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HomeMy WebLinkAboutAgenda 12-09-2025; 6-b - One-Year Pilot Implementation of Fare-Free Fixed Route Transportation Service 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 9, 2025 Action Agenda Item No. 6-b SUBJECT: One-Year Pilot Implementation of Fare-Free Fixed Route Transportation Service DEPARTMENT: Transportation Services ATTACHMENT(S): INFORMATION CONTACT: 1. Fee Schedule Revisions Sarah Williamson, Interim Transportation 2. PowerPoint Presentation Director, 919-245-2102 PURPOSE: To approve fee changes to implement a one-year pilot program making Orange County Public Transportation (OCPT) fixed routes fare-free. BACKGROUND: Orange County Public Transportation (OCPT) operates fixed-route transit services that connect thousands of residents to key destinations in the community each year. Currently, riders who do not qualify for a reduced or fare-free program pay a nominal fare to use the service. The Transportation Services Department proposes a one-year pilot project implementing a fare-free fixed-route model effective January 2, 2026 to assess the benefits to public transit efficiency and accessibility countywide. National and regional transit data show that fare-free systems result in increased ridership, attracting new passengers while enabling existing riders to travel more frequently. Agencies that have implemented fare-free fixed routes have reported ridership growth of up to 30%, particularly among low-income residents who are the most sensitive to cost barriers. By removing fares as a one-year pilot program, OCPT can assess the financial obstacles to mobility and potential benefits related to access to employment, education, medical care, and essential services across Orange County. In addition to potentially expanding public access, a one-year pilot of fare-free fixed routes offers significant operational benefits. • Eliminating fare transactions streamlines the boarding process, improving stop efficiency and reducing delays that impact schedule reliability. • Removes the need for staff to verify eligibility for reduced or fare-free programs on fixed routes, allowing transit personnel to focus solely on safety and service delivery. • OCPT would eliminate the costs for one year associated with purchasing, maintaining, and servicing fare collection equipment, reducing long-term operational and capital expenses. The one-year pilot fare-free fixed-route system positions OCPT to assess service to the community, invest in service quality, and assess barriers to transportation. This initiative represents a possible strategic opportunity to increase ridership, enhance operational efficiency, and strengthen transit equity for all Orange County residents. 2 Staff will assess the impacts over the one-year period, and present findings to the Board in November 2026 related to potential continuation or discontinuance of the fare-free fixed-route system. FINANCIAL IMPACT: Approval would amend the fee schedule to remove the Orange County Public Transportation Public Shuttle fees for one year. The department would make changes within its operating budget and removing fares will not increase the County cost of operating the fixed routes. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 2. Expand access to quality, affordable healthcare services. (e.g., Crisis Diversion facility, Medicaid expansion, crisis response, healthy living campaign). OBJECTIVE 7. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) • GOAL 4: MULTI-MODAL TRANSPORTATION OBJECTIVE 2. Increase community awareness of all modes of transportation including transit, bike and pedestrian, vehicle, and all other modes. OBJECTIVE 3. Support road projects that address congestion and reduce commute time using the County' s Complete Streets policy. OBJECTIVE 4. Coordinate transit investments with municipal and county land use planning to reduce vehicle miles travelled and to provide more equitable access to shopping, employment, medical centers, college campuses, etc. OBJECTIVE 6. Update transportation related plans to provide more multi- modal options including rural Orange County. • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 2. Review and revise County policies and regulations to support business investment in Orange County. OBJECTIVE 5. Increase access to and awareness of resources and assistance available to residents and businesses. RECOMMENDATION(S): The Manager recommends that the Board approve the fee changes and the implementation of a one-year pilot program for fare free fixed-route transportation service effective January 2, 2026. Attachment 1. Transportation Services Department Fee Schedule Revisions 3 Orange County Transportation Services Department Fee Type Current Fee Amended Fee Last Notes Update Public Shuttle /Fixed Route Buses $2.00 per one-way trip in-town $0.00 2005 $1.00 per one-way trip for the elderly or disabled$0.00 2005 7 _ r.", arek ' p Service i d.k i; 5 r - t Fare Free h Fixed Route Service LLf9 Orange and Blue Loops: currently free Hill-to-Hill and Orange Alamance: Currently $1 for elderly or disabled Currently $2 for all other riders ` 4 4 'fi 1 6 1 s N �I Save Time , Save Money - Simplified Boarding No Need to Qualify Riders Eliminates Fee Collection Equipment 7 Net Positive Impact zr w Z, Annual Expenses Current Fare Free Operati - Operating Contract $11,160 $0 ~ Contract ended 6/2025 Service Fees $25,800 $0 Equipment $6,000 $0 Upgrade every 3-5 years Fa res - $10,000 $0 Total $32,960 $0