TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Board Policy 334 - EasyPass Pricing Policy
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Board Policy 334 AC Transit EasyPass Program Pricing Policy, codifying the EasyPass program pricing goals and methodology.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Adoption of an AC Transit EasyPass policy separate from the general AC Transit Fare Policy 333 will enable a clear framework to explain how the EasyPass program pricing is developed, making it easier to identify additional efficiencies to leverage revenue opportunities.
BUDGETARY/FISCAL IMPACT:
There is no budgetary impact associated with the adoption of this Board Policy.
BACKGROUND/RATIONALE:
On September 25, 2019, the AC Transit Board of Directors passed Resolution 19-033, which approved an EasyPass pricing schedule starting July 1, 2020 through June 30, 2029 and directed staff to amend Board Policy 333 Fare Policy: Goals and Methodology. After additional feedback from the District Secretary’s and General Counsel’s offices and with the concurrence of the General Manager, staff was asked to create a separate Board Policy for EasyPass pricing, given that while there was some overlap between the goals and principles of EasyPass pricing and AC Transit fares, there were significant differences in implementation that warranted a Board Policy focused specifically on EasyPass program pricing.
ADVANTAGES/DISADVANTAGES:
Adopting Board Policy 334 will make it easier to amend EasyPass pricing elements without the need to clarify the applicability of the amendment to the rest of the fares in the existing policy. A disadvantage is that both the EasyPass policy and the Board Policy 333 would need to be reviewed in tandem to understand the full District fare policy picture.
ALTERNATIVES ANALYSIS:
Staff considered adding more comprehensive EasyPass pricing language to Board Policy 333. However, it was determined that the amount of EasyPass-specific information was substantial enough to warrant a separate Board Policy.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 19-262b-Consider the adoption of Resolution 19-033 approving the AC Transit EasyPass pricing schedule for FY2021-FY2029, approving the Title VI Equity Analysis, and directing staff to amend Board Policy 333 (Fare Policy: Goals and Methodology)
Resolution 19-033: Approving the EasyPass pricing schedule for FY2021-FY2029
Board Policy 333-Fare Policy: Goals and Methodology
ATTACHMENTS:
1. Draft Board Policy 334-AC Transit EasyPass Program Pricing Policy
Prepared by:
Nichele Laynes, Marketing Manager
In Collaboration with:
Eden Gerson, Marketing Administrator
Approved/Reviewed by:
Beverly Greene, Executive Director of External Affairs, Marketing & Communications
Sue Lee, Director of Revenue Management
Claudia L. Allen, Chief Financial Officer
Jill A. Sprague, General Counsel
Linda A. Nemeroff, District Secretary
Michael A. Hursh, General Manager