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#1 Update on Janesville-Milton-Whitewater Commuter Bus Service JANESVILLE TRANSIT SYSTEM MEMORANDUM March 21, 2012 TO: City Council FROM: Transit Director Update on Janesville-Milton-Whitewater Commuter Bus Service; SUBJECT: Potential Start of Service in Second Quarter of 2012. Summary of Previous Activities: In the spring of 2008, meetings were held among municipal officials in northern Rock and northwest Walworth Counties to explore the need and interest in improving public transportation services in the region. As a result, a grant application was submitted to the Wisconsin Department of Transportation (WisDOT) and a grant was awarded later that year to study the need for a commuter bus service in the corridor from Janesville through Milton to Whitewater; as well as local shared ride taxi service within the City of Milton and improvements to the existing shared-ride service in the City of Whitewater. The study took place during 2009 and 2010, and reports on the findings of the study and proposals for public transit services in the region resulting from those findings were made to stakeholders and decision-makers in the region; including the Whitewater, Milton and Janesville City Councils, the Chancellor of the University of Wisconsin- Whitewater and his management team, and the UW-Whitewater Student Senate. All three City Councils supported the study and its findings. However, the UW-Whitewater Student Senate, which must approve the use of Segregated University Fees contributed by the student body for various services, voted-down a proposal for a $5.00 per semester fee to support the bus service in the spring of 2010. The three cities were not in a position to fund the service, and other possible contributors were not identified at that time, so the proposal became dormant. In May, 2010, the Council passed a motion authorizing City staff to continue discussions and negotiations with the University, the other cities and other interested or affected parties which could lead to a proposal to start some type of service in the future. When and if such a consensus was reached, the Administration would return to the Council with a further report and seek Council’s authorization for the City’s participation in providing the service and contractual authority to enter into an operating agreement with one or more sponsors. Now, as the result of discussions over the last several months with the City of Whitewater and a major private sector employer in that community, the Administration believes that it is appropriate to return as promised to update the Council on our progress toward finally establishing this service. Update and Discussion of Current Situation: In the fall of 2011, Generac Power Systems, Inc. the largest private employer in the city of Whitewater, announced a major 1 expansion of its operations, including plans to hire about 500 additional employees. In response to this news, the transit system contacted the City of Whitewater to explore the possibility of approaching Generac about any interest that it might have in commuter service to connect it with the Janesville and Rock County local labor market. As a result, a meeting was held with Generac officials and the Whitewater City Manager on December 14, 2011 to gauge their interest and present very general proposals of what a service for their employees might look-like and cost. The Janesville Area MPO prepared a survey at Generac’s request that the company could distribute to its current employees to gauge interest in potential commuter service to Janesville and Rock County. Results of this informal survey were positive enough that Generac management indicated that they wished to give the idea of commuter service more thought and asked for some time to consider their options, including how they might finance their share of the operating cost. In early February, 2012, discussions continued with Generac officials about further interest that they might have in commuter service. This discussion reaffirmed Generac’s interest in such a service, pending their ability to arrange financing. Information was exchanged with Generac on potential service details and budgetary estimates to assist their decision making. Most recently, the Whitewater City Manager th arranged a meeting on March 15 for a further discussion of the proposed commuter service with Generac officials and other potentially interested businesses. At this meeting, Generac officials committed to providing the local share for the service and strongly indicated their desire that it begin as soon as possible. They plan to participate in the April 18 Job Fair at the Rock County Job Center and are hopeful to be able to tell prospective employees at that event that the service will be available. At that meeting, we discussed an April 30, 2012 start date for the service, pending Council approval, and assuming that all arrangements can be made by that date. There will be another meeting in Whitewater on Thursday, March 22 at which time we plan to finalize arrangements, pending Council approval and authorization to enter into a contract with Generac and any other sponsors to provide the service. That authorization is contained in Resolution 2012-899, which will be presented to the Council at its meeting on April 9, 2012, along with Resolution 2012-900 amending the 2012 Transit System budget to account for the revenues and expenditures associated with the new service. Description of Proposed Service:  Service under the proposed contract will commence on April 30, 2012 and operate through December 31, 2012.  Service will be timed and operated to coincide with Generac’s three work shifts which begin at 6:00 AM, 2:00 PM and 10:00 PM. stndrd  The 1 and 2 shifts work Monday-Friday; the 3 Shift works Sunday-Thursday.  Service will be provided on 170 weekdays with three trips per weekday, and 36 rd Sundays with one evening trip per Sunday for the 3 Shift.  In accordance with Federal Transit Administration regulations, the service will be open at all times to the general public as well as Generac employees, so we anticipate that employees of other businesses in Whitewater as well as University staff and students who’s travel plans can be adapted to the schedule may also 2 use the service.  Generac understands and accepts the fact that others may ride the service and also that the fares paid by these persons contribute to the overall revenue for the service and reduce the company’s liability for the sponsor’s share of the service cost.  Additional service above and beyond that required by Generac would depend on additional funding partners joining a sponsoring consortium to underwrite the sponsors share of that additional service. Budgetary Impact: The following estimated expenses will be incurred and revenues received for the operation of the service for the balance of 2012. Expenses are based on a fully burdened rate of $94.00 per hour, including wages, direct operating costs and all overhead.  Estimated Operating Cost: (4/30 – 12/31/12): $128,310  Anticipated Revenues to Offset Operating Cost State and Federal Assistance: 53% $ 68,005 o Farebox Revenue: 15% $ 19,247 o Sponsors Share: 32% $ 41,058 o th Following the presentation on March 26, MPO Coordinator Terry Nolan and I will be available to answer any questions that Councilmembers may have on the report or the proposed service. City Manager Recommendation: I am supportive of this expansion if the budget can be supported through Federal and State assistance and other non-property tax revenues. One goal the Council has had is to increase job opportunities for citizens and this provides a regional employment opportunity for Janesville citizens. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administration/Assistant City Manager Jennifer Petruzzello, Director of Neighborhood Services 3 Janesville-Milton-Whitewater Route Janesville View Milton View Whitewater View