(1) Promotional purposes for a period not exceeding one week; provided that any such suspension of the fare structure or fare, or both, shall not decrease the total average monthly fare collection of the city bus system, the city ferry system, or the special transit service, as appropriate, when full fares are collected, by more than 5 percent; and provided further, that such suspension shall be for the purposes of promoting any one or more of the following: the public ridership of the city bus system or the city ferry system or ridership of the city’s special transit service by eligible persons;
If a private organization requests, pursuant to this subdivision, that the department suspend any one or more of the following: bus fares or ferry fares or the special transit fare to promote any one or more of the following: the city’s transit bus or city ferry or special transit service as part of that organization’s function or event, the organization shall submit a request in writing to the department for the suspension of the fares. In its written request, the organization shall:
(A) Provide proof that it is a nonprofit organization exempt or qualified for an exemption from federal income tax under § 501(c)(3) of the United States Internal Revenue Code;
(B) Submit a current audited financial statement of its organization and, if the organization was required to file a federal income tax return for that year, to submit its federal income tax return for the year before the submittal of the request;
(C) Submit a statement describing the scope of its events and activities, and copies of all of the required approvals and permits that the organization must obtain to hold the function or event;
(D) Demonstrate the community benefits the city will gain from the promotion; and
(E) Demonstrate that a minimum of 30,000 persons will participate over a 24-hour period in the events and activities related to the organization’s function or event;
(2) Demonstration projects for a period not exceeding 180 days; provided that such suspension of any one or more of the following: the fare structure, the special transit service fares, the supplemental bus service fares, or the supplemental special transit service fares shall be for the purpose of demonstrating the need for bus services, ferry services, or special transit service, the economic viability of the demonstration projects, and operational efficiencies of the city’s bus system or the city’s ferry system or the city’s special transit service; and provided further, that a minimum of 50 percent of the promotional, marketing, and operating cost of such demonstration project shall be funded from private sector sources other than the city. The private sector sources shall make a commitment to the city before the approval of the demonstration project that they will fund their share of the costs of the demonstration project;
Organizations that are eligible to request a demonstration project involving the suspension of fares include the department, other government agencies, private firms, business organizations, community groups, or any combination of the foregoing organizations. Organizations shall submit in writing a request to the department that a demonstration project be conducted. In its request, the organization shall demonstrate the community benefits, such as increased mobility, stimulation of the economy, and improved convenience to any one or more of the following: bus riders, ferry riders, or special transit service riders, that will be gained as a result of the demonstration project; and
(3) Demonstration projects for a period not exceeding 365 days to begin July 1 of the year the resolution is adopted by the council; provided that such suspension of the fare structure, the special transit service fares, the supplemental bus service fares, or the supplemental special transit fares shall be for the purpose of demonstrating the impact of bus services, ferry services, or special transit service on traffic congestion, the fiscal viability of the demonstration projects, or the impact of fare suspensions on operational efficiencies of the city’s bus system, the city’s ferry system, or the city’s special transit service; and provided further, that the council shall adopt the resolution concurrently with final passage of the budget ordinances.
(b) The department shall transmit to the council in writing its recommendation to approve or disapprove any proposal submitted to the department to conduct a promotional or demonstration project pursuant to this section. With its written recommendation, the department shall submit the reason or reasons for the department’s recommendation.
If the department recommends approval of the promotional or demonstration project, the department shall also submit a draft council resolution providing for the suspension of the fares. Included in the draft resolution shall be the specific criteria that the department will use to evaluate the success or failure of the promotional or demonstration project. If the promotional or demonstration project involves the city bus system or the city ferry system, or both, the department shall transmit with its recommendation a map of the bus route or ferry route or routes that city buses or the city ferry, or both, will follow during the promotional or demonstration project. If the bus or the ferry route or routes to be followed during the promotional or demonstration project is or are proposed to be changed, the department shall submit to the council, at least seven days before the implementation of the new route or routes, a revised map of the new route or routes to be followed.
(c) Within 60 days of the completion of the promotional or demonstration project, the department shall submit a report in writing to the council. In the report, the department shall at a minimum:
(1) Discuss the community benefits, if any, gained from the project, including an estimate, where possible, of the number of new daily riders of the city bus system or city ferry system, or of new special transit service riders resulting from the project;
(2) Include data on the number of riders using city transit buses or city ferries, or special transit service vehicles during and as part of the promotional or demonstration project and the cost to the city of the project;
(3) Evaluate the overall success or failure of the project based on whether the project met the specific criteria set forth in the council resolution approving the project, which may include criteria specified by the council; and
(4) Make recommendations on any future actions on similar requests to conduct promotional or demonstration projects.
(d) The private contractor providing city transit bus services, city ferry services, special transit services, supplemental bus services, or supplemental special transit services shall provide ridership data to assist the department in evaluating the success or failure of the promotional and demonstration projects approved in accordance with this section.
(Sec. 28-2.6, R.O. 1978 (1983 Ed.)) (1990 Code, Ch. 13, Art. 2, § 13-2.6) (Am. Ords. 91-27, 96-11, 97-02, 01-62, 07-13, 08-4, 08-20)