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Agenda 03/27/2012 Item #11D3/27/2012 Item 11. D. EXECUTIVE SUMMARY Recommendation to not renew the Subcontracted Transportation Provider (STP) Agreement with the Florida Commission for the Transportation Disadvantaged (FCTD) due to expire on Jane 30, 2012, for the provision of transportation for qualified Medicaid recipients. OBJECTIVE: To not renew the Subcontracted Transportation Provider (STP) Agreement with the Florida Commission for the Transportation Disadvantaged (FCTD) and discontinue providing Medicaid Non Emergency Transportation (NET) services effective day end June 30, 2012; and, to direct staff to provide notice to the FCTD of this direction to meet the required notice in order to provide sufficient time for FTTD to contract with another provider. CONSIDERATION: Chapter 427, Florida Statutes requires that within each ' Florida County, all publicly funded human service transportation be coordinated by one entity, the Community Transportation Coordinator (CTC). In Collier County, the Board of County Commissioners functions as the CTC and provides coordinated transportation services through Collier Area Paratramsit (CAP). Transportation services are currently provided by CAP with the funding assistance from three programs: Medicaid, Transportation Disadvantaged (ID) and Americans with Disabilities Act (ADA). These funding sources do not fully fund paratransit services and are annually supported by local dollars provided through the General Fund. In order to continue receiving this funding assistance, CAP must comply with the following guidance and requirements. Medicaid services: The program provides medical trips to qualifying Medicaid transportation recipients and requires the recipient to pay a maximum fare of $1.00 per trip. Collier County has an existing contract with the FCTD to provide these non - emergency transportation services and by contract, is prohibited from denying a qualifying trip. Trips under this program are provided both inside and outside the County.-'Medicaid ridership represents approximately 23% of the paratransit system ridership. • Transportation E smdvantaged (TD) services: The program provides transportation services to persons that reside. in areas where Fixed Route service is not available and do not have other means of transportation and/or have limited income. Persons qualifying under this program are required to pay a fare ranging from $0 to $6 based on income level. Collier County has entered a Grant Agreement with the FCTD to provide this service to the transportation disadvantaged but is not limited to a fare structure of the types of trips provided. - The Transportation Disadvantaged program follows the trip priority guidelines established by the Local Coordinating Board (LCB). TD ridership represents approximately 52% of the paratransit system ridership. • Americans with Disabilities Act (ADA) services: The program provides transportation services to persons who 1) have disabilities (certified by a licensed medical professional); 2) are unable to utilize the Fixed Route system; and 3) live within a % mile of a Fixed Route corridor. Recipients of this service are required to pay a fare of $2.00 per trip. Collier County has entered a Grant Master Agreement with the Federal Transit Administration (FTA) to provide this service as a requirement of providing Fixed Route service to the community. Although trips can be denied under this program, the origin and destination of the trips under this program must be with the % mile ADA corridor noted above. The maximum fare that can be charged under this program is Packet Page -241 - twice the Fixed Rbide full fare. ADA ridembi system ridership. As part of the continuous Collier Area Transit (CAT) trend has been identified over the past three years fa county is experiencing, it has become. evident. that. if tl increase of *; the eouy vuill exceed its budgeted 1 3/27/2012 Item 11.D. represents approximately 20/6 of the pardansit CAP ridership as increase. in trips Paratransit. With the t* 4=wad , trend ; that the c county continues this annual of an average tips in FY 2012 and