Discussion and possible action to approve Intergovernmental Agreement Amendment with the Regional Public Transportation Authority for transit services, in accordance with budget authority previously approved by Council in the Fiscal Year 2024 Budget.

The City of Peoria Transit Division is dedicated to providing a range of reliable and accessible bus transit services to the community, such as fixed route, express, circulator, Americans with Disabilities Act (ADA), and Dial-A-Ride. For FY23, an estimated 180,000 passengers will be served by transit in Peoria, which is a projected increase of 13% over the previous year of 160,000 passengers served. To continue offering these services through the Regional Public Transportation Authority (RPTA), also known as Valley Metro, the intergovernmental agreement (IGA) is amended annually.

This IGA amendment modifies Schedule “A”, Schedule “B”, Schedule “C” and Schedule “E” to the agreement last entered into on July 1, 2022.  These schedules are updated annually, and if approved will result in the following service provisions:  

These various public transit services are funded through two different funding sources. Regional funds from the Proposition 400 countywide transportation half-cent sales tax, also known as the Public Transportation Fund (PTF), which support fixed and express bus services (Schedule “A”) and provides reimbursement for allowable costs incurred by Peoria in transporting ADA certified passengers (Schedule “E”). Local funds from Peoria’s Transportation Sales Tax (TST) supports POGO Destinations (Schedule “B”) along with regional ADA mandated paratransit and local non-ADA overflow service (Schedule “C”).

This year’s costs for services show a reduction due to the use of federal funds received through the American Rescue Plan Act (ARPA).  A total of $173,641 in ARPA funds will be applied to fixed route services (Schedule “A”) provided in Peoria through this agreement for FY24.  In addition, revenue that is collected from fares and federal grants for preventative maintenance will offset costs. Likewise, the cost of POGO Destinations (Schedule “B”) is reduced in FY24 compared to FY23 due to the service being evaluated for discontinuation in October 2023, which is four months of service remaining.  

In summary, for FY24, $3,580,972 of PTF funding is budgeted for Schedule “A” and Schedule “E”, and $1,599,815 of TST funding is budgeted for Schedule “B” and Schedule “C”. The City is responsible for any additional expenses and will work with RPTA closely to monitor and minimize these costs should they occur.

The last agreement between RPTA and the City of Peoria was approved by City Council on June 21, 2022 for FY23 transit services. 

Staff recommends acceptance of the IGA Amendment with the Regional Public Transportation Authority (RPTA) for transit services.  The costs for these services were previously approved during the budget adoption process for FY24.  

Funding for this request is budgeted in the FY24 Operating Budget for Transit. This IGA amendment also generates reimbursement funding which is reflected in the FY24 budget.