CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:                        August 31, 2009

TO:                 D. Mike Good, City Manager

FROM:            Williams M. Brant, P.E., Director, Utilities and Engineering

SUBJECT:     Consideration of Approval of Entering into a Interlocal Agreement (ILA) with Broward County for Public Transportation Services CAD #026/06

PURPOSE:

Consideration of approval for an Interlocal Agreement (ILA) between Broward County and the City of Hallandale Beach for Public Transportation Services to continue the operation of minibus Route No. 3.

BACKGROUND:

On June 6, 2006, the City Commission authorized implementation of a third minibus route that would service the western portions of the City.  Furthermore, on February 21, 2007 the Commission approved for the City to enter into an ILA with Broward County for Public Transportation Services. The agreement was for a period of two and half (2 ½) years and expires on September 30, 2009.  The County has expressed its intention to enter into a new ILA with the City for two (2) years, to continue funding the operation of the third minibus route. 

Route no. 3 started operating in April 2007.  The ridership increased six fold from the 3^rd   quarter of FY 2006-2007 to the 4^th quarter of FY 2007-2008 as shown in the graph below.

However, the decrease in ridership for the Oct 2008 to June 2009 period may be attributed to the decrease in fuel cost, which caused riders to revert to utilizing their personal vehicles; or it may be due to the increase in job loss, resulting in less individuals using the minibus to commute to and from work.

This route services the northwest and southwest section of the City.  It offers the residents and employees transportation to several City facilities and parks, the Hollywood Tri-rail Station and the Memorial Primary Care Center on Pembroke Road (see attached map). 

DISCUSSION:

The annual cost for operating route no. 3 is estimated at $120,510.00.  The minibus runs an estimated 309 days per year.  The operating cost is based on a 12 hours day at $32.50 per hour as negotiated with the contractor, Limousines of South Florida, Inc.  This hourly rate includes the operation and maintenance of the minibus. 

The County will be funding 38.46% of the annual operating cost of $120,510.00.  Under the new ILA, the County has reduced its funding from $20/hour to $15/hour.  Additionally, the County is no longer allowing for a capital contribution of $12,000 per year. This ILA with Broward County will provide funding only for operating the minibus at the hourly rate mentioned above; and will fund 10 hours per day.  The total County Mass Transit funding will be $46,350.00.  Funding under the expiring ILA was in the amount of $74,400.00.  Therefore, funding has been reduced by $28,050 which represents a 37.7% reduction. As staff did not expect a reduction in funding from the County, additional funding to cover the shortfall was not included in the Fiscal Year 2010 Budget. Therefore, staff is requesting that should the City Commission agree with the ILA additional funding from the Transportation Fund in the amount of $15,000 for the operation of the Minibus Third Route be included in the Fiscal Year 2010 Budget.

After the 2 year term, the agreement may be extended for two (2) additional one (1) year periods.

The agreement with Broward County entails many of the requirements stipulated in the previous agreement:

• Maintain a minimum average ridership of at least 7.1 passengers per hour (This number went from 5 to 7.1).  For the past 2 quarters, Route no. 3 has maintained its average between 8 and 9 passengers per hour.
• Display County logo and assigned identification number on rear of minibus.
• Have minibus equipped with bicycle racks.
• Submit monthly reports to County.
• Comply with all applicable requirements of the Americans with Disabilities Act (ADA).
• Assure City’s contractor abides by County’s Drug Free Workplace Policy.

The Interlocal Agreement will not be in conflict with the City’s current operations.  The vendor contracted by the City is aware of all requirements of this agreement and is in compliance.

RECOMMENDATION:

City Commission to:

1. Approve an Interlocal Agreement (ILA) between Broward County and City of Hallandale Beach for Public Transportation Services; and  

2. Authorize the City Manager to execute the agreement and all other grant related documents, and to renew agreement as necessary in the best interest of the City; and

3. Authorize the City Manager to increase the Fiscal Year 2009-2010 budget by up to $15,000 from the Transportation Fund for operation of the Minibus Third Route.

Reviewed:

_______________________________                                                          __________

D. Mike Good, City Manager                                                                         Date

_____Approved                _____Disapproved                _____Hold for Discussion