#8 Introduce ordinance amending transit bus fare rates (File Ord. #2009-433)JANESVILLE TRANSIT SYSTEM MEMORANDUM
April 16, 2009
TO: City Council
FROM: Transit Director
Proposal for Reduced Price Purchase of Bus Tokens by Private Non-
SUBJECT:
Profit Agencies – (Ordinance 2009-433).
Executive Summary:
On March 9, 2009, the City Council directed the Administration to delay the
implementation of a proposed increase in transit fares and develop a program that
would allow certain private non-profit agencies in the community to purchase Janesville
Transit System bus tokens at a discount for redistribution to low income citizens. While
the Council’s direction was general in nature, the following program parameters were
established:
1.
The total number of tokens available for sale at the reduced rate would not exceed
5,000 on an annual basis; or as adjusted by the City as part of the annual budget
process.
2.
The cost, on a per token basis, would be not less than one half of the prevailing cash
fare, or the amount established by the Transit System for those customers qualifying
for transportation at “half fare”.
3.
Agencies purchasing tokens at the reduced rate would enter into an agreement with
the Transit System to purchase a minimum amount of tokens at full price during a
calendar year, which would allow them to qualify for the reduced rate program.
Bus fares on the Janesville Transit System are set by City Ordinance. Ordinance 2009-
433 has been prepared for Council review and adoption to institute this reduced fare
program; with an accompanying policy statement which describes the program
parameters for participating agencies.
Recommendation:
The Transit System recommends that after discussion, the Council adopt Ordinance
2009 – 433, establishing the Reduced Price Purchase of Bus Tokens by Private Non-
Profit Agencies, to be effective as of June 1, 2009.
Suggested Motion:
I move the adoption of Ordinance 2009-433, an ordinance revising the regular bus fare
rates for the Janesville Transit System.
City Manager Recommendation:
The City Manager supports Neighborhood Services and Transit’s proposed pilot
program of distributing up to 5000 tokens to not-for-profits for 50% of cost as outlined in
the attached Program description.
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Request:
The review of the Transit Fare increase and consideration for a discounted fare program
was requested by then Council President Loasching and City residents Tim Cullen and
Larry Barton. The concept of their proposal was to “provide a reduced City of Janesville
bus token purchase price to charitable organizations, thereby making public
transportation more affordable for the needy, with increased bus usage and revenue for
the city”. They suggested that recognized charitable organizations be given the right to
purchase bus tokens in bulk for the reduced price of $175 for units of 500 tokens, or a
cost of $0.35 per ride. The current price of these tokens would be $1.00 each or
$500.00. The proposal amounted to a 65% fare reduction. Charitable organizations
receiving reduced cost tokens could be required to commit to purchase a certain dollar
amount or quantity of tokens each year or portion of the year to assure the City of a
base amount of revenue from this program
.
Analysis:
Staff considered 2 primary options to address the concerns of affordable transportation.
1. Repeal the July 2009 planned fare increase.At its March 9 meeting, the Council
directed the Administration to delay the proposed fare increase scheduled for July 1,
2009 indefinitely; with any increase to be reconsidered as part of the review of the
proposed 2010 Transit System budget.
2. Implement a pilot program whereby a limited number of tokens (i.e. 5,000)
would be available for non-profit organizations at a reduced cost. Also at the
th
March 9 meeting, the Council directed the Administration to develop a program to
sell reduced fare bus tokens in bulk purchases to non-profit charitable organizations,
subject to certain parameters. This decision carries with it certain advantages and
disadvantages:
The advantages of this option include:
a. Providing additional tokens to low income individuals which will increase their
mobility to access jobs, job training and services in the community;
b. Reduced cost tokens may provide some financial relief to non-profit
organizations who are struggling with shrinking budgets and increasing
demands; and have to choose among giving rent assistance, food assistance
and transportation with limited budgets; and
c. The tokens provided under this program may be targeted to address specific
needs (i.e. employment, education, health care).
The disadvantages of this option include:
a. The program would be accessed by a limited number of participating
agencies rather than being spread across all low-moderate income riders.
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b. The number of non-profit agencies anticipated to request the tokens and the
amount of their request may significantly exceed the tokens available, leading
to demands for program expansion;
c. Current Transit customers who are managing to pay the regular fare may shift
from paying those fares to discounted fares through the non-profits, resulting
in a net loss of revenue and an increase in cost to the General Fund, which
ultimately must make –up the difference;
d. A new program would be created, which would add an additional
administrative responsibility to already stretched staff.
In response to the Council’s direction, staff created a program allowing the sales of bus
tokens at reduced rates to private non-profit agencies, subject to certain procedural
requirements. These are outlined in the attached policy. This policy is intended to
achieve the Council’s direction of increasing the availability of transportation services for
specified purposes to those citizens most in need and least likely to be able to pay the
regular bus fare; and to enable non-profit agencies to stretch their budgets for
transportation services by allowing them to purchase JTS tokens at reduced rates for
distribution to their clients. As proposed, the program also minimizes the City’s
exposure to revenue loss from offering the discount by requiring agencies to purchase a
minimum number of tokens at the regular rate before qualifying to purchase the reduced
rate tokens; ensuring a “maintenance of effort” on the agencies part at the current rates
while allowing them to assist additional citizens through the purchase of reduced fare
tokens.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services/Assistant City Manager
Jennifer Petruzzello, Director of Neighborhood Services
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JANESVILLE TRANSIT SYSTEM
Agency Token Sales Policy
1. Background:
At its meeting on March 9, 2009, the Janesville City Council
directed the Administration to develop a program that would allow certain public
and private non-profit agencies in the community to purchase Janesville Transit
System bus tokens at a discount for redistribution to low income citizens. While
the Council’s direction was general in nature, the following program parameters
were established:
a.
