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HomeMy WebLinkAbout08503ORDINANCE NO. 8503 AN ORDINANCE RESCINDING CITI-LIFT RATES AND CHARGES FOR TRANSPORTATION SERVICES BASED ON GROSS MONTHLY HOUSEHOLD INCOME, EFFECTIVE SEPTEMBER 1, 2012 WHEREAS, the City’s mass transportation system is operated by Pueblo Transit as an agency and instrumentality of the City of Pueblo; and WHEREAS, Pueblo Transit evaluated the fare structure of the transportation system and recommended raising fares and eliminating income-based fares for the use of Citi-Lift monthly passes; and WHEREAS, transportation system operating funds are derived from a 50/50 match between the Federal Transit Administration and the City of Pueblo, with revenue received offsetting the City of Pueblo’s match; and WHEREAS, additional sources of revenue must be obtained for the continuation of transportation service and to offset the costs associated with the increased demand in paratransit services and fuel increases; and WHEREAS, public hearings were held after public notices on July 19, 2012 and July 20, 2012, with 85 citizens and representatives from local organizations in attendance who provided valuable input to the proposed service reductions and fare increases; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The following rates and charges for Citi-Lift transportation services are hereby rescinded effective September 1, 2012: Citi-Lift Monthly Passes Current Fare Structure Gross Monthly Income Current Fare < $600 /month $20.00 $601- $1,250 /month $30.00 > $1,250 /month $40.00 SECTION 2. Citi-Lift monthly pass fares shall be as established in Ordinance No. 8502. SECTION 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED: August 13, 2012 BY: Sandy Daff COUNCIL PERSON PASSED AND APPROVED: September 24, 2012 Background Paper for Proposed ORDINANCE DATE: August 13, 2012AGENDA ITEM # S-2 DEPARTMENT: PUEBLO TRANSIT BRENDA BROYLES DIRECTOR OF TRANSIT TITLE AN ORDINANCE RESCINDING CITI-LIFT RATES AND CHARGES FOR TRANSPORTATION SERVICES BASED ON GROSS MONTHLY HOUSEHOLD INCOME, EFFECTIVE SEPTEMBER 1, 2012 ISSUE Should City Council rescind the Citi-Lift fares based on monthly household income criteria, effective September 1, 2012, to offset costs associated with fuel price increases? RECOMMENDATION The Board of Directors of Pueblo Transit recommends approvalof theOrdinance. BACKGROUND There has not been a fare increase for public transportation services since January 2005. Since that date transportation ridership has increased 7%. There have also been increases in annual revenue miles and revenue hours with extended service on the Mall and the Highland Park routes and the addition on one hour of extended service to the Highway 50 West route. There has also been a significant increase in monthly paratransit trips (MV contracted “Citi-Lift”). The average number of monthly Citi-Lift trips is 3,957. Fuel costs have increased by 75%. The average cost to provide one ride on a city bus is $3.59. The average cost to provide one Citi-Lift ride is $15.24. FINANCIAL IMPACT If the across the board proposed transit fares increase of 25% is approved we anticipate an additional fare box revenue of approximately $140,000 next year.