Title
Contract Change Order with Regional Public Transportation Authority for Purchase of Fixed Route Transit Service for Fiscal Year 2020-21 (Ordinance S-46755)
Description
Request to authorize the City Manager, or his designee, to enter into a change order to Contract 143071 with Regional Public Transportation Authority (RPTA) to pay for RPTA's bus transit services on the City's updated revenue miles projected for Fiscal Year (FY) 2020-21. Further request authorization for the City Controller to disburse funds in an amount not to exceed $5,233,911.
Report
Summary
Transit services are customarily purchased and sold between regional entities when adding service or continuing an existing bus route is most economical. Each fiscal year, Phoenix determines the level of service to be operated within its boundaries by RPTA and then executes a contract change order with RPTA to authorize funding for that year’s service. In FY 2020-21, RPTA will provide the following fixed route service for 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). Likewise, Phoenix also sells transit services to RPTA on various RPTA routes each fiscal year.
At the end of each fiscal year, Phoenix and RPTA assess the actual miles operated, gross costs incurred, federal funding credited (for preventative maintenance), and fare revenues collected. Phoenix 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 2020-21 is 1,407,671 miles at a cost of $9,838,750. The total estimated farebox revenue is $291,338 and the total estimated preventive maintenance credit is $449,800. In addition, Phoenix is estimated to receive $3,863,701 in CARES Act credit for services that RPTA provides for Phoenix. The total estimated net cost for RPTA's billing to Phoenix is $5,233,911. Funds are available in the Public Transit Department operating budget in the Transportation 2050 Fund.
Concurrence/Previous Council Action
- Contract 143071 was originally approved by City Council on April 20, 2016, commencing on July 1, 2016 and continuing through June 2036.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.