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HomeMy WebLinkAboutAGENDA REPORT 2024 0904 CCSA REG ITEM 10ICITY OF MOORPARK, CALIFORNIA City Council Meeting of September 4, 2024 ACTION APPROVED STAFF RECOMMENDATIONS. BY A. Hurtado. I. Consider Agreement with Ventura County Transportation Commission for Free Fare Program Reimbursement. Staff Recommendation: 1) Find the Free Fare Reimbursement Agreement exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and 2) Approve VCTC Free Fare Reimbursement Agreement and authorize the City Manager to sign the Free Fare Reimbursement Agreement with Ventura County Transportation Commission, subject to final language approval by the City Manager. (Staff: Daniel Kim, City Engineer/Public Works Director) Item: 10.I. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Daniel Kim, City Engineer/Public Works Director BY: Michelle Woomer, Senior Management Analyst DATE: 09/04/2024 Regular Meeting SUBJECT: Consider Agreement with Ventura County Transportation Commission for Free Fare Program Reimbursement BACKGROUND On June 20, 2018, the City Council approved an agreement with the Ventura County Transportation Commission (VCTC) for reimbursement for free college bus trips. The VCTC College Ride Program provided free bus trips for college enrolled passengers that show a college ID and was funded by Low Carbon Transit Operations Program (LCTOP) funding. On September 1, 2022, the City of Moorpark and VCTC entered into a new agreement to participate in VCTC’s Free Fare Program, which expanded the free fares to youths 18 years and younger in the Youth Ride Free Program. The Program also added Free Fare Days, which allowed transit riders free trips on specific days of the year. Free Fare Days include Car Free Day, California Clean Air Day, Transit Equity Day, Earth Day, Bike to Work Day, and Dump the Pump. The expanded Free Fare Program is also funded by California’s LCTOP funds and reimburses participating transit agencies through the grant. The LCTOP provides funds to public transit agencies for investments in capital projects and services that reduce greenhouse gas emissions and improve mobility. The VCTC College Ride Program provides free transit trips to college and university students enrolled at California State University Channel Islands, all the Ventura County Community Colleges, California Lutheran University, University of California Santa Barbara, and Santa Barbara City College. The goal of the program is to increase transit ridership among college students. The Youth Ride Free Program was created to help introduce public transit to younger people in the community and encourage them to become public transit users. By introducing transit to youths, it will help increase transit ridership in the area, which means Item: 10.I. 153 Honorable City Council 09/04/2024 Regular Meeting Page 2 the header. less congestion on streets and highways and in turn help reduce greenhouse gas emissions. Another benefit of offering free fare for youths is that it gives relief to families who are struggling with high gas prices and other rising costs due to inflation. DISCUSSION The VCTC Free Fare Programs have been successful in increasing college and youth ridership throughout the County. For Fiscal Year (FY) 2023/24 a total of 5,177 college students took Moorpark City Transit’s (MCT) fixed route service, in comparison to 3,122 college students taking the service in FY 2022/23. Youth ridership also significantly increased during this time. A total of 15,979 youth riders aged 18 years and younger used the City’s fixed route service in FY 2023/24, while in FY 2022/23 only 8,774 used the service. Other agencies within the County have also reported higher ridership as well. Gold Coast Transit reported that the Youth Ride Free Program has been a driving factor in ridership recovery, with over 30% of its ridership coming from passengers using the Program. In 2023, VCTC’s Free Fare Program subsidized about 1.5 million bus passenger trips or 35% of the total number of bus passenger trips provided in Ventura County. Overall ridership has significantly increased throughout Ventura County thanks to the Free Fare Programs. For FY 2023/24, City staff budgeted a total revenue of $17,000 from transit fares collected and has surpassed it. Revenues received by the City in FY 2023/24 from the Free Fare Program reimbursements have totaled approximately $26,000. Due to the popularity of the Free Fare Program, LCTOP funds are becoming depleted sooner than expected. VCTC originally budgeted in FY 2023/24 an anticipated $1,080,000 in reimbursements for the Youth Ride Free Program but is now projecting an expenditure of $2 million. VCTC has determined that in order to sustain the Free Fare Programs, the current 100% reimbursement rate to participating transit agencies must be reduced to 75%. The new reimbursement rate would be retroactive from April 1, 2024, and will be the new reimbursement rate for all participating agencies moving forward. The reduction in the reimbursement rate will ensure that the Free Fare Program runs through September 2, 2024, while VCTC works on securing additional LCTOP funding to continue the Program through FY 2024/25. Therefore, VCTC has prepared a new Reimbursement Agreement for transit agencies which reduces the fare reimbursement rate from 100% to 75% of the respective transit agency’s fare value. This new reimbursement rate will be applied to all future fare reimbursements through VCTC’s Free Fare Program. MCT’s current fare structure is $1.00 per trip for passengers aged 