SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY NOTICE OF PUBLIC HEARING

Transcription

1 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY NOTICE OF PUBLIC HEARING The Southern California Regional Rail Authority (SCRRA) (Metrolink) will hold a Public Hearing concerning potential Fare Policy Changes taking effect as early as July 1, 2011 and including the establishment, modification, structuring or restructuring or approval of fare policies and fare media. There is NO CHANGE PROPOSED ON BASE FARES. Proposed changes are solely related to consideration of: Introduction of a discounted 7-Day Pass to replace the current 10-Trip Ticket. Introduction of a promotional Weekend (Saturday-Sunday) Pass with transfer privileges that will replace the Friends & Family 4 Pack. If the Weekend Pass is introduced, system-wide access for Monthly Pass holders should be allowed on the weekends. Introduction of Student Discounts on existing One-way and Roundtrip tickets, and on the proposed 7-Day Pass, to replace the current 10-Trip Ticket. This is in an effort to simplify its fare policy, provide more value to our customers, reduce costs to the operating budget, increase ridership and create opportunities to generate additional revenues for operating and related expenses. The 7-Day Pass may not meet every customer s needs. Because of the proposed elimination of the 10-Trip Ticket we estimate 3-4% (based on the estimated 13.5% of current 10-Trip Ticket holders who ride infrequently and would have to purchase individual one-way and round-trip tickets) of overall Metrolink trips will be affected. This may result in the loss of the 5% savings over round-trip and one-way tickets that was offered with the purchase of the 10-Trip Ticket for this group. The hearing is on the agenda for the scheduled SCRRA Board meeting on: May 13, 2011 at 10:00 a.m. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) Board Room One Gateway Plaza, 3rd Floor, Los Angeles, CA Information regarding the proposed fare policy changes and fare media is available for public inspection on the Metrolink website at or at the SCRRA offices, Monday through Friday from 8:00 a.m. until 4:00 p.m. located at 700 South Flower Street, 26th Floor, Los Angeles, CA Public comment can also be provided through the Metrolink website at by selecting ecomments button, or by letter to Metrolink, Attention: Public Hearing /Communications Manager, 700 S. Flower Street, Suite 2600 Los Angeles, CA The meeting may be rescheduled to a later date.

2 April 13, 2011 Re: Proposed fare policy changes - introduction of new Metrolink passes and student discounts Dear Metrolink Riders: At its meeting of Friday April 8, 2011, The Southern California Regional Rail Authority (SCRRA) (Metrolink) Board of Directors responded to a recommendation from the its Legislative and Communications Committee to begin a process to consider the following modification, structuring, restructuring of passenger fares, by authorizing a public outreach program to solicit public comment on a proposed change in Metrolink fares policy and a possible future restructuring of fare media attributes and discounts. There is no change proposed in base fares. Proposed changes are solely related to: Introduction of a discounted 7-Day Pass to replace the current 10-Trip Ticket. Introduction of a promotional Weekend (Saturday-Sunday) Pass with transfer privileges that will replace the Friends & Family 4 Pack. If the Weekend Pass is introduced, system-wide access for Monthly Pass holders should be allowed on the weekends. Introduction of Student Discounts on existing One-way and Roundtrip tickets, and on the proposed 7-Day Pass, to replace the current 10-Trip Ticket. The 7-Day Pass may not meet every customer s needs. Because of the proposed elimination of the 10-Trip Ticket we estimate 3-4% (based on the estimated 13.5% of current 10-Trip Ticket holders who ride infrequently and would have to purchase individual one-way and round-trip tickets) of overall Metrolink trips will be affected. This may result in the loss of the 5% savings over round-trip and one-way tickets that was offered with the purchase of the 10-Trip Ticket for this group. Metrolink is providing a public outreach process prior to Board consideration. Members of the public who wish to submit comments for the scheduled May 13, 2011 hearing have several options. Comments can be: Submitted electronically by visiting clicking on the posted public notice and then clicking on e-comment. Detailed explanations of each proposed change in fare media attributes and discounts and the options under consideration for service changes are available with the posted public notice. Addressed and mailed to: Public Hearing /Communications Manager, 700 S. Flower Street, Suite 2600 Los Angeles, CA For Metrolink information, please call LINK (5465) or visit metrolinktrains.com

