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<br />State Transportation Improvement Plan, and comments will be provided by the FT A. In the last <br />two years this process was done in mid to late November. The purpose of this case is to discuss <br />the financing associated with the express service, as well as the last step in the process, which is <br />to order fareboxes for the two buses. The time period to receive a new farebox is usually about <br />two to three months; staff is in the process of looking for spare fareboxes to be used in the <br />interim. <br /> <br />Mr. Jim Lasher, LSA Design, provided an overview of the preliminary cost estimates of the <br />potential revenue and expenses associated with the Ramsey Express Bus Service as outlined in <br />the LSA Design memo dated October 24, 2006. Estimates are calculated over the next three <br />years for the following three optional scenarios: Option A - City Services Match NCDA Start- <br />Up Service; Option B - City Service provides 50% lower ridership than NCDA; Option C - City <br />Service equals current NCDA ridership. <br /> <br />Mr. Lasher indicated at this point in time it has not been defined what the City can do with any <br />funds that are left over; it could likely be used for maintenance, new bus service, capital <br />improvements of the station area, and possibly a rail station. <br /> <br />Mayor Gamec asked if this should be a dedicated fund towards transit to prevent a future Council <br />from using the funds for something else. <br /> <br />City Administrator Norman replied this could be encouraged, but a current Council cannot force <br />this type of requirement on a future Council. <br /> <br />Councilmember Strommen requested further information about how the fare is set. <br /> <br />Mr. Lasher replied the Council can set the fare at any number they want. This grant allows the <br />City to start the service, and they are not part of a regional fare policy. <br /> <br />Council discussed the fares in the cities of Coon Rapids at $2.75 and Elk River at $4.50, and rate <br />options for Ramsey's service. <br /> <br />Mr. Lasher advised it is important to have the discussion regarding the fares in order to get the <br />advertising out for the buses. <br /> <br />Councilmember Cook noted the fare should be determined before the November 2nd Open House <br />for the bus service. <br /> <br />JoAnn Olsen, LSA Design explained the fare is tied in with the farebox. She advised because of <br />the way the fareboxes are set up and the electronic cards she would highly recommend staying <br />with the $4.50 fare. <br /> <br />Mr. Lasher advised as the City decides to advance this grant to provide service today, rather than <br />start service in October 2008, there will be costs to the City when service begins that will be paid <br />back to the City in October 2008. The City will be paying both the City cost and the Federal <br /> <br />City Council Work Session / October 24,2006 <br />Page 2 of 4 <br />