DART NonMemberPolicy Proposed 2015-12-08

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Agenda ReportCommittee-of-the-Whole

Attachment:1. DRAFT Board Policy

Voting Requirements: Majority

DATE: December 8, 2015

SUBJECT:

Approval of an Amendment to Board Policy III.07, DART Fixed-Route ServiceBeyond Service Area Boundary

RECOMMENDATION

Approval of a resolution amending Board Policy III.07, DART Fixed-Route Service Beyond ServiceArea Boundary, as shown in Exhibit 1 to the resolution and titled as "Policy III.07, DART Services

Outside the Service Area Boundary."

FINANCIAL CONSIDERATIONS

. Contracts with non-service area entities will generate revenue which will offset direct and indirectcosts and include Board-approved access and impact fees beneficial to the Agency.

BUSINESS PURPOSE

. This action item will assist DART in achieving the Board Strategic Priority 3: Optimize DART's

influence in regional transportation planning.

. On March 5, 2013, (Resolution No. 130023), the Board amended this policy by expanding theservices which can be provided to include rail except light rail, bus, and paratransit and limitedcontracting to four years without an election to join the service area.

. To promote the revised policy, DART initiated a campaign to explain the benefits and options ofthe revised Policy III.07 with non-service cities and counties beginning in April 2013 andcontinuing until December 2, 2015. In this campaign, non-service area cities stated that the fouryear election requirement was unacceptable and began to contract with other transit providers.

. In late November 2015, Texoma Area Paratransit System (TAPS) began to experience serious

financial problems causing TAPS to cancel nearly all of the bus and paratransit service providedunder contracts with municipalities in Collin County. North Central Texas Council OfGovernments (NCTCOG) contacted DART to ask for assistance in providing service on anemergency basis.

. On November 17, 2015, DART was authorized to contract with the NCTCOG for 90 days tooperate fixed-route and/or paratransit service.

. Subsequent conversations with Collin County officials indicated that the municipalities wouldprobably not consider any transportation provider which required an election to join the transit

AGENDA ITEM NO. 3

Approval of Policy III.07-COTW2 12/4/2015 11:54:04 AM1


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district even within four years.

. The DART Board began a process to re-evaluate Policy III.07 for non-service area contractservices and Policy IV.05 to consider a new Local Assistance Program for DART cities withoutrail service. This process is to be completed by May 2016.

. Due to the fast moving events and possible decisions in non-service area cities caused by theTAPS financial challenges, it is prudent to consider accelerating an amendment of Policy III.07

(attached to the agenda report as attachment 1), to allow DART to remain a potential provider fornon-service area cities.

. Policy III.07 amendment shown as Exhibit 1 (attached to the resolution) amends paragraphs 3.02,3.03 and 3.05, and eliminates paragraph 3.06. The changes permit non-service area entities tocontract for approved transit service under Policy III.07 without a requirement for an election to

join the service area.

LEGAL CONSIDERATIONS

Section 452.054 of the Texas Transportation Code authorizes DART to exercise all powers necessary

or useful in the construction, repair, maintenance or operation of the public transportation system.

Section 452.056(a)(2) of the Texas Transportation Code authorizes DART to contract with amunicipality, county, or other political subdivision for the authority to provide public transportationservices outside the authority.



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DART Fixed-Route Service Beyond Service Area Boundary Attachment 1Policy III.07, DART Services Outside the Service Area Boundary

Operations III 07

Section 1.

Except for Charter and Special Events services asauthorized by separate policy and other services asdescribed in this policy, DART transit service willnot extend beyond the boundaries of the DARTService Area. For the purposes of this policy, D/FWAirport is considered to be part of the DART ServiceArea.

Section 2.

Existing bus routes may be extended to service anypublicly-funded, post-secondary educationalinstitution whose campus is contiguous to theDART service area when the extension does notinvolve operation over the streets of a non-memberjurisdiction and the institution enters into aninterlocal agreement to pay DART the fullyallocated cost of such service.

Section 3.

3.01 DART shall consider providing rail, bus orparatransit service outside the DARTService Area under one or more serviceagreements.

3.02 A service agreement under this sectionmust be approved by the DART Board ofDirectors, shall not adversely impact ordelay any transit service that is included inthe then-current Transit System Plan andTwenty Year Financial Plan and shall notbe inconsistent with any DART policy orprogram for paid parking at DART facilities.A service agreement under this sectionshall include the following elements:

a.

Funding for the service shall besufficient to pay for the fully burdenedoperating and capital cost of theservice being provided for the durationof the contract.

b. The agreement shall require paymentof an access fee reflecting the valueof any connection to the DART service

area consumed by the non residentpatrons and intangibles the connectingservice consumed by the non-residentpatrons provided by DART to thecontracting entity as approved by theDART Board of Directors.

c. The agreement shall require paymentof an impact fee if the contractedservice causes DART to incuradditional direct operating or capitalcosts to accommodate patrons wholive outside of the DART Service Area

3.03 A service agreement between DART and amunicipality or county under this sectionmay continue without limitation regardingthe duration or number of agreements. asspecified in the service agreement, but forno longer than 48 months except asspecified in this Policy. After execution ofthis agreement, the municipality or countyshall not encumber available funds beyond48 months and if such an encumbrancetakes place, such agreement shallterminate.

DATE ISSUED: April 25, 1995

Resolution No. 950097Amended by Resolution: 970226, 040098, 110037, 130023

Policy No. III 07(Operations)



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Operations III 07

3.04 Within the first 36 months of aa serviceagreement agreement between DART anda municipality or county, DART shallprepare a transit system plan and asupporting financial plan for themunicipality or county; The municipality orthe county shall provide of the fundingfor such transit system plan and supporting

financial plan with payment of of theestimated cost to be paid uponcommencement of the work and theremaining balance of of actual expenseupon completion of the work. In the eventthat a municipality or county fails or refusesto provide all or portion of the funding forthe development of a transit system planand twenty year financial plan, the serviceagreement shall terminate within thirty (30)days and DART shall cease service in themunicipality or county being provided underthe agreement.

3.05 Such service may be provided directly byDART or through a DART local governmentcorporation in compliance with the transitsystem plan and twenty year financial planprepared for the municipality orcounty.Service under a service agreementwith a municipality or county shall notcontinue beyond 48 months unless thegoverning body of municipality or countycalls and holds within such 48-monthperiod an election to add its territory to theDART Service Area. Such election shalldedicate the excess of special sales anduse tax revenues as specified in Section452.6025 Texas Transportation Code overcurrent commitments, not enter into anyfurther encumbrance of special sales and

use taxes, and as any contractualobligations and indebtedness supported bysuch special sales and use taxes are paidoff, dedicate such funds to DART with theultimate goal that a full one cent shall be

dedicated to DART.

a. If a majority of votes cast in such anelection favor the proposition, and incompliance with provisions of law regardingaddition of territory to the DART ServiceArea, DART may enter into suchagreements with the jurisdiction as may benecessary to implement permanent transitservice in the jurisdiction, including theeventual addition of the jurisdiction to the

DART Service Area. Voting representationon the DART Board of Directors shall bespecified in the service agreement incompliance with applicable laws.

b. If a majority of votes cast in such anelection do not favor the proposition or novote takes place within the time specified inthe service agreement, the service beingprovided under a service agreement shallterminate within thirty days.

3.06 Service under a service agreement with amunicipality or county may continuebeyond 48 months provided that thegoverning body of municipality or countydedicates funding for the service through asales tax or other source that is equivalentto or grows at an equivalent rate to a onecent sales taxes through an election orother means. Such service may beprovided directly by DART or through aDART local government corporation incompliance with the transit system plan andtwenty year financial plan prepared for themunicipality or county.



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Operations III 07



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DRAFT

RESOLUTION

of the

DALLAS AREA RAPID TRANSIT BOARD

(Executive Committee)

Approval of an Amendment to Board Policy III.07, DART Fixed-Route Service Beyond ServiceArea Boundary

WHEREAS, DART provides public transportation services within its service area boundary tosupport mobility, air quality and economic development objectives; and

WHEREAS, DART operates bus, light rail, commuter rail, streetcar, paratransit, vanpools and othertypes of transit services that are increasingly attractive to nonresidents outside DART's service area;and

WHEREAS, in November 2015, TAPS began to experience serious financial problems causingTAPS to cancel nearly all of the bus and paratransit service provided under contracts withmunicipalities in Collin County. NCTCOG contacted DART to ask for assistance in providingservice on an emergency basis; and

