Agenda 12/16/2008 Item #10D
Agenda Item No. 10D
December 16, 2008
Page 1 of 11
EXECUTIVE SUMMARY
Recommendation for the Collier County Board of County Commissioners to approve fare
increase and limited reduction in Sunday Service to address the reduced Collier Area
Transit Fiscal Year (FY) 2008-09 budget.
OBJECTIVE: To obtain Collier County Board of County Commissioners' approval to an
increase to the fare structure for the Collier Area Transit (CAT) service and limited service
reduction in Sunday Service to address the reduced CAT FY 2008-09 budget.
CONSIDERATIONS: In February 2001, CAT began operating fixed-route service for Collier
County. Since its inception in 2001, CAT's annual ridership has increased from 97,571 to
1,166,358, an increase of more than 1,100 percent. The reception for transit service in Collier
County has been very good. The County is providing an alternative means of transportation
services to its residents and visitors and the community's desire is continued growth and
maintenance of the current investment.
With recent budget constraints as a result of Amendment I and the suffering economy, Collier
County's Fiscal Year (FY) 2009 budget had to be decreased to adjust to the overall reduction in
anticipated Ad Valorem Taxes, FY 2009 Collier Area Transit's budget was initially decreased
$415,000.
In order to operate with this reduced budget, routes have to be cut. The following route
reductions options were considered and Option 3 was selected because it impacted the fewest
riders.
~ Option 1
. Eliminate Sunday Service - all routes (affecting 79,000 passengers)
~ Option 2
. Eliminate Sunday Service on routes 7 and 6; eliminate route 4B and reduce hours
on route 6 (affecting 109,000 passengers)
~ Option3
. Eliminate route 4B; modify alignment of route 6 and cut back service hours
(affecting 41,500 passengers)
The details of the selected option are as follows:
~
~ Eliminate Route 4B (cost to operate - $277,420)
. Route 4B currently runs from the Collier County Government Complex east along
US 41 to Collier Boulevard and includes stops along Rattlesnake Hammock Road
before proceeding back to US 41 and ending at the Government Complex.
~ Realignment of Route 6
. Cut Service on Collier Boulevard from Golden Gate Parkway to Pine Ridge Road,
. Cut Service from Physicians Regional on Pine Ridge west to Livingston Road to
Vanderbilt Beach Road,
Agenda Item No. 10D
December 16, 2008
Page 2 of 11
... Reduce Service Hours (total cost to Route 6 reduction operation - $152,490)
. Operate during peak travel periods from 6 a.m. to 9 a.m. and from 3 p.m. to 7:30
p,m. Mondays through Saturdays.
. Operate on Sundays from 9 a.m. to 4:25 p,m.
As a part of the route reduction process, the County is required to conduct public participation to
inform the public of intended cuts and to solicit their input. On November 10, 2008 the
Alternative Transportation Modes (ATM) Department held a public meeting to review the
proposed route changes, Approximately 20 people attended and voiced concern with the
proposed reductions.
During the meeting, comments were made about the proposed elimination of Route 4 B and how
this route elimination would increase the amount of time it takes to get to destinations. There
was also a petition with 100 signatures submitted that objected to the reduction of hours of
operation for Route 6. Concern was noted to the modification to Route 1 and a request was
made to continue the loop system. A recommendation to consider the elimination of B routes for
Sunday service was suggested as an alternative to meet the proposed budget reduction. Staff
advised the public that their concerns would be forwarded to the Commissioners.
The public was also provided surveys on the buses and via the Internet to obtain input. A total of
350 surveys were returned, all expressing concerns with the reduction of service and noting the
impacts the reduction would have on their ability to get around in the community.
Of the survey respondents, 80% use the system 5 days a week or more. Another 16% use the
system 2 to 4 days a week. We asked the public to let us know what they used the bus to do and
the following responses were provided. Based on the responses provided, an overwhelming
number of riders are using the system to complete the following essential trip purposes.
Trip Purpose Response Response
Percent Count
Work 84,9% 292
School 30.8% 106
Medical 58.7% 202
Shopping 68.3% 235
Dining 41.9% 144
Other 27.6% 95
Skipped Question N/A 6
On November 18, 2008, the BCC discussed turn back funds and made a decision to reinstate
$311,250 to the Transit budget. This resulted in a $103,750 budget reduction with less change
needed to the existing route structure than previously determined. As a result of the change to
the amount of budget reduction, staff re-evaluated possible route modifications with the public
input in mind.
The following option is being proposed to meet the $103,750 Transit budget reduction:
Agenda Item NO.1 aD
December 16, 2008
Page 3 of 11
~ Realignment of Route 6
o Cut Service on Collier Boulevard from Golden Gate Parkway to Pine Ridge Road
o Cut Service from Physicians Regional on Pine Ridge west to Livingston Road to
Vanderbilt Beach Road.
