Agenda - Council - 02/26/2008 - Laserfiche WebLink

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$2.75 and $4.50 per ride at this time. In addition, many employers purchase a 31 Day `Metro Pass' for their employees with the fare being based on $2.75 per ride. The rider must make up the remaining $1.75 using cash only. Currently, Metro Transit fare boxes only allow for use of one (1) electronic payment per fare. If the rider wishes to pay the entire fare electronically, the rider must use either a Stored Value Super Saver Card or the Go -To Card (Metro Transit's newest fare option). Unfortunately, many employers still prefer to purchase the 31 Day Metro Pass. Approximately 20% of Ramsey Star Express riders continue to use that option with the additional $1.75 paid in cash. It is also important to note that the cash fare boxes do not return change. Staff firmly believes that an increase in ridership numbers will further substantiate the need and benefit of a rail station on the Northstar Commuter Rail. Staff also believes that the timing of reducing the fare to increase ridership is important now with the start of the Northstar Commuter Rail service in late 2009. Upon start up of the Northstar Commuter Rail, the Ramsey Star Express is proposed to stop service. Staff is working with Anoka County Transit to determine when the reduction in fare could become effective. Funding Source: Funding for operation of the Ramsey Star Express comes from three places: 1) an 80/20 Congestion Mitigation Air Quality (CMAQ) grant through the Federal Transportation Administration (FTA); 2) ridership fares; and 3) the 20% match required from the City for the FTA grant. With the acceptance of the grant and the commencement of the service, Council allocated $310,000 from the Landfill Trust Fund to provide the 20 % match for the program. The reduction in fare will result in a temporary increase in City match for the service. However, with increased ridership, it is anticipated that the City's match will be reduced. The City's match over the three -year service period is estimated to stay well within the $310,000 allocation. Staff has prepared a fiscal analysis of the cost of the service from its commencement through December 2009; two spreadsheets are enclosed in Council's packet. One spreadsheet depicts the costs of the program with the fare change to $2.75 in March 2008 and the other depicts no change to the fare through December 2008. It is important to note that in the analysis, the assumption is being made that ridership will increase with a reduction in fare. If ridership is not realized at the levels predicted, the city's cost of the service will increase. Staff is prepared to discuss the analysis in detail and the assumptions made to determine the costs of the service over time. Staff Recommendation: Staff is recommending that the fare for the Ramsey Star Express be reduced from $4.50 to $2.75 effective as soon as practicable in cooperation with Anoka County Transportation Management Organization (TMO). Council Action: Motion to approve Resolution 408- 02 -xxx $2.75 per ride effective immediately. authorizing the reduction of Ramsey Star Express fares to -or- Motion to deny Resolution #08- 02 -xxx. Reviewed by: City Administrator: Assistant City Administrator Public Works Director CC: 2/26/2008 —152—