apta peer review of fare policy

8/9/2019 APTA Peer Review of Fare Policy

1/33

Los Angeles County

Metropolitan

T r a n s p o r t a t i o n

A u t h o r i t y

M e t r o

One at eway

P l a z a

zi3.9zz.z000

e l

Los Angeles,CA

gooiz

-z95z metro n e t

REGULAR

BOARD

MEETING

MARCH

6,

2015

SUBJECT: APTA

PEER REVIEWOFFARE

POLICY

ACTION:

RECEIVE

AND

ILE

RECOMMENDATION

A.

Receive

and

i l e

r e p o r t

on

the APTA

eer

Review

o f

Fare

P o l i c y

(Attachment

A)

B. Receive o r a l r e p o r t from

the

APTA eer

Rev iew

panel

ISSUE

The

Board

of

D i r e c t o r s

adopted

the

i r s t p a r t

o f athree-

p h ased f a r e

c h a n g e

p r o p o s a l

(Attachment

B)

n

May

014.

r i o r

t o

v o t i n g on the f a r e changes, the Board app roved

Motion 55 Attachment

C).

This

r e p o r t addresses items

B

nd

D n

the

m o t i o n .

I t e m

B r o z e student a r e s a t c u r r e n t

p r i c i n g

l e v e l s

u n t i l J u l y 2015, u b j e c t t o

f u r t h e r

e v a l u a t i o n

by

a

T r a n s i t

R i d e r s h i p

Best

P r a c t i c e s

Task

Force

convened

by

the

American

P u b l i c

T r a n s p o r t a t i o n (APTA).

I t e m D

ostponed

c o n s i d e r a t i o n

o f

the

proposed

p h a s e

2

nd

p h a s e

3

a r e

c h a n g e s pending the APTA

a n e l s review o f

f a r e r e s t r u c t u r i n g st r a t e g i e s .

DISCUSSION

The i r s t

p h a s e

o f

the

s t a f f

proposal increased

b ase a r e s from 1.50

t o

1.75

a nd

a d j u s t e d

l l

o t h e r

f a r e s

and

passes,

except o r K

-12

student

a r e s ,

which

were

r o z e n a t

c u r r e n t

l e v e l s o f 1

base f a r e

and

24

monthly

pass.

I n a d d i t i o n ,

the

n e w

a r e

s t r u c t u r e

a l l o w s p assengers

u s i n g TAP

t o r e d

value the

o p p o r t u n i t y t o

t r a n s f e r

on

a s i n g l e

b ase

f a r e

w i t h i n

a

two

hour

window.

r i o r

t o

the

2014

a r e

r e s t r u c t u r i n g ,

no

Metro

- t o

-Metro

t r a n s f e r s

were

o f f e r e d , a nd

customers

paying

the

b ase a r e were

r e q u i r e d t o p ay o r

e a c h

b o a r d i n g .

As

a r t o f the

d e l i b e r a t i o n

on

f a r e

c h a nges, the Board

passed a

motion which delayed

the

d e c i s i o n on

P h a s e

2

nd

P h as e

3

f

the

f a r e

changes,

which were proposed

f o r

implementation

i n FY18

a nd

FY21,

e s p e c t i v e l y .

P h a s e 2 f

the

f a r e c h a n g e would

c o n s o l i d a t e M e t r o s

monthly

p ass

w i t h

the

r e g i o n a l EZ

ass,

h i l e

b o t h P h a s e s 2 nd 3


2/33

would increase the b a s e f a r e by

0.25

e a c h w i t h

corresponding

c h a n g e s o

d i s c o u n t e d

f a r e s

a n d l t p r e p a i d p a s s e s .

T h e

motion a l s o r e q u i r e d

Metro

t o c o n v e n e

a n APTA e e r Review

panel

t o :

rovide

guidance

on

f a r e

r e s t r u c t u r i n g s t r a t e g i e s t h a t

o p t i m i z e

f i n a n c i a l

p e r f o r m a n c e

w h i l e

m i n i m i z i n g

burden

on low

i n c o m e

r i d e r s

Recommend l t e r n a t i v e

revenue

g e n e r a t i o n

s t r a t e g i e s

d e n t i f y

o p p o r t u n i t i e s

t o e x p a n d

r i d e r s h i p

T h e

APTA

e e r

Review panel w a s comprised

o f i n d u s t r y

experts

from

t r a n s i t

a g e n c i e s

a n d a c a d e m i c n s t i t u t i o n s l o c a t e d

throughout

the

n a t i o n .

Th e t r a n s i t

a g e n c i e s

s e l e c t e d

w e r e

c h o s e n

b e c a u s e they h a v e i n n o v a t i v e

f a r e

p o l i c i e s or p rog r a m s a n d s h a r e

s i m i l a r

c h a r a c t e r i s t i c s t o

Metro,

s u c h

a s

bus

a n d r i l

s e r v i c e , s i z e ,

c u s t o m e r base,

a n d/ o r f a r e

c o l l e c t i o n

technology.

A c a d e m i c

n s t i t u t i o n s

w e r e a d d e d

t o the

panel

t o

p r o v i d e

a n

o v e r a l l

c o n t e x t

o n p r i c i n g

t h e o r i e s

a n d

research i n

a l t e r n a t i v e revenue

s t r e a m s a n d

cost

e f f i c i e n c i e s .

T h e

APTA

e e r

Review

panel i n c l u d e d

r e p r e s e n t a t i v e s

from CTA

(Chicago, L ) ,

King

C oun ty Metro

S e a t t l e , WA),

MARTA

A t l a n t a ,

GA), UCLA

u s k i n

School

o f P u b l i c A f f a i r s , the U n i v e r s i t y

of South F l o r i d a , a n d APTA. h e

peer

review

w a s

c o n v e n e d

o n

January

26,

2015

a n d

concluded

o n

January

30, 2015.

NEXT

STEPS

T h e

APTA anel

i l l present

the r e s u l t s

o f

the

p e e r

review

t o

the

Metro Board

o f

D i r e c t o r s .

A t t a c h m e n t s :

A.

F i n a l

Report

o f

the

APTA e e r

Review Pan el

B. Prop os ed Fare C h a n g e s(May

014)

C.

Motion

55

Pursuing O p p o r t u n i t i e s

f o r

a

F a i r

a n d

Balanced Fare S t r u c t u r e )

Prepared

By:

C o n a n

C h e u n g , DEO

213)922

-6927

M i c h e l l e

Navarro, D i r e c t o r

(213)922

-3056

K o r e y n e

C l a r k e ,

Budg e t

M a n a g e m e n t

Analyst

213)922

-2801

APTA

PEER

REVIEW OFFARE POLICY

2


3/33

n

Ahura

Ex

ecut

ive

D i r e

c t o r

Fi

nanc

e u

get

C

~

~

Arth

ur

T

L

e a h

y

Ch

i ef

E x

ecut

i v e O f

f i c e

r

APT

APEE

R

REV

IEW

OF

FA

RE PO

L Y


4/33

TT CHMENT

FIN L

REPORT

OF TH

MERIC NPUBLICTR NSPORT TION SSOCI TION

PEER REVIEW P NEL

FOR

LOS

NGELES

COUNTYMETROPOLIT N

TRANSPORTATION

AUTHORITY

Los

Angeles

alifornia

January

2015

ervice of he

Ame r i c a n Public

Transportation

Association


5/33

FINALREPORT

OF

THE

AMERICAN

PUBLIC

TRANSPORTATION

ASSOCIATION

PEER REVIEW

PANEL

ON

THE

FAREPOLICY

PROVIDEDAT

LOS

NGELES

COUNTY ETROPOLITAN

TRANSPORTATION

AUTHORITY

PANELMEMBERS:

Michael

Connelly

V i c t o r Obeso

Carol

Smith

Brian D aylor

J o e l

V o l i n s k i

Greg Hull

Rich

Weaver

Published

by the

American

Public Transportation

Association

1666

K t r e e t ,

NW l t Floor

Washington DC 0006

Michael

P.

Melaniphy

resident


6/33

TABLE

OF

CONTENTS

I

INTRODUCTION

1

I I SUMM RYOF

RECOMMENDATIONS 3

I I I

OBSERVATIONS

RECOMMENDATIONS............

6

IV.

CONCLUDING

REM RKS 15

A P P E N D I X

16

A Peer

Review Request

B

Peer

Review

Agenda

C

Document i s t


7/33

APTA eer Review

Report

Fare o l i c y —Los ngeles

County

Metropolitan Transportation Authority

I .

INTRODUCTION

I n

J u l y 2014,

Art

Leahy,

Chief

Executive

O f f i c e r

Los

Angeles County

M e t r o p o l i t a n


A u t h o r i t y

c o n t a c t e d t h e

American

Public


A s s o c i a t i o n

APTA)

o

r e q u e s t

a peer

review

of

h e

agency's

e c e n t l y r e s t r u c t u r e d f a r e p o l i c y .

Through d i s c u s s i o n s

between APTA

and

A g e n cy s t a f f t was

determined t h e

review

would b e conducted

January

26

—

30,

015.

