staff report - ac transit...credit cards to autoload the card. the change from transfers to day...

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Report No: Meeting Date:

Alameda-Contra Costa Transit District

STAFF REPORT TO: Finance and Audit Committee

AC Transit Board of Directors

FROM: David J. Armijo, General Manager

SUBJECT: Set Public Hearing- Fare Structure Revision

ACTION ITEM

RECOMMENDED ACTION(S):

13-240 September 11, 2013

Consider setting a public hearing on October 23, 2013 concerning a proposed revision of the fare structure to introduce a day pass and eliminate transfers, to create Clipper discounts on local cash fares, to reduce the price of 31 day adult local and Transbay passes, and to increase the price of the youth/senior/disabled pass, effective July 1, 2014, as set forth in Attachment 1.

EXECUTIVE SUMMARY:

This proposal is primarily designed to improve the efficiency and convenience of AC Transit's fare payment system by eliminating transfers and instituting day passes. It also proposes action to create incentives for passengers to use Clipper, and proposes changes to 31-day pass prices. These actions are a follow-up to the Board's April 14, 2013 deferral of a fare increase that was scheduled for implementation on July 1, 2013 (Staff Report 13-099, Resolution 13-022, attached). At that time, staff proposed returning to the Board with a proposal that could include elimination of transfers and the introduction of a day pass. Both of these actions are in keeping with standard industry practice, as shown in the attached summary of fare products {Attachment 4). Few American transit agencies now use paid transfers. To passengers, transfer payments are an additional fare for trips which have the inconvenience of requiring two or more buses. For AC Transit, transfers are time consuming and costly to handle, fail to adequately compensate the District for rides, and have the potential for fraud. These fare structure changes will decrease boarding/dwell time for enhanced operations as well . as encourage increased patronage.

BUDGETARY/FISCAL IMPACT:

This section of the report will discuss anticipated budgetary and fiscal impacts on AC Transit . Cost changes and impacts for passengers are discussed in the Background/Rationale section.

Switching from transfers to day passes will virtually eliminate the District' s revenue from transfers, as well as reduce revenue from local cash fares. The day passes will represent a new source of revenue. Based on the experience of other transit agencies, staff anticipates that 15% of local adult fares would be paid with day passes, while 5% of youth and senior fares would be paid with day passes. However, in our financial calculation we have assumed a 10% take up rate, so as not to overestimate the impact of the passes. The lower youth/senior percentage

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would result from the fact that monthly passes for youth and seniors are priced so low, and therefore a higher percentage of youth/senior passengers would use monthly passes.

This analysis makes the conservative assumption that the number of passengers riding the system will not change. However, it is anticipated that the convenience and improved access provided by the day pass will attract additional passengers.

FY15 Projected Farebox Revenue With Proposed Day Pass and Other Changes

FY13 Fare Category Fare Type

Current Revenue Proposed Fares Fares

(actual)

Single Ride:

Adult • Local 2.10 30,006,729 2.10

Adult · Transbay 4.20 4,505,183 4.20

Youth/Senior/Disabled -Local 1.05 4,852,222 1.05 Youth/Senior/Disabled -Trans bay 2.10 135,155 2.10

Multi-Ride:

Adult Local 31 Day Pass 80.00 4,179,990 75.00

Adult - Transbay 31 Day Pass 151.20 1,994,792 150.00

Senior/Disabled Monthly Pass 20.00 2,551,112 23.00

Youth 31 Day Pass 20.00 2,284,387 23.00

Transfers:

Transfers - Local 0.25 52,978 Eliminated

Day Pass:

Local Adult Day Pass 5.00

Youth/Senior/Disabled • Local 2.50 Total from all fare categories - 50,562,547

% change over FY13 Revenue

Assumptions:

1. No change in ridership

2. Local vs. Transbay ratio stays 1:2

3. No elasticity calculation due to no change in current fares for single rides 4. *Day Pass usage is calculated at 10% of total Local Adult (reduce local adult rev for round trip)= total20% reduction in Local Adult Fare Revenue

**Day Pass usage is calculated at 5% of total Local Y/S/0 (reduce Y/S/0 rev for round trip) = total10% reduction in Local Y/S/D Fare Revenue

FY15 Projected Rev. with Day Pass

24,005,383 •

4,505,183

4,367,000 ••

135,155

3,918,741

1,978,960

2,933,779

2,627,045

0

7,144,459

577,646

52,193,350

3.23%

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Report No. 13-240 of8

BACKGROUND/RATIONALE:

Process

Beginning in late summer of 2012, AC Transit staff embarked on an analysis of the fare

structure. The analysis included:

o Assessing new fare strategies

o Charging a Fare per Boarding

o Eliminating Transfers

o Increasing Clipper Use

o Introducing a Day and a 7 Day Pass

o Expanding the Retail Sales Network

o Reducing the Cost of the 31 Day Pass

Additionally, the analysis attempted to determine potential financial impacts, ridership impacts, and potential Title VI implications. The AC Transit Board was briefed on the analysis at its retreat on March 13, 2013 and took action to defer a fare increase scheduled for July 1, 2013 at its April14, 2013 meeting.

Since that time, staff has continued to evaluate and deliberate about how to best manage the fare structure in keeping with the goals of the fare policy (Simplicity, Appropriateness, Equity, Transparency, Policy Supportiveness, and Affordability). Attention was focused especially on a fare per boarding, elimination of transfers, introducing a day pass, and increasing Clipper use.

Transfers and Day Passes

This fare structure change centers on shifting from a fare and transfer system to a day pass

system for local fares. It represents a shift in longstanding AC Transit practice, but it is a shift

which numerous transit agencies have made. These include Santa Clara Valley Transportation

Authority (VTA), San Mateo County Transit District (Samtrans), Regional Transit (Sacramento),

Metro (los Angeles), Orange County Transportation Authority (OCTA), Metropolitan

Transportation System (San Diego), and Regional Transportation Commission (Las Vegas),

· among others.

Shifting from transfers to day passes is beneficial for both passengers and AC Transit.

Passengers gain a single convenient fare instrument which is valid for a whole day, not simply

two hours. With a day pass, passengers can take additional trips beyond their daily commute at

no additional charge. The day pass eliminates the uncertainty (and sometimes conflict) about

whether a transfer is valid for a given trip. As a convenient to use, conveniently priced fare

product, the potential for marketing the day pass is strong. At the same time, passengers who

only take one or two bus riders per day can continue to pay cash fares at no additional cost

(although some may opt for day passes simply for convenience).

Day passes would be available from the farebox. They would be paper media with a magnetic

strip and on Clipper. On Clipper, passengers using a day pass would be charged $2.00 for their

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first ride, $2.00 for the second ride, $1.00 for their third ride, and any subsequent rides would

be free. This is known as an accumulator. The goal is to transition passengers from buying day

passes at the farebox to buying them through Clipper. To make this a convenient option will

require an expanded network of Clipper vendors and/or mechanisms for Clipper users without

credit cards to autoload the card.

The change from transfers to day passes has numerous advantages to AC Transit. There will be

fewer transactions at the farebox, where one purchase of a day pass can easily replace four

transactions. Dwell times will be reduced and travel times speeded up. The District will have

fewer coins and fewer materials to handle. An entire class of potential disputes between drivers

and passengers will be eliminated. Issuing transfers through the Trim unit has reduced fraud,

eliminating transfers should result in a further reduction of fraud.

Cost of Using the Day Pass

Depending on their riding pattern, passengers should experience little or no cost increase from

this change. A small number will experience a decrease. The 2012 MTC survey of AC Transit

passengers found that 56% do not transfer on their trip, 36% transfer once, and 9% transfer

two or more times. (The numbers cannot be precisely equated to the use of two or three buses

because they include out of system transfers, staff is researching bus-specific transfers.)

Passengers using two buses each way on their commute (and not already using a pass) now pay

$4.70 per day, $2.10 fare +25 cents for a transfer each way. These passengers will experience a

fare increase of 30 cents per day, or 6% of their existing fare. If the 2011 fare recommendation

of $2.25 fare and 25 cents transfer had been implemented, these passengers would be paying

exactly $5.00. Passengers using one bus each way will presumably not buy a day pass, unless

they wanted to take additional rides on a given day.

Youth/Senior/Disabled Day Pass

To assure that fare products are available to the widest range of passengers, we propose

creation of youth/senior/disabled day pass costing $2.5Q per day. We expect le.ss usage of this

pass, because the price of the monthly youth/senior/disabled pass is so low. Some agencies

which offer day passes do not offer a reduced price youth or senior/disabled day pass.