The total number of tokens available for sale at the reduced rate would not
exceed 5,000 on an annual basis; or as adjusted by the City as part of the
annual budget process.
b.
The cost, on a per token basis, would be not less than one half of the
prevailing cash fare, or the amount established by the Transit System for
those customers qualifying for transportation at “half fare”.
c.
Agencies purchasing tokens at the reduced rate would enter into an
agreement with the Transit System agreeing to purchase a minimum
amount of tokens at that rate during a calendar year.
2. Structure of Proposed Program:
Given the general direction of the City
Council and an understanding of the intent of the program, the following policies
and operational procedures are recommended to implement the reduced fare
Agency Token Sales program.
a. Eligible Agencies:
Agencies participating in this program shall be limited to
charitable non-profit non-stock agencies or charitable non-profit non-stock
organizationsoperating under Section 501c(3), and other sections as may
apply, of the Internal Revenue Service Code; for distribution to their clients;
and the agency and/or organization fully satisfies and complies with certain
certification procedures established and amended, from time to time, by the
Transit Director and/or her/his authorized representative(s), as a condition of
eligibility to purchase said tokens at a discount. Eligible agencies shall be
those whose programs include access to employment, (jobs, job training, job
interviews), access to health care (medical, dental, eye care and mental
health care), education (elementary, secondary and post-secondary), and
access to support programs for children and families.
b. Eligible Participants to Receive Reduced Fare Tokens:
To ensure that
reduced-fare tokens are directed to the most crucial trip purposes of those
citizens most in need, the following parameters for eligible recipients and trip
purposes are established:
?
Economic Hardship:
Recipients shall be those citizens whose
individual or family income is less than the federally-recognized “Very
Low Income” level (defined as 50% or less of the median income for
Rock County, Wisconsin) as established by the United States
Department of Housing and Urban Development as of March 1 of each
year.
?
Trip Purpose:
Usage of reduced-fare tokens shall be restricted to the
following trip purposes:
Access to employment (jobs, job interviews or job
o
training.)
Access to health care (medical, dental, vision and mental
o
health care.)
Education (elementary, secondary, post-secondary)
o
Access to support programs for children and/or families.
o
c. Agency Responsibilities:
?
It shall be the responsibility of the agency issuing the tokens to
determine if the client to whom the tokens are issued meets the
parameters of the program.
?
Participating agencies must maintain records to verify eligibility and
use of the tokens. Said records will be provided to the Janesville
Transit System upon request.
?
Should the Transit System detect what appears to be a violation of
the program parameters, the agency shall be notified for the
purpose of investigating the situation and taking corrective action.
d. Token Purchase Agreement:
Agencies participating in the program shall
agree to the following minimum token purchasepolicy:
?
A minimum of 500 tokens shall be purchased at the regular rate as
established in Chapter 10.76.020 (C) of the Code of General
Ordinances of the City of Janesville (JGO) in a one (1) calendar year
period, measured from the date that the agency enters into a contract
with the Transit System.
?
For each 500 tokens purchased at the regular rate, the agency shall
receive warrants to purchase 500 tokens at the reduced rate as
established by JGO Chapter 10.76.20 (L).
?
Agencies shall purchase tokens from the Transit System in minimum
lots of 100 tokens. Agencies shall notify the Transit System not less
than 24 hours prior to the desired time to pick up the tokens, which will
be issued bagged in 100 token lots.
3. Establishment of Program:
This program and the rate of fare associated with it
is established by Ordinance 2009-433, adopted by the Janesville City Council on
May 11, 2009.
ORDINANCE NO. 2009-433
An ordinance revising the regular bus fare rates for the Janesville Transit System, with a
penalty as set forth in JGO 10.76.030.
THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS:
SECTION I. Section 10.76.020 L. of the Code of General Ordinances of the City of Janesville is
hereby created to read as follows:
10.76.020 Bus fares—Regular fare rates.
“ The regular fare rates that shall be
charged by the Janesville Transit System are as follows:
L.
$.60 per ride based on a bulk purchase charge of $60.00 for 100 tokens, when tokens are
purchased by a charitable non-profit non-stock agency or charitable non-profit non-stock
organization for distribution to its clients; and the agency and/or organization fully satisfies and
complies with certain certification procedures established and amended, from time to time, by
the Transit Director and/or her/his authorized representative(s), as a condition of eligibility to
purchase said tokens at a discount. When these procedures are not followed, the charge for token
purchases shall be as outlined in Sub C., above. This special fare rate shall take effect on June 1,
2009, and shall remain in effect until modified as provided in Section 10.76.010.”
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Perrotto
Truman
Eric J. Levitt, City Manager
Voskuil
Brunner
ATTEST:
McDonald
Rashkin
Steeber
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Former Council President Loasching
Prepared by: David J. Mumma, Transit Director