RTD Pass Program Portfolio: The Current State. An Overview of RTD Pass Programs June 6, 2017

Transcription

1 RTD Pass Program Portfolio: The Current State An Overview of RTD Pass Programs June 6, 2017

2 Outline 1. The Budget 2. Pass Programs By The Numbers 3. Equity

3 The Budget How fare revenue and pass programs fit into the big financial picture

4 The Purpose of Fares Fare revenue is used to offset the cost of operating and maintaining transit services (e.g. bus and rail) and facilities (e.g. bus stops, shelters, Park-n-Rides, maintenance facilities). Fare changes are intended to increase revenue in response to actual or forecasted increases in operation and maintenance costs. An objective is to minimize the ridership loss involved in fare increases. Operating costs are identified and forecasted through: Strategic Budget Plan (SBP) FasTracks Annual Program Evaluation (APE)

5 Purpose of the SBP Provides overall guidance for RTD Base System service delivery, debt, and capital expenditures Six year capital and operating plan Identifies anticipated revenues and expenditures Must be financially constrained (balanced budget) Provides input for other planning efforts DRCOG six-year Transportation Improvement Program (TIP) RTD Annual Budget Long-term Financial Plan Aligns with Board top strategic goals for 2018 Fiscal Sustainability Workforce/Human Capital State of Good Repair Incorporates approved performance measures Sets target for development of fund balances 5

6 Overview of the SBP SBP includes only service and projects funded from the Base System 0.6% sales and use tax FasTracks expenses and projects are included in the FasTracks Annual Program Evaluation (APE) financial plan Cost allocation to FasTracks operations for existing corridors and services for annual budget Goal is to combine SBP and APE in one long-range plan going forward 6

7 SBP Development Process SBP capital program used as baseline for current SBP Start with projects approved in SBP Existing projects with costs in future years are rolled into the current cycle SBP Requests for new projects are brought into current cycle SBP Projects are prioritized and evaluated using mission statement criteria and 2018 strategic goals Revenue forecasts updated to incorporate most recent available information.06% sales/use tax + fare revenue + grants Ongoing operating cost forecasts updated to 2017 Budget, using current information and current cost trends 7

8 Annual Program Evaluation (FT) Comprehensive annual evaluation process for the FasTracks program Same time period as SBP Provides overall guidance for FasTracks build-out, service delivery, debt, and capital expenditures Provides input for other planning efforts RTD Annual Budget, Financial Plan Only service and projects funded from FasTracks sources 0.4% sales/use tax + fare revenue + grants Annual update of: Project capital and operating cost estimates to current baseline Revenue estimates to current forecasts Overall plan to current conditions 8

9 Fare Revenue Targets 2016 Financial Plan Forecast Farebox Revenues (thousands of dollars) Year Base FasTracks Total 2018 $117,520 $36,172 $153, $129,272 $44,013 $173, $129,272 $46,061 $175, $129,272 $47,454 $176, $142,199 $53,647 $195, $142,961 $55,146 $198,108

10 Deferred Projects Below is a sample list of projects deferred through the SBP process. Deferred Projects North Boulder Park-n-Ride and Bus Transfer Center I-25 & Broadway Infrastructure Improvements RouteMatch Software Replacement (Access-a-Ride) Support and Service Vehicles (e.g. tow trucks) Parking Mineral Park-n-Ride Bus Wash East Metro Estimated Cost $3.3 million $9 million $2 million $3.8 million $11.2 million $1.6 million

11 Pass Programs by the Numbers An Overview of pass programs including 2016 revenue, distribution and smart card tap data.

12 Current Fare Structure Fare Type Local Bus & Rail Regional Bus & Rail Airport Bus & Rail Cash (includes free one-way transfers) $2.60/$1.30 $4.50/$2.25 $9.00/$4.50 MyRide One-way Trip $2.35/$1.15 $4.25/$2.10 $8.75/$4.35 Day Pass $5.20/$2.60 $9.00/$4.50 Included in Regional Fare Day Pass Book $26/$13 $45/$22.50 Included in Regional Fare 10-Ride Ticket Book $23.50/$11.75 $40.50/$20.25 Included in Regional Fare Monthly Pass $99/$49 $171/$85 Included in Regional Fare ValuPass (Annual) $1,089/$539 $1,881/$935 Included in Regional Fare Legend: Full Fare/Discount Fare 12

13 Base Discount Fare Policy With proof of eligibility, RTD offers a Discount Fare and Free Fare on bus and rail services Discount Fare (Half Fare/50% Discount) 1. Seniors: 65+Years Old (Federal Requirement) 2. Individuals with Disabilities (Federal Requirement) 3. Medicare Recipients (Federal Requirement) 4. Elementary, Middle and High School Students, ages 6-19 Free 1. Children 5 & under 2. Access-A-Ride user and their assistant 3. Active duty members of the U.S. military 4. Law Enforcement and 1st Responders 13

