Proposed Fare Adjustments Public Meetings October 17, 2017 12 noon - - PowerPoint PPT Presentation

Proposed Fare Adjustments Public Meetings

October 17, 2017 12 noon October 18, 2017 12 noon & 6pm October 19, 2017 6pm

2

MEETING PURPOSE Thank you for joining us and participating in this community discussion. The purpose of this meeting is to take public comments and answer questions on proposed fare adjustments that would be effective on Monday, January 1, 2018. No final decisions have been made.

3

MEETING FORMAT Be considerate of meeting attendees and COTA staff. Please silence cell phones. We welcome questions at the end of the presentation.

• Please raise your hand, so that we may call on you.
• Ask one question at a time.
• Questions and comments are limited to two (2)

minutes per person. Participants are encouraged to complete comment cards. Please print clearly.

4

COTA FARE POLICY

• COTA has a responsibility to operate with and manage taxpayer

funds in a prudent and sound manner.

• A system-wide fare recovery goal of 20% was adopted in 2009.
• As described in COTA’s Long Range Transit Plan, fares are

evaluated every three years.

• COTA fares were last adjusted on January 1, 2012.
• The increase proposed for 2015 was not adopted.
• COTA will conduct a public information and comment process prior

to recommending fare adjustments to the Board of Trustees.

Full policies available at COTA.com/policies/fare-change-policy

5

COTA STAKEHOLDERS

Taxpayers

COTA’s Service Area population 1.3 million

Customers

60,000 weekday trips 18 million annual trips

Employees

Approximately 1,000

COTA Management

FARE ANALYSIS

7

FARE ANALYSIS

• An independent evaluation of COTA’s current fare structure was

completed, including a peer agency comparative analysis.

• Preliminary fare structure options have been identified.
• Next steps:
• Consider input from the public
• Identify structures to be evaluated based on Board and staff input
• Evaluate potential ridership and revenue impacts
• Refine alternatives
• Perform a Title VI analysis
• Make a recommendation to the Board of Trustees

8

SUMMARY OF INDEPENDENT EVALUATION

• COTA’s fare structure is in the general range of its peer transit

agencies, in terms of:

• Fares related to class of service – Frequent/Standard; Rush Hour;

Mainstream

• Transfer availability and validity
• Methods of payments
• Special fares
• Fare media
• The target fare recovery rate of 20% is within the range of 15%-30%

for our peer transit agencies. Much of this range is due to local financial or policy choices, rather than specific system characteristics.

• COTA’s pass program is broadly representative of its peers and is

appropriate to its size.

9

HISTORY OF COTA’S LOCAL BUS BASE CASH FARE

$0.50 $0.74 $1.26 $1.38 $1.59 $1.80 $2.04 $2.21 $2.33 $2.48 $0.50 $0.60 $0.75 $1.00 $1.10 $1.25 $1.50 $1.75 $2.00 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Local Fare Inflated from 1974 Nominal Local Fare

10

FARE STRUCTURE CONSIDERATIONS

• Flatten the structure
• Fewer distinct classes of service, as a result of service changes (TSR)

and new services (CMAX Bus Rapid Transit)

• Reduce potential for customers paying more for a trip because of their

choice of fare media (cash or pass)

• Take advantage of and stay within the capabilities of the new fare

collection system

• Future-proof for planned transition to mobile application payment and

“tap-on” smartcards

11

FARE LEVEL CONSIDERATIONS

• Ensure that transit users pay a fair and reasonable portion of the

total cost of providing transit service (goal of 80 percent taxpayer support / 20 percent farebox recovery from customers)

• Maintain affordability for customers
• Cover the costs associated with providing service and continuing

service growth and improvements

• Match fares and farebox recovery rates with peer and other Ohio

transit agencies

• Apply adjustments uniformly across the entire fare structure, as

practicable

12

FAREBOX RECOVERY RATES* IN PEER AND OHIO CITIES (2015)

COTA Peers and Ohio Systems (2016) Other Similar Systems (2016)

