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Home My WebLink About5C Authorizing Mayor and City Manager to Execute Fare Reimbursement Agreement with Met Council for Laker LinesPRtO� U 1 rNxISso�% 4646 Dakota Street SE Prior Lake. MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 4, 2011 AGENDA #: 5C PREPARED BY: JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIRECTOR PRESENTED BY: JANE KANSIER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A FARE REIMBURSEMENT AGREEMENT WITH THE METROPOLITAN COUNCIL FOR LAKER LINES DISCUSSION: Introduction The purpose of this agenda item is to ask the City Council to authorize the Mayor and City Manager to execute a Fare Reimbursement Agreement with the Metro- politan Council. The Agreement will allow the City to receive reimbursement for Convenience /Prepaid fare revenues collected from Laker Lines riders. History In 2001, the City of Prior Lake began operating Laker Lines bus service. Passen- gers of this service are allowed to pay fares with regional fare cards. Passengers purchase fare cards from the Metropolitan Council. Providers are then reim- bursed a portion of these fares, subject to the provisions of the Fare Reimburse- ment Agreement. The City has entered into previous fare reimbursement agree- ments. Current Circumstances The Agreement lays out the terms of reimbursement, reporting requirements, and adjustments. The Agreement is effective from April 1, 2011, until December 31, 2015. Conclusion The City Attorney reviewed the attached Agreement and did not identify any legal issues. ISSUES: In order to receive reimbursement, the City must sign the attached Agreement. The City has budgeted $100,000 in fare revenue in 2011. Without the Agreement, the City will not receive these funds. FINANCIAL In the past two years, the City has received $90,000 to $100,000 per year in fare IMPACT: reimbursement. If this Agreement is not approved, the City will no longer receive these funds. ALTERNATIVES: 1. Approve the attached resolution authorizing the Mayor and City Manager to execute the attached Fare Reimbursement Agreement with the Metropolitan Council. 2. Deny the attached resolution. 3. Provide staff with further direction. A motion and second to approve the attached resolution authorizing the Mayor and City Manager to execute the attached Fare Reimbursement Agreement with tlye Metropolitan Council. RECOMMENDED MOTION: 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 11 -xxx A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A FARE REIMBURSEMENT AGREEMENT WITH THE METROPOLITAN COUNCIL WHEREAS, The City of Prior Lake operates a transit service known as Laker Lines; and Motion By: Second By: WHEREAS, Laker Lines is part of the metropolitan region transit system; and WHEREAS, The Metropolitan Council is authorized by Minnesota Statutes, section 473.408, to establish and administer fare structure in the Twin Cities Metropolitan Area; and WHEREAS, The regional fare structure provides regional fare levels and regional fare tools, such as prepaid fare media, for the use of all regional public transit providers to accept as payment for rides; and WHEREAS, The purpose of the Fare Reimbursement Agreement is to define the terms and conditions under which the Metropolitan Council will distribute fare revenues to the City of Prior Lake. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to execute the attached Fare Reimbursement Agreement with the Metropolitan Council. 3. All revenues received as a result of this agreement will be deposited into the Transit Services Fund. PASSED AND ADOPTED THIS 4T" DAY OF APRIL, 2011. YES NO M ser M ser Erickson Erickson Hedberg Hedber Keene Keene Soukup Souku Frank Boyles, City Manager CADocuments and Settings \cgreen \My Documents \SharePoint Drafts\ Fare _Reimbursement_Resolution.doc Agreement No. AGREEMENT BETWEEN THE METROPOLITAN COUNCIL AND FOR TRANSIT CONVENIENCE/PREPAID FARE REIMBURSEMENTS THIS AGREEMENT is made and entered into by and between the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota, ( "Council "), and , a transit operating entity of ( "Provider "). WHEREAS: 1. The Metropolitan Council is authorized by Minnesota Statutes, section 473.408, to establish and administer fare structure in the Twin Cities Metropolitan Area, referred to as the "region" in this agreement. 