Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 14, 2017
Subject
SUBJECT: ACCESS SERVICES PROPOSED FISCAL YEAR 2018 BUDGET
Action
ACTION: APPROVE FUNDING FOR ACCESS SERVICES FOR
FISCAL YEAR 2018 (FY18)
Heading
RECOMMENDATION
Title
CONSIDER:
A. APPROVING local funding request for Access Services (Access) in an amount not to exceed $91,892,571 for FY18. This amount includes:
* Operating and Capital funds in the amount of $89.7 million; and
* Funds paid directly to Metrolink in the amount of $2.2 million for its participation in Access' Free Fare Program
B. AUTHORIZE the Chief Executive Officer to negotiate and execute all necessary agreements between Metro and Access.
Issue
ISSUE
Access provides Americans with Disabilities Act (ADA) paratransit service on behalf of Metro and 44 other Los Angeles County fixed route operators, as mandated by the ADA. In coordination with Metro staff, Access has determined that a total of $177.8 million is required for its FY18 operating and capital activities. Of this amount, a total of $85.9M will be funded from passenger fares, federal grants and other income generated by Access. The remaining $91.9 million will be funded by Metro from Proposition C 40% Discretionary (PC 40%) funds, as follows: $87.7 million, and an additional $2.0 million to set aside a reserve for funding trips in excess of the budgeted amount, if needed, and another $2.2 million programmed to Metrolink for its participation in Access' Free Fare Program. See Attachment A.
Discussion
DISCUSSION
Access' passenger trips are projected to increase by 4.3% for FY18. However, in the event that Access experiences a higher rate of trip growth closer to 6.5%, staff is recommending a $2 million reserve be set aside with Metro to meet this potential additional trip demand.
As seen in the chart below, the major cost drivers in FY18 are in Direct Operations and can be attributed to increases in projected ridership and the mandated minimum wag...
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