A

panel of i n d u s tr y p e e r s

was assembled t h a t

provided e x p e r t i s e i n f a r e

s t r u c t u r e

o p t i m i z a t i o n r i d e r s h i p

enhancement s t r a t e g i e s

and

a l t e r n a t i v e revenue

g e n e r a t i o n

o p p o r t u n i t i e s .

T h e

peer

review panel c o n s i s t e d

of h e following p u b l i c

t r a n s p o r t a t i o n e x p e r t s ;

MR. ICHAEL

CONNELLY

Vice P r e s i d e n t

of

lanning

Chicago T r a n s i t A u t h o r i t y

Chicago,

IL

MR. ICTOR OBESO

Manager of

e r v i c e Development

King County Metro

S e a t t l e

W

MS.

AROL M I T H

D i r e c t o r of esearch

Analysis

MARTA

A t l a n t a

G

MR. RIAN D.

AYLOR

P r o f e s s o r

of

Ur ban Planning

D i r e c t o r —

I n s t i t u t e

of

r a n s p o r t a t i o n

Lewis Center

of

Regional Policy

S t u d i e s

UCLA

uskin

School

of u b l i c

A f f a i r s

Los

Angeles,

CA

MR. OEL

OLINSHI

D i r e c t o r

N a t i o n a l

Center o r

T r a n s i t

Research

U n i v e r s i t y

of South F l o r i d a

Tampa,FL

MR. REG

HULL

A s s t . VP u b l i c

S a f e t y

Operations

Technical

S e r v i c e s

APTA

Washington,D

MR.

ICH

WEAVER

D i r e c t o r

—

Policy

Planning

and

S u s t a i n a b i l i t y

APTA

Washington,D

T h e

panel

convened

i n

Los

Angeles,

C a l i f o r n i a

on

Monday,

January

26, 2015. Panel

c o o r d i n a t i o n and

l o g i s t i c a l support was provided b y

APTA t a f f Advisor Greg

H u l l . M r .

Hull

a l s o c o o r d i n a t e d

panel m e m b e r

input

i n t h e

d r a f t i n g

of

h i s

peer review r e p o r t .

Conan Cheung

s e r v e d as

t h e primary

i a i s o n

f o r

Metro.

1


8/33

AP

TA eer

Review

Re

por t

Fare

P o l i c

y

—L

os ngel

es Co un

ty Me

tropolit

an

Tr

an sporta

ti on

Authorit

y

M

ethodo

logy

T h e APT

A eer

Revie

w

p r o c e s s

i s w e l

l e

s t a b l i

s h e d a s a

v a l u a b

l e r

e s o u r c e

t o t h e

p u b l i

c

t r n s i

t

i n d u s t r

y . Hig

hly

e x p

e r i e n c

e d a

nd r e s

p e c t e d t r n

s i t

p r o

f e s s i o n

a l s and

t r

a n s p o r t

a t i o n

r e s e a r

c h e x p

e r t s v o

l u n t a r i

l y p r o v i

d e t h e

i r

time

and

e x p e r t

i s e

t o a d d r e

s s

t

h e scope

r

e q u i r e d

.

T h e

p a n e

l

conduc

ts

t s

revie

w t

hrough

examination

of

do cuments

t a k e h o l d e r

b r i e f i n g s

o p e r a t i o n s

o

b s e r v a

t i o n s

a

nd

i n t e r v i

e w s

w i t h

key

age

ncy

t a f f

and t

a k e h o l d

e r s .

Sc

ope

of

Repor

t

T h e

s

cope o

f t h i

s

re

view

foc

used on t h e

i r s t and

sub

sequen

t phase

s

o

f LA

CMTA

s

prop

os ed r e s t r u

c t u r e d f a r e p o

l i c y .

I n a n t i c i

p a t i o n of

a b

udget d e

f i c i t

i n

FY18 Me

tro

s t a f f

i d e

n t i f i e d

o p t i o

n s f o r

c l o s i

n g

t h e

d

e f i c i t

and

conclu

ded

t h a t

f a r e

r e v e n

u e s

i n c r e a s

e d

r

i d e r s h i

p

n

w reve

nue

s

o u r c e s

o r

s o m e

comb

inatio

n o

f

t h e s e

was

r

e q u i r e d

on

t h

e reve

nue

s i d

e

w h i

l e

redu

ced e

xpense

s th

rough a

combination

s e r v i c e

r e d u c t i o n s

and

c o s t

e f f i c i e n c i e s

was

needed

on

h e c o s t

s i d e

of

h e

l e d g e r .

T

h e o b s e

r v a t i o

n s a

nd re

commen

dation

s

i n

t h i s

p e e r revie

w

a r e

o f f e r e d

a s

an

i n d u s t

r y

r e s

o u r c e

an

d

a s a

m eans

of

s t r e

n g t h e n

i n g L

ACMT

A s a

r e p o l

i c y

pr

og ram s

p r a c t i

c e s

a

nd

s t r a t e

g i e s .

T h e

rev

iew foc

used

i n

p

a r t i c u l

a r

o

n

h e

f

o l l o w i

n g

a r

e a s :

•

Rev

iew

of

e s

t r u c t u r

e d f a r e

p o l

i c i e s

•

Revi

ew

p r o

p o s a l s

t o i n

c r e a s e t

h e e f f

i c i e n c y

and

p r o d u c t

i v i t y of

s e r

v i c e an

d

o

p e r a t i o

n s

•

Re

view o

f l

t e r n a t e

rev

enue s

o u r c e

o p t i o

n s

2


9/33

AP

TA

eer

Re view

Report

Fare

P o l i c y

—Los

ngcics County

Metro

politan Transport

at ion Authority

II.

SUMM

RYOF

RECOMM

END TIO

NS

Section I:

Restructur

ed

Fare

P o l i

c i e s

STU

DENT

FARES

Engage o l l e g e s

and a r g e

employers o s

u b s i d i z e

t r a n s i t

u s e

2 I n c

r e a s e

d i s c o u n t e d s t u d e n t f a

r e s a s p r o p

o s e d

IMPLE

MENTATION

OFPHASES

AND3

Proceed

w i t h i m p

l e m e n t a t i o n of

hases

2

nd s p r o p

o s e d

4 C o n

s i d e r

o p p o r t

u n i t i e s

f o r e q u a l i z i n g s u b s

i d y p e r r i p a c

r o s s

f a r e

and p a s s

t y p e s

M

ERGE

THE

DAY

PASS

AND

EZ

ASS

5

Pr

opose

w i t h

t h e

me

rge

a s

i n t e n d e d

6 Rev

iew

h e m e r i

t s

and

e q u i t y of

x

t e n d i n g

r e g

i o n a l v a l i d i t

y t o l l t i

m e

- b a s e d

p a s s t y p e s

BALA

NCING

IMPACTO LO

W NCO

MERIDERS MA

INTAININ

G

BUD

GET

SOLVENCY

7

RRTP

e n e f i t s s h o u l d

be

r i p

- b a s e d

r a t h e r

t h a n

t i m e

- b a s e d

8

E x p l o r e

u s i n g

t h e

RRTP

o

l e v e r a g e

i n

v e s t m e n t s

i n t h e prog

ram from o t h e r i n s t i t u t

i o n s

9

C o n s i d

e r

t h e

m e r i t s

of

r e a t i

n g

a i n g

l e

d i s c o u

n t e d f a r

e

l e v e l

10

C o n s i d e r

a d o p t i n g

a

o l i c y t o

e q u a l i

z e

t h e

revenue o l l e c t e d

p e r b o a r d i

n g

a c r o

s s

p

a s s t

y p e s

1 1 E x

p l o r e metho

ds o r

r e d u c i n g

f a r e

e v a s i o n

DISCOUNT

EDFAR

ES

12

C

o n t i n u e

t o

e x p l o

r e

o p p o r t u n i t i e

s

f o r

wide d i s t r i b u t

i o n t o l a r g e

/ c o r p o r a t e a

nd

c o

l l e g i a t e s i t e s

13

C o n t

i n u e

t

o f o c u s c o r p o r a t e

p a r t n e r s

h i p

e

f f o r t s

o

n

low

wage emplo

yment e c t o r s

14

E v a l u a t e d i s

c o u n t e d

f a r e s t r u

c t u r e

t o d e t e

r m i n e a r

e d u c e d f a r e

s t r u c t u r e

t h a t

i s e q u

i t a b l e

TOURIS

T

AN

DMULTI

-DAY

PASSES

15

C o n t i n u e t o m a i n t a i n t h

e c u r r

e n t 1

d

ay an

d

m u l t i

- d a y p a s s e s

16 I n c r e a s e

t h e s a l e of a r e- p a s s t y p e

s

t h r o u g h

d i s c

u s s i o n

w i t h

l o c a l

t o u r i s m

b u r e a u s

17 C

o n s i d e r t h e

m e r i t s of

o d i f y i n g

t

h e s t r u c t

u r e

of

h e s e

p a s s e s

t o

a v o

i d

a d

v e r s e

s e l e c t i o n

18

C o n s i d e r

p a r t n e r i n g w i t h

o n l i n e

group

d i s c o u n t v e n d o r

s

t o

a l l o w

t o u r i s t s t

o

b

uy a s s e

s a t

d i s c o u n t e d

r a t e

s

19

C o n s i d e r

t h e

m e r i t s

of

u l t i

t r i p t i c k e t s ex

ample: 10

i d e

p a s s

CPI

AD

JUSTMENTTO

F

ARES

20

Implemen

t

e g u l a r CPI

- b a s e

d

a d j u

s t m e n t s

2

1

Review

t h

e c u r r e n t

u s e

of

o n g term

d e b t t o

a c c e l e r a t

e

t h e c a p i t a l

pro

gram;

