AGENDA ITEM NO.

Agenda Report
Committee-of-the-Whole
Attachment:
1. DRAFT Board Policy
DATE:

SUBJECT:

Voting Requirements:
Majority

December 8, 2015
Approval of an Amendment to Board Policy III.07, DART Fixed-Route Service
Beyond Service Area Boundary

RECOMMENDATION
Approval of a resolution amending Board Policy III.07, DART Fixed-Route Service Beyond Service
Area Boundary, as shown in Exhibit 1 to the resolution and titled as "Policy III.07, DART Services
Outside the Service Area Boundary."
FINANCIAL CONSIDERATIONS
.

Contracts with non-service area entities will generate revenue which will offset direct and indirect
costs and include Board-approved access and impact fees beneficial to the Agency.

BUSINESS PURPOSE
.

This action item will assist DART in achieving the Board Strategic Priority 3: Optimize DART's
influence in regional transportation planning.

On March 5, 2013, (Resolution No. 130023), the Board amended this policy by expanding the
services which can be provided to include rail except light rail, bus, and paratransit and limited
contracting to four years without an election to join the service area.

To promote the revised policy, DART initiated a campaign to explain the benefits and options of
the revised Policy III.07 with non-service cities and counties beginning in April 2013 and
continuing until December 2, 2015. In this campaign, non-service area cities stated that the four
year election requirement was unacceptable and began to contract with other transit providers.

In late November 2015, Texoma Area Paratransit System (TAPS) began to experience serious
financial problems causing TAPS to cancel nearly all of the bus and paratransit service provided
under contracts with municipalities in Collin County. North Central Texas Council Of
Governments (NCTCOG) contacted DART to ask for assistance in providing service on an
emergency basis.

On November 17, 2015, DART was authorized to contract with the NCTCOG for 90 days to
operate fixed-route and/or paratransit service.

Subsequent conversations with Collin County officials indicated that the municipalities would
probably not consider any transportation provider which required an election to join the transit

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district even within four years.

.

The DART Board began a process to re-evaluate Policy III.07 for non-service area contract
services and Policy IV.05 to consider a new Local Assistance Program for DART cities without
rail service. This process is to be completed by May 2016.

Due to the fast moving events and possible decisions in non-service area cities caused by the
TAPS financial challenges, it is prudent to consider accelerating an amendment of Policy III.07
(attached to the agenda report as attachment 1), to allow DART to remain a potential provider for
non-service area cities.

Policy III.07 amendment shown as Exhibit 1 (attached to the resolution) amends paragraphs 3.02,
3.03 and 3.05, and eliminates paragraph 3.06. The changes permit non-service area entities to
contract for approved transit service under Policy III.07 without a requirement for an election to
join the service area.

LEGAL CONSIDERATIONS
Section 452.054 of the Texas Transportation Code authorizes DART to exercise all powers necessary
or useful in the construction, repair, maintenance or operation of the public transportation system.
Section 452.056(a)(2) of the Texas Transportation Code authorizes DART to contract with a
municipality, county, or other political subdivision for the authority to provide public transportation
services outside the authority.

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DART Fixed-Route Service Beyond Service Area Boundary Attachment 1

Policy III.07, DART Services Outside the Service Area Boundary
DATE ISSUED:
Resolution No.
Amended by Resolution:
Policy No.

April 25, 1995

950097
970226, 040098, 110037, 130023
III.07 (Operations)

Section 1.
Except for Charter and Special Events services as
authorized by separate policy and other services as
described in this policy, DART transit service will
not extend beyond the boundaries of the DART
Service Area. For the purposes of this policy, D/FW
Airport is considered to be part of the DART Service
Area.

a.

Funding for the service shall be

sufficient to pay for the fully burdened
operating and capital cost of the
service being provided for the duration
of the contract.

b.

The agreement shall require payment

of an access fee reflecting the value
of any connection to the DART service
area consumed by the non resident
patrons and intangibles the connecting
service consumed by the non-resident
patrons provided by DART to the
contracting entity as approved by the
DART Board of Directors.

c.

The agreement shall require payment

of an impact fee if the contracted
service causes DART to incur
additional direct operating or capital
costs to accommodate patrons who
live outside of the DART Service Area

Section 2.
Existing bus routes may be extended to service any
publicly-funded,
post-secondary
educational
institution whose campus is contiguous to the
DART service area when the extension does not
involve operation over the streets of a non-member
jurisdiction and the institution enters into an
interlocal agreement to pay DART the fully
allocated cost of such service.
Section 3.
3.01

3.02

DART shall consider providing rail, bus or

paratransit service outside the DART
Service Area under one or more service
agreements.

3.03

A service agreement under this section

must be approved by the DART Board of
Directors, shall not adversely impact or
delay any transit service that is included in
the then-current Transit System Plan and
Twenty Year Financial Plan and shall not
be inconsistent with any DART policy or
program for paid parking at DART facilities.
A service agreement under this section
shall include the following elements:

Approval of Policy III.07-COTW2

Operations III.07
1

A service agreement between DART and a

municipality or county under this section
may continue without limitation regarding
the duration or number of agreements. as
specified in the service agreement, but for
no longer than 48 months except as
specified in this Policy. After execution of
this agreement, the municipality or county
shall not encumber available funds beyond
48 months and if such an encumbrance
takes place, such agreement shall
terminate.

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DART Fixed-Route Service Beyond Service Area Boundary Attachment 1

Policy III.07, DART Services Outside the Service Area Boundary
use taxes, and as any contractual
obligations and indebtedness supported by
such special sales and use taxes are paid
off, dedicate such funds to DART with the
ultimate goal that a full one cent shall be
dedicated to DART.
3.04

3.05

Within the first 36 months of aa service

agreement agreement between DART and
a municipality or county, DART shall
prepare a transit system plan and a
supporting financial plan for the
municipality or county; The municipality or
the county shall provide of the funding
for such transit system plan and supporting
financial plan with payment of of the
estimated cost to be paid upon
commencement of the work and the
remaining balance of of actual expense
upon completion of the work. In the event
that a municipality or county fails or refuses
to provide all or portion of the funding for
the development of a transit system plan
and twenty year financial plan, the service
agreement shall terminate within thirty (30)
days and DART shall cease service in the
municipality or county being provided under
the agreement.

a.

If a majority of votes cast in such an

election favor the proposition, and in
compliance with provisions of law regarding
addition of territory to the DART Service
Area, DART may enter into such
agreements with the jurisdiction as may be
necessary to implement permanent transit
service in the jurisdiction, including the
eventual addition of the jurisdiction to the
DART Service Area. Voting representation
on the DART Board of Directors shall be
specified in the service agreement in
compliance with applicable laws.

b.

If a majority of votes cast in such an

election do not favor the proposition or no
vote takes place within the time specified in
the service agreement, the service being
provided under a service agreement shall
terminate within thirty days.

3.06

Service under a service agreement with a

municipality or county may continue
beyond 48 months provided that the
governing body of municipality or county
dedicates funding for the service through a
sales tax or other source that is equivalent
to or grows at an equivalent rate to a one
cent sales taxes through an election or
other means. Such service may be
provided directly by DART or through a
DART local government corporation in
compliance with the transit system plan and
twenty year financial plan prepared for the
municipality or county.

Such service may be provided directly by

DART or through a DART local government
corporation in compliance with the transit
system plan and twenty year financial plan
prepared for the municipality or
county.Service under a service agreement
with a municipality or county shall not
continue beyond 48 months unless the
governing body of municipality or county
calls and holds within such 48-month
period an election to add its territory to the
DART Service Area. Such election shall
dedicate the excess of special sales and
use tax revenues as specified in Section
452.6025 Texas Transportation Code over
current commitments, not enter into any
further encumbrance of special sales and

Approval of Policy III.07-COTW2

Operations III.07
2

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DART Fixed-Route Service Beyond Service Area Boundary Attachment 1

Policy III.07, DART Services Outside the Service Area Boundary

Approval of Policy III.07-COTW2

Operations III.07
3

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DRAFT
RESOLUTION
of the
DALLAS AREA RAPID TRANSIT BOARD
(Executive Committee)
Approval of an Amendment to Board Policy III.07, DART Fixed-Route Service Beyond Service
Area Boundary
WHEREAS, DART provides public transportation services within its service area boundary to
support mobility, air quality and economic development objectives; and
WHEREAS, DART operates bus, light rail, commuter rail, streetcar, paratransit, vanpools and other
types of transit services that are increasingly attractive to nonresidents outside DART's service area;
and
WHEREAS, in November 2015, TAPS began to experience serious financial problems causing
TAPS to cancel nearly all of the bus and paratransit service provided under contracts with
municipalities in Collin County. NCTCOG contacted DART to ask for assistance in providing
service on an emergency basis; and
WHEREAS, on November 17, 2015, the Board authorized DART to contract with the NCTCOG for
90 days to operate fixed route and/or paratransit service; and
WHEREAS, the Board ongoing process to re-evaluate Policy III.07 is not scheduled for completion
until May 2016; and
WHEREAS, Collin County officials indicated that the municipalities will not consider a
transportation option requiring an election to join the transit district; and
WHEREAS, due to the fast moving events and imminent decisions to choose a new contract
provider in non-service area cities, it is prudent to accelerate an amendment of Policy III.07, to allow
DART to remain a potential provider for non-service area cities.
NOW THEREFORE, BE IT RESOLVED that the Dallas Area Rapid Transit Board of Directors
approve the amendment of Board Policy III.07, DART Fixed-Route Service Beyond Service Area
Boundary, as shown in Exhibit 1 to the resolution and titled as "Policy III.07, DART Services
Outside the Service Area Boundary."

Approval of Policy III.07-COTW2

Approval of an Amendment to Board Policy 111.07, DART Fixed-Route Service Beyond Service
Area Boundary

\t2i
J cIe I!II-

Prepared by:

Todd Plesko
Vice President
Planning and Development

# #~

Approvedby:- - ,
//
Timothy H. McKay, P.E~
Executive Vice President
GrowthlRegional Development
Approved as to form:
Scott Carlson
General Counsel

Approved by:

Approval of Policy III.07-COTW2

Exhibit 1
Policy III.07, DART Services Outside the Service Area Boundary
DATE ISSUED:
Resolution No.
Amended by Resolution:
Policy No.

April 25, 1995

950097
970226, 040098, 110037, 130023
III.07 (Operations)

Section 1.
Except for Charter and Special Events services as
authorized by separate policy and other services as
described in this policy, DART transit service will
not extend beyond the boundaries of the DART
Service Area. For the purposes of this policy, D/FW
Airport is considered to be part of the DART Service
Area.

a.

Funding for the service shall be

sufficient to pay for the fully burdened
operating and capital cost of the
service being provided for the duration
of the contract.

b.

The agreement shall require payment

of a fee reflecting the value of any
connection to the DART service area
consumed by the non resident patrons
and intangibles provided by DART to
the contracting entity as approved by
the DART Board of Directors.

c.

The agreement shall require payment

of an impact fee if the contracted
service causes DART to incur
additional direct operating or capital
costs to accommodate patrons who
live outside of the DART Service Area

Section 2.
Existing bus routes may be extended to service any
publicly-funded,
post-secondary
educational
institution whose campus is contiguous to the
DART service area when the extension does not
involve operation over the streets of a non-member
jurisdiction and the institution enters into an
interlocal agreement to pay DART the fully
allocated cost of such service.
Section 3.
3.01

DART shall consider providing rail, bus or

paratransit service outside the DART
Service Area under one or more service
agreements.

3.02

A service agreement under this section

must be approved by the DART Board of
Directors, shall not adversely impact or
delay any transit service that is included in
the then-current Transit System Plan and
Twenty Year Financial Plan and shall not
be inconsistent with any DART policy or
program for paid parking at DART facilities.
A service agreement under this section
shall include the following elements:

Approval of Policy III.07-COTW2

3.03

A service agreement between DART and a

municipality or county under this section
may continue without limitation regarding
the duration or number of agreements.

3.04

Within the first 36 months of a service

agreement between DART and a
municipality or county, DART shall prepare
a transit system plan and a supporting
financial plan for the municipality or county;
The municipality or the county shall provide
of the funding for such transit system
plan and supporting financial plan with
payment of of the estimated cost to be
paid upon commencement of the work and
the remaining balance of of actual
expense upon completion of the work. In

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Exhibit 1
Policy III.07, DART Services Outside the Service Area Boundary
the event that a municipality or county fails
or refuses to provide all or portion of the
funding for the development of a transit
system plan and twenty year financial plan,
the service agreement shall terminate
within thirty (30) days and DART shall
cease service in the municipality or county
being provided under the agreement.
3.05

Such service may be provided directly by

DART or through a DART local government
corporation in compliance with the transit
system plan and twenty year financial plan
prepared for the municipality or county.

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