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Home My WebLink About97-03 RESOLUTIONRESOLUTION NO. 97-03 A RFSOLUTION APPROVING THE TRANSFER OF FUNDS IN THE AMOUNT OF FIFTEEN THOUSAND TWO HUNDRED THIRTY-TWO DOLLARS ($15,232.00) TO THE OZARK REGIONAL TRANSIT AUTHORITY FOR THE PURPOSE OF OFFSETTING A DRASTIC INCREASE IN INSURANCE PREMIUMS; AND APPROVING A BUDGET ADJUSTMENT" IN THAT AMOUNT FOR SAME. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. "that the City Council of the City of Fayetteville, Arkansas hereby approves the transfer of funds in the amount of Fifteen Thousand Two Hundred Thirty -Two Dollars ($15,232.00) to the Ozark Regional Transit Authority for the purpose of offsetting a drastic increase in insurance premiums. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a Budget Adjustment in the above amount for same. PASSED and APPROVED this lSt day of July, 2003. ATTEST" City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2003 Department: Operations Division: Transportation Program: Operations & Administration Date Requested 7/1/2003 Adjustment Number Project or Item Requested: $15,232 is being requested for Ozark Regional Transit. Project or Item Deleted: None. Use of fund balance is proposed. Justification of this Increase: Ozark Regional Transits insurance increased by 100%. Justification of this Decrease: Sufficient funding remains to comply with City policies. Increase Expense (Decrease Revenue) Account Name Account Number Amount Project Number Trans to Ozarks Reg Trans 2100 4100 5723 00 15,232 Decrease Expense (Increase Revenue) Account Name Account Number Amount Project Number Use of fund balance 2100 0910 4999 99 15,232 Approval Signatures Requested By Date Budget Manager Firfance & Intern Mayor \\316 Date Date to-17-�3 Date %/4_, Date Budget & Research Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log E Date Initial Date Initial Date Initial Date Initial H:\BUDGET\BARBARA ADJ\2003\Ozark Reg Trans - Ins. 6/13/2003 / 4:55 PM • • NAME OF FILE: Resolution No. 97-03 w/budget adjustment CROSS REFERENCE: Item # Date Document 1 06/11/03 Staff Review Form w/attachments: draft resolution memo to Mayor/City Council Ozark Regional Transit letter to Mayor copy of Ozark Ridership Summary April 2003 copy of various graphs from Ozark copy of fare share support requests 2003 2 07/08/03 memo to Hugh Earnest NOTES: X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW STAEVIEW FORM - FINANCIAL OBLIGATIII For the Fayetteville City Council Meeting of: July 1, 2003 Res 07/,1/1.3 9 7 -03 Ozafer 4 ersal FROM: Hugh Earnest Name Administration Division Administration Department Action Required: A resolution^and budget amendment for expenses incurred on behalf of Ozark Regional Transit. v-IPrc' o'-. e� O��OudS 0.d�S'�'m`Q-r{ * LIQ Qrn L^i n COST TO CITY: $15,231.52 Cost of this request 0.1n0-ykoo-51143. )0 Account Number Project Number $ 100, t131e - Category/Project Budget Funds Used to Date S Remaining Balance \tcxr tr 'to nrtCi.,p%. l t 0.o5 1/4.-k Program Category / Project Name • Op rc -tcn'. GAtr\Int�`CG�lp- Program. / Project Category Name Fund Name BUDGET REVIEW: C-12„0--Q. ,,,n Budget Manager Budgeted Item Cate XBudget Adjustment Attached CONTRACT/GRANT/LEASE REVIEW: rna4. cIa squntin Manager J Da 'e City Attor y Date r, Internal Al gtTe„ CP(Ifo3 '_tor Date OZ1«k3 Purchasing Manager Date STAFF RECOMMENDATION: Division Head Department Director Finance & In ernal Services Dir. Chie dministrative Officer Mayor lattoitna Date Date G'l7•o3 Date Date Received in Mayor's Office Cross Refe once: Previous Ocd/Res@: Orig. Contract. Date: Or:g. Contract Number: New Item: is /7/0 3, Date �L/� Yes No Description Comments: Budget Manager •Staff Review Form - Pe 2 III Meet. ng Date J 1, 2003 Reference Comments: Accounting Manager City Attorney Purchasing Manager ADA Coordinator Internal Auditor Grants Coordinator • • RESOLUTION NO. A RESOLUTION APPROVING THE TRANSFER OF FUNDS IN THE AMOUNT OF FIFTEEN THOUSAND TWO HUNDRED THIRTY-TWO DOLLARS (515,232.00) TO THE OZARK REGIONAL TRANSIT AUTHORITY FOR THE PURPOSE OF OFFSETTING A DRASTIC INCREASE IN INSURANCE PREMIUMS; AND APPROVING A BUDGET ADJUSTMENT IN THAT AMOUNT FOR SAME. