. Lewis pointed out that this is a more costly service.
Mr. Olmstead said if we raise bus fares,than the ADA fare would be higher than the
fare proposed.
Mr. Poeschl understands we are losing money but his perspective comes from the
users.
Mr. Olmstead said we need to look at the world's economy and he feels it's going to
get worse. His concern is the federal government could come back and cut transit
funding substantially.
Ms.Hoffman was curious what the number is of ADA riders that have the opportunity
to use the bus. Mr.Olmstead said weather and other conditions affect disabled riders'
ability of when they can use a bus.
Mr. Poeschl noted that Mr. Strong stated at the budget hearing, he wanted to push
travel training. It is our intention and ultimate goal to get more people to use more
affordable transportation.
In response to a question, Mr. Strong said the proposed budget was based on fare
increases.
Mr. Olmstead asked what would happen if we don't increase the fare. Mr. Strong
replied it would be a Council decision how to resolve the loss in revenues.
Mr. Poeschl asked what the proposed increase in revenues would be with this
proposed fare increase. Mr. Strong replied that it would be about $22,000. Mr.
City of Oshkosh—Transportation Department 3
Revised Fare Structure/November 2,2011
Poeschl was not opposed to raising the fare but would prefer a lesser increase. Mr.
Poeschl proposed a$0.25 increase.
Mr. Olmstead liked Mr. Poeschl's suggestion.
With a lower fare increase, Mrs. Lewis felt in a short period of time we will have to
raise the fare again. She felt we should raise the fare $0.50 now and be done with it.
Mrs. Hoffman said her understanding of the Board's role is to show that a body of
citizens have considered this proposal and are suggesting that this ought to happen or
not. She added that the Board recognizes that the Council can lower it or raise it. She
suggested that the motion should be advanced just as Mr. Strong had suggested.
Mr. Olmstead said the proposed fare increase would actually be a$1.00 increase,since
most trips are typically round trips.
Mr. Poeschl asked if there a timeline for a total system increase. Mr. Strong replied,
"No." He noted that the last time we hit the ridership pretty hard with a doubling of
fares within nine months, and ridership has not yet recovered.
Mr. Poeschl understands we are doing this because we are in a budget crunch.
Mr. Norton moved to raise the fare by $.50, Mr. Monday seconded the motion.
Motion carried(4-3 Olmstead, Lowe, Poeschl).
(B) Senior Dial-a-Ride Fare
The Board's recommendation would increase the following fare:
Current Proposed
Paratransit Program Fare Fare
Dial-A-Ride (non-ADA) $2.50 $3.50
The City has historically provided dial-a-ride service for seniors (age 60 or over) for curb-to-curb
trips within the City. This service is not required by the Americans with Disabilities Act, but is
rather a supplemental service made possible almost entirely by state elderly and disabled
transportation funding provided to counties, which we leverage with mass transportation aids.
This is a higher fare than trips taken by seniors on our normal bus system, for which the cash fare
is $0.50. This higher fare reflects the premium quality of service. The proposed fare increase
would affect those trips taken during the bus system's normal operating hours; trips after hours
are already subject to a premium fare.
Unlike the service considered in the previous agenda item, there is no requirement for a transit
system to offer this type of service. The funding pressures on the fixed route system make it
City of Oshkosh—Transportation Department 4
Revised Fare Structure/November 2,2011
critical to examine the cost recovery of additional mobility services, like this one, to ensure that
they do not affect the long-term viability of the transit system. Table 1 shows the percentage of
the trip cost which is recovered through farebox revenue2. The transit system budget for 2012
assumes that 53 percent of the contractor's trip cost is being covered through Federal and State
grants. Therefore, 47 percent must be recovered through farebox revenues or other sources,
usually a combination of municipal and/or County aid. As can be seen, the senior dial-a-ride
service is one of two programs for which less than 30 percent of the cost of service is recovered
through the passenger fare.
Table 1: Fares for Additional Mobility Services
Fare Classification Jan 2008 Jan 2011 Contractor Fare as %
Fare Fare Cost of Cost
Senior Dial-a-Ride $1.75 $2.50 $8.50 29%
Access to Jobs $3.00 $3.00 $8.50 35%
After-Hours Cabulance $4.00 $5.00 $16.25 31%
After-Hours Dial-a-Ride $4.00 $5.00 $8.50 59%
Rural Over 60 or Rural Disabled $5.00 $6.00 $31.00 39 0/0*
(with participating township)
Rural Over 60 or Rural Disabled $10.00 $12.00 $31.00 390/o
(without participating township)
ADVOCAP/Meal Site Transportation $1.00 $1.00 $8.50 12%
*-Township contributes same amount as passenger, so OTS revenue is unchanged.
The estimated revenue impact of this fare increase is $9,000 per year. This reflects the increased
revenue from the higher fare as well as an anticipated reduction in ridership that may result from
the fare increase. With the application of Federal and state funds, this translates to offsetting
approximately $19,000 in system costs. Since these individuals do not have ADA eligibility, they
should be able to use the bus system. This fare increase may encourage them to do so, saving
money for both the passenger and the transit system.
Public Comment
No public comments were received.
Transit Advisory Board Discussion and Recommendation
Mr. Olmstead asked how the dial-a-ride senior age of 60 years was determined. Mr.
Strong said it was tied in with the county requirements. Mr. Olmstead felt many
seniors, 60 years of age, are still working and we are offering them reduced fares.
2 This is less than the actual cost recovery,because additional administrative costs are associated with these trips,
beyond the rate charged by the contractor.
City of Oshkosh—Transportation Department 5
Revised Fare Structure/November 2,2011
Mr. Strong said there is no FTA requirement we have to offer this service or what
fares we charge.
Mr. Olmstead said we could raise this fare to $4.00 and it would still be reasonable
compared to the regular cab fare.
Mr.Norton said if this were an income-based program,he would feel better about this
reduced fare.
Mrs. Lewis would rather have a 90 year old person take a cab than drive a car.
Mr.Norton questioned if we raised this fare higher and lowered the ADA fare,would
this be a wash.
Mr. Olmstead questioned why the fare could not be bumped up to$3.50. It would still
be a bargain.
Mr. Olmstead moved to raise the fare to $3.50, Mr. Norton seconded the motion.
Motion carried(7-0).
Staff recommended a lower fare increase (to $3.00)than was recommended by the Board. If the
lower fare increase were adopted, this would result in a positive revenue impact of$5,000 per
year, offsetting approximately$10,000 in system costs.
City of Oshkosh—Transportation Department 6