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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Monica Morton, Fares Director |
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Kensey Kunkel, Manager Business Development & Sales |
TITLE:
title
R2021-11-02 - Resolution Adopting Free Fares on the UVX Line through December 2023
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2021-11-02 adopting free fares on the UVX line through December 2023
BACKGROUND:
Utah County and the Authority entered into an interlocal cooperation agreement #2018-695 (“the Agreement”) on October 9, 2018 governing the distribution of the Local Option Sales Tax known as the “Fourth Quarter Tax”. The Agreement provides for the County to pay the actual documented operating, maintenance, and depreciation costs incurred by the Authority with respect to the UVX bus rapid transit line.
The Authority typically subsidizes the operating and maintenance costs of service with the collection of fares. However, the additional funding obtained through the Fourth Quarter Tax distribution, a share of Authority pass revenues, and other grant revenues subsidize the operating, maintenance, and depreciation costs for the BRT line, therefore fares are not currently collected on the UVX bus rapid transit line.
By forgoing the collection of fares, the County and the Authority consider this to be a free fare service. In addition, the Board of Trustees is currently developing a new fare collection strategy and will consider the collection of fares on the UVX line as part of those deliberations. Upon completion of the fare strategy, the Board of Trustees will revisit the free fare issue on the UVX line.
DISCUSSION:
The free fares for the UVX bus rapid transit line will be authorized until December 31, 2023, and any previous fare proposals adopted by the board of the Authority for the UVX line will be rescinded.
ALTERNATIVES:
Do not approve the resolution and implement a fare collection system on the UVX Bus Rapid Transit line.
FISCAL IMPACT:
Foregone revenue is estimated to be about $54,000 per month and will be offset by revenue collected from the Fourth Quarter Tax for operating expenses.
ATTACHMENTS:
R2021-11-02 - Resolution Adopting Free Fares on the UVX Line through December 2023