~ Eliminate Route IA Sunday service
o This route runs a loop from the government complex to Airport Road north to
Immokalee Road then south bound on US 41 back to the government complex.
~ Eliminate Route 2B Sunday service
o This route runs a reverse route to Route 2A and travels from the Collier County
Government Complex heading east on US 41 with stops along Thomasson Drive and
Bayshore Drive. This route also travels north on US 41, utilizes Goodlette-Frank
Road, and Fleishmann Boulevard. The route travels US 41 with Naples Community
Hospital being one of the major service areas. The route also travels Davis Boulevard
and Airport Pulling Road, and ultimately returns to the transfer station at the Collier
County Government Complex via US 41.
~ Eliminate Route 4B Sunday service
o This route runs reverse route of Route 4A and travels from the Collier County
Government Complex east along US 41 to Collier Boulevard and includes stops along
Rattlesnake Hammock Road before proceeding back to US 41 and ending at the
Government Complex. The route serves Naples Manor, K-Mart at Freedom Square,
Super Wal-Mart at US 41, Edison College, and Physicians Regional Medical Center
on Collier Boulevard.
~ Reduce the hours of operation for the realigned Route 6 Sunday service by one hour.
o This route would run from 7:30 a.m. to 4:25 p,m. at 90 minute frequencies.
Fare Increase
During the Budget process, the Board directed staff to initiate a fare increase to help offset the
increasing cost to operate the transit system. The process to initiate a fare increase requires
approximately (6) six months to complete the following steps:
. Evaluate the use of the current fare structure
. Design possible fare structure options (including estimating additional revenue)
. Present options through public process
. Review public feedback and adjust options as needed
. Bring options forward to the Board for decision
. Get information to the public on any determined changes to fare structure (including legal
ads)
. Print new fare structure information and any new fare media (such as weekly passes)
. Initiate fare increase
Staff has presented options through the public process and adjusted the options based on public
Agenda Item No. 10D
December 16, 2008
Page 4 of 11
feedback. A proposed fare increase with multiple options was presented through the
Metropolitan Planning Organization (MPO) public participation process with opposition to the
increase from the Technical Advisory Committee (T AC); the Pathways Advisory Committee
(PAC) and the Citizen Advisory Committee (CAC). All committees felt that there was no
justification for the increase and not enough data to support the need for an increase.
On September 12, 2008 the scenarios were presented to the MPO Board with information
supplementing the justification for an increase that the other committees did not receive. The
MPO Board voted to accept the proposed fare increase Scenario 2 which included a twenty-five
cent increase to full fares, a fifteen cent increase to reduced fares, and a weekly pass priced at
$12 for full fare and $6 for a reduced fare. This MPO approved Scenario 2 is very similar to
Option A in the options presented here for your consideration; however the proposed charge for
the weekly pass under Option A is $] 5.00 for full fare and $7.50 for a reduced fare. The
scenarios presented to the MPO Board have been modified based on additional staff evaluation
and due to public input received after the MPO meeting in September. It should be noted that
staffs evaluation concluded that the cost to produce weekly passes would not be as beneficial
without the charge for transfers. This conclusion resulted in the development of the five options
included in this executive summary.
During the public meeting to discuss route reductions, the public suggested increasing fares and
charging for transfers as a way to offset the cost to operate and provide revenue to keep the
routes that were being proposed to be cut. The citizen comments did not suggest a specific
amount to charge for transfers. The fare structure options being provided for BCC consideration
is responsive to the citizen recommendations and provides three (3) different charges for
transfers.
A Public Information Meeting was held on December] 0, 2008 to solicit further input from the
public on the fare increase options being proposed. In addition to the public meeting, surveys
were distributed to the public on the buses as well as being provided on the County's website,
Feedback received at that meeting and through the survey will be provided to the BCC at the
public meeting where this Executive Summary will be considered because there was insufficient
time between the public meeting and the deadline for this agenda packet to include the results
with this Executive Summary.
The following fare rate options have been adjusted from public comment and are being
recommended for the BCe's consideration,
. Increase the Full Fare and the Full Fare tokens by 25 cents
. Increase the Reduced Fare for children under 17 years of age by 15 cents
. Increase the Reduced Fare for the elderly by 15 cents
. Possible charges for Transfers (currently passengers receive one free transfer with
each paid fare)
. Possible charge each time you board the bus instead of one free transfer for each paid
fare
. Introduction of a weekly pass, $15 for Full Fare and $7.50 for those passengers
eligible for Reduced Fare
Agenda Item No. 10D
December 16, 2008
Page 5 of 11
.' ....... Option
Option (C) Option (D) 00.
