Return to SFMTA Board Oct. 19, 2010, agenda

THIS PRINT COVERS CALENDAR ITEM NO. : 12

SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

DIVISION: Finance and Information Technology

BRIEF DESCRIPTION:

Repeal of Translink/Clipper limited use card fee with retroactive effect of October 1, 2010.

SUMMARY:

· In April 2010, as part of the SFMTA FY2011-2012 budget, the SFMTA Board of Directors approved a fee for cash paying customers who purchase a limited use TransLink/Clipper card of $0.25 for FY 2011 and $0.50 for FY 2012.

· The fee was imposed to allow the SFMTA to recoup a portion of the cost of providing the limited use Translink/Clipper card. These limited use Translink/Clipper cards are required given that the new fare gates do not accept cash.

· When the budget was approved in April 2010, these cards cost the SFMTA $0.35/card. Revenue to the SFMTA as a result of the fee was budgeted at approximately $1.4 million for FY 2011, and approximately $2.8 million in FY 2012.

· Currently, limited use Translink/Clipper card costs have been reduced to $0.33/card. The SFMTA has requested that the Metropolitan Transportation Commission (MTC) reimburse the SFMTA for these costs in lieu of imposing this fee.

· Should the request to the MTC be denied, costs to the SFMTA without any offsetting fee revenues would be approximately $2.13 million for FY 2011 and $2.13 million for FY 2012.

· The fee was discontinued on October 1, 2010.

ENCLOSURES:

1. SFMTAB Resolution

2. Appendix A-Transportation Code, Division II Modification

APPROVALS: DATE

DIRECTOR OF DIVISION

PREPARING ITEM ______________________________________ ____________

FINANCE ___________________________________________ ____________

EXECUTIVE DIRECTOR/CEO ____________________________ ____________

SECRETARY ___________________________________________ ____________

ADOPTED RESOLUTION

BE RETURNED TO: Sonali Bose

ASSIGNED SFMTAB CALENDAR DATE: __________________________

PURPOSE

Repeal of the Translink/Clipper limited use card fee with retroactive effect of October 1, 2010, by repealing Section 312 of the Transportation Code, Division II, to eliminate the fee.

GOAL

The retroactive repeal of the fee for the limited use Translink/Clipper card would assist the SFMTA in meeting the following Strategic Goal:

Goal 1: Customer Focus: To provide safe, accessible, clean, environmentally sustainable service and encourage the use of auto-alternative modes through the Transit First Policy.

DESCRIPTION

In April 2010, as part of the SFMTA budget for FY 2011-2012, the SFMTA Board of Directors approved a fee for cash paying customers who purchase a limited use Translink/Clipper card. The fee was imposed to allow the SFMTA to recoup a portion of the cost of the limited use Translink/Clipper card required as the new Muni Metro Station fare gates no longer accept cash as a method of payment for entry into the system.

The fee approved by the SFMTA Board is $0.25 for FY 2011 and $0.50 for FY 2012.

After further consideration, the Executive Director/CEO discontinued imposition of the fee on October 1, 2010.

FUNDING IMPACT

When the budget was approved in April 2010, the limited use cards cost the SFMTA $0.35/card. Revenue to the SFMTA as a result of the fee was budgeted at approximately $1.4 million for FY 2011, and approximately $2.8 million in FY 2012. Currently, limited use Translink/Clipper card costs have fallen to $0.33/card. The SFMTA has requested that the Metropolitan Transportation Commission (MTC) reimburse the SFMTA for these costs in lieu of imposing this fee. Should the request to the MTC be denied, costs to the agency would be $2.13 million for FY 2011 and $2.13 million for FY 2012 without any offsetting fee revenues.

APPROVALS RECEIVED OR STILL REQUIRED

The Planning Department determined that the original fee was statutorily exempt from environmental review under California Public Resources Code section 210080(b)(8) and CEQA implementing guidelines. No further environmental review is required.

The City Attorney’s Office has reviewed the calendar item.

RECOMMENDATION

The SFMTA Executive Director/CEO recommends that the SFMTA Board of Directors repeal the Translink/Clipper limited use card fee with retroactive effect as of October 1, 2010, by repealing Section 312 of the Transportation Code, Division II, to eliminate the fee.

SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

BOARD OF DIRECTORS

RESOLUTION No. ______________

WHEREAS, In April 2010, as part of the SFMTA budget for FY 2011-2012, the SFMTA Board of Directors approved a fee for cash paying customers who purchase a limited use Translink/Clipper card; and,

WHEREAS, The fee was imposed to allow the SFMTA to recoup a portion of the cost of providing the limited use Translink/Clipper card as the new fare gates no longer accepted cash as a method of payment for entry into the system; and,

WHEREAS, The repeal of the fee will result in a loss of revenue to the SFMTA of approximately $2.13 million for FY 2011 and approximately $2.13 million for FY 2012, which the SFMTA hopes to recoup from the Metropolitan Transportation Commission (MTC); now, therefore, be it

RESOLVED, That the San Francisco Municipal Transportation Agency Board of Directors repeals the Translink/Clipper limited use card fee with retroactive effect as of October 1, 2010, by repealing Section 312 of the Transportation Code, Division II, to eliminate the fee.

I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of ___________________________.

______________________________________

Secretary to the Board of Directors

San Francisco Municipal Transportation Agency

Appendix A

[Repealing Section 312 of Division II of the San Francisco Transportation Code.]

Resolution amending Article 300 of the San Francisco Transportation Code, Division II, by repealing Section 312 to eliminate the Translink/Clipper Limited Use Card fee.

NOTE: Additions are [begin addition] single-underline Times New Roman [end addition];

deletions are [begin deletion] ~~strike-through Times New Roman~~. [end deletion]

The Municipal Transportation Agency Board of Directors of the City and County of San Francisco enacts the following regulations:

Section 1. Article 300 of Division II of the Transportation Code is hereby amended by repealing Section 312 in its entirety.

APPROVED AS TO FORM:

DENNIS J. HERRERA, City Attorney

By:

JOHN I. KENNEDY

Deputy City Attorney

I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of .

Secretary to the Board of Directors

San Francisco Municipal Transportation Agency

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