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Report ID: 19-262   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 8/7/2019 Final action: 8/7/2019
Recommended Action: Consider setting a public hearing at 6:00 p.m. on September 11, 2019 regarding proposed changes to AC Transit EasyPass pricing matrices.
Attachments: 1. STAFF REPORT, 2. Att. 1 Current Pricing Matrices, 3. Att. 2 Proposed Pricing Matrices, 4. Att. 3 Public Hearing Notice, 5. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Set Public Hearings for Proposed Adjustments to EasyPass Program Pricing

ACTION ITEM

RECOMMENDED ACTION(S):

title
Consider setting a public hearing at 6:00 p.m. on September 11, 2019 regarding proposed changes to AC Transit EasyPass pricing matrices.

Body
BUDGETARY/FISCAL IMPACT:

There would be a gross revenue increase for the EasyPass program, if current clients remain in the program and there is continued growth from new clients. Revenue projections for current EasyPass clients show an estimated $500,000 annual increase compared to current EasyPass pricing matrices.
BACKGROUND/RATIONALE:

The AC Transit EasyPass program offers a discounted annual pass to three distinct client groups: employers, residential communities and two-and-four-year colleges/universities. There are currently 31 EasyPass clients, generating approximately $6 million in revenue annually.
EasyPass pricing matrices (one for employers and residential communities and a second matrix for colleges/universities) were first developed in 2006 and 2007, respectively, to provide standardized pricing for structuring multi-year agreements with EasyPass clients. The matrices were codified in Resolution 13-046 in 2013. The current matrices will expire on June 30, 2020, and all contracts will expire in 2020. New pricing must be presented for a Public Hearing, Title VI analysis and Board approval to offer pricing to new and continuing EasyPass clients. A comprehensive overview of the EasyPass program can be found in Staff Report 19-241, EasyPass Program Update.
EasyPass staff began developing the infrastructure to update the current matrices in April 2019. After formulating new pricing considerations and factors, EasyPass staff met with interdepartmental stakeholders from the Planning & Development, Title VI, Revenue Management, Budget & Finance, Legal and Data Analysis teams to solicit feedback and input on r...

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