TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Coronavirus Pandemic (COVID-19) Update
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving an update on the District's actions to date in response to the Coronavirus Pandemic (COVID-19.)
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Financial Efficiency and Revenue Maximization
This report outlines the District's preparedness, planning and response to COVID-19, including efforts to date to provide service that is safe for customers and employees.
BUDGETARY/FISCAL IMPACT:
As of May 8, the District's ridership decline is estimated at 72% when compared to the February baseline of 189,000 weekday riders. On average, buses are currently carrying 53,000 daily riders.
Farebox revenue loss is about $5 million per month for each month with no fares collected.
The Alameda County Transportation Commission (ACTC) has released projections for Measure B and BB for FY20-21 that show a 9% ($6 million) reduction from the AC Transit FY19-20 adopted budget. Staff believes the actual loss is likely to be higher than this, estimating in the 20-30% ($14-22 million) range, with worst case reductions as high as 40% ($29 million). Considering all of the District's sales tax-based revenues a worst-case 40% reduction is approximately $80 million.
BACKGROUND/RATIONALE:
Service levels and the shelter in place order have not changed since the May 13 update to the Board of Directors. The District continues operating emergency service levels and the Emergency Operations Control Center continues active and staff is meeting weekly.
Currently, the District is not hiring for non-essential positions, consequently, the District's natural attrition will reduce headcount and thus help reduce expenses.
Internal Communications
On May 8, a new internal newsletter, NEWSLTR, launched with a goal of providing District staff accurate and timely updates regarding the st...
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