TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Local and Transbay Fares and Update on Proposed Fare Policy Changes & Outreach
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution 24-009 selecting one of the following options for the planned local and Transbay fare increases:
1. implement the previously-deferred increases, to be effective on July 1, 2024 and July 1, 2025; or
2. further defer implementation of the previously-postponed local and Transbay fare increases by one additional year to July 1, 2025 and July 1, 2026, and allow for no further deferrals;
and receive an update on proposed changes to Board Policy 333: Fare Policy Goals and Methodology and the outreach planned to support the required Title VI analysis.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Beverly Greene, Executive Director of External Affairs, Marketing & Communications
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Fares are the District's main revenue source that it has direct control over and that can directly influence ridership.
BUDGETARY/FISCAL IMPACT:
Fare increases for both Transbay (raising the base fare from $6.00 to $6.50) and Local (base fare from $2.50 to $2.75) services are currently scheduled to take effect on July 1, 2024 and July 1, 2025. The increases are expected to generate $480,000 in additional revenue from Transbay and $3.1 million from local service for FY 2024-25 assuming no ridership is lost from the increase (no elasticity). The revenue impact of the second increase in the base Local fare ($2.75 to $3.00) is more difficult to estimate but can be safely assumed to be a similar or higher amount, mainly depending on ridership trends.
There is no budgetary or fiscal impact associated with the update being provided by staff on potential cha...
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