Transfer Products Retained

Interagency transfers, primarily to BART, will be retained under this proposal, as there is not a

unified regional fare instrument. Similarly, in the absence of a Transbay day pass, free Transbay

to local transfers, used by only a few dozen people per weekday, will be retained.

Cash Fares and Clipper Incentives

This proposal maintains cash fares at their current levels, neither raising or reducing them. This

approach should help maintain our fare revenues. At the same time, we seek to move cash

paying passengers onto Clipper. Clipper fare collection is cheaper for the district and greatly

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reduces bus dwell times while passengers pay their fares. In order to provide an incentive for

cash payers to switch to Clipper, we propose a 5% discount on the local adult and

youth/senior/disabled fare. The local adult fare with Clipper would be $2.00, the local

youth/senior/disabled fare would be $1.00. A number of transit agencies provide discounts on

fare products on their smart cards as an incentive to use the smart card.

Increasing Clipper use is an objective that the District will also pursue through marketing

campaigns and any other avenues that may be appropriate. Staff anticipates returning to the

Board in the future to propose potential additional financial incentives to passengers opting to

use Clipper. Until the Clipper network is expanded in the East Bay, the District's ability to move

passengers to Clipper will be constrained. Staff will continue to work with MTC on an ongoing

basis to increase Clipper vendor coverage in the East Bay.

Local and Transbay Pass Prices

This proposal would make modest changes in pass prices. Policy 328 sets a target that passes

should cost 36 times the applicable cash fare. The 36 figure was the national average, and

provides a discount for a monthly user. Under this proposal, the local adult monthly pass

would drop from $80-a price grandfathered in to the 2011 policy-to $75, which is 36 times

the $2.10 cash fare. The Transbay pass price, which is already at 36 times the cash fare of $4.20,

would have a minor adjustment from $151.20 to the more understandable price of $150.

Youth/Senior/Disabled Pass

Staff recognizes that the price of the youth/senior/disabled pass has attracted passionate

concern. It has been a focus of discussions of transit affordability. At the same time, staff feels

that if the price of that pass is too low, it reduces revenue to the District, constraining our

ability to provide service to everyone (including youth). If the youth pass price is

disproportionately low, it also raises questions of equity among our passengers. The disparity is

also an incentive to fraud.

This proposal would raise the youth/senior/disabled pass to $23 per month. Poiicy 328

developed a multiyear schedule to gradually raise the youth/senior/disabled pass price to 36

times the youth cash fare, in parallel with other passes. Currently the $20 pass price, among the

lowest in the country, is only 19 times the fare. Under that policy, the price of the pass would

go to $26 this year. This proposal is half as large an increase. At 36 times the cash fare, the

youth pass price would be $36 per month. Staff believes the $23 figure moderates the impact

of the increase while still moving towards the District's fare structure goals. At $23, AC Transit

would still have one of the cheapest monthly youth passes in the country.

Seven Day Pass

The 2011 fare policy included the creation of a seven day pass, which a number of systems nationally have. The seven day pass was intended to be a more affordable multi-ride pass for

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passengers unable to pay the full cost of a monthly pass at one time. The implementation of a seven day pass was determined to not be appropriate at this time. After a meeting in May between the General Manager and the Executive Director of MTC, it was agreed that, if implemented, AC Transit would be the only agency in the Bay Area with such a fare instrument which would cause additional programming time and costs with the Clipper contractor. Since the seven day pass is already in the policy and has been through the public hearing process, it is recommended that it remain a potential future fare media product.

Public Outreach Plan

Staff will develop and coordinate outreach to riders and the general public about the proposed

changes. Four or five community meetings will be scheduled for the October 7, 2013 to

October 18, 2013 time frame in locations throughout the District. Staff will also meet with

several rider committees and groups, including the Accessibility Advisory Committee, the

Transbay Taskforce, and the Alliance of Californians for Community Empowerment (ACCE).

Printed materials will include on-board car cards and multi-language brochures, the latter being

stocked on all buses and sent to community organizations and public sites. All information will

be posted to the website and will include an online comment form. A range of electronic

communications-eNews messages, e-mails to community contacts and elected officials, social

media posts, and public access television calendar listings-will direct the public to the website

and publicize the meetings. Display ads will run in selected newspapers, including Spanish- and

Chinese-language publications. Required legal notices will be published in the appropriate

newspapers, and press coverage in advance of the public hearing will be cultivated.

