Fiscal Note
The resolution authorizes participation in an RFP process to identify a business or non-profit which would be able to act as a broker for the City of Madison on a one-year pilot basis to sell and market unlimited ride annual passes to small employers for a specified amount per employee. Metro would bill the broker for the actual number of rides taken to be charged at $0.88 per ride in 2007 and $0.952 per ride in 2008. Costs not to exceed $20,000 for planning, marketing, and set-up costs will be borne by the City Parking Utility as part of its Transportation Demand Management program. The funding is included in the Parking Utility 2007 Adopted operating budget.
Title
SUBSTITUTE - Authorizing the Transit Division to participate in an RFP process to identify a broker to advertise and manage an unlimited ride pass program for smaller employers in the Metro Transit service area for a pilot period of one year.
Body
Metro Transit, a division of the City, would like to continue to expand unlimited ride pass programs that have been successful with partners in the past. Unlimited ride pass programs encourage ridership that results in increased revenue, strengthens the City's transportation infrastructure and has a positive impact on the environment by reducing automobile use, in keeping with City goals.
While Metro Transit currently has unlimited ride pass agreements with large employers and institutions in the area, this one-year broker pilot program would market and sell unlimited ride passes to smaller employers for their employees. The broker would sell passes to an employer for all of its employees for a set price per pass. Metro would bill the broker for the actual number of rides taken at the per ride rate in the current fare tariff.
WHEREAS the City of Madison wishes to find a broker to pilot an unlimited ride pass program for smaller employers (employers with 500 employees or less fewer) in the Madison area, with a goal that at least half of the enrolled employers have 30 or fewer employees, based on principles approved by the Madison Transit and Parking Commission. The targeted employers should include private, non-profit and other work locations; and
WHEREAS the City of Madison Parking Utility would provide an amount not to exceed $20,000 for marketing, planning, and set-up costs for this program. This money would be in addition to profits earned per pass above fees owed to Metro; and
WHEREAS the broker selected for this contract would develop a price structure that would cover its costs for the distribution of the passes, all record keeping, reimbursement on a per-ride basis to Metro according to its official fare tariff of $0.88 per ride in 2007 and $0.952 in 2008; and any additional costs it incurs related to this program;
NOW THEREFORE BE IT RESOLVED that the City of Madison is authorized to participate in an RFP process to identify a broker for implementation and management of an unlimited ride pass pilot program for employees of smaller employers; and
BE IT FURTHER RESOLVED that the RFP will have a goal of getting 1,000 new riders during the first year of the program; and
BE IT FURTHER RESOLVED that for part of the $20,000, the vendor shall provide the following services that shall become the property of Metro Transit:
a. surveys (including members of United Way, Community Shares of Wisconsin and neighborhood business associations) of business and rider transit needs and preferences,
b. annual report of broker's marketing efforts, and
c. development of a program of marketing materials; and
BE IT FURTHER RESOLVED that employers be allowed to sign up throughout the year without restrictions on when they sign up for the program; and
BE IT FURTHER RESOLVED that if an employer chooses to participate, they must purchase a bus pass for 100% of their employees; and
BE IT FURTHER RESOLVED that Metro Transit shall evaluate the program and explore the steps necessary and costs to provide this service "in house"; and
FINALLY, BE IT RESOLVED that the contract shall be for a one year period which may be extended for two additional years. However, the contract shall not be extended without a report to the Common Council and a resolution to extend the program for an additional year. The report shall include, but not be limited to:
a. number of employees riding the bus (new riders vs.existing riders)
b. administrative costs attached to the bus pass price
c. recommendation for a tiered pricing structure.