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Fare Policy
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DESCRIPTION: Authorization of an agency fare policy |
AGENDA NO: 22-137 |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
The New Orleans Regional Transit Authority (RTA) is committed to providing high-quality public transportation services for the benefit of the individuals and communities that it serves. This mission is funded in part by fare revenues from riders across its service area.
The recommendation is to authorize the Chief Executive Officer to implement the proposed Fare Policy that will establish transparent guidance for all Fare Elements and Fare-Related Decisions at RTA.
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ISSUE/BACKGROUND:
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In August 2021, RTA staff introduced the Coordinated Fare Modernization Initiative (CFMI) to develop a comprehensive and holistic approach to transforming RTA fare collection systems to improve the speed and quality of service, and to grow ridership. Adopting a fare policy is a key piece of this effort, providing an over-arching set of objectives to align present and future decision-making while also defining the responsibilities of the RTA in pursuit of informed, coherent fare-related decisions.
To develop a fare policy for the agency, RTA staff studied fare policies, fare reviews, and best practices from peer agencies across the country, with specific focus given to policies and reviews from SoundTransit in Seattle; TriMet in Portland, Oregon; SFMTA (“Muni”) in San Francisco; IndyGo in Indianapolis; MBTA in Massachusetts; and the City of Tuscon. RTA organized a cross-departmental working group to study and draft a fare policy. Throughout the process, this working group convened inter-departmental groups to discuss specific operational questions (e.g. fare validation and proof of payment procedures). The policy was also subject to feedback from a higher-level steering group representing leadership from several departments and to final feedback from the senior leadership team.
In summary, the document proposed for adoption:
• Defines RTA’s responsibility to riders in fare-related decisions
§ Clarifies the process for fare changes
§ Institutes standard internal reporting to support long-term fare decision making
§ Proposes updates to language and eligibility for more inclusive rider categories
§ Introduces a new approach to bulk discounts and a pass product for university partners
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DISCUSSION:
The Fare Policy includes the following sections. Contents of each section that will introduce a change to existing RTA policies, procedures, or practices are highlighted below.
Section 1 - Fare Policy Objectives
• Lists and explains the objectives for the fare policy
Section 2 - Fare Structure
• Captures existing fare table, defines the functionality of fare products
• Proposes condensing "Single-Ride Fares" and "Single-Ride Fares with Transfer" to a single fare product
• Operational change: all riders will receive a printed ticket valid for two hours from the time of printing
• As a result, all riders will have proof of payment when riding RTA
Section 3 - Change and Refunds
• Captures existing practices and policy
Section 4 - Fare Reporting Requirements
• Commits RTA to produce an Annual Fare Report to the Board of Commissioners by March of each year.
Section 5 - Fare Changes
• Outlines procedures and necessary conditions for RTA to change fare structure and/or fare pricing
• Commits RTA to complete a Fare Structure Review every two years (counting January 2022 as the initial review)
• Proposed language defining RTA’s ability to implement promotional fare discounts, fare-free days, and suspension of fares.
Section 6 - Fare Categories
• Proposes updating language for fare categories to be more inclusive and less stigmatizing, in line with RTA’s own goals and industry best practice
• Existing categories would be renamed from “Standard” to “Adult”; “Youth (K-12)” to “Youth”; and “Senior / Disabled” to “Priority Rider”
• Priority Rider eligibility would be analogous to existing “Senior / Disabled” category, now also including Veterans. This category could be expanded in the future to include other segments of the population for whom transit access has deemed a priority and recognized with existing discounts on fares. Nomenclature modeled on fare category language in use by TriMet in Portland.
Section 7 - Pass Sales Program
• Changes proposed to bulk discount program, allowing for discounts on all multi-day passes structured to incentive higher-volume sales
• University pass product proposed to provide academic-term-based access to RTA to students at institutions of higher education
Section 8 - Fare Media Requirements
• Aligns Fare Policy with existing Title VI commitments
Section 9 - Fare Validation
• Captures existing practice on validating rider eligibility for fare categories
• Leaves room for future policy development
FINANCIAL IMPACT:
None
NEXT STEPS:
Upon RTA Board Approval, staff will implement the approved fare policy.
ATTACHMENTS:
1. Resolution
2. New Fare Policy
Prepared By: John Duffy
Title: Financial Data & Reporting Analyst
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
Reviewed By: Mark Major
Title: Deputy CEO Administration and Finance
9/19/2022
Alex Wiggins Date
Chief Executive Officer