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Mitchell D. Roth ��tv os h�� Deanna S. Sako
Director
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Diane Nakagawa
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County Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 Fax(808)961-8569
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June 30, 2022
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Maile Medeiros David, Council Chair and
Members of the Hawaii County Council E
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
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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 extend the temporarily suspended fares for all mass
transit fixed routes and paratransit services until December 31, 2025. Grant funds will
continue to cover the operational costs during the extension period. The intent of this
amendment is to allow the County to continue to rebuild Hele-0n ridership.
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 Transit
Comm. No.
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Ref. To: F G
Ref. gate JUL
Hawaii County is an Equal Opportunity Employer and Provider
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Mass Transit Agency DATE: 6/22/2022
STAFF CONTACT: John Andoh PHONE: 961-8555
A. REQUEST:
Ordinance to suspend the collection of fares as defined in Chapter 18, Section 18-90.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
Since when the pandamic started in 2020, 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 passemhers. FTA
has allowed transit agencies to uses 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 the funds used pays for transt operations. Staff requests suspension of fares ending December
31, 2025 using the ARP funds to cover the loss in $560,000 in passengers. A previous Council action
authorized the suspension of fares using the CRRSSA funds through December 31, 2023.
The suspension of fares can continue the opportunity for the County to rebuild the Hele-On over ridership
lost over the past decade due to unreliable schedules, fleet, other operational and administrative challenges
and the COVID-19 pandamic. In FY 2009 when the County had a fare free system, ridership jumped from
800,000 passenger trips 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. 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% The issues at the Mass Transit Agency regarding cash
handling exposure would be significantly reduced. Transit systems that recently went fare free since 2020
are: Burlington and Chapel Hill, NC, Missoula, MT, Olympia, WA and Kansas City, KS. Some benefits
created by fare free includes: helps create a quality community and connects people to opportunity, drives
the economy through employement, substantially increases transit ridership, removes barriers to using
transit, less vehicle congestion and improved air quality.
SIGNED: DATE: 6/26/2022
Department Head