1. FARE STUDY PASS PROGRAM UPDATE Operations & Customer Service Committee August 11, 2015

2. Existing Pass Programs and Study Schedule 2

3. Existing Pass Programs 3 Employer Pass Programs –EcoPass (all-in, “insurance model”) –FlexPass (opt-in) Community Pass Programs –CollegePass (all-in) –Neighborhood EcoPass (all-in) Non-Profit Agency Reduced Fare Program –RTD sells discounted fare products to non- profit agencies to distribute to low-income individuals –Passengers get free or reduced fares

4. Why Pass Programs? Increase ridership Promote ridership among “specialized” populations; potentially increases future ridership (college students become regular riders) Promote the RTD brand and establish customer loyalty Provide revenue certainty with upfront payments Reduce the cost of fare collection Improve efficiency of vehicle boarding Add convenience for passengers Promote relationships with local governments and businesses 4

5. Pass Program Study Schedule Aug 11 (Ops Committee) –Preliminary recommendations to the Board Mid to late August –Public and stakeholder meetings Sept 8 (Ops Committee) –Report on public feedback –Present final recommendations to the Board Sept 15 (Full Board Meeting) –Board action on pass programs 5

6. FlexPass and CollegePass: No Changes Recommended 6

7. FlexPass 7 No changes recommended to FlexPass –FlexPass pricing based on Monthly Pass prices –FlexPass prices will change Jan 1, 2016 consistent with Monthly Pass prices that were approved as part of the May action for the new fare structure and levels

8. CollegePass Nine schools participate in the program with students paying for transit passes as part of their tuition –Auraria Campus, CU Boulder, CU Anschutz, DU, Colorado School of Mines, Rocky Mountain College of Art & Design, University of the Rockies, Naropa, Esscoffier –Students vote on the program at most schools –All contracts have been negotiated and agreed upon for the 2015/2016 school year Continue to evaluate CollegePass before contracts are developed for the 2016/2017 school year 8

9. Preliminary Recommendations: Business & Neighborhood EcoPass 9

10. Current Policy for EcoPass Utilization Pricing 2009 Board adopted policy –No changes to EcoPass pricing until smart card ridership data are available or there is a general RTD fare increase –Continued use of a matrix with employer size and service area to determine Business EcoPass contract prices –Prices will be based on the value of all trips within a matrix category with a 40 percent discount once data are available (not yet implemented) –No company contract should increase by more than 10 percent unless there is a general fare increase (for the first two years) –Revisit approach after three years of pricing based on smart card data 10

11. Current Business EcoPass Pricing Matrix 11

12. Recommendation for 2016 Business EcoPass Contracts Increase Business EcoPass contracts by 18.3 percent –Apply a 13.3 percent increase due to the new fare structure (general fare increase factored by ridership) –Apply additional 4.4 percent increase based on average fare analysis (survey data) that suggests Business EcoPass is currently underpriced Eliminate $2.50 upgrade charge to DIA –Include Airport trips on EcoPass consistent with other Regional passes that include trips to DIA 12

13. Recommended 2016 Business EcoPass Pricing Matrix 13

14. Recommendation for EcoPass Utilization Pricing 40 percent discount was based on the following: –Monthly pass: 20 percent discount –ValuPass: 8 percent discount –Volume discount (>200/mo - FlexPass): 5 percent discount –Round discount up to 40 percent to account for induced demand from an all-in program Staff recommendation: Change 40 percent discount to a 30 percent discount –Monthly pass discount decreased with the new fare policies –Recommendation for 30 percent would apply once contracts are priced on smart card utilization 14

15. Recommendation for 2016 Neighborhood EcoPass Contracts Increase Neighborhood EcoPass contracts by 14.4 percent –Apply a 13.3 percent increase due to the new fare structure (general fare increase factored by ridership) –Apply a 1 percent increase based on average fare analysis (survey data) that suggests Neighborhood EcoPass is currently underpriced –Eliminate $2.50 upgrade charge to DIA –Include Airport trips on EcoPass consistent with other Regional passes that include trips to DIA 15

16. Revenue Impact of EcoPass Recommendations Revenue modeling suggests that the recommendations for Business and Neighborhood EcoPass pricing would result in approximately $1 million in additional fare revenue for 2016 Opportunity to use this $1 million to extend the reach of our existing non-profit program which provides free and reduced fares to low-income individuals 16