h i s ma

y

compromise

h e

a b i l i t y

t o

s u s t a i

n

l o n g te rm o p e r a t

i n g a

nd

m a i n t e n a n c e pr

ograms

FAR

E-BOXRECO

VERY

R

ATIO I

DEAL

METROFARE STRUCT

URE

22 Th e

p a n e l s

u p p o r t s a d h e r e n c e

t o t h e 33 e

r c e n t f a r

e-box

r e c o v e r y r a

t i o

t a r g e t

23 Implement

h e f a r e

r e s t r u c t u r

i n g

a s

p r o p o s e d

24 I n t h e a b

s e n c e

of

m p l e m e n t a t i o n

u t u r e

s i g n i f i c a n t c u t

s t o

e

x p e n d i t u r e s

w i l l be e

q u i r e d

t o

m a i

n t a i n

s o l v e

n c


10/33

APTA eer

Review

Report

Fare P o l i c y —Los

ngeles

County Metropolitan Transportation

Authority

Section I I : Service

and

Operations E f f i c i e n c i e s and

Productivity

IMPACTOF

FARE

STRUCTUREO

TRAVEL

ECISIONS

25

C o n s i d e r s e t t i n g

f a r e s

t o e q u a l i z e t h e s u b s i d y

p e r

r i p

among

v a r i o u s c l a s s e s of

s e r s

26

S e r v i c e d e s i g n

s h o u l d

minimize

d u p l i c a t i v e s e r v i c e and

e n c o u r a g e

t r a n s f e r s

between modes

27 M ore r e q u e n t

s e r v i c e

on a more

s p a r s e l y

c a n f i g u r e d

network

w i t h

w i d e r s t o p

s p a c i n g h a s

been shown o r e d u c e

w a i t

/ t r a n s f e r t i m e s and i n c r e a s e r i d e r s h i p

28

T r a n s f e r s

a r e

a

i t a l p a r t of

r a n s i t

l e v e l ; m a i n t a i n

t h e

new

two

hour r a n s f e r

window a s

i s

29

C o n t i n u e t o

r e a l i g n

s e r v i c e s

t o

e s t a b l i s h

and

m a i n t a i n

a c o r e

network of r e q u e n t s e r v i c e s

30 C o n t i n u e t o

e x p l o r e

new

and r e f i n e d m e t h o d o l o g i e s

f o r

m i t i g a t i n g t h e

l e v e l

of

a r e

e v a s i o n

CONCEPTS

TO

NCREASEEFFICIENCY

ANDPRODUCTIVITY

31

A d j u s t

t h e

Bus

Load S t a n d a r d

from 1 . 3

t o

1 . 4

and

u l t i m a t e l y c o n s i d e r g o i n g

t o

an a r e a -

based s t a n d a r d ;

c o n s i d e r

implementing

a bus s t o p

c o n s o l i d a t i o n

program

32

I n i t i a t e a

comprehensive program o

improve

on

- t i m e

p e r f o r m a n c e system- w i d e ; r e v i e w

i n t e r n a l

s e r v i c e

o p e r a t i o n s

a s

w e l l a s c o o r d i n a t i n g

w i t h

o t h e r

u r i s d i c t i o n s

and

o p e r a t o r s

PROMOTIONOFUNDERUTILIZEDSERVICES

INCENTIVIZING

OFF

PEAK

SERVICES

33 Encourage

u s e of e r v i c e s

o p e r a t i n g

below peak c a p a c i t y (midday,

v e n i n g ,

weekend,

t c . )

34

Adopt and

implement a p o l i c y t o g u i d e t h e redeployment

of

e s o u r c e s

from

c h r o n i c a l l y

u n d e r p e r f o r m i n g

r o u t e s

o r r o u t e

segments o h i g h e r p e r f o r m i n g l o c a t i o n s and i m e s

35

E x p l o r e

t h e c o s t s

and b e n e f i t s

of m p l e m e n t a t i o n o f f

- p e a k

f a r e d i s c o u n t s

OPPORTUNITIES

FOR

SYSTEM

OPTIMIZATION

THROUGHPERFORMANCE

DATA

36 C o n s i d e r

m o n i t o r i n g

p e r f o r m a n c e

u s i n g s p e c i a l i z e d s o f t w a r e , a e d i c a t e d

b u d g e t a n a l y s t ,

and

management

team r e v i e w of ey

r e n d s

e v e r y

week

Section I I I :

Alternative

Revenue Sources

BENEFITSANDIMPACTS

OF CHARGING PARKINGFEES

AT

METRO

STATIONS

37

C o n t i n u e

w i t h

p a r k i n g

s t u d y

c u r r e n t l y

underway

38

C o n s i d e r

a d o p t i n g

performance

p r i c i n g

of etro p a r k i n g whereby

a r k i n g

r a t e s

v a r y

i n

o r d e r

t o

manage

p a r k i n g demand

39 C o n s i d e r

c o n t r a c t i n g o u t p a r k in g o p e r a t i o ns t o

p r i v a t e p a r k i n g

management

i r m s

OTHER

POTENTIAL

REVENUE STREAMS

40

E x p l o r e

t h e o p p o r t u n i t y

f o r placement ofATMs t

r i l

s t a t i o n s

41 E x p l o r e t h e

o p p o r t u n i t y

of a r t n e r s h i p s

w i t h

o t h e r

a g e n c i e s

o r b u s i n e s s e s where c o s t s f o r

new s e r v i c e s

might

be

s h a r e d

42 C o n s i d e r e s t a b l i s h i n g a l o y a l t y

program n c o n j u n c t i o n

w i t h

p a r t i c i p a t i n g

b u s i n e s s e s

i n

t h e county

n

which

b u s i n e s s e s

a g r e e t o

o f f e r

d i s c o u n t s t o t r a n s i t u s e r s

i n exchange f o r

t h e

a

enc

' s

romotion of h o s e b u s i n e s s e s

43

C o n s u l t T r a n s i t C o o p e r a t i v e

R e s e a r c h

Program

S y n t h e s i s Report

#112

o

i d e n t i f y

t e c h n i q u e s t o

e a r n

new e v e n u e s

o r s a v e

money


11/33

APTA

eer Review

Report

Fare

P o l i c y

—Los ngeles

County

Metropolitan Transportation

Authority

Section IV: t h e r

Observations and

Recommendations

The

i g o r o u s i n - h o u s e

program f o r

t h e

management

e c h n i c a l

s u p p o r t

of

h e

TAP

rogram

i s

an i n d u s t r y -l e a d i n g i n i t i a t i v e

5

E l e c t r i f i c a t i o n of

us components such

a s a i r

c o n d i t i o n i n g

e n g i n e c o o l i n g and

power

s t e e r i n g

t o r e d u c e p a r a s i t i c l o a d

can s a v e

a s

much

s

15

n u e l

6 F r e e e n e r g y a u d i t s can h e l p i d e n t i f y ways o r e d u c e u t i l i t y i l l s

7 C o n s i d e r i n s t a l l i n g

s o l a r

p a n e l canopy s y s t e m s

t o

p a r k b u s e s

under

o r s h a d e a v i n g s on

f u t u r e

e n e r g y c o s t s and r e d u c e d c a r b o n f o o t p r i n t


12/33

PT eer

Review Report

Fare

P o l i c y

—Los ngeles

County

Metropolitan Transportation

Authority

I I I . OBSERV TIONS

ND

RECOMMEND TIONS

OPENING

COMMENTS

D e c i s i o n s

about f a r e s a r e

among t h e

most

d i f f i c u l t f o r any t r a n s i t

agency; t h i s

is

e s p e c i a l l y

t h e c a s e

a b s e n t

a

c l e a r

g u i d i n g p h i l o s o p h y

about

a r e p o l i c i e s .

T h e importance

of

uc h

a g u i d i n g

p h i l o s o p h y i s

e s s e n t i a l

f o r

l a r g e

systems such

a s

Metro w i t h

i t s

d i v e r s e s e r v i c e

o f f e r i n g s and

s u b s t a n t i a l numbers of

low-

income

r i d e r s .

O f t e n

t r a n s i t

a g e n c i e s

p r i c e

f a r e s

t o

r e f l e c t

t h e

c o s t of

s e r v i c e .

