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HomeMy WebLinkAbout20090601 - VIII-C-2To: Mayor Hicks and City Councilmembers From: Dave Osberg Melanie Mesko Lee Date: May 27, 2009 Re: Metropolitan Council Dial-A-Ride Funding Formula Changes Council Action Requested: None-verbal update swill be provided. Background Information Staff wwill provide a verbal report on a recent proposal by the Metropolitan Council to restructure the dial-a-ride funding formula, which would impact the City's TRAC transportation system. For Council's reference, included are tit~o items of communication on this issue: • Apri18, 20091etter from Mayor Hicks to Metropolitan Council, articulating the City's concerns and questions with the proposed funding restructure; and • Apri123, 20091etter from Metropolitan Council to Mayor Hicks, in response to the City's Apri181etter Additional information will be presented at the June 1 Council meeting. w.. ___ , s._. .,,_ ...., _ .~ , . _ ... .. , .n _ City of Hastings OFFICE OF THE MAYOR ~_~ .~r~- ,., -~ } _~ ~~ H:-~~TWG ~ ~ ON THE April 8, 2009 ~, ~.~ "~ ~~iss~ssi~ri r 101 4th Street East • Hastings, ti{innesota 55033-1955 Mr. Judd Schetnan 651-4so-'350 • Fax: 651-X37-70th' Government Affairs Director Metropolitan Council 390 Robert Street North St. Paul, Minnesota 55101 Dear Mr. Schetnan: Thank you for the opportunity to visit at the State Office Building on Tuesday March 3 1, 2009 regarding HF 1898 and the Metropolitan Council's intent to make changes in the Community Based Transit Statutes. As you know, the City of Hastings is extremely concerned with the drastic changes being proposed by the Metropolitan Council that would change the funding allocation to our transit program, in a manner so significant that would essentially eliminate the program in the City of Hastings. During the course of the conversation while at the State Office Building, there were a variety of questions and comments being made, and it was agreed the best means to address the issues being raised by the City, would include the preparation of a letter by the City of I-Iastings, outlining our questions, and thus providing the Metropolitan Council with an opportunity to respond accordingly. With that understanding, let me offer the following comments and specific questions to the Metropolitan Council. a.) Does the Metropolitan Council require approval of the legislation outlined in HF 1898 and SF 161 in order to provide the Metropolitan Council with greater flexibility in the administration of community based transit programs? In the event legislation is not adopted, would the Metropolitan Council proceed with the proposed changes, regardless? b.) The proposal suggests that one of the goals of the restructured program would result in a more streamlined and equitable level of dial-a-ride service. Yet, in the staff memorandum recommending approval of the Performance Based Funding Subsidy Agreements, it states the current subsidy amounts are in compliance with the mandate of equitable subsidies for comparable services in the PBF program. To what extent have those parameters changed over the years, and how will the restructured program assure those goals can be met, if they are not in fact currently being met? An Equal Opportunity Employer c.) If this new transit plan is implemented by the Metropolitan Council, what impact would it have on the existing transit program in the City of Hastings? Can the Metropolitan Council guarantee that the high standards of transit service in our community will be matched with the new program`? If not, what level of service can the citizens of the City of Hastings expect with the new transit program`? d.) Will the new transit program provide for any type of fixed route s}stem in our City`? Will the new transit program provide for any type of fixed route system providing service outside of our City limits? e.) There are a variety of Cities and providers impacted by this proposed change. In the summary document created by the Metropolitan Council for distribution at the hearing last week, one of the goals identified states: "bring about better involvement by local (county) staff to assure that consumer needs are met." Why are Cities and other providers not involved in that discussion during the implementation stage aild beyond'? f) Does the Metropolitan Council have any suggestions or proposed adjustments to our existing transit service in the City of Hastings that would alleviate any of the concerns your Staff may have with our program that if implemented, would result in no change to our existing funding from the Metropolitan Council'? g.) What are the consequences of delaying this program, if in fact the concept is not totally eliminated? There is significant work that needs to be completed to meet the deadline of January 1, 2010 established by the Metropolitan Council? By its own admission, Metropolitan Council Staff realize the significance of that goal, and have acknowledged implementation may take place during the first quarter of 2010. h.) In the event implementation of the new program is not going to be delayed, or eliminated completely, when can the City can expect to learn of the level of service that will be provided to our citizens, and furthermore, describe the process that will be used to determine how future changes in service will be evaluated and adjusted? Thank you for the opportunity to submit our concerns and questions. We look forward to continuing this dialogue with the Metropolitan Council, to assure the citizens of Hastings have an opportunity to participate in a transit program which will match the program offered in partnership with the Metropolitan Council throughout the years. Sincerely, TH~ Y OF HASTINGS aul J. Hicks Mayor ec. City Councilmembers Melanie Mesko Lee Dave Osberg ~~ Metropolitan Council u Apri123, 2009 Paul J. Hicks, Mayor City of Hastings 101 4`h Street East Hastings, MN 55033-1955 Dear Mayor Hicks, Thank you for your letter to Mr. Schetnan dated April 8 regarding the Council's plan to restructure dial-a-ride services in the metropolitan area. As you know, we presented this plan at the Legislature, in part, to ensure an open and transparent approach to our process. We understand that dial-a-ride services are very important to many individuals in the region and that a change to existing programs raises concerns. Please be assured that Hastings will continue to have