6 through 64. With the new agreement, the City would receive $0.75 reimbursement for each passenger with a valid college ID and youth 18 years old and younger who uses MCT’s service. The same reimbursement rate would also be applied for all designated Free Fare Days. This new agreement impacts MCT’s farebox recovery ratio; however, post-COVID the farebox recovery ratio requirement in the Transportation Development Act (TDA) has been suspended in order to help transit agencies regain ridership that was lost during the height of COVID. When the TDA farebox recovery ratio is not achieved, City funds, such as the 154 Honorable City Council 09/04/2024 Regular Meeting Page 3 the header. Traffic Systems Management Fund or General Fund, are used to meet the farebox shortfall. MCT’s participation in VCTC’s Free Fare Program has led to over 50% increase in ridership among college students and youth riders aged 18 and younger in comparison to the prior FY 2022/23. Not participating in VCTC’s Free Fare Program could negatively impact ridership, further lowering MCT’s farebox recovery ratio. Staff recommends approving the new Reimbursement Agreement as part of the City’s ongoing efforts to increase participation in public transit and improve regional transit services. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT Participation in VCTC’s Free Fare Program generated revenue of approximately $7,521 from April 2024 through June 2024, and a loss of fare revenue of $2,507 due to the 25% fare reimbursement reduction. While it is estimated that approximately $2,500 in revenue will be generated from July 2024 through September 2, 2024, a loss in fare revenue of approximately $800 is anticipated. The reduction in the new fare reimbursement rate from 100% to 75% impacts MCT’s farebox recovery ratio; however, TDA requirement for farebox recovery ratio is relieved through FY 2024/25 and therefore will have no impact to the City’s General Fund or Traffic Systems Management Fund due to not meeting the farebox recovery ratio. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION 1.Find the Free Fare Reimbursement Agreement exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and 2.Approve VCTC Free Fare Reimbursement Agreement and authorize the City Manager to sign the Free Fare Reimbursement Agreement with Ventura County Transportation Commission, subject to final language approval by the City Manager. Attachment: New VCTC Free Fare Reimbursement Agreement 155 Reimbursement Agreement for Transit Providers AGREEMENT BETWEEN VCTC AND VENTURA COUNTY TRANSIT OPERATORS: CITY OF THOUSAND OAKS, CITY OF MOORPARK, CITY OF CAMARILLO, CITY OF OJAI, CITY OF SIMI VALLEY AND GOLD COAST TRANSIT DISTRICT For good and sufficient consideration, the receipt of which is hereby acknowledged, this Agreement is made and entered into by and among the Ventura County Transportation Commission (VCTC) and the City of Thousand Oaks/Thousand Oaks Transit, City of Moorpark/Moorpark City Transit, City of Camarillo/Camarillo Area Transit, City of Ojai/Ojai Trolley, City of Simi Valley/Simi Valley Transit, Gold Coast Transit District referred to herein individually as “AGENCY” and collectively as “AGENCIES.” Together, VCTC and the AGENCIES are collectively referred to herein as “Parties.” WHEREAS, VCTC and AGENCIES are party to that Reimbursement Agreement for Transit Providers entered into as of 1 day of September 2022 (“Prior Agreement”); and WHEREAS, the Prior Agreement only outlined procedures for reimbursement of the College Ride Program; and did not include the updated reimbursement rate for the Youth Ride Free Program; and WHEREAS, the Parties desire to repeal and replace the Prior Agreement and enter into this new Reimbursement Agreement for Transit Providers, which outlines procedures and obligations applicable to all of the Free Fare transit programs: College Ride Program, Youth Free Ride Program, and Free Fare Days (with the reimbursement rate of 75% of the operator's full fare effective April 1, 2024); and In light of the foregoing, the Parties agree as follows: Section 1: Termination of Prior Agreement. By executing this Agreement, the Parties agree that the Prior Agreement is terminated and shall be void and of no further effect. This Reimbursement Agreement for Transit Providers shall govern the relationship of the Parties as to the Free Fare transit programs, including the College Ride Program, Youth Ride Free Program, and Free Fare Days. Effective April 1, 2024, the reimbursement will be 75% of the operator's full fare. Section 2: Purpose The purpose of this Agreement is to outline the terms, conditions, and obligations for the VCTC to cooperatively provide reimbursement for the use of AGENCIES’ services for Free Fare programs such as the College Ride Program, the Youth Ride Free program or Free Fare days. Section 3: Program Funding Eligibility a)College Ride Program. Enrolled College Students, eligible to ride through the College Ride Program, are those individual college and university students currently enrolled at the Eligible Schools. Eligible Schools include the California State University Channel Islands, the Ventura County Community College District, California Lutheran University, University of California Santa Barbara and Santa Barbara City College. ATTACHMENT 156 b)Youth Free Ride Program. Youth 18 and under and those enrolled in continuation schools are eligible to ride free through the Youth Ride Free program. c)Fare Free Days. The Parties may elect to hold Free Fare days where all passengers ride transit free. When funding