G e n e r a l l y t h e

p r a c t i c e

of

r a n s i t

a g e n c i e s i s t o

p r i c e

f a r e p o l i c i es

a c c o r d i n g t o t h e c o s t

of s e r v i c e . Others

adopt

f a r e

p o l i c i e s t h a t

t r e a t p u b l i c t r a n s i t a s a

s o c i a l

s e r v i c e

e n t a i l in g s u b s t a n t i a l

s u b s i d i e s t o low-

income and

o t h e r needy r i d e r s .

t

a p p e a r s

t o

t h e

panel h a t Metro s

a r e

s t r u c t u r e s i t s

somewhere i n t h e

middle

between

t h e s e

two

h i l o s o p h i e s .

I n l i g h t

of

h e

looming

d e f i c i t

p r o j e c t i o n s

a c t i o n

of

some s o r t

i s r e q u i r e d b y

Metro t o

reduce

e x p e n d i t u r e s

i n c r e a s e

r e v e n u e s

o r

some combination of t h e two.

F u t u r e funding

s h o r t f a l l s

a r e l i k e l y t o be

compounded

by:

•

T h e

waxing c o s t s

of

a i n t a i n i n g a

s t a t e

of

ood

e p a i r of an a g i n g

i n f r a s t r u c t u r e

and,

•

long

- t e r m

and

growing debt s e r v i c e

burden

from s i g n i f i c a n t

c a p i t a l expansion

program t h a t

(1)

i n c r e a s i n g l y competes

f o r

revenues

a v a i l a b l e

f o r

o p e r a t i o n s and

m a i n t e n a n c e and

(2)

i n c r e a s e s

t h e

c a p i t a l a s s e t base and

s u b s e q u e n t

maintenance

r e q u i r e m e n t s

of h e

system.

T h e

proposed

Metro f a r e

r e -

s t r u c t u r i n g

i s

comprehensive

i n

t h a t

i t

a d d r e s s es t h e

t h r e e

p r i n c ip a l a s p e c t s

of

a r e p o l i c y:

(1)

a r e l e v e l s

(2) a r e

s t r u c t u r e

and (3) h e

process

b y

which

f u t u r e f a r e

changes

w i l l o c c u r . t i s

c l e a r l y e v i d e n t t o

t h e

p a n e l

t h a t

Metro

s t a f f have

been

very

d i l i g e n t

i n a p p l y i n g s e r v i c e

p l a n n i n g and

o p e r a t i o n a l

p r a c t i c e s t h a t

a r e

i n

l i n e

w i t h e f f e c t i v e

t r a n s i t

i n d u s t r y

p r a c t i c e s w h i l e

a t t e m p t i n g t o c o n t r o l c o s t s

w i t h

a

minimal amount of

e g a t i v e

impact

o

r i d e r s and

employees.

While

f a r e s a r e

t h e

p r i o r i t y of h i s

r e v i e w

r i d e r s h i p

and s e r v i c e a r e

e q u a l l y

i m p o r t a n t

f a c t o r s

a s t h e y have

a

d i r e c t

r e l a t i o n s h i p

t o

f a r e revenue

and f a r e b o x r e c o v e r y .

With Metro

r i d e r s h i p d e c l i n i n g

over

t h e

p a s t y e a r

c o n s i s t e n t w i t h r i d e r s h i p

t r e n d s

t h r o u g h o u t

t h e

c o u n t r y

t h e

a n t i c i p a t e d annual

f a r e

revenue

e x p e c t e d

from Phase I of t h e f a r e i n c r e a s e

may

not be

achieved d e s p i t e

t h e

e x p e c t e d i n c r e a s e

i n a v e r a g e

f a r e

p e r b o a r d i n g . T h e r e f o r e t o

e n s u r e

t h a t

f a r e

revenues and

f a r e b o x

r e c o v e r y t a r g e t s a r e

a c h i e v e d

an assessment

of

i d e r s h i p

demand

and

s e r v i c e

l e v e l s

should b e

conducted t o

i d e n t i f y

improvements t o t h e t r a n s i t

network, s e r v i c e s

p r o v i d e d and

q u a l i t y

of e r v i c e t o

a t t r a c t new r i d e r s and

e t a i n c u r r e n t r i d e r s h i p .

I n

a d d i t i o n t h e c o s t of

a i n t a i n i n g

a s s e t s

i n

a

s t a t e

of good

r e p a i r

i s

an

e v e r i n c r e a s i n g

c h a l l e n g e

not only

f o r Metro,

but

f o r

t r a n s i t

a g e n c i e s throughout t h e

c o u n t r y . With

Metro s

s i g n i f i c a n t

c a p i t a l expansion

program,

t h e a s s e t b a s e

i s

e x p e c t e d t o grow

s i g n i f i c a n t l y

t h u s

adding a d d i t i o n a l

demands

o r

ongoing maintenance

f u n d i n g .

T h e

looming

d e f i c i t

p r o j e c t i o n s

should prompt

Metro t o

look

a t f a r e s

s e r v i c e and

c o s t

e f f i c i e n c i e s

and

o t h e r

revenue

g e n e r a t i n g

a l t e r n a t i v e s t o

h e l p

m i t i g a t e

t h e s e d e f i c i t

p r o j e c t i o n s .


13/33

APTA

eer Review

Report

Fare

o l i c y

—Los ngeles

County Metropolitan Transportation Authority

I.

RESTRUCTUREDFARE

OLICIES

A

STUDENT

FARES

Discounted

s t u d e n t

f a r e s

were not i n c r e a s e d as p a r t of h e Phase 1 f a r e a d j u s t m e n t s and

t h e r e b y t h e s u b s i d y

f o r

s t u d e n t

r i d e r s

has

grown

more

s u b s t a n t i a l

a s a r e s u l t . While

Metro has

ma de r o g r e s s

i n engaging secondary

and

p o s t-

secondary

n s t i t u t i o n s

t o

e s t a b l i s h

s u b s i d i z e d

p a s s

programs f o r t h e i r s t u d e n t

f a c u l t y

and s t a f f p o p u l a t i o n s t h e r e remains p o t e n t i a l t o expand t h e

number

of

h e s e

programs t o i n c r e a s e

t r a n s i t p a t r o n a g e

a t

r e l a t i v e l y low

c o s t t o

Metro.

Some

a g e n c i e s l i k e

Metro, focus youth

d i s c o u n t s on

s t u d e n t s o t h e r s choose t o o f f e r

d i s c o u n t e d

f a r e s

t o

youth

r e g a r d l e s s

of

h e i r

s t u d e n t s t a t u s

i n o r d e r t o

promote

y o u t h

m o b i l i t y

b r o a d l y .

Recommendations

• Continue t o e x p l o r e o p p o r t u n i t i e s t o engage c o l l e g e s and l a r g e

p u b l i c

and p r i v a t e

employers

such

a s

b u s i n e s s p a r k s m i l i t a r y

i n s t a l l a t i o n s

a p a r t m e n t

complexes,

m u n i c i p a l i t i e s and o t h e r s

i n

programs

t o s u b s i d i z e t r a n s i t u s e among t h e i r c l i e n t

p o p u l a t i o n s .

T h e

e s t a b l i s h m e n t of

a

b u s i n e s s development

o s i t i o n

d e d i c a t e d t o

t h i s

t a s k

can

h e l p i n c r e a s e

r i d e r s h i p

and

e v e n u e .

•

T h e

p a n e l

d i d not

d e n t i f y

any a t i o n a l e

f o r deepening

t h e d i s c o u n t s

f o r

s t u d e n t s v i s

- v i s

o t h e r p a t r o n s ; we h e r e f o r e

recommend

t h a t

t h e

d i s c o u n t e d s t u d e n t s f a r e s i n c r e a s e a s

p r o p o s e d . T h e f r e e z e

on s t u d e n t f a r e

i n c r e a s e s

should

be

l i f t e d

and allowed t o

i n c r e a s e

w i t h

each proposed

p h a s e .

B. I M PLEMENTAT ION OF HASES2 ND3

T h e

proposed

Phases

2

nd

3

ould

complete

t h e

r e -

s t r u c t u r i n g of

a r e s

and

s e t

a

a t h

f o r

f u t u r e

f a r e

a d j u s t m e n t s i n a s t e a d y

t r a n s p a r e n t and

p r e d i c t a b l e

manner.

Doing

so

would h e l p t o

s t a b i l i z e t h e

f i n a n c i a l s t r u c t u r e

of

Metro,

e n a b l i n g

t h e agency t o more a c c u r a t e l y f o r e c a s t

long

range

r e v e n u e s .

Scheduled implementation w i l l a l s o p r o v i d e customers w i t h advance n o t i c e and

p r e d i c t a b i l i t y

of

mpending

a r e

c h a n g e s .

Recommendations

•

Proceed

w i t h implementation of

hases

2

nd

3

s p r o p o s e d .

• Implementation

of hases

2

nd

3 i l l l e a d t o

s t a b i l i z a t i o n of

etro s

i n a n c i a l

s i t u a t i o n .