dial-a-ride service with our restructured plan. That service will be a part of a larger service delivery structure so that Hastings residents and employees will be able to travel beyond the city boundaries and also connect with the regular route transit system. Additionally, people outside of Hastings will be able to travel to Hastings - an option that DARTS does not make available today. The level of service will be determined by the demand proportional to similar demand in other areas. Following are your questions and our responses: a) Does the Metropolitan Council require approval of the legislation outlined in HF 1898 and SF 161 in order to provide the Metropolitan Council with greater flexibility in the administration of community based transit programs? In the event legislation is not adopted, would the Metropolitan Council proceed with the proposed changes, regardless? Current state law allows the Council to restructure dial-a-ride services as appropriate and that regardless of whether the proposed legislation is enacted the dial-a-ride restructure plan can be implemented. b) The proposal suggests that one of the goals of the restructured program would result in a more streamlined and equitable level of dial-a-ride service. Yet, in the staff memorandum recommending approval of the Performance Based Funding Subsidy Agreements, it states the current subsidy amounts are in compliance with the mandate of equitable subsidies for comparable services in the PBF program. To what extent have those parameters changed over the years, and how will the restructured program assure those goals can be met, if they are not in fact currently being met? www. metroco uncll. org 390 Robert Street North • St. Paul, MN 55101-1805 • (651) 602-1000 • Fax (651) 602-1550 • TTY (651) 291-0904 An Equal Opportunity Employer ' Regional Dial-a-Ride April 23, 2009 Page 2 The Council 's primary objectives are to create a more streamlined, efficient, effective and equitable level of dial-a-ride service throughout the seven county area. This objective is not contradicted by the statement found in Council action 2008-278. The sentence cited in your question afjirms that the fourteen programs included in the Council 's 2009 funding program are subsidized at or near the same amount per passenger. However, this does not suggest that there is an equitable distribution around the metro area. To the contrary, one significant problem with today's arrangement is that there is no competitive process for obtaining these funds and the current structure is an impediment to ensuring efficient, effective, and equitable distribution of these funds. Council staff recently analyzed how the funding received by Hastings compares to the metro area as a whole. The Council 's annual per capita funding in Hastings is $11. S8. If the Council were to provide a comparable level of support to all residents in dial-a-ride eligible areas (no all-day fixed route service available), the cost to the region would be nearly $10.8 million. The 2009 Council budget for dial-a-ride service in the seven county area is $4.7million. Our funding would need to more than double to provide the rest of the eligible areas with dial-a-ride service comparable to what Hastings receives today on a per capita basis. c) If this new transit plan is implemented by the Metropolitan Council, what impact would it have on the existing transit program in the City of Hastings? Can the Metropolitan Council guarantee that the high standards of transit service in our community will be matched with the new program? If not, what level of service can the citizens of the City of Hastings expect with the new transit program? Hastings will have service as part of a larger service area and service delivery contract. Current standing order trips will be grandfathered into the new service plan. The Council can not guarantee the same level of service that the city enjoys today and at the same time provide more equitable funding around the seven county metro area. The Coordinating Advisory Committee (CAC) will establish a set of standard operating procedures to be implemented by all dial-a-ride programs. The restructured service program will offer curb to curb service with limited assistance. Council staff will recommend that there be a limit on the number of standing orders to preserve room for non-routine trip requests, a fare structure that places a surcharge on longer distance trips, and discounts for customer-organized group trips from and to the same address. Council staff will also recommend establishing service quality standards within the terms of the operating agreements. These would include on-time pickups, passenger on-board times, transfer policy, customer comment response time, etc. Regional Dial-a-Ride April 23, 2009 Page 3 Of course, the city of Hastings could choose to supplement the dial-a-ride service by reinvesting the funds that it contributes today for transit services toward a small program targeted to a specific population that the city is particularly concerned about. Any such service would be free from Council reporting and requirements as well as many associated federal requirements. d) Will the new transit program provide for any type of fixed route system in our City? Will the new transit program provide for any type of fixed route system providing service outside of our City limits? The city of Hastings is not included in the Transit Taxing District (TTD) and as such does not contribute to the capital infrastructure necessary to provide transit service in the metropolitan area. Referring to the attached map, you will see that some communities within the TTD currently receive no all-day transit service - either dial-a-ride or fixed route. The Council 's restructuring will partially address this inequity. Dial-a-ride service is the type of service provided in areas where densities are not conducive to support fixed route services. Therefore, fixed route service and dial-a- ride service do not generally overlap each other, but should coordinate with each other to maximize efficiencies, ensure a transit option and yet avoid duplication. The proposed restructuring plan emphasizes the need for better coordination between dial-a-ride and fixed route services. Enhanced coordination and the elimination of a city-only service boundary will allow residents to travel elsewhere within the region by using dial-a-ride