#3 Public hearing and action to expand special fare tokens to public agency purchases (File Ord. #2010-460)
JANESVILLE TRANSIT SYSTEM MEMORANDUM
August 27, 2010
TO: City Council
FROM: Transit Director
Public Hearing and Action on a Proposed Ordinance Allowing
SUBJECT:
Purchase of Special Fare Bus Tokens by Certain Public Agencies –
(Ordinance 2010- 460).
Executive Summary:
On May 11, 2009, the City Council passed Ordinance 2009-433, establishing a program
that allows certain private non-profit agencies in the community to purchase Janesville
Transit System bus tokens at a discount for redistribution to low income citizens. The
general parameters of the program are as follows:
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.
Once the reduced fare program was established, it became apparent that the need for
low fare transportation existed beyond the programs administered by these private non-
profit agencies; and specifically with certain students in the Janesville Public Schools.
Both the School District of Janesville and certain ad-hoc charitable organizations within
the schools have been attempting to address these needs. The Transit System worked
closely with the Transportation Director for the School District to determine if these
needs could be covered by existing programs already being funded by the School
District. As a result, it became apparent that a substantial number of disadvantaged
families in the community were struggling with both the availability and cost of home to
school transportation. Because some of the District’s programs are based on the
distance a student lives from the school attended, many of these families are not eligible
for other transportation programs supported by the District.
The result of these discussions was a meeting between the City Manager, Director of
Neighborhood Services, Transit Director and School District officials in June, 2010. As
a result of the meeting, in late July, the School District requested that the City extend
the reduced fare token program to disadvantaged students who did not qualify for other
forms of transportation assistance from the School District for transportation to and from
school. The Administration believes that it is in the broad best interest of the community
to grant this request.
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Since bus fares and fare policies on the Janesville Transit System are set by City
Ordinance, Ordinance 2010-460 has been prepared for Council review and adoption to
extend the reduced fare program to include clients/students of certain public agencies,
including the School District of Janesville; and to modify the program policy statement
which describes the program parameters for participating agencies to include these
public agencies.
Recommendation:
The Transit System recommends that following the public hearing on September 13,
2010, the Council approve Ordinance 2010-460, extending the Reduced Price Purchase
of Bus Tokens to certain public agencies, including the School District of Janesville.
City Manager Recommendation:
The City Manager recommends this amendment. I believe this meets the initial
objective of the City Council when the program was established.
Suggested Motion:
I move the adoption of Ordinance 2010-460, an ordinanceproviding for special
Janesville Transit System bus fare rate bulk purchase discounts for non-profit
organizations and certain public agencies, with a penalty for violations thereof as set
forth in JGO 10.76.030.
Request:
This request for extension of the reduced fare token program to the School District was
requested by District officials Marge Hallenbeck and Steve Eichman in a meeting with
the City Manager and other members of the Administration on June 17, 2010. The City
Manager agreed in principle to extend this program to the School District, subject to
Council approval of the ordinance change.
Analysis:
Initial Program Results:
Since the passage of the Ordinance, three private non-profit
agencies; ECHO, the Salvation Army, and the House of Mercy, have signed-on as
participants in the program. Since implementation, a total of 3,500 reduced fare tokens
have been purchased by these agencies, with 2,372 of these tokens being presented
for fare through June 30, 2010.
Compatibility with Program Goals:
The original intent of establishing a reduced fare
token program was to increase the availability of transportation to disadvantaged
citizens, increase ridership on the Transit System, and protect the City’s revenue stream
from bus fares. As fielded, the program established several parameters for those
citizens receiving the reduced fare tokens through the agencies. These included:
1. 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
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the United States Department of Housing and Urban Development as of March 1 of
each year.
2. Trip Purpose:
Usage of reduced-fare tokens shall be restricted to the following trip
purposes:
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Access to employment (jobs, job interviews or job training.)
?
Access to health care (medical, dental, vision and mental health care.)
?
Education (elementary, secondary, post-secondary)
?
Access to support programs for children and/or families.
In our discussions with the School District, it is their belief that the families and students
needing access to reduced fare tokens would meet the parameters for the program,
which include education at the elementary and secondary levels as a permissible trip
purpose; and that they have the capability through school social workers, counselors
and other professionals to ensure that those students to whom the tokens are issued
meet the program’s income guidelines.
Limitations on Reduced Fare Tokens Issued:
In establishing the reduced fare token
program, the Council placed a limit of 5,000 tokens to be distributed annually under the
program to protect the City’s revenue stream from passenger fares. In the first 12
months of the program’s existence, (June, 2009 through May 2010) 3,500 tokens were
distributed to the three participating private non-profit agencies in the program, leaving a
theoretical “headroom” of 1,500 tokens able to be distributed before reaching the 5,000
token limit. Since January 1, 2010, 2,000 tokens have been distributed, leaving
“headroom” of 3,000 tokens for distribution to all agencies for the remainder of this
calendar year. For 2010 to date, 1,934 rides have been taken using reduced fare
tokens. While we do not have an accurate count of the number of students who might
use this program between now and the end of this year, it appears that there is
sufficient flexibility in the system to accommodate the School District’s request, plus
riders from the existing agencies, without exceeding the 5,000 token limit.
Expansion of Program Coverage:
By expanding the coverage of the reduced fare
token program to include the School District; we will be establishing a precedent of
allowing a public agency to participate in this program. The Transit System has
established business relationships with a number of public agencies at the local, county
and state levels, and allowing one public agency (the School District) to participate in
the program may cause us to have to allow other public agencies whose trip purposes
fall within the program parameters to likewise be admitted to the program. This will
likely cause us to exceed the 5,000 annual limit on tokens distributed and is a potential
disadvantage of granting the School Districts request.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administration
Jennifer Petruzzello, Director of Neighborhood Services
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ORDINANCE NO. 2010-460
An ordinance providing for special Janesville Transit System bus fare rate bulk purchase discounts for
non-profit organizations and certain public agencies, with a penalty for violations thereof 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.
$.75 per ride based on a bulk purchase charge of $75.00 for 100 tokens, when tokens are
purchased by a private non-profitor eligible publicagency 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 in subparagraph L. shall take effect on September 20, 2010, and
shall remain in effect until modified as provided in Section 10.76.010.
ADOPTED:
APPROVED:
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
Shared/Ordinance 2010-460 (Expand Special Fare Tokens to Public Agency Purchases)(2).doc