Title VI

Under AC Transit policies which implement federal guidelines, all fare changes must undergo

Title VI review. This review is to make sure that the changes do not impose disparate impacts or

disproportionate burdens on low income and minority populations. Staff will undertake Title VI

analysis and will solicit input on Title VI issues as part of overall outreach on the proposal, and

report back to the Board.

Longer Term Fare Policy

If the Board ultimately wishes to approve these changes, it would need to decide how to treat

Policy 328, which set out a long term schedule of fare increases. The Board could link the

approval of this proposal to repeal of the policy. On the other hand, the Board could treat

approval of this proposal as simply responding to the planned 2013 step of those fare increases,

not necessarily affecting future fare increases. This decision does not need to be made at this

time.

ADVANTAGES/DISADVANTAGES:

The advantage of the proposed fare structure is that it provides a simple, appropriate, fair,

transparent policy, both supportive and affordable in accordance with the Board Policy 328

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goals as identified above. The elimination of transfers and focusing on prepaid fare media

including day passes will speed up boarding and reduce fare payment conflicts.

The disadvantage is that the current fare structure, especially with the use of transfers, is a long

standing practice and it may be difficult for passengers to adjust and gain familiarity with the

new structure. While the proposal is designed to minimize impacts on passengers, it is

inevitable that a small group of passengers will experience cost increases, most of them small

(e.g., from $4.70 per day to $5.00 per day). An extensive community outreach and education

program will help mitigate this to some extent and some leniency during the implementation

period should be considered.

ALTERNATIVES ANALYSIS:

Staff considered proposals concerning fare policy which we do not recommend. One such

alternative was seeking to implement the fare and pass price increases set forth under the 2011

policy. However, such an action would have seemed contradictory to the Board's April action.

Implementing that increase would not have dealt with transfer issues nor reduced the high

local adult pass price. For these reasons, staff does not recommend this course of action.

Another alternative would be leaving all fares and pass prices as is. Again, this (in)action would

not have dealt with transfer issues, nor responded to pass prices that are currently at

inappropriate levels. For these reasons, staff does not recommend this course of action.

PRIOR RELEVANT BOARD ACTIONS/POLICIES:

Board Policy No. 328- Fare Policy: Fares, Fare Structure, and Fare Increases: Adopted 6/11/12

Resolution 13-022

ATTACHMENTS:

1: Notice of Public Hearing-

2: Staff Report 13-099 3: Fare Comparison Chart 4: Summary of AC Transit and Other Agencies' Fare Products

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Report No. 13-240

of 8

Department Head Approval: Thomas Prescott, Chief Performance Officer

Reviewed by: David Wolf, General Counsel

Prepared by:

lewis Clinton, Chief Financial Officer Robert del Rosario, Director of Service Development and Marketing

John Haenftling, Director of Project Controls & Systems Analysis Nathan landau, Senior Transportation Planner Sue lee, Treasurer Victoria Wake, Marketing Manager

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SR 13-240 Attachment 1

DRAFT PUBLIC HEARING NOTICE


FARE STRUCTURE REVISION

Notice is hereby given that the AC Transit Board of Directors will hold a Public Hearing on Wednesday, October 23, 2013, at 2:00 p.m. and 5:00 p.m. at the AC Transit General Offices, Second Floor Board Room, 1600 Franklin Street, Oakland, California, to receive public comment on a fare structure revision as more specifically described below under "PROJECT DESCRIPTION".

The proposed fare policy revision is detailed on AC Transit's website at www.actransit.org, and available

in printed format at the District's General Offices, located at 1600 Franklin Street, Oakland, California,

and at a variety of other locations, including county administrative offices, city halls, and main libraries

located within the District's service area. For information on exact locations where the documents are

available in your specific area, please telephone (510) 891-xxxx.

PROJECT DESCRIPTION:

• Maintain all currently adopted fares as pay per boarding fares ($2.10 local adult, $1.05 youth/senior/disabled local fare, $4.20 Transbay, $2.10 Transbay youth/senior/disabled.

• Introduce discounted fares of $2.00 for local adult trips, $1.00 for local youth/senior/disabled trips paid on Clipper.

• Introduce a local adult day pass priced at $5.00 (Introduce a youth/senior/disabled day pass priced at $2.50

• Set 31 day pass prices as follows: Local adult--$75; Local youth/senior/disabled--$23, Transbay--$150

• Eliminate transfer cards, transfer privileges, and transfer charges, except for Transbay-local transfers and interagency transfers.

