Fare Restructuring

Los Angeles County
Metropolitan Transportation Authority
Regular Board Meeting
May 22, 2014
Item #54
Transit Service
Since 1985, countywide transit system has increased 45% in revenue service hours (RSH)
•Service provided by Muni operators increased by 230% (now providing 37% of bus service in LA County)
•Since 1997, Metrolink RSH has increased 127%
Metro Bus and Rail Transit
•2009-Silver Line opened
•2012-Orange line Extension
•On Time Performance improved from
66% to 76%
•Low load ratio in the country with twice
the average trip length
Bus and Rail Fleet
•542 new 45’ buses in service
•550 new 40’ buses (275 have
already been delivered)
•50 New Light Rail vehicles in
Service since 2012
•Constructed Division13 to
increase bus capacity
Rail and Highway Infrastructure
•Expo II and Gold Line Foothill
expected to open in 2016
•Under Construction- Crenshaw,
Subway Extension, and Regional
Connector
•I-10 and I-110 ExpressLanes
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Countywide
Metro
Comparisons
Note: The 8 transit agencies used in the comparison are agencies that are similar (modal/operational
characteristics and size) to Metro.
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Comparisons
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Fare Restructuring Plan
• Align fares with Metro’s expanding system
• Simplify the fare structure
• Phased approach to avoid one-time large fare increase
• Fare Model developed by Transystems to evaluate
impacts of fare changes
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Public Hearing Summary
332 Comments – 124 oral – 208 written and emails
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Key Public Concerns Staff Responses
Preferred Option 1 over Option 2 Recommending Option 1
90 minute transfer period should be
extended
Recommended transfer period is now 120 minutes
Affordability/impact on low income riders Our fare proposal continues to provide reduced fares for
senior/disabled/student riders
Senior/Disabled/Student fares were frozen in 2007
Transit users should pay a reasonable portion of the costs of service
Fare restructuring is lowest impact alternative
Prefers alternatives to fare increase Staff acknowledges and we will continue to seek other potential revenues
from advertising, leases and park and ride.
Metro has streamlined internally and have cut costs.
Problems with service levels, service area
and on-time performance
Staff acknowledges and continues to look for ways to improve service and
targets the most heavily used lines at each service shakeup. Metro’s focus
to keep assets in a state of good repair has been instrumental in improving
service quality.
Problems with fare evasion rates and
problems with security and safety
Staff acknowledges concerns and is working with LASD to increase
presence throughout system. Metro is proactively addressing fare evasion
through education, engineering and enforcement.
Staff acknowledges this concern and will be looking into a plan to address
this.
Proposed Fare Structure
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After Phase 3, staff is recommending that fare be adjusted by CPI
every two years, beginning in FY23.
Current Pricing Phase 1
FY15
Phase 2
FY18
Phase 3
FY21
Regular
Base Fare (2 hour transfer TAP card only) $1.50 $1.75 $2.00 $2.25
Day Pass $5.00 $7.00 $8.00 $9.00
Weekly (7 Day) $20.00 $25.00 $30.00 $32.00
Monthly (30 Day) $75.00 $100.00 Consolidate w/EZ Pass Consolidate w/EZ Pass
EZ Pass $84.00 $110.00 $120.00 $135.00
Muni Transfers $0.35 $0.50 $0.50 $0.50
Senior/Disabled
Peak $0.55 $0.75 $0.90 $1.10
Off-Peak $0.25 $0.35 $0.50 $0.70
Day Pass $1.80 $2.50 $3.00 $3.50
Monthly (30 Day) $14.00 $20.00 $24.00 $28.00
EZ Pass $35.00 $42.00 $50.00 $60.00
Students/College
Student (K-12) Cash $1.00 $1.25 $1.50 $1.75
Student (K-12) Monthly $24.00 $29.00 $35.00 $42.00
College Monthly $36.00 $43.00 $52.00 $62.00
Silver and Express
Silver Line $2.45 $2.50 $2.50 $2.50
Express $2.20 - $2.90 $2.50 $2.50 $2.50
Senior/Disabled Silver Peak $1.15 $1.35 $1.35 $1.35
Senior/Disabled Off -Peak $0.85 $0.95 $0.95 $0.95
Senior/Disabled Express Upcharge $0.30 - $0.60 $0.60 $0.45 $0.25
Fare Modification Impacts
Estimated Impact
FY15
Budget
Phase 1
9/2014
Phase 2
9/2017
Phase 3
9/2020
Boardings 495M -4% -3% -2%
Fare Revenue $347M $30M $40M $50M
Recovery Ratio 25.8% 28.3% 31.1% 32.5%
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Fare Assistance Programs
• Rider Relief Transportation Program (RRTP) - $5M
• Immediate Needs Transportation Program (INTP) - $5M
• Support for Homeless on Re-entry (SHORE) - $500,000
• Other Subsidies (Cities and LA County)


Regular : $7.00 - $17.00


Senior/Disabled: $3.00 - $10.00


Students (K-12): $3.00 - $16.00


College: $3.00 - $23.00
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CEQA Resolution
• The California Environmental Equality Act (CEQA) does not apply to
the restructuring of fares charged by public agencies, which the
public agency finds are for the purpose of meeting operating
expenses
• If the proposed fare changes are adopted by the Board, the CEQA
Resolution in Attachment E of the Board Report constitutes Metro’s
written findings
“…the Metro Board of Directors finds that any future fare structure adopted on
this date will be used for the purpose of meeting operating expenses,
including employee wage rates and fringe benefits, purchasing or leasing
supplies, equipment or materials, meeting financial reserve needs and
requirements, and obtaining funds for capital projects necessary to maintain
service within existing service areas.”
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Recommendation
• Receive public hearing comments
• Adopt Resolution in accordance with CEQA
• Adopt fare restructuring plan
• Effective September 1, 2014
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