Have Something to Say About Fares? We Bet You Do!

News Articles
02/03/2011

Here is your opportunity to help determine AC Transit’s fare policy. 
en español
 

Over the last six months, all aspects of AC Transit’s fare system have been under review in an effort to develop a comprehensive Fare Policy. Read below to learn what AC Transit staff and Board of Directors have been talking about, and then tell us what you think! Input opportunities include online input form, e-mail, voicemail, fax, letter, or in person at a public meeting on February 17.

Background
As you know, from time to time fares change—typically upward. No one likes to pay more, but given necessary operating costs and a troubled economy, AC Transit needs to look to fare revenue as an important part of the budget that keeps the buses rolling. Without fare increases, AC Transit would forego millions of dollars of revenue each year—money that could be spent on bus service. Establishing a comprehensive Fare Policy will mean that fares are more logical and equitable, and that fare changes are more rational and predictable.

We’d like to hear your thoughts on the following proposed goals and principles; options for changes to transfer policy and passes; and scenario for the timing and level of fare increases. While AC Transit is almost certain to need fare increases in the next few years, there are many ways to determine and plan for them.

All issues outlined below are open for feedback and suggestions. After staff has reviewed all input, a formal proposal will be prepared for consideration by the Board of Directors, likely on March 9. The Board may then choose to set a public hearing, after which a Fare Policy and near-term fare changes could be adopted.

Proposed Fare Policy goals

• Simplicity. Fares and fare structure should be easy for passengers to use and easy for AC Transit to administer.
• Appropriateness. Fares should provide a good value for passengers.
• Equity. Fares should be fair for all passengers.
• Transparency. Fare policy should result in predictable costs and cost increases for passengers, and predictable revenue increases for AC Transit.
• Policy Supportiveness. Fare policy should support other AC Transit goals—service, land use, and social goals—and comply with regulatory mandates.

Proposed implementation principles for setting fares

• Fares should have a logical relationship to each other in the fare structure:
• All monthly (and 31-day) passes should be priced at the same multiple of the base (cash) fare. The multiple proposed for discussion is 36, which would be less than the current local adult pass (now 40 times the base fare), but more than the current transbay adult, local youth, and local senior/disabled passes (now 33, 15, and 20 times the base fares, respectively). 
• Transbay fares should be twice the local fare (cash and pass).
• Discount fares (youth, senior, and disabled) should be half the adult fare (cash and pass).
• Existing fares that differ greatly from this structure should be adjusted to conform over a multi-year period.
• Fare increases should be implemented on a multi-year schedule adopted in advance.
• Cash fares should have easy coinage, centered around quarters and dimes.
• Because service design relies on transfers, fare instruments should accommodate transferring.
• Youth, senior, and disabled fares should be priced the same.
• If any cash or pass price is held below the level indicated by the fare structure, specific funds for this subsidy should be obtained and identified in the budget.
• In order to speed up boarding, the fare structure and pricing should encourage passengers to choose Clipper over paying with cash.

Options for possible changes to transfer policy

• Should transfers be issued free? or only free on Clipper? Should the cash fare be slightly higher to make up for revenue lost if transfers are free?
• Should transfers cost more? (The 25-cent price hasn’t changed in 18 years.)
• Should transfers be good for more than one use? or more uses only on Clipper?
• Should the valid time period be longer? or shorter? (It’s now two hours.)
• Should there be a “day pass” instead of transfers, as some transit agencies have? (A day pass would be priced at three to four times the cash fare and allow unlimited rides throughout the day. Cash passengers would pay full fare for each ride.)
• Should transfers be eliminated except on Clipper, as some transit agencies have done? (Cash passengers would pay full fare for each ride.)

Options for possible changes to passes

• Should the current 31-day passes be changed to calendar-month passes, as they used to be?
• Should a new 7-day pass also be offered, priced at about 10 times the cash fare? (A 7-day pass could be convenient for those who don’t ride every week and for those who prefer not to pay—or have difficulty paying—the price of a 31-day pass.)

Youth and senior/disabled discount pass pricing
A significant issue under review is the current disparity in pass pricing. The price of the Youth 31-Day Pass was lowered from $27 to $15 in 2002 and has not changed since. The Senior/Disabled Monthly Pass has remained at $20 since 2003. Meanwhile, the Local Adult 31-Day Pass has increased from $50 in 2002 to $80 today. Opinions differ widely on what changes, if any, should be made to the pricing of youth and senior/disabled passes. One proposed scenario would increase prices over an eight-year period, eventually achieving consistency with adult pass pricing.

Frequency and level of fare increases
Finally, the Fare Policy will address the timing and rate of fare increases. One proposed scenario would create a 10-year schedule of increases based on raising the adult local cash fare 25 cents every five years. Increases would occur in Year 1 (10 cents), Year 3 (15 cents), Year 6 (10 cents), and Year 8 (15 cents). Passengers and AC Transit would know what fare increases were coming and when. These cash fare changes would determine and trigger similar changes in all other prices, thus maintaining the established relationship among the different fares.

Please give us your input
Many policy elements, options, and issues are presented here for your consideration. You may have thoughts on some or all of them. You may also want more detail and background, which you’ll find by reading the General Manager’s memo to the Board of Directors.

Then tell us what you think by: 

• Filling out an input form at www.actransit.org/FareInput
• Sending an e-mail to planning@actransit.org
• Sending a fax to (510) 891-4874
• Sending a letter to AC Transit Fare Policy Input, 1600 Franklin Street, Oakland, CA 94612
• Leaving a voicemail at (510) 891-7293
• Attending a public meeting on February 17, 5:00 p.m. – 7:00 p.m., at AC Transit, 1600 Franklin Street (near 17th Street), Oakland*

Please provide your input by Monday, February 28.

*Spanish, Cantonese, Mandarin, and ASL sign language interpreters can be provided at the public meeting, if needed. Please call 891-7293 by Friday, February 11, to make arrangements. For hearing-impaired only, please call TDD/TTY (800) 488-9790. The public meeting site is wheelchair accessible.