HomeMy WebLinkAbout05/29/2003, PH4 - TRANSIT FUND REVIEW FOR 2003-04 CC
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j Agenda Report Immh.be�� �4
CITY O F SAN LUI S 0 B I S P 0
FROM: Michael D. McCluskey, Public Works Director
Prepared By: David Elliott, Administrative Services Manager
SUBJECT: TRANSIT FUND REVIEW FOR 2003-04
CAO RECOMMENDATIONS
1. Review and accept the 2003 annual transit fund review; and
2. Conceptually approve the proposed operating program change requests and capital im-
provement plan requests contained in the preliminary 2003-05 Financial Plan,pending the
final budget review and adoption.
DISCUSSION
Worksheet Assumptions
The attached worksheet, "Changes in Working Capital - Transit Fund", projects sources of
revenue and uses of revenue for the Transit Fund over the five-year period from 2003-04 to
2007-08. Worksheet projections are based on the following assumptions:
1. State Transportation Development Act (TDA) grant apportionments will be at levels stated
in the draft Short Range Transit Plan.
2. Federal Transit Administration (FTA) grant apportionments will be at levels stated in the
draft Short Range Transit Plan.
3. Ridership will increase by five percent in 2003-04 and 2004-05 and by three percent annu-
ally thereafter.
4. Bus pass and cash fare revenue will increase commensurate with ridership.
5. The following significant operating program changes will take effect (See page 2 for de-
tail):
a. Transportation Assistant for Transit @ $23,000 in 2003-04 and $28,900 annually
thereafter
b. Enhanced Transit Marketing @ $15,000 annually
C. Transit Smart Card Feasibility @$5,000 in 2003-04
6. Capital project appropriations will include (See page 2 detail):
a. Capital Cost of Contracting @ $50,000 each year
b. Bus Stop Improvements and Bus Identification @ $56,000 in 2003-04 and $185,000
in 2004-05
C. Fleet Replacement-Transit @ $825,000 in 2004-05
d. North Area Regional Facility - Transit @ $50,000 in 2003-04, $100,000 in 2004-05,
$900,000 in 2005-06, and$1,400,000 in 2006-07
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Council Agenda Report—Transit Fund Review for 2003-04
Page 2
C. Transit Fund Share of Information Technology Projects @ $16,900 in 2003-04,
$2,300 in 2004-05, $81,300 in 2005-06, and $37,300 in.2006-07
Conclusions
From the worksheet Public Works has concluded that current transit fares, anticipated FTA and
TDA grant apportionments, and discretionary capital grants will cover all planned operating
expenses and capital outlays from 2003-04 through 2007-08, including replacement of three
buses. Nonetheless, there is one problem that must be addressed. TDA regulations state that
money collected from fazes must cover at least 20 percent of operating costs. Projections show
that, under current rates, fares will amount to only 17.4 percent of operating costs in 2003-04,
and this ratio will not rise above 18.3 percent in future years. Options and recommendations for
resolving this problem will be presented to the Council when the Short Range Transit Plan is
considered in July or August 2003.
Significant Operating Program Change Requests
Transportation Assistant for Transit. Restoring one half-time Transportation Assistant to the
regular staffing of the Transit Program will cost $23,000 in 2003-04 and $28,900 in 2004-05.
The primary purpose of adding this new position is to allow the Transit Manager to focus more
on policy issues and marketing. The need for this position is fully discussed in the 2003-05 Pre-
liminary Financial Plan, Appendix A-34.
Enhanced Transit Marketing. Promoting SLO Transit to attract more passengers will cost an
additional $15,000 each year starting in 2003-04.
Transit Smart Card Feasibility. Studying the feasibility of using SMART Cards for SLO Transit
will cost $5,000 in 2003-64. The purpose of the SMART cards would be to accurately determine
who is riding the system and how often they are riding.
CIP Project Requests
Capital Cost of Contracting. Capitalizing a portion of the maintenance cost for SLO Transit
buses in order to reduce operating costs will cost $50,000 each year.
Bus Stop Improvements and Bus Identification. This project has three components: 1) installing
new bus stop signs and information displays 2) installing four electronic destination signs on four
existing buses and 3) installing bus stop upgrades at locations identified in the Short.Range Tran-
sit Plan. This work will cost$56,000 in 2003-04 and$185,000 in 2004-05.
Fleet Replacement-Transit. Replacing three transit buses will cost$825,000 in 2004-05.
North Area Regional Facility - Transit. Developing the transit component of the North Area
Regional Facility (NARF) will cost $50,000 for environmental review in 2003-04, $100,000 for
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Council Agenda Report—Transit Fund Review for 2003-04
Page 3
land acquisition in 2004-05, $900,000 for land acquisition in 2005-06, and $1,400,000 for con-
struction in 2006-07.
Transit Fund Share of Information Technology Projects. Covering the Transit Fund share of
various infonnation technology improvements will cost $16,900 in 2003-04, $2,300 in 2004-05,
$81,300 in 2005-06, and $37,300 in 2006-07
ATTACHMENTS:
Changes in Working Capital—Transit Fund
I:\ Council Agenda Reports\2003 agenda reports\Transit Fund Review 03.04
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