again in FY 2013. fiscal Year Budgeted Trips Actual Trips 20ft-09 105,000 112,692 2009 -10 101,800 117,752 202411 120,000 122,914 2411 -12 120,000 128,322* 2012-13 120,000 133,968* * Forecasted trips based on existing trend of 4.4'%a. Of the total _ 122,914 P atransit program trips provided in FY 2011, 27,606-trips (22 %a) .were Del eliraid trips, :of which 3,344 were out of county trips traveling as far as Tampa, Jacksonville, Qrlaudo, and Tallahassee: During FY 2011 the Paratransit program traveled atotal of 1,4$6,235 vehicle miles, of which .Medicaid trips e4wered 518,604 miles (350 %) with approximately fifty percent :of the miles ( 260, 881) traveling out of the county. In FY 2011 the approximate cost of the Medicaid program was $1,192,58€1 wig ._gam . fending representing 43% of the costs ($ 507, 270). Wlile the Contribution being allocated through the-Modicaid � contract for FY 2412 incrwtsed slightly it will not ailete the impact on local budget. The Amathat the Medicaid Agreement pla ,s limitation on the fare that tan, be assessed to riders to help Iotfset the cost of operating the Pmt coupled with the restrictions pled on the provider to (manage than #ips. -being provided .under this program, the ability to continue to support this program isilifEcult. During the FY-2,012 bum adoption, approximately 120,000 trips were planned at a total cost of $3,873,800 for the Paratrais t program. The total nuinberof trips that can be provided fot is monitored throughout the year closely to account for fluctuationsin farebox revenues, grantor sponged reenue:s trip demand and fleet costs including fuel. All of thosp factors replicate ongoing changes in the current economic conditions. Final trip counts for FY 2011 were 122,914. It is anticipated based on the past. two years of ridership trends that gips will continue to increase an °estimated'. 4.4 % per year equating-to 128;320 trips. in FY 2012 and 134,970 trips in FY 2013. Even though a focus on farebox, recovery efforts has resulted in a, favorable increase of 30%, the monetary result is less than $50,000 annually. In addition, the total swn of annual revenue received from federal and state granlrs to support parat sit services has declined over the last two fiscal yews. As a result the burden for fund the TD program has shifted to local f w ding sources which continue to decline countywide, while operating costs increase. Based on the TY2012 -first quarter operating cost results, the average cost per parEnsit trip equates to $31.10 ; per- trip It should be noted that the first quarter of each fiscal year falls during the off season and represents a nob in time that produces the lowest quarterly trip rate during the fiscal year. Though the cum budget at first glance could support 124,500 trips based on the first quarter average cost per Packet Page 242 3/27/2012 Item 11.D. paratransit trip, it is known the this cost will increase by year end to account for seasonal ridership variances as well as fluctuating fuel prices. An optimistic target would be to support no more than FY 2011 trip levels which would still leave a funding shortfall for approximately 5,400 trips in FY 2012 ($174,300) and 11,050 trips in FY 2013 ($356,700). The transfer from the General Fund (001) will be reduced by 5% pursuant budget guidance. The transfer from the General Fund (001) in FY 2012 is $2,501,900 and the planned transfer for FY 2013 is $2,376,800. The delta of $134,100 is not expected to be met by additional grant revenues and brings the anticipated funding shortfall for FY 2013 to $490,900. Based on those facts, staff is recommending discontinuing providing Medicaid trips as of the expiration of the Agreement on June 30, 2012. It is anticipated that a number of the existing Medicaid riders that are being provided transportation service within the County will qualify under the TD program. Consequently, a portion of the local fund allocated to this program would be needed to compensate for this ridership shift. Conservatively speaking, if the County only realizes the savings of the out of county trips (3,344) there will be a saving of approximately $81,326 in payment to the contractor per