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the transfer of funds in the amount of Fifteen Thousand Two Hundred Thirty -Two Dollars (515,232.00) to the Ozark Regional Transit Authority for the purpose of offsetting a drastic increase in insurance premiums. Section 2. That the City Council of the City of Fayetteville Arkansas hereby approves a Budget Adjustment in the above amount for same. -8 PASSED and APPROVED this 15' day of July, 2003. APPROVED. By A SMITH, City Clerk ODY, Mayor • • FAYETTEVILLE THE CITY OF F,4 YETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor Dan Coody and Members of Fayetteville City Council From: Hugh Earnest Chief Administrative Officer Date: June 13, 2003 Subject: Additional Funding for Ozark Regional Transit Background One of the regional successes over the past two years has been the improved operation of Ozark Regional Transit. "I his success was made possible by the assumption of the management and operation of the service by a newly formed Regional Transit Authority covering the counties of Benton, Carroll, Madison and Washington Counties and the cities of Bentonville, Fayetteville, Rogers and Springdale. The Authority had the foresight to employ a professional management firm to operate the system. The support from the Mayor and Council in contributing our assets (our trolleys and Vans) and over $130,000 in fiscal support has enabled the Authority to establish a much improved, but still very basic, fixed -route system. In addition, an excellent working relationship has been established with Razorback Transit. Their willingness to assume responsibility for a fixed route and working with management on transfer points has been invaluable. Finally, this regional system operates a very extensive and efficient Para -Transit service across the service area. We have attached a copy of the ridership numbers through April which reflect the growth in usage in Fayetteville. Current Situation Despite the improvements in operation and management, the reality remains that public transit systems are expensive to operate and have had historical difficulty in achieving increases in public ridership. This particular system is no exception. In addition, the costs associated with certain aspects of the operation have shown recent rapid increases. One such area is Insurance. The results of the recent hid process for insurance coverage reflected an increase of over 100%. We have attached a letter from Judge Jerry Hunton, • • the chair of the Regional Transit Authority explaining the decision taken by the board of the authority in asking the cities and counties to pay a percentage of this large increase based on the current funding formula used across the system. Also attached is a breakout of the requested allocation. It should he noted that this increase only insures coverage through Septembcr of this year. The board is keenly aware that this problem will demand attention and fully intends to investigate all reasonable options for future coverage and other funding alternatives. Recommendation It is my recommendation that the Council approve a budget amendment to cover this request. A similar request for assistance has been made by Judge Hunton to all members of the Authority and there is every reason to believe that all entities will be taking appropriate action to honor the request. 1 am representing the Mayor on this hoard and at this time we could find no way to absorb this additional cost without service reductions. Mayor Dan Coody City of Fayetteville 113 West Mountain Fayetteville, AR 72701 Dear Mayor Coody: On May 1, 2003, the automobile liability insurance that covers the fleet of Ozark Regional Transit's came up for renewal Due to the September 11, 2001 terrorist's attacks, and the slump in the stock market, Ozark Regional Transit found it difficult not only to procure insurance, but at an affordable price. After receiving several bids, that reflected increases of up to over 400% from the prior year, our lowest bid of $130,000 received this year doubled our prior year's insurance cost of $64,000. The Board accepted this bid, so that we could continue to provide service to our communities. Because our organization does not have additional resources or surplus funds, we elected to accept this bid and asked our Management team to come up with a fair allocation method for the increase • Ozark Regional Transit, Inc. P.O. Box 785 2423 East Robinson Springdale, Arkansas 72765-0785 C� • June 6, 2003 RRGEE D JAN 1 1 2003 eine OFF MAYOR S OFFICE LE The staff developed two formulas, both which are based upon our "Fareshare" program. The `Fareshare program of costs is allocated based upon last year's passengers, and where their trip originates. The first formula for the insurance increases included our Human Service Agencies in the allocation of the costs. The second formula did not include those agencies. Upon hearing that the agencies could not afford the increases, the Board approved passing these costs along to the cities and counties. The three reasons for this are 1.) These agencies offer services and transportation in Benton, Washington, and Carroll counties, 2.) They cannot afford the increases, 3.) and the clients of these services are residents throughout the service area, 4.) without transportation, many of these agencies would either have to reduce the scope or programs with