HomeMy WebLinkAboutCOM 0568.000 2020-2022 Mitchell D. Roth Deanna S. Sako
Mayor <+ {� Director
,��frdl„
Steven A. Hunt
%. Deputy Director
lrE OOf•Nl.f►
3
County of Hawai`i
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 o Fax(808)961-8569
December 21, 2021
Maile Medeiros David, Council Chair and
Members of the Hawaii County Council a,
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Amendment to the Hawaii County Code
Enclosed is a bill for an ordinance amending Chapter 18, Article 4, Section 18-90 of the
Hawaii County Code 1983 (2016 Edition, as amended), relating to fares for public
transportation.
The Mass Transit Agency seeks to temporarily suspend the fares for all mass transit fixed
routes and paratransit services until December 31, 2023. Grant funds will cover the
operational costs during the temporary suspension period. The intent of this amendment
is to remove barriers to riding public transit, boost and rebuild ridership, and keep
frontline employees and riders safer and socially distanced from each other by
eliminating the exchange of fares.
The Mass Transit Agency requests that a breach be authorized to submit this bill after the
December 15, 2021 submission deadline in order to be placed on the January 4, 2022
Finance Committee agenda. If there are any questions, please do not hesitate to call John
Andoh of the Mass Transit Agency at 961-8555.
Deanna S. Sako
Director of Finance
Enc.
c: Mass Transitt;,
Comm. No. U
1 it 105> Ref. To: P �/
Hawaii County is an Equal Opportunity Employer and provideAef.® Dale DEC 2 2 7
Form : B-52
711$191
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Mass Transit Agency DATE: 1211412021
STAFF CONTACT: John Andoh PHONE: 961-8555
A. REQUEST:
Ordinance to suspend the collection of fares as defined in Chapter 18, Section 18-90 and to request a
breech for discussion at the next County Council meeting.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
Since March 17, 2020, when the pandemic started, there has been many transit agencies that has gone fare
free as a way to rebuild ridership and to keep front line employees safe from direct interactions with
passengers. The FTA has allowed transit agencies to use Coronavirus Aid, Relief, and Economic Security
Act (CARES), Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSSA) and
American Rescue Plan Act of 2021 (ARP) funds to cover transit operational costs, which includes the
suspension of fares, as long as the funds used pay for transit operational and administrative costs. Staff is
recommending suspension of fares ending December 31, 2024 using the CRRSSA and ARP funds to cover
the loss in $560,000 in revenue from passengers.
The suspension of fares can allow an opportunity for the County to rebuild the Hele-On over ridership lost in
the past due to unreliable schedules, fleet, other operational and administrative challenges and the COVID-
19 pandemic. In FY 2009 when the County had a fare free system, ridership jumped from 800,000
passenger trips per year to 1.2 million passenger trips by FY 2013 when the program had ended and fares
were restored. Passenger trips has since declined to 290,000 per year. With the implementation of the
Transit and Multi-Modal Transportation Master Plan on September 5, 2021, it is anticipated that going fare
free can anticipate ridership growth initially by 5 to 30% This would result in cash handling exposure at the
Mass Transit Agency being significantly reduced. Some other benefits created by fare free include: helping
create a quality community and connecting people to opportunity, driving the economy through increased
employment, substantially increasing transit ridership, removing barriers to using transit, reducing vehicle
congestion and improving air quality.
9 \
SIGNED: DATE: 1211412021
Department Head