FY2012 Fare & Service Change Proposals

Public Meetings February 14, 16 & 17, 2011

Overview • Current Caltrain Environment • Caltrain Financial Performance • FY2012 Fiscal Emergency • Closing the Budget Gap - Service reductions - Fare, parking fee increases • Next Steps

1 Situation • Status quo = $30.3 million deficit • Caltrain’s relied on one-time funds & creative service solutions to balance prior budgets • Economic downturn making financial support from partners unstable • State funding remains uncertain • SamTrans’ structural deficit initiated a reduction in financial contribution • Caltrain is the only Bay Area transit system without a dedicated funding source

Ridership Trends Ridership has benefited from the reinvention of Caltrain service: average weekday ridership has increased by 44% since 2004

Caltrain Average Weekday Ridership 40,000 June 2004 Height of dot com boom Introduction of Baby 35,000 Bullet Express Service

30,000

25,000

20,000 Dot com bust Great Recession

15,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 4 Source: Annual passenger counts done each February * Projected ridership in FY2011

2 Cost Recovery through Fares Bay Area Comparison Caltrain has a high farebox recovery compared with other local agencies.

70% 62.3% 60% 47.4% 50%

40%

30% 22.1% 17.8% 19.4% 18.7% 17.5% 20% 14.2%

10%

0% AC BART Caltrain* Golden Muni Muni SamTrans VTA** Transit Gate (Bus) (Light Transit Rail) (Bus)

Sources: * FY2009 NTD Report ** A combined ratio of both bus and light rail Other ratios are from the MTC Statistical Summary of Bay Area Transit Operators (May 2010) for FY2009 5

Cost Recovery through Fares Commuter Railroad Comparison Caltrain’s farebox recovery is similar to other commuter rail systems.

70% 58.9% 60% 51.2% 47.4% 46.1% 50%

40% 36.7%

30% 18.4% 20% 14.0% 9.5% 10%

0% Caltrain ACE VRE LIRR Tri-Rail Coaster Front Rail Runner Runner

Sources: FY2009 NTD Reports 6

3 Administrative Staff Cost Comparison

20% 16.7% 16% 15.2% 12.9% 12% 10.2% 7.9% 8% 5.9%

0% Caltrain A CE V RE TRI-Rail Rail Runner Metrolink

Source: FY2009 NTD Reports 7

Cost Control & Revenue Measures

• Caltrain operates with a lean staffing level (staff shared with two other agencies) • Administrative staff salaries frozen since 2008 • Administrative employees subject to 17 furlough days since 2008 • 2011: fares increased, including Go Pass; 4 trains eliminated • 2009: fares increased; 8 trains eliminated • 2009: Staff laid off; hiring freeze

*Source: FY2011 Revised Budget 8

4 Member Agency Operating Contributions

Historical Member Agency Operating Contributions $40 $7.0 $7.0 $6.6 $6.8 $6.2 $30 $15.4 $15.9 $15.9 $15.0 $14.1 $20 Millions

$10 $15.6 $16.0 $16.5 $16.5 $14.7

$0 FY2007 FY2008 FY2009 FY2010 FY2011*

SamTrans VTA CCSF

Sources: FY2007-2010 Financial Statement & FY2011 Adopted Budget *Note: SamTrans initiated a reduction in its share which reduced the JPB partners’ shares proportionately 9

Member Contributions Comparisons

San Francisco SamTrans VTA Total

(SFMTA)

FY2011 Adopted $6,246,947 $14,707,875 $14,135,309 $35,090,130 Operating Contribution

FY2012 Projected $2,038,727 $4,800,000 $4,613,140 $11,451,867 Operating Contribution

5 Service & Budget Levels – FY2012 Two potential scenarios, each with projected deficits:

• Current service - 86 weekday trains Projected deficit = ($30.3 million)

• What we can possibly afford - 48 weekday trains Projected deficit = ($4.7 million)

Weekday service: 48 trains • Preserve weekday commute-hour service • Minimize ridership loss & maximize revenue retention • Minimize number of train crews & equipment required • Maximize service to most heavily used stations & suspend service to least-used stations • Balance station coverage & end-to-end run time (70 minutes)

6 Weekday Service: Fewer Stations

• Suspend service at up to 7 stations between San Jose and San Francisco - Limited station stops necessary to realize required operating cost savings Criteria Ridership & revenue Transit connections Proximity to neighboring stations

Stations under Consideration

- Bayshore - South San Francisco - San Bruno - Burlingame - Hayward Park - Belmont - San Antonio - Lawrence - Santa Clara - College Park

7 Proposed Service Suspensions

• All weekend service • All service south of San Jose Diridon station • All holiday service • All service for special events

Potential Actions - FY2012

• Fare & fee increases considered - Base fare increase of 25 cents - Daily and monthly parking rate increases • Other cost reductions -Staffing - Expenses - Programs, initiatives

8 Next Steps - Immediate

• March 3: Public hearings at Caltrain Board meeting

• Development of final service proposal and fare increase for Board consideration after reviewing all public comments

• April 7: Consideration of declaration of fiscal emergency, service suspension and fare increase at Caltrain Board meeting

• July 2: Implement new fares and service

Next Steps

• Continue to seek additional funding for FY2012

• Continue advocacy efforts to secure a dedicated, permanent funding source

• Continue efforts to advocate for capital projects that will increase operational efficiencies - Caltrain electrification & modernization

9 Ways to Comment

• Submit Comment Card tonight • E-mail: [email protected] • Mail: Caltrain, JPB Secretary, P.O. Box 3006, San Carlos, CA 94070-1306 • Phone: 1.800.660.4287 or TTY only 650.508.6448 • At Public Hearing March 3