STAFF REPORT

Town Council, December 15, 2011

C-Tran Fixed Route Service Fare Adjustments (PL12-014a)

Consideration of scheduling three public input forums and an advertised public hearing on December 15, 2011 to receive input on adjusting C-Tran’s fixed route service fare structure to be more consistent with other local transit providers in the region

Speaker: Mr. Ray Boylston

From: Jeffery G. Ulma, AICP, Planning Director

Prepared by: Ray S. Boylston, Transit Services Administrator

Approved by: Benjamin T. Shivar, Town Manager

Approved by: Michael J. Bajorek, Assistant Town Manager

Executive Summary: Staff requests that the Town Council set a public hearing for December 15, 2011 to receive comments on proposed changes to the C-Tran fare structure. The changes to the fare structure are being proposed to more closely align C-Tran fares with those of other transit system such as Raleigh’s Capital Area Transit, Triangle Transit and Durham Area Transit Authority. The timing of the fare adjustment is being made to coincide with the installation of electronic fare boxes on the C-Tran fixed route buses.

Discussion: C-Tran staff and other transit providers in the Triangle Region have been developing a unified fare policy to reduce confusion for those passengers traveling throughout the Triangle. Capital Area Transit (CAT) in Raleigh and the Durham Area Transit Authority (DATA) have already aligned their fare structures and staff has developed a proposed fare structure that similarly aligns the C-Tran fare structure with these other transit providers.

C-Tran is also in the process of purchasing electronic fare boxes to be installed on the fixed route buses which must be programmed with our fare structures. The adjustment to the fare structure is being timed to coincide with the installation and programming of the new fare boxes.

Staff has provided a description below of the current C-Tran fixed route fare structure and proposed C-Tran fare structure. Notes are included to indicate whether or not it is the same or different than CAT and DATA.

Staff recommended adjustments to C-Tran’s fare structure are as follows:

A. Eliminate transfers (riders making a one way trip that involves a transfer will be required to purchase a $2 Day Pass or pay a $1 cash fare on each bus). This is consistent with both CAT and DATA. Currently, transfers are free between adjoining routes at official transfer points which has been confusing to passengers and difficult for drivers to enforce.

B. C-Tran riders age 65 and over, and children 12 and younger, will ride for free (ID requirements will apply). Disabled passengers do not ride for free. This is consistent with both CAT and DATA.

Note: Already approved C-Tran seniors aged 60 to 64 will be eligible. All new applicants will be eligible at age 65.

C. The 11 Ride Pass will be replaced by a 5-Day Pass costing $8.50 for regular passengers and half-price ($4.25) for disabled). This is consistent with both CAT and DATA.

D. The $30 Monthly Pass (good for the calendar month of purchase only) will be replaced with a $36 31-Day Pass ($18 for eligible disabled riders) good from the day activated for 31 days. This is consistent with both CAT and DATA.

E. The base fare of $1.00 per ride is not scheduled to change. This is already consistent with both CAT and DATA. C-Tran certified disabled riders will be able to ride for $.50 per trip all day.

F. In adherence with the requirements of the federal Americans with Disabilities Act and consistent with the current fare structure, all types of passes will be sold to those registered C-Tran disabled passengers and those passengers presenting a U.S. Medicare Card for half price.

G. C-Tran passengers that have our current tickets will be allowed to use them through the end of March 2012. On April 1, 2012, C-Tran will no longer accept the older version tickets.

The financial impact of the fare adjustments to the C-Tran system is expected to be minimal. Based on CAT, DATA, and Triangle Transit’s experience, the elimination of transfers will result in cost savings of $15,000 per year. Costs necessary to keep transfer tickets stocked is considerable, in addition to the associated additional electronic farebox maintenance costs caused by the frequent use of transfer tickets on these devices. The addition of fare free service to youth 12 years of age and younger, and Seniors 65 years of age and older, will have a minimal negative impact on fare revenues as less than 1% of riders are age 16 or younger based on information obtained from recent passenger surveys. The new fare structure also provides an incentive to seniors to ride the free fixed route system rather than the more costly door-to-door system. Based on recent C-Tran ridership surveys, approximately 3.7% of all fixed route passenger trips are provided to seniors age 65 or older with an additional 4.3% of fixed route riders between 60 and 64. Thus, under the proposed fare recommendations, the Town could experience an 8% reduction in revenues from these passengers. However, if seniors take 4,000 additional trips a year on the fixed route service instead of our more costly Door-to-Door services as a result of the free rides, then the Town would realize about $40,000 in net savings.

The only anticipated negative impact on passengers may be on passengers traveling one-way with a transfer and the additional cost of a 31-Day Pass which is $6 more than the current Monthly Pass. Staff estimates that less than 5% of all trips are “one-way” trips with a transfer. Staff will carefully evaluate the effects of these fare policy changes on a monthly basis to ensure the impacts of these adjustments is reflected in FY13 budgeted revenues and expenses.

Prior to implementing the proposed fare structure changes, staff proposes a process to obtain citizen feedback. During the month of November, 2011 staff will conduct three public forums to obtain feedback. As a final step, and in conformance with Federal Transit Administration regulations, Council is requested to schedule a public hearing for December 15, 2011 after which Council may approve, modify or deny the proposed fare structure. If approved and based on the status of the installation of the new electronic fareboxes, staff anticipates that the new fares will be implemented in February, 2012.

Public Participation Summary:

Staff met with the Mayor’s Task Force for Persons With Disabilities on November 9, 2011 and provided a detailed presentation on the proposed fixed route fare adjustments. The Task Force unanimously voiced support for all of the proposed fare changes.

In addition, staff met with approximately 12 passengers between 7:00 a.m. and 9:00 a.m. on November 17, 2011 and gathered feedback on the fare changes. When talking with the passengers, some of them were initially against the change from the monthly pass to the new 31 day pass with a $6 increase over the current $30 monthly pass. However, when they gained a better understanding of the benefit of the fact that the 31 day pass can be purchased at any time of the month and is only activated from the first day used on the bus, then they were satisfied with the change as they realized it provided more flexibility.

On November 21, 2011, staff gave a presentation to approximately 40 residents from Highland Village Retirement Community and provided time for questions and answers. At the end of this feedback process, residents unanimously voiced their support for the proposed fare adjustments.

Staff also distributed over 600 summary sheets of the proposed changes on all fixed route buses to existing passengers. They were highly encouraged to contact transit staff with any questions or feedback about the proposed changes. Staff only received one call from a passenger who had a few questions about the changes and did not voice any concern. In addition, 100 copies of the summary were also provided in Spanish.

Fiscal Impact: The proposed fare structure is not expected to adversely impact C‑Tran revenues. C-Tran fixed route passenger revenues for the first quarter of FY12 were approximately 28% higher than budgeted as a result of continued growth in fixed route ridership. Staff anticipates this increase to at least remain the same for the second quarter. Any decrease in passenger revenues as a result of the proposed free rides for seniors and children age 12 and younger is expected to be significantly offset by the increase in revenues generated by the growth in ridership.

Staff Recommendation:

1) Approve staff to proceed with implementation of the proposed fare changes for C-Tran’s fixed route service effective upon the completion of the installation and training related to the new electronic fareboxes anticipated for February 2012.

2) Hold the public hearing at the December 15, 2011 council meeting on the fare structure changes after which the council may take action on the new fare structure.