1. FARE STUDY RTD Board Study Session April 28, 2015 1

2. Outline 1.Review Fare Study Goals 2.Review RTD Expense and Revenue 3.Review Results of the 2015 RTD Online Survey (Fare Increases versus Service Reductions) 4.Discuss Public Feedback and Tradeoffs 5.Potential Alternative based on Public Feedback 6.Next Steps 2

3. The Fare Study Objective: Simplify RTD’s fare policy in an equitable and cost-effective manner to better serve the needs of the District and customers moving forward Goals: 1.Simplicity (ease of use) 2.Acceptability/Marketability (implementable) 3.Affordability/Equity (cost of service and relationship between modes and services) 4.Achieve RTD revenue goals to avoid service reductions ($131.3M in 2016) 5.Integrate 2016 transit line openings 3

4. RTD Expense and Revenue 4

5. RTD Expenses 5

6. RTD Fixed Route Service Costs: Peer Comparison Source: 2013 National Transit Database 6

7. RTD Operating Revenue 7

8. Fare Revenue by Payment Type 8

9. Sales & Use Tax Trend Note: Blue line shows the linear trend line for the actual sales & use tax revenue. 9

10. Strategic Budget Plan (SBP) Note the plan includes assumptions about increased fare revenue in 2016 and 2019 10

11. 2015 RTD Online Survey: Fare Increase versus Service Reduction Results 11

12. Overall Preferences Considering all respondents and service types, there was a preference for a Fare Increase versus a Service Reduction 12

13. Preferences by Service Type Across all service types, there is a preference for Fare Increases in comparison to Service Reductions 13

14. Preferences by Income Lower income categories are more likely to prefer a service reduction Over $35K strong preference for fare increase In 2011, all income categories strongly preferred a fare increase 14

15. Themes from Public Feedback and Discussion of Tradeoffs 15

16. Affordability: Feedback 16 Overwhelming feedback that a fare increase would have a significant impact on disabled and low-income individuals –Organized input from the Mile High Connects Affordable Fares Task Force with a request for a 50% discount program for individuals who are at or below 150% of the Federal Poverty Level –Concern about the Access-a-Ride fares continuing to be double the regular cash fare

17. Affordability: Current Thinking 17 Working with the Affordable Fares Task Force to identify possible funding sources and determine the feasibility of implementing a low income half fare discount program –A universally available low income half fare would result in an estimated $11-$12M of lost fare revenue every year Continuing to evaluate opportunities to improve the existing Non-Profit Agency Reduced Fare Program –Reviewing results of a survey of participating agencies intended to assess impacts of the proposed changes on the agencies and their clients (140 agencies participated)

18. Day Pass: Feedback 18 General consensus that the day pass priced at two boardings is a good alternative for most passengers in order to eliminate transfers –Acknowledgement from almost all participants including low income individuals that having access to a full day of travel for the price of a round trip is positive Heard a desire to purchase day passes in advance similar to 10-Ride Ticket Books

19. Day Pass: Current Thoughts Day pass priced at a roundtrip will be included in the final staff recommendation Access to the day pass on board the bus is a key component Evaluating options for selling day passes in advance at sales outlets 19 TriMet recently added ticket printers on their buses to sell 2-Hour tickets or day passes Source: TriMet (Portland)

20. Transfers: Feedback 20 Many individuals expressed concern about the elimination of transfers –Often times these individuals did not understand the day pass recommendation being priced at a round trip would mean they wouldn’t pay more for their trip or need transfers Results of passenger survey suggest: –Single one-way trips in a day are infrequent and not a typical travel pattern –89% of passengers make two or more trips per day –2% of passengers pay cash and make only a single one-way trip with transfers in a day

21. Transfers: Current Thoughts Allow transfers for passengers using smart cards Cash paying passengers would not get transfers but could still purchase a day pass at the price of a round trip Limiting transfers to cards is becoming an industry best practice –Encourages passengers to use smart cards 21

22. Bus Fares: Feedback 22 Concern about keeping Express and Regional bus fares while recommending one Local fare on Rail –Confusion about the difference between Express and Regional routes Support for simplification of fares on Regional bus routes –Support for reclassification of routes between Longmont and Boulder to a Local fare Concern about US 36 BRT having multiple fares levels

