FARE ANALYSIS UPDATE DECEMBER 2017

Presentation Contents 1. Existing Fare Structure Fare Model Fare Structure Opportunities and Alternatives 2. 3.

EXISTING FARE STRUCTURE

GMT Fare Structure Non-Discounted Adult Fares Single-Fare 10-Ride Pass Monthly Pass Chittenden County $1.25 $2.00 $12.00 $20.00 $50.00 $75.00 Franklin/Grand Isle $0.50 $1.00 $0.50 $4.50 $8.00 $16.50 $33.50 Mad River Valley Free Free Free Free Free Free Lamoille County $1.00 $2.00 $9.00 $16.00 $33.00 $67.00 Capital District $1.00 $2.00 $1.00 $9.00 $16.00 $33.00 $67.00 Local Routes Commuter Routes Commuter Routes only within towns

GMT Fare Structure Discounted Fares Single-Fare 10-Ride Pass Monthly Pass Chittenden County $0.60 n/a $6.00 n/a $25.00 n/a Franklin/Grand Isle $0.25 $0.50 $0.25 $2.25 n/a $8.25 n/a Mad River Valley Free Free Free Free Free Free Lamoille County $0.50 $1.00 $4.50 n/a $15.00 n/a Capital District $0.50 $1.00 $0.50 $4.50 n/a $15.00 n/a Local Routes Commuter Routes Commuter Routes only within towns

GMT Fare Structure New England Peer Comparison Local Service Express Service Green Mountain Transit $0.50 - $1.25 $0.25 - $0.60 $1.00 - $4.00 $0.50 - $2.00 Brunswick Explorer, ME $1.00 $0.60 -- -- Portland Metro, ME $1.50 $0.75 $3.00 $1.50 TriCounty Transit, NH $2.00 - $3.00 $1.00 - $1.50 -- -- Manchester Transit, NH $2.00 $1.00 $5.00 $2.50 RIPTA, RI $2.00 $0.00 $2.00 $0.00 Southeast Area Transit District, CT $2.00 $1.00 -- -- Adult Single-Ride Cash Fare Seniors Single-Ride Cash Fare

FARE MODEL

Fare Model Structure 1. 2. 3. 4. Data Inputs Elasticity Application Current ridership volumes by route and corresponding non-discounted, single-ride fares were used to determine existing system-wide annual ridership and annual revenue. Fare Elasticity as it relates to transit demand was applied in two different examples. Example 1 featured low elasticity. Example 2 featured higher elasticity. Elasticity was treated as uniform across service type. 3. New Fare Structure 4. Data Outputs New fares we applied to both model examples in which fares varied by type of service rather than service area. 5 different fare scenarios were tested. Elasticities were applied across the entire system to each route based on fare and service type. This rendered new ridership for weekdays, Saturdays, and Sundays. These were summed to reveal new annual ridership and annual revenue.

Fare Model Elasticities Price Sensitivity Low Elasticity High Elasticity Shuttle -0.20 -0.35 Rural Local -0.25 -0.40 Urban Local -0.30 -0.45 Major Local -0.28 -0.43 Seasonal Local -- -- Commuter -0.35 -0.50 Express -0.32 -0.47 Interpreting Elasticities: A 10% increase in Commuter service fare would result in a 3.0% decrease in transit patronage under the Low Elasticity condition and a 4.5% decrease under the High Elasticity condition.

Fare Model Scenarios Scenario Elements Urban Local Rural Local Seasonal LINK Express Non-LINK Commuter Existing $1.25 $1.00 Free $4.00 $2.00 Scenario A $1.00 $1.00 Free $3.00 $2.00 Scenario B $1.25 Free Free $4.00 $2.00 Scenario C $1.50 $1.00 Free $4.00 $2.00 Scenario D $2.00 $1.50 Free $4.00 $3.00 Scenario E TBD TBD Free TBD TBD

Preliminary Results Scenario Existing 3.0 m $3.9 m Ridership Revenue Existing 3.0 m $3.9 m Scenario A ($1 local; $2-3 express) +4 to 7% -11 to 13% Scenario B (free rural local) TBD -3% Scenario C ($1.50 urban local) -4 to 6% +7 to 9% Scenario D ($1.50-2 local; $3-4 express) -11-15% +7 to 30% Scenario E (NE average) -TBD TBD

Fare Free Scenario US Cities that Offer Fare-free Service at Least in Part Measured Results of Going Fare-free Boone, NC Cache Valley, UT Canby, OR Commerce, CA Coral Gables, FL Emeryville, CA Island County, WA Ketchum, ID Lebanon, NH Corvallis, OR Macomb, IL Marion, IN Missoula, MT Sandy, OR Starkville, MS Vero Beach, FL Wilsonville, OR Corvallis, OR saw a 38% increase in ridership within a year of going fare-free TriMet in Portland, OR saw a 25% increase in peak-period ridership and a 60% increase in off-peak ridership within 34 months of going fare-free* Seattle, WA’s CBD saw an increase in ridership of 199% during their trial period of fare-free zones throughout their service area. *TriMet no longer runs fare-free service