HomeMy WebLinkAbout09/05/1989, C-10 - CONSIDERATION OF APPROVING THE SLO TRANSIT ROUTE SUBSIDY AGREEMENT BETWEEN CAL POLY AND THE CITY OF M 9-5-89
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COUNCIL® AGENDA REPORT BER:
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FROM: Nancy Knof1e%A` Transit Manager
SUBJECT: Consideration of approving the SLO Transit Route Subsidy Agreement
between Cal Poly and the City of San Luis Obispo.
CAO RECOMMENDATION:
By motion, adopt the resolution which approves the agreement and
authorizes the Mayor to execute the same.
BACKGROUND:
Since September 14, 1985, the City and Cal Poly have jointly offered a Cal Poly
"No Fare Program" for SLO Transit. Through transit agreements, the University
has paid annual route subsidy fees to the City in exchange for "free" usage of
SLO Transit by Cal Poly students, staff, and faculty.
Cal Poly has indicated to City staff that they would like to continue the No
Fare Program. Accordingly, City and Cal Poly staff have negotiated the
necessary legal documents. Cal Poly executed the agreement and it is now ready
for the Council's consideration. This year's agreement is essentially the same
as the agreements previously approved by the City Council for this program.
The annual route subsidy fee which Cal Poly would pay to the City is based on a
simple formula which considers two factors--fiscal year Cal Poly ridership and a
charge per passenger on SLO Transit. The Cal Poly route subsidy fee for FY
1989-90 is $88.791.44, which represents a charge of 31 cents per trip for the
total number of Cal Poly passengers riding SLO Transit during FY 1988-89. The
total number of Cal Poly passengers during FY 1988-89 was 286,424, a 16%
increase over the previous fiscal year's ridership. This increase in ridership
can be primarily attributed to the Cal Poly parking fee increase which took
effect in September 1988.
The agreement states that the cost per passenger shall increase by one cent per
fiscal year (for example, FY 1989-90 = 31 cents, FY 1990-91 = 32 cents) until
such time that the fare revenue per Cal Poly passenger is consistent with the
average fare revenue per passenger of all other SLO Transit passengers. This
formula allows for a gradual phasing of fare revenue equity between Cal Poly
passengers and all other SLO Transit passengers.
The agreement is available in the City Council office for review.
NO FARE PROGRAM RESULTS
In terms of ridership, this program has been tremendously successful. SLO
Transit's total ridership has increased about 63% when compared to the last
fiscal year before this program commenced (509,349 passengers during FY 1988-89
compared with 312,091 during FY 1984-85) . The bulk of the increased ridership
is due to increased usage of the bus system by Cal Poly affiliates.
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ALTERNATIVES ANALYSIS
1. Approve the agreement — This is the recommended alternative as substantial
Cal Poly ridership would probably continue. Cal Poly would have fewer
problems with parking demands on campus. The City would receive Cal Poly
fare revenue in exchange for "free" usage of SLO Transit by Cal Poly
affiliates. Staff is not aware of any significant disadvantages to
continuing this program.
2. Do not approve the agreement - This option is not recommended as SLO
Transit ridership and revenue would probably decline. Cal Poly would
probably experience increased demand for automobile parking. The City
would revert to charging Cal Poly affiliates the standard fares.
FISCAL IMPACT
If the City Council approves this agreement, the City will receive $88,791.44
for FY 1989-90 from the University. If this program were discontinued, fare
revenue would probably decrease due to ridership decline.
CAO RECOMMENDATION
By motion, adopt the resolution which approves the agreement and authorizes the
Mayor to execute the same.
Attachment: Resolution
Resolution No. (1989 Series)
CA RESOLUTION APPROVING THE TRANSIT AGREEMENT
BETWEEN THE TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY
CALIFORNIA POLYTECHNIC STATE UNIVERSITY, SAN LUIS OBISPO, AND THE
CITY OF SAN LUIS OBISPO FOR ROUTE SUBSIDY TO SLO TRANSIT
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
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1. That Transit Agreement SA #89/127 between the Trustees of the
California State University, California Polytechnic State University,
San Luis Obispo, and the City of San Luis Obispo is approved and the
Mayor is authorized to execute the same.
2. The City Clerk shall furnish one original resolution and five copies
of the agreement to:
Ray Macias
Procurement & Support Services Officer
California Polytechnic State University
San Luis Obispo, CA 93407
on motion of seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day
of 1989.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAMELA VOGES
APPROVED:
City A ministrative Officer iirector of FinAce
City Attor
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