ORDINANCE NO. 250382
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Sponsor: Mayor Quinton Lucas
Reducing previously appropriated funds in the Public Mass Transportation Fund by $3,250,000.00; appropriating $3,250,000.00 from the unappropriated fund balance of the Public Mass Transportation Fund to the Kansas City Area Transport Authority ("KCATA") for the purpose of ensuring current headway times for all routes for the next six months and funding IRIS service for the next month; reducing previously appropriated funds in the Street Maintenance Fund by $2,350,000.00 and appropriating the same amount; requiring detailed accounting and audit provisions; authorizing the City Manager to execute an agreement or amendment with KCATA requiring KCATA to maintain current headway times on all routes for a period of six months and for IRIS service to continue for one month and to comply with established reporting requirements; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, the City Council seeks to identify a source of funding in the amount of $2,750,000.00 to maintain current headway times on all KCATA routes through Ordinance No. 250369; and
WHEREAS, maintaining current public transportation service levels is essential to the mobility of Kansas City residents, particularly those who rely on public transit as their primary means of transportation; and
WHEREAS, the City Council passed Ordinance No. 250247 on April 3, 2025, authorizing an agreement not to exceed $46,717,626.00 with KCATA to provide transit services for a period of six months beginning May 1, 2025, and ending October 31, 2025; and
WHEREAS, Ordinance No. 250247 specifically stated that "This amount of funding will maintain operational levels for KCATA as they exist for the 2024-2025 fiscal year"; and
WHEREAS, Ordinance No. 250247 further included in Section 3(A) a requirement that performance measures "shall not include a reduction in service routes but will include a prohibition on adjustments of routes (including markups) or extensions to headways unless approved by City Council"; and
WHEREAS, it has subsequently been determined that an additional $2,750,000.00 is required to maintain current headway times on all KCATA routes consistent with the intent of Ordinance No. 250247; and
WHEREAS, it has subsequently been determined that an additional $500,000.00 is required to maintain IRIS service for one month; and
WHEREAS, the City Manager has identified Vision Zero, BikePed Coordination, and Street Preservation funding in the Public Mass Transportation Fund to reduce and reallocate to support this critical public transit need; and
WHEREAS, the Street Maintenance Fund cannot be used to fund public transportation and is restricted pursuant to State statute and City Code Section 2-1690 for road and street purposes; and
WHEREAS, the Street Maintenance Fund includes an appropriation for Vision Zero which the City Manager has identified for reduction; and
WHEREAS, the City Manager recommends that funds made available from the reduction in Vision Zero in the Street Maintenance Fund be reallocated to support Street Preservation and replace funding therefore reduced from the Public Mass Transportation Fund; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the sum of $3,250,000.00 is hereby reduced in the following accounts of the Public Mass Transportation Fund:
26-2080-891319-B Bike Ped Coordination $ 500,000.00
26-2080-897080-B Vision Zero 400,000.00
26-2080-897701-B Street Preservation 2,350,000.00
TOTAL: $3,250,000.00
Section 2. That the sum of $3,250,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Public Mass Transportation Fund to the following account:
26-2080-692000-F KCATA Operations $3,250,000.00
Section 3. That the sum of $2,350,000.00 is hereby reduced in the following account of the Street Maintenance Fund:
26-2060-897080-B Vision Zero $2,350,000.00
Section 4. That the sum of $2,350,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Street Maintenance Fund to the following account:
26-2060-897701-B Street Preservation $2,350,000.00
Section 5. That the City Manager is hereby authorized to execute an agreement, or amend an existing agreement, with KCATA which requires KCATA to maintain current headway times on all routes for a period of six months and for IRIS service to continue for one month. This agreement shall stipulate that the additional funds authorized in this ordinance will be disbursed to KCATA only upon City Council's determination that the requirements in the following Section 5 have been fully satisfied.
Section 6. That the City Manager shall contractually require the KCATA to provide the City with an itemized invoice detailing specifically how the $3,250,000.00 will be used to maintain current headway times and pay for IRIS service, and all financial records related to this funding shall be subject to the audit provisions established in Ordinance 250247, Section 3G.
Section 7. That the City Manager is hereby directed to explore and consider options for insourcing transit services currently provided by KCATA in 18 months, including but not limited to:
A. Evaluating the feasibility, costs, and benefits of establishing a City-operated transit department or enterprise.
B. Developing a framework for implementing micro transit services under City management.
C. Identifying high-demand routes that could be prioritized for City operation.
D. Assessing infrastructure and fleet requirements for City-operated transit services.
E. Analyzing staffing needs, labor agreements, and transition strategies.
F. Evaluating potential funding mechanisms and grant opportunities.
Section 8. That the City Manager shall contractually require the KCATA to submit all presentation materials in writing to the City Manager's Office at least three (3) business days prior to any scheduled presentation. These materials shall include, but not be limited to, all slides, handouts, reports, and any other visual or written material intended for distribution or display during the presentation.
Section 9. That the City Manager shall contractually require KCATA to within fifteen (15) days of the effective date of this ordinance to provide a detailed written plan to the City Manager’s Office outlining specific administrative cost reductions as required by Section 3B of Ordinance No. 250247. This plan shall:
A. Identify specific overhead reductions, including administrative positions targeted to eliminate redundancy.
B. Provide projected cost savings from each identified reduction.
C. Include a timeline for implementation of each reduction measure.
D. Demonstrate how these reductions will improve KCATA's financial structure and place the KCATA in better financial footing.
E. Establish metrics for measuring progress on implementation of the administrative cost reduction plan.
Section 10. That the Director of Public Works is hereby designated as requisitioning authority for Account No. 26-2060-897701.
Section 11. That this ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money and shall take effect in accordance with that section.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Dustin E. Johnson Assistant City Attorney