STAFF REPORT

Operations Committee, April 30, 2008

C-Tran Fare Increases and Door-to-Door Service Charges (PL08-025a)
Consideration of fare increases, service changes and public participation for C-Tran’s door-to-door transit services
Speaker:  Mr. Ray Boylston
 

From:  Jeffery G. Ulma, AICP, Director, Planning Department
Prepared by:  Ray S. Boylston, Transit Services Administrator
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

BACKGROUND

Staff Report PL08-025 was presented to the Operations Committee at the March 3, 2008 meeting.  This staff report is a follow-up report that provides a final recommendation on the proposed fare changes and service policies regarding C‑Tran’s door-to-door transit services for senior citizens and persons with disabilities.  The recommendations included in this report are based on the completion of staff’s public participation process with citizens and passengers.

INTRODUCTION

Since the Town of Cary began providing door-to-door transit services for seniors and persons with disabilities in 2001, the passenger fare structure of $2 per one-way passenger trip and an off-peak (10 a.m. to 3 p.m.) rate of $1 per one-way trip have not changed.  Over this time period, fuel and contract costs (maintenance, operations, staffing, technology, vehicle needs and facility lease) have increased. In order to offset some of the rising costs associated with the door-to-door transit services, a newly structured fare system and service delivery program has been developed by staff for Council’s consideration and approval effective July 1, 2008.

Per the Town Council’s Operation Committee approval on March 3, 2008, a public participation process to allow citizens and users of the system to comment on the proposed service and fare changes was completed on March 18, 2008 (two sessions) and on April 9, 2008 (two sessions) to meet Council’s recommendation and the Federal Transit Administration (FTA) requirements for public feedback.  Information on the public meetings was conveyed to passengers and the public through the following means: flyers describing the meetings were distributed on the vehicles to passengers, a Notice of Public Meeting was included in the Cary News on April 2, 2008, and letters from the Transit Services Administrator were sent to all C‑Tran door-to-door passengers that have used these services over the past six months describing the proposed changes.

A total of twenty-one citizens attended the four sessions offered to citizens and passengers.  Staff provided a thorough presentation to all attendees, explaining in detail the proposed changes.  Staff also provided ample time following the presentation for questions, answers and feedback.  In addition, staff received two e‑mails and three phone calls concerning the changes.  Overall, customers understood that the cost of the provisions has increased dramatically over the past seven years.  A summary of the common themes that staff received from customers is provided below:

1.   Some financially disadvantaged individuals who utilize the door-to-door services during the off-peak discount rate timeframe from 10 a.m. to 3 p.m. would be most adversely affected.

2.   Some seniors on fixed incomes would be adversely affected by the proposed rate.

3.   Out-of-town trips may negatively impact those persons with disabilities who work part-time by decreasing their net income after transit expenses.

4.   Some attendees asked that the Town provide a safety-net mechanism of funding when individuals have been identified who are financially disadvantaged to prevent these individuals from being homebound.

5.   The vast majority of attendees agreed with the age-criteria change from 55 to 60 years of age as the new age requirement.

The public was also provided information on a comparison of C-Tran’s door-to-door passenger costs compared to the City of Raleigh’s Accessible Raleigh Transportation (ART) Program for those individuals that live outside the ¾ mile corridor of the fixed route services in both communities.  For a five mile trip, a C-Tran passenger in our proposed Tier II service (trips not wholly within the ¾ mile corridor of the fixed routes) would spend $4 per one-way trip.  Under the City of Raleigh’s ART Program, an eligible passenger would pay $8 out-of-pocket for the same five mile length one-way trip outside the ¾ mile fixed route corridors.  With the ART Program, this $8 trip represents the passenger share or 48% of the cost of their premium (Americans with Disabilities Act) ADA service that is provided by cab operators.  ART passengers pay $4.20 to board the cab and ride the first mile, and then pay $2.50 for every mile thereafter in total cab fare.  Staff’s proposed fare for our equivalent Tier II service is half of what a citizen in Raleigh pays for the same scope of service.  The FTA allows for increased fares for what they label “premium level ADA service” or ADA service above and beyond the federal requirements.

Based on feedback from the public and passenger participation process, staff recommends the following changes:

Staff recommends the following tiered fare system for door-to-door service passengers begin on July 1, 2008 (see “Final Recommended Proposal Based on Public Feedback under each Tier):

Tier I:  Door-to-Door eligible citizens and visitors who have trip origins and destinations within the ¾ mile corridors of the current fixed route system

Current Fare: $2 per one-way passenger trip

Proposed Fare included in the March 3, 2008 Operations Committee: Fare will remain at $2 per one-way trip to adhere with the requirements of the Americans with Disabilities Act (ADA).  Trips within ¾ mile cannot exceed twice the fare of the peak hour fixed route passenger fare.  C-Tran’s fixed route peak hour fare is $1 per one-way trip.

