1. Summary of Fare Change Feedback and Proposal Hillary Foose Director, Communication & Marketing

2. Background Fall 2011 – Conducted public outreach for $.25 increase to base fares Early 2012 – Initiated Title VI analysis; tabled fare increase discussion Summer 2012 – Revised fare proposal to increase Express/RAPID base fare by additional $.25 to mitigate study findings Sept. 2012 – Board approved public outreach program for revised fare proposal Nov./Dec. 2012 – TMC, BFS and Phoenix City Council have provided approval

3. Proposed Fare Changes for March 1, 2013

4. Current Fare Change Proposal $.25 increase on local bus/ LINK/light rail $.50 increase on Express/RAPID bus ADA Dial-a-Ride: $4.00 for 1-Ride –2x 1-Ride local bus fare Rural Route: $4.00 flat fare for 1-Ride –Changes from a distance-based fare

5. Current Fare Change Proposal ASU/employer-issued passes –Fare increase determined by organization Semester Pass –Would increase with summer semester Elimination of 3-day pass Addition of 15-day pass

6. Why a Fare Increase? Local, state and federal funding have experienced shortfalls in recent years Despite streamlining and cost-cutting, operating costs continue to rise The fare increase will help: –Preserve service –Keep pace with the cost of operations

7. Fare Change Public Involvement Online survey (1,047) Fares@valleymetro.org (31) Intercept surveys (300) Information tables (4 – numerous visitors) Open houses (11 – 93 attendees) Public hearing (1 – 24 attendees) Webinar (1 – 22 attendees) Tweet Chat (1 – 8+ participants)

8. Fare Change Communication English/Spanish print advertising (5 ads) Door hangers on buses w/o 10/1 (30k) Take-ones on buses/trains w/o 10/22 (30k) A-frame signs (35 transit locations) Broadcast emails (3,500+ viewers) Social media (80+ posts) News releases (35 news stories) Website (2,500 visitors to /farechange)

9. Public Input: Transit Usage Do you primarily ride…

10. Public Input: Cost vs. Service Which is more important to you?

11. Public Input: Budget Impact Using 1 to 10 scale, what impact would the fare change have on your budget? 68% 32%

12. Public Input: Continued Use Using 1 to 10 scale, how likely are you to continue using public transit if the fare change occurs? 59% 41%

13. Public Input: Fare Change Support Using 1 to 10 scale, what is your level of support for the fare change? 21% 79%

14. Public Input: Open Feedback Don’t raise prices, keep the same Make the increase gradual RAPID customers should pay more Fares should be similar to other regions Fares have gone up, but not service Run service later, more often Better quality drivers Call for greater service 14

15. Public Feedback Conclusions Cost and level of service are both important to riders A majority of respondents oppose the proposed fare increase However, majority will continue to use transit and have asked for increased service 15

16. Recommendation Approval of the proposed March 1, 2013 fare increase and associated changes 16

17. Fare Recovery Projection No Fare Increase

18. Fare Recovery Projection With Fare Increase

19. Fare Revenue Projection FY11 – FY15 19

20. Funding Public Transit Local and state tax revenues fund about 75% of transit costs. Passengers pay about 25% of the cost to ride. 25% 75%

21. Proposed Fare Changes for Dial-a-Ride Two times the 1-Ride fare Fares will increase in: –Avondale ‒ Mesa ‒ Tempe –Chandler ‒ Peoria* ‒ Tolleson –Gilbert ‒ Phoenix ‒ Youngtown –Goodyear ‒ Scottsdale Fares will not increase in: unincorporated Maricopa County, Sun City, Surprise *Only on trips under the ADA guideline where it travels ½-mile from a fixed route service

22. Proposed Fare Changes for Other Services/Programs Rural Route 685 –Current fare is distance-based; flat fare is proposed Employer/ASU-Issued Passes –Fare increase determined by employer/ASU

23. Fare Pricing in Other Cities 23 Service Provider City 1 Ride Cash Fare 1-Day Pass Local31-Day Pass Local Dallas$1.75$4.00$65.00 Valley Metro current$1.75 $3.50 $5.25*** $55.00 Valley Metro proposal$2.00 $4.00 $6.00*** $64.00 San Jose$2.00$6.00$70.00 Minneapolis *$2.25NA$85.00 Salt Lake City$2.35$5.75$78.50 Portland **$2.50$5.00$100.00 San Diego$2.50$5.00$72.00 Sacramento$2.50$6.00$100.00 Sources: Transit agency websites (10/12). * Minneapolis – peak time pricing. ** Portland – All zone pricing. *** Valley Metro - The price paid on fixed route buses (farebox)

24. Public Input Participation Online survey and comment system –1,907 visitors to “Fare Change Input” section on ValleyMetro.org –98 participated in the electronic survey Input via mail and email –138 comments received Input via Public Hearings and printed surveys –71 participants Input via Customer Service Phone line –3 registered comments 24