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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 of Fare Strategy |
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TITLE:
title
R2023-07-02 - Resolution Adopting Free Fare on the Ogden Express Line (OGX) through August 2026
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve and adopt Resolution R2023-07-02 to authorize Free Fare on the Ogden Express Line through August 2026
BACKGROUND:
The Ogden Express bus rapid transit line (“OGX”) is expected to open in August for service from the Ogden Frontrunner Station to Weber State University and McKay Dee Hospital. UTA will receive grant funding to be used to offset the cost of operations of running this service for three (3) years. Note: This grant funding agreement was previewed to UTA Trustees in the May 24 board meeting and will be presented for final approval by the UTA Board of Trustees this July.
Historically, fares are collected and used to offset the cost of operations. Because UTA is receiving grant funds for the OGX service, UTA will be able to forego fare collection from customers riding the OGX service during this three (3) year period.
Fare rates are governed by Board Policy 4.1 Fares and rates are set by a resolution of the Board of Trustees.
DISCUSSION:
Staff recommends not collecting a fare to ride the OGX bus rapid transit for three (3) years beginning August 1, 2023 and continuing through August 31, 2026. By forgoing the collection of fares, the Authority considers this to be a free fare service.
Resolution R2023-07-02 will authorize free fare for the OGX bus rapid transit through August 2026.
ALTERNATIVES:
Do not approve the Resolution and do not accept the OGX line as free fare and require passengers to pay the public fare rate.
FISCAL IMPACT:
Foregone fare revenue that will be replaced by grant revenue to cover OGX operating costs is estimated to be about $1,230,700.
ATTACHMENTS:
Resolution