•

Metro should

c o n s i d e r r e g u l a r

review

of

o p p o r t u n i t i e s f o r e q u a l i z i n g s u b s i d y

per

t r i p

a c r o s s f a r e and p a s s t y p e s .

C. MERGE HE 30

AYPASS

ANDEZ

A SS

Metro p l a n s t o

merge t h e

30Day ass w i t h

t h e

EZ ass i n o r d e r t o

p r o v i d e

a s i m p l e r

system

f o r

c u s t o m e r s .

Recommendations

•

Proceed

with

t h e merge as n t e n d e d .

• Onc e t h e merge i s implemented,

review

t h e m e r i t s and e q u i t y of x t e n d i n g a c c e p t a n c e of

l l

time

- b a s e d p a s s t y p e s a c r o s s

l l o p e r a t i n g

a g e n c i e s

t o meet

t h e

r e g i o n a l

t r a v e l

needs

of

l l

r i d e r s .

7


14/33

APTA eer

Review Report

Fare P o l i c y

—Los ngeles


Authority

D.

BALANCING

IMPACT

OF LOW NCOME RIDERS

AND

AINTAINING BUDGET OLVENCY

Th e

p a n e l n o t e s t h a t t h e

R i d e r R e l i e f

T r a n s p o r t a t i o n Program

(RRTP)

s a

complex

f a r e

t r a n s a c t i o n f o r

both r i d e r s

and t h e a g e n c i e s

i n v o l v e d

and

i s

l i m i t e d

i n

i t s

s c o p e . The

r e c e n t

a d o p t i o n of a

two

hour time

t r a n s f e r

p o l i c y

lowers t h e

t r a v e l c o s t s of

r a n s f e r r i n g

r i d e r s ,

wh o

t e n d t o be

lower

income t h a n

non

-t r a n s f e r r i n g

r i d e r s .

While,

l l

t h i n g s

e q u a l , lower

a r e s

b e n e f i t

lowest

income

r i d e r s ,

i f lower

f a r e s e n t a i l l e s s

f r e q u e n t

and

r e l i a b l e

s e r v i c e ,

low

income

r i d e r s

w i l l

l i k e l y

b e

worse off a s

a

r e s u l t .

M a i n t a i n i n g

system

solvency and e f f e c t i v e

t r a n s i t s e r v i c e

o p e r a t i o n s

i s

t h e b e s t way

o r

Metro t o

s e r v e

i t s

low income

r i d e r s a s

doing

so

p r e v e n t s

s e r v i c e

d e g r a d a t i o n

and

c u t s . I n

v i r t u a l l y every community

i n

t h e

c o u n t r y ,

w hen

p a s s e n g e r s

a r e

asked

i f

t h e y had

t o choose

between having

h i g h e r

f a r e s o r

l e s s s e r v i c e ,

p a s s e n g e r s

opt f o r

h i g h e r f a r e s

( w i t h i n

r e a s o n )

n

o r d e r

t o

m a i n t a i n t h e

s e r v i c e

t h a t i s

so

i m p o r t a n t

t o them.

Recommendations

• RRTP e n e f i t s

should

b e

ri p

- b a s e d

r a t h e r than

time-

b a s e d .

•

Metro

should

e x p l o r e

u s i n g

t h e

RRTP o

l e v e r a g e i n v e s t m e n t s

i n t h e

program from

o t h e r

i n s t i t u t i o n s

t o

h e l p fund and expand t h e

program.

•

A s

Metro

r e -

v i s i t s

i t s

d i s c o u n t e d

f a r e c a t e g o r i e s

i n t h e

f u t u r e ,

i t

should

c o n s i d e r t h e

m e r i t s of

r e a t i n g

a

s i n g l e

d i s c o u n t e d

f a r e l e v e l

t h a t

a p p l i e s t o

e l i g i b l e

r i d e r s

groups —

s e n i o r s ,

s t u d e n t s/ y o u t h ,

low-

income, t c .

• Because t h e

c u r r e n t

reduced f a r e

i n s t r u m e n t s r e s u l t i n a

low

and

h i g h l y v a r i a b l e

a v e r a g e

f a r e

p e r b o a r d i n g , Metro

should c o n s i d e r

a d o p t i n g a p o l i c y

t o

e q u a l i z e t h e

revenue

c o l l e c t e d per

boarding a c r o s s time

- b a s e d

p a s s t y p e s .

• Explore

methods f o r

r e d u c i n g f a r e e v a s i o n i n

o r d e r t o

t r e a t paying c u s t o m e r s ,

and i n

p a r t i c u l a r low-

income

paying

c u s t o m e r s ,

more a i r l y .

E.

DISCOUNTED FARES

Given t h a t

a p p r o x i m a t e l y

50

f

Metro's

r i d e r s h i p

i s

low

income, h e r e

i s

l e s s

r a t i o n a l e

f o r o f f e r i n g deep

d i s c o u n t s f o r

p a r t i c u l a r r i d e r

g r o u p s .

Not

a l l

r i d e r s

i n t h e

groups

c u r r e n t l y

r e c e i v i n g f a r e d i s c o u n t s

a r e of

i m i t e d

means

and

i n need of added s u b s i d y

and

low income

r i d e r s who

o

not l l i n t o t h e

d i s c o u n t e d

r i d e r groups do

not r e c e i v e needed

s u b s i d y .

Recommendations

• Continue t o

e x p l o r e

o p p o r t u n i t i e s

f o r

widely

d i s t r i b u t i n g

f u l l y or

p a r t i a l l y s u b s i d i z e d f a r e

media t o l a r g e

/ c o r p o r a t e

and c o l l e g i a t e

s it es . Ensure t h a t

t h e

p r i c i n g

i s

based

on t h e

d i s t r i b u t i o n of

a r e

media

t o

l l

employees

o r s t u d e n t s

i n

a

group- p r i c e d

based on

a c t u a l

use

manner

s i m i l a r t o

o t h e r employee b e n e f i t programs

such a s

d e n t a l , v i s i o n and

medical

c o v e r a g e .

P r i c i n g

i n t h i s manner e n a b l e s

wide

d i s t r i b u t i o n t o

employees/ s t u d e n t s

w i t h o u t

r e q u i r i n g

r e t a i l

p r i c e s

t o b e

charged

f o r

each

u s e .

Group-

wide coverage

encourages

u s e b y

non

-t r a n s i t r i d e r s , and

a v o i d s t h e

problem

of

a d v e r s e

s e l e c t i o n i n

u n l i m i t e d

r i d e

media

whereby

only

t h e most

f r e q u e n t r i d e r s p u r c h a s e t h e

media.

•

Continue t o

focus

c o r p o r a t e

p a r t n e r s h i p e f f o r t s

on low wage

employment

s e c t o r s where a

l a r g e

p r o p o r t i o n

of etro

r i d e r s

a r e

employed.

• E v a l u a t e d i s c o u n t e d f a r e

s t r u c t u r e t o

d e t e r m i n e a

reduced

f a r e

s t r u c t u r e

t h a t

i s

e q u i t a b l e .


15/33

APTA eer Review

Report

Farc

o l i c y

Los Angeles

County Metropolitan

Transportation

Authority

F. TOURIST AND

ULTI DAY

ASSES

T h e

c u r r e n t

7 ay

and 1

day p a s s e s

a r e e f f e c t i v e o p t i o n s .

T h e p a n e l n o t e s

t h a t i t i s

common

o r

many

t r a n s i t

a g e n c i e s

t o

s e l l m u l t i- t r i p t i c k e t s

t h a t

can be

used

over

t h e

c o u r s e of

one or m u l t i p l e

d a y s .

Recommendations

• Maintain t h e c u r r e n t

1

day

and m u l t i

-day

u n l i m i t e d

r i d e p a s s e s .

•

Explore

o p p o r t u n i t ie s f o r

i n c r e a s i n g

t h e s a l e

of and

7

ay p a s s e s i n

c o n j u n c t i o n w i t h

l o c a l t o u r i s m

b u r e a u s .

•

Consider

h e

m e r i t s of

•

Given

Los

Angeles t a t u s

a s a

g l o b a l t o u r i s t

d e s t i n a t i o n ,

c o n s i d e r

p a r t n e r i n g

w i t h

o n l i n e

group

d i s c o u n t vendors such a s

Group-On o a l l o w t o u r i s t

t o

buy 3 ay

o r

7 ay

p a s s e s a t

a

d i s c o u n t

r a t e .

•

Consider

t h e

m e r i t s

of

m u l t i- t r i p

t i c k e t s

(example:

10

r i d e

p a s s e s

on both c o s t s

and

r e v e n u e s .

G .

INFLATION

CPI

DJUSTMENT

T O

FARES

CPI

a d j u s t m e n t s e n a b l e

f a r e s

and

t h e

revenues they

produce t o

m i r r o r economy

-wide

i n f l a t i o n

r a t e s

w h i l e

s t i l l p r o v i d i n g an i n c e n t i v e

f o r Metro o

c o n t r o l

c o s t

e s c a l a t i o n .

