Eco Pass Program Evaluation Update SVLG Transportation Policy Committee October 2012 1 Eco Pass Program Evaluation Evaluation of programs effectiveness First major evaluation of program since inception ID: 141319
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Slide1
Eco Pass Discussion
Eco Pass
Program Evaluation
Update
SVLG Transportation Policy Committee
October 2012
1Slide2
Eco Pass Program EvaluationEvaluation of program’s effectiveness
First major evaluation of program since inceptionRevisit policy objectives of Eco Pass Program
Pressure on transit agencies to achieve efficienciesClipper introduction provides opportunity Opportunity to work with subscribers and future subscribers
2Slide3
3
Alternatives Analysis
Policy & Citizen Input
Peer & Literature
Review
Stakeholders
Surveys
Policy & Goals Development
Operations and Ridership
Alternatives Development
Program Implementation
3
Project StructureSlide4
Eco Pass Program Goals and Objectives
Goals
Attract and retain riders, increase ridershipRevenue neutral
Board-adopted policy of average adult fare, currently $1.53ObjectivesEnsure program is easy to administer and program rules are understandable and understoodGenerate data to understand ridership, usage rates, and value
Minimize opportunities for fraud and abuseLeverage technology to minimize fraud and abuse and to collect ridership and usage data
Provide a program with strong brandingProvide fairness, equity among participating organizations/individuals4Slide5
Data Collection
Peer and Literature Review
- 9 programs interviewed, employer-based
- Other program types: college/university (>60), housing (2+), and student (2)
- Themes: capacity, revenue generation, TDM programs, pricing
Surveys- VTA & Employer-based surveys (19,000 completed surveys) - Usage rates vary dramatically between different types of organizations- Survey data reconciled with ridership tabulations for a “reality check”Ridership - Eco Pass boardings tabulated on bus system- Fare checkers tabulated Light Rail
boardings
over
5-week period (15,569 passengers)
Revenue information
- Revenue data from 2000 to today examined
- Steady decline in revenue per Eco pass boarding
since 2000
Eco Pass makes up a total of 16% of all VTA fare payment
* 13% of all bus
boardings
* 26% of all Light Rail
boardings
Current revenue per Eco Pass boarding:
$0.67 Slide6
6
Eco Pass Utilization by Route
6
Line 23
: 9,773 daily
boardings, 21% Eco PassLine 22: 14,376 daily boardings, 11% Eco PassExpress Buses: 1,645 daily boardings
, 47% Eco Pass
(May 2012)Slide7
7
Program NOT meeting revenue goal
Board-adopted
Revenue Goal of Average Adult Fare ($1.53)
Current Eco Pass revenue per boarding is $0.55
In 2011, Eco Pass was 16% of all VTA ridership, but only 8% of total revenueSlide8
8
ECO PASS ALTERNATIVES
#1
Status QuoNo market distinctions
Pass for every memberMaintain current pricing strategy
#2 Modified Status QuoIntroduce market distinctionsRetain pass for every memberRestructure price matrix; Prices changes regularly to reflect usage; changes phased to achieve revenue goals#3 Usage BasedIntroduce market distinctionsRetain pass for every memberAnnual fees unique to each organization; See fees based on previous year’s usage
NON ECO PASS ALTERNATIVES
#4
Discounted Bulk Sales
Customizable; organizations may purchase different numbers, product combinations
All members eligible, but not required to participate
Future pricing based on actual use
#5
Clipper Direct
Customizable; members not required to participate
Eliminates deep discounting
Pricing determined by products employee chooses to buy
8
AlternativesSlide9
9
Reduce Number of Participant Size Categories from 4 to 3.
Eliminates category for organization of 15,000 or more.Reduce Location Categories from 3 to 2. Within ¼ mile from Rapid service; outside of ¼ mile from Rapid service (Light Rail, BRT, Express Bus).
Stepping. Eliminates loophole in pricing that unfairly provided a discount and encouraged abuse in reporting.
Market-based Pricing. Employer, residential, and college/university programs are priced separately, based on usage.
Transition to Clipper. Should occur over the next 3 years. Addresses lack of data and prevents fraud associated with stickers. Incremental Price Increases. Price increases are capped at 15% per year until the existing subscriber reaches the target price. New subscribers pay the target price. Diversify Pass Offerings. VTA will offer a range of transit pass products including Clipper Direct, Monthly Subscription, Eco Pass and the new Eco Pass Lite bulk discount annual passes.Re-evaluation after 4 years. Pricing matrix and program revisions will be revised in 4 years, allowing Clipper to gain wide spread use, benefitting from resulting data. Recommendation: Modified Status Quo
Recommendation focuses on eight main program areas for modificationSlide10
10
10
Reduce # of Participant Size Categories from 4 to 3:
1 to 99; 100 to 2,999; 3,000+. Existing 15,000+ category dropped.
Recommendation: Organizations by Category
LocationSize:1 to 99Size:100 to 2,999Size:3,000 to 14,999Size:15,000+Downtown San Jose
0
0
0
1
≤ ¼ mile of light rail
1
0
0
0
>
¼ mile from light rail
0
4
0
1
Location
Size:
1
to
99
Size:
100
to
2,999
Size:3,000 to 14,999
Size:15,000+Downtown San Jose
630
0≤ ¼ mile of light rail
178
61
> ¼ mile from light rail1618
0
1
Location
Size:1 to 99
Size:
100
to
2,999
Size:
3,000
to
14,999
Size:
15,000+
Downtown
San Jose
0
1
0
0
≤ ¼ mile of light rail
2
5
0
0
>
¼ mile from light rail
10
9
0
0
Employers
Residential
Colleges/UniversitiesSlide11
11
Reduce Location Categories from 3 to 2:
Within ¼ mile from Rapid service; outside of ¼ mile from Rapid service. Rapid service is defined as light rail, BRT, and Express services. Existing Downtown San Jose category dropped.
11
Recommendation: LocationSlide12
12
Stepping
: Each organization would pay the price per employee from the first step for its first 99 employees, then the per employee price from the second step for employees 100-2,999, etc.
Recommendation: Stepping
Total Cost
Total Cost
Number of employees
Number of employees
Existing Pricing
Stepped PricingSlide13
13
Current
1-99
100-2,999
3,000-14,999
15,000+
Downtown San Jose
$144
$108
$72
$36
≤ ¼ mile of light rail
$108
$72
$36
$18
¼ mile of light rail
$72
$36
$18
$9
13
Residential
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$240
$180
$120
¼ mile of rapid service
$200
$150
$100
University
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$108
$76
$54
¼ mile of rapid service
$85
$65
$45
Employer
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$144
$84
$44
¼ mile of rapid service
$72
$48
$30
Recommendation: Price Matrix Changes
Pricing based on new categories and usage:
Adopt changes to fees based on different usage rates among the 3 distinct categories of Eco Pass subscribers. Slide14
14
Colleges/Universities and Affordable Housing -- prioritize ridership over revenue?
Offer the same discount as Youth pass: 36% (based on monthly pass cost of $45 instead of $70 for Adults)
Results in a $1.2M (12%) reduction in total revenue
Alternative Price Matrix Proposal
Residential
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$240
$180
$210
¼ mile of rapid service
$200
$150
$100
University
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$108
$76
$54
¼ of rapid service
$85
$65
$45
University
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$69
$49
$35
¼ of rapid service
$55
$41
$29
Residential
1-99
100-2,999
3,000+
≤ ¼ mile of rapid service
$154
$115
$91
¼ mile of rapid service
$128
$96
$64
Proposed Pricing
Proposed Alternate
PricingSlide15
15
Transition to Clipper:
Within 3 years all Eco Pass subscribers will be transitioned to Clipper cards with an identifying photo ID. This will reduce fraud and allow VTA and Eco Pass administrators to track usage data.
Recommendation: Clipper Transition and Incremental Price Increase
15
Cap price increase at 15% per year: While some subscribers may face an increase of over 100%, others will have no increase at all. Cap price increases at 15% per year to allow predictability and adverse impacts.
22 subscribers will see no change to their fees
38 subscribers will take 7 years or longer to meet new price point
49 subscribers will reach the new price point within 6 yearsSlide16
16
16
Recommendation: Diversify Discount Pass Offerings
Offer a range of transit products to meet the needs of all organizations / populations:
Clipper Direct, annual subscription, monthly pass, Eco Pass and Eco Pass Lite
lite
ec
pass
ec
passSlide17
17
17
Recommendation: Reevaluation in Year 4
Implementation
: The implementation strategy is designed to introduce changes gradually and collect data through Clipper usage. After 4 years, the program will be reevaluated.
2013
Adopt Eco Pass program modifications
Implement program changes in Fall 2013
2014 – 2016
15% maximum annual price increase
Develop new marketing materials, new subscribers subject to new charges
2016/2017
Reevaluation of program pricing and modifications, using available data from widespread Clipper utilization
Review pricing and other modifications, consider changes to programSlide18
18
Eco Pass Revenue Expectations
Year 0
Year 1
Year 2
Year 3
Year 4
Board-Adopted Policy of Average Adult Fare
$3.9M
$4.4M
$5.1M
$5.7M
$6.2M
Adopt new revenue policy for colleges/universities and affordable housing
$3.9M
$4.3M
$4.7M
$5.1M
$5.6M
Status quo
$3.9M
$3.9M
$3.9M
$3.9M
$3.9MSlide19
19
19
Boardings
vs. Revenue
(from Eco Pass organizations)Slide20
20
20
Title VI Analysis
Subscriber outreach
January 1
, 2014 – Phase 1 of implementation (with incremental increases as appropriate)2016/2017 – next evaluation (for CY 2018 implementation)Based on improved data collected through Clipper implementation or annual surveyNext Steps
20Slide21
21
21
END
21Slide22
22
Schedule
22
2012
2013
2014
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Tasks 1-6
Existing Conditions
Task 7
Alternatives Development
Task 8
Alternatives Assessment
Task 9
Implementation
Task Force Meetings
Title VI and Other Stakeholders input
VTA Committees and Board
Implement proposed changes