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HomeMy WebLinkAboutCOM 0871.000 2020-2022 z i I t Mitchell D. Roth ��tv os h�� Deanna S. Sako Director Mayor j Diane Nakagawa +�:`,w^�,w:•��. Deputy Director tri+oF•µ�'N County Hawaii Finance Department 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 (808)961-8234 Fax(808)961-8569 ijjv June 30, 2022 �5� I 1 Maile Medeiros David, Council Chair and Members of the Hawaii County Council E Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 i i 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. I 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