RTD Pass Program Portfolio:The Current State

An Overview of RTD Pass Programs June 6, 2017

Outline

1. The Budget

2. Pass Programs By The Numbers

3. Equity

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

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 increaserevenue in response to actual or forecasted increases in operation andmaintenance costs.

• An objective is to minimize the ridership loss involved in fareincreases.

• Operating costs are identified and forecasted through:• Strategic Budget Plan (SBP) • FasTracks Annual Program Evaluation(APE)

Purpose of the SBP Provides overall guidance for RTD Base Systemservice delivery, debt, and capital expenditures • Six year capital and operating plan• Identifies anticipated revenues and expenditures• Must be financially constrained (balanced budget)

• DRCOG six-year Transportation Improvement Program (TIP)• RTD Annual Budget• Long-term Financial Plan

Provides input for other planning efforts

• Fiscal Sustainability• Workforce/Human Capital• State of Good Repair

Aligns with Board top strategic goals for 2018

Incorporates approved performance measures

Sets target for development of fund balances

5

Overview of the SBP

SBP includes only serviceand projects funded from the Base System 0.6%

sales and use tax

FasTracks expenses and projects are included in theFasTracks 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

2018 – 2023 SBP Development Process

2017-2022 SBP capitalprogram used as baseline for current SBP • Start with projects approved

in 2017–2022 SBP • Existing projects with costs in

future years are rolled intothe current cycle 2018-2023 SBP

• Requests for new projects are brought into current cycle2018-2023 SBP

• Projects are prioritized andevaluated using missionstatement criteria and 2018 strategic goals

Revenue forecasts updated to

incorporate mostrecent available

information .06% sales/use tax +fare revenue + grants

Ongoing operatingcost forecasts

updated to 2017Budget, using current

information and current cost trends

7

Annual Program Evaluation (FT)

8

Comprehensive annualevaluation process forthe FasTracks program

Same time period as SBP

Provides overall guidance for FasTracks

build-out, servicedelivery, debt, and capital

expenditures

Provides input for otherplanning 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

Fare Revenue Targets 2016Financial Plan

Forecast Farebox Revenues - 2018-2023 (thousands of dollars)

Year Base FasTracks Total

2018

2019

2020

2021

2022

2023

$117,520

$129,272

$129,272

$129,272

$142,199

$142,961

$36,172

$44,013

$46,061

$47,454

$53,647

$55,146

$153,692

$173,285

$175,333

$176,726

$195,846

$198,108

Deferred Projects • Below is a sample list of projects deferred through the SBP process.

Deferred Projects Estimated Cost

North Boulder Park-n-Ride and Bus Transfer Center $3.3 million

I-25 & Broadway Infrastructure Improvements $9 million

RouteMatch Software Replacement (Access-a-Ride) $2 million

Support and Service Vehicles (e.g. tow trucks) $3.8 million

Parking Structure @ Mineral Park-n-Ride $11.2 million

Bus Wash Replacement @ East Metro $1.6 million

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

Current Fare Structure

Legend: Full Fare/Discount Fare

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/$49 $1,881/$935 Included in Regional Fare

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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

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Cash $49,315,763

36%

Business EcoPass - Individual $26,471,142

19% Monthly Pass $23,700,015

17%

CollegePass $13,943,286

10% 10-Ride Tickets $13,098,850

9%FlexPass (Monthly Pass)

$3,789,209 3%

Nonprofit Program $3,747,563

3%

Day Pass Books $1,769,371

1%

Business EcoPass - Master Contracts (6 Contracts)

$1,150,679 1%

Neighborhood EcoPass $1,045,391

1%

MyRideStored Value $338,264

0%

Fare Revenue Breakdown (2016) $138,369,533

Pass Programs – Portfolio Summary PASS PROGRAM REVENUE (2016)

1. CollegePass $50,147,270

2. EcoPass a) Business EcoPass

CollegePass, $13,943,286 , 28%

b) Neighborhod EcoPass (NECO)

c) Master Contract EcoPass Business EcoPass -

Individual , $26,471,142 , 53%3. Flex Pass

4. Nonprofit

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%

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Pass Programs – Portfolio Summary

Number of Participating OrganizationsPer Program

-

200

400

600

800

1,000

1,200

1,400

1,600

NUM

BER OF PA

RTICIPAN

TS

Series1

EcoPass - Master Contracts (6 Contracts) 1,579

EcoPass -Individual

751

Nonprofit Program

309

FlexPass

260

Neighborhood EcoPass

55

CollegePass

9

PASS PROGRAMS

CollegePass $13,943,286

10%

Other Media $124,426,247

90%

College Pass COLLEGE PASS (2016)

• An annual program based on a school year that allows students to utilize all of RTD’s regular services including trips toand from the airport

• The student receives a photo ID smart card

• CU Boulder and Auraria priced fromridership data (prior to smart card).

• All other schools per student per semesterfees determined by survey.

• Cost is passed to students via tuitions andfees.

