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HomeMy WebLinkAbout20070917 - VI-12 To: From: Date: Re: Mayor Hicks and City Councilmembers Melanie Mesko Lee September 12,2007 Request for Incremental Adjustment to TRAC fares Council Action Requested: Approve the attached resolution, approving an incremental adjustment to TRAC fares, effective January 1, 2008. Background Information During the recent preparation of the 2008 TRAC Management Report for both MnDOT and Met Council, staff reviewed expected revenues from TRAC fares. Upon research, it was determined that the fares currently being charged ($1.55/cash or $ I .50/token) are below that which are being charged by other transit providers in the same classification as TRAC. Other similar providers generally charge between $2.00 -$5.00/ride (attached). Additionally, there is no evidence of a review ofTRAC fares, nor an adjustment, for at least the last 9 years and probably for a longer period of time. It is proposed that the Council adopt the attached resolution which adjusts the TRAC fares incrementally over the next several years. Additionally, it is proposed that the $0.05 differential between cash and token be eliminated. Proposed Incremental Adiustment Current: $ 1.55/cash $1.50/token 2008 $1.60 2009 $1.70 2010 $1.80 2011 $1.90 2012 $2.00 TRAC fares account for approximately $55,000 in annual revenue for the TRAC program, of which annual operating expenses are projected at approximately $350,000 for 2007. A little over $250,000 is funded by Met Council, and approximately $45,000 is funded by MnDOT for the TRAC program. This adjustment was discussed with the Finance Committee during recent 2008 budget meetings and given conceptual approval. If you have any questions, please let me know. Cfl'j of Hastj~ .. 101 FouM Street East.. HasilneS. MN 55033-1.955 .. p:651-480-23SO .. f:651-437-4<J:82 .. ...........w.Gl.hastJng:5.mn.1.i5 City of Hastings Resolution 09- -07 Resolution Adopting an Incremental Fare Adjustment for the Hastings TRAC Program WHEREAS, the City of Hastings has operated an intra-city transit service called TRAC (TRansportation Around the City) since 1978; and WHEREAS, TRAC provides over 34,000 rides annually throughout the City of Hastings to passengers with transportation needs; and WHEREAS, the fare for each ride is $ 1. 55/cash or $1.50/token; and WHEREAS, the fare structure has not been adjusted in recent years; and ride. WHEREAS, similar transit programs charge from between $3.00 - $5.00 per NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings that a fare adjustment of the TRAC fare structure is warranted and will be implemented as follows: January 1,2008 January 1,2009 January 1,2010 January 1,2011 January 1,2012 $I.60/ride $1.70 $1.80 $1. 90 $2.00 Adopted by the Hastings City Council this 17th day of September, 2007. Ayes: Nays: Absent: Paul J. Hicks, Mayor Melanie Mesko Lee, City Clerk I.- o ..= Cll <.I ,e g ;i8 !:: C1 ... LA) .. '" :....0> ..&ex) ~ c: ,.... o :: - 1/1 -S~ I- ~ Vi :;, v) ~ I/) C.) ;:; I/) ;:; CI:I - en E Q) - I/) >- en ~ I/) C CI:I I- ~ '0 Q) I/) CI:I m >- ~ C :J E E o o CD o o ('II l- ta CI) >- I- CI:I '0 C oS! CI:I o <l c alncJ? O'g", +-,Ct'--: C::leo fl u. U) ... Cl 0.. c<O = ~ :; <.I::I~ g:e '" 0'::; O~ O~ C N ~ (tl :g_ bCllClO I:l~~eo ~~g, ~~ ~ Cll c :s c ::I u. 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