COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

June 20, 2002

BOARD MEETING DATE:

July 9, 2002

 

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Approval of an Increase in the Subsidies for the Commute Alternatives Program

 

Recommendation

Adopt a resolution approving an increase in the subsidy for transit tickets from $65 per month to $75 per month.

 

Previous Board Action

Established the Commute Alternatives Program in 1992 and authorized a subsidy of $20 per month for County employees who purchase transit tickets through the County's centralized program.

 

Approved subsequent resolutions in 1995 and 2001 which increased the subsidy to $65 and expanded the program to include a $20 per month subsidy for County employees who walk, bike, carpool, or vanpool to and from work.

 

Key Facts

a)

On July 1, 2002, the fares for Caltrain increased ten percent (10%); on September 1, 2002, the fares for SamTrans will increase approximately six percent (6%); and BART is experiencing budget problems and is expected to announce fare increases shortly.

 

b)

Effective January 2002, State and Federal tax laws allow employers to provide transit pass and other commute alternative subsidies up to $100 per month as a tax free incentive to encourage employees to take transit to and from work.

 

Discussion

Your Board approved the transit subsidy program in 1992 in recognition that providing incentives for employees to use public transit and other means that reduce the number of single occupant vehicles on the road, could have a major impact on roadway congestion and air pollution. This program has been highly successful growing from approximately 300 participants in the first year of operation to over 1,100 currently.

 

We conducted a survey as part of the development of the 2001-02 budget to determine what steps could be taken to further increase program participation. The number one recommendation was to increase the financial incentives in order to offset the increases in transit fares and the cost of operating car and vanpools. The Countywide Transportation Plan recently adopted by the City/County Association of Governments also cites financial incentives and disincentives as the number one factor in changing the commute methods for most workers.

 

We are recommending a $10 increase in the transit ticket subsidy at this time in recognition of the increases in fares by the transit providers. We are also evaluating our pilot east bay shuttle service and the vanpool program and will be making recommendations to your Board on these programs in separate reports.

 

Vision Alignment

We believe this recommendation is consistent with the Shared Commitment to "redesign our urban environment to increase vitality, expand variety, and reduce congestion," and Goal Number 10, "residents have public transportation choices that are convenient, affordable, accessible and safe," as this increase in the County's Commute Alternatives Program will hopefully result in an increase in the percent of County employees using alternative commute modes.

 

Fiscal Impact

The increase in subsidy is anticipated to cost approximately $40,000 annually. This amount was included in the Public Works budget proposed for 2002-03, and is proposed to be paid for with Half Cent Transportation Funds.

 

There will be no impact on the General Fund.

 

A form of the resolution has been approved by County Counsel.