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HomeMy WebLinkAbout08502As Amended September 24, 2012 ORDINANCE NO. 8502 AN ORDINANCE ESTABLISHING RATES AND CHARGES FOR TRANSPORTATION SERVICES EFFECTIVE OCTOBER 15, 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 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 fuel prices; 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 transportation services are hereby fixed and established effective October 15, 2012: Current Effective October 15, 2012 Adult $ 1.00 $ 1.10 Students $ 0.75 $ 0.85 Elderly and/or Disabled $ 0.50 $ 0.55 Citi-Lift $ 2.00 $ 2.20 Adult 35-Day Pass $35.00 $38.50 Student 35-Day Pass $27.50 $30.25 Elderly/Disabled 35-Day Pass $20.00 $22.00 Adult 22-Ride pass $16.50 $18.15 Student 22-Ride pass $12.50 $13.75 Elderly/Disabled 22-Ride pass $ 8.50 $ 9.35 Daily Pass $ 3.00 $ 3.30 Citi-Lift Monthly Pass $40.00 $44.00 SECTION 2. 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 As Amended September 24, 2012 Background Paper for Proposed ORDINANCE DATE: August 13, 2012 AGENDA ITEM # S-1 DEPARTMENT: PUEBLO TRANSIT BRENDA BROYLES DIRECTOR OF TRANSIT TITLE AN ORDINANCE ESTABLISHING RATES AND CHARGES FOR TRANSPORTATION SERVICES EFFECTIVE OCTOBER 15, 2012 ISSUE Should City Council increase fares, effective October 15, 2012, for the continuation of current transportation services and to offset costs associated with the increased cost of diesel fuel for buses and general vehicle maintenance? RECOMMENDATION The Board of Directors of Pueblo Transit recommends approvalof the Ordinance. BACKGROUND Even though the cost of fuel and other expenses has risen significantly 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 of 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 proposed fares along with minimal service reductions are approved we anticipate additional fare box revenue of approximately $200,000 next year. (See attached proposals) The additional revenue will be included in the Pueblo Transit’s 2013 budget submittal. The majority of the 2012 operating increases stem from fuel price increases and unexpected employee turnover.