TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: BART Feeder Service Funding Agreement Extension
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute an amendment to the Feeder Service Funding Agreement with the Bay Area Rapid Transit District (BART) to extend the current agreement for two years, through June 30, 2023.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Extending this agreement will ensure the continuation of the transfer payment.
BUDGETARY/FISCAL IMPACT:
The extension sets the payment for FY 2021-22 and FY 2022-23 at $2.7 million from BART, the same amount provided by BART in FY 2020-21.
BACKGROUND/RATIONALE:
BART transfer payments to AC Transit and San Francisco Municipal Transportation Authority (Muni) were established as part of AB 842 as a financial incentive to provide enhanced feeder service to BART consistent with coordinated fare principals. The payments started in 1985 and have been negotiated several times since then. The current agreement was originally signed in September 2014 for FY 2014-15 through FY 2019-20. The agreement was then extended for FY 2020-21. Attachment 1 is an extension for an additional two fiscal years, FY 2021-22 and FY 2022-23.
The significant ridership loss of both systems and the payment adjustment limits in the original formula led staff to agree on the smaller fixed payment of $2.7 million for the prior one-year extension. That payment was augmented by the remaining funds of approximately $831,000 in a "fare coordination reserve" set up with the original agreement. The ongoing effects of the COVID-19 pandemic and reduced ridership again led to consensus on a fixed payment for another two years. The extensions recognize that the feeder payment revenue is part of the District's operating budget and that BART's histo...
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