10.D.
City Council Meeting - FINAL
- Meeting Date:
- 05/20/2014
- From:
- Barbara Goodrich, Management Services Director
Information
TITLE:
Consideration and Approval of Intergovernmental Agreement: An Intergovernmental Agreement (IGA) between the City of Flagstaff, Northern Arizona University (NAU), and Northern Arizona Intergovernmental Public Transit Authority (NAIPTA) to provide for the ongoing operation of Route 10.
RECOMMENDED ACTION:
-
Adopt the IGA that allows for the ongoing operation of Route 10 connecting downtown to Woodland Village through the NAU campus.
Policy Decision or Reason for Action:
Adoption of the IGA provides for ongoing operational direction for the NAIPTA designated Route 10.
Financial Impact:
The City of Flagstaff contracts with NAIPTA to provide transit service as approved by voters in May 2008. Approval of the IGA provides for the same level of financial commitment the City has for this service.
Connection to Council Goal:
- Repair Replace maintain infrastructure (streets & utilities). Allows for operational maintenance of this fixed route.
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Effective governance.- better defines NAIPTA, NAU, and City roles and financial responsibility.
Has There Been Previous Council Decision on This:
Yes. The Council first approved the IGA related to the construction and operation of Route 10 on August 17, 2010.
Options and Alternatives:
- Approve the IGA as presented. Staff recommendation. Provides clarity on funding and maintenance issues.
- Make amendments to the IGA.
- Do not approve the IGA.
Background/History:
In the general election in May 2008, the voters approved various propositions related to the provision of specific transit services in our community. Proposition 403 authorized a 0.02% sales tax increase for the establishment of new transit service between the downtown area and Woodlands Village via the NAU campus (Route 10). NAIPTA successfully launched Route 10 July 2011 and the ridership continues to increase annually.
In December, 2010, the City, NAU, and NAIPTA entered into the original agreement for the development, construction, and operation of Route 10. As the construction has been completed, the member organizations desire to clean up the IGA by removing the language related to the construction and to refine those sections that focus on the operations. The IGA clarifies the amount NAU is responsible for annually (the lesser of 50% or $490,321 as adjusted by the Consumer Price Index for all Urban Consumers), clarifies the on-campus operating schedule and route, and clarifies that should NAIPTA provide additional bus service or routes that could benefit NAU, that these routes shall not increase NAU's financial responsibility and that they are not fare free. The City of Flagstaff would have to agree to any increased costs through the annual budget process.
The IGA has an initial term of ten (10) years with the option to renew for up to two (2) successive five (5) year terms.
In December, 2010, the City, NAU, and NAIPTA entered into the original agreement for the development, construction, and operation of Route 10. As the construction has been completed, the member organizations desire to clean up the IGA by removing the language related to the construction and to refine those sections that focus on the operations. The IGA clarifies the amount NAU is responsible for annually (the lesser of 50% or $490,321 as adjusted by the Consumer Price Index for all Urban Consumers), clarifies the on-campus operating schedule and route, and clarifies that should NAIPTA provide additional bus service or routes that could benefit NAU, that these routes shall not increase NAU's financial responsibility and that they are not fare free. The City of Flagstaff would have to agree to any increased costs through the annual budget process.
The IGA has an initial term of ten (10) years with the option to renew for up to two (2) successive five (5) year terms.
Key Considerations:
The amended IGA was vetted with staff from NAIPTA, NAU, and the City. Northern Arizona University has signed the agreement. The NAIPTA Board of Directors is expected to approve the agreement at their May 15, 2014 Board meeting. The IGA clearly sets current and future budget and funding limits that provide financial protection to both the City and NAU.
Expanded Financial Considerations:
NAIPTA will present a budget annually to both NAU and the City that is limited to reflect cost changes not exceeding the percentage of change reflected in the U.S. Department of Labor Consumer Price Index for all Urban Consumers. Under this agreement, NAU will pay the lesser of $490,321 or 50% of the budgeted cost. The City will be responsible for the other approximate 50% through the designated tax revenue (currently generating approximately $315,000 annually), fare box revenues, and Section 5307 Transit Formula Award funds. Should additional funds be needed for the operation of this route, a separate agreement will have to be approved.
Community Benefits and Considerations:
The Mountain Links transit route is consistent with the objectives of the Flagstaff Area Regional Plan, the 2009 NAU Master Plan Update and the FMPO Regional Transportation Plan. In addressing a number of the land use and multi-modal objectives of these long range plans, this route helps alleviate traffic congestion, reduces parking space demand (particularly on Campus), and provides service to numerous riders on a daily basis.
Community Involvement:
Inform - The public notification occurs through the publication and discussion of the proposed IGA through the City of Flagstaff Council meeting.
Collaborate - The City, NAU, and NAIPTA worked together to provide the amendments for this operating agreement.
Collaborate - The City, NAU, and NAIPTA worked together to provide the amendments for this operating agreement.
Expanded Options and Alternatives:
- Approve the IGA as presented. Staff recommendation. Provides clarity on funding and maintenance issues.
- Make amendments to the IGA.
- Do not approve the IGA.