TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Fare Integration Study Update
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving an update on the work of the Metropolitan Transportation Commission (MTC) Fare Integration Task Force. [Requested by Director Walsh - 12/9/2020]
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Fares are an important part of the District’s overall revenue picture.
BUDGETARY/FISCAL IMPACT:
There are no fiscal impacts associated with this briefing item. The recommendations of the Fare Integration Task Force (FITF) may have fare revenue impacts and funding needs to backfill or mitigate those impacts. Part of the study is to produce a business case with full revenue/cost impacts for the recommendations put forth.
BACKGROUND/RATIONALE:
At its September 2019 meeting, the Clipper® Executive Board approved a scope of work for a Fare Coordination/Integration Study and Business Case and designated BART and the Metropolitan Transportation Commission (MTC) as Co-Project Managers for the effort. The key objectives of the project, as defined by the Clipper Executive Board upon approval of the project scope include:
• Developing goals for the regional fare system that will support an improved user experience, increased transit ridership and build on robust public outreach
• Identifying barriers, especially barriers related to fares and the user experience, that are impeding increased ridership
• Identifying opportunities to increase transit ridership by improving the regional fare system through regional fare coordination and integration strategies
• Developing a detailed implementation plan, including funding plan, for recommended improvements
This staff report is an update to the first project update presented to the Board in February 2021. At the time the study was developing the large set of fare integration scenarios and then narrowing down to a smaller set to be more intensively studied. Since then the study has developed scenarios within a structure of four levels of fare integration and has a draft set of recommendations including an initial pilot project. Development of the full report with business case is ongoing. The attached presentation has an overview of this current status.
As the project progresses toward a final report, staff continues to actively work with the project team and has had an initial meeting on the proposed regional institutional pass pilot.
ADVANTAGES/DISADVANTAGES:
There are no advantages or disadvantages to this briefing item. The fare integration study will consider the advantages and disadvantages to the recommendations put forth.
ALTERNATIVES ANALYSIS:
There are no alternatives to this briefing item. The fare integration study is considering a wide range of alternatives and those will be detailed in the final report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 21-145 MTC Fare Integration Task Force Update
ATTACHMENTS:
1. Presentation
Prepared by:
Chris Andrichak, Chief Financial Officer
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer