HomeMy WebLinkAboutAgenda Statement 1986/09/23 Item 10 COUNCIL AGENDA STATEMENT
Item 10
Meeting Date 9/23/86
ITEM TITLE: Resolution/,<j5?) Opposing proposed Metropolitan Transit
Development Board (MTDB) fare increase for seniors and
disabled persons on Local category systems in the MTDB service
area (Chula Vista Transit, National City Transit, and County
Transit Suburban) /
SUBMITTED BY: Director of Public Works/City Engineer (e/
REVIEWED BY: City Managerel (4/5ths Vote: Yes No X )
At its meeting on September 11 , 1986, the MTD Board of Directors approved for
a public hearing and Board action on September 25, 1986, modifications to the
existing regional fare structure which would be implemented on January 1 ,
1987, as described in Attachment A. Under the MTDB proposal , although the
existing base fare of 75¢ on Local systems in the MTDB area would remain
unchanged, senior and disabled fares would increase from 404 to 500 on all
systems. The Transit Coordinator believes it inappropriate to raise one
reduced fare category on CVT until the base fare for Local systems is modified.
RECOMMENDATION: That Council
1 . Adopt resolution opposing MTDB proposed fare increase for seniors and
disabled persons on Local category systems, including CVT;
2. Recommend to the MTD Board that either:
a. the senior/disabled fare remain at 40¢ for all systems in the MTDB
area, including Local , Urban, Metro/Express and trolley service
categories, or
b. the senior/disabled fare remain at 400 for the Local services, and
increase to 50¢ on the remaining service categories in the MTDB area.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The enabling legislation that established the MTDB (Mills-Deddeh
Transportation Development Act, c. 294, Stats. 1975) was adopted in 1975. The
MTDB has legislative authority under various sections of the Public Utilities
Code (PUC) for coordination of transit services, including fares, in its area
of jurisdiction. MTDB has established policies which require coordination
among transit operators in order to receive Transportation Development Act
(TDA) funds. The Assistant City Attorney has reviewed MTDB's legislative
authority, and it is his opinion that MTDB has the authority to withhold TDA
funds from a jurisdiction which does not adopt fares consistent with MTDB's
recommendation.
Page 2, Item 10
Meeting Date 9/23/86
Regional transit coordination activities generally are accomplished through
the General Managers' Group and through subcommittees of the Group. The Fare
Pricing Task Force, a committee of the General Managers' Group, is composed of
representatives from all the area transit systems and it develops annually a
fare structure proposal for presentation to the General Managers' Group. The
Task Force, and the General Managers' group, agreed to the fare structure
currently being proposed by the MTD Board with the exception that the
senior/disabled fare remain at 400 for all systems. However, the MTDB
Executive Committee, composed of Board members, recommended that the
senior/disabled fare be increased from 400 to 500. The Committee' s
recommendation was based on the fact that since the base fare on San Diego
Transit will increase from 800 to $1 .00, the senior and disabled fare should
also be increased.
However, increasing the senior/disabled fare on all systems, not just San
Diego Transit, means that it will be the only fare category increase on Local
systems, whose base fare of 75¢ will remain the same. The Transit Coordinator
believes that this proposed fare increase for Local category systems is
fare remain at this
for all ,L cal systems nor remain
at 400 the
for all systems senior/disabled
the MTDB area for the following reasons:
- Since there will be no base fare increase for Local systems such as CVT,
raising the senior/disabled fare to 500 singles out this one category of
riders.
- The fare increase on CVT is not warranted from a financial standpoint,
since the system achieved a farebox recovery ratio last fiscal year of
36%, a 33% increase from the previous fiscal year.
- CVT' s cash fare senior/disabled ridership last fiscal year was 52,650, and
generated fare revenue of approximately $21 ,000 (total senior/disabled
ridership was 140,050, including transfers and pass holders) . It is
estimated that a fare increase to 500 would result in a loss of
approximately 4,000 riders and generate only approximately $5,000 in
increased fare revenue or about 1% of total fare revenue.
- The increase on Local systems is not essential in order to maintain a
uniform regional fare structure. Since it has been MTDB policy that the
regional fare structure be uniform among, and not between, categories of
service, the senior/disabled fare could remain at 400 for Local systems,
increase to 500 on other system categories, and still be compatible with a
uniform regional fare structure.
FISCAL IMPACT: The proposed senior/disabled fare increase would generate
approximately $5,000 in additional revenue on an annual basis for CVT.
WMG:nr/DS-032
WPC 0752T
by the City Council of
Chula Vista, California
Dated