Adopting a

p o l i c y of

r e g u l a r CPI

- b a s e d

f a r e

a d j u s t m e n t s i n t r o d u c e s

s t a b i l i t y t o t h e

f i n a n c i a l

p l a n n i n g

p r o c e s s ,

a v o i d s p e r i o d i c

f i n a n c i a l

c r i s e s ,

and

r e s u l t s

i n

r e g u l a r

and more

modest

a d j u s t m e n t s

t o

f a r e s .

Recommendations

•

Implement

r e g u l a r CPI

- b a s e d

a d j u s t m e n t s t o

b r i n g revenues c o l l e c t e d

i n

l i n e

w i t h t h e

g e n e r a l r a t e

of n f l a t i o n

and t o

r e p l a c e

o c c a s i o n a l , l a r g e f a r e

i n c r e a s e s w i t h more

r e g u l a r

and

much s m a l l e r i n c r e a s e s .

•

T h e

p a n e l

n o t e s

t h a t

Metro

f a c e s


and

r i s i n g c a p i t a l

d e b t

- s e r v i c e o b l i g a t i o n s

t h a t

i n c r e a s i n g l y

compete

w i t h

revenues

a v a i l a b l e f o r o p e r a t i o n s and

m a i n t e n a n c e . These

r i s i n g debt s e r v i c e

o b l i g a t i o n s

t h r e a t e n Metro s

a b i l i t y

t o

d e l i v e r high-

q u a l i t y t r a n s i t

s e r v i c e i n w e l l - m a i n t a i n e d

v e h i c l e s

over

t h e

long

t e r m .

C a r e f u l l y

review

t h e

c u r r e n t

use

of long

term debt t o

a c c e l e r a t e

t h e

c a p i t a l

program a s

i t may

ompromise

t h e

a b i l i t y

t o

s u s t a i n

long

term

o p e r a t i n g and

maintenance prog rams.

H.

FAREBOX RECOVERY

ATIO

Most t r a n s i t a g e n c i e s

n a t i o n w i d e

adopt

f a r e

-box

r e c o v e r y

r a t i o

g o a l s t o m o t i v a t e

t h e

e f f i c i e n t and

e f f e c t i v e d e l i v e r y

of

e r v i c e .

Metro

has

e s t a b l i s h e d

afare

-box r e c o v e r y

r a t i o

g o a l

of 33

e r c e n t ,

which

i s

i n l i n e w i t h

n a t i o n

-wide norms.

Metro s

a r e-box r e c o v e r y r a t i o

has been

d e c l i n i n g

i n r e c e n t y e a r s

and

i s

c u r r e n t l y

about

25

p e r c e n t w e l l

below

t h e

adopted

t a r g e t .

R e l a t e d l y ,

Metro s

f a r e s

a r e

a l s o

among t h e lowest

of p e e r

t r a n s i t a g e n c i e s

t h a t i n c l u d e

r i l

o p e r a t i o n s . From a revenue

p e r s p e c t i v e ,

f a r e

e v a s i o n ,

d i s c o u n t e d

f a r e s

and t h e l a r g e

number of

time

- b a s e d

u n l i m i t e d

r i d e

p a s s e s

l l a f f e c t Metro s

a b i l i t y

t o

a c h i e v e a

t a r g e t

r e c o v e r y

r a t i o .

A d d i t i o n a l l y , f a c t o r s

such

a s

r i s i n g

system

-wide

o p e r a t i n g

and

maintenance c o s t s

(such

a s

f o r

employee

e a l t h i n s u r a n c e and s t a t e

of ood

e p a i r a f f e c t t h e f a r e b o x

r e c o v e r y r a t i o .

E


16/33

APTA eer

Review Report

Fare o l i c y

—Los

ngeles

County

Metropolitan Trans portation

Authority

Recommendation

•

T h e

p a n e l

s u p p o r t s adherence

t o

t h e 33 p e r c e n t

f a r e

-box

r e c o v e r y

r a t i o

t a r g e t

and

encourages Metro

t o

a c h i e v e t h i s

g o a l .

F a r e a d j u s t m e n t s

r i d e r s h i p i n c r e a s e

c o s t

c o n t a i n m e n t

e f f i c i e n t

o p e r a t i o n s and

long

range c a p i t a l

p l a n n i n g

must

be

c a r e f u l l y

managed and

monitored t o

a c h i e v e

and s u s t a i n t h e

t a r g e t e d r e c o v e r y

r a t i o .

I

IDEAL METRO

ARE STRUCTURE

BASED ON YSTEM

CHARACTERISTICS

AND RIDERSHIP

I n

t h e

view

of

h e p a n e l t h e

f a r e

r e -


p o l i c y a s

proposed t o

t h e Board a p p e a r s

t o

be

c o n s i s t e n t

w i t h t h e

p r a c t i c e s

and

i n a n c i a l p l a n n i n g t r e n d s

of e e r a g e n c i e s

n a t i o n

- w i d e .

Recommendations

•

Implement h e f a r e r e -

s t r u c t u r i n g a s p r o p o s e d .

• I n

t h e event

t h a t

Metro d e c i d e s

not

t o proceed

w i t h

t h e

f a r e

- r e -


a s

proposed

f u t u r e


c u t s

t o

o p e r a t i n g and

maintenance

e x p e n d i t u r e s

and c a p i t a l

programs

w i l l be e q u i r e d

t o

m a i n t a i n

s o l v e n c y .

2.

SERVICE

AND

OPERATIONS

EFFICIENCIES

AND

RODUCTIVITY

A

IMPACT OF FARE

STRUCTURE

ON

RAVEL DECISIONS

Metro

i s a

l a r g e

m u l t i-modal

system

c o v e r i n g an

e x p a n s i v e

g e o g r a p h i c a r e a

and t h e c o s t

of c a r r y i n g t h e

p a s s e n g e r s v a r i e s

f a r more

than

do

f a r e s ; t h e r e s u l t

i s

t h a t consumers

of

expensive

- t o- s e r v e

t r i p s

enjoy

f a r l a r g e r

s u b s i d i e s t h a n t h o s e

w h o make

l e s s -

e x p e n s i v e

- t o- s e r v e

t r i p s .

R e g a r d l e s s

of

h e

f a r e s t r u c t u r e a d o p t e d

t r a n s i t

r i d e r s

w i l l

n a t u r a l l y opt

o r

t h e lowest

a r e

a v a i l a b l e

t h a t meets t h e i r

t r a v e l

n e e d s . T h e

i n t r o d u c t i o n

of t h e two

hour time

t r a n s f e r

i s

a


n e w

b e n e f i t

t o

t r a n s f e r r i n g

r i d e r s t h a t o c c a s i o n s

a d d i t i o n a l c o s t s t h a t

Metro e x p e c t e d

t o recoup

over h e t h r e e phases

of h e f a r e

r e -

s t r u c t u r i n g .

Recommendations

• Metro

should

c o n s i d e r

a

g u i d i n g

p r i n c i p l e

t o

s e t t i n g f a r e s t h a t s e e k s t o

roughly

e q u a l i z e

t h e

s u b s i d y p e r t r i p

a c r o s s

t r a v e l e r s .

• S e r v i c e

d e s i g n

s h o u l d

minimize d u p l i c a t i v e

s e r v i c e

and

encourage

t r a n s f e r s

between

modes

and promote

deployment use

of ower c o s t modes

•

More

f r e q u e n t s e r v i c e

on a

more

s p a r s e l y c o n f i g u r e d

network w i t h wider s t o p

s p a c i n g

has

been s h own o reduce w a i t

/ t r a n s f e r t i m e s and

i n c r e a s e

r i d e r s h i p .

• T r a n s f e r s a r e a

v i t a l p a r t of

r a n s i t

t r a v e l ; t h e new

two

hour

t r a n s f e r

window

has

e a s e d

t r a n s f e r s w i t h i n Metro.

•

Metro should

c o n t i n u e

t o

r e a l i g n

s e r v i c e s

t o

e s t a b l i s h

and

m a i n t a i n

a c o r e

network

of l l

day

f r e q u e n t

s e r v i c e s

t h a t

complements

t h e

two

hour t r a n s f e r p o l i c y and

a t t r a c t s n ew

r i d e r s

and

r e v e n u e s .

• Metro

should

c o n t i n u e

t o

e x p l o r e

new and

r e f i n e d

methodologies

f o r

measuring f a r e

e v a s i o n

i n o r d e r

t o develop

e f f e c t i v e

p o l i c i e s

t o reduce t

10


17/33

APTA eer

Review

Report

Farc

o l i c y —Los

ngcics

County Mctropolitan Transportation

Authority

B. CONCEPTS T O

INCREASE

EFFICIENCY AND

RODUCTIVITY

Metro bus

s p e e d s

and on- t i m e performance a r e

a f f e c t e d

by s t r e e t t r a f f i c

o p e r a t i o n s ;

c o m p e t i t i o n f o r

s t r e e t

space

w i t h

p r i v a t e v e h i c l e s

a f f e c t s

bus

performance, s

does

space devoted

t o on-

s t r e e t

p a r k i n g and b i k e l a n e s . One time performance i n c r e a s e s r i d e r s h i p

and

r e d u c e s

o p e r a t i n g c o s t ,

which

a f f e c t s both f a r e revenues and

a r e

-box r e c o v e r y .

