Title
Contract Change Order with Regional Public Transportation Authority for Fixed Route Bus Transit Service (Ordinance S-45114)
Description
Request to authorize the City Manager, or his designee, to enter into a contract change order to Contract 143071 with the Regional Public Transportation Authority (RPTA) for a year-end reconciliation payment for bus transit services provided to the City of Phoenix. Further request authorization for the City Controller to disburse funds for the change order in an amount not to exceed $225,633.
Report
Summary
This Intergovernmental Agreement was originally approved by City Council on April 20, 2016, and commenced on July 1, 2016. A contract change order is executed each fiscal year to authorize the funding for that year's bus service based on estimates of annual fixed route miles, cost per mile, farebox revenue and federal preventive maintenance funding credit. Transit services are customarily purchased and sold between regional entities where adding service or continuing an existing bus route is most economical. Phoenix also sells service to the RPTA on various routes.
On May 10, 2017, City Council authorized payment to the RPTA for the City of Phoenix portions of fixed bus routes 30, 45, 56, 61, 77, 108, 140 and 156 for fiscal year 2017-18 in the amount of $6,854,701, funded by Transportation 2050. Subsequently, the fiscal year 2017-18 reconciliation recently provided by the RPTA revealed the actual expense after revenues were applied was $7,080,334, resulting in an additional amount due to the RPTA of $225,633. Public Transit Department staff reviewed the reconciliation and determined it to be accurate.
The changes in final expenses were the result of:
- Updated revenue miles due to adopted service changes. In October 2017, Route 140 began service on Ray Road. In April 2018, Route 30 and Route 77 service to South Mountain Community College were modified.
- Updated cost per mile.
- Actual fares collected to offset transit expenses.
- Updated federal preventative maintenance credits received.
Financial Impact
The total amount of this change order will not exceed $225,633. Funds are available in the Public Transit Department operating budget Transportation 2050 fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.