1. FARE STUDY: STRUCTURE & LEVEL RECOMMENDATION Operations & Customer Service Committee February 10, 2015 1

2. The Fare Study Objective: Simplify RTD’s fare policy in an equitable and cost-effective manner to better serve the needs of the District moving forward Goals: 1.Simplicity (ease of use) 2.Acceptability/Marketability (implementable) 3.Affordability/Equity (cost of service and relationship between modes and services) 2

3. Components of RTD System Base Operating System FasTracks (Capital & Operating) Established 1969 by Colorado State Legislature 2004 by Voters Primary Funding 0.6% Sales and Use Tax 0.4% Sales and Use Tax 3

4. RTD Expenses 4

5. RTD Operating Revenue 5

6. Farebox Revenue by Payment Type 6

7. Sales & Use Tax Trend Note: Blue line shows the linear trend line for the actual sales & use tax revenue. 7

8. Current Fares BUSLocal/LimitedExpressRegionalSkyRide RAIL1 or 2 Zones3 ZonesAll Zonesn/a PRICE$2.25$4.00$5.00$9/$11/$13 Current Light Rail Fare Zone map Route HX Boulder US 36 & McCaslin Denver BoulderLocalExpressRegional US 36 & McCaslin Express--Regional DenverRegional -- Fare Table for the HX Regional Route. Fare tables are currently used on all Regional and SkyRide routes. 8

9. RTD Fare History 1999 – 2014 Local, Express and Regional 9

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

11. 2011 Survey: Fare Increases vs. Service Reductions Board requested a survey to assess the tradeoffs customers would be willing to make between fare increases and service reductions Survey was conducted via the web and paper at 2011 fare change public hearings 11

12. 2011 Survey: Key Findings All Service Types –Approximately 66% of respondents prefer fare increases to service reductions Local –Approximately 71% of respondents prefer fare increases of $.25 per ride to service reductions Express –Approximately 60% of respondents prefer fare increases of $.50 per ride to service reductions Regional –Approximately 62% of respondents prefer fare increases of $.50 per ride to service reductions 12

13. 2011 Survey: All Service Types Fare Increase vs. Service Reductions Approximately 66% of respondents prefer fare increases to service reductions. 13

14. Themes from 2014 Public Feedback Light Rail Zones –Confusion on how they work and how they are enforced Transfers –Ineffective, confusing and outdated Fare Media / Technology –Ticket vending machines are hard to use –Desire for reloadable smartcards Affordability –Fares are too high especially for low-income, seniors, and ADA communities 14

15. Themes from 2014 Public Feedback Pass / Discount Programs –Confusion regarding low-income pass program and a desire to simplify requirements –Desire for an EcoPass type program for individuals not associated with a business or college Bus & Rail System Integration –Simple transfers between bus and rail –Cost of trips on bus vs. rail –Migrating population (more seniors, low-income and minorities in the suburbs) may require individuals to take longer trips with multiple modes Ridership –Encourage and increase ridership with simple and affordable fares 15

16. Staff Recommendation Pay per Boarding with a 2x Day Pass: Fare Simplification –Make Day Passes available on the bus; continue selling Day Passes from Ticket Vending Machines at rail stations –Reduce price of the Day Pass to 2x the cash fare and eliminate transfers –Eliminate Rail zones –Eliminate Distance Based Fares on Bus Routes; price based on Service Type (Local, Express, Regional) 16

17. Staff Recommendation 17 Pay per Boarding with a 2x Day Pass: Fare levels that meet the SBP revenue target: –Local/Rail: $2.60 single boarding, $5.20 Day Pass –Express Bus: $4.50 single boarding, $9 Day Pass –Regional Bus: $5.50 single boarding, $11 Day Pass –Airport (Bus or Rail): $10 single boarding (or Regional Pass accepted for Airport trips)

18. Staff Recommendation Details 18 Local, Express, and Regional monthly passes priced at 40 boardings 25¢ discount on single boardings when paying with stored value (smart card) Federally mandated half-fare discount required for seniors 65+, Medicare recipients and persons with disabilities during the off-peak period –Continue to extend discount to all time periods and to students ages 6-19 –Staff recommendation extends the discount to the day pass –Continue to apply the half fare discount to monthly passes Continue to price Access-a-Ride fares at twice the comparable fixed route fare

19. Staff Recommendation Service and Financial Impacts 19 Revenue neutral $119.3 million in fare revenue = approximately 8-10% reduction in service hours –Would require slightly more cuts than 2012 changes Staff recommendation achieves SBP fare revenue target of $131.3 million = No service cuts as a result of fare revenue shortfalls –Staff recommendation forecast to generate $133.1 million in fare revenue in 2016

20. Staff Recommendation Summary Rail Structure Summary RailDIA Single Boarding$2.60$10 Day Pass$5.20$11.00 Monthly Pass$104$220 Bus Structure Summary Local/LimitedExpressRegionalDIA Single Boarding$2.60$4.50$5.50$10 Day Pass$5.20$9.00$11.00 Monthly Pass$104$180$220 Simplification –No Rail Zones –No Distance Based Fares on Bus Routes –No Transfers –Day Pass available on the bus 20

21. Advantages of Pay per Boarding with a 2x Day Pass 21 Increased convenience for passengers with a day pass available on board and from TVMs (simplicity) Passengers are able to ride all day for the price of two trips (simplicity, affordability) Day pass provides a discount for passengers who are not able to afford the up front cost of a monthly pass (simplicity, affordability, equity) Simplifies fare enforcement and minimizes disputes between passengers and operators (simplicity, implementable) Rail fares not based on distance (simplicity, affordability, equity) Stored value discount applies to all trips – no minimum required to get discount (equity)

22. Next Steps February/March 2015: Present structure and level recommendation to the public –15 public hearings, one in each Director District –Web and other outreach tools will be used in conjunction with the public hearings April 2015: Board approval –April 14: Staff provide an update including feedback from the public hearings at the Operations & Customer Service Committee –April 21: Board approve new fare structure and level policies at the Board Meeting March – June 2015: Staff evaluation and recommendations for pass programs January 2016: Implementation of new fare policies 22