Metro

s e r v i c e

g u i d e l i n e s a r e

r e a s o n a b l e w i t h

r e s p e c t

s e r v i c e

d e s i g n , typology

and

frequency g u i d e l i n e s . T h e h i e r a r c h y of s e r v i c e

t y p e s

a p p e a r s

w e l l

-

developed t o meet

v a r i o u s

t r a v e l

needs

of

h e r i d e r s . T h e

o a d

f a c t o r g u i d e l i n e s a r e

below

t h o s e

of

omparable

major r a n s i t

s y s t e m s ; t h i s

i n c r e a s e s system c o s t s

by

e q u i r i n g

more l e e t and

s e r v i c e

d u r i n g

peak

p e r i o d s

t h a n

would

be

t h e

c a s e

on

most

e e r s y s t e m s .

Metro's S e r v i c e R a t i o n a l i z a t i o n recommendations

t o i n c r e a s e

s e r v i c e e f f i c i e n c y

and

reduce

c o s t

a r e

c o n s i s t e n t

w i t h i n d u s t r y

-wide p r a c t i c e s .

I n

a d d i t i o n , t h e r e has been a d r a m a t i c

i n c r e a s e

i n t h e

amount of

e r v i c e

p r o v i d e d

b y

municipal

r a n s i t o p e r a t o r s

i n

Los

Angeles

County

and i n s p i t e

of

ongoing

Metro

s e r v i c e

a d j u s t m e n t s ,

t h e r e

c o n t i n u e s

t o

be

s o m e o v e r l a p

and

d u p l i c a t i o n

between Metro and h o s e a g e n c i e s .

Recommendations

•

Proceed w i t h

S e r v i c e

R a t i o n a l i z a t i o n recommendations n c l u d i n g :

— Adopt h e

proposed c o s t

r e d u c t i o n

s t r a t e g y

t o a d j u s t t h e

Bus Load S t a n d a r d

from

1 . 3 t o

1 . 4

and

a f t e r

one

y e a r

c o n s i d e r t h e m e r i t s of

n c r e a s i n g

t o

1 . 5 .

— Consider moving

t o

an a r e a- b a s e d

Load S t a n d a r d

t o

encourage

v e h i c l e

s e a t i n g

c o n f i g u r a t i o n

t o

maximize

i d e r

c o m f o r t .

— T r a n s i t o p e r a t o r s

n a t i o n w i d e

a r e

moving

o wider

s t o p

s p a c i n g i n

o r d e r

t o

i n c r e a s e

v e h i c l e speeds and reduce headways;

Metro should c o n s i d e r implementing a bus

s t o p c o n s o l i d a t i o n

program t o

a c h i e v e

such outcomes.

•

Metro should i n i t i a t e a

comprehensive

program t o improve

on- t i m e

performance

s y s t e m -

wide,

which

w i l l e n t a i l

a

review of both i n t e r n a l s e r v i c e o p e r a t i o n s a s

w e l l

a s

c o o r d i n a t i o n

w i t h

o t h e r

j u r i s d i c t i o n s

and

o p e r a t o r s .

S t a f f should review

TCRP

y n t h e s i s

110 Com m on s e n s e Approaches

oY

Improving

Bus

Speeds)

and p u r s u e l l t h a t

a p p l y .

C.

STREAMLINING

FOR

EASE OF

USE

AND

O

A T T R AC T

RIDERS

Much

as been accomplished

i n r e c e n t y e a r s t o

m a k e Metro,

and t h e

f a m i l y

of e r v i c e i t

o f f e r s t o c u s t o m e r s , t r a n s p a r e n t and

u n d e r s t a n d a b l e

t o

u s e r s .

These i n c l u d e c o o r d i n a t e d

f l e e t/ s e r v i c e t y p e s , u n i v e r s a l

f a r e

i n s t r u m e n t s

and

c l e a r

way-f i n d i n g a t s t o p s and

i n

s t a t i o n s .

T h e

TAP

a r d

program i n

p a r t i c u l a r

has

s i m p l i f i e d

f a r e

payment f o r u s e r s , reduced v e h i c l e

dwell

times

t h e r e b y

i n c r e a s i n g

s e r v i c e e f f i c i e n c y ) ,

e n a b l e d e a s e

of

r a n s f e r s

am on g

o p e r a t o r s ,

a m o n g

o t h e r improvements.

D

PROMOTION

OF

UNDERUTILIZED

SERVICES

T h e p a n e l

o f f e r s t h e

f o l l o w i n g

recommendations

o r

Metro's c o n s i d e r a t i o n :

Recommendations

•

Consider

f a r e p o l i c i e s

and

o t h e r i n i t i a t i v e s

t o

encourage

u t i l i z a t i o n of

e r v i c e s

o p e r a t i n g

below

peak c a p a c i t y

(such

a s

m id

- d a y ,

e v e n i n g ,

and

weekend

s e r v i c e s ) .

1 1


18/33

PT

eer

Review

Report

Fa r

c P o

l i c y

Los A

ngeles County

Metropolita

n Transporta tion

Au

thority

• Adopt

and impleme

nt r i g o r o u s t r n s i t

s e r v

i c e p o l i c i

e s t o

g u i d e

t h e redeplo

yment

of

r

e s o u r c e s

from c h r o

n i c a l l y

underperf

orming

r o u t e s

o

r

r o u t e segments

t o

h i g h e r

per

forming o c

a t i o n s and t i m e s .

E. INCENTIVIZIN

G USE

OF

OFF-

PEAK SER

VICES

T h e

p a n e l

o

f f e r s

t

h e

f o l l o

w i n g

recommendations

o r

Metro's

o n s i d e r a t i o n

:

Recommen

dations

•

As

T P nd o t h e

r

new a r e media

b

ecome

t h e s t a n d a

r d met

hods

of

payme

nt,

x p

l o r e

t

h e

p o t e

n t i a l

c o s t s a

nd b e n e f i t s

of mpleme

nting off-peak

f a r e

d i s c o u

n t s

i n t h e y e a r s

ahead i

n

o

r d e r t o o p t i m i z e u t i l i z t

i o n

of e r v i c e s

o u t s i d e

o

f h e

pea

k

p e r i o d s .

F.

O p p o

r t u n i t i e s

f o r

S

ystem O p t i m i z a t i o

n

through

Performance

Data

Ne

w o

u r c e s of a t a

have

made d a t a

- d r i v e n

manage

ment

much more e l i s

t i c r

e s u l t i n g i n

b e t t e r

p

erformance

a n a l

y s i s and

g r e a t e r e f f i c i e n c ie s

i n l l

a r e

a s

of

r n s i t

a g e n c i e s .

rowing

number

of U.S. t r a n s i t a g e n c

i e s

have

e s t a b l i s h e d

d a t a managem

ent

sys

tems

t h a t have e n a b l e

d


i n c r e a s e s i n s e r v i c e e f f i c i e n c y

and

e f f e c t i v e n e s s ,

t h e r e b y

i n c r e a s i n g

p a t r o n a g e

and

r e d u c i n g c o s t

i

n

t h e p r o c e s s

.

Recommenda

tions

•

Me

tro

coul

d b e n e f i t

f

rom e

x p l o r i n g d a t a

a n a l y s i s f o r m a t s

develop

ed

by, o r exa

mple,

h

e

G r e a t e r

Clevelan

d

Regional

T r a n s p o r t

a t i o n A u t h o r i t y

GCRTA

). T h e GCRT

T

r a n s i t S t a t

program

e

n a b l e s

a n a l y s i s o

f

eve

ry a c t i v i t y u

n d e r t a k e n

a t t h e a

gency

t h r o u g h t

h e use of off h e s

h e l f s o f t w

a r e , a d e d i c

a t e d budget

a n a l y s

t ,

and

manage

ment

team review

of

ey r e n d s

eve

ry we

ek.

3.

A LT E

R N A T I V E REVEN

UE SO

URCES

A BENEFITS

AN

D

M PA

CTS OF CHAR G I N G

PARKI N G

FEES

A T MT

TATIONS

P a r k

i n g

a t

t r a n s i t

s t a t i o n s

i

s e x p

e n s i v e t o

b u i l d , o p e r a t e a

nd m a i n t a i

n ;

t h e s e

so

metimes


c o s t

should be

a t l e a s t

p a r t i a

l l y

r e c o v

e r e d —

t o

avoid

g i v i n g p a r

k -and- r i d e

p a s s e n g e r s

t h e

l a r

g e s t

s u b s i d i e s ,

i n c r e a s e

agency

r e v e n

u e s and

t o

e f f e c t i v

e l y

manage

p a r k i n g

s u p p l y .

P r i c i n g

s t

a t i o n

p a r k i n g i s

a

r a c t i c e

commonl

y

n

e f f e c t

a t

o t h e r t r n s i t

a g e n c i e s .

