Okaloosa County BOCC — July 15, 2014 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 15, 2014 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Public Hearing for Discontinuance of Fixed Route Transit Service DEPARTMENT: Growth Management BCC DISTRICT: All STATEMENT OF ISSUE: Conduct public hearing to receive input regarding potential discontinuance of transit routes 1, 2, 3, 4, 5, 14, 20, 30, 32, and 33. BACKGROUND: During the past three budget cycles, the Board of County Commissioners has advised that it would need assistance from the municipalities in order to continue to fund the transit program. During the current Fiscal Year, two routes, 11 and 12 in the Crestview area, have been discontinued due to lack of funds. Route 33 serving the Destin area, is currently funded through the City of Destin's financial contribution. Public transportation in Okaloosa County, including both fixed-route and paratransit service, is funded by matching federal, state, and local funds. It is important to note that there are limitations on which funding sources can be used to match others; for example, funds received through Section 5307 of 49 USC cannot be used to match funds obtained from Section 5311 of 49 USC. Further, Section 5311 funds may only be used in the rural area of the County (north of Eglin, including Crestview). As shown in Attachment A, the various funding sources are combined to produce the greatest amount of grant funds possible. It should be noted that the County receives almost 8 times the amount of grant funding than it spends. It is also important to note that grants are awarded based on anticipated need, and are subject to change based on alterations or reductions in service. Okaloosa County Transit's proposed budget for FY 2015 is $2,778,033, of which $1,078,033 is for fixed route, and $1,700,000 is for paratransit. Even utilizing 100% of the currently anticipated transportation disadvantaged grant, Medicaid, block grant, FDOT corridor, and local (BCC) funds, as well as maximizing the use of the 5311 funds, there is still an anticipated deficit of $477,645. However, as additional 5307 funds (which require a 50% match) are available to offset this deficit, the amount is effectively halved to $238,822. Again, this figure should be considered tentative, as the grant amounts are subject to change. As the County has received no commitment from any of the municipalities to assist with transit funding (though some have expressed interest in forming a transit cooperative if the County will fund the existing system for one additional year), on July 1, 2014 the Board of County Commissioners set a public hearing to discuss the possibility of discontinuing all of the fixed transit routes. This public hearing is required by the County's adopted Public Transit Fare and Route Modifications Policy which states that the County must hold such a hearing 60 days prior to the changes taking effect. In order for any discontinuances to take effect coincident with the start of the new fiscal year, the July 15 Board meeting was selected. The Board of County Commissioners may, at its discretion, discontinue the public transit routes. However, doing so will cause an increase in the demand for paratransit services. Since the inception of the fixed route system, OCT has worked to move riders from paratransit onto the fixed system. According to records maintained by OCT, there are an estimated 45,000 trips per year that are qualified for the Transportation Disadvantaged Program that are riding the fixed route system. If the fixed routes are eliminated, many of these riders will in all likelihood resort back to paratransit. In addition, other riders for whom the system has needed to be deviated will also request service. This is significant since under the current grant scenario there are adequate funds in combination with the BCC dollars to provide paratransit at the currently anticipated level. However, if there is a significant increase in paratransit demand, the existing funding level may not be sufficient. Further, since under a reduced fixed route scenario the County would be providing a reduced level of transit service, the state and federal grants will in all likelihood be reduced. While the existing level of funding is insufficient to maintain the current network of fixed routes in conjunction with paratransit, County staff and OCT have reviewed the routes and believe that some fixed route service may be maintained. This will help reduce the increased demand on paratransit, and will have an ameliorating effect on the reduction of grant funding, although some reductions should be expected. Unfortunately, it is impossible to predict the amount of reduction until such time as the granting agencies have reviewed whatever reductions in fixed route service may occur. Further, while staff has endeavored to ensure that route changes could occur at the start of the fiscal year, there are funds sufficient to operate the fixed routes partially into the fiscal year to allow additional time for consideration. OPTIONS: Following the public hearing, the Board has a number of options. First, it may direct staff to move forward with the discontinuance of all the routes beginning October 1. As an alternative, it may direct staff to only reduce the routes to the level that may be supported by the current level of funding, or to continue the existing system into the new fiscal year only as long as current funding levels allow. Finally, the Board may allocate additional funds to maintain the current system for an additional fiscal year to allow time for the formation of a transit cooperative with the municipalities. RECOMMENDATIONS: In order to preserve flexibility for the Board's decision-making, staff recommends that the Board move to discontinue the routes as advertised, but within the motion reserve the right maintain some fixed route service subject to Board approval prior to October 1. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator