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Amendment #1 to the CEA with the City of New Orleans to provide the Opportunity Pass
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DESCRIPTION: Request to amend the existing CEA between the City of New Orleans and the RTA to implement a special transit program for Opportunity Youths. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer (CEO) to receive and execute an amended Cooperative Endeavor Agreement (CEA) between the City of New Orleans (CNO) and the Regional Transit Authority (RTA) for the purpose of operating a pilot program entitled “Zero Transit Fare for Opportunity Youth Program.”
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ISSUE/BACKGROUND:
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In September 2024, the RTA entered a Cooperative Endeavor Agreement with the City of New Orleans to determine the terms of administering funds for a special transit pass program that allows opportunity youth, young people between the ages of 16 and 24, to ride RTA transit services at no cost to themselves. In lieu of program-eligible riders paying for fares at the time of activation, the City of New Orleans compensates RTA for the cost of one-day passes activated by program participants during the pilot period.
In 2023, the New Orleans City Council allocated $2.5 million in American Rescue Plan Act funding for this pilot program.
The original CEA specified a two-year length for the program (ending August 31, 2026) and certain terms for the distribution and reimbursement of fare media.
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DISCUSSION:
This amended CEA will extend the length of the program through the end of calendar year (December 31, 2026); reduce the total amount of money allocated in the program fund from $2.5 million to $1.8 million in response to demonstrated demand for the program; and enable the distribution of paper passes through the program as coordinated by RIDE New Orleans.
These changes to the Opportunity Pass program will ensure that fare media can be made more accessible to young people and will ensure that resources are allocated in relation to the demonstrated demand for them.
FINANCIAL IMPACT:
The funding made available by CNO through this ARPA allocation means the RTA can offer transit services without forgoing any fare revenue that would otherwise be collected from program participants during this period.
Although the total size of the fund is being reduced, RTA is only compensated for pass products redeemed for transit service. The amended fund allocation was set to account for existing program usage with possibility of some growth over the final year of the program. RTA is not expected to forgo fare revenue in exchange for transit services provided as a result of this amendment.
NEXT STEPS:
Upon Board approval, the CEO will execute the amended CEA between CNO and RTA. RTA staff will coordinate with other project partners to make any necessary changes to fare media distribution. Staff will continue to participate in on-going program activities and reporting.
ATTACHMENTS:
1. Board Resolution
2. Amended CEA
3. Originally Executed CEA
Prepared By: Jack Duffy
Title: Fare Policy and System Manager
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
12/11/2025
Lona Edwards Hankins Date
Chief Executive Officer