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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Vi Miller, Chief Financial Officer |
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PRESENTER(S): |
Kensey Kunkel, Manager Fare Strategy |
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TITLE:
title
R2023-07-05 - Resolution Establishing the Parameters within which the Executive Director is Authorized to Declare a “Zero Fare Day” in Commemoration of the Grand Opening of the Ogden Express Bus Rapid Transit (OGX)
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve resolution R2023-07-05 establishing parameters within which the Executive Director is authorized to declare a “Zero Fare Day” in commemoration of the Grand Opening of the Ogden Express Bus Rapid Transit (OGX).
BACKGROUND:
The Ogden Express Bus Rapid Transit (OGX) is slated to begin service on August 20, 2023. This new service will connect customers from the Ogden FrontRunner Station to Weber State University and McKay Dee Hospital. Utah Transit Authority (UTA) will host a Grand Opening celebration that will take place at various OGX stations, and the community is encouraged to travel to Ogden to ride the new service. In that spirit and to participate in air quality improvement, staff recommend offering system-wide zero fare on August 26, 2023 for the OGX Grand Opening celebration.
UTA provides our partners with various opportunities to subsidize rider fares including the Free Fare for Clean Air program. This program is part of an effort to improve air quality along the Wasatch Front by encouraging more people to consider using transit as an alternative to driving.
The Authority will obtain community support to offset fare revenues for this proposed Zero Fare Day. This includes financial contributions, media support, and requests to UTA contract partners to continue providing their current level of subsidy for this single day.
DISCUSSION:
Total passenger revenue for August 26, 2023 is estimated to be about $28,500. This amount is comprised of revenue from Fareboxes, Ticket Vending Machines, FAREPAY, and Mobile Tickets.
Resolution R2023-07-05 will authorize the Executive Director to declare a system-wide zero fare day on August 26, 2023, provided that reasonable efforts to recoup as much lost revenue as possible is exerted.
ALTERNATIVES:
Do not approve the resolution for a zero fare day and require the public to pay UTA fare using alternative methods.
FISCAL IMPACT:
The loss of $28,500 of fare revenue is anticipated to be offset by sponsorship from community partners.
ATTACHMENTS:
Resolution R2023-07-05