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<br />service from Elk River. He recommended the City of Ramsey choose a fare rate of $4.50, rather <br />than $2.75 as the Council previously discussed. Mr. Harper explained the fare collection <br />consists of two components; one is the fare box. The second item, which is currently in the test <br />phase and will hopefully soon be implemented, is a smart card system called the Go To System. <br />These components currently operate independently from each other. The fare box system that is <br />currently in place within the region operates with software that was created about ten years ago, <br />and is limited in its ability to charge multiple fares. Mr. Harper explained the fare system is a <br />complex system. It is possible to create a fare and essential programming specific to this route, <br />but it would severely limit how this route interacts for riders that are connecting to other routes <br />within the region. <br /> <br />Mr. Harper provided an overview of how fares are determined within the region and how often <br />the fares are changed. He explained the fare structure within the region, aside from Route 88 and <br />the route being discussed today, is determined by a committee of regional transit providers that is <br />overseen by the Metropolitan Council within his division. The fares have been changed three <br />times in the past four years due to budget shortfalls; these fare increases are determined based on <br />modeling. Fares are increased on a regional basis, and hopefully will not be increased soon. <br /> <br />Mayor Gamec inquired about the Northstar fare out of Elk River. <br /> <br />Mr. Jon Olson, Anoka County, explained the Northstar service out of Elk River followed the <br />basic Metropolitan Council fare for peak service with the last fare increase. In addition, the <br />Northstar fare includes a surcharge. Last June a significant increase was made in that surcharge <br />to the $4.50 fare due to the amount of subsidy that was being put in. This was an NCDA action, <br />not a Metropolitan Council action; a combination of the two bodies set the Elk River Northstar <br />fares. <br /> <br />Councilmember Elvig noted it sounds as though the Ramsey Star Express fare needs to be set at <br />$4.50 or $2.75 to make it simple enough to attract riders. He stated Ramsey is interested in <br />boosting ridership. At the last meeting the Council reviewed the pro forma based on the $4.50 <br />fare, which showed extra dollars that could be put into things such as parking ramp maintenance. <br />He would prefer the lower rate with higher ridership, but would like to review the numbers. He <br />questioned if Ramsey will be creating a border battle with Elk River by setting a lower fare. <br /> <br />Mr. Olson stated Northstar is extremely concerned about Ramsey having a $2.75 fare versus the <br />Elk River $4.50 fare. It is likely that even with the $4.50 fare Ramsey will pull a number of the <br />Elk River passengers away; however, this will allow Elk River the capacity to attract new riders. <br />Regarding the perception of making money for parking ramp maintenance, it is likely that <br />Ramsey will be putting money into the service for the first couple of years. He stated the bottom <br />line is the number of people that can get downtown on the bus. The cost per passenger and the <br />fare that is charged is a fine line to determine. He advised the Council should keep in mind if the <br />Ramsey fare is started at $2.75 and they run into problems they will have a hard time increasing <br />the fare. <br /> <br />City Council Work Session / November 14, 2006 <br />Page 2 of 5 <br />