Tuesday, July 27, 2010

Required Hearings Not Held Prior to Fuel Surcharge Fare Increase (August 2010)

The Utah Transit Authority, by law, and being a Government agency funded by State and Federal dollars, as well as sales taxes, and other governmental assistance, is required to hold public hearings prior to enacting any fare increase, or series of increases, even if a previous increase was rescinded.

In 2008, hearings were held prior to the last fuel surcharge increase, and the increase has since been rescinded. That means it is now required for UTA to hold hearings prior to any future fuel surcharge increase series.

A series is defined as any sequence of fare increases that is proposed at once, and enacted over a period of months or years, and this is done primarily for strategic planning purposes, however, if an increase is later rescinded after being enacted, that resets everything.

In very late June of this year, 2010, it was announced there would have to be another fuel surcharge due to diesel rising above $3 a gallon, and UTA claims it lost $1 million on fuel costs (so what became of that $2 million travel slush fund? They should have used that for this.

Therefore, it is required that before UTA collects one fare next Sunday, they must either hold a well-publicized series of hearings, or hold back on the increase until they do. While I personally understand the needs for a fare increase, the agency's honesty and integrity are at stake here.

And furthermore, documentation rules and public access laws require hearings. The documentation rules are set by ISO 9001, and that has not been followed yet due to the lack of public hearings in all divisions, not just the board meeting in the Meadowbrook offices.