Okaloosa County BOCC — August 16, 2016 — Access EC Rider TDP - August Draft Report — reading text

Yes Maybe Special Assessment Local Maybe Maybe Maybe Yes Maybe Tourist Development Council Local Maybe Yes Maybe Yes Yes Student Fees Local Yes Maybe Yes Maybe Maybe Fare Revenue Local Yes Yes Yes Maybe Yes Advertising Local Maybe Yes Maybe Yes Yes Private Contributions/Donations Local Maybe Yes Yes Yes Yes TOD/Joint Development Local Maybe Maybe Yes Yes Maybe Combined, the identified sources provide additional funding needed to fill any funding gaps and expand existing fixed-route services in terms of coverage area and/or frequency. Consideration of any potential new funding sources in developing the Access EC Rider TDP will be based on discussions with agency staff, the Steering Committee, and community stakeholders and input from public outreach efforts. Summary of Potential Funding Sources The following funding sources/programs evaluated in the previous table are summarized below:  Federal o Environmental and Energy Funding o Job Access and Reverse Commute o Transit Clean Fuels  State o State Block Grants o Transit Corridor o Transit Service Development o Commuter Assistance  Regional/Local o Independent/Regional Transit Authority o County/City General Revenue o Special Assessment ACCESS EC RIDER | Okaloosa County’s 10-Year Transit Development Plan 102  Section 5: Situation Appraisal o Tourist Development Council o Student Fees o Fare Revenue o Advertising o Private Contributions/Donations o TOD/Joint Development Federal Funding Programs Federal Environmental and Energy Funding Another emerging potential federal funding resource for technology and programs for transit is through either or both the Environmental Protection Agency (EPA) and the Federal Energy Regulatory Commission (FERC) office. Both agencies implement programs that potentially could be a resource for transit clean fuels and other strategies to improve energy conservation or fuel emissions. With the cost of capital leasing options available, a cost/benefit assessment should be completed for each potential project and application. Section 5316 Job Access Reverse Commute (JARC) Program Funds The JARC program was established to address the unique transportation challenges faced by welfare recipients and low-income persons seeking to obtain and maintain employment. Many new entry-level jobs are located in suburban areas, and low-income individuals have difficulty accessing these jobs from their inner city, urban, or rural neighborhoods. FTA Transit Clean Fuels Program Funds The Federal Transit Administration (FTA) places some annual appropriations into a Transit Clean Fuels program and accepts applications for these funds. With attempts to move to cleaner-burning fuels, all transit systems should consider the potential to apply for and use funds from this source. Although these funds are for capital purchases and facility infrastructure, with the capital cost of leasing allowances, some level of benefit to operational expenses could be realized. This is a program that should be assessed on a case-by-case basis. State Funding Programs State Block Grants The State Block Grant Program was established by the Florida Legislature to provide a stable source of funding for public transit. These funds may be used for eligible capital and operating costs of providing public transit service and for transit service development and transit corridor projects. Public Transit Block Grant projects must be consistent with applicable approved local government comprehensive plans. State ACCESS EC RIDER | Okaloosa County’s 10-Year Transit Development Plan 103  Section 5: Situation Appraisal participation is limited to 50% of the non-federal share of capital projects. Program funds may be used to pay up to 50% of eligible operating costs, or an amount equal to the total revenue (excluding farebox, charter, and advertising revenue) and federal funds received by the provider for operating costs, whichever amount is less. FDOT Transit Corridor Program This program supports new services within specific corridors when the services are designed and expected to help reduce or alleviate congestion or other mobility issues within the corridor. Transit Corridor funds are discretionary and are distributed based on documented need; projects that have regional or statewide significance may receive funding at up to 100%. FDOT Transit Service Development Grant Transit Service Development Grant funding is available for no more than three years and typically is used for providing improved or expanded public transit services. If awarded to EC Rider to improve/expand transit services and if successful in meeting project goals, the route must be continued thereafter by EC Rider without additional Public Transit Service Development Program funds. In addition, projects submitted for funding must be justified in the Access EC Rider TDP or other appropriate plan and then compete statewide for funding from FDOT. FDOT Commuter Assistance Program Commuter Assistance funding is allocated for various ridesharing, vanpooling, and other commuter services that fall under transportation demand management (TDM) strategies. Included in this is supporting local employers to develop new