14 Cash $49,315,763 36% Fare Revenue Breakdown (2016) $138,369,533 Business EcoPass - Individual $26,471,142 19% Monthly Pass $23,700,015 17% MyRide Stored Value $338,264 0% Neighborhood EcoPass $1,045,391 1% Business EcoPass - Master Contracts (6 Contracts) $1,150,679 1% Day Pass Books $1,769,371 1% Nonprofit Program $3,747,563 3% FlexPass (Monthly Pass) $3,789,209 3% 10-Ride Tickets $13,098,850 9% CollegePass $13,943,286 10%

15 Pass Programs Portfolio Summary 1. CollegePass 2. EcoPass a) Business EcoPass b) Neighborhod EcoPass (NECO) c) Master Contract EcoPass 3. Flex Pass 4. Nonprofit PASS PROGRAM REVENUE (2016) $50,147,270 Business EcoPass - Individual $26,471,142 53% CollegePass $13,943,286 28% FlexPass $3,789,209 8% Nonprofit Program $3,747,563 7% Business EcoPass - Master Contracts (6 Contracts) $1,150,679 2% Neighborhood EcoPass $1,045,391 2% 15

16 NUMBER OF PARTICIPANTS Pass Programs Portfolio Summary Number of Participating Organizations Per Program 1,600 1,400 1,200 1, EcoPass - Master Contracts (6 Contracts) EcoPass - Individual Nonprofit Program FlexPass Neighborhood EcoPass Series1 1, PASS PROGRAMS CollegePass

17 CollegePass COLLEGE PASS (2016) An annual program based on a school year that allows students to utilize all of RTD s regular services including trips to and from the airport The student receives a photo ID smart card CU Boulder and Auraria priced from ridership data (prior to smart card). All other schools per student per semester fees determined by survey. Cost is passed to students via tuitions and fees. Each school determines eligibility - e.g. Some schools may only include full time students. CollegePass $13,943,286 10% Program # of Participants Other Media $124,426,247 90% # of Eligible Passes Revenue Per Pass CollegePass 9 200,000 $69.72

18 CollegePass Program Administration Personalize smart cards for students with photo and name RTD provides card stock Track card inventory and card numbers issued to students Create riders and assign cards individually or via bulk Manage riders suspend ineligible students (makes rider inactive) Manage cards suspend or deactivate for ineligible or replacements Coordinate with multiple offices and schools on the campus to obtain the information needed to manage the accounts - time consuming and cumbersome Provide lists to RTD each semester/quarter for account management support Provide enrollment census to RTD each semester/quarter RTD Market Dev. Staff assists coordinators who provide required data

19 EcoPass An annual program based on a calendar year giving employees access to all regular services including Airport Service The employee receives a photo ID smart card Prepaid program some payment plan options available The company and RTD enter into a contract and pricing is determined by the location (SLA) of the company and the total number of employees. Contract minimums apply All full time employees must be included with the option to include or exclude all part time employees Guaranteed Ride Home is included with the EcoPass program Program ECOPASS REVENUE (2016) Other Media $111,898,391 81% Business EcoPass - Individual Participants # of Eligible Passes Business EcoPass - Individual $26,471,142 19% Revenue Per Pass ,953 $234.36

20 SLA (business location) Outer Suburban Major Transit Centers Downtown Denver CBD DIA and home businesses Contract Price Per Employee Per Year Minimum ,000-1,999 2,000+ Employees Per Year employees employees employees employees employees 1-10 $1, $2,300 $85 $75 $64 $ $3,448 A $ $2, $4, $6,322 B $ $2, $5, $8, $2, $5, $8, Eco Pass Pricing $189 C $532 $493 D $544 $522 $173 $160 $470 $483 $151 $459 $434 $470 $445 Important: If the per-person rate for your SLA multiplied by your headcount is LESS THAN the Contract Minimum - the Contract Minimum rate will apply.

