So, it would be this retroactivity would take place six months after the fare increase that this would compare to. Thanks. I dont get why we do this, but lets keep going. Okay. Mr. Lee, can i say mr. Rifkin pointed out that 2020 for the feeder agreement, the Contract Expense of that, this one would extend only to 2014 because were trying to maximize our ability to negotiate after the bart boards fare policy increase. And this allows us to negotiate to our own interests for the mta and the city by having this contract only go to 2014 . Well, i think the idea behind going to 2014 was we wanted to wait and see what the bart board fare policy would be. My understanding from barts staff, conversation, is they are proposing a fare policy thats similar to what or consistent with whats currently there today. So, that was the idea behind having it expire in 2014. So, what would happen if we equalized both contracts to 2014 or 2020, whats in our best interest as the mta or the city . Certainly t
Agreement gave about a 32 discount, the reimbursement rate was probably 32 less than the price of the full fare ticket. And per the bart board fare policy which has been in place over 10 years at this point, the bart board regularly increases fares every two years at a rate consistent with cpi less half a percent for productivity improvements. With this fare policy in place over the last decade, there has been there have been occasions when the fare has actually increased faster than the rate of inflation. For example, as identified by the budget and legislative analyst in 2011, fares from 2006 to 2011 increased at a cumulative 40 rate or 7 annualized rate. The contract for the fast pass is currently at current reimbursement rate is worth 7. 9 million. And for the proposed rate increase, it would be 9. 2 million. So, quick question for you. Why are we allowing this rate to increase like this . Well, so, so this dollar. 19 was based on having that fixed discount of 32 . The bart fare we
10 , but not on the total amount. So, for example, if the fares were to increase 10 in rider ship growth were to be 5 , then the total amount increase would be 15. 5 . And then the future reimbursement rates would be tied to the percentage of growth in bart fareses similar to the way its been historically structured. Those were the terms of the past agreement. Thank you. And then the mta has already budgeted to provide a retroactive payment for these agreements . Yes. The agreement . That is my understanding that is correct, yes. Thank you. Thank you, supervisor avalos. We have been joined by our colleagues, supervisor campos. Supervisor campos. Thank you very much, mr. Chairman. I was watching the hearing and appreciate the work that was done by the mta, by bart, and i also appreciate some of the questions actually, all of the questions that were asked by my colleagues. And i know that this has been something that we have been working on for quite sometime. And you know, as i said whe
Barts fare increases ostensibly represent the cost of bart providing the service. So, as barts costs go up, i dont think its unreasonable that that cost may go up. Its true, we dont control barts fare increase, but i think its also fair to say that barts not making its fare policy decisions based on, you know, what its going to get out of this agreement. I know you werent suggesting this, butedth fact that we dont control it i guess my point is i dont think is inherently a bad thing. And then finally, the final point on the cap, i said before supervisor campos arrived, we in bart are willing to accept the budget analyst recommendation to bring that cap down to be closer aligned for the two years that the agreement is in place. If we extend it, we would come back with perhaps an adjusted cap. So, mr. Rifkin, supervisor campos, sorry, do you have any followup . No, go ahead. So, a few comments on that. One, in terms of our payment to bart is based upon their fare increases. Their pitv to
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