Title
Fare Policy Amendment - Use of ARPA Funds to Purchase Transit Passes (Ordinance S-47872)
Description
Request the City Council to amend the City’s Public Transit Fare Policy and Uniform Fare Structure “Fare Policy” to provide for the City to purchase full-fare transit passes at a half-price fare rate, so that the City can purchase twice as many passes for distribution to groups identified by the Council in need of relief. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The total cost of the pass purchases will not exceed $1 million. Funding is available through the City's allocation of the American Rescue Plan Act (ARPA) from the federal government and is under the City's Bus Card Subsidy Program category of the City's strategic plan.
Report
Summary
For relief during the COVID-19 pandemic, the City will be receiving federal ARPA funding that may be allocated at the discretion of the City Council. From these funds, the City intends to use $1 million to purchase transit passes for the needy, although this expenditure would help more people with an amendment to the Fare Policy to allow the City to purchase full-fare transit passes at a reduced-fare rate.
Over the past 10+ years, a number of Council-approved fare policy changes have been implemented by the Public Transit Department, including changes to the fares charged to public transit users. The current Fare Policy, as amended, is located in the office of the Public Transit Director and reflects regional fare policies implemented regionally in partnership with Valley Metro and its member agencies.
Among its provisions, the Fare Policy provides that homeless service providers are eligible to receive full fare transit passes at a half-price rate. The proposed Fare Policy amendment would provide for the City to similarly purchase, with federal relief funding, full-fare passes at half price for needy passengers experiencing financial or other difficulties as identified by Council. See Attachment A - Final Version (Fare Policy). This amendment would facilitate the purchase of twice as many passes, which the Public Transit Department and other City departments would distribute as directed by Council to ensure that those transit-dependent passengers can continue to ride transit in these challenging times.
Financial Impact
Funding is available through the City’s allocation of the American Rescue Plan Act (ARPA) funding received from the Federal Government, which falls under the City’s Phoenix Bus Card Subsidy Program Category of the strategic plan. The City will use $1 million in federal ARPA funds to purchase 31,250 full-fare, 31-day transit passes at the reduced-fare rate of $32 each.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.