If approved by the Board of Directors, the fare structure revision will be implemented on July 1, 2014.

Environmental Exemption

By statute, the proposed fare increase is exempt from the provisions of the California Environmental

Quality Act in accordance with Public Resources Code Section 21080(b)(8) and Section 15273 of its

Guidelines.

Your Comments Are Invited

Public Comment on the fare policy revision is invited either in writing or at the public hearings scheduled for 2 and 5 p.m. on Wednesday, October 23, 2013 at the AC Transit General Offices, Second Floor Board Room, 1600 Franklin Street, Oakland, California. The public is urged to submit written comments by letter, facsimile, or email, which must be received no later than the close of the hearing on October 23, 2013. Written comments will receive the same attention as verbal comments received at the Public Hearing. Please address written comments to the AC Transit Board of Directors, 1600 Franklin Street, Oakland, California, 94612; by facsimile at {510) 891-7157; or by email to [email protected]. Comments may also be submitted by voicemail at (510) 891-7201. For the Spanish-language notice, call (510) 891-7291, and for the Chinese-language notice, call (510) 891-7292.

Meeting site is wheelchair accessible.

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Upon request, a sign language interpreter will be present at the hearing. Foreign language interpreters can be provided, if needed. Please contact the District Secretary's Office at (510) 891-7201 by Thursday, October 17, 2013 at 5:00p.m., to make arrangements. For TDD for hearing impaired, call 711, California Relay Service, and specify (510) 891-4700.

Transit to the Hearing Site

All AC Transit bus lines serving downtown Oakland stop within walking distance of the public hearing site. For trip-planning, visit www.actransit.org or call 511 (and say, "AC Transit"). The site can also be reached via BART to the 19'h St. Oakland station.

Please do not wear scented products to the meeting.

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Report No:

Meeting Date: 13-099

April 24, 2013


STAFF REPORT TO: Finance Committee

AC Transit Board of Directors

FROM: David J. Armijo, General Manager

SUBJECT: Fare Policy

ACTION ITEM

RECOMMENDED ACTION(S):

Consider the adoption of Resolution 13-022 deferring the scheduled implementation of the July 1, 2013 fare increase pending further analysis of district staff's fare policy recommendations.

EXECUTIVE SUMMARY:

In the AC Transit Board Policy No. 328, Fare Policy, adopted June 22, 2011, a fare increase was scheduled to automatically occur on July 1, 2013 in conjunction with the beginning of the fiscal year. In the March 13 retreat, staff presented to the Board of Directors a proposal to revise the fare structure. At the retreat, the Board agreed that a revised fare structure should be further

evaluated. Due to MTC requirements in programming Clipper and other fare media products, 60 days notice is required to implement the scheduled fare increase (May 1, 2013). Additionally, requirements for an overall fare policy restructuring would require from 6 to 9 months. In order to allow adequate time to address all of the scheduling issues, staff is recommending deferring the scheduled fare increase. This action will allow continued service with no negative impact to the riders, no potential loss of ridership due to an increased fare, and a complete analysis of the staff's fare policy recommendations can be concluded and brought to the Board for its consideration.

BUDGETARY/FISCAL IMPACT:

The following table summarizes current farebox revenue trends as measured in FY 11/12, adjusted for FY 12/13, and the proposed budget for FY 13/14. (Dollars in thousands)

FY 11[12 {Actual} FY 12[13 {Adjusted FY 13[14 Change- FY12[13 to FY Mid-Year} {Pro~osed, No 13[14

Fare Increase}

SS0,158 SS0,910 SS2,438 + S1,527 +3%

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As displayed in the table, the projected revenue without a fare increase is up 3%. The proposed

FY13/14 revenue projection without the policy scheduled fare increase is considered

sustainable within the overall District budget.

As noted at the Board Retreat on March 13, 2013, if the projected revenue is adversely

impacted by not increasing the fare, that impact can be mitigated through MTC reserve funding

(BART transfers).

BACKGROUND/RATIONALE:

Beginning in late summer of 2012, AC Transit staff embarked on an analysis of the fare

structure with the following objectives:

• Determine ability of existing fare policy to increase ridership & revenue

• Identify risks and benefits of changes

• Estimate capital and operating impacts

• Evaluate the impact of the Clipper System

• Assuring the equity of AC Transit's Fare Policy in compliance with Title VI

• Assess new Fare strategies

-Charging a Fare per Boarding

-Eliminating Transfers

-Increasing Clipper Use

-Introducing a Day and a 7 Day Pass

-Expanding the Retail Sales Network

-Reducing the Cost of the 31 Day Pass

The analysis included contacting peer agencies both in the Bay Area and of similar size throughout the nation, determining potential schedules for implementation of any recommended changes, financial impacts, ridership impacts, and potential Title VI implications. The AC Transit Board was briefed on the present analysis at its retreat on March 13, 2013 (see attachment 1). That presentation was utilized to gain input from the Board on whether or not to proceed with the current direction of the analysis and recommendations. At that time it appeared as though the Board was in favor of the continued analysis.

Another factor that plays heavily into the overall fare "restructuring" as well as modifications to the current fare structure is the MTC schedule to implement changes to the Clipper system. First, with regard to the current fare structure, the MTC requests that they be notified of changes 60 days in advance, May 1 for a July 1 implementation. If the Board directs the staff that the scheduled fare increase is to go into effect, MTC will be notified immediately to accommodate their schedule.

With regard to the overall fare "restructuring", MTC has advised that they may require from 6 to 9 months to implement changes. The General Manager is scheduled to meet with the Executive Director of MTC on May 6, 2013 to discuss the schedule as well as review the potential changes that may be requested. With some uncertainty remaining in the schedule as

165

well as the need to introduce other schedule requirements such as calling and holding a public hearing, securing stock for day pass production, increasing the Clipper vendor network in the East Bay, and public information and notification, the following basic schedule is proposed:

April 24, 2013- Deferral of policy scheduled fare increase (TODAY's ACTION)

May - August, 2013 - Refine and finalize analysis and new fare structure including any new media (day pass) and any eliminated media (transfers); incorporate Title VI issues and impacts.

August, 2013- Obtain Board approval of new fare structure and call public hearing

October, 2013- Hold public hearing

October/November, 2013- Adopt new fare structure

November, 2013- Notify MTC of new fare structure to be included into Clipper system

Second Quarter of Calendar 2014 - Implement new fare structure along with all public notification, public relations, and printed information

Ongoing activity throughout this process is working with MTC to increase Clipper vendor coverage in the East Bay.

ADVANTAGES/DISADVANTAGES:

The advantage to deferral of the scheduled fare increase is that it gives staff the ability to refine its analysis and return to the Board with final recommendations without impacting the public with regard to the current fare structure. It allows AC Transit to easily notify the public of its intent without unduly impacting the public in the future if fare structure modifications actually reduce the fare. It eliminates unnecessary and potentially duplicative expenses. A short term fare increase would require increased staff time and materials and printing costs associated with that increase.

Another advantage is sustaining current ridership levels and promoting ridership growth over

potential loss of ridership. The policy scheduled fare increase from $2.10 to $2.25 represents a

7% increase. Fare elasticity studies indicate that the 7% increase in fares could result in a 3.5%

decrease in ridership. With the sustainable financial projections noted above, staff believes it

to· be prudent to defer the scheduled fare increase.

A potential disadvantage is a slightly reduced revenue projection. Included in the impact would

be lower revenue from the UC Berkeley Class Pass and two other EasyPass programs, all of

which come up for renewal later this year and would have fee increases if the July 1, 2013, fare

increase went into effect as currently scheduled.

ALTERNATIVES ANALYSIS:

One alternative that the Board could adopt is moving ahead with the scheduled fare increase, effective July 1, 2013. This alternative could have a slightly favorable impact on the revenue equation noted in the "Budgetary/Fiscal Impact" section of this staff report. This alternative would, however, have a negative impact on riders and the public and would require increased staff time and additional materials and printing costs for public notification.

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Additional alternatives analysis will be ongoing as the final fare structure recommendation is developed.

The Board will be briefed, as necessary, as the development of the fare policy progresses.

