Title
Contract Amendment with Regional Public Transportation Authority for the Purchase of Fixed Route Bus Transit Service for Fiscal Year 2023-24 (Ordinance S-49775)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 143071 with the Regional Public Transportation Authority for the purchase of bus transit services operated by this agency within Phoenix for FY 2023-24. Further request to authorize the City Controller to disburse all funds related to this item. The funding for FY 2023-24 will not exceed $11,327,969.
Report
Summary
Transit services are customarily purchased and sold between regional transit agencies where adding service or continuing an existing bus route is most economical. Each Fiscal Year (FY), the City determines the level of service to be operated within its boundaries and executes an amendment to its Service Agreement with the Regional Public Transportation Authority (RPTA) to authorize funding for that year's service.
In FY 2023-24, the RPTA will provide the following fixed route bus service within Phoenix: Routes 30 (University Drive); 45 (Broadway Road); 56 (Priest Drive); 61 (Southern Avenue); 77 (Baseline Road); 108 (Elliot Road/48th Street); 140 (Ray Road); and 156 (Chandler Boulevard). The City also sells service to RPTA on various routes.
At the end of each year, the City and RPTA assess the actual miles operated, gross costs incurred, federal funds credited (for preventative maintenance), and advertising and fare revenues collected. The City and RPTA then reconcile the difference between the original estimates and actual costs through a credit memo or billing, as applicable.
Financial Impact
The estimated number of annual fixed-route miles for FY 2023-24 is 1,319,154 miles at a cost of $12,777,746. The total estimated farebox revenue is $631,567, the total estimated preventive maintenance credit is $714,537, and the estimated advertising revenue is $103,673. The total estimated net cost for RPTA's billing to the City is $11,327,969.
Funding is available in the Public Transit Department’s Operating budget using the Transportation 2050 Fund.
Concurrence/Previous Council Action
The City Council approved RPTA Service Agreement 143071 (Ordinance S-42474) on April 20, 2016.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.