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#10 Introduce Ordinance to Increase Bus Fares (File Ord. #2009-443) JANESVILLE TRANSIT SYSTEM MEMORANDUM October 30, 2009 TO: City Council FROM: Transit Director SUBJECT: Introduce and Schedule a Public Hearing on a proposed Ordinance Increasing Bus Fares on the Janesville Transit System (File Ordinance 2009-443). Executive Summary: As part of the 2010 budget for the Transit System, the Administration proposes to enact a general fare increase on all transit system routes and services for the coming year. This fare increase is estimated to raise $25,619 in additional revenue, reducing the need for assistance from the City’s General Fund for Transit operations, and the tax levy, by a like amount. The proposed fare increase would go into effect on January 1, 2010, and would raise the basic cash fare on JTS routes inside the City from the present $1.25 to $1.50. Federally-required half-fares for persons with disabilities and those over 65 years of age would increase from $.60 to $.75 per ride, as would the fares for the special token programs sponsored by the City for youth and agencies serving disadvantaged citizens. Fares for the various passes and token packs offered by the Transit System, as well as those charged for the Paratransit service required by the Americans with Disabilities Act and the “Beloit-Janesville Express” would all rise proportionally. Chapter 10.76 of the Code of General Ordinances establishes bus fares, thus requiring Council action for changes. Ordinance 2009-443 has been prepared for Council consideration to enact this necessary fare increase, effective on January 1, 2010. The public hearing for the Ordinance will also fulfill the requirements of Section 5307 of the Federal Transit Act, which requires a public hearing on all fare increases. Recommendation: The Transit System recommends that the City Council schedule a public hearing on Ordinance 2009 – 443, increasing the fares on the Janesville Transit System effective as of January 1, 2010, for Monday, November 23, 2009. City Manager Recommendation: Based on the proposed budget and anticipated approved budget, the City Manager rd recommends that the City Council set a public hearing on November 23 to increase the rates accordingly. Background: The City Council originally included a transit fare increase, effective on July 1, 2009, as part of the 2009 Transit System budget. On March 9, 2009, the Council directed the Administration to delay the proposed fare increase scheduled for July 1, 2009 1 indefinitely; with any increase to be reconsidered as part of the review of the proposed 2010 Transit System budget. In addition, on May, 11, 2009, the Council passed Ordinance 2009-433, which established a reduced-fare token program for private non- profit agencies, effective on June 1, 2009. Since its inception, three private non-profit agencies, the House of Mercy, ECHO, and the Salvation Army have joined that program, with a total of 1,500 reduced fare tokens purchased and in circulation. Analysis: As directed by the Council, the Administration reviewed the proposed 2009 fare increase as part of its preparation of the proposed 2010 Transit System budget. Based on that review, if the current fare rates are maintained, the projected share of Transit System expenses covered by fares in 2010 is estimated to be 11.8%. This would represent a decrease of 2% compared to the original 13.8% of expenses covered by fares estimated for the 2009 budget, and 1% lower than the 12.75% average rate of return from fares as a proportion of expenses over the past 5 years. In order to ensure that the rate of return from passenger fares maintains the 5 year average, the fare increase is necessary. This fare increase is estimated to raise $25,619 in additional revenue, covering about 12.7% of 2010 expenses and reducing the need for assistance from the City’s General Fund for Transit operations, and the tax levy, by a like amount. For the Council’s information, an increase in the base fare to $1.50 would put Janesville in the middle of the range of bus fares charged by our peer group with 4 other cities; Eau Claire, Green Bay, Manitowoc and Racine. Fares in the peer group range from a low of $1.00 in Oshkosh to a high of $2.00 in Waukesha. In accordance with established practice, the Transit System will allow a one month “grace period”, between January 2 and January 31, 2010 for those citizens who may have purchased tokens and passes at the 2009 rates to use up those fares without having to pay an additional charge. Experience has shown that this allows sufficient time for the transition to the new fares to happen without undue hardship on either the citizens or the Transit System. As of February 1, 2010, only passes and tokens purchased in 2010 will be accepted. The Transit Director will be present at the Council meeting to answer any questions on this proposal that the Council may have. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administration Jennifer Petruzzello, Director of Neighborhood Services 2 ORDINANCE NO. 2009-443 An ordinance revising the regular bus fare rates for the Janesville Transit System, with a penalty for violations 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 of the Code of General Ordinances of the City of Janesville is hereby amended 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: A. $0.75 per ride or 10 rides for $7.50 when the 10 rides are purchased as a package of 10 prepaid tokens for senior citizens, defined as persons who are 65 years of age or older, Federal Medicare Card holders, and persons with disabilities when such individuals follow the procedures required by the Transit Director. When such procedures have not been followed, the charge shall be $1.50 per ride per passenger. B. No charge for a child under five years old when accompanied by a fare-paying passenger to a maximum of 2 children per fare-paying passenger. Organized groups of children under 5 years old must pay the regular fare. C. $1.50 per ride, or 10 rides for $12.00when the rides are purchased as a package of 10 pre-paid tokens for all other passengers. D. No charge for any transfer from one Transit System bus to another. E. $0.40 per passenger for travel in any fare zone beyond the basic service area. The basic service area is considered to be that area within the corporate limits of the city. F. $3.50 for a pass allowing an unlimited number of rides on any bus route between the hours of 8:45 a.m. and 6:15 p.m. on any service day within the basic service area. Except that persons who qualify for reduced fares as outlined in subsection A of this section, are entitled to purchase the pass for one half the regular price. (Ord. 84-405 §1, 1984: Ord. 83-344 §1m 1983; Ord. 81-272 §1, 1981: Ord. 80-218 §1 (part), 1981). G. $45.00 per month for a pass allowing unlimited bus rides on and between the dates shown on the pass on any Transit System route within the basic service area. H. $3.00 per ride or 10 rides for $27.00 when the 10 rides are purchased as a pass for travel on the Beloit-Janesville Express route to the terminal of the Beloit Transit System in Beloit, Wisconsin, but not including transfer privileges to Beloit Transit System city routes; except that persons who qualify for reduced fares as outlined in subsection A of this section are entitled to ride for one half of the regular price. ORDINANCE 2009-443 Page 2 I. $1.90 per ride or 10 rides for $17.00 when the 10 rides are purchased as a pass for travel on the Beloit-Janesville Express route to Blackhawk Technical College. J. $3.00 per ride for Paratransit service for those disabled individuals qualifying for this service under the provisions of the Americans With Disabilities Act (ADA) and the procedures required by the Transit Director. This fare shall also apply to any person traveling as a companion, as defined by the ADA, with the disabled passenger. Personal Care Attendants as defined by the ADA, and certified as required to accompany the disabled person in question, will not be charged a fare as required by the ADA. K. $0.75 per ride for youth beginning with age 11, through and including age 15, using a special token issued by the City and distributed through participating community organizations. Youth of this age group not using tokens specified by this section shall pay the regular fare shown in Paragraph C of this section.” L. $.75 per ride based on a bulk purchase charge of $75.00 for 100 tokens, when tokens are purchased by a private non-profit agency for distribution to its clients; and the agency follows certain certification procedures established by the Transit Director 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. SECTION II. The above fare rates shall take effect on January 1, 2010, 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 Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney, Wald Klimczyk Proposed by: David J. Mumma, Transit Director Prepared by: David J. Mumma, Transit Director \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\11-9-2009\Bus Fare Increase - Ord 2009-443.doc