Cincinnati 33.6% Buffalo 32.7% Orlando 29.7% Milwaukee 27.3% Charlotte 25.9% Toledo 24.9% Providence 22.1% Cleveland 21.3% Hartford 20.7% Indianapolis 18.9% Columbus (2017 Projection - 14.2%) 18.8% Louisville 18.5% Dayton 18.1% Jacksonville 15.4% Average without COTA 23.8% Median without COTA 22.1% Rochester 35.8% Broward 31.4% Tampa 23.5% Tucson 20.9% Columbus (2017 Projection - 14.2%) 18.8% Norfolk 18.6% Average without COTA 26.0% Weighted average without COTA 24.3%

* For directly operated buses, not including paratransit services

13

LOCAL BUS FARES FOR COTA PEERS AND OHIO TRANSIT SYSTEMS

City Base Fare Differences (fleet, size, ridership and service) Cleveland $2.50 (free transfer) Larger and multimodal Milwaukee $2.25 (cash, no transfer) – $1.75 (smart card, free transfer) Higher service intensity Buffalo $2.00 (no transfer) Multimodal and lower service intensity Providence $2.00 + $1.00 transfer Lower service intensity Columbus $2.00 (free transfer) Orlando $2.00 (free transfer) More boardings and longer trips Indianapolis $1.75 (no transfer) Smaller Cincinnati $1.75 + $0.50 transfer + $0.90

• utside city

Dayton $1.75 + $0.25 transfer Smaller Hartford $1.75 (free transfer) Lower service intensity Jacksonville $1.50 (no transfer) Smaller and longer trips Akron $1.25 (free transfer) Smaller Toledo $1.25 (free transfer) Smaller

14

FARE ANALYSIS CONCLUSIONS

• A general fare increase is overdue in terms of both timing and cost

recovery

• COTA’s fare recovery is now at the low end of the range for peers and

similar systems

• Increases in service since 2011 have not been met with corresponding

demand growth

• It is too early to gauge the demand effects of the Transit System

Redesign (TSR), but if projections are realized, cost recovery will be below goal (about 14%)

• Attention should focus on preventing further loss in fare recovery and
• n achieving goals for the structure (e.g. flattening and future-proofing)

FARE ANALYSIS

16

PRELIMINARY FARE STRUCTURE OPTIONS Goals:

• Maintain planned service levels
• Improve systemwide fare recovery from the estimated 14.2% for

2017

Options:

• Option 1: Target for a 20% system-wide fare recovery, per 2009

board policy

• Option 2: Target for an 18% system-wide fare recovery, based on

taxpayers’ share of operating costs of 82 percent

17

PRELIMINARY FARE STRUCTURE OPTIONS Features Proposed for All Options

• Guaranteed Lowest Fare

Similar to a frequency-based discount, this would guarantee riders the lowest fare for which they are eligible based on the extent of the usage of their fare cards.

For example, if a day pass is $5 and the rider has paid $5 in fares within a 24 hour period, the rider would not pay a fare for additional trips taken in the remainder of the 24 hour period.

• End Express Upcharge

This would “flatten” COTA’s fare schedule and make all bus fares consistent across all express (Rush Hour) and local (Frequent/Standard) lines.

• 2-Hour Round Trip Ticket

This would allow a customer to pay one fare for a 2-hour period, making all transfers free including round trips.

18

PRELIMINARY FARE STRUCTURE OPTIONS

*The AirConnect fares listed are the on-board cash fares. Passes will be accepted at their normal rate. ** Transfers will be valid in all vehicles for 2 hours regardless of direction of travel. Fare Structure Current Option 1

