SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute an Interlocal Agreement with the University of Texas at Austin to subsidize annual passes on CapMetro Bikeshare for staff and students at a reimbursement rate to CapMetro of $45.00 per student and $90.00 per staff member, with up to three (3) optional one-year extension periods.
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FISCAL IMPACT:
Refer to business case and executive summary for clarification.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☐ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: This revenue-generating agreement establishes a cost-sharing arrangement to expand bikeshare access. It strengthens a longstanding partnership with the University of Texas at Austin, improves campus mobility, addresses parking demand, and increases bikeshare ridership.
BUSINESS CASE: Earlier this year CapMetro adjusted bikeshare fares for students and staff, which increased the cost of annual passes. CapMetro offers a 50% discount on annual bikeshare passes for currently enrolled students over 18. To reduce the financial impact of this fare change, the University of Texas (UT) at Austin Parking and Transportation Services department agreed to provide a direct subsidy for UT students and staff. Under the agreement, UT will reimburse CapMetro $45.00 per student pass and $90.00 per staff pass annually. Under this agreement UT students will pay $30 for an annual pass, and UT staff will pay $60. Subsidy payments under this ILA are estimated to generate approximately $75,000 in annual revenue based on historic participation.
COMMITTEE RECOMMENDATION: The item was presented and recommended for approval by the Finance, Audit and Administration Committee on October 8, 2025.
EXECUTIVE SUMMARY: CapMetro and the University of Texas at Austin have partnered since 1989 to provide transportation services for the benefit of the University and the Austin community. Under this agreement, UT will reimburse CapMetro $45.00 per student and $90.00 per staff member for bikeshare annual passes. The agreement has an initial one-year term beginning August 1, 2025, with up to three optional one-year extensions.
The subsidy amount is funded by UT Parking and Transportation Services as part of its broader strategy to manage parking demand and promote sustainable transportation options. This agreement expands access to bikeshare for UT students and staff and generates new revenue for CapMetro while supporting ridership growth in one of our system’s highest demand service areas.
SBE PARTICIPATION: Does not apply
PROCUREMENT: Does not apply
RESPONSIBLE DEPARTMENT: Finance
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1619
WHEREAS, since 1989 CapMetro and the University of Texas at Austin have partnered to provide transportation services benefiting both the University and the community; and
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and management recognize the benefit of discounted bikeshare passes for students and staff to support CapMetro’s mission of promoting public transportation and reducing single-occupancy vehicle use.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute an Interlocal Agreement with the University of Texas at Austin to subsidize annual passes on CapMetro Bikeshare for staff and students at a reimbursement rate to CapMetro of $45.00 per student and $90.00 per staff member, with up to three (3) optional one-year extension periods.
____________________ Date: ____________________
Secretary of the Board
Becki Ross