21 EcoPass Administration Create new riders individually or bulk Manage riders suspend ineligible employees (makes rider inactive) Manage cards suspend or deactivate for ineligible or replacements Order cards for riders via the smart card web portal (one portal per employer location), or by issuing an authorization form to send the employee to an RTD. Authorize Guaranteed Ride Home trips for employees Headcount Variance Reports mid-year Providing documentation for annual renewals and/or at RTD s request RTD Market Dev. Staff assists coordinators who provide required data

22 Neighborhood EcoPass (NECO) NECO PASS REVENUE (2016) Provides the same benefits to neighborhood residents as the EcoPass does for employees A neighborhood must be represented by either a county or city government or a registered homeowners/neighborhood association There is an annual per household price, prepaid by neighborhoods Any new neighborhoods, or additional blocks to existing neighborhoods after 2009 are surveyed to determine the per household pricing. There are 3 pricing zones in Boulder for neighborhoods that joined before There are additional rules related to new developments and contract minimums. Program Neighborhood EcoPass Other Media $137,324,142 99% Participants # of Eligible Passes Neighborhood EcoPass $1,045,391 Revenue Per Pass 55 13,390 $78.07

23 Neighborhood EcoPass Administration Create new riders individually or via bulk Manage riders suspend ineligible residents (makes rider inactive) Manage cards suspend or deactivate for ineligible or replacements Order cards for riders via the smart card web portal, or by issuing an authorization form to send the resident to an RTD outlet rider must be created first- NOTE: all replacements must be done in person Guaranteed Ride Home not included with NECO Providing documentation for annual renewals Manage collection of funds from residents

24 EcoPass Master Contract ECOPASS MASTER CONTRACTS (2016) Master Contract agents may select from three participation options. The minimum Master contract amount per agent is $10,000 per year. Employers and employees may not be charged for the passes. The businesses must be located within defined boundaries that are contiguous Guaranteed Ride Home included with the exception of the CAGID contract covering downtown Boulder Master Contract agent contracts with RTD Master Contract agent manages all employers within its boundaries Business EcoPass - Master Contracts (6 Contracts) $1,150,679 1% Program Business EcoPass - Master Contracts (6 Contracts) Participants Other Media $137,218,854 99% # of Eligible Passes Revenue Per Pass 1,579 8,450 $136.18

25 EcoPass Master Contract Administration Create new riders individually or via bulk must also include the company name in the rider profile as there are multiple companies Manage riders for multiple companies suspend ineligible employees (makes rider inactive) Manage cards for multiple companies suspend or deactivate for ineligible or replacements Issue an authorization form to send the employee to an RTD outlet Master Contract Coordinators choose to not order through the portal due to difficulties with card distribution Share communications with multiple employers CAGID as 1200 companies Providing documentation for annual renewals and/or at RTD s request

26 FlexPass An annual pass program that can be customized to meet the needs of the employer and employees offering up to three different discounts. Employer can chose one, two or all three RTD works with companies to select the plan that fits best The company will sign a revolving contract Some or all of the employees may participate (opt-in model) Employees place monthly orders and employers approve each month Prepaid per monthly order Monthly passes are mailed to employees or business prior to the month of usage Program FLEXPASS REVENUE (2016) Other Media $134,580,324 97% # of Participants # of Eligible Passes FlexPass (Monthly Pass) $3,789,209 3% Revenue Per Pass FlexPass (Monthly Pass) ,693 $119.56

27 FlexPass Administration Employees receive a monthly pass - local or regional Each month, employees order through the FlexPass site by selecting the company via a dropdown menu Each month the company approves the order through the FlexPass site Payment is determined by the options selected by the company. It can be shared between employee and employer, a pre-tax payroll deduction can be set up. There are a variety of choices All ordering has a cut off date, if the dates are missed, the orders are cancelled

28 Nonprofit Program NON-PROFIT (2016) Nonprofit and government agencies purchase Day Pass ticket books, 10 Ride ticket books and monthly passes at a 50% Discount Agencies can recover 100% the discount price of media The entire program is capped at $6.8 million face value (the cap was exceeded in 2016) Agencies offer discounted media to income eligible customers only Individuals from households with income 185% of the Federal Poverty Guidelines Non-Profit Program $3,747,563 3% Passes Face Value Net Sales Amount (50%) Other Media $134,621,970 97% % of Total Revenue Per Pass/Ticket 10-Ride Tickets $ 2,474,518 $ 1,237,259 33% $9.96 Day Passes $ 228,054 $ 114,027 3% $11.74 Monthly Passes $4,792,554 $2,396,277 64% $38.36 Total $7,495,126 $3,747, %

29 Monthly Revenue Per Pass Monthly Revenue Per Pass $ $ $ $ $ $80.00 $60.00 $40.00 $20.00 $0.00 CollegePass Neighborhood EcoPass EcoPass - Master Contracts EcoPass - Individual Business Nonprofit Program Local Monthly Discount Regional Monthly Discount Local Monthly FlexPass Regional Monthly Monthly Revenue Per Pass $5.81 $6.51 $11.35 $19.53 $38.36 $49.00 $85.00 $99.00 $ $ EcoPass EcoPass - Master NECO CollegePass FlexPass Nonprofit % of Local Monthly Pass Price - $ % 11.46% 7% 6% 121% 39% % of Regional Monthly Pass Price - $171 11% 7% 4% 3% 70% 22%

