File #: 2023-0356    Version: 1
Type: Ordinance Status: Passed
File created: 10/17/2023 In control: Budget and Fiscal Management Committee
On agenda: Final action: 11/28/2023
Enactment date: 12/6/2023 Enactment #: 19698
Title: AN ORDINANCE relating to public transportation, adopting a one-year increase to the limit of lost revenue from waiving or discounting fares; amending Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 and Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 and establishing an effective date.
Sponsors: Joe McDermott
Indexes: Public Transportation
Attachments: 1. Ordinance 19698, 2. 2023-0356 transmittal letter, 3. 2023-0356 2023-2024 Fiscal Note, 4. 2023-0356 Legislative Review Form, 5. 2023-0356_SR_TransitWaiver, 6. 2023-0356_Att4_Metro Matters Article on Waived Fares
Staff: Bourguignon, Mary

Drafter

Clerk 10/10/2023

title

AN ORDINANCE relating to public transportation, adopting a one-year increase to the limit of lost revenue from waiving or discounting fares; amending Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 and Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 and establishing an effective date.

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STATEMENT OF FACTS:

1.  K.C.C. 4A.700.610 authorizes the director of the Metro transit department to waive or discount fare or pass prices for the purpose of attracting new ridership, relieving congestion, developing market strategies, testing prices or experimental service, and implementing special transit programs or promotions.

2.  The annual loss in revenue of all such programs, promotions, and fare discounts is limited to three hundred fifty thousand dollars.

3.  Due to the extraordinary nature of the Major League Baseball All-Star Game and its economic impact and tourism opportunities, the executive announced free Metro transit department fares for the MLB All-Star Game week in July 2023.

4.  With the systemwide fare waivers during the MLB All-Star Game week, the annual loss in revenue for the year 2023 is expected to exceed the current limit.

                     BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:

                     SECTION 1. Findings:

                     A.  The annual loss in revenue for the year 2023 from the systemwide fare waiver during the MLB All-Star Game is estimated at four hundred seventy five thousand dollars.

                     B.  The Metro transit department also plans to continue prior years practice of offering free fares on New Year's Eve, as well as issue limited free ride tickets and promotions that meet the criteria of K.C.C. 4A.700.610.

                     C.  The cumulative amount of fare waivers for the year 2023 is estimated to exceed six hundred thousand dollars.

                     D.  Due to the expected exceeding of the existing cap in 2023, retroactive application of this ordinance is deemed prudent and appropriate.

                     SECTION 2.  Section 3 of this ordinance is retroactive and applies to January 1, 2023, and thereafter.

                     SECTION 3.  Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 are each amended to read as follows:

                     For the purpose of attracting new ridership, relieving congestion, developing market strategies, testing prices or experimental service, and implementing other special transit programs or promotions, the director may waive or discount the fare or pass prices otherwise established in this chapter whenever the waiver or discount is not expected to require the addition of regularly scheduled public transportation services and, in the judgement of the director, the value of the program or promotion and the benefit to the public exceeds the expected loss of revenue.  The loss in revenue of all such programs, promotions and fare discounts shall, in the aggregate be no greater than ((three)) seven hundred ((fifty)) thousand dollars annually.

                     SECTION 4.  Section 5 of this ordinance takes effect January 1, 2024.

                     SECTION 5.  Ordinance 12643, Section 18, as amended, and K.C.C. 4A.700.610 are each amended to read as follows:

                     For the purpose of attracting new ridership, relieving congestion, developing market strategies, testing prices or experimental service, and implementing other special transit programs or promotions, the director may waive or discount the fare or pass prices otherwise established in this chapter whenever the waiver or discount is not expected to require the addition of regularly scheduled public transportation services and, in the judgement of the director, the value of the program or promotion and the benefit to the public exceeds the expected loss of revenue.  The loss in revenue of all such programs,

promotions and fare discounts shall, in the aggregate be no greater than ((seven)) three hundred fifty thousand dollars annually.