2. The regional fare structure provides regional fare levels and regional fare tools, such as prepaid fare media, for the use of all regional public transit providers to accept as payment for rides. 3. The Provider is a regional public transit provider that provides public transit service subject to the regional fare structure. 4. The Council's Metro Transit division administers all Convenience/Prepaid Fare programs for the region and is the recipient of all Convenience/Prepaid Fare revenue. 5. Convenience/Prepaid Fare revenue is distributed on a per ride reimbursement basis to eligible providers in an equitable manner as determined by the Council. 6. The purpose of this Agreement is to define the terms and conditions under which the Council, through its Metro Transit division, will distribute Convenience/Prepaid Fare revenues to the Provider, including fares that are eligible for reimbursement, the reimbursement value per ride of various Convenience/Prepaid Fares, data collection requirements, and required methods for the reimbursement process. NOW, THEREFORE, the above -named parties hereby agree as follows: 1. Definition of a Convenience/Prepaid Fare. A Convenience/Prepaid Fare is defined as a fare prepaid by a customer prior to a transit ride. A Convenience/Prepaid Fare allows a customer to board a regional transit vehicle by using the prepaid fare media, in whole or in part, instead of cash for payment of the transit fare. 2. Types of Convenience/Prepaid Fares; Reimbursement Value. At the time this agreement is entered into, the region uses the following types of Convenience/Prepaid Fares: • tokens • stored value cards • stored ride cards • Period Passes (i.e., 31 day pass, 7 day pass, day pass) • MetroPasses • U- Passes • College Passes • Mobility Smart Cards • Mobility Flash Pass • Mobility Magnetic Pass • Young Adult Ride Card • Employee Pass • Ramp and Ride • Student Pass • Coupons (i.e., mass marketing, jury duty, single /free ride coupons) Tokens, stored value cards, stored ride cards, MetroPasses, U- Passes and Mobility Passes are sold at a discount from their face cash value and thus have a reimbursement value per ride equal to the discount applied to the per ride face cash value. The following two elements are considered in determining the reimbursement value per ride: (1) the fare in effect at the time of usage and (2) the fare product. For most fare products, the reimbursement value per ride rate is the discounted value of the fareset. The current reimbursement value per ride of Convenience/Prepaid Fare rides is set forth on Exhibit A, the Convenience Fares Reimbursement Tracking Form, which is attached hereto and incorporated herein by this reference. 3. Fare Adjustments. If the Council adjusts regional fares during the term of this agreement, it shall prepare a revised Exhibit A reflecting any changes in the reimbursement value per ride of various classes of rides in accordance with the methodology described in Section 2 above. The Council shall provide written notice and a copy of the revised Exhibit A to the Provider. The revised exhibit, including the reimbursement value per ride of each type of ride, shall be effective upon the effective date of the fare change and without formal amendment of this Agreement. 4. New Convenience/Prepaid Fare Tools. Periodically, new Convenience/Prepaid Fare tools are developed for the region by the Council. The reimbursement value per ride for any such new Convenience/Prepaid Fare Tools will be determined by the Council using the methodology described in Section 2. Distribution of revenues from any such new Convenience/Prepaid Fare tools developed for the region during the term of this agreement shall be governed by the provisions of this Agreement. In the event the Council develops a new Convenience/Prepaid Fare tool as described in this section, the Council shall provide written notice and a copy of the revised Exhibit A, and instructions for the public availability and validity of the new fare tool, to the Provider no less than 30 days before the effective date of the tool. The revised exhibit, including the reimbursement value per ride of the new fare tool shall be effective 30 days from the receipt of a revised Exhibit A by the provider and without formal amendment of this Agreement. In the event a new fare tool is made available with less than 30 2 days notice, the provider, at its sole option, may, until the 30 days have been completed, either deny the use of the fare tool and require an alternate method of payment, or accept the fare tool for proper payment and be reimbursed the full cash value for the ride taken, or accept the fare tool at the proposed reimbursement value. 