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VTA Staff Presentations
A. Fare Revenue and Fare Structure
Ali Hudda, Fiscal Resources Manager, provided a PowerPoint Presentation on Fare Revenues and Fare Structure, highlighting: 1) VTA Revenue Distribution, FY 05, 2) VTA Fares Effective January 1, 2005, 3) Northern California Transit Base Fare Comparison (2000 v. 2005), 4) VTA Fare History FY 95 to Present, 5) Boardings and Fare Revenues, January-September 2004 vs. January-September 2005, 6) Boardings and Fare Revenues, July-September 2004 vs. July-September 2005, 7) Fare Change Process, 8) Fare Policy Standards (Fixed Route Service), and 9) Fare Policy Standards (ADA Paratransit).
Member Brownstein noted that the structure of the fares seems to be based on the assumption that people either take single rides or three rides. He queried if there was any logic as to why VTA does not have a roundtrip fare. Matthew O. Tucker, Chief Operating Officer, noted that there has been some internal discussion regarding a roundtrip fare. He noted that the issue for VTA and other transit agencies that have prepaid and day pass fares is that the agencies end up dealing with multiples. When looking at VTA’s fare structure and the discounts, depending upon which pool people are pulling from, the fare is much more deeply discounted. The average customer is paying about $0.86 as the average fare per boarding.
Member Kishimoto queried if VTA is having a similar discussion about transfers. Mr. Tucker answered affirmatively, and noted that as part of VTA’s Comprehensive Operations Analysis (COA) staff would be looking at a transfer system and the financial impact if implemented.
Member Brownstein noted that information VTA provided on fare elasticities was simply snapshot information. He queried if there was a more detailed analysis on elasticities. Mr. Tucker stated that over the last few years it has been difficult for VTA to use any fare elasticity model due to the significant loss of employment, downturn in sales tax, decrease in VTA service, and fare increases. He indicated that staff could look at VTA’s current fare elasticity model over the next six months to see what would happen if fares were lowered and what would be the projected ridership. Member Brownstein requested that staff come back to the Task Force after the six-month period to show how the model works.
Member Brownstein noted that the current VTA fare structure offers favorable discounts to volume users. He suggested that VTA assess how to strategically reach occasional users since the current fare structure that asks the person who is less motivated to use transit to pay the highest fare. Mr. Tucker explained the principle behind the ECO Pass Program. He noted that there are available seats that could be sold to passengers at discounted rates. Mr. Tucker further noted that some people do not have enough money to pay for a monthly pass all at once. VTA should investigate creative solutions including programs to help subsidize the purchase of transit passes through employers.
Member Stuchinsky queried about the number of people using the ECO Pass. Mr. Hudda noted that it is a challenge to determine the number of ECO Pass users, but the issue will be addressed through the Translink Project, a regional project that will have a Smart Card type fare selection process that will capture the data.
Member Zanobi noted that Transportation Solutions manages/administers the ECO Pass and sells/dispenses the VTA passes at San Jose State University. He indicated that it seems that the concept of volume discount does not exist. The monthly pass should be a lot less, because people are paying for a volume ridership, and the base fare should be priced higher.
Member Moore referred to the future revenue of VTA and recommended VTA explore and model the possibility of converting every single rider to having a monthly pass.
B. 2005 Public Perception Telephone Survey
Bernice Alaniz, Deputy Director of Marketing and Public Affairs, provided a PowerPoint Presentation on the VTA 2005 Public Perception Telephone Survey, highlighting: 1) Background, 2) 2005 Survey, 3) Survey Methodology, 4) Groupings, 5) Key Findings: Perceptions, 6) Key Findings: Communications, 7) Key Findings: Ridership, 8) Respondent’s Profile, and 9) Conclusions.
Member Kishimoto referred to past surveys and commented that she heard that the average tenure as a VTA rider is only three years. She queried about the success VTA has in keeping its customers.
Member Kishimoto referred to Page 5, Groupings, Primary Language, and noted that 25 percent of the population in Santa Clara County is now Asian. She wanted to make sure that VTA is reflective of the demographics.
Member Brownstein referred to Page 7, Key Findings: Perceptions, and queried about the meaning of the word “convenience”. Ms. Alaniz noted it means the following: 1) is there a bus stop located that is easy to access, 2) is it easy for a person to buy a ticket, and 3) is it easy for a person to get information on VTA’s website.
Upon query of Member Brownstein, Ms. Alaniz noted that staff has a complete report on the convenience rating. Co-Chairperson Campos requested that staff provide the report at the December 14, 2005 RIDE Task Force Meeting.
Member Stuchinsky queried if VTA had information on how people rated their time travel and convenience in terms of whether or not they are regular riders. Ms. Alaniz referred to VTA’s On Board Survey and noted that VTA will have a more definitive evaluation from the people actually riding the system and the people who do not ride the system.
Member Petersen noted that the CalWORKS Advisory Group has actually completed a CalWORKS 2005 Transit Survey. She recommended that the survey be disseminated to the RIDE Task Force.
Member Blaylock queried if the On Board Survey would be the same as the 2005 Survey. Mr. Lau noted that the same company that conducted VTA’s 2000 Survey will conduct the On Board Survey and some of the questions have been updated/clarified.
Upon query of Co-Chairperson Campos, Ms. Alaniz noted that VTA inquired about how people received their information, whether it was via the newspaper, radio, television, and/or internet. Ms. Alaniz noted that she could provide the information to Co-Chairperson Campos.
Member Hermone expressed concern regarding the decline in ridership on the express routes and bonus buses since 2002 and queried if VTA is trying to market the express routes and bonus buses. Ms. Alaniz noted that VTA is planning to have Brown Bag Lunches in early 2006 at specific business parks that are being served by the express routes. Member Hermone also noted that a lot of the complaints she received was due to the high cost of the ECO Pass.
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