Title
ADD-ON - Bus and Light Rail Youth Pass - Citizen Petition
Description
This request is for the City Council to take action regarding a petition presented by Ms. Denise Rivera during the Citizen Comment session at the May 31, 2017 regular City Council Formal Meeting pursuant to Chapter IV, Section 22, of the Phoenix City Charter (Attachment A).
The May 31 petition requests the City Council provide free bus and light rail transportation to pre-school through high school students 19 years of age or younger, traveling to and from school, and to the accompanying parents or guardians of said students.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The regional fare policy, last modified by the City Council on Feb. 15, 2017, provides for Reduced Fares, which includes Youth, ages 6 to 18. Youth age 5 and under ride free when accompanied by a fare-paying caretaker or guardian. All youth are eligible for a Reduced Fare, which is $1 for a single ride or $2 for a one-day pass. The regional fare policy provides several additional fare options for youth and schools.
Platinum Pass - a Platinum Pass is a transit card available to companies, organizations or schools for their employees or students. It requires a minimum of 20 active monthly users. The cardholder is charged the appropriate fare (in this case, a reduced fare), for each boarding on Local and Express/RAPID bus and rail service. At the end of the month, a bill is issued for each boarding up to the monthly cap of $32 for a 31-Day reduced local pass. The company or organization is solely responsible for the cost of the program. The Phoenix Union High School District is enrolled in the Platinum Pass program.
Semester Pass - this pass can be purchased by high schools for student use, at no cost to students, and by full-time students enrolled in high schools, technical, trade, college, or graduate courses at participating schools. Passes are good for unlimited rides on local bus/rail service. A Fall/Spring Semester Pass costs $230 and a Summer Semester Pass costs $154.
All passengers are required to pay a fare to ride the bus and light rail. The City of Tempe funds a "Youth Free Transit Pass Program" for youth ages 6 to 18 who live in Tempe. The Tempe youth transit pass is valid on all Valley Metro bus routes and the light rail. Through the program, youth are able to receive an annual transit pass valued at $384, which is paid for by the City of Tempe. Additionally, the City of Tempe reimburses the region for all youth trips that occur in other cities. The total estimated cost to the City of Tempe is approximately $395,000, including $284,000 in lost revenue and $111,000 in reimbursement to regional cities.
The petition inaccurately indicates that City of Phoenix employees are provided "free" mass transit passes. Actually, similar to the State of Arizona and several other local employers that provide or subsidize Platinum passes for their employees, the City of Phoenix provides Platinum passes as an employee benefit, which is included in negotiated employee contracts. The City of Phoenix is responsible for the full cost of the program, is billed monthly, and budgets for the annual costs as an employee expense.
In a review of other transit systems, it is common for transit authorities to provide a reduced fare for youth similar to our current fare policy. Only two out of 18 comparable systems provide limited free youth passes that somewhat compare to what is proposed in the petition. San Francisco Muni provides income-based free transit passes to eligible participants. The Washington Metropolitan Area Transit Authority (WMATA) in Washington DC has a variety of youth fare types, with some free fares on buses for District residents only. The attached chart provides information from the transit authorities Valley Metro compares to, as well as larger transit systems (Attachment B).
The petition requests that the City provide free transit to youth traveling to and from school as well as an accompanying adult. It would be difficult to track whether a youth is going to or from school and if the adult is accompanying the youth. As a result, treating youths and adults separately and consistently is the most viable solution.
Options for Action
A. Accept or amend the petition and modify it to fund and provide transit passes for youth. As an example, if Phoenix replicated the City of Tempe's program, the City of Phoenix would fund and provide transit (Platinum) passes for 6-18 year old youth. This would cost the City of Phoenix approximately $8 to $12 million per year in lost fare revenue and additional expense for reimbursement to the region for all youth trips that occur in other cities. The $8 million at the low end of the range is based on Tempe’s program utilization with adjustments that account for Phoenix youth ridership levels. The $12 million is based on Phoenix Union High School’s Platinum Pass actual utilization applied to the overall Phoenix youth population. Additionally, to implement this program, two staff positions would be needed to manage the program and funds would be needed for marketing/outreach, purchasing and printing passes. Funding of this option would require cuts to existing transit or other services and/or an additional revenue source.
B. Deny the petition based on the cost impact. Staff recommends denying the petition based on the cost impact estimated at between $8 and $12 million a year and work with interested schools to implement a youth pass, which could include a Platinum Pass or Semester Pass. The Phoenix Union High School District and the City of Phoenix have partnered for 10 years on transit service. With more than 27,000 students attending schools within the District and almost 30 percent of these students using a Platinum Pass, this program is a way for schools to provide students with easy connections to transit while containing costs at a maximum of $32 per month. Phoenix Union’s costs average $27 per month for each student using a Platinum Pass.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.