23. Bus Fares: Current Thoughts 23 Consolidate Express and Regional routes into one “REX” category –Set price between the current Express and Regional route Fare based on route –US 36 BRT all-stop routes set at Local fare and the express trips set at the REX fare –All BRT trips between downtown Denver and US 36-Sheridan station would be a Local fare

24. Rail Zones: Feedback 24 Conflicting comments regarding the proposal to eliminate rail zones Survey suggests that many passengers like the flat rail proposal and a general acknowledgement that it provides simplification Concerns that eliminating rail zones provides a fare reduction for higher income rail riders while increasing fares on low income bus and rail riders –Unfair that short trips are the same price as longer (up to 20 mile) trips from the end of the lines Concerns about maintaining Express and Regional bus fares with a flat rail structure Substantial revenue loss of $6M from flat rail fares

25. Rail Zones: Current Thoughts 25 Evaluating options to simplify zone / distance based structure –Considering a two-tier rail structure Expand the Local fare distance to address many of the concerns that originally led to the flat fare proposal Consolidate Express and Regional zones –Maintain higher fare for longer trips Achieve consistency with current bus thinking –Two fare categories priced at the same levels for bus and rail

26. Airport: Feedback 26 Conflicting feedback on Airport fare Desire to have a higher fare for occasional visitor and business travelers Concerns about Airport fares being too expensive for airport employees even with the ability to use Regional day or monthly passes –Many airport workers today are able to ride with an Express pass from closer park-n-rides and the increase to a Regional pass would be substantial Some feedback that the hard boundary at the Airport was unfair and shorter trips from east Denver or Aurora should be less expensive

27. Airport: Current Thoughts 27 Continue to have a higher fare for single trips to or from the Airport that would likely only be used by occasional travelers Consolidation to the two fare categories instead of three categories would allow a REX day or monthly pass to be used for travel to the Airport –REX fare may be lower than the current Regional fare

28. Monthly Pass Pricing: Feedback and Current Thoughts 28 Concerns about monthly pass prices increasing at a higher percentage than the cash fare increase Two reasons for the original staff recommendation to increase the monthly pass breakeven point from 36 to 40: –Level the discount between cash and monthly pass users; with the 40 boarding breakeven passengers could get almost the same level of discount by purchasing day passes –Achieve revenue targets Evaluating revenue impacts associated with reducing monthly pass breakeven to 38 boardings

29. Other: Feedback and Current Thoughts 29 $2.50 would be better than $2.60 –$2.60 forecast to generate an additional $2 million of fare revenue each year Questions regarding Eco and CollegePass pricing and the 12% increase –Increase of 12% is based on the general fare increase factored by ridership per the 2009 Board EcoPass policy –Staff plans to evaluate Eco and CollegePass pricing as part of the next steps

30. Potential Alternative based on Public Feedback 30

31. Current Thinking Based on Public Feedback Local Bus Local Rail REX Bus REX Rail Airport Bus Airport Rail Single Boarding with Cash $2.60/ $1.30 $4.50/ $2.25 $9.00/ $4.50 One-way Trip with Smart Card* $2.35/ $1.15 $4.25/ $2.10 $8.75/ $4.35 Day Pass $5.20/ $2.60 $9.00/ $4.50 Monthly Pass $99/ $49 $171/ $85 Notes: Regular Price / Discount Price Discount fares apply to all seniors 65+, individuals with disabilities, Medicare recipients, and students ages 6-19. Proof of eligibility is required when boarding. *Fares paid with a smart card would include transfers Forecast 2016 Revenue: $131.3M (achieves SBP target) 31

32. Next Steps / Schedule for Approval and Implementation 32

33. Competing Needs Regarding Schedule 33 Implementation of new fare structure –Ticket vending machines –Day passes on the bus –Smart card programming and retail agreements Full evaluation of pass program options –Future pricing of EcoPass –Feasibility and timeframe for implementing a half fare low-income discount –Improvements to the non-profit agency program

34. Next Steps 34 May 19 Operations Committee –Revised staff recommendation incorporating current thinking and Board feedback Board adoption May 26 Implementation early 2016 Continued effort on pass programs especially regarding feasibility and timeframe for a low income discount program –Updates and recommendation expected by late summer