Agenda - 09-01-2015 - 6n - Laserfiche WebLink

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2 The Transportation Services Board (TSB), which is a State-required subset of the OUTBoard specifically for transit purposes, considered the proposed fare structure at its August 19, 2015 meeting. Initially the fare structure contained a fare increase to passengers 60 years of age or older from $0 to $1, for which the TSB held a public hearing to accept any public comments. No public comments were provided or received at the public hearing. One comment was received via email. The TSB subsequently took action to recommend to the BOCC not to raise the fare for these passengers and to reduce the fare to persons with disabilities from $1 to free. Because the proposed fare structure no longer involves a fare increase, a public hearing for adoption of the fare structure is not required. However, should the BOCC choose to consider an increase in fixed-route fares to any individual, such an increase will require a public hearing. Comparison to Other Agencies'Fare Structures A table summarizing the fixed-route fare structures of other transit agencies in the Triangle region is provided in Attachment 2. Compared to other agencies' local fixed-route services, which are services with many stops focused on connecting neighborhoods, the proposed general public fares for OPT are somewhat higher. However, fares charged to seniors, persons with disabilities, and those presenting a Medicare card are generally lower. Compared to other agencies' regional fixed-route services, which are services focused on connecting disparate communities to major common destinations, the proposed fares for OPT are somewhat lower. The only fixed-route service currently in existence or proposed to be provided by OPT that is truly local in nature is the Hillsborough Circulator service, which has always been free and will remain free to all passengers consistent with other circulator services provided by other agencies in the Triangle region (i.e., GoDurham's Bull City Connector and GoRaleigh's R-Line). The remaining fixed-route services currently provided or that will be provided by OPT are more regional in nature, covering much more mileage between stops and per unit time of travel (i.e., Orange-Chapel Hill Connector, Orange-Alamance Connector, Efland-Hillsborough Commuter Loop, and rural deviated fixed routes). Federal Transit Administration/NCDOT Process Requirements Although OPT is not yet a direct recipient of Federal Transit Administration (FTA) Section 5307 Urbanized Area formula grants, OPT is in the process of positioning itself to receive this funding in the near future. OPT is also currently a sub-recipient of Federal Section 5311 funding for non- urbanized area use that is passed through to the County by the State. Consequently, OPT is subject to certain administration and management requirements of each grant program. As part of its Section 5307 program management and administration requirements, the FTA also requires recipients' fare structures to address fares charged to seniors and persons with disabilities during nonpeak hours in a specific way. Fares charged to seniors, individuals with disabilities, or individuals presenting a Medicare card may be charged no more than 50 percent of the peak period fare. Because the proposed peak period general public fare is $2 and the nonpeak fares for these individuals is recommended to be free, the proposed fare structure is in compliance with FTA requirements. FINANCIAL IMPACT: The financial solvency of the bus service expansion program approved/adopted by the BOCC in 2014 assumed the collection of fares in accordance with the proposed fare structure with some additional very conservative assumptions related to ridership. These assumptions were ultimately used to estimate the total amount anticipated to be collected in fares per year, and this expected farebox recovery revenue was included in the FY 2016 Orange County operating budget for OPT. Although not likely to have a major impact in one direction or the other, any changes to the fare structure will change the amount of expected