Recomme

ndations

•

Conti

nue w i t

h p a r k i n g s

tudy

u r r e n t l y

underway.

•

Cons

ider a

d o p t i n g p

erformance

p r i c i n g

of

M

T a r k

i n g

wh

ereby

p a r

k i n g

r a t e s

v a r y i n

o r

d e r t o

manage

p

a r k i n g deman

d a t s t a t i o

n s i n t h e

a

bsence

of adv ance

p u

r c h a s e

p a r k i n g

p e r m i t s ;

doing so

w i l l

both

i n c r e a s e

p a r k i n g

revenues

and

o p t i m i z e

u t i l i z t i o n

of

t a t i o n -

a r e a p a r k

i n g

a s s e

t s .

•

Consider c o n t r a c t i n g

out

p a r k i n

g o p e r a t i o n s

t o

p r i v a t e

p a r k

i n g

m

anagement

f i r m s

i n

o r d e r t o

i n c r e a s

e

r e v e n u e s .

B . OT

HER POTEN

TIAL REVENUE

STREAMS

The

p a n e l

n

oted

t h a t M etr

o

has

been

ver

y

eng

aged

i n p u r s u i n g

a l t e r n

a t i v e

reve

nue

s t r e

a m s

t y p i c

a l l y

found

a t

o t h e r t r a n s i t

a g e n c i e s .

For examp

le a d v e r t i s i n g

i n o r on

v e h i c

l e s ,

1

2


19/33

PT

eer

Review

Re por

t

P

are Polic

y —L

os n

gcics ount

y Mct

ropoli

tan Tra

nsporta

tion

Au t

hor it y

s t a

t i o n s ,

s h e l t

e r s an

d bus

e n c h

e s .

r a

n s i t

agenc

y ha

s o n t r o

l of

s s e t s

t h

a t ha

ve

v a

l u e

t o

o t h e

r

b u s i n

e s s e s

t h

a t migh

t hav

e

o t h

i n g

t o

do

w i t h

t r a n s i

t .

Th

ey want

c c e s s

t

o

t

h e a g e

n c i e s

f a

c i l i t i e

s

v e h i

c l e s ,

p a s s e

n g e r s

,

an

d

em

ploye

es. a l

e

of

ami

ng

i g h

t s f o r

s t a t i o

n s

o r

e

n t i r e l i n

e s h a s

b

een

a

s o u

r c e

of

ew

reven

ue o r many

r a n s i t

a g e

n c i e s

i

n

l a r

g e

c

i t i e s

t h r o u

g h o u t

t h e

c

o u n t r

y .

Whi

le

Metro

h

as

been

eng

aged i n

p u

r s u i n

g

a l t e r n

a t i v e

r e v

e n u e s

t r e a m

s , Metr

o s h o

u l d

c o

n s i d e

r

a l l

a

venue

s t o g

e n e r a

t e a d

d i t i o n

a l

r e v e n

u e s t o

not onl y m i t i g

a t e t h

e d e f i

c i t

b u t

a l s o

wha

t o u

l d b e n e

f i t r

i d e r s i n

t h e

t r a n s

i t s y s t e

m .

R

ecom

mend

atio

ns

•

E x p l o

r e t h e

o p p o r

t u n i t

y f

o r pl

aceme

nt of

TM

s t

r a

i l

s t a t

i o n s . T h

i s i n i t i

t i v e

h

a s

r e s u l t

e d

i n

m i

l l i o n

s

of

o

l l a r s

i n

r e

n t pay

ment

s o o

t h e r m

ajor

r a

n s i t s y s t

e m s .

Ther

e

a r e

p

o s s i b i

l i t i e s

f

o r

p a r

t n e r s

h i p s

w i t

h

any

num

ber of

t

h e r

a

g e n c i

e s

o r

b u s

i n e s s

e s

whe

re

c o

s t s

f o r ne

w e

r v i c e s

mig

ht be

h a r e d .

L etr

o might

wi

sh

t o

c o n s i

d e r e s t a

b l i s h i

n g

a

l o y a l

t y

progr

am n

c o n

j u n c t

i o n w i t h

p

a r t i c

i p a t i n

g b u s i n

e s s e s

i n t

h e Co

unty

wher

eby

p

a s s e n

g e r s

who

p

u r c h a

s e t r

a n s i t p

a s s e s

a r e

e l i g i b l e

f o r d i s c o u n t s

i n

exchange

f o r

t h e a g e n c y ' s

promotion

of

h o s e

b u s i n e s s e s .

S i m

i l a r

prog

rams n

Minne

sota an

d Can

ada h

ave

e s u l

t e d i n

i n c r

e a s e d

r i d e

r s h i p

.

L

e

tro

s t a f f

s h o u l

d

c

o n s u l

t

T

r a n s i

t

C

o o p e r

a t i v e

R e s

e a r c h

Prog

ram TC

RP)

y n t h

e s i s

R

eport

#112

e

n t i t l e

d Ma

intai

ning T r

a n s i t

E

f f e c t

i v e n e

s s

U

nder

M

aj or

F

i s c a l

C o n s t

r a i n t

s

t o

i d e n t

i f y f o

r

more

p e c i f

i c d i s c u s

s i o n

of

e c h

n i q u e s

t o

e a r n

n e

w r e v e

n u e s

o r

s a v e mo

ney .

13


20/33

PT

eer Review

Report

Fare

P o l i c y

—Los ngeles

County

Metropolitan Trans portation Authority

OTHER

BSERVATIONS

AND RECOMMENDATIONS

•

T h e

p a n e l

n o t e d t h a t

Metro

has d eveloped a very

r i g o r o u s i n

-house program f o r

t h e

management

and t e c h n i c a l s u p p o r t of h e

T P

rogram

t h a t

i s

enhancing

f a r e

equipment

and

media w i t h o u t r e l y i n g

h e a v i l y on

h i g h e r

c o s t s u p p o r t from t h e v e n d o r . This i s an

i n d u s t r y

-l e a d i n g

i n i t i a t i v e .

• E l e c t r i f i c a t i o n of bus components

such

a s

a i r

c o n d i t i o n i n g

e n g i n e

c o o l i n g power

s t e e r i n g

t o reduce p a r a s i t i c l o a d

can

save

as m u c h a s 15 p e r c e n t on u e l .

• F r e e energy a u d i t s

can

h e l p

i d e n t i f y

ways

t o reduce

u t l t y

b i l l s

i n c l u d i n g t h e

e s t a b l i s h m e n t

of

r a t e i n t e r r u p t i b l e

programs t h a t can

p r o v i d e


r e d u c t i o n s

i n

u t i l i t y

r a t e s

charged t o t h e

agency

n

exchange

o r

u s i n g

g e n e r a t o r s

d u r i n g

peak h o u r s .

•

Consider

i n s t a l l i n g

s o l a r

p a n e l

canopy

systems

t o

park buses under f o r

shade a v i n g s

on

f u t u r e energy o s t s and reduced carbon f o o t p r i n t .

14


21/33

PT eer

Review

Rep or t

Farc o l i

c y

Los ng

eles

County

Metropoli

ta n Transpor tation

uth

ority

I I I

CONCL

UDING

REM

RKS

T h e p

anel s i n c e r e

l y a p p r e c i a t

e s

t h e

p r o f e s s

i o n a l s u p p o r t

a s s i

s t a n c e

and

c o u r t e s y

extended

throughout t h

e

p e

e r

r

eview

p r o c e s s by Me

tro

s t a f f

and

Metro s t a

k e h o l d e r s . We

r e a v a

i l a b l e t o

c l a r i f y

a

nd

f o l

l o w

up

on

any

a s p e c t s

of

h i s

r e v i e w

fr


22/33

PT eer

Review

Report

Farc o l i c y

Los Angeles


Authority

PPENDIX

6


23/33

A

PTA

e

er

Re vi

ew Re

por t

ta

re

P

olic

y

—

Los

n

gel e

s

C

oun

ty

Met

ropo

lita

n

Tran

spor

tati

on

Au

th or

ity

L

os

Mgel

es

ou nt

y

M e t

r o p o l

i t a n

T r a

n s p o r t

a t i o n

A u t

h o r i t y

Me

t

ro

J u

l y

18,

20 1 4

M

ic ha

el

P.

M

elan

iphy

P r

e s i d e

n t

an

d

Chief

~ c

e c u t

i v e

O f f

i c e r

Amer

ic an

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u b l i

c

T

r a n s

p o r t

a t i o n

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o c i a t

i o n A

PTA

)

1 6

66

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t r

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phy:

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ppe

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e t r o

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eque

sts

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a s s

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n c o

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r u c t u

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p o r t

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t o i n c r e a s e

r i d e r s h i p ,

and

p o t e n t i a l

revenu e

e n e r a t i o n s t r a t e g i e s t o

o f f s e t

o p e r a t i o n a l c o s t s .

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ase

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of

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-

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c e

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b r i n

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c om

pa ra

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a n i z

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i n

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d u a l s

who

are

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w i

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f a

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enh

ance

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a l t e

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enu e

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