5. Regional Transfer Reciprocity. The Council's regional fare structure provides for full regional transfer reciprocity among all regional transit providers subject to the regional fare structure. That is, all regional public transit provider issued transfers shall be accepted by all other regional public transit providers without charge and without seeking any reimbursement of Convenience/Prepaid Fare revenue for such transfers. The Provider agrees to implement regional transfer reciprocity in accordance with this section and no transfer rides shall be included in the Provider's requests for reimbursement of Convenience/Prepaid Fare revenue. In order to implement this policy, when a Convenience/Prepaid Fare tool is used as a transfer, the Provider shall ensure that its farebox driver displays will read "TRANSFER" and that the farebox data system will classify the ride as a transfer. 6. Reimbursement for Convenience/Prepaid Fare Eligible Rides. Subject to the limitations and reductions provided for in this section and the regional transfer reciprocity provisions of Section 5, the Provider shall be reimbursed for the reimbursement value of all Convenience/Prepaid Fare eligible rides provided during a billing cycle. a. Pre -sold Portion Limitation. The Provider may request reimbursement only for the pre -sold portion of a fare. For example, a customer boarding a peak express bus with a low denomination 31 -day pass must supplement the ride with cash in the farebox. In such case, the Provider shall retain the cash amount and may only request reimbursement based on the pre -sold portion of the fare. b. Reimbursement Reductions. The following percentage reductions will be applied to the gross amount of reimbursement to the Provider for Convenience/Prepaid Fare eligible rides provided during the billing cycle: • 1.81% for commissions paid to outlets who sell Convenience/Prepaid Fares, and • for any provider not involved in Motor Vehicle Excise Tax revenue sharing through the Regional Transit Fund, an additional 5.31 % administrative fee. 7. Data Collection. The Provider shall base any application for reimbursement from Convenience/Prepaid Fare revenue reports from the regional fare data base. Using a standard report format created by the Council providers will request Convenience/Prepaid Fare reimbursement using electronically generated farebox and smart card data that includes ridership by fareset (fare in effect), ride type, Convenience/Prepaid Fare value and Convenience/Prepaid Fare type. 8. Reporting of Data and Requests for Reimbursement. The Provider shall use the Convenience Fares Reimbursement Tracking form shown on Exhibit A, or such other form as may be specified by the Council, in order to report Convenience/Prepaid Fare eligible rides provided during a billing cycle and to request reimbursement of Convenience/Prepaid Fare revenue. The provider will complete the Convenience Fares Reimbursement Tracking form using electronically generated data from the regional fare data base. In addition: a. The provider will complete the Reimbursement Adjustments form, which is attached hereto as Exhibit B, based on other locally stored data to make adjustments to the total invoice amount. The "Adjusted Invoice Total" found on Exhibit B is equal to the payment request. b. If the "Adjusted Invoice Total" on Exhibit B exceeds the total amount shown at the bottom of Exhibit A by: a. 5.5% for calendar year 2011 b. 4 % for calendar year 2012 c. 3 % for calendar year 2013 d. 2 % for calendar year 2014 and all subsequent years the provider must submit detailed documentation that supports the adjustments listed on Exhibit B. C. Requests for reimbursement by the Provider shall be submitted on a calendar monthly basis. The Provider shall request reimbursement by submitting a Convenience Fares Reimbursement Tracking Form for the applicable billing cycle accompanied by an - invoice. The Provider shall submit the form and an invoice for each billing cycle no later than 90 calendar days after the end of the billing cycle. d. The forms and invoice shall be submitted to the following address or such other address as the Council may designate