• Each school determines eligibility - e.g. Some schools may only include full time students. Program

# of Participants

# of Eligible Passes

Revenue Per Pass

College Pass 9 200,000 $69.72

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 theinformation 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

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 includedwith the option to include or exclude allpart time employees

• Guaranteed Ride Home is included with the EcoPass program

ECOPASS REVENUE (2016) BusinessEcoPass

- Individual $26,471,142

19%

Other Media $111,898,391

81%

# of Eligible Revenue Program Participants Passes Per Pass

Business EcoPass - 751 112,953 $234.36 Individual

2017 Ec o Pass Pr ic ing SLA

(business location)

Contract Minimum

Employees Per Year

Price Per Employee Per Year 1 - 24

employees 25 - 249

employees 250 - 999 employees

1,000 - 1,999 employees

2,000+ employees

A 1 - 10 $1,150 $98 $85 $75 $64 $6011 - 20 $2,300

21 + $3,448 Outer Suburban

B 1 - 10 $2,108 $209 $189 $173 $160 $15111 - 20 $4,215

21 + $6,322 Major Transit Centers

C 1 - 10 $2,874 $532 $493 $470 $459 $43411 - 20 $5,748

21 + $8,621 Downtown Denver CBD

D 1 - 10 $2,874 $544 $522 $483 $470 $44511 - 20 $5,748

21 + $8,621 DIA and home businesses

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.

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

Neighborhood EcoPass (NECO) NECO PASS REVENUE (2016)

Neighborhood EcoPass,

$1,045,391 , 1%

Other Media $137,324,142

99%

• 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/neighborhoodassociation

• There is an annual per household price, prepaid by neighborhoods

• Any new neighborhoods, or additional blocks to existing neighborhoods after 2009are surveyed to determine the perhousehold pricing.

# of Eligible Revenue Program Participants • There are 3 pricing zones in Boulder for Passes Per Pass neighborhoods that joined before 2009. Neighborhood 55 13,390 $78.07 • There are additional rules related to new EcoPass developments and contract minimums.

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

EcoPass Master Contract

• 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 allemployers within its boundaries

ECOPASS MASTER CONTRACTS (2016)

BusinessEcoPass - Master Contracts (6 Contracts)

$1,150,679 1%

Other Media $137,218,854

99%

# of Eligible Program Participants Passes Revenue Per Pass

Business EcoPass -Master Contracts (6 1,579 8,450 $136.18

Contracts)

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

FlexPass (Monthly Pass) $3,789,209

3%

Other Media $134,580,324

97%

FlexPass FLEXPASS REVENUE (2016)

• An annual pass program that can becustomized to meet the needs of the employer and employees offering up tothree different discounts. Employer canchose one, two or all three

• RTD works with companies to select theplan that fits best

• The company will sign a revolving contract

• Some or all of the employees mayparticipate (opt-in model)

• Employees place monthly orders and employers approve each month # of # of Eligible Revenue Per Program Participants Passes Pass • Prepaid per monthly order

• Monthly passes are mailed to employees FlexPass (Monthly Pass) 260 31,693 $119.56 or business prior to the month of usage

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

Nonprofit Program

• Nonprofit and government agenciespurchase Day Pass ticket books, 10Ride ticket books and monthly passesat a 50% Discount

• Agencies can recover 100% thediscount 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 (2016)

Non-Profit Program $3,747,563

3% Other Media, $134,621,970

, 97%

Passes Face Value

Net Sales Amount (50%)

10-Ride Tickets $ 2,474,518 $ 1,237,259

Day Passes $ 228,054 $ 114,027 Monthly Passes $4,792,554 $2,396,277

Total $7,495,126 $3,747,563

% of Total

Revenue Per Pass/Ticket

33% $9.96

3% $11.74 64% $38.36

100%

Monthly Revenue Per Pass

$180.00

$160.00

$140.00

$120.00

$100.00

$80.00

$60.00

$40.00

$20.00

$0.00

Monthly Revenue Per Pass

MonthlyRevenuePer Pass

CollegePass Neighborhood EcoPass - EcoPass - Nonprofit Local Monthly Regional Local Monthly FlexPass Regional EcoPass Master Individual Program Discount Monthly Monthly

Contracts Business Discount $5.81 $6.51 $11.35 $19.53 $38.36 $49.00 $85.00 $99.00 $119.56 $171.00

% of Local Monthly Pass Price - $99 % of Regional Monthly Pass Price - $171

EcoPass -EcoPass Master NECO CollegePass FlexPass Nonprofit 19.73% 11.46% 7% 6% 121% 39% 11% 7% 4% 3% 70% 22%

Fare Use - 2015 On-Board Survey*

*Fare structure and media changed in 2016

Tap Data

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 2014-2016 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.

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.

Tap Data – 2014 2014 College ECO NECO Total

Total Recorded Trips 4,876,375 7,272,073 458,175 12,606,623 Local^ 3,599,789 3,336,552 307,713 7,244,054

Express^ 632,074 1,872,283 28,731 2,533,088

Regional^ 554,172 1,147,072 105,425 1,806,669

Airport^ 90,340 916,166 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

Tap Data – 2015 2015 College ECO NECO Total

Total Recorded Trips 4,690,622 7,522,204 495,761 12,708,587

Local^ 3,605,536 3,589,237 348,206 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^ 92,859 982,493 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

Tap Data – 2016

2016 College ECO NECO" Total

Total Recorded Trips 4,693,320 7,978,810 478,726 13,150,856

Local^ 3,641,434 4,528,721 337,719 8,507,874

Regional^ 955,128 2,586,757 120,396 3,662,281

Airport^ 96,758 863,332 20,611 980,701

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

Data Provided to the Consultant • Boarding data from fareboxes by service class, by route, and by time-period (peak/off-peak) 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

Equity An overview of RTD’s view of fare equity

Equity The Federal Transit Administration (FTA) requires an equity analysis of any farechange per Title VI of the Civil Rights Act of 1964 and Environmental Justice(E.O. 12898). 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 byminority 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.

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…

Questions