Project Concern Request for Additional Funds
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CITY OF DUBUQUE, IOWA
MEMORANDUM
September 26, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Project Concern Request for Additional Funds
Public Works Director Mike Koch is recommending and the Transit Board concurs
with providing additional funding in the amount of $9,859.53 to Project Concern in
response to their request to cover actual costs for Fiscal Year 2000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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ichael C. Van Milligen
MCVM/dd
Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Mike Koch, Public Works Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
September 25, 2000
TO: Michael C. Van Milligen, City Manager
Michael A. Koch, Public Works Director fJ/.1 t~
FROM:
SUBJECT: Project Concern Request for Additional Funds
INTRODUCTION
The purpose of this memo is for the City Council to consider a request for additional
funds from Project Concern for their Fiscal Year 2000 minibus contract services with
the City.
DISCUSSION
On September 14, 2000, the Transit Board considered a request by Project Concern
for additional funds to cover a $9,859.53 cost overrun in their Fiscal Year 2000
minibus contract. Project Concern Transmit Manager Vickie Robrock read from a letter
written by Steve Jacobs who could not attend the meeting. Mr. Jacobs attributed the
expense to higher than anticipated driver hours and maintenance costs. He also stated
he banked heavily on changes in minibus scheduling requirements and fare increases
to keep from going over budget in their Fiscal Year 2000 appropriation of $198,016.
Enclosed is a copy of this correspondence as well as the written correspondence read
to the Board at the meeting.
Mr. Jacobs also said that after talking to his auditors, he was informed that the total
overrun will be within a couple thousand dollars of the budgeted amount and that most
of the net billed over budget to the City would be "adjusted out". The final results of
the audit findings will not be available until late October, 2000. In lieu of the
uncertainty of the exact amount of the cost overrun, the Transit Board agreed to fund
"up to" $9,859.52 subject to available funds and subject to Project Concern audit
findings.
RECOMMENDATION
I would recommend that the decision of the Transit Board be approved by the City
Council while the Project Concern Contract provides for a certain appropriation,
payments to Project Concern have always been based upon actual operating costs.
Over the past several years, Project Concern's yearly operational costs have been
slightly under its budgeted amounts with the City, and these savings were retained by
the City. There have also been years where the contract ran over and the cost overrun
was covered by Project Concern.
This, however, is a fairly large overrun which cannot be absorbed by Project Concern,
and warrants Transit Board and City Council approval.
BUDGET IMPACT
The increased cost will be funded from available Transit Fund balance.
ACTION TO BE TAKEN
The City Council is requested to review the above request and attachments, and to
approve the decision of the Transit Board to provide the additional funding subject to
available funds and the final Project Concern audit.
MAK/vjd
cc: Steve Jacobs, Project Concern
Tim Moerman, Assistant City Engineer
Pauline Joyce, Administrative Services Manager
Mark Munson, Transit Division Manager
KeyLine Transit
2401 Central Avenue
Dubuque, Iowa 52001-3302
(319) 589-4196
D~B~E
~<k~
September 19, 2000
TO:
FR:
Michael Koch, Public Works Director
Mark Munson, Transit Division Manager fI '\
Subject:
Project Concern Request for Additional Funds
Purpose
The purpose of this memo is to consider a request for additional funds from
Project Concern for FY 2000 minibus contract services.
Background
On September 14, 2000 the Transit Board considered a request by Project
Concern for additional funds to cover a $9859.53 cost over run in the FY
2000 minibus contract. Project Concern Transit Manager Vickie Robrock read
from a letter written by Steve Jacobs who could not attend the meeting. Mr.
Jacobs attributed the expense to higher than anticipated driver hours and
maintenance costs. He also stated he banked heavily on changes in minibus
scheduling requirements and fare increases to keep from going over budget in
FY 2000 even though he previously said the contract limit of $198,016 was
"more than enough" for FY 2000 and that "it could be dropped to $195,000
for FY 2001 in his letter to KeyLine October 20, 1999.