trip plus an estimated $101,744 in cost per mile (fuel and vehicle maintenance) an estimated total of $183,070 in savings just by eliminating Medicaid out of county trips. Staff is currently working with a consultant to complete a Fare Equity Analysis. The FTA Circular 4702.1A requires all FTA recipients whose service area contains 200,000 or more residents to conduct a Title VI equity analysis in the course of planning a major service change or any magnitude of fare change. Equity analyses are required regardless of whether proposed changes would be detrimental or beneficial to riders. Financial exigencies and other special circumstances do not exempt recipients from the requirement to conduct equity analyses. Staff's preliminary evaluation in reviewing this matter includes recommending a fare increase to help offset the impact of the local budget together with the discontinuation of Medicaid transportation service �\ to further alleviate the fiscal impact to the County. During public meetings for the Fare Equity Analysis riders have emphasized the value of the paratransit service to the maintenance of their quality of life. Riders understand the financial issue that the County is facing and agree that an increase in fare would be warranted. Riders have also repeatedly expressed their support for the continuation of all paratransit services, including Medicaid, and indicated that they would rather the Board of County Commissioner increase fares for the service instead of eliminating the Paratransit program. Staff offered the following recommendations to the Local Coordinating Board (LCB) at its March 7, 2012 meeting: ❑ Provide Notice to the Florida Commission for the Transportation Disadvantaged and the community of the intent to discontinue providing Medicaid transportation service in Collier County. ❑ Effective July 1, 2012, discontinue providing Medicaid trips. ❑ The BCC to continue its role as the Community Transportation Coordinator for Collier County providing TD and ADA trips. ❑ Bring back a proposal for the implementation of a fare increase for FY 2013 upon completion of the Fare Equity Analysis. At the LCB special meeting held on March 21, 2012, the LCB Board voted 6 to 4 recommending the discontinuation of the Medicaid program. Packet Page -243- 3/27/2012 Item 11.D. Neighboring transit agencies such as Lee County and Sarasota County have experienced similar challenges and have decided not to offer Medicaid trips. Instead, the Medicaid trips are performed by private service providers such as Good Wheels and TMS. Please see matrix below illustrating status of neighbor counties. The Paratransit program is an essential service provided to the many citizens and visitors to Collier County. Without it many of our residents would have no access to medical, nutritional and other essential services. Recognizing the fiscal challenges that the County will continue to face in the upcoming years, the elimination of the Medicaid NET program is being recommended rather than a more drastic cut to the Paratransit program or the elimination of the program all together. By continuing to be the Community Transportation Coordinator for Collier County, the BCC will be able to operate a coordinated system and continue providing over 100,000 Transportation Disadvantaged and ADA trips to the citizens of Collier County. The Board of County Commissioners should also consider that the provision of Fixed Route Transit in areas not currently being serviced by that system will be an additional means for providing transportation services in a more efficient and cost effective way. FISCAL IMPACT: Discontinuing the Medicaid NET services contract would result in a cost savings of approximately $412,697, which is the total local contribution of $687,827 minus a potential 40% ($275,130) that would be utilized to compensate for the potential shift of riders to the TD program. Trips from out of county account for $183,070 alone. LEGAL CONSIDERATIONS• This item has been reviewed and approved by the County Attorney's Office, is legally sufficient for Board action and only requires a majority vote for approval —SRT. GROWTH MANAGEMENT IMPACT• There