in writing to the Provider: Metro Transit 560 Sixth Avenue North Minneapolis, MN 55411 -4398 Attn: Rich Moore richard.moorenmetc. state.mn.us 9. Council Review of Forms and Invoices; Payment. Upon receipt, the Council shall review the Provider's Convenience Fares Reimbursement Tracking Form (Exhibit A), Reimbursement Adjustments (Exhibit B) and the invoice. The Council retains the right to request additional information prior to payment and to withhold payment until proper information is received from the Provider. The Council shall remit the undisputed amount of any invoice to the Provider within 30 calendar days from receipt of the invoice. Undisputed invoices that are not paid by the Council within 30 calendar days from receipt of the invoice are subject to a 1.5% late fee. 10. Maintenance of Records; Audit. The Provider agrees to maintain during the term of this agreement and for six years following such term, records and files related to the reimbursement requests made by the Provider under this agreement including, without limitation, the ridership on which the requested reimbursements are based and all documentation that supports adjustments shown on Exhibit B. During the time of such maintenance, authorized representatives of the Council, the Legislative Auditor, and the State Auditor shall have access to all such records and files for the purpose of inspection, audit, and copying during normal business hours. 11. Relationship of Parties. Nothing in this Agreement shall be deemed or construed as creating the relationship of principal and agent, of partnership, or of joint venture between the parties. 12. Reservation of Rights. Nothing in this agreement shall be deemed or construed to modify or limit any statutory authority or legal obligations or responsibilities of the Council. 13. Duration of Agreement; Termination. Unless terminated earlier in accordance with this Section 13, this Agreement shall be effective from April 1, 2011 until December 31, 2015. Thereafter, subject to the termination provisions of this agreement, this fare reimbursement agreement shall automatically renew for subsequent one calendar year terms unless either party gives written notice to the other party, prior to the beginning of such subsequent calendar year, that it does not wish to renew the fare reimbursement agreement. This agreement may be terminated, at any time, with or without cause by either party, upon 30 calendar days' written notice to the other party. IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized officers on the dates set forth below. METROPOLITAN COUNCIL am Regional Administrator Date: Date: Date: Approved as to Form: Approved as to Form: By: By: Office of General Counsel Metropolitan Council Exhibit A (as of 12/31/2010) Summary Farebox and Smart Card Month/Year Dec, 2010 Provider Name sample Page 1 ----- -- --- - -- - -- Service Type Name----------- -- -- Local Non rush Local Rush Express Non Rush Express Rush Smart card Downtown Total Rides reimbursed at value ver ride Farebox rides reimbursed per ride (from page 1) 0 0 0 0 0 Smart card rides reimbursed per ride (from page 2) 0 0 0 0 0 0 Total rides reimbursed per ride 0 0 0 0 0 0 Farebox per ride gross reimbursement value $ - $ - $ - $ - $ - Smart card per ride gross reimbursement value $ - $ - $ - $ - $ - $ - Total per ride reimbursement value $ - $ - $ - $ - $ - $ - Deduct Retail Outlet Commission Fees at 1.81% $ - Deduct Adm fees at (if not part of Motor Vehicle Excise Tax Revenue Sharing 5.31% Invoice Total -:Net Reimbursement for Farebox Rides Reimbursed Per ':Ride $ Page 1 Exhibit A (as of 12/31/2010) Farebox Rides by Fare Instrument and Service Type-- Oriainal boardinas only: no transfers From Regional Fare Database Farebox Information Month /Year_Dec, 2010 Provider Name Sample Rides reimbursed at value Der ride Input shaded areas ---------- - - - - -- Service Type Name ----------- - - - -- Fare Instrument Category Farebox data Location Local Non rush Local Rush Express Non Rush Express Rush Total Rides $59 -31 day pass TTP 45 0 0 ." _ 'Q 0 0 Rate per ride $ 1.591 $ 1.591 $ 1.591 $ 1.591 Reimbursement $ - $ - $ - $ - $ - Rides $65 -31 day pass TTP 46 0 '0 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.045 Reimbursement $ - $ - $ - $ $ - Rides $112 -31 day pass TTP 47 0 0 0 . 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ g2.7 Reimbursement $ - $ - $ - $ $ - Rides Stored value card TTPs 5,6,7,43 0 0 0 1 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides *Magnetic Metropass (temp card) MetroPass 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Employee Pass & Ramp and Ride manual count 0 0 r,, ." -0: 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Young adult 10 ride card TTP 35 0 0 0 0 0 Rate per ride $ 0.682 $ 2.045 $ 0.682 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Mobility Flash Pass TTP 22 0 0 0 0 0 Rate per ride $ 0.682 $ 0.682 $ 0.682 $ 0.682 Reimbursement $ - $ - $ - $ - $ - Rides Mobility magnetic pass TTP 4 .0 0 0 0 0 Rate per ride $ 0.682 $ 0.682 $ 0.682 $ 0.682 Reimbursement $ - $ - $ - $ - $ - Rides Magnetic cards not read by farebox Star Key 0 0 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Tokens TTP 29 0 0 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Coupons Coupons --V 1, 1,10 0 > 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Reduced fare Senior 0 0 io 0- 0 Rate per ride $ 0.682 $ 2.045 $ 0.682 $ 2.727 Reimbursement $ - $ - $ - Is - Is - Grand Total Rides 0 0 0 01 0 Grand total farebox per ride gross reimbursement $ - $ - $ - 1 $ - $ - * These rides are typically smart card rides, but in some circumstances rides are recorded on fareboxes Page 2 Exhibit A (as of 12/31/2010) Smart Card Rides by Fare Instrument and Service Type - Original boardinas only: no transfers From Regional Fare Database Cubic Information Month/Year. . Dec 2010 Provider Name j Sa mple Rides reimbursed at value Der ride Input shaded areas ---------- - - - - -- Service Type Name --------------- - Fare Instrument Category Local Non Rush Local Rush Express Non Rush Express Rush Downtown Total Rides $69-31 day pass TTP 46 0 0 , 0 1 0 0 Rate per ride $ 1.591 $ 1.591 $ 1.591 $ 1.591 Reimbursement $ - $ - $ - $ - $ - Rides $85-31 day pass TTP 46 0 0 I 0 0 0 Rate per ride $ 1.591 $ 2.0451 $ 2.045 $ 2.045 Reimbursement $ - $ - $ - $ - $ Rides $112 -31 day pass TTP 47 0 0 0 0 r 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ Rides Stored value card TTPs 6,6,7,43 0 0 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides Imetropass MetroPass 0 01 1 0 0 0 Rate per ride 1 $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ Rides 1cpass CPass 0 0 0 0 0 Rate per ride 1 $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ Rides jupass UPass 0 0 0 0 0 Rate per ride 1 $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ $ - $ $ - Rides Ramp and Ride Free Ride Fare Instr ID 22535 or 29186 0 0 0 0 0 Rate per ride $ 0.682 $ 0.682 $ 0.682 $ 0.682 Reimbursement $ - $ - $ - $ - $ - Rides Employee Pass Free Ride Fare Instr ID 28929 0 0 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ Rides Young adult 10 ride card TTP 36 0 0 0 . 0 0 Rate per ride $ 0.682 $ 2.045 $ 0.682 $ 2.727 Reimbursement $ $ - $ - $ - $ Rides Mobility Smart Card TTP 4 0 0 0 0 0 Rate per ride $ 0.682 $ 0.682 $ 0.682 $ 0.682 Reimbursement $ - $ - $ - $ - $ Rides Weekly Pass Fare Inst ID 32001 ;; 0 0 : 0 0 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ - Rides HI h School Pass TTP 34 0 0 0 0 1 A 0 Rate per ride $ 1.591 $ 2.045 $ 2.045 $ 2.727 Reimbursement $ - $ - $ - $ - $ Rides Downtown Downtown 0 0 Rate per ride $ 0.455 Reimbursement $ - $ Grand Total Rides 0 0 0 0 0 0 Grand total smart card per ride gross reimbursement $ 1 $ - 1 $ - $ $ 1 S - Page 3 Exhibit B (as of 12/31/2010) MonthNear Dec 2010 Provider Name SamnlP AllowableThreshold Percentage Variance Per Section 8b 5.50% Calculated Provider Fare Adjustment Percentage from above #DIV /01 B / A Is Detailed Documentation of Adjustment Needed #DIV /01 ---------- - - - - -- Service Type Name----------- - - -- Local Non rush Local Rush Express Non Rush Express Rush Smart card Downtown Total Total Regional Fare Rides 0 0 0 0 0 0 Provider Adjustment Rides 0 0 0 0 0 0 Total Rides for Reimbursement 0 0 0 0 0 0 0 Total Regional Fare Reimbursement $ $ $ $ $ $ Provider Fare Adjustment $ - $ _ $ $ $ _ $ _ Total Fare For Reimbursement $ - $ $ $ $ _ $ Deduct Retail Outlet Commission Fees at 1.81% $ Deduct Adm fees at (if not part of Motor Vehicle Excise Tax Revenue Sharing 5.31% Adjusted Invoice Total - Net Reimbursement for Farebox Rides Reimbursed Per Ride $ - AllowableThreshold Percentage Variance Per Section 8b 5.50% Calculated Provider Fare Adjustment Percentage from above #DIV /01 B / A Is Detailed Documentation of Adjustment Needed #DIV /01