Option (A) increase to Increase to Increase
,j to Full
"c '. ... increase to ... Optioll (B) .' Fnll and >< ....... Fulland
urrent and
Fare Strncture Fare Full and . Eliminate Rednced Fare Reduced Reduced
Structnre Reduced Transfers with .25 Fare with Fare With
Fare Transfer' .. .50 Transfer
.. .75
.... Charl!e Charl!e Transfer
. Charl1e
'.. .
Full Fare $1.25 $1.50 $1.25 $1.50 $ 1.50 $1.50
Youth Reduced Fare
(under a!!e 17) $0.60 $0.75 $0.60 $0.75 $0.75 $0.75
Elderly/Disabled
Reduced Fare $0.60 $0.75 $0.60 $0.75 $0.75 $0.75
Children 5 years of
age and voun!!er Free Free Free Free Free Free
Full Fare Token $1.25 $ 1.50 $1.25 $1.50 $ 1.50 $ 1.50
Reduced Fare Token $0,60 $0.75 $0.60 $0.75 $0.75 $0.75
Transfers Free Free NO PASSES $0.25 $0.50 $0.75
Day Passes - Full Fare $4.00 $4.00 $4.00 $4.00 $4.00 $4.00
Youth Day Pass - 1
Reduced Fare $2.00 $2.00 $2.00 $2.00 $2,00 $2.00
Elderly/Disabled Day I
,
Pass - Reduced Fare $2.00 I $2.00 $2,00 $2.00 $2.00 $2.00
Weekly Pass - Full
Fare $0.00 $15.00 $15.00 $15.00 $15.00 $15.00
Weekly Pass-
Reduced Fare $0.00 $7.50 $7.50 $7.50 $7.50 $7.50
Monthly Pass - Full
Fare $35.00 $35.00 $35,00 $35,00 $35.00 $35,00
Youth Monthly Pass - I
Reduced Fare $17.50 $17.50 $17.50 $17.50 $17.50 $17.50
Elderly/Disabled
Monthly Pass -
Reduced Fare $17.50 $17.50 $17.50 $17.50 $17.50 $17.50
Marco Express Full i
Fare $2.50 $2.50 $2.50 $2.50 $2.50 $2.50
Marco Express
Reduced Fare $1.25 $1.25 $1.25 i $1.25 $1.25 $1.25
Marco Express
Monthly Pa~s - Full
Fare $70,00 $70.00 $70.00 $70.00 $70.00 $70.00
Marco Express I I
I Monthly Pass -
I
Reduced Fare $35.00 $35.00 I $35.00 $35,00 $35.00 $35.00
Agenda Item No. 10D
December 16, 2008
Page 6 of 11
Staff prepared the following chart showing estimated additional revenues that might be generated
by the five different options. The estimated farebox revenues assume the same passenger
boardings as FY08, which was slightly less than in FY07. Generally in the transit industry
whenever a fare increase is introduced, there is an accompanying ridership loss of approximately
5% of the total passenger boardings. Therefore, the chart below shows estimated revenues both
with and without a ridership loss. In August 2006, when Collier Area Transit last increased
fares, a decrease in passenger boardings was not measurable.
Estimated Additional Revenue Generated from the Five Options
With and Without a Ridership loss
S3OD,OODmr"'
$257,927
$50,000 m m
$195j544
$206,507
$250,000
$2oo,000.r.
$150,000"
$100,000
$0
Option A
OptionB
OptionC
Option D
Option E
. Estimated Increase in Revenue with No Ridership Loss
Estimated Increase in Revenue with 5% loss in Ridership
Option A includes a twenty-five cent increase to the full fare and a fifteen cent increase to the
reduced fare. In Option A, the fare increase with no ridership loss is estimated to generate
approximately $158,000 in new farebox revenue and the fare increase with a five percent (5%)
ridership loss is estimated to generate approximately $ I 11,000.
Option B which involves a $ 1.25 full fare each time the rider boards the bus results in less
revenue gained, because the full fare remains as it is under current rates.
Option E is estimated to have the greatest potential farebox revenue increase. Option E includes
a twenty-five cent ($0.25) increase to the full fare, a fifteen cent ($0.15) increase to the reduced
fare, introduces a weekly pass for full and reduced fares, and a seventy-five cent ($0.75) increase
for full fare transfers, which are currently free. In Option E, the fare increase with no ridership
loss is estimated to generate approximately $258,000 in new farebox revenue and the fare
increase with a five percent (5%) ridership loss is estimated to generate approximately $207,000.
