Title
Intergovernmental Agreement with the Regional Public Transportation Authority - Platinum Pass Program (Ordinance S-50877)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) with the Regional Public Transportation Authority (RPTA) for the City's participation in the Valley Metro Platinum Pass Program. Further request to authorize the City controller to disburse all funds related to this item. The value of the agreement is estimated at $500,000 per year.
Report
Summary
The Platinum Pass Program is a regional transit fare program for employers in the Phoenix metropolitan area. Through participation in this program, the City has been offering fully subsidized bus passes to active employees for decades. This benefit was expanded in 2008 to include light rail service. The Platinum Pass Program allows employers to offer a valuable benefit and provides an incentive to utilize public transit to mitigate the negative effects of traffic congestion. Since its inception, the program has been managed for the region by the City of Phoenix Public Transit Department. In conjunction with the upcoming modernized fare collection system to be managed by Valley Metro RPTA, the management of the Platinum Pass Program will be transferred to Valley Metro RPTA beginning June 1, 2024.
This request is for the City to continue participation in the Platinum Pass Program by entering into an agreement with Valley Metro RPTA. Under this program, the City pays only for the bus and light rail trips its employees take, capped as applicable based on usage. Additionally, while the Human Resources Department budgets and pays for this employee benefit, revenue generated by employees using their Platinum Passes for trips initiated in Phoenix is paid to the Public Transit Department as fare revenue, significantly offsetting the cost of the program to the City as a whole.
Contract Term
The IGA will become effective on or about June 1, 2024, for a ten-year term.
Financial Impact
The aggregate contract value, with the expectation of rider growth, will not exceed $7,000,000. Funding is available in the Human Resources Department's operating budget.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays, and the Human Resources Department.