30 Fare Use On-Board Survey* *Fare structure and media changed in 2016

31 Tap Data

32 Barriers to Accuracy The Limitations of Tap Data Based on ridership statistics and customer survey data, we estimate that between 20% and 30% of trips taken with smart cards in were not recorded and/or reported. Barriers to accuracy include: Technological: Equipment and system issues resulted in unsuccessful taps Example: Cards could not be re-charged Administrative: Challenges with data integrity and reporting methodology. Examples: Calculation of transfer value Customer Behavior: A significant portion of passengers did not tap, especially on rail. Example: Customer not aware of the requirement to tap since pass is pre-paid.

33 Overcoming Barriers to Accuracy Technological: Equipment and system issues have been largely resolved. Administrative: Implementation of new reporting system and revised reporting methodology is under way. Customer Behavior: Efforts to improve compliance education, outreach, more inspections, new inspection application.

34 Tap Data College ECO NECO Total Total Recorded Trips 4,876,375 7,272, ,175 12,606,623 Local^ 3,599,789 3,336, ,713 7,244,054 Express^ 632,074 1,872,283 28,731 2,533,088 Regional^ 554,172 1,147, ,425 1,806,669 Airport^ 90, ,166 16,306 1,022,812 Value of Recorded Trips* $ 14,968,263 $31,211,267 $ 1,415,951 $47,595,481 Revenue Received $ 14,639,207 $ 21,220,158 $ 893,874 $ 36,753,239 ^ Classification based on fare level for first boarding * A significant portion of trips was not recorded

35 Tap Data College ECO NECO Total Total Recorded Trips 4,690,622 7,522, ,761 12,708,587 Local^ 3,605,536 3,589, ,206 7,542,979 Express^ 492,440 1,801,369 31,848 2,325,657 Regional^ 499,787 1,149,105 97,283 1,746,175 Airport^ 92, ,493 18,424 1,093,776 Value of Recorded Trips* $ 14,144,279 $ 32,308,862 $ 1,476,436 $ 47,929,576 Revenue Received $ 14,025,492 $ 22,480,301 $ 1,044,758 $ 37,550,551 ^ Classification based on fare level for first boarding * A significant portion of trips was not recorded

36 Tap Data College ECO NECO Total Total Recorded Trips 4,693,320 7,978, ,726 13,150,856 Local^ 3,641,434 4,528, ,719 8,507,874 Regional^ 955,128 2,586, ,396 3,662,281 Airport^ 96, ,332 20, ,701 Value of Recorded Trips* $ 14,940,768 $ 31,823,290 $ 1,421,046 $ 48,185,105 Revenue Received $ 13,943,286 $ 27,621,821 $ 1,045,391 $ 42,610,498 ^ Classification based on fare level for first boarding * A significant portion of trips was not recorded

37 Data Provided to the Consultant Boarding data from fareboxes by service class, by route, and by time-period (peak/offpeak) on a month by month and annual basis for weekday and weekend services Recent Ridecheck and Standcheck data (observed ridership) for most of RTD s routes will be available on an as-needed basis Recent sales data for all RTD fare media Recent EcoPass sales data and trends System and route maps and schedules RTD s Service Standards Estimates of fare recovery by route - currently available for 2015 Origin/Destination surveys Customer Satisfaction surveys (2017 Survey underway) Fare Study Recommendation (2016), Equity Analysis and final report EcoPass, College, and other fare-related contracts and agreements Smartcard tap data

38 Equity An overview of RTD s view of fare equity

39 Equity The Federal Transit Administration (FTA) requires an equity analysis of any fare change per Title VI of the Civil Rights Act of 1964 and Environmental Justice (E.O ). A fare equity analysis is an evaluation of fare changes for discriminatory effects called: Disparate Impact - a significantly disproportionate percentage of benefits/adverse effects absorbed by minority persons Disproportionate Burden a significantly disproportionate percentage of benefits/adverse effects absorbed by low-income persons. A difference in impact 5% is considered to be significantly disproportionate.

40 Equity Analysis Framework 1. Analysis: Analyze the proposed fare change for impacts absorbed by minority and low-income populations. a) Compare average fare of minority and non-minority rider b) Compare average fare of low-income and non-low-income rider 2. Manage Disparities: Avoid, minimize and mitigate identified disparate impact and disproportionate burden. a) e.g. not raising fares at all, reducing services, etc

41 Questions