3 Submitted in person at the Board hearing All comments will be compiled and presented to the Metrolink Board at a public hearing at its scheduled meeting on Friday, May 13, 2011 or as otherwise set after that date. The Metrolink Board of Directors public hearing and meeting will be held in the LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) BOARD ROOM, ONE GATEWAY PLAZA, 3RD FLOOR - LOS ANGELES, CALIFORNIA In addition, the public will be given an opportunity to address the Board in person at the public hearing. On that date, or on any date rescheduled, the Metrolink Board of Directors will consider all comments in conjunction with their consideration of the establishment, modification, structuring or restructuring or approval of fares and transfer policies and related findings, and will determine what, if any, actions to take. For Metrolink information, please call LINK (5465) or visit metrolinktrains.com

4 Summary of Metrolink Fare Policy Changes and New Fare Media for Fiscal Year Executive Summary Fare Restructuring Options: 1. Introduction of a discounted 7-Day Pass to replace the current 10-Trip Ticket, with the understanding that the 10-Trip Ticket will not be discontinued until an acceptable ticketing solution has been put in place to address use by Member Agencies Revenue impact: $300,000 annual savings. 2. Introduction of a promotional Weekend (Saturday-Sunday) Pass with transfer privileges that will replace the Friends & Family 4 Pack. Revenue impact: $75,000 annual cost. 3. If the Weekend Pass is introduced, system-wide access for Monthly Pass holders should be allowed on the weekends. 4. Introduction of Student Discounts on existing One-way and Roundtrip tickets, and on the proposed 7-Day Pass, to replace the current 10-Trip Ticket. Proposed Changes by Ticket Type: TICKET TYPE One-way tickets Roundtrip tickets 7-Day Pass PROPOSAL Introduce 10% student discount for one-way tickets Introduce 10% student discount for roundtrip tickets New ticket type: valid for 7 days from day of purchase. Allows unlimited travel between station pair. Priced at 3.5 round-trips 10 trip tickets Discontinue and replace with new 7-day Pass Monthly Pass Weekend Pass Family & Friends 4-Pack Lift station restrictions and make valid system wide on weekends between Friday 7pm and Midnight on Sunday at no extra charge. New ticket type: valid for unlimited system wide travel between Friday 7pm and Midnight on Sunday. Cost $10 Discontinue and replace with new weekend Pass 1 of 4

5 Background In an effort to simplify its fare policy, provide more value to our customers, reduce costs to the operating budget, increase ridership and create opportunities to generate additional revenues for operating expenses, Metrolink proposes the following changes with the goal to attract new riders. Metrolink s current fare structure continues to reflect the original objectives set forth during the formulation of Metrolink s fare policy Fare Policy Objectives: 1 Maximize ridership within revenue requirements (40% Operating Ratio) Maximize equity: fare should reflect cost of providing the trip and distance traveled Fare should encourage long distance commutes (fares capped at 80 miles) Discount pre-paid fares (cash fare premium for one-way and roundtrip tickets) 7-Day Pass 10-Trip Tickets account for 6.2% of all tickets sold. Individuals who utilize the ticket enjoy the flexibility of riding the train using this fare media within 45 days of purchase. Additionally, the 10-Trip Ticket is priced to save passengers 5% over having to purchase 10 separate one-way trips. However, the Metrolink 10-Trip Ticket has been problematic for fare enforcement officers and customers since inception. Confusion about the requirement to validate the 10-trip ticket has led to numerous customer complaints and inquiries to the call center. Failure to validate 10-Trip Tickets represents one of the primary instances of alleged fare evasion, given that a customer who does not validate the 10-Trip Ticket for each trip could possibly ride Metrolink more than 10 times within the 45 day time limit. The 10-Trip Ticket is printed on Metrolink s most expensive ticket stock because of the customized die cutting that is required for the validator machines. The validator machines themselves are costly to maintain. As no other regular fare media requires manual validation, the elimination of the 10-Trip Ticket would allow Metrolink to retire the validator machines, which will result in a savings of more than $300,000 annually in reduced maintenance costs and reduced fare evasion. Metrolink maintains 145 validator machines. Metrolink proposes replacing the 10-Trip Ticket with a 7-Day Pass that is aimed at riders who don t ride often enough to buy a monthly Pass, but offers savings over Metrolink s regular one-way and round-trip fares. The 10-Trip Ticket will not be discontinued unless the 7-Day Pass is approved. The 7- Day Pass would be valid for unlimited travel during a seven-day period between station pairs starting on the day when the pass is purchased. This pass will be priced at the equivalent of seven one-way trips (or 3.5 times the cost of a roundtrip ticket) and offer a cost saving for 75% of current 10- Trip Ticket users. Like the 10-Trip Ticket, the 7-Day Pass will not be valid for travel on Amtrak. Further, in light of comments made during the last Safety and Operations Committee meeting related to student fares, Metrolink staff also proposes extending the student discount to One-way and 1 Booz-Allen & Hamilton, Inc, June 1992; December of 4