I've enclosed a copy of this correspondence as well as the written
correspondence read to the board at the meeting.
Mr. Jacobs also said that after talking to his auditors, he was informed that
the total over run will be within a couple thousand dollars of the budgeted
amount and that most of the net billed over budget to the City would be
"adjusted out". The final results of the audit findings will not be available
until late October 2000. In lieu of the uncertainty of the exact amount of the
cost over run, the Transit Board agreed to fund "up to" $9859.53 subject to
available funds and subject to Project Concern audit findings.
Action Requested
You are asked to review the above request and attachments and refer the
matter accordingly for final disposition.
cc: Pauline Joyce, Administrative Services Manager
Tim Moerman, Assistant City Manager
Service
People
Integrity
Responsibility
Innovation
Teamwork
P~OJ~CT (ON(~~N
j~05 SlONUHtHOAD sum #5 . DUBUOU[IA 52002-521 ~ . (31 0) 5~~.3no . (31 0) 5~~-39~2 fox
Mark Munson, Transit Manager
KeyLine Transit
Dubuque TA 52001-3302
(319) 589-4196
Wednesday, October 20, 1999
RE: Minibus Contract for FY2001
Dear Mark,
You have asked for updated budgetary information regarding the Minibus Contract for
FY2001. The City budget limit of$198,016 is more than enough for next year. I believe
it could be dropped to $195,000. I've done a time study of the allocation of some
administrative costs and determined that a higher portion was assigned to the Minibus
than was appropriate. It looks like this will reduce the total cost in the current year about
$6000 and will, indirectly reduce the amount projected for next year. I expect a reduction
in cost due to integration ofITS systems over the course of the next twelve months.
Those technologies will impact system effectiveness. That should translate as
comparable service delivered in fewer service hours.
I would ask that you clarify what service expectations are included. As I recall, there are
numerous options for creating refinements of service delivery. This would doubtless be
incorporated into any RFP released. I would assume that the City would require that
. services delivered in-house meet the same expectations.
Steve Jacobs
Executive Director
~egion<ll Trdosit Authority -Informdtion & ~elerr61. ~o}ter Gr<lndDMent Progrdm - Crisis Line - Outredch -lnterf<lith Yolunteer CMegivers ~
Volunteer ODDoltunit~ Center - Child CMe Desource & Deferrd\- Senior Circuit. Minibus ~
SEP-14-00 THU 12:05 PM ProjectcoDcerD
^
FAX NO. 3195883982
P. 2
..
'.
Mark Munson, Manager
Keyline Transit Services
City of Dubuque
2401 Central Avenue
Dubuque IA 52001
e-mail kcyline@mwci.net
Wednesday, September 13, 2000
Mark,
You a~ked for some additional explanation concerning the cost overruns on the Minibus contract
for fiscal year 2000. I am happy to oblige. However, this minor anomaly is not nearly as
important as the skyrocketing increases in services that we arc seeing in the current fiscal year.
r'd like to address three areas of concern:
I. Extra costs associated with fiscal year 2000
2. Service growth and associated costs in the current unlimited access to ADA service
3. Suggested changes that could restrict, limit or otherwise manage access to ADA
service, thus constraining net costs to appropriate levels
Costs Associated With Fiscal Year 2000
Driver Costs:
We budgeted 45 hours per week day of driver service for the Minibus contract for FY2000. This
was based on the premise that the stakeholders would meet to iron out some reasonable access
and fare policies for ADA Minibus service. In essence, we hoped to ~ep service hours the same
as the prior year. There was also some hope thatJ.cchnology would be in plac~ to assist us in
some sophisticated ways of scheduling and dispatching as a means to enhance productivity. We
banked most heavily on the stakeholders meeting to implement access and fare changes. As you
all know, nothing has been done to change access or fares. There are no incentives for
appropriate riders to shift out of paratransit to other modalities. And the growth of paratransit
service is commensurate with that. Bottom line: we went a thousand hours over budgeted hours.