Agenda Item No. 10D
December 16, 2008
Page 7 of 11
It should be noted that the above estimates are based on collections over a full fiscal year and
will not be available for most of Fiscal Year 2008-09. As such, it can not be relied upon to
prevent the recommended service reductions in FY 08-09 nor will it recover the one time
amount of $311,250 turn back funds or the $415,000 budget reduction in FY 09-10 and
beyond without additional funding or further service reductions.
From the passenger's perspective, a full-fare passenger could expect to pay anywhere from $0.50
more per day for Option A to $2.50 more per day for Option B. Reduced-fare passengers would
experience a similar increase to their daily costs. The chart below shows the costs per day for a
full-fare passenger.
Full-Fare Passenger Costs Per Day with Option A through Option E
Compared to Current Full-Fare Passenger Cost Per Day
(Based on 2 trips per day with 2 transfers)
$5.00'r"
I
,.
$4.50t
$4.00 ~.
,
$3.50 !
$3.00
$2.50
$2.00
$1.50
$0.00
Option A
$4.00
_ $3.50
$4.S0
Option E
!--~_._---'_._------_._-----~-- --------- ----I
Current Daily Cost for Passenger . New Cost to Passenger with Option
--...---.---------..--....----.-.......-----------------
Option 8
Option C
Option 0
FISCAL IMPACT: The fiscal impact of increasing Collier Area Transit fixed-route fares is
anticipated increased farebox revenue. Depending on the option selected by the Board, revenue
collected will be deposited in Fund 426 Project 61011, Farebox Revenue Account.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office, is not quasi-judicial and requires no ex parte disclosure, requires only a
majority vote for approval, and is otherwise legally sufficient for Board action,-SRT
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated
with this Executive Summary.
Agenda Item No. 10D
December 16, 2008
Page 8 of 11
RECOMMENDATION: That the Board of County Commissioners authorizes the reduction of
service on Sundays to comply with the $103,750 Transit budget reduction resulting in the
following modifications:
~ Realignment of Route 6
~ Eliminate Route lA Sunday service
~ Eliminate Route 2B Sunday service
~ Eliminate Route 4B Sunday service
~ Reduce the hours of operation for the realigned Route 6 Sunday service by one hour.
Additionally, authorize a fare increase from one of the options provided.
Prepared by: Michelle Arnold, ATM Director
Sue Faulkner, Principal Planner
Attachment: MPO Board Scenarios from September 12, 2008
Item Number:
Item Summary:
Meeting Date:
Page 1 of2
Agenda Item No. 10D
December 16, 2008
Page 9 of 11
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10D
Recommendation for the Collier County Board of County Commissioners to approve a fare
increase and limited reduction in Sunday Service to address the reduced Collier Area Transit
Fiscal Year (FY) 2008-09 budget. (Norman Feder, Transportation Services Administrator)
12/16/2008 9:00:00 AM
Prepared By
Sue Faulkner
Transportation Services
Principal Planner
Alternative Transportation Modes
Date
12/1/200811:18:27 AM
Approved By
Barbara LaPierre
Transportation Services
Management/Budget Analyst
Traffic Operations
Date
12/1/20083:10 PM
Approved By
Date
Scott R. Teach
County Attorney
Assistant County Attorney
County Attorney Office
12/2/20088:17 AM
Approved By
Michelle Edwards Arnold
Transportation Services
Alternative Transportation Modes
Director
Date
Alternative Transportation Modes
12/2/2008 5:0S PM
Approved By
Date
Norm E. Feder, AICP
Transportation Services
Transportation Division Administrator
Transportation Services Admin.
12/2/20085:06 PM
Approved By
Brian Hancock
Transportation Division
Operations Support Manager
Transportation Administration
Date
12/3/20088:47 AM
Approved By
Therese Stanley
Transportation
Grants Coordinator
Date
A pproved By
Transportation Administration
12/3/200810:14 AM
Pat Lehnhard
Transportation Services
Executive Secretary
Transportation Services Admin
Date
12/3/200810:27 AM
Date
Approved By
OMS Coordinator
Administrative Services
Applications Analyst
Information Technology
12/3/20084:01 PM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
Date
12/5/20085:30 PM
Appro\'ed By
James V. Mudd
County Manager
Date
fiJe://C:\AgendaTest\Export\ 118-December%20 16,%202008\ 1 0.%20COUNTY%20MAN...
12/10/2008
Page 2 of2
Agenda Item No. lOD
December 16, 2008
Page 10 of 11
Board of County
Commissioners
County Manager's Office
12/6/20081:48 PM
file://C:\AgendaTest\Export\ 1 18-December%20 16,%202008\ 1 0.%20COUNTY%20MAN... 12/1 0/2008
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