6 Roundtrip Tickets, and to the proposed 7-Day Pass, to meet the needs of students who may currently purchase 10-Trip Tickets with student discounts. The current student discount is 10% and if approved, would apply to the One-way, Roundtrip and 7- Day Pass tickets. Staff will also monitor student ridership and study additional options to make student travel more affordable. Additionally, Metrolink is studying the feasibility of alternative ticketing options for Board members and member agency staff, such as the use of electronic pin codes and special magnetic stripe cards. The 10-Trip Ticket will not be discontinued until an acceptable ticketing solution has been put in place. SAMPLE COST FOR A 5 DAY PER WEEK COMMUTE FROM CHATSWORTH TO LOS ANGELES 5 ROUNDTRIP TICKETS $ TRIP TICKET $ DAY PASS $ MONTHLY PASS (cost per week) $ Weekend Pass Metrolink s Friends & Family 4 Pack (FF4P), which is sold at a flat fee of $29, frequently results in customer confusion due to the printing of the FF4P as four separate tickets. Also, fare enforcement has become an issue with this type of ticket, given that some riders have been reselling tickets they do not need. Metrolink sells approximately 835 Friends and Family 4 Packs each month. Metrolink proposes the introduction of a pilot program to provide a steeply discounted Weekend Pass on a promotional basis to replace the Friends & Family 4 Pack. The Weekend Pass will be sold at a flat rate of $10, be valid for unlimited travel after 7:00 pm on Friday until Midnight on Sunday, and offer flexibility and significant savings over the Friends & Family 4 Pack (FF4P). Staff also proposes that the Weekend Pass also be used to allow for free transfers to connecting transit services. If approved, we will monitor the transfer activity to connecting transit services for budget purposes. If the Weekend Pass is implemented without the free transfer privilege similar to the Friends & Family 4 Pack, there will be no cost incurred for connecting to transit services. The promotional implementation of the Weekend Pass is to generate new riders. Metrolink has additional capacity on the weekends and this ticket type is designed to introduce individuals to the Metrolink system with the goal of having individuals become more frequent riders. The ticket type will be evaluated after six months at which time it will be determined if the program will be continued. System Wide Access on Weekends for Monthly Pass Holders If the Weekend Pass is approved, staff recommends that the system wide Weekend Pass benefit be similarly included for Monthly Pass holders. This will add the privileges of the Weekend Pass to the Monthly Pass. A Monthly Pass holder will be allowed to ride any train after 7:00 p.m. on Friday till midnight on Sunday throughout Metrolink s entire system, regardless of the station pairs. This benefit will add value to the Monthly Pass. Monthly Pass sales generate the most revenue for Metrolink. Adding value to the Monthly Pass is another way to encourage retention of these riders, which ultimately grows ridership and revenue. Any increases in funding from the proposed fare media changes, including any savings to operating expenses, will be used for operation and maintenance of Metrolink's service within the existing service areas. 3 of 4

7 Budget Impact The introduction of the 7-Day Pass as a replacement of our 10-Trip Ticket will result in an annual cost saving of more than $300,000. There is no budget impact from introducing the Weekend Pass without transfer privileges. If transfer privileges are included, there will be an annual cost of about $75,000. If all four items are accepted, Metrolink could garner at least $225,000 in additional revenue. 4 of 4