Outreach and Engagement Inter-Agency Fare Coordination and Joint Implementation: How to be Successful Mary Kate Morookian Cristina Barone

Regional Fare Study Fare Study Background & Getting Stakeholder Buy-In HIGHLIGHTS Regional Fare Study Fare Study Background & Getting Stakeholder Buy-In Existing Conditions Peer Review and Best Practices Three main takeaways from this presentation will include: How to achieve successful inter-agency coordination while also achieving respective goals of the different agencies, including how the process was structured to bring everyone to the table. Fare integration methodology/analysis, including projecting ridership, anticipated revenue gains and losses, peer and analysis The process to ensure joint approval of a fare change—including aligning schedules, outreach, approvals, etc.—and the coordinated effort to upgrade fare technology Final Recommendations Approvals & Implementation

Regional Fare Study BACKGROUND A regional rare study was conducted for four transit agencies operating in North Carolina – GoCary, GoDurham, GoTriangle, and GoRaleigh. The agencies are different – different customer base, local vs. regional services, varying system size—but all have similar goals of attracting and maintaining transit riders, operate within the same region of NC, and provide connections to the other systems.

CHALLENGES AND OPPORTUNITIES Regional Fare Study Opportunities Challenges Partner agencies already gathered for another collaborative process Funding source for improvements A chance to improve inter-agency relationships Improving regional coordination surrounding customer experience Different agencies (and personalities) trying to identify and work towards a unified goal Finding time to meet Staying mindful of different approval schedules Knowing when to compromise

BACKGROUND – GETTING EVERYONE TO THE TABLE Regional Fare Study 2016 2018 2017 Voters approve half-cent sales tax for transit Casually mention fare policy, create a Fare Work Group, and schedule extra meetings 2017 This will shock everyone, but most people think fare policy is not interesting or cool and don’t particularly want to go to a bunch of meetings to talk about it. HOWEVER, if you already have people sitting around talking about transit service networks and when their agencies will get money for improvements, you can trick them into also talking about fare pricing, policy, and technology. In 2016 voters approved a half-cent sales tax referendum to fund transit improvements in Wake County. GoRaleigh, GoCary, and GoTriangle were involved in a planning effort to identify ways to spend those new tax dollars – the 10 Year Bus Plan. The Fare study was a subtask of that plan. Money is also available through the Wake transit plan for fare technology improvements. The Fare Work Group was established with key participants from each agency – data specialists, fare program coordinators, transit planners, and anyone responsible for reporting on farebox recovery/pass usage attended the monthly meetings.

Regional Fare Study Study Priorities for Each Agency BACKGROUND – KEEPING EVERYONE AT THE TABLE Regional Fare Study Increase farebox recovery Increase revenue Study Priorities for Each Agency Seamless transfers Better data reporting More free categories Fare Free Transit One pass for all agencies Working with several agencies is tricky for a few reasons—a big one being that’s important to not make stakeholders feel lumped-together while also working to establish a singular goal. After the study kickoff meeting where the Fare Work group talked about the purpose of the study, individual interviews were conducted with each agency to hear their top priorities, revenue/ridership goals, and biggest concerns going into the study. The interviews were very helpful in making the agencies feel invested and reassured that they would not be asked to adopt a policy that was not in their personal best interests. This was very NOT helpful in narrowing the study focus. As you can see, the interviews resulted in quiet a few “top priorities.” Some directly contradicting eachother. Sooooo…what now? Agencies maintain autonomy Sell passes at more locations Low-income fares Increase ridership Better technology Increase fares

Regional Fare Study GOALS Improve Passenger Experience Improve Regional Coordination Balance Revenue and Ridership Goals Improve Pass Distribution & Sales Make Transit An Affordable Option Explore New Fare Technologies The interview results were grouped into categories and brought back to the group to discuss and help narrow the focus of the study. After some lively discussion, the group agreed on these six goals.

Existing Conditions FARE PRICING STRUCTURE The fare study took a detailed at each system – pricing structure, fare policies, pass usage, farebox recovery, etc. This is the fare structure of each agency during the Fare study. A few issues were obvious right off the bat– three local service providers—all with different pricing structures and Gotriangle with regional and express service offereings –both with different pricing structures. This is inconsistency is especially confusing to new customers hoping to try transit for the first time, as well as customers that must transfer to complete their one-way trip. Another issue, GoTriangle’s 7-day and 31-day pass pricing– buying four 7-day passes is cheaper than buying one monthly pass, providing no incentive to buy the longer-termpass as well as over charging passengers who assume the longer-term pass is a better deal.

Existing Conditions PASS USAGE Fare Media Used by Agency Pass Type Used by Agency Fare media preference and pass usage data was helped measure the effects of proposed fare recommendations would have on each agency and their customers. For example, the data indicates changes to Express Passes are unlikely to have large impacts, while changes to Regional Passes are likely to have a greater impact for GoTriangle and GoCary. Similarly, changes to the GoPass structure will have greater impacts to GoTriangle and GoDurham. Changes to local passes will likely have a significant impact for all local service agencies.