to access fried route connections. e) There are a variety of Cities and providers impacted by this proposed change. In the summary document created by the Metropolitan Council for distribution at the hearing last week, one of the goals identified states: "bring about better involvement by local (county) staff to assure that consumer needs are met." Why are Cities and other providers not involved in that discussion during the implementation stage and beyond? Council staff first presented information regarding the study of dial-a-ride programs at a Metropolitan Council Transportation Committee meeting and Transportation Provider Advisory Committee (TPAC) during the first quarter of 2007. All providers are invited and encouraged to attend these recurring monthly meetings. A second and more refined plan was presented to the Council 's Transportation Committee during the~rst quarter of 2008. In early February 2009, the Council's Transportation Committee recommended approval of the dial-a-ride restructure plan. All cities, counties and non profit organizations currently funded were sent notice prior to that meeting and were also " Regional Dial-a-Ride April 23, 2009 Page 4 invited to the February 17 meeting of current dial-a-ride providers to discuss the restructure plan prior to Council approval. At stated at that meeting, additional meetings with the current providers will be scheduled in the coming months. Hastings will have an important role, as a current provider, during the transition phase of the plan. The accuracy of data provided to the Council and communication with current customers will greatly impact the success of the restructured service. By participating on the Coordination Advisory Committee (CAC) the counties will, on an ongoing basis, carry forward the concerns of member communities. Feedback from communities to county staff will help shape the program and assure that needs are met to the greatest extent possible. We also intend to have a joint meeting with both the CAC and current providers to share information and enhance future communication. f) Does the Metropolitan Council have any suggestions or proposed adjustments to our existing transit service in the City of Hastings that would alleviate any of the concerns your Staff may have with our program that if implemented, would result in no change to our existing funding from the Metropolitan Council? The Council must look at the region as a whole. The Council is currently spending a disproportionate share of its transit resources in the city of Hastings and does not feel it should continue this past practice. With adoption of the restructured service, it is the Council 's intention to distribute funds throughout the seven county area on amore efficient, effective and equitable basis. Additionally, the restructured system will be less fragmented and reduce inefficient and duplicative administrative oversight. Stand-alone programs do not meet the needs of many residents as there is often the need to cross municipal boundaries for employment and medical appointments in particular. The Council 's plan will allow residents to cross artificial boundaries and connect with fixed route transit. g) What are the consequences of delaying this program, if in fact the concept is not totally eliminated? There is significant work that needs to be completed to meet the deadline of January 1, 2010 established by the Metropolitan Council? By its own admission, Metropolitan Council Staff realize the significance of that goal, and have acknowledged implementation may take place during the first quarter of 2010. The CAC will begin meeting in April and will refine the implementation schedule in the first four to six weeks. Through this process, and to assure a smooth transition, the Council has the option to extend some existing contracts into the first quarter of 2010. All programs will be informed of the proposed timeline and possible contract extensions, such that 2010 operating budgets can be appropriately established. Regional Dial-a-Ride Apri123, 2009 Page 5 h) In the event implementation of the new program is not going to be delayed, or eliminated completely, when can the City expect to learn of the level of service that will be provided to our citizens, and furthermore, describe the process that will be used to determine how future changes in service will be evaluated and adjusted? Council and county staff will work with existing programs to transfer current client information to the Council 's reservation, scheduling and dispatch software. As we discussed previously, all current standing orders will be honored on the new system. The CAC will frnalize the funding formula during the first few meetings. The funding distribution will essentially dictate the number of hours and buses made available to each county. The CAC will also establish the hours and days of service availability within the first few weeks. These details will be shared as decisions are made. The Council has extensive experience in delivering dial-a-ride service with private contractors. Council managed dial-a-ride programs delivered 70, 000 rides in 2008. There are a number of mechanisms that can be built into service contracts that will allow the flexibility necessary to shift funding between areas. The contract holds service providers accountable for productivity thresholds, providing assurances that resources are used appropriately. The CAC will monitor closely those productivity levels, along with the level of demand and unmet needs and will adjust funding levels annually as appropriate. We understand that you and the Hastings City Council may have additional questions. Metropolitan Council staff is certainly willing to meet with you to discuss further. Please contact Arlene McCarthy (651-602-1754) or Gerri Sutton (651-602-1672) to schedule a meeting with you andlor city staff. Since , Thomas H. Weaver Regional Administrator Attachment: Map of Transit Taxing District and Transit Service Areas cc: Dave Osberg Judd Schetnan Arlene McCarthy Gerri Sutton Dan Krom Publicly Funded Dial-A-Ride Service Miles 0 5 10 20 Dakota DARTS Hastings Hennepin Washington 0 Senior Transportation Program ~ HSI West Hennepin DR 4/10/09 outside of the Transit Taxing O All Day Fixed Route Service Area O Transit Taxing District No Fixed Route °~-~ or DAR Service Anoka Carver Scott 0 Anoka County Traveler 0 Carver County ~ Scott County