EcoPass Recommendation Operations amp Customer Service Committee September 8 2015 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 ID: 279613
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Slide1
Fare Study
EcoPass
Recommendation
Operations & Customer Service Committee
September 8, 2015Slide2
Fare Study Process
Summer 2014: Fare Study Initiated
First phase was focused on fare structurePricing was incorporated as part of the recommendations for public hearingsSpring 2015: Public HearingsIncluded price increase for EcoPass consistent with the general fare increaseMay 2015: Board Action on Structure & LevelTitle VI concerns were identified for Business EcoPass as part of the equity analysisBoard action did not include EcoPass pricingSeptember 2015: Recommendation for 2016 EcoPass pricing that reduces Title VI risk
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Stakeholder Outreach
36 Commuting Solutions
Douglas County
City of Arvada
Downtown Denver Partnership
AARPDRCOGArapahoe County LCCeGo Car ShareArc of AuroraFRESC/AFTFBoulder Chamber of CommerceJeffco LLCBoulder CountyCity of LouisvilleCity of BoulderLivable Places ConsultingColorado Coalition for the HomelessMi Casa Resource CenterColorado Cross Disability CoalitionMile High ConnectsCU BoulderServicios de la razaCWEEStapleton FoundationCity and County of DenverCity of ThorntonDenver South EDPUS 36 Mayors/Commissioners Coalition
3Slide4
Stakeholder Feedback
Recognition that
EcoPass is a good program coupled with concern that increasing the price will result in fewer participating neighborhoods and businessesFrustration that tap data are not availableConcern that there has not been enough outreach and stakeholder involvement in developing the recommendationsQuestions about the data and math that were used to develop the recommendationsConcern that companies have not budgeted for an 18 percent increase4Slide5
Stakeholder Feedback (
cont
)Desire for an addition to the Business EcoPass matrix to allow for a master contract for low-wage businessesOpportunities to include changes to the Neighborhood EcoPass program as part of the continued affordable fares discussionsThe entire fare study seems like a complicated process that was broken into individual piecesA summary of all of the fare policies and how they fit together would be helpful when the process is complete5Slide6
Recommendation for 2016 Business
EcoPass
ContractsIncrease Business EcoPass contracts by 18.3 percentResults in a projected average fare for EcoPass passengers that is equivalent to the overall average fare projected for 2016EcoPass riders will not be more heavily subsidized than other passengers Eliminate $2.50 upgrade charge for trips to and from DIANo changes to SLA boundaries to incorporate new lines until 2017 contracts6Slide7
Recommended 2016 Contract Prices for Business
EcoPass
7Slide8
Detail Regarding
EcoPass
PricesEcoPass contract prices have not gone up since 2011The per employee price of an annual EcoPass in the Downtown area is comparable to providing a parking pass for 2 – 5 monthsMaximum EcoPass price well below the federal limit of $1,560 per year per employee transit pass tax exclusion of the IRS Commuter Benefits program8Slide9
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 fee9Slide10
Recommendation for 2016 Neighborhood
EcoPass
ContractsIncrease Neighborhood EcoPass contracts by 13.3 percent consistent with the general fare increaseEliminate $2.50 upgrade charge for trips to and from DIAMake a minor update to the survey for new neighborhoods Modify survey so pricing incorporates all participants eligible for half fare discount10Slide11
Title VI Equity Analysis
A review
of the fare equity analysis in May of 2015 revealed Title VI risks for the Business EcoPass programThis recommendation was developed considering those risksPer 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
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Recommendation for Future
EcoPass
PricingBegin pricing EcoPass contracts with utilization data as soon as adequate smart card data are availableRe-evaluate the 2009 Board Policy for utilization pricing as part of a Pass Program Working Group that will include stakeholders from across the districtGoal for future pricing: average EcoPass fare should be equivalent to the overall average fare12Slide13
Revenue Impact
Fare policies adopted in May included an assumption that
EcoPass contracts would increase by 13.3 percentAdditional increase in Business EcoPass contracts would result in approximately $1 million of additional fare revenue per year13Slide14
Next Steps
Send out 2016 contracts with new pricing
Include payment options2016: Convene RTD and Stakeholder Pass Program Working Group to develop recommendations for future pricingDefine goals for pass programsReevaluate 2009 Board Policy for utilization pricing incorporating the new fare structure and average fare analysis Coordinated effort with the Affordable Fares Task Force discussions14