17. Preliminary Recommendations: Non-Profit / Low Income Pass Programs 17

18. Recommendations to Simplify the Non-Profit Program Change the name of the program from the “Non-Profit Agency Reduced Fare Program” to the “Non-Profit Program” Provide a consistent 50 percent discount for all fare media –10 Ride ticket books –Day Pass coupon books –Monthly Passes Streamline administration by reducing reporting requirements and frequency of reporting 18

19. Recommendations to Increase Access to the Non-Profit Program Allow non-profits to recover the entire cost that they pay to RTD from their clients if they choose Allow a primary account holder (such as county human services) to distribute pass products to other agencies with proper documentation Improve payment and pick-up options –Offer consignment arrangements such as allowing unused monthly passes to be returned for credit and not requiring payment upfront 19

20. Revenue Impact of Changes to Non-Profit Program Demand for the program is expected to increase with the recommended changes Staff recommend that a monthly cap be placed on the number of passes sold each month –Set the cap at $1 million of additional lost fare revenue for the year as compared to the existing non-profit program –Fund the additional lost fare revenue from the increase in EcoPass contract pricing –Monitor the program on a monthly basis to determine if additional funding should be identified for this program 20

21. Low Income Pass Request Affordable Fares Task Force (AFTF) has requested RTD consider a “more comprehensive” approach to providing reduced fares for low income passengers Scenario 1: new program with half fares for all low income riders (150 percent of federal poverty level) Scenario 2: modifications to existing non-profit program Modified Non-Profit Program New Discount for All Low Income Riders Source: Mile High Connects (DRAFT for discussion) 21

22. Affordable Fares Task Force AARP Adams 12 Adams 50 School District Bayaud Enterprises Boulder County Local Coordinating Council Boulder County Transportation Boulder Valley School District Broomfield County Local Coordinating Council BuCu West Development Association Center for Work Education and Employment City of Lakewood Probation Division Colorado Center on Law and Policy Colorado Coalition for the Homeless Colorado Cross Disability Coalition Colorado Fiscal Institute Colorado Jobs with Justice Community Enterprise Denver Department of Environmental Health Denver Housing Authority Denver Human Services Denver American Indian Commission Denver Indian Health and Family Services Denver Indian Family Resource Center Denver Kids Denver Office of Immigrant and Refugee Affairs Denver Office of Anti-Discrimination Denver Office of Strategic Partnerships Denver Office on Aging Denver Public Schools Denver Shared Spaces Denver Regional Mobility and Access Council Denver's Road Home Douglas County Transportation eGo Car Share Energy Outreach Colorado Enterprise Community Partners Federal Partnership for Sustainability, Region 8 Focus Points Family Resource Center FRESC: Good Jobs Strong Communities Gary Community Investments/Piton Foundation Groundwork Denver Jefferson County Department of Human Services Jefferson County Local Coordinating Council Livable Places Mi Casa Resource Center Mile High Business Alliance Mile High Connects Montbello Organizing Committee National Multiple Sclerosis Society 9to5 Colorado P2P Ability Connection Rocky Mountain Communities Rocky Mountain MicroFinance Institute SEIU Local 105 Servicios de la Raza St Charles Town Company St. Francis Center The Arc of Aurora The Delores Project The Denver Foundation The Starting Place, Our Center Together Colorado Transportation Solutions Arapahoe County Urban Peak Via Mobility Services Volunteers of America West Colfax Business Improvement District WorkLife Partnership 14 Community Representatives, Involved with Nonprofit Boards and Committees But Representing Themselves 16 Nonprofit, Foundation and Public Sector Agencies Who For Organizational Policy Reasons Could Not Be Listed Individually 22

23. Staff Recommendation for Low Income Program Request Implement changes to the non-profit program on January 1, 2016 –Monitor how changes to that program affect utilization and determine if additional funding is needed Continue to work with the AFTF to identify a long term solution to provide affordable mobility to low income individuals –Evaluate the feasibility and timeframe to implement a broader low income discount –Refine lost revenue estimates (consider changes to discount level or poverty threshold) –Identify sustainable funding sources 23

24. Next Steps 24

25. September Actions Present these preliminary recommendations to the public and stakeholders mid to late August –Four public meetings for EcoPass (Downtown Denver, Boulder, Tech Center, DIA) –Meeting with non-profits –Local Government meeting Present final recommendations for Board action in September for: –Business and Neighborhood EcoPass –Non-Profit Program –New policies go into effect Jan 1, 2016 25

26. Longer Term In partnership with the AFTF, develop an implementation plan for a long term solution to low income fares Present an action plan to the Board including long term solution, funding strategy and timeframe for implementation –Provide update on this item to the Board this fall 26