WHEREAS, on November 17, 2015, the Board authorized DART to contract with the NCTCOG for90 days to operate fixed route and/or paratransit service; and

WHEREAS, the Board ongoing process to re-evaluate Policy III.07 is not scheduled for completionuntil May 2016; and

WHEREAS, Collin County officials indicated that the municipalities will not consider atransportation option requiring an election to join the transit district; and

WHEREAS, due to the fast moving events and imminent decisions to choose a new contractprovider in non-service area cities, it is prudent to accelerate an amendment of Policy III.07, to allowDART to remain a potential provider for non-service area cities.

NOW THEREFORE, BE IT RESOLVED that the Dallas Area Rapid Transit Board of Directorsapprove the amendment of Board Policy III.07, DART Fixed-Route Service Beyond Service AreaBoundary, as shown in Exhibit 1 to the resolution and titled as "Policy III.07, DART Services

Outside the Service Area Boundary."

Approval of Policy III.07-COTW2 1


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Approval o an Amendment to Board Policy

111.07

DART Fixed Route Service Beyond Service

Area Boundary

t i

repared by:

II

Todd Plesko

Vice President

Planning and Development

pprovedby -

//

~

Timothy H. McKay,

Executive Vice President

GrowthlRegional Development

Approved as to form:

General Counsel

Scott Carlson

Approved by:

Approval

of

Policy III.07-COTW2

2


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Exhibit 1Policy III.07, DART Services Outside the Service Area Boundary

Section 1.

Except for Charter and Special Events services asauthorized by separate policy and other services asdescribed in this policy, DART transit service willnot extend beyond the boundaries of the DARTService Area. For the purposes of this policy, D/FWAirport is considered to be part of the DART ServiceArea.

Section 2.

Existing bus routes may be extended to service anypublicly-funded, post-secondary educationalinstitution whose campus is contiguous to theDART service area when the extension does notinvolve operation over the streets of a non-memberjurisdiction and the institution enters into aninterlocal agreement to pay DART the fullyallocated cost of such service.

Section 3.

3.01 DART shall consider providing rail, bus orparatransit service outside the DARTService Area under one or more serviceagreements.

3.02 A service agreement under this sectionmust be approved by the DART Board ofDirectors, shall not adversely impact ordelay any transit service that is included inthe then-current Transit System Plan andTwenty Year Financial Plan and shall notbe inconsistent with any DART policy orprogram for paid parking at DART facilities.A service agreement under this sectionshall include the following elements:

a.

Funding for the service shall besufficient to pay for the fully burdenedoperating and capital cost of theservice being provided for the durationof the contract.

b. The agreement shall require paymentof a fee reflecting the value of anyconnection to the DART service area

consumed by the non resident patronsand intangibles provided by DART tothe contracting entity as approved bythe DART Board of Directors.

c. The agreement shall require paymentof an impact fee if the contractedservice causes DART to incuradditional direct operating or capitalcosts to accommodate patrons wholive outside of the DART Service Area

3.03 A service agreement between DART and amunicipality or county under this sectionmay continue without limitation regardingthe duration or number of agreements.

3.04 Within the first 36 months of a serviceagreement between DART and amunicipality or county, DART shall preparea transit system plan and a supportingfinancial plan for the municipality or county;The municipality or the county shall provide of the funding for such transit systemplan and supporting financial plan withpayment of of the estimated cost to bepaid upon commencement of the work andthe remaining balance of of actualexpense upon completion of the work. In

DATE ISSUED: April 25, 1995

Resolution No. 950097Amended by Resolution: 970226, 040098, 110037, 130023

Policy No.III

07(Operations)



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Exhibit 1Policy III.07, DART Services Outside the Service Area Boundary

the event that a municipality or county failsor refuses to provide all or portion of thefunding for the development of a transitsystem plan and twenty year financial plan,the service agreement shall terminate

within thirty (30) days and DART shallcease service in the municipality or countybeing provided under the agreement.

3.05 Such service may be provided directly byDART or through a DART local governmentcorporation in compliance with the transitsystem plan and twenty year financial planprepared for the municipality or county.


Documents

DART NonMemberPolicy Proposed 2015-12-08