Final Recommended Proposal Based on Public Feedback:  No revision recommended by staff.

Tier II:  Door-to-Door eligible citizens and visitors who have trips within the Town limits that do not remain wholly within the ¾ mile corridor

Current Fare: $2 per one-way passenger trip

Proposed Fare included in the March 3, 2008 Operations Committee: $4 per one-way passenger trip

Final Recommended Proposal Based on Public Feedback:  Reference number one under the “Other Changes…” section below for final recommendation on off-peak hour charges for Tier II service.  No other change is recommended under this proposal for Tier II service.

Tier III: Door-to-Door eligible citizens who have medical (for seniors) or employment (for persons with disabilities) trips outside the Town limits to Raleigh, Durham, Chapel Hill, Apex, or Morrisville

Current Fare: $4 per one-way passenger trip

Proposed Fare included in the March 3, 2008 Operations Committee: $6 per one-way passenger trip

Final Recommendation Proposal Based on Public Feedback:  No revision on proposal recommended by staff.

Other changes recommended to begin July 1, 2008 that were included in the March 3, 2008 Operations Committee staff report: 

1.      Elimination of the $1 per one-way passenger fare discount between 10 a.m. and 3 p.m. This discount was originally established to encourage more passengers during the off-peak hours.  Ridership on door-to-door service has increased such that this is not needed as a passenger incentive.

Final Staff Recommendation Based on Public Feedback: Staff determined that those passengers who were the most financially disadvantaged utilize the door-to-door services extensively during the off-peak hours (10 a.m. – 3 p.m.) to manage their transit expenses.  Staff recommends maintaining an off-peak discount for Tier II passengers only (trips are not wholly within the ¾ mile corridor of the fixed routes) but setting the discount at $2 per one-way trip during this off-peak timeframe instead of having no off-peak discount.  This recommendation would raise the discount fare from $1 to $2 per one-way trip during off-peak service hours.

2.      Increase in the age requirement from 55 years of age to 60 years of age.  Staff anticipates that approximately 50 passengers now using the door-to-door system fall between 55 and 60 years of age and would retain their eligibility status; however, any senior citizen applying after July 1, 2008 would not be approved under the new guidelines.  Disability requirements will remain the same and defined as “people who by reason of illness, injury, age, congenital conditions, or other disability, are unable to use local fixed route general public facilities and services, without adequate facilities, as effectively as people with no disability”.  Medical provider signatures documenting disabilities will continue to be required as part of the disability certification process.

Final Staff Recommendation Based on Public Feedback: No change to original proposal described above.

3.      New Recommendation: Provide a grant in the amount of $5,000 in Town funds to The Center for Volunteer Caregiving for FY08-09 as a safety-net for those individuals who require assistance in purchasing C-Tran door-to-door tickets.  No more than $20 per month in C-Tran door-to-door tickets would be provided to each individual that qualifies as a hardship.  Staff will work with The Center for Volunteer Caregiving to determine income thresholds and hardship cases.

Public Hearing

In compliance with FTA regulations concerning public participation, Town Council is required to hold a public hearing on this staff report and recommended changes to the Town’s C-Tran door-to-door system.

Fiscal Impact Revised Based on Final Staff Recommendations: 

FY09 projections with no changes:

FY09 projections with proposed new fare structure:

With the recommended changes in the fare structure for the Town’s door-to-door transit services, the Town is projected to increase fare revenues in FY09 by $74,116 to help offset overall costs to the Town.  This will reduce the Town’s net cost for the door-to-door program as projected for FY 2009 by 6.2% from $1,102,464 to $1,028,348.

Note:  If the fixed route services expand in the future, a higher percentage of Tier I trips ($2/trip) will be provided and the average fare revenue per trip will decrease.  However, with fixed route expansion, efficiencies will also be gained by more seniors utilizing the less costly fixed route service (which is less than half the net cost per trip to the Town than the door-to-door service cost per trip).  Staff estimates that between 10-15% of trips on the fixed route service are provided to senior citizens.  Staff will continue to encourage those seniors and persons with disabilities who can access the fixed route service to utilize it to the maximum extent possible since they only pay $1 per trip for our fixed route service and $.50 during off-peak.  Our contract staff is willing and able to provide hands-on travel training for those eligible individuals who have never used the fixed route services.

Staff Recommendation:  Staff recommends that Council receive the staff report and hold a public hearing at the Town Council meeting scheduled for May 29, 2008.  Following the public hearing, staff also recommends that the Council consider approval of staff’s final recommendation on the proposed fare and service changes associated with the door-to-door services at the June 12, 2008 Town Council meeting with an effective date of July 1, 2008 for the proposed changes.