• Est. 20%

Fare Recovery Option 2

• Est. 18%

Fare Recovery Single Fares Standard & Frequent $2.00 $2.75 $2.50 Rush Hour (Express) $2.75 $2.75 $2.50 AirConnect* $2.75 $2.75 $5.50 Transfer** Free Free Free CBUS Free Free Free Senior, Child, Key $1.00 $1.35 $1.25 ADA Card Free Free Free Passes 31-day Standard & Frequent $62.00 $86.00 $82.00 31-day Rush Hour $85.00 $86.00 $82.00 31- day Senior, Child, Key $31.00 $43.00 $41.00 7-Day Standard & Frequent $25.00 $34.00 $31.00 Standard & Frequent Day $4.50 $6.25 $5.50 Discount Day Pass $2.25 $3.00 $2.75 Mobility Services ADA Mainstream $3.50 $4.75 $4.50 ADA Mainstream Monthly $105.00 $146.00 $135.00 Non-ADA Service $5.00 $7.00 $6.00

19

Fare Structure Current Option 1

• Est. 20%

Fare Recovery Single Fares Standard & Frequent $2.00 $2.75 Rush Hour (Express) $2.75 $2.75 AirConnect* $2.75 $2.75 Transfer** Free Free CBUS Free Free Senior, Child, Key $1.00 $1.35 ADA Card Free Free Passes 31-day Standard & Frequent $62.00 $86.00 31-day Rush Hour $85.00 $86.00 31- day Senior, Child, Key $31.00 $43.00 7-Day Standard & Frequent $25.00 $34.00 Standard & Frequent Day $4.50 $6.25 Discount Day Pass $2.25 $3.00 Mobility Services ADA Mainstream $3.50 $4.75 ADA Mainstream Monthly $105.00 $146.00 Non-ADA Service $5.00 $7.00 *The AirConnect fares listed are the on-board cash fares. Passes will be accepted at their normal rate. ** Transfers will be valid in all vehicles for 2 hours regardless of direction of travel.

PRELIMINARY FARE STRUCTURE OPTIONS

20

Fare Structure Current Option 1

• Est. 20%

Fare Recovery Option 2

• Est. 18%

Fare Recovery Single Fares Standard & Frequent $2.00 $2.75 $2.50 Rush Hour (Express) $2.75 $2.75 $2.50 AirConnect* $2.75 $2.75 $5.50 Transfer** Free Free Free CBUS Free Free Free Senior, Child, Key $1.00 $1.35 $1.25 ADA Card Free Free Free Passes 31-day Standard & Frequent $62.00 $86.00 $82.00 31-day Rush Hour $85.00 $86.00 $82.00 31- day Senior, Child, Key $31.00 $43.00 $41.00 7-Day Standard & Frequent $25.00 $34.00 $31.00 Standard & Frequent Day $4.50 $6.25 $5.50 Discount Day Pass $2.25 $3.00 $2.75 Mobility Services ADA Mainstream $3.50 $4.75 $4.50 ADA Mainstream Monthly $105.00 $146.00 $135.00 Non-ADA Service $5.00 $7.00 $6.00

PRELIMINARY FARE STRUCTURE OPTIONS

*The AirConnect fares listed are the on-board cash fares. Passes will be accepted at their normal rate. ** Transfers will be valid in all vehicles for 2 hours regardless of direction of travel.

21

FARE STRUCTURE CHANGE ACTIVITIES

• Oct. 3 - Nov. 3: Public Comment Period – accept and consider

public input

• Oct. 17 - 19: Public Meetings on fare structure alternatives
• Oct. 19: Board Finance Committee – summarize preliminary public

input and discuss options in greater detail

• Oct. 25: Board of Trustees – provide summary of public input and

discussion of Finance Committee

• Nov. 8: Board Finance Committee – Present public input results and

discuss recommendations to full Board

• Nov. 15: COTA Board of Trustees – present Finance Committee

recommendations and approve 2018 fare structure

• Jan. 1: Implement new fare structure

22

PUBLIC COMMENT PERIOD (OCT 3 – NOV 3) How to offer comments:

• Comment cards at public meetings
• Call (614) 228-1776
• Online contact form at COTA.com/contact
• Facebook: Post on COTABus profile
• Twitter: Tweet at @COTABus
• Write to us at:

Central Ohio Transit Authority Attention: Fare Adjustment Public Comments 33 N. High St. Columbus, OH 43215

QUESTIONS?

Thank you for joining us!