Title
Public Transit Regional Fare Policy Revisions (Ordinance S-43254)
Description
Request an ordinance amending the Public Transit Regional Fare Policy for the City of Phoenix Public Transit system adjusting the price of All Day Passes purchased on-board buses to match the off-board purchase price and adding a Special Event Pass program.
Report
Summary
Regional Transit All Day Pass Pricing
Transit fares are regional, and the City works in conjunction with Valley Metro in establishing fares. A fare policy change implemented by the region in 2009 included an additional charge for purchase of an All Day Pass on-board buses equal to the single ride fare of $1.75 in order to encourage pre-boarding purchase of passes to decrease bus dwell times and increase the speed of transit trips for passengers. With a fare policy change in 2013, this policy was continued with the differential increasing to the new single ride fare of $2.00. Although there are approximately 800 retail outlets in the region selling transit passes, those without access to these opportunities pay $2.00 additional for an All Day Pass purchased on board. The additional $2.00 paid for the on-board purchase of All Day Passes results in approximately $500,000 additional regional fare revenue, of which approximately $300,000 is the Phoenix portion; however, not quantifiable is the lost fare revenue resulting from potential riders choosing not to use, or unable to afford, the regional transit system due to the on-board increased fare. Elimination of the All Day Pass pricing differential would be effective July 1, 2017.
Special Event Passes
The regional transit system offers a variety of passes and fare programs that can be purchased and used by transit passengers. These passes and programs do not address the needs of special events. Large special events, such as conferences and major city events, like the upcoming NCAA Final Four, provide economic development opportunities for the region. Providing special event passes will enhance the experience of event attendees and provide opportunities for visitors to experience the convenience of the region's transit system.
The Valley Metro Regional Fare Policy Working Group, an advisory body comprised of staff from several cities, developed the recommended special event pass program be added to the regional fare policy. The Special Event Pass program is structured as follows:
Passes valid for multiple day special events:
- Minimum two-day event
- Minimum of 100 passes provided
- Passes sold to event sponsor/organizing committee, not available to general public
Pricing:
- Platinum Pass type of program, smartcard technology
- Cost recovery charge per card provided, currently $1.50 per card
- Pay single ride fare per use, up to an event maximum
- $4.00 per day for 2-3 days (1-day pass price)
- $2.85 per day for 4-7 days (7-day pass price per day)
- $2.20 per day for 8-15 days (15-day pass price per day)
- $2.00 per day for 16 or more days (31-day pass price per day)
The special event passes as proposed provide sponsoring organizations with pricing flexibility, cost certainty, and avoidance of unnecessary costs, while encouraging participating visitor groups to use the regional transit system. Prices are consistent with existing pass prices available to the general public. This program would be effective March 1, 2017.
Financial Impact
Elimination of the On-Board Fare Differential is estimated to decrease the City of Phoenix share of annual fare revenue by approximately $300,000. No financial impact is anticipated with the addition of special event passes.
Concurrence/Previous Council Action
Reducing the price of the on-board purchase of an All Day Pass to eliminate the differential and match the off-board purchase price was recommended by the Citizens Transportation Commission at its Aug. 25, 2016 meeting and by the Transportation and Infrastructure Subcommittee at its Oct. 11, 2016 meeting, both by unanimous vote.
The Special Event Pass was recommended by the Citizens Transportation Commission at its Dec. 15, 2016 meeting and by the Transportation and Infrastructure Subcommittee at its Jan. 10, 2017 meeting, both by unanimous vote.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.