REPORT TO THE CITY COUNCIL
FROM: JOE VARGAS, Interim Director
Department of Transportation
BY: BELINDA MCMILLAN HAENER, Administrative Manager
Department of Transportation, Administration Division
SUBJECT
Title
***RESOLUTION - Adopting the 567th Amendment to the Master Fee Schedule Resolution No.80-420 to update reduced transit fare pricing. (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends the City Council approve the action pertaining to an amendment to the Master Fee Schedule Resolution No. 80-420 to Adjust Various Fees in the Transportation/FAX Department, as discussed by the City Council during FY22 budget hearings.
EXECUTIVE SUMMARY
The Department of Transportation/Fresno Area Express (FAX) seeks approval from the City Council to amend the Master Fee Schedule reducing transit fares on the fixed route and paratransit system. The Department provided free bus rides on its fixed route and paratransit systems from March 1, 2021, through August 31, 2021, as part of the Zero Fare Clean Air (ZFCA) Act to assist passengers experiencing financial difficulties during the COVID-19 pandemic. Under CFR C 4702.1B, the FTA allows for a temporary fare reduction of up to 6 months.
During the FY22 budget hearing process, the City Council and FAX staff agreed upon completion of the six-month free fare period to reinstate transit fares at a reduced price, beginning September 1, 2021. This action formally adopts that direction.
BACKGROUND
FAX is the City’s fixed route bus system and Handy Ride is the City’s demand responsive, curb-to-curb service for the disabled mandated by Americans with Disabilities Act (ADA) law. In FY2019, FAX provided over 10.5 million individual passenger trips on fixed routes and Handy Ride provided over 200,000 trips. Due to the COVID-19 pandemic beginning in FY2020, ridership has decreased. In FY2021, FAX provided 5.6 million individual passenger trips on fixed routes and Handy Ride provided nearly 100,000 trips. The cost of providing those services continues to climb, particularly the cost of fuel, bus parts, and labor.
A zero-fare transit system had short-term benefits to the residents of Fresno. The city is home to a large percentage of population who utilize public transit as their primary transportation option to access jobs, education, medical care, and other essential services. The COVID-19 pandemic has uniquely impacted this rider population in terms of job security, access to healthcare, and ability to pay bills, making access to quality, reliable public transportation more important than ever. The zero-fare transit system was an economic relief tool that helped sustain the local economy during the ongoing recovery from the COVID-19 pandemic.
The ZFCA Act was implemented on March 1, 2021, to also encourage more residents to take public transit as an automotive alternative, thereby decreasing traffic and its effect on the environment. The project lasted six months due to FTA requirements. Under CFR C 4702.1B, the FTA allows for a temporary fare reduction of up to six months. If a temporary fare reduction lasts longer than six months, the FTA considers the fare reduction permanent, and the transit provider must conduct a fare equity analysis. Upon completion on August 31, 2021, the City Council directed the Department of Transportation to reinstate transit fares at a reduced price of $1.00 for a Single Ride Card starting September 1, 2021. The new lowered price agreement changes are commensurate to the reduced pricing for 10 Ride Cards, 31-Day Ride Passes, bulk purchases, and paratransit.
In compliance with Title VI of the Civil Rights Act of 1964, the Federal Transit Administration (FTA) requires all transit agencies that receive federal funding to monitor the performance of their systems, ensuring services are made available and/or distributed equitably. One component of ensuring compliance is performing an equity analysis for all fare changes and any major service changes to determine its impact on minority (race, color, or national origin) and low-income populations.
The Fare Equity Analysis completed and approved by Council in October 2021, determined that due to the consistency of fare reductions across all fare types and due to the relatively similar rates at which low-income and non-low-income and minority and non-minority individuals use different fare types, there is no disparate impact or disproportionate burden on fixed route service due to the fare reduction. There was also no disparate impact or disproportionate burden found for Handy Ride services, for similar reasons.
The table below represents current transit fare prices and compares them to the proposed prices calculated in accordance:
Additionally, the fare policy has been revised to allow Active Miliary, Veterans, and children 12 and younger to ride for free. This differs from the previous policy which allowed children under 6 to ride for free.
The policy related to transfers is also being updated. Cash/Card fares are entitled to unlimited transfers during a 90-minute window. This timeframe reflects industry standards and analysis of FAX ridership data. Approximately 24% of passengers utilize transfers, with an average passenger trip length of 2 miles, equivalent to 10 minutes at 12 MPH.
The proposed transit fare prices were previously considered in the Department’s FY2022 operating budget and therefore no new budget appropriations are requested. The proposed fares for FAX are at a historic low, below is a summary of the price of a single ride ticket over the past 20 years:
|
Year |
Single Fare - Fixed Route |
Single Fare - Reduced Fare |
Single Fare - Handy Ride |
Monthly Pass |
|
1991 |
$ .75 |
$ .35 |
|
|
|
2010 |
$ 1.00 |
$ .60 |
$ .75 |
$ 40.00 |
|
2020 |
$ 1.25 |
$ .60 |
$ 1.50 |
$ 48.00 |
|
2021- 2022 |
$ 1.00 |
$ .50 |
$ 1.25 |
$ 36.00 |
ENVIRONMENTAL FINDINGS
Pursuant to the definition in California Environmental Quality Act Guidelines section 15378, the proposed changes to the Master Fee Schedule are not a “project.”
LOCAL PREFERENCE
Local preference was not considered because this agenda item does not include a bid or award of construction or services contract.
FISCAL IMPACT
Enterprise funds are self-generated and there is no fiscal impact to the general fund.
The ZFCA Act, in conjunction with the ongoing pandemic, has significantly reduced farebox revenue. The department’s FY2021 fare revenue was estimated at $3.3M but had an actual ending revenue of $2.2M (a decrease of $1.1M). In total, the 6-months of free fares during the ongoing pandemic contributed to a loss of $1.6M in transit enterprise revenue.
Transit fares are used in calculating the farebox recovery ratio, a performance metric used in qualifying for Transportation Development Act (TDA) state funding, estimated at $30M for FY2022. While this ratio is temporarily suspended by the state of California for transit providers, it is important to make responsible fiscal decisions to continue to receive TDA funding. The loss of revenue from the ZFCA Act in FY2021 and the pandemic may place future burdens on operating dollars. Federal relief funding (CARES, CRRSSA, and ARPA) is not allowable to replace theoretical lost fare revenue.
Attachments:
567th Amendment to the Master Fee Schedule Resolution
Transportation Master Fee Schedule Amendment