| | | | | | | |  | STAFF REPORT
For Meeting of August 24, 2020
MAYOR AND MEMBERS OF THE CITY COUNCIL | Agenda Item # 9.A.
TITLE: WORC- Workforce Taxi Incentive Program |
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| | | | | | | | Subject
This item will implement a limited-time change to the WORC Taxi Ticket Program to assist employees commuting to work, and help drive up utilization of the program long-term. This will be achieved by giving 40 free rides to new riders who sign up for the program through the end of December.
Summary and Background
The West-End On-Demand Ride Cooperative (WORC) is a subsidized taxi ticket voucher program funded by a 0.1% statewide payroll tax, whereby workers in western Umatilla County can use a taxi to get to/from work and only pay 1/3 of the regular taxi rate.
For workers who live and work within the City Limits of Hermiston, the cost to the rider is $2.50 per one-way trip. For workers who live outside of the city limits but live and work anywhere in the 97838 zip code, the cost to the rider is $3.25 per one-way trip. For workers going to/from anywhere inside of the City Limits to/from either the Umatilla or Stanfield zip codes, the cost to the rider is $5.75 per one-way trip.
Like with all transit-related programs, there is a big challenge in getting riders to feel familiar and comfortable with using a service in the first place. Because this program requires the customers to pay for a portion of the service, a rider inside of the City Limits will have to pay $25 to try the service out 10 times, which only works out to one work week of round-trip rides.
What is proposed is that new riders who sign up for the program will be provided with four 10-ride punch-cards at the time that they sign up between now and the end of December. The free punch cards will be marked to expire February 28, 2021.
Tie-In to Council Goals:
Goal #4: Connecting the workforce with job opportunities
Fiscal Information
The WORC program is funded 1/3 by rider ticket revenue, and 2/3 by the 0.1% State Transit payroll tax. The state funds allocated for this program still stands at $246,000 available through June, 2021; compared with $35,000 spent since October, 2019. There are ample resources available to make this temporary pricing shift to benefit workers in the short-term, and lead to higher system utilization long-term, without creating any local property tax payer financial obligation.
Alternatives and Recommendation
Alternatives
The status quo will likely result in total expenses for this program through June, 2021 finishing around $200,000 under-budget. Because those resources were allocated to Hermiston through a competitive grant process, it is likely that the next round of funding will substantially reduce the amount of funds available to Hermiston for transit, unless it can be shown that they were put to work.
Recommendation
Approve a temporary change to the WORC Taxi Program pricing model to provide 40 free rides to riders.
Requested Action/Motion
Motion to amend the WORC Taxi Program's pricing model to allow 40 free rides, in the form of four free punch cards, through December, 2020.
Submitted By: Mark Morgan |
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