HomeMy WebLinkAbout09/06/1988, C-4 - CONSIDERATION OF APPROVING THE SLO TRANSIT ROUTE SUBSIDY AGREEMENT BETWEEN CAL POLY AND THE CITY OF SAN LUIS OBISPO. " ♦ MEEnNG DATE:
��►�n�►���►�IIIII�IIP ��I� city Of San LUIS OBISPO Sept.STEM MBB 1988
COUNAGENDA REPORT l
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FROM: Nancy Knofler ransit Manager via John Dunn, CAO
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 1988-89 is $74,086.80, which represents a charge of 30
cents per trip for the total number of Cal Poly passengers riding SLO
Transit during FY 1987-88. The agreement states that the cost per passenger
shall increase by one cent per fiscal year (for example, FY 1988-89 = 30
cents, FY 1989-90 = 31 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 fiscal year ridership has increased about 43% when compared to the
last fiscal year before this program commenced. The bulk of the increased
ridership is due to increased usage of the bus system by Cal Poly
affiliates.
At the same time, however, this rapid increase in ridership has resulted in
a substantial imbalance in the Cal Poly fare revenue per passenger (29
cents during FY 1987-88) relative to the average fare revenue per all other
SLO Transit passengers (35 cents during FY 1987-88) . As previously
mentioned, fare revenue equity will gradually be phased in. It is
important to note that there already has been improvement in this area, as
the Cal Poly average fare revenue in FY 1985-86 was 21 cents per passenger.
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Page 2
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
The City will receive $74,086.80 for FY 1988-89 from the University,
instead of receiving revenue through the traditional methods--monthly
passes and cash fares.
CAO RECOMMENDATION
By motion, adopt the resolution which approves the agreement and authorizes
the Mayor to execute the same.
Attachment: Resolution
Transit Agreements available in Council Office for inspection.
V r
Resolution No. (1988 Series)
A 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:
1. That Transit Agreement SA #88/075 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 a copy of this resolution and 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 1988.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAMELA VOGES
APPROVED:
City Administrative Officer _ r.� Director of Finance
City At rney '