1. FARE STUDY ECOPASS RECOMMENDATION Operations & Customer Service Committee September 8, 2015

2. Fare Study Process Summer 2014: Fare Study Initiated –First phase was focused on fare structure –Pricing was incorporated as part of the recommendations for public hearings Spring 2015: Public Hearings –Included price increase for EcoPass consistent with the general fare increase May 2015: Board Action on Structure & Level –Title VI concerns were identified for Business EcoPass as part of the equity analysis –Board action did not include EcoPass pricing September 2015: Recommendation for 2016 EcoPass pricing that reduces Title VI risk 2

3. Stakeholder Outreach 36 Commuting Solutions Douglas County City of ArvadaDowntown Denver Partnership AARPDRCOG Arapahoe County LCCeGo Car Share Arc of AuroraFRESC/AFTF Boulder Chamber of CommerceJeffco LLC Boulder CountyCity of Louisville City of BoulderLivable Places Consulting Colorado Coalition for the HomelessMi Casa Resource Center Colorado Cross Disability CoalitionMile High Connects CU BoulderServicios de la raza CWEEStapleton Foundation City and County of DenverCity of Thornton Denver South EDPUS 36 Mayors/Commissioners Coalition 3

4. Stakeholder Feedback Recognition that EcoPass is a good program coupled with concern that increasing the price will result in fewer participating neighborhoods and businesses Frustration that tap data are not available Concern that there has not been enough outreach and stakeholder involvement in developing the recommendations Questions about the data and math that were used to develop the recommendations Concern that companies have not budgeted for an 18 percent increase 4

5. Stakeholder Feedback (cont) Desire for an addition to the Business EcoPass matrix to allow for a master contract for low- wage businesses Opportunities to include changes to the Neighborhood EcoPass program as part of the continued affordable fares discussions The entire fare study seems like a complicated process that was broken into individual pieces –A summary of all of the fare policies and how they fit together would be helpful when the process is complete 5

6. Recommendation for 2016 Business EcoPass Contracts Increase Business EcoPass contracts by 18.3 percent –Results in a projected average fare for EcoPass passengers that is equivalent to the overall average fare projected for 2016 –EcoPass riders will not be more heavily subsidized than other passengers Eliminate $2.50 upgrade charge for trips to and from DIA No changes to SLA boundaries to incorporate new lines until 2017 contracts 6

7. Recommended 2016 Contract Prices for Business EcoPass 7

8. Detail Regarding EcoPass Prices EcoPass contract prices have not gone up since 2011 The per employee price of an annual EcoPass in the Downtown area is comparable to providing a parking pass for 2 – 5 months Maximum EcoPass price well below the federal limit of $1,560 per year per employee transit pass tax exclusion of the IRS Commuter Benefits program 8

9. Contract Payment Options Currently contracts are paid in full at the beginning of the year Add two new contract payment options for 2016: –Quarterly payments with an administrative processing fee of 1% –Semiannual payments with no additional administrative processing fee 9

10. Recommendation for 2016 Neighborhood EcoPass Contracts Increase Neighborhood EcoPass contracts by 13.3 percent consistent with the general fare increase Eliminate $2.50 upgrade charge for trips to and from DIA Make a minor update to the survey for new neighborhoods –Modify survey so pricing incorporates all participants eligible for half fare discount 10

11. Title VI Equity Analysis A review of the fare equity analysis in May of 2015 revealed Title VI risks for the Business EcoPass program This recommendation was developed considering those risks Per FTA requirements and RTD Board Policy, this EcoPass recommendation was analyzed for any disproportionate adverse effect on minority and low-income riders The analysis of this recommendation does not reveal a disproportionate adverse effect 11

12. Recommendation for Future EcoPass Pricing Begin pricing EcoPass contracts with utilization data as soon as adequate smart card data are available Re-evaluate the 2009 Board Policy for utilization pricing as part of a Pass Program Working Group that will include stakeholders from across the district Goal for future pricing: average EcoPass fare should be equivalent to the overall average fare 12

13. Revenue Impact Fare policies adopted in May included an assumption that EcoPass contracts would increase by 13.3 percent Additional increase in Business EcoPass contracts would result in approximately $1 million of additional fare revenue per year 13

14. Next Steps Send out 2016 contracts with new pricing –Include payment options 2016: Convene RTD and Stakeholder Pass Program Working Group to develop recommendations for future pricing –Define goals for pass programs –Reevaluate 2009 Board Policy for utilization pricing incorporating the new fare structure and average fare analysis –Coordinated effort with the Affordable Fares Task Force discussions 14