TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Transbay Fare Increase Deferral
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adopting Resolution No. 21-044 to defer the implementation of the January 1, 2022 scheduled Transbay fare increase by six months to July 1, 2022.
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
Biennial fare increases were planned as part of the five-year Transbay fare schedule adopted by the Board in 2019, but the pandemic has severely affected Transbay service making a fare increase infeasible in January.
BUDGETARY/FISCAL IMPACT:
The current estimated Transbay fare revenue for FY 2021-22 including the fare increase is $1,688,000. Deferring the fare increase by six months is estimated to reduce fare revenue by $77,000 (4.5%).
BACKGROUND/RATIONALE:
In February of 2018, the Board adopted Resolution 18-021 which contained a Transbay fare schedule effective on July 1, 2018. The new fare schedule decoupled Transbay fares from local fares in acknowledgement of the cost of Transbay service, the introduction of double-deckers into the Transbay fleet, and the opening of the Salesforce Transit Center (STC) and the District's financial commitments to it. The Board stipulated that the first fare increase should not happen until after the delayed opening of the STC, which delayed the first fare increase (to $5.50) by six months until January 1, 2019, with delays to the following scheduled fare increases by the same amount. The following Transbay fare increase to $6.00 was on January 1, 2020. The next planned fare increase to $6.50 is scheduled for January 1, 2022.
The COVID-19 pandemic has significantly reduced Transbay ridership, falling below 1% of prior levels early in the pandemic. Transbay ridership has grown recently (along with local ridership) but remains low relative to local ridership at only 9% of pr...
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