SUBJECT/RECOMMENDATION:
Title
Approve a one-year Grant Funding Agreement, in the amount of $166,993 between Jolley Trolley Transportation of Clearwater, Inc. and the City of Clearwater for the operation of transportation and trolley service on Clearwater Beach, Island Estates and Sand Key (Beach Route) and the Coastal Route, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The Jolley Trolley Transportation of Clearwater, Inc. (Jolley Trolley) has been operating trolley service throughout the Clearwater Beach, Island Estates, and Sand Key areas since 1982. The non-profit's mission is to reduce congestion and improve mobility in this area for both tourists and residents. The Jolley Trolley expects to transport 600,000 passengers for Fiscal Year 2014-15, reducing approximately 200,000 vehicles on Clearwater Beach. In addition, the Jolley Trolley has become a tourist venue that differentiates Clearwater Beach from other beaches in the area.
In this fiscal year, the Jolley Trolley had 520,000 riders, a 13% decrease in ridership due to Clearwater Marine Aquarium being closed for Dolphin Tale 2 filming, but Clearwater Beach had a healthy 5.2% ridership increase. The Jolley Trolley currently has a fleet of 19 trolleys with an average age of 8.9 years and 185,314 miles. A deposit was placed on another trolley in April with an expected delivery date of December 2014.
The Jolley Trolley accomplishments for Fiscal Year 2013-14 are:
· Beach route ridership increased 5.2% over prior year
· Added one new trolley to the fleet and ordered one new trolley with a delivery date of December
· Crossed trained majority of drivers on all routes, thus increasing overall asset to the trolley; updated Anti-Drug and Alcohol policies ensuring all employees are knowledgeable
· Replaced 100% of "STOP" signs in the third quarter and added destination cities to those stop signs. All signs now display the QR codes (Apple and Android) for tracking the trolley
· Charter business continues to be strong with a 9% increase over prior year
· Added an additional route connecting Safety Harbor to the Westfield Mall to the Coastal Route on weekends
Jolley Trolley's overall plans for Fiscal Year 2014-15 include:
· Kicking-off an advertising campaign called Twice as Nice. Employees of the trolley who send sales leads that result in a contract being signed will receive a commission. The commission will double if they get a second or third lead.
· Preparing a Driver Handbook that will ensure uniformity and understanding of the driver position
· Attract more employees that see the Jolley Trolley as a career, rather than just a job
· Continue to maintain the Capital Expenditure Strategy with the continued refurbishments of older trolleys and addition of new trolleys
Beach Route
Historically, the City has supported the Beach Route which connects Clearwater Beach, Sand Key, and Island Estates. The City's contribution to this route is $163,443 and has been at this level since 2012. The Jolley Trolley expense forecast for Fiscal Year 2014-15 for the Beach Route is $617,599. PSTA matches the City of Clearwater's contributions (both grant funding and in-kind services with its lease on Myrtle) at $181,963. Fares cover 23% of total revenue with advertising covering 18% of revenue.
Coastal Route
Four years ago, the Jolley Trolley began the Coastal Route that starts at Island Estates and progresses through Downtown Clearwater, into Dunedin, Palm Harbor and ends in Tarpon Springs. The route travels only on Friday, Saturday and Sunday and takes approximately one hour to make the Island Estates to Tarpon Springs trip. Last year, because the Downtown Development Board (DDB) could not cover the increase in the cost for the Coastal Route, the PSTA proposed that if the DDB's contribution could remain constant at $9,220, the PSTA would match the $3,550 difference if the City of Clearwater contributed the remaining $3,550 to make up the full $16,320 contribution to the Clearwater portion of the route. The city agreed and this agreement reflects the same commitment as last year.
The Coastal Route has become an important component of providing additional options to tourists staying on the Beach and connecting them to Downtown as well as other Pinellas County locations.
The Jolley Trolley expense forecast for the Coastal Route is $334,502. The City's contribution is approximately 1.5%. Fares cover approximately 19% and advertising covers 9%. The other coastal partners cover $32,643 each to the route. PSTA's portion is $129,405.
Contract Terms
The term of the agreement is for one year. The Economic Development and Housing Department administers the agreement. The Jolley Trolley's Business Plan covers the proposed revenues and expenditures for the fiscal year for both the Beach Route and the Coastal Route.
As part of this agreement, the Jolley Trolley will prepare a quarterly report that tracks high-level financials, ridership numbers, accident frequency, and on-time adherence to schedule. The City will use these items as a measure of performance.
$166,993 has been budgeted in the Parking Fund's Fiscal Year 14-15 operating budget to fund this agreement.
APPROPRIATION CODE AND AMOUNT:
0435-01333-558200-545-000-0000 - $166,993
USE OF RESERVE FUNDS:
N/A