is no Growth Management Impact associated with this Executive Summary. Packet Page -244- ti �,y 4 Provide Tfi�1la�Sli�rovitles tNw'� 3 a �'° 47icaid medicaid* ledicaitlPacvadeE �s ransportation, M ► er 10'A es �. x ws. ���r� �� REP,!, t�„4t�, `"'� �sadvarge LEE COUNTY N N Good Wheels $1.00 N Good $2 Wheels MANATEE COUNTY Y N TMS $1.00 Y MCAT $2.00 oq COLLIER CollierArea COUNTY Y Y Paratransit(CAP) $1-� Y CAP $0to$6.00 SARASOTA COUNTY Y N Logisticare $1.00 Y SCAT $1.50 The Paratransit program is an essential service provided to the many citizens and visitors to Collier County. Without it many of our residents would have no access to medical, nutritional and other essential services. Recognizing the fiscal challenges that the County will continue to face in the upcoming years, the elimination of the Medicaid NET program is being recommended rather than a more drastic cut to the Paratransit program or the elimination of the program all together. By continuing to be the Community Transportation Coordinator for Collier County, the BCC will be able to operate a coordinated system and continue providing over 100,000 Transportation Disadvantaged and ADA trips to the citizens of Collier County. The Board of County Commissioners should also consider that the provision of Fixed Route Transit in areas not currently being serviced by that system will be an additional means for providing transportation services in a more efficient and cost effective way. FISCAL IMPACT: Discontinuing the Medicaid NET services contract would result in a cost savings of approximately $412,697, which is the total local contribution of $687,827 minus a potential 40% ($275,130) that would be utilized to compensate for the potential shift of riders to the TD program. Trips from out of county account for $183,070 alone. LEGAL CONSIDERATIONS• This item has been reviewed and approved by the County Attorney's Office, is legally sufficient for Board action and only requires a majority vote for approval —SRT. GROWTH MANAGEMENT IMPACT• There is no Growth Management Impact associated with this Executive Summary. Packet Page -244- 3/27/2012 Item 11.D. RECOMMENDATION: That the Board of County Commissioners not renew the Subcontracted Transportation Provider (STP) Agreement with the Florida Commission for the Transportation Disadvantaged (FCTD) and discontinue providing Medicaid Non Emergency Transportation (NET) services effective day end June 30, 2012; and, to direct staff to provide notice to the FCTD of this direction so that it is able to have sufficient time to contract with another provider. Prepared by: Glama Carter, Public Transit Manager Attachments: 1) Notification letter to the FCTD; 2) Medicaid Analysis Packet Page -245- COLLIER COUNTY Board of County Commissioners Item Number: 11.D. 3/27/2012 Item 11. D. Item Summary: Recommendation that the Board of County Commissioners not renew the Subcontracted Transportation Provider (STP) Agreement with the Florida Commission for the Transportation Disadvantaged (FCTD) due to expire on June 30, 2012 for the provision of transportation for qualified Medicaid recipients. (Michelle Arnold, Director, Alt Transportation Modes) Meeting Date: 3/27/2012 Prepared By Name: CarterGlama Title: Manager - Public Transit,Altemative Transportation Modes 3/7/2012 11:00:31 AM Submitted by Title: Manager - Public Transit,Altemative Transportation Modes Name: CarterGlama 3/7/2012 11:00:32 AM Approved By Name: BetancurNatali Title: Executive Secretary,Transportation Engineering & C Date: 3/9/2012 8:29:45 AM Name: ArnoldMichelle Title: Director - Alt Transportation Modes.Altemative Tr Date: 3/9/2012 11:01:38 AM Name: LaPierreBarbara Title: Management/Budget Analyst,Transportation Administr Date: 3/9/2012 11:26:07 AM Name: OberrathKaren Title: Senior Accountant, Grants Packet Page -246- ,,-IN Date: 3/9/2012 12:06:12 PM Name: FederNorman Title: Administrator - Growth Management Div,Transportati Date: 3/9/2012 1:09:37 PM Name: TeachScott Title: Deputy County Attorney,County Attorney Date: 3/9/2012 2:27:51 PM Name: MarcellaJeanne Title: Executive Secretary,Transportation Planning Date: 3/13/2012 3:56:06 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 3/14/2012 2:53:43 PM Name: TeachScott Title: Deputy County Attorney,County Attorney Date: 3/15/2012 4:51:14 PM �-. Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 3/16/2012 1:21:30 PM Name: KlatzkowJeff Title: County Attorney Date: 3/16/2012 3:38:27 PM Name: OchsLeo Title: County Manager Date: 3/19/2012 2:29:40 PM Packet Page -247- 3/27/2012 Item 11.D. 3/27/2012 Item 11.D. Month FY 2011 MEDICAID Month MD CAP CC Subsid Total Billed Trips Average Cost / Trip October 42,272 59,117 101,389 2,282 44.43 November 42,272 49,674 91,946 2,082 44.16 December 42,272 45,259 87,531 2,017 43.40 January 42,272 53,672 95,944 2,113 45.41 February 42,272 51,040 93,312 2,058 45.34 March 42,272 56,321 98,593 2,303 42.81 April 42,272 62,968 105,240 2,378 44.26 May 42,272 58,392 100,664 2,244 44.86 June 42,272 59,474 101,746 2,423 41.99 July 42,272 59,576 101,848 2,515 40.50 August 42,272 72,306 1141578 2,880 39.78 September 40,241 60,028 100,269 2,322 43.18 Total 505,233 687,827 1,193,060 27,617 43.20 Month FY 2012 MEDICAID PROJECTED MD CAP CC Subsid Total Billed Trips Average Cost / Trip October 40,241 54,937 95,178 2,321 41.01 November 40,241 54,870 95,111 2,349 40.49 December 40,241 49,621 89,862 2,306 38.97 January 51,006 48,642 99,648 2,611 38.16 February March April May June July August September Total 171,729 208,070 379,799 9,587 39.62 Annualized (Total /4 *12) 515,187 624,209 1,139,396 28,761 39.62 Packet Page -248- 3/27/2012 Item 11.D. Co per County Growth Management Division Construction & Maintenance Alternative Transportation Modes March 2, 2012 Steven Holmes Executive Director Commission for the Transportation Disadvantaged 605 Suwannee Street, MS-49 Tallahassee, FL 32399 -0450 Subject: Notice of Collier County Community Transportation Coordinator Intent to Discontinue provision of Medicaid Non - Emergency Transportation (NET) Services Dear Mr. Holmes: The Collier County Board of County Commissioners is the Community Transportation Coordinator (CTC) for Collier County and has entered into an Agreement with the Commissioner for the Transportation Disadvantaged (CTD) to provide Medicaid Non - Emergency Transportation (NET) Services to residents and visitors in Collier County. The Agreement is due to expire on June 30, 2012. Please be advised that the Collier County Alternative Transportation Modes Department is scheduled to bring an agenda item to the Collier County Board of County Commissioners on March 27, 2012 recommending discontinuing the provision of to Medicaid NET service for the community. While the demand for these services has increased over the last 3 years ,funding remains stagnant at both the State and Local levels. This makes providing Medicaid NET services under the current contract difficult to continue. Please accept this letter as the initial notice of Collier County's intent to discontinue the provision of Medicaid NET service upon expiration of the existing agreement. Formal action must be taken by the Collier County Board of County Commissioners to accept this recommendation. We will notify you of the Board's decision as soon as one is reached. Thank you for your time and consideration. Sincerely, Michelle Edwards Arnold, Director Alternative Transportation Modes Department cc: Julia Davis, Transit Project Coordinator, Florida Department of Transportation Glama Carter, Transit Manager r/ Thomas Stringer, General Manager, Keolis Transit America ANnawe Transp d4m Nodes • 2885 South Horseshoe n i­• "'—'°° ' "'04.239- 252 -8192 • FAX 239 - 252 -5899 • www.coiliiergov.net Packet Page -249- 3/27/2012 Item 11.D. 11 IN a0 (D rt , ID t n (D 'c < � � � � � BCD rt rt `<• . O (D r..i. 70 W (. -0• rt Fu 0- ( 0 c 0 O 0" p CL U (D �. O' 2 xz { `.psi.: ., #t% ,,..tit , �=, #ra .Y, i � nz._._z�`.��,� .� "3�'• rS 3/27/2012 Item 11.D. r-*N OR SON wn ll ®R 4 3/27/2012 Item 11. D. (D N (n Vn = O (D \ (D O 0 D O (D 3"M '4, ,' (D O M M rt O ..s� X• n ' CL rn � Di o lCr Xn a (D ;O :O O x 3 iii O f C^ rt 'n Qrt _ (D N (n Vn = O CL 0) (D D O (D 3"M rt (D N (n = O CL 0) (D Cr 7 fD O ..s� ;i' Packet Page -253- 3/27/2012 Item 11. D. 3/27/2012 Item 11. D. 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