vanpool programs in Okaloosa County. Creating transportation alternatives for commuters potentially could be an eligible service under this program. Commuter routes that are initiated with the intent to connect commuters directly to work sites through shuttles or other means may be eligible. Under this program, capital and operating expenses could both be eligible expenses. Competing with other priorities for funding could be an issue, but guidance from FDOT District 3 staff should help guide the decision on whether to pursue funding under this program. Regional/Local Funding Programs Independent/Regional Transit Authority Chapter 189 of the Florida Statutes (F.S.) allows for the creation of independent districts as an alternative method to manage and finance basic capital infrastructure and services. Alternatively, Chapter 343, F.S., allows for the establishment of a Regional Transit Authority (RTA) by the Florida Legislature. The purpose of both bodies is to prove mobility and expand multimodal transportation options throughout a designated region; however, an independent transit authority provides more flexibility in terms of local revenue ACCESS EC RIDER | Okaloosa County’s 10-Year Transit Development Plan 104  Section 5: Situation Appraisal sources and board composition than an RTA. Prior discussions concerning some form of regional transit agency indicate that this would likely be a future consideration rather than an immediate discussion. County/City General Revenue Funding from local City and County general funds is often cumbersome to get allocated and receive; however, this revenue source is often the backbone of being able to expand and increase services in local areas. Finding the mechanism to encourage local contributions must be fair and equitable in areas with multiple jurisdictions if more than one jurisdiction is expected or desired to contribute. Special Assessments Special assessments are established to fund the construction and maintenance of capital facilities and to fund certain services, including public transportation. A special assessment differs from a general tax in that the assessed property should receive some special benefit from the improvement or service and reasonably apportioned among the properties receiving the special benefit. Under State law, special assessments could include Municipal Service Benefit Units (MSBU) or Municipal Service Tax Units (MSTU), where the source of revenue used to pay for the services is the difference between the two. An MSBU is funded by non-ad- valorem assessments and, therefore, the amount assessed is not dependent on the value of the property, whereas an MSTU is funded through ad valorem taxes and the amount assessed is dependent on the value of the property. Tourist Development Council Revenue The Okaloosa County Tourist Development Council (TDC) is solely-funded by the lodging tax known as the Tourist Development Tax (TDT) paid by visitors staying overnight in southern Okaloosa County, including the cities of Destin, Fort Walton Beach, Okaloosa Island, Mary Esther and Cinco Bayou. TDT revenues are used to promote tourism and fund various programs, such as beach safety, Protection and improvements to the natural environment, and operation of the Emerald Coast Convention Center. If available, TDT revenue potentially could be used to fund transit service serving tourists and high-volume tourist areas. Student Fees Transportation fees assessed to college/university students can help offset the cost of providing or enhancing transit services internal to the campus or between the campus and major destinations, such as other routes, transfer centers, park-and-ride facilities, and student housing. Student transportation fees can be assessed to all students or target a subset of the student population (such as full-time students, students that live on campus, etc.) to ensure more equity between fee payment and benefit received. Private Contributions/Donations There are a number of innovative mechanisms for funding transit services. Some of these strategies do so by eliciting private contributions to transit agencies with the expectation that net benefits will accrue over ACCESS EC RIDER | Okaloosa County’s 10-Year Transit Development Plan 105  Section 5: Situation Appraisal time as the value of the private development appreciates. In addition to maintaining existing developer contributions, Okaloosa County could explore opportunities to encourage developer funding of future and existing transit operations. Other private contributions could be from developments receiving expanded and coordinated services, such as Emerald Grande or Eglin Air Force Base, for example. Fare Revenue EC Rider charges both a regular and reduced fare for older adult/disabled passengers on a per-ride basis. Monthly (31-day) passes also are available for purchase. EC Rider has implemented a policy to offer free transfers between routes, which can lower the amount of fare revenue ultimately collected. Based on a comparison of the system’s average fare completed previously as part of the Peer and Trend Analysis, EC Rider’s average fare increased 13.3% between 2009 and 2013. This places EC Rider’s average fare of $0.68 slightly above the peer system mean of $0.60,