Title
Intergovernmental Agreements for Receiving Regional Funds in Support of the Regional Transit Fare Collection System (Ordinance S-52532) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to enter into Intergovernmental Agreements with Valley Metro/Regional Public Transportation Authority (RPTA) and Valley Metro Rail, Inc., for the receipt and use of regional transit funds for the joint management of the regional transit fare collection system. Further request to authorize the City Treasurer to receive all funds related to this item.
Report
Summary
The Public Transit Department has partnered with Valley Metro/RPTA in a multi-year effort to modernize the fare collection system for bus and light rail services across the region. The fare collection system is a critical regional asset that supports transit operations and ensures seamless service for the region's passengers across multiple jurisdictions. The system, designed and implemented after City Council approval in March 2020, is now operational and the original project tasks are being closed out. Each agency holds contracts with vendors to support various elements of the fare collection system, including equipment on transit vehicles, the software supporting the system, and the website and mobile app riders now use to plan their trips and purchase fares. This request is to allow the agencies to enter into agreements related to the ongoing support and future enhancements to the system, and allow the City to receive regional funding from Valley Metro/RPTA specifically for these efforts.
Contract Term
The term of these agreements will reflect the fare collection system contract, which commenced on July 1, 2020, for a 13-year term with two optional three-year extensions.
Financial Impact
Federal and regional public transportation funds are used to operate and support the fare collection system. These agreements will allow the Public Transit Department to be reimbursed (i.e., receive revenue) from the regional funds managed by Valley Metro/RPTA. The estimated reimbursements for the remaining implementation project is $890,000, with annual estimated reimbursements thereafter of approximately $350,000 annually.
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Public Transit Department.