It co:ts us roughly $14.00 to provide a driver. Driver cost overrun~.O~
VehIcle Costs: -
Surprisingly fuel costs were under budget, despite the increased cost this Spring. Insurance costs
went over budget $1000. This was an oversight. Maintenance and Pat1s went over budget
$7000. This is most directly related to O~lr aging fleet. (Same thing happened in 1995 when
Mark Munson was \-vorking for Project Concern and the fleet was older.) Our paratransit service
spends a high percentage of time on back roads of Dubuque that are in poor repair. That and the
hills are extremely hard on light duty buses. Add to this the 30% labor cost increase we
experie in the Spring when Sadler Power Train took over Herbst Auto. Vehicle cost overrun
a Q
ct Affect on City Budget:
The total of major cost overruns was $V.J2Q.Q. Because of some cost savings elsewhere and
some extra income realized, the net billed overbudget to the City was only $9000. After talking
with our auditors, I am informed that most of this $9000 will be adjusted out. We showed 27
pay periods this year (as did the City) That inflated costs by several thousand dollars. That
means the adjusted year expenditures will be within a couple thousand of the budgeted amounts.
Service Growth in Current Year:
SEP-14-00 THU 12:06 PM Projectconcern
FAX NO. 3195883982
P. 3
"
..
As mentioned earlier, we budgeted this year for a continuation of the budgeted hours from last
year. We hoped to see meaningful changes made to limit appropriate access and assign
reasonable rider fares. We expected this to contain hours and increase revenues both. The
accompanying spreadsheet shows just how out of control service levels have gottcn to be without
modified access and fare policies. We budgeted 44000 rides and project 56,000 rides. We
budgeted 140,000 miles and project at least 155,000 miles. We budgeted 11,500 hours and
conservatively project 13,500 service hours.
These increases are despite the drop in subscription rides for Area Residential Care. Actually, I
would have predicted a lower productivity figure based on the loss of subscription and the
increase in demand response. Maybe we are getting so many requests it is easier to schedule
higher productivity. At any rate our productivity is running pretty darn good- at 4 rides an hour
at a cost of $6.00 per ride. But the total costs for this heavily expanded level of service
translates as $60,000 more than can be absorbed by the current budget....
Some Possible Solutions:
);> The Design Study recommends raising paratransit fare to $2.00. This would benefit fixed
route substantially.
);> We have dipped well below the 50% subscription service level. We could refuse marginal
rides. This would save substantial money and redirect significant number ofrides back to
fixed route or other appropriate modalities.
);> There are service vendors that receive contracted service for their clients. These include
Area Residential Care, Stonehill Care Center and Dubuque Community Schools. They ,
demand subscription service on the Minibus. This is not required by ADA law. You could
choose to further limit this choice- forcing them to contract services either to Keyline or the
R T A at a reasonable commensurate cost. Or you could agree to allow them access, but
charge a higher farc based on the subscriptions services they have demanded.
);> If you do nothing, you will continue to marginalize fixed route as a viable delivery system
and continue to pump growing levels of resource into a much morc costly means of
providing public transportation.
Last Thought:
It is no secret that the City of Dubuque would like to directly control Minibus service in
Dubuque. That decision really is the City's to make with or without our input. The "solutions"
to the current cunundrums surrounding urban transit are solutions that will apply equally to
Project Concern, the Regional Transit Authority, the City of Dubuque or any other service
vendor who might be engaged to provide paratransit services in Dubuque. To continue to
postpone thcse discussions does a disservice to all of us and allows the general public and others
to take whatever pot shots they want at a]\ of us. Avoiding the issues makes us all look bad. It is
irresponsible to continue to ignore the issues.
SEP-14-00 THU 12:06 PM
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