Fiscal Note
The agreements will formalize current practice for cost-sharing among Metro Transit and its service partners, with overall Metro Transit operational expenses continuing at a ratio of approximately 75% of costs borne by Metro Transit and the remainder borne by Metro's service partners. The agreements will also provide for the creation of a reserve fund starting in 2009, supported proportionately with contributions by the service partners, in order to fund unanticipated increases in expenses such as fuel costs. In all, the agreements are intended to provide equitable cost-sharing among those entities that utilize Metro Transit service. Metro's 2008 budgeted City levy contribution will remain unchanged.
Title
Authorizing the Mayor and the City Clerk to execute agreements with the City of Middleton, the Town of Madison, the City of Fitchburg, the Board of Regents of the University of Wisconsin-Madison (for both campus and Kohl Center service), Madison Area Technical College, Madison Metropolitan School District and the City of Verona for provision of transit service benefiting these partner municipalities, institutions and organizations starting January 1, 2008 and continuing until written notice of termination or amendment by either party.
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Preamble
In order to formalize its transit partner funding practices and to help both Metro Transit and its funding partners be able to more effectively budget and plan for transit service, a series of meetings took place to agree on how the public subsidy (“local share”) computation with a contingency reserve supplement would work. Partners want the flexibility of open-ended contracts terminable upon reasonable notice, supplemented with Memorandums of Understanding (MOUs) to address specific costs, revenues, cost adjustments, hours and routes.
Metro will calculate each funding partner’s fully burdened hourly cost of service and allocate a proportionate share of all revenues including state, federal...
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