these clients, many of who are either disabled, pre-school children, or others whom cannot drive or afford personal transportation. We appreciate your support of $15,231.52, and look forward to your assistance in this matter. Should you need a representative of Ozark Regional Transit to attend a Finance, Quorum Court, or City Council meeting, please call our Executive Director Philip Pumphrey. His number is (479) 756-5901, extension 247. If you have any questions that I might be able to assist you, please call me at (479) 444-1702. Sincerely, Hunton, Chairman, Ozark Regional Transit 1 • Ozark Regional Transit Ridership Summary April 2003 Elkins elligfl'ilitiMastiallitijOgAltailLi: 135 flAjii;,03,l isrAnoms rDiffe'rencem Avoca 62 0 62 Bella Vista 188 Farmington 164 82 24 Carroll Bentonville -59 957 69 909 48 Virf,4907. Bethel Heights " 2202 0 2 -2 Cave Springs Fixed 39 0 39 0 Centerton 160 0 134 26 Greenland Decatur 136 18 121 15 Johnson Garfield 42 37 5 2 Gentry 115 26 44 71 Grove Gravette 16 14 78 38 40 Highfill 2285 2605 -320 Paratrans4 0 0 0 Little Flock Apartment 167 86 81 Lowell 124 0 154 West -30 Pea Ridge 109 4 70 39 Rogers 2176 0 2265 -89 Siloam Springs -80 19 0 19 7256 Benton County 496 784 -288 Total 4868 4808 60 Elkins 1 135 43 42 1 Elm Springs County 42 53 -11 0 Farmington 25 82 141 Carroll County -59 Fayetteville 69 4415 Virf,4907. 2213 " 2202 Paratrans,t Service - 1413 0 Fixed Routes - 3002 0 Goshen 0 0 0 Greenland 5 18 -13 Johnson 15 13 2 Lincoln 22 26 -4 Prairie Grove 30 16 14 Springdale 2285 2605 -320 Paratrans4 Semite - 2228 0 Apartment Shuttle - 57 0 Tontitown 0 0 0 West Fork 29 25 4 Winslow 0 0 0 Washington County 288 368 -80 Total 7256 5520 1736 Berryville 1 135 1 131 4 Madison 4 County Eureka Springs 50 50 0 Green Forest 25 64 -39 Carroll County 397 328 69 Total Virf,4907. 607 " 573 34 Huntsville 1 10 1 6 4 Madison 1837 County 10 I 7 3 Total 20 13 7 TOTAL TRIPS 1 12751 1 10914 1837 Scheduled J. Total urilber of.Days Scheduled J. , '490:z -i. I 7- Actual.Days'Operated) Virf,4907. " F507; '" fao ea • 8000 6000 4000 Agency Trips April 2003 2000 • 0 Strafing Otbt• Ness lan c.ri.o C:: 4 = Putt s..n Agency Trip Purpose April 2003 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 ■ Medical O Employment C Education ■ Stopping 0 Other Resident Trips Apr' 02 900 800 700 600 500 400 300 200 100 0 Apr' 03 t Fayetteville — 0— Springdale f Rogers —)E— Bentonville County Resident Trips Apr '02 Apr' 03 —0— Bunton t Washington —&—Carroll —X— Madison Agency Trips Children's House _ __ 498 Sunshine School 1323 Adult Development Center 2855 Ozark Guidance Center 983 Title XX 219 Medicaid 290 Public Service 5877 ADA 452 Other __ 254 Total 12751 Purpose Medical 3805 Employment 3306 Education 907 Shopping 732 Other 4001 Total 12751 m ,mww VI m cn c 0 m A c /mom N 0 Madison County Bethel Heights Johnson a) � Huntsville Greenland 'iloam Springs r Green Forest Centerton Eureka Springs f Carrot County !Pea Ridge Washington County Farmington !erryville enton County Bentonville o v (D f (D ov (D �. Fayetteville LOCATION N prings CI 0 a D) (D N O N tD N O W W b t0 15.45 N V Co Of V t0 CO N co t0 t0 CO 484.10 CO (/� W VN CD tO V 790.01 1,423.46 Us CO 1,801.47 T 2.671.82 5,201.50 7,847.57 17,232.93 43,851.22 51,382.58 $ SUPPORT REQUESTED N N N CO A W O O N A OD O A N CA CO O j N CO O N O) N O CD tV0 W t0 W OOi 100.00%[ 0 O O seaea`o 0 O 0 O o 0 O 0 0 •N 0 0 A. s?.ea•o 0 W W 0 W o 0 W CO 0 to CO aaaa°aa�ao 0 V 0 0 V CO 0 CO CO 0 t0 CD 00 o W Oo Co Cts aa°a°a°a°a-a t0 0 N N 0 W O 0 CO -N+ W W co o no 0) O o A t0 coo dz % of TOTAL May= Sep 2003 to O to V A O O O o O O N A CON CO A O N A n 143.50 -4 tWO j W N (N�t A CO A CA 459.82 480.58 - 738.89 792.02 Cost to FareShare Cts W A O N Of O� -+ t0 CD V V N -4 CND A O -4 03 Co CO to -k U) -• CO O N W 0f N CO CA N -4 t0 COOCOO A CO N V N CO 0) U N -W+ 01 N 1 1461337.00 May - Apr 2004 J A W W V O O 2.20 O t0 t0 -4 t0 V t0 A CO W 0) 170.741 A A A V V V V -4 N N 562.041 O N V O 0 W to V 1,153.40i 1,602.59 1,900.83 2.855.65 3,700.54 31,197.40 12.260.15 38,054.76 36,555.49 Cost to FareShare N CO Ol W A N tV W C.) W N j O at CD N -CA03 W N m ,mww VI m cn c 0 m A c /mom N • FAYETTEVILLE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Hugh Eamest Administration From: Clarice Buffalohead-Pearman City Clerk Division Date: July 8, 2003 Re: Res. No. 97-03 Attached is an executed copy of the above resolution, approved by the City Council on July 1, 2003, approving the transfer of funds to Ozark Regional Transit Authority and approving a budget adjustment for same. This resolution and attachments will be recorded in the city clerk's office and microfilmed. If anything else is needed please let the clerk's office know. /cbp attachments Nancy Smith, Internal Auditor Kevin Springer, Budget & Research