is available and agreed upon in writing in advance by VCTC, VCTC will reimburse the Agencies for free rides taken on these days. Section 4: Term This Agreement is effective as of September 1, 2022 and shall continue in full force unless or until the Agreement is terminated pursuant to Section 8 below. Section 5: Operation The responsibilities of the AGENCIES with respect to the Free Fare Programs are as follows: a)Fare Collection: i.College Ride passengers shall provide the transit vehicle operator (driver) the passenger’s individual student identification card from the Eligible Schools or the Approved Alternative Fare Media. Approved Alternative Fare Media shall be mutually agreed upon by the AGENCIES prior to acceptance. The collecting AGENCY shall record the ridership data by route for each Eligible School boarding. ii.Youth Ride Free passengers do not have to show proof of age, except for those that appear to be 18 or older, which is to be determined by the drivers’ discretion. The collecting AGENCY shall record the ridership data by route for each boarding. iii.For Free Fare days, the collecting AGENCY shall record the ridership data by route for each boarding. This data may be captured manually using “Tally Sheets” OR collected using on-board vehicle technology. The per-route boardings data will be provided as backup to the AGENCIES invoice. b)Reimbursement: An accounting invoice listing the number of boardings by each Free Fare boarding type; College Ride, Youth Ride Free or Free Fare Day, will be submitted no more than once a month to the VCTC. As backup, the Tally Sheets OR original, unedited, and untampered data system reports that accurately reflect the number of times eligible passengers were provided a trip. VCTC will reimburse the AGENCY providing the trip at the rate per trip equal to: •College Ride: 75% of the AGENCY’s full fare as approved by the AGENCY’s governing body for the trip taken, effective April 1, 2024. •Youth Ride Free: 75% of the AGENCY’s full fare as approved by the AGENCY’s governing body for the trip taken, effective April 1, 2024. •Fare Free Days: 75% of the AGENCY’s full fare as approved by the AGENCY’s governing body for the trip taken, effective April 1, 2024. 157 The VCTC will provide the reimbursement within thirty (30) days following acceptance of a complete invoice packet (i.e. invoice and tickets). Reimbursement amounts per trip are subject to change if the AGENCY’s governing board (City Council, Board of Directors, etc.) approves adjustment to the value of the per trip fare charge. The VCTC shall provide sixty (60) days prior written notice to all transit AGENCIES participating in the program for changes to the reimbursement rate. c)Return of Funds: In the event that an AGENCY discovers that they have received more reimbursement than is justified, AGENCY shall immediately notify VCTC and return any excess funds to VCTC within 30 days. Section 6: Beneficiaries of Agreement This Agreement is for the sole benefit of the Parties hereto and no individual, organization, group, firm, or other entity shall have any claim for benefits hereunder. Section 7: Changes to Agreement This agreement may only be amended by written agreement signed by all parties. Section 8: Termination of Agreement The Agreement may terminated by VCTC for any reason by providing a 30-day written notification to all AGENCIES. The AGENCIES may terminate the Agreement upon a 30-day written notification to VCTC, but all AGENCIES must agree in writing to such termination. Individual AGENCIES may elect to withdraw from the Agreement upon 30 days’ written notification to VCTC and the other AGENCIES. In the event that any one AGENCY withdraws, the Agreement shall continue in full force and effect as to the remaining AGENCIES. Section 9: Hold Harmless To the fullest extent allowed by law, each of the AGENCIES (individually when referred to herein as the “Indemnifying Party”) shall indemnify, protect, defend and hold VCTC, and the other AGENCIES, their officers, employees and agents harmless from all liability, claims or damages arising out of, caused by, or resulting from, the Indemnifying Party’s negligence, recklessness, or willful misconduct in providing the underlying transit service and/or performing its obligations pursuant to this Agreement. Section 10: Notices or Notification Any notice required to be given in writing under this Agreement, or other notifications, shall be given to the parties at the following addresses Martin R. Erickson VCTC Executive Director 751 E. Daily Drive Camarillo, CA 93010 158 AGENCIES (See Exhibit “A”) 159 Date: __________________ In witness whereof, the parties hereto have executed this Agreement on the dates stated below. By: _______________________________ Martin R. Erickson, Executive Director Agency: Ventura County Transportation Commission 160 By: Date: Name: Agency: City of Moorpark Troy Brown, City Manager 161 EXHIBIT A AGENCIES Ventura County Transit Operators General Manager Gold Coast Transit District 301 E. Third St. Oxnard, CA 93030-6048 City Manager City of Simi Valley Transit City Hall 2929 Tapo Canyon Road Simi Valley, CA 93063 City Manager City of Ojai Transit/Ojai Trolley Ojai City Hall 401 S. Ventura Street Ojai, CA 93023 City Manager City of Camarillo/Camarillo Area Transit City Hall 601 Carmen Drive Camarillo, California 93010 City Manager City of Moorpark/Moorpark City Transit City Hall 401 S. Ventura Street Ojai, CA 93023 City Manager City of Thousand Oaks/Thousand Oaks Transit City Hall 2100 Thousand Oaks Boulevard Thousand Oaks, CA 91362 162