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Amendment #2 to the CEA with the City of New Orleans to provide the Opportunity Pass Program
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DESCRIPTION: 2026 Amended Cooperative Endeavor Agreement (CEA) Between the City of New Orleans and the Regional Transit Authority for the Zero Transit Fare for opportunity Youth Program |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: Approval |
RECOMMENDATION:
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To authorize the Interim Chief Executive Officer (CEO) to receive and execute the 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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Program Overview: In 2023, the City of New Orleans created a Youth Fare Transportation fund for the purpose of funding “programs executed by the New Orleans RTA that provide free public transit for our youth,” and made a one-time allocation of $2.5 million from American Rescue Plan funds for the program. These funds are being used to support a one-year pilot program that will make free RTA passes available to Orleans Parish residents aged 16-24, which launched in the Summer of 2024.
The pilot program is administered through a partnership between the Regional Transit Authority, New Orleans Public Library, RIDE New Orleans, and NOLA CYPB:
• The Regional Transit Authority will provide ridership/financial data to facilitate program development, coordinate the fare media being used for the pilot through the Le Pass app, and release data on pass usage.
• The NOLA Public Library will administer the program and oversee enrollment and pass distribution.
• RIDE New Orleans will assist with program development, administration, and outreach and will oversee impact assessment and reporting.
• NOLA CYPB would assist with program development and OY provider outreach.
In 2025, the CEA was amended to extend the date of the agreement through December 2026 and to reduce the budget from $2.5M to $1.8M. The amended CEA between the CNO and RTA was also needed to set forth the terms of the administered funds for the special transit pass program that allowed 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 paid RTA for the cost of one-day passes activated by program participants during the pilot period.
As a result of budget cuts by the City of New Orleans, in 2026, the program budget was further reduced to $1.3M, requiring this additional amendment.
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DISCUSSION:
The RTA partnered with RIDE, CNO, the New Orleans Public Library (NOPL), and the New Orleans Children and Youth Planning Board (CYPB), the RTA has helped design a low-barrier transit access program to encourage youth mobility through this pilot program. The funding made available by CNO through this ARPA allocation means the RTA can offer this service without forgoing any fare revenue that would otherwise be collected from program participants during this period. This pilot provides valuable data to help the City and RTA evaluate how zero fares can benefit New Orleans youth; this program supports the broader vision of the New Orleans Youth Master Plan.
The program, which was launched in the summer of 2024, is being extended through December 2026 to allow participants to exhaust all the funding allocated to the program. With this latest amendment, the program is operating under a reduced budget of $1,315,090.13. To date the RTA (and partners) have invoiced the City of New Orleans approximately $957,408.25 through June of 2026. We anticipate that the remaining balance of $357,681.88 will be fully exhausted by end of this current amendment.
FINANCIAL IMPACT:
In 2024, the RTA was expected to receive $2,425,000 under this program. In the amended contract, the RTA will receive $1,315,090.13. The RTA will not forgo any fare revenue during this pilot program, due to the terms of agreement with CNO.
NEXT STEPS:
Upon Board approval, the Interim CEO will execute the CEA between CNO and RTA. During the performance of this CEA, staff will continue to participate in on-going program activities and reporting processes with partner organizations.
ATTACHMENTS:
1. Resolution
2. Executed Contract
3. Contract Amendment #1
4. Proposed Contract Amendment #2
Prepared By: Trené McCormick
Title: Business Administrative Analyst Contractor
Reviewed By: Tracey L. Tyler
Title: Chief Legal Officer
Reviewed By: Gizelle Johnson-Banks
Title: Chief Strategy and Finance Officer
7/28/2026
Ronald G. Baptiste Date
Interim Chief Executive Officer