Peer Review FAREBOX RECOVERY AND SUBSIDY PER PASSENGER Region Cash Fare Day Pass 10-Ride Pass 7-Day Pass Monthly Bus Pass Wake/Durham (Multiple) $1.00-$1.50 2 N/A 9.6 - 12 36 Seattle (Multiple) $2.75 2.3 - 2.9 Portland (TriMet) $2.50 40 Phoenix (Valley Metro) $2.00 10 32 Denver (RTD) $2.60 38 Boston (MBTA) 10.6 27.5 Charlotte (CATS) 13.6% discount 12.3 35.2 The study compared the number of different pass types offered by the chosen peer agencies and the pricing structure. Peer agencies offer fewer pass types but pricing equations vary from agency to agency. Multi-ride passes are determined by “multipliers.” This is the number of one-way trips a passenger would need to make in order to make the pass worth purchasing. For example, GoRaleigh uses the multiplier 9.6 to set the price of a 7-day pass. This table does not include Gotriangle’s regional services. pass multipliers are the number of single trips that a rider must purchase in order to break even on the cost of a given pass product. For example, a day pass with a 2x multiplier means that a passenger would need to ride transit twice in a day to break even. Pass multipliers can be adjusted to make them more attractive fare options for riders or to raise additional revenue for the agency.  7-day pass multipliers for peer agencies range from 9.6 to 12.3. The Wake-Durham region is again in line with peer agencies, with multipliers varying from 9.6 to 12.  Monthly passes in peer agencies have the most variability of all pass multipliers, ranging between 27.5 in Boston and 40 in Portland. Wake-Durham monthly passes are set with a multiplier of 36, placing it in line with peers, though toward the higher end.

Peer Review Fare Policies Fare Structure and Technology FARE POLICIES AND TECHNOLOGY Peer Review Fare Policies Fare Structure and Technology Add notes here about each agency’s offerings

Scenario Testing RIDERSHIP AND REVENUE IMPACTS Offer a Low-Income Pass Optimized to Increase Revenue Region-Wide Tiered Fare Offer Fare Capping Region-Wide Flat Fare

Final Fare Recommendations RIDERSHIP AND REVENUE IMPACTS Final Fare Recommendations Fare Capping with Regional Tiered Fare and Standardized Discounts Fares/Multipliers Local Regional/ Express Base $1.25 $2.50 Day Pass $5.00 7-Day Pass $12.00 $24.00 31-Day Pass $40.00 $80.00 Base Discount $0.60 Discount Day Pass Discount 7-Day Pass $6.00 Discount 31-Day Pass $20.00 The estimated revenue/ridership losses are based on an industry-accepted elasticity model that for every 10% increase in fares, ridership will decrease by 3%. The analysis for this fare proposal was based on the increase in the currently underpriced 7-day pass, increase in regional base fares, loss in revenue due to fare capping, and the drop in price of the express pass. The estimated ridership and revenue losses are relatively small – 0.6%-- and do not take into account the positive effects of mobile ticketing and a simplified region-wide fare structure. Staff is not concerned with these projections – however, Wake County Transit has a “hold harmless” amount to offset any revenue losses incurred by GoTriangle due to the implementation of these proposals.

Proposed Fare Structure FARE STRUCTURE, MOBILE TICKETING, AND FARE CAPPING Fare Recommendations Proposed Fare Structure Fares Local Regional Single Ride $1.25 $2.50 Day Pass $5.00 7-Day $12.00 $24.00 $20.00 31-Day $40.00 $80.00 Discount Single Ride $0.60 Discount Day Pass Discount 7-Day $6.00 $12.00 $10.00 Discount 31-Day $20.00 Phase 1 Approvals Fall 2019 Approve/implement recommended fare structure GoRalegh and GoCary approved their fare structures no problem – GoTriangle’s Board had some concerns with the effects of a fare increase on low-income passengers. So a compromise had to be made and agreed to a delayed implementation until mobile ticketing was implemented so that fare capping could be offered as a mitigating benefit, and also lowered the cost of the 7-day pass. The multiplier won’t be consistent on that pass with GoRaleigh and GoCary, but at least now the pass pricing makes mathematical sense. GoDurham will not be changing their fare structure but are pursuing mobile ticketing/fare capping when they have available funds.

Fare Recommendations Implementation early 2020 Phase 2 FARE STRUCTURE, MOBILE TICKETING, AND FARE CAPPING Fare Recommendations Phase 2 Implementation early 2020 1 Implement mobile ticketing and fare capping 2 Expand GoPass Program The Fare Working Group is continuing to move forward with the fare recommendations that came out of the Regional Fare Study. An RFP for mobile ticketing was released a couple weeks ago and an inter-local agreement is making its rounds through the various’ agencies legal departments to allow all agencies to procure a single vendor through one agency’s contract. There are still opportunities for delays, but as long as you anticipate those risks and build time in for potential delays—and find smeone who is good at gently and relentlessly pestering other – you’ll be successful when coordinating with peers! Did at least one person cry? Sure. Was it worth it? DEFINITELY!

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