#2 Authorize bus service contract with Generac Power Systems and City of Whitewater (File Res. #2012-899) AND #3 Approve revision to 2012 Transit System Budget (File Res. #2012-900)JANESVILLE TRANSIT SYSTEM MEMORANDUM
March 29, 2012
TO: City Council
FROM: Transit Director
Action on Proposed Resolutions 2012-899 – Authorizing a
SUBJECT:
Contract with Generac Power Systems, Inc. and the City of
Whitewater to Provide Bus Service between the Cities of
Janesville, Milton and Whitewater; and 2012-900- Approving a
Revision to the 2012 Transit System Budget.
Executive Summary:
The City has reached tentative agreement with the City of
Whitewater and Generac Power Systems, Inc. to provide commuter bus service
between Janesville and the cities of Milton and Whitewater; with the object of
providing accessibility for Janesville and area citizens to jobs at Generac and
other employers in Whitewater as well as general public transportation within the
region.
Generac is in the process of hiring approximately 500 additional employees to
meet expanded demand for its products, and is seeking to recruit a substantial
number of those additional workers from the Janesville and Rock County area.
Previous surveys as well as experience by Generac and other employers in
Whitewater indicate that reliable transportation, or lack thereof, is a major
impediment to those businesses attracting and retaining employees from
Janesville and Rock County. As a result, Generac and the City of Whitewater
have agreed to assist in funding the proposed commuter service to provide
access to the important labor market which exists in Janesville and Rock County,
and to ensure that those employees have a reliable and sustainable means of
getting to their jobs.
The Council was briefed on the history and particulars of the Janesville-Milton-
Whitewater commuter service proposal at its meeting on March 26, 2012. A
copy of the memo summarizing that information is attached, rather than
repeating it here.
City ManagerRecommendation:
I am supportive of this expansion provided 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.
Resolution 2012-899 - A Resolution Authorizing the City Manager to Enter
into a Contract with Generac Power Systems, Inc. and the City of
Whitewater, WI, to Provide Bus Service Between the Cities of Janesville,
Milton and Whitewater, WI.
This is the basic enabling resolution in which the Council authorizes the City
Manager to enter-into and sign a contractual agreement on behalf of the City of
Janesville with Generac Power Systems, Inc. and the City of Whitewater to
provide commuter bus service between the cities of Janesville, Milton and
Whitewater, WI. Resolution 2012-899 sets-forth the general terms of the
agreement, identifies the funding sources that will be used to cover the operating
deficit, and specifies that Generac and the City of Whitewater agree to pay the
local (sponsors) share of the operating deficit and cover any shortfall in farebox
revenues below the contracted amount; relieving the City of Janesville of that
obligation. Finally, the resolution allows the City Manager or designated staff
(the Director of Neighborhood Services, as provided in Resolution 2006-355) to
prepare, negotiate and execute any additional agreements, policies and
standards, etc. necessary to manage the day-to-day business of operating the
service authorized by this resolution.
Suggested Motion:
I move the adoption of Resolution 2012-899 authorizing the City Manager to
enter into a contract with Generac Power Systems, Incorporated and the City of
Whitewater, Wisconsin to provide bus service between the cities of Janesville,
Milton and Whitewater, Wisconsin.
Resolution 2012-900 – A Resolution Approving a Revised 2012 Transit
System Budget.
As the result of entering-into a contract with Generac Power Systems,
Incorporated and the City of Whitewater, Wisconsin to provide commuter bus
service, the City will incur additional expenses and receive additional revenues
not anticipated at the time that the 2012 City Budget was adopted by the Council
on November 28, 2011. To authorize these additional expenditures and
recognize the additional revenues resulting from this operation, the portion of the
2012 City Budget relating to the Transit System must be officially amended by
the Council. Resolution 2012-900 has been prepared to address this detail.
As the result of this Resolution, the Transit System budget will be
amended as follows:
Operating Expenses:
Expenses relating to Transit System operations; including wages and
benefits, direct operating costs and overhead expenses relating to the operation
will be increased as follows:
Tripper service: +$128,310
Operating Revenues:
Revenues received by the City as a result of running the service will be
added to the budget. These include “Farebox” revenues from cash fares
received on board the bus as well as revenues from the sale of bus passes by
various outlets. The “Sponsors Share” subsidy paid by Generac and the City of
Whitewater is also included in this area as a new line item, similar to the
payments received from the sponsors of the “Beloit-Janesville Express” service.
Fares +$19,248
Janesville-Milton-Whitewater Subsidy +$41,058
(New Line Item)
Operating Assistance:
These are revenues received through our contracts with the Wisconsin
Department of Transportation and the US Department of Transportation, which
are budgeted to underwrite 53% of the cost of operating the service. This is the
same percentage used in the original budget document last fall and represents
the anticipated level of funding by both Departments. We have kept the Section
Chief who supervises the Public and Specialized Transit Section at the
Wisconsin Department of Transportation abreast of our progress in developing
the Janesville-Milton-Whitewater service and the approximate cost of the service
and anticipated revenues from all sources, including state and federal
assistance. Based on the feedback received, we are confident that the funds are
available to cover the amounts below.
State Assistance: +$28,228
Federal Assistance +$39,776
Suggested Motion:
I move the adoption of Resolution 2012-900 Approving a Revised 2012 Transit
System Budget.
Transit System staff will be available at the April 9, 2012 Council meeting
to answer any technical questions regarding the service and its operation as well
as any questions the Council may have regarding the content of the two
resolutions necessary to commence the operation.
Attachments.
cc: City Manager
Assistant City Manager/Director of Administrative Services
Director of Neighborhood Services
RESOLUTION #2012 - 899
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH GENERAC POWER SYSTEMS, INC. AND THE CITY OF
WHITEWATER, WI, TO PROVIDE BUS SERVICE BETWEEN THE CITIES OF
JANESVILLE, MILTON AND WHITEWATER, WI
WHEREAS, the City owns and operates a public mass transportation system; and
WHEREAS, the City has established the policy that the area that is served by the JTS is
limited to within the City limits unless a special subsidy agreement is developed with other entities
that desire service to areas outside the City limits; and
WHEREAS, Generac Power Systems, Inc; and the City of Whitewater, WI (hereinafter
the Sponsors) requested this service; and
WHEREAS, it is expected the mass transportation system will be operating at a deficit
including, but not limited to, individual and aggregate deficits directly and indirectly arising from
providing service hereunder to the sponsors ; and
WHEREAS, the U.S. Department of Transportation, Federal Transit Administration and
the State of Wisconsin Department of Transportation will assist in the subsidization of the
operating deficit under formula grant programs; and
WHEREAS, the Sponsors approached the City and expressed a desire to have bus service
provided by the City to support their operations; and
WHEREAS, the Sponsors are willing to pay the local share of the operating deficit, and to
pay the City for any shortfall in farebox revenue below the levels projected, and have designated
the necessary funds for this purpose; and
WHEREAS, the Sponsors have agreed to meet such other requirements as established by
the City concerning the provision of Mass Transit Service between Downtown Janesville, the
Cities of Milton and Whitewater, WI and other points along the route.
NOW, THEREFORE, BE IT RESOLVED
by the Common Council of the City of
Janesville that the City Manager is authorized to enter into a contract with the Sponsors for the
provision of bus service between the cities of Janesville, Milton and Whitewater, WI.
BE IT FURTHER RESOLVED
, that the City Manager and/or his designee(s), on behalf
of the City of Janesville, is/are hereby authorized and empowered to negotiate, draft, modify,
review, execute, and enter into additional agreements, record, file, and/or make minor
modifications and/or amendments to any and all documents, papers, forms, and agreements, and
to take whatever other actions as the City Manager may determine, from time to time and at any
time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good.
Resolution #2012 - 899
Page Two
ADOPTED:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Eric J. Levitt, City Manager
Liebert
McDonald
ATTEST:
Rashkin
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Transit Director
Prepared by: Transit Director
RESOLUTION NO. 2012-900
RESOLUTION APPROVING A REVISED 2012 TRANSIT SYSTEM BUDGET
WHEREAS
, On November 28, 2011 the City Council adopted the 2012 City
Budget, including the budget for the Transit Division of the Neighborhood Services
Department, commonly known as the Janesville Transit System; and
WHEREAS
, in preparing the 2012 budget, the City of Janesville anticipated that
the level of service to be provided by the Janesville Transit System during 2012 would
be the same as provided during 2011, with expenditures, revenues and grant funding
projected accordingly; and
WHEREAS
, since the adoption of the 2012 City Budget, the City has been
approached by the City of Whitewater, Wisconsin and Generac Power Systems,
Incorporated, a private business located within the City of Whitewater, desiring to enter
into a contract with the City of Janesville and the Janesville Transit System to provide
commuter bus service between the cities of Janesville, Milton and Whitewater,
Wisconsin for the benefit of employees of Generac Power Systems as well as the
citizens of the City of Whitewater and other cities along the route; and
WHEREAS
, the Common Council of the City of Janesville finds that this service
would be of significant benefit to the citizens of Janesville by increasing access to the
City of Whitewater for employment and higher education for Janesville citizens, and
providing access to jobs, retail trade and medical facilities in Janesville to residents
along the route; and
WHEREAS,
the United States Department of Transportation, Federal Transit
Administration, and the Wisconsin Department of Transportation will assist in
subsidizing the cost of providing this service; and
WHEREAS
, the City of Whitewater, Wisconsin and Generac Power Systems,
Incorporated have agreed as a condition of receiving commuter bus service from the
City of Janesville that they will pay the Sponsors share of the operating cost of the
service and reimburse the City of Janesville for any shortfall in farebox revenue below
the projected amounts; and
WHEREAS
, the budget will be revised as follows:
Operating Expenses:
Tripper service: +$128,310
Operating Revenues:
Fares +$19,248
Janesville-Milton-Whitewater Subsidy +$41,058
(New Line Item)
Resolution No. 2012-900
Page
2
Operating Assistance:
State Assistance: +$28,228
Federal Assistance +$39,776
WHEREAS
, the Common Council finds that it is in the community's best interest
to revise the 2012 budget for the Transit Division of the Neighborhood Services
Department to reflect the expenses and revenues resulting from the addition of
commuter bus service between the cities of Janesville, Milton and Whitewater,
Wisconsin.
NOW, THEREFORE, BE IT RESOLVED,
by the Common Council of the City of
Janesville, that it authorizes and directs the City Manager to modify and amend the
2012 budget for the Transit Division of the Neighborhood Services Department as
recommended; and
BE IT FURTHER RESOLVED,
that the City Manager, and his designees, are hereby
authorized to negotiate, draft, prepare, execute, file and modify such other documents,
papers and agreements ancillary and/or pertaining thereto and, from time to time, to
take and/or make whatever other minor actions and/or minor modifications to the above
described agreements as the City Manager and/or his designee may deem necessary
and/or desirable to effectuate the purposes of such agreements and the intent of this
resolution. The City Manager is also hereby authorized to revise the FY2012 budget
document to reflect the receipt of the FY2012 Federal and State public transit operating
assistance funds, operating revenues, sponsors share contributions and the
expenditures as reflected in this resolution.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Eric J. Levitt, City Manager
Liebert
McDonald
ATTEST:
Rashkin
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Transit Director
Prepared by: Transit Director