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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Jordan Eves, Manager of Fare Strategy |
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TITLE:
title
R2024-08-01 - Resolution Adopting the Fare Rates and Types of Fare Media of the Agency
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Adopt Resolution R2024-08-01 to revise fare rates and types of fare media of the agency effective August 18, 2024 as presented.
BACKGROUND:
The Utah Public Transit District Act empowers the UTA Board of Trustees to set fares for the agency (Utah Code § 17B-2a-808.1(2)(k)(i)). Further, Board of Trustees Policy 4.1, adopted on December 21, 2022 establishes the policy by which the UTA Board of Trustees enacts changes to fare.
DISCUSSION:
On April 12, 2023, the Board adopted Resolution R2023-04-03 which authorized a fare structure and approved new or modified fare media for transit services. The board desires to rescind this resolution and set forth a new fare structure and establish the types of fare media for the authority through Resolution R2024-08-01. This fare change is scheduled to begin concurrently with August Change Day on August 18, 2024. The Board previously approved the Title VI Service and Fare Equity Analysis for this fare change and the service changes for August Change Day in Resolution R2024-05-05 on May 22, 2024. There are three significant changes in the new resolution:
• Discontinuation of the FAREPAY discount
• Addition of Fare Capping
• Updated qualifications for reduced fare
Discontinuation of the FAREPAY discount
In 2013, the agency launched the UTA FAREPAY card to incentivize riders to migrate to FAREPAY, the agency approved a pilot promotion. This pilot gave riders a 20% discount off the public fare when using the new fare media. This incentive, meant to be a temporary promotion, was adopted by the Board of Trustees as a permanent discount through the Fare Policy adopted in 2020. A recent study conducted by Clevor Consulting recommended that the agency move towards fare capping and doing away with the 20% discount on FAREPAY cards.
Addition of Fare Capping
Fare Capping is intended to benefit passengers that ride frequently and encourages others to ride more frequently. Fare Capping includes daily and weekly capped rates for Regular and Premium Services and for Regular and Reduced Fare Rates.
Reduced Fare rates have been split into two categories: cash and electronic fare card (EFC) Reduced FAREPAY.
• Reduced Fare cash rates remain at a 50% discount.
• Riders with the EFC Reduced FAREPAY card receive an additional 10% discount for a 60% discount.
The intent of increasing the discount is twofold:
1. Encourage riders to pre-qualify to receive a discount
2. Encourage riders to shift to an electronic fare media
Updated qualifications for reduced fare
Previously, riders with a household income of less than 150% of the Federal Poverty Guidelines were able to qualify for a Reduced FAREPAY card. The new Resolution expands the eligibility conditions to include riders with a household income of less than 200% of the Federal Poverty Guidelines.
In addition to the fare rates and type of media being requested in today’s resolution, the Title VI Service and Fare Analysis conducted this spring also included the discontinuation of zero-fare on the Utah Valley Express (UVX) Bus Rapid Transit (BRT) service. Although separate from today’s resolution, the effective date for implementation of UVX fare will also be on the Authority’s August 18, 2024 Change Day. This action was initially directed by the Board in Resolution R2023-12-07 and was subsequently confirmed when the board approved the Title VI Service and Fare Equity Report in Resolution R2024-05-05.
Staff recommends that the board adopt Resolution R2024-08-01 to set a new fare structure including Fare Capping.
ALTERNATIVES:
Do not adopt the Resolution and maintain fare rates adopted in April 2023.
FISCAL IMPACT:
No change in revenue is anticipated. Staff believe that the ridership gained through Fare Capping and the expansion of eligibility through the low income program will offset the loss in ridership and revenue from the elimination of the 20% FAREPAY Discount. Staff will continue to monitor revenue as data becomes available.
ATTACHMENTS:
Resolution R2024-08-01
Exhibit A Fare Rates
Exhibit B Fare Medium