THE TRANSPORTATION DEPARTMENT/TRANSIT DIVISION RECOMMENDS APPROVAL OF THE ABOVE MOTION
The Transit Division has received a request from the City of Hollywood (City) for approval to terminate for convenience, the Interlocal Agreement (ILA) between Broward County and the City for Community Bus (Shuttle) Service, Financial Assistance Only, effective June 30, 2019. The County currently provides the City with funding in the not-to-exceed annual amount of $52,830 to operate a Downtown Beach-South Community Shuttle route utilizing City owned vehicles. The City initially submitted a written request to BCT on March 7, 2019, and then a follow-up letter dated April 3, 2019, to terminate the ILA with the County and cease operation of the Downtown Beach-South route because the City has pursued an on-demand service (Exhibit 1). The City selected the on-demand service via a competitive bid process and on October 17, 2018, the City Commission approved a Resolution to authorize the City to enter into agreement with the selected vendor "The Free Ride" for the on-demand service. On April 30, 2019, the City’s new on-demand service began operation in the Hollywood downtown and beach areas. The City’s Downtown Beach-South route is scheduled to end operation effective June 30, 2019. In accordance with the County's agreement with the City, a public Hearing was held by the City on May 1, 2019 to announce the changes.
As background, on August 12, 2014, (Item No. 9), the Board approved four standard form interlocal agreements (ILAs) between Broward County and various municipalities for Community Bus Transportation Services and authorizing the County Administrator, or designee, to execute individual agreements, in substantially the same format, with each of the municipalities and to take any administrative actions deemed necessary for the agreements; for a term of up to three years, beginning October 1, 2014, ending September 30, 2017, with two, one-year renewal options (through September 30, 2019) upon written approval of Contract Administrator, subject to Board of County Commissioners (Board) approved budgetary funding levels. The City entered into an agreement with the County on May 4, 2016, for $15 per revenue hour in operational financial assistance only for the operation of three routes, the Beach Line, the Downtown Beach-North route and the Downtown Beach - South Route for an annual not-to-exceed funding amount of $159,900.
On July 18, 2018, the ILA was amended to reduce the service hours and County funding for two of the three routes, the Beach Line and the Downtown Beach-North only routes as those routes did not meet the 7.1 passenger per hour criteria for continued funding. Additionally, under Article 2, a new section was added, Section 2.8.1 Underperforming Routes, which states, "Notwithstanding COUNTY's right to terminate this Agreement under Section 2.8. it is understood and agreed upon between COUNTY and CITY that upon CITY's failure to maintain a minimum of 7.1 passengers per Revenue Service Hour per Route during any 12 month period, COUNTY may elect to modify and/or cease payment of any underperforming Route(s). COUNTY shall send notice in accordance with the "NOTICES" section of this Agreement, to CITY at least 30 days prior to modifying and/or terminating payment of the underperforming Route(s)." The agreement with the City will expire September 30, 2019.
The City elected to continue operating the Beach Line and the Downtown Beach-North route without County funding assistance, but the County continued to fund the Downtown-South Trolley route at the not-to-exceed annual amount of $52,830. By terminating the agreement on June 30, 2019, the estimated cost savings are $13,260 for the remainder of Fiscal Year 2019. |