PRIOR RELEVANT BOARD ACTIONS/POLICIES:

Board Policy No. 328- Fare Policy: Fares, Fare Structure, and Fare Increases: Adopted 6/11/12

ATTACHMENTS: 1: Board Retreat Briefing- March 13, 2013

2: Resolution 13-022

Department Head Approval: Thomas Prescott, Chief Performance Officer

Reviewed by: Kenneth C. Scheidig, Interim General Counsel Lewis Clinton, Chief Financial Officer

Prepared by: John Haenftling, Director of Project Controls & Systems Analysis

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Attachment Three: Fare Change Proposal for Public Hearing October 23, 2013

Fare Type Current Proposed Current Rationales and Comments Fare/Price Fare/ Price, Proposal

2011 policy Local (adult) fare $2.10 $2.25 $2.10 with Base fare for fare structure.

reduction to $2.00 Fare unchanged to maintain revenue. for Clipper A discount on Clipper might is users designed to provide an incentive for

Clipper use.

Youth/Senior/Disabled $1.05 $1.10 $1.05 Set at SO% of adult fare, with Clipper Fare with option.

reduction to $1 on Clipper

Local (adult) 31 day pass $80.00 $81.00 $75 $75 price would reduce pass price/ fare ratio to 36 as 2011 policy set (exactly 36 times would be $75.60) ..

Youth/ $20.00 $26.00 $23 Increase proposed is Y, what 2011 Senior/Disabled policy would cause. Pass price still

31 Day Pass moves towards equity at 36 times fare, but at a slower pace. Youth pass remains one of the cheapest in the country.

Transfers 25c 2Sc Eliminate Transfers are potential source of and fraud, also insufficient payment for a replace ride. Transfers are inconvenient for with day passengers, delay boardings require passes paper handling in AC Transit.

Few transit agencies now use paid transfers (see day pass for cost discussion).

Transbay-local and AC-BART transfers would need to be retained.

Local (adult) Day Pass NA NA $5.00. Many agencies have replaced transfers with passes good for a day's ride. A $5 fare would be 30c increase for a round trip using two buses each way. Clipper day passes could be "accumulator"-first charging one or two fares against card, then turning into day pass when $5 paid.

Youth/ NA NA $2.50 Half of adult day pass price. Senior/Disabled Day Pass

Transbay (adult) fare $4.20 $4.50 $4.20 Fare unchanged to maintain revenue. Transbay 31 day pass $151.20 $162.00 $150.00 $150 is round number and essentially

retains current cost Transbay Youth/ $2.10 $2.25 $2.10 Set at Y, the adult Transbay fare. Disabled Fare

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Attachment Four-Summary of AC Transit and Other Agencies' Fare Products

Summary of Fare Products and Pricing-AC Transit and Other Agencies as of March, 2013

Cash Fare Transfers Day Pass Youth/Senior Local Senior/Youth Day Pass Monthly (or Monthly (or

30 Day) 30 day) Pass Pass

ACTRANSIT $2.10 $.25 Not Offered Not Offered $81 $20

Muni (San Adult $2.00; Free-valid Visitor Not Offered $64 $22 (Free pass

Francisco) for 90 Passports (without on Clipper

Discount: minutes only, $14 BART) pilot for

senior/youth/ lower income disabled $.75 youth)

VTA $2.00; Some Not Offered $6.00 Senior/ $70 $25 senior/

(San Jose) buses $1.25 Disabled disabled, $45

Discount: $1 $2.50; youth

Youth $5.00

Samtrans Adult $2.00; Not offered $6.00 Senior/ $64 $25 senior/

(San Mateo $1 senior/ disabled disabled; $36

County) disabled; $3.00; Youth youth

Youth $1.25 $3.75

Metro $1.50; Senior/ Not offered $5.00 $1.80 Senior/ $75 $14 senior/

(Los Disabled $.55 Disabled. disabled; $24

Angeles) $.25 off peak. No youth day student;

$1 student, pass K-12 students

K-12 students only

only

OCTA Adult $2.00 Not Offered $5.00 Senior/ $69 Senior/

(Orange Senior/Disabled Disabled disabled

County) $.75; $1.50; $22.25; No youth fare No youth day

pass youth $40

Trimet Adult $2.50; Cash fare $5.00 Senior/ $100 Senior/

(Portland) Senior/disabled good for two Disabled $2; disabled $26;

$1.00 hours of rides .Youth $3.30 Youth $30

Youth $1.65

DART Adult $2.50 Cash fare $5.00. Senior/ $80 Senior/ (Dallas) Senior/ Disabled/ good for two Midday pass Disabled/ disabled/

Youth $1.25 hours of rides (930a-230p) Youth $2.50 youth $40

$1.75

Metro Adult $1.25 (Houston) Senior/

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staff report - ac transit...credit cards to autoload the card. the change from transfers to day...

Documents