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Report ID: 19-211a   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Special Meeting
Meeting Date: 8/7/2019 Final action: 8/7/2019
Recommended Action: Consider approving a three-month promotional fare trial period to maintain current ridership and attract new customers to the District's new Bus Rapid Transit (BRT) service.
Attachments: 1. STAFF REPORT, 2. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Promotional Fare Trial Period for Bus Rapid Transit

ACTION ITEM

RECOMMENDED ACTION(S):

Title
Consider approving a three-month promotional fare trial period to maintain current ridership and attract new customers to the District's new Bus Rapid Transit (BRT) service.
Body

BUDGETARY/FISCAL IMPACT:

The daily revenue loss of providing BRT service without collecting fares is estimated at $16,260, though revenue is expected to grow from increased ridership after the first year of service.

BACKGROUND/RATIONALE:

Staff is finalizing strategies to introduce the inaugural service, communicate changes to riders, and attract new customers to the new BRT service. A key element of this plan includes a promotional trial fare period, allowing customers to ride the BRT line for three months without paying a fare.

The goals of this promotional period are to:

1. Allow for continued service and technology refinement;
2. Acclimate customers to the new service elements;
3. Mitigate customer complaints and concerns; and
4. Attract new riders to the BRT line.

During this promotional fare period, staff will leverage opportunities to engage and educate customers of the new proof-of-payment system and encourage use of Clipper. Examples under consideration include distributing free Clipper cards, developing a Commemorative BRT Clipper Card, securing additional Clipper vendors along the corridor, and holding pop-up events to encourage qualified individuals apply for a discount Clipper card.

To reinforce the proof-of-payment concept and behavioral change during the promotional period, staff is exploring the possibility of requiring customers to either obtain $0 value tickets from the ticket vending machine (TVM) or tag a Clipper reader at no cost prior to boarding.

Staff provided an overview of the